I normally love Chuck Jaffe's columns for Marketwatch. I've mentioned them several times on BloggingStocks, and I think he provides some of the smartest commentary on investing, often exposing stuff that other journalists won't touch. However, I strongly disagree with his column about Suze Orman, which appeared Monday morning.
His comments come on the heels of Suze Orman's interview with the New York Times. In addition to coming out in the interview, she made some comments about her own personal financial situation which, admittedly, came across as arrogant:
Do you enjoy spending money? Oh, yes. My greatest pleasure is still flying private. I spend between $300,000 to $500,000, depending on my year, on flying private.
What do you do with the rest of your money? Save it and build it in municipal bonds. I buy zero-coupon municipal bonds, and all the bonds I buy are triple-A-rated and insured so that even if the city goes under, I get my money. I take a little lower interest rate to make sure my bonds are 100 percent safe and sound.
Do you play the stock market at all? I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care.
While this may hurt her populist image (kind of like finding out about anti-global warming crusader Al Gore's sky-high electric bill), Chuck Jaffe takes it a step further. According to the headline on his piece: "The multimillionaire financial-advice star's investment plan may work for her -- but it wouldn't make sense for most of her devotees."
Well no kidding. But that's sort of like saying that people shouldn't take exercise tips from Kathy Smith because she's in better shape than they are. Suze Orman offers good advice on personal finance and the fact that her situation makes her financial goals different from the average person doesn't detract from the strength of her wisdom. With a book like The Money Book for Young, Fabulous, and Broke, Suze provided strong, down-to-earth advice for a group badly in need of it.











Reader Comments (Page 1 of 1)
3-13-2007 @ 7:54PM
Mike G said...
No one who has a clue listens to Suze Orman's squawking anyway.
3-14-2007 @ 8:57AM
JL said...
Blogging Stocks has sure been kissing up to Scaming Suze lately. What are you invested in?
3-14-2007 @ 10:10PM
Bradley Ducoat said...
I am not going to waste too much of my time responding in detail to anyone who thinks Suze Orman's advice is worth two cents. My only suggestion to those who do is to get help and get it quick. You are need in need of far more than financial advice you are in need of a brain.
3-16-2007 @ 2:54PM
H said...
the ironic part is Suzywas a huge failure as a stockbroker. Maybe that is why she now invests in bonds
3-16-2007 @ 2:55PM
emwcc said...
I am sorry, but didn't anyone hear that Al Gore actually uses environmental energy. He does not use typical coal-produced electricity. He only uses energy from sources like the sun and wind.
3-16-2007 @ 2:55PM
Mauro said...
Suze is downright dangerous. I have heard her give the worst posible advice to people about Real Estate (the field I am in). Haven't listened to her in years, but I shudder to think of how many lives she has ruined.
3-16-2007 @ 2:55PM
Wild Bill Realist said...
I would have to agree that Suze's interview responces do come across as a bit arrogant but when you're on the outside looking in (like me) it comes with the territory.
Some of the best financial advise I got was from Suze on a PBS special and for all intents and purposes it was FREE! Pay off the house which I did except for the Farmers Home recapture. So - I own it but I don't, if you catch my drift.
Suze is definately in a different league than me but so are a lot of people and the only ones they wish to help are themselves.
3-16-2007 @ 3:55PM
lr Ham said...
Only desparate people get advice from her. If you have basic financial knowledge you certainly don't listen to her!
3-16-2007 @ 4:00PM
Wild Bill Realist said...
Ham, How about you define "basic financial knowledge". You still gotta mortgage?
3-16-2007 @ 5:01PM
eldee said...
Mauro, wait a minute, her "bad advice" like...pay off your credit cards (that soundS solid to me) have at least 8 months of savings to fall back on in case you are out of work (still sounds pretty good),
max out your 401K, open an IRA, pay off your mortgage,have a will, revocable trust, hmmmm...I dont know about you, but I still dont see the bad advice in any of it!
ELDEE
3-16-2007 @ 5:08PM
JJB said...
Her advice is obvious. Her manner is boring.
3-16-2007 @ 6:32PM
Iris said...
To all you anti-Suze fans; if you don't like her advice, then don't take it. Simple huh? As for me, I watch her shows every Saturday and refer to her money tips whenever I need to. Her advice about purchasing real estate has helped me avoid potential "mortgage disasters" so that I can own my own home. I admire her bravery for tackling all those bullies, especially men, who can't accept that a woman can succeed to the top. Bottom line, doesn't matter if the Pope were preaching about money, IT ALL BOILS DOWN TO YOU!!!!
3-16-2007 @ 6:33PM
Iris said...
Mike G., I think you meant no one who HAS NO CLUE will listen to Suze Orman. Perhaps you were speaking about yourself?
3-20-2007 @ 5:48PM
brian said...
Her financial spew is completely useless and PAINFUL to listen to. She should not be permitted to ramble on with that nonsense for this long..
3-16-2007 @ 6:38PM
mg said...
Suze gives sound advise, she translates the difficult subject of finance to everyone. Thanks Suze for making MONEY TALK easy. :o)
3-16-2007 @ 7:06PM
kevin said...
Suze is a hack and a fraud - don't miss the Forbes article about her falsification of her background and credentials.
3-16-2007 @ 10:27PM
Paul said...
I too, have great difficulty listening to much of Suzie's advice. I have been a money manager for over 30 years and might suggest that she have someone of knowledge (CFA/CFP) review her material prior to her broadcasts. I would limit Suzie's advice to the very novice investor. Sofisticated investors would most likely not be interested in her philosophy towards investing. Her comment regarding her equity account and "not really caring about it" is absurd. I realize she may be trying to offer a service, but one must be extreemely carful when providing investment advice to the public. Some of her recommendations have caused me to switch the channel immediately.