Don't buy a new car she says. Bad investment!


#1

Do you care about your financial security? Most people would say yes.

But according to former CNBC host Suze Orman, how you answer one particular question reveals if you’re actually serious about your financial health or not: “How long do you want to keep your current car?”

“If you said, ‘As long as possible,’ you get an A+,” Orman writes in a recent blog post. “Any other answer earns an F.”

Orman explains that this question is so telling because “a car is a lousy investment” that “only loses value.” While owning a vehicle is nonnegotiable for many people, the vehicle itself doesn’t need to be flashy or expensive. It’s a utility that should be driven as long as it remains safe and reliable.

“One of the best ways to build financial security is to spend the least amount possible on a car that meets your needs,” she writes. “Forget about the bells and whistles you want. Paying less helps you pay off the car faster.”

http://www.msn.com/en-us/money/personalfinance/suze-orman-lays-down-the-law-on-cars-and-money/ar-BBFv6b7?li=AA4Zjn&ocid=ientp

Watch and listen, go to minute 5 on this video. She is sponsoring an “approved” car. :joy::joy::rofl::rofl::rofl:

All paid for by YOU NAME THE FINANCIAL COMPANY.

Keep watching it. Some people here shout the word scam or fraud so easy, but are a product of the scammers and fraudsters they so much denounce without any grounds.

Oh, look it right here!

On this video she tells a caller in 2007-8 to invest her $120K (assumed number) $10K every month for 12 months. :joy::joy:
And, that she has $25M liquid assets around. I just invest $1M in the stock market, if I lose it, so what, she says. But she doesn’t invest those $25M at $2M a month as she told her caller. Right comrade? :wink::wink::wink:


#2

She is 100% right for her Audience group, who are financially broken people, by their reckless expensive habits !

You do not understand her or her addressing group.

Do not judge by her wealth, it is not correct way…


#3

She was a waitress. Then she went to work for a financial company. From there, she made her career selling trinkets to people, from advising not to buy a car, then promoting one for them, then advising not to use a debit card because it wouldn’t create any FICO score to…well…to promote her own debit card because it would. Did she prey on unsuspected individuals? Let history tell the end of the story.

She answers to a caller: Caller says she is disappointed at the market. Suze responds very clearly that if she were her, she would invest, given a fictitious number of $120K, well, $10K a month for 12 months. That’s a good advice, right?, but Suze has $25M in liquidity, so, why didn’t she invest that money in the market if she is suggesting others to do so?

She owns RE for $7M at that time, I am not sure if all paid for. She “saves” her money? She buys municipal bonds if they are triple rated??? Speaking of savings, in the investment world, people with $ millions sitting in the bank are not called smart people, that’s for sure.

Financial advisors/advisers, all sell a product, same as Schwab and Fidelity and so on they live out of OPMs, “other people’s money”.
401Ks, IRAs, life insurance, Roth, all have a purpose, a benefit, a retirement purpose, but those who can’t see the advantage of all because they think they are making it good on their preferred program are either envious or ignorant of their benefits. It is normal to distrust anything else that doesn’t fit their shoes. They don’t know, that same as themselves stuck to their favorite type of investment, what they distrust or they criticize is not an “it fits all sizes”. IULs for example, benefit others who see it as a different way, a conservative way of managing their money. They are in control all the time, except they pay a fee for cost of insurance. They can put an excess premium, or they can’t. They can loan money, or they won’t. Can they do that with a 401K? That’s all!

All and all, the thing to be seen is when the market crashes, or at the retirement age. Who is going to be laughing about the results is the goal. Those people, conservative enough, no matter if a 401K or an insurance policy within an IUL, or RE investors knowing the game will laugh it out. Some more, some less, it all will depend on who lost the most, if any losses at all.

And if they die of a heart attack, or commit suicide after losing all or half of their hard earned money, will their beneficiaries benefit from their death?

Will the money left be enough to pay their mortgages and so on? For how long?

That answer will depend on who is in charge and who is married and care for their wife and children. And those who are old enough to not care about it, or don’t care about anybody else are the first ones to call something they don’t understand a “criminal action” while feeding those who perpetrated the financial crisis years ago.

Meanwhile, the people managing their transactions and earning good %s are laughing on their way to the bank.

I judge a person, for what I know about a person like her, not the perceived idea that she is what is not. People should learn that principle, to not accuse nor judge others of something they themselves don’t understand. It is ignorance 100%.

Since her record indicates she didn’t graduate in anything related to economy, her career is full of first steps and mistakes. We all go through that, but I wouldn’t call her a fraud because I know she was promoting or selling a product or an idea.

Fraud is when you deceive others for your own gain. And the act has to be of a criminal intention, to deceive, to gain over the unsuspected individual.

Nothing is free in this world. You pay one way of the other. Except you don’t or may not know it, but you may be paying more than what you think. A good Google search on “fees” on anything will help. Oh, by the way, I brought one from David McNight as an example.


#4

Here is the story digression.

  • One Person (XYZ) tells another person A “Eat less”

  • The same Person (XYZ) tells another person B “Eat more”

You are telling the Person (XYZ) is hypocrite ! You do not understand her concept.

Here, I explain, Assume the Person (XYZ) is a Doctor

  • One Person (Doctor) tells another person (Fat Person) “Eat less”

  • The same Person (Doctor) tells another person (Lean Person) “Eat more”

Like the same way, She is telling the right suggestion to the right person.

I have listened many of her speeches, videos (years before) and I have never found her wrong even a single time. Her suggestion to the audience is perfectly right.

Since she is telling correct suggestion, people value her and she has became a celebrity (Personal finance) at this stage. If she tells wrong suggestion or ideas, she can not attain such a position in USA.

Whether you like it or not, Your view on her side is completely wrong like the same way you treat 401k investments !


#5

Cars are not investments…Never borrow or lease only pay cash…Cars are consumables not assets


#6

Of course, brand new cars are bad for investment, everybody knows that, except if you are a new and dumb financial adviser suggesting your clients in the beginning to “no!, how dare you buy a brand new car!”, to later, get a commission or get paid to advertise certain brand of car to the people you told it was a bad investment. Just remember that “idea” was suggested barely before the last recession. None the less, suggest others to invest $10K a month, but not your $25M in the stock market when it was really, really bad. Cha-chin! :smiley:

Some people see birds on the wire when they are shoes. :joy::joy::joy:


#7

Ain’t the early version of Tesla is a collectible?


#8

You won’t sell your home and invest the profits into life insurance. What’s that make you?


#9

Oh boy, the 28 years old kid again with stupid comments.
Who is selling their home? Why do I need to sell my house for an IUL or for whatever reasons? :roll_eyes::roll_eyes::roll_eyes::clown_face::clown_face::clown_face:

By the way dummy, no other name to call somebody so stupid with spread shits, IULs are not investments, I said it not long ago, though they are portrayed like that for being the best way to “LEVERAGE YOUR MONEY”.

You are just batting like an idiot against something you don’t know anything about. You think that you just throw an amount to open a policy and that’s going to be it? LOL…what an idiot! I said it before, it is not your “make me rich next day thingy!”. It is a conservative approach to retirement and there are income analysis, age, annual income, and health ratings involved. ICs won’t insure anybody just because they have money. Duh!

But to make you happy dummy, say I don’t have an IUL. I can open an IUL, put $1K COI every month because of my age and health, add an excess of $4K, loan the $4K, and still have the $4K earning 7%, or as these days, 12%-14%, Mama mia! What a deal!

What can I do with $48K loaned a year plus the earnings on the other $48K? Pay a mortgage on another house, or buy me a brand new car, my choice. Jesus! I have $96K working for me! $48K cash, and $48K in my policy. I know, you won’t understand the mathematics on this one, you couldn’t even make me a spread shit showing the compounding on an amount I gave you. Are you hard to understand simple questions? I forgot! They dropped you when a kid, didn’t they? :laughing::sweat_smile::joy:

Anything else you would like to know?

Besides the secret I got on the illustration where you dummies didn’t catch the trap I put there just to show you how stupid you are by blindly accusing me of fraud. Fraud? :sweat_smile::sweat_smile::sweat_smile::sweat_smile:


#10

The early version of the Tesla was a toy… Everyone thought it would the next Delorean. Why would anyone own own?


#11

This is why you are full of it. If it was true, you’d sell your home. You’d take all the profits and use the tricks you brag about to put the money into IUL tax free. Then you’d borrow money from the IUL to pay rent while the money is still earning you profits in the policy. However you won’t to it. Think of all that free money you’re missing out on by not using OPM and compound interest.

You didn’t even get the point of the file. You don’t realize if you borrow your whole cash value at 6% and the market returns 0% next year as it has 40% of the last 20 years, then you’re screwed. The cash value of the policy will generate $0 of income, and you’ll owe the 6% for borrowing it. You act like borrowing against the policy is zero risk, and the policy investment gains will always be more than the interest charged. 40% of the time that’s not true.

Calculating the total with compound interest in trivial FV = PV * (1 + i)^t
PV = amount invested
i = annual interest rate
t = number of years

You’re going to need to get way beyond HS math to stump me on math.


#12

100% Correct !


#13

Ok bunch of dummies, are you going to sell your properties and buy 401K?

I will be waiting for your fine response.


#14

LOL…let me repeat again so you and the dummies clicking I love you understand the concept. Pay attention idiot:

$1K cost of insurance
$3K-4K + whatever the MEC allows you to put in premiums as an excess. I will repeat it to you bunch of dummies, this is “AN EXCESS PREMIUM” and can be or not paid. Do you get it idiot or you want me to repeat it one more time?

So, as an idiot as you are, you still don’t get it, do you?

The reason I put $2800 on the illustration as a loan was to show you how incompetent you are with numbers. The returns on the premiums at 7% compound interests are stacking giving me more than what the 4.2% interests charged to the loans. That excess beyond the $2800 I loan are kept there earning more compound interests and are a cushion in case you run in trouble. You stop contributing $2800, just pay your $600, which, again, can be negotiated for less, so you are still protected, that’s it dummy.

When it comes to loans, you are so dummy. Why loan what you are not putting as an excess?

Got to go, I got to close a $46K a year policy. The guy owns a few restaurants. He is so happy to have met me. In 20 years he will retire with Jesus! Close to $600K a year. Tax free!


#15

Never lease a car. They ask you for a down payment, you make monthly payments for three years and you have nothing to show for it. You even have to pay them extra if you drive too much. Borrowing isn’t to bad if you get a very low rate on a new car, as long as you don’t pay extra for the low rate, such as losing a rebate you would have had.


#16

[quote=“buyinghouse, post:6, topic:3555, full:true”]

Of course, brand new cars are bad for investment


Brand new cars can be a good investment. I bought my toyota corolla new in 1999 for about 12k. I drove it 18 years. That means I paid $667 per year for it and did no unusual maintenance. Is it cheaper to buy a used car?


#17

Time will teach who are dummies and who misunderstand the available retirement avenues !

First 20 years, I maxed traditional 401k max allowed, then Last 10 years, I am maxing whatever IRS allowed, traditional and after tax, for retirement…I am maxing after tax too so that I can easily convert into mega backdoor Roth.

Not only me, entire family earners are maxing whatever is allowed by IRS.

Recently, four of my friends asked me about their personal finance & tax savings and all of them savings max 401k traditional.

If govt allows unlimited, talk to Trump ! , I will definitely sell my all rental homes, except primary, and max out the backdoor Roth ! Then, neither IRS, not state can touch my money once for all !

Why me alone, Warren Buffet and Trump will sell all his stakes and make it backdoor Roth and then invest wherever they want. Government will file bankrupt !


#18

@buyinghouse is showcasing his knowledge again. You can’t sell real estate and put the money into a 401k. There are annual contribution limits on a 401k (same with Roth IRA and IRA too). Roth IRA even has income limits. If you’re above the limit, then you can’t contribute new money. The tax deduction for IRA contributions phases out too. Most of us invest in stocks and RE. It’s called diversification.

You still don’t get my point about your IUL policy either. You aren’t guaranteed the 6.75% return each year. It’s what’s called a statistical average. Some years are better and some years are worse. That’s what indexing does. Per your own data, 6 of the last 20 years had a 0% return. That’s 30% of the time you IUL generates a 0% return for the year. Do you know how much compound interest you earn in a year with a 0% return? Compare that 0% compound interest you earned to the 4% or 6% you pay for the loan.

$46K at 0% return = $0 of compound interest earned
$46K loan at 4% = $1,840 of interest owed

If you borrow, then 30% of the time you’ll have that scenario. Your policy earns zero but you still owe the interest for borrowing. You keep pointing to your illustration that you’re earning 6.75% compounded per year. That’s only a statistical average. 30% of the time you earn zero. Those years are very bad for you, since you still have to pay interest on your loan.

He won’t have anywhere near $600k/yr if he keeps borrowing the cash value every month. You think borrowing the cash value is some sort of trick where you’re out smarting the insurance company. All it is is leverage, and you don’t even realize you’re using leverage. You’re betting the investment gains in the policy will be higher than your loan amount.

I know you can’t argue the math, so I expect more insults.


#19

Longer than 7 years is good enough.
I replace my car every 7-9 years and before hitting 70,000 miles.


#20

New is good as long as you can afford it…