As I’ve said before, I like Suze Orman. I don’t agree with everything she says but I do like the general way she thinks about money. As I was reading her book The Laws of Money, The Lessons of Life today, something really jumped out at me and I thought I would share it with you.
In one part of the book, she has the opportunity to meet with the families of some of the people who were killed in the 9/11 attacks in New York. They had lost a member of their family, and had received a lot of money, and they were overwhelmed. She suggested that they pay off their debts and then put the money in a safe money market account until they were mentally and emotionally ready to do something with the money. Then she told them to absolutely, positively avoid what she calls the “Investment Hate List.” I really like her investment hate list!
- Variable annuities
- Whole life insurance policies
- Universal life insurance policies
- Variable life insurance policies
- Mutual funds that carry a commission
I feel strongly that these are bad things. My husband and I had one when we first married. I can’t remember if it was a universal or variable life policy, but it was awful. Eventually we figured out how bad it was and paid the exorbinant surrender charge and got out of that sinkhole. If I can save one person from making that mistake, this whole blog will be worth it.
I’d be curious to hear your experiences with any of these products, and if you agree or disagree with Suze’s advice. This is definitely one area where I wholeheartedly agree with her.