1 00:00:28,459 --> 00:00:34,028 Suze: July 27th, 2025. Welcome everybody to the Women and Money podcast, 2 00:00:34,319 --> 00:00:38,639 Suze: as well as everybody smart enough to listen. Suze O here, 3 00:00:39,020 --> 00:00:43,528 Suze: and today is Suze School, and this podcast, like many 4 00:00:43,529 --> 00:00:46,339 Suze: of the Suze School podcasts, this is where you are 5 00:00:46,340 --> 00:00:50,180 Suze: going to want to have paper and pencil or your 6 00:00:50,180 --> 00:00:54,299 Suze: Suze notebook to write down what I'm going to say. 7 00:00:54,340 --> 00:00:56,810 Suze: But before I begin, Josh. 8 00:00:57,450 --> 00:01:01,080 Suze: It is your birthday today, Josh, and KT and I 9 00:01:01,080 --> 00:01:06,599 Suze: wish you the happiest, happiest birthday of all. Josh is 10 00:01:06,599 --> 00:01:10,899 Suze: Savannah Buffett's husband. We love him so much, I can't 11 00:01:10,900 --> 00:01:13,760 Suze: tell you. So Josh, I hope we get to see 12 00:01:13,760 --> 00:01:19,519 Suze: you sooner than later. All right, everybody, let's, before I 13 00:01:19,519 --> 00:01:23,000 Suze: even begin what this Suzz school is about, I just 14 00:01:23,000 --> 00:01:25,599 Suze: want to run through what I really think is happening 15 00:01:25,599 --> 00:01:26,879 Suze: with the stock market. 16 00:01:27,309 --> 00:01:30,279 Suze: I've told you that I do think August and September 17 00:01:30,620 --> 00:01:33,980 Suze: very well could be rough months, and if they are 18 00:01:33,980 --> 00:01:37,339 Suze: rough months and certain stocks go down or many stocks 19 00:01:37,339 --> 00:01:40,180 Suze: go down, these will be the perfect two months for 20 00:01:40,180 --> 00:01:43,518 Suze: you to dollar cost average or go a little bit 21 00:01:43,519 --> 00:01:46,300 Suze: heavier in the market. And why is that? 22 00:01:46,800 --> 00:01:51,160 Suze: 'Cause I still think the Standard and Poor's 500 is 23 00:01:51,160 --> 00:01:57,239 Suze: going to end this year between 6700 and 7400, so 24 00:01:57,239 --> 00:02:00,480 Suze: it's got a nice way to go. I just want 25 00:02:00,480 --> 00:02:04,269 Suze: to say, you know, this market for many, many reasons. 26 00:02:04,580 --> 00:02:07,739 Suze: It reminds me of the years, were you even born then? 27 00:02:08,160 --> 00:02:12,279 Suze: Between 1995 and the year 2000. Do all of you 28 00:02:12,279 --> 00:02:13,829 Suze: remember those years? 29 00:02:14,559 --> 00:02:17,839 Suze: Where there was such S&P gains, it wasn't even funny. 30 00:02:17,880 --> 00:02:23,669 Suze: It was, I think, 34% one year, 20%, 31%, 27%, 19%, 31 00:02:23,679 --> 00:02:28,559 Suze: something like that. And this time right here and right 32 00:02:28,559 --> 00:02:35,910 Suze: now unless something bizarre happens overall reminds me of those times. 33 00:02:36,199 --> 00:02:39,198 Suze: There are certain sectors that I love a lot. I 34 00:02:39,199 --> 00:02:41,320 Suze: love all the stocks that I've mentioned to you in 35 00:02:41,320 --> 00:02:41,960 Suze: the past. 36 00:02:42,460 --> 00:02:45,949 Suze: But I can't remember if I recommended or I talked 37 00:02:45,949 --> 00:02:50,190 Suze: about the utility sector, fabulous sector that you might want 38 00:02:50,190 --> 00:02:55,019 Suze: to look investing in symbol is XLU for the ETF. 39 00:02:55,229 --> 00:03:01,979 Suze: It pays about a 2.79% yield, something just to look at. Also, 40 00:03:02,350 --> 00:03:06,309 Suze: the XRT, the retail ETF. 41 00:03:07,339 --> 00:03:13,500 Suze: It's interesting because it surged 7.1% this last month. 42 00:03:14,220 --> 00:03:18,160 Suze: I find that very interesting. And the other thing I'm 43 00:03:18,160 --> 00:03:24,038 Suze: looking at that I'm finding interesting are REITs, and the 44 00:03:24,038 --> 00:03:28,279 Suze: one that I'm looking at, the ETF is IYR. They 45 00:03:28,279 --> 00:03:32,520 Suze: pay a dividend of about 2.49%. Remember, you really want 46 00:03:32,520 --> 00:03:37,479 Suze: to own REITs in your retirement accounts because most of 47 00:03:37,479 --> 00:03:41,279 Suze: the time the dividends there almost all the time, 48 00:03:41,889 --> 00:03:47,410 Suze: are non-qualified dividends are just something to think about, but 49 00:03:47,410 --> 00:03:51,809 Suze: as I'm looking at all of these things, all of 50 00:03:51,809 --> 00:03:56,130 Suze: these things are saying to me yields are absolutely going 51 00:03:56,130 --> 00:03:57,449 Suze: to go lower. 52 00:03:58,509 --> 00:04:00,339 Suze: I don't know when that will happen, but you can 53 00:04:00,339 --> 00:04:03,449 Suze: just kind of feel it as you're looking at these things, 54 00:04:03,779 --> 00:04:08,330 Suze: so just something for you to think about. Also, I 55 00:04:08,330 --> 00:04:11,250 Suze: just have to say Berkshire Hathaway. 56 00:04:12,029 --> 00:04:15,779 Suze: Its symbol is BRK-B. 57 00:04:16,640 --> 00:04:20,399 Suze: A pure value play, something you should look at as 58 00:04:20,399 --> 00:04:24,799 Suze: well as the high yield corporate bond ETF that I've 59 00:04:24,799 --> 00:04:27,140 Suze: talked about, the HYGs. 60 00:04:28,190 --> 00:04:33,109 Suze: Might want to look at those yield is 5.77%, and 61 00:04:33,109 --> 00:04:36,179 Suze: of course, as you know, I still like I bit 62 00:04:36,178 --> 00:04:41,219 Suze: a lot, the ETF for Bitcoin for those of you 63 00:04:41,750 --> 00:04:46,750 Suze: who want to enter that area. All right, so with 64 00:04:46,750 --> 00:04:51,709 Suze: that said, and with interest rates possibly going lower if 65 00:04:51,709 --> 00:04:54,510 Suze: everything is going to work out according to plan, which 66 00:04:55,230 --> 00:04:57,350 Suze: sometimes it does and sometimes it doesn't. 67 00:04:57,970 --> 00:05:02,839 Suze: You should be taking advantage of the one year certificate 68 00:05:02,839 --> 00:05:10,599 Suze: at Alliant Credit Union 4.3% APY for amounts under $75,000 69 00:05:10,600 --> 00:05:12,890 Suze: for amounts of $75,000 or more. 70 00:05:13,303 --> 00:05:20,665 Suze: It's 4.35 APY still a great yield. Therefore, go to 71 00:05:20,665 --> 00:05:26,904 Suze: My Alliant A L L I A N T.com and 72 00:05:26,904 --> 00:05:31,464 Suze: check it out. All right, you have requested this over 73 00:05:31,464 --> 00:05:34,825 Suze: and over and over again, so I'm going to give 74 00:05:34,825 --> 00:05:39,825 Suze: it to you. You want to know about the big 75 00:05:39,825 --> 00:05:41,065 Suze: beautiful bill. 76 00:05:41,829 --> 00:05:44,789 Suze: What do I need to know about it, Suze? What 77 00:05:44,790 --> 00:05:47,149 Suze: should I do? What shouldn't I do now? There are 78 00:05:47,149 --> 00:05:51,670 Suze: so many things in this bill, but the truth of 79 00:05:51,670 --> 00:05:55,868 Suze: the matter is, the majority of people that listen, and 80 00:05:55,869 --> 00:05:57,709 Suze: I'm so proud of this, I have to tell all 81 00:05:57,709 --> 00:06:01,589 Suze: of you that listen to the Women and Money podcast 82 00:06:01,589 --> 00:06:06,390 Suze: and everybody smart enough to listen, are really close to 83 00:06:06,390 --> 00:06:09,760 Suze: or already receiving Social Security. 84 00:06:10,238 --> 00:06:15,159 Suze: So I want to tackle on this particular Suze school 85 00:06:15,428 --> 00:06:20,269 Suze: the part of the Big Beautiful Bill, the BBB, that 86 00:06:20,269 --> 00:06:26,459 Suze: deals with Social Security. All right, everybody, so if you're younger, 87 00:06:26,670 --> 00:06:28,829 Suze: you should take notes and share it with your parents 88 00:06:28,829 --> 00:06:32,869 Suze: if they're older or your grandparents, but you need to 89 00:06:32,869 --> 00:06:34,309 Suze: know these things now. 90 00:06:35,440 --> 00:06:38,690 Suze: What you need to understand is that this new law. 91 00:06:39,540 --> 00:06:44,950 Suze: Makes it permanent that the lower federal income tax rates 92 00:06:45,209 --> 00:06:49,369 Suze: that have been in place since 2017 but were scheduled 93 00:06:49,369 --> 00:06:52,570 Suze: to expire at the end of this year. 94 00:06:53,399 --> 00:06:55,160 Suze: It makes them permanent. 95 00:06:56,320 --> 00:06:59,100 Suze: I think that's kind of great if you ask me. 96 00:06:59,880 --> 00:07:02,170 Suze: The higher standard deduction. 97 00:07:02,760 --> 00:07:07,350 Suze: That was also in place since 2017. The law was 98 00:07:07,350 --> 00:07:18,029 Suze: made permanent for 2025. The standard deduction is $15,750 for 99 00:07:18,029 --> 00:07:25,709 Suze: single tax filers, right, and $31,500 for married couples filing 100 00:07:25,709 --> 00:07:27,750 Suze: a joint tax return. 101 00:07:28,570 --> 00:07:33,010 Suze: So the standard deduction, however, now is also going to 102 00:07:33,010 --> 00:07:38,809 Suze: be adjusted for inflation annually. I love that. I have 103 00:07:38,809 --> 00:07:39,600 Suze: to tell you. 104 00:07:40,209 --> 00:07:44,100 Suze: Now, in addition to those rules that impact us all, 105 00:07:44,149 --> 00:07:46,950 Suze: like I said a second ago, there are so many 106 00:07:46,950 --> 00:07:50,339 Suze: more changes that will impact all of you, all right, 107 00:07:50,549 --> 00:07:54,140 Suze: so there's too much to cover in just one podcast. 108 00:07:54,350 --> 00:07:59,309 Suze: But over the next podcasts or so, I'll get to 109 00:07:59,309 --> 00:08:04,109 Suze: all of them. So again, we're going to start with 110 00:08:04,109 --> 00:08:08,420 Suze: Social Security. Here's what you need to get about this. 111 00:08:08,970 --> 00:08:14,359 Suze: When Social Security started, everybody in 1935, do you know 112 00:08:14,730 --> 00:08:19,329 Suze: that it was completely tax free? But in 1983, I'll 113 00:08:19,329 --> 00:08:22,458 Suze: never forget this because I was a stockbroker at the time. 114 00:08:22,809 --> 00:08:28,890 Suze: In 1983, Congress decided that some people should pay taxes 115 00:08:28,890 --> 00:08:32,449 Suze: on up to 50% of their benefit. 116 00:08:33,479 --> 00:08:40,919 Suze: But 10 years later in 1993, they raised it to 85%, 117 00:08:41,130 --> 00:08:42,880 Suze: but want to know what the kicker is. 118 00:08:43,789 --> 00:08:48,179 Suze: That the income limits that determine whether your benefit gets 119 00:08:48,179 --> 00:08:49,140 Suze: taxed or not. 120 00:08:50,210 --> 00:08:55,890 Suze: They haven't been adjusted for inflation since 1993. 121 00:08:56,599 --> 00:08:59,520 Suze: So more and more of you have been getting hit 122 00:08:59,520 --> 00:09:03,690 Suze: with taxes on your Social Security, like even if you're 123 00:09:03,690 --> 00:09:07,320 Suze: just making a little bit from a pension, a CD, 124 00:09:07,369 --> 00:09:13,640 Suze: or part-time work, the old limits, which were 25,000 for singles, 125 00:09:13,729 --> 00:09:16,010 Suze: 32,000 for married couples. 126 00:09:16,659 --> 00:09:20,010 Suze: Guess what? If you went over those amounts, you could 127 00:09:20,010 --> 00:09:24,530 Suze: be taxed on up to 85% of your Social Security, 128 00:09:24,739 --> 00:09:31,609 Suze: and those amounts have not changed. Now here's what's important 129 00:09:32,020 --> 00:09:35,140 Suze: before we talk about what has changed, I want to 130 00:09:35,140 --> 00:09:38,260 Suze: talk about what has not changed. 131 00:09:39,210 --> 00:09:40,159 Suze: Listen closely. 132 00:09:40,900 --> 00:09:47,760 Suze: The rules on taxation of Social Security benefits were not changed. 133 00:09:47,969 --> 00:09:53,369 Suze: Do you hear me? No changes to Social Security. But 134 00:09:53,369 --> 00:09:58,330 Suze: what did change? Beginning this year, Anyone who is at 135 00:09:58,330 --> 00:10:03,570 Suze: least 65 years of age or older may be able 136 00:10:03,570 --> 00:10:08,130 Suze: to claim a $6,000 income deduction. 137 00:10:08,940 --> 00:10:12,039 Suze: You are eligible for it even if you have yet 138 00:10:12,039 --> 00:10:16,760 Suze: to start claiming Social Security. There is no link between 139 00:10:16,760 --> 00:10:20,659 Suze: the new tax break and Social Security. So many of 140 00:10:20,659 --> 00:10:22,890 Suze: you say to me, but Social Security isn't going to 141 00:10:22,890 --> 00:10:27,619 Suze: be taxed anymore. They're not taxing Social Security. This bill 142 00:10:27,619 --> 00:10:33,890 Suze: says nothing about the actual taxation of Social Security. It 143 00:10:33,890 --> 00:10:36,250 Suze: talks about a deduction 144 00:10:37,080 --> 00:10:42,619 Suze: for you off of your income, so here are the rules. 145 00:10:43,369 --> 00:10:47,609 Suze: There's this new $6000 per person deduction. 146 00:10:48,500 --> 00:10:53,569 Suze: And that deduction is in addition to the already existing 147 00:10:53,890 --> 00:10:59,369 Suze: deduction available to anyone at least 65 or older. So 148 00:10:59,369 --> 00:11:03,119 Suze: are you all aware that if you are 65 or older, 149 00:11:03,369 --> 00:11:09,039 Suze: the existing deduction is $2,000 for single filers? 150 00:11:09,369 --> 00:11:15,830 Suze: And $1,600 each for married couples filing a joint tax return. 151 00:11:16,080 --> 00:11:21,359 Suze: Now those deductions were already in place, the $21,600. They've 152 00:11:21,359 --> 00:11:24,479 Suze: been there, but in addition to that. 153 00:11:25,179 --> 00:11:30,940 Suze: There is a $6,000 per person deduction on top of that, 154 00:11:31,280 --> 00:11:34,959 Suze: so you can claim these deductions whether you take the 155 00:11:34,960 --> 00:11:39,520 Suze: standard deduction or file an itemized tax return. 156 00:11:40,320 --> 00:11:46,419 Suze: To claim the full $6,000 deduction or $12,000 total for 157 00:11:46,419 --> 00:11:52,169 Suze: married couples if both are at least 65 years of age, 158 00:11:52,500 --> 00:11:54,849 Suze: your modified gross income. 159 00:11:55,489 --> 00:12:02,919 Suze: Must be below $75,000 for a single tax filer and 160 00:12:02,919 --> 00:12:09,960 Suze: $150,000 for married couples filing a joint tax return. So again, 161 00:12:10,239 --> 00:12:16,880 Suze: remember the new $6,000 deduction is for taxpayers aged 65 162 00:12:16,880 --> 00:12:17,919 Suze: and over. 163 00:12:18,549 --> 00:12:22,380 Suze: And it begins to phase out. Now how does it 164 00:12:22,380 --> 00:12:27,299 Suze: phase out? The deduction is reduced by 6 cents for 165 00:12:27,299 --> 00:12:32,250 Suze: every dollar over these thresholds, and it's fully phased out 166 00:12:32,539 --> 00:12:39,429 Suze: if you're making $175,000 MAGI for a single and $250,000 167 00:12:39,429 --> 00:12:43,900 Suze: for joint filers. So you need to remember that. So 168 00:12:43,900 --> 00:12:47,099 Suze: after those last two amounts, $175,000 and $250,000. 169 00:12:47,580 --> 00:12:54,200 Suze: The deduction is entirely gone, just that simple. Now, maybe 170 00:12:54,200 --> 00:12:58,150 Suze: you want an example of this. So let's just say 171 00:12:58,440 --> 00:13:01,869 Suze: you made $100,000 as a single. 172 00:13:02,500 --> 00:13:08,349 Suze: And the phase out started at $75,000 remember, so you 173 00:13:08,349 --> 00:13:12,189 Suze: are $25,000 over. 174 00:13:13,059 --> 00:13:21,270 Suze: That limit what you would do is simply times 25,000 175 00:13:21,320 --> 00:13:28,880 Suze: times 0.06, which is a total reduction of $1,500. So 176 00:13:28,880 --> 00:13:37,080 Suze: the deduction after the reduction is only $4,500. That's it. 177 00:13:37,619 --> 00:13:43,330 Suze: So a single filer aged 65 with a $100,000 MAGI 178 00:13:43,330 --> 00:13:50,460 Suze: would receive a $4500 deduction rather than $6,000. Does that 179 00:13:50,460 --> 00:13:53,460 Suze: make sense to all of you? Now I tell you 180 00:13:53,460 --> 00:13:57,159 Suze: that so that you can figure it out for yourself 181 00:13:57,159 --> 00:13:59,299 Suze: how much of this deduction. 182 00:13:59,960 --> 00:14:04,549 Suze: That you're being allowed you actually get to take if 183 00:14:04,549 --> 00:14:08,949 Suze: any whatsoever, but for now what you really need to 184 00:14:08,950 --> 00:14:14,780 Suze: know is that this additional deduction, the $6000 per person, 185 00:14:15,429 --> 00:14:17,299 Suze: is available for. 186 00:14:18,250 --> 00:14:26,890 Suze: 2025, 2026, 2027, and 2028 tax years. 187 00:14:27,849 --> 00:14:33,400 Suze: Under the current law, it will no longer be available 188 00:14:33,909 --> 00:14:39,489 Suze: beginning in the 2029 tax year. So you got to 189 00:14:39,489 --> 00:14:43,609 Suze: note that this is a temporary tax break, and it 190 00:14:43,609 --> 00:14:48,130 Suze: is only for the new $6,000 deduction once again, the 191 00:14:48,130 --> 00:14:52,809 Suze: $2,000 and $1,600 per married person deduction for people at 192 00:14:52,809 --> 00:14:56,760 Suze: least 65, that is permanent. 193 00:14:57,630 --> 00:15:02,159 Suze: So let's just take a look at who really gets 194 00:15:02,159 --> 00:15:08,840 Suze: the biggest benefit from this, OK, because it's not everybody again, 195 00:15:09,250 --> 00:15:12,330 Suze: everybody thinks that Social Security itself is not going to 196 00:15:12,330 --> 00:15:16,210 Suze: be taxable anymore. Again, that is not true. That is 197 00:15:16,210 --> 00:15:20,000 Suze: not true. That is not true. This is all about 198 00:15:20,000 --> 00:15:24,289 Suze: the deduction that's only good till 2029, by the way. 199 00:15:24,799 --> 00:15:28,750 Suze: That's when it reverts back. Now here is what is 200 00:15:28,750 --> 00:15:33,979 Suze: also important. Remember, you may decide that you want to 201 00:15:33,979 --> 00:15:39,539 Suze: make some conversions from a traditional IRA to a Roth IRA. 202 00:15:39,789 --> 00:15:44,349 Suze: If you qualify income wise for these deductions, you have 203 00:15:44,349 --> 00:15:47,950 Suze: to watch your income. So if you intend to make 204 00:15:47,950 --> 00:15:53,400 Suze: any conversions in 2025, 2026, 2027, or 2028. 205 00:15:53,859 --> 00:15:58,090 Suze: And you will be at least 65. I need you 206 00:15:58,090 --> 00:16:02,280 Suze: to be aware of how it could impact your eligibility 207 00:16:02,690 --> 00:16:07,919 Suze: for this $6,000 or $12,000 deduction in each of those years. 208 00:16:08,169 --> 00:16:12,010 Suze: If you have yet to turn 65 and you want 209 00:16:12,010 --> 00:16:16,010 Suze: to convert large sums, it might make sense to convert 210 00:16:16,010 --> 00:16:17,090 Suze: more now. 211 00:16:17,969 --> 00:16:21,109 Suze: So you will also be able to claim the deduction 212 00:16:21,109 --> 00:16:24,130 Suze: once you turn 65 if 213 00:16:24,369 --> 00:16:28,989 Suze: you have already started to claim your Social Security or 214 00:16:29,260 --> 00:16:34,679 Suze: that other $6,000 deduction may apply to something else in 215 00:16:34,679 --> 00:16:40,280 Suze: your finances. So that's why it's important for all of 216 00:16:40,280 --> 00:16:44,559 Suze: you to seriously sit down with a trusted tax pro 217 00:16:44,559 --> 00:16:48,359 Suze: to consider what your options are, and is it a 218 00:16:48,359 --> 00:16:50,799 Suze: smart move or not. 219 00:16:51,179 --> 00:16:55,070 Suze: That's what all of you need to know about Social Security, 220 00:16:55,280 --> 00:16:59,559 Suze: and I hope I did a good enough job explaining it. 221 00:17:00,460 --> 00:17:07,420 Suze: All right, everybody, again today at midnight Pacific Coast time. 222 00:17:08,319 --> 00:17:11,910 Suze: Is the last time you're going to be able to get. 223 00:17:12,569 --> 00:17:18,429 Suze: The must-have documents for $73. So do not wait. Go 224 00:17:18,430 --> 00:17:24,228 Suze: directly to musthavedocs.com/birthday. A lot of you, by the way, 225 00:17:24,349 --> 00:17:28,869 Suze: are just going to must-have docs slash birthday, and you're 226 00:17:28,869 --> 00:17:32,859 Suze: writing me going, but Suze, it's not there. It's must 227 00:17:32,859 --> 00:17:40,109 Suze: have docs docs.com/birthday. 228 00:17:40,500 --> 00:17:44,400 Suze: And then you can get $99 which is what it 229 00:17:44,400 --> 00:17:47,310 Suze: normally sells for, and it's gonna be going up shortly. 230 00:17:47,739 --> 00:17:53,459 Suze: You can get it for $73 but that offer ends 231 00:17:53,719 --> 00:17:58,520 Suze: in just a few hours later tonight. All right, that 232 00:17:58,520 --> 00:18:03,109 Suze: was your Suze School for today. So until next week, 233 00:18:03,239 --> 00:18:06,399 Suze: now Miss Travis will join us. There's only one thing 234 00:18:06,400 --> 00:18:09,430 Suze: that I want you to remember, and it's this: This 235 00:18:09,430 --> 00:18:10,669 Suze: is the year 236 00:18:11,300 --> 00:18:15,979 Suze: for your money to make more money, it is. I 237 00:18:15,979 --> 00:18:18,780 Suze: told you at the beginning of this podcast what I 238 00:18:18,780 --> 00:18:20,609 Suze: think is going to happen. I don't know if it 239 00:18:20,609 --> 00:18:24,780 Suze: is or not, but this is the year that your 240 00:18:24,780 --> 00:18:28,300 Suze: money can make more money, but you have to know 241 00:18:28,300 --> 00:18:30,239 Suze: what to do with it. You have to be willing 242 00:18:30,239 --> 00:18:33,380 Suze: to do something with it, and you have to have 243 00:18:33,380 --> 00:18:37,219 Suze: faith in yourself that you have what it takes to 244 00:18:37,219 --> 00:18:37,659 Suze: do it. 245 00:18:38,170 --> 00:18:42,760 Suze: So until then, stay safe, stay healthy, and know that 246 00:18:42,760 --> 00:18:46,149 Suze: we love you so very, very much. Bye bye now.