July 27, 2025 • 19 mins
Since so many of you have written to Suze asking about the new “Big Beautiful Bill” and what it will mean for your money, today’s Suze School addresses one of the new law’s aspects: Social Security Benefits. Suze explains what is new, what stays the same and so much more.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Suze (00:28):
July 27th, 2025. Welcome everybody to the Women and Money podcast,
as well as everybody smart enough to listen. Suze O here,
and today is Suze School, and this podcast, like many
of the Suze School podcasts, this is where you are
going to want to have paper and pencil or your
(00:50):
Suze notebook to write down what I'm going to say.
But before I begin, Josh.
It is your birthday today, Josh, and KT and I
wish you the happiest, happiest birthday of all. Josh is
Savannah Buffett's husband. We love him so much, I can't
(01:10):
tell you. So Josh, I hope we get to see
you sooner than later. All right, everybody, let's, before I
even begin what this Suzz school is about, I just
want to run through what I really think is happening
with the stock market.
I've told you that I do think August and September
very well could be rough months, and if they are
(01:33):
rough months and certain stocks go down or many stocks
go down, these will be the perfect two months for
you to dollar cost average or go a little bit
heavier in the market. And why is that?
'Cause I still think the Standard and Poor's 500 is
going to end this year between 6700 and 7400, so
(01:57):
it's got a nice way to go. I just want
to say, you know, this market for many, many reasons.
It reminds me of the years, were you even born then?
Between 1995 and the year 2000. Do all of you
remember those years?
Where there was such S&P gains, it wasn't even funny.
(02:17):
It was, I think, 34% one year, 20%, 31%, 27%, 19%,
something like that. And this time right here and right
now unless something bizarre happens overall reminds me of those times.
There are certain sectors that I love a lot. I
(02:39):
love all the stocks that I've mentioned to you in
the past.
But I can't remember if I recommended or I talked
about the utility sector, fabulous sector that you might want
to look investing in symbol is XLU for the ETF.
It pays about a 2.79% yield, something just to look at. Also,
(03:02):
the XRT, the retail ETF.
It's interesting because it surged 7.1% this last month.
I find that very interesting. And the other thing I'm
looking at that I'm finding interesting are REITs, and the
(03:24):
one that I'm looking at, the ETF is IYR. They
pay a dividend of about 2.49%. Remember, you really want
to own REITs in your retirement accounts because most of
the time the dividends there almost all the time,
are non-qualified dividends are just something to think about, but
(03:47):
as I'm looking at all of these things, all of
these things are saying to me yields are absolutely going
to go lower.
I don't know when that will happen, but you can
just kind of feel it as you're looking at these things,
so just something for you to think about. Also, I
(04:08):
just have to say Berkshire Hathaway.
Its symbol is BRK-B.
A pure value play, something you should look at as
well as the high yield corporate bond ETF that I've
talked about, the HYGs.
Might want to look at those yield is 5.77%, and
(04:33):
of course, as you know, I still like I bit
a lot, the ETF for Bitcoin for those of you
who want to enter that area. All right, so with
that said, and with interest rates possibly going lower if
everything is going to work out according to plan, which
(04:55):
sometimes it does and sometimes it doesn't.
You should be taking advantage of the one year certificate
at Alliant Credit Union 4.3% APY for amounts under $75,000
for amounts of $75,000 or more.
It's 4.35 APY still a great yield. Therefore, go to
(05:20):
My Alliant A L L I A N T.com and
check it out. All right, you have requested this over
and over and over again, so I'm going to give
it to you. You want to know about the big
beautiful bill.
(05:41):
What do I need to know about it, Suze? What
should I do? What shouldn't I do now? There are
so many things in this bill, but the truth of
the matter is, the majority of people that listen, and
I'm so proud of this, I have to tell all
of you that listen to the Women and Money podcast
and everybody smart enough to listen, are really close to
(06:06):
or already receiving Social Security.
So I want to tackle on this particular Suze school
the part of the Big Beautiful Bill, the BBB, that
deals with Social Security. All right, everybody, so if you're younger,
(06:26):
you should take notes and share it with your parents
if they're older or your grandparents, but you need to
know these things now.
What you need to understand is that this new law.
Makes it permanent that the lower federal income tax rates
that have been in place since 2017 but were scheduled
(06:49):
to expire at the end of this year.
It makes them permanent.
I think that's kind of great if you ask me.
The higher standard deduction.
That was also in place since 2017. The law was
made permanent for 2025. The standard deduction is $15,750 for
(07:18):
single tax filers, right, and $31,500 for married couples filing
a joint tax return.
So the standard deduction, however, now is also going to
be adjusted for inflation annually. I love that. I have
(07:38):
to tell you.
Now, in addition to those rules that impact us all,
like I said a second ago, there are so many
more changes that will impact all of you, all right,
so there's too much to cover in just one podcast.
But over the next podcasts or so, I'll get to
(07:59):
all of them. So again, we're going to start with
Social Security. Here's what you need to get about this.
When Social Security started, everybody in 1935, do you know
that it was completely tax free? But in 1983, I'll
(08:19):
never forget this because I was a stockbroker at the time.
In 1983, Congress decided that some people should pay taxes
on up to 50% of their benefit.
But 10 years later in 1993, they raised it to 85%,
(08:41):
but want to know what the kicker is.
That the income limits that determine whether your benefit gets
taxed or not.
They haven't been adjusted for inflation since 1993.
So more and more of you have been getting hit
with taxes on your Social Security, like even if you're
(09:03):
just making a little bit from a pension, a CD,
or part-time work, the old limits, which were 25,000 for singles,
32,000 for married couples.
Guess what? If you went over those amounts, you could
be taxed on up to 85% of your Social Security,
(09:24):
and those amounts have not changed. Now here's what's important
before we talk about what has changed, I want to
talk about what has not changed.
Listen closely.
The rules on taxation of Social Security benefits were not changed.
(09:47):
Do you hear me? No changes to Social Security. But
what did change? Beginning this year, Anyone who is at
least 65 years of age or older may be able
to claim a $6,000 income deduction.
(10:08):
You are eligible for it even if you have yet
to start claiming Social Security. There is no link between
the new tax break and Social Security. So many of
you say to me, but Social Security isn't going to
be taxed anymore. They're not taxing Social Security. This bill
says nothing about the actual taxation of Social Security. It
(10:33):
talks about a deduction
for you off of your income, so here are the rules.
There's this new $6000 per person deduction.
And that deduction is in addition to the already existing
deduction available to anyone at least 65 or older. So
(10:59):
are you all aware that if you are 65 or older,
the existing deduction is $2,000 for single filers?
And $1,600 each for married couples filing a joint tax return.
Now those deductions were already in place, the $21,600. They've
(11:21):
been there, but in addition to that.
There is a $6,000 per person deduction on top of that,
so you can claim these deductions whether you take the
standard deduction or file an itemized tax return.
To claim the full $6,000 deduction or $12,000 total for
(11:46):
married couples if both are at least 65 years of age,
your modified gross income.
Must be below $75,000 for a single tax filer and
$150,000 for married couples filing a joint tax return. So again,
(12:10):
remember the new $6,000 deduction is for taxpayers aged 65
and over.
And it begins to phase out. Now how does it
phase out? The deduction is reduced by 6 cents for
every dollar over these thresholds, and it's fully phased out
(12:32):
if you're making $175,000 MAGI for a single and $250,000
for joint filers. So you need to remember that. So
after those last two amounts, $175,000 and $250,000.
The deduction is entirely gone, just that simple. Now, maybe
(12:54):
you want an example of this. So let's just say
you made $100,000 as a single.
And the phase out started at $75,000 remember, so you
are $25,000 over.
That limit what you would do is simply times 25,000
(13:21):
times 0.06, which is a total reduction of $1,500. So
the deduction after the reduction is only $4,500. That's it.
So a single filer aged 65 with a $100,000 MAGI
(13:43):
would receive a $4500 deduction rather than $6,000. Does that
make sense to all of you? Now I tell you
that so that you can figure it out for yourself
how much of this deduction.
That you're being allowed you actually get to take if
(14:04):
any whatsoever, but for now what you really need to
know is that this additional deduction, the $6000 per person,
is available for.
2025, 2026, 2027, and 2028 tax years.
(14:27):
Under the current law, it will no longer be available
beginning in the 2029 tax year. So you got to
note that this is a temporary tax break, and it
is only for the new $6,000 deduction once again, the
(14:48):
$2,000 and $1,600 per married person deduction for people at
least 65, that is permanent.
So let's just take a look at who really gets
the biggest benefit from this, OK, because it's not everybody again,
(15:09):
everybody thinks that Social Security itself is not going to
be taxable anymore. Again, that is not true. That is
not true. That is not true. This is all about
the deduction that's only good till 2029, by the way.
That's when it reverts back. Now here is what is
also important. Remember, you may decide that you want to
(15:33):
make some conversions from a traditional IRA to a Roth IRA.
If you qualify income wise for these deductions, you have
to watch your income. So if you intend to make
any conversions in 2025, 2026, 2027, or 2028.
And you will be at least 65. I need you
(15:58):
to be aware of how it could impact your eligibility
for this $6,000 or $12,000 deduction in each of those years.
If you have yet to turn 65 and you want
to convert large sums, it might make sense to convert
more now.
So you will also be able to claim the deduction
(16:21):
once you turn 65 if
you have already started to claim your Social Security or
that other $6,000 deduction may apply to something else in
your finances. So that's why it's important for all of
you to seriously sit down with a trusted tax pro
(16:44):
to consider what your options are, and is it a
smart move or not.
That's what all of you need to know about Social Security,
and I hope I did a good enough job explaining it.
All right, everybody, again today at midnight Pacific Coast time.
(17:08):
Is the last time you're going to be able to get.
The must-have documents for $73. So do not wait. Go
directly to musthavedocs.com/birthday. A lot of you, by the way,
are just going to must-have docs slash birthday, and you're
(17:28):
writing me going, but Suze, it's not there. It's must
have docs docs.com/birthday.
And then you can get $99 which is what it
normally sells for, and it's gonna be going up shortly.
You can get it for $73 but that offer ends
(17:53):
in just a few hours later tonight. All right, that
was your Suze School for today. So until next week,
now Miss Travis will join us. There's only one thing
that I want you to remember, and it's this
is the year
for your money to make more money, it is. I
(18:15):
told you at the beginning of this podcast what I
think is going to happen. I don't know if it
is or not, but this is the year that your
money can make more money, but you have to know
what to do with it. You have to be willing
to do something with it, and you have to have
faith in yourself that you have what it takes to
(18:37):
do it.
So until then, stay safe, stay healthy, and know that
we love you so very, very much. Bye bye now.
July 27th, 2025. Welcome everybody to the Women and Money podcast,
as well as everybody smart enough to listen. Suze O here,
and today is Suze School, and this podcast, like many
of the Suze School podcasts, this is where you are
going to want to have paper and pencil or your
(00:50):
Suze notebook to write down what I'm going to say.
But before I begin, Josh.
It is your birthday today, Josh, and KT and I
wish you the happiest, happiest birthday of all. Josh is
Savannah Buffett's husband. We love him so much, I can't
(01:10):
tell you. So Josh, I hope we get to see
you sooner than later. All right, everybody, let's, before I
even begin what this Suzz school is about, I just
want to run through what I really think is happening
with the stock market.
I've told you that I do think August and September
very well could be rough months, and if they are
(01:33):
rough months and certain stocks go down or many stocks
go down, these will be the perfect two months for
you to dollar cost average or go a little bit
heavier in the market. And why is that?
'Cause I still think the Standard and Poor's 500 is
going to end this year between 6700 and 7400, so
(01:57):
it's got a nice way to go. I just want
to say, you know, this market for many, many reasons.
It reminds me of the years, were you even born then?
Between 1995 and the year 2000. Do all of you
remember those years?
Where there was such S&P gains, it wasn't even funny.
(02:17):
It was, I think, 34% one year, 20%, 31%, 27%, 19%,
something like that. And this time right here and right
now unless something bizarre happens overall reminds me of those times.
There are certain sectors that I love a lot. I
(02:39):
love all the stocks that I've mentioned to you in
the past.
But I can't remember if I recommended or I talked
about the utility sector, fabulous sector that you might want
to look investing in symbol is XLU for the ETF.
It pays about a 2.79% yield, something just to look at. Also,
(03:02):
the XRT, the retail ETF.
It's interesting because it surged 7.1% this last month.
I find that very interesting. And the other thing I'm
looking at that I'm finding interesting are REITs, and the
(03:24):
one that I'm looking at, the ETF is IYR. They
pay a dividend of about 2.49%. Remember, you really want
to own REITs in your retirement accounts because most of
the time the dividends there almost all the time,
are non-qualified dividends are just something to think about, but
(03:47):
as I'm looking at all of these things, all of
these things are saying to me yields are absolutely going
to go lower.
I don't know when that will happen, but you can
just kind of feel it as you're looking at these things,
so just something for you to think about. Also, I
(04:08):
just have to say Berkshire Hathaway.
Its symbol is BRK-B.
A pure value play, something you should look at as
well as the high yield corporate bond ETF that I've
talked about, the HYGs.
Might want to look at those yield is 5.77%, and
(04:33):
of course, as you know, I still like I bit
a lot, the ETF for Bitcoin for those of you
who want to enter that area. All right, so with
that said, and with interest rates possibly going lower if
everything is going to work out according to plan, which
(04:55):
sometimes it does and sometimes it doesn't.
You should be taking advantage of the one year certificate
at Alliant Credit Union 4.3% APY for amounts under $75,000
for amounts of $75,000 or more.
It's 4.35 APY still a great yield. Therefore, go to
(05:20):
My Alliant A L L I A N T.com and
check it out. All right, you have requested this over
and over and over again, so I'm going to give
it to you. You want to know about the big
beautiful bill.
(05:41):
What do I need to know about it, Suze? What
should I do? What shouldn't I do now? There are
so many things in this bill, but the truth of
the matter is, the majority of people that listen, and
I'm so proud of this, I have to tell all
of you that listen to the Women and Money podcast
and everybody smart enough to listen, are really close to
(06:06):
or already receiving Social Security.
So I want to tackle on this particular Suze school
the part of the Big Beautiful Bill, the BBB, that
deals with Social Security. All right, everybody, so if you're younger,
(06:26):
you should take notes and share it with your parents
if they're older or your grandparents, but you need to
know these things now.
What you need to understand is that this new law.
Makes it permanent that the lower federal income tax rates
that have been in place since 2017 but were scheduled
(06:49):
to expire at the end of this year.
It makes them permanent.
I think that's kind of great if you ask me.
The higher standard deduction.
That was also in place since 2017. The law was
made permanent for 2025. The standard deduction is $15,750 for
(07:18):
single tax filers, right, and $31,500 for married couples filing
a joint tax return.
So the standard deduction, however, now is also going to
be adjusted for inflation annually. I love that. I have
(07:38):
to tell you.
Now, in addition to those rules that impact us all,
like I said a second ago, there are so many
more changes that will impact all of you, all right,
so there's too much to cover in just one podcast.
But over the next podcasts or so, I'll get to
(07:59):
all of them. So again, we're going to start with
Social Security. Here's what you need to get about this.
When Social Security started, everybody in 1935, do you know
that it was completely tax free? But in 1983, I'll
(08:19):
never forget this because I was a stockbroker at the time.
In 1983, Congress decided that some people should pay taxes
on up to 50% of their benefit.
But 10 years later in 1993, they raised it to 85%,
(08:41):
but want to know what the kicker is.
That the income limits that determine whether your benefit gets
taxed or not.
They haven't been adjusted for inflation since 1993.
So more and more of you have been getting hit
with taxes on your Social Security, like even if you're
(09:03):
just making a little bit from a pension, a CD,
or part-time work, the old limits, which were 25,000 for singles,
32,000 for married couples.
Guess what? If you went over those amounts, you could
be taxed on up to 85% of your Social Security,
(09:24):
and those amounts have not changed. Now here's what's important
before we talk about what has changed, I want to
talk about what has not changed.
Listen closely.
The rules on taxation of Social Security benefits were not changed.
(09:47):
Do you hear me? No changes to Social Security. But
what did change? Beginning this year, Anyone who is at
least 65 years of age or older may be able
to claim a $6,000 income deduction.
(10:08):
You are eligible for it even if you have yet
to start claiming Social Security. There is no link between
the new tax break and Social Security. So many of
you say to me, but Social Security isn't going to
be taxed anymore. They're not taxing Social Security. This bill
says nothing about the actual taxation of Social Security. It
(10:33):
talks about a deduction
for you off of your income, so here are the rules.
There's this new $6000 per person deduction.
And that deduction is in addition to the already existing
deduction available to anyone at least 65 or older. So
(10:59):
are you all aware that if you are 65 or older,
the existing deduction is $2,000 for single filers?
And $1,600 each for married couples filing a joint tax return.
Now those deductions were already in place, the $21,600. They've
(11:21):
been there, but in addition to that.
There is a $6,000 per person deduction on top of that,
so you can claim these deductions whether you take the
standard deduction or file an itemized tax return.
To claim the full $6,000 deduction or $12,000 total for
(11:46):
married couples if both are at least 65 years of age,
your modified gross income.
Must be below $75,000 for a single tax filer and
$150,000 for married couples filing a joint tax return. So again,
(12:10):
remember the new $6,000 deduction is for taxpayers aged 65
and over.
And it begins to phase out. Now how does it
phase out? The deduction is reduced by 6 cents for
every dollar over these thresholds, and it's fully phased out
(12:32):
if you're making $175,000 MAGI for a single and $250,000
for joint filers. So you need to remember that. So
after those last two amounts, $175,000 and $250,000.
The deduction is entirely gone, just that simple. Now, maybe
(12:54):
you want an example of this. So let's just say
you made $100,000 as a single.
And the phase out started at $75,000 remember, so you
are $25,000 over.
That limit what you would do is simply times 25,000
(13:21):
times 0.06, which is a total reduction of $1,500. So
the deduction after the reduction is only $4,500. That's it.
So a single filer aged 65 with a $100,000 MAGI
(13:43):
would receive a $4500 deduction rather than $6,000. Does that
make sense to all of you? Now I tell you
that so that you can figure it out for yourself
how much of this deduction.
That you're being allowed you actually get to take if
(14:04):
any whatsoever, but for now what you really need to
know is that this additional deduction, the $6000 per person,
is available for.
2025, 2026, 2027, and 2028 tax years.
(14:27):
Under the current law, it will no longer be available
beginning in the 2029 tax year. So you got to
note that this is a temporary tax break, and it
is only for the new $6,000 deduction once again, the
(14:48):
$2,000 and $1,600 per married person deduction for people at
least 65, that is permanent.
So let's just take a look at who really gets
the biggest benefit from this, OK, because it's not everybody again,
(15:09):
everybody thinks that Social Security itself is not going to
be taxable anymore. Again, that is not true. That is
not true. That is not true. This is all about
the deduction that's only good till 2029, by the way.
That's when it reverts back. Now here is what is
also important. Remember, you may decide that you want to
(15:33):
make some conversions from a traditional IRA to a Roth IRA.
If you qualify income wise for these deductions, you have
to watch your income. So if you intend to make
any conversions in 2025, 2026, 2027, or 2028.
And you will be at least 65. I need you
(15:58):
to be aware of how it could impact your eligibility
for this $6,000 or $12,000 deduction in each of those years.
If you have yet to turn 65 and you want
to convert large sums, it might make sense to convert
more now.
So you will also be able to claim the deduction
(16:21):
once you turn 65 if
you have already started to claim your Social Security or
that other $6,000 deduction may apply to something else in
your finances. So that's why it's important for all of
you to seriously sit down with a trusted tax pro
(16:44):
to consider what your options are, and is it a
smart move or not.
That's what all of you need to know about Social Security,
and I hope I did a good enough job explaining it.
All right, everybody, again today at midnight Pacific Coast time.
(17:08):
Is the last time you're going to be able to get.
The must-have documents for $73. So do not wait. Go
directly to musthavedocs.com/birthday. A lot of you, by the way,
are just going to must-have docs slash birthday, and you're
(17:28):
writing me going, but Suze, it's not there. It's must
have docs docs.com/birthday.
And then you can get $99 which is what it
normally sells for, and it's gonna be going up shortly.
You can get it for $73 but that offer ends
(17:53):
in just a few hours later tonight. All right, that
was your Suze School for today. So until next week,
now Miss Travis will join us. There's only one thing
that I want you to remember, and it's this
is the year
for your money to make more money, it is. I
(18:15):
told you at the beginning of this podcast what I
think is going to happen. I don't know if it
is or not, but this is the year that your
money can make more money, but you have to know
what to do with it. You have to be willing
to do something with it, and you have to have
faith in yourself that you have what it takes to
(18:37):
do it.
So until then, stay safe, stay healthy, and know that
we love you so very, very much. Bye bye now.
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