Suze Orman Fan Club Blog Community

There have been some changes made to how these things work.  The IRS private letter rulings (PLR’s) often prove useful to those of us who are trying to find out how our situations can be affected by certain aspects of our investments (i.e. the technicalities).  The following are some tips on both IRA’s and beneficiary issues.

-Thanks to IRS Notice 2008-30, non-spouse beneficiaries can transfer a qualified retirement plan to an inherited Roth IRA…as long as the transfer is allowed by the plan and the Roth conversion eligibility requirements have been met by the beneficiary.  Beginning in 2010, all plans must allow these transfers.

-IRA owners may be able to avoid the 10% penalty on SEPP (substantially equal periodic payment) distribution problems due to a custodian failing to make the payment, by asking the IRS for relief.  It seems that they are more understanding now that problems such as this could become more and more common as financial institutions engage in mergers.

-Naming an irrevocable discretionary trust as your beneficiary, instead of a revocable trust, can help keep creditors from claiming your IRA funds upon your death.

-Be sure your beneficiaries are “readily identifiable”, by the IRS’ standards, to avoid tax trouble for them in the future regarding the inherited IRA.

-When considering disclaiming an IRA, consult a professional for advice.  A mistake in the disclaimer could spell lots of hassle later on.

-When naming a minor(s) as a beneficiary, make sure you also name a custodian or trust to hold the inherited IRA.  Again, failure to do so could create unnecessary tax problems.

I hope these tips are helpful.  If any of my information is ‘off’ or otherwise not useful, please feel free to school me!  I’m not an expert by any means and am always looking to expand my knowledge.

Visit Ambrosiavenus’ Chronicles of Caelan Where a rogue Elven Princess can be herself!

Suze’s back and here we go!

Opening Remarks:
Let’s pay attention this week to the Student Loan crisis!  Basically,the problem is that college is so expensive, loan debt accumulates with higher interest rates, and students cannot even eliminate these loans through bankruptcy.  You wind up paying back the loans for the rest of your life.  Congress: get involved and put a stop to this viscous cycle!

One on one:
Missy is a woman who is paying back student loans and the loans are also under her parents’ name.  Missy wants to get her parents’ name off the loan since it is not their responsibility.  Suze says that this is an impossibility; unless, Missy use another loan to pay off the student loans (although Missy is ineligible for getting a loan from somewhere else).

Now you know:
Apparently, student loans can garnish up to 15% of your paycheck.  This is the last resort if you are unable to make payments.  This is a very serious issue and you should really be careful when getting student loans.

Phone calls:
Tony
He is unsure about what to do with his equity when he has a son who is heading to school.  He wants to allow his son to get the best financial aid but is not sure what financial aid agencies look at.  Bottom line: don’t even think about putting your equity into an annuity in order to get your children better financial aid.  Suze drops a plug for www.finaid.org for further information.

Linda
Deep in credit card debt, but is living a lie (she lives a luxurious lifestyle).  Basic advice is to get honest with yourself and with your friends!

Margaret
Wants to take her money out of IRAs and put into a Money Market.  Suze screams because the woman has 100% of her money in the IRA.  DIVERSIFY, girlfriend!  AND!  Her assets are down 40%!!!  Suze tells Margaret to ditch the financial advisor and start doing things with her money for herself.  After the call, Suze tells us: “Did you hear that?  40%!  And she won’t ditch the advisor because why?  She is worried about hurting his feelings?  Give me a break.  You need to be careful with your money, people.”

Can I afford it?:
*David- $359 for Kindle (gift)- DENIED
*Roni- $5,000 for Drapery Business- DENIED
*Joseph- $7,000 for trip to Rome- APPROVED
*Nancy- $320 / quarter for son’s gym class- APPROVED
*Anne- $5,000 for bathtub- APPROVED

Phone calls:
Matt
He is worried about his wife’s attitude with money.  Suze asks Matt to reassess how much he actually “likes” his wife.

Melissa
Selling her condo and moving in with her fiance.  She is worried that her fiance is being stingy because he doesn’t want to put her name on the deed; when he has paid for it all by himself.  Suze tells her to chill out because he is not being stingy.

Email:
In case anyone is interested, Lou is in a relationship with someone named Lillian.  They have been together for two years and he is waiting to earn more money before he proposes to her.  Yay for being financially responsible, Lou.

Jessica, writes an email to ask about 0% credit cards.  Suze warns that while it is a smart idea to use this as a means of investing, you should always be able to pay back the debt in full in case anything with the rate changes.

Closing remarks:
Suze hates two things: the first was people that lie.  I do not remember the second one.  If someone could please add it to the comments, that would be great.   Until next week!

Visit Kevin’s Go Cubs Go for all the latest on the Chicago Cubs.

After some crappy vacations I learned from some mistakes and I want to share my wisdom.

1) What is Cheap, it can become Expensive: Be aware of shady promotions on the net, they will offer everything you want and it won’t come cheap at the end.

2) Bring your own medicines. Some medicines can be expensive depending on the country you are visiting and some others are sold by prescription even if in your home country they aren’t sold that way.

3) Investigate the socio-political environment of the country you are going to visit: Simple as it sounds, if you want to avoid an incident of bigger proportions you better stay away.

4) Know the places where you can buy your memorabilia or things, it is better to avoid buying something bootlegged that will turn to be more expensive in the end and a big disappointment

5) If you are traveling with babies, always be prepared and bring extra formula just in case, as well diapers. Also research with your pediatrician about how to make the experience more comfortable to your child while flying.

Visit Gustavo R. LeQuerica’s The Pop Culture of Gus Lequerica Today.com’s Pop Culturist.

Imagine you were just about to get married. You’d want everything perfect wouldn’t you? An ideal marriage, in an ideal venue with the ideal man or woman. Well… If you are not careful your wedding day could be the cause of your divorce.

That’s right, Suze Orman has been saying for a long time that it’s about how much money you can afford. Yet, if you spend too much money and go into debt then it could quickly spiral out of control.

Although in an ideal world that marriage you always dreamed of is a day worth spending more on. It is only one day in your life and if your marriage is to last a lifetime then the money you spend on your marriage day needs to be within your budget.

I hate to put a downer on things, but if you carry on spending more than you can afford sooner or later you will find yourself in a financial mess. That’s why Suze Orman’s advice is always worth listening to.

Suze Orman would advise that although your marriage is a special day you need to stop and think about whether you can really afford all the money you are thinking of spending on it. After taking a reality check and looking at the world of recession we now live in you might decide that what you were going to spend is out of your price range. That doesn’t mean you have to become like Scrooge or stop spending all together. It just means that you need to be careful and think about how you are going to spend your money before you spend it. Maybe you could choose one special treat that you always wanted to do on your wedding day and budget around that. So, instead of inviting all the distant relatives you only invite close friends and family. Or instead of going to Jamaica for your honeymoon you go to Spain instead. It is all about making smart decisions. You don’t have to lose out, you just have to think wisely. You could actually have more luxuries if you took the time to juggle the expensive treats around a little. Instead of getting a marriage planner you do it yourself. Or instead of that expensive photographer you give out disposable camera’s and ask family and friends to take photo’s instead.

The number one reason for divorce is fights about money. Yet this could be so easily avoided if couple’s just stopped and planned their finances better. So many couples go into marriage with rose tinted spectacles on thinking their money is going to last if they keep spending more than they can afford. It seems ironic that the number one reason for divorce is fights about money when most people spend more than they ever will do on that one day of getting married. Your marriage could actually cause your divorce if you are not careful. Following simple steps that Suze Orman suggests could mean that you enjoy a very special wedding day and a long, prosperous marriage.

Visit Mickie at either of her Today.com blogs, The Osbourne’s or her blog about the Performing Arts.

Whenever you are investing frequently, many times you are too busy figuring out which investment to buy to really educate yourself on how to take care of your money.  And remember, no one else has a vested interest in your money than you do, so just like training yourself to cook and clean, and do a marriage right, you need to learn responsibility for your finances.

Suze Orman’s latest book, On the Road to Wealth is a great, up-to-date resource book to have around the house, or visit constantly in the library to get the skinny on any money topic you need.  It’s surprising how many homes have an all around book to tell them about medical issues, but no resource guide for money.  This would be the one.

If you want a year long project to prepare yourself for the day that making money in the market is as easy as shooting fish in a barrel, begin the study of this book one chapter a week.  Don’t just read it and say, “What a nice chapter.  I think I’ll get around to that sometime.”  Embrace it.  If it tells you to get your trust made, figure out how you can make that happen, and act on it.  It’s the responsible thing to do.  If it tells you to get disability insurance, what are you waiting for?  Get on it and get it done.

The Road to Wealth is thick and meaty.  You’ll need time to get through it.  But tackling it one week at a time can make a huge difference by the time a year has gone past.

Visit Beth Rose’s Wear Many Hats for a different perspective for the informed investor.

Getting into debt is a horrible feeling where you feel like you are not making any progress. It can be stressful and soul destroying. Many people spend too much at Christmas time and as a result have to pay for it afterwards. It is easy to over spend at Christmas time especially if you have children who demand that you buy them a particular toy. After Christmas you are left with debt piling up and the letter’s start dropping through the letter box. What is the answer?

Well, fortunately Suze Orman has some great advice that can help keep you out of debt if you apply it to your life. A woman wrote to Suze Orman saying that she owed $20,000 on her credit cards, $165,000 mortgage, car payments and a home equity loan and lives life to the fullest. The lady who is struggling to pay off debts manages to take her kids to all the best water parks, museums, the YMCA and Disneyland frequently. The lady is of the belief that being in the red doesn’t matter and carries on overspending.

Whilst debt in itself isn’t bad explains Suze Orman to this lady. It is the manner in how you cope with it that’s important. Although on the surface it looks like this lady cares about her kids if she ignores the debt and carries on spending the way she is then her kids will eventually suffer the consequences.

Whilst this might seem harsh, if you over spend at Christmas and carry on getting into debt then your children will suffer eventually. As Suze Orman explained to the lady if she cares about her kids then she also has to care about how she spends her money. The example this lady is teaching her kids is wrong as they will think that money doesn’t matter and that over spending is all right.

Orman makes the point that this mother will not be able to afford her children’s education and will probably rely on her children in later life when she has no retirement money. It makes sense then that over spending is wrong and looked upon as bad debt versus good debt.

Visit Mickie at either of her Today.com blogs, The Osbourne’s or her blog about the Performing Arts.

This is going to be a short review. I want to say that the book is really good, but it doesn’t reflect reality at all of personal economies, it can give an idea if you don’t know about home economies but overall is not the best book about personal finances. If I have to recommend a book about personal finances, I don’t think I would recommend any because they all can give an idea but not the complete truth as home economies varies from people to people.

Visit Gustavo R. LeQuerica’s The Pop Culture of Gus Lequerica Today.com’s Pop Culturist.

Ooh boy, Suze is gonna smack down on Bernie Madoff tonight…  My goal is to try and not sound so long winded this week, so I hope I do well!  If you don’t like it/like it, leave a comment and let me know.

Opening Remarks:
Suze asks you: “How would you feel if all of your life savings was there one day and gone the next?”  My answer: Probably really crappy, wouldn’t you think?

Guest:
Janet
A victim of the Bernie Madoff scandal, Janet lost $5 million.   This segment was cut into two parts.  The first part involved the story of what happened and what Janet learned from all of this.  Suze also tells Janet that she was one of the luckier victims because Janet still has some money to her name and owns her home outright.  The second part involved Janet’s question: “How do I get back on my feet?”  Suze’s advice: “When a major tragedy occurs, I have a rule that you should keep your money safe for 6 months following the tragedy.”  Basically, leave it in a savings account, CDs, or something like that.  Suze leaves us with her three credos for investing:
1- It is better to do nothing than to do something you do not understand.
2- You are never to talk yourself into trusting anyone
3- You’ve got to trust yourself more than you trust others.

Can I Afford It?:
*$23,000 for a 30 Minute Ride on a Russian Fighter - DENIED
*$10,000 for a Sun Room - DENIED
*$5,240 for a Pinball Machine - DENIED
*$35,000 + $300/mo for Country Club Membership - DENIED
*$5,500 for Cataract Surgery for Dog - APPROVED

Phone Calls:
Kathy
Apparently the question was totally avoided because Suze was more focused on the social aspect of the problem.  Kathy’s husband threatened to call the police on her if she opened her husband’s mail.  Suze screams that Kathy should divorce this guy, Kathy argues that he is a good man in so many other ways.  In the end, Suze comes out on top, of course, and tells Kathy that her husband better allow her to open his mail.

Email:
The writer’s husband has worked for Lowes for 22 years and owned a substantial amount of stock in the company.  The husband has the option of pulling the money from the stock and putting into mutual funds (or something else); however, the wife does not want to sell until the stock hits a certain price.  Suze screams at the writer: “Have you lost your mind?” Bottom line: “Diversify, and diversify now!”

Closing Remarks:
Suze reiterates the three credos that are listed above.

Visit Kevin’s Go Cubs Go for all the latest on the Chicago Cubs

Suze Orman shares her book and answers viewer questions live in New York City last week at KMBC/KCWE. She speaks about mortgages, saving money and of course having an action plan in 2009.

Visit Violette’s BigShoes, a blog for women from all walks of life.

So, you lost your job.  Maybe you lost your home.  You had to downsize or sell one of your cars?  Were you unable to give everything you wanted to for Christmas?

As you’re going through this difficult period, you may be wallowing in self-pity and wondering when the economy is going to turn around.  When will things change for you?  More specifically, when will your economic situation change?  With all this talk of “bailouts”, who will save you?

Yes.  You’ve had a tough break, but Suze continues to remind us “Only YOU can save yourself.  Nobody can ever save you.”  We can’t look to the economy…or the government…or charitable organizations to change our situations.  Sure, they may help to give us a boost, but the real change begins with ourselves…our inner selves.

According to Suze, recessions come and go.  They are a “natural part of economic life”.  We just have to make sure we are prepared for them.  If we are not prepared, we must also blame ourselves.  While it’s easy to blame the economy, it’s our choices that have helped to put us in the positions we are in by not planning for the future and by living above our means.

Therefore, when it comes to ending financial troubles, Suze enlightens us:  “It’s going to end when you change your mind about how you perceive what’s happening.”

In order to save ourselves, we have to:

1.  Get real with ourselves.  Know what we can afford and learn to live with that.

2.  Remember what’s important, like good health and a strong family.  We are more than our possessions.

3.  Keep our money safe by diversifying banks and making sure our accounts are FDIC insured.

4.  Make a financial plan and stick to it.  Budgeting is essential.

Even if you were not adequately prepared for this downturn in life, it is not too late to make changes and get it together.  What we do today will affect tomorrow.  By taking the proper steps for our future now, we can make sure we are in a better position the next time there is a financial crisis.  You can save yourself!

Visit Glue 4 Families for more posts on family life by Davida.