‘Are you crazy?’: Suze Orman explains why this $1.6 million retirement plan would backfire, and how to avoid the trap

Core Insights - Advisor.com offers a platform that matches users with financial professionals based on their ZIP code and personal information, facilitating free consultations to align financial goals with expert advice [1] Group 1: Retirement Planning - Services like Advisor.com provide reliable retirement planning guidance, emphasizing the importance of financial management for individuals, particularly women over 50, who often prioritize family over personal financial planning [2][3] - Suze Orman highlights the complexity of the American tax system, which complicates financial planning, especially for women [3] - Orman advises against converting a pretax 401(k) to a Roth account without understanding the tax implications, as it can trigger a taxable event [4] Group 2: Investment Strategies - Orman advocates for diversifying retirement accounts and emphasizes the benefits of saving early to reduce tax burdens and enhance financial security [6] - Roth IRAs are particularly recommended for their tax-free withdrawal benefits, which can help avoid negative tax impacts on Social Security benefits during retirement [7][8] - Gold is suggested as a stable investment option, having increased in value by approximately 70% over the past year and over 700% in the last two decades, making it a viable choice for inflation hedging [10] Group 3: Real Estate Investments - Investing in real estate can provide tax advantages and consistent retirement income, especially when done directly rather than through REITs [13][14] - Platforms like Mogul offer fractional ownership in vetted rental properties, allowing investors to benefit from rental income and tax benefits without the hassle of property management [15][16] - Arrived provides opportunities for tax-exempt investments through self-directed checkbook IRAs, making it easier to incorporate real estate into investment portfolios [18]