The Power Of Zero Show The Truth about Suze Orman
In this episode, David tells the truth about Suze Orman, who’s been giving financial advice for the last 25 years and has some pretty black and white positions on most financial subjects.
Suze Orman doesn’t seem to be a fan of cash value life insurances because of its perceived high expenses.
The problem of her approach, according to David, is the fact that it looks at the annual expenses in the early years of the life insurance contract and projects those out over the life of the policy. However, that isn’t how things typically work. In real life, the longer you keep your policy, the lower the average internal expenses go.
For David, whoever is dealing with a financial advisor recommending that their clients roll their entire IRA into life insurance policies should run the other way.
The fundamental issue David sees is the one-size-fits-all financial planning advice dispensed by some mainstream financial gurus. The problem lies in wealthy people not wanting to have a generic financial plan, rather a customized, comprehensive and balanced approach to retirement planning.
David calls out mainstream financial gurus like Dave Ramsey, Clark Howard, and Suze Orman for being generalists, instead of experts on specific facets of financial planning.
Mentioned in this episode:
David's books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram