Eternally Grateful

Summary

Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough to Listen)

Episode Title: Eternally Grateful
Date: October 9, 2025
Host: Suze Orman
Co-Host: KT
Episode Type: Ask Suze and KT Anything

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Episode Overview

This episode focuses on real-life listener questions on personal finance, with Suze and KT addressing topics like retirement account strategies, investing proceeds from property sales, creating generational wealth, paying off mortgages early, evaluating annuities, and establishing valid trusts. The main thread running through the episode is a sense of gratitude from listeners whose financial lives have been transformed by Suze's advice. Suze continues to stress that true financial security is about more than money: it’s about empowerment, independence, and making informed, confident decisions.

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Key Discussion Points & Insights

Opening Remarks & Community Updates

• Suze emphasizes the essential role of an emergency savings account:

  “The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account.” (00:00)

• KT encourages listeners to check out Suze’s official YouTube channel for timely financial insights and show highlights. (01:37)

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Q&A Segment

1. Maxing Out 403(b): Traditional vs. Roth

Listener: Rachel, 34, daughter of Vietnamese immigrants, physician, new mom
Scenario: Husband earns $80,000, maxes out traditional 403(b) with $2,000 match; next year, Roth 403(b) option available (no match). Should they forgo further matching in favor of Roth’s tax-free growth?

• Suze’s Guidance:
  • Participate in traditional 403(b) only up to the match; then contribute additional funds to Roth 403(b) for tax-free growth.
  • Later, transfer traditional 403(b) savings to Roth, combining the benefits of employer match and Roth advantages.
  • Quote:

    “Why can't you have your cake and eat it, too? … After that point, if I were you, I would stop contributing to the traditional 403(b)…and then change to the Roth 403(b). And later, you just transfer what's in your traditional 403 to your Roth 403.” (05:17)

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2. Investing Property Sale Proceeds for Retirement Income

Listener: Susan, 70s, retired, lives on Social Security, pension, and three rentals; selling a 40-year rental, net proceeds $300,000, wants to replace $1,100/mo net rental income.

• Suze’s Analysis:
  • Netting a fixed amount from rentals is unreliable due to unpredictable expenses (repairs, replacements).
  • Recommends mixing Treasuries, municipal bonds, and CDs to earn ~4-5%, yielding about $1,125/mo.
  • For those willing to accept lower income for growth, consider dividend-paying utility stocks or ETFs (~3-4%, ~$875/mo), which offer some potential for asset appreciation.
  • Immediate annuities are possible but often not ideal—consider spousal protection and estate needs.
  • Quote:

    “You don’t know for sure what you net when you have a rental…If all of a sudden you need a new roof, you’re in deficit. … Don’t be afraid to sell real estate—there are a million ways to replace your rental income.” (08:08, 12:04)

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3. Creating an Income Stream for Adult Children

Listener: Erica, Navy veteran, wants to set aside $500,000 so her 40-year-old son receives income at 60.

• Suze’s Warning:
  • Prioritize Erica’s own financial security; avoid gifting large sums while still alive.
  • Use a living revocable trust to provide her son with monthly disbursements upon her death—don’t “baby” adult children.
  • Shares a cautionary tale about supporting adult children to the parent’s own detriment.
  • Quote:

    “Don’t baby your children. Don’t make it easier on them than they even want…Let them generate their own money, let them be independent, and then give them a surprise maybe upon your death—but don’t do it now, Erica.” (17:11)

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4. Paying Off a Low-Interest Mortgage Early

Listener: Alaina, 39, $415k mortgage at 3%, wants to accelerate payoff by applying an extra $100–$200/mo; husband prefers to invest the difference.

• Suze’s Recommendation:
  • At a young age with limited extra funds, focus on retirement savings over early mortgage payoff.
  • Home value appreciates regardless of mortgage; no need to rush payoff with such a favorable rate.
  • Invest in retirement accounts (e.g., Roth IRA) to build net worth and flexibility.
  • Quote:

    “The house will continue to appreciate in value regardless of the mortgage… If I were you…I would be investing it and making sure that you have like a Roth IRA…Forget about owning it outright at this age.” (19:42)

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5. Annuity Recommendations for a 94-Year-Old

Listener: Jewel, 94, sold home, proceeds ~$1.4M; advisor recommends putting it all into an S&P indexed annuity.

• Suze’s Take:
  • Strongly advises against putting large sums in a single annuity—risks over-insurance and exposure.
  • Critiques advisor’s motives (high commission, poor suitability).
  • Stresses importance of feeling secure and avoiding complex products at this stage in life.
  • Highlights tax considerations for beneficiaries (step-up in cost basis on stocks, not on annuities).
  • Quote:

    “You run, don’t walk away from this person…You would never put more than 250, maybe 300,000 in one annuity… Are you crazy? So, no, you are not to do this on any level.” (22:51, 25:15)

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6. Is My Revocable Trust Valid? (EIN numbers at banks)

Listener: Mary, 65, recovering from a divorce, takes charge of finances, wants to ensure her revocable trust is set up correctly; bank requests EIN.

• Suze’s Clarification:
  • Revocable (grantor) trusts do not require an EIN; only the grantor’s SSN is necessary while alive.
  • Bank’s policy may differ, but following their request does not invalidate the trust.
  • EIN is only required after the grantor’s death, when the trust becomes irrevocable.
  • Quote:

    “A revocable trust is what’s known as a grantor trust, and the IRS treats it as if that means no separate tax return. So no EIN is required. The only thing that is required is your Social Security number.” (29:07)

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Notable Quotes & Moments

• Empowering Listeners through Stories

  “The great thing about the Women & Money podcast—those who listen, their stories end up exactly where I know they would want to be, financially speaking. And that is the reason we keep doing this…” (05:17)

• On Providing for Adult Children

  “Let them grow up, let them be responsible human beings, let them generate their own money, let them be independent, and then give them a surprise maybe upon your death—but don’t do it now…” (17:11)

• KT’s Humor:

  “Get ready for a slap down!” (21:52)

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Timestamps for Major Topics

• 00:00 – Suze’s introduction, emergency fund advice
• 01:37 – KT: YouTube channel update
• 02:27 – Listener Q1: 403(b) Traditional vs. Roth (Rachel)
• 07:09 – Listener Q2: Investing property sale for income (Susan)
• 12:24 – Listener Q3: Setting up income for adult child (Erica)
• 18:08 – Listener Q4: Early mortgage payoff (Alaina)
• 21:42 – Listener Q5: Indexed annuity for 94-year-old (Jewel)
• 26:05 – Listener Q6: Revocable trust & EIN confusion (Mary)
• 31:12 – Closing reminders: “People first, then money, then things.”

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Closing Takeaways

• Financial security is about empowerment, not just accumulating assets.
• Listener stories and gratitude drive Suze to keep podcasting.
• Remain cautious about products or “solutions” that feel uncomfortable, regardless of expert opinion.
• Don’t prioritize helping others at the expense of your own financial security—especially adult children.
• Review and question the motivations behind financial advice you receive, particularly from those selling financial products.

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Final Reminder

“People first, then money, then things.” (31:12)

Suze closes by urging listeners to stay safe, healthy, and secure, reminding us that true financial wellness goes hand-in-hand with personal well-being and independence.

Transcript

[Susie Orman]

Hi everybody. Suzio here. Now, what is the goal of money? The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account. It is essential for your financial foundation. So all of you should be participating in the ultimate opportunity savings account at Alliant Credit Union. Go to myalliant.com to find out more and be secure. October 9, 2025. Welcome everybody to the Women and Money podcast as well as everybody smart enough to listen.

[KT]

This is ask susie and kt anything.

[Susie Orman]

And if you write in to asksusipodcastmail.com and k kt chooses it. Oh, we will answer it on this podcast. Nine days, kt. Nine days. Before we leave we go to Italy.

[KT]

But then we also have Halloween.

[Susie Orman]

I don't care about Halloween. We stop with this Halloween stuff.

[KT]

I'm gonna do the favorite candy.

[Susie Orman]

No, you did that last year. You're a major showing because you're wanting to repeat things. We've already done so. But in nine days.

[KT]

Viva Italia. Hey.

[Susie Orman]

Is that.

[KT]

Hey.

[Susie Orman]

I guess that's Italian, huh?

[KT]

Yes.

[Susie Orman]

All right, go on.

[KT]

I'm Italian.

[Susie Orman]

What do they have for me?

[KT]

Now wait, before we start questions, I want to tell everyone to check out your YouTube channel. Susie has an official YouTube channel and it's YouTube.com susiorman. Why do I want you to go there? She's starting to post these really cool live segments and little pieces of information she wants you to know they're very current, they're great. And along with that you get to see some Susie Orman show and all kinds of things. Maybe I'll come on.

[Susie Orman]

Oh, and wait, wait.

[KT]

It's free. Just know they know YouTube is free, but when you say subscribe, some people might think.

[Susie Orman]

No, they understand subscribe when it comes to YouTube. All right everybody, you heard the boss. Now KT, let's go to questions.

[KT]

Okay, this is from Rachel. Now, Rachel is sending this in. I like this a lot and I like Rachel that who you are. So let me share this with everyone.

[Susie Orman]

What? Have you met her?

[KT]

No, but listen, I've read correspondence with her. No, but I'd like to know Rachel.

[Susie Orman]

You would like to know her?

[KT]

Yeah. My name is Rachel. I'm 34 years old, the oldest child of a Vietnamese immigrants, now an emergency and intensive care physician. Congratulations, Rachel. She said, I'm married to a fellow physician and a new mom of a healthy and happy six month old boy. That's great.

[Susie Orman]

That's why you want to get to know her.

[KT]

No, no, No, I just like this email. So she said, though I consider myself a successful and very blessed person, my parents were unable to teach me about personal finance. I have listened to your podcast for the past three years and learned immensely from it. You have fil this void in my understanding and empowered me to jumpstart securing my own family's financial future.

[Susie Orman]

Now, before you get to her question, because there has to be a question in there, right?

[KT]

Yes, it's up here. It's coming up.

[Susie Orman]

Wait, wait. But did you mainly like this because of everything you just read?

[KT]

To me, I liked it because she's the oldest child of Vietnamese immigrants, and I know many Vietnamese immigrants.

[Susie Orman]

All right, so that.

[KT]

And I really helped.

[Susie Orman]

So it touched your heart?

[KT]

It touched my heart. Anyone from Asia touches my heart, quite frankly.

[Susie Orman]

All right, that's because KT spent 20 years or more living in Hongshuang Asia.

[KT]

And working in Asia. Love the Asian society.

[Susie Orman]

Yeah, go on.

[KT]

She said, I want to jumpstart securing my family's financial future and allowing me to be able to give back to my parents. There you go, Susie. For that, she said, I am eternally grateful. So here's the question. My husband currently makes $80,000. He receives a match in traditional 403. This year, we maxed out his traditional 403 and he received $2,000 in employer contributions. Next July, he will have the option for a Roth 403, though without matching. So for 2026, does it make sense to not contribute to a traditional 403 with matching and instead max out the Roth 403 for tax free growth, though it would imply leaving money on the table? That's her question.

[Susie Orman]

That took forever to get to her question. That's besides the point, but okay, no.

[KT]

But I wanted to share Rachel's story.

[Susie Orman]

Because we all do. Everybody, we have a story. And the Women in Money podcast is made up of thousands and thousands of stories. Stories of people who were living in their car, got divorced and didn't have a penny, came from different countries, and ended up here. Never knew anything about money. Nobody could teach them about money. Their parents had no money. All kinds of stories. But the great thing, in my opinion, kt about the Women and Money podcast. Those who listen, their stories end up exactly where I know they would want to be, financially speaking. And that is the reason we keep doing this, even though we don't have to be doing this. We do this because we love it and we want to and we want you to have the best financial advice around. Rachel, why can't you have your cake and eat it. 2. You obviously said that your husband maxed out on his traditional 403, but only got $2,000. What that says to you is they only match up to a certain point of his pay. After that point, if I were you, I would stop contributing to the traditional 403. You already got your match there. And then I would change to the Roth 403B. And later on, you just transfer what's in your traditional 403 to your Roth 403. Then you have your match and you get to enjoy it, too.

[KT]

I like the cake better.

[Susie Orman]

All right.

[KT]

All right, next question is from Susan. She said, hi, Susie. Husband and I both retired. We're in our 70s and live on Social Security Security, his pension and rent from three rental houses. I'm about to sell one of those rentals that I've had for 40 years. Proceeds from that sale, after taxes, will be about $300,000. Now here's the big question. How can I invest this for monthly income to make up for the loss of the rental income, which after property taxes, income, insurance, and other expenses netted out to be about $1,100 a month. Is that possible?

[Susie Orman]

So, Katie, you know how I often say I scroll through these and every once in a while one catches my eye?

[KT]

This one caught your eye.

[Susie Orman]

This one caught my. Both my eyes.

[KT]

Okay, that means that she answered her already.

[Susie Orman]

I did. I answered Susan directly.

[KT]

What'd you tell her?

[Susie Orman]

Right. So here's what it is. And I just answered her because her and her husb are both retired and they live on Social Security, his pension, which obviously maybe when he dies, will go away for her, don't know. And rent from their three rental houses, and they're about to sell one that they've had for 40 years. So that touched my heart because this obviously is a really big move for Susan. However, everybody, when it comes to real estate, even though I know Susan said that she's going to get about $300,000 and it needs to replace $1,100 a month from her rental, the truth is, in my opinion, you don't know for sure what you net when you have a rental. Because if all of a sudden something happens and you need new windows, you need a brand new roof, you need a new refrigerator, all of a sudden, and that could be $10,000, $20,000 or whatever, maybe for that year. You aren't netting $13,500 a year. It is possible you are actually in deficit for that amount of time. So when it comes to rental income, you can't always just say this is what we net always, because it's not always always. So there's many things that I told Susan KT that she could do. Obviously if she wanted to, she could do a mix of Treasuries, municipal bonds and CDs. And she could probably get in an average of about 4 to 5% range on that, which would net her $13,500 a year or about $1,125 a month. But then they're more long term and that's it. At this point I would like for Susan to also not to just have this income that she knows, but also have growth on her money as well. If she would be willing to take a little bit less income, it would be very possible for her to put all $300,000 into utilities, REITs, ETFs, all kinds of things and average 3 to 4%. But also probably get growth, especially in utility area everybody. But that would only average her about $10,500 a year. That's about $875 a month. Good dividend paying stocks. That would give her the potential for growth or even ETFs. That would be the way I would go if I were her. But Susan, if you just want to replace what you have, you don't care about growth, you don't care about inflation or anything, then just lock in all 300,000 at about 4.5% in different quality bonds, Treasuries and things like that. Right. She could also do an immediate annuity, but not my favorite because it might be all of a sudden she dies. Then what happens to that income for the husband? But that could easily give her 14 to $1,600 a month right now. But I don't think it would be a join and survivor annuity.

[KT]

So, but, so it is possible that when she makes the sale, she can replace that with invested.

[Podcast Disclaimer Voice]

Yes.

[Susie Orman]

And she could do a different thing. She could put 40%, let's say in bonds and CDs, 40% in dividend paying stocks.

[KT]

You know what I would do? I would sell all three of those houses. She had this one for 40 years. And your point about maintenance and the what ifs, get rid of all three and invest all that money.

[Susie Orman]

Well, she has to worry a little bit, I'm sure, about capital gains. So she knows what she's doing. That's not the point. But the bottom line is don't be afraid to sell real estate. All of you thinking how are you going to replace your rental income? There are a million ways to do so. All right, kt.

[KT]

Okay, next question's from Erica. I call this Nino, like our colo. No.

[Susie Orman]

So wait, I just have to say.

[KT]

We have to tell them the backstory of Nino.

[Susie Orman]

So KT kind of treats Kolo like it's her favorite son. And of course it is, because we don't have any son.

[KT]

We don't have any.

[Susie Orman]

So we're sitting there at the breakfast table, whatever it may be, and all of a sudden he comes in and she says, oh, please don't go on the ladder today and fix this. I'm afraid maybe you'll fall. Or no, Kolo, don't do this. It's too hot. And I do this thing. I go, oh, well, Nino, Nino, it's your favorite little son, Nino. Even though it's her.

[KT]

Let me read this one. Ready? So this is Erica. I call her email Ninjo. My dearest Susie and KT Susie, I followed your guidance for most of my life, and I truly credit my strong financial position to your sound advice over the years. Listening to you and KT feels like spending time with sisters I never had. Comforting, wise, and always encouraging.

[Susie Orman]

I'm not sure our sisters would be thinking that right now, but anyway, that's besides the point. Go on.

[KT]

I am a 20 year Navy veteran and just retired after an additional 20 years. Now that I'm entering this next chapter, I'm thinking ahead, especially about my son's future. When I got to that part, I said, nino, I have half a million dollars in cash and I would like to create a stream of income for him. He's 40 years old. I know how you feel about annuities, but I am struggling to find another way to ensure he receives a dependable monthly check when he turns 60. Do you have any suggestions or thoughts on how I might achieve this goal in a better or more efficient way? I'm not going to comment. Go ahead, Susie, you say it. Nino.

[Susie Orman]

No, but Erica, here's the thing. I just want to say. What you didn't say is, how are you doing financially? You didn't say that. Upon my death, I would like to leave him 500,000 if I still have it. Because will you or will you not? What if all of a sudden you have to be in a nursing home or an adult living facility or you get, who knows what can happen? Or you want to hire somebody to come in to care of you? Who knows? So assuming that you mean after you have died and don't you dare do this while you are still alive. Do you hear me?

[KT]

He's only 40, right?

[Susie Orman]

Yes, he's only 40, which means she's really not that old either and she could easily live another 20 or 30 years, which means you are not to give him a penny at this point in time. It will not help him, it will hurt him. And therefore you just need to set up a living revocable trust where somebody is a trustee and that he only gets X dollars per month until the money's gone. Just that simple. But please don't baby him at 40. I know I'm going over today, but there's really something that struck me that I want to say to all of you. And this has happened in many cases of where somebody I'll never forget on the Susie Orman show, this elderly woman, now in her 80s, which is only five years away from me, but that's besides the point. Okay, but no, but she was older, she was sick, she had cancer. Her 58 year old son still lived with her. To support him, she took out all the equity in her home. She had no money at all to leave him and he lived with her and still smokes even though she has lung cancer. And her question to me was what can I do to make sure that he's okay? And my answer to her was nothing. You shouldn't have ever babied him the way that you did because there's no equity in the house now. He can't afford to pay the mortgage that you still have because you took it all out. You don't have any money to give him. So at the age of 60 or so, he's going to be on the streets and there's nothing that I can do for him or you at this point in time. So you better tell him he better figure that out now because otherwise he's going to be in big trouble. Now Erica, I'm not saying that's your son by any means, but everybody listening to me right now, don't baby your children. Don't make it easier on them than they even want. Let them grow up, let them be responsible human beings, let them generate their own money, let them be independent and then give them a surprise maybe upon your death, but don't do it now, Erica, take what I just said to heart.

[KT]

All right, Katie, okay, next question. Susie is from Alaina. I'm 39, married and a mom to a 2 year old. And I'd love your advice on whether it makes sense for us to pay off our home early here's where we stand. We have a mortgage for $415,000. It's a 30 year fixed at 3%, scheduled to end 2051.

[Susie Orman]

With child care costs won't be our problem in 2050. Why do I go on, Katie?

[KT]

With child care costs, we don't have much extra cash, but we could put an extra 1 or 200amonth toward the principal, which would shorten the loan by two to three years. I'll admit some of this is emotional. I have friends who paid off their homes early and it makes me second guess our path. Now, there's quite a bit of background details here on kt.

[Susie Orman]

I just have to ask this, right? Because usually when they're asking me, it's because somebody else is in the picture that isn't agreeing with them. Or she would just be doing it anywhere in that email because it's long. Does it say that her spouse doesn't agree with her?

[KT]

Well, it's funny that you feel that because there is a challenge here. She said, my husband would rather put any extra money into the stock market. I see his point. The returns can outpace our 3% mortgage. But I still struggle with carrying debt for so long.

[Susie Orman]

I knew it. I knew it because you felt it. Well, I felt it because otherwise why would Elena be asking me if that's what she wanted to do, she would just do it. So I've done this long enough, everybody, that when somebody's asking me a very simple question because they know what they want to do, somebody doesn't want them to do what they want to do, just that simple. That happens between me and KT all the time. Anyway, here's the thing, Elena, you're only 39. You say that there isn't really a whole lot more than a few hundred dollars a month extra and that it's going to be many, many years, 2051, before the House is paid off. I doubt highly that here you are, you're only 39, you have a 2 year old. I doubt highly that may be your only child. What if all of a sudden you have another child and then another child you could, you really could. And that house is too small now or it doesn't meet your needs and you want to move. The house will continue to appreciate in value regardless of the mortgage that you have on it. So it's not about the 3% in the mortgage that you want to get rid of, which is how you're going to make money. You make money in a home by it appreciating over the Years. And that will happen. Therefore, if I were you and you don't have a lot of money to really make a difference here, I would listen to your husband and I wouldn't be doing it and I would be investing it and making sure that you have like a Roth IRA or whatever it may be and start doing it that way where you increase your worth not only in your home, but in your retirement. And forget about owning it outright at this age. All right.

[KT]

Okay, Susie, this next email is right up your alley. You ready? This is from Jewel.

[Susie Orman]

Oh, what that means. Wait, here's what that means.

[KT]

Get ready for a slap down.

[Susie Orman]

Everybody aggravate me.

[KT]

It is get ready for a slap down.

[Susie Orman]

She loves when I get aggravated.

[KT]

So this is from Jewel. She said, I'm 94 years old and I sold my house, I downsized and live independently in a small townhouse. I don't need the proceeds, but would like to know where to invest it for safety and growth. She's 94. And then. This is really sweet. She says, my financial advisor would like me to put the proceeds approximately. Ready. $1.4 million.

[Susie Orman]

Oh, wait, wait, let me guess.

[KT]

In an S and P indexed annuity. I don't feel comfortable without your advice. The annuity protects 90% of the principal and gives me 80% of the S&P gain over a six year period.

[Susie Orman]

You know what she didn't say in there?

[KT]

100Th birthday.

[Susie Orman]

Right. But you know what she didn't say there? What's that and how much? 1.4 million in one annuity. Which you would never do, people. I'll tell you why in a second. Right? Commission in commission, I am sure.

[KT]

Just guess.

[Susie Orman]

70,000 or more.

[Podcast Disclaimer Voice]

Wow.

[KT]

In one piece of paper.

[Susie Orman]

One piece of paper. What's interesting, Jewel, is you yourself said, I don't feel comfortable without your advice. Now let's pretend my advice wasn't here. The truth is you don't feel comfortable, full stop. Doesn't matter about my advice. What if I told you go ahead and do it, but maybe you still felt uncomfortable. It doesn't matter what I say, it doesn't matter what I tell you to do. The only thing that matters is you feel comfortable, you feel secure. Now, in this particular instance, you run, don't walk away from this person. First of all, you would never put more than 250, maybe 300,000 in one annuity. And why is that? Because they're only protected. Same thing with FDIC insurance and everything in a bank. Life insurance companies, annuity companies work the same way. So if anything happened to that company, oh, you would have approximately $1.1 million at risk. That's the first thing. Second, if you want to invest this money in the Standard and Poor's or an ETF like voo, then go ahead and do that. Why? Because as that money grows, what would happen is later on, if you wanted to take it out, capital gains, but you die. And really, at 94, you have to be thinking about that, and it passes down to your beneficiaries, they would get a step up in cost basis on that money, so there would be no income tax to them. Your financial advisor should absolutely have said, do you have beneficiaries? Do you care about that? Do you want to leave money somewhere other than a nonprofit? And if the answer to that is yes, then he never would suggest such an investment, because the Standard and Poor's will probably go up. You would probably make money on this. However, upon your death, let's say you put in 1.4 million. It's now worth 1.7 million. It's now worth 2 million. Upon your death, your kids are going to owe ordinary income taxes on $600,000. Are you crazy? So, no, you are not to do this on any level.

[KT]

Run, Jewel. Run.

[Podcast Disclaimer Voice]

Run.

[KT]

Run. Run.

[Susie Orman]

Run. Run. Run.

[KT]

All right, Susie, this is my last email and one that I really think is going to set you off yet again, but I want you to set everyone straight here. This is from Mary. She said Susie and kt. Ten years ago, my husband, a financial advisor, told me that our finances were none of my business.

[Susie Orman]

Please, just pray, let me pray that she divorced that idiot.

[KT]

Ready. After 30 years of marriage, he left me to start a new life with a woman in his office. Blindsided, I was in a fog until Covid, when I started listening to your podcast and reading your books. Good for you, Mary. And then she said, you literally changed the course of my life, and I am eternally grateful. That's the theme, actually, of this week's podcast, Eternally Grateful.

[Susie Orman]

Kt. That should be the thing. That'll be the title, the Women and Money podcast on our website.

[KT]

Eternally it will make grateful.

[Susie Orman]

Eternally Grateful. You listened to.

[KT]

All right, good. So we'll make that the title of this one. I've scrimped and saved, and now I feel secure in my future. But one thing does frighten me. How do you know your revocable trust is valid? Ready? Now, everyone listen to this. Mary, remember, had a husband who told her finances were none of her business. So Mary's not naive. She just didn't know. So listen to this question. A few years ago, I funded my revocable trust. She's 65, by the way. I funded my revocable trust at my bank and Fidelity and I was confident that I was all set.

[Susie Orman]

Danger, danger.

[KT]

Yesterday I went with my 92 year old mom to fund hers. While both institutions said it would be easier not to have a revocable trust. And she wrote, I know better. Thank you. Why? Because Mary's been listening to Susan. The bank said I would need an EIN number.

[Susie Orman]

The bank? What is an employee? How do they know?

[KT]

Let's tell everyone. An ein. Just so you know, it's an employee identification number. She said I need an EIN number to fund my mother's trust. I had never heard of this. Does that mean that my trust is not valid? How would I know? We went out to the car and we immediately went to IRS.gov to get an EIN number for both of us. Brought them back into the bank. But Susie, is this correct or I am now making my trust invalid? I am so confused.

[Susie Orman]

Yeah.

[KT]

This is important. I want you to really explain to everyone what Mary needs to do.

[Susie Orman]

I don't know. Mary, if you made it that the bank would be the successor trustee upon your mother's death and run the money for her. All right, so if you did, some banks then will insist on an EIN for their own internal systems, even though the IRS does not require it. So I don't know if that's why they wanted you to do so. Either way, it has not made it more complicated. So you have to know that a revocable trust is what's known as a grantor trust. And the IRS treats it as if that means no separate tax return. So no EIN is required. The only thing that is required is your Social Security number. That's it. Which is the tax ID for the trust. Just that simple. Again, when an EIN is required after the grantor dies, that would be your mother. The trust becomes irrevocable. So I don't know if you wanted that as well. So the bank's request for your mother's trust wasn't about validity, my love. It was simply about their policy. And by getting an ein, you did not invalidate anything. You just gave the bank a number they're more comfortable with. Just that simple. But everybody, in most cases, we have a trust. We each have our own trust. A substantial trust. But we don't have an ein. Just saying. All right, Katie, that brings us to the end of this wonderful, fabulous, eternally grateful process. I was waiting for you to say that. I was setting her up and she did it. All right, everybody, until next week, you.

[KT]

Just remember three things, everyone. People first, then money, then things.

[Susie Orman]

And you stay safe, Safe, healthy and secure. See you soon. Bye bye.

[Podcast Outro Singer]

We are strong, we are wise we will not apologize. We are here. We will thrive together we will rise with a little bit of faith and everything it takes. We are strong, we are wise together we.

[Susie Orman]

Hi everybody. Suzy O here now. If you are looking for a way to start saving to get the most out of your money, I want you to go to myalliant.com that's M y a l l I a n t dot com and look into opening an Ultimate Opportunity Savings account. Put in at least $100 a month every single month for 12 cons months. Earn 3.10% interest on your money right now and get a hundred dollars at the end. Are you kidding me? It's the best deal out there. Start saving right now.

[Podcast Disclaimer Voice]

Neither Susie Orman Media nor Susie Orman is acting as a Certified Financial Planner Advisor, a Certified Financial Analyst, an economist, cpa, accountant or lawyer. Neither Suze Orman Media nor Suze Orman make any recommendations as to any specific securities or investments. All content contained in this podcast is for informational and general purposes only and does not constitute financial accounting or legal advice. You should consult your own tax, legal and financial advisors regarding your particular situation. Neither Suze Orman Media nor Suze Orman accepts any responsibility for any losses which may arise from accessing or reliance on information in this podcast and to the fullest extent permitted by law, we exclude all liability for loss damages, direct or indirect, arising from the use of this information. The must have documents discussed in this podcast are legal documents created by a lawyer and distributed by Hay House.