Suze Ormans portfolio

[saluki9]

I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??

Yes. Somebody in her position probably gets around $50K to $75K for an appearance and speech. On top of that she does seminars where she can get hundreds or thousands of people in a weekend paying to get in. On top of that, even if she's getting only $1 a book, she has sold millions of them.

This proves once again something that personal finance write Terry Savage said about this business (and why she left her seat on the CBOE) That you can make more money talking about money than you can investing.

 

[Texas Proud]

I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??

Answer.... YES...

Look at Rowling... over $1 billion writing a 'few' books... (well, the movies might have helped )

 

[justin]

see also: Kiyosaki

I don't mean to be naive, but I wonder how she accumulated all that money. She came from a blue collar background so it wasn't inherited. Are those books and TV programs THAT lucrative??

 

[perinova]

- Maybe after you'd worked for a stock brokerage firm and had an inside you would avoid stocks too?
- Muni bonds are good tax shelters above a certain income tax rate.
- She might need the money soon or waiting for a market correction?

 

[dsprik]

No one has mentioned if this has ALWAYS been her financial strategy Don't know how, but maybe. Curious how she invested 10-15 yrs ago?

 

[spideyrdpd]

Do you guys think that her advice is good ?
She was just a "salesperson" for merril lynch isnt that the same people your always say are just blood suckers ?

 

[Zathras]

From what I have heard of it, no.

Don't mistake me suggesting her portfolio allocation makes sense with me supporting her advice to others

 

[sgeeeee]

I guess when you have $25 million you can follow your advice. Meanwhile, since she has it she gets to do what she wants with it.

Ha

Yeah. So far, Suzy hasn't asked me what I think she should invest in. I'm not sure what I would do if I had $25M. Since I don't expect I'll ever have to worry about it, I won't spend too much time figuring it out either.

Another aspect of the muni's is that they tend to be free of state taxes.

 

[clifp]

96% of her assets in zero coupon Muni bonds, that is one ridiculously risky asset allocation, there is zero inflation hedge. German bond holder suffered a 99.999+% loss on their investment in 1922-23 during hyperinflation, Japanese bond holder lost more than 95% right after WWII. Similar losses (although less dramatic) have been seen by bond holder in Latin America countries, Russia and I believe other Eastern European countries. Even in developed countries a prolong period of high inflation devastates bond holder. For example British bond holders lost more than 1/2 their value in the late 60s through the mid 70s and US bond holder didn't fair much better. A decade of 15% inflation will put Suze's net worth down to 6 million.

Now if she had a large junk of her assets in TIPs, along with some international bonds, REITs, and modest stock allocation of say 20% she'd be a lot smarter.

 

[haha]

96% of her assets in zero coupon Muni bonds, that is one ridiculously risky asset allocation, there is zero inflation hedge.

I missed where the article specified her duration. Could you fill me in on that?

Ha

 

[clifp]

Honestly I don't know what the duration of her portfolio is. However, in general zero coupon muni tend to have a long duration ,(10+ years) especially if purchased when issued. For example reviewing Schwab list of zero coupon there were only 40 under 5 years and about 400 with a maturity in the 6-30 year range, among new issues only 1 was for 5 years the remaining 13 were 8 to 35 years in duration.

 

[FinanceDude]

- Maybe after you'd worked for a stock brokerage firm and had an inside you would avoid stocks too?

Um............no!

 

[Texas Proud]

Seems that she is trying to minimize taxes here... she is probably making a lot of money....

But, if her duration is short for the whole portfolio.. then it is more strange than before...

And to me, a bad investment portfolio is bad no matter how much you have.... and what if her cost of living is 'high' also... if she has $25 mill and spends $1 mill a year... isn't that the same as someone with $2.5 mill and spending $100K per year??

 

[FinanceDude]

I missed where the article specified her duration. Could you fill me in on that?

Ha

 

[jdw_fire]

.... and what if her cost of living is 'high' also... if she has $25 mill and spends $1 mill a year... isn't that the same as someone with $2.5 mill and spending $100K per year??

Y'all seem to be forgetting about her other sources of income i.e her TV show, book and software sales, appearance fees. I doubt she needs to have her portfolio provide any income, hence the zeros.

 

[saluki9]

I missed where the article specified her duration. Could you fill me in on that?

Ha

On top of that, don't forget this woman will have seven figure residuals (most likely) every year for the rest of her life. Her job provides her with enough equity risk I'm sure.

 

[haha]

On top of that, don't forget this woman will have seven figure residuals (most likely) every year for the rest of her life. Her job provides her with enough equity risk I'm sure.

And we have had so much fun disrespecting her. I wish I were her! Wouldn't even have to change my sexual orientation.

Ha

 

[Bikerdude]

Maybe she just thinks the market is over priced now.

 

[Texas Proud]

Y'all seem to be forgetting about her other sources of income i.e her TV show, book and software sales, appearance fees. I doubt she needs to have her portfolio provide any income, hence the zeros.

But everybody continue to forget that we don't know how much she spends... maybe they don't provide enough if she has a bad year...

 

[clifp]

Y'all seem to be forgetting about her other sources of income i.e her TV show, book and software sales, appearance fees. I doubt she needs to have her portfolio provide any income, hence the zeros.

Regardless of her other sources of income, duration of her portfolio, or an other mitigating factor, Suze is stupid to have all her eggs in one basket. She is 55 and has achieved not only critical mass, but is by pretty much any standard rich. Given that she is likely to live another 30 or 40 years, and the TV business being notoriously fickle she should have a more diversified portfolio to protect her and her partners standard of living. An all bond portfolio has had a negative real return over 10,20, and 30 years periods on several ocassions and in some countries been absolutely devastated, in a few short years.

I'd be a lot more forgiving of her assets allocation if she was just another celebritity, but in theory she achieved her fame by giving people financial advice, if she is practicing what she preaches she is giving dangerous advice and if not she is a hypocrite. I've never liked her program much anyhow now I'll just laugh at her as I channel surf away.

 

[cute fuzzy bunny]

Wouldn't even have to change my sexual orientation.

Another lesbian trapped in a mans body...

 

[clifp]

Another lesbian trapped in a mans body...

Ah now I understand the avatar. Is there a larger version of it available somewhere", I think her shoes are red, and just want to verify it.

 

[cute fuzzy bunny]

Right here...wow...you're right!

 

[Dog]

I'm not a big fan of Suze Orman, although I admit to sometimes getting sucked into her program - she's kinda weird. But, I will share that my 23 year old daughter watched her special (probably on Public TV) and just ordered her book of Amazon. She is totally jazzed about following Suze's rules and getting her financial house in order.

I just smiled....it is the same advice I have given over the years (pay off your cc every month, pay yourself first, leverage your 401k, LBYM, etc). Basically ignored - so if Suze can get her attention and change some of her behaviors....I guess she's not all bad.

 

[teejayevans]

Ah now I understand the avatar. Is there a larger version of it available somewhere", I think her shoes are red, and just want to verify it.

You want them larger