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Tag Archives: Suze Orman

F.I.R.E. – Ignited By The Bull, Extinguished By The Bear

Do you remember this commercial? The Etrade commercial aired during Super Bowl XLI in 2007. The following year, the financial crisis set in, markets plunged, and investors lost 50%, or more, of their wealth. However, this wasn’t the first time it happened. The same thing happened in late 1999. This commercial was aired 2-months shy of the beginning of the “” bust as investors once again believed “investing was as easy as 1-2-3.” Why this trip down...

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The One Lesson Investors Should Have Learned From Pension Funds

Just recently I ran a 3-part series on the variety of things individuals believe about saving and investment which is either erroneous or misunderstood. (Part 1, Part 2, Part 3) The feedback I get when challenging some of the more commonly held beliefs is always interesting. In almost every single case, the arguments against “mathematical realities” comes down to either: An inability, or unwillingness, to sacrifice today to save more for the future, or; A “hope” that markets will continue to...

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Everything You Are Being Told About Saving & Investing Is Wrong – Part 3

This assumption on expanding inflationary pressures later in retirement is correct, however, it doesn’t take into account the issue of taxation. So, let’s adjust the chart and include not only the impact of inflation-adjusted returns but also taxation. The chart below adjusts the 8% return structure for inflation at 3% and also adjusts the withdrawal rate up for taxation at 25%. By adjusting the annualized rate of return for the impact of inflation and taxes, the life expectancy of a...

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Everything You Are Being Told About Saving & Investing Is Wrong – Part 2

In Part I, we discussed the problems with the “savings” side of the equation as it relates to building wealth. It is always interesting reading article comments as they are generally full of excuses why saving money and building wealth can’t be done. The general thesis is that as long as you have social security (which is threatening payout cuts over the next decade) and/or a pension (which only applies to 15% of the country currently,) then you don’t need to save as much.  Personally,  I...

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Everything You Are Being Told About Saving & Investing Is Wrong – Part I

Let me start out by saying that I am all for any piece of advice which suggest individuals should save more. Saving money is a huge problem for the bulk of American’s as noted by numerous statistics. To wit: “American have an average of $6,506 in credit card debt, according to a new Experian report out this week. But which expenses are adding to that balance the most? A full 23% of Americans say that paying for basic necessities such as rent, utilities and food contributes the most to their...

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F.I.R.E.’d Up – A Million Ain’t What It Used To Be

The FIRE (Financial Independence Retire Early) Movement is literally on “fire” after Suze Orman recently suggested that one would need $5 million if they wanted to retire early. “You need at least $5 million, or $6 million. … Really, you might need $10 million,” she said — short of that, it’s just not going to be enough for most people. “You can do it if you want to. I personally think it is the biggest mistake, financially speaking, you will ever, ever make in your lifetime. I think it’s...

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