Suze Orman Says You Have to 'Get Involved With Your Money.' Here's How

It's advice worth adhering to.

Whether you're investing your money in an IRA, a brokerage account, or a different savings plan, your goal is no doubt to make money. But taking a hands-off approach to investing might limit your ability to do that.

In fact, financial guru Suze Orman says it's important to take an active role in managing your investment portfolio. Doing so could spell the difference between meeting your goals and falling short.

Don't just set it and forget it

Some investing strategies allow you to take more of a hands-off approach. Many 401(k) plans, for example, allow you to put your money into target date funds. What these funds do is invest your money more aggressively during the early stages of your savings window, and then shift toward more conservative investments automatically as your target or milestone date arrives.

The whole purpose of putting money into a target date fund is to set it and forget it. But that's not necessarily the best approach to take with your money, and it's also why a target date fund may not be the best choice for you.

Target date funds often invest too conservatively on a whole, leaving savers short in the long run. So a better bet might be to choose different assets to invest in by doing thorough research.

But from there, you also need to take a hands-on approach, says Orman. In a recent podcast episode, Orman said, "It's not enough for you to just invest your money and get your dividends and the stock that you happen to buy goes up and up and up and you think you're doing fabulous when the truth is you're not getting as much from your money as you could be."

Rather, Orman says, "You have to get involved with your money and get the most out of it." That could mean moving money into different assets as opportunities arise, and knowing when to unload assets that aren't going to give you the returns you're after.

As a general rule, it's a good idea to buy quality assets and plan to hold them for many years, because often, their value will rise over time. But that doesn't always happen. So it's important to keep track of your holdings and make adjustments as necessary.

It's also a good idea to pay attention to how products like I bonds and savings accounts are paying. If you're closing in on retirement, it's generally advisable to shift toward safer assets that might offer a lower return but also come with less risk.

Meanwhile, these days, many high-yield savings accounts and CDs are paying upwards of 4% interest. So if you're on the cusp of retirement, it may not be a bad idea to move some of your money into cash, since you have an opportunity to earn a decent return on it that could be virtually risk-free (provided you're at an FDIC-insured bank and don't have more than $250,000 in cash).

Take control of your money

You've no doubt worked hard to free up money to save and invest. But that's not enough. You should also make a point to keep tabs on your assets and make changes to your portfolio as necessary. Doing so could lead to a lot more of the long-term wealth you're hoping to accumulate.