1 00:00:08,319 --> 00:00:12,519 Suze: June 28th, 2026. Welcome everybody to the Women in Money 2 00:00:12,519 --> 00:00:18,278 Suze: podcast and everybody's smart enough to listen. Suze O here and... 3 00:00:18,278 --> 00:00:20,688 KT: KT... 4 00:00:20,878 --> 00:00:23,579 Suze: Is in the house. And you may be wondering, but it's Suze School, 5 00:00:23,999 --> 00:00:26,479 Suze: why is KT here 6 00:00:27,030 --> 00:00:31,709 Suze: on a Sunday, which is when Suze School normally drops? 7 00:00:31,989 --> 00:00:36,750 Suze: So here's the lesson for today. Ready for it? Tell them, KT. 8 00:00:36,869 --> 00:00:40,389 KT: OK. Last Thursday we told you we had an announcement. Well, 9 00:00:40,509 --> 00:00:46,259 KT: here it is, everyone. Starting today, on Sunday, Suze and 10 00:00:46,259 --> 00:00:49,973 KT: I will do our podcast together. This is our new 11 00:00:49,973 --> 00:00:55,305 KT: schedule for summer. It's called Summer School with KT and Suze. 12 00:00:55,935 --> 00:01:01,775 Suze: And really it's a combination of Thursdays and Sundays that 13 00:01:01,775 --> 00:01:04,973 Suze: we will do today. We will not be doing new 14 00:01:04,974 --> 00:01:07,415 Suze: drops on Thursday anymore. 15 00:01:07,919 --> 00:01:09,480 Suze: Right, because why? 16 00:01:09,480 --> 00:01:10,238 KT: It's summer. 17 00:01:10,379 --> 00:01:14,139 Suze: It's summer. That's the only reason it's summer, and, and 18 00:01:14,239 --> 00:01:16,360 Suze: we don't wanna be at a schedule anymore. 19 00:01:16,800 --> 00:01:20,679 KT: No, it's our best reason. However, Suze did say, KT, if 20 00:01:20,680 --> 00:01:23,510 KT: something comes up in the middle of the week or whatever, 21 00:01:23,879 --> 00:01:28,519 KT: she absolutely will use this time to focus on a 22 00:01:28,519 --> 00:01:31,639 KT: Sunday school if needed, if needed, but this will be fun. 23 00:01:31,750 --> 00:01:35,349 KT: We're gonna have a lighter and fun summer schedule. 24 00:01:36,610 --> 00:01:40,089 Suze: So, every Sunday now is when we will drop a 25 00:01:40,089 --> 00:01:44,489 Suze: new podcast. Don't look for it on Thursdays because it 26 00:01:44,489 --> 00:01:47,970 Suze: won't be there anymore. Robert, what are we gonna do 27 00:01:47,970 --> 00:01:50,569 Suze: for those people who aren't listening to this? You're gonna 28 00:01:50,569 --> 00:01:53,000 Suze: have to maybe on Thursday, I'm now talking to Robert, 29 00:01:53,010 --> 00:01:55,169 Suze: the producer, right? You're gonna have to put something... 30 00:01:55,769 --> 00:01:56,010 KT: Make a little announcement. 31 00:01:56,010 --> 00:01:58,610 Suze: Announcement on it when they go on Thursday. 32 00:01:58,610 --> 00:02:01,139 KT: The girls have gone fishing. Tune in on Sunday. 33 00:02:03,010 --> 00:02:06,300 Suze: But anyway, I hope you understand. I hope you are 34 00:02:06,300 --> 00:02:10,020 Suze: happy for us. We're so happy. So KT, what do 35 00:02:10,020 --> 00:02:10,660 Suze: you got for me today? 36 00:02:11,300 --> 00:02:13,880 KT: Well, the first one, this is something I wanna share 37 00:02:13,880 --> 00:02:17,410 KT: with everyone. It's a thank you, a thank you to Suze. 38 00:02:17,490 --> 00:02:21,940 KT: She said, I'm writing to simply say thank you. About 39 00:02:21,940 --> 00:02:26,220 KT: 14 years ago, I followed your advice and invested in 40 00:02:26,220 --> 00:02:28,339 KT: a low-cost index fund. 41 00:02:28,729 --> 00:02:33,250 KT: Contributing to it every month at the time I was 42 00:02:33,250 --> 00:02:37,570 KT: far behind in my retirement savings and worried I would 43 00:02:37,570 --> 00:02:41,550 KT: never catch up and would end up very poor in retirement. 44 00:02:41,850 --> 00:02:45,410 KT: I wasn't a financial genius. I just had the good 45 00:02:45,410 --> 00:02:48,570 KT: fortune to hear your advice on one of your TV 46 00:02:48,570 --> 00:02:51,690 KT: shows and the intelligence to follow it. 47 00:02:52,100 --> 00:02:57,029 KT: That one decision made all the difference, Suze. Today at 48 00:02:57,029 --> 00:03:03,000 KT: age 65, I have accumulated more retirement savings than the 49 00:03:03,000 --> 00:03:04,910 KT: average person my age. 50 00:03:05,470 --> 00:03:10,000 KT: Something I never imagined would be possible back then. Following 51 00:03:10,000 --> 00:03:14,639 KT: your advice to invest consistently in a low cost index 52 00:03:14,639 --> 00:03:20,220 KT: fund was the single best financial decision I ever made. 53 00:03:20,479 --> 00:03:24,119 KT: I can't thank you enough for the positive impact you 54 00:03:24,119 --> 00:03:30,000 KT: have had on my life. With immense gratitude, Susan. Thank you, Susan. 55 00:03:30,100 --> 00:03:30,960 KT: That's sweet. 56 00:03:31,869 --> 00:03:36,399 KT: It's really true, everyone. I mean, listen, 14 years ago, 57 00:03:36,520 --> 00:03:39,139 KT: so time is our best ingredient. 58 00:03:39,800 --> 00:03:46,220 Suze: Time is the most important ingredient in any financial freedom recipe. Consistency, 59 00:03:46,440 --> 00:03:49,440 Suze: month in and month out. If you really don't know 60 00:03:49,440 --> 00:03:52,559 Suze: what to do, I'll still stick by if you don't 61 00:03:52,559 --> 00:03:54,460 Suze: know what to do, just do a 62 00:03:54,964 --> 00:03:59,524 Suze: index ETF just that simple. Could you make more money 63 00:03:59,524 --> 00:04:02,244 Suze: if you did other things? Yes. But if you just 64 00:04:02,244 --> 00:04:05,085 Suze: want simplicity, you don't want to think about it, and 65 00:04:05,085 --> 00:04:07,645 Suze: you just want to do it, great. And you might 66 00:04:07,645 --> 00:04:12,125 Suze: want to listen to last Sunday's podcast, because I gave 67 00:04:12,125 --> 00:04:13,964 Suze: you some great ideas there. 68 00:04:14,285 --> 00:04:15,994 Suze: All right. All right, go on. 69 00:04:16,565 --> 00:04:18,144 KT: OK, this is from Sharon. 70 00:04:19,049 --> 00:04:22,609 KT: Sharon said hello there KT and Suze. See, Sharon, I 71 00:04:22,609 --> 00:04:26,829 KT: picked you because it's our Sunday summer schedule. KT, I hope... 72 00:04:26,829 --> 00:04:29,678 Suze: Wait. What did one have to do with the other? 73 00:04:29,729 --> 00:04:33,407 KT: Because she said, KT, I hope my question is relevant 74 00:04:33,408 --> 00:04:37,368 KT: enough for others for Suze to answer this. So there 75 00:04:37,368 --> 00:04:39,229 KT: you go. She's being very thoughtful. 76 00:04:40,070 --> 00:04:44,970 KT: Suze, based on my data shared here, I'm 68. In 77 00:04:44,970 --> 00:04:49,390 KT: your opinion, do I really need a revocable trust? And 78 00:04:49,390 --> 00:04:52,988 KT: then she said, I listened to you insisting that everyone 79 00:04:52,988 --> 00:04:58,010 KT: must have a revocable trust in case they become incapacitated. 80 00:04:58,230 --> 00:05:02,589 KT: I understand that concern. Since I don't own real estate, 81 00:05:02,670 --> 00:05:06,690 KT: I get the sense this may not be necessary for me. 82 00:05:07,890 --> 00:05:09,070 Suze: Wait, are you saying... 83 00:05:09,529 --> 00:05:09,649 KT: I'm not done. 84 00:05:09,730 --> 00:05:12,609 Suze: Wait, are, are you saying there, did I just hear 85 00:05:12,609 --> 00:05:16,170 Suze: that right, because she doesn't own real estate, she thinks 86 00:05:16,170 --> 00:05:18,010 Suze: she can never be incapacitated. 87 00:05:18,089 --> 00:05:21,000 KT: Well, she said she doesn't think this is necessary for 88 00:05:21,000 --> 00:05:21,579 KT: her to have... 89 00:05:21,700 --> 00:05:25,412 Suze: But right before that KT, she said, I say that 90 00:05:25,412 --> 00:05:28,470 Suze: everybody should have one just... incapacity, right? 91 00:05:28,630 --> 00:05:32,390 KT: But wait, listen to this. Here's her thought. My 36 92 00:05:32,390 --> 00:05:36,789 KT: year old daughter is my sole beneficiary on all financial 93 00:05:36,790 --> 00:05:40,750 KT: accounts and is a joint account holder on a couple 94 00:05:40,750 --> 00:05:44,589 KT: of savings accounts and my checking. She is a small 95 00:05:44,589 --> 00:05:47,869 KT: business owner and may need to borrow money for her 96 00:05:47,869 --> 00:05:49,290 KT: business in the future. 97 00:05:49,690 --> 00:05:52,260 KT: The last part concerns me. 98 00:05:52,609 --> 00:05:53,919 Suze: Why are you looking at me like that? 99 00:05:54,049 --> 00:05:57,529 KT: Well, because she thinks because she has a 36 year 100 00:05:57,529 --> 00:05:59,808 KT: old daughter who said, Don't worry, Mom, I'll take care 101 00:05:59,809 --> 00:06:05,209 KT: of you, that she doesn't need an incapacity clause in 102 00:06:05,209 --> 00:06:05,910 KT: a trust. 103 00:06:06,000 --> 00:06:07,429 Suze: What is this woman's name? 104 00:06:07,609 --> 00:06:08,790 KT: This is from Sharon. 105 00:06:09,010 --> 00:06:14,729 Suze: Sharon, please, please, please, and everybody else out there. 106 00:06:15,178 --> 00:06:20,220 Suze: Why do I keep telling you over and over and 107 00:06:20,220 --> 00:06:25,160 Suze: over again? Why did the very first book I ever write, 108 00:06:25,380 --> 00:06:29,700 Suze: You've Earned It, Don't Lose It, in 1995, why did 109 00:06:29,700 --> 00:06:32,690 Suze: I make it such a big chapter as to why 110 00:06:32,690 --> 00:06:36,140 Suze: you all need a living revocable trust. 111 00:06:37,010 --> 00:06:44,269 Suze: Why? Because over all these years I have seen firsthand 112 00:06:44,890 --> 00:06:46,549 Suze: what happens to people, 113 00:06:47,440 --> 00:06:51,440 Suze: when they don't have a trust, not just with probate fees, fine, 114 00:06:51,519 --> 00:06:54,320 Suze: you want your kids to pay probate or whoever, I 115 00:06:54,320 --> 00:06:55,880 Suze: don't personally care about that. 116 00:06:56,329 --> 00:07:01,420 Suze: I care about that you get sick, you become incapacitated, 117 00:07:01,700 --> 00:07:05,700 Suze: you think you have everything under control. You think that 118 00:07:05,700 --> 00:07:09,440 Suze: you've named your 36 year old daughter to take care 119 00:07:09,440 --> 00:07:12,859 Suze: of everything, and you think nothing can happen to her. 120 00:07:13,130 --> 00:07:17,380 Suze: You think that she doesn't need a living revocable trust 121 00:07:17,380 --> 00:07:21,380 Suze: with an incapacity clause in it, Mamma, in case she 122 00:07:21,380 --> 00:07:24,820 Suze: gets hit by a car. Now she's incapacitated and you 123 00:07:25,170 --> 00:07:28,130 Suze: need to take care of her, but you can't make 124 00:07:28,130 --> 00:07:31,250 Suze: any decisions with her because she doesn't have a durable 125 00:07:31,250 --> 00:07:34,000 Suze: power of attorney for healthcare, and she now is over 126 00:07:34,000 --> 00:07:38,339 Suze: 18 years of age, so you can't make decisions for her. 127 00:07:38,739 --> 00:07:42,809 Suze: So this isn't about age. This is about the reality 128 00:07:42,809 --> 00:07:47,630 Suze: of life, everybody, and what can go wrong. So all 129 00:07:47,630 --> 00:07:51,630 Suze: I'm asking you to do is prepare for the worst 130 00:07:51,630 --> 00:07:53,429 Suze: and hope for the best. 131 00:07:53,959 --> 00:07:58,709 Suze: A will does not help you in case of an incapacity. 132 00:07:58,970 --> 00:08:03,250 Suze: In many cases, a power of attorney for finances will 133 00:08:03,250 --> 00:08:07,399 Suze: not help you. Why? Because banks might not take them. 134 00:08:07,579 --> 00:08:10,170 Suze: We've talked about that. We talked about that on last 135 00:08:10,170 --> 00:08:15,279 Suze: Thursday's podcast. Things go wrong and when they go wrong, 136 00:08:15,549 --> 00:08:18,570 Suze: guess who you all come to? You come to me. 137 00:08:18,929 --> 00:08:21,910 Suze: So how do we solve that before it goes wrong? 138 00:08:22,269 --> 00:08:25,570 Suze: I tell you what you need. You might not want it, 139 00:08:25,790 --> 00:08:29,350 Suze: but every single one of you needs it, which is 140 00:08:29,350 --> 00:08:36,579 Suze: why the must-have documents, seriously, were created over 25 years ago, 141 00:08:36,830 --> 00:08:38,950 Suze: which is why they were made for you 142 00:08:39,059 --> 00:08:41,579 Suze: to be able to share them for free with your 143 00:08:41,580 --> 00:08:46,619 Suze: loved ones, which is why we allowed updates absolutely free 144 00:08:46,619 --> 00:08:49,780 Suze: for you in case there was an update. That's why 145 00:08:49,780 --> 00:08:52,699 Suze: we allowed you to make as many changes as you wanted, 146 00:08:53,650 --> 00:08:55,789 Suze: absolutely free. Why? 147 00:08:56,479 --> 00:08:59,799 Suze: Because I don't want you to see all your hard 148 00:08:59,799 --> 00:09:04,219 Suze: work to attain financial freedom to possibly go down the 149 00:09:04,219 --> 00:09:08,690 Suze: drain just because you haven't taken time to do what? 150 00:09:09,159 --> 00:09:14,440 Suze: create what we call the must-have documents again. You should 151 00:09:14,440 --> 00:09:18,179 Suze: check them out at musthavedocs.com. 152 00:09:19,299 --> 00:09:23,539 KT: Great. Yeah, I, I mean 36 year old daughter, right, 153 00:09:23,619 --> 00:09:25,000 KT: that's still very young, 154 00:09:26,229 --> 00:09:29,580 Suze: But you know what's interesting about that email, the very 155 00:09:29,580 --> 00:09:30,440 Suze: last line. 156 00:09:31,479 --> 00:09:35,200 Suze: She's going into business. She may need to borrow money. 157 00:09:35,289 --> 00:09:37,239 KT: Yes, and Mommy was worried about that... concerned 158 00:09:37,340 --> 00:09:42,059 Suze: Yeah, because KT, we've seen it all. Everybody, Mama here 159 00:09:42,059 --> 00:09:45,729 Suze: already has a gut feeling about it, so maybe the 160 00:09:45,729 --> 00:09:50,169 Suze: daughter isn't the right one to make as your successor beneficiary. 161 00:09:50,330 --> 00:09:52,849 Suze: Just saying, all right, KT, go on. 162 00:09:52,929 --> 00:09:56,570 KT: OK. This is from Sherry. She said, Hello, Suze. I 163 00:09:56,570 --> 00:09:59,270 KT: went to a luncheon targeting seniors. 164 00:09:59,530 --> 00:10:03,169 Suze: I hate those luncheons. You go for... oof I have them. 165 00:10:04,909 --> 00:10:07,179 KT: Stop, stop, stop. Let me tell you what this is about. 166 00:10:07,520 --> 00:10:13,839 KT: It is for MASA Emergency Shield plus membership to cover 167 00:10:13,840 --> 00:10:15,799 KT: medical transportation. 168 00:10:16,409 --> 00:10:19,409 KT: Suae, to get the special price, I had to buy 169 00:10:19,409 --> 00:10:23,750 KT: it that day. Have you heard of it? Is it legitimate? 170 00:10:23,969 --> 00:10:27,299 KT: Is MASA easy to work with? And then Sherry, who 171 00:10:27,299 --> 00:10:30,750 KT: was very smart, she said, I thought to myself, before 172 00:10:30,750 --> 00:10:33,650 KT: I buy, I have to ask Suze. 173 00:10:34,109 --> 00:10:39,549 KT: She said it's about $6,000 for a lifetime for her 174 00:10:39,549 --> 00:10:40,409 KT: and her husband. 175 00:10:40,549 --> 00:10:42,390 Suze: And did they say they had to buy it that day? 176 00:10:42,549 --> 00:10:42,890 KT: Yes. 177 00:10:43,070 --> 00:10:43,270 KT: I knew it. 178 00:10:43,270 --> 00:10:45,710 KT: At the lunch and before dessert, probably. 179 00:10:45,869 --> 00:10:49,169 Suze: You all listen to me and listen to me closely 180 00:10:49,520 --> 00:10:52,510 Suze: so that I don't get indigestion, just because you went 181 00:10:52,510 --> 00:10:55,429 Suze: to get a free meal to be sold something. 182 00:10:56,309 --> 00:11:00,669 Suze: There's no such thing as a free lunch, seriously, and 183 00:11:00,669 --> 00:11:04,229 Suze: when people have to entice you, and as seniors, I 184 00:11:04,229 --> 00:11:04,830 Suze: get it. 185 00:11:05,229 --> 00:11:07,909 Suze: 'Cause maybe you don't have the money to go out 186 00:11:07,909 --> 00:11:12,289 Suze: and buy yourself meals. Maybe you wanna be with other people, 187 00:11:12,669 --> 00:11:16,469 Suze: but when somebody is offering you a free meal, it 188 00:11:16,469 --> 00:11:20,150 Suze: is a chance to sell you a trust, to sell 189 00:11:20,150 --> 00:11:25,229 Suze: you investments, to sell you this MASA thing. So, let 190 00:11:25,229 --> 00:11:28,710 Suze: me just answer this for all of you. MASA is 191 00:11:28,710 --> 00:11:30,010 Suze: a real company. 192 00:11:30,539 --> 00:11:34,520 Suze: All right, it's just that simple, and it's an emergency 193 00:11:34,520 --> 00:11:41,780 Suze: shield plus plan that targets, seriously targets seniors at luncheons, 194 00:11:41,950 --> 00:11:44,979 Suze: and it is a red flag, and you do not 195 00:11:44,979 --> 00:11:48,340 Suze: need to buy it on the spot number one. The 196 00:11:48,340 --> 00:11:53,299 Suze: value of this product depends heavily, KT on your existing 197 00:11:53,299 --> 00:11:54,108 Suze: Medicare 198 00:11:54,619 --> 00:12:00,330 Suze: and supplemental coverage, your travel habits and your risk tolerance. 199 00:12:00,750 --> 00:12:06,280 Suze: So number one, legitimate company, but they have seriously mixed reviews. 200 00:12:06,669 --> 00:12:10,108 Suze: Now some people love them. If you go to Trustpilot, 201 00:12:10,229 --> 00:12:13,309 Suze: you'll see that many customers kind of praise them and 202 00:12:13,309 --> 00:12:14,968 Suze: things like that. However... 203 00:12:16,960 --> 00:12:22,239 Suze: It also has many cons against it. Some people report 204 00:12:22,239 --> 00:12:26,000 Suze: that they're pushy, they're pressured to sell, they didn't receive 205 00:12:26,000 --> 00:12:29,859 Suze: the contract details, and on and on and on. Now, 206 00:12:29,919 --> 00:12:33,020 Suze: what's important for all of you to understand is this 207 00:12:33,559 --> 00:12:37,640 Suze: the pricing that this person just named in the email 208 00:12:37,640 --> 00:12:41,439 Suze: that she sent KT is exactly the same pricing that's 209 00:12:41,440 --> 00:12:45,260 Suze: on the MASA website. There is no deal there. 210 00:12:45,710 --> 00:12:48,589 Suze: So, if you really want it, you can go and 211 00:12:48,590 --> 00:12:53,429 Suze: look at it, but chances are for like $6,400 or 212 00:12:53,429 --> 00:12:57,570 Suze: whatever it is, I just, I just, I don't know. 213 00:12:58,369 --> 00:13:00,349 Suze: I think twice, but here's the thing you really got 214 00:13:00,349 --> 00:13:03,179 Suze: to think about, you'd never buy anything on the spot, 215 00:13:03,419 --> 00:13:07,349 Suze: you research it, go and see what others are saying 216 00:13:07,349 --> 00:13:11,030 Suze: about it. Some people like it, and some people do not. 217 00:13:11,760 --> 00:13:14,880 Suze: And maybe you don't need it at all. All right, KT. 218 00:13:15,760 --> 00:13:19,200 KT: A lot of those seniors are pressured into being embarrassed 219 00:13:19,200 --> 00:13:22,130 KT: if they don't buy because they just got a free lunch, 220 00:13:22,650 --> 00:13:25,250 KT: and that's the sad thing. You should always say thank 221 00:13:25,250 --> 00:13:27,848 KT: you so much for my lunch. Let me think about it. 222 00:13:27,929 --> 00:13:29,000 KT: I'll get back to you. 223 00:13:29,090 --> 00:13:30,848 Suze: You know what I've always wanted us to do in 224 00:13:30,849 --> 00:13:33,070 Suze: Florida because they're rampant here in Florida. 225 00:13:33,479 --> 00:13:34,989 KT: We get these invites... 226 00:13:35,570 --> 00:13:36,669 Suze: All the time, and I'm like, 227 00:13:36,760 --> 00:13:36,809 KT: Once a week at least 228 00:13:36,929 --> 00:13:39,609 Suze: KT, let's go. Let's go get a free lunch and 229 00:13:39,609 --> 00:13:42,489 Suze: let's see what happens when the people giving it see 230 00:13:42,489 --> 00:13:44,770 Suze: Suze Orman and KT walk in and sit down. 231 00:13:45,549 --> 00:13:48,489 Suze: I've often wanted to do that. Should we do that? 232 00:13:48,989 --> 00:13:49,320 KT: No. 233 00:13:49,469 --> 00:13:50,229 Suze: Why not? 234 00:13:50,349 --> 00:13:51,210 KT: It's sad. 235 00:13:51,590 --> 00:13:52,219 Suze: I wanna do that. 236 00:13:52,330 --> 00:13:57,349 KT: It's sad for the, for the person standing behind the podium 237 00:13:57,349 --> 00:14:00,390 KT: trying to sell. And no, no, no, we're not. We're not... 238 00:14:00,500 --> 00:14:03,000 Suze: Wait, wait, wait, wait. You feel sorry for the person 239 00:14:03,000 --> 00:14:06,010 Suze: that's trying to sell people something that they probably don't need. 240 00:14:06,979 --> 00:14:10,909 Suze: If it's something legitimate, they should love that Suze Orman 241 00:14:10,909 --> 00:14:14,630 Suze: has walked in to say she'll verify what I'm saying 242 00:14:14,630 --> 00:14:15,309 Suze: is true. 243 00:14:15,919 --> 00:14:17,799 Suze: If all of a sudden they get embarrassed and they 244 00:14:17,799 --> 00:14:20,570 Suze: freaked out, that is a sign that everybody should get 245 00:14:20,570 --> 00:14:25,000 Suze: up and leave after dessert, including us. Next question, Miss. Travis. 246 00:14:25,210 --> 00:14:28,750 KT: This is from Marie. She said, Hi, Suze and KT. 247 00:14:29,010 --> 00:14:31,989 KT: I just met with my Fidelity representative. 248 00:14:33,260 --> 00:14:35,289 Suze: Of course. Oh, wait, wait, want me to tell you 249 00:14:35,289 --> 00:14:36,880 Suze: what the Fidelity rep wants to... 250 00:14:37,039 --> 00:14:38,210 KT: No, no, no. 251 00:14:39,640 --> 00:14:42,239 KT: He kept trying to get me to move my money 252 00:14:42,239 --> 00:14:47,039 KT: into fixed rate contract annuities telling me that they are 253 00:14:47,039 --> 00:14:50,780 KT: good annuities and that they are the same as CDs. 254 00:14:51,080 --> 00:14:55,239 KT: I went through your prior annuity podcast, and I'm still 255 00:14:55,239 --> 00:14:57,599 KT: not sure if this is a good idea. 256 00:14:57,940 --> 00:15:02,229 KT: The word annuities makes me nervous because there are so 257 00:15:02,229 --> 00:15:06,030 KT: many bad ones out there. Are these OK to invest in, 258 00:15:06,039 --> 00:15:07,590 KT: or is this a scam? 259 00:15:07,979 --> 00:15:11,469 Suze: Vote number one, it's not a scam. So Marie, just 260 00:15:11,469 --> 00:15:14,710 Suze: know that. But why did I know that that was 261 00:15:14,710 --> 00:15:19,690 Suze: gonna happen? It's because every email I'm not joshing right now, KT, 262 00:15:20,099 --> 00:15:26,309 Suze: that we get who meets with a Fidelity advisor all says: 263 00:15:26,669 --> 00:15:31,710 Suze: Annuity, annuity, annuity. I have not gotten one where the 264 00:15:31,710 --> 00:15:36,000 Suze: email says, oh, this index fund, do this, do that. 265 00:15:36,469 --> 00:15:41,950 Suze: Obviously the adviser on some level is being compensated for that. 266 00:15:42,030 --> 00:15:46,650 Suze: I don't think they're being compensated by the normal 5, 7, 8% commission, 267 00:15:46,830 --> 00:15:48,609 Suze: but there's something going on. 268 00:15:49,070 --> 00:15:52,880 Suze: And so if you meet with a Fidelity adviser and 269 00:15:52,880 --> 00:15:56,400 Suze: they suggest any type of annuity, can you just ask 270 00:15:56,400 --> 00:15:58,960 Suze: them how much do they pay you? Do you get 271 00:15:58,960 --> 00:16:02,440 Suze: more if you suggest an annuity to me versus an 272 00:16:02,440 --> 00:16:06,719 Suze: index fund? Can you just ask them that question? But 273 00:16:06,719 --> 00:16:08,739 Suze: what is not OK, 274 00:16:09,479 --> 00:16:14,039 Suze: is that an annuity is not like a certificate of 275 00:16:14,039 --> 00:16:19,599 Suze: deposit on any level. A certificate of deposit comes with 276 00:16:19,599 --> 00:16:24,000 Suze: a guarantee from the federal government, FDIC, if it's from 277 00:16:24,000 --> 00:16:28,039 Suze: a bank, up to 250,000. An annuity 278 00:16:28,549 --> 00:16:33,429 Suze: is a whole different guarantee, and it's subject to the 279 00:16:33,429 --> 00:16:37,390 Suze: claims paying ability of the issuing company, meaning that if 280 00:16:37,390 --> 00:16:41,489 Suze: the insurer gets in trouble, KT, your guarantee is only 281 00:16:41,489 --> 00:16:43,330 Suze: as good as their balance sheet. 282 00:16:43,700 --> 00:16:48,159 Suze: And it's with a state guarantee association offering some backdrop, 283 00:16:48,419 --> 00:16:52,580 Suze: but it's not FDIC level protection. So shame on that 284 00:16:52,580 --> 00:16:56,359 Suze: adviser for saying to this person that it was just 285 00:16:56,580 --> 00:17:01,419 Suze: like a certificate of deposit. That's number one. She didn't 286 00:17:01,419 --> 00:17:05,780 Suze: say how old she is, but with an annuity. 287 00:17:06,859 --> 00:17:09,979 Suze: If you take out your money before the age of 288 00:17:09,979 --> 00:17:14,250 Suze: 59 and a half, not only do you pay ordinary 289 00:17:14,250 --> 00:17:18,000 Suze: income tax on it, KT, but there's a 10% penalty 290 00:17:18,329 --> 00:17:24,099 Suze: as well. Now, most annuity companies do allow you to 291 00:17:24,099 --> 00:17:25,540 Suze: take out 10% 292 00:17:25,989 --> 00:17:30,389 Suze: a year without any of the 10% penalty, but you 293 00:17:30,390 --> 00:17:34,750 Suze: still will pay ordinary income tax on it. Also, there 294 00:17:34,750 --> 00:17:40,109 Suze: is a surrender charge with most of these annuities. Fidelity 295 00:17:40,109 --> 00:17:45,400 Suze: sells what's called multi-year guaranteed annuities, so it's for three years, 296 00:17:45,420 --> 00:17:48,910 Suze: and the interest rate is guaranteed for that 5 years that. 297 00:17:48,989 --> 00:17:52,670 Suze: But there's a surrender charge, and the surrender charge with 298 00:17:52,670 --> 00:17:54,129 Suze: the one that's three years. 299 00:17:54,449 --> 00:17:58,280 Suze: It is 7% a year for all three years. So 300 00:17:58,280 --> 00:18:02,069 Suze: if something happens and she needs to come out seriously, 301 00:18:02,209 --> 00:18:03,930 Suze: it's 7%. 302 00:18:04,699 --> 00:18:08,849 Suze: Now the 7% can never go into her original principal, 303 00:18:09,050 --> 00:18:12,500 Suze: but it can sure go into her interest that she's 304 00:18:12,500 --> 00:18:19,438 Suze: earned if it's a 5 year annuity, it goes 7-7-7-6-5. 305 00:18:19,900 --> 00:18:22,040 Suze: So for every one of those years, 306 00:18:22,469 --> 00:18:27,069 Suze: there is a surrender charge, so there are so many 307 00:18:27,069 --> 00:18:31,510 Suze: things that you need to think about. Obviously a certificate 308 00:18:31,510 --> 00:18:35,889 Suze: of deposit, when you get your interest, it's taxed yearly. 309 00:18:36,229 --> 00:18:40,689 Suze: With an annuity. You don't pay taxes on it until 310 00:18:40,689 --> 00:18:44,750 Suze: you withdraw it or you withdraw the interest. However, with 311 00:18:44,750 --> 00:18:46,469 Suze: all of that said, 312 00:18:46,790 --> 00:18:54,410 Suze: with certain annuities in certain situations when they are fixed 313 00:18:55,030 --> 00:18:57,609 Suze: and you know you're not going to need the money 314 00:18:58,050 --> 00:19:02,310 Suze: and you want your interest rate to compound and at 315 00:19:02,310 --> 00:19:05,169 Suze: the end of the three years or the 5 years 316 00:19:05,349 --> 00:19:08,329 Suze: you just want to draw it out little by little. 317 00:19:09,400 --> 00:19:13,849 Suze: OK, I don't necessarily have a problem with it, but 318 00:19:13,849 --> 00:19:17,609 Suze: there are many, many things that you need to really 319 00:19:17,609 --> 00:19:22,290 Suze: think about before you do this. Not so bad, Marie, 320 00:19:22,530 --> 00:19:25,530 Suze: but shame on the adviser for saying that they were 321 00:19:25,530 --> 00:19:27,900 Suze: just like a CD. 322 00:19:29,359 --> 00:19:29,979 Suze: Go on, KT. 323 00:19:30,680 --> 00:19:33,229 KT: Suze, our next question is from Justin... 324 00:19:33,229 --> 00:19:35,119 Suze: This is kind of like a mini Susie school. 325 00:19:35,239 --> 00:19:38,239 KT: Well, listen to Justin's first line. We're gonna have to... 326 00:19:38,760 --> 00:19:41,609 KT: maybe I'll send him a little something. He said, Hi, 327 00:19:41,719 --> 00:19:43,020 KT: Susze and KT. 328 00:19:43,800 --> 00:19:46,459 KT: I am one of the men smart enough to listen 329 00:19:46,459 --> 00:19:50,939 KT: and so enjoy starting my Sundays and Thursdays with you. 330 00:19:52,339 --> 00:19:55,140 KT: Uh oh, Justin, you only get us on Sunday this summer. 331 00:19:55,959 --> 00:19:58,119 Suze: Well, unless Robert wants to play best of on Thursday. 332 00:19:58,319 --> 00:20:01,040 Suze: Maybe he could always do that. All right, so that's 333 00:20:01,040 --> 00:20:01,520 Suze: an idea. 334 00:20:01,709 --> 00:20:05,400 KT: That's a good idea. I am working on my revocable trust, 335 00:20:05,439 --> 00:20:08,510 KT: and I have a question about our home. My wife 336 00:20:08,510 --> 00:20:11,520 KT: and I have about 10 years left on our mortgage. 337 00:20:11,800 --> 00:20:17,149 KT: Should we contact the mortgage company and get approval to 338 00:20:17,150 --> 00:20:20,479 KT: transfer the title of our home to the trust. 339 00:20:21,390 --> 00:20:25,239 KT: Or is it OK to utilize a transfer on death 340 00:20:25,239 --> 00:20:29,800 KT: deed which would transfer the title of the house upon 341 00:20:29,800 --> 00:20:32,280 KT: our deaths to the trust? 342 00:20:32,599 --> 00:20:35,800 Suze: I wouldn't do it that way, and the main reason 343 00:20:35,800 --> 00:20:37,180 Suze: is why. 344 00:20:38,000 --> 00:20:43,180 Suze: What for? First of all, you do not need approval 345 00:20:43,439 --> 00:20:47,400 Suze: to have your home transferred into the name of the 346 00:20:47,400 --> 00:20:51,520 Suze: trust as long as it's still your primary residency and 347 00:20:51,520 --> 00:20:55,630 Suze: you continue to occupy it and all of that, all right? 348 00:20:55,680 --> 00:20:59,030 Suze: You don't need to, you're actually protected by law. 349 00:21:00,449 --> 00:21:04,010 Suze: There is a law, an act, and I think it's 350 00:21:04,010 --> 00:21:09,050 Suze: called the G A R N Street Germaine Act. Did 351 00:21:09,050 --> 00:21:09,669 Suze: you know that? 352 00:21:11,640 --> 00:21:11,746 KT: No. 353 00:21:11,746 --> 00:21:13,380 Suze: Right, where it says, (Suze starts laughing) 354 00:21:22,069 --> 00:21:24,948 KT: Suze, it's like me asking you, do you know how 355 00:21:24,949 --> 00:21:26,430 KT: to make a zucchini wrap? 356 00:21:26,989 --> 00:21:27,800 Suze: I do now. 357 00:21:28,890 --> 00:21:34,599 Suze: Anyway, where a lender cannot enforce a due on sale 358 00:21:34,599 --> 00:21:38,709 Suze: clause when you transfer your primary residency into a revocable 359 00:21:38,709 --> 00:21:42,969 Suze: living trust again, as long as you remain a beneficiary 360 00:21:42,969 --> 00:21:46,250 Suze: of the trust and you continue to occupy the home 361 00:21:46,630 --> 00:21:51,050 Suze: as your primary residency now if it's a co-op, 362 00:21:51,500 --> 00:21:54,188 Suze: in New York, for instance, they may have a problem 363 00:21:54,189 --> 00:21:56,479 Suze: with it, so they may not let you do it. 364 00:21:56,829 --> 00:22:01,310 Suze: But the truth of the matter is you normally can 365 00:22:01,310 --> 00:22:04,150 Suze: do it, so you don't have to inform your lender 366 00:22:04,150 --> 00:22:07,369 Suze: that you are going to be doing that, in my opinion. 367 00:22:07,869 --> 00:22:08,849 Suze: All right, KT. 368 00:22:09,800 --> 00:22:11,839 KT: OK, that was a funny question. 369 00:22:12,280 --> 00:22:13,900 Suze: KT, What was the name of that act? 370 00:22:15,119 --> 00:22:17,389 KT: Um, shrimp. I... 371 00:22:18,599 --> 00:22:21,260 Suze: Come on, KT, I just said it two minutes ago. 372 00:22:22,880 --> 00:22:24,430 KT: It's Garn 373 00:22:24,430 --> 00:22:28,660 Suze: Garn, Garn, what gar garn, right? Saint... 374 00:22:29,829 --> 00:22:30,750 KT: It's Germaine. 375 00:22:31,810 --> 00:22:34,890 KT: Saint Germain. I know Saint Germain. I lived in Paris. 376 00:22:34,890 --> 00:22:35,579 Suze: Thats' why I am asking you... 377 00:22:35,930 --> 00:22:38,329 KT: Saint Germain, Saint Germain. 378 00:22:38,449 --> 00:22:42,069 Suze: Act now. You'll never forget it. And what's it good for? 379 00:22:42,810 --> 00:22:44,179 KT: I don't know, but 380 00:22:45,739 --> 00:22:50,000 Suze: You do. It protects people from having to pay off 381 00:22:50,140 --> 00:22:52,229 Suze: their mortgage when they put it in trust. 382 00:22:52,939 --> 00:22:56,140 Suze: Oh, there's my girl. OK, now we just have to 383 00:22:56,140 --> 00:22:59,020 Suze: figure something out like that with Roth. What would be 384 00:22:59,020 --> 00:23:00,959 Suze: very Parisian with a Roth? 385 00:23:01,920 --> 00:23:01,939 KT: Hmm. 386 00:23:05,790 --> 00:23:07,699 Suze: All right, never mind. Go on to the next question. 387 00:23:08,099 --> 00:23:11,969 KT: Here's my next question. This is from Tristan. He wrote, Hi, 388 00:23:12,040 --> 00:23:17,109 KT: Auntie Suze and Auntie KT. All right, Tristan, here we go. 389 00:23:18,119 --> 00:23:22,419 KT: Tristan over here, a millennial man smart enough to listen. 390 00:23:22,750 --> 00:23:25,489 KT: Hope you ladies are staying out of trouble so far 391 00:23:25,489 --> 00:23:29,829 KT: this summer. I think he knows us. Right now, my 392 00:23:29,829 --> 00:23:35,188 KT: entire social circle is wrapped up in FOMO over these 393 00:23:35,189 --> 00:23:39,270 KT: massive summer IPOs. Do you know what FOMO is, Suze? 394 00:23:40,030 --> 00:23:41,000 Suze: Are you kidding me. 395 00:23:41,000 --> 00:23:46,199 KT: Fear of missing out. As you know, SpaceX just made 396 00:23:46,199 --> 00:23:49,000 KT: its public debut, and all my friends... 397 00:23:49,349 --> 00:23:51,119 Suze: I have a question. Did you have to look up 398 00:23:51,119 --> 00:23:52,198 Suze: what FOMO meant? 399 00:23:52,560 --> 00:23:55,719 KT: Yes, because I didn't know what a FOMO was. 400 00:24:00,189 --> 00:24:03,310 KT: All right, let me keep going. It gets better. It 401 00:24:03,310 --> 00:24:06,530 KT: gets really better. Ready for this because I, I added something. 402 00:24:07,030 --> 00:24:10,349 KT: All my friends are bragging about the share allocations they 403 00:24:10,349 --> 00:24:15,219 KT: managed to get as real investors. That's from SpaceX. I 404 00:24:15,219 --> 00:24:21,139 KT: sat the SpaceX IPO out with OpenAI and Anthropic's IPO 405 00:24:21,140 --> 00:24:24,540 KT: on the horizon within a few weeks and a month apart. 406 00:24:24,989 --> 00:24:26,390 KT: Should I consider participating, 407 00:24:27,099 --> 00:24:32,500 KT: in the upcoming IPO share allocation even with the 15 408 00:24:32,500 --> 00:24:36,859 KT: to 30 day lockup period. The financials seem to be 409 00:24:36,859 --> 00:24:41,699 KT: in better shape than SpaceX. I try to practice discipline 410 00:24:41,699 --> 00:24:45,300 KT: as you always said in your podcast, but resisting the 411 00:24:45,300 --> 00:24:50,218 KT: FOMO is tough when these IPOs are the only thing 412 00:24:50,219 --> 00:24:54,520 KT: people talk about at your social functions and work right now. 413 00:24:54,989 --> 00:24:58,979 KT: I value your judgment more than the hype machine. Thank 414 00:24:58,979 --> 00:25:02,659 KT: you as always. And then Tristan also gave us a 415 00:25:02,660 --> 00:25:07,260 KT: bonus question. World Cup, Suze, who do you think's gonna win? 416 00:25:07,339 --> 00:25:09,300 Suze: It's not, who do I think is gonna win. 417 00:25:09,859 --> 00:25:10,659 KT: Who do you know is gonna win? 418 00:25:10,900 --> 00:25:11,819 Suze: It's not who I know is gonna. 419 00:25:11,890 --> 00:25:12,869 KT: Who do you want to win? 420 00:25:13,329 --> 00:25:17,429 Suze: USA baby. USA baby. What? 421 00:25:17,900 --> 00:25:18,479 Suze: Not me. 422 00:25:21,150 --> 00:25:21,239 Suze: What gotten into you? 423 00:25:21,239 --> 00:25:22,130 KT: I want Colombia. 424 00:25:23,329 --> 00:25:24,739 Suze: Oh, because of Colo. 425 00:25:25,689 --> 00:25:29,560 KT: Yes, I want Colombia. Don't tell anyone, but... 426 00:25:29,560 --> 00:25:30,430 Suze: You just told everybody, 427 00:25:30,660 --> 00:25:32,849 KT: ... if they don't get it, I want USA to win. 428 00:25:33,060 --> 00:25:37,750 KT: USA is doing a great job, but Colombia's in the, 429 00:25:38,209 --> 00:25:38,849 KT: in there. 430 00:25:39,050 --> 00:25:39,319 Suze: Right, so... 431 00:25:39,530 --> 00:25:42,449 KT: So, so wait, I, I also wanna tell Tristan what 432 00:25:42,449 --> 00:25:46,369 KT: you want to maybe do, Tristan, and discuss this with 433 00:25:46,369 --> 00:25:49,609 KT: your friends. Tell them you're part of a growing counter 434 00:25:49,609 --> 00:25:51,780 KT: concept called JOMO. 435 00:25:52,680 --> 00:25:54,459 KT: Do you know what Jomo is, Suze? 436 00:25:55,869 --> 00:25:58,489 KT: It's true. It's a, it's a, it's a real deal. 437 00:25:59,069 --> 00:26:02,639 Suze: You have just asked me a question that I don't 438 00:26:02,640 --> 00:26:05,199 Suze: have a clue what the answer is. Wait, what do 439 00:26:05,199 --> 00:26:05,680 Suze: you think about that? 440 00:26:06,800 --> 00:26:09,280 KT: I think that's great. Here, listen to what it is. 441 00:26:09,400 --> 00:26:09,619 Suze: Wait, aren't you impressed? 442 00:26:09,949 --> 00:26:14,000 KT: Tristan and Suze, you might wanna be part of the 443 00:26:14,000 --> 00:26:16,890 KT: growing counter concept called JOMO. 444 00:26:17,000 --> 00:26:18,079 Suze: What is that? 445 00:26:18,079 --> 00:26:20,300 KT: Joy of missing out. 446 00:26:20,760 --> 00:26:21,560 Suze: Is that true? 447 00:26:21,680 --> 00:26:23,919 KT: Yes, it is. It's real. 448 00:26:24,489 --> 00:26:27,010 KT: Because I didn't know what FOMO was, so I did 449 00:26:27,010 --> 00:26:29,609 KT: have to look it up, and they said you may 450 00:26:29,609 --> 00:26:32,810 KT: want to be part of the growing counter concept or 451 00:26:32,810 --> 00:26:37,229 KT: counterculture called JOMO, the joy of missing out. 452 00:26:38,800 --> 00:26:39,760 KT: There you go. 453 00:26:40,280 --> 00:26:42,160 Suze: Do you not want me to answer his question, or 454 00:26:42,160 --> 00:26:43,619 Suze: do you feel like that was it? 455 00:26:44,430 --> 00:26:49,989 KT: Oh, I forgot. Oh yeah, answer Tristan's question. He wants 456 00:26:49,989 --> 00:26:51,569 KT: to know if he should join the... 457 00:26:51,829 --> 00:26:52,969 Suze: Yeah, listen to me. 458 00:26:55,949 --> 00:27:01,349 Suze: You know, you have to really understand that an IPO 459 00:27:01,349 --> 00:27:02,770 Suze: is not like a celebration. 460 00:27:03,589 --> 00:27:07,189 Suze: It's like this exit strategy. It is the moment, now 461 00:27:07,189 --> 00:27:17,030 Suze: listen to me closely, when angel investors, venture capitalists, private equity, founders, 462 00:27:17,040 --> 00:27:22,390 Suze: and early employees finally get to turn paper wealth into 463 00:27:22,390 --> 00:27:23,810 Suze: real money. 464 00:27:25,180 --> 00:27:29,219 Suze: And that's what it is all about. They are selling, 465 00:27:29,670 --> 00:27:34,219 Suze: you are buying, you got that? And that alone should 466 00:27:34,219 --> 00:27:38,819 Suze: tell you everything. I can tell you, because a lot 467 00:27:38,819 --> 00:27:43,140 Suze: of our money is invested in private equity. 468 00:27:43,770 --> 00:27:46,810 Suze: And when you invest in private equity, you don't know 469 00:27:46,810 --> 00:27:49,260 Suze: if you're gonna get any money back, you don't know 470 00:27:49,260 --> 00:27:51,659 Suze: how long it's gonna be tied up for, and if 471 00:27:51,660 --> 00:27:56,780 Suze: it happens to IPO such as a SpaceX, then you 472 00:27:56,780 --> 00:28:00,780 Suze: are waiting for your lockup period to come up where 473 00:28:00,780 --> 00:28:04,099 Suze: you can sell in most cases, and make a lot 474 00:28:04,099 --> 00:28:04,739 Suze: of money. 475 00:28:05,359 --> 00:28:09,260 Suze: So, again, I want you to think about that. Now, 476 00:28:09,479 --> 00:28:14,359 Suze: why are IPOs high priced? Why do they price them 477 00:28:14,359 --> 00:28:17,319 Suze: so high? Think about this, Tristan. 478 00:28:17,930 --> 00:28:23,329 Suze: And it is because the sellers want the highest possible valuation, 479 00:28:23,780 --> 00:28:29,219 Suze: because the banks want the highest possible fees, because the 480 00:28:29,219 --> 00:28:34,660 Suze: media wants the highest possible excitement, so you are not 481 00:28:34,660 --> 00:28:38,339 Suze: invited to a party, my friend. You are being invited 482 00:28:38,339 --> 00:28:42,339 Suze: to provide liquidity. That's what you are doing. 483 00:28:42,739 --> 00:28:47,800 Suze: So why do retail investors get the worst terms? Because 484 00:28:47,810 --> 00:28:52,010 Suze: you are the least informed participant. You don't see... and 485 00:28:52,010 --> 00:28:56,719 Suze: all your friends, they have not seen the secondary market transactions, 486 00:28:56,930 --> 00:29:01,988 Suze: the private valuations, the liquidation preferences, the inside lockup schedules, 487 00:29:02,130 --> 00:29:07,869 Suze: the debt covenants, the dilution waterfalls. You see the marketing. 488 00:29:08,329 --> 00:29:11,770 Suze: So how do you resist the FOMO when everyone around 489 00:29:11,770 --> 00:29:13,300 Suze: you is bragging. 490 00:29:13,739 --> 00:29:19,560 Suze: You already know the answer. FOMO is not a financial strategy, 491 00:29:19,819 --> 00:29:23,040 Suze: and here's the mind shift that I want for you. 492 00:29:23,339 --> 00:29:28,180 Suze: Your friends are chasing excitement. You are building wealth. They 493 00:29:28,180 --> 00:29:31,300 Suze: are not the same sport, and the people who brag 494 00:29:31,300 --> 00:29:34,930 Suze: the loudest at parties are almost never the ones who 495 00:29:34,930 --> 00:29:38,260 Suze: retire early. Just saying. 496 00:29:38,810 --> 00:29:41,489 Suze: OK, I could have given a talk on stage with 497 00:29:41,489 --> 00:29:44,010 Suze: that one. Do you see how these are kind of 498 00:29:44,010 --> 00:29:44,489 Suze: like mini Suze Schools? 499 00:29:45,369 --> 00:29:48,449 KT: That was a good one. OK, next question says in 500 00:29:48,449 --> 00:29:51,349 KT: the subject retirement, baby. 501 00:29:52,810 --> 00:29:56,540 KT: Hi Suze and KT, my husband and I love your podcast. 502 00:29:56,650 --> 00:29:59,530 KT: We have learned so much over the years. Thank you. 503 00:29:59,930 --> 00:30:04,729 KT: We are retiring early in 2027. We plan to sell 504 00:30:04,729 --> 00:30:09,969 KT: our home in Pennsylvania and downsize in North Carolina. The 505 00:30:09,969 --> 00:30:14,770 KT: list price of $635,000 for our home, which we own 506 00:30:14,770 --> 00:30:18,569 KT: outright and have no debt, will be the basis for 507 00:30:18,569 --> 00:30:21,890 KT: the budget on the investment in our next home. 508 00:30:22,510 --> 00:30:25,319 KT: We are moving in with my father to conduct our 509 00:30:25,319 --> 00:30:29,660 KT: home search and anticipate being there two to six months. 510 00:30:30,030 --> 00:30:33,099 KT: What should we do with the money during this time? 511 00:30:33,430 --> 00:30:36,630 KT: We plan to pay cash for a home when we 512 00:30:36,630 --> 00:30:38,550 KT: figure out where we wish to settle. 513 00:30:39,099 --> 00:30:43,530 KT: I will also get paid out for any unused accrued 514 00:30:43,530 --> 00:30:47,540 KT: vacation and sick time when I retire. At this moment 515 00:30:47,540 --> 00:30:53,660 KT: I anticipate that to be about $9,000. Is this considered 516 00:30:53,660 --> 00:30:58,540 KT: earned income? I'd like to maximize my Roth contribution in 517 00:30:58,540 --> 00:31:01,239 KT: 2027 despite retiring. 518 00:31:01,790 --> 00:31:04,670 KT: So she has two questions. What does she do with 519 00:31:04,670 --> 00:31:07,550 KT: the money from the income of her home? 520 00:31:07,670 --> 00:31:11,310 Suze: Well, here's what concerns me. She says the money we 521 00:31:11,310 --> 00:31:14,349 Suze: make from the sale of our home will be our 522 00:31:14,349 --> 00:31:19,670 Suze: budget for our next home. Just take into consideration here 523 00:31:19,670 --> 00:31:21,988 Suze: that if you have a home that you put on 524 00:31:21,989 --> 00:31:26,300 Suze: the market for 635, chances are you're the one who's 525 00:31:26,300 --> 00:31:29,430 Suze: gonna have to pay the 6% commission or 526 00:31:29,535 --> 00:31:34,814 Suze: so, to sell the house, which will be about $38,100 527 00:31:35,175 --> 00:31:41,834 Suze: so you're only going to have $596,900 for a new home. 528 00:31:42,255 --> 00:31:47,295 Suze: Just make sure that you have everything correct to know 529 00:31:47,295 --> 00:31:50,974 Suze: what you can really afford. You're going to do this 530 00:31:50,974 --> 00:31:53,295 Suze: in two to six months or so. 531 00:31:53,939 --> 00:31:56,699 Suze: You need to keep that money safe and sound, so 532 00:31:56,699 --> 00:32:03,369 Suze: put it in the highest yielding money market account, insured account, treasuries, liquid, 533 00:32:03,619 --> 00:32:06,540 Suze: everything liquid, so that when you find something, you can 534 00:32:06,540 --> 00:32:09,010 Suze: get it right away. You are not to invest this 535 00:32:09,010 --> 00:32:12,540 Suze: money in the stock market or anything else. Do you 536 00:32:12,540 --> 00:32:16,979 Suze: hear me? As far as you getting paid for any 537 00:32:16,979 --> 00:32:21,109 Suze: unused accrued vacation and sick time when you retire, guess what? 538 00:32:22,310 --> 00:32:26,390 Suze: That will count as earned income and because you are 539 00:32:26,390 --> 00:32:31,079 Suze: retiring in '27 early, as long as you have earned 540 00:32:31,079 --> 00:32:35,459 Suze: income in '27, and that's when you take it, you'll 541 00:32:35,459 --> 00:32:38,839 Suze: be fine. It will be counted as earned income. Give 542 00:32:38,839 --> 00:32:39,630 Suze: me one more, KT. 543 00:32:40,060 --> 00:32:42,680 KT: OK, this is another mortgage question, a good one. 544 00:32:43,040 --> 00:32:46,560 KT: My question, this is from Elaine. She said, Suze, my 545 00:32:46,560 --> 00:32:48,839 KT: question is I am 70 years old and I have 546 00:32:48,839 --> 00:32:53,839 KT: a mortgage of $97,000. If I pay it off now, 547 00:32:54,079 --> 00:32:58,300 KT: it will be a payoff of $55,000. I may move, 548 00:32:58,479 --> 00:33:05,199 KT: but it is not necessary. My monthly mortgage payment is $634. 549 00:33:05,479 --> 00:33:11,959 KT: If I use cash, I reduce my interest by $1,330 550 00:33:11,959 --> 00:33:12,760 KT: a year. 551 00:33:13,229 --> 00:33:15,510 KT: I just need a thought on this. 552 00:33:16,060 --> 00:33:18,589 Suze: Well, let me give you my thought. I wish I 553 00:33:18,589 --> 00:33:22,660 Suze: knew for sure that the $634 of your mortgage payment 554 00:33:22,869 --> 00:33:27,469 Suze: is simply for a mortgage payment and not including your 555 00:33:27,469 --> 00:33:31,469 Suze: property taxes and insurance, but I'm just going to assume 556 00:33:31,469 --> 00:33:35,589 Suze: that it is. If it were me, think about this 557 00:33:35,589 --> 00:33:35,890 Suze: right now. 558 00:33:36,056 --> 00:33:43,225 Suze: Now you're talking about $50,000 that generates for you $11,330 559 00:33:43,225 --> 00:33:49,836 Suze: a year in interest while that $50,000 in the mortgage 560 00:33:50,255 --> 00:33:54,936 Suze: makes you pay $634 a month for 12 months, which 561 00:33:54,936 --> 00:33:58,816 Suze: is approximately $7,582. 562 00:33:59,241 --> 00:34:03,722 Suze: Even if you took that $7,582 that you wouldn't be 563 00:34:03,722 --> 00:34:08,602 Suze: spending a year, you took away the $1,330 of interest 564 00:34:08,602 --> 00:34:11,562 Suze: that you make on that money, you are still looking 565 00:34:11,562 --> 00:34:19,481 Suze: at $6,252 more in your pocket or an additional $523 566 00:34:19,491 --> 00:34:21,741 Suze: per month. So if it were me. 567 00:34:22,459 --> 00:34:27,259 Suze: That's what I would do. So how was that, your Sunday? 568 00:34:27,489 --> 00:34:29,339 KT: I liked it. It's nice. 569 00:34:29,469 --> 00:34:30,638 Suze: Did you like it or love it? 570 00:34:30,860 --> 00:34:33,800 KT: I loved it. I love being with you on Sunday. 571 00:34:35,000 --> 00:34:38,989 KT: I feel like it's almost like a we're playing. It's nice. 572 00:34:38,989 --> 00:34:40,419 Suze: And it feels different than Thursday? 573 00:34:40,590 --> 00:34:41,810 KT: Totally different. 574 00:34:42,830 --> 00:34:43,989 Suze: Oh, that's great. 575 00:34:44,189 --> 00:34:47,429 KT: Really nice. I'm much more relaxed. I feel like it's 576 00:34:47,429 --> 00:34:51,540 KT: the weekend. I'm much more relaxed. I get very nervous 577 00:34:51,540 --> 00:34:53,790 KT: that we make Thursday perfect. 578 00:34:54,280 --> 00:34:55,840 KT: But Sunday, Sunday... 579 00:34:56,159 --> 00:34:57,888 Suze: Sunday, you don't care what we do on Sunday. 580 00:34:58,239 --> 00:35:00,080 KT: We can have, we can tell jokes. We can have 581 00:35:00,080 --> 00:35:00,879 KT: a little more fun. 582 00:35:01,159 --> 00:35:05,060 Suze: All right, everybody, I hope you are excited as us 583 00:35:05,129 --> 00:35:09,659 Suze: for our news. And so until next Sunday, there's only 584 00:35:09,659 --> 00:35:11,840 Suze: one thing that we want you to remember, and what 585 00:35:11,840 --> 00:35:13,040 Suze: is that, Miss. Travis? 586 00:35:13,159 --> 00:35:14,699 KT: Happy July 4th. 587 00:35:15,030 --> 00:35:20,129 Suze: Oh Jesus. All right, everybody, people first, then money, then things. 588 00:35:20,350 --> 00:35:22,709 Suze: Now you stay safe. 589 00:35:22,830 --> 00:35:23,589 KT: Happy birthday, America. 590 00:35:24,830 --> 00:35:27,370 Suze: Oh, she's so sweet, isn't she?