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Suze Orman could not have been more clear on her podcast when, in 2023, she proclaimed, “a Roth retirement account is the best retirement account out there. Bar none” (1).
That’s because Roth accounts protect you from the devastating impact of a tax torpedo — and yes, it’s as ominous as it sounds.
But how does this tax storm happen, and most importantly, how can you avoid it? One of the best ways is to reduce your reliance on Social Security for retirement.
The tax torpedo hits when your combined income hits a certain threshold. This triggers additional taxation on your Social Security benefits.
For single individuals with combined income over $34,000 or married couples filing jointly over $44,000, up to 85% of Social Security benefits can be taxed. Even if your income is between $25,000 and $34,000 as an individual or $32,000 and $44,000 as a couple, 50% of your benefits could still be taxed (2).
This scenario is more common than you might think, with 40 percent of Social Security recipients paying taxes on their benefits. Additionally, the rate you’re taxed at may also be higher than you originally expected if your provisional income calculation bumps you into a higher Social Security tax bracket.
If you’re already worried about where your taxes will end up in retirement, rest assured that there are certified professionals who can help.
If you’re looking for financial advice, Advisor.com connects you with verified fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances, and Advisor.com gives you a short list of certified experts to choose from.
You can then set up an introductory meeting with no obligation to commit.
Another death blow strikes if you’re in a state that also levies income tax. Here’s the good news: If you use a Roth account instead, you can avoid destroying that tax torpedo. There are plenty of other ways you can reduce your reliance on Social Security in retirement overall, such as building a healthier, more solid retirement portfolio.
Orman also emphasized the importance of regularly reviewing your financial portfolio in a blog post. “You should log in and make sure your investment mix – stocks/bonds/cash/ – is in line with your long-term goals.”
Qualified Roth IRA withdrawals (after age 59 1/2 and meeting the 5-year rule) are tax-free and are not counted in the prior income calculation.
Orman is a big supporter of Roth IRAs and encourages all of his followers to get as close to their maximum contributions as possible. In a blog post, she wrote: “If you don’t typically contribute the maximum, I hope you’ll consider pushing yourself to increase your retirement savings.”
For 2025, the maximum contribution allowed to both traditional IRAs and Roth IRAs cannot exceed $7,000. This amount increases to $8,000 if you are over 50 (3).
Because Roth IRA withdrawals are tax-free, they keep your combined income lower, helping you avoid triggering Social Security tax thresholds. That’s where assets that protect you from inflation or market volatility can help.
A gold IRA, for example, allows you to own physical assets like gold, providing a hedge against market ups and downs and inflation. Although it will be subject to income tax and contribute to taxable income in retirement, a gold IRA can be a risk-adjusted complement to a Roth IRA, which could be riskier depending on the assets you hold inside.
Opting for a gold IRA allows you to invest directly in physical precious metals rather than stocks and bonds.
Priority Gold is a leader in the precious metals industry, providing physical delivery of gold and silver. Additionally, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you want to convert an existing IRA to a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping and free storage for up to five years. Eligible purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce the impact of inflation on your nest egg, download their free 2025 Gold Investor Pack.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
When planning for retirement, you don’t just want to consider the types of accounts available, such as Roth IRAs or Gold IRAs. Make sure you have the right stocks, ETFs and savings plans to deliver those returns for a comfortable retirement.
IRAs can offer some tax advantages, but if you don’t invest in them properly, they won’t help you much.
“I encourage you to keep coming back to this thought exercise,” Orman wrote in a LinkedIn post. What are the financial steps you could take today to be kindest to your older future self? The 88-year-old, the 90-year-old, the 95-year-old?”
Beyond investing in the stock market, real estate is a fantastic way to diversify your retirement portfolio and reduce any reliance on Social Security.
But it can be cumbersome, expensive and very difficult to administer.
If you are looking to buy a property in America, the average sales price in Q2 2025 was $410,800 (4). For most, a 20% down payment for that price tag just isn’t feasible. And that could mean you’re looking at a mortgage rate of around 6% (5).
Then there’s the added cost of upkeep and maintenance of your home. That’s over $10,000 a year, according to Zillow (6). All of these factors can make property investment seem impossible, but there are still options.
For years, direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through retail anchored commercial properties without assuming the responsibilities of ownership.
With a minimum investment of $50,000, investors can own a portion of properties leased by national brands like Whole Foods, Kroger and Walmart that provide essential goods to their communities. Thanks to Triple Net Leases (NNN), accredited investors can invest in these properties without worrying about cutting tenant costs into their potential returns.
Answer a few questions – including how much you’d like to invest – to start browsing the full list of available properties.
You can tap into this market by investing in vacation home shares or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in parts of vacation and rental properties, earning a passive income stream without the extra work of owning your own rental property.
To get started, simply browse their selection of vetted properties, each chosen for potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
You can continue to invest even in retirement. Investing spare change from everyday purchases can add up quickly without putting a strain on your finances.
Acorns is an automated investing app that makes building a smart portfolio easily accessible.
All you have to do is sign up and follow the steps to connect your bank account. The app will automatically round up the total cost of your purchases and invest the difference in a diversified portfolio of ETFs. So all it takes to help you build your portfolio and save for retirement is to make your daily purchases and watch your money grow.
Plus, you can get a $20 bonus when you sign up today. These simple and effective tools for growing your savings are sure to be approved by Suze.
You can also continue to contribute to low-risk investments even in retirement. This can help you build wealth without worrying about market fluctuations.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
suzeorman.com (1); Congressional Research Service (2); IRS (3; Federal Reserve Bank of St. Louis (4); Federal Reserve Bank of St. Louis (5); Zillow (6)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
