Suzie Orman: Wow.

It's not often I am at a loss for words. In fact, I could go on for the next two hours about how I could go on for the next two hours. But yesterday, after I had my introduction to Suzie Orman, all I could say was...

Wow.

And still… wow.

Yesterday I was fortunate enough to attend the Central California Women’s Conference. It was the first time I’d ever been to this event, despite my strong desire to attend in the past.

The event was amazing—I’m always in favor of hanging out with thousands of strong, vibrant women who believe in the power of strong vibrant women. I also am a big fan of freebies, and this event offered plenty.

But the best thing I got out of this event, besides the pens, the reusable canvas grocery totes, the candle, the lip gloss, the mail openers, the candy, the notebook, the bracelets, the watch and of course, the AWESOME CentralValleyMoms.com refrigerator magnet, was the advice. The sound, awesome financial advice I got from Suzie “Crazy and self adoring but you can’t help but like her” Orman.

As my grandmother would say, she’s a real pistol.

From the moment she entered the room to rousing cheers and an amazing, somewhat self-worshipful bio, wherein she was hailed as the single most important female of the modern age (I’m paraphrasing); to her final moments (which were10 minutes past the end of her allotted speech time), wherein she bade farewell to even rousing-er cheers, all I could think was, “wow.”

Suzie Orman. Wow.

The bits that stuck out:

• Pay attention to your finances. Do you know what you have in the bank? Do you know how much interest you’re paying on your credit cards? Stop being afraid of the information. In order to gain control, you have to understand your situation.
  
  
• Don’t be stupid with your money. When you finally get ahead, stay true to your own financial goals. Which means, don’t lend it out to save someone else from their own financial crisis.
  
  
• Get a Living Revocable Trust. If you die, it’ll save your family untold heartache and tremendous amounts of money trying to keep property out of probate.
  
  
• Get a will.
  
  
• Your FICA score is vital; take care of it. That means don’t max out your credit cards, and don’t cancel your credit cards after you pay them off. Either one affects your credit score adversely. Maxing out your cards lowers your score. A lower score means credit institutions can raise your card’s interest rate. Increased interest rates mean a longer time paying them off, and more struggle, which leads to a longer period of time with a low score, which leads to credit companies reducing your available credit, which then hurts your credit score. Seeing the pattern?
  
  
• Finally, get a Roth IRA. She said a good deal on this point, but let me boil it down to this: If you have money in a 401K (a pre-tax fund), and your company offers matching funds, take them via contributing to your company’s 401K plan. Anything beyond what the company will match, however, should be placed in a Roth IRA. Suzie’s reasoning: On top of already massive national debt, the government has just bailed out Fannie Mae and Freddie Mac. To fund the bailout, taxes will need to be raised. Who pays taxes? We do. Worse, taxes always increase over time. With a 401K account, your money goes in pre-tax. Unfortunately, you get hit with the taxes when you withdraw from the account. So if taxes rise over time, it would be more economically advantageous to pay the upfront, when they are smaller, as opposed to on the tail end, when you’re a retiree on a fixed income and can’t speculate what they will be.

It was a really fascinating speech. I came away feeling less fearful of my financial future, as I had some good advice to stand on.

For more information—and perhaps a better explanation, check out www.suzieorman.com.