1 00:00:46,450 --> 00:00:50,450 Suze: April 4th, 2024. 2 00:00:50,590 --> 00:00:52,049 KT: Do you believe it's April? 3 00:00:52,060 --> 00:00:55,209 Suze: I do, 12 days before our anniversary. 4 00:00:55,259 --> 00:01:00,139 KT: Yeah. Everybody I met Suze April 16th in San Francisco 5 00:01:00,150 --> 00:01:00,930 KT: at my home 6 00:01:01,520 --> 00:01:03,599 KT: and I just couldn't believe it. I didn't even know 7 00:01:03,610 --> 00:01:04,389 KT: who she was. 8 00:01:04,400 --> 00:01:07,589 Suze: But anyway, we'll get to that. Welcome everybody to the 9 00:01:07,599 --> 00:01:08,860 Suze: Women and Money podcast 10 00:01:08,870 --> 00:01:10,769 KT: and everyone's smart enough to listen 11 00:01:10,779 --> 00:01:14,220 Suze: That's right KT and this is the ask KT and Suze 12 00:01:14,230 --> 00:01:18,269 Suze: anything addition. Well, know what I think is so funny 13 00:01:18,419 --> 00:01:23,110 Suze: ever since we've started to do the ask KT and Suze, 14 00:01:23,120 --> 00:01:25,819 Suze: anything which has been years now, believe it or not, 15 00:01:25,910 --> 00:01:27,569 Suze: you've been doing this a long time. 16 00:01:28,040 --> 00:01:28,669 KT: I like it. 17 00:01:28,680 --> 00:01:30,260 Suze: I'm glad because 18 00:01:30,375 --> 00:01:35,675 Suze: with the people, but I've noticed that other celebrities, other 19 00:01:35,684 --> 00:01:38,753 Suze: people out there are all doing ask so and so 20 00:01:38,764 --> 00:01:42,554 Suze: anything ask so and so anything, it's very funny to 21 00:01:42,565 --> 00:01:47,134 Suze: see how people kind of copy a copy copycat anyway, 22 00:01:47,144 --> 00:01:48,705 KT: That's flattering. 23 00:01:49,404 --> 00:01:52,794 Suze: But only right here on the women and Money podcast. 24 00:01:52,805 --> 00:01:58,525 Suze: Can you get the infamous KT original, original, the one 25 00:01:58,535 --> 00:01:59,224 Suze: and only. 26 00:01:59,510 --> 00:02:02,569 Suze: All right. So this is where if you have a 27 00:02:02,580 --> 00:02:08,240 Suze: question you can write in to ask Suze Suze Podcast 28 00:02:08,250 --> 00:02:11,728 Suze: at gmail.com. And if KT chooses it, 29 00:02:12,300 --> 00:02:16,490 Suze: we will answer it here on the podcast. Also. That 30 00:02:16,500 --> 00:02:20,960 Suze: is where you would write in your question if you 31 00:02:20,970 --> 00:02:24,559 Suze: can afford it or not. The quizzy now is being 32 00:02:24,570 --> 00:02:29,258 Suze: replaced by, can I afford it so that all of 33 00:02:29,270 --> 00:02:33,100 Suze: you can decide. But again, I need to know certain 34 00:02:33,110 --> 00:02:35,990 Suze: things and I'm just gonna take a second to tell 35 00:02:36,000 --> 00:02:37,138 Suze: you what I need. 36 00:02:37,449 --> 00:02:39,910 Suze: I need to know what it is you want to buy. 37 00:02:39,919 --> 00:02:41,880 Suze: I need to know how much is it going to 38 00:02:41,889 --> 00:02:45,339 Suze: cost you? I need to know your take home income. 39 00:02:45,679 --> 00:02:49,779 Suze: How much are your monthly expenses? How much you have 40 00:02:49,788 --> 00:02:54,600 Suze: in an emergency savings account? What kind of debt you have? 41 00:02:54,610 --> 00:02:58,350 Suze: Are you fully funding your retirement accounts? 42 00:02:58,839 --> 00:03:03,270 Suze: And that's pretty much what I need to know. You 43 00:03:03,279 --> 00:03:07,478 Suze: have to send in all of that information with your question. 44 00:03:07,589 --> 00:03:11,690 Suze: And obviously, how are you going to pay for what 45 00:03:11,699 --> 00:03:14,710 Suze: you want to buy? All right, KT, what do you 46 00:03:14,720 --> 00:03:15,669 Suze: have for us today? 47 00:03:15,679 --> 00:03:18,309 KT: Ok. My first question is from Colleen 48 00:03:18,910 --> 00:03:24,008 KT: Suze, I'm trying to protect assets. My spouse earns more 49 00:03:24,020 --> 00:03:28,639 KT: money than me. We have always had separate finances. I 50 00:03:28,649 --> 00:03:32,410 KT: purchased my home prior to meeting my husband and have 51 00:03:32,419 --> 00:03:37,410 KT: made all mortgage payments. I also am paying school tuition 52 00:03:37,500 --> 00:03:41,889 KT: for our Children for so long. He said that he 53 00:03:41,899 --> 00:03:44,089 KT: would give me money to contribute... 54 00:03:44,339 --> 00:03:47,270 KT: And all this time, I believed that he must have 55 00:03:47,279 --> 00:03:51,000 KT: had some money aside, but just didn't want to give 56 00:03:51,009 --> 00:03:54,919 KT: it to me. I figured in time he would, but 57 00:03:54,929 --> 00:04:00,779 KT: now I depleted my savings. Yeah, I know. I'm afraid 58 00:04:00,789 --> 00:04:04,550 KT: the truth is that he doesn't have any backup funds. 59 00:04:05,000 --> 00:04:08,820 KT: So this is the big question that Colleen has, Suze. 60 00:04:08,830 --> 00:04:13,740 KT: Could a legal separation help offer some sort of protection 61 00:04:13,750 --> 00:04:15,059 KT: and accountability? 62 00:04:15,289 --> 00:04:18,970 Suze: So I can get into what a legal separation will 63 00:04:18,980 --> 00:04:21,579 Suze: do for you. Just so if any of you out 64 00:04:21,589 --> 00:04:26,219 Suze: there wanna know because a legal separation is another alternative 65 00:04:26,230 --> 00:04:29,079 Suze: besides getting a divorce to see if you can work 66 00:04:29,089 --> 00:04:32,540 Suze: things out. However Colleen 67 00:04:33,510 --> 00:04:37,558 Suze: did you read over and over again your email that 68 00:04:37,570 --> 00:04:42,299 Suze: you sent in? Because what's so sad is where you 69 00:04:42,309 --> 00:04:46,250 Suze: say for so long? He said that he would give 70 00:04:46,260 --> 00:04:51,869 Suze: me money to contribute. And all this time, I believed 71 00:04:51,880 --> 00:04:55,640 Suze: that he must have some money set aside, but just 72 00:04:55,649 --> 00:04:59,119 Suze: didn't want to give it to me. I figured in 73 00:04:59,130 --> 00:05:00,519 Suze: time he would 74 00:05:01,000 --> 00:05:07,339 Suze: but now I depleted my savings. Whose fault is that? 75 00:05:07,950 --> 00:05:13,859 Suze: Who takes responsibility for somebody says something to you? 76 00:05:14,799 --> 00:05:18,420 Suze: And you just assume that eventually he'll do it and 77 00:05:18,428 --> 00:05:21,678 Suze: you make all these excuses for him, especially when you 78 00:05:21,690 --> 00:05:25,349 Suze: say that he earns more than you. But now you 79 00:05:25,359 --> 00:05:30,470 Suze: have depleted your savings. Women, we have got to stop 80 00:05:30,480 --> 00:05:35,238 Suze: being powerless in the relationships that we happen to be in. 81 00:05:35,350 --> 00:05:38,649 Suze: We have to stop just figuring there's a good reason 82 00:05:38,660 --> 00:05:41,790 Suze: somebody isn't doing something that they said that they would 83 00:05:41,799 --> 00:05:42,289 Suze: do 84 00:05:42,769 --> 00:05:45,829 Suze: when you make an excuse for somebody and they aren't 85 00:05:45,839 --> 00:05:49,230 Suze: living up to what they said they were going to do. 86 00:05:49,459 --> 00:05:52,599 Suze: The fact is they're not living up to what they 87 00:05:52,609 --> 00:05:55,190 Suze: said they were going to do and to think that 88 00:05:55,200 --> 00:05:59,019 Suze: one day they're gonna do that is just ridiculous. I'm 89 00:05:59,029 --> 00:06:04,769 Suze: so sorry to say Colleen. What also I find interesting 90 00:06:05,269 --> 00:06:07,859 Suze: is that now you find out 91 00:06:08,119 --> 00:06:11,820 Suze: that he doesn't have any backup funds. So the question 92 00:06:11,829 --> 00:06:16,238 Suze: then becomes, if he is earning more money than you, 93 00:06:16,350 --> 00:06:21,659 Suze: what has he been doing with that money? When you 94 00:06:21,670 --> 00:06:25,500 Suze: get married? What you have to understand is "M" just, 95 00:06:25,510 --> 00:06:30,019 Suze: doesn't stand for marriage. It also stands for money 96 00:06:30,500 --> 00:06:33,450 Suze: and the only money that you've been aware of in 97 00:06:33,459 --> 00:06:37,738 Suze: this marriage has been yours. So now what do you 98 00:06:37,750 --> 00:06:41,440 Suze: want to do? Now, you wanna do a legal separation? 99 00:06:41,450 --> 00:06:43,640 Suze: My question to you is why 100 00:06:44,260 --> 00:06:49,719 Suze: aren't you divorcing him or does this not really matter 101 00:06:49,730 --> 00:06:53,440 Suze: to you? Because it's also possible that maybe he doesn't 102 00:06:53,450 --> 00:06:55,690 Suze: have money, who knows what he's done with it? But 103 00:06:55,700 --> 00:06:59,859 Suze: you're still in love with him, you still like him. 104 00:06:59,940 --> 00:07:02,279 Suze: You still want to stay with him. 105 00:07:03,399 --> 00:07:08,500 Suze: But the way that you have phrased everything says to 106 00:07:08,510 --> 00:07:12,279 Suze: me that this is a relationship. Now, if you were 107 00:07:12,290 --> 00:07:15,859 Suze: to stand in your truth, that you actually would rather 108 00:07:15,869 --> 00:07:21,559 Suze: divorce him than legally separate from him. Now, yes, a 109 00:07:21,570 --> 00:07:24,859 Suze: legal separation that's done by a judge 110 00:07:25,329 --> 00:07:29,989 Suze: can absolutely protect you, but you've already protected yourself because 111 00:07:30,000 --> 00:07:32,359 Suze: the house was in your name before you got married 112 00:07:32,369 --> 00:07:38,109 Suze: to him and everything else. The judge obviously will decide 113 00:07:38,200 --> 00:07:42,070 Suze: what is separate property and what is marital property. 114 00:07:42,500 --> 00:07:46,920 Suze: The judge will decide how to distribute the marital property 115 00:07:46,929 --> 00:07:52,309 Suze: that's equitable but not possibly equal. So it doesn't mean 116 00:07:52,410 --> 00:07:56,440 Suze: that he's gonna get 50% of everything that's marital. If 117 00:07:56,450 --> 00:08:00,269 Suze: the judge looks at everything that's going on, 118 00:08:01,220 --> 00:08:05,230 Suze: if you decide to eventually get a divorce, 119 00:08:06,029 --> 00:08:08,019 Suze: you're gonna have to go through it all again. And 120 00:08:08,029 --> 00:08:11,500 Suze: now you've wasted all of this money, in my opinion. 121 00:08:11,899 --> 00:08:14,500 Suze: You also need to know that you can have a 122 00:08:14,510 --> 00:08:20,369 Suze: legal separation while living under the same roof. However, I 123 00:08:20,380 --> 00:08:23,529 Suze: have to tell you, Colleen, you already know. 124 00:08:23,950 --> 00:08:26,760 Suze: You already know because of the question that you asked 125 00:08:26,769 --> 00:08:30,549 Suze: me how you said things in your email. What you 126 00:08:30,559 --> 00:08:33,989 Suze: wanna do in this situation, it's up to you if 127 00:08:34,000 --> 00:08:38,849 Suze: you're gonna stand in your truth finally or not. KT 128 00:08:38,859 --> 00:08:39,669 Suze: what do you want to say? 129 00:08:39,679 --> 00:08:42,968 KT: Do you think that Colleen even said to him? I 130 00:08:42,979 --> 00:08:46,650 KT: think we should be legally separated because you're not contributing? 131 00:08:46,659 --> 00:08:49,710 KT: Absolutely not. Why doesn't she do that? 132 00:08:49,780 --> 00:08:52,809 Suze: We don't know if she's done that or not. 133 00:08:53,859 --> 00:08:58,940 Suze: I doubt very highly given the words of this email 134 00:08:58,969 --> 00:09:03,728 Suze: that Colleen has really expressed how seriously upset she is, 135 00:09:03,890 --> 00:09:07,679 Suze: how she feels about it. And I doubt that she's 136 00:09:07,690 --> 00:09:11,069 Suze: done that because if you can't talk about money and 137 00:09:11,080 --> 00:09:14,840 Suze: have a conversation and a true solution 138 00:09:14,914 --> 00:09:19,895 Suze: about financial disagreement together, no way. Are you talking about 139 00:09:19,905 --> 00:09:22,625 Suze: anything else? No way. 140 00:09:22,635 --> 00:09:24,445 KT: I agree with you. Get rid of them. 141 00:09:25,575 --> 00:09:29,875 Suze: Not that easy, obviously, but Colleen, you hear what I'm saying? 142 00:09:29,885 --> 00:09:32,944 Suze: And somehow remember how I always say to all of you, 143 00:09:33,275 --> 00:09:36,174 Suze: you never write in a question like this that you 144 00:09:36,184 --> 00:09:40,054 Suze: don't already know the answer to. The main question that 145 00:09:40,065 --> 00:09:41,494 Suze: I always ask people 146 00:09:41,830 --> 00:09:45,719 Suze: to ask themselves in situations like this. If you could 147 00:09:45,729 --> 00:09:50,478 Suze: turn back the hands of time, would you marry this 148 00:09:50,489 --> 00:09:55,289 Suze: person again? And if the answer to that question is no, 149 00:09:55,690 --> 00:09:58,169 Suze: get a divorce. All right, KT. 150 00:09:58,229 --> 00:10:02,679 KT: OK. Next question is from Aska. Hello Katie. 151 00:10:02,690 --> 00:10:06,489 Suze: And that sounds funny, Aska Suze . And is that why 152 00:10:06,500 --> 00:10:07,020 Suze: you chose it? 153 00:10:07,030 --> 00:10:09,669 KT: No, I think this is a Japanese name because it's 154 00:10:09,679 --> 00:10:11,489 KT: Aska and the surname 155 00:10:11,580 --> 00:10:19,049 KT: Japanese. So it's a nice name, Aska Suzie. Hello KT 156 00:10:19,059 --> 00:10:21,840 KT: and Suze. Thank you for all you do to support 157 00:10:21,849 --> 00:10:27,400 KT: us to become financially independent and secure. Hear that everyone's Secure. 158 00:10:27,789 --> 00:10:30,450 KT: I'm about to file my tax and want to learn 159 00:10:30,460 --> 00:10:34,049 KT: more about the pros and cons of buying an I 160 00:10:34,059 --> 00:10:38,809 KT: bond with my tax refund. I'm not super excited about 161 00:10:38,820 --> 00:10:42,650 KT: the fact that it'll be a paper bond mailed to me. 162 00:10:42,979 --> 00:10:46,280 KT: I'd most likely convert it to an electric one upon 163 00:10:46,289 --> 00:10:47,210 KT: the receipt. 164 00:10:47,690 --> 00:10:51,609 KT: Please let me know any pros and cons of this process. 165 00:10:51,780 --> 00:10:55,348 KT: So I can make an informed decision. Do they always 166 00:10:55,359 --> 00:10:56,169 KT: have to mail it? 167 00:10:56,179 --> 00:11:02,330 Suze: So, here's the thing. Remember everybody, an individual can only 168 00:11:02,340 --> 00:11:07,468 Suze: buy $10,000 of a Series I Bond per year. 169 00:11:08,049 --> 00:11:13,390 Suze: However, you can buy $5000 more if you use your 170 00:11:13,400 --> 00:11:18,228 Suze: tax refund, assuming it's at least $5000 you can then 171 00:11:18,239 --> 00:11:24,030 Suze: buy $5000 more of an I Bond using your tax refund. 172 00:11:24,229 --> 00:11:27,469 Suze: But they will mail it to you and it will 173 00:11:27,479 --> 00:11:32,059 Suze: be a paper I Bond and it's just that simple. 174 00:11:32,070 --> 00:11:35,270 Suze: But the true question really isn't that 175 00:11:36,010 --> 00:11:40,109 Suze: it's, should you be buying I Bonds or not right now? 176 00:11:40,539 --> 00:11:44,309 Suze: And as many of, you know, I stopped buying I 177 00:11:44,320 --> 00:11:47,989 Suze: Bonds about a year or so ago because I still 178 00:11:48,000 --> 00:11:50,840 Suze: think why lock up your money right now for at 179 00:11:50,849 --> 00:11:54,280 Suze: least five years, the first year that you cannot access 180 00:11:54,289 --> 00:11:58,299 Suze: it at all when really you could possibly get a 181 00:11:58,309 --> 00:12:03,559 Suze: higher interest rate in a certificate of deposit, possibly in 182 00:12:03,692 --> 00:12:07,852 Suze: certain treasury bills or notes. And I'm not quite seeing 183 00:12:07,862 --> 00:12:11,552 Suze: it in the same way as when I recommended them 184 00:12:11,562 --> 00:12:14,492 Suze: years ago. Now, I know there may be people that 185 00:12:14,502 --> 00:12:18,631 Suze: disagree with me, but that's how I think about it. Also. 186 00:12:18,643 --> 00:12:24,093 Suze: Remember everybody, you can buy more than $10,000 a year 187 00:12:24,102 --> 00:12:26,752 Suze: of an I Bond. You can buy it as an 188 00:12:26,866 --> 00:12:30,776 Suze: individual $10,000. Maybe you have a living revocable trust and 189 00:12:30,785 --> 00:12:34,084 Suze: the trust can buy $10,000. You can give them. There's 190 00:12:34,096 --> 00:12:38,245 Suze: all kinds of ways, but really, Aska, I would not 191 00:12:38,255 --> 00:12:40,315 Suze: be doing it if I were you, if you're gonna 192 00:12:40,325 --> 00:12:44,684 Suze: do $10,000 that is enough. The main reason I don't 193 00:12:44,695 --> 00:12:47,695 Suze: want you to do it is when I read, I'm 194 00:12:47,705 --> 00:12:51,205 Suze: not super psyched about it, then don't do it. 195 00:12:51,690 --> 00:12:54,340 Suze: I would never do anything with money that I am 196 00:12:54,349 --> 00:12:58,309 Suze: not so excited and psyched about doing it. I can't 197 00:12:58,320 --> 00:13:01,719 Suze: even tell you. So, no, if you're gonna do 10,000, 198 00:13:01,729 --> 00:13:04,608 Suze: just do 10,000. There you go. OK. 199 00:13:04,729 --> 00:13:08,309 KT: Now this next question is rather long, but I've actually 200 00:13:08,445 --> 00:13:11,244 KT: abbreviated it so that we can cut right to the 201 00:13:11,255 --> 00:13:12,424 KT: heart of the matter. 202 00:13:12,585 --> 00:13:16,594 Suze: Like what I'm doing with my answers, right? She always 203 00:13:16,604 --> 00:13:18,794 Suze: says I'm answering goes, she does this little... 204 00:13:18,815 --> 00:13:21,765 KT: I do a little thing like I do a little 205 00:13:21,775 --> 00:13:24,824 KT: wrap up Suze. You've gone into this enough. 206 00:13:24,835 --> 00:13:25,104 Suze: But 207 00:13:25,580 --> 00:13:29,380 Suze: I think that you really need to know about everything 208 00:13:29,390 --> 00:13:31,700 Suze: when I'm answering a question. So I don't care if 209 00:13:31,710 --> 00:13:32,330 Suze: I go on... 210 00:13:32,340 --> 00:13:36,599 KT: And I think you won't remember what she said. Remember 211 00:13:37,229 --> 00:13:37,809 KT: so here we go... 212 00:13:37,859 --> 00:13:39,780 Suze: Is that because you don't remember when I say things and I 213 00:13:39,789 --> 00:13:40,840 Suze: go on and on. 214 00:13:41,304 --> 00:13:42,645 KT: I can't remember all of it. 215 00:13:43,375 --> 00:13:45,655 Suze: But when you and I are talking about something? 216 00:13:46,094 --> 00:13:47,455 KT: I remember everything. 217 00:13:47,465 --> 00:13:51,044 Suze: And who goes on and on when you're talking? 218 00:13:51,255 --> 00:13:55,194 KT: Well, I tell stories you tell, I'm gonna now read 219 00:13:56,135 --> 00:14:00,604 KT: the question. This is from a 26 year old young man. 220 00:14:00,614 --> 00:14:03,804 KT: He said I'm currently in second year law school. 221 00:14:04,169 --> 00:14:08,020 KT: Thanks to a full ride from my undergraduate university and 222 00:14:08,030 --> 00:14:11,770 KT: the savings from my 529 I should be able to 223 00:14:11,780 --> 00:14:15,710 KT: graduate law school with no debt. It's a big deal. 224 00:14:16,219 --> 00:14:21,039 KT: I have a fully funded 12 month emergency fund... this kid... 225 00:14:21,330 --> 00:14:24,229 KT: now we get to the heart of the matter, Suze. 226 00:14:24,239 --> 00:14:27,190 KT: I am gay but have not come out to my 227 00:14:27,200 --> 00:14:28,510 KT: family yet. 228 00:14:29,020 --> 00:14:32,090 KT: Right. This is the real heart of it. I am 229 00:14:32,099 --> 00:14:36,429 KT: fearful that if I do, my mother might revoke any 230 00:14:36,440 --> 00:14:42,289 KT: money in my 529 or even ask for it back ready. 231 00:14:42,700 --> 00:14:46,260 KT: He said I've been incredibly blessed to have a supportive 232 00:14:46,270 --> 00:14:50,289 KT: family and a financial jumpstart. But I still wake up 233 00:14:50,299 --> 00:14:51,559 KT: in the middle of the night... 234 00:14:51,570 --> 00:14:54,190 Suze: Wait, one second KT, just go back again and read that one 235 00:14:54,200 --> 00:14:55,650 Suze: line to me again 236 00:14:55,979 --> 00:14:59,630 Suze: that he's been incredibly grateful to have support... 237 00:15:00,250 --> 00:15:06,299 KT: I have a supportive family and a financial jumpstart... financially support. 238 00:15:06,309 --> 00:15:09,280 KT: All right, I still wake up in the middle of 239 00:15:09,289 --> 00:15:13,400 KT: the night with anxiety about coming out to them and 240 00:15:13,409 --> 00:15:16,719 KT: my financial future being less stable. 241 00:15:17,280 --> 00:15:19,979 KT: So what do you think about this? How can we 242 00:15:19,989 --> 00:15:24,390 KT: help him? You and I with the courage to come 243 00:15:24,400 --> 00:15:28,020 KT: out to his mom and family and to put family 244 00:15:28,030 --> 00:15:31,000 KT: first before money in this situation, 245 00:15:31,010 --> 00:15:35,929 Suze: Not family first. But he's wait, wait, wait, not family first. 246 00:15:36,130 --> 00:15:42,500 Suze: He needs to put himself first, then money, then things. 247 00:15:42,830 --> 00:15:47,049 Suze: So here's my question back to you. What good 248 00:15:47,359 --> 00:15:52,469 Suze: does money do for you? If every single night you 249 00:15:52,479 --> 00:15:55,419 Suze: wake up with an anxiety attack 250 00:15:56,289 --> 00:15:59,710 Suze: is money really worth that. 251 00:16:00,409 --> 00:16:05,390 Suze: The other thing is this, if not now, when, 252 00:16:06,229 --> 00:16:10,929 Suze: when, because the other thing is if your mother were 253 00:16:10,940 --> 00:16:13,169 Suze: to take the money back, which I doubt by the 254 00:16:13,179 --> 00:16:16,229 Suze: way that she will because then it would have financial 255 00:16:16,239 --> 00:16:19,700 Suze: ramifications on her, believe it or not, unless she has 256 00:16:19,710 --> 00:16:22,320 Suze: another beneficiary to assign it to and blah, blah, blah, 257 00:16:22,330 --> 00:16:22,650 Suze: blah 258 00:16:23,739 --> 00:16:27,599 Suze: and it's not just money now. Let's say you got 259 00:16:27,609 --> 00:16:31,820 Suze: through school, you did it, you used the money and 260 00:16:31,830 --> 00:16:36,359 Suze: then you tell your mother and then she says, why 261 00:16:36,369 --> 00:16:38,210 Suze: did I give you that money? And now I'm so 262 00:16:38,219 --> 00:16:40,950 Suze: sad that I gave you that money. Maybe. now I 263 00:16:40,960 --> 00:16:43,229 Suze: want you to pay me that money back. Who knows 264 00:16:43,239 --> 00:16:44,349 Suze: what she's gonna say? 265 00:16:45,010 --> 00:16:49,219 Suze: But you have to give your mother the choice: is 266 00:16:49,229 --> 00:16:54,039 Suze: she going to put money over the love of her 267 00:16:54,049 --> 00:16:54,739 Suze: son 268 00:16:55,809 --> 00:17:00,080 Suze: Is she? You have to find that out. And if 269 00:17:00,090 --> 00:17:04,199 Suze: she doesn't love you for who you are, 270 00:17:04,930 --> 00:17:08,540 Suze: you need to know that as well. You know, I 271 00:17:08,550 --> 00:17:12,149 Suze: can tell you stories and all that my mother and 272 00:17:12,160 --> 00:17:18,389 Suze: how my father felt about things. However, nothing, nothing made 273 00:17:18,400 --> 00:17:22,949 Suze: me feel better about who I was than coming out 274 00:17:22,959 --> 00:17:27,000 Suze: to everybody. And I stood in my truth and I 275 00:17:27,010 --> 00:17:30,550 Suze: did it during a time back in the late sixties, 276 00:17:30,560 --> 00:17:34,310 Suze: early seventies when it wasn't like it is now. 277 00:17:35,189 --> 00:17:38,050 Suze: So my advice to you would be 278 00:17:38,839 --> 00:17:41,859 Suze: you are who you are. You should be proud of 279 00:17:41,869 --> 00:17:45,099 Suze: who you are. You should love who you are 280 00:17:45,829 --> 00:17:50,290 Suze: and therefore you should have people around you who love 281 00:17:50,300 --> 00:17:55,010 Suze: who you are as well. So boyfriend go for it 282 00:17:55,020 --> 00:17:58,859 Suze: with love, go for it with understanding that she may 283 00:17:58,869 --> 00:18:02,688 Suze: have a hard time at first, but don't stop loving 284 00:18:02,699 --> 00:18:08,310 Suze: her even if she stops loving who you are. That's 285 00:18:08,319 --> 00:18:09,359 Suze: what I would tell you. 286 00:18:09,640 --> 00:18:12,959 KT: And you know, I was thinking, yeah, I I don't 287 00:18:12,969 --> 00:18:14,209 KT: want to say his name but 288 00:18:15,160 --> 00:18:18,619 KT: I don't think your mom's gonna pick a 529 plan 289 00:18:18,630 --> 00:18:20,780 KT: over her son. You never know. 290 00:18:21,560 --> 00:18:24,729 Suze: It might be better find out sooner than later. 291 00:18:25,569 --> 00:18:30,218 KT: You'll both feel at ease. Trust me in the future. Alright, 292 00:18:30,229 --> 00:18:35,069 KT: next question. Hi, Suze and KT you spoke about 401k 293 00:18:35,079 --> 00:18:36,609 KT: loans recently 294 00:18:36,910 --> 00:18:41,099 KT: and I know it's not something that's typically recommended, but 295 00:18:41,109 --> 00:18:44,560 KT: I can't shake the idea of going forward with one 296 00:18:44,719 --> 00:18:49,209 KT: because I love the idea of paying interest to myself 297 00:18:49,219 --> 00:18:54,609 KT: versus paying interest to the bank. Like I know this 298 00:18:54,619 --> 00:18:56,609 KT: was the one that I wanted to hear what you 299 00:18:56,619 --> 00:18:58,489 KT: were going to say, Suze because I don't get it. 300 00:18:58,640 --> 00:19:01,670 KT: Is it a good idea to take out a 401k 301 00:19:01,680 --> 00:19:04,849 KT: loan and start paying down that loan 302 00:19:05,270 --> 00:19:10,170 KT: at 500 ish a month faster since that's about what 303 00:19:10,180 --> 00:19:14,349 KT: we're paying right now on our HELOC on interest alone. 304 00:19:15,359 --> 00:19:18,040 KT: Um, we'd have to take out some money of my 305 00:19:18,050 --> 00:19:21,339 KT: 401k and some out of my husband's to get the 306 00:19:21,349 --> 00:19:27,000 KT: full $63,000. That's the HELOC balance by the way, everyone, 307 00:19:27,319 --> 00:19:30,879 KT: wait a minute, I realize there's an opportunity cost of 308 00:19:30,890 --> 00:19:35,149 KT: taking out that money, but paying $6000 a year in 309 00:19:35,160 --> 00:19:38,739 KT: interest alone just seems nuts. 310 00:19:39,550 --> 00:19:42,660 KT: What is the advice to that one, Suze? That to 311 00:19:42,670 --> 00:19:44,419 KT: me is a very confusing. 312 00:19:45,189 --> 00:19:50,599 Suze: So, KT what Megan means about this really is that 313 00:19:50,609 --> 00:19:54,739 Suze: when you take a loan from your 401k, a specific 314 00:19:54,750 --> 00:19:59,540 Suze: interest rate is assigned to that loan could be 8,9, 10, 315 00:19:59,550 --> 00:20:02,979 Suze: whatever it is according to what interest rates are in 316 00:20:02,989 --> 00:20:03,780 Suze: the economy. 317 00:20:04,170 --> 00:20:07,089 Suze: And when you pay that loan back, you pay it 318 00:20:07,099 --> 00:20:13,109 Suze: back with that interest, but that interest goes into your account. 319 00:20:14,000 --> 00:20:16,229 Suze: And so a lot of people think, oh, let me 320 00:20:16,239 --> 00:20:20,109 Suze: take out a 401k loan and I'll pay interest back 321 00:20:20,119 --> 00:20:21,430 Suze: to myself. 322 00:20:22,089 --> 00:20:27,229 Suze: Megan, here's the problem, in my opinion, with what you're thinking, 323 00:20:27,719 --> 00:20:31,109 Suze: you're saying that you're going to have to pay back 324 00:20:31,119 --> 00:20:32,188 Suze: this loan. 325 00:20:32,890 --> 00:20:36,270 Suze: But when you take out a loan like this, it 326 00:20:36,280 --> 00:20:39,000 Suze: will depend. Do you have to pay it back in 327 00:20:39,010 --> 00:20:42,050 Suze: five years because it's not for a purchase of a home. 328 00:20:42,140 --> 00:20:45,150 Suze: But will your company let you pay it back in 329 00:20:45,160 --> 00:20:47,438 Suze: five years, will they make you pay it back in 330 00:20:47,449 --> 00:20:51,819 Suze: five years or 15 years? Which is usually the amount 331 00:20:51,829 --> 00:20:54,899 Suze: of time you can pay it back when you're buying 332 00:20:54,910 --> 00:20:57,780 Suze: a home up to your company, how they're going to 333 00:20:57,790 --> 00:20:58,349 Suze: do that. 334 00:20:58,609 --> 00:21:06,229 Suze: But if you're taking out $63,000 of loans, not only 335 00:21:06,239 --> 00:21:08,250 Suze: is the payment going to be a little bit bigger 336 00:21:08,260 --> 00:21:10,109 Suze: because of the interest rate on it. 337 00:21:10,790 --> 00:21:15,469 Suze: But you say besides that 401k repayment, you're going to 338 00:21:15,479 --> 00:21:19,290 Suze: be paying an additional $500 a month, which is what 339 00:21:19,300 --> 00:21:23,629 Suze: you pay on the home equity line. So my question 340 00:21:23,640 --> 00:21:27,209 Suze: to you is if you have that kind of money 341 00:21:27,219 --> 00:21:31,160 Suze: to pay back to your 401k, why don't you take 342 00:21:31,170 --> 00:21:33,930 Suze: the amount of money that you would be paying back 343 00:21:33,939 --> 00:21:38,688 Suze: to your 401k and just pay it towards 344 00:21:39,050 --> 00:21:43,369 Suze: your home equity line of credit? Even though the home 345 00:21:43,380 --> 00:21:47,459 Suze: equity line of credit is interest only. That doesn't mean 346 00:21:47,469 --> 00:21:51,630 Suze: that you can't pay more principal down on it and 347 00:21:51,640 --> 00:21:56,069 Suze: get rid of it. That's number one, number two. Listen 348 00:21:56,079 --> 00:21:56,829 Suze: to me. Now 349 00:21:57,500 --> 00:22:01,520 Suze: you have $63,000 that you've taken out as a loan 350 00:22:01,530 --> 00:22:07,160 Suze: from your 401k and something horrific happens in the United States. 351 00:22:07,290 --> 00:22:11,199 Suze: Now we go into a recession, possibly a depression and 352 00:22:11,209 --> 00:22:14,550 Suze: both you and your husband are laid off, 353 00:22:15,040 --> 00:22:22,810 Suze: your companies have downsized. Now, in most cases, $63,000 is 354 00:22:22,819 --> 00:22:28,130 Suze: due or whatever the outstanding balance on the loan is 355 00:22:28,140 --> 00:22:34,379 Suze: at that time to your 401k, usually within one month 356 00:22:34,390 --> 00:22:38,619 Suze: that you have lost your job. Otherwise you will owe 357 00:22:38,670 --> 00:22:41,569 Suze: ordinary income taxes on that money 358 00:22:42,109 --> 00:22:47,419 Suze: as well as a possible 10% penalty plus state penalty 359 00:22:47,430 --> 00:22:51,680 Suze: depending on your age. And you say to me, but Suze, 360 00:22:52,339 --> 00:22:55,880 Suze: my job is secure, that's not going to happen. All right, 361 00:22:55,890 --> 00:22:59,660 Suze: let's say you're both out on a date and now 362 00:22:59,670 --> 00:23:03,199 Suze: you're hit by another car and both of you can 363 00:23:03,209 --> 00:23:07,000 Suze: no longer work. You are not to think things like 364 00:23:07,010 --> 00:23:11,680 Suze: that can't happen. I have read too many emails and 365 00:23:11,689 --> 00:23:16,439 Suze: have dealt with too many circumstances where that is exactly 366 00:23:16,449 --> 00:23:20,000 Suze: what has happened. Therefore, 367 00:23:20,390 --> 00:23:23,669 Suze: if you know that you can sustain all of those 368 00:23:23,680 --> 00:23:26,609 Suze: things and you still think it's a wise choice even 369 00:23:26,619 --> 00:23:32,689 Suze: if these markets may skyrocket far beyond whatever interest rate 370 00:23:32,699 --> 00:23:36,180 Suze: the government is paying you. Because remember as interest rates 371 00:23:36,189 --> 00:23:39,208 Suze: go down, the amount of money that you're gonna be 372 00:23:39,219 --> 00:23:42,849 Suze: paying back for yourself is going to go down 373 00:23:43,619 --> 00:23:48,270 Suze: and you might not have made the right choice at all. So, 374 00:23:48,280 --> 00:23:51,189 Suze: bottom line, no, I would not be doing it under 375 00:23:51,199 --> 00:23:56,079 Suze: any circumstances. No. And if buts about it because of 376 00:23:56,089 --> 00:23:59,430 Suze: the things that can happen. So take the money you 377 00:23:59,439 --> 00:24:02,410 Suze: would have been paying back to the 401k and pay 378 00:24:02,420 --> 00:24:06,989 Suze: down the home equity line of credit because, you know, 379 00:24:07,000 --> 00:24:09,729 Suze: also KT, as time goes on, 380 00:24:10,290 --> 00:24:13,599 Suze: if the feds lower their interest rates and that's a big, 381 00:24:13,609 --> 00:24:15,719 Suze: if you never know, truthfully, 382 00:24:16,359 --> 00:24:18,750 Suze: their interest rate on their home equity line of credit 383 00:24:18,760 --> 00:24:23,140 Suze: will also go down. And so I just won't be 384 00:24:23,150 --> 00:24:23,699 Suze: doing it. 385 00:24:23,800 --> 00:24:26,770 KT: So, Suze, I listened to this answer you just gave 386 00:24:26,780 --> 00:24:27,459 KT: and I'm thinking, 387 00:24:28,209 --> 00:24:32,660 KT: What if a recession could definitely take place? 388 00:24:33,040 --> 00:24:37,599 Suze: A recession isn't right now in the cards. But you 389 00:24:37,609 --> 00:24:40,069 Suze: have to look at what's happening to the price of 390 00:24:40,079 --> 00:24:43,329 Suze: oil and why oil is going up right now. All 391 00:24:43,339 --> 00:24:46,550 Suze: of you should be very happy with your PXD, your Devins, 392 00:24:46,560 --> 00:24:49,479 Suze: your XLEs, your FANGs should be so happy with them. 393 00:24:49,619 --> 00:24:51,790 Suze: But anyway, is that 394 00:24:52,400 --> 00:24:57,859 Suze: we have a time in our life where nobody is 395 00:24:57,869 --> 00:25:00,819 Suze: getting along with anybody. And I'm not just talking about 396 00:25:00,829 --> 00:25:04,780 Suze: what's happening in the United States, but globally and all 397 00:25:04,790 --> 00:25:07,689 Suze: of a sudden there's a cyber attack, all of a 398 00:25:07,699 --> 00:25:10,938 Suze: sudden there's an attack of any kind. 399 00:25:11,839 --> 00:25:15,399 Suze: You never know what can happen in the world. So 400 00:25:15,410 --> 00:25:18,879 Suze: you have to hope for the best, but plan for 401 00:25:18,890 --> 00:25:22,800 Suze: the worst and then no matter what happens, you will 402 00:25:22,810 --> 00:25:27,010 Suze: be ok. KT and I live our lives that way. 403 00:25:27,099 --> 00:25:30,719 Suze: We could obviously be investing our money more aggressively and 404 00:25:30,729 --> 00:25:34,790 Suze: make more money, but we have planned for the worst, 405 00:25:35,130 --> 00:25:37,639 Suze: but we always hope for the best. 406 00:25:38,599 --> 00:25:43,280 KT: It's been pretty best so far. Ok. This is from Ellie. Hi, 407 00:25:43,290 --> 00:25:46,500 KT: Suze and KT. I am fuming right now and, and 408 00:25:46,510 --> 00:25:50,739 KT: just on the side, everyone that's listening when I read this, 409 00:25:50,750 --> 00:25:54,780 KT: wait to see how Suze starts fuming. This is one, 410 00:25:54,790 --> 00:25:56,579 KT: this is the kind I put in there to watch 411 00:25:56,589 --> 00:25:57,698 KT: her face turn red. 412 00:25:58,099 --> 00:26:02,160 KT: We are required at work to talk to an insurance 413 00:26:02,170 --> 00:26:05,589 KT: company about their various policies. I wonder how much that 414 00:26:05,599 --> 00:26:10,140 KT: company makes. A 20 year old coworker came away so 415 00:26:10,150 --> 00:26:15,199 KT: excited after talking to them because she feels so great 416 00:26:15,209 --> 00:26:16,839 KT: about her future. Now 417 00:26:17,229 --> 00:26:21,930 KT: they sold her a whole life policy as well as 418 00:26:21,939 --> 00:26:26,169 KT: a cancer policy. I tried to talk her out of 419 00:26:26,180 --> 00:26:29,339 KT: the whole life but the owner of our company said 420 00:26:29,349 --> 00:26:32,939 KT: she doesn't like what you have to say and that 421 00:26:32,949 --> 00:26:37,500 KT: is a great idea. Hm. Ready? This is the big 422 00:26:37,510 --> 00:26:41,359 KT: million dollar question. Do the owners of the company get 423 00:26:41,369 --> 00:26:44,900 KT: a kick back depending upon what is sold? 424 00:26:45,469 --> 00:26:48,040 KT: When I mentioned, she needs to look at opening a 425 00:26:48,050 --> 00:26:52,819 KT: Roth that was shut down too. She's only 20 getting 426 00:26:52,829 --> 00:26:56,238 KT: such bad advice. I wish I had all your great 427 00:26:56,250 --> 00:27:00,239 KT: advice when I was her age. She doesn't understand that 428 00:27:00,250 --> 00:27:04,390 KT: their job is to sell. The insurance company's job is 429 00:27:04,400 --> 00:27:05,099 KT: to sell. 430 00:27:05,380 --> 00:27:10,510 Suze: And it's the boss's job to protect her employees against everything that 431 00:27:10,520 --> 00:27:11,140 Suze: could go. 432 00:27:11,150 --> 00:27:13,420 KT: Right. But wait, I have to share this with all 433 00:27:13,430 --> 00:27:13,780 KT: of you 434 00:27:14,250 --> 00:27:17,449 KT: when I was a young managing director in Asia. I 435 00:27:17,459 --> 00:27:20,099 KT: was making a great deal of money, a lot of 436 00:27:20,109 --> 00:27:24,280 KT: money for my age and for that time, and our, 437 00:27:24,290 --> 00:27:28,800 KT: you know, head of the divisions brought in AIG insurance 438 00:27:29,099 --> 00:27:32,569 KT: and they only introduced them to those executives that were 439 00:27:32,579 --> 00:27:36,399 KT: making a lot of money. And this is true, Suze. 440 00:27:36,410 --> 00:27:40,149 KT: So I bought, I bought a whole life policy 441 00:27:40,510 --> 00:27:42,709 KT: and every year on my birthday, I put a ton 442 00:27:42,719 --> 00:27:46,369 KT: of money into it. But ask me what made me 443 00:27:46,380 --> 00:27:50,869 KT: make that decision? I actually went to the controller of, 444 00:27:50,880 --> 00:27:53,879 KT: of my company and I said to him, did you 445 00:27:53,890 --> 00:27:55,790 KT: buy one of these? And he looked at me and 446 00:27:55,800 --> 00:27:58,650 KT: he said, yes, it's a great way to save for 447 00:27:58,660 --> 00:28:03,089 KT: your future. And because my controller who I trusted who 448 00:28:03,099 --> 00:28:06,069 KT: didn't know as well, Suze said to me, 449 00:28:06,859 --> 00:28:09,609 KT: yeah, I did it. KT I said, OK, I'm going 450 00:28:09,619 --> 00:28:10,209 KT: to do it too. 451 00:28:10,219 --> 00:28:13,569 Suze: And the very first thing when KT and I got together, 452 00:28:14,260 --> 00:28:18,359 Suze: she told me that for 10 years, she had put 453 00:28:18,369 --> 00:28:25,630 Suze: in $15,000 a year or $150,000. And the cash value 454 00:28:25,640 --> 00:28:30,729 Suze: after 10 years was $50,000. And then I took out 455 00:28:30,739 --> 00:28:33,109 Suze: all the illustrations they had sent her, 456 00:28:33,699 --> 00:28:36,250 Suze: I made her cancel it. And then we took that 457 00:28:36,260 --> 00:28:41,319 Suze: $50,000 and we invested it. And now that $50,000 has 458 00:28:41,329 --> 00:28:45,920 Suze: made up the $100,000 loss that she had put in 459 00:28:45,930 --> 00:28:49,359 Suze: plus a lot more. Here's what I would tell you, 460 00:28:49,369 --> 00:28:51,199 Suze: Ellie is that 461 00:28:51,890 --> 00:28:57,030 Suze: your boss may not be getting an individual kick back, 462 00:28:57,040 --> 00:29:01,189 Suze: but somehow her company obviously is. Number two, 463 00:29:02,160 --> 00:29:09,640 Suze: a responsible boss, a responsible company will never bring in 464 00:29:09,750 --> 00:29:15,109 Suze: financial advisors that make money off of their employees. They 465 00:29:15,119 --> 00:29:18,380 Suze: would bring in people that would educate you and tell 466 00:29:18,390 --> 00:29:21,859 Suze: you everything that you can do but not make money 467 00:29:21,869 --> 00:29:25,089 Suze: off of you. They make a fortune off of you 468 00:29:25,099 --> 00:29:28,430 Suze: when they sell you a whole life policy. The mere 469 00:29:28,439 --> 00:29:28,939 Suze: fact 470 00:29:29,435 --> 00:29:31,905 Suze: that she doesn't want to hear about and it breaks 471 00:29:31,915 --> 00:29:35,145 Suze: my heart that your boss is a woman that she 472 00:29:35,155 --> 00:29:38,314 Suze: doesn't even want to hear about a Roth IRA for 473 00:29:38,324 --> 00:29:43,305 Suze: her employees who's 20 right, who's 20 probably not making 474 00:29:43,314 --> 00:29:46,974 Suze: a whole lot of money and can't even benefit from 475 00:29:46,984 --> 00:29:53,344 Suze: a traditional IRA shame on your boss and maybe she 476 00:29:53,354 --> 00:29:55,814 Suze: doesn't like what I have to say, 477 00:29:56,439 --> 00:30:00,369 Suze: but you do not earn a label of a financial 478 00:30:00,380 --> 00:30:06,670 Suze: icon without having helped millions and millions of people throughout 479 00:30:06,680 --> 00:30:11,260 Suze: the entire world. So your boss may not agree with me, 480 00:30:11,479 --> 00:30:14,069 Suze: but all I have to say to her one day, 481 00:30:14,079 --> 00:30:17,619 Suze: she's gonna look back on this and be so sorry 482 00:30:17,630 --> 00:30:22,920 Suze: that she financially hurt herself, hurt her employees and didn't 483 00:30:22,930 --> 00:30:24,770 Suze: care about listening 484 00:30:25,089 --> 00:30:29,229 Suze: to somebody who really, really knows and has nothing to 485 00:30:29,239 --> 00:30:33,630 Suze: gain by what I am telling you so sad. And 486 00:30:33,640 --> 00:30:38,229 Suze: I have to tell you, you should be fuming girlfriend 487 00:30:38,400 --> 00:30:40,270 Suze: and maybe even think about serious 488 00:30:40,935 --> 00:30:45,645 Suze: getting another job somewhere where a boss, she really cares 489 00:30:45,655 --> 00:30:49,314 Suze: about her employees because all the money that you're making 490 00:30:49,324 --> 00:30:51,875 Suze: with her is not worth it. 491 00:30:51,935 --> 00:30:54,604 KT: I have to share something with the listeners. They may 492 00:30:54,614 --> 00:30:55,484 KT: not know this. 493 00:30:55,750 --> 00:31:00,400 KT: So when Suze was on television and speaking publicly and very, very, 494 00:31:00,410 --> 00:31:05,530 KT: you know, out there, she actually spent almost two years 495 00:31:05,540 --> 00:31:10,849 KT: getting her license to sell insurance in all 50 states 496 00:31:10,859 --> 00:31:13,170 KT: except Hawaii. She didn't want to make the trip to 497 00:31:13,180 --> 00:31:15,849 KT: Hawaii to do the test. So wait, the reason she 498 00:31:15,859 --> 00:31:19,229 KT: did this was that she then had a license that 499 00:31:19,239 --> 00:31:22,170 KT: allowed her to to share her opinion 500 00:31:22,275 --> 00:31:27,814 KT: and whatever it was about insurance policies publicly and on air. 501 00:31:27,824 --> 00:31:32,994 KT: Now ask me, did she ever sell a policy? A whole life 502 00:31:33,584 --> 00:31:39,305 KT: insurance policy? Like never, never, never, never. So she went 503 00:31:39,314 --> 00:31:41,805 KT: to the trouble. I don't think there's anyone in the 504 00:31:41,814 --> 00:31:46,805 KT: case history of insurance agencies that ever did that. So 505 00:31:46,814 --> 00:31:48,694 KT: Suze walks the talk everyone. 506 00:31:49,680 --> 00:31:52,709 KT: Alright, Susie. So I have more questions or we can 507 00:31:52,719 --> 00:31:53,739 KT: go to your quizzy. 508 00:31:53,829 --> 00:31:56,030 Suze: I want to go to the quizzy because the quizzy is, 509 00:31:56,040 --> 00:32:01,920 Suze: Can I Afford It? So the other day I did a little 510 00:32:01,930 --> 00:32:02,739 Suze: post 511 00:32:03,260 --> 00:32:06,280 Suze: on the women and money community app and said, do 512 00:32:06,290 --> 00:32:08,530 Suze: you want us to make quizzys, Can I Afford It? 513 00:32:08,540 --> 00:32:12,400 Suze: And if so write them in? Well, the emails, it's 514 00:32:12,410 --> 00:32:16,099 Suze: like we got a ton of emails. So much so 515 00:32:16,239 --> 00:32:19,060 Suze: that I'm kind of thinking of maybe going on youtube 516 00:32:19,069 --> 00:32:21,579 Suze: and do live, can I afford it or whatever? 517 00:32:21,760 --> 00:32:22,780 KT: Do it, let's do it. 518 00:32:22,890 --> 00:32:26,479 KT: But here is the, can I afford it. And for 519 00:32:26,489 --> 00:32:29,979 KT: those of you who don't know, this is where you 520 00:32:29,989 --> 00:32:30,949 KT: write in, 521 00:32:31,349 --> 00:32:33,969 Suze: you tell me what it is that you wanna buy 522 00:32:34,119 --> 00:32:38,729 Suze: and I tell you if you can afford it or not, 523 00:32:38,819 --> 00:32:43,010 Suze: this is for everybody. So write down the stats that 524 00:32:43,020 --> 00:32:46,650 Suze: I'm about to give you and you decide if this 525 00:32:46,660 --> 00:32:50,880 Suze: person can afford it or not. Now KT. Don't answer 526 00:32:50,890 --> 00:32:54,630 Suze: right away just so people have a few seconds to 527 00:32:54,640 --> 00:32:57,170 Suze: think about it. All right, 528 00:32:57,660 --> 00:33:01,609 Suze: Melanie is 33 years of age. 529 00:33:02,750 --> 00:33:08,160 Suze: She wants to buy a rooftop tent to go camping 530 00:33:08,170 --> 00:33:12,760 Suze: with her wife and kids in the summer. The cost 531 00:33:12,829 --> 00:33:19,000 Suze: of the rooftop tent is $1500. 532 00:33:19,819 --> 00:33:25,500 Suze: Melanie will pay for it in cash. Got that everybody? 533 00:33:25,619 --> 00:33:29,719 Suze: All right, here is her money situation. 534 00:33:30,469 --> 00:33:31,890 Suze: She brings home 535 00:33:32,719 --> 00:33:34,819 Suze: $3000 a month. 536 00:33:35,599 --> 00:33:39,969 Suze: Her expenses are $2000 a month. 537 00:33:41,000 --> 00:33:45,459 Suze: She has $7500 in an emergency fund. 538 00:33:46,410 --> 00:33:51,510 Suze: She has $30,000 in an IRA. 539 00:33:52,430 --> 00:33:58,130 Suze: She still owes about $2500 on her car loan, which 540 00:33:58,140 --> 00:34:01,050 Suze: is what she uses her extra money from her income 541 00:34:01,060 --> 00:34:04,510 Suze: and her expenses that $1000 a month to pay that 542 00:34:04,520 --> 00:34:07,530 Suze: off and put a little bit more towards the mortgage. 543 00:34:08,229 --> 00:34:10,319 Suze: So the question is 544 00:34:11,779 --> 00:34:16,849 Suze: can she afford it or not? Think about it for 545 00:34:16,858 --> 00:34:17,549 Suze: a second, 546 00:34:18,760 --> 00:34:20,500 Suze: $1500. 547 00:34:21,260 --> 00:34:29,139 Suze: She has 3000 of income, 2000 of expenses, $7500 in 548 00:34:29,149 --> 00:34:34,580 Suze: an emergency fund. 30,000 in an IRA. She's 33 years 549 00:34:34,590 --> 00:34:39,040 Suze: of age. Can she afford it or not? 550 00:34:40,290 --> 00:34:42,589 Suze: Do you approve her or deny her, KT? 551 00:34:42,600 --> 00:34:48,429 KT: I deny her. I don't think she can afford $1500 552 00:34:48,649 --> 00:34:52,070 KT: in cash to buy a tent to go camping. 553 00:34:52,239 --> 00:34:55,030 Suze: So, is that your final answer? If I were to 554 00:34:55,040 --> 00:34:57,310 Suze: ask you to explain, why would you just say it's 555 00:34:57,320 --> 00:34:57,909 Suze: a feeling 556 00:35:00,340 --> 00:35:03,149 KT: Well for me, for me probably, but I just don't 557 00:35:03,159 --> 00:35:06,949 KT: think she's got enough money. She's 33. She should have 558 00:35:06,959 --> 00:35:10,620 KT: far more in her retirement and everything else. I don't 559 00:35:10,629 --> 00:35:12,489 KT: think she should have, she should buy it. 560 00:35:13,699 --> 00:35:17,729 Suze: Melanie. You are denied and the reason you are denied 561 00:35:17,739 --> 00:35:24,370 Suze: is very simple. You have $2000 a month of expenses. 562 00:35:24,659 --> 00:35:27,409 Suze: What have I told you forever 563 00:35:27,889 --> 00:35:31,819 Suze: that you need at least 8 to 12 months of 564 00:35:31,830 --> 00:35:33,428 Suze: an emergency account, 565 00:35:34,159 --> 00:35:43,409 Suze: which would be in your situation. $16,000 you only have $7500. 566 00:35:43,419 --> 00:35:50,580 Suze: So you are $8500 short of the emergency fund. Then 567 00:35:50,870 --> 00:35:53,510 Suze: if you were to pay for this in cash, which 568 00:35:53,520 --> 00:35:55,820 Suze: is what you say you're going to do 569 00:35:56,340 --> 00:36:02,580 Suze: that leaves you only $6000 in an emergency fund, which 570 00:36:02,590 --> 00:36:07,840 Suze: is $10,000 short. If you had had 571 00:36:08,540 --> 00:36:16,959 Suze: an 8 to 12 month emergency fund of maybe even $17,500. 572 00:36:16,969 --> 00:36:19,479 Suze: And you told me you were going to take $1500 573 00:36:19,489 --> 00:36:21,709 Suze: to pay for this. I would have approved you. 574 00:36:21,949 --> 00:36:27,330 Suze: But until you have that eight month emergency fund, girlfriend, 575 00:36:27,540 --> 00:36:34,709 Suze: you are not going camping in a rooftop tent for $1500. 576 00:36:34,719 --> 00:36:36,550 Suze: Just that simple. 577 00:36:36,560 --> 00:36:41,209 KT: Camp under the stars. It's much, it's much more authentic, right? 578 00:36:41,270 --> 00:36:43,850 Suze: I'm sure she thought that I was going to approve 579 00:36:43,860 --> 00:36:46,040 Suze: her but you are denied. 580 00:36:47,270 --> 00:36:50,820 Suze: All right KT. So until Sunday... 581 00:36:50,840 --> 00:36:52,500 KT: What's coming up Sunday, Suze? 582 00:36:52,510 --> 00:36:55,169 Suze: I don't know yet. I'm waiting to see the stock 583 00:36:55,179 --> 00:36:59,580 Suze: markets are going up, down, down, down, they're all over 584 00:36:59,590 --> 00:37:02,239 Suze: the place. Oil is going up. I just have to 585 00:37:02,250 --> 00:37:06,129 Suze: see what happens at the close of business on Friday 586 00:37:06,139 --> 00:37:08,860 Suze: and then I'll make it up as we go along. 587 00:37:08,939 --> 00:37:10,179 Suze: But until then 588 00:37:10,580 --> 00:37:13,379 Suze: there's only one thing that matters when it comes to 589 00:37:13,389 --> 00:37:15,560 Suze: your money. And what is that, KT? 590 00:37:15,570 --> 00:37:19,520 KT: It's people first, then money, then things. 591 00:37:19,530 --> 00:37:22,989 Suze: Don't you forget that everybody. And when I say people first, 592 00:37:23,010 --> 00:37:32,199 Suze: we mean you. So until Sunday you stay safe and what? Unstoppable.