If You Knew Suze Like We Know Suze, You wouldn’t listen to her advice

**workingmamma** · 02-11-2009, 05:19 AM

So what do you recommend?

**MonkeyMama** · 02-11-2009, 06:28 AM

I don't buy it. Sure, there are plenty of people who are in dire straits who need more help than Suze can give.

BUT her "Can I Afford it" Segment would not be so popular if so many people would actually live within their means or could grasp what they can or can not afford.

I live in a city full of people who bought things with phantom equity because "they deserved it." Just about everyone I know lives a lifestyle more lavish than they can afford. I mean, they whine how they can't pay their bills while driving off in their new SUVs, literally. If more people had listened to Suze we wouldn't be in quite the mess we are in today.

**Broken Arrow** · 02-11-2009, 06:48 AM

I'm no ardent defender of Suze Orman, but I do think this editorial paints her in an unfairly bad light.

If you feel the need to impress people with what you have rather than with who you are, you are at high risk for credit card abuse." This from a woman who spends $500,000 a year chartering private jets and who sells "Cruise With Suze" packages on an Italian luxury liner.

Take this for example. Yes, spending $500,000 a year would be utterly insane FOR ME, but that's because I'm sure my income is far, far lower than Suze's. So, depending on what her annual earnings is like, perhaps it's not as frivolous as it seems at first glance.

Seems strange to me that the author did not catch this....

But it is not Suze's hypocrisy or even her intellectual laziness that really bothers me; no, that would be something Suze "loves" called "dollar cost averaging," which involves buying the same stock over and over again as it falls. "It's a great opportunity for you when the value of the shares drops," claims Suze

Though I'm no stock guru, I'm trying to figure out what the problem is with this concept? Look, the whole stock market is going down. No sectors are spared. However, within the market, there are STILL good companies out there. And at the same time, we don't know how much it will continue to drop, for how long, and when it will rebound. So, in light of this, why is DCA such a bad idea?

As for bad companies? If they're bad, it doesn't matter how cheap they are. They are never worth it.

Seems strange to me that the author can not grasp the seemingly simple concept of "averaging down".

"[S]tocks, in my opinion, are the best investment vehicle for the growth of your money over time"—less than 3 percent of Suze's net worth happens to be invested in them. Instead, she's tucked away the vast majority of those royalties ($32 million-plus, after taxes) into insured, government-backed bonds. As she trilled to the New York Times Magazine a couple of years ago, "I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care."

If I have $32 million in wealth, then my investment goals and priorities will have changed dramatically. No longer would I be interested in portfolio growth and its associated risks (Why would I? How much more money do I need?), but instead, I would be much more focused on capital preservation (I don't want to lose what I have either.)

Plus, it's also important to note that every individual should be adopting different investment strategies that best suits them. Suze's situation is most certainly different than mine, and is most likely different from the rest of us here as well.

It seems strange to me that the author didn't catch that Suze is in a different financial situation than most of us, and therefore, her portfolio may actually be appropriate for her....

Suze, my friends, has been lying to us, and we know she knows she's been lying because she herself tells us that she ignores her own advice. (Apparently, it's more important to brag about how many books you've sold than to hang with your peeps.)

A biased conclusion based on faulty logic. I've watched her shows on many occasions, and for the most part, she seems to impart decent advice. Oh, sure, her personality rubs a lot of people the wrong way, but we're not asking for her hand in marriage, are we? No, we're asking her for financial advice. And you know what? Some people really are dense out there. Some people really do need a person like Suze to just come straight out and say to them, "No no no!"

If you don't like her and she irritates you, that's one thing. But to say that she's a liar, a sham, and a hypocrite? That I'd have to disagree. And for that matter, this is one of the worst editorials I've read in a long time.

**simpleyme** · 02-11-2009, 07:06 AM

people often hate on successful people ;-) especially the rich

I like Suze and watch her show I rarely agree with her advice

I am a Dave Ramsey fan and I do not think anyone is more hated on than DR ,people hate the idea of financial gurus getting rich and spending money

who would listen financial advice from a broke person?

**EEinNJ** · 02-11-2009, 07:14 AM

I think she teaches basic financial literacy, coming from an emotional basis, to people who otherwise would not be receptive or simply wouldn't get it. I've read a couple of her books, seen her on TV occasionally. Nothing new there for me. I would draw a distinction between personal finance advice and investing advice. Investing is something that should come after you have things like debt, income, and spending under control.

I would not take her investing advice, partly because she parrots assumptions and strategies that don't necessarily work any more. As others have pointed out, she does not take her own advice, but a rich, middle aged lesbian is going to have much different goals than her target audience. The critique in that link was a bit harsh, though

**GREENBACK** · 02-11-2009, 09:11 AM

Originally posted by simpleyme View Post

who would listen financial advice from a broke person?

Great point!

**EEinNJ** · 02-11-2009, 09:16 AM

There's a columnist on CBS MarketWatch, Dr. Irwin Kellner, an economist and college professor, seemingly a real brain. I recently found out he's suing Bernie Madoff, he lost 6 million bucks investing with him. Perhaps he listened to Suze Orman and believed he could make 11% a year!
My point is, advice from a rich person may not be any better than from a broke person!

**simpleyme** · 02-11-2009, 09:59 AM

Originally posted by EEinNJ View Post

My point is, advice from a rich person may not be any better than from a broke person!

LOL point taken! I have started a running program so instead of taking advice from runners I will start asking couch potatoes for running tips!
as none of the couch potatoes have ever sustained running injuries unlike some of the runners I have talked to;-)

**cptacek** · 02-11-2009, 06:32 PM

What is it with bashing people who have money who use private jets to get where they need to go? Thanks to the rampant bashing by congress and the media and bloggers and average Americans scaring people who do have money to not buy planes, I got laid off from my job at an aircraft company this week. Thanks a lot.

**sweeps** · 02-12-2009, 04:07 AM

Very sorry to hear, cptacek. I hope you find a new job soon.

**Hot dog** · 02-12-2009, 05:01 AM

I am so sorry to hear that. it is my worst nightmare at least these days. Let us know how it goes.

**Broken Arrow** · 02-12-2009, 05:05 AM

Yes, I'm sorry to hear that. Hope things turn around for you soon!

**cptacek** · 02-12-2009, 05:27 AM

Yeah, I've been avoiding posting on my blog for a while now, because things haven't been going well in the past few weeks, and truth be told, I feel a bit ashamed about being jobless. At least I get the WARN pay (60 days of pay) and a severance package, plus all my vacation, so I'll effectively get paid until June. But, I have to find something between now and then.

**Broken Arrow** · 02-12-2009, 06:22 AM

I don't think there is any shame in that. You are just as intelligent and capable as before, and the circumstances are entirely external.

Say, didn't you mention one time that you guys are working on a farm and you wanted to move on to farming anyways?

If You Knew Suze Like We Know Suze, You wouldn’t listen to her advice