Overcoming Debt with Openness
In a recent episode of Suze Orman’s “Women & Money” podcast, a listener named Leslie shared her struggle with a sudden onset of credit card debt after moving across the country. Leslie, who was initially debt-free and financially stable, found herself overwhelmed by a $10,000 debt. Orman emphasized that the real barrier to overcoming debt is often not the debt itself but the shame associated with it. She advocates for confronting and vocalizing one’s debt as the first step toward resolution, suggesting that openness can transform one’s approach to financial recovery.
Navigating Survivor Benefits in Social Security
Another listener, Kathy, inquired about accessing survivor benefits from Social Security due to her late husband, with concerns about how it might affect her own benefits upon retirement. Orman clarified that while taking the survivor benefits before reaching the age of 67 could reduce the benefits by 28.5%, she would not lose out entirely and would receive full benefits once she reached the full retirement age. This advice highlights the importance of understanding the nuances of Social Security benefits to optimize financial planning.
Strategic Investment of Inheritance
Lastly, Lisa, who recently inherited $55,000, was unsure whether to invest in a slightly risky money market account or opt for a safer 18-month CD with a higher interest rate. Orman recommended diversifying the investment into different term CDs (18, 20, and 24 months) to balance security and liquidity. This strategy reflects Orman’s consistent advice on prudently managing large sums to maximize returns while minimizing risks, ensuring financial stability and growth.