Tuesday, June 16, 2009

Suze Orman sets up pink lemonade stand with free financial advice in NYC (ABC Nightline)

On Monday June 15 (that always sounded like final exam day when I was in high school) Suze Orman did another of her public smackdowns, setting herself up as “The Money Lady in Bryant Park” in Manhattan, with her “interviews” (or shall we say “final exams”) of people’s finances shown on ABC Nightline. She served pink lemonade, and it didn’t cost $6 a cup like it usually does at gay pride.

The most important point this time is that money in a tax-deferred IRA is protected from creditors in a bankruptcy. The end result is that, no, “girlfriend”, you should never take money out of IRA’s to buy a home, even with the $8000 tax credit for some people in certain income ranges (generally limited to $75000 to $90000 for singles, about double for couples).

Suze says, “you hope for the best but don’t plan for it.”

The ABC News story (by Vicki Mabrey and Ted Gerstein) is “Suze Orman Sets Up Free Advice Stand: The 'Money Lady' Hits the Park to Give Tips on Home Buying, College, Credit Cards and More”, link here.

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