In response to several emails and tweets asking why a trust is so mandatory, Orman spells it out. "A living revocable trust serves as far more than just where assets are to go upon your death and it does that in an efficient way," she said. Unlike a will, a living trust also covers you while you are still alive, Orman noted.
You must think about what If something happens and you become ill and incapacitated. "Who is going to take care of you and pay your bills?" Orman asked. A key difference between a will and a living revocable trust is that the living trust has an incapacity clause that states who you want to sign for your affairs in the event you are unable to do so for yourself.
Be mindful of the key difference between a revocable trust and an irrevocable trust. An irrevocable trust cannot be modified or terminated without permission of the beneficiary. "Once the grantor transfers the assets into the irrevocable trust, he or she removes all rights of ownership to the trust and assets," Orman explained.
via- http://www.suzeorman.com/blog/why-everyone-needs-a-living-revocable-trust/
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Tuesday, February 25, 2014
Thursday, February 20, 2014
Home loan Fixed vs Variable
Don't: Fall for teaser and variable rates.
Some credit card companies lure you in with a rate of 0 percent but raise it to 18 percent after the initial promotional period. Adjustable-rate mortgages that started at 2 percent or lower in 2005 have reset at much higher rates, sending thousands of people into foreclosure. And that private college loan that started at 10 percent? It could climb to 15 percent or higher if it's tied to an index that rises. The bottom line: If the interest rate isn't permanent, you could get taken for a ride.
Do: Stick with a 30-year fixed-rate home mortgage
...(average is currently 5 percent), avoid credit card promotions altogether, and, as much as possible, steer clear of private college loans—again, Stafford and PLUS loans are the way to go.
Read more: http://www.oprah.com/money/Making-Deals-Suze-Orman-Financial-Advice/2#ixzz2sEHfj0kR
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Some credit card companies lure you in with a rate of 0 percent but raise it to 18 percent after the initial promotional period. Adjustable-rate mortgages that started at 2 percent or lower in 2005 have reset at much higher rates, sending thousands of people into foreclosure. And that private college loan that started at 10 percent? It could climb to 15 percent or higher if it's tied to an index that rises. The bottom line: If the interest rate isn't permanent, you could get taken for a ride.
Do: Stick with a 30-year fixed-rate home mortgage
...(average is currently 5 percent), avoid credit card promotions altogether, and, as much as possible, steer clear of private college loans—again, Stafford and PLUS loans are the way to go.
Read more: http://www.oprah.com/money/Making-Deals-Suze-Orman-Financial-Advice/2#ixzz2sEHfj0kR
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Monday, February 17, 2014
Suze Orman: Positives of bankruptcy
Bankruptcy rates spiked during the 2008 recession and many were pretty judgmental toward the millions who couldn't afford to pay their bills. But Suze Orman says bankruptcy is the better option over burying your head in the sand. "When somebody really doesn't have money to pay their bills then they should claim bankruptcy and face it right on and start all over again," says Orman.
Many people heeded this advice over the past five years. In 2008, bankruptcy filings jumped 32 percent to 1.1 million and in 2012 the filings jumped to 1.3 million. However, in June 2013, the U.S. courts reported filings closer to the early recession era at around 1.1 million.
Record-breaking filings have some at odds with Orman's advice. "Many gripe when I tell someone to claim bankruptcy," says Orman. "But what if you've got all this credit card debt, mortgage debt and car loans, and you just stop paying all these things because you just don't have the money?" asks Orman of her naysayers.
via - http://www.suzeorman.com/blog/the-good-thing-about-bankruptcy/
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Many people heeded this advice over the past five years. In 2008, bankruptcy filings jumped 32 percent to 1.1 million and in 2012 the filings jumped to 1.3 million. However, in June 2013, the U.S. courts reported filings closer to the early recession era at around 1.1 million.
Record-breaking filings have some at odds with Orman's advice. "Many gripe when I tell someone to claim bankruptcy," says Orman. "But what if you've got all this credit card debt, mortgage debt and car loans, and you just stop paying all these things because you just don't have the money?" asks Orman of her naysayers.
via - http://www.suzeorman.com/blog/the-good-thing-about-bankruptcy/
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Thursday, February 13, 2014
Keep clean and be organized
Financial guru, Suze Orman talks about keeping your wallet clean and tidy to respect your money and welcome abundance. The same follows suit in your professional life. Clear away the obstacles and make room -- emotionally and physically -- for the new possibilities.
Monday, February 10, 2014
Suze Orman on Debt Settlements
Don't: Use a debt settlement firm.
Those TV ads that promise to negotiate a deal with your creditors so you pay only a fraction of the bill can be enticing—but you should change the channel, and quick. According to the National Foundation for Credit Counseling, debt settlement firms typically charge fees between 13 and 20 percent of your total debt, or a cut of the total debt reduction plus a hefty monthly fee of $50 or more. Not to mention that many of these companies are far from squeaky-clean—several simply collect your fees without doing much at all to improve your situation, and the Federal Trade Commission has numerous cases pending against the worst offenders. Furthermore, even if you are able to negotiate a lower payment, you will likely owe federal tax on the amount forgiven (the IRS considers it income), and a settlement will hurt your credit score.
Do: The negotiating for yourself.
If you're unable to make your payments, call your creditors. They would rather get something than nothing from you, and they're just as willing to deal with you as they are with a debt settlement company. Asking to settle your bill for less than the full balance will work only if you have enough funds to make a lump-sum offer—you'll need to bring cash to the table. And remember that if they accept, there could still be a tax bill coming your way.
Read more: http://www.oprah.com/money/Making-Deals-Suze-Orman-Financial-Advice/2#ixzz2sEHEWT2a
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Those TV ads that promise to negotiate a deal with your creditors so you pay only a fraction of the bill can be enticing—but you should change the channel, and quick. According to the National Foundation for Credit Counseling, debt settlement firms typically charge fees between 13 and 20 percent of your total debt, or a cut of the total debt reduction plus a hefty monthly fee of $50 or more. Not to mention that many of these companies are far from squeaky-clean—several simply collect your fees without doing much at all to improve your situation, and the Federal Trade Commission has numerous cases pending against the worst offenders. Furthermore, even if you are able to negotiate a lower payment, you will likely owe federal tax on the amount forgiven (the IRS considers it income), and a settlement will hurt your credit score.
Do: The negotiating for yourself.
If you're unable to make your payments, call your creditors. They would rather get something than nothing from you, and they're just as willing to deal with you as they are with a debt settlement company. Asking to settle your bill for less than the full balance will work only if you have enough funds to make a lump-sum offer—you'll need to bring cash to the table. And remember that if they accept, there could still be a tax bill coming your way.
Read more: http://www.oprah.com/money/Making-Deals-Suze-Orman-Financial-Advice/2#ixzz2sEHEWT2a
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Monday, February 3, 2014
Suze Orman on do's and donts
It looks like a bargain, it sounds like a bargain, it must be a bargain—right? Not always. When it comes to the many financial options out there, what seems great at first glance is often anything but a fair shake. You'll spare yourself serious money woes if you understand the true cost of any financial decision—whether you're transferring a balance or helping your child select a college. Here are the deals you never want to make (and 3 offers that are worth their weight in gold).
Don't: Opt for lower monthly payments with a five-year (or longer) car loan.
Do: Sign up for a car loan only if it's for 36 months or less.
Don't: Buy sale items on credit.
Do: Pay with cash or a debit card.
Don't: Get a low deductible on your auto or home insurance policy.
Do: Raise your deductible to $1,000.
Don't: Let your child go to that fantastic college if it's outside your price range.
Do: Start making the numbers work in high school (if you haven't already set aside funds in a 529 plan or other savings account).
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
Don't: Opt for lower monthly payments with a five-year (or longer) car loan.
Do: Sign up for a car loan only if it's for 36 months or less.
Don't: Buy sale items on credit.
Do: Pay with cash or a debit card.
Don't: Get a low deductible on your auto or home insurance policy.
Do: Raise your deductible to $1,000.
Don't: Let your child go to that fantastic college if it's outside your price range.
Do: Start making the numbers work in high school (if you haven't already set aside funds in a 529 plan or other savings account).
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
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