Suze Orman Money Matters

Cameron - Monday, June 29, 2009, 9:57PM ET  Report Abuse

• Overall: 3/5

In my opinion, most of what Suze says is correct. I'll add my two cents though in the same order she goes through the topics. 1. Absolutely right. Class B mutual fund shares have nothing but the advisor's best interest. Avoid them and advisors that recommend them. 2. Again, right. But put yourself in the perspective of an advisor starting out in the business. You have 0 accounts and $0 under management. You don't have a choice but to work on commission for the first year or two. 3. No arguments. Life insurance is purely a means of protection, nothing else. Term insurance protects your income and whole life insurance protects "final" expenses such as medical bills and funeral costs. 4. Ten years ago, I would have agreed because annuities are simply more expensive. However, recently, insurance companies have been coming up with innovative ways to make their annuity contracts more competitive - even in an IRA. Their contracts can be expensive and complicated - let me simplify it - they sell protection and protection costs money. 5. Agree with the part that you shouldn't save for college when you're in serious debt. However, saving for a kid's college education alongside retirement is a good idea. Usually, paying for a child's college comes well before retirement - and if you don't plan ahead, you're going to have to find a way to pull $100,000 or more out of your pocket. Good luck! 3/5 stars. Correct in many ways and hit some good points, but in my opinion, didn't hit all sides of the coin. Thanks Suze, keep up the good work.

Yahoo! Finance User - Tuesday, April 7, 2009, 2:20AM ET  Report Abuse

• Overall: 1/5

In the interest of full disclosure, I am an insurance agent. Ms Orman talent is marketing Suze Orman to the masses. Unfortunately, giving financial advice without knowing ones client is truly unethical. It is absolutely necessary to get to know your prospective client; what may be awesome advice for one person is horrible for another.

Najee - Wednesday, March 11, 2009, 7:46PM ET  Report Abuse

• Overall: 1/5

Absolutely terrible advice from Suze Orman, advice not as much based on facts but her typical emotional-tugging. People don't buy variable annuities in an IRA for tax deferral, but for multiple money managers, a guarantee of principal for beneficiaries and a guarantee of income for the owners/annuitants. Owning a permanent policy is for people who want to own it for a long time (like buying a house) without having to worry about re-upping at higher rates, like with a term policy (comparable to renting a house). Over time, the cost of a permanent policy is lower than a term policy. And her fee-based advisor vs. the sales-oriented advisor logic doesn't register with me. A fee-based platform is going to charge the rate regardless -- nor does it mean your plan is going to perform better. I have a feeling she would have been a bad financial advisor to deal with, because it seems like she is more emotionally invested than the clients in the clients' situation -- a financial advisor should be the one who tells people to take their emotions out of investing. It works well in a controlled situation (like her show or on "Oprah," where there is a certain amount of quality control done on guests), but she seems to lose it when there are fluid meetings she cannot control. Moreover, she has so many contradictions when she speaks (such as being a former financial advisor urging people NOT to deal with a financial advisor because she is getting paid by no-load mutual fund companies), plus doesn't stand her ground when challenged. All situations are different, so it's not so cut and dry. But Orman is obviously speaking out her own emotional responses (and likely her own biased experience as a financial advisor) and shows she simply has no understanding of how the industry products and approaches have changed.

William - Thursday, November 29, 2007, 5:28PM ET  Report Abuse

• Overall: 1/5

Once again Suze's numbers do not add up. How do 79 percent say their advisor is their most trusted source of information, and 70 percent say that a family member is their most trusted source of information? I thought 100% was the limit. I guess not with Suze's fuzzy math. Her other claim that all Variable Annuities inside retirment accounts is a very wide reaching statment. You see, all the people who have 401k's from Principle, Transamerica, and TIAA-CREF (the largest provider) have gotten variable annuity investments. Each plan is a Variable Annuity filled with seperate accounts available for investment. So I guess she is telling everyone who has a 401k with any of these companies is getting a raw deal. Maybe she is just calling everyone an idiot. I also find it odd that someone who makes all her money giving advise, tells everyone on to seek out advice.

PatM - Sunday, June 24, 2007, 10:35PM ET  Report Abuse

• Overall: 5/5

When I first started in the investment business, my branch office manager told me that suzie orman didn't know what she was talking about. Just like all the other financial advisers that have left one star ratings. After hours of research and study I have found that suzie is completely right. For just about everyone, a variable annuity is a horrible way to save for retirement, but the 7% commissions keep them alive. Also cash value life insurance is fine for estate planning, but let's be honest, how often is it sold that way. Most advisers talk about all the tax breaks but when confronted with the fee structure, would probably be dumbfounded. Good job suzie. thanks, you've saved me from leading people down the wrong road that the financial industry has constructed.