>> coming up on "the suze orman show"... i'm going to be talking to you about financial pressure points and what you can do to avoid them. also... >> i did put down a deposit on a brand-new-build townhouse. it's only 12 units, 3 blocks from the beach. >> you have got to slow down. you're not even divorced yet from your husband. >> [ laughs ] >> and you ask me, "can i afford it?" >> i want to go on a 15-day african safari. i have no debt, and in savings, i have $9,000 liquid, $4,000 in retirement. >> how you gonna pay for this?

hi, everybody. i'm suze orman, and you are watching "the suze orman show." tonight i want to talk to all of you about financial pressure points. what am i talking about? well, i'll tell you. have you noticed in the past few shows i have been talking a lot about real estate? real estate is going up. i've even given you permission to buy a piece of real estate in certain circumstances with only 10% down when, for years, i've been telling you 20%. but the real-estate market's been going up, the stock market this year really has done incredible, and that gives the ability for all these salespeople out there to push your financial pressure point, to say things to you -- "you got to buy right now. inventory is low, interest rates are low. you got to buy now. there aren't any houses out there. you got to do this, you got to do that. you got to invest in the stock market. you're missing it." they're putting you under all

this pressure, and then you end up rushing, and you do something that you're not quite ready to do. so i am asking you when you feel somebody is pressuring you to do something, they are pressing one of your points to get you to make a move, i'm asking you when that happens to you to just stop, to just stop and do nothing. because everything you do with your money should be done in a very thorough, educational, easy way, and when somebody else, who stands to make money off of your moves, is pressuring you to do something, that should be the signal that that is a salesperson and not a financial advisor. remember, you can always do something, but once you've done it, it's over, and there's no such thing that there will be

never a house again that you'll like, the stock market's gonna go up so fast, you'll never be able to get an entry point. wrong. you can do things slowly and surely and wisely. so the next time somebody pushes your financial pressure point, can you do me a favor and just push them away? and that brings me to my "1 on one" tonight in a case of "i must buy now." jean is 43 and a registered dietician. she's separated and will be divorced in a few months, and she has an 11-year-old daughter. now, jean has been living and working in new york, but will be returning home to southern california in a few months, and that's where jean says she must buy now! jean, first of all, welcome to "the suze orman show." now, i need you to tell everybody why you must buy now and what's the problem that

brought you here tonight. >> okay, suze. so the reason why i must buy now is i found this fabulous location. it's a new build in southern california, and i'm not sure if you know the industry right now in southern california. there's no inventory. so i did put down a deposit on a brand-new-build townhouse. it's only 12 units, 3 blocks from the beach, so i'm thinking resell value, and i want to keep my daughter in the same school district in the same area, local area. so that's why i feel like i must buy now. >> and the reason that you must buy now, i understand, but the reason you can't buy now is what? >> well, the problem is that we just sold our house through the impending divorce, and so i really can put down half down on a house, but because i was unemployed last year -- i worked for two years for a pharmaceutical company and then was laid off, and i had severance until october, and

then now i just took this fabulous six-month job in new york city, thinking i can sock away some cash because they're paying for my housing, everything, and it's actually turning out to hurt me because it's considered temporary employment. that, along with being unemployed, is hurting my chances. i can't qualify for a mortgage because i'm temporary. >> and how long will the people that you put the deposit down, how long do you have to actually come up with the rest of the money or to finance this? >> the end of this month. >> so not very long whatsoever. >> correct. >> can you get the deposit back if you aren't able to purchase it? >> yes, that was contingent on selling our house and whether i can get financing. >> what is the real question that you want to know from me? >> well, you know, i want to know should i buy this place. i've been looking since basically october to find a place for my daughter and i to live once i get back to

san diego, and, you know, i have a good chunk of change. i can put half down on a house, but i don't qualify for a loan. so, should i rent? my friends and family said, "you know what? take some time and rent," and that's why i thought coming to new york for six months would give me time to think about it. >> let me ask you this question. your daughter is 11 years of age. >> correct. >> so she moves in with you, she's going to this school. is her high school that she's going to go to in the same neighborhood, as well? >> yes. >> all right. but now we're six years away from when she's going to college. >> mm-hmm. >> now, she has gone, you're there. is this still the house that you want to stay in for the rest of your life? >> well, you know what? i'm thinking location, location, location. it's three blocks from the beach. they've already assessed these houses, these townhouses, for much more than what i'm gonna be paying for them. >> who has assessed them? >> um, the builder, i believe.

>> so the builder has told you that they're already worth $90,000 more than what he's selling them for. is that correct? >> actually, it was the mortgage broker. >> who said that to you. so now you're getting anxious. everybody's telling you there's no inventory, it's $90,000 off. you have to buy. if you don't buy, you're gonna lose this. you got to do anything to lose it. >> but the inventory is a true thing. i mean, there is. i mean, our house sold in one day. you know, yes, i could go to a different school district, and i've thought about that. you know, and i'm not 100% set on moving somewhere else. >> here's what i have realized over the years. when you rush into something, when you become so fixed on i want it, i want it, i want it, but all the signs are saying, "but you can't have it, you're not ready for it yet, no, we're not giving it to you now," and you keep working for it and working for it, you just

might end up with it, and now you've ended up with it, and now an earthquake happens, something else happens, and you're like, "oh, my god," and now you've lost all the $200,000 that you put into it. anything can go wrong at any time. >> right. >> i'm asking you to slow down. while you think, "this is it. you'll never get this again. it will be out of there," trust me. other developers will build. there will be other opportunities. this will not be the last time that you're able to buy something. >> but prices are going up and up and up. >> and who cares? >> 'cause i don't have that much money. [ laughs ] >> yes, but, either you're eligible to buy something or you are not. with interest rates so low, i actually have a little bit of a hard time with you putting down half of the money or $200,000, and it eating up the majority of your funds

simply for you to be able to get a house. so i'd like to see you to be able to buy a house with 20% down, or whatever you could put down, and keep that other money working for you, as well, so not everything is in this one house. so you have got to slow down. you're not even divorced yet from your husband. >> [ laughs ] >> you're still in a separation phase, and it's like you're rushing and rushing. so listen to me. >> okay. >> here's what you are going to do. you can continue to see if you can get a mortgage, but if you cannot get a mortgage... >> for 20% down, right? >> for 20% down. if you cannot, do not touch the money in your retirement account. do not. you are 43 years of age. you're gonna be retired before you know it. do not touch it. the other money that you have needs to start growing,

as well... >> yes. >> ...not just in real estate, but in investment so you have some diversification, and if you can't get a mortgage now, simply rent an apartment. just settle for that until you have found a job, you know you have income coming in, you know what you can truly afford so you don't end up house poor and where every penny you have is going into this house. if you continue to do this, you're gonna end up in financial trouble. you vow to me you're gonna slow down? >> absolutely. >> so just slow it down, girlfriend, and keep in touch and let us know what happens. >> my boyfriend's credit is in the gutter, and he's too afraid to file a police report. >> if i had found out that my father had -- for 10 years, had been doing this to me, i would have picked up the phone, and i would have said, "what in the heck is the matter with

you?" and later... been wanting something? ask me, "can i afford it?" >> i'd like to buy a 2013 hyundai veloster turbo. i'm currently driving a car that's old enough to buy alcohol in most states. [ engine revs] >> wait, wait, wait. steven, do you think that that was a sob story that you just gave me?

"the suze orman show." let's go to nevada.

joe, what can i do for you? >> good evening, miss orman. i appreciate your advice. thank you. >> joe, joe. you can call me suze, okay? >> okay, suze. >> all right, good. that's what i like to hear. go for it. ask me your question. >> okay, a few months ago, my boss gave me a new company credit card to purchase employee travel. however, when checking my report recently, i was surprised to see that the new card and $54,000 of company debt being reported. now, i'm not comfortable with this, and i haven't said anything to my boss. should i be concerned or am i worrying for nothing? >> all right, so on your credit report, you're seeing $54,000 of what? >> company credit-card debt. >> company credit-card debt. is that because on this particular card you've charged $54,000? >> well, i book travel for the company, and -- yeah. >> and are you telling me that with the $54,000 that you have charged on this credit card

that's in your individual name that they are not paying these bills? >> they are paying them, and it's current, but it's just showing up now. i'm a joint holder on this account, so... >> yeah. as long as they are paying them, as long as you do not see any late charges, the $54,000 that you have charged on there isn't that big of a deal if, in fact, they pay it off in full every so often, meaning every month because you shouldn't be carrying any balances. if you're finding that they're only paying the minimum payment due on these cards, and that is why it is racking up and up and up, then i would be seriously concerned, because if one day they say, "you know what? we're out of business," you're gonna be stuck with all that debt. let's go to pennsylvania. julie, ask me your question. >> hi, suze. i got marred right out of high school, and we're working

on 16 years. well, i've worked my way up the corporate ladder, and i have an additional part-time job. my husband is earning the same not-so-good pay for the past 10 years. he's okay with this, i'm not, and he knows it. i'm starting to resent him more and more for causing our financial situation to not reach its fullest potential, and many times i feel like money means nothing to him while it means a lot more to me 'cause i'm working so much more. how do i accept that it's our money to share and it's not just mine? >> mm-hmm. and, julie, why do you think that your husband has gotten stuck as a kid, really, with his money? what do you think has happened to him that's kept him paralyzed from moving on and wanting to make more so that you can save for your future? >> um, i just don't think that he knows what to do. like, he used to work in shops, and he was laid off all the time. he went back to school about four years ago and changed his

profession, and now he works in heating and air, and it doesn't pay very much around here, so he thinks that's just the way it's gonna be. >> and when you say that you're getting angrier or you're -- i'm assuming that's how you're feeling, and it's coming between you, what kind of thoughts have you had in regards to the relationship that you have with him? >> um... i'm not really sure. i mean, sometimes i think that i am his mother, and i don't know if i want to continue to feel that way. >> mm-hmm. >> but, really, everything else in our relationship is great. >> now, what you said was just key. you said you feel like his mother, which means he feels like you are his mother, as well, and when you have your mother telling you something, that's normally when you start to rebel, and you rebel by just staying and doing the same thing and saying,

"i'll show her." do you think any of that has come into play here, that you have made it so hard for him -- i'm not saying he shouldn't be responsible -- that he himself has just simply given up? >> um... yeah, i think that's some of it, and i think the other is he thinks that we are doing great financially, so why should he have to do any more than he has to? >> yeah. and that's because you pay all the bills, correct? >> yes. >> yes. that's the first thing you're going to change. the first thing to change somebody, somebody has to think that they're not doing great if they're not doing great versus they're doing great, and the reason they think they're doing great is they don't have to do anything. you take care of him, you cook for him, you provide for him, you bring in the money for him, you pay the bills for him. it is time now for him to start doing everything for you. so the place that you need to start is with paying the bills with him, showing him how there is no money, asking

him to answer the questions, what if something happens to you, what if something happens to him, and really talk with him rather than him. as long as you make him feel like your son, he is never going to rise up and be your husband. let's go to sara in new york. you are on "the suze orman show." >> hello, suze. um, so after checking his credit cards -- his credit score -- my boyfriend found out that his father borrowed -- i don't want to say the "s" word, so i'll say "borrowed" his identity. during the last 10 years, he's opened eight credit cards in my boyfriend's name and has racked up about $25,000 in debt. in addition, there have been 24 requests for credit, four in the last month alone, from various banks and credit institutions, which we think are attempts to open up more cards. my boyfriend's credit is in

the gutter, and he's too afraid to file a police report as he doesn't want to see his dad prosecuted. we are both very worried. we've just graduated and are at the beginning of our careers. we had plans to get married one day, and so, clearly, we don't want to be stuck in this problem. >> so, sara, let me ask you. has your boyfriend confronted his father about this? >> actually, right now he's in the preparation stage. he wants to confront his dad with all of the facts. >> and i don't know. i just want to say something that if i had found out that my father had -- for 10 years had been doing this to me, i wouldn't want to present him with everything. i would have picked up the phone, and i would have said, "what in the heck is the matter with you?" >> that was my reaction, but he's a very calm person, so he's doing everything very logically, step by step. >> you know, there's a time to be calm, and then there is a time to take action.

if i were you, i would put a credit freeze on my credit reports with experian, transunion, as well as equifax, and once a credit report is frozen, no new credit cards, nothing can be taken out. that is the first thing that he needs to do -- not just put a fraud flag on it, but a credit freeze. the producers can tell you where to do that after you have hung up with me tonight, but that is the very first thing that should happen. then your boyfriend is gonna have to confront his father. up next... you can't afford to miss "can i afford it?" >> our son and daughter-in-law live about three hours away. since we visit about once a month, we'd like to have our own space and give them some privacy. [ horn honks] >> let's be honest. you want to give them more privacy or you want more privacy? >> both. >> both. i knew it. also... "can i afford it? jr."

is this gonna be your very first american girl doll? >> no, i have three. >> three? and -- and you want a fourth one? >> yeah.

>> to go to germany for oktoberfest. >> 15-day african safari. >> american girl doll josephina. >> welcome back, everybody, to the "can i afford it?" segment. this is where you call in, you tell me what it is that you want to buy, and even if i think what you want to buy is stupid, it doesn't matter. i just need to know if you can afford it or not. are you ready? let's go. tom, what do you want to buy? >> hey, suze. it's great to be on the show. >> thank you. >> what do you want to buy, tom? >> i want to go to germany for oktoberfest, which is gonna cost $2,500. >> and why do you want to do that? >> well, suze, i just received my mba. i've been working hard and saving all my money. so i graduated school with

no debt, and now i want to splurge a little bit and travel to germany for oktoberfest. >> i was gonna say 'cause you've worked so hard and you want to now just go and waste $2,500 and go drink a whole lot of beer, show me the money. >> okay, well, i'm 24. my take-home pay is $2,573 a month. my expenses are $1,522 a month, which includes $400 for rent. i have no debt, and savings, i have $8,000 liquid, $10,000 investments, and $49,000 in retirement, which is mostly in a roth. >> yes, and you're a smart boy. you're a smart boy 'cause you know money in a roth i also kind of consider as part of an emergency fund, right? so you know that the way you're getting around this eight-month emergency is 'cause i know and you know you have money in a retirement account. >> i've been paying attention to your show. >> i got that, and how are you

going to pay for this? >> well, i was gonna take the $2,500 out of the $8,000 liquid. >> yeah, and that really brings you down. do you have all of this money that's in your roth, in your retirement account -- is it invested? >> yes, it is. >> it is. so if you needed extra money, you literally would have to sell an investment to take this money and then use it as emergency. >> yes, i would. >> and it is possible at the time that you do that, it could be down. so even though you have the money in a roth, you are denied. because you can't set yourself up. listen, you just said that you went and you got your master's and you're gonna be doing things. you need more in an emergency fund. you can't live on $400-a-month rent forever. those expenses are gonna have to increase. you have to change your lifestyle here and do not waste it going to get drunk,

boyfriend. eileen, what do you want to buy? >> hi, suze. i'd like to buy a used travel trailer for $15,000 to $20,000. >> i love those things. i always have this dream that i -- going throughout the united states, and we pull up, and i go in the back, and i camp out. where are you gonna keep this thing? >> actually, our son and daughter-in-law live about three hours away. since we visit about once a month, we'd like to have our own space and give them some privacy. we're also planning to retire in about seven years, so we'd like to spend more time up there. they have a lot of land, and we'd like to put it right there. >> so, let's be honest. you want to give them more privacy or you want more privacy? >> both. >> both. i knew it had something to do with you. all right, show me the money, and we'll see what happens here. >> okay, our take-home is $9,190, and that includes military retirement. >> yeah. >> our expenses are $4,325 a month. for debt, we have $143,000 15-year fixed mortgage and

an $11,000 car loan at 0% interest. in our savings, we have $82,000, $4,000 in investments, and $221,000 in retirement. >> and how are you gonna pay for this? >> okay, that's the issue. i'm kind of cheap, and i really don't like to touch my savings, so i was wondering about a loan, but then i pay interest on the loan. so i wasn't sure which way to go. >> well, here's what i have to say to you. either way that you do it, you are denied, and -- >> really? >> really. and i'll tell you why. eileen, you are 56 years of age. you do not have enough money in your retirement account -- so everything that you have to generate the amount of money that you're going to need after taxes to live on. and so you're too close to retirement with too little to waste $15,000 or $20,000 now when i need that money

generating for you and so that you can put all your money to work. i'm so sorry, but you're gonna have to just stay in your children's house -- not that big of a deal. >> steven, what do you want to buy? >> hi, suze. >> hi, steven. >> first, i just want to say thank you for the video podcasts, and second, helping a debate my fiancée and i are having on this purchase. >> all right, let me hear it. >> [ chuckles ] so i'd like to buy a 2013 hyundai veloster turbo with the ultimate package for about $25,000. >> who wants to buy that? >> [ chuckles ] i'll tell you the answer if you tell me i'm not approved or denied. >> right. i was gonna say, i'm looking at that car, and really -- $25,000 for that? anyway, show me the money. >> okay. well, before i talk about income and expenses, i just want to tell you about my current situation with the car. so i'm currently driving a car that's old enough to buy alcohol

in most states. >> [ laughs ] >> it's 22 years old, yet it's young at heart. it has over 112,000 miles, but i spend about $600 a year on just fix-ups and maintenance. um, but... >> and -- wait, wait, wait. steven, do you think that that was a sob story that you just gave me -- that you have a car with only 112,000 miles on it? these cars should go 150,000 or 200,000 miles on it. so in my estimation, you have a lot of miles left on it, and it only costs $600 a year. show me the money, boyfriend. i just want to see the money. >> okay. between my fiancée and i, we have take-home pay of $5,065 a month... >> yeah. >> ...and expenses of $4,523 a month, which is about $500 leftover cash per month. >> yeah.

>> in debt, we have a mortgage of $252,000 -- a 30-year fixed mortgage, no credit-card debt, and $10,000 in student debt -- student loans. and we have about $10,000 in cash, and for being 27 years old, we have, between us, $85,000 in retirement. >> steven, you're so funny trying to impress me here with all of these things. how are you going to pay for this? >> i was thinking about putting about 10% down -- so $3,000 down and financing the rest at a local credit union. >> but even if you only put $3,000 down, or whatever it is, that brings you to $7,000. you are denied. >> [ laughs ] >> you're denied because you don't have enough money in an emergency fund. you have student-loan debt. i don't care what you have in retirement. i've had 27-year-olds call in here with $200,000 in their retirement accounts, and you're not just doing so great, although you're doing pretty

good. do not go and waste this money. your girlfriend and your fiancée-to-be should smack you upside the head and say, "keep the car you got, boyfriend." anyway, cathy, what do you want to buy? >> hi, suze, you financial goddess. >> oh. >> i want to go on a 15-day african safari. >> you do? and how much do you want to spend for that 15-day african safari? $4,500. well, that's not so much for a 15-day african safari, but the question is, do you have the money? can you afford it? show it to me. >> okay. my take-home is $2,000 a month. my expenses are $1,273 a month, and that includes $350 for rent. >> got it. so you want to work almost two and a half months just to go for 15 days on a safari. you do realize that. okay, go on. >> yes, because you've helped me out of a huge financial crisis. i can do this. >> all right, all right. let's see if you can. i'm here with you so far. >> okay, good. i have no debt, and in savings, i have $9,000 liquid, $4,000 in retirement. >> how are you gonna pay for this?

>> i'm gonna pay for it in my $9,000 liquid. >> $9,000 liquid. so that will leave you $4,500 liquid. why do you want to go there? >> because i need to celebrate that i've turned 50 and that i just celebrated 25 years of being a massage therapist. come on, suze. you can come with me. >> i go there. you know, i happen to own a home there, right? i go there a lot. you are denied. you adenied. i don't care how tired your little hands are. you need to massage these numbers. you want me to allow you to go down to $4,500 in a liquid account? it starts to make me all kind of crazy -- like, are you kidding me? you can't do that. you have got to wait. and i don't care that you just turned 50. wait until you turn 65. you need to work harder, save more money, and you are not going there. do you hear me? all right, time for "can i afford it? jr." this is where somebody under 16 calls in and tries to convince me to let them buy whatever it is that they want to buy 'cause they have the money to afford it. let's see what we have now.

we have ellie. how are you, ellie? >> good. >> yeah? welcome to "the suze orman show." >> thank you. >> is there something you want to buy? >> yes. >> what? >> well, i want to get the american girl doll josephina. she is $110. >> and is this gonna be your very first american girl doll? >> no, i have three. >> three? and -- and you want a fourth one? >> yeah, because -- >> yeah, why? >> well, the other ones' hair, you can't really play with it, and that's, like, one of the reasons -- like, you get to do the hair in braids and stuff. >> yeah, and have you ever tried thinking about selling your other three so you can buy this one? >> well, i once thought of selling one of them. >> and so you thought about that, huh? >> yes. >> yes. so do you think that this is a need or do you think that this

is a want? >> it's mainly a want. >> it's mainly a want. i see. so, show me the money, and let's see if you can afford what you want, okay? >> well, i make $40 a month for allowance. >> do you work hard for that? >> well, my parents only give me $5 a week for allowance. >> all right, and then they make you work with the other. is that right? >> well, i have to do a lot of work at school. >> a lot of work at school. oh, so they pay you to go to school, huh? >> not really. >> but, anyway, okay. $40 a month for allowance. uh-huh. does it cost you a lot to live? >> well... >> what are your expenses? >> well, i have no expenses or debt. >> none. >> none. >> that's good, don't you think? >> yeah. >> yeah. and what else do you have? >> well, in savings, i have $1,391, and in investments,

i have $885 and $121,000 in my college 529 plan. >> and how are you going to pay for josephina? >> i was thinking to pay for it from cash from my savings. >> and so that would mean you'd have to take $110 out of that account, right? >> yes. >> that's a lot of money, isn't it? >> yes. >> and but you still want to do it? >> pretty much. >> pretty much so. you know, if it were up to me, i would say to you, "but, ellie, you already have three dolls. you don't need this doll -- such a waste of money." but that's not why you're calling. you're calling to say, "suze, can i afford it?" and, therefore, i have to say, yes, you can. you have been approved. you could go ahead and do it, but can you make a deal with me? >> yes. >> would this be your last american doll? >> probably. >> yeah. so you're not gonna waste any more money after this one,

right? >> no. >> all right, thank you, ellie. thanks for calling in. >> thank you! >> all right, bye! >> bye! >> all righty, now. want to be part of the "can i afford it?" segment? all you have to do is go to my website, suzeorman.com, and you will find the information you need to know there to come and play with me right here, and if you are selected and come on the air, look what you're gonna have... a t-shirt that says that i either approved you or denied you -- lots of fun. next, i tackle trending topics in "#asksuze." if you are afraid to put the 20% down, then you are afraid to be buying a house right now. >> before you buy it, first ask suze, "can i afford it?" >> approved. denied. >> "the suze orman show" -- saturday at 9:00 eastern on cnbc prime.

>> welcome back, everybody. here we are in the control room at cnbc headquarters -- so many ways for you to reach me. take a look at your screen. you can send in an e-mail, join me on facebook, and if you put #asksuze and send in a tweet, it comes right to us here, and if we choose it, you will be on the air. let's see what's trending right now. "@ --" are you kidding me? what does that say? "@p-i" -- i'm not even gonna try to pronounce that @pisumnux -- whatever that is. anyway... i have to tell you, if it were me, i would get rid of -- get rid of private student loans even though they are at a lower interest rate. why? because eventually, as interest rates go up, you're going to see

your private student loan go from 4.5% to 6.8%, possibly to 10%, possibly to 16%. they can take you to whatever they want to. i don't like private student loans. if you happen to die, or something happens to you, you want to have a what? federal loan, not a private loan. they're never forgiven. get rid of them. get rid of the private student loan first. let's see what else is trending. @mikecap3... m.a.g.i., everybody, by the way, stands for modified adjusted gross income, and if you are over a certain amount of money, you aren't legally eligible to contribute to a roth, but there is a legal way to get around that. all you have to do is contribute to a traditional i.r.a. -- listen closely now -- and make

it nondeductible. once it's in there, you then can convert it, regardless of how much money you make, into a roth i.r.a. now, if you have other traditional i.r.a.s, you will probably also have to pay tax in a way on this money, so please check with a cpa, but that is how you get around it. all right, let's go to lynda coming to us on webcam from north carolina. girlfriend, what do you need to know? >> hi, suze. my husband and i would like to purchase a home in the near future, and we had a question about putting 20% down. my husband is concerned about a higher monthly mortgage payment and paying p.m.i., and i'm wondering, since interest rates are so low right now, if our money would be better invested. >> no, your money would not be better invested. your money would be far better off as a down payment. if you don't put at least 20% down, you will pay p.m.i., which

is private mortgage insurance. now, here's the scoop. new p.m.i., it lasts for the entire length of the loan. you know, it used to be if you paid p.m.i. -- and you pay p.m.i. when you don't put at least 20% down -- used to go away once you had 20% equity in your home. in many cases now, it does not go away. so you are going to be paying that extra half or 1% on a large mortgage for what? for the rest of the time you have a mortgage. that makes absolutely no sense whatsoever. if you are afraid to put the 20% down, then you are afraid to be buying a house right now. but if you're okay with it, then do so. listen to your husband. he is right in this circumstance. do you hear me, lynda? >> yes. he will love you. [ laughs ] >> oh, good. all right, everybody. let's go back to the studio, and here's what's coming up next. teri wants to know, suze... >> how am i doing?

i live frugally, and at this point, time is more important than money or possessions. >> take this retirement. i want you to take it. >> wow. >> and...

>> hi, suze. i'm 54 and single. i worked at my company for over 30 years. i'm eligible right now to take my pension or a very tempting large sum of money. i live frugally, and at this point, time is more important than money or possessions. my goal is to retire at 55. i'd like to spend time with friends and family, work on my hobbies, pursue other interests. suze, how am i doing?

>> teri, welcome to "the suze orman show." >> hi, suze. thanks for taking my call. >> so, if you were going to grade yourself in terms of could you retire in just one year from now doing everything like you're doing it, what grade would you give yourself? >> okay, i'd have to say i'm also looking at possibility of an early-retirement incentive, so there might be two different grades. i don't think i could go without that incentive. >> but with the incentive -- 'cause i've already done all the calculations with the incentive... >> okay. >> ...where you are taking a pension, they are giving you $1,000 a month for the next four years and 20,000-some-odd dollars. with that incentive, what grade would you give yourself for retiring one year from now? >> i would say a "b." >> a "b." girlfriend, let's show everybody what you got going for you, and then i'll give you a grade myself. >> okay. >> you are 54 years of age. you are single. you have about $513,000 right

now in a retirement account, $107,000 in an emergency fund, $49,000 in investments. you have a home that you own outright worth $268,000. take a look at those numbers, everybody. she has $937,000 in assets, absolutely no debt whatsoever, which means she has a net worth of $937,000. you are almost a millionaire. how does that feel? >> that's great. >> let's show everybody your income versus your expenses. currently you are taking home $3,550 a month. your monthly expenses are about $2,300 a month. you do save $500. so that gives us excess of about $687. but when you go to retire, your expenses are going to go up to about $3,500 a month because you're gonna be responsible for all of your insurance.

so keeping that in mind, the grade that i have given you is also a "b," and let me tell you why. given that your expenses a year from now will be about $3,500 a month, if you look at your pension, your withdrawals from your 401(k) that you'll be able to take 'cause you will leave service in the year that you turn 55. so from money from a 401(k), you can legally take out without the 10% penalty. the $1,000 a month and everything else that you have, your after-tax income will be about $3,900 a month. now, while that is above what you need by $400, i think that's just cutting it a little bit too close. so here is your way to an "a." >> okay. >> take this retirement. i want you to take it. >> wow. >> and after you have taken it, i then want you to find another

job 'cause i don't want you to pass up all this free money that they're about to give you. >> okay. >> so if you could simply find another job that would just allow you to do what? save your pension, save the $1,000 a month, save all this money, literally retire at the age of 60, you would have all of this money that had been building. you would have, believe it or not, $5,200 a month of after-tax income 'cause of those additional five years of growth, and that, then, is enough for you to retire, and then you just simply wait till you are 67 to claim your social security. so if you can do that, girlfriend, you can make this work. coming up next... one more thing i want you to know. i have to tell you, i wanted to deny her so much.

i can't even tell you.

>> welcome back to "the suze orman show." wow, that show went fast tonight. almost a wrap for us here on "the suze orman show," but before we go, there's still one more thing i want you to know. that was really, really, really hard for me tonight on the "can i afford it?" jr." segment where we had ellie, who is 9 years of age, who wanted her fourth american girl doll. >> i want to get the american girl doll josephina. she is $110. >> i have to tell you, i wanted

to deny her so much. i can't even tell you. but that's not what that segment is about. she had the money for it. so, therefore, i had to approve her. but it kills me, and the reason it kills me is that why does a really bright 9 year old want to have four dolls at $110 each? really, people? like, what values are we teaching our children? why is the desire in them to begin with? so sometimes you'll see me approve somebody, but i just want you to know sometimes it really kills me that i have to. now you know. but until next week, there's only one thing that i really want you to know when it comes to your money, and it's this -- people first, then money, then things. now, you stay safe.

bye-bye. "the suze orman show"... a suze alert -- i have changed my advice when it comes to buying a home. also... >> whatever we're doing is not working. i was mad at my husband. >> let's do the math here, caroline. jason, in seven months of work and unemployment... >> i know. >> ...makes twice as much as you. so, can you tell me why you think that's his fault? and you ask me, "can i afford it?" >> i would like to buy an eglu cube -- it's a chicken coop -- for $1,500. >> you want a... [ chickens clucking ] >> [ laughs ] >> are those really -- you have chickens?