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

Episode: What Should I Do With My 401(k) When I Retire?

Date: August 28, 2025
Host: Suze Orman
Co-Host: KT

Overview of Main Theme

This episode focuses on key financial decisions facing listeners as they approach retirement, centering on what to do with your 401(k) when you retire. Suze Orman and KT answer listeners' personal finance questions, ranging from handling 401(k) rollovers, Social Security survivor benefits, mortgage payoff strategies, to the use of limit orders in the stock market and the role of life insurance and trusts. Suze provides actionable advice grounded in her decades of financial experience, emphasizing security, suitability, and the importance of tailored, up-to-date guidance.

Key Discussion Points & Insights

The Importance of Context and Current Advice

• Suze emphasizes the importance of listening for the date of financial advice:
  • “The information changes. And what I told you to do four years ago is not what I’m telling you to do now. So everybody pay attention to the date.” (01:15)

Mortgage Payoff vs. Liquidity (Crystal’s Question, 01:34)

• Situation: Crystal, 57, with 4.5 years left on a 3.3% mortgage, $85k liquid, wants to pay off mortgage using $50k and keep building her emergency fund.
• Suze’s Recommendation:
  • Don’t pay off the mortgage early if it means depleting liquidity, especially since interest is low and most interest has been paid upfront.
  • “Doesn’t make any sense whatsoever. So I don’t want you to do it.” (05:07)
  • Warning about home ownership structure:
    • “Do not make this both of your homes. This is your home. You’re going to keep it in just your name.” (05:41)
    • Suggests considering a term life insurance policy for her partner to protect Crystal’s financial interest.

Social Security Survivor Benefits (Juan’s Question, 06:54)

• Situation: Juan asks if his husband can claim his higher Social Security benefit if Juan dies before claiming.
• Suze’s Advice:
  • Survivor benefits are different; you do not need to collect first.
    • “Yes, he can claim your Social Security.” (07:37)
    • Explains the difference between survivor and spousal benefits, emphasizing eligibility for increased benefit.

Rolling Over a Roth 401(k) (Tim’s Question, 08:24)

• Situation: Tim’s wife leaving employer, has $148k in Roth 401(k), wants to roll into Roth IRA; employer match is pretax.
• Key Points:
  • Roth 401(k) can be rolled into a Roth IRA; employer match goes into a traditional IRA.
  • Starting the 5-year clock:
    • “If she opens a Roth IRA today, even with a dollar, if she qualifies for one, then the five year clock has started…” (09:06)
  • Pro tip: Open a Roth IRA early with any amount to get the clock running.

Limit vs. Market Orders in Stocks (Sharon’s Question, 10:19)

• Explanation by Suze:
  • Market order: Buy/sell at current market price.
  • Limit order: Buy/sell at a specified price.
  • Risks:
    • “A lot of times if you put a limit order too close to the market of what’s happening, the traders will just have it go down there, pick up your limit order…so just be careful.” (12:45)
  • Recommends using alerts for price targets to stay informed.

What Should I Do With My 401(k) When I Retire? (Listener’s Question, 14:40)

• Situation: Listener retiring at 68, uncertain where to move her 401(k).
• Suze’s Guidance:
  • Default is often to roll into a traditional IRA via a direct, custodian-to-custodian rollover—liquidate funds first.
  • Essential question: Are you comfortable managing those assets yourself?
  • “Just because you’re not exactly sure…makes me a little bit protective of you. Because if you don’t even know where to move it…I don’t know you would know what to do with it once you moved it. So probably I would be telling you to leave it exactly where it is until you know.” (18:19)
  • Option: Roll over part and try it out.
  • If account has $5,000 or more, can usually leave it in ex-employer’s plan.

On Annuities and Insurance for Tax Purposes (Michelle’s Question, 19:24)

• Situation: 50-year-old single woman with $2.3M savings asks if annuities or life insurance make sense for taxes/income.
• Suze’s Response:
  • Strongly recommends against annuities or insurance policies as investment/tax strategies:
    • “On no level do I want you to touch an annuity, to touch any type of life insurance policy or any insurance investment…Do you hear me? That’s it. Period.” (20:27)
  • Recommends municipal bonds, dividend/value/growth stocks, not worrying excessively about taxes.
  • Humorous remark: “You are not going to do this over my dead body. And as you can tell, my body is not dead.” (21:59)

Trusts, Power of Attorney, and Incapacity (Barbara’s Question, 22:04)

• Barbara asks why both a revocable trust and power of attorney are needed for incapacity.
• Suze’s Clarification:
  • Trust governs only assets placed in trust; power of attorney covers non-trust assets such as IRAs, employer plans.
  • Both are essential, but banks often resist powers of attorney; have both for full protection:
    • “A power of attorney at a bank…may give you problems because they don’t like dealing with power of attorneys…So both of those documents are essential.” (23:20)

Notable Quotes & Memorable Moments

• “The goal of money is for you to be secure.” — Suze Orman (00:00)
• On moving 401(k): “Just because you’re not exactly sure…makes me a little bit protective of you.” (18:19)
• On relationships and joint ownership:
  • “Do not make this both of your homes. This is your home. Their money that they pay goes for rent because they’re living there. And you keep it like that. Girlfriend, trust me on this one.” (05:41)
• On annuities:
  • “You are not going to do this over my dead body. And as you can tell, my body is not dead.” (21:59)
• Playful banter:
  • “KT does both those things to the extreme.” (19:11)
  • "Suze Orman: I want to hear something even more amazing. He seriously loves me the most." (14:40)

Timestamps for Important Segments

| Segment | Topic | Timestamp | |---|---|---| | Crystal’s Mortgage Payoff | 01:34 – 06:43 | | Social Security Survivor Benefits | 06:54 – 08:24 | | Roth 401(k) Rollovers & 5-Year Rule | 08:24 – 10:19 | | Limit vs. Market Orders | 10:19 – 14:21 | | Rolling Over 401(k) at Retirement | 14:40 – 18:43 | | Annuities, Insurance & Taxes | 19:24 – 22:04 | | Trusts vs. Power of Attorney | 22:04 – 23:23 |

Takeaways

• The most critical factor is your financial comfort and security; don’t act before you’re ready.
• Keep liquidity if you have a low mortgage; don’t tie up cash.
• Survivor Social Security benefits can be claimed even if the deceased didn’t claim yet.
• Open a Roth IRA early to “start the clock” for transferring Roth 401(k) funds.
• Use limit orders in stock trading carefully; consider using alerts.
• Avoid annuities and life insurance for tax purposes; focus on smart allocation of regular investments.
• Have both a revocable trust and financial power of attorney for comprehensive financial security.

Closing Words (from Suze & KT)

• “We want your money to make more money.” (24:12)
• “You stay safe and healthy. Bye.” (24:19)

This episode empowers listeners to make secure, informed choices with their retirement assets and personal finances, always centering on security and confidence as the foundation for any move.