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

Episode: Three Rules That Beat Budgeting

Date: January 22, 2026
Hosts: Suze Orman and KT

Episode Overview

In this lively Ask KT & Suze Anything edition, Suze Orman and KT tackle pressing personal finance questions from listeners. The centerpiece/theme of the show is Suze’s “Three Rules That Beat Budgeting,” providing practical, easy-to-remember guidance for achieving financial well-being at any stage of life. The episode features in-depth, listener-driven advice on charitable giving, retirement account allocations, pensions, handling parents' debt, inheritance issues, and demystifying the backdoor Roth IRA—all woven with Suze and KT’s signature humor and warmth.

Key Discussion Points & Insights

1. Giving Responsibly: How Much Is "Enough"?

[03:43–07:46]

• Listener Question: Ben, debt-free and financially comfortable, wonders how to determine a responsible amount to donate to charity.
• KT Suggests: “10% is probably a good rule of thumb, like all the tithings that are out there.” [04:43]
• Suze’s Insight: There is no magic percent. “You have got to be responsible for yourself and take care of yourself first.” She recounts an Oprah show guest who gave tithes despite being deeply in debt, and urges listeners to let their heart guide their giving, ensuring their own security first.
• Notable Quote:

  “If you simply follow your heart, it will lead you to the right place to donate money to. Just that simple.” – Suze Orman [07:40]

2. Retirement Account Allocations: G vs. C Funds in TSP

[08:59–13:37]

• Listener Question: “L” is approaching retirement, has a TSP split 50% G fund (government, stable) and 50% C fund (stocks), and asks about the best allocation approaching retirement.
• Suze’s Rule of Thumb:
  • Ensure at least three years (preferably up to five) of living expenses (the “gap” between fixed income and needs) are in safe, stable funds (G fund or money market), not stocks.
  • Recommends starting Roth TSP contributions immediately, and, as of Jan. 28th, 2026, considering in-plan conversions of traditional TSP to Roth TSP if tax situation permits.
  • Strongly cautions against unnecessary withdrawals at retirement.
• Notable Quote:

  “If the market starts to go down, you do not want to have to take money from a C fund... when the market is down.” – Suze Orman [11:25]

3. Pension Payout Choices and Protecting Spouses

[13:37–17:32]

• Listener Question: Kathy asks, "When would a spouse lose a deceased spouse's pension?"
• Suze’s Explanation:
  • Main reason: If the retiree chose a “life only” pension (ends at death, no survivor benefit).
  • Joint-and-survivor options (especially “100% survivor”) ensure continued payouts.
  • Warns if beneficiary paperwork isn’t completed before death, spouse could get nothing. Divorce and beneficiary designations can complicate matters.
• Notable Quote:

  “Life only [pension]... if [you] are married, is the absolute biggest mistake you can ever make in their lives unless their spouse is seriously ill.” – Suze Orman [16:12]

4. Three Rules That Beat Budgeting

[18:15–19:52]

• Listener Question: Peg, 83, asks if it’s too late to change spending habits and requests budgeting help.
• Suze’s Three Rules:
  1. Live below your means but within your needs.
  2. Before spending, ask: Is this a need or a want? If it’s a need, buy. If it’s a want, walk away.
  3. Get as much pleasure out of saving as you do spending.
• Suze’s Philosophy: She dislikes the term “budget”; likens them to diets (“they don’t work”). The three rules provide a better, lifelong guide for spending at any age.
• Notable Quotes:

  “Budgets… are like diets. They don’t work.” – Suze Orman [18:48]
  “These three rules apply to everyone, no matter what age you are.” – KT [19:52]

5. Handling Irresponsible Parents’ Debt & Estate

[20:03–26:11]

• Listener Question: Carla, executor for financially reckless parents with a reverse mortgage, car loan, and credit card debt, asks if she’ll inherit these burdens.
• Suze’s Guidance:
  • Carla and her sister are not liable for their parents’ debts, as long as they haven’t co-signed or agreed to be responsible.
  • Warns that the real issue isn’t what happens after both parents die—it’s the financial strain and care needs if only one parent remains, losing income but retaining debt.
  • Recommends a frank conversation with parents about their true situation, especially if future care might fall to the children.
• Notable Quote:

  “Don’t worry about after they’ve died. The problem becomes what are you going to do as they get older and…keep up these bad financial habits.” – Suze Orman [25:20]

6. Inheritance Taxes on Retirement Accounts

[26:11–28:04]

• Listener Question: Sue wonders if Pennsylvania’s inheritance tax applies to her out-of-state daughter inheriting her $3M 403b.
• Suze’s Clarification:
  • “Normally this 4.5%... applies to things like real estate, things like that. It never usually applies to a retirement account, especially because you happen to be in New York.” [27:23]
• Teachable Moment: Sue is commended for her responsibility; contrasts with Carla’s parents, emphasizing the value of financial education across generations.

7. Demystifying the Backdoor Roth IRA

[29:15–34:41]

• Listener Question: Richard asks, “What is a backdoor Roth and how do I do it?”
• KT’s Attempt: Gives a partially correct answer about Roth eligibility and conversions.
• Suze’s Detailed Explanation:
  • If you earn above Roth IRA limits and have no existing traditional IRA, you may make a non-deductible IRA contribution and immediately convert it to a Roth IRA (the “backdoor”).
  • If you already have a traditional IRA, complexities arise (pro-rata rule), possibly resulting in double taxation.
  • Must convert prompt to avoid growth being taxed later.
• Notable Quotes:

  “A backdoor Roth is where you do not have a traditional IRA already… what you do is you open up an IRA, make it non-deductible, and immediately convert it to a Roth IRA.” – Suze Orman [32:30]
  “If you just try, eventually you will get it… So should you. So until Sunday, there’s only one thing we want you to remember…” – Suze Orman [34:23]

Notable Quotes & Memorable Moments

• Follow your heart in giving: “If you simply follow your heart, it will lead you to the right place to donate money to. Just that simple.” – Suze Orman [07:40]
• On budgeting: “Budgets are like diets. They don’t work.” – Suze Orman [18:48]
• On pensions: “Life only [pension]... is the absolute biggest mistake you can ever make...” – Suze Orman [16:12]
• On backdoor Roths: “A backdoor Roth is where you do not have a traditional IRA already... you open up [a] non-deductible IRA and immediately convert it.” – Suze Orman [32:30]
• Generational differences: “What this really shows you… is if you start early, you’ll be just fine.” – Suze Orman [29:00]

Timestamps for Important Segments

| Timestamp | Segment | |------------|-----------------------------------------------------------------| | 03:43 | Charitable giving – how much is “enough?” (Ben’s question) | | 08:59 | TSP allocations & Roth conversions (L’s question) | | 13:37 | Pension payout choices & spousal risk (Kathy’s question) | | 18:15 | Three Rules That Beat Budgeting (Peg’s question) | | 20:03 | Dealing with parents’ debt and inheritance (Carla’s question) | | 26:11 | Inheritance tax on retirement accounts (Sue’s question) | | 29:15 | Backdoor Roth IRA explained (Richard’s question) | | 34:41 | Encouragement to keep learning; episode wrap-up |

Episode Tone & Style

• Conversational, warm, supportive, and often humorous, particularly in Suze and KT’s banter.
• Suze combines tough love and reassurance, making complex financial topics approachable.
• KT adds relatability, sometimes playing the role of the non-expert learning alongside listeners.

Summary Takeaway

This episode distills financial wisdom down to core principles: act from a place of self-care with giving, ensure safety with your retirement and pensions, don’t worry about budgeting—follow Suze’s three timeless rules instead—and always keep learning. No matter your age or circumstance, it’s (never) too late to make good financial choices.

Signature Sendoff:

“People first. Then money. Then things.” – Suze Orman & KT [35:29]