• David H. Kinder, ChFC

Suze Orman: 'You have to be crazy' to put your money in this investment

I am copy/pasting the link and article here, but this isn't about Suze (although it could be). This is a wake-up call. If these financial entertainers are changing their tunes... then it means something is changing and it's time for ALL of us to be aware of it! *** https://www.marketwatch.com/story/suze-orman-urges-investors-to-stay-away-from-traditional-401ks-2020-06-17

Suze Orman: ‘You have to be crazy’ to put your money in this investment

Published: June 18, 2020 at 10:16 a.m. ET

By Shawn Langlois

‘Do you really think that tax brackets aren’t going to have to go up five, 10, 15 years from now in order to pay for all the debt that we’re carrying’

‘Please, if you have the ability to do a Roth 401K, 403B, or a TSP, or a Roth IRA, those are the type of retirement accounts that you want to be in. Stay away from the traditional ones.’

That’s personal-finance celebrity Suze Orman offering some advice on the “Pivot” podcast this week about what investors should be doing during the coronavirus pandemic.

With traditional IRAs or 401(k)s, savers get the tax break immediately upon the contribution, allowing their investments to grow tax-free, and then have to pay the taxes upon withdrawal. But there are better ways to save for retirement, considering the current climate, Orman explained.

“With a Roth, you pay taxes today, and in the long run, when you take it out, it’s tax-free,” she said. “Why? Do you really think that tax brackets aren’t going to have to go up five, 10, 15 years from now in order to pay for all the debt that we’re carrying? Of course they’re going to have to.” Bottom line: Take advantage of “the lowest tax brackets” we’re likely to see for a long time. As for where to put the cash, Orman said she sees a sideways stock market for a while, with investors essentially forced to partake, in light of the alternatives.

“Are they going to put it in a 10-year Treasury at 0.76%? The possibility of negative interest rates?” she said. “You have to be crazy, if you ask me, to be in bonds at this point in time.”

For most people, her suggestion is just to stick with the Vanguard Total Stock Market ETF VTI, 0.92% . Don’t even consider individual stocks, she said, unless you’re super rich.

The broad market has been holding up nicely this week, though the Dow Jones Industrial Average DJIA, 0.95% was down slightly Wednesday, giving back gains from earlier in the session. *** Now, Suze has her recommendations... and I have mine. For my position on Roth accounts, you may find this link interesting reading: https://www.davidkinderfinancial.com/post/roth-ira-on-steroids

3578 Atchison Circle
Riverside, CA  92503-5166 

Phone & Text: 


Regulatory Disclosure:

David H. Kinder, ChFC® is regulated by the California Department of Insurance as a life, accident & health insurance agent (CA Insurance License #0E54187)​.  This communication is strictly intended for individuals residing in the state(s) of CA. No offers may be made or accepted from any resident outside the specific states referenced until proper state insurance licensing and company appointments are secured for that given state. David Kinder Insurance and Financial Solutions is the marketing name for David H. Kinder, ChFC® and is not affiliated with any other company.  Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Guarantees do not apply to the performance of any particular index option on fixed indexed insurance contracts, or on projected dividends on participating insurance contracts.  Not all recommendations necessarily require insurance product purchases. Not all products are appropriate or available for all situations. Results are not guaranteed and are subject to individual situations and circumstances. Listing company client access links under the "Client Access" menu does not constitute any endorsement, filing, or approval of this website or its content by such listed companies.  Client access links are provided for client convenience only.

Not Legal, Tax, or Securities Investment Advice:

The material discussed on this web site is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice, nor does it represent any specific company or specific products.  David H. Kinder, ChFC® is not registered nor licensed as a Registered Investment Advisory Firm (RIA), Investment Advisor Representative (IAR), nor as a Registered Representative (RR) with any broker/dealer firm, and is therefore not registered with, or supervised by, the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), or any state securities regulatory office.  As such, David H. Kinder, ChFC® does not provide investment advice, specifically: buying, selling, holding, risk analysis, or any other analysis of securities, nor the asset allocation of securities portfolios. For specific investment advice on your securities investment portfolio, please contact a licensed and registered investment professional in your state.

He does offer general investment information for educational purposes and may propose alternative financial strategies that do not contain or include securities. He does also discuss the pros and cons of various kinds of accounts (such as IRS Regulated Retirement Plans) and is considered incidental advice surrounding various strategies and solutions, but does not necessarily constitute advice on the underlying securities.  

For tax or legal services and advice, please consult a licensed professional in your state.  Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary and the information should be relied upon only when coordinated with individual professional advice.

The ChFC® is the property of The American College of Financial Services, which reserves sole rights to its use, and is used by permission.  

© David Kinder Insurance and Financial Solutions; All Rights Reserved

Privacy Policy