Approaching Retirement? Suze Orman's 2025 Plan For Safe, High-Earning Cash
As retirement approaches, many people start to shift their focus from growing their investments to protecting what they've built. Financial expert Suze Orman has a clear strategy for 2025 that focuses on helping near-retirees earn more on their cash while keeping it safe.
Whether you're just a few years away from retirement or already there, Orman's recommendations offer a roadmap for where to park your money in today's higher-interest environment.
Don't Miss:
Start with a Strong Emergency Savings Account
Before thinking about investing or even locking money into a longer-term product, Orman urges everyone to build a solid emergency fund. Her advice: aim to keep three to twelve months of living expenses in an easily accessible savings account.
One option she recommends is the Ultimate Opportunity Savings Account at Alliant Credit Union. According to Orman's blog, this account currently earns a 3.10% annual percentage yield and comes with a $100 bonus for anyone who deposits at least $100 a month for 12 consecutive months.
Orman wrote that this "remains my go-to advice for building up a savings account." The key benefit here is combining steady savings habits with one of the more competitive yields available for liquid cash.
Trending: Many are using retirement income calculators to check if they're on pace — here's a breakdown on what's behind this formula.
Use CDs to Lock in Higher Yields
If you don't need immediate access to some of your money, Orman says certificates of deposit can offer even better returns. For example, in her blog, she states that Alliant's one-year CD is currently offering 4.00% APY. Longer-term CDs, like those with 17-month or two-year terms, may offer slightly more.
CDs require you to commit your funds for a fixed period, and pulling money out early typically results in a small interest penalty. Still, they're considered low-risk and are insured up to the legal limits by the FDIC or NCUA.
To balance access and earnings, Orman suggests a CD ladder. By dividing your money among CDs of different lengths — say, one-year and 18-month terms — you'll have cash maturing at staggered intervals. This approach can help you maintain flexibility while capturing today's high rates.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 hours ago
- Yahoo
They Retired At 40 With $1M In The Bank, While Experts Like Suze Orman Say You'll Need $10M. Their Monthly Expenses Are Now Only $1,241
Most financial experts say you need millions to retire comfortably. Some, like Suze Orman, have floated numbers as high as $10 million. But one Indiana couple is proving that early retirement is possible on far less. One couple on the r/leanfire subreddit shared how they retired at 39 with just over $1 million in assets. They now live on about $1,241 per month, or around $15,000 per year. FIRE stands for financial independence, retire early. LeanFIRE is a version of that focused on extreme frugality and minimalism to achieve early retirement with a modest nest egg. 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 'We're living proof that leanFIRE actually works,' he wrote. 'We're free, we travel half the year, and we're not stressed about money.' The couple lives just outside Indianapolis, a low cost of living area they chose intentionally. Their expenses are low in part because they've made some big financial decisions: their house is fully paid off, they drive a 2005 Toyota with over 200,000 miles, and they have zero debt. Despite the tight budget, they don't stay home all year. They spend 4 to 6 months annually overseas in countries like Thailand, where they rent fully furnished apartments for as little as $400 per month and eat street food for less than the cost of cooking at home. 'Street food in Thailand beats cooking at home cost-wise,' he said. Trending: Invest where it hurts — and help millions heal:. Health insurance costs? Also zero. The husband qualifies for Medicaid because Indiana doesn't test assets, just income, and they keep their modified adjusted gross income low on purpose. His wife, who isn't a U.S. citizen yet, uses an Affordable Care Act-subsidized plan. 'Medicaid in 41 states is based on MAGI. No asset testing. It's literally how our overlords designed it,' he explained. The couple's monthly expenses break down like this: $500 on food and household goods $275 in property taxes $120 for electricity $97 for home insurance The rest goes to small costs like gas, gym membership, and internet They avoid spending by not caring about lifestyle inflation. 'Don't give a damn what the neighbors think,' he said. ''Stuff' is the enemy of FIRE.' Their income comes from a combination of selling short-term Treasury ETFs, dividends, an online side hustle, and occasional bank account signup bonuses. They say their IRA accounts continue to grow Reddit users were skeptical of the couple's access to Medicaid with over $1 million in net worth. But the husband maintained that their eligibility is fully legal. 'Nothing unethical about it,' he said. 'They set the rules of the game. It's our job to know and play by the rules.' They say not having children makes this lifestyle possible, and many in the comments agreed. 'No kids, no fancy cars, no keeping up with anyone,' he wrote. 'But we're free.' While many FIRE enthusiasts plan for 4% withdrawal rates, the couple spends closer to 1.5% of their net worth per year. 'You just have to actually want it more than you want stuff,' he said. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article They Retired At 40 With $1M In The Bank, While Experts Like Suze Orman Say You'll Need $10M. Their Monthly Expenses Are Now Only $1,241 originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Yahoo
2 Reasons Saving Less Is the Secret To Building Wealth, According to Ramit Sethi
While focusing on saving can seem safer than potentially losing money in mutual funds, stocks and bonds, finance expert Ramit Sethi believes that this approach could leave you broke. Learn More: Consider This: A 2024 report by Janus Henderson Investors found that 48% of Americans had no investments. While some people cited a lack of investment expertise, the need to pay off debt or limited financial means as the reason, 38% simply preferred putting cash in regular bank accounts. In a recent YouTube video, Sethi explained why you should save less and instead invest your money smartly. While you might think you're making progress by saving money, you'll eventually find yourself off track from your retirement goal, even if you contribute a large sum each month. First, a typical savings account usually earns a much lower rate than the average investment return, so your money grows much more slowly. Then, there are hidden factors you might forget, like taxes and inflation, that lead to being unable to buy as much with your savings. Sethi gave an example of someone who spent 30 years stashing away $1,000 each month. Federal Deposit Insurance Corporation data showed the national average savings account rate was 0.42% in May 2025, while Sethi said the historical average annual investment return (after inflation) was 7%. According to Sethi, the person who saved would have around $383,000 after 30 years, compared to nearly $1.2 million for the investor. So, the saver would have missed out on about $817,000. Sethi added, 'This is the difference between struggling to retire at 65 versus becoming a millionaire before 50.' Explore More: The annual inflation rate reported in April 2025 was 2.3%, which was 1.88% more than the 0.42% average savings account rate. So, while your savings balance looks like it's growing each year, inflation is likely robbing you of some of your money's value. For example, if you had $1,000 in your savings account, you might earn $4.20 over the year, but lose $23.00 to inflation. So, your money's purchasing power would have gone down by $18.80, meaning you're not really getting ahead. Sethi explained that many people mistakenly believe that saving is the safe and virtuous route, but as the example showed, it actually makes it harder to grow money efficiently. He said, 'In order to build wealth, you have to go way beyond saving, and you have to invest.' While still saving cash for emergencies and upcoming purchases is smart, prioritizing investing is a better approach for preparing for retirement and building wealth. Sethi discussed how you can invest without making it complicated, and suggested ways to come up with more cash to contribute. First, he recommended a three-step strategy of taking advantage of 401(k) matches, contributing to a Roth IRA and buying target-date funds. This combination gives you free money from your employer, tax advantages and simplicity. To ensure you stay on track, Sethi suggested automatically transferring 5% of your pay to both your 401(k) and Roth IRA accounts. Then, you should set up automatic target-date fund purchases so you don't forget them. Finally, Sethi said you should take three steps to get more money rather than focus on cutting expenses, which will eventually come to a limit. These include asking for a higher salary, taking on a suitable side gig and focusing on gaining and improving valuable skills. Sethi explained, 'If you focus on earning more, you will give yourself a massive advantage in building your rich life.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Clever Ways To Save Money That Actually Work in 2025 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 2 Reasons Saving Less Is the Secret To Building Wealth, According to Ramit Sethi Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Yahoo
Best high-yield savings interest rates today, June 15, 2025 (best accounts offering 4.3% APY)
Find out how much you could earn with today's savings rates. The Federal Reserve cut its target rate three times in late 2024, which means savings interest rates are falling from their historic highs. It's important to be sure you're getting the best rate possible when shopping around for a savings account. The following is a breakdown of savings interest rates today and where to find the best offers. The national average savings account rate stands at 0.42%, according to the FDIC. This might not seem like much, but consider that three years ago, it was just 0.06%, reflecting a sharp rise in a short period of time. As of today, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by EverBank and Openbank. However, Openbank has a minimum $500 opening deposit, while EverBank requires no minimum opening deposit. Since these rates may not be around much longer, consider opening a high-yield savings account now to take advantage of today's high rates. Here is a look at some of the best savings rates available today from our verified partners: This embedded content is not available in your region. The amount of interest you can earn from a savings account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (savings account interest typically compounds daily). Say you put $1,000 in a savings account at the average interest rate of 0.42% with daily compounding. At the end of one year, your balance would grow to $1,004.12 — your initial $1,000 deposit, plus just $4.12 in interest. Now let's say you choose a high-yield savings account that offers 4% APY instead. In this case, your balance would grow to $1,040.81 over the same period, which includes $40.81 in interest. The more you deposit in a savings account, the more you stand to earn. If we took our same example of a high-yield savings account at 4% APY, but deposit $10,000, your total balance after one year would be $10,408.08, meaning you'd earn $408.08 in interest. Read more: What is a good savings account rate?
