Suze Orman’s Top Priorities for Financial Planning in 2010
by Efin Advisor | February 5, 2010
With “Nine Small Financial Steps That Will Pay Off Big in the Future,” financial advisor and consumer advocate Suze Orman offers readers some valuable advice for 2010.
In a recent article, Orman puts (1) savings, (2) retirement and (3) life insurance among the top priorities for personal financial planning. Orman’s recommendations for savings include admonitions to “save a bit at a time” and exercise more personal financial self discipline. In planning for the future, Orman encourages 401(k) participants to “max out their company match” and to invest in a Roth IRA. She rounds out her 2010 recommendations with a call to create the “most loving documents in existence” — a living trust, a durable power of attorney and a will. She concludes with a recommendation to guarantee “peace of mind” by purchasing a life insurance policy.
Experts note that more one-third of all adults carry no life insurance and the majority of those adults who do carry life insurance rely on more limited group life polices obtained through an employer.
Suze Orman notes, “If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance. Keep it simple and buy term life insurance; it’s good only for a specific number of years and then expires. That’s okay — life insurance wasn’t meant to be permanent; it’s there to protect your family before you’ve had a chance to accumulate enough funds (through investments and savings) to do so.”
She adds, “Most people should get a 20-year level term policy that has a value equal to 25 times the amount of annual income your family needs to live securely.”
To ensure that you are getting the best value when purchasing a life insurance policy, experts say to conduct research and compare life insurance quotes and prices online for different policies. Life insurance costs can vary widely depending on variables such as age, health, and whether or not a person smokes. There are a number online sources that a consumer can consult when considering life insurance: The American Council of Life Insurance (www.acli.com) has a range of information and brochures, and Efinancial.com offers a fast, secure and effective way to compare insurance rates at America’s top companies.
I’m grateful for Suze Orman simplifying the issues of savings, retirement and life insurance. Keep your eye on what matters most!
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I’d never heard the phrase the “most loving documents in existence” the living trust, the durable power of attorney and the will. A nice term for looking after others!
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If only health insurance were as competitive as life insurance, we could all “sleep a little easier” at night.
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I find automatic payroll deduction into my retirement plan and savings accounts is the most effortless way to spend on myself.
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