← Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Suze School: What The “Big Beautiful Bill” Means for Your Social Security Benefit
00:19:12
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- [00:00]
Suze Orman
Hey everyone, it's KT here and I'm reminding you to take advantage of the most amazing offer from alion. It's the 4.30 APY certificate that you can open now, right now, good for 12 months. All you have to do is go to myalliant.com, that's m y a l l I a n t dot com online. You can sign up for it or right then and there. And again, 4.30 for a 12 month certificate. That's APY annual percentage yield and if you put amounts of 75,000 or more in, it is 4.35 APY. Go on, do it. Because I don't know when this will no longer be available. Come on, don't miss it.
- [00:50]
Unknown
We are strong, we are wise we will not apologize we are here we will thrive Together we will rise we're the little bit of faith and everything it takes we are strong, we are wise Together we will rise.
- [01:17]
Suze Orman
July 27, 2025 welcome everybody to the Women and Money podcast. As well as everybody smart enough to listen Susie O here. And today is Susie School and this podcast. Like many of the Suzy School podcasts, this is where you are going to want to have paper and pencil or your Suzy notebook to write down what I'm going to say. But before I begin, Josh, it is your birthday today, Josh and KT and I wish you the happiest, happiest birthday of all. Josh is Savannah Buffett's husband. We love him so much, I can tell you. So, Josh, I hope we get to see you sooner than later. All right, everybody, let's. Before I even begin what this Suzy School is about, I just want to run through what I really think is happening with the stock market. I've told you that I do think August and September very well could be rough months. And if they are rough months and certain stocks go down or many stocks go down, these will be the perfect two months for you to dollar cost average or go a little bit heavier in the market. And why is that? Because I still think the Standard and Poor's 500 is going to end this year between 6,700 and 7,400. So it's got a nice way to go. I just want to say, you know this market for many, many reasons. It reminds me of the years were you even born then between 1995 and the year 2000. Do all of you remember those years where there was such S and P gains? It wasn't even funny. It was, I think, 34% one year 20%, 31%, 27%, 19%, something like that. And this time right here and right now, unless something bizarre happens, overall reminds me of those times. There are certain sectors that I love a lot. I love all the stocks that I've mentioned to you in the past, but I can't remember if I recommended or I talked about the utility sector. Fabulous sector that you might want to look investing in. Symbol is XLU for the ETF. It pays about a 2.79% yield. Something just to look at also the XRT, the retail ETF. It's interesting because it surged 7.1% this last month. I find that very interesting. And the other thing I'm looking at that I'm finding interesting are REITs. And the one that I'm looking at, the ETF is IYR. They pay a dividend of about 2.49%. Remember, you really want to own REITs in your retirement accounts because most of the time the dividends there, in fact almost all the time are non qualified dividends. So just something to think about. But as I'm looking at all of these things, all of these things are saying to me yields are absolutely going to go lower. I don't know when that will happen, but you can just kind of feel it as you're looking at these things. So just something for you to think about. Also I just have to say Berkshire Hathaway, its symbol is BRK B, a pure value play, something you should look at as well as the high yield corporate bond ETF that I've talked about. The HYGS might want to look at Those yield is 5.77%. And of course, as you know, I still like IBIT a lot. The ETF for Bitcoin for those of you who want to enter that area. All right, so with that said and with interest rates possibly going lower, if everything is going to work out according to plan, which sometimes it does and sometimes it doesn't, you should be taking advantage of the one year certificate at Alliant Credit Union. 4.3 APY for amounts under $75,000. For amounts of 75,000 or more, it's 4.35 APY. Still a great yield. Therefore go to myalliant a l l I a n t dot com and check it out. All right, you have requested this over and over and over again. So I'm going to give it to you. You want to know about the big beautiful bill. What do I need to know about it, Susie? What should I do? What shouldn't I do now. There are so many things in this bill, but the truth of the matter is the majority of people that listen, and I'm so proud of this, I have to tell all of you that listen to the Women and Money podcast and everybody's smart enough to listen, are really close to or already receiving Social Security. So I want to tackle on this particular Susie school the part of the big beautiful bill, the BBB that deals with Social Security. All right, everybody. So if you're younger, you should take notes and share it with your parents, if they're older, or your grandparents. But you need to know these things now. What you need to understand is that this new law makes it permanent that the lower federal income tax rates that have been in Place since 2017 but were scheduled to expire at the end of this year, it makes them permanent. I think that's kind of great, if you ask me. The higher standard deduction that was also in place since 2017, the law was made permanent for 2025. The standard deduction is $15,750 for single tax filers. All right. And $31,500 for married couples filing a joint tax return. So the standard deduction, however, now is also going to be adjusted for inflation annually. I love that. I have to tell you now, in addition to those rules that impact us all, like I said a second ago, there are so many more changes that will impact all of you. All right? So there's too much to cover in just one podcast, but over the next podcast or so, I'll get to all of them. So again, we're going to start with Social Security. Here's what you need to get about this. When Social Security started, everybody, in 1935, do you know that it was completely tax free? But in 1983, I'll never forget this because I was a stockbroker at the time. In 1983, Congress decided that some people should pay taxes on up to 50% of their benefit. But 10 years later, in 1993, they raised it to 85%. But want to know what the kicker is? That the income limits that determine whether your benefit gets taxed or not, they haven't been adjusted for inflation since 1993. So more and more of you have been getting hit with taxes on your Social Security. Like even if you're just making a little bit from a pension, a CD or part time work, the old limits, which were 25,000 for singles, 32,000 for married couples, guess what? If you went over those amounts, you could be taxed on up to 85% of your Social Security, and those amounts have not changed. Now, here's what's important. Before we talk about what has changed, I want to talk about what has not changed. Listen closely. The rules on taxation of Social Security benefits were not changed. Do you hear me? No changes to Social Security. But what did change? Beginning this year, anyone who is at least 65 years of age or older may be able to claim a $6,000 income deduction. You are eligible for it even if you have yet to start claiming Social Security. There is no link between the new tax break and Social Security. So many of you say to me, but Social Security isn't going to be taxed anymore. They're not taxing Social Security. This bill says nothing about the actual taxation of Social Security. It talks about a deduction for you off of your income. So here are the rules. There's this new $6,000 per person deduction, and that deduction is in addition to the already existing deduction available to anyone at least 65 or older. So are you all aware that if you are 65 or older, the existing deduction is $2,000 for single filers and $1,600 each for married couples filing a joint tax return? Now, those deductions were already in place that 2000 1600. They've been there. But in addition to that, There is a $6,000 per person deduction on top of that. So you can claim these deductions whether you take the standard deduction or file an itemized tax return to claim the full $6,000 deduction, or $12,000 total for married couples if both are at least 65 years of age. Your modified gross income must be below $75,000 for a single tax filer and $150,000 for married couples filing a joint tax return. So again, remember, the new $6,000 deduction is for taxpayers age 65 and over, and it begins to phase out. Now, how does it phase out? The deduction is reduced by $0.06 for every dollar over these thresholds. And it's fully phased out if you're making $175,000 magi for a single and 250 for joint filers. So you need to remember that. So after those last two amounts, 175,000 and 250, the deduction is entirely gone. Just that simple. Now, maybe you want an example of this. So let's just say you made $100,000 as a single and the phase out started at 75,000, remember? So you are $25,000 over that limit. What you would do is simply times 25,000, times 0.06, which is a total reduction of $1,500. So the deduction after the reduction is only $4,500. That's it. So a single filer age 65 with $100,000 Magi would receive a $4,500 deduction rather than 6,000. Does that make sense to all of you? Now, I tell you that so that you can figure it out for yourself how much of this deduction that you're being allowed you actually get to take, if any whatsoever. But for now, what you really need to know is that this additional deduction deduction, the $6,000 per person, is available for 2025, 2026, 2027 and 2028 tax years. Under the current law, it will no longer be available beginning in the 2029 tax tax year. So you got to note that this is a temporary tax break and it is only for the new $6,000 deduction. Once again, the $2,000 and the $1,600 per married person deduction for people at least 65, that is permanent. So let's just take a look at who really gets the biggest benefit from this, okay? Because it's not everybody. Again, everybody thinks that Social Security itself is not going to be taxable anymore. Again, that is not true. That is not true. That is not true. This is all about the deduction. That's only good till 2029, by the way. That's when it reverts back. Now here is what is also important. Remember, you may decide that you want to make some conversions from a traditional IRA to a Roth ira. If you qualify income wise for these deductions, you have to watch your income. So if you intend to make any conversions in 2025, 26, 27 or 28, and you will be at least 65, I need you to be aware of how it could impact your eligibility for this 6 or $12,000 deduction in each of those years. If you have yet to turn 65 and you want to convert large sums, it might make sense to convert more now. So you will also be able to claim the deduction once you turn 65. If you have already started to claim your Social Security or that other $6,000 deduction may apply to something else in your finances. So that's why it's important for all of you to seriously sit down with a trusted tax pro to consider what your options are. And is it a smart move or Not. That's what all of you need to know about Social Security. And I hope I did a good enough job explaining it. All right, everybody, again, today at midnight, Pacific coast time is the last time you're going to be able to get the must have documents for $73. So do not wait. Go directly to musthavedocs.com a lot of you, by the way, are just going to must have docs birthday and you're writing me going. But Susie, it's not there. It's must have docs d o c s.com birthday and then you can get $99, which is what it normally sells for. And it's going to be going up shortly. You can get it for $73, but that offer ends in just a few hours later tonight. All right, that was your Suzy School for today. So until next week, no Ms. Travis will join us. There's only one thing that I want you to remember, and it's this. This is the year for your money to make more money. It is. I told you at the beginning of this podcast what I think is going to happen. I don't know if it is or not, but this is the year that your money can make more money. But you have to know what to do with it. You have to be willing to do something with it. And you have to have faith in yourself that you have what it takes to do it. So until then, stay safe, stay healthy, and know that we love you so very, very much. Bye bye. Now.
- [19:35]
Unknown
We are strong we are wise we will not apologize we are here we will thrive Together we will rise we're the little bit of faith and everything it takes we are strong we all rise Together we will rise.
- [20:00]
Suze 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 a hundred dollars a month, every single month for 12 consecutive months. Earn 3.10% interest on your money right now and get $100 at the end. Are you kidding me? It's the best deal out there. Start saving right now.
- [20:38]
Unknown
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.