crispus
Recycles dryer sheets
- Joined
- Jun 24, 2004
- Messages
- 168
I was watching the Suzy Orman show over the weekend, and I was disturbed about her advice to a couple that wanted to retire early. As I remember it the couple was 59 and 53 years of age and they wanted to take retirement in about a year. They had a $4000 per month pension no COLA, a paid off property that they planed on selling worth $360k, around 500k in IRA and 401k, $40K in cash, and a home worth about $535k with a mortgage of $200k. They planned to sell the property and pay off their house which would leave them with net expenses per month of 3k. Suzy told them that with around $5300 per month before taxes ($4000 pension and his safe withdrawal from his ira) they did not have enough because with taxes taken out it would bring them to around $3300 per month net and that was too close.
It seems to me that Suzy figured their tax rate way too high and she seems to have a political bent that people should not retire early. The later statement is what I personally infer from her shows, but she does not come out and say this directly. The disturbing part is that if I take her advice to this couple and direct it at my own situation, I would not be able to retire for many more years, and my gut tells me that she has got to be wrong.
I don't take much of her advice to heart except for her hatred of annuities and whole life insurance.
It seems to me that Suzy figured their tax rate way too high and she seems to have a political bent that people should not retire early. The later statement is what I personally infer from her shows, but she does not come out and say this directly. The disturbing part is that if I take her advice to this couple and direct it at my own situation, I would not be able to retire for many more years, and my gut tells me that she has got to be wrong.
I don't take much of her advice to heart except for her hatred of annuities and whole life insurance.