A huge thank you goes out to Suze Orman for dropping endless gems on us this morning. The entire BC interview with the financial guru was full of knowledge that was geared towards retirement. Though the word "retirement" is usually associated with the 50 and over club, there was an important stress of the younger generation taking heed to her advice.
As youths, we often don't associate the money we spend from our parents to have any real effects on the future. It's a mistake that we easily abuse because it's so accessible. Thankfully Suze's 11th book, "Winning Strategies To Make Your Money Last A Lifetime" puts wealth in a more realistic perspective. That being said, here are 3 major takeaways from Orman's interview that will allow you to enjoy the retirement you deserve and avoid facing any financial hardships your OWN kids might boost you into.
- Start saving early
"You are 25 and you put $100 a month away into a broth IRA. And a Roth IRA is in a retirement account after tax. You don't get a tax write off for it, you fund it after tax money. You put $100 every month in a Roth IRA...you do it for 40 years, with average market returns of about 12%, annual average returns you'll have $1 million by the time you are 65."
- Pay off all debts, include mortgage
"The best to help yourself is by reducing your expenses...You wanna know why especially financial advisors tell you not to do it [pay off mortgage]? Cause when you take that money and you pay off the mortgage on your home, they don't access to that money to invest for you, so they can't make money off of your hard earned money."
- Generational wealth is not always attainable for middle-class
"It's not easy. There's a highway into poverty and there's not even a sidewalk out...You have to want it."
There's also a special surprise gift for listeners of her chat so check out her story of struggling while growing up in the south side of Chicago, losing all her money to a crooked broker and more above!