GI Jane Finances

April 26, 2011

Suze has lost her mind!

Filed under: Uncategorized — gijanefinances @ 7:17 pm

OK, I am far from being a money guru.  Suze did start me on my financial journey. She has gone from one extreme to another.  First, she was a proponent of good debt vs bad debt, credit scores and 8% return on investments.  Now, she want people to work until 67 even though someone can have $1.3 million in assets and $116,000 in mortgage debt.  Here’s what Joann (52 years old) and Tony (54 years old) had:

Retirement:$477,947

Emergency fund: $320,520

Investments: $145,285

Home value: $360,000

Total assets: $1,303,752

Liabilities: $116,389

Suze gave them a D-/F with a $6,700 a month pension between the both of them.  They have $123,000 in a TSP.  Their expenses are $6035 a month–do not know what they are, course.  Suze said their term insurance only went to 70 years.  Also, they did not use their Survivor Benefit Plan that guaranteed income.  So,  if one spouse died,half of their retirement income would go away.  Joann thought that their investments would generate enough income to supplement any loss.

Suze based her opinion on her mother who is still alive at 96 years old.  According to the Center for Disease Control, the life expectancy for the U.S. is 77.9 years of age.  It hard to say without knowing what the heck the $6,035 are in expenses.  I usually include my saving allotments as an expense.  It would be nice to know what they are so the viewers are not in total shock when she gives people a near failing grade.

Heck, if they are in trouble I am in a world of hurt unless I plan on working until 80 years old!

GI Jane

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3 Comments »

  1. She is MAD!!!! $1.3 is a very good spot to be in for their ages.

    This is why I don’t listen to financial gurus any more.

    Comment by The Everyday Minimalist — April 26, 2011 @ 9:23 pm

    • I know she is not being realistic!

      Comment by gijanefinances — May 4, 2011 @ 11:07 am

  2. The $6000 monthly expenses are probably the mortgage, home/auto/health insurance, food, clothing travel/vacations maybe helping with supporting 96 year old mother? It’s defintely on the high end of expenses for two people but not extraordinary.

    Comment by Howard — July 20, 2011 @ 9:43 pm


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