Latest news with #Orman
Yahoo
25-06-2025
- Business
- Yahoo
Suze Orman: 3 Pros and 2 Cons of Taking Social Security at 67 or 70
Claiming Social Security benefits is an incredibly personal decision for many Americans. It's understandable to feel paid-in and that it's time to receive money early, but that can have costly consequences. In a YouTube video, FinanceBuzz outlined things personal finance expert Suze Orman has said on the matter as it's a common topic of discussion by the money guru. Here are three pros and two cons Orman said regarding taking Social Security at 67 or 70 rather than earlier. Trending Now: Discover Next: Americans can begin claiming Social Security benefits at 62. Unfortunately, claiming early will cost you. 'If you are in your late 50s and in good health, you should seriously consider the upside of delaying when you start, so you can earn a higher benefit,' Orman wrote in a Facebook post. Orman isn't wrong, either. Full retirement age (FRA) is 67. Waiting to claim will add 8% to your annual benefits once you start collecting benefits or you reach 70 years old, according to the Social Security Administration (SSA). This can be a great way to increase payouts, especially if you don't need the funds now. Explore Next: Continuing to work is a reality for many retirement-age Americans. Over 11 million Americans over 65 are still working, according to the Bureau of Labor Statistics (BLS). While it is possible to have earned income on Social Security, it will be costly for those taking benefits before FRA. You can earn up to $23,400 if you claimed benefits under 67 before payments are reduced. That number increases to $62,160 if you claim at FRA. Orman advised Americans to consider what will be best for their long-term future. 'I encourage you to keep returning to this thought exercise: What are the financial steps you might take today to be kindest to your future older self? The 88-year-old. The 90-year-old. The 95-year-old,' Orman wrote on her website. If you don't need the funds now, waiting will greatly benefit that older version of you. Survivor benefits can be a crucial help after the death of a spouse. Regardless, the surviving spouse can only receive one monthly benefit, not two. 'If your household expects Social Security to cover essential expenses, consider how your income may change in the future. When a spouse passes away, the survivor can only collect one benefit–their own or their spouse's. That means a potential drop in monthly income,' Orman wrote in a Facebook post. Delaying benefits until 67 or 70 for the highest income earner can provide a good way for the surviving spouse to receive the highest benefit possible. Claiming Social Security isn't a one-size-fits-all solution. Health can play a sizable role in the decision to receive benefits. Waiting until FRA is financially beneficial, but it may not work for Americans with serious health concerns. 'If you arrive at age 62 in poor health, claiming your benefit early may make sense,' Orman wrote on her website. Holding off until FRA could pose challenges for Americans facing serious health issues. A 65-year-old retiring in 2024 could expect to spend $165,000 on health care in retirement, according to Fidelity. Receiving benefits before FRA could help those in need manage their finances better. Delaying receiving Social Security benefits directly results in receiving more money. Orman is known to push waiting as long as possible to claim benefits. However, for Americans without sufficient savings or investments to cover their needs, claiming before may be wise. The lure of more cash is useless to people in need. 'Of course, if you need the income at 62 you are going to claim,' Orman wrote on her website. If you're 62 and need consistent income, delaying receiving it will likely only harm you. Taking Social Security benefits is a personal decision. Waiting until FRA to claim provides numerous benefits, but if you're in need before getting payouts, claiming early can be a welcome relief. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 These Cars May Seem Expensive, but They Rarely Need Repairs 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Suze Orman: 3 Pros and 2 Cons of Taking Social Security at 67 or 70
Yahoo
23-06-2025
- Business
- Yahoo
'You Generally Get A Lower Return With A Guaranteed Investment Certificate In Comparison To A Bond' – Suze Orman Shares Her Preference
When it comes to investing for income in retirement, many people are looking for safety. That often leads them to consider low-risk options like bonds or Guaranteed Investment Certificates — GICs. But according to Suze Orman, personal finance expert and host of the "Women & Money" podcast, not all fixed-income investments offer the same benefits. In a recent episode, Orman shared why she prefers bonds over GICs — and what investors, especially those approaching or in retirement, should understand before choosing between the two. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can A GIC is a savings product commonly offered by Canadian banks and financial institutions, which are available in the U.S as well. When you invest in a GIC, you're lending the bank your money for a set period — often one to five years. In return, you're promised a guaranteed interest rate and the full return of your original investment when the term ends. "You're essentially lending a bank or a financial institution money for a fixed period of time," Orman explained. The appeal is the safety. GICs are low-risk, and in Canada, they're generally insured up to $100,000. But that safety comes at a cost. Orman didn't mince words about the downside. "You generally get a lower return in comparison to a bond," she said. While the return is guaranteed, it's often less than what you could earn with other fixed-income investments. Trending: Maximize saving for your retirement and cut down on taxes: . Another limitation is liquidity. Most GICs lock in your funds until the end of the term. If you need to access your money early, you may face penalties or restrictions. "You usually don't get your interest rate until it matures," Orman said. "It's not like a bond that if interest rates go down, the value of the bond goes up, that you can easily cash out of." Orman prefers bonds for one key reason: flexibility. "You can buy and sell them any time you want," she said. Bonds may also offer higher interest rates than GICs, depending on market conditions and the type of bond. And there's potential for added value. If the value of the bond increases, investors could potentially sell the bond at a profit before maturity. However, it's worth noting that bonds do carry some risk. Their value can fluctuate with interest rate changes, and unlike GICs, they're not Orman acknowledged that the right choice depends on your goals. "If you like that your principal is protected, you like the guaranteed return... then just stick with your GICs," she said. For investors who prioritize security over growth, GICs might still be a solid choice. But for those looking for more flexibility and potentially higher returns, bonds could be worth a closer look. As always, it's a good idea to speak with a financial advisor before making changes to your portfolio — especially when planning for retirement income. Read Next: Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'You Generally Get A Lower Return With A Guaranteed Investment Certificate In Comparison To A Bond' – Suze Orman Shares Her Preference originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Miami Herald
19-06-2025
- Business
- Miami Herald
Suze Orman sends surprising message on retirement, IRAs, 401(k)s
As Americans look ahead to retirement, one pressing issue often looms large: Will I have enough money to make it all work? Renowned personal finance expert and media figure Suze Orman offers clear, straightforward advice on navigating 401(k)s and Roth IRAs - tools she believes are key to a successful retirement strategy. Don't miss the move: Subscribe to TheStreet's free daily newsletter Orman strongly urges employees to take full advantage of their workplace 401(k) programs, particularly when an employer match is on the table. That match, she notes, is essentially "free money" that shouldn't go untapped. Her guidance: aim to contribute between 10% and 15% of your earnings to a 401(k), adjusting for your age and financial situation. If your plan includes a Roth 401(k), Orman says to seriously consider it, as it provides the potential for tax-free growth over time. She also highlights the power of Roth IRAs, which allow retirees to withdraw funds without facing taxes - making them a valuable piece of the retirement puzzle. Related: Jean Chatzky sends strong message to Americans on Social Security And there's one consistent theme in her messaging: start as early as you can. By doing so, you allow compound interest to work in your favor, helping you not only stay on track but possibly surpass your long-term savings goals. To Orman, retirement planning isn't merely about squirreling money away - it's about making intentional, wise investment choices that protect your wealth and help it grow. Orman calls attention to a recent report that explains a surprising outcome many people discover as they find ways to increase their retirement income beyond Social Security monthly paychecks and income from 401(k)s and IRAs. "I hope each of you does it on your terms, according to your plan," Orman wrote in a June 19 email newsletter. "But I hope your plan also considers the possibility that things don't always go according to plan." The 2025 Employee Benefit Research Institute's annual Retirement Confidence Survey highlights three ways in which well-intentioned retirement planning assumptions often don't pan out as expected. Working for pay in retirement. According to this year's findings, 75% of current workers anticipate continuing to earn income after they retire. Yet the actual numbers tell a different story - only 30% of retirees say they're currently bringing in a paycheck. Early retirement on your own terms. Roughly two out of every three individuals who said they retired sooner than they expected admitted the decision wasn't up to them. Around 30% were let go because of layoffs or company restructuring, while another 30% cited health issues or disabilities as the reason for leaving the workforce. A portion also retired early to provide care for a partner or family member in need. More on retirement: Dave Ramsey offers urgent thoughts about MedicareJean Chatzky shares major statement on Social SecurityTony Robbins has blunt words on IRAs,401(k)s Retirement as a gentle glide. Fifty percent of workers surveyed said they hope to ease into retirement by slowly cutting back on their hours instead of stepping away from full-time work all at once. But the experience of most retirees tells a different story - almost 75% said they had no such gradual shift. Instead, they stopped working suddenly, going from their last day on the job straight into full retirement practically overnight. Related: Tony Robbins sends strong message to Americans on 401(k)s, IRAs Orman encourages people to factor uncertainty into their retirement planning, especially as they calculate income they expect to receive from the 401(k) plans and IRAs they have been contributing to doing their working years. She advises people to clearly outline their expectations - when they hope to retire, how they envision that transition, and how much income they anticipate earning from paid work during retirement. Then, for each assumption, she suggests confronting the possibility that things may not unfold as imagined. She stresses that while future events such as layoffs or health issues can't be predicted or controlled, what people can do is take action now. By increasing savings today, they can create a financial cushion that offers more flexibility if life takes an unexpected turn. "It is fantastic to make plans and to work toward those plans," Orman wrote. "But the best plans are stress-tested to make sure they have a high probability of success, no matter what curveballs come your way." Related: Dave Ramsey sends strong message to Americans on Medicare The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
17-06-2025
- Health
- Yahoo
$25,000 Monthly Care Costs? Suze Orman Shows How Long-Term Care Insurance Can Protect Your Savings
Long-term care isn't just something to think about in your 80s. As Suze Orman points out in her blog, planning ahead — especially in your 50s or 60s — could make the difference between financial stability and burning through your retirement savings if the unexpected happens. Here's why Orman says long-term care insurance deserves your attention now. Needing long-term care might not mean living in a nursing home. In fact, less than 15% of long-term care happens in those facilities, according to Orman's blog. Most people receive care at home or in assisted living, which still comes with a hefty price tag — often between $5,000 and $8,000 per month. And in more intensive situations, monthly care can reach $25,000. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to If care lasts several years — the average is 3.8 years for men and 4.7 years for women — those costs can easily add up to hundreds of thousands of dollars. Alzheimer's, strokes, and other chronic conditions can push that timeline even longer. Medicare only helps in the first three months after a hospitalization. After that, you're on your own — unless you have long-term care insurance, or you qualify for Medicaid by spending down nearly all your assets. Orman explains that LTC insurance kicks in when you need help with at least two of six basic daily activities — such as bathing or eating — for 90 days or more, or if you have a serious cognitive impairment. Trending: Invest where it hurts — and help millions heal:. There are two main types of policies she lists: Traditional LTC Insurance: This works much like health insurance — you pay a premium, and if you never need care, the money helps cover others' claims. Premiums can increase over time, unless you purchase a plan with guaranteed pricing. These plans may offer inflation protection and can be more affordable if you buy early. Hybrid or Linked-Benefit Policies: These combine life insurance or annuities with long-term care coverage. If you never need care, your family still receives a death benefit. Premiums are usually guaranteed and require a larger upfront payment — often $100,000 or more. Some allow for flexible payments over time. Several hybrid plans even offer 100% cash benefits, so you can choose your own caregivers, including family members. If you have health issues that prevent you from qualifying for standard LTC insurance, there are still options. Orman shares that fixed index annuities with long-term care riders may offer increased payouts if you need care later — sometimes double your monthly income for up to five years. These options typically have easier health warned that while many state governments are implementing programs to assist with LTC, don't assume that it will provide everything you need. She listed Washington State as an example. They launched a public LTC program in 2023, funded by a payroll tax. But the lifetime benefit caps out at just $36,500 — less than six months of care in many places. Other states like California, New York and Minnesota are exploring similar programs, but none are expected to offer full financial protection. Orman urges individuals — especially those nearing or in retirement — to explore their options now. She emphasizes that even a modest LTC policy can make a big difference, covering part of the cost and preserving more of your retirement nest egg. As care costs rise, having a plan in place may give you and your family peace of mind — and keep your financial future intact. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article $25,000 Monthly Care Costs? Suze Orman Shows How Long-Term Care Insurance Can Protect Your Savings originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Miami Herald
14-06-2025
- Business
- Miami Herald
Suze Orman warns Americans on sudden Social Security problem
American workers recognize that Social Security will be an important source of financial assistance for their everyday expenses during retirement. Bestselling author and former CNBC personal finance editor Suze Orman often highlights the necessity of grasping key aspects of retirement planning to build a stable future. She now issues a significant warning to Americans about Social Security, citing a recent development that poses a serious risk to many retirees' monthly income. Don't miss the move: Subscribe to TheStreet's free daily newsletter Orman has always stressed the importance of timing when it comes to Social Security benefits. Although American workers have the option to start collecting at age 62, she explains that those who do so then end up significantly reducing their monthly payments. To receive their full benefits, individuals must wait until their designated retirement age, which is 67 for those born in 1960 or later. Related: Jean Chatzky sends strong message to Americans on Social Security Orman strongly encourages delaying benefits even further, up to age 70, for those who can afford to do so. She argues that waiting allows payments to grow, ensuring a more substantial financial cushion during retirement. She cautions that claiming benefits too early is a costly mistake, as it prevents individuals from maximizing their monthly income. But now, Orman has a new warning on Social Security - and this one involves a change in government policy regarding repayment of student loans. Getty During the past five years, the federal government has refrained from pursuing repayment from individuals who have defaulted on federal student loans (including reduced Social Security checks). However, that policy shifted in early May when officials announced the reinstatement of various methods to recover outstanding college debt through the Treasury Offset Program. "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," said U.S. Secretary of Education Linda McMahon in an April 12 Department of Education statement. Starting in May, the government began intercepting federal tax refunds from borrowers in default, applying those funds toward their unpaid loan balances. More on retirement: Jean Chatzky shares major statement about Social SecurityShark Tank's Kevin O'Leary has blunt words on 401(k) plansDave Ramsey strongly cautions U.S. workers on Social Security "Beginning in June, Social Security benefits can be seized to offset college debt in default," wrote Orman in an email newsletter, also noting that this may be something parents who borrowed under the federal PLUS loan program ought to be concerned about. "Later this summer, the government has announced it plans to send out notices that it will also garnish wages," Orman added. "Up to 15% of after-tax income can be seized to pay down defaulted student loans." Orman explains that approximately five million borrowers are already in default, meaning they are directly affected by the government's decision to resume collection efforts. She also highlights the fact that another four million borrowers are struggling to keep up with payments and are approaching the 270-day mark of non-payment - the point at which their loans officially transition from delinquent to default. Orman stresses the urgency of the situation, warning that those on the brink of default could soon face serious financial consequences if they don't take action. Related: Tony Robbins sends strong message to Americans on 401(k)s, IRAs In order to avoid reduced Social Security benefits, Orman advises borrowers to first verify their payment status to stay informed about their federal student loans. She explains that every borrower has a Federal Student Aid ID number, which they can use to access their account on the Federal Student Aid website. Through this dashboard, they can review their payment history, check for any outstanding balances, and identify their loan servicer - the company responsible for handling their loan repayments on behalf of the government. Orman emphasizes the importance of keeping their contact information updated with the loan servicer. "I hope everyone with student debt will stand in their truth and look into their status and make it a priority to restart payments with a loan repayment plan," Orman wrote. "Ignoring that this is happening or thinking you can hide from the government debt collectors will only make things worse." Related: Scott Galloway bluntly predicts major change for Netflix The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
