WEBVTT - Three Rules That Beat Budgeting 0:00:08.090 --> 0:00:11.969 Hello, Suze, and good morning everyone and welcome to the 0:00:11.970 --> 0:00:15.289 Women in Money podcast and everyone's smart enough to listen. 0:00:15.609 --> 0:00:17.530 This is KT in the house. 0:00:18.049 --> 0:00:20.389 And today is a very special day. 0:00:21.840 --> 0:00:25.090 KT. Wait, everybody gotta listen to me. So we're about 0:00:25.090 --> 0:00:28.110 to start the podcast, and I said, You wanna start? 0:00:28.180 --> 0:00:30.219 You wanna do it? And she goes, Yeah, I can 0:00:30.219 --> 0:00:30.729 do it. 0:00:30.860 --> 0:00:31.899 What's wrong with that? 0:00:31.979 --> 0:00:33.009 What day is today? 0:00:33.299 --> 0:00:34.409 I didn't get there yet. 0:00:34.939 --> 0:00:35.520 That's how you start. 0:00:36.979 --> 0:00:41.220 No, I'm doing it KT way. Today's Thursday, January 22nd, and 0:00:41.220 --> 0:00:44.139 why did I wait to give you that date? Because 0:00:44.139 --> 0:00:47.180 it's Don Race's birthday. 0:00:47.659 --> 0:00:52.989 And Don is our brother-in-law, the daddy of Sophia and 0:00:52.990 --> 0:00:57.229 Travis that you've heard about for years, and he's on 0:00:57.229 --> 0:01:01.750 his way to Oregon to carve wood. Unbelievable. 0:01:02.770 --> 0:01:07.610 You, you, you're cracking me up here already, Travis. 0:01:07.785 --> 0:01:12.105 You know that you forgot to start with January 22, 2026. 0:01:12.434 --> 0:01:12.705 Here we go. 0:01:12.864 --> 0:01:13.105 No, no, 0:01:13.625 --> 0:01:19.785 Today is January 22nd, 2026, the birthday of Don. 0:01:20.184 --> 0:01:23.345 No, stop, stop, stop. Anyway, Don, we wish you a very, 0:01:23.584 --> 0:01:27.425 very happy birthday. We love you so much. How old 0:01:27.425 --> 0:01:27.925 is he? 0:01:28.569 --> 0:01:29.260 We don't know. 0:01:29.370 --> 0:01:30.330 I don't know. It doesn't matter. 0:01:30.330 --> 0:01:32.599 That's how much we love him, everybody. We don't even 0:01:32.599 --> 0:01:33.169 know how old he is. 0:01:33.169 --> 0:01:35.330 He never looks old. He's a handsome man. 0:01:35.489 --> 0:01:38.489 Handsome man. Now this is the Ask KT and Suze 0:01:38.489 --> 0:01:43.169 Anything edition. You want to ask a question, just write 0:01:43.169 --> 0:01:48.230 in to ask Suze S U Z E podcast at gmail.com. 0:01:48.650 --> 0:01:52.169 If KT chooses it, oh, we will answer it on 0:01:52.169 --> 0:01:54.410 the podcast. I just have to say something, KT. 0:01:55.339 --> 0:01:59.029 So as you know, everybody, I read many of the emails. 0:01:59.819 --> 0:02:03.279 Sometimes I answer you directly, as you all know. So 0:02:03.379 --> 0:02:06.900 I'm reading this one email, and it says, so I 0:02:06.900 --> 0:02:09.300 asked you a question a few weeks ago. I didn't 0:02:09.300 --> 0:02:12.850 get an answer, right? How do I know what the 0:02:12.850 --> 0:02:15.619 answer to my question is and how do I know 0:02:15.619 --> 0:02:17.739 when it's gonna be on the podcast? Will you let 0:02:17.740 --> 0:02:18.529 me know? 0:02:19.179 --> 0:02:22.589 And I was like, I just wrote back one simple line. 0:02:22.839 --> 0:02:27.570 You have to listen to the podcast. Just that simple. 0:02:27.639 --> 0:02:28.940 All right, KT, go on. 0:02:29.279 --> 0:02:34.830 Also, she gets thousands, thousands. Also, you're lucky if she 0:02:34.830 --> 0:02:38.559 answers you. It's not something that she ever has to do. 0:02:38.720 --> 0:02:39.940 She loves doing that. 0:02:40.038 --> 0:02:42.139 However, I do want to say something to a few 0:02:42.139 --> 0:02:46.440 of you. You wrote, I answered. You wrote again, and 0:02:46.440 --> 0:02:47.460 I answered. 0:02:47.839 --> 0:02:51.119 You wrote again and then I got tied up and 0:02:51.119 --> 0:02:56.020 I get distracted sometimes and whatever if I've been communicating 0:02:56.020 --> 0:02:58.440 with you and all of a sudden you don't hear 0:02:58.440 --> 0:03:03.038 from me, don't just give up write again just reply 0:03:03.038 --> 0:03:03.160 to 0:03:03.270 --> 0:03:06.070 the emails that have been coming back and forth, so 0:03:06.070 --> 0:03:08.149 it will be brought to my attention again. I go, 0:03:08.190 --> 0:03:11.470 oh yeah, yeah, yeah, yeah, so don't give up. All right, 0:03:11.589 --> 0:03:12.070 go on. 0:03:12.149 --> 0:03:15.949 I'm starting with a question from Ben and I really 0:03:15.949 --> 0:03:18.669 like this and I like you, Ben, for this question. 0:03:19.080 --> 0:03:24.119 Hi KT and Suze, I consider myself very fortunate. I'm 0:03:24.119 --> 0:03:28.639 debt free. I own my own home. I am consistently 0:03:28.639 --> 0:03:34.038 dollar cost averaging into my stock portfolio. I contribute to 0:03:34.038 --> 0:03:38.220 my retirement and I have accessible funds. 0:03:38.710 --> 0:03:41.229 I feel like I could share some of this with 0:03:41.229 --> 0:03:45.289 someone or a cause less fortunate than me, but I'm 0:03:45.289 --> 0:03:49.350 unsure how to determine the right amount. Suze, is there 0:03:49.350 --> 0:03:53.339 a framework or guideline for deciding what is considered an 0:03:53.339 --> 0:03:57.270 appropriate or responsible gift or donation? 0:03:57.990 --> 0:03:58.649 Great question. 0:03:59.110 --> 0:04:00.210 How would you answer that? 0:04:00.630 --> 0:04:01.350 Do what we do, Ben. 0:04:02.110 --> 0:04:02.710 What do we do? 0:04:02.830 --> 0:04:06.029 We, we have charities that we really believe in and 0:04:06.029 --> 0:04:07.750 that we like. One of them is St. Jude's 0:04:08.229 --> 0:04:09.550 No, but that wasn't his question. 0:04:09.710 --> 0:04:10.669 No. Well, hold on... 0:04:10.669 --> 0:04:11.419 How do you decide on a responsible amount? 0:04:12.860 --> 0:04:15.470 10% is probably a good rule of thumb, like, like 0:04:15.470 --> 0:04:17.250 all the tithings that are out there. 0:04:18.000 --> 0:04:19.500 That's how you would answer this question? 0:04:21.279 --> 0:04:21.451 Maybe, yea. 0:04:21.451 --> 0:04:21.479 (Suze makes the wrong answer noise) 0:04:21.479 --> 0:04:22.160 OK, well... 0:04:22.799 --> 0:04:25.160 Give me this. Give me this. Just give me this 0:04:25.160 --> 0:04:28.359 before we even start. I just got to, before we 0:04:28.359 --> 0:04:31.399 even got into this podcast, I got to do my 0:04:31.399 --> 0:04:32.219 favorite thing. (Suze makes the wrong answer noise again) 0:04:34.140 --> 0:04:35.219 You hate that, don't you? 0:04:35.309 --> 0:04:37.390 I do. We need a different noise. 0:04:37.750 --> 0:04:38.470 What should it be? 0:04:38.549 --> 0:04:41.909 I don't know, but we don't need a negative noise 0:04:41.910 --> 0:04:45.549 at this hour in the morning. Answer Ben's question. 0:04:45.950 --> 0:04:47.190 So Ben, listen to me. 0:04:47.959 --> 0:04:51.779 I'll never forget one of the Oprah shows I was doing, 0:04:52.238 --> 0:04:55.459 and there was a woman, and this is really for everybody, 0:04:55.720 --> 0:04:58.799 there was a woman who was in debt. Her car 0:04:58.799 --> 0:05:03.940 was just repossessed. She had credit card debt, but yet 0:05:04.480 --> 0:05:08.670 she was still giving 10% of her money away. I'll 0:05:08.670 --> 0:05:12.399 never forget this, and I looked at her and I said. 0:05:13.149 --> 0:05:16.570 Why would you want to make yourself a burden on God? 0:05:17.309 --> 0:05:21.750 Why would you want to do that? Because isn't it 0:05:21.750 --> 0:05:25.589 true that you're constantly praying to God and saying, God, 0:05:25.640 --> 0:05:28.269 I just wish I had some more money. And she said, Yes, 0:05:28.630 --> 0:05:31.350 I pray for that all the time. And I said, 0:05:31.510 --> 0:05:34.630 You know what, maybe God is saying to you: 0:05:35.190 --> 0:05:38.910 Listen, I'm OK right now. Maybe you could just give 0:05:38.910 --> 0:05:42.809 me 1% or $10 or whatever, but you have got 0:05:42.809 --> 0:05:47.339 to be responsible for yourself and take care of yourself first. 0:05:47.670 --> 0:05:50.739 And then I went on and I said on that 0:05:50.829 --> 0:05:54.910 Oprah show, sometimes it's harder for some people to give 0:05:54.910 --> 0:05:58.549 $1 because they don't have any than it is for 0:05:58.549 --> 0:06:01.630 some people to give $5,000 because they have so much 0:06:01.630 --> 0:06:02.909 or whatever it may be. 0:06:03.649 --> 0:06:07.529 So, Ben, you have to decide on an amount that 0:06:07.529 --> 0:06:13.709 feels responsible to what you have and really what you feel. 0:06:14.049 --> 0:06:16.769 I would tell you in terms of where you should 0:06:16.769 --> 0:06:18.529 give it, your heart will tell you. 0:06:19.320 --> 0:06:22.880 What happens with me is all of a sudden, sometimes 0:06:22.880 --> 0:06:25.679 even I'll be in the car or I'll see somebody 0:06:25.678 --> 0:06:28.660 and I'll just be compelled to give them some money. 0:06:29.279 --> 0:06:33.079 Other times it will be an organization, sometimes it will 0:06:33.079 --> 0:06:34.320 be a person 0:06:35.010 --> 0:06:38.890 who just needs help. I don't get a tax write 0:06:38.890 --> 0:06:42.690 off for it. It doesn't matter. I just want to 0:06:42.690 --> 0:06:47.390 help them because helping them makes my heart feel better. 0:06:47.570 --> 0:06:52.000 It's not about helping them gets me a tax write off. 0:06:52.450 --> 0:06:56.768 My advice to you would be there's no percentage amount 0:06:56.769 --> 0:06:57.980 that should be dictated. 0:06:58.630 --> 0:07:02.070 You know when you should give and when you don't 0:07:02.070 --> 0:07:05.669 want to give. You know who to give to if 0:07:05.670 --> 0:07:09.790 you simply follow your heart. It will lead you to 0:07:09.790 --> 0:07:13.880 the right place to donate money to. Just that simple. 0:07:13.989 --> 0:07:15.089 Next question, KT. 0:07:15.750 --> 0:07:16.980 OK. Next question is from... 0:07:17.510 --> 0:07:18.059 I have a question for you. 0:07:18.190 --> 0:07:18.609 Yeah. 0:07:18.950 --> 0:07:21.750 How come when I give an answer, if you disagree 0:07:21.750 --> 0:07:22.859 with it, you don't go: (and Suze makes the wrong answer noise again). 0:07:26.399 --> 0:07:28.279 I am not gonna go there. 0:07:28.850 --> 0:07:29.559 Why is that? 0:07:29.609 --> 0:07:33.410 This is called the Women and Money podcast. You're Suze Orman, 0:07:33.529 --> 0:07:37.290 the money guru of the world, and I'm KT, and 0:07:37.290 --> 0:07:41.440 I'm gonna disagree with your financial advice? No, no, no, 0:07:41.529 --> 0:07:46.679 I might disagree with your emotional advice, or, but no, 0:07:46.730 --> 0:07:50.609 I'm never gonna disagree with your financial advice. It's made 0:07:50.609 --> 0:07:52.000 me millions of dollars. 0:07:53.119 --> 0:07:56.250 All right, here you go, KT, if you did disagree, 0:07:56.299 --> 0:07:56.489 you would... 0:07:56.600 --> 0:07:58.410 I wouldn't do that noise. 0:07:58.970 --> 0:08:00.929 No, but if you did disagree. 0:08:01.380 --> 0:08:03.820 You would have, you feel like you're powerful enough that 0:08:03.820 --> 0:08:05.130 you would do so, right? 0:08:05.809 --> 0:08:08.829 Yea. Oh, I would, well, we disagree all the time 0:08:08.829 --> 0:08:12.040 off air, so why wouldn't I disagree on air? 0:08:12.109 --> 0:08:13.359 I have absolutely no idea. 0:08:13.989 --> 0:08:17.829 Everybody, I, if I disagree with her, she knows. But 0:08:17.829 --> 0:08:19.390 I'm not gonna disagree about money... 0:08:19.390 --> 0:08:22.549 Guess what, everybody, there is a saying in our household. 0:08:22.630 --> 0:08:23.019 What is it, KT? 0:08:23.260 --> 0:08:24.149 KT is always right. 0:08:24.549 --> 0:08:27.589 Yeah, it just, oh, it irks me. Anyway, go on. 0:08:27.750 --> 0:08:30.209 All right, this is from Elle. 0:08:30.769 --> 0:08:34.049 Hi Suze and KT, I plan on retiring in two 0:08:34.049 --> 0:08:38.369 years at 67 from the federal government. I have a 0:08:38.369 --> 0:08:41.809 car that will be paid off within two years and 0:08:42.049 --> 0:08:45.669 a mortgage balance of $120,000. 0:08:46.150 --> 0:08:54.150 I have a modest TSP under 500,000 and is allocated 50% 0:08:54.150 --> 0:08:58.200 G and 50% C. I don't know what that means, Suze, 0:08:58.349 --> 0:09:00.789 so you'll have to tell us. Should I maintain 0:09:01.030 --> 0:09:07.450 or change that allocation, I may withdraw $20,000 when I retire. 0:09:07.809 --> 0:09:08.929 Thank you for all. 0:09:09.520 --> 0:09:13.130 Elle, first of all, you did not say if your 0:09:13.130 --> 0:09:17.570 TSP was a Roth TSP, which makes me believe it's 0:09:17.570 --> 0:09:22.010 a traditional TSP, which means it's pre-tax. 0:09:22.489 --> 0:09:25.839 So for the next two years, do you hear me, 0:09:26.169 --> 0:09:29.939 for the next two years till you are 67, every 0:09:29.940 --> 0:09:34.570 single penny that you put in to the TSP needs 0:09:34.570 --> 0:09:38.689 to be what? It needs to be a Roth TSP. 0:09:38.929 --> 0:09:44.809 That's number one. Number two, you say that you may 0:09:44.809 --> 0:09:48.869 withdraw 20,000 at retirement. Why? 0:09:49.539 --> 0:09:52.289 If you withdraw that the way you currently have it now, 0:09:52.299 --> 0:09:55.619 and even if you open up a Roth TSP it's 0:09:55.619 --> 0:09:57.460 got to be open for at least five years to 0:09:57.460 --> 0:10:02.218 take it out tax-free unless you have a Roth IRA, 0:10:02.289 --> 0:10:04.218 which I don't think you do because you didn't say 0:10:04.219 --> 0:10:07.580 you did, then you could have converted it to a 0:10:07.580 --> 0:10:11.900 Roth IRA at 67, and if you had had that 0:10:11.900 --> 0:10:14.500 open for five years, then you could have taken out 0:10:14.500 --> 0:10:18.468 the $20,000 possibly tax-free, but that's besides the point. 0:10:18.929 --> 0:10:22.820 But you want to withdraw $20,000 at retirement. 0:10:23.719 --> 0:10:28.270 And the question is: Why? Why would you do that? 0:10:28.489 --> 0:10:32.489 It's going to affect so many things. So, I want 0:10:32.489 --> 0:10:39.039 you to number one, immediately get into a Roth TSP. Also, 0:10:39.250 --> 0:10:42.729 if you're not in a very high income tax bracket 0:10:42.729 --> 0:10:44.010 or you can afford it. 0:10:44.590 --> 0:10:48.270 You might want to because you're now allowed to, as 0:10:48.270 --> 0:10:53.580 of January 28 actually, you're allowed to do in plan conversions, 0:10:53.789 --> 0:10:56.669 so you could take some of the money that's in 0:10:56.669 --> 0:11:01.460 your traditional TSP and now transfer it to a Roth 0:11:01.460 --> 0:11:06.049 TSP that wasn't allowed before January 28 of this year 0:11:06.229 --> 0:11:07.569 for the TSPs. 0:11:08.179 --> 0:11:11.979 In terms of your allocation, KT said, so what's a 0:11:11.979 --> 0:11:15.500 G and what's a C? KT, within the TSP, the 0:11:15.500 --> 0:11:20.609 Thrift Savings Plan, there are many different mutual funds or sections. 0:11:20.940 --> 0:11:23.409 The G is like the government one. It's like a 0:11:23.409 --> 0:11:26.339 money market fund. They pay you an interest rate. It 0:11:26.340 --> 0:11:30.200 doesn't fluctuate. It is good. It is solid. It's there. 0:11:30.659 --> 0:11:34.140 The C is like the Standard and Poor's 500 index, 0:11:34.219 --> 0:11:36.299 like a common stock fund. 0:11:36.729 --> 0:11:41.089 So right now, she is divided 50/50. 0:11:41.979 --> 0:11:47.229 The rule of thumb is when you retire you wanna 0:11:47.229 --> 0:11:52.349 make sure that you have at least three years of 0:11:52.349 --> 0:11:57.309 living expenses in your retirement account within a money market 0:11:57.309 --> 0:12:02.270 account or the G fund in your situation. That's because 0:12:02.270 --> 0:12:06.868 if the market starts to go down, you do not 0:12:06.869 --> 0:12:09.909 want to have to take money from a C fund 0:12:09.909 --> 0:12:11.289 or a stock fund 0:12:11.710 --> 0:12:15.349 when the market is down. So. Elle, you're gonna have 0:12:15.349 --> 0:12:19.229 to decide that you may want more if you really 0:12:19.229 --> 0:12:22.830 need money in the G fund than the C fund, 0:12:22.890 --> 0:12:23.429 just so you know. 0:12:23.429 --> 0:12:25.150 Right now it's a 50/50... 0:12:25.150 --> 0:12:26.369 50/50 split. 0:12:26.690 --> 0:12:29.189 What would you recommend, 75/25? 0:12:29.789 --> 0:12:33.549 No, I wouldn't. I would either. Well, really what she 0:12:33.549 --> 0:12:36.109 needs to do is figure out what would three years 0:12:36.109 --> 0:12:41.390 of her living expenses really be. That's beyond what her 0:12:41.390 --> 0:12:44.750 pension is gonna be or her Social Security. What is 0:12:44.750 --> 0:12:47.419 that gap between her guaranteed income 0:12:47.859 --> 0:12:50.869 and what she needs for three to five years actually 0:12:50.869 --> 0:12:54.989 of living expenses and whatever that gap is that should 0:12:54.989 --> 0:12:58.250 be in the G fund or if she does an 0:12:58.250 --> 0:13:02.989 IRA rollover, a Roth IRA rollover, then that would stay 0:13:02.989 --> 0:13:05.150 in a money market fund for her wherever it is. 0:13:05.229 --> 0:13:05.630 All right, next, KT. 0:13:06.270 --> 0:13:09.830 This is from Cathy. What are some instances when a 0:13:09.830 --> 0:13:13.640 spouse would lose a deceased spouse's pension? 0:13:14.719 --> 0:13:21.340 Cathy, the main reason that you would lose your spouse's 0:13:21.719 --> 0:13:26.820 pension when they died is because, number one, they chose 0:13:26.820 --> 0:13:32.119 a pension that was a life only pension, which means 0:13:32.119 --> 0:13:36.809 it's good for his or her life, period. And after 0:13:36.809 --> 0:13:41.640 that there's no more money and normally one chooses that 0:13:41.640 --> 0:13:42.630 because they feel like 0:13:43.099 --> 0:13:45.580 I want more money now. We need more money. You 0:13:45.580 --> 0:13:48.738 won't need as much when I die. So the largest 0:13:48.739 --> 0:13:53.479 pension choice is life only. Then it starts to decrease 0:13:53.659 --> 0:13:56.849 when you want to leave a joint and survivor benefit. 0:13:58.059 --> 0:14:01.940 The biggest decrease is when you get a 100% joint 0:14:01.940 --> 0:14:07.079 and survivor benefit, which means spouse dies, you get 100% 0:14:07.080 --> 0:14:08.460 of what they were getting. 0:14:09.179 --> 0:14:13.189 Many people opt for a 50% joint and survivor benefit. 0:14:13.409 --> 0:14:15.968 I always say that is a serious mistake. If you 0:14:15.969 --> 0:14:18.968 have the option. I don't care how much money you 0:14:18.969 --> 0:14:24.010 have or how much money you need. Always do a 100% 0:14:24.010 --> 0:14:28.250 joint and survivor option unless you know that the spouse 0:14:28.250 --> 0:14:29.530 that you'll be leaving it to 0:14:30.090 --> 0:14:34.849 is seriously ill isn't going to survive you by any means, 0:14:34.929 --> 0:14:37.270 and you know that without a shadow of a doubt, 0:14:37.599 --> 0:14:40.359 and or they have what's called a pop up option, 0:14:40.450 --> 0:14:45.090 but that's a whole other popcast. Next, there are many 0:14:45.090 --> 0:14:48.489 pensions where you know your spouse is going to get 0:14:48.489 --> 0:14:53.190 a pension, but they haven't signed up for the pension yet, 0:14:53.690 --> 0:14:58.030 and they die before they sign up for it. 0:14:58.469 --> 0:15:02.150 There are corporations and places that one can work, that 0:15:02.150 --> 0:15:04.830 if you don't sign up for it and you die 0:15:04.830 --> 0:15:05.429 before that. 0:15:06.229 --> 0:15:07.099 Out of luck. 0:15:08.299 --> 0:15:08.309 Really? 0:15:08.320 --> 0:15:09.380 Uh-huh. You gotta know these things. 0:15:09.909 --> 0:15:13.309 Oh my, wait a minute, Suze, stop right there. If 0:15:13.309 --> 0:15:15.830 you're working for a company and let's say you're, you've 0:15:15.830 --> 0:15:17.530 been there 15 years. 0:15:18.039 --> 0:15:22.869 And you never signed up or your HR people haven't really nudged you. 0:15:22.869 --> 0:15:25.469 Usually they ask you to sign up at 55 or 0:15:25.469 --> 0:15:28.130 60 right in there somewhere just depends. 0:15:28.190 --> 0:15:28.789 But if you haven't done that... 0:15:28.789 --> 0:15:30.500 If you haven't done that... 0:15:30.820 --> 0:15:33.789 Your, your spouse... if you die all of a sudden 0:15:33.789 --> 0:15:35.989 you have a heart attack and you die on the job, 0:15:36.059 --> 0:15:38.150 let's say your spouse doesn't get a pension, if you didn't sign up? 0:15:38.799 --> 0:15:41.349 That's right. If you didn't sign up, that's why you've 0:15:41.349 --> 0:15:41.780 got to... 0:15:41.780 --> 0:15:42.530 Can you dispute it? 0:15:42.880 --> 0:15:44.900 No, not if those are the rules. That's why you 0:15:44.900 --> 0:15:48.479 have to know how does it work? And if you 0:15:48.479 --> 0:15:51.520 can't sign up for a pension yet, that's when you 0:15:51.520 --> 0:15:55.400 have term life insurance to cover yourself in case that 0:15:55.400 --> 0:15:58.369 were to happen. Also, believe it or not. 0:15:59.250 --> 0:16:04.570 There are times when if it's less than a 50% 0:16:04.570 --> 0:16:09.010 joint and survivor option, the spouse has to sign off, 0:16:09.289 --> 0:16:11.929 and a lot of times the spouse doesn't listen and 0:16:11.929 --> 0:16:13.309 they just say, whatever. 0:16:14.030 --> 0:16:17.400 And you should always check what happens in case of 0:16:17.400 --> 0:16:21.750 a divorce, because sometimes that can change. So there's so 0:16:21.750 --> 0:16:26.080 many things that can happen, but the main reason is 0:16:26.080 --> 0:16:31.159 normally they've chosen a life only option which if they 0:16:31.159 --> 0:16:34.140 are married is the absolute biggest mistake 0:16:34.979 --> 0:16:37.700 that they can ever make in their lives unless their 0:16:37.700 --> 0:16:40.659 spouse is seriously ill. All right, KT, next. 0:16:40.940 --> 0:16:44.580 So Suze, wait, I have a question. If the spouse 0:16:44.580 --> 0:16:48.539 that's working signed off, he or she wants 100%, they 0:16:48.539 --> 0:16:52.090 don't leave anything after death to their spouse... 0:16:52.140 --> 0:16:53.619 And the spouse signed off on it, yes... 0:16:53.700 --> 0:16:56.729 Can they change their mind like a year later? 0:16:56.820 --> 0:16:59.159 They can't even change their mind a week later once 0:16:59.159 --> 0:17:00.599 they start the pension. 0:17:00.859 --> 0:17:02.619 OK. Next question is from Peg. 0:17:03.200 --> 0:17:07.159 I am 83. I have been a poor money manager 0:17:07.160 --> 0:17:10.229 all my life. I've been able to make some positive change. 0:17:10.510 --> 0:17:13.680 Don't you think that's funny? Poor and money in the 0:17:13.680 --> 0:17:14.199 same breath? 0:17:14.520 --> 0:17:16.079 I've been a poor money manager. 0:17:16.189 --> 0:17:18.359 But still, right? Poor money anyway. Go on. 0:17:19.069 --> 0:17:21.560 So wait a minute, but here's what I love about the question. 0:17:22.119 --> 0:17:25.198 This is where I, I wonder if it's ever too late, Suze. 0:17:25.280 --> 0:17:26.639 I'm 83. 0:17:27.479 --> 0:17:30.219 I've been a poor money manager all my life. I've 0:17:30.219 --> 0:17:33.839 been able to make some positive changes in the past 0:17:33.839 --> 0:17:38.589 few years. Ready? I need help getting the basics in 0:17:38.589 --> 0:17:42.099 budgeting and learning not to spend. Can you help me? 0:17:43.449 --> 0:17:45.170 Girlfriend, you listen to me... 0:17:45.250 --> 0:17:47.199 Wait. 83, is it ever too late? 0:17:47.930 --> 0:17:52.310 Listen to me, Peg, right? If you are now able 0:17:52.739 --> 0:17:58.649 to make good financial decisions, you don't really need help 0:17:58.650 --> 0:18:01.750 getting the basics in budgeting and learning not to spend. 0:18:02.319 --> 0:18:05.619 Right, but she says, Can I help? Here are three rules. 0:18:05.880 --> 0:18:09.639 You follow these three rules, and I promise you, you 0:18:09.640 --> 0:18:14.040 will know exactly how to budget. All right. I don't 0:18:14.040 --> 0:18:16.319 like the word budget. Budgets, KT, are like diets. 0:18:16.400 --> 0:18:17.280 Wait, go tell her... 0:18:17.349 --> 0:18:18.010 But wait, do you know... 0:18:18.040 --> 0:18:19.359 ...here's the three rules. 0:18:19.439 --> 0:18:22.359 Oh, all right. Anyway, I wanted to tell you why 0:18:22.359 --> 0:18:25.000 I don't like budgets, but that's besides the point. 0:18:25.109 --> 0:18:25.790 No. The three rules. Go for it. 0:18:26.040 --> 0:18:29.280 Oh, she's keeping me on point today. All right. 0:18:29.579 --> 0:18:34.489 Is this: you are to live below your means but 0:18:34.489 --> 0:18:38.899 within your needs. What is a need? A need is 0:18:38.900 --> 0:18:43.209 food that you get at a grocery store. It's gasoline 0:18:43.209 --> 0:18:45.939 that you put in your car because either you, you 0:18:45.939 --> 0:18:48.659 really have to go somewhere. You don't go out joyriding, 0:18:48.780 --> 0:18:50.920 although at 83 she probably doesn't do that. 0:18:50.969 --> 0:18:51.660 What is the second rule? 0:18:52.180 --> 0:18:55.319 The second rule is how do you do that? 0:18:56.040 --> 0:18:59.699 From this day forward, when you go to spend any 0:18:59.939 --> 0:19:04.640 money at all, Peg, ask yourself the question: Is this 0:19:04.640 --> 0:19:07.640 a need or is this a want? If it is 0:19:07.640 --> 0:19:12.579 a need, buy it. If it's a want, walk away. 0:19:12.910 --> 0:19:15.760 And last but not least, just get as much pleasure 0:19:15.760 --> 0:19:20.760 out of saving as you do spending. It's just that simple. 0:19:20.760 --> 0:19:24.159 Now wait, this isn't just for Peg. This, these three 0:19:24.160 --> 0:19:28.800 rules apply to everyone, no matter what age you are. 0:19:28.959 --> 0:19:30.599 But don't you wanna ask me why I don't like budgets? 0:19:31.439 --> 0:19:31.780 No. 0:19:32.040 --> 0:19:32.569 Why not? 0:19:32.760 --> 0:19:35.159 Because you, you think they're like a diet, they don't work. 0:19:35.239 --> 0:19:38.349 People start it. It's a, it's a silly thing. A 0:19:38.349 --> 0:19:41.150 budget isn't something people follow. 0:19:41.569 --> 0:19:41.889 All right, go on. 0:19:42.739 --> 0:19:45.329 The three rules though they will follow. 0:19:45.329 --> 0:19:47.369 Ding ding ding ding ding. 0:19:48.569 --> 0:19:51.329 All right, this is from, this is from Carla. She said, 0:19:51.609 --> 0:19:54.930 I was blessed to be gifted your books in my 0:19:54.930 --> 0:19:56.150 early 20s. 0:19:56.750 --> 0:20:00.238 And took your advice to invest in index funds with 0:20:00.239 --> 0:20:05.479 a low expense ratio in my first 401k. Now in 0:20:05.479 --> 0:20:10.709 my forties I have 1 million plus in investments. Thank you. 0:20:10.880 --> 0:20:12.479 Hopefully in Roth's. Go on. 0:20:13.040 --> 0:20:16.079 All right, everybody that we know that's under 30, listen 0:20:16.079 --> 0:20:20.329 to that, right? She took Suze's advice. My parents have 0:20:20.329 --> 0:20:23.359 named me executor of their will. They are in their 0:20:23.359 --> 0:20:25.800 early eighties. They have a reverse 0:20:25.939 --> 0:20:30.599 mortgage, a car loan on a 2025 sedan, and credit 0:20:30.599 --> 0:20:34.680 card debt. I am told that when they pass to 0:20:34.680 --> 0:20:38.109 turn the house and car over to the bank, there's 0:20:38.109 --> 0:20:41.459 nothing left for my sister and I. Is it really 0:20:41.459 --> 0:20:45.920 this simple? My parents have declared bankruptcy in the past, 0:20:46.160 --> 0:20:48.959 maxed out credit cards, and buy a new car every 0:20:48.959 --> 0:20:53.359 two to three years. They are disclosing little information, which 0:20:53.359 --> 0:20:54.859 is why I read 0:20:55.719 --> 0:21:00.369 "The Ultimate Retirement Guide for 50+" to learn more. I 0:21:00.369 --> 0:21:03.209 don't want to purchase their home from the bank. I'm 0:21:03.209 --> 0:21:07.229 glad they're able to supplement their income through the reverse mortgage. 0:21:07.449 --> 0:21:10.349 I don't want to be on the hook for their debts. 0:21:10.689 --> 0:21:14.569 Please feel free to edit my submission. I did not 0:21:14.569 --> 0:21:19.510 edit this, Carla, because you need to hear Suze's advice. 0:21:19.810 --> 0:21:20.910 And so does everybody 0:21:21.354 --> 0:21:26.675 else who happens to have parents that are as irresponsible 0:21:26.675 --> 0:21:30.635 as Carla's when it comes to money and is willing 0:21:30.635 --> 0:21:33.395 to say here kids you deal with the fact that 0:21:33.395 --> 0:21:37.155 we have been financial screw ups OK just that simple 0:21:37.354 --> 0:21:41.114 and trust me there are many out there. Carla sweetheart 0:21:41.114 --> 0:21:42.515 listen to me number one. 0:21:43.040 --> 0:21:45.339 As long as you don't put your name on anything, 0:21:45.530 --> 0:21:48.510 as long as you don't say you'll take responsibility for it, 0:21:48.719 --> 0:21:52.000