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Suze Orman Gives Useless 2006 Tips

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I, like many people, think that Suze Orman gives some pretty meaningless advice at times but I suppose, like many things, there is a market out there for her particular brand of attitude and advice. She has a column on Yahoo! Finance, no doubt fueled by her popularity with twenty-somethings, and she’s written a generic Tips for Prosperity in 2006 article today. None of the tips are specially tailored for 2006 in particular and, in fact, I’d argue you should do them right this second because they’re good tips and you have almost half a month in December left (plus you’ll be on vacation in a few days and this stuff won’t be in your mind anymore.

After I needlessly chastize her generic tips, I’ll give you a few of mine. (And hopefully you’ll add some of your own)

She suggests that you should get your company match in your 401(k), diversify your holdings in your 401(k), get a Roth IRA, get rid of expensive funds, get or review your homeowner’s insurance policy, get rid of your adjustable rate mortgage (ARM) if you have one, get rid of a card with “Universal Default” (you shouldn’t be carrying a balance on your cards anyway, no matter how lavish of a lifestyle she thinks you deserve or should represent), protect your identity, get life insurance, and review your values.

If you haven’t done any of the ten things, I think you should rush out and take care of it now. You have time on a lot of things (April 15th for the Roth IRA) on that list but there aren’t any reasons why you need to wait on them.

Want some 2006 specific advice?

  • Find out if your company will offer the new Roth 401(k) policy after Jan 1, 2006. It’s the first year its offered and it may have a good option for you.
  • Start researching improvements you might want to get done for your house or condo because the last energy bill will give you a tax break on energy-saving improvements. I plan on replacing my windows once the temperature improves.
  • Write these new 2006 contribution limits down somewhere:
    Account under 50 50+
    401(k), 403(b), 457 and SARSEP Plans $15,000 $20,000
    Regular & Roth IRA $4,000 $5,000

Incidentally, Flexo at Consumerism Commentary is a little more positive about these tips. Read his thoughts in a four part series on Suze Orman’s 2006 tips: Part 1, Part 2, Part 3, and Part 4.

Anyone else have any 2006 specific tips (I’ll add them to the list)?

{ 6 comments, please add your thoughts now! }

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6 Responses to “Suze Orman Gives Useless 2006 Tips”

  1. Jim Robinson says:

    Regarding limits on 403(b) contributions, I’ve noticed that most sources
    don’t detail a special case. Some people are allowed to contribute a total
    of $42,000.00 to their 403(b) accounts.

    The details are in IRS Publication 571. Basically, if your 403(b)
    contributions are composed of both non-elective and elective deferrals,
    you can take advantage of the rule to sock away more of your after-tax
    dollars. This maximum includes employee and employer contributions,
    and of course anything above $15,000.00 must be using after-tax dollars..

    So if you have a 403(b) and your employer contributes a certain amount
    regardless of whether or not you contribute, you might want to run through
    the calculations to see if you’re one of those people who are allowed
    to contribute a large chunk of your after-tax paycheck toward your
    retirement fund.

  2. thc says:

    Orman once worked as a financial advisor in the office where I work now. The folks who worked with her back then don’t have much good to say about her. But she sure sells a lot of books!

  3. hybrid cars says:

    If you are going to get a hybrid car, do so early in 2006 if possible. The new tax credit for them is not a year long credit, but one that gets phased out after a company sells 60,000 cars. For some companies, this may take some time, but with companies like Toyota, they will probably reach this mark in the first quarter.

  4. King Asa says:

    I don’ think life insurance other than the minimum automatic coverage from your employer is wothwhile for a single person in their 20′s.

  5. Great Personal Finance Posts

    A few star money articles to share with you all today from some of my favorite financial bloggers: Review of The Number by Lee Eisenberg, Part 1 Summary: Over the next week or so, I’ll be taking an in-depth look

  6. hahaha says:

    it is all about knowing basics. and alots of people don’t have basics idea of managing finance. and her basic tips helps, whether you think is meaningless or not. because there is alots idiot owing alots debt


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