When it comes to retirement planning, few voices are as influential as Suze Orman. As a New York Times best-selling author and former Emmy-winning television personality, Orman is a powerhouse of financial advice.
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Needless to say, Orman is highly regarded for knowing her stuff. And when it comes to retirement, she has several helpful tips and tricks to make sure you’re prepared. Here are seven retirement strategies from Suze Orman to help you build a secure financial future.
Orman strongly recommends Roth IRAs and Roth 401(k)s for all income levels. She argues that there is “no reason” to choose traditional tax-deferred accounts when Roth accounts offer tax-free growth and withdrawals.
One reason Orman likes Roth IRAs specifically is that you can make tax-free withdrawals at any point during your life. Although ideally you’ll want to keep your money until your golden years, a Roth IRA can save you from financial trouble when you’re in a pinch.
Of course, if your employer offers a 401(k) program and matches contributions, you’ll want to contribute as much as you can to that plan before making contributions to your Roth IRA.
If your employer offers a Roth 401(k) and a traditional 401(k), though, choose the Roth 401(k). Money in a Roth 401(k) can be rolled over to a Roth IRA, which is not subject to required minimum distribution rules. This means that if you don’t need the money, you don’t have to take it.
Market fluctuations are one of the realities of stock market investing. If you have 10 or more years until retirement, you should not sell your stocks in a down market. You should look at those dips as great opportunities to get more stock, according to Orman. This is because, more often than not, the market will come back, and with it, your investments.
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Failing to claim an employer match on your 401(k) is like leaving free money on the table. Orman emphasizes that you contribute enough to get the full match, which can add up to tens of thousands of dollars over time.
Big life events like getting married shouldn’t make you break up. Orman said she has seen many cases where parents withdraw money from their retirement savings or stop contributing to pay for the child’s wedding. It’s an occasion that may seem worthy of financial sacrifice, but Orman said if your retirement funds are at risk, it’s not.