Monday, April 25, 2016
Term life insurance vs Whole life vs Universal Life
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, April 18, 2016
Put money in annuity if contributions are matched
My 27-year-old kid just got a "real" job as a Union carpenter. With that job comes an annuity. How much should he be putting into that annuity weekly ?
Suze Orman: I would only be putting money into the annuity if they match his contribution. Otherwise, he is far better off doing his own individual Roth IRA where he can max out at $5,500 a year. If they do match his contribution, he should only contribute up to the point of the match, and then take any extra money and put that toward any student loan debt he may have, credit card debt he may have OR an emergency fund!
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.
Suze Orman: I would only be putting money into the annuity if they match his contribution. Otherwise, he is far better off doing his own individual Roth IRA where he can max out at $5,500 a year. If they do match his contribution, he should only contribute up to the point of the match, and then take any extra money and put that toward any student loan debt he may have, credit card debt he may have OR an emergency fund!
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, April 11, 2016
Investing Q&A with Suze Orman
What are some good strategies for investing with my Roth other than stocks?
Suze Orman: With a Roth IRA at a discount brokerage firm, you could buy individual bonds and/or any investment that they may offer. But at this point in time, stocks, especially those that pay a nice dividend and it's a good company — it's a great way to go.
In this up and down market, what would a moderate risk level diverse portfolio look like?
Suze Orman: It would absolutely have dividend paying stocks in it to curve the bite of a down turning market. For at least, you're getting income while the market is on this roller coaster ride!
What do you think about trading exchange-traded funds (ETFs)? Isn't it a good way to make some quick bucks?
Suze Orman: No! Trading anything is never a good way to make quick bucks. True wealth is built over acquiring a large position of stock in great companies.
I'm in my forties and would like to retire in about 15 years. I have been contributing to my 401k since I was in my twenties. Should I keep my investments in high risk or lower risk?
Suze Orman: Keep investments in high risk.
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.
Suze Orman: With a Roth IRA at a discount brokerage firm, you could buy individual bonds and/or any investment that they may offer. But at this point in time, stocks, especially those that pay a nice dividend and it's a good company — it's a great way to go.
In this up and down market, what would a moderate risk level diverse portfolio look like?
Suze Orman: It would absolutely have dividend paying stocks in it to curve the bite of a down turning market. For at least, you're getting income while the market is on this roller coaster ride!
What do you think about trading exchange-traded funds (ETFs)? Isn't it a good way to make some quick bucks?
Suze Orman: No! Trading anything is never a good way to make quick bucks. True wealth is built over acquiring a large position of stock in great companies.
I'm in my forties and would like to retire in about 15 years. I have been contributing to my 401k since I was in my twenties. Should I keep my investments in high risk or lower risk?
Suze Orman: Keep investments in high risk.
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, April 4, 2016
Investing in children's education and insurance Q&A
What do you think about 529 accounts for young children?
Suze Orman: LOVE them!
What is the best account to start for a child? Should we look for ones that gain most money?
Suze Orman: The best account for a child is a 529 plan. Be very careful of UGMA [Uniform Gifts to Minors Act] accounts. For any money in a UGMA account is counted again the child's eligibility for financial aid. 529s are the way to go!
How should I save money for my son's college? Was wondering if you recommend the 529NY saves plan? And are there penalties on it when taken out?
Suze Orman: No penalties, no taxes! As long as it's used for the child's education.
We are a single family income and we have a 6-year-old. I am worried that we aren't able to save for his college yet. If we could find $20-$50/month to put away where would be the best place to put it?
Suze Orman: From the sounds of it, you should get life insurance to protect this child if something happened to you or your spouse if you're married. You also need a living, revocable trust, because minors can't inherit money. Please make sure you have protected them in every possible way if something were to go wrong. If you've done everything to protect them, use a 529 plan!
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.
Suze Orman: LOVE them!
What is the best account to start for a child? Should we look for ones that gain most money?
Suze Orman: The best account for a child is a 529 plan. Be very careful of UGMA [Uniform Gifts to Minors Act] accounts. For any money in a UGMA account is counted again the child's eligibility for financial aid. 529s are the way to go!
How should I save money for my son's college? Was wondering if you recommend the 529NY saves plan? And are there penalties on it when taken out?
Suze Orman: No penalties, no taxes! As long as it's used for the child's education.
We are a single family income and we have a 6-year-old. I am worried that we aren't able to save for his college yet. If we could find $20-$50/month to put away where would be the best place to put it?
Suze Orman: From the sounds of it, you should get life insurance to protect this child if something happened to you or your spouse if you're married. You also need a living, revocable trust, because minors can't inherit money. Please make sure you have protected them in every possible way if something were to go wrong. If you've done everything to protect them, use a 529 plan!
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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