recycler Wrote: ------------------------------------------------------- > ditchdigger2CFA Wrote: > -------------------------------------------------- > ----- > > > Considering our country has a negative savings > > rate, I’m glad someone is trying to reach out > to > > the typical overleveraged American. > > Is this true? I thought the savings rate declined > since the 1980s and only dipped into negative > territory in 2005. It’s been positive since 2005. > Also, if I recall, aren’t the saving rates > calculations used by the BEA fundamentally flawed? > Something about not including capital gains. > I don’t have a source, but an article I read awhile ago (year or so) stated this. With the economy the way it is, I can’t imagine it has changed.
I believe the savings rates exclude 401k (and other pre-tax) contributions – drastically underestimating the level of savings/investments by individuals.
I am a pretty frugal dude…I have a FICO in the high 700s, I pay off my CC balance every month, I never buy anything I can’t afford…I max out on my 401K with a conservative allocation for my age…I drive a car with over 100K…I always plan for a rainy day…I try to manage risk in every aspect of my life…never had a car accident, pro-actively addressed my genetic disposition to heart disease/diabetes with tough lifestyle changes, if I don’t have adequate insurance at a certain time I don’t go snowboarding, bungi jumping etc… I simply find it painful to watch Suzy Orman…her callers, guests, …IMO…are from another planet… 2 things holding the USA below its growth potential that are under our control IMO: 1. Nutritional & lifestyle choices draining the healthcare system. We can’t afford to put everyone on Lipitor. Prices of products such as cigarettes should reflect true cost to society: ie dis-proportional healthcare costs. 2. Lack of basic financial education. Clearly evidenced over the last 8 years and reflected in Oreman, sub-prime, etc… I think it is a crime that these 2 areas are not mandatory subjects in every elementary/HS. If we don’t teach are youth the importance of these 2 areas, we are in for a rough future of a “bailout” culture… IMHO.
I watch her show when I can. I obtain little bits of new information, even if much of what she says is fairly basic for those of us that work in finance. She has good bits of information on some of the complexities of IRAs and tax issues that I find helpful. Gaffano, I completely agree with you on both your points. America is becoming so obese it is downright scary. Overweight people will continue to keep healthcare costs elevated. We need more financial education for young people. She is obviously super conservative (for the most part she dislikes the stock market) and I think this is good advice for the people who call in to that show. When I watch her show, I shake my head in amazement at some of her callers. It really hits home how overleveraged some americans are. The “can I afford it” segment is actually pretty funny. The Saturday night live skits of Suze are priceless. I did not realize she was a carpet muncher
Her advice is generally very sound and informative for the average person. However, the man-hating remarks get old real quick. She often comments about men making bad financial decisions to the detriment of their frugal female partners. This doesn’t mirror most households I know about.
I love to watch Suze Orman when I can for the same reason I watch Deal or No Deal. It’s amusing to see what idiotic financial decisions Americans will make. Orman’s show: Please tell me I can afford a $140,000 boat when I make $40,000 per year, have $25,000 in credit card debt and my mortgage balance is more than my house is worth. DoND: That banker is trying to screw me by only offering me 45% of the bigger number of the two briefcases I have left. Sure, I will risk $80,000 on what amounts to a coin flip even though I have $25,000 in credit card debt and my mortgage balance is more than my house is worth. There is NO way I picked the briefcase with $0.01 in it. NO DEAL!
All you have to do is watch two episodes…it’s all the same crap after that.
I’ve never watched her show, but I see her books at chapters. I suppose it’s good she’s conservative as that’s what people need to hear- all the other books out there are like ‘even if you’re 61 and have negatives savings, my system can make you rich before you retire’, etc.
Read the book “Millionaire Next Door”…best personal financial advice book out there…