Suze Orman is a longtime personal finance expert who has hosted hit shows and written several best-selling money books. She has also published videos of her advice and clips from her show on her official YouTube channel, which has over 100,000 subscribers.
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Recently, she published a video called “STOP! Suze Orman Says NEVER Do These 5 Things With Your Money!” In it, she shared several tips for people to help protect their hard-earned money from high fees, debt and complicated estate issues.
Here are some of those top tips and why Orman believes they’re so important to follow to build a successful financial future.
Never Buy a Variable Annuity in a Retirement Account
According to the U.S. Securities and Exchange Commission (SEC), a variable is an insurance product that acts like an investment. Some financial advisors recommend these products, but the SEC explains that these financial professionals earn commissions when they sell them.
Often, variable annuities come with high fees, and customers have to pay extra for certain features. Sometimes, advisors recommend that clients buy a variable annuity inside their retirement account, which Orman says is not in people’s best interest.
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Never Buy Insurance as an Investment
Orman says this piece of advice is similar to the previous tip. She says some financial advisors try to sell insurance as an investment. However, she makes it clear that insurance and investments should be separate.
Orman recommends term life insurance, not whole life insurance. This protects people’s families, she says, without being costly.
Never Finance a Car for More Than Three Years
According to the Federal Reserve’s Q1 2025 data, people financed nearly $40 billion in new car loans. Many car companies offer car loans for extended periods, like 84 or even 96 months. This makes people’s monthly payments lower, but it also keeps them in debt longer. Because cars are a depreciating asset, people run the risk of owing more on their car than it’s worth.
That’s why Orman recommends never financing a car for more than three years.
Never Name a Minor as a Beneficiary
Many parents name their children as beneficiaries on their life insurance or retirement accounts, but this can create legal problems, according to Orman. That’s because a minor can’t legally inherit money. People can, however, set up a revocable living trust according to Orman. Then, they can name the trust as a beneficiary.
If people don’t take the extra step to set up a trust, the children might not be able to access money left to them until they are adults.
Never Cosign a Loan
Orman’s final piece of advice is to never cosign on a loan, even if it’s for a spouse, sibling or even a child. While cosigning for a loan might come from a good place, the truth is that when people cosign a loan, they are legally responsible for the debt, according to the Federal Trade Commission.
Orman interviewed a woman on her show who co-signed for her friend’s private student loan. Sadly, her friend passed away from cancer, but because the caller co-signed on the loan, she still has to pay off the debt.
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This article originally appeared on GOBankingRates.com: Never Do These 5 Things With Your Money, According to Suze Orman
