Suze Orman new book

[BAGAGT1]

Re: Suze Orman new book

I like Dave Ramsey books alot better-cash is king. And maybe I will change my siggy now that I think of it.

Generally, I do agree with Dave Ramsey's philosophy, but even he gives some bad advise at times. For example, this week on his show, a woman called who was about to get married, between her and her fiance the only debt they had was one car loan. Neither had any kids from any previous relationships, and they had about $4K in left over cash at the end of each month. In my opinion, this couple has there heads on straight when it comes to finances, however, Dave suggested they stop contributing to thier 401k to maximize their payments to the car loan. It seems to me that with as much cash on hand, they could easily afford to contribute to their 401k to get the company match, but Dave insisted that the right way to do it is to focus all of their resources to one loan.

I think Dave's approach is great for people who are heavily in debt and have little to no discipline, but for those who do have the discipline to control money (rather than money controlling them), I don't think his plans are as effective.

[Bluezy]

Re: Suze Orman new book

I did not check out Suze's new book. I'm not young or broke, and not too fabulous. Therefore, I did not bother. Seriously, I haven't seen enough of Suze Orman and her financial advice to know her line of thinking.

[Tree0164]

Re: Suze Orman new book

a woman called who was about to get married, between her and her fiance the only debt they had was one car loan. Neither had any kids from any previous relationships, and they had about $4K in left over cash at the end of each month. In my opinion, this couple has there heads on straight when it comes to finances, however, Dave suggested they stop contributing to thier 401k to maximize their payments to the car loan. It seems to me that with as much cash on hand, they could easily afford to contribute to their 401k to get the company match, but Dave insisted that the right way to do it is to focus all of their resources to one loan..

Yes this is one of the things that I disagree with Dave on. Always take advantage of contributing to your retirement plans.

I didn't hear this caller but if this caller has $4k left over each month they should have no problem in paying off a car asap.

[jmjj215]

Re: Suze Orman new book

From what I have read about her and her advice, I find her very misinformed. I'm in the insurance industry and the way she speaks about permanent insurance is a joke. Permanent insurance was the first type of life insurance to be developed.
There is nothing wrong with having Term insurance. But what happens after that 20-year period or any other "term" someone selects. I know, you begin to pay through the nose to maintain that insurance. Many companies provide you with the option to convert the term insurance to permanent insurance for that reason. Permanent insurance can be used to supplement income in retirement. It’s very simple. It can also pay for itself, which Term cannot do. And the premiums are guaranteed to be the same for till you are 100 years old.
She frustrates me to no end.
She mentioned once that you should never buy insurance on a child. This is the worst statement ever. Yes no one wants the death benefit. But that’s not why you are doing it. It is done to guarantee the child’s future insurability. And some companies have amazing riders which if the child becomes disabled the company will pay for the policy until that person is not. And if they are permanently disabled they will pay forever. There are many types of life insurance. One should meet with an agent to have a review. Discuss goals and priorities. Sometimes more than one insurance type is necessary. I have both term and perm along with LTC insurance. And I’m only 27. Oh and LTC insurance should be bought before 50 years of age because from 49yr and 50 yrs there is about a 30% increase in premium costs.

Long term care insurance at 27?! Wow.

The reason I bought 20-yr level term isn't so I can get reamed when my term is up - I did it b/c it was cheap. And it 20 years I plan on being self-insured.

[jmjj215]

Re: Suze Orman new book

Yes this is one of the things that I disagree with Dave on. Always take advantage of contributing to your retirement plans.

I didn't hear this caller but if this caller has $4k left over each month they should have no problem in paying off a car asap.

He focuses much more on they psychology of getting out of debt than the math. I think the reason he says stop contributing for a short time (and if they had 4k left over each month it would be a very short time) is so the people will be 100% focused and intense and totally channeling all time, energy, and resources to getting out of debt.

He's more of a behavior changer than a money guy - though he's pretty savvy with numbers too. And, to his defense (though I don't agree w/ him on everything 100%), he has been successful in getting TONS, THOUSANDS of people out of debt. It does appear to work

[BAGAGT1]

Re: Suze Orman new book

He's more of a behavior changer than a money guy - though he's pretty savvy with numbers too. And, to his defense (though I don't agree w/ him on everything 100%), he has been successful in getting TONS, THOUSANDS of people out of debt. It does appear to work

Like I said, I think his advice is great especially when one is seriously in debt. That being said, I don't think his advice is for everyone (not that anyone would be seriously harmed by following his advice). But If you don't have much debt, then investing for your retirement should not be placed on the backburner.

[jmjj215]

Re: Suze Orman new book

Like I said, I think his advice is great especially when one is seriously in debt. That being said, I don't think his advice is for everyone (not that anyone would be seriously harmed by following his advice). But If you don't have much debt, then investing for your retirement should not be placed on the backburner.

Agreed. To be doing what he does, you need kind of a boilerplate approach or else it just doesn't work.

[Tree0164]

Re: Suze Orman new book

He focuses much more on they psychology of getting out of debt than the math. I think the reason he says stop contributing for a short time (and if they had 4k left over each month it would be a very short time) is so the people will be 100% focused and intense and totally channeling all time, energy, and resources to getting out of debt.

He's more of a behavior changer than a money guy - though he's pretty savvy with numbers too. And, to his defense (though I don't agree w/ him on everything 100%), he has been successful in getting TONS, THOUSANDS of people out of debt. It does appear to work

Jessie I agree with you 100% on Dave being behavioral. I am a huge fan of his advice. The great thing about reading different personal financial books is learning what works for you and what doesn't.

[larosa7357]

Re: Suze Orman new book

I saw Suze's show last night. I have to say that I was really surprised at her comment with regard to the fact that she DOESN'T believe in budgets. I visit many online financial/frugal/debt-related websites, and all seem to praise budgeting. I believe that a budget is necessary. Anyone Agree?

Fran

[BAGAGT1]

Re: Suze Orman new book

Again, different strokes for different folks. If you have little to no debt, and set aside your savings first, then a budget may not be neccesary. I do have a budget, but don't follow it religiously (except for insuring that I deposit my savings first). Obviously, it all depends on your income and debt levels and what your goals are. I don't think everyone needs a budget (although everyone could benefit by having one).

[niki_the_tiger]

Re: Suze Orman new book

I read Suze Orman's book and liked it... not everything in it, but some of it. I like to read lots of books and pick and choose what will work for me.

I don't have cable (to cut costs), so I don't see any of theirs shows.

I definitely want to check out Dave Ramsey though. What books of his are best to buy first (our goal is to get out of debt)?

[jmjj215]

Re: Suze Orman new book

You'll want to read Dave Ramsey's, "Total Money Makeover"

[niki_the_tiger]

Re: Suze Orman new book

Is it better to get the Total Money Makeover book, or the workbook, or both? I have a few "workbooks" from other authors, and they tend to have the same info plus worksheets, so I should have just gotten them. Is it the same with Dave Ramsey's workbooks?

[Tree0164]

Re: Suze Orman new book

I am more partial to Total Money Makeover for Dave Ramsey.

[BAGAGT1]

Re: Suze Orman new book

Is it better to get the Total Money Makeover book, or the workbook, or both? I have a few "workbooks" from other authors, and they tend to have the same info plus worksheets, so I should have just gotten them. Is it the same with Dave Ramsey's workbooks?

I didn't buy the workbook, there are worksheets in the book which you can photocopy and use.