Stupid, Stupid, Stupid. You Have To Be Smarter Than This!

Summary

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

Episode: "Stupid, Stupid, Stupid. You Have To Be Smarter Than This!"

Date: April 23, 2026
Host: Suze Orman (with Katie Day)
Format: Ask KT & Suze Anything

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Overview

This episode is an "Ask KT & Suze Anything" edition, where Suze Orman and Katie Day address listener-submitted questions focused on the emotional and practical aspects of personal finance. The central theme is the necessity for financial self-awareness and the importance of smarter financial decisions in the face of recurring mistakes. Suze repeatedly emphasizes personal accountability, the need to confront emotional barriers like fear, and the consequences of not participating in one’s financial rescue.

Throughout the episode, Suze provides direct, sometimes tough-love advice on issues ranging from financial abuse, savings and spending discipline, Roth IRA conversions, Social Security, investing, and beneficiary planning. She also highlights the significance of educating oneself, seeking qualified professional advice, and, above all, prioritizing people over money and things.

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Key Discussion Points & Insights

1. Webinar Announcement & Emotional Side of Money

• Suze announces a special two-part live webinar focusing first on the emotional side of finance (tonight), with a follow-up on practical investment strategies—including ETFs and a “very special announcement.”
  • [02:11] “Tonight I’m going to be focusing everybody, just so you know, on the emotional side of money…”
  • Automatic enrollment for the second part for those signed up for the first.

2. Financial Abuse & Legal Protections

• Listener Josh’s Question: How to protect his financially abused mother’s assets in a community property state (Louisiana).
  • [06:26] Suze: “Just giving away her assets could very easily be challenged in court… She needs to sit down…with a qualified Louisiana family law attorney…you cannot be the solution by taking ownership of the assets. That is not protection.”
  • Notable Insight: You cannot save someone financially who will not participate in their own rescue.
  • [08:29] “You cannot save someone financially who will not participate in their own rescue.”

3. Fear as a Barrier

• Discussion on why people stay in unhealthy financial or personal situations, centering on fear.
  • [09:59] “How it’s fear that keeps us from the wealth we should have, the relationship we should have, the health we should have, everything.”

4. High Income, Low Savings, and Irrational Spending

• Listener Email (via Chrissy): Liz and her husband make $14k/month, spend $8k, low savings, want to open a 0% credit card for Olympics trip.
  • [12:19] Suze: “When you find yourself in a situation that you need a 0% interest rate card so you can go do something because you don’t have the cash for it…something emotionally is going wrong either within you, your relationship, something is wrong.”
  • Memorable Quote: [13:33] “Stupid, stupid, stupid. Liz, you have to be smarter than this.”
  • Urges listeners to cover emergency funds before discretionary or luxury spending.

5. Inherited Property and Taxes

• Yvonne asks: If you sell inherited property within a year, do you avoid taxes?
  • [14:49] “That is not correct, not correct at any level…when you inherit a house from somebody, you get a step up in cost basis as to what it was valued at either the day they died or within six months…has nothing to do with when you sell it.”

6. Roth IRA Conversion Questions

• Amber, age 59, asks about converting IRA to Roth despite current taxes.
  • [16:56] Suze: “Stop thinking so small. Start thinking large…You have many, many years yet for this money to compound. You want it to compound tax free. You absolutely, little by little, should be converting to a Roth.”

7. Social Security Spousal Benefits Post-Divorce

• Barb’s Question: How to claim ex-spouse’s Social Security.
  • [18:24] Suze: “If you want half of his, you have to wait till at least 67…If you claim his Social Security at 65, you’re only going to be getting about 41 to 42% of what his full retirement age Social Security would be, not 50% because you’re not 67.”

8. Tax-Free Investments & Liquidity Needs

• Ann and Tony from California: Inquire about muni bonds for taxable income reduction but need liquidity.
  • [20:16] “When you get a municipal bond, a bond always has a beginning date and an ending date…Don’t be afraid to pay the taxes. Don’t look at a way around it…You need liquidity? Fine. Do a money market account at the highest interest rate you can find.”

9. Adding to 529 Plans Close to College Start

• Jennifer: $7,000 in 529, $4,000 in savings, son goes to college in 9 months.
  • [22:16] Suze: “If you’re not doing financial aid, then it doesn’t matter. But if you are, you might want to put it then in the 529 plan so he doesn’t have anything in his name anymore…This is not money that belongs in the stock market because you are going to need it in nine months.”

10. IRA Beneficiary Planning

• Rebecca: Father passed, mother inherited IRA, who should be named beneficiaries?
  • [24:39] “You each should do it in your individual names…When you inherit this money, you will then have an inherited IRA…You will have 10 years to wipe it clean.”
  • [28:18] Explains importance of designating per stirpes if you want your children to inherit your share if you predecease your parent.

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Notable Quotes & Memorable Moments

• [06:26] Suze Orman: “You can support her, you can guide her, you can even pay for the attorneys, but you cannot be the solution by taking ownership of the assets. That is not protection.”
• [08:29] Suze Orman: “You cannot save someone financially who will not participate in their own rescue.”
• [13:33] Suze Orman: “Stupid, stupid, stupid. Liz, you have to be smarter than this.”
• [16:56] Suze Orman: “Stop thinking so small. Start thinking large…You want it to compound tax free.”
• [18:24] Suze Orman: “If you claim his Social Security or a portion…at 65, you’re only going to be getting about 41 to 42%…not 50% because you are not 67.”
• [24:39] Suze Orman: “You each should do it in your individual names…you will then have an inherited IRA. Not your own IRA, an inherited IRA. You will have 10 years to wipe it clean.”

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Timestamps for Important Segments

| Time | Segment/Question | |---------|----------------------------------------------------------| | 02:11 | Two-part webinar announcement: Emotional side tonight | | 04:18 | Josh’s question: Protecting mother from financial abuse | | 12:09 | Chrissy/Liz: High income, low savings, Olympics trip | | 14:49 | Yvonne: Taxes on inherited property sales | | 16:24 | Amber: IRA to Roth conversion at age 59 | | 17:41 | Barb: Social Security spousal benefits after divorce | | 19:50 | Ann & Tony: Muni bonds and short-term investing | | 21:43 | Jennifer: 529 plan contributions before college | | 23:41 | Rebecca: IRA beneficiary designation after death |

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Tone and Style Highlights

• Direct, conversational, and tough-love.
• Frequent use of “stupid, stupid, stupid” and “you have to be smarter than this” for wake-up calls.
• Suze and KT sprinkle in lighthearted banter about Suze’s hair, webinar nerves, and wardrobe, keeping the episode relatable.
• Quotes are brief, clear, and memorable, reflecting Suze’s signature no-nonsense style.

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Actionable Takeaways

• Seek specialized legal and financial advice (especially with complicated situations like financial abuse or inheritance).
• Emotional self-reflection is crucial—identify feelings (like fear) holding you back financially.
• Build appropriate emergency savings before indulging in nonessential spending.
• Plan ahead for taxes and inheritance—don’t rely on urban myths or half-remembered rules.
• Be proactive with beneficiary designations to avoid family disputes and tax surprises.
• Stay informed and keep learning; financial responsibility is a lifelong journey.

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Closing

The hosts wrap with their typically empowering message:
"People first, then money, then things." — [31:34] Katie Day

Suze reminds listeners to sign up for the free webinar and stay tuned for a forthcoming, especially important second session.

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For those seeking practical, up-to-date financial guidance delivered with candor and warmth, this episode is a masterclass in both emotional and financial self-care.

Transcript

[Suze Orman]

Kt, I'm so happy because people are finally starting to understand the difference between identity theft protection and scam protection.

[Katie Day]

I know, it's an epidemic. The scammers are stealing money online. My money, your money, everyone's money.

[Suze Orman]

Only if you make a mistake to protect yourself. Everybody, go to Suzeorman.com and check out the ultimate scam protection. I promise you, you won't be sorry that you did. She's already making me laugh. Everybody. Anyway, April 23, 2026. Welcome everybody to the Women and Money podcast. And everyone is smart enough to listen. All right, here we go. Today is the Ask KT and Susie Anything edition. If you have a question, send it into asksusiespodcastmail.com if KT chooses it. Oh, we will answer it on the podcast. And as so many of you know, I do answer many of you personally, but that is besides the point. Why are you smiling?

[Katie Day]

Today's our lucky day. You're not even getting there. Today's our lucky day. It is finally here. Susie, Katie Day is our lucky day. No, no, no. April 23rd. Are you a little nervous?

[Suze Orman]

I'm not nervous.

[Katie Day]

I think she's nervous, everyone.

[Suze Orman]

Why would I be?

[Katie Day]

Ner. Yes, it's been three years since you gave a live webinar and tonight is your debut. All right, so webinar time.

[Suze Orman]

Let me tell you everybody though about this. Hopefully you have registered for the webinar that I will be giving. However, if you're not registered yet, just go to susieorman.com there's still time. Over 70,000 of you out there have registered. But KT, I just want to tell people a little bit about the webinar. Please do, because I made a decision here. I've decided I want to do a two part webinar.

[Katie Day]

Great.

[Suze Orman]

So tonight I'm going to be focusing everybody, just so you know, on the emotional side of money, certain things like that. In about two, three, four weeks from now, Keith Fitzgerald and I will be giving a second one webinar where we will actually be giving you exchange traded funds, all kinds of things that you should really know. Very different than the podcast that I do with Keith because you're going to be able to see us and everything in a whole different way and a very, very special announcement. That's all I'm going to say that all of you have been waiting for for approximately to two and a half years. That's it. So anyway, just know it's going to be a two part webinar and that's what's going to start tonight. And listen, everybody, if you've signed up for the first one, you are automatically enrolled already in the second one, so you don't have to do anything. All right? Katie, I can't.

[Katie Day]

Wait for me. Okay, so you're not allowed in the room. Why?

[Suze Orman]

You distract me. Wait, let me tell you.

[Katie Day]

I distract her for one reason. Her hair constantly falls over her left eye. So I sit across from her.

[Suze Orman]

My right eye?

[Katie Day]

Yeah. Your right eye?

[Suze Orman]

Yeah.

[Katie Day]

I've been sitting across from her for years in the TV studio, in the podcast studio, you name it. And my action, which I wish you could see, see on video, is I always use my hand, like, sweeping away hair from my face with the hopes that she'll do the same on her face. I just don't have any hair.

[Suze Orman]

Yeah, but here's the problem. I'm in the middle of something. You know, I'm not a scripted talent. I don't know what I'm going to say. I don't know where I'm going to go, a lot of it. So I distract you, she distracts me. And then I'm like, what was I saying? Oh, my hair. But not speaking about hair. I'm speaking about what you need to do right here. Anyway, that's besides the point. Kt. Okay, what's your question?

[Katie Day]

So this is the subject that made me select this email. It said, is gifting assets the only solution for my financially abused mother? This is from Josh. So, Susie, Josh and his wife have been listening to you for over 20 years with and now the podcast, about five years. And he said, I finally have a question I really want to ask. It's actually from my mother, who has stayed in a financially abusive relationship with my father for over 50 years. And they're in a community property state. That's the problem. So Josh goes on, that's not the problem.

[Suze Orman]

That's what he thinks the problem is.

[Katie Day]

But anyway, he said, My mom's 74. She is almost financially illiterate and reluctant to get a divorce, mostly because she's afraid that community property law would require. Require her to give up half of what she owns, including a little family restaurant that she's had for over 30 years.

[Suze Orman]

Yeah.

[Katie Day]

So the problem is his dad's 76. He's not worked for 30 years. He contributes practically nothing. He doesn't do house or yard work, hoards his assets like a miser. Obviously, Josh is not very happy about his dad and how he treats his mom. And so to make a long story short, the father does have assets. He's very secretive, he's deceitful. He doesn't have anything in the mom's name. And Josh blames the father for the family's dysfunctional communication around money. Long story short, again, Josh wants to move what assets his mother has, which is very little, into his name as a gift so that he's able to provide whatever she needs to take care of her house or, you know, whatever. So, Susie, what is the best solution that you can give Josh at this time?

[Suze Orman]

Kt, this is one of those emails that I answered directly, just so you know.

[Katie Day]

What advice did you give Josh?

[Suze Orman]

So, first of all, this is sad. So everybody, what you need to know, and this is what I love, because KT doesn't know when I answer, all of you and I play this little game, is she going to pick a question that I already answered and she did. In this particular case, you all need to know that Josh and his family live in Louisiana, which is a community property law state. So what I told Josh, and I'm telling all of you, is that just giving away her assets could very easily be challenged in court, the whole thing, and blah, blah, blah, blah. But that's not the problem. The problem is his mother needs to sit down, in my opinion, with a qualified Louisiana family law attorney. Not a general law, not a friend, but someone who deals specifically with divorce, separation, and asset protection in community property states. So she needs to understand that even though the husband has had money in his individual name, he's secretive about it and everything, doesn't matter. It's still hers. Unless she signed a prenup for it, unless there was something about it, which I doubt that she did. So she needs to explore, if you ask me, a legal separation if she refuses to divorce. The real problem here is why has she stayed for so long, Josh? Why? And that's what needs to be dealt with. So what you need to understand is that you can support her, you can guide her, you can even pay for the attorneys, but you cannot be the solution by taking ownership of the assets. That is not protection. Now, listen, if she refuses to act after getting proper legal advice, then you need to accept a very hard truth. You cannot save someone financially who will not participate in their own rescue. And that is, Katie, probably the best advice. You know, as kids, we want to sometimes save our parents. As parents, we sometimes want to save our kids. But the truth is we can't save anybody if they are not willing to participate and save themselves. The main thing, Josh, you need to do is set up this meeting, confront your father, tell him how it has upset you. And again, if mom doesn't want to do anything, you can't do anything about it either. But get her to see a true divorce lawyer in Louisiana. All right, Katie. It's sad, isn't it?

[Katie Day]

Yeah. I really felt for that email. It looked like Josh was struggling of whether or not to send it to you. But here's what he said. His wits ends with this.

[Suze Orman]

But how did it come it took so long. I don't know how old Josh is, but what made her stay for about 50 years. Right. She's been in this relationship for 50 years.

[Katie Day]

I think people are just afraid. Yeah, but afraid of change.

[Suze Orman]

Right. So fear. I'm glad you said that because I'm going to address fear tonight on the webinar. How it's fear that keeps us from the wealth we should have, the relationship we should have, the health we should have everything. So maybe I'm going to focus on fear tonight. Let's see what happens.

[Katie Day]

All right, so next is from Chrissy. Hi Susie and kt. This one kind of put a smile on my face, although it's not funny at all. She said, I'm writing this on behalf of my dear friend Liz, who also happens to be my neighbor. She's okay with me writing this letter. And she is copied here. Chrissy wrote Susie, I think Liz needs a Susie smackdown. All right, so in a nutshell, Susie. Like so many Americans, Liz and her husband have relatively high incomes and and low savings. They both take home about $14,000 a month and their regular expenses are about 8,000. Liz works for the federal government and he works in tech. Now they both feel very secure in their jobs. Their savings has dwindled from 50,000 to 30 after a big Disney trip they just had. Instead of rebuilding the savings, she wants to open a zero interest credit card so they purchase tickets to the Olympics which is going to be a very expensive trip. What a loser, right? It's not a loser.

[Suze Orman]

No, this is a loser situation. This is.

[Katie Day]

Can you give her some advice, Susie? She's not taking it from me. And at the. Do you want to know what they have?

[Suze Orman]

Go on.

[Katie Day]

All right. So they have 350,000 in retirement. They're in their late 30s, early 40s. They have an eight year old daughter, 8,000 and a 529 plan. And they have a mortgage with 26 years left on it, a car loan and a small amount of student loans. Both of them are not carrying any credit card debt.

[Suze Orman]

Oh, good for them. Yeah.

[Katie Day]

So Chris is asking you, please give her friend Liz a Susie slap down or at least let her see the writing on the wall.

[Suze Orman]

Chris. And this is another situation, kt, where I wrote her back directly, just so you know. So what I want everybody to know, since you chose this email, when you find yourself in a situation that you need a 0% interest rate card so you can go do something because you don't have the cash for it. When you find yourself in a situation that you are making more than what you are spending every month, and in this case it's like 8,000amonth they have for expenses, that means she needs a $96,000 emergency fund which Liz doesn't have and all she has is $30,000. It shows you that something emotionally is going wrong either within you, your relationship, something is wrong. When you don't have money and you're making money and you're spending more than you're making. You have to go within to see why you are doing without. You are not going to be in your 30s and 40s forever. You're going to be in your 50s, in your 60s, in your 80s, and who knows what's going to change because of artificial intelligence. Maybe I'll talk about that again tonight. But whatever, you have got to get a reality check. So use this as an example of what you make does not determine what you get to spend. It's how you're investing it. What you make after your 12 month emergency fund is covered, you're out of student loan debt. You're, you know, you're putting more towards your mortgage. Possibly so. But to look at a 0% interest rate on a credit card just so you can go to the Olympics. Stupid, stupid, stupid. Liz, you have to be smarter than this. All right, Katie, that's good.

[Katie Day]

I think Chris will like that.

[Suze Orman]

I think I gave her a hard slap down. No, I gave her a hardest slap down in my email, but that's besides the point. All right, go on.

[Katie Day]

All right, this is from Yvonne.

[Suze Orman]

Isn't this funny? Once again you're picking ones that I have answered. I love that.

[Katie Day]

Okay, next one's from Yvonne. Hi, Susie. Hope you and KT are doing great back in Florida.

[Suze Orman]

We are.

[Katie Day]

Can you please remind me, when someone, someone passes away, is it correct that if you sell the home they left you within one year you don't have to pay additional taxes?

[Suze Orman]

That is not correct. Not correct at any level. It's not about when you sell the home has nothing to do with timing anymore. It has to do with this, you were left the home. You have to know that when you inherit a house from somebody, you get a step up in cost basis as to what it was valued at either the day they died or within six months. So let's just say the house you just got is worth $800,000. Just let's say that's true. That then is your cost basis. You turn around and you sell it for 800,000. Guess what? No tax. If you live in it as your primary residency for two out of the past five years, then you get to take another $250,000. So even if it goes up from 800,000 to a million, and it's been your primary residency for two out of the past five years and then you sell it, you're still not going to owe anything in taxes because KT $800,000 plus 250 is like 150. 1 million 50. She sells it for 1 million. No capital gains tax, just that simple. All right.

[Katie Day]

Okay. That's great. And Yvonne also lives here in Florida.

[Suze Orman]

Yeah. Well, what's wrong with this weather? What's up with the weather? We haven't been able to take our boat out. It's been three solid months of wind and waves. What's up? All right, next question.

[Katie Day]

Okay. From Amber. She said. Hi, Susie. I'm in the process of moving my IRA into a Roth. Ira.

[Suze Orman]

Yeah, baby.

[Katie Day]

Through my financial advisor. I was wondering if this is a wise thing to do. I'm 59 and I make about $100,000 a year. I was thinking, what if taxes go down? I'm actually then going to lose money. I'm ending up paying about 4,000 a year when I file my taxes. Should I keep moving forward with this or should I just leave everything where it is?

[Suze Orman]

Are you crazy? Listen, this is another topic that I hope I'm asked on the webinar tonight because there is a host of the webinar and they ask me questions. So if not, I'm going to answer this anyway. Overall. But listen to me. Stop thinking so small. Start thinking large. Where what is the big picture? Not this little stupid picture that you're paying $4,000 a year in taxes. Your 59 years of age. You have many, many years yet for this money to compound. You want it to compound tax free. You absolutely, little by little should be converting to a Roth. Next question.

[Katie Day]

Kt okay, next question is from Barb. She said. Hi, Susan.

[Suze Orman]

KT Hello, Barb.

[Katie Day]

Hi, Barb.

[Suze Orman]

Does that remind you of your sister Barb?

[Katie Day]

So I have A question regarding when to take Social Security. My ex spouse's social will be larger than mine. I would like to take half of his when I start taking Social Security.

[Suze Orman]

So that means kt, if she wants half of his, she has to wait till she's at least 67, full Social Security age to get 50% of his half of his or she's going to get less than half of his. So go on, keep going.

[Katie Day]

Okay, so she just said she's 63 this year. He's 60.

[Suze Orman]

Yes.

[Katie Day]

All right. So you know she's going to have to wait quite some time.

[Suze Orman]

So let me tell you the laws of how it actually works, everybody. So you get this right. First of all, if you were married to somebody and now you are divorced and you want to claim their Social Security half of it, you have to have been married for at least 10 years. Just know that everybody, you have to wait for at least two years after you have been divorced and you can't be remarried. Just know that as well. Now if you are 63, he is 60, you have to wait till he's at least 62 before you can claim on his Social Security. In two years you're going to be 65. So what that means is if you claim his Social Security or a portion of his Social Security at 65, you're only going to be getting about 41 to 42% of what his full retirement age Social Security would be, not 50% because you are not 67. So here's the thing, wait till you're 67 and just make sure, I'm telling you to make sure that half of his is more than 100% of yours. So just do that calculation because you just never know. Next question.

[Katie Day]

Katie, this is from Ann and Tony in California. Susie, can you help us with investing in tax free investments or any other suggestions to reduce our taxable income? Our tax preparers suggested muni bonds, municipal bonds. But since we may need the money relatively quickly, is there a way to buy municipal bonds without making long term commitments?

[Suze Orman]

So here's the thing, everybody. When you get a municipal bond, a bond always has a beginning date and an ending date. And for you to get an interest rate that's even equal after taxes to like a CD or something or even a money market account, you would have to go out a lot longer and you say you need the money right away. You can do short term muni bond funds and things like that as long as they're from California, but it's not worth it. It's not Worth it. Remember muni bonds because they are tax free. They don't give as high as an interest rate as CDs and things. So you always have to do the calculation. Don't be afraid to pay the taxes. Don't look at a way around it. And also I'm just going to say this. I personally would not be taking investment advice from a CPA unless he was also a CFP or a financial advisor that told people what to do with money and did not participate in the commissions from it. I think you're looking for trouble here. Just to save a few pennies here or there or a few dollars here or there. You need liquidity. Fine. Do a money market account at the highest interest rate that you can find and they are out there. Yes, Katie.

[Katie Day]

Okay. From Jennifer. I opened a 529 a couple of years ago and have $7,000 in there. My son will be going to College in January 2027.

[Suze Orman]

So just a few months from now, next year.

[Katie Day]

I also have about $4,000 in a personal savings account for him. Was wondering if it's wise to add it to the 529. Now given the state of the current market and the fact that we will need access in about nine months. What should we do? Do you think it's worth it?

[Suze Orman]

So here's the thing. You have to know. Are you going to be applying for financial aid or not? Because if you have $7,000 in his name and possibly a uniform gift to Minors act or trust account, that's his money, that will count against him in financial aid. So if you're not doing financial aid, then it doesn't matter. But if you are, you might want to put it then in the 529 plan so he doesn't have anything in his name anymore. And then you apply for financial aid. But this is not money that belongs in the stock market because you are going to need it in nine months. Remember, you need five years or longer for money that's in the stock market. That includes money with the 529 plans as well. Or you stage it because four years from now when you may have enough for the last year their senior year. All right, maybe you leave that there. But if they need it within nine months, that's money that's in a money market account within the 529 plan. Katie, have another one for me.

[Katie Day]

I do. This is from Rebecca.

[Suze Orman]

Let's make this our last one. So I say my voice for tonight. Okay. You know, I can get very energetic.

[Katie Day]

She gets feisty on her.

[Suze Orman]

I get feisty and on. And it's especially so I can, you can see, I can already feel it. She's piping up, she's hyping up. So I better start saving my voice. All right, go on.

[Katie Day]

So Rebecca said, susie, I'm the oldest of four siblings ranging in the age from 54 to 62. We all live in different states. I am in New Jersey. My father passed in February at the age of 91, and my 89 year old mother survives him. She has inherited his retirement accounts, which are with tiaa and, and we've been advised to invest them in a new IRA in her name. Here's my question. Who should be named as the beneficiaries for the new ira? And now this is, this is a good question. She said, if the four of us are named as beneficiaries, then do each of us have to take minimum distributions over the next 10 years and pay tax on the portion we inherit? If just one of us is named as the beneficiary with the intention that they share the funds, how would that change anything?

[Suze Orman]

That is a good question, one that I did not answer back, just so you know. So it must have come in recently. Anyway, here's what you need to know. Rebecca. Yes, Daddy died, leaves his retirement account to Mommy because she is an eligible designated beneficiary, which means as a spouse, she gets to take his retirement account over as her own. It's not an inherited one. It becomes her own. However, now she has an IRA rollover in her own name, or it's in her own IRA account, whatever she had to begin with. And now she needs to name beneficiaries. When she names the beneficiaries, you all will be designated as non eligible designated beneficiaries. And these are all terms, everybody, that you need to know. And what that says is that when you inherit this money, you will then have an inherited IRA. Not your own IRA, an inherited IRA. You will have 10 years to wipe it clean. Now listen closely to me. You have till September 30th, 30th after the year mommy dies, to open up inherited IRAs in your own name. There are four of you, I'm telling you, you each should do it in your individual names. You should not have one person do it. You should have all four of you do it. Because when you're taking out required minimum distributions, which you're going to have to do if you don't wipe the whole thing clean at once, if you're going continue to Take out required minimum distributions, which you all have to do based on your life expectancy, but over a 10 year period of time, so your age, the amounts are going to be different. You're each in different tax brackets. So that is how you should do it. If you just have one person do it, that one person is going to have to take out a large amount taxed at their tax bracket that may increase, increase their taxes, blah, blah, blah. So beneficiaries should be individual. Now here's what you have to decide. If one of you dies before Mommy, where does that portion go? Does it go to your children, if you have children, or does it go because I see that she has grandchildren on here, but I don't know if they all have children. Right. Maybe only three out of four of them do. Does it go to your children or does your portion, your quarter go to the remaining three or possibly the remaining two? You have to make that decision. If in fact you want it and Mommy decides she wants it this way, you want it to go to your children, then it has to be Per Stirpes. So you have to check with. When she opens up an IRA in her individual name and she names beneficiaries, can you do it in something called your name, but Per Stirpes, which means that it goes to your children in case you die before her. Before her. So just something to think about. Now listen, if you get flaky on me here and you don't open up your inherited IRAs by September 30th after the year she has died, guess what? It's automatically going to be based on the oldest beneficiary's life. So you don't want that to happen to you. That is not good. So this is something you need to sit down with everybody, make decisions, and then name just the four of you as the beneficiaries. Just that simple. Why are you looking so confused?

[Katie Day]

I'm not confused. I'm just thinking that that is a really important step the family needs to take with mom while she's alive.

[Suze Orman]

While she's alive and how she wants that. Listen, everybody, this is a hard topic because we automatically assume because mommy's older that what's going to happen, she's going to die before us. That doesn't always happen that way. It just doesn't. I'm so sorry to say. So go into this little meeting with her, talk about it. But say, mom, if I were to die before you, what do you want to happen with the portion that would come to me? So let's See what she says and then you go from there. All right, Katie, I think that brings us to the end.

[Katie Day]

That is a wrap. You better rest today. Rest your voice.

[Suze Orman]

I'm not gonna rest today.

[Katie Day]

Are you excited?

[Suze Orman]

We're gonna go.

[Katie Day]

What are you gonna wear?

[Suze Orman]

Probably my little black jacket like I always wear.

[Katie Day]

Okay.

[Suze Orman]

I don't know. Will I wear it? Yeah, maybe yes, maybe no. I don't know. I always feel better, everybody. When I'm on TV or anything. When I'm dressed in black. I'm not sure why that is, but that's just my most comfortable color. Is that a color, Katie?

[Katie Day]

Yeah. Well, yeah.

[Suze Orman]

Not on the color chart, is it.

[Katie Day]

Black is the combination of all colors, as is white.

[Suze Orman]

No wonder why I liked it. Everything's either black or white because it contains everything. Anyway, everybody. So until Sunday, when we will be having another Suzy School. I didn't mean to say we. I meant to say I will be having another Suzy School. There's only one thing that I want you to remember, and it's this. Go to Suziorman.com and register for the webinar for tonight. If you have not done so, it is free. Listen, if you can't make it tonight, don't worry. Just register anyway because there will be replays of this webinar over the weekend. So register away. And remember, this is a two part webinar. Part one is tonight. Part two will be with me and Fitzy in a few weeks sometime, probably the first week of June. So therefore, just stay tuned for the second part because I'm telling you the second part.

[Katie Day]

Oh, sexy.

[Suze Orman]

It's not sexy, but you're gonna wanna hear what we have to tell you. All right. But until then, there's only one thing that we want you to remember when it comes to your money. And what is it, Katie?

[Katie Day]

People first, then money, then things.

[Suze Orman]

You stay safe.

[Katie Day]

See you tonight, everyone.

[Suze Orman]

All right, Bye. Bye.

[Podcast Chorus or Group Voice]

We are strong, we are wise we will not apologize we are here we will thrive Together we will rise we're the. And everything it takes we are strong, we are wise Together we will rise.

[Suze Orman]

I know and you know that there are many of you out there that have home equity lines of credit. But do you have one with a 3.99% fixed interest rate for six months and then prime plus zero? I doubt it. So I want you to go to myalliant.com and check out what I think is the best HELOC on the market today.

[Podcast Disclaimer Narrator]

Neither Suze Orman Media nor Suze Orman is acting as a Certified Financial Planner Advisor, a certified Financial Analyst, an economist, cpa, accountant, or lawyer. Neither Suze Orman Media nor Susie 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 comprehend 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 mentioned in these podcasts are legal documents created by a lawyer and distributed by Hay House.