Comments on: Suze's back, and taking your questions http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/ Tue, 22 Dec 2009 04:00:12 +0000 http://wordpress.com/ hourly 1 By: John Kellock http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-473692 John Kellock Sat, 22 Nov 2008 23:44:05 +0000 http://cnnac360.wordpress.com/?p=17096#comment-473692 One more, then I'm done>>>> If the executives of the major Corporations, especially in the auto industry, but maybe all others, accept the fact than any exorbitant compensation paid to them, will no further be in cash, but in stock in their own company, and only their own company. It would certainly give them an interest in making the company better, instead of the presumption that the public has, that these guys get cash for nothing. I the corporate Heads had to account for their stock price, ther would be a reasonable measure of success or failure of some very, very very, large Compaiies in the US. As we know, Wall Street, and all of the analysists, and those who project the performance of individual companies, have been bought off with cash, and now we see the result of these so-called "professional evaluations "of the company performance or the projected world dollar amout of the destiny of any stock or company, or country. One more, then I'm done>>>> If the executives of the major Corporations, especially in the auto industry, but maybe all others, accept the fact than any exorbitant compensation paid to them, will no further be in cash, but in stock in their own company, and only their own company. It would certainly give them an interest in making the company better, instead of the presumption that the public has, that these guys get cash for nothing. I the corporate Heads had to account for their stock price, ther would be a reasonable measure of success or failure of some very, very very, large Compaiies in the US. As we know, Wall Street, and all of the analysists, and those who project the performance of individual companies, have been bought off with cash, and now we see the result of these so-called "professional evaluations "of the company performance or the projected world dollar amout of the destiny of any stock or company, or country.

]]> By: Eugenie T http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-473689 Eugenie T Sat, 22 Nov 2008 23:37:36 +0000 http://cnnac360.wordpress.com/?p=17096#comment-473689 Re: BIG THREE AUTOMAKERS: On the surface, the use of corporate planes by the CEO's of the Big Three Automakers is, indeed and at the very least, a public relations error of epic proportions. That may well be the whole story. However, the surge of opinion about this issue smacks of lynch mob mentality and raises the specter of Madame Defarge at the foot of the guillotine. There are a few questions which might alter these perceptions and that I have not heard asked or answered. For example: How many people were actually transported on each plane? Was their presence necessary? Would schedules have required their overnight stay in Washington? Would the costs of commercial transport, meals and hotel stays have overtopped the costs of flying the corporate aircraft? It seems that some of these answers might either support the visceral responses or indicate responsible actions on the part of the auto companies. So far as I know, we do not have these answers, and drawing conclusions based on inadequate information is always dangerous and frequently wrong, although it is clear that there are huge problems inherent in the companies. More depth in reporting and thinking would undoubtedly increase public trust in news media. Re: BIG THREE AUTOMAKERS: On the surface, the use of corporate planes by the CEO's of the Big Three Automakers is, indeed and at the very least, a public relations error of epic proportions. That may well be the whole story. However, the surge of opinion about this issue smacks of lynch mob mentality and raises the specter of Madame Defarge at the foot of the guillotine. There are a few questions which might alter these perceptions and that I have not heard asked or answered. For example: How many people were actually transported on each plane? Was their presence necessary? Would schedules have required their overnight stay in Washington? Would the costs of commercial transport, meals and hotel stays have overtopped the costs of flying the corporate aircraft? It seems that some of these answers might either support the visceral responses or indicate responsible actions on the part of the auto companies. So far as I know, we do not have these answers, and drawing conclusions based on inadequate information is always dangerous and frequently wrong, although it is clear that there are huge problems inherent in the companies. More depth in reporting and thinking would undoubtedly increase public trust in news media.

]]> By: John Kellock http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-473687 John Kellock Sat, 22 Nov 2008 23:23:14 +0000 http://cnnac360.wordpress.com/?p=17096#comment-473687 Further, I hpoe you would also ask the question: why after all is said and done, blame the few thousand people regarding late payments on mortgages, for a problem in the economy, since there is nothing unusual about bad times affecting homeowners. We all have known for a long time that we were way beyond or means, HOWEVER, we were all encouraged to invest in funds, 401 k's and a plethera of other investment vehicles , in the name of savings, including pension plans and exit payments for the auto industry, and every other industry in the country. If you look, I think America is the best country in the world in terms of personal savings, only to find out that these so-called "saving "for investmet forums , were a con on the American Public, by Wall Street, and the other spin doctors, to fund there BMW's Further, I hpoe you would also ask the question: why after all is said and done, blame the few thousand people regarding late payments on mortgages, for a problem in the economy, since there is nothing unusual about bad times affecting homeowners. We all have known for a long time that we were way beyond or means, HOWEVER, we were all encouraged to invest in funds, 401 k's and a plethera of other investment vehicles , in the name of savings, including pension plans and exit payments for the auto industry, and every other industry in the country. If you look, I think America is the best country in the world in terms of personal savings, only to find out that these so-called "saving "for investmet forums , were a con on the American Public, by Wall Street, and the other spin doctors, to fund there BMW's

]]> By: John Kellock http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-473685 John Kellock Sat, 22 Nov 2008 23:07:31 +0000 http://cnnac360.wordpress.com/?p=17096#comment-473685 Please ask the question:: why can't we allow the car companies to get back to work, help them out with already promised money, and save the environment.... do the things they have promised.. and then add conversion to Natural Gas for Vehicles, which has ben accepted worldwide, is easily converted for ay vehicle, and is already at the dorr o at least 75%of all American homes???? Most major cities, around the world, already run there vehicles, and mass transit, on Natural Gas. Please ask the question:: why can't we allow the car companies to get back to work, help them out with already promised money, and save the environment.... do the things they have promised.. and then add conversion to Natural Gas for Vehicles, which has ben accepted worldwide, is easily converted for ay vehicle, and is already at the dorr o at least 75%of all American homes???? Most major cities, around the world, already run there vehicles, and mass transit, on Natural Gas.

]]> By: Tyler Zimba http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-473679 Tyler Zimba Sat, 22 Nov 2008 22:22:50 +0000 http://cnnac360.wordpress.com/?p=17096#comment-473679 I am amazed at the overwhelming negative attitude that your reporters/anchors convey. You should report news, not rehash and rehash how bad the economy is. Do you not think that you play a role in the publics confidence? YOU DO. You could be providing encouragement to the public to balance your news. Report on new ways to help stimulate the economy, not discouraging people from spending money this holiday. Remember all the retail people that are counting on their jobs too! That does not mean spend spend spend, but shop wisely and with the slant of trying to help as many American jobs as possible. If you continue to keep this up the next job lost could be yours. I am amazed at the overwhelming negative attitude that your reporters/anchors convey. You should report news, not rehash and rehash how bad the economy is. Do you not think that you play a role in the publics confidence? YOU DO. You could be providing encouragement to the public to balance your news. Report on new ways to help stimulate the economy, not discouraging people from spending money this holiday. Remember all the retail people that are counting on their jobs too! That does not mean spend spend spend, but shop wisely and with the slant of trying to help as many American jobs as possible. If you continue to keep this up the next job lost could be yours.

]]> By: Ken http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-473615 Ken Sat, 22 Nov 2008 17:04:21 +0000 http://cnnac360.wordpress.com/?p=17096#comment-473615 Hi Suze - Self Directed IRA - Small Business Finance - 401k Loan: These are my options that I am currently considering. I am self employed and have kept my 401K in a stable value fund with my old employer (thankfully I have not seen a downturn in value like others have). Times are getting tougher and I am considering the above options. My first choice is rollover into a 401k broker account, which charge 1/4 point to administer (see 401kbrokers.com). The main reason for selecting a broker instead of going right to a custodian is I can loan against the value @ around prime plus 1% or CD rate plus 2% with typical 5yr payback structure with max loan amount of 50k, (I do fit the Solo 401k restrictions). I have heard you say many times to not loan against 401k as they are protected in bankruptcy (which I am not considering), just need an influx of cash to catch up so to speak. Small business financing is also another option (see Guidant Financial). I can roll my 401k, then it forms an LLC and LLC purchases a business, which in my case would be another business that I can run and also compliments or goes hand in hand with my current business. Thus the LLC owns the business and I can draw a reasonable salary from this, although this new business would follow same guidelines if it were sold for cash (early distribution penalties). The final option is to roll into a self directed IRA, which can purchase and sell property to build up a retirement portfolio in real estate or stock market or a percentage of both. The later option to me is the best, although it does not fix my current cash flow needs. Can you address the pros and cons of options above and perhaps what direction you are leaning? Thanks Ken Seattle , WA Hi Suze – Self Directed IRA – Small Business Finance – 401k Loan: These are my options that I am currently considering. I am self employed and have kept my 401K in a stable value fund with my old employer (thankfully I have not seen a downturn in value like others have). Times are getting tougher and I am considering the above options. My first choice is rollover into a 401k broker account, which charge 1/4 point to administer (see 401kbrokers.com). The main reason for selecting a broker instead of going right to a custodian is I can loan against the value @ around prime plus 1% or CD rate plus 2% with typical 5yr payback structure with max loan amount of 50k, (I do fit the Solo 401k restrictions). I have heard you say many times to not loan against 401k as they are protected in bankruptcy (which I am not considering), just need an influx of cash to catch up so to speak. Small business financing is also another option (see Guidant Financial). I can roll my 401k, then it forms an LLC and LLC purchases a business, which in my case would be another business that I can run and also compliments or goes hand in hand with my current business. Thus the LLC owns the business and I can draw a reasonable salary from this, although this new business would follow same guidelines if it were sold for cash (early distribution penalties). The final option is to roll into a self directed IRA, which can purchase and sell property to build up a retirement portfolio in real estate or stock market or a percentage of both. The later option to me is the best, although it does not fix my current cash flow needs. Can you address the pros and cons of options above and perhaps what direction you are leaning?
Thanks
Ken
Seattle , WA

]]> By: Vicki M. http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472591 Vicki M. Sat, 22 Nov 2008 00:54:27 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472591 Suzie - HELP! I am single and 46 having saved the maximum each year since I started working I have now lost 50% of my 401K, IRA & Roth. What should I be doing now? Do you recommend continuing to put the maximum into the 401K and electing the cash option or just taking the company match and placing the rest in a straight savings account. Thank you for your help! Suzie -

HELP! I am single and 46 having saved the maximum each year since I started working I have now lost 50% of my 401K, IRA & Roth. What should I be doing now? Do you recommend continuing to put the maximum into the 401K and electing the cash option or just taking the company match and placing the rest in a straight savings account.

Thank you for your help!

]]> By: Khalid Zia http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472590 Khalid Zia Sat, 22 Nov 2008 00:54:09 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472590 Do you recommend buying "protective puts" to protect the falling retirement account balances? Do you recommend buying "protective puts" to protect the falling retirement account balances?

]]> By: Cathy http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472501 Cathy Sat, 22 Nov 2008 00:21:42 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472501 Hi Suzie, I own a home with a mortgage of $270K @5.5% there is 12 years left on the mortgage.The house is valued at $750K. I also own a condo that my parents live in (worth $260K) mortgage $200K with adjust rate currently only the interest is due monthly - my monthly payment is $600 and I have been adding another $500/month onto to the principal. I am going to receive $20K from a lawsuit. My question is should I take the $20K and pay it on the condo or put the money in a CD or other investment? Hi Suzie, I own a home with a mortgage of $270K @5.5% there is 12 years left on the mortgage.The house is valued at $750K. I also own a condo that my parents live in (worth $260K) mortgage $200K with adjust rate currently only the interest is due monthly – my monthly payment is $600 and I have been adding another $500/month onto to the principal. I am going to receive $20K from a lawsuit. My question is should I take the $20K and pay it on the condo or put the money in a CD or other investment?

]]> By: Mike, Syracuse NY http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472471 Mike, Syracuse NY Sat, 22 Nov 2008 00:11:48 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472471 Suze, I'm about to make the last payment on my youngest child's college payment plan (Yah!). I'll actually have some disposible income. Where should I put it? Suze,
I'm about to make the last payment on my youngest child's college payment plan (Yah!). I'll actually have some disposible income. Where should I put it?

]]> By: Larry http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472432 Larry Fri, 21 Nov 2008 23:58:39 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472432 Suzy: The automakers are asking for a bailout from Washington to avoid bankruptcy. If they go bankrupt, what happens to the shareholders? I've already lost thousands in a parts supplier bankruptcy that now is reorganized and issuing new stock while their former shareholders are left with worthless paper. Bankruptcy is not fair to the people who have invested and built the organizations with their financing. Suzy: The automakers are asking for a bailout from Washington to avoid bankruptcy. If they go bankrupt, what happens to the shareholders? I've already lost thousands in a parts supplier bankruptcy that now is reorganized and issuing new stock while their former shareholders are left with worthless paper. Bankruptcy is not fair to the people who have invested and built the organizations with their financing.

]]> By: Tony, Beverly Hills, CA http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472359 Tony, Beverly Hills, CA Fri, 21 Nov 2008 23:38:04 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472359 Hi Suze, I'm 36 independent sales agent, my retirement is private IRA in mutual funds. It's down 30% since the collapse of our financial market. Should I continue to buy mutual funds on a monthly basis with my dollar cost average or should I buy stocks of good companies? Should I just sideline? The blue chip companies aren't so solid these days. What do I do? Hi Suze,

I'm 36 independent sales agent, my retirement is private IRA in mutual funds. It's down 30% since the collapse of our financial market.

Should I continue to buy mutual funds on a monthly basis with my dollar cost average or should I buy stocks of good companies?

Should I just sideline?

The blue chip companies aren't so solid these days. What do I do?

]]> By: Mike M. - NJ http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472321 Mike M. - NJ Fri, 21 Nov 2008 23:27:46 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472321 I recently changed jobs and have a 401k at my previous employer. I also have a managed rollover IRA account at a full service broker. Transfering the 401k to this managed account will reduce the management fee by a small amount. Given the current market situation, should I leave the 401k were it is or moved it to the professionally managed account? I recently changed jobs and have a 401k at my previous employer.
I also have a managed rollover IRA account at a full service broker.
Transfering the 401k to this managed account will reduce the management fee by a small amount. Given the current market situation, should I leave the 401k were it is or moved it to the professionally managed account?

]]> By: Teresa http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472318 Teresa Fri, 21 Nov 2008 23:26:14 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472318 Suze, If my husband and I want edto taking advantage of the current financial situation and invest in the stock market (we have the 20,30, 40 years to ride it out that you talk about) how much is a good amount to start investing? Does it have to be thousands of dollars, or would a few hundred be fine too? Thanks. Teresa Bowling Green, OH Suze,

If my husband and I want edto taking advantage of the current financial situation and invest in the stock market (we have the 20,30, 40 years to ride it out that you talk about) how much is a good amount to start investing? Does it have to be thousands of dollars, or would a few hundred be fine too? Thanks.

Teresa
Bowling Green, OH

]]> By: tmp http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472297 tmp Fri, 21 Nov 2008 23:18:20 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472297 Hello Suze; I've been left a large sum of money from a deceased relative, and I have yet to invest due to the financial trying times we now face. I'd like to know where should I be ivesting my funds, or should I let things be for now until I see whats going to happen. Please any financial advise you could give me would be greatly appreciated. Hello Suze;

I've been left a large sum of money from a deceased relative, and I have yet to invest due to the financial trying times we now face.
I'd like to know where should I be ivesting my funds, or should I let things be for now until I see whats going to happen. Please any financial advise you could give me would be greatly appreciated.

]]> By: Barry http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472294 Barry Fri, 21 Nov 2008 23:17:47 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472294 Suze: I heard you state that an employee should only contribute to their 401k to the extent they have an employer match and no more than that. That's a huge mistake. First, a 401k allows an employee to invest $15,000 or up to $20,500 if over 50 years old. An IRA does not allow you to invest that amount per year. Secondly, with the majority of plans, they allow you (as does an IRA) to choose a Roth and pay the tax now, allowing all contributions AND earnings to be tax free upon withdrawal....a huge advantage, especially for young taxpayers. If taxes stay the same (unlikely), there is very little difference in the end result. (Most people's tax bracket doesn't drop when they retire.) And I believe like most experts that tax rates if anything will increase in the future. Third: I believe your biggest objective was that they only had 'mutual funds', limiting the investment choices. Well many 401k plans these days have indexed funds. The exposure to employers for having limited investment choices is too great. If you don't have index funds to choose from, put thru a formal request to have them added. ----So someone who invests in an IRA like you suggest and puts the rest in a taxable account is at a disadvantage! So - - please rethink & revise your advice! Suze:
I heard you state that an employee should only contribute to their 401k to the extent they have an employer match and no more than that. That's a huge mistake.

First, a 401k allows an employee to invest $15,000 or up to $20,500 if over 50 years old. An IRA does not allow you to invest that amount per year.
Secondly, with the majority of plans, they allow you (as does an IRA) to choose a Roth and pay the tax now, allowing all contributions AND earnings to be tax free upon withdrawal....a huge advantage, especially for young taxpayers. If taxes stay the same (unlikely), there is very little difference in the end result. (Most people's tax bracket doesn't drop when they retire.) And I believe like most experts that tax rates if anything will increase in the future.
Third: I believe your biggest objective was that they only had 'mutual funds', limiting the investment choices. Well many 401k plans these days have indexed funds. The exposure to employers for having limited investment choices is too great. If you don't have index funds to choose from, put thru a formal request to have them added.

--So someone who invests in an IRA like you suggest and puts the rest in a taxable account is at a disadvantage! So – - please rethink & revise your advice!

]]> By: Laura http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472197 Laura Fri, 21 Nov 2008 22:45:35 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472197 My husband and I are 53 with one child left in college. We are paying college expenses as we go. We have a fixed rate primary loan on our house and a 2nd that is at about 3.75% right now, however we still have a lot of equity in our home since we bought 18ys ago. We lost our first retirement when United Airlines went bankrupt and have about $100K in a 401 plan and about $30K in my SEP IRA. ( I am self employed, my husband still works for United) We don't have forever to make up losses but we don't have any plans for retirement either. What is a good retirement strategy for our age? My husband and I are 53 with one child left in college. We are paying college expenses as we go. We have a fixed rate primary loan on our house and a 2nd that is at about 3.75% right now, however we still have a lot of equity in our home since we bought 18ys ago. We lost our first retirement when United Airlines went bankrupt and have about $100K
in a 401 plan and about $30K in my SEP IRA. ( I am self employed, my husband still works for United) We don't have forever to make up losses but we don't have any plans for retirement either. What is a good retirement strategy for our age?

]]> By: Diane B http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472179 Diane B Fri, 21 Nov 2008 22:18:48 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472179 I'll complete the sale of my business in mid-January. I expect to net $1.2 million and retain $4M in company stock which I can sell beginnning in Q1 2010. I'm now considering investment options for the $1.2M. I have 2 years before I retire and expect to maintain $100,000 salary until that time. How would you recommend I invest the $1.2M? Thank you, Diane I'll complete the sale of my business in mid-January. I expect to net $1.2 million and retain $4M in company stock which I can sell beginnning in Q1 2010. I'm now considering investment options for the $1.2M. I have 2 years before I retire and expect to maintain $100,000 salary until that time.

How would you recommend I invest the $1.2M?

Thank you,
Diane

]]> By: Maynard Koplin http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472168 Maynard Koplin Fri, 21 Nov 2008 21:54:06 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472168 I am retired and 68 1/2 years and debt free. My IRA had $500K in it a year ago. I pay a national investment firm to manage the investments. Now it has $360K. In 2 years I am required to begin drawdown of my IRA. Should I just hang on or should I buy an annuity? I am retired and 68 1/2 years and debt free. My IRA had $500K in it a year ago. I pay a national investment firm to manage the investments. Now it has $360K. In 2 years I am required to begin drawdown of my IRA. Should I just hang on or should I buy an annuity?

]]> By: Julie http://ac360.blogs.cnn.com/2008/11/21/suzes-back-and-taking-more-questions-2/comment-page-1/#comment-472159 Julie Fri, 21 Nov 2008 21:40:33 +0000 http://cnnac360.wordpress.com/?p=17096#comment-472159 Hi Suze, I have lost money from the collapse of Indymac since I've had uninsured amount at a CD account. Nowadays Indymac is doing everything it can to ease the burden on mortgage holders who are not able to pay their loans. What about the depositors? Do you think we have any chance of recovering the money we have lost? Also, why dont the banks inform their depositors couple days before declaring chapter 11 so that those people might get a chance to save their money? Hi Suze,
I have lost money from the collapse of Indymac since I've had uninsured amount at a CD account. Nowadays Indymac is doing everything it can to ease the burden on mortgage holders who are not able to pay their loans. What about the depositors? Do you think we have any chance of recovering the money we have lost?
Also, why dont the banks inform their depositors couple days before declaring chapter 11 so that those people might get a chance to save their money?

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