Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Episode Title: Revisiting: We’re in our 50s, should we get married?
Release Date: January 2, 2025
Introduction
In this insightful episode of Women & Money, Suze Orman, alongside co-host KT Travis, delves into the financial and personal implications of marrying in one’s 50s. Released on New Year's Day 2025, the episode revisits a pertinent question: Is it financially beneficial to marry when both individuals are in their mid to late 50s? The discussion is enriched with real listener questions, practical advice, and personal anecdotes, making it a valuable listen for those navigating late-life relationships and financial planning.
Setting the Stage
The episode begins with a brief introduction by Robert, the producer, who mentions that due to the New Year’s Day celebration, hosts Suze and KT are sharing a previously recorded episode. This particular session features an "Ask KT and Susie" format, allowing listeners to engage directly with Suze and KT through their questions.
Listener Questions and Expert Advice
1. Investing as an 11-Year-Old
Timestamp: [02:06] - [04:21]
Suze and KT tackle a question from Hazel, an 11-year-old aspiring investor. Hazel wishes to open a brokerage account to invest her $24 monthly earnings from chores, aiming to save for a future house rather than a custodial Roth IRA as suggested by her parents.
Notable Quote:
- Suze Orman: “You cannot fix a financial problem with money.” ([00:00])
Advice Provided:
Suze advises Hazel to open a Uniform Gift to Minors Act (UGMA) account instead of a custodial Roth IRA, allowing her the flexibility to access funds earlier for her intended purpose. She emphasizes investing in quality stocks or exchange-traded funds (ETFs) through reputable brokerage firms like Fidelity or Schwab.
2. Marrying in Your 50s and Social Security Benefits
Timestamp: [04:21] - [06:01]
Maria poses a critical question about the financial benefits of marrying in their mid to late 50s, especially concerning Social Security benefits. One partner earns $90,000 annually, and the other makes $200,000.
Notable Quote:
- Suze Orman: “It has absolutely nothing to do at all with how much you get to get for Social Security if you are married or not.” ([04:55])
Advice Provided:
Suze clarifies that marriage does not directly affect the amount of Social Security benefits each individual receives. However, she points out indirect benefits, such as survivorship benefits if one spouse passes away. Suze emphasizes that the decision to marry should primarily be based on love and the desire to share life together, rather than financial incentives.
3. Accessing Roth IRA During Financial Hardship
Timestamp: [06:01] - [07:52]
Tania seeks advice on whether she can withdraw funds from her fully funded Roth IRA to cover expenses after her husband lost his job, and if she can replenish those funds later.
Notable Quote:
- Suze Orman: “Any money that you originally put into your Roth IRA you can take out without any taxes or penalties whatsoever.” ([06:45])
Advice Provided:
Suze confirms that Tania can withdraw her original contributions from her Roth IRA without taxes or penalties. However, she cautions that withdrawing earnings before the age of 59½ and before the account has been open for five years can incur taxes and penalties. Suze advises reviewing the necessity of such withdrawals and suggests continuing contributions to the Roth 403B after addressing immediate financial needs.
4. Navigating Retirement Accounts During Divorce
Timestamp: [11:03] - [12:43]
A listener grapples with dividing retirement assets during an impending divorce, particularly concerning 401(k) and Roth IRA accounts, and how to handle Social Security benefits through her husband's higher-income account.
Advice Provided:
Suze reassures that the process of dividing retirement assets in a divorce typically results in half of the spouse’s assets being transferred to the individual's retirement accounts. She emphasizes that rollover, conversion, or transfer details are secondary to the equitable distribution of assets. Suze encourages focusing on the fair division without overcomplicating the financial mechanics.
5. Utilizing Home Equity for Investment vs. Maintaining Mortgage Freedom
Timestamp: [12:43] - [15:06]
Lisa, a 55-year-old small business owner with a fully paid-off home, seeks guidance on whether to leverage her home equity for further investments or continue enjoying a mortgage-free life.
Notable Quote:
- Suze Orman: “People first, then money, then things.” ([15:04])
Advice Provided:
Suze strongly advises against tapping into home equity due to high-interest rates on home equity lines of credit. She recommends prioritizing contributions to retirement accounts and securing long-term care insurance over taking on additional debt. Suze underscores the importance of financial security and investing in oneself before considering further property investments.
6. Managing Elderly Family Members' Debt and Financial Health
Timestamp: [15:06] - [19:13]
Carol inquires about legally preventing her elderly sister-in-law from incurring additional credit card debt and seeks strategies to manage her existing $12,000 debt across five credit cards.
Advice Provided:
Suze informs Carol that legally preventing someone from opening new credit accounts is not feasible. She assesses that the sister-in-law is managing her debt responsibly by utilizing 0% interest transfers, indicative of a good credit score and financial discipline. Suze advises against consumer credit counseling in this scenario, as it may not provide additional benefits. Instead, she commends the sister-in-law’s approach and suggests allowing her to continue managing her finances independently.
7. Expanding Retirement Savings with Additional Roth IRAs
Timestamp: [19:13] - [22:38]
Mary Ellen asks about the pros and cons of her 74-year-old husband opening a second Roth IRA, given they already have separate accounts and both have earned income beyond Social Security.
Notable Quote:
- Suze Orman: “There are no cons whatsoever.” ([20:39])
Advice Provided:
Suze outlines the benefits of opening an additional Roth IRA, emphasizing the flexibility of withdrawing original contributions without penalties. She highlights the tax-free growth and inheritance advantages for beneficiaries. Suze encourages Mary Ellen to support her husband’s decision, noting that with their ages, they can capitalize on Roth IRA benefits without the constraints typically associated with younger investors.
Personal Anecdotes and Community Engagement
Throughout the episode, KT Travis shares personal stories and engages in light-hearted banter with Suze, fostering a warm and relatable atmosphere. A significant portion is dedicated to KT’s background, sharing her impressive career in advertising and her journey from New Jersey to becoming a successful executive in the Far East before partnering with Suze in their financial ventures.
Notable Quote:
- KT Travis: “People first, then money, then things.” ([30:12])
This mantra encapsulates the episode’s core message, reinforcing the priority of personal relationships and self-investment over purely financial considerations.
Conclusion and Final Thoughts
As the episode wraps up, Suze reiterates the importance of prioritizing people and personal well-being over financial gains. She emphasizes staying "unstoppable" in one’s financial journey, a theme echoed by the recurring motivational song that underscores the episode’s empowering tone.
Closing Quote:
- Unknown: “I'm unstoppable today. No breaks. I'm invincible.” ([30:38])
Suze and KT leave listeners with actionable advice and heartfelt encouragement, reinforcing that financial decisions, especially those made later in life, should align with personal values and long-term security.
Key Takeaways
-
Marriage in Later Life:
- Financial benefits regarding Social Security are minimal; emotional and estate considerations are more significant.
- Decisions should prioritize personal relationships over financial incentives.
-
Roth IRA Flexibility:
- Original contributions can be withdrawn anytime without penalties, providing financial flexibility during hardships.
- Additional Roth IRAs can offer tax-free growth and benefits for heirs without significant drawbacks.
-
Financial Priorities:
- Emphasize personal well-being and relationships over leveraging financial instruments like home equity for investments.
- Maintain robust emergency funds and invest in long-term security measures such as retirement accounts and insurance.
-
Managing Elderly Family Finances:
- Respect autonomy in financial management unless legal measures are justified.
- Transparent communication and support are vital in assisting elderly family members with their financial health.
This episode of Women & Money offers a blend of practical financial advice and personal storytelling, making complex financial decisions relatable and manageable for listeners in their 50s contemplating marriage and other significant financial moves. Suze Orman and KT Travis provide a compassionate and informed perspective, empowering women to make informed choices that harmonize with their life goals and personal values.