Monday, March 2, 2009

The Road To Wealth

Suze Orman - The Road To Wealth

- Her short talk is pretty beginner oriented, the Q&A question is quite interesting.
- It's more of a get rich slowly attitude, don't do stupid things and save.

"Stage In and Stage out of the market/stocks"

If the stock drops 20% => sell 20%, if it drops again, sell another 20%.

Every one should get a Living Revocable Trust, get a specialized lawyer that only does trust.
He should give a Quote depending on the number of assets you want to put in the trust (bank accounts, real estate, stocks...)
The lawyer will take care of automatic transmission of ownership.

For Roth Ira, get a Index No Load Mutual funds with all the stocks from the Wiltshire 5000 not only S&P 500!
specially good for roth ira a you pay no taxes on the growth on the fund.

Funds outside of tax free IRA, will create income tax on its growth even if it loses money.

For a married couple, if one dies, transmission of all properties to the one left alive is State-Tax free but this for US-citizens only.

Money is the cause of 50% of the divorces => get a prenup to state clearly how the couple should handle money.

If you die, your beneficiary won't pay taxes to inherit your ROTH IRA, => so take the money out of it last, use 401K first.

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