Consolidating credit card debt suze orman
Even worse, by taking part of your retirement savings out of commission even temporarily, you'll lose out on significant earnings if markets rise. "You will never, ever, ever have financial freedom if you have debt." Still, she points out that not all debt is the same.Mortgages and student loans can be considered "good debt," because home loans usually have fairly low interest rates and your degree is an investment that should generate a higher income over time.Plus, the loans typically come with a lower interest rate than a traditional loan.But you might be barred from putting more money into your 401(k) for six months, meaning you'll miss opportunities to make pre-tax contributions that lower your taxable income.She says delaying Social Security until you reach 70 will give you a monthly benefit more than 75% percent higher than what you'll get if you start at 62."Living well into your 80s and beyond is no longer some rare event," Orman says — and you want to make sure your resources will last as long as you do.Suze Orman calls borrowing money from your 401(k) "the biggest mistake you will ever make" with your retirement money, especially if you use the money to pay off other debt.
"Sometimes it makes sense to own a home," Orman tells
When stocks are hurtling lower, investors tend to drop investments fast. Instead of dumping stock, she advises that you just keep investing the same amount of money each month, regardless of what the market is doing.
Using this strategy, a bad month for the market becomes a good month to invest.
"And sometimes, depending on where you live, it makes sense to simply rent." That's particularly true if you're in an expensive city.
Instead of pouring a lot of money into property, Orman says why not invest in the stock market?