Suze Orman has stood firmly against traditional financial services since she first started publishing her self-help books in the 1990's. And over the years, she has encouraged her followers to use common sense when it comes financial matters, like avoiding overspending and undersaving.
Orman often jokes that a financial broker will “make you broker.” Her biggest pet peeve with financial advisors is that most are only looking to sell products.
But even Orman admits that not all financial advisors are bad.
Bad vs Good financial advisors
Suze Orman warns that working with a financial advisor who earns all of his or her money through commission on the investments you buy and sell will never have your best interests in mind. These advisors will only be interested in getting you to do a lot of buying and selling.
Whether you realize it or not, many financial advisors still get hidden kickbacks” from their brokers. This means that a large portion of your commission is given to them from their broker. So, even if advisors don’t explicitly work on commissions, they may still receive these hidden kickbacks. That’s why Suze Orman recommends working with advisors who only charge an upfront, flat fee.
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.
Get educated on Social Security benefits
You need to know when to take social security and when not to, and how Medicare works. When do you start taking money out of your account?
Have a will to minimize complications later
If you haven't told your kids what [they're getting when you die], they'll fight over what you have. No matter what age you are you now need a will. You need a living trust.
And you need to be sure that your spouse has the very same things — even if you think it's way too soon for that type of conversation.
Get your paperwork in place today to protect yourself tomorrow. You need to know that you have everything about your affairs [in order] so you don't become a burden.
The less money you have. The more you need it.
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.
