If You Knew Suze Like We Know Suze
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If You Knew Suze Like We Know Suze
You wouldn’t listen to her advice.
Posted Tuesday, February 10, 2009 - 10:56am
"Tell me what I need to know," people often say to me. "Here is what you need to know," I answer.
—Suze Orman, The Road to Wealth
How a bottle-blond former waitress and self-described "55-year-old virgin" with a taste for the good life became the financial messiah for millions of Americans might be a fun Lifetime original movie. Why the masses continue to invest their faith in Suze Orman in the wake of a financial meltdown she never saw coming is a more timely question. The answer is complicated.
If you've managed to avoid Orman over the past decade, you don't watch Oprah, CNBC, or PBS, and you've probably never entered an airport bookstore, where her toothy, cougarlike visage graces the covers of numerous best-sellers, the latest of which, 2009 Action Plan, has more than 1 million copies in print and has, according to her publisher, been downloaded 2.2 million times at www.suzeorman.com. There, you might also be convinced to open an Orman-sponsored TD Ameritrade brokerage account or buy one of the products that she also sells on QVC, including: the Suze Orman FICO Kit Platinum Version w/Action Planner ($47.70); the Suze Orman Identity Theft Protection Kit w/Anti-Spyware ($39.78); and Suze Orman's Organize and Protect Financial System ($66 plus S&H; Easy Pay! Installment plan available).
Orman is that most modern breed of capitalists, the human-industry, self-mythologizing. "Suze has a unique grasp of the role money plays in our lives, as well as the gift of timing: she tells us exactly what we need to know, precisely when we need to know it." So, at least, claims the jacket copy of one of her books. She addresses her fans either as "my friends" (learned from John McCain, perhaps?) or as "girlfriend." Although she published a comprehensive—and very useful—guide to personal finance in 2001, her first two best-sellers focused on the "emotional roadblocks" to financial freedom. Suze has a lot to say about emotional roadblocks, among other things: "Falling in love is simple—or so it often seems in retrospect"; "Tears are God's way of forgiving you"; "You will never achieve a sense of power over your life until you have power over your money"; and "The stock market is like a pot of soup."
She has less patience for statistics. Although study after study has shown that personal bankruptcies are caused primarily by catastrophic events like divorce, job loss, and, above all, medical bills and that most of us are struggling with a gap between our income growth and the soaring cost of necessities like housing, Suze tends toward psychological causes that invariably blame the victim. Who is struggling these days, according to Suze? "People who grew up without much money and later earn a comfortable living sometimes spend too much to make up for what they didn't get as children. ... People who feel entitled to the good life, or are unconsciously copying a mother or father who lived beyond her or his means. ... If you feel the need to impress people with what you have rather than with who you are, you are at high risk for credit card abuse." This from a woman who spends $500,000 a year chartering private jets and who sells "Cruise With Suze" packages on an Italian luxury liner. (She has also hawked for GM, claiming that leasing a luxury car—you know, the kind that people drive to impress others—is a terrific financial decision: "If you ask me, that's smart money!") No wonder she winks more than Sarah Palin, girlfriend.
But it is not Suze's hypocrisy or even her intellectual laziness that really bothers me; no, that would be something Suze "loves" called "dollar cost averaging," which involves buying the same stock over and over again as it falls. "It's a great opportunity for you when the value of the shares drops," claims Suze in the inaptly named The Road to Wealth, "because you can buy shares at ‘bargain' prices and average down your cost per share." Oh, where to begin? Maybe with the obvious: Since when does throwing good money after bad make you rich?
Comments
Right on, Egrey
I had the exact same reaction to this article as you: If we're not supposed to dollar cost average or invest in stocks, what are we supposed to do? It's pretty gutless to criticize her for this merely on the basis that she herself is rich enough that she doesn't need to have her money in the stock market. (I assume she does own multiple residences and maybe other real estate as well, though.) So what? Also, besides the mistake about her shilling car leases for GM (nevermind that she is constantly railing on her show that she thinks it is stupid to lease a car for most people), I would also note that a few years ago, she was cautioning people about ARM's that were going to be resetting in a few years, telling people they were a bad deal and also cautioning that they were going to cause problems when the loans were reset. Had I been in the market for a house during the bubble, I would have known not to take out one of these mortgages had I been watching the Suze Orman Show. So, lack of prescience? It's in the eye of the beholder. Also, I would note that while she is always lecturing people about credit card debt, she also always tells people they need to have at least a 6-month emergency fund in case of disaster such as job loss or illness. So, it's not as if she doesn't know what are the diaassters that loom that can cause bankruptcies. It's just that she wants people to stay out of debt and build up savings. Crazy talk!
suze orman
well i watch suze orman regularly and i've never heard her say that leasing a car is a good idea, she actually says it's the worst thing u can do, and she's been saying it now for over 5 years also on her show for the last couple of years she's been saying that things were going to blow up the way they did...I think you've taken her advice out of context and have really used this forum to project your personal opinion and dislike of her and not to inform anyone as to why she should not be listened to. I've never heard her tell anyone to invest in the stock market the way you're making it out to be. There are too many false statements in your article to go into one by one but I agree with a previous comment this article is something you'd find on facebook not here.
You actually give financial advice?!
Does this moron have a clue!?!? She never hocked leasing a car. I've watched her since the beginning. It was zero financing she was referring to. Also, her Cruise with Suze was cancelled and she has multi-millions which means she can afford a private jet. Get your facts right, you tool! A little jealous that no one knows who you are with all of your "financial wisdom"? And another thing, personal finance is just that…personal! There is plenty of emotional reasoning behind most of life's financial problems. What is the biggest reason for divorce…money! Duh. She quotes statistics frequently. You'd know that if you actually watched the show but I’m sure you're too busy at your weekend job as McDonald's fry guy. As for the "less than 3% in stocks" comment, she responded to that last year and moneycentral.com posted the reponse in an article. She has more than enough money now and this is where she chooses to put her money now that she has made it. Why is that bad for her to advise her viewers who are far less financially sound then she is to invest in stocks which, by the way, are the better investment over the long term? Furthermore, Money, Kiplinger, Benjamin Graham (that's Warren Buffet's mentor in case you don't have a clue who he is) all tout the advantages of dollar cost averaging. Did you even finish high school?
Suzi Orman
I disagree with this article. I am a retiree who has listened to Suzi for the last few years. I believe she has helped a lot of people, especially women, to make some wise decisions. I had most of my funds tied up at a Fidelity PAS fund which cost me quite a bit of money for their "financial advice". Two weeks before the big mess started I tried to get my money into a money market fund which Fidelity talked me out of. After listening to suzi a few days later, I called them back and insisted they transfer my money into a money market. Thank God, I listened to her because although, I lost some money it was nothing like what some of my friends lost. I don't care how much money Suzi makes, it fact, as a women, I am very proud of her. Before this last book was published, it was available for free on the internet. I think people like you are just jealous of her success.
We'll do a story on dollar-cost averaging
Thanks for all the passionate comments. A good question has been raised here about why Scurlock doesn't think dollar-cost averaging is a good investment strategy. I've just assigned a story about the pros and cons of this strategy, and will publish it as soon as it is ready.
James Ledbetter
Editor, The Big Money
Glad To See a Story on Dollar-cost-averaging
I think it's an important topic and, in my view, represents a useful tool that every day investors should utilize...just make sure you assign a qualified journalist to report on it (ie, anyone other than Mr. Spurlock).
Mr James Scurlock what a
Mr James Scurlock what a shame you are so jealous of Suzi's successes. I found your article offensive, not because you don't think she is a valid Financial Advisor, you are certainly allowed any opinion of her skills that you wish. You being a supposed Financial Advisor yourself, have earned that right. My beef with you is that you began your article, and later reinforced, that she is not sexually attractive to you ( bleach bottle blond, Cougar faced,55 yrold,unmarried etc)This is supposed to underscore her unworthness as an Advisor ?? She is a successful "former Waitress", who sells herself quite well, speaks in terms the rest of us Bleach Blonds can understand, and rightfully enjoys the fruits of her labor.What the heck is wrong with you ?? Sour grapes indeed....by the way, get a haircut !!
What Would You Have Us Do Scurlock?
Yes, Ms. Orman is loaded. Yes, she likely spends more than I'll ever earn. I get that. But her lifestyle does not necessarily implicate her advice, namely that of dollar cost averaging. Let's face it, Americans don't earn pensions any more and social security might not be there for folks born after 1970. So, given that reality, what, pray tell, would would Mr. Scurlock have us do? Invest in pork bellies? Day trade? Fine collectible plates from the Lincoln mint? Shoe box under the matreess? Unfortunately, Mr. Scurlock does not deign to reveal his can't miss investment strategy. The fact remains that the stock and bond markets are really the only option that Americans have for their retirement. Moreover, most Americans are woefully ignorant when it comes to making financial decisions. And so, rather than lose their shirts trying to day trade or throwing their money at the latest financial fad (real estate anyone?), the vast majority are far better off placing their savings in well balanced low cost mutual funds and contributing to those funds on a bi-monthly or monthly basis. In fact, many finacial companies (such as Vanguard) offer low fee target funds that allocate one's assets over time, gradually shifting from stocks (more risky/more potential gain) to bonds (less risky/less potential gain) as one reaches retirement age. Is such a strategy a guarantee for sucess? Of course not! But the fact is that none of us can expect any kind of fianncial certainty in today's world. So, bottom line, if you're young, hang in there, hope for the best, and make sure your asset allocation always matches with your age/retirement goals. If your old, ask yourself whether you are overly invested in equities given the lack of time you have make up any losses...Oh yeah, and be sure NOT to listen to ill-informed blowhards that offer no viable investment alternatives. Egrey
Mingus Envy
There is no article here. This nonsense belongs on facebook. I respect your right to moan in public but maybe next time you could do it on a subject you know something about.
It's the Sham Wow
I think most of you are missing the point of the article. Suze is SELLING A PRODUCT! She is selling products for financial institutions, she is not doing this out of the kindness of her heart. I agree that you must provide some value for the dollar, sure, she will have some good things to suggest, but make no mistake. She is a sales person, and a pretty good one judging by those numbers. If you follow all of her advice to a "T", you may make some money. But if you are the type that would buy her latest "widget" then you will probably spend it on a monster truck (or some other lame thing you don't need.) I thought the article was as fair as Suze's representation of her products.