Suze Orman Fan Club Blog Community

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.

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