When to Just Let it Go

Summary

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

Episode Title: When to Just Let it Go

Date: May 14, 2026
Hosts: Suze Orman & KT

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Episode Overview

In this engaging episode, Suze Orman – joined by her wife and co-host KT – answers financial questions from listeners while sharing personal experiences and hard-earned wisdom. Recording from Japan, the duo discusses not only money, but deeper themes of security, boundaries, and responsible decision-making. Suze’s trademark tough love and actionable advice take center stage as she addresses questions on supporting a spouse’s risky business venture, the ins and outs of retirement account protections, managing overwhelming debt, eligibility for Roth IRAs, and responsible ways to finance home remodels. The central message: sometimes, the wisest financial (and emotional) move is to "let it go."

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Key Discussion Points & Insights

1. Setting Limits and “Letting Go” in Financial (and Life) Decisions

• Listener Katrina’s Dilemma (04:07–11:32): Katrina, a longtime listener, explains her household’s stresses after her husband’s job loss and risky entrepreneurial venture.
  • Suze’s Principle: If you're supporting a loved one's dream with your shared finances, set a very clear limit—both a dollar amount and a timeline.
  • Personal Anecdote: Suze shares her own story investing $4 million in a venture she truly believed in, ultimately deciding to stop when she hit her pre-set financial boundary. (07:46)
    • Quote: “You have to set a limit as to how much of your own money you are going to put into it.” (07:55, Suze Orman)
  • Advice: Sit down with your partner, review finances together, and agree: "When the angel investors’ money is gone, no more of ours goes in."
    • Quote: “Sometimes you have to just let it go. But really, you have to put a limit on it, a date on it.” (10:21, Suze Orman)

2. ERISA, 401(k)s, IRAs, and Asset Protection

• Question from Wendy (12:06–17:31): Should she keep her pricey 401(k) because it offers protection from creditors, or roll it over to an IRA for better investment options?
  • Explanation of ERISA: Suze details the Employee Retirement Income Security Act (ERISA), and how it provides unlimited protection from creditors and bankruptcy for 401(k), 403(b), and similar plans—but not for IRAs.
    • Quote: “When you have an employer sponsored plan, you are normally under ERISA… you have unlimited bankruptcy protection. It does not matter if you have $100 million in one of those plans.” (13:48, Suze Orman)
  • Advice: While protection is a plus, it doesn’t outweigh high fees and inflexibility if you’re not otherwise at risk. Consider moving some— not all—funds to an IRA.
    • Quote: “Just protecting that money isn’t enough reason, in my opinion, to keep it in a 401(k), believe it or not.” (15:53, Suze Orman)
  • Key Reminder: Inherited IRAs are not protected. State laws can further complicate protection in IRAs. (17:35)

3. Credit Card Debt and the Statute of Limitations Myth

• Question from Alana (18:00–21:49): Heard on Suze’s show about a “five-year rule” for credit card debt: is ignoring it until it’s wiped off the record a good plan?
  • Clarification: The so-called “five-year rule” is the statute of limitations on debt collection, varying by state. Suze warns against relying on this as a debt solution.
    • Quote: “You should not simply not pay the $80,000… in hopes that in five years or whatever the statute of limitation is passes and then you got away with it. It’s your debt, you accumulated it.” (20:20, Suze Orman)
  • Practical Steps: If struggling, look into 0% APR balance transfer cards, or seek help via nfcc.org (National Foundation for Credit Counseling).
  • Insight into “Debt Negotiation” Firms: Watch out for legal firms that may harm your credit while taking payments to negotiate a lower payoff.

4. Disability Income and Roth IRA Eligibility

• Question from Julia (for her friend) (21:49–22:32): Can her friend, now receiving 100% military disability, open a Roth IRA?
  • Suze’s Short Answer: No. Disability payments (if tax-free and not from work) are not considered earned income, which is required for Roth IRA contributions.
    • Quote: “Disability from military that’s 100% tax free does not count as earned income.” (22:23)

5. Financing a Home Remodel Without Compromising Security

• Question from Deanna – a Quizzy! (22:32–25:30): Should she use her emergency fund, take from her Roth IRA, or get a HELOC for a $25,000 bathroom remodel?
  • Suze’s (firm) Advice: Don’t touch the emergency fund or retirement savings. Focus on building a robust emergency cushion—especially with retirement looming.
    • Quote: “I would not be doing a remodel at all… She does not have the money to do it.” (23:33)
    • Quote: “You are not going to take money from your Roth retirement account. That is just stupid.” (24:51)
  • Alternative: If you must, and you're still employed, consider a HELOC from a reputable institution (e.g., Alliant). But replenish emergency funds first.

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Notable Quotes & Memorable Moments

• On Setting Boundaries with Loved Ones:
  • “You have got to set a limit… Go over all the numbers… if this doesn’t work by this, with this much more money, it’s over, sweetheart. It’s just over.” (08:54, Suze Orman)
• A Moment of Personal Reflection:
  • “I love KT more than life itself. We couldn't be more supportive of each other.” (03:50, Suze Orman)
• KT’s Humor: After Suze’s advice about not remodeling with emergency or retirement funds — “I was going to say denied, but the HELOC might be approved.” (25:30, KT)
• Sign-off Wisdom:
  • “People first, then money, then things. Now you stay safe.” (26:38, KT & Suze Orman)

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Timestamps for Important Segments

• [04:07] Katrina’s entrepreneurial dilemma & Suze’s boundary-setting story
• [07:46] Personal example: Suze’s $4 million “approved card” venture
• [12:06] ERISA and 401(k) protection explained
• [13:48] Unlimited bankruptcy protection in qualified employer plans
• [18:00] Statute of limitations & misconceptions on ignoring credit card debt
• [20:20] Why dodging debt isn’t responsible; advice for paying it down
• [21:49] Roth IRA eligibility and military disability
• [23:33] Don’t finance discretionary expenses from emergency or retirement savings
• [24:51] Home remodels: only with a HELOC, and only if emergency fund is full

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Tone & Style

The tone is warm, direct, and often playful, thanks to the lively dynamic between Suze and KT. There’s a deep undercurrent of empathy and encouragement, paired with Suze’s classic no-nonsense, clear-eyed practical advice.

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Takeaways

• Protect your financial foundation: Emergency funds are non-negotiable, especially before big spending or retirement.
• Set limits—on investments, on risk, on supporting others—so you don’t endanger your own security or relationships.
• Understand the rules: Not all retirement accounts are equally protected from creditors and bankruptcy.
• Don’t rely on loopholes or legal technicalities to escape debt; honor your obligations when you can.
• When in doubt, follow Suze’s mantra: “People first, then money, then things.”

Transcript

[A]

Hi everybody. Suzio here. Now, what is the goal of money? The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account. It is essential for your financial foundation. So all of you should be participating in the ultimate opportunity savings account at Alliant Credit Union. Go to myalliant.com to find out more and be secure. May 14, 2026 Kinda. The reason I say kinda is cuz,

[B]

you know, we're in Japan.

[A]

We're in Japan. We've pre recorded this.

[B]

We're actually in Japan.

[A]

Where would we be today?

[B]

On the 14th day in Japan, Susie is going to a place she's been wanting to see forever.

[A]

What's that?

[B]

Osaka Castle.

[A]

The castle, yes and all.

[B]

And this was actually built by one of the great samurais of all time. And when she saw this in what was the series we watched that we loved the Sam.

[A]

I don't know. Listen everybody. I love samurai. I love the two, the culture, I love everything.

[B]

She's going to go to what they call the White Castle. It's beautiful.

[A]

And here's what's interesting. Fitzy is fascinated as well with samurai. Fitzy and I are so much alike, I can't even say that.

[B]

You're like brother and sister.

[A]

I know, but I'm older than him.

[B]

He's like a little brother. He's fun. He calls her every day. I think he calls you more than you call him. He like checks in with big sister.

[A]

No, I, I FaceTime them.

[B]

They call each other every day.

[A]

Right. But anyway, welcome everybody to the Women in Money podcast as well as everybody smart enough to listen. This is the Ask KT and Susie anything. Ed, as you may know, we have a new email so that if you want to send in a question that maybe KT will choose and we'll answer it on the podcast. Send it into what?

[B]

KT podcastsusie.com.

[A]

are you sure?

[B]

Very simple. Just send an email podcastksksksusie.com yes, thank you. So and KT put in the subject area. KT choose me. That's my first one I'm reading, but

[A]

let me just finish this. My love, please don't worry if you sent in an email a while ago because we're kind of behind on emails because there's so many of them.

[B]

If you sent it to the original email address, we still get it. That's what she's trying to say.

[A]

Yeah, there you go. Sorry.

[B]

All right, all right. I'm getting a little punchy. I had too much sake. Susie doesn't drink, but I do.

[A]

I try. All right, go on, kt.

[B]

All right, so my first question is from Katrina, and she did say. She said, kt choose me. That's what it says in the subject. She said, dear susie and lovely KT. Of course I'm 37.

[A]

Why does everybody think I want to talk to you for a second?

[B]

This is.

[A]

Put that down just for a second. I need to talk to you.

[B]

Okay.

[A]

Why is it, kt, that everybody says, darling kt, kt, so nice you're so hard on kt. Don't be so brutal on her. Don't put her down.

[B]

Well, want to hear my first one, how it ends? Let me read the ending to everyone first. I would really appreciate your wisdom, Susie, and love from kt.

[A]

Oh, and you want me to answer this person?

[B]

No. This is a. This is a very interesting podcast, everybody.

[A]

Just in case you wonder, I love KT more than life itself. We couldn't be more supportive of each other. Right, kt?

[B]

Yes, of course.

[A]

Right. Do you ever feel like I put you down?

[B]

Never.

[A]

All right.

[B]

Never, never.

[A]

That's just how we are with each other.

[B]

No, she lifts me up, if anything.

[A]

All right, go on.

[B]

All right, so this is from Katrina. Dear susie and lovely KT. Of course. I'm 37. I have a baby girl, 8 months old. And the only podcast we listen to is yours.

[A]

Thank you, Katrina.

[B]

So Katrina said, I work full time, and she's at the same job that she loves. She's been there for 11 years. Loves her job. Her husband was let go along with his entire division about a year and a half ago, around the same time they were expecting a baby. So this is the dilemma. He's an expert in his field. He's a game designer. He's always had a great job, Susie. Extraordinary job. And all of a sudden, everything has changed since 2020, 25. So what Katrina writes is, money has always meant security to me. And now, Susie, I don't feel secure. So she said, I've always lived below my means. My mom and I saw your start on Oprah. This is a true blue Susie, loyal listener. And then she can see what gets me.

[A]

Already it's all I, my mother. I listen to you with my daughter.

[B]

Oh, this gets even more.

[A]

I don't hear the we in there

[B]

at all ready for this? She writes me, she's 37. She says, me. She gives me a whole list, a whole list of her finances. And I have to say, I'm impressed, Susie. She has Everything in place, and a very handsome Roth 403. Then she lists spouse, 41 years young. He's a little bit older than her. His list has four things on it. That's it. His entry is very small. And then she lists their expenses. But here's the dilemma. I love my husband so much, and I see he loves me and our daughter just as much, if not more. All right, this is a. She said, we've been together for six years. He's never worked this hard. He uses AI to create an app that is now live with. With great performance numbers and user stats, but ready. But his angel investors are running out of funds next month. He's used his entire emergency fund, sold his stocks, and now she's been selling hers. So here's where she said, I would really like your wisdom, Susie, and love from kt. I want the best for my family, in particular my daughter and my health. Katrina has long Covid. She said, I finally gathered my courage to write to you. I'm trying to maintain my warrior mindset while navigating all of this. What am I missing? And then she goes on to say, there's some things in life I just can't control. I just want our health to be together, a roof over our heads, food, and the necessities. Thank you for inspiring me since I was a very young girl. So this is. I just want to share with you all. Katrina and her husband are from Silicon Valley, and I fear that this story is one that may be repeated more than we want to hear. What do you think, Susie? I mean, this is a really sad dilemma, in my. In my opinion.

[A]

Yeah. Here's the thing, Katrina. When you're doing something that you really, really believe in, that you really, really think is going to help people, you have to set a limit as to how much of your own money you are going to put into it. How do I know that? Because quite a few years ago, I really believed in something that I had created, funded with our own money called the approved card. And the approved card was a prepaid card that actually was to give you a credit score. And I had this whole idea of how to help people that didn't have money. And I knew it was going to help them. I knew it. One million into it, two million. I put $4 million seriously. Of our money into it. And we were so close. So close. We just needed a few more people to adopt it and we would be on our way. And I closed it down because that was the limit I set. Now, thank God, it was Only our money that we lost and not investors money. Because partially, I would probably feel like I would have to pay everybody back. Now, I tell you that because I believed in this so much and I know how much it would have helped the world. What I didn't know is how the world didn't want it because they wanted to make money off of you versus to help you. Just that simple will go on. You have got to set a limit with your husband. You have to sit down with him, go over all the numbers that you presented to Katie and you have to say, this is where we are. If this doesn't work by this, with this much more money, it's over, sweetheart. It's just over.

[B]

She has to be that warrior, right, Susie?

[A]

You have to. And otherwise what's going to happen is this will continue and continue over. All of his money will be gone, all of your money will be gone. And then you're not going to feel the same way towards him because you're going to be angry at yourself that you allowed all of your money to go down the drain when you already know that is probably what's going to happen. So you say that it took a lot for you to write here. All your courage you had to muster. And how many times have I said you never ask a question in most cases like this that you don't already know the answer to. So you sometimes have to just let it go. But really you have to put a limit on it, a date on it. And I think that date is going to be set, I have to tell you, by his angel investors, when they stop investing, it is over. So I would be making a deal with him. When their money is gone, this is over. You're not putting any more of our money into this. We will figure this out together, but this is not the answer. Let's hope their money doesn't run out. Let's hope it all turns out like he needs it to and he wants it to. But in case it doesn't, you know what to do. Next question. Kd, little angel love. What did she say you wanted to

[B]

give her love from kt?

[A]

I just gave her love.

[B]

You did? You did.

[A]

I know how to give love.

[B]

All right, this is from Wendy. Hi, KT and Susie. Thank you so much. Does that remind you of something?

[A]

No.

[B]

Hi, Susie. Hi, Susie. Hi, Susie. Oh, Colo. Hi, Susie.

[A]

Colo. Our little Colo. Our Colo race.

[B]

I miss that Colo, if you're listening, because I know you listen to Susie's podcast. I so miss every Morning.

[A]

Oh, now she's not gonna cry.

[B]

His little head would stick in the door and he'd go, hi, Susie.

[A]

There I'd be in bed still. All right, go on. I got up at like 4 in the morning. All right.

[B]

I always say, hi, Susie. So, hi, KT and Susie, thank you so much for all that you do for us. With your help, I never feel like I'm alone trying to navigate my financial life. Your advice about finances and have been a true blessing.

[A]

Thank you.

[B]

So I was going to roll over my 401k from previous employers into my traditional so that I could consolidate and have more investment options. Also, I'm charged $290 a year for the 401k. While this isn't a lot, you have taught me that it all adds up. My question is regarding. I don't know how to say this. Erisa.

[A]

Erisa.

[B]

Erisa. E R I S A. I don't know what that means. And the extra protection you get from creditors. Do you want to tell them what it is?

[A]

I will.

[B]

All right, Arisa. Remember that, everyone. I've been reading about the cons for rolling over and this one comes up. We have no debt, so I'm not concerned about credit cards or bankruptcy. However, if we're ever in a car accident and we're Sued, would a 401k be protected? Is this a reason I should keep my 401k instead of doing a rollover? Erisa, tell us what that means, Susie.

[A]

I hope I remember this, Katie. Right. ERISA stands for Employee Retirement Income Security act. And it was passed in, I think, 1974.

[B]

Wow.

[A]

And it was to protect plans that were held under like a 401k, 403b, all of those plans. So when you have an employer sponsored plan, you are normally under erisa. Now listen to me closely, everybody. When you have money in a 401 or any plan under ERISA for that matter, you have unlimited bankruptcy protection. It does not matter if you have $100 million in one of those plans. If you claim bankruptcy, they cannot come after it. There is no limit at all. If, however, you have money in an ira, a Roth ira, all of those, your limit all the way, I think it's through the year 2028, is about $1.7 million. And so if you have seven different IRA accounts, the total is 1.7 million for bankruptcy. But let me tell you this because this is very important for you to understand. Money that is in a 401k or an ERISA plan is not only Protecting you against bankruptcy. It protects you against creditors as well. So in this case, if she's in a car accident, they sue her and all her money is in a 401, she is absolutely protected.

[B]

Yeah, that's what Wendy asked.

[A]

Yeah. So she. However, there are other ways to protect money. You could have liability insurance and the fact that they're charging her money to be in the plan and that she wants to do an IRA rollover. She has no debt, she's very responsible and she wants to invest that money in individual stocks. Just to be protecting that money isn't enough reason, in my opinion, to keep it in a 401k, believe it or not now, doesn't mean that she can't keep some of it in a 401k for that reason to protect her. However, I wouldn't be keeping all of it in a 401. Now listen, if you have an inherited IRA, it is not protected against bankruptcy. If you have money that came from a 401k and rolled it into an IRA that is protected in addition to the 1.7 million, all your other money is protected up to. But it's no longer, once it goes into an ira, protected against creditors. To that confusion.

[B]

How do you remember all these things? I never heard of this erisa. Interesting.

[A]

Well, you wouldn't have because you haven't had for a long time, Katie, you haven't had a 401k or 403. Right. SEP IRAs and all of those are also protected. The main protection over an IRA versus an ERISA plan is unlimited bankruptcy and protection against creditors. Again, in an Iraq, it's 1.7 million. A little bit more than that against bankruptcy, no protection against creditors and inherited IRAs, nothing. All right, go on.

[B]

So, Susie, just to make this clear for Wendy and for me.

[A]

Yeah.

[B]

If you have money in an ira, an ira, is it protected from creditors?

[A]

So I just said no. So in some states, it's protected against federal bankruptcy up to 1.7 million. But in some states, individual creditors can go after money in an IRA. They cannot in a 401K. All right, KT, really? Next question.

[B]

Okay. From Alana. Hi, KT and Susie, thank you so much for all of your practical advice and generosity in sharing your wisdom. I am 41 years old, a new listener for the last year and a half. But. But I have been a consistent listener. We are working our way out of over $80,000 in credit card debt. And I have a credit card that is maxed out at 16,000 that I enrolled with a law firm that negotiates a payoff at a lower rate. I set this up and have been making payments since before I started listening to Susie's podcast and YouTube channel. Since then I believe I heard talking about how if you're unable to pay a credit card, you might just want to wait five years and do nothing and the card will be closed and just forgiven. Can you please correct me if this is not the case and explain the best way to get out from under credit card debt? And then this is so sweet. She said you have both been a lifeline. Thank you. So Alana listens to you faithfully.

[A]

So Alana, here's Let me just first straighten out something about this five year rule. There's something known as the statute of limitations that if you have credit card debt on your credit report that has been charged off, if a collection agency has not come after you, if nothing has happened with it, you haven't heard from anybody, or within a five year period of time, or whatever the statute of limitation is for your particular state, then it's over. Nobody can come after you anymore. So normally what happens is right before the statute of limitations is up, that's when you start hearing from creditors who bought your debt for pennies on the dollar. They contact you in the hopes that you'll say, oh, I'll send in a little money, I'll do this. And if you do that, the statute of limitations starts all over again. You should not simply not pay the $80,000 or something in the hopes that in five years or whatever the statute of limitation is passes and then you got away with it. It's your debt, you accumulated it, you bought something with it. If you have the money to pay for it, then you should be paying for it. The best way to do it again is if you have a high FICO score or a good one, then look to get a balance transfer card, transfer all of that to a 0% balance transfer for 21 months, pay it off little by little, or contact the nfcc.org and they'll work out a payment program for you, the $16,000 that you're paying off via a lawyer. I'm afraid they probably stopped paying your debt off altogether, ruined your FICO score. You're giving them little bits of money at a time that they're accumulating for you. And then eventually what they will do is call the credit card company and say, hey, she owes you 16,000. Will you settle for eight? And they'll say, okay, but it hurt your FICO score So please find out from your lawyer exactly how it works. And again for me, I would rather see you do a zero interest balance transfer card or nfcc.org Next question.

[B]

KT this is from Julia. Julia said, dear Susie, one of my.

[A]

Wait, no. Kt Just to me.

[B]

Yeah.

[A]

I love you, girlfriend. I might have to answer you personally. Go on.

[B]

Well, this is about her friend. It's not even about her. She said, dear Susie, one of my dear friends finally got granted 100% disability from her military service. Is there a way for her to open a Roth ira or does she need at least to have a part time job to be eligible?

[A]

She needs a part time job to be eligible. Disability from military that's 100% tax free does not count as earned income. Next question.

[B]

Kt, Good morning. Time. This is from Deanna Quizzy.

[A]

Time for you. For you.

[B]

All right, we want to remodel our bathrooms. The total cost for the remodel is about 25,000. So here's the quizzy. How should we pay for this? We have an emergency fund with $15,000 invested in ETFs. We have a Roth with 87,000 also invested in ETFs. She said, we're working. We have a house that's paid off, which means we have an extra 4,000 each month to replenish the emergency fund. We've maxed out the Roth contributions this year already. I'll be retiring at the end of October. Ready? Our total retirement savings is $1 million. I think I'll take it from the Roth. So she's asking, am I making a mistake? What about an Alliant Heloc? Susie?

[A]

Oh God. Here's the thing. I would not be doing a remodel at all.

[B]

Why not?

[A]

Because she doesn't have the money to do it. Listen to me closely, KT. She has an extra $4,000 a month, but she only has $15,000 in an emergency fund. I don't know what her expenses are, but a $15,000 emergency fund means that if it was going to be a 12 month emergency fund, which is what I want her to have, she'd have expenses of like $1,200 a month, which you know, she doesn't. So therefore something is wrong. She is not to take it from her emergency fund, she's going to retire in a few months from now. Really? The rest of the money, the 4,000 extra right now should go into her emergency fund. So over the next X amount of months, maybe she'll have about 50,000. Some amount of Money in there, that makes sense. And it stays in there in case of an emergency. So you're not going to touch your emergency fund. You are not going to take money from your Roth retirement account. That is just stupid. If you want, I would do a HELOC loan from Alliant Credit Union if you happen to live in one of the states that they offer it in, because it really is one of the best deals out there for a HELOC. So go to myalliant.com and look at the HELOCs there and look at the states that it's allowed if you qualify. And that's how you want to do it. Okay. But you're going to be paying that off for quite some time because the extra money isn't going to go to pay that off, is going to go into your emergency fund until you have at least 12 months of expenses.

[B]

I was going to say denied, but the HELOC might be approved.

[A]

Might be, but it becomes very difficult. But she wants to do that heloc, she better do it now before she no longer has a job. I mean, that's what I was kind of telling people, that if you're lucky enough to live in One of those 28 states, now is the time to get that home equity line of credit. Not really going to cost you anything. It's there. It's at a 3.99%, I think, fixed rate for six months. It's a great, great deal. But go to myalliant.com and check it out. All right, KT, I know we're pre recording this. I know that very shortly we're gonna be on a plane in two or three days heading back. Do I have any more surprises after wherever I see that White Castle today?

[B]

One more, but I can't tell you.

[A]

Why can't you tell me?

[B]

It's really a great surprise. No, everyone has to wait.

[A]

Oh, okay. All right. So until Sunday, there's only one thing that we want you to remember when it comes to your money, and it is this. Take it away, my love.

[B]

People first, then money, then things. Now you stay safe.

[A]

Bye. Bye.

[C]

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