Long-Term Trading and Investing

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Suze Orman is a two-time Emmy Award–winning television host, ten-time New York Times bestselling author, and a two-time honoree on Time’s list of the 100 most influential people. Widely recognized for her work in financial education, she now hosts The Women and Money Podcast and co-founded SecureSave, a company focused on workplace emergency savings programs. 

In Part 2 of this recent interview, edited for length and clarity, Orman discusses financial independence, key policy changes under the Trump administration, common pre-retirement mistakes, and whether there can ever be another Suze Orman. 

MarketWatch: How do you define true financial freedom, and has your definition changed over the years? 

Orman: Over the years, my perspective has changed. I started with my book, The Nine Steps to Financial Freedom, and at first, I thought having a lot of money meant being financially free. But I came to realize that real freedom isn’t about how much money you have. It’s about understanding and managing the money you do have. In fact, I think ‘financial independence’ is a better term. When you’re financially independent, you’re no longer dependent on financial advisors who may give you self-serving advice. 

Second, true financial independence means that if you couldn’t work, whether because of illness, an accident, or any other reason, you would still be secure. You’d have enough money, either generating income or available as principal, to cover your expenses for the rest of your life. 

 MarketWatch: Is financial independence about making more money?

Orman: The real key isn’t just making more money — it’s cutting your expenses. I have a new motto for my podcast: make your money make more money. How? By not wasting it on interest, debt payments, or car loans.

Often, when people build wealth, they end up spending more, buying a bigger house, a nicer car, fancier clothes, and luxury watches, and all the accoutrements that show the world how much money they’re making. In the meantime, their bills have gone up while their savings and investment contributions have decreased. That makes absolutely no sense whatsoever. 

MarketWatch: What should they do? 

Orman: Stop spending money you don’t have to impress people you don’t even like. That’s the trap. Don’t do retail therapy. Don’t fill the emptiness with stuff. Fill your bank account instead. 

If you live below your means but within your needs, financial independence becomes far easier to achieve, which I’ve been saying since the cows came home. One of the biggest mistakes people make is retiring with a mortgage. If you plan to stay in your home forever, pay it off before you retire. Using retirement savings to cover interest and mortgage payments is such a waste of money in the long run. Pay it off. 

MarketWatch: Who’s the next Suze Orman of the upcoming generation?

Orman: There isn’t one, and I don’t want there to be. Why? Because the next great voice in money should be their own, not a copy of me. Don’t try to be me, because you can’t. You need to be you. When I first started at 30, I had to learn the hard way, by investing people’s money, losing it, and feeling that pain. That’s how you really learn. On TikTok today, it’s different. On TikTok, you may be watching someone who is handing out advice without considering the ramifications of giving wrong information. 

MarketWatch: Is it challenging to give financial advice to the masses? 

Orman: The problem with blanket advice is you don’t know who’s listening, or what their situation really is. That’s dangerous. Money isn’t just numbers; it’s emotions. I learned a long time ago that fear, shame, and anger are the biggest inner obstacles to wealth. It doesn’t matter how much money someone has. If they’re scared, they’ll buy and sell at the wrong times. So when you tell someone to ‘buy XYZ,’ are you sure it’s right for them? Maybe they just went through a divorce, a death, or a breakup. Perhaps they’re drowning in credit card debt at 20% interest. They may not have an emergency fund. Maybe they’re not matching their contributions in a 401(k). Until you personally know about them, your advice could do more harm than good. 

MarketWatch: Are there any parts of the One Beautiful Bill Act (OBBA) that will have a positive impact on investors? 

Orman: I get it—half the people out there can’t stand Trump. But politics aside, parts of this tax plan will have a negative impact, while others will really help. The higher standard deduction, about $15,000 single, $31,000 married, is a big win. Seniors get an extra break, the child tax credit went up to $2,200 per child, with $1,700 refundable, and the $500 dependent credit was made permanent. Tips and overtime are now eligible for new deductions, the SALT cap has been lifted to $40,000, and some charitable and loan interest breaks have also been expanded. For details, I break it all down on the Women & Money podcast.

MarketWatch: What’s one investment that you really think is a big mistake?

Orman: One of the biggest mistakes you can make is handing your retirement savings to a target-date mutual fund, the kind that invests automatically based on your retirement year, such as 2030, 2040, or 2050. Target-date funds? They’re for people who don’t want to think, and that’s never a good strategy. You never invest based on age or a specific date on a calendar. You invest based on your own circumstances: how much money you have, your income streams, your risk tolerance, your health, and what’s happening in the economy. Think about it: if you were about to retire in 2021 or 2022 and your target-date fund was loaded with bonds, you’d get crushed when interest rates skyrocketed. That’s the danger. 

MarketWatch: How should someone plan for inflation and the loss of a spouse after retirement?

Orman: You always have to plan for inflation because prices rarely go down. But here’s what people miss: when you lose a spouse, expenses often go up, not down. Loneliness makes you spend. You travel more to see family, you go out with friends, you fill the void. Meanwhile, you’ve lost a Social Security check and maybe part of a pension. So, the costs rise just when your income falls. That’s why planning for inflation isn’t optional. It’s survival.

MarketWatch: It used to be that buying a home was a path to wealth. Is that still true?

Orman: No. It may actually be a path to poverty. A home is no longer the guaranteed foundation of financial independence, and there are two big reasons: weather and insurance. I know people in Florida who owned their homes outright but had to walk away because insurance skyrocketed to $2,000 a month. Others in California lost everything to wildfires when insurers denied coverage. Even condos aren’t safe. Owners faced double- or triple-digit assessments, wiping out any chance of appreciation. 

On top of that, property taxes, repairs, and catastrophic events such as fires, floods, hurricanes, and tornadoes are more common than ever. Now, if you have money to absorb those shocks, buying a home can be financially rewarding. Because climate and insurance have become factors, you need to think twice before buying. 

MarketWatch: Is a college education worth it today? 

Orman: Maybe, but at what cost? Student loans aren’t what they used to be. Subsidized loans are gone, repayment terms are tougher, and graduate loans can easily reach $200,000. Interest starts accruing immediately, and the old six-month grace period no longer applies.

Here’s the truth: If you can’t comfortably afford tuition without jeopardizing your own financial stability, you need to stand in your truth and have an honest conversation with your kids. You are not a bad parent if you can’t send your child to a $65,000-per-year school. There’s nothing wrong with starting at a community college for two years, especially if scholarships aren’t available. We must also face the reality of AI’s effect on the future of the job market. Maybe it's time we start looking at blue-collar careers as a great alternative. Electricians, plumbers, mechanics, carpenters, and boat captains. Hmmm. It’s something to think about. 

MarketWatch: How do people get into credit card debt? 

Orman: They are spending money they don’t have to impress people they don’t know or like. Credit card debt isn’t just about money. It’s about I want it and I want it now, or trying to to fill a void, so you buy something. Unless you understand why you’re in debt, you’ll never get out of it. That’s why people who declare bankruptcy once declare it twice, because they fix the numbers without fixing themselves. You can pay off the balance, even get a windfall or inheritance. Bottom line: You have to go within to see why you are doing without. 

MarketWatch: What's the biggest money mistake that Gen Z (ages 15 to 27) is making right now? 

Orman: Gen Z is excited about investing, and that’s amazing. However, too many are skipping the foundation. They know every TikTok trend but not enough about the basics such as compound interest, Roth accounts, or the power of starting early. By their late twenties, those gaps start to show: paying too much for rent, ignoring free money from workplace retirement matches, not having an emergency fund, and choosing the wrong accounts. Instead, they lean into “buy now, pay later,” impulse spending, or investing without a safety net. And here’s a big one: when they finally save for retirement, many choose a traditional 401(k) instead of a Roth. That’s trading a small tax break today for a lifetime of bigger taxes later. Think about it. You’re basically signing up to let Uncle Sam be your permanent business partner.

The bottom line is that Gen Z wants to build wealth, and they can, but skipping the safety nets makes everything shaky. A Roth, an emergency fund, and smart use of workplace benefits aren’t boring. They’re the launchpad for financial independence. 

MarketWatch: What are the biggest mistakes people make with insurance and retirement planning?

Orman: Never, ever use life insurance as an investment. Whole life, universal life, and variable life are some of the biggest rip-offs out there. Insurance was never meant to be a permanent need. It was intended to cover you in case of a premature death until you’ve built enough assets to take care of your family. If you need life insurance, buy term. Period.

And while we’re at it, never put a tax-deferred product inside a tax-deferred account. I can’t tell you how many people roll over $500,000 into an IRA only to have some broker stick it in a variable annuity. Why would you double up on tax deferral? That makes no sense. And those variable annuities with guarantees? You only get your money back if you die. Meanwhile, you’re paying surrender charges and fat commissions to the advisor who sold it to you. Don’t fall for it. You could’ve just bought a no-load mutual fund or ETF.