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tony

Suzie O Claim-You need 5 mil To Retire Is Nonsense

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Financial guru and author Suze Orman ruffled a lot of feathers in a recent podcast, saying that people need $5 million — maybe even $10 million — in order to retire.Orman was responding to a question about the “financial independence, retire early” (FIRE) movement, a growing online trend where people in their 30s or younger just stop working.

https://www.marketwatch.com/story/suze-orman-says-you-need-5-million-to-retire-thats-nonsense-2019-01-15

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Old news.

I read one of her books years ago and occasionally listened to her TV show, and it was OK. BUT when she yelled at a caller and called her "STUPID" on her show!, I quit. Then I heard later she was making additional money with ads for selling new cars and some kind of credit card. So, it was no surprise at her lashing out what these young people are doing, cutting excessive spending, and investing at a young age. WHAT THE HECK IS WRONG WITH THAT? 

Interesting that even the Wall Street mucky mucks agree that people should start saving and investing early in their working lives. But not the arrogant Orman who again she yells, that she "hates" FIRE. Yelling makes for good media coverage and the fact that we are still talking about her. 

But Orman might have a lesson for us. I wonder if we started yelling at the annuity industry sales practices and possibly get more media coverage and the attention where its needed to our colleagues. 

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7 hours ago, sschullo said:

But Orman might have a lesson for us. I wonder if we started yelling at the annuity industry sales practices and possibly get more media coverage and the attention where its needed to our colleagues. 

 

I never cared for her advice as its very basic and yes this article is old news, but folks are still commenting on the ridiculousness of her statement.  Her books which I scanned in bookstores say nothing out of the ordinary. Possibly, they were strictly money-making ventures for her. I made the mistake of posting this article and further making her relevant.  What bothers me is the general population's lack of financial literacy is making substandard advice gurus very rich. I know this is a blanket statement but many of these gurus give unremarkable advice. I'm not anti -Orman but you can't give good advice in a 5 minute TV segment or in a short article. Those need to be starting points.

Steve makes a good point here. We all need to start yelling about the continuing pathetic state of so many 403b choices and get some attention too.

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43 minutes ago, tony said:

many of these gurus give unremarkable advice. 

There isn’t any remarkable advice to give.

1. Do everything in your power to make as much money as you can (earn a valuable degree, ask for promotions, interview for new companies yearly, etc).

2. Stop spending money (get roommates, reject consumerism, drive a used/cheap car until it is scrap metal or better yet ride a bike, live in a safe but modest space, cook healthy food at home, keep physically active, etc).

3. Invest every dime in total market index funds and max out tax advantaged accounts before you put the rest in a taxable account.

It isn’t complicated, but it does require a highly paid skill set and/or a radically different set of values than most Americans have.

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5 hours ago, EdLaFave said:

There isn’t any remarkable advice to give.

 

Well certainly not in a ten-second  call-in  financial news show blip

I wish it were as simple as you state but people are complicated, different,  and some are not all that financially smart. They don't know what they don't know. Credit Card debt counseling is big business these days because folks don't know how to handle money and certainly aren't doing the things you mention above. Most people learn by their mistakes. You can't expect folks who don't know or understand how a revolving credit card works to suddenly make the leap to understanding Index Funds. And as we know even those knowledgeable enough fall victim to the enticements of our materialistic culture. And... common sense, in general, is uncommon. So maybe unremarkable advice is a starting point for some and needed. Perhaps a slap on the hand and shouting is exactly what they need. I just am not sure what it takes.

We need financial literacy taught on every educational level but capitalism works best when we stay stupid.

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Let me acknowledge that lots of people don’t have the skills to earn enough to invest and still others prefer consumerism over investing. Speaking to the minority of people who aren’t in those two groups...

It really is as simple as I described. Everything you need to know can be written on an index card and explained to you in an afternoon. From there it just boils down to having the self control to execute.

The solution isn’t complicated. Aside from being born rich, there are no shortcuts. You will likely need to at least partially embrace the notion that the value of a human being is entirely unrelated to the things they own and the things they own can at best bring fleeting happiness.

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