I get to attend a teleconference with none other than Suze Orman! I wanted to get you involved and possibly get your questions answered from one of personal finance’s leading experts!
We will have Suze on the call for around an hour? It’s not everyday you have her ear – well, unless you call into her show and give your whole life history and fear getting approved/denied (and she always says it blatantly, D-nied). Can you tell I’ve seen her show a few times?
So, have at it. What questions do you have for Suze? I have several of my own based on our financial goals so I’m interested in hearing the questions you have as well! Your questions can be related to personal finance, the economy, investments, possibly starting a business in this economy (just so ya know fellow bloggers, what we do is our business), whatever!
Please leave me a comment with your question and I’ll do my best to get a few in during the call!!
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Would you recommend using a Universal Life Insurance plan to save for your children’s colleg?
Upon the advice of our financial advisor, we are paying more into this plan than we need to for life insurance coverage. When we need to withdraw or borrow from this plan in 8-9 years, we can take out the money tax free. If I am understanding right, this is the main advantage to putting your money here–and you get life insurance coverage– verses investing it in a Roth IRA where it’s taxable when you withdraw it.
Hope my question makes sense. This is a question I would LOVE to ask Suze! Hope you have good conversation! Jen
What does she think of the SNL skits of her? :)
holy cow – where do i begin ? how lucky you are….
what is better to do lease or buy a car ?
would you buy a GM car right now ?
what is the right amount of point difference to make refinancing worth it ?
more important to save for retirement first or college first – for a 40 year old couple with 2 kids, ages 4 and 2 ???
oh and is getting a financial advisor worth it ? how do you go about that ? do they cost money ??
Honestly an hour with her sounds like such an amazing opportunity. ENJOY
The best way to handle your credit once you’ve had fraudulent activity on it??
We had someone steal our credit card number from a place we ordered a replacement remote control and she used at other places trying to make charges (which didn’t go through) but there is activity now on our credit report. She was caught and we have the police statement and have reported it but are unsure of what to do next.
:)
I had the pleasure of being on Suze’s show! She APPROVED me! I heart Suze.
I love Suze Orman. I want to know if it is a good time to buy a house. I know the economy is terrible and there are lots of foreclosures,but I’ve heard some people saying it is the best time.
I am tired of living in an apartment for the amount of money that I pay for every month, I think I can put it towards a house instead.
Also, about the goverment first homeowners credit.How should I go about that? Buy the house and apply for the rebate later? Or is there a way to include this rebate in the lenders application?
Thanks a lot!!!
I have money in a 401k from a previous employer and am now a SAHM. I have been thinking about putting the money in some kind of educational fund for my daughter. I have another retirement account. Is it possible to roll the money over and what is my best option for an educational fund?
Hi Andrea,
Lucky you! I adore Suze! I think she has such great advice to offer. I was actually on her show once – she was a delight to talk to. Have fun!
“I want to know if it is a good time to buy a house. I know the economy is terrible and there are lots of foreclosures,but I‚Äôve heard some people saying it is the best time.
I am tired of living in an apartment for the amount of money that I pay for every month, I think I can put it towards a house instead.
Also, about the goverment first homeowners credit.How should I go about that? Buy the house and apply for the rebate later? Or is there a way to include this rebate in the lenders application?”
I want to know the answer to this too, thanks!
Lucky you! I have 3 questions as we make preparations for a possible layoff in this economy:
1. Can Suze explain her recommendation for a 8 month cushion in your emergency fund. Does this mean 8 months of net pay saved, or can we subtract half of it for what we would get in unemployment benefits if we are laid off. This would mean that we would only need 4 months of net pay and we are close to that.
2. If we are laid off how much would CORBA be under the new stimulus package for a family of 4 each month. Is there a cheaper alternative for health insurance than CORBA?
3. We have a 15yr loan on our home right now with 10 yrs left. My plan is that if we are laid off we will refinance to a 30yr loan, thus dropping our monthly payment quite a bit. We still have a good bit of equity in our home. Is it possible to refinance to a longer loan after you have been laid off?
I would like to know what her recommendation is for the percentage a person should save for retirement, and if that is off your net income or gross income. I recently realized we are saving 25% of our gross income for retirement ( we have no debt, are trying to pay off the mortgage early, saving for kid’s college, have emergency fund, etc). But 25% seems high and I feel we don’t have a lot of leeway in discretionary spending. I would like to fix up the house and we don’t have the money because so much is going into retirement!
She dislikes universal live policy here – it’s life insurance, savings is savings, investments are investments – don’t mix the three.
Start a 529 plan for the kiddos but only when you are out of debt yourself.
Jessica, lol! I was wondering the same thing. The only time I really watch Suze’s show is when we’re at my parents’ house (they love her!) but Kristen Wiig is hilarious in those skits! “Take your money, and buy JACKETS!” haha
Ahem. For those of you with purchasing/refinacing questions, I might be able to help a little – I work for a loan officer! ;)
As far as the point difference question: we don’t use points when we are working on our customers loans, so I can’t answer that specific question. Typically, if you can lower your interest rate at least 1% (from 6% to 5%, etc) then refinancing is worth it. Any less than 1% and you really won’t save that much, especially if you’re having an escrow account set up, because the tax & insurance reserves will have to be added into your loan amount.
This is a great time to buy, especially if you’re buying a foreclosure! One of the realtors in our office had a client buy a foreclosure recently for about 85,000…the appraised value was about 130,000! Be careful though – I don’t think you can have the house inspected prior to purchasing it (in foreclosure situations.) Some people get mad that they are being foreclosed on and trash the house before moving out…I’m not sure if anyone is required to tell a buyer this beforehand!
And finally, going from a 15-year to 30-year mortgage. I’ve worked on loans in the past where the client has done that. The lenders always want there to be a “tangible benefit” to the loan! However, you really need to have a job. Lenders have really started to scrutinize employment history, income, etc! If you really want to refinance, and there’s a good chance you’re getting laid off, I’d look into refi’ing as soon as you can. It may be harder to get approved after you’ve switched jobs, for whatever reason.
I hope this helps some of you! Andrea, sorry for “guano-ing” your comments! Your blog is awesome! :)
I just bought Suze’s book “Young, Fabulous, and Broke!” It’s awesome. It answers some of the questions already listed in the comments above mine. It can be found on Amazon for under $5. It’s a good buy.
What do you think of The Mutual fund stores. Should I pay a yearly fee or would it be better to pay them commision on the amount that they make for me. More money for me more money for them?
Confused.
I have been working for same company for 26 years and I am 55 years old. They are getting rid of half the staff now and offered be a retirement package which I accepted. My question is where should I move my 401k . I have to decide what to do with it very soon.
I owe $180000 on my home. I owe $12000 on a equity line. No car payments, no credit cards. I have a 401k and a ESOP plan with my employer and an IRA all totaling just around $150000 (took a killing because of the economy). I have about $5000 in a regular passbook saving account earning .60% (emergency money). I have $15000 in a c/d thats coming up for renewal in a few weeks, my question is, should I pay off what I owe on my line of credit or purchase another c/d with a APY of 2.15? I’m paying 5.0% right now on my line but think I might need the interest to give me a better return at the end of the year on my taxes. I am turning 50 in a few weeks, 2 kids, 1 finished college and the other in his second year of college. Single mom!
I recently heard a radio advertisement for a company
called no more mortgage. They claim to reduce all debt including your mortgage in an average of 9 years without
any increase in payments or harm to your credit. Is this legit? Has anyone done it? Does someone like Suze Orman recommend it? They do a free financial anyalysis
first. President is Larry Ruff.
Joseph, I haven’t heard of that company. But, I would honestly say to take the snowball approach and baby step your way out of debt.
my daugther has a loan with sallie mae and her payments are 167.00amonth ,she cannot meet this payment righ now,she sent them 100.00 a month,she has a hardship,they have been call my house about 10 times a day,crazy,she try to talk to them to accept the 100.00 montly ,for now,they transfer to none english american customer service and she is not get the righ answer,what do you adwise her to do,she is send them a letter,later.to explaine that she sent a payment of 100.00,only,sincerely,marysecolbert.
Question for Suze Orman
I live in Montreal Canada and my question is:
I was thinking of opening a US$ saving’s account. The purpose is to save US$ for the future. I think that the US$ will eventually go much higher. If I start now buying it will be a great saving for the future.
What do you think. Is this a good idea or not?
I am a fan from Montreal, Quebec
Waiting for your answer Suze.
Helene Cleary
My sister has not spoken to us in almost three years. Our Mom paid off my sister and brother-in-laws home to save it in a foreclosure. They still owe just over $29,000 but the contract, a QuitDeed, stated they were responsible for all property taxed and insurance of which they have defaulted on. Mom has filed a foreclosure on that property and of course we are going to court on April 20, 2010.
My question is, Mom wants to add my name to the deeds of all three homes she owns. Should she do this? Right now Mom’s name is the only name on the three homes. I live with her, take care of her, do all the shopping and taking her to the doctor. My sister was great to us until our younger brother moved back with us after a very nasty divorce and he had open heart surgery just six months after moving here and that is when the you know what hit the fan. My sister has always been a very jelous person but lately she has just become a you know what. I have a lot of mixed feeling about this, both of my brothers told Mom not to put their name on any of the deeds that since I am not married and have no children and I live with her my name is the only name that should be on the deeds.
Thankful but puzzled. Please Help!
Cathy C.
I hope you learn a lot and have a blast meeting one of my mentors! I would ask her how she feels about universal life contracts. We know how she feels about term life insurance, but there is a little known program called term life insurance that seems, well, when executed properly too good to be true. I have read four of Douglas Andrew’s books on this insurance, and just wonder what our money genius Ms. Orman says about them. Take care and take notes! Truly, Sarah
ps sorry, it’s so late…I meant universal life contracts by Douglas Andrew, not term insurance…forgive
my husband and i are disabled. i have been disabled since nov 09 My employer did a reduction in force and let me go – i was over the 12 week mark of MLOA. My question is we cannot afford our house mortgage. We are way upside down. If I go into foreclosure, will they take my savings that I have pulled from my retirement to live on ? If so can I payback my daughter the amount that i have borrowed and will they be able to get that ? thanks
My husband and I are having difficulty in making our mortgage paymen. We have a second, have refinanced and are upside down on our home. We are not behind on any payments, but struggle to meet our home payment of $2,000 a month. My question is, we have been hearing for a while about the Obama relief to help such homeowners with these problems with a modification program. I would like to know, how does this affect our credit scores, and how seriously does it affect us if we want to buy another home in the future. Can this hurt us for a long time?
Suze: I wish I had heard you years ago. I had a forced retirement, after 22 years.
I was making about $60,000.00 and benefits. I was 62.
I got into major debt. Unwisely, I used my near $90,000,00 retirement up.
I cared for my aging father for 12 years in my home. He helped with what he could.
He needed my attention, so I couldn’t work outside the home until he passed away.
During those years, I got into major debt
I tried those get out of debt people, and made matters worse, combined Credit cards, and interest went 28%. After I made my monthly payment, I owed more the next month than I did the month before. I owed over 70,000.00 trying to keep up with what I had already obligated when working.
I couldn’t make payments. So I had to stop paying. Credit Card companies started calling, offering settlements. I was able to borrow, etc, and paid them off, the last one was $17,000.00. they offered a settlement of $8,000.00 I refinanced my home and paid that off. It took several years, and lots of prayers, and tears. I went to work at a daycare making $6.00 per hr. because I had to use a walker, they felt I couldn’t continue in that capacity. So, I now have $1,124.00 SS. A family member pays Utilities for me. I have House payment, $601.00 Pmt, Car ins, medical ins, security, and home shield pmt. no other debt.
I was ill for sometime, and got behind 1 month in my mortgage. Can’t seem to get caught up. They threaten forclosure, I make my payment every month.
I have tried to work with Chase, to get a Mortgage Modification, (2 years) I just asked if they could even set the 1 pmt behind, to the end of mortgage, they didn’t. They offered a partial payment for 6 mos. This caused me to be further behind. They didn’t tell me that they held it in suspension until the full payment was accumulated. Needless to say, I got further behind even though I was making payments each month.
I am still waiting to see what they will do. Thus my credit I had worked hard to get out of debt, this home mortgage pmt, is lowering my FIco, it is 650. It was 523.
I have considered trying to refinance my home. I owe $67.000.00 @5.35%. My home is appraised at $120,000.00. in the area I live in Little Rock, Ark. thats good.
I have also considered A REVERSE MORTGAGE. Thus eleminating my $601.00 Per Month payment.
My question is: Should I go to REVERSE MORTGAGE? thus getting rid of that house payment. I have looked into R.M. and backed off, I know that they charge a % of interest each month. I know they pay my mortgage, but I don’t know if it would be a wise decision. My sister-in law and her daughter live with me, they pay Utilities, and some upkeep exp. I am not worried about leaving something for family, except for her. I know she would probably not be able to make payments, and utilities. She is 62 yrs old.
My only daughter died of cancer. Her husband is great, he has his home etc…. .
I have recently been diagnosed with Post Polio Syndrom, (initially, I was completely paralized) I have done great, for these many years. Now, I have to use walker, lots of pain, and weakness. gradually I am looking ground…. I am 74 years old.
What do you recommend that I do?
1. keep plugging? 2. Keep waiting on Chase to modify my mortgage? 3. Do a reverse mortgage? 4. Try to refinance my home, to get current in payments?
If you could just send me an email with your comments I would greatly appreciate it.
Thank you for all you do to help people with their finances.
my e-mail address is alice.hill.10@comcast.net.
My husband rolled his 401K into an IRA with ED Jones. We haven’t decided how we want to allocate the funds yet, but after talking with them I feel there fee 3.6% is very high, front load and end load on stocks, and front load only on mutual funds. I did read in your book that you think no load funds are the way to go. Our broker said he could do that as well but in the long run the no load funds still have a 1% plus fee yearly and that would cost us more over the years compared to front load. We really like our financial advisor, he is close to home and very helpful but I did tell him I thought it was too expensive. We have about 215K to invest and that would be about 7000. if we went with the front load fees. I feel if we pay 1% plus over several years on no loads it would cost more in the long run. I’m very confused on what way to go. Please advise.
Thank you.