1 00:00:33,940 --> 00:00:41,159 Suze: May 1, 2022 now, before I begin today's podcast, I 2 00:00:41,159 --> 00:00:43,769 Suze: just have to say to Sophia Race 3 00:00:45,640 --> 00:00:50,560 Suze: my niece who I love more than life itself 4 00:00:51,040 --> 00:00:55,260 Suze: graduated yesterday from The University of Michigan 5 00:00:56,040 --> 00:00:57,560 Suze: and you know Sophia, 6 00:00:58,540 --> 00:01:01,660 Suze: I know you graduated with honors, I know you've had 7 00:01:01,670 --> 00:01:03,760 Suze: a stellar four years there, 8 00:01:04,240 --> 00:01:06,959 Suze: but that's not exactly why I'm so proud of you, 9 00:01:07,640 --> 00:01:11,260 Suze: I'm proud of you because of who you are, 10 00:01:12,140 --> 00:01:13,760 Suze: because you have learned 11 00:01:14,140 --> 00:01:16,660 Suze: over these past four years 12 00:01:17,240 --> 00:01:21,350 Suze: to trust yourself more than you trust others. 13 00:01:22,240 --> 00:01:23,950 Suze: And that is a theme 14 00:01:24,390 --> 00:01:27,060 Suze: that I have talked about on this podcast 15 00:01:27,640 --> 00:01:32,380 Suze: for almost three years now and you have embodied that 16 00:01:32,490 --> 00:01:34,360 Suze: at this point in time 17 00:01:34,940 --> 00:01:39,029 Suze: and for that one reason and one reason only right 18 00:01:39,030 --> 00:01:39,460 Suze: now 19 00:01:40,040 --> 00:01:42,350 Suze: I am so proud of you 20 00:01:42,940 --> 00:01:45,959 Suze: but I'm also, everybody, talking about this 21 00:01:46,340 --> 00:01:49,960 Suze: because KT and I both watched Sophia 22 00:01:50,540 --> 00:01:52,060 Suze: at her graduation, 23 00:01:52,540 --> 00:01:54,760 Suze: watched it streaming yesterday. 24 00:01:55,340 --> 00:01:57,020 Suze: Actually we couldn't see her because there were so many 25 00:01:57,020 --> 00:01:59,150 Suze: people but that's besides the point 26 00:01:59,740 --> 00:02:03,059 Suze: and the speaker was Maria Shriver 27 00:02:03,540 --> 00:02:05,060 Suze: the commencement speaker. 28 00:02:05,840 --> 00:02:07,460 Suze: and if any of you 29 00:02:07,940 --> 00:02:09,160 Suze: are lucky enough 30 00:02:09,540 --> 00:02:14,220 Suze: to have ever heard Maria Shriver speak, you know that 31 00:02:14,220 --> 00:02:15,860 Suze: she is one of the best 32 00:02:16,639 --> 00:02:17,559 Suze: speakers 33 00:02:18,040 --> 00:02:22,160 Suze: ever in the entire world and I do not say 34 00:02:22,160 --> 00:02:25,840 Suze: that lightly, I had the great good fortune of being 35 00:02:25,840 --> 00:02:28,769 Suze: able to be on stage with her many times in 36 00:02:28,770 --> 00:02:29,860 Suze: California 37 00:02:30,340 --> 00:02:32,950 Suze: where she would give these huge events 38 00:02:33,540 --> 00:02:37,330 Suze: mainly for women and they were over the top. Great 39 00:02:37,330 --> 00:02:41,750 Suze: but the best part of the event was always Maria's 40 00:02:41,760 --> 00:02:42,560 Suze: talk 41 00:02:43,540 --> 00:02:44,649 Suze: and yesterday 42 00:02:45,040 --> 00:02:47,650 Suze: she gave one of the more incredible 43 00:02:48,040 --> 00:02:50,350 Suze: speeches I have ever heard. 44 00:02:50,840 --> 00:02:53,560 Suze: The reason that I'm telling you all this 45 00:02:54,139 --> 00:02:57,160 Suze: is because while I know she gave it 46 00:02:57,740 --> 00:02:59,450 Suze: to all the graduates 47 00:02:59,940 --> 00:03:02,160 Suze: of the year 2022, 48 00:03:02,540 --> 00:03:05,820 Suze: the truth of the matter is every single one of 49 00:03:05,830 --> 00:03:07,460 Suze: us needs to hear it 50 00:03:07,940 --> 00:03:11,600 Suze: because it wasn't just about go on and go forth 51 00:03:11,600 --> 00:03:13,860 Suze: and do this and do that and be great and 52 00:03:13,860 --> 00:03:17,150 Suze: make this world great. It was about reality. 53 00:03:17,840 --> 00:03:20,530 Suze: It was about the stuff that you never want to 54 00:03:20,530 --> 00:03:22,760 Suze: talk about that you go through 55 00:03:23,139 --> 00:03:25,609 Suze: and how you have to stand in your truth and 56 00:03:25,610 --> 00:03:29,160 Suze: you have to have courage and it's okay to fail 57 00:03:30,340 --> 00:03:34,250 Suze: and what all of those things do for you during 58 00:03:34,250 --> 00:03:35,050 Suze: your life. 59 00:03:35,610 --> 00:03:37,850 Suze: And the reason that I think 60 00:03:38,240 --> 00:03:40,490 Suze: that a lot of you, if you could find it 61 00:03:40,490 --> 00:03:46,140 Suze: streaming would absolutely benefit from it is because I benefited 62 00:03:46,140 --> 00:03:46,760 Suze: from it. 63 00:03:47,340 --> 00:03:50,910 Suze: I learned about fear again. Now I know I talked 64 00:03:50,910 --> 00:03:54,059 Suze: to you all about you gotta face your fears. 65 00:03:55,340 --> 00:03:58,850 Suze: But there was something about her talk yesterday 66 00:03:59,640 --> 00:04:04,410 Suze: that put me smack up in front of the fears 67 00:04:04,690 --> 00:04:07,460 Suze: that I haven't been willing to face 68 00:04:08,040 --> 00:04:10,900 Suze: the fears such as... and it's okay if I share 69 00:04:10,900 --> 00:04:11,850 Suze: this with all of you, 70 00:04:12,240 --> 00:04:14,360 Suze: is it with all of you? I hope so. 71 00:04:14,740 --> 00:04:16,150 Suze: I've been afraid 72 00:04:16,600 --> 00:04:18,250 Suze: to get on a stage and speak. 73 00:04:18,839 --> 00:04:21,980 Suze: I've been invited to do so now many times and 74 00:04:21,980 --> 00:04:25,260 Suze: I've made up an excuse because I don't think 75 00:04:25,740 --> 00:04:27,450 Suze: I have what it takes anymore 76 00:04:27,839 --> 00:04:30,570 Suze: because of all the illnesses that I've been through over 77 00:04:30,570 --> 00:04:33,870 Suze: the past two years and everything I am afraid to 78 00:04:33,880 --> 00:04:34,860 Suze: do that. 79 00:04:36,040 --> 00:04:40,910 Suze: I'm just afraid. And it's like Suze Orman you have 80 00:04:40,910 --> 00:04:44,339 Suze: walked on that stage and you have spoken in front 81 00:04:44,339 --> 00:04:46,560 Suze: of 200,000 people 82 00:04:47,640 --> 00:04:49,950 Suze: and you couldn't wait to get on that stage 83 00:04:50,940 --> 00:04:52,860 Suze: and now you're afraid. 84 00:04:54,540 --> 00:04:57,780 Suze: And the truth is I am and I have to 85 00:04:57,779 --> 00:04:59,850 Suze: face that fear 86 00:05:00,440 --> 00:05:02,360 Suze: and Maria's talk yesterday 87 00:05:02,940 --> 00:05:06,300 Suze: really centered me in that there's work I need to 88 00:05:06,300 --> 00:05:10,430 Suze: do in my life as well. So if you feel 89 00:05:10,660 --> 00:05:13,910 Suze: that there's work that you need to do in your 90 00:05:13,910 --> 00:05:14,360 Suze: life 91 00:05:14,940 --> 00:05:16,460 Suze: on any level, 92 00:05:17,640 --> 00:05:18,680 Suze: I'm telling you, 93 00:05:19,140 --> 00:05:22,160 Suze: you've got to look up her talk and listen to it. 94 00:05:23,040 --> 00:05:25,460 Suze: But you're listening to me today 95 00:05:26,240 --> 00:05:27,650 Suze: probably because 96 00:05:28,140 --> 00:05:29,960 Suze: you need to know what to do. 97 00:05:30,640 --> 00:05:32,050 Suze: You need to know 98 00:05:32,440 --> 00:05:35,650 Suze: everything that you're afraid about right now. 99 00:05:36,140 --> 00:05:39,590 Suze: You're most likely afraid when it comes to investing. Should 100 00:05:39,589 --> 00:05:42,560 Suze: you buy, should you sell what should you do? Should 101 00:05:42,560 --> 00:05:44,650 Suze: you buy a home? Should you not buy a home? 102 00:05:44,650 --> 00:05:47,210 Suze: Should you sell the home that you have, should you 103 00:05:47,210 --> 00:05:50,020 Suze: refinance and get some of the cash out of your 104 00:05:50,020 --> 00:05:50,560 Suze: home 105 00:05:51,290 --> 00:05:54,360 Suze: in case real estate prices happened to go down 106 00:05:54,740 --> 00:05:58,599 Suze: where's the best place to put cash you just inherited 107 00:05:58,600 --> 00:06:01,010 Suze: a lot of money and you know, you don't even 108 00:06:01,010 --> 00:06:02,260 Suze: know what to do with it 109 00:06:03,040 --> 00:06:06,110 Suze: in a 529 plan. Should you keep the money invested 110 00:06:06,120 --> 00:06:08,740 Suze: and safe for your kids, college educations or go to 111 00:06:08,740 --> 00:06:09,550 Suze: cash there. 112 00:06:10,440 --> 00:06:13,560 Suze: So many of you are still even confused about I 113 00:06:13,560 --> 00:06:16,780 Suze: Bonds and in terms of the beneficiary options that you 114 00:06:16,779 --> 00:06:20,360 Suze: have and you just need to know what to do. 115 00:06:20,740 --> 00:06:21,960 Suze: Now, obviously 116 00:06:22,540 --> 00:06:26,240 Suze: There's no way in a 30 minute podcast given that 117 00:06:26,240 --> 00:06:28,480 Suze: I've taken up so much of it with other stuff 118 00:06:28,480 --> 00:06:29,050 Suze: already 119 00:06:29,540 --> 00:06:33,760 Suze: that I could answer all of these questions for you. 120 00:06:34,940 --> 00:06:37,849 Suze: But the truth of the matter is I've been answering 121 00:06:37,850 --> 00:06:43,659 Suze: them little by little on every single podcast in some form, 122 00:06:44,540 --> 00:06:46,460 Suze: so keep listening 123 00:06:47,040 --> 00:06:50,050 Suze: and we'll see where things go. But you know my 124 00:06:50,050 --> 00:06:53,160 Suze: thoughts on who should be invested in the market, what 125 00:06:53,160 --> 00:06:55,560 Suze: you should be doing. I've said all of it time 126 00:06:55,570 --> 00:06:58,050 Suze: and time again in past podcasts. 127 00:06:58,740 --> 00:07:00,150 Suze: But the one topic 128 00:07:00,640 --> 00:07:02,850 Suze: that I really want to address today 129 00:07:03,540 --> 00:07:05,539 Suze: has to do with cash. 130 00:07:06,140 --> 00:07:08,060 Suze: One thing that I have noticed 131 00:07:08,440 --> 00:07:12,850 Suze: is that your'e emailing me and you're saying the following 132 00:07:13,440 --> 00:07:18,090 Suze: Suze, I just sold my business for $850,000. I don't 133 00:07:18,090 --> 00:07:19,650 Suze: want to put it in the stock market. 134 00:07:20,540 --> 00:07:21,650 Suze: What should I do with it? 135 00:07:22,440 --> 00:07:26,720 Suze: You're saying to me Suze, I just inherited a lot 136 00:07:26,720 --> 00:07:27,260 Suze: of money. 137 00:07:27,940 --> 00:07:29,760 Suze: Maybe It's $1 million dollars 138 00:07:30,140 --> 00:07:32,670 Suze: And I just want to keep it in a credit 139 00:07:32,670 --> 00:07:37,070 Suze: union and or a bank, but it's only insured to 250,000. 140 00:07:37,080 --> 00:07:38,860 Suze: What can I do? 141 00:07:39,540 --> 00:07:42,550 Suze: And you want to make sure that your money is 142 00:07:42,560 --> 00:07:47,150 Suze: absolutely safe and sound. You want it liquid. You do not 143 00:07:47,150 --> 00:07:49,950 Suze: want to tie it up at all. You don't want 144 00:07:49,950 --> 00:07:52,340 Suze: to tie it up for a year, six months. You 145 00:07:52,340 --> 00:07:53,660 Suze: just want to know 146 00:07:54,040 --> 00:07:56,630 Suze: that it's there for you and that you can do 147 00:07:56,630 --> 00:07:59,760 Suze: whatever you want with it when you want to do 148 00:07:59,760 --> 00:08:00,660 Suze: something with it. 149 00:08:01,540 --> 00:08:04,360 Suze: And therefore your only option 150 00:08:04,940 --> 00:08:08,560 Suze: is a savings account, so to speak. Your simple options. 151 00:08:09,140 --> 00:08:09,560 Suze: So 152 00:08:10,140 --> 00:08:14,450 Suze: I want to talk to you today about how you 153 00:08:14,460 --> 00:08:15,750 Suze: increase 154 00:08:16,140 --> 00:08:17,660 Suze: the insurance 155 00:08:18,640 --> 00:08:23,560 Suze: on your credit unions and FDIC accounts 156 00:08:24,340 --> 00:08:29,160 Suze: Above the $250,000 limit. 157 00:08:30,440 --> 00:08:30,950 Suze: So 158 00:08:31,440 --> 00:08:32,550 Suze: many of you 159 00:08:32,940 --> 00:08:33,860 Suze: write me 160 00:08:34,240 --> 00:08:37,230 Suze: And you worry me people you're worrying me. You tell 161 00:08:37,230 --> 00:08:42,100 Suze: me that you opened up an account for $400,000 at 162 00:08:42,110 --> 00:08:43,559 Suze: Alliant Credit Union 163 00:08:44,160 --> 00:08:47,750 Suze: in order to get the .60% interest rates. So recently 164 00:08:47,750 --> 00:08:49,250 Suze: you just did this okay. 165 00:08:50,040 --> 00:08:53,300 Suze: And I write you back and I say well how 166 00:08:53,300 --> 00:08:56,660 Suze: did you take title to that account? Because insurance 167 00:08:57,140 --> 00:09:00,559 Suze: at a credit union is only $250,000. 168 00:09:01,140 --> 00:09:05,360 Suze: And then you give me an answer where you say 169 00:09:05,840 --> 00:09:09,069 Suze: oh it's okay I made it a pay on death 170 00:09:09,080 --> 00:09:09,760 Suze: account 171 00:09:10,240 --> 00:09:11,459 Suze: to my son. 172 00:09:11,840 --> 00:09:17,360 Suze: So my son gets $250,000 of insurance. And I get $250,000. 173 00:09:17,840 --> 00:09:20,959 Suze: And I write you back I go no you don't 174 00:09:21,540 --> 00:09:23,960 Suze: you don't figure it that way. 175 00:09:24,640 --> 00:09:27,790 Suze: And it wasn't just one email like this, it was many. 176 00:09:28,030 --> 00:09:30,059 Suze: So today Suze School 177 00:09:30,740 --> 00:09:37,150 Suze: is about, how do you use NCUA or FDIC Insurance, 178 00:09:37,160 --> 00:09:39,860 Suze: absolutely correctly. 179 00:09:41,140 --> 00:09:43,960 Suze: And how do you increase the amounts 180 00:09:44,540 --> 00:09:47,960 Suze: If you have more than $250,000 181 00:09:48,840 --> 00:09:50,460 Suze: at an institution? 182 00:09:51,840 --> 00:09:54,150 Suze: But let's first start with 183 00:09:54,540 --> 00:10:00,310 Suze: what is NCUA? What is FDIC? Because the truth of 184 00:10:00,309 --> 00:10:02,840 Suze: the matter is many of you don't know and you 185 00:10:02,840 --> 00:10:05,290 Suze: shouldn't feel bad about it. I have a feeling that 186 00:10:05,290 --> 00:10:07,969 Suze: if KT was sitting next to me today and I 187 00:10:07,970 --> 00:10:11,630 Suze: said what are those things stand for KT, she might go, 188 00:10:11,640 --> 00:10:12,450 Suze: I don't know. 189 00:10:13,040 --> 00:10:14,150 Suze: I know, I should know, 190 00:10:14,640 --> 00:10:17,819 Suze: I know that I'm insured for 250,000, but I don't 191 00:10:17,820 --> 00:10:19,050 Suze: know about them. 192 00:10:19,840 --> 00:10:22,960 Suze: Alright, so let's begin our Suze School 193 00:10:23,840 --> 00:10:26,059 Suze: Back in 1933 194 00:10:26,940 --> 00:10:28,950 Suze: during the Great Depression. 195 00:10:29,340 --> 00:10:31,559 Suze: Many banks failed 196 00:10:32,640 --> 00:10:37,420 Suze: and people lost their money and after they lost their money, 197 00:10:37,420 --> 00:10:38,160 Suze: guess what? 198 00:10:38,740 --> 00:10:43,100 Suze: They did not want to put their money into banks anymore. 199 00:10:43,110 --> 00:10:45,160 Suze: And you really you can't blame them. 200 00:10:46,140 --> 00:10:46,760 Suze: So 201 00:10:47,140 --> 00:10:51,460 Suze: the government decided in order to create confidence 202 00:10:51,840 --> 00:10:55,800 Suze: in the consumers and the depositors that they would create, 203 00:10:55,800 --> 00:10:56,850 Suze: what was called 204 00:10:57,440 --> 00:11:00,559 Suze: the Federal deposit insurance corporation 205 00:11:01,140 --> 00:11:02,130 Suze: short FDIC. 206 00:11:04,140 --> 00:11:08,860 Suze: And that this would ensure people's deposits up to a 207 00:11:08,860 --> 00:11:13,160 Suze: certain amount. So if in fact the banks failed, 208 00:11:13,920 --> 00:11:19,050 Suze: the depositors who had insured deposits. So you only had 209 00:11:19,050 --> 00:11:23,079 Suze: that amount in that was insured they would always get 210 00:11:23,090 --> 00:11:24,559 Suze: their money back. 211 00:11:25,240 --> 00:11:29,640 Suze: Now. That amount over the years has increased years ago 212 00:11:29,830 --> 00:11:32,949 Suze: in your times it was like $100,000 213 00:11:33,440 --> 00:11:38,030 Suze: And around 2007 I believe 2008 right in there, they 214 00:11:38,030 --> 00:11:40,959 Suze: increased it to $250,000. 215 00:11:41,840 --> 00:11:44,559 Suze: And that's where it stands today. 216 00:11:45,240 --> 00:11:52,050 Suze: In 1970 I think it was March 1970. Credit unions 217 00:11:52,840 --> 00:11:54,060 Suze: also decided 218 00:11:54,640 --> 00:11:57,219 Suze: to make the members of the credit union for their 219 00:11:57,220 --> 00:11:59,860 Suze: deposits into savings accounts and so forth 220 00:12:00,240 --> 00:12:06,270 Suze: that they would protect them by creating the NCUA. Which 221 00:12:06,270 --> 00:12:10,790 Suze: stands for the National Credit Union Administration. And it is 222 00:12:10,800 --> 00:12:12,860 Suze: exactly the same 223 00:12:13,640 --> 00:12:20,069 Suze: as the FDIC is for banks. The NCUA Protects credit unions. 224 00:12:20,080 --> 00:12:24,030 Suze: So for instance, for those of you who have money 225 00:12:24,040 --> 00:12:27,250 Suze: in Alliant Credit Union and there are a lot of 226 00:12:27,250 --> 00:12:28,059 Suze: you out there 227 00:12:28,440 --> 00:12:33,510 Suze: That have absolutely taken advantage of the Alliant credit $100 228 00:12:33,510 --> 00:12:34,650 Suze: bonus offer. 229 00:12:35,940 --> 00:12:39,959 Suze: You are insured exactly the same way the same amounts 230 00:12:39,960 --> 00:12:44,459 Suze: of money as a bank with FDIC Insurance. 231 00:12:45,140 --> 00:12:45,650 Suze: Now 232 00:12:46,100 --> 00:12:49,960 Suze: there are some things that insurance covers 233 00:12:50,540 --> 00:12:54,050 Suze: and then there are some things that it does not cover. 234 00:12:54,640 --> 00:13:00,940 Suze: So both FDIC and NCUA covers things like your checking accounts, 235 00:13:00,960 --> 00:13:05,930 Suze: your money market accounts, your savings accounts, your CDs, things 236 00:13:05,929 --> 00:13:06,660 Suze: like that 237 00:13:07,440 --> 00:13:09,260 Suze: now. Just know this 238 00:13:09,740 --> 00:13:13,780 Suze: even though you could possibly have Treasury bills, bonds and 239 00:13:13,780 --> 00:13:17,530 Suze: notes within an institution like that. The truth of the 240 00:13:17,530 --> 00:13:23,689 Suze: matter is FDIC Insurance, NCUA . Insurance does not cover 241 00:13:23,700 --> 00:13:25,959 Suze: Treasury bill bonds and notes. 242 00:13:26,340 --> 00:13:30,099 Suze: And that is because they're guaranteed by the taxing authority 243 00:13:30,110 --> 00:13:34,510 Suze: of the United States government. So they're insured that way 244 00:13:34,510 --> 00:13:36,410 Suze: but not under NCUA or FDIC. 245 00:13:39,740 --> 00:13:41,360 Suze: What does 246 00:13:41,740 --> 00:13:46,960 Suze: that Insurance? FDIC or NCUA Insurance not cover? 247 00:13:47,740 --> 00:13:49,260 Suze: it does not cover 248 00:13:49,840 --> 00:13:51,060 Suze: annuities, 249 00:13:51,440 --> 00:13:54,570 Suze: the money that you have in stocks or exchange traded 250 00:13:54,570 --> 00:14:00,140 Suze: funds or bonds or mutual funds or life insurance policies. 251 00:14:00,190 --> 00:14:04,219 Suze: It does not cover you if you have, let's say 252 00:14:04,230 --> 00:14:09,460 Suze: a safe deposit box at a financial institution and you 253 00:14:09,460 --> 00:14:09,860 Suze: have 254 00:14:09,940 --> 00:14:13,959 Suze: cash in it or whatever it is not covered. 255 00:14:14,840 --> 00:14:18,189 Suze: So you need to know that if let's say at 256 00:14:18,190 --> 00:14:18,949 Suze: a bank 257 00:14:19,340 --> 00:14:22,510 Suze: or at a credit union you've decided to buy some 258 00:14:22,510 --> 00:14:23,150 Suze: stock 259 00:14:23,940 --> 00:14:28,090 Suze: and that stock goes down considerably or goes belly up. 260 00:14:28,100 --> 00:14:34,690 Suze: You are not insured under the NCUA or FDIC limits. 261 00:14:34,810 --> 00:14:36,360 Suze: Do we have that? Everybody 262 00:14:37,240 --> 00:14:38,350 Suze: Alright next. 263 00:14:39,240 --> 00:14:41,930 Suze: Are you all taking notes? You should all take notes. 264 00:14:42,440 --> 00:14:44,410 Suze: I find it kind of difficult and I'm trying to 265 00:14:44,410 --> 00:14:46,440 Suze: figure out a new system for all of you by 266 00:14:46,440 --> 00:14:49,880 Suze: the way where if you're looking for something, you can 267 00:14:49,880 --> 00:14:51,260 Suze: find it easily 268 00:14:51,740 --> 00:14:55,660 Suze: and where the transcripts are easier to read as well 269 00:14:56,040 --> 00:14:59,460 Suze: because I just think that you should have it be easier. 270 00:15:00,140 --> 00:15:03,380 Suze: And so I'm trying to solve that problem. It's difficult 271 00:15:03,380 --> 00:15:06,470 Suze: for some reason. I don't quite understand why but I 272 00:15:06,470 --> 00:15:09,500 Suze: am working on it just so you know. But in 273 00:15:09,500 --> 00:15:13,530 Suze: the meantime you should take notes. So you don't necessarily 274 00:15:13,530 --> 00:15:17,110 Suze: have to look back and find it or write down 275 00:15:17,110 --> 00:15:17,960 Suze: the date 276 00:15:18,740 --> 00:15:20,450 Suze: of the podcast 277 00:15:20,840 --> 00:15:23,360 Suze: that you really might want to revisit. 278 00:15:23,940 --> 00:15:27,660 Suze: Right? So again the April 17 podcast 279 00:15:28,040 --> 00:15:30,650 Suze: on I Bonds a lot of you are revisiting it. 280 00:15:31,040 --> 00:15:35,820 Suze: The February 6th podcast on the five year withdrawal rules 281 00:15:35,820 --> 00:15:39,240 Suze: for Roth IRAs, a lot of you want to revisit it. 282 00:15:39,250 --> 00:15:42,820 Suze: So you may want to put down may 1st 2000 283 00:15:42,820 --> 00:15:47,720 Suze: and 22 for FDIC or NCUA Insurance if you ever want to 284 00:15:47,720 --> 00:15:48,460 Suze: revisit it. 285 00:15:49,040 --> 00:15:51,760 Suze: So how does it work? 286 00:15:53,050 --> 00:15:58,150 Suze: It works where you get $250,000 of insurance 287 00:15:59,040 --> 00:16:00,750 Suze: per depositor 288 00:16:01,240 --> 00:16:02,650 Suze: or owner. 289 00:16:03,740 --> 00:16:07,160 Suze: You also get $250,000 290 00:16:07,640 --> 00:16:09,460 Suze: per institution 291 00:16:10,040 --> 00:16:11,260 Suze: or 292 00:16:11,840 --> 00:16:17,360 Suze: You get $250,000 per ownership category. 293 00:16:18,040 --> 00:16:21,060 Suze: So let's just do first per institution. 294 00:16:22,140 --> 00:16:27,360 Suze: Let's say you have $250,000 in bank A. 295 00:16:28,740 --> 00:16:31,050 Suze: And you also 296 00:16:31,640 --> 00:16:34,560 Suze: at a different branch of bank A. 297 00:16:35,440 --> 00:16:40,250 Suze: So you have $250,000 in bank A. In one branch, 298 00:16:40,260 --> 00:16:46,030 Suze: $250,000 in bank A. But it's a different branch and 299 00:16:46,030 --> 00:16:48,160 Suze: you think that you are insured. 300 00:16:49,140 --> 00:16:50,360 Suze: You are not, 301 00:16:51,040 --> 00:16:55,150 Suze: it does not matter how many branches you have 302 00:16:56,140 --> 00:16:58,570 Suze: if it is the same institution. 303 00:16:58,940 --> 00:17:03,310 Suze: So all of those branches are bank A. You only 304 00:17:03,310 --> 00:17:07,460 Suze: are insured for $250,000. 305 00:17:08,140 --> 00:17:09,060 Suze: However, 306 00:17:09,640 --> 00:17:12,850 Suze: If you had $250,000 307 00:17:13,640 --> 00:17:19,220 Suze: Or less obviously in bank A. You had $250,000 in 308 00:17:19,220 --> 00:17:20,360 Suze: bank B. 309 00:17:21,340 --> 00:17:22,659 Suze: You are insured 310 00:17:23,040 --> 00:17:27,720 Suze: for both of those institutions. So as long as the 311 00:17:27,730 --> 00:17:30,060 Suze: institutions are different, 312 00:17:30,940 --> 00:17:32,050 Suze: you have insurance. 313 00:17:32,440 --> 00:17:36,220 Suze: If you have different branches under the same institution, 314 00:17:37,040 --> 00:17:39,260 Suze: Over $250,000 315 00:17:40,340 --> 00:17:43,669 Suze: per depositor, you are not insured. 316 00:17:44,240 --> 00:17:47,560 Suze: So that is something you should know about. However, 317 00:17:48,540 --> 00:17:51,860 Suze: another way that you can get more insurance 318 00:17:52,740 --> 00:17:56,270 Suze: is it depends on how you take title to the 319 00:17:56,270 --> 00:17:59,669 Suze: account at the same institution. 320 00:18:00,040 --> 00:18:03,590 Suze: Let's say you love this one bank or credit union 321 00:18:03,590 --> 00:18:04,560 Suze: that you're dealing with 322 00:18:05,240 --> 00:18:08,060 Suze: and you want your money there. You have a good 323 00:18:08,060 --> 00:18:10,850 Suze: relationship with them. That's where you want to be. 324 00:18:11,740 --> 00:18:15,159 Suze: All right, you can open up a single account 325 00:18:15,540 --> 00:18:18,379 Suze: just in your name. You can open up a joint 326 00:18:18,380 --> 00:18:18,960 Suze: account 327 00:18:19,340 --> 00:18:20,860 Suze: for Suze and KT. 328 00:18:21,240 --> 00:18:23,550 Suze: You can open up a trust account 329 00:18:24,040 --> 00:18:28,450 Suze: which would be Suze trustee for the Suze Orman Living Trust. 330 00:18:29,140 --> 00:18:34,110 Suze: You could open up certain retirement accounts, certain corporation accounts 331 00:18:34,119 --> 00:18:39,060 Suze: and each one of those is an ownership category. 332 00:18:39,740 --> 00:18:40,270 Suze: So 333 00:18:40,740 --> 00:18:41,760 Suze: Suze 334 00:18:42,140 --> 00:18:45,260 Suze: has $250,000 335 00:18:46,240 --> 00:18:47,350 Suze: in an account. 336 00:18:48,040 --> 00:18:49,060 Suze: I am insured. 337 00:18:49,940 --> 00:18:56,450 Suze: I have another $250,000 in a joint account with KT. 338 00:18:57,540 --> 00:19:02,060 Suze: Now I'm insured up to $500,000. 339 00:19:02,940 --> 00:19:03,560 Suze: Next 340 00:19:03,940 --> 00:19:07,060 Suze: because I just want you to be really clear about this. 341 00:19:07,520 --> 00:19:11,160 Suze: Let's say I have an individual account 342 00:19:11,740 --> 00:19:14,669 Suze: With $250,000 in it 343 00:19:15,340 --> 00:19:16,660 Suze: at a credit union. 344 00:19:17,640 --> 00:19:23,910 Suze: And KT has an individual account with $250,000 in it. 345 00:19:23,920 --> 00:19:26,670 Suze: At the exact same credit union 346 00:19:27,440 --> 00:19:32,859 Suze: we also have at that credit union a joint account 347 00:19:34,040 --> 00:19:37,760 Suze: With $500,000 in it. 348 00:19:38,540 --> 00:19:39,859 Suze: So together 349 00:19:40,540 --> 00:19:46,660 Suze: We have almost $1 million dollars in this credit union. 350 00:19:47,240 --> 00:19:52,050 Suze: 250,000 for me and one account. 250,000 for KT in 351 00:19:52,050 --> 00:19:52,960 Suze: another account 352 00:19:53,340 --> 00:19:55,950 Suze: And 500,000 in a joint account. 353 00:19:57,140 --> 00:20:00,170 Suze: But each one of us under 354 00:20:01,690 --> 00:20:08,160 Suze: NCUA insurance. We are each insured for $500,000. 355 00:20:08,740 --> 00:20:15,060 Suze: Do you see how we've increased the $250,000 insurance limit? 356 00:20:15,910 --> 00:20:18,060 Suze: Then there could be a trust account 357 00:20:18,440 --> 00:20:21,930 Suze: and we can go on and on. So depending on 358 00:20:21,930 --> 00:20:23,859 Suze: the ownership category, 359 00:20:24,340 --> 00:20:29,949 Suze: Your name carries with it $250,000 max of insurance 360 00:20:31,440 --> 00:20:35,360 Suze: depending on how you take title to something. 361 00:20:36,340 --> 00:20:40,110 Suze: So that's another way for you to get more than 362 00:20:40,109 --> 00:20:42,960 Suze: $250,000 of insurance 363 00:20:43,440 --> 00:20:44,760 Suze: at one institution. 364 00:20:45,640 --> 00:20:48,460 Suze: Another way that you can do it 365 00:20:49,140 --> 00:20:52,949 Suze: is through a pay on death account 366 00:20:53,740 --> 00:20:57,850 Suze: or if you open it up in your trust account. 367 00:20:58,440 --> 00:21:01,560 Suze: So your beneficiaries of that trust account 368 00:21:02,440 --> 00:21:05,260 Suze: can create more insurance for you as well. 369 00:21:06,040 --> 00:21:07,860 Suze: So I'll give you an example. 370 00:21:08,540 --> 00:21:09,949 Suze: I opened up an account 371 00:21:10,540 --> 00:21:11,050 Suze: at 372 00:21:11,540 --> 00:21:14,660 Suze: Alliant Credit Union in just my name 373 00:21:15,340 --> 00:21:18,850 Suze: and on my pay on death 374 00:21:19,540 --> 00:21:21,270 Suze: I list KT 375 00:21:22,140 --> 00:21:25,260 Suze: and I list Lynn. Her twin sister 376 00:21:26,540 --> 00:21:31,960 Suze: when I have listed, listen closely, two beneficiaries 377 00:21:33,340 --> 00:21:42,109 Suze: then I have $500,000 of FDIC or NCUA Insurance on 378 00:21:42,109 --> 00:21:44,170 Suze: that one account. 379 00:21:45,240 --> 00:21:47,550 Suze: Now you may be thinking but Suze, 380 00:21:47,940 --> 00:21:51,560 Suze: Why don't you have $750,000 381 00:21:52,140 --> 00:21:56,060 Suze: Of Insurance. 250,000 for you. 382 00:21:56,640 --> 00:21:58,460 Suze: 2 50 for KT 383 00:21:58,840 --> 00:22:02,560 Suze: 2 50 for Lynn. Because it doesn't work that way. 384 00:22:03,040 --> 00:22:05,050 Suze: So a simple way 385 00:22:05,540 --> 00:22:09,669 Suze: for you to understand what your actual coverage would be. 386 00:22:09,750 --> 00:22:12,260 Suze: If you add beneficiaries 387 00:22:12,840 --> 00:22:14,760 Suze: on a pay on death accounts 388 00:22:15,240 --> 00:22:17,459 Suze: that's in your individual name 389 00:22:18,240 --> 00:22:19,350 Suze: would be this. 390 00:22:19,740 --> 00:22:20,669 Suze: I own it. 391 00:22:21,540 --> 00:22:26,060 Suze: And Lynn and KT are my beneficiaries. 392 00:22:27,040 --> 00:22:30,960 Suze: You would times one which means one for you, 393 00:22:31,640 --> 00:22:34,060 Suze: Times your to beneficiaries 394 00:22:34,740 --> 00:22:38,850 Suze: And that equals what 2 1 times two is 2. 395 00:22:39,740 --> 00:22:42,950 Suze: And therefore you would have to, 396 00:22:43,440 --> 00:22:49,760 Suze: times $250,000 for how much FDIC Insurance or NCUA Insurance 397 00:22:49,770 --> 00:22:51,170 Suze: you actually have. 398 00:22:51,740 --> 00:22:55,850 Suze: So in that case it would be $500,000 399 00:22:56,940 --> 00:22:57,860 Suze: again 400 00:22:58,340 --> 00:23:00,050 Suze: if it were just me 401 00:23:00,740 --> 00:23:05,800 Suze: And I only had KT as a beneficiary. You at 402 00:23:05,810 --> 00:23:07,160 Suze: times one 403 00:23:07,540 --> 00:23:08,260 Suze: for me. 404 00:23:09,340 --> 00:23:10,790 Suze: Times one 405 00:23:11,540 --> 00:23:12,770 Suze: beneficiary 406 00:23:13,140 --> 00:23:15,770 Suze: Correct? Which equals one. 407 00:23:16,140 --> 00:23:21,360 Suze: So therefore it's only insured for one $250,000 deposit. 408 00:23:23,140 --> 00:23:27,920 Suze: Now think about this. Maybe you have three kids, four 409 00:23:27,920 --> 00:23:31,660 Suze: kids or more people that you're gonna leave your money to. 410 00:23:32,140 --> 00:23:35,970 Suze: If you had a trust for instance the maximum they're 411 00:23:35,970 --> 00:23:39,670 Suze: going to allow you to do is five beneficiaries. 412 00:23:40,140 --> 00:23:44,190 Suze: So if you named five beneficiaries on a trust account, 413 00:23:45,240 --> 00:23:47,060 Suze: how much insurance would you have 414 00:23:47,640 --> 00:23:51,790 Suze: one for you? Times five. So that's 415 00:23:52,240 --> 00:24:04,060 Suze: five times $250,000. Is $1,250,000 of FDIC or NCUA Insurance. 416 00:24:04,840 --> 00:24:08,859 Suze: If that is in your trust name. Are you following me? 417 00:24:09,640 --> 00:24:13,060 Suze: But let's say you had a single account. 418 00:24:13,560 --> 00:24:15,560 Suze: You had a joint account, 419 00:24:15,940 --> 00:24:17,770 Suze: you had a trust account. 420 00:24:18,640 --> 00:24:22,560 Suze: Each one of those accounts at the same institution 421 00:24:23,240 --> 00:24:28,910 Suze: Qualifies for each of the owners to have $250,000 of 422 00:24:28,920 --> 00:24:32,060 Suze: insurance in every one of those categories. 423 00:24:32,840 --> 00:24:34,850 Suze: Plus the beneficiaries 424 00:24:35,240 --> 00:24:37,840 Suze: that you have or the pay on death? People that 425 00:24:37,840 --> 00:24:38,560 Suze: you've named. 426 00:24:39,440 --> 00:24:43,000 Suze: So do you see how you could have a considerable 427 00:24:43,010 --> 00:24:43,760 Suze: amount 428 00:24:44,140 --> 00:24:47,459 Suze: of FDIC or NCUA Insurance 429 00:24:47,840 --> 00:24:50,660 Suze: At one financial institution 430 00:24:52,140 --> 00:24:55,460 Suze: and have it all be insured. Now 431 00:24:55,840 --> 00:24:58,780 Suze: you may be saying to me oh Suze I'm not 432 00:24:58,780 --> 00:25:01,899 Suze: worried about it. I don't think that the banks are 433 00:25:01,900 --> 00:25:04,640 Suze: going to go under, it's going to be okay. Are 434 00:25:04,640 --> 00:25:05,859 Suze: you positive? 435 00:25:06,540 --> 00:25:08,670 Suze: Are you absolutely positive? 436 00:25:09,040 --> 00:25:13,950 Suze: Yesterday? I spent really the entire day listening to Warren 437 00:25:13,950 --> 00:25:16,300 Suze: Buffett and you all should know who Warren Buffett is, 438 00:25:16,310 --> 00:25:19,170 Suze: address his shareholder meeting 439 00:25:19,840 --> 00:25:24,189 Suze: and he was talking about how he likes cash and 440 00:25:24,190 --> 00:25:26,250 Suze: the reason that he likes cash 441 00:25:26,840 --> 00:25:29,570 Suze: And how he wants to know that his cash is 442 00:25:29,570 --> 00:25:35,610 Suze: absolutely safe and sound. And he then talked about 2007 443 00:25:35,609 --> 00:25:39,350 Suze: and 2008 and how close we absolutely came 444 00:25:40,040 --> 00:25:45,800 Suze: just shutting down this entire economy and people absolutely losing 445 00:25:45,800 --> 00:25:46,159 Suze: it 446 00:25:46,640 --> 00:25:49,060 Suze: with financial institutions. 447 00:25:50,040 --> 00:25:56,960 Suze: Do you know that four banks absolutely failed in 2020? 448 00:25:57,940 --> 00:26:02,020 Suze: So you have got to take the approach that anything 449 00:26:02,020 --> 00:26:05,230 Suze: can happen at any time and if you are lucky 450 00:26:05,230 --> 00:26:11,840 Suze: enough to have more than $250,000 and substantial sums of money, 451 00:26:11,850 --> 00:26:16,860 Suze: you have got to know that that money is absolutely 452 00:26:16,869 --> 00:26:17,560 Suze: safe 453 00:26:17,640 --> 00:26:23,690 Suze: and sound and protected in case your financial institution happens 454 00:26:23,690 --> 00:26:24,859 Suze: to fail. 455 00:26:25,840 --> 00:26:30,790 Suze: So this Suze school is really, really important for all 456 00:26:30,790 --> 00:26:31,360 Suze: of you 457 00:26:31,940 --> 00:26:36,330 Suze: and it's important because you're writing me and telling me 458 00:26:36,340 --> 00:26:39,050 Suze: as I mentioned earlier in this podcast, 459 00:26:39,440 --> 00:26:42,860 Suze: how so many of you have very large sums 460 00:26:43,540 --> 00:26:45,360 Suze: at Alliant Credit Union, 461 00:26:45,740 --> 00:26:46,550 Suze: but yet 462 00:26:47,040 --> 00:26:50,850 Suze: you're not insured because you haven't done it correctly. 463 00:26:51,340 --> 00:26:54,150 Suze: So if you don't want to miss out on the 464 00:26:54,150 --> 00:26:58,470 Suze: great interest rate of .60, so that alliance is giving you, 465 00:26:58,500 --> 00:27:02,460 Suze: I've now given you ways to make sure that your 466 00:27:02,460 --> 00:27:07,939 Suze: money is absolutely safe and sound. It's really just that 467 00:27:07,950 --> 00:27:08,560 Suze: easy 468 00:27:09,140 --> 00:27:12,560 Suze: now. You might be in different situations altogether 469 00:27:13,340 --> 00:27:15,050 Suze: and you want to know for sure 470 00:27:15,540 --> 00:27:16,460 Suze: are you 471 00:27:16,940 --> 00:27:20,359 Suze: covered by FDIC or NCUA Insurance. 472 00:27:20,940 --> 00:27:23,660 Suze: If you want to know about the money in your 473 00:27:23,660 --> 00:27:24,960 Suze: bank accounts, 474 00:27:25,340 --> 00:27:27,670 Suze: go to E D I E 475 00:27:28,040 --> 00:27:31,460 Suze: dot F D I C dot gov. 476 00:27:32,640 --> 00:27:36,850 Suze: E D I E by the way stands for Electronic 477 00:27:36,859 --> 00:27:39,500 Suze: Deposit Insurance Estimator. 478 00:27:40,540 --> 00:27:43,930 Suze: And you go there you put in your particular information 479 00:27:43,940 --> 00:27:46,780 Suze: of your situation and you can play with it and 480 00:27:46,780 --> 00:27:50,540 Suze: experiment with it and see if you're insured or not. 481 00:27:50,550 --> 00:27:52,560 Suze: If you're in a credit union 482 00:27:53,040 --> 00:27:56,550 Suze: go to my credit union dot gov. 483 00:27:56,940 --> 00:28:01,000 Suze: Just that simple and find out. Are you insured under 484 00:28:01,000 --> 00:28:02,670 Suze: NCUA limits 485 00:28:03,040 --> 00:28:06,160 Suze: according to your own particular situation. 486 00:28:07,240 --> 00:28:11,670 Suze: Alright that is the Suze School for today. 487 00:28:12,340 --> 00:28:15,560 Suze: Please don't be disappointed that I didn't address the stock 488 00:28:15,560 --> 00:28:19,270 Suze: market last week or other things because the truth of 489 00:28:19,270 --> 00:28:21,710 Suze: the matter is we're just gonna have to wait and 490 00:28:21,710 --> 00:28:23,350 Suze: see what happens. 491 00:28:23,940 --> 00:28:26,109 Suze: Hopefully your'e safe sound 492 00:28:26,540 --> 00:28:30,650 Suze: have an investment plan, you're diversified and you know what 493 00:28:30,650 --> 00:28:31,459 Suze: you're doing 494 00:28:32,640 --> 00:28:33,770 Suze: but really 495 00:28:34,140 --> 00:28:39,700 Suze: time will tell what happens here. Alright everybody so until 496 00:28:39,710 --> 00:28:43,550 Suze: Thursday with Ms Travis there's really only one thing that 497 00:28:43,550 --> 00:28:45,760 Suze: I want for all of you and that's for you 498 00:28:45,760 --> 00:28:50,450 Suze: to be safe. Strong, secure and to listen to Maria 499 00:28:50,460 --> 00:28:52,860 Suze: Shriver's commencement speech 500 00:28:52,940 --> 00:28:54,770 Suze: That she gave April 30 501 00:28:54,840 --> 00:28:59,760 Suze: for the University of Michigan. Alright, Everybody see you soon.