Quote of the day and investing lessons by Suze Orman: People worry about market crashes and inflation, understanding how to build a long-term investment portfolio can make all the difference in achieving financial security. Financial expert Suze Orman has long advised savers, especially those with retirement accounts they won’t touch for at least ten years, to keep a thoughtful mix of stocks and bonds. This simple idea matters because it balances growth potential with risk management, an approach that can help investors weather market swings while still aiming for gains that outpace rising costs of living. Many financial advisors agree that having both growth and stability components in your portfolio is critical to long-term success, particularly as retirement approaches and preserving capital becomes more important.
"For all your long-term investments, such as retirement accounts that you won't touch for at least ten years, you need a mix of stocks and bonds. Stocks offer the best shot at inflation-beating gains. But stocks don't always go up. That's where bonds come into play: They have less upside potential, but they also do not pack the same risk," as per BrainyQuote.
Stocks historically provide higher returns that can help your savings grow faster than inflation over decades, a key benefit for retirement accounts that you won’t touch for many years. This means your portfolio has a better chance to build real wealth rather than merely keeping pace with rising prices.
But stocks can be volatile. In some years, the stock market drops significantly, or even enters a bear market (defined as a drop of 20% or more). When that happens, bonds often act as a cushion. Bonds typically provide steadier, predictable income and usually don’t swing as wildly as stocks during market downturns. These features can help protect your overall portfolio from large losses, making the ride less stressful and preserving capital when you’re closer to needing it.
The daughter of Russian-Jewish immigrants, Orman earned a degree in social work from the University of Illinois at Champaign-Urbana in 1976. She later moved to Berkeley, California, where she worked as a waitress. While saving money to open her own restaurant, funds she had collected were lost by a stockbroker through poor investments, an experience that sparked her interest in finance.
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Her work continued with Women and Money: Owning the Power to Control Your Destiny (2007) and Suze Orman’s 2009 Action Plan, written during a global economic crisis. She later published The Money Class: Learn to Create Your New American Dream (2011) and The Ultimate Retirement Guide for 50+: Winning Strategies to Make Your Money Last a Lifetime (2020), focusing on long-term financial security.
Quote of the Day on Investment by Suze Orman
Quote of the day by Suze Orman:"For all your long-term investments, such as retirement accounts that you won't touch for at least ten years, you need a mix of stocks and bonds. Stocks offer the best shot at inflation-beating gains. But stocks don't always go up. That's where bonds come into play: They have less upside potential, but they also do not pack the same risk," as per BrainyQuote.
Investing Lesson by Suze Orman Meaning Explained: Importance of Mixing Stocks and Bonds in Retirement Portfolios
Suze Orman’s quote underscores a fundamental principle of long-term investing: diversification. At its core, the idea is to spread your money across different types of assets to balance growth and risk.Stocks historically provide higher returns that can help your savings grow faster than inflation over decades, a key benefit for retirement accounts that you won’t touch for many years. This means your portfolio has a better chance to build real wealth rather than merely keeping pace with rising prices.
But stocks can be volatile. In some years, the stock market drops significantly, or even enters a bear market (defined as a drop of 20% or more). When that happens, bonds often act as a cushion. Bonds typically provide steadier, predictable income and usually don’t swing as wildly as stocks during market downturns. These features can help protect your overall portfolio from large losses, making the ride less stressful and preserving capital when you’re closer to needing it.
How Diversification Helps Protect Against Market Crashes and Inflation
This strategy doesn’t mean choosing stocks over bonds or vice versa; it means balancing them based on goals, time horizon, and risk tolerance. Younger investors can lean more heavily on stocks because they have time to recover from downturns, while older investors may prefer a larger bond allocation to protect savings. The key takeaway from Orman’s advice is that smart investing isn’t just about chasing high returns, it’s about building a mix that helps you stay invested and confident through long market cycles.Who Is Suze Orman: A Look at Her Financial Philosophy and Career
Suze Orman, born on June 5, 1951, in Chicago, is an American financial adviser, television personality, and author best known for blending personal finance with personal growth in an unconventional way, as per a Britannica report.The daughter of Russian-Jewish immigrants, Orman earned a degree in social work from the University of Illinois at Champaign-Urbana in 1976. She later moved to Berkeley, California, where she worked as a waitress. While saving money to open her own restaurant, funds she had collected were lost by a stockbroker through poor investments, an experience that sparked her interest in finance.
Quote of the day by Gary Vaynerchuk: 'People are chasing cash, not happiness. When you chase money, you're going to...' - life lessons, wealth quotes & books by NYT bestselling author and entrepreneur - The Economic Times
How Suze Orman Entered the Finance World
Orman joined Merrill Lynch’s stockbroker training program and became the first female stockbroker hired by the firm in northern California. Known for her distinctive style, she focused on everyday people rather than wealthy clients and prioritized personal connection before investing. Her approach proved successful, leading to senior roles and the creation of the Suze Orman Financial Group.Suze Orman’s Influence Through Books, TV, and Personal Finance Advice
Her career expanded into books, television, and media, with multiple bestsellers, a long-running CNBC show, 'The Suze Orman Show', and a popular podcast: 'Suze Orman’s Women & Money', establishing her as a leading voice in personal finance.Best-Selling Books by Suze Orman
Suze Orman shared her ideas about money and personal growth through a series of well-known books that reflected different stages of life and financial challenges. Her journey began with The Courage to Be Rich (1999), where she introduced her belief in money as an “energy force.” She later expanded her message with The Laws of Money, the Lessons of Life... (2003), followed by The Money Book for the Young Fabulous and Broke (2005), aimed at people in their twenties navigating finances for the first time.Her work continued with Women and Money: Owning the Power to Control Your Destiny (2007) and Suze Orman’s 2009 Action Plan, written during a global economic crisis. She later published The Money Class: Learn to Create Your New American Dream (2011) and The Ultimate Retirement Guide for 50+: Winning Strategies to Make Your Money Last a Lifetime (2020), focusing on long-term financial security.
Investing and Money Quotes by Suze Orman
Here are few more quotes and investing lessons by Suze Orman.- "Estate planning is an important and everlasting gift you can give your family. And setting up a smooth inheritance isn't as hard as you might think," as per BrainyQuote.
- "Money is kind of just like air - if you don't have air, you can't breathe. If you don't have money, I don't think you'll want to breathe - you won't want to live," as per BrainyQuote.
- "Never cosign a loan. Once you have cosigned, you cannot get out of it - even on your deathbed," as per BrainyQuote.
- "Structured settlements are a common way for people who have been injured to receive an insurance payout. The periodic payments provide ongoing income and reduce the risk of blowing a lump sum through poor financial choices," as per BrainyQuote.
- "The most important loan to pay is your student loan. It's more important than your mortgage, car and credit card payments. You cannot discharge student loan debt in the majority of cases," as per BrainyQuote.
