Suze Orman opinions

[REWahoo]

i'm baaaaaaack.

You lazy, good-for-nothing bum, where have you been and what have you been up to? We thought you had forsaken us for greener pastures.

 

[Outtahere]

Yes, welcome back

 

[lazygood4nothinbum]

thank you all. life got a little rough there for a bit. but i'm on the mend and seeing things more clearly. i was looking for some roth info online, checking out the various financial forums and in reading dory's again, well, what can i say. there is no finer group online.

 

[flipstress]

Glad you're back--we missed you!

 

[audreyh1]

IMHO, she really talks like she is speaking to retarded children.

Yeah - but most of her callers really sound like financially retarded children, so it kind of seems appropriate!

Audrey

 

[sgeeeee]

Metally retarded children? So they are in handcuffs?
. . .

Baby robots?

 

[Rich_by_the_Bay]

i'm baaaaaaack.

Good to have you back. Sorry about your loss. I have passed through that cycle with my folks years ago and even now something reminds me and I feel sad for a while. I guess you just move on, with the world a little different place from how it was before.

Missed your posts.

 

[shiny]

i'm baaaaaaack.

Hi guy, good to see you back!

 

[lazygood4nothinbum]

hiya baaaack at yas flip, doc & shiny.

what you say rich reminds me of something my brother said after the funeral, that everyone goes through this, only now, we won't have to go through this later.

shiny, i think i owe you an email but things were getting really difficult and then even my hard drive crashed so i don't have past emails. also now i'm on comcast having rid myself of southern bell and utilizing only a cell phone. me with a cell phone, how 200&6 is that?

nnkrealtor, sorry to have jacked your orman. personally, i used to enjoy her before i knew much at all about finance from other than personal experience. i even bought one of her books to give to a young colleague of mine strapped with credit card debt. though, looking now in retrospect, i did lose interest in her when i found these financial monks to teach me.

 

[Sparky]

Actually, I thought her advice re: paying off the mortgage versus contributing to your 401(k) was valid.

Her argument: if you get fired and your mortgage is paid off, you can always get a job packing groceries or some other low-paying job and still subsist. If you contribute to your 401(k) instead, if you're fired, you still have a large mortgage payment (thus, possibly a foreclosure).

DH and I paid off our mortgage in 6 years and were able to still contribute to our 401(k)s and RE, thanks to LBOM.

 

[FinanceDude]

Actually, I thought her advice re: paying off the mortgage versus contributing to your 401(k) was valid.

Her argument: if you get fired and your mortgage is paid off, you can always get a job packing groceries or some other low-paying job and still subsist. If you contribute to your 401(k) instead, if you're fired, you still have a large mortgage payment (thus, possibly a foreclosure).

DH and I paid off our mortgage in 6 years and were able to still contribute to our 401(k)s and RE, thanks to LBOM.

probably some of her best advice........ I am working feverishly on our mortgage. However, DW keeps casually mentioning from time to time that we are not living in our "dream house". More like, not HER dream house............. :laugh

 

[Zoocat]

OK OK I think she brings some value... She kicks womens butts and tells them to wake up and learn how and why to invest. Her attitude is everyone is responsible for them self. Some men get scared of that feminazi streak she projects and I can pass on a lot of her BS. But, she tries to wake up women and get em out of the domestic diva crappola that pushes many wage earners into poverty. She also pushes the 20 somethings to stop whining and start saving/spending intelligently.

Exactly. When I watch her show, I am amazed and astounded at the ludicrous financial decisions people make. I end up thinking, Thank God for Suze Orman. We need a whole lot more shows on personal finance, on primetime. And who cares that Suze isn't a pretty girl? Is that a qualification these days for being a financial expert?

 

[brewer12345]

And who cares that Suze isn't a pretty girl? Is that a qualification these days for being a financial expert?

Of course its not a requirement to be a financial expert. But most of the other fugly/freaky-lookin' financial types have the sense to stick to radio.

 

[mathjak107]

hmmmmmmm i think shes a lil hot..

 

[Nords]

And who cares that Suze isn't a pretty girl? Is that a qualification these days for being a financial expert?

My comments on her facial expression, eyes, and dentition are more out of a concern that she's been imbibing illicit pharmaceuticals than from a putative beauty misogyny...

 

[LeatherneckPA]

Metally retarded children? So they are in handcuffs?

YEAH!! My kind of people! Bring in the leg irons too.

A - Never heard/seen her until I got curious about this thread. Checked out here website. I wouldn't say she's hideous, nor carnivorous.

B - I actually think I read one of her books a few years ago.

C - As for the lesbo thing, not problem, if I can watch.

 

[mickeyd]

Is that a qualification these days for being a financial expert?

What is being lost in this whole discussion is that this is a TV show. It's entertainment. There is no difference than the Cowboys vs the Eagles. Or "Who wants to be a Millionaire" and Suze yackin' at some gal who has maxed out her CC. As long as you do not change the channel, the entertainment value is preserved.

 

[kjpliny]

i like when she talks about 401k loans being taxed 2x. once when you pay it back with after tax dollars and once when you withdraw later on.


i think she forgot you never paid tax on the money the first time.. the loan is like putting it inpre tax origionally , taking it back and still not paying taxes on it it. you pay the taxes only 1x

I'm not sure this is right. No, you are not taxed on the amount you take out for the loan, but you have to repay the loan with after-tax dollars, so the amount of the loan is actually taxed twice...once when you repay it (with after-tax dollars) and again when you finally remove it for good (taxed as income).

 

[mathjak107]

no you dont pay anymore taxes than you would have normally . if you borrow from the bank instead you pay that loan back with after tax dollars too. lets pretend you have 100,000 in your 401k. say you take out 1/2 the money from your 401k. you have 50,000 back in your pocket tax free plus you have the tax money you saved by making the contribution. . you never paid tax on it so you pay the 50,000 back with after tax dollars just like if you borrowed from the bank. , you then pay tax on 100,000 when withdrawn. in both cases you have a 100,000 you owe tax on and a 50,000 dollar loan to be paid with after tax dollars.

 

[mmg2681]

I read one of Suze's books when I was in college, and it helped me to pay off my credit card debt within a short amount of time. I like many of her ideas, as they make sense for the normal person (in my opinion).

Her advice helped me to realize that I needed to purchase my own home (I did so by the age of 22 as a single female right out of college), and to start investing young. If it werent for her, I dont think I'd be nearly as interested in finances as I am now.

I dont watch her shows so much anymore (because the callers DO tend to irritate me with their irresponsibility), but I think she is a good gal.

~M

 

[JDARNELL]

Well last night at 0200 when I couldn't sleep I was channel surfing thru the normal infomercials (Girls Gone Wild, Ebay, Carlton Sheets, Abs workout, etc) and I came across Susie in her green Grinch costume. I watched for a few minutes where folks were asking her it they could afford an item. Callers wanted a $6800 purse, a new $55K Lexus, etc. And for the most part she gave them the "are you nuts answer."

Then there was this 60 year old man, semi retired $3500/mo income, 15K on CC at 0%, and over 500K in the bank. No other debt. He wanted to know if he could afford at $20k kitchen remodeling that is wife wanted. She told him "no, you can't afford it." Personally I think she is nuts.

I have got to get some sleeping pills or something. This type of dribble TV is bad for my health.

Tomcat98

 

[DRiP Guy]

I like watching her on PBS ('cause it's FREE!) and IMHO she has good, sound, basic financial advice for the mostly finance-clueless younger generation. Much of it is not rocket science, but they need to hear it from someone, and since mommykins and daddykins apparently have capitulated... :

Would I buy a book, pay for a seminar, or purchase one of the products she promotes on her website?

No way.

I don't think she has anything there that can't be obtained for free with just a little effort. I guess that's part of why I am a cheap-Charlie hoping to FI/RE, and not a young fabulous and broke type.

 

[rs0460a]

Then there was this 60 year old man, semi retired $3500/mo income, 15K on CC at 0%, and over 500K in the bank. No other debt. He wanted to know if he could afford at $20k kitchen remodeling that is wife wanted. She told him "no, you can't afford it." Personally I think she is nuts.

Let's see. He's close to drawing SS (don't know when he will stop working, but let's assume at age 62) so the $3.5 k/mo may go away.

$500k - 15K credit card - 20K kitchen leaves him with $465K. 4% annual withdawl against $465K comes up to $1,550/mo (less than his current income). Don't know the entire financial picture, but at first glance depending on his SS income to add to the $1,550/mo "may" come up to less than the $3,500/mo he now has.

First glance says not to take out the $$$, but need more info (including if the current $3,500/mo is enough to cover his current expenses).

- Ron

 

[kjpliny]

no you dont pay anymore taxes than you would have normally . if you borrow from the bank instead you pay that loan back with after tax dollars too. lets pretend you have 100,000 in your 401k. say you take out 1/2 the money from your 401k. you have 50,000 back in your pocket tax free plus you have the tax money you saved by making the contribution. . you never paid tax on it so you pay the 50,000 back with after tax dollars just like if you borrowed from the bank. , you then pay tax on 100,000 when withdrawn. in both cases you have a 100,000 you owe tax on and a 50,000 dollar loan to be paid with after tax dollars.

I understand what you're saying and in fact it's correct when you compare a 401k loan to a normal loan. That doesn't mean you're not being taxed on the money twice, it just means you're not worse off than had you taken a normal loan.

But in absolute terms, you have to answer the following questions:

Question: When you repay a 401k loan (or any loan for that matter), is the money you're using to pay the loan after tax money?

Answer: Yes.

Question: When you take money out of a 401k plan at retirement, is the money withdrawn taxed?

Answer: Yes.

Question: How many times was the money affiliated with the 401k loan taxed?

Answer: Twice.

 

[JDARNELL]

Let's see. He's close to drawing SS (don't know when he will stop working, but let's assume at age 62) so the $3.5 k/mo may go away.

$500k - 15K credit card - 20K kitchen leaves him with $465K. 4% annual withdawl against $465K comes up to $1,550/mo (less than his current income). Don't know the entire financial picture, but at first glance depending on his SS income to add to the $1,550/mo "may" come up to less than the $3,500/mo he now has.

First glance says not to take out the $$$, but need more info (including if the current $3,500/mo is enough to cover his current expenses).

- Ron

I guess worse case you could say no way based on what I remember but you are correct to say need more info. The drama queen was into the playing "Grinch" for the TV audiance. Of course I guess I shouldn't be to hard on her as she has done a good job of filling a niche that must be out there and is making way more bank than I.

When he was talking to her he told her he had good credit and would take the 0% money for a while and pay it back. He was one of the more financially secure people on the segment. If he is that savy I would venture to say 20K remodeling is not that big of a deal. He could always HELOC it off his house if he really wanted to do it and make real low payments."