1 00:00:01,539 --> 00:00:02,230 Music: Music (in). 2 00:00:33,650 --> 00:00:39,150 Suze: June 8th, 2023. Welcome everybody to the Women and Money podcast. 3 00:00:39,159 --> 00:00:43,659 Suze: As well as everybody smart enough to listen. This is 4 00:00:43,668 --> 00:00:49,069 Suze: the KT and Suze Ask us anything and we got it. 5 00:00:49,080 --> 00:00:51,229 Suze: Do you want to ask us about my birthday? 6 00:00:51,549 --> 00:00:54,250 KT: We had a great birthday. It was so simple. 7 00:00:54,259 --> 00:00:55,459 Suze: Tell him what we did. 8 00:00:58,099 --> 00:01:01,560 KT: OK. So we came back to Florida and Suze and 9 00:01:01,569 --> 00:01:05,650 KT: I had planned a very elegant, beautiful date night at 10 00:01:05,660 --> 00:01:10,940 KT: a very special Japanese restaurant. We love Japanese food and sushi. 11 00:01:11,269 --> 00:01:15,199 KT: So as we were here, she was getting like, you know, 12 00:01:15,529 --> 00:01:18,000 KT: KT I think I'm going to change my mind. Let's 13 00:01:18,010 --> 00:01:19,019 KT: just stay home. 14 00:01:19,389 --> 00:01:21,629 KT: I said, all right, I said, I'll make something and 15 00:01:21,639 --> 00:01:24,260 KT: we'll enjoy just a quiet evening at home. 16 00:01:24,269 --> 00:01:26,620 Suze: I had my bathrobe on until like three o'clock... 17 00:01:26,930 --> 00:01:29,690 KT: and then, then she looked at me and she said, 18 00:01:29,699 --> 00:01:33,559 KT: you know, I'm hungry. I said, ok, I'll make dinner early. 19 00:01:33,629 --> 00:01:34,800 KT: She said, you know, 20 00:01:35,190 --> 00:01:39,480 KT: I think I want to go to Charm City burgers. If, 21 00:01:39,489 --> 00:01:41,809 KT: if you don't know what Charm City is. It's a 22 00:01:42,110 --> 00:01:47,769 KT: incredible burger joint. Literally a burger joint in Florida. In 23 00:01:47,779 --> 00:01:50,949 KT: South Florida. There's only one, it's not a chain and 24 00:01:50,959 --> 00:01:55,089 KT: they make really grilled burgers. Like there's smoke. Always coming 25 00:01:55,099 --> 00:01:58,870 KT: out of the can smell it, it, places 26 00:01:59,440 --> 00:02:03,169 KT: and both I don't eat meat. Suze wanted a burger 27 00:02:03,180 --> 00:02:05,230 KT: and I wanted a turkey burger, 28 00:02:05,260 --> 00:02:06,089 Suze: I hardly ever eat meat. 29 00:02:06,099 --> 00:02:10,029 KT: So it was so delicious. We got fries, we got 30 00:02:10,038 --> 00:02:14,809 KT: onion rings, a diet Coke and burgers and you know 31 00:02:14,820 --> 00:02:18,619 KT: what we did, we sat in our car and went 32 00:02:18,630 --> 00:02:21,690 KT: into a little parking lot that was very shaded and 33 00:02:21,699 --> 00:02:22,509 KT: empty 34 00:02:22,820 --> 00:02:27,329 KT: and we enjoy those burgers and sitting in a car 35 00:02:27,360 --> 00:02:30,399 KT: having a date on her birthday more than you can imagine. 36 00:02:30,410 --> 00:02:31,550 Suze: How much was that bill? 37 00:02:32,270 --> 00:02:35,080 KT: Um $13 for all of that. 38 00:02:35,770 --> 00:02:44,859 Suze: So you see $13.00 for all of that... So what do have for me? 39 00:02:45,449 --> 00:02:48,100 KT: I have an assortment of questions, but many of them 40 00:02:48,110 --> 00:02:49,050 KT: are still about retirement. 41 00:02:49,554 --> 00:02:53,115 KT: People are as confused as I am with that. Roth. 42 00:02:53,125 --> 00:02:58,095 KT: Here we go. Hi, Suze and KT. I'm definitely a late bloomer. 43 00:02:58,104 --> 00:03:01,654 KT: This is from Elizabeth. Everyone when it comes to investing 44 00:03:01,663 --> 00:03:04,615 KT: for my future. I'm a teacher with seven years left 45 00:03:04,625 --> 00:03:09,235 KT: until retirement. I'm finally in a much better position to 46 00:03:09,244 --> 00:03:14,005 KT: start contributing more to my financial future. This brings me 47 00:03:14,014 --> 00:03:17,133 KT: to my question. It sounds like a teacher, right? 48 00:03:17,500 --> 00:03:21,679 KT: I opened a Roth IRA through Fidelity last year, I'm 49 00:03:21,690 --> 00:03:25,669 KT: working on building my portfolio myself with you, Suze, as 50 00:03:25,679 --> 00:03:30,449 KT: my guide, you talk a lot about investing for dividends 51 00:03:30,460 --> 00:03:34,800 KT: and or investing for growth, but to know what you want, 52 00:03:34,820 --> 00:03:39,729 KT: I'm only able to contribute on an average $100 monthly 53 00:03:39,740 --> 00:03:40,830 KT: to my Roth. 54 00:03:41,279 --> 00:03:45,610 KT: So I'm dollar cost averaging into the stock and ETFs 55 00:03:45,619 --> 00:03:51,440 KT: I currently hold my balance today is $9000. And with 56 00:03:51,449 --> 00:03:55,910 KT: seven years before I retire, should I be focusing on 57 00:03:55,919 --> 00:04:00,830 KT: great dividend paying stocks? So that maybe by the time 58 00:04:00,839 --> 00:04:04,729 KT: I retire, I will have bought enough shares to make 59 00:04:04,740 --> 00:04:05,949 KT: that worthwhile. 60 00:04:06,410 --> 00:04:09,580 KT: So, Suze, what do you say to Elizabeth, our teacher? 61 00:04:09,589 --> 00:04:13,889 Suze: You know, Elizabeth, it's easy to say, all right, just 62 00:04:13,899 --> 00:04:18,599 Suze: do dividends, do growth. I always say, why not do 63 00:04:18,609 --> 00:04:24,118 Suze: dividend stocks that also are expected to grow. Like Pfizer 64 00:04:24,209 --> 00:04:31,029 Suze: for instance, or even Chevron or stocks like that. So 65 00:04:31,059 --> 00:04:33,760 Suze: I would just continue to do what you're doing and 66 00:04:33,769 --> 00:04:37,010 Suze: not get so caught up on, are they growth stocks? 67 00:04:37,019 --> 00:04:39,859 Suze: Are they things like, you know, and video or everything? 68 00:04:39,869 --> 00:04:41,899 Suze: Because what's starting to concern me 69 00:04:42,260 --> 00:04:46,309 Suze: is that because all we're ever hearing about right now 70 00:04:46,320 --> 00:04:49,410 Suze: is the fact that this stock is going up, oh 71 00:04:49,420 --> 00:04:52,808 Suze: my God, look at Amazon, look at Apple and many 72 00:04:52,820 --> 00:04:55,239 Suze: of you are probably thinking, oh, I can't believe I 73 00:04:55,250 --> 00:04:58,200 Suze: didn't invest in them and then you're imagining if you 74 00:04:58,209 --> 00:05:01,000 Suze: had invested in them, how much money you would have 75 00:05:01,010 --> 00:05:06,309 Suze: made if you had just simply done that, stop doing that. People, 76 00:05:06,320 --> 00:05:10,390 Suze: you have a plan, your dollar cost average every single 77 00:05:10,399 --> 00:05:10,790 Suze: month 78 00:05:11,269 --> 00:05:15,339 Suze: and you just invest in the areas you want to 79 00:05:15,350 --> 00:05:17,820 Suze: be invested in. Now, if you don't have a lot 80 00:05:17,829 --> 00:05:23,700 Suze: of money, stick to your exchange traded funds that specialize 81 00:05:23,709 --> 00:05:28,238 Suze: in dividends and then you'll be fine. But you'll see 82 00:05:28,470 --> 00:05:30,820 Suze: if the market start to go down over these next 83 00:05:30,829 --> 00:05:34,420 Suze: seven years, you'll be happy, at least that you're getting dividends. 84 00:05:34,428 --> 00:05:37,600 Suze: Make sure by the way that you always reinvest your 85 00:05:37,609 --> 00:05:41,049 Suze: dividends to get the biggest bang for the buck. One 86 00:05:41,059 --> 00:05:44,079 Suze: other thing I just want to say ETFs like the 87 00:05:44,089 --> 00:05:45,219 Suze: Vanguard Total Stock 88 00:05:45,320 --> 00:05:49,559 Suze: Market index or the Standard and Poor's 500 index, they 89 00:05:49,570 --> 00:05:52,609 Suze: pay a nice dividend and you can get growth there 90 00:05:52,619 --> 00:05:55,859 Suze: and diversification with seven years. You might want to be 91 00:05:55,869 --> 00:06:00,488 Suze: dollar cost averaging into those. Why are you smiling at me? 92 00:06:00,500 --> 00:06:06,059 KT: Because that's homework. Elizabeth is a teacher. So you just 93 00:06:06,070 --> 00:06:08,459 KT: gave her a lot of homework like that. 94 00:06:08,480 --> 00:06:11,640 Suze: She has the cutest little smile on her face. 95 00:06:11,670 --> 00:06:13,488 KT: We love teachers, by the way, 96 00:06:14,760 --> 00:06:15,230 Suze: They're still so underpaid. 97 00:06:18,309 --> 00:06:23,760 KT: We're on your side, teachers. All right. Next question from Georgina. Suze, 98 00:06:23,769 --> 00:06:27,488 KT: I listened to your podcast on I Bonds the other day, 99 00:06:27,760 --> 00:06:32,429 KT: I bought an I Bond in May last year 2022. 100 00:06:32,829 --> 00:06:37,880 KT: Now I am getting an interest rate of 4.3%. Suze, 101 00:06:37,890 --> 00:06:40,260 KT: I'm confused of what you said. 102 00:06:40,779 --> 00:06:43,839 KT: You said if I cash it out now, my surrender 103 00:06:43,850 --> 00:06:49,289 KT: charge would only be 0.85%. Can you please explain how 104 00:06:49,299 --> 00:06:50,980 KT: you got to that amount? 105 00:06:50,988 --> 00:06:52,880 Suze: You know, it's funny, Georgina and I was thinking to 106 00:06:52,890 --> 00:06:56,409 Suze: myself as I was doing that podcast, I bet you 107 00:06:56,420 --> 00:06:59,980 Suze: somebody is gonna write me and say, how did you 108 00:06:59,988 --> 00:07:04,540 Suze: get to that 0.85%? I don't get it. Listen to 109 00:07:04,549 --> 00:07:08,709 Suze: me closely everybody. The current I Bond 110 00:07:09,019 --> 00:07:14,279 Suze: that's paying 4.3% for many of you is made up 111 00:07:14,290 --> 00:07:19,170 Suze: of two parts. Remember, I Bonds have a fixed rate 112 00:07:19,179 --> 00:07:24,790 Suze: and a variable rate. Well, the variable rate is 3.38% 113 00:07:25,329 --> 00:07:28,450 Suze: and the fixed is 0.90%. 114 00:07:29,190 --> 00:07:33,079 Suze: If, Georgina, you wanted to cash out. Now, let's say, 115 00:07:33,089 --> 00:07:34,880 Suze: you know, you're in a month or two from now 116 00:07:34,890 --> 00:07:38,559 Suze: and you just want to cash out and that is 117 00:07:38,570 --> 00:07:41,230 Suze: your interest rate because you've owned it for at least 118 00:07:41,239 --> 00:07:46,299 Suze: three months now, into this second period, May, June, July. 119 00:07:46,309 --> 00:07:49,429 Suze: So you would not want to cash it out until 120 00:07:49,440 --> 00:07:54,640 Suze: at least August. Just remember that because even though you 121 00:07:54,649 --> 00:07:58,420 Suze: just renewed, it's the last three months. 122 00:07:58,970 --> 00:08:02,190 Suze: So if you were to cash it out right now 123 00:08:02,290 --> 00:08:06,309 Suze: and it renewed in May, it's May and June. So 124 00:08:06,320 --> 00:08:09,940 Suze: you would also pay at the higher rate. Remember that everybody? 125 00:08:09,950 --> 00:08:10,540 KT: Why? 126 00:08:10,850 --> 00:08:15,100 Suze: Because it's the last three months. And if three months ago, 127 00:08:15,109 --> 00:08:16,820 Suze: one of those months, KT 128 00:08:17,130 --> 00:08:21,100 Suze: was paying a higher interest rate, which it was than 129 00:08:21,109 --> 00:08:24,679 Suze: this one right now, which is 4.3%, it would be 130 00:08:24,690 --> 00:08:29,160 Suze: figured on that. But anyway, just listen to me, Georgina, 131 00:08:29,239 --> 00:08:32,369 Suze: you wanna wait till this new interest rate is in 132 00:08:32,380 --> 00:08:37,380 Suze: effect for a full three months. All right. So for you, 133 00:08:37,390 --> 00:08:41,219 Suze: that would be May June, July. So you would not 134 00:08:41,229 --> 00:08:45,460 Suze: cash it out before August. If you did cash it 135 00:08:45,469 --> 00:08:46,719 Suze: out in August, 136 00:08:47,109 --> 00:08:51,478 Suze: they would go back three months and the interest penalty 137 00:08:51,809 --> 00:08:58,349 Suze: is based on the current interest rate of 4.3%. However, 138 00:08:58,840 --> 00:09:04,858 Suze: as I just said, that is made up of the 3.38% 139 00:09:04,869 --> 00:09:11,419 Suze: variable and the 0.90% fixed, the .90% fixed does not 140 00:09:11,429 --> 00:09:15,200 Suze: figure in to your penalty. So 141 00:09:15,719 --> 00:09:23,640 Suze: you would then look at only the 3.38% variable rate. 142 00:09:23,650 --> 00:09:29,079 Suze: And remember this is a APY annual percentage yield. So 143 00:09:29,090 --> 00:09:32,849 Suze: you only are really gonna get half of that, which 144 00:09:32,859 --> 00:09:36,280 Suze: is 1.69% for six months, 145 00:09:36,880 --> 00:09:43,760 Suze: but half of 1.69% is 0.85. And that's how you 146 00:09:43,770 --> 00:09:47,848 Suze: get it. KT is looking at me like what the heck... 147 00:09:50,669 --> 00:09:53,289 KT: I'm looking at her like who the heck is gonna 148 00:09:53,299 --> 00:09:55,960 KT: want to figure all that out? That's why we have 149 00:09:55,969 --> 00:09:58,950 KT: you Suze. Well, I would not sit there and try 150 00:09:58,960 --> 00:10:00,080 KT: to figure this out. 151 00:10:00,090 --> 00:10:02,890 Suze: It's easy. You know, everybody gets confused because you think 152 00:10:02,900 --> 00:10:08,950 Suze: you're getting 4.3%. But remember it's an annual yield. So, in, 153 00:10:08,960 --> 00:10:12,750 Suze: in actuality, if you divided that for six months because 154 00:10:12,760 --> 00:10:14,580 Suze: it changes every six months, 155 00:10:14,880 --> 00:10:18,340 Suze: KT, that's really only why am I even doing this? 156 00:10:18,349 --> 00:10:21,289 Suze: What is the next question? Oh God. 157 00:10:21,559 --> 00:10:25,739 KT: Next question. I know you're all thinking the same thing 158 00:10:25,750 --> 00:10:28,140 KT: I am. I'm not gonna sit there and figure that out. 159 00:10:28,150 --> 00:10:32,090 KT: I need six calculators. All right. So next question is 160 00:10:32,099 --> 00:10:36,890 KT: from Brent. Hi, KT and Suze. You are both most 161 00:10:36,900 --> 00:10:40,840 KT: amazing people. And I just love how much your podcast 162 00:10:40,849 --> 00:10:42,530 KT: has changed my life. 163 00:10:42,950 --> 00:10:47,919 KT: I stupidly... don't call yourself stupid, Brent. I stupidly took 164 00:10:47,929 --> 00:10:54,780 KT: out a $30,000 loan against my 401k prior to listening 165 00:10:54,789 --> 00:10:56,919 KT: to your podcast last year. 166 00:10:57,440 --> 00:11:00,968 KT: Your podcast has inspired me so much so that in 167 00:11:00,979 --> 00:11:05,400 KT: the past 18 months, I've managed to eliminate all credit 168 00:11:05,409 --> 00:11:09,929 KT: card debt, fully fund my Roth IRA open a three 169 00:11:09,940 --> 00:11:14,900 KT: and six month, uh, certificate of deposit with Alliant, and 170 00:11:15,039 --> 00:11:20,669 KT: save 40,000 by working overtime side jobs and selling unwanted 171 00:11:20,679 --> 00:11:21,950 KT: items online. 172 00:11:22,330 --> 00:11:25,939 KT: I'm slightly worried the industry I'm in will start to 173 00:11:25,950 --> 00:11:30,900 KT: do layoffs in the late summer. So, although I'm comfortable, Suze, 174 00:11:30,909 --> 00:11:35,739 KT: with the $500 loan payment. Now, here is my question. 175 00:11:36,020 --> 00:11:38,590 KT: Is it better for me to pay off the loan 176 00:11:38,599 --> 00:11:43,570 KT: with my current savings depleting my 12 month emergency fund 177 00:11:43,580 --> 00:11:47,409 KT: or do I just chalk this up as a mistake 178 00:11:47,419 --> 00:11:51,510 KT: to not make again and keep my emergency fund safe. 179 00:11:51,520 --> 00:11:54,369 Suze: Basically. Brent, here's what I would do. Just keep doing 180 00:11:54,380 --> 00:11:58,150 Suze: exactly what you're doing right now. Since interest rates are 181 00:11:58,159 --> 00:11:59,030 Suze: so high, 182 00:11:59,390 --> 00:12:04,169 Suze: you know, hopefully your 12 month emergency fund is equal 183 00:12:04,179 --> 00:12:06,819 Suze: if you did lose your job to the amount of 184 00:12:06,830 --> 00:12:10,400 Suze: money that you would owe on the loan at that time. 185 00:12:10,590 --> 00:12:15,609 Suze: Because again, remember you lose your job, whatever you owe 186 00:12:15,630 --> 00:12:16,599 Suze: to 187 00:12:16,820 --> 00:12:20,718 Suze: the company in terms of your loan is due and payable. 188 00:12:20,729 --> 00:12:23,770 Suze: Usually within a month, if you don't have the money 189 00:12:23,780 --> 00:12:26,380 Suze: to do so, it will be taxed to you as 190 00:12:26,390 --> 00:12:30,750 Suze: ordinary income. And if you are not 55 years in 191 00:12:30,760 --> 00:12:35,270 Suze: age or older in the year, that that happens, then 192 00:12:35,280 --> 00:12:38,609 Suze: you would also have to pay a 10% penalty. So 193 00:12:38,619 --> 00:12:39,250 Suze: just keep that 194 00:12:39,335 --> 00:12:43,645 Suze: emergency money safe and sound. And if this happens, then 195 00:12:43,655 --> 00:12:47,205 Suze: you know, at that time, you will use that money 196 00:12:47,215 --> 00:12:50,635 Suze: to pay back the outstanding balance of the loan and 197 00:12:50,645 --> 00:12:53,864 Suze: then start all over again. Next question, KT 198 00:12:54,484 --> 00:12:58,344 KT: Ok, this is from Lisa. She said, Suze, I haven't contributed to 199 00:12:58,354 --> 00:13:02,844 KT: my retirement fund for about seven years. Then she says 200 00:13:02,854 --> 00:13:06,284 KT: they have sold it several times. I have to assume 201 00:13:06,559 --> 00:13:12,130 KT: that this is definitely a 401k that's in her company 202 00:13:12,140 --> 00:13:15,609 KT: that's been sold several times, but she didn't elaborate. She 203 00:13:15,619 --> 00:13:19,640 KT: did say Suze, I have a bunch of funds. This 204 00:13:19,650 --> 00:13:22,559 KT: is sweet with an A at the end of all 205 00:13:22,570 --> 00:13:23,049 KT: of them. 206 00:13:25,080 --> 00:13:28,929 KT: And then she said, where or who should I go to, 207 00:13:28,940 --> 00:13:32,619 KT: to help me get on the right track. I'm 43. 208 00:13:32,630 --> 00:13:34,580 KT: My husband is 50. 209 00:13:34,780 --> 00:13:37,919 Suze: Lisa, it's a little bit hard for me to answer 210 00:13:37,929 --> 00:13:40,339 Suze: this question. Only because 211 00:13:41,130 --> 00:13:44,390 Suze: I have a feeling KT is wrong that, that you 212 00:13:44,400 --> 00:13:50,659 Suze: have an individual retirement account and within that individual retirement account, 213 00:13:50,669 --> 00:13:57,530 Suze: your advisors have been buying and selling your mutual funds 214 00:13:57,849 --> 00:14:02,140 Suze: a lot. What's wrong with that? Is that an A 215 00:14:02,150 --> 00:14:03,599 Suze: share fund 216 00:14:03,940 --> 00:14:08,510 Suze: means that you are paying the load on that fund 217 00:14:08,520 --> 00:14:12,429 Suze: or the commission on that fund up front? That's what 218 00:14:12,440 --> 00:14:16,539 Suze: an A share is and an A share fund usually 219 00:14:16,549 --> 00:14:20,510 Suze: is at about a 4.75% load. 220 00:14:21,299 --> 00:14:26,419 Suze: So do you have a financial advisor that buys a 221 00:14:26,429 --> 00:14:30,719 Suze: mutual fund for you. Gets almost a 5% commission a 222 00:14:30,739 --> 00:14:34,239 Suze: little bit after that sells it and buys another one 223 00:14:34,250 --> 00:14:38,479 Suze: and gets another 5% commission. Is that what is going 224 00:14:38,489 --> 00:14:42,549 Suze: on here? Because if that's what is going on here, 225 00:14:43,200 --> 00:14:47,969 Suze: right, then you, you really need to contact the manager 226 00:14:47,979 --> 00:14:51,429 Suze: of that office because you have a crooked financial advisor, 227 00:14:51,440 --> 00:14:56,049 Suze: they cannot do that, especially if you have a mutual 228 00:14:56,059 --> 00:14:59,710 Suze: fund that has an A on the back of its name. 229 00:15:00,059 --> 00:15:03,330 Suze: So where do you go to for help to get 230 00:15:03,340 --> 00:15:06,190 Suze: you on the right track. First of all, you find 231 00:15:06,200 --> 00:15:07,929 Suze: out where the money is 232 00:15:08,390 --> 00:15:12,299 Suze: you go and ask for back statements. You look and 233 00:15:12,309 --> 00:15:15,479 Suze: see if that is, in fact what your advisor has 234 00:15:15,489 --> 00:15:19,539 Suze: been doing. If they have been doing that, you should 235 00:15:19,549 --> 00:15:21,960 Suze: be talking to their manager, they should be giving you 236 00:15:21,969 --> 00:15:23,979 Suze: your money back, believe it or not. 237 00:15:24,530 --> 00:15:27,520 Suze: And the first thing you would want to do is 238 00:15:27,530 --> 00:15:32,739 Suze: transfer that money out of that firm into another firm 239 00:15:32,750 --> 00:15:36,919 Suze: that you could probably manage on your own such as 240 00:15:36,929 --> 00:15:41,559 Suze: Schwab or Fidelity. But you do not want to stay 241 00:15:41,570 --> 00:15:48,070 Suze: with an advisor who keeps buying and selling A share funds. 242 00:15:48,080 --> 00:15:48,559 Suze: In fact, 243 00:15:48,854 --> 00:15:51,625 Suze: you want an advisor who want let you buy an 244 00:15:51,635 --> 00:15:55,955 Suze: A share or a B share. You want no load funds. 245 00:15:55,965 --> 00:15:59,354 Suze: So keep listening to the Women and Money podcast and 246 00:15:59,364 --> 00:16:01,565 Suze: one day here, I'll do a Suze school on the 247 00:16:01,575 --> 00:16:06,455 Suze: difference between A shares B shares C shares and no 248 00:16:06,465 --> 00:16:08,525 Suze: load funds. All right, KT. 249 00:16:08,854 --> 00:16:12,804 KT: Ok. I like this, Catherine. Hey, y'all 250 00:16:13,450 --> 00:16:17,659 KT: wonder where Catherine's from? Hey, y'all, I have a question. 251 00:16:17,669 --> 00:16:21,559 KT: I have roughly four years of living expenses in my 252 00:16:21,570 --> 00:16:26,359 KT: emergency fund. Good for you. Suze, I'm thinking of taking 253 00:16:26,369 --> 00:16:30,479 KT: roughly half of my emergency fund to pay off my mortgage. 254 00:16:30,640 --> 00:16:33,869 KT: I took advantage of the three and six months CDs 255 00:16:34,299 --> 00:16:35,080 KT: at Alliant , 256 00:16:35,369 --> 00:16:39,380 KT: the I Bond and also have two annuities in IRA 257 00:16:39,390 --> 00:16:44,859 KT: disability payments, a small pension, social security income and a 258 00:16:44,869 --> 00:16:49,770 KT: little invested with Robin Hood. I have no debt based 259 00:16:49,780 --> 00:16:53,979 KT: on this info. I'm assuming both you and KT would 260 00:16:53,989 --> 00:16:57,750 KT: advise me to pay it off. Am I correct? 261 00:16:58,750 --> 00:16:59,299 Suze: Quizzie, KT? 262 00:16:59,570 --> 00:17:03,469 KT: Yeah. Go for it. Pay it off, girlfriend. 263 00:17:04,119 --> 00:17:07,890 KT: So next question from Sandra. Suze, my husband is turning 264 00:17:07,900 --> 00:17:13,469 KT: 70 I'm turning 67 between his social security and my pension, 265 00:17:13,569 --> 00:17:19,810 KT: we have about $5460 a month. Our home is paid off. 266 00:17:19,819 --> 00:17:23,229 KT: We have half a million dollars in a 403 B 267 00:17:23,239 --> 00:17:26,790 KT: plus other investments and we have no debt. 268 00:17:27,198 --> 00:17:30,818 KT: We do not want to start RMD until we need to. 269 00:17:30,828 --> 00:17:33,968 KT: Should I wait to file for social security until I'm 270 00:17:33,979 --> 00:17:37,668 KT: 70 or take it now and invest it. So she's... she's...67... 271 00:17:40,619 --> 00:17:44,369 Suze: I get it. So this one's easy, Sandra, between the 272 00:17:44,380 --> 00:17:49,550 Suze: ages of 67 and 70 your social security payment will 273 00:17:49,560 --> 00:17:56,010 Suze: be guaranteed to go up 8% a year. Sandra, can 274 00:17:56,020 --> 00:17:59,810 Suze: you tell me where you could take that money from 275 00:17:59,819 --> 00:18:04,069 Suze: social security starting now? Most likely have to pay taxes 276 00:18:04,135 --> 00:18:08,545 Suze: on maybe up to 85% of it by the way 277 00:18:08,675 --> 00:18:15,385 Suze: and get an 8% return on your money guaranteed nowhere. 278 00:18:15,395 --> 00:18:20,364 Suze: So you are to wait till you are 70. Next one. KT. 279 00:18:20,555 --> 00:18:24,464 KT: Next question, Suze is from Tyler. Hi, KT and Suze. 280 00:18:24,474 --> 00:18:28,665 KT: I'm wondering if buying a mobile home is ever a 281 00:18:28,675 --> 00:18:29,864 KT: good idea. 282 00:18:30,209 --> 00:18:33,979 KT: My partner and I are in our late twenties currently 283 00:18:33,989 --> 00:18:38,010 KT: saving up for a home. We've always heard that mobile 284 00:18:38,020 --> 00:18:41,140 KT: homes are a bad idea since they only ever go 285 00:18:41,150 --> 00:18:44,099 KT: down in value. Is that true? Ok. 286 00:18:44,510 --> 00:18:48,589 Suze: But that doesn't mean they're a bad idea. But what 287 00:18:48,599 --> 00:18:51,800 Suze: isn't mobile that goes, that doesn't go down in value. 288 00:18:51,849 --> 00:18:56,000 Suze: Anything mobile, a boat, a car, they all go down 289 00:18:56,010 --> 00:18:56,698 Suze: in value. 290 00:18:57,130 --> 00:18:59,968 KT: But what if we're, we are looking at the home 291 00:18:59,979 --> 00:19:03,239 KT: as an investment. Suze, what if we're looking at it 292 00:19:03,250 --> 00:19:07,119 KT: as our home? Like they want a tiny house? 293 00:19:07,770 --> 00:19:11,839 Suze: Let me tell you something, Ty... I would do this so fast. 294 00:19:11,849 --> 00:19:13,540 Suze: I can't even tell you 295 00:19:13,829 --> 00:19:17,698 Suze: because what's happening in the United States right now is 296 00:19:17,709 --> 00:19:23,359 Suze: that the price of homes have skyrocketed, all right. Interest rates 297 00:19:23,369 --> 00:19:28,319 Suze: have skyrocketed to purchase a home. So therefore you need 298 00:19:28,329 --> 00:19:32,679 Suze: more money saved to put down. So you have at 299 00:19:32,689 --> 00:19:35,979 Suze: least 20% when you do buy the home as a 300 00:19:35,989 --> 00:19:39,649 Suze: down payment. But here's the other thing that has happened, 301 00:19:39,770 --> 00:19:43,339 Suze: property taxes. All right. Going up a little, not a lot, 302 00:19:43,599 --> 00:19:50,719 Suze: but the insurance for the homes are so off the 303 00:19:50,729 --> 00:19:55,449 Suze: charts right now. I can't even tell you. Here in Florida, 304 00:19:55,949 --> 00:20:02,589 Suze: our insurance on our condo went up almost five fold. 305 00:20:02,599 --> 00:20:07,969 Suze: My liability insurance went up almost, I wanna say, you know, 306 00:20:07,979 --> 00:20:12,170 Suze: from like 5000 year to almost 20,000 year, 307 00:20:12,660 --> 00:20:18,708 Suze: Flood insurance is up 20%. You have places like in 308 00:20:18,719 --> 00:20:24,639 Suze: California where State Farm and Allstate don't want to accept 309 00:20:24,650 --> 00:20:26,829 Suze: new policies anymore. 310 00:20:27,530 --> 00:20:31,520 Suze: So the cost of owning a home right now is 311 00:20:31,530 --> 00:20:35,849 Suze: also skyrocketing in your late twenties. If you can get 312 00:20:35,859 --> 00:20:38,780 Suze: a little mobile home and you can live in it, 313 00:20:38,790 --> 00:20:41,199 Suze: your expenses will be nothing. Do you know how much 314 00:20:41,209 --> 00:20:44,180 Suze: money you'll be able to save? Oh, my God. That's 315 00:20:44,189 --> 00:20:47,020 Suze: exactly what you should do. 316 00:20:47,030 --> 00:20:49,060 KT: I was thinking about something else. 317 00:20:49,489 --> 00:20:54,130 KT: It'll be real cozy for you and your partner. Wait, 318 00:20:54,140 --> 00:20:56,639 KT: I have one more question and by the way, we 319 00:20:56,650 --> 00:21:01,550 KT: love tiny houses. You know, we always say Tyler that 320 00:21:01,560 --> 00:21:04,750 KT: if God forbid we get a hurricane and we lose 321 00:21:04,760 --> 00:21:07,239 KT: our island home and our Florida 322 00:21:07,339 --> 00:21:09,979 KT: home, we look at each other. She said, where should 323 00:21:09,989 --> 00:21:12,270 KT: we go? And I said, let's just get a little 324 00:21:12,280 --> 00:21:15,179 KT: piece of land and make it get a tiny house. 325 00:21:15,479 --> 00:21:17,339 KT: We look at, we look at them all the time. 326 00:21:17,349 --> 00:21:19,869 KT: We love that and we like being really close to 327 00:21:19,880 --> 00:21:25,030 KT: each other. All right. Next question is from Lisa. Help Suze. 328 00:21:25,530 --> 00:21:29,609 KT: These are the best ones. Help. I need some advice. 329 00:21:29,619 --> 00:21:32,859 KT: I love following you so much great advice. Everything I 330 00:21:32,869 --> 00:21:37,540 KT: hear is to put savings into a Roth IRA and 331 00:21:37,550 --> 00:21:40,699 KT: cash value life insurance. 332 00:21:41,170 --> 00:21:43,239 Suze: You're not hearing that from me... 333 00:21:45,069 --> 00:21:48,310 KT: You're not hearing that from Suze, not the life insurance part. I want to do both. My 334 00:21:48,319 --> 00:21:52,050 KT: dilemma is that I have a 401k that I started 335 00:21:52,060 --> 00:21:55,329 KT: over 30 years ago. A good part of it is 336 00:21:55,339 --> 00:21:58,619 KT: in stock. So I have increased the value over time 337 00:21:58,630 --> 00:22:03,560 KT: from about 20 K to now just shy of 300,000. 338 00:22:03,569 --> 00:22:08,109 KT: Good for her. I'm about to turn 55. I haven't 339 00:22:08,119 --> 00:22:11,739 KT: found any advice about what to do with this money. 340 00:22:11,930 --> 00:22:15,659 KT: Do, or can I move it into a Roth account? 341 00:22:15,910 --> 00:22:20,520 KT: It's investing aggressively and now that I'm older, I think 342 00:22:20,530 --> 00:22:24,510 KT: a good portion should come out of the stock portion. Help. 343 00:22:24,520 --> 00:22:25,579 KT: What is your advice? 344 00:22:25,630 --> 00:22:28,780 Suze: Oh, girlfriend... I want you to listen to me closely. 345 00:22:28,800 --> 00:22:29,560 KT: That's my quizzie. 346 00:22:29,819 --> 00:22:32,339 Suze: It was going to be your quizzie. Where did you 347 00:22:32,349 --> 00:22:33,420 Suze: pull that from? 348 00:22:33,619 --> 00:22:35,180 KT: Your quizzie file. 349 00:22:35,569 --> 00:22:37,619 Suze: How did you get into my quizzie file? 350 00:22:38,140 --> 00:22:39,739 KT: Just thought I'd take a peek. 351 00:22:40,160 --> 00:22:43,069 Suze: So that you would be right and look up the answers. 352 00:22:43,079 --> 00:22:45,530 KT: This one was complicated. So I just made it a 353 00:22:45,540 --> 00:22:47,790 KT: question for you. Not for me. 354 00:22:47,800 --> 00:22:50,869 Suze: What am I gonna do with her, everybody? Anyway, Lisa 355 00:22:50,880 --> 00:22:55,130 Suze: here's the thing. Whoever is giving you this advice about 356 00:22:55,140 --> 00:22:58,040 Suze: cash value life insurance, you are never to talk to 357 00:22:58,050 --> 00:23:02,479 Suze: that person again. Ok? You're to run, not walk away 358 00:23:02,489 --> 00:23:05,650 Suze: from him or her. You don't have a dilemma. 359 00:23:06,349 --> 00:23:13,890 Suze: You have a really great situation. You have $300,000 in 360 00:23:13,969 --> 00:23:22,180 Suze: a 401k plan. That's fabulous. 55 is not old by 361 00:23:22,189 --> 00:23:26,520 Suze: any means. Trust me, given that I just turned 72. 362 00:23:27,050 --> 00:23:31,839 Suze: So what's important is you could if you wanted to 363 00:23:31,849 --> 00:23:36,219 Suze: convert this money from a 401k, if you're no longer 364 00:23:36,229 --> 00:23:42,379 Suze: working where the 401k happens to be into a Roth IRA, 365 00:23:42,390 --> 00:23:45,409 Suze: but I would never want you to do that because 366 00:23:45,420 --> 00:23:50,219 Suze: if you did that, all $300,000 would be taxable to 367 00:23:50,229 --> 00:23:53,079 Suze: you as ordinary income. 368 00:23:53,400 --> 00:23:57,030 Suze: So, what you would do is you might, if you 369 00:23:57,040 --> 00:23:59,790 Suze: want to move it from the 401k, because you can 370 00:23:59,800 --> 00:24:02,930 Suze: always leave it there as well, you would want to 371 00:24:02,939 --> 00:24:07,670 Suze: transfer it to a discount brokerage firm such as Schwab 372 00:24:07,680 --> 00:24:14,209 Suze: or Fidelity and do it into an IRA rollover. Within 373 00:24:14,219 --> 00:24:17,709 Suze: the IRA rollover, when you do that, you're not gonna 374 00:24:17,719 --> 00:24:21,989 Suze: owe any taxes on that transfer or on that rollover, 375 00:24:22,560 --> 00:24:26,468 Suze: Then little by little start to convert it 376 00:24:27,390 --> 00:24:34,520 Suze: or transfer it to what? A Roth IRA. Just that simple 377 00:24:34,709 --> 00:24:40,079 Suze: in the meantime. However, just know that you're young, I 378 00:24:40,089 --> 00:24:44,219 Suze: would not get conservative at this point in time. 379 00:24:44,500 --> 00:24:48,030 Suze: I think the markets are showing us that they're strong, 380 00:24:48,140 --> 00:24:51,400 Suze: they want to continue to be strong. They may not 381 00:24:51,410 --> 00:24:54,489 Suze: go down this year at all as I was expecting. 382 00:24:54,500 --> 00:24:58,180 Suze: And so were most of the people, they may seriously 383 00:24:58,189 --> 00:25:04,750 Suze: continue up for 2024. And so, so get yourself invested 384 00:25:04,760 --> 00:25:09,680 Suze: into good quality ETFs and or stocks that pay nice 385 00:25:09,689 --> 00:25:12,959 Suze: dividends so that they're paying you a dividend even if 386 00:25:12,969 --> 00:25:14,290 Suze: the market goes down 387 00:25:14,599 --> 00:25:20,469 Suze: and you should be just fine. Do not and I repeat, 388 00:25:20,479 --> 00:25:26,170 Suze: do not even think about cash value life insurance. 389 00:25:26,439 --> 00:25:28,449 Suze: KT, is that everything for you? 390 00:25:28,719 --> 00:25:29,369 Suze: That's it Suze. 391 00:25:29,459 --> 00:25:32,239 Suze: Now, KT, we kind of did a little quizie at the 392 00:25:32,250 --> 00:25:35,510 Suze: beginning of this. Do you want another quizzie or have 393 00:25:35,520 --> 00:25:36,169 Suze: you had enough? 394 00:25:36,280 --> 00:25:37,510 KT: I've had enough. 395 00:25:37,579 --> 00:25:40,599 Suze: You have, you don't want another quizzie that I have 396 00:25:40,609 --> 00:25:42,829 Suze: right here. Since you stole one of my quizzies. 397 00:25:43,349 --> 00:25:46,150 KT: We'll wait, we'll wait. We'll do another one next, we'll 398 00:25:46,160 --> 00:25:48,130 KT: do maybe a couple of them next week. 399 00:25:48,449 --> 00:25:50,290 Suze: Oh, my goodness, listen to that... 400 00:25:50,560 --> 00:25:52,429 KT: Maybe we'll do a quiz day. 401 00:25:52,469 --> 00:25:53,448 Suze: A quizzie day? 402 00:25:54,180 --> 00:25:55,448 KT: That would be interesting... 403 00:25:55,459 --> 00:25:57,500 Suze: Because you know what happens to everybody when we do 404 00:25:57,510 --> 00:25:59,589 Suze: a quizzie? KT gets queasy. 405 00:25:59,699 --> 00:26:03,510 KT: No, you get... no Suze, you're so corny. I don't 406 00:26:03,520 --> 00:26:07,709 KT: get queasy. You should read, you get to read them all. 407 00:26:08,109 --> 00:26:10,010 KT: You get to do the hard work and I get 408 00:26:10,020 --> 00:26:10,660 KT: to answer. 409 00:26:10,670 --> 00:26:15,560 Suze: No. People love to hear your voice. They don't necessarily 410 00:26:15,569 --> 00:26:17,410 Suze: love to hear mine. Although 411 00:26:17,939 --> 00:26:21,250 Suze: I do have to say somehow I was listening to 412 00:26:21,260 --> 00:26:24,150 Suze: some talk that I gave years ago. 413 00:26:24,420 --> 00:26:28,390 Suze: I actually can't believe how low my voice is in comparison. 414 00:26:28,780 --> 00:26:30,430 KT: You mean now, as you're older? 415 00:26:30,630 --> 00:26:32,650 Suze: Well, no ever since I had the surgery. 416 00:26:32,930 --> 00:26:35,819 KT: Yeah, it's got, your vocal cords are very low. 417 00:26:35,829 --> 00:26:37,310 Suze: I don't even know if people know I had a 418 00:26:37,319 --> 00:26:41,300 Suze: surgery about that, but that's a whole nother story. Everybody 419 00:26:41,310 --> 00:26:46,189 Suze: I had quite the year this year and last. All right. Anyway, 420 00:26:46,199 --> 00:26:50,260 Suze: so since Miss Queasy doesn't want to do a quizzie 421 00:26:51,150 --> 00:26:54,459 Suze: that will bring us to the end of another edition 422 00:26:54,469 --> 00:27:00,639 Suze: of the Ask KT and Suze Anything podcast. This coming Sunday, 423 00:27:01,400 --> 00:27:05,890 Suze: I think I'm gonna do a very very different Suze 424 00:27:05,900 --> 00:27:10,119 Suze: school than I've ever done before. And so you're just 425 00:27:10,130 --> 00:27:11,209 Suze: gonna have to tune in. 426 00:27:11,219 --> 00:27:11,849 KT: What is it? 427 00:27:11,859 --> 00:27:13,050 Suze: I'm not gonna tell you. 428 00:27:13,060 --> 00:27:16,319 KT: Well, what's so different about what you've never done before? 429 00:27:17,010 --> 00:27:19,550 Suze: I'm going to give them advice that I've actually never 430 00:27:19,560 --> 00:27:21,290 Suze: given them before. Really. 431 00:27:21,560 --> 00:27:23,010 KT: On what topic? 432 00:27:23,020 --> 00:27:23,959 Suze: Investing. 433 00:27:26,849 --> 00:27:31,780 KT: She's, she doesn't usually do that. She never does that actually. 434 00:27:31,790 --> 00:27:34,219 Suze: Well, no, that's what this whole podcast is about, but 435 00:27:34,390 --> 00:27:40,869 Suze: more specifically what to actually invest in. 436 00:27:41,250 --> 00:27:42,780 KT: I don't want to miss that one. 437 00:27:42,979 --> 00:27:46,260 Suze: Right. And where that advice can come from. 438 00:27:47,170 --> 00:27:53,369 Suze: It's mysterious anyway, until then there's only one thing that 439 00:27:53,380 --> 00:27:58,659 Suze: we want you to say every single day. And it's this: today, 440 00:27:58,670 --> 00:28:03,619 Suze: wherever I go, I will create a more joyful, peaceful 441 00:28:03,630 --> 00:28:08,149 Suze: and loving world. And if you do that, we promise 442 00:28:08,160 --> 00:28:12,050 Suze: you you will be unstoppable. 443 00:28:17,510 --> 00:28:18,510 Music: Music (out).