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    The Money Class: How to Stand in Your Truth and Create the Future You Deserve

    3.5 102

    by Suze Orman


    Paperback

    $16.00
    $16.00

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    • ISBN-13: 9780812982138
    • Publisher: Random House Publishing Group
    • Publication date: 01/10/2012
    • Pages: 320
    • Sales rank: 210,471
    • Product dimensions: 5.10(w) x 7.90(h) x 1.00(d)

    Suze Orman is a two-time Emmy Award–winning television host, #1 New York Times bestselling author, magazine and online columnist, writer/producer, and one of the top motivational speakers in the world today.

    Orman has written eight consecutive New York Times bestsellers and has written, co-produced, and hosted seven PBS specials based on her books. She is the seven-time Gracie Award–winning host of the Suze Orman Show, which airs on CNBC, and of the forthcoming Money Class on OWN: The Oprah Winfrey Network. She is also a contributing editor to O: The Oprah Magazine.

    Twice named one of the “Time 100,” Time magazine’s list of the world’s most influential people, and named by Forbes as one of the 100 most powerful women, Orman was the recipient of the National Equality Award from the Human Rights Campaign. In 2009 she received an honorary doctor of humane letters degree from the University of Illinois at Urbana-Champaign and in 2010 she received an honorary doctor of commercial science from Bentley University.

    Orman, a Certified Financial Planner™ professional, directed the Suze Orman Financial Group from 1987 to 1997, served as Vice President—Investments for Prudential Bache Securities from 1983 to 1987, and was an account executive at Merrill Lynch from 1980 to 1983. Prior to that, she worked as a waitress at the Buttercup Bakery in Berkeley, California, from 1973 to 1980.

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    Table of Contents

    How to Enter The Classroom xv

    Class 1 The New American Dream 3

    Making Change

    The Dreams of Tomorrow Reside in Today's Choices

    The Money Class Curriculum

    Class 2 Stand In Your Truth 11

    Lesson 1 Finding Your Truth: A Personal Financial Accounting 13

    Lesson 2 Living Truthfully: How To Stand Tall In Your Reality 15

    Focus on What Is Real Today... and What You Will Need Tomorrow

    Live Below Your Means but Within Your Needs

    The Pleasure of Saving Is Equal to the Pleasure of Spending

    Define Yourself by Who You Are, Not What You Have

    Lesson 3 The Foundation Of All Truthful Living: The Power Of Cash 21

    Debit Card Rules

    The "Life Happens" Fund

    Credit Unions: A Great Place to Save

    Safety First with Your Savings

    Saving for Big-Ticket Items

    The Truth Will Indeed Set You Free

    Class 3 Family 28

    Lesson 1 How to Build Honest Family Relations 31

    Opening the Lines of Communication

    Lesson 2 How To Raise Young Children To Stand In The Truth 34

    Your Priceless Legacy

    Set the Right Tone

    Imparting Good Values When It Comes to Money

    Money Lessons for Children

    Money Lessons for Tweens and Teens

    Money Lessons for Teenagers Heading to College

    How to Handle Money Gifts and Savings

    The Three-Option Approach

    Lesson 3 How To Create a Financially Honest College Strategy 48

    Who Should Save for College

    The Best Way to Save for College: 529 Plans

    UGMA/UTMA

    Coverdell Accounts

    How to Invest Your 529 Plan

    The College Talk Every Parent Must Have with a High School Freshman

    Borrowing Rules for College Loans

    The Risks of Private Loans for College

    Stafford Loans

    PLUS Loans

    How to Choose the Right School

    Lesson 4 How To Help Adult Children Facing Financial Challenges 64

    How to Handle Student Loans That Are in Default

    How and When to Help Independent Children Who Are in Financial Trouble

    Lesson 5 The Conversation Every Adult Child Should Have With His Or Her Parents 69

    Building Family Financial Security Under One Roof

    Updating Legal Documents

    When a Parent Remarries

    Lesson 6 Advice For Grandparents: How to Build a Lasting Legacy 73

    Follow the Parents' Lead

    Pay It Forward

    Give Experiences, Not Things

    Class 4 Home 77

    Lesson 1 The Truth About Home Values 81

    A Decade of Extremes

    A Home Is a Savings Account, Not a Hot Stock

    Financing Is Cheap, but Not Easy

    Lesson 2 When It Makes Sense To Rent 84

    The Math of Rent vs. Buy

    Advice for Owners Who Now Want to Rent

    Lesson 3 The New Rules Of Buying a Home 87

    Set a Budget That Satisfies Your Needs

    Know Your Income Limits

    Aim to Make a 20% Down Payment

    A Special Note About FHA-Insured Loans

    Special Rules for Buying Condos and Co-ops

    Where to Come Up with the Down Payment

    Opt for a 30-Year Fixed-Rate Mortgage

    Understand the Risk of Distressed Property

    Lesson 4 What To Do If You Are Underwater 98

    If You Are Underwater and Cannot Afford Your Mortgage

    Loan Modificaiton

    Short Sale

    Foreclosure

    If You Are Underwater but You Can Afford the Mortgage

    Lesson 5 How To Reduce Mortgage Costs 110

    When It Makes Sense to Pay Off a Loan Ahead of Schedule

    The New Realities of Refinancing

    Refinancing Rules

    Lower Your Mortgage Costs Without a Refinance

    Lesson 6 The Dangers Of Home Equity Lines Of Credit 114

    The Dangers of Rising Interest Rates and Falling Behind on Payments

    Home Equity Loans

    Lesson 7 Reverse Mortgages 116

    Reverse Mortgage Basics

    Lesson 8 Investing In Real Estate 119

    What You Need to Know Before You Buy Investment Property

    What to Do with an Investment Property That Is Underwater

    Class 5 Career 122

    Lesson 1 Advice For The Employed 125

    Build Your Plan-for-the-Worst Fund

    Live Below Today's Means

    Grab Your Full Retirement Bonus

    Make Your Case for a Raise and Promotion Through Your Work

    How to Ask for a Raise

    Change Your Attitude Before You Change Your Job

    Lesson 2 Advice For The Unemployed 133

    Cut Your Spending Immediately

    Do Not Dip into Your Retirement Savings

    Make Sure Your Credit Profile Remains Strong

    Do Not Go Back to School to Avoid a Hard Job Market

    Get to Work as Fast as Possible, Rather Than Holding Out for a Better Offer

    How to Deal with a Steep Pay Cut

    A Special Note for Stay-at-Home Moms

    Lesson 3 Starting (And Running) Your Own Business 139

    Launching a Business: Can You Afford It?

    Where to Get the Money to Start Your Business

    A Few Words About Micro Lending

    Running Your Own Business

    When to Expand

    When to Close

    Standing in Your Truth in Business

    Closing Down a Business Responsibly

    A Note About the Retirement Classes 153

    The Money Navigator: A Special Offer for Readers of The Money Class 154

    Class 6 Retirement Planning: Getting Going In Your 20S And 30S 155

    Lesson 1 Time Is Your Greatest Asset 159

    Getting Started Early

    With Lower Returns, Savings Are More Important Than Ever

    Lesson 2 Retirement Accounts Explained 161

    Retirement Plans Offered by Employers

    Retirement Plan Withdrawal Rules

    Non-Workplace Retirement Accounts

    Nondeductible IRAs

    Roth IRAs

    Retirement Plans for the Self-Employed

    Lesson 3 How Much You Need To Save For Retirement 166

    The Retirement Formula

    The Best 401(k) and IRA Strategy

    A Word on Vesting

    Where to Open an IRA Account

    Lesson 4 Investing Your Retirement Money 173

    The Ups and Downs of the Stock Market

    Dollar Cost Averaging

    How Much to Invest in Stocks

    Choosing the Best Options Within Your 401(k)

    How to Build the Best 401(k) Investment Portfolio

    Exchange Traded Funds

    Bond Investments

    Retirement Planning Mistakes to Avoid

    What to Do with Your 401(k) When You Leave a Job

    Class 7 Retirement Planning: Fine-Tuning It In Your 40S And 50S 190

    Lesson 1 Deciding When It Makes Sense To Pay Off Your Mortgage 194

    Questions to Ask Yourself

    The Benefits of Paying Off Your Mortgage

    How to Pay Off Your Mortgage Ahead of Schedule

    Lesson 2 Have A Realistic Plan For Working Until Age 66-67 203

    Your Work-Longer Game Plan

    Lesson 3 Delay Your Social Security Benefit 207

    Social Security Basics

    Social Security Strategies

    Lesson 4 Estimate Your Retirement Income: How Are You Doing? 214

    Social Security Benefits

    Retirement Accounts

    Pensions

    Lump Sum vs. Annuity

    Lesson 5 Saving More, And Investing Strategies In Your 50S 223

    How to Invest Smart

    Making the Most of What You Have

    Best Investments Outside Your 401(k)

    Bond Investments

    No Target Funds Allowed

    Lesson 6 Plan For Long-Term Care Costs 234

    When to Buy

    Making the Financial Case for LTC Insurance

    Health Insurance, Medicare, and Medicaid

    LTC Basics

    Class 8 Living In Retirement 248

    Lesson 1 Home Finances: Stand In The Truth Of What Is Affordable For You 251

    The Affordability Issue

    Start the Discussion

    Lesson 2 Coping With The High Cost Of Healthcare In Retirement 253

    Rising Costs vs. Your Annual Retirement Income

    Long-Term Care Premium Increases

    Lesson 3 Stick To a Sustainable Withdrawal Rate 255

    The Right Rate

    How to Make Tax-Smart Withdrawals

    Lesson 4 Avoid Long-Term Bonds And Bond Funds 259

    What You Must Understand About Bonds

    How to Build a Bond Ladder

    Beyond Treasury Bonds: Municipal Bonds and Corporate Bonds

    Lesson 5 Earn Higher Yields by Investing In Dividend-Paying ETFS And Stocks 264

    The Case for Dividend-Paying ETFs and Stocks

    Stock Dividend Basics

    The Protection of a Stop-Loss Order

    How Much to Invest

    How to Choose a Dividend-Focused ETF

    Tips for Owning Individual Dividend-Paying Stocks

    Lesson 6 Double-Check Your Beneficiaries And Must-Have Documents 275

    Life-Changing Events

    Class 9 The Ultimate Lesson 277

    Clearing My Own Roadblocks

    The Road Ahead, Not the Rearview Mirror

    The Legacy We Create

    What People are Saying About This

    From the Publisher

    “Suze teaches readers how to transform their thinking and reimagine the American dream.”—O: The Oprah Magazine

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    .

    What does it take to create your New American Dream?

    Suze Orman, the woman millions of Americans have turned to for financial advice, says it’s time for a serious reconsideration of the American Dream—what promise it still holds, what aspects are in need of revision, and how it must be refashioned to fit our lives so that we can once again have faith that our hard work will pay off and that a secure and hopeful future is within our reach.
     
    In nine electrifying chapters, Orman delivers a master class on personal finance for this pivotal moment in time. She addresses every aspect of the American Dream—home, family, career, retirement. She teaches us that in order to create lasting security we must learn to stand in our truth. We must recognize, embrace, and be honest about what is real for us today and allow that understanding to inform the choices we make.  The New American Dream is not the things we accumulate, says Orman, but the confidence that comes from knowing that which we’ve worked so hard for cannot be taken away from us. In THE MONEY CLASS, Orman teaches us how to take control over our present—right here, right now—in order to build the future of our dreams.
     
    Whether navigating the complicated mix of money and family, offering the most comprehensive retirement resource available today, or delivering a bracing dose of reality when it comes to recalibrating our expectations and our goals, Orman educates us with her signature no-nonsense approach and laser-like clarity. She empowers us to live a life of integrity and honesty that will create an enduring legacy for future generations—a New American Dream that lies in truth, security, financial freedom, and peace of mind.

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    Publishers Weekly
    With a clarion call to "stand in your truth," Orman (The Money Book for the Young, Fabulous & Broke) re-engineers much of the advice given in her previous works for her latest volume. Chock full of financial advice pertinent to the post-2008 economic landscape, the book addresses every age and stage of life. Organized into nine "classes," with each class/chapter further divided into related lessons, Orman's effort is characteristically upbeat and no-nonsense, offering lessons on family matters, homeownership, saving for college, emergencies, retirement, and more. Orman firmly guides readers when dealing with parenting issues or underwater mortgages. Orman declares herself "vehemently anti-allowance," opting instead for paying children to do household chores, and she explains how to implement such a policy. A class on careers gives honest advice for anyone facing continued unemployment or thinking of taking a lower paying position. And three of her classes focus on financial planning for the future and how readers as young as 20 can begin saving for retirement. After finishing Orman's book, and completing her exercises, readers will have a very clear sense of how they can achieve what she has rechristened the "New American Dream."
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    From the Publisher
    “Suze teaches readers how to transform their thinking and reimagine the American dream.”—O: The Oprah Magazine
    Library Journal
    ★ 12/01/2013
    American financial guru Orman (9 Steps to Financial Freedom) gives readers a comprehensive guide to managing their personal finances with recommendations that are straightforward and tailored to America's current economic climate.
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