Suze Orman's 2009 Action Plan by Suze Orman

• Interviews & Essays

Interviews & Essays

A Conversation with Suze Orman

1. Why do we need a special book for 2009?
Because 2008 was the year when decades of financial dishonesty came to a crashing end. Not just on Wall Street, but in American households too. Years of spending more than you could afford and saving less (or nothing!) than you need leaves you extremely vulnerable in 2009. Actually, it will leave you vulnerable forever, but if you don't start living with financial honesty in 2009, I am here to tell you that you are in for a very tough time. What you thought "worked" in the past simply does not cut it anymore. Credit card companies are aggressively cutting credit lines and increasing interest rates on accounts and mortgage lenders are pulling back on Home Equity Lines of Credit. Skating by without an emergency savings fund in 2009 is ridiculously foolish with unemployment soaring.

I am also very concerned that the stock market losses of 2008 will endanger the retirement security of millions of Americans. Not because of the steep declines, but because those steep declines are causing so many of you to pull out of stocks completely and invest all your money in "safe" cash or bonds. That is a huge mistake. Allow the events of 2008 pull you off of your long-term investment strategy and you will never reach your retirement goals.

I have to tell you that in my lifetime there has never been another single year where knowing the right moves you must make -- and avoiding the wrong moves -- has ever been more needed. These are scary times. I wrote this book to help you maneuver your way to safety and security in 2009 and every year forward.

2. What exactly is the goal of the action plan?
To break down every part of your financial life and tell you exactly what works in today's changed world, what doesn't work, and how to make the changes necessary to be safe and secure. From credit cards, bank savings, and retirement investing, to real estate, paying for college and finding ways to curb your spending, I walk you through exactly what you need to do. I cannot overstate my focus on ACTION: the book is a straightforward instruction manual on what you need to do now. I organized it so you can dive into any topic you are most concerned about. That said, I encourage readers to go through the entire book. There are new rules and wrinkles in every facet of personal finance, so even in areas you think you are in good shape, there is new information you need to be aware of.

3. Who should be reading this book?
Anyone who wants to make sure they are on the path to a secure financial future given the new rules of the road brought about by the financial crisis that began in 2008. Obviously, those of you who are struggling in any part of your financial life -- a mortgage you can't afford, a credit card interest rate that shot from 10% to 22% overnight for no apparent reason -- know you could use some clear-eyed advice. But I know from talking to thousands of you over the past year that even people who are in good shape are feeling confused and scared. You are questioning whether you need to make changes too. Not because of mistakes you have made in the past, but because the landscape is so severely changed. Each chapter in the book begins with The New Reality where I explain exactly why 2009 is so very different.