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Suze: October 29, 2022. Welcome everybody to the Women and Money

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Suze: podcast as well as everyone. And I do mean everyone

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Suze: smart enough to listen. All right, Suze O here.

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Suze: Now

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Suze: The I bond frenzy is over. If you didn't purchase

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Suze: an I bond, a Series I bond prior to really

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Suze: October 26, 27th, right in there.

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Suze: You do not qualify for the 9.62% annualized interest rate anymore.

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Suze: That will change on November 1 of this year, probably

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Suze: to 6.48%. Remember those are annualized yields. Interest rate on

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Suze: I bonds are only really good for six months because

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Suze: they change every six months.

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Suze: So you always divide whatever the current yield is by 2,

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Suze: to know exactly what your money will earn. One of

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Suze: the questions that I've been asked is Suze. If I

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Suze: purchased an I bond $10,000 of an I bond and locked

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Suze: in the 7.12% interest rate annualized.

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Suze: Which was what was offered November of 2021.

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Suze: How much money would I actually earn in interest? If

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Suze: I qualified for the 7.12%, the 9.62% and the 6.48%,

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Suze: that is coming up?

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Suze: Just to make it easy on you and not go

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Suze: through all the calculations after you have owned that I bond

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Suze: for 18 months. And if you invested $10,000, you will

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Suze: have earned $1,208 on your I bond.

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Suze: That is what you need to know, how did I

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Suze: get at that number?

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Suze: If you invested November 1, 2021 all the way through

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Suze: about April 28, 2022 you would have locked in 7.12.

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Suze: Half of that is 3.56%. So for those six months

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Suze: you would have earned $356. You need to know that

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Suze: interest compound semi annually on an I. Bond.

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Suze: So now you would have $10,356 in there.

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Suze: To earn for the next six months, 9.62% interest annualized

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Suze: or 4.81% actual interest. 4.81% interest on your $10,356. You

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Suze: will earn $500 of interest for those next six months.

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Suze: If you stay in there and then you earn 6.48% annualized.

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Suze: Which is 3.24 actual interest you will earn for those

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Suze: six months, $352. So in totality for the 18 months

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Suze: you would have owned this bond.

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Suze: You will have earned $1,208. So I hope

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Suze: that solves that question. Why was it so hard for

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Suze: you to buy an I bond lately? Why was treasury

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Suze: direct dot gov crashing?

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Suze: I just want you to know that in the past week.

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Suze: Not even a week. Right. Almost $1.9 billion 2021.

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Suze: So all of you finally got on the I bond

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Suze: bandwagon now I just want you to slow down with

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Suze: your I bond purchases while it is true that 6.48%

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Suze: is a great interest rate still.

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Suze: We do not know what the interest rates are going

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Suze: to be come May of 2023.

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Suze: So I bonds have been fabulous for the past few

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Suze: years depending on inflation, we will have to see where

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Suze: they go. So I have to tell you, I am

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Suze: not as gung ho right now on I bonds as

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Suze: I was starting a few years ago when I first

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Suze: started to talk about them.

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Suze: So I don't have a problem if you buy this

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Suze: series at 6.48

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Suze: but just let's watch where interest rates go after this

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Suze: because if inflation goes down but interest rates still stay

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Suze: up

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Suze: in Treasuries and other investments, if the market happens to

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Suze: go seriously down and dividend yielding stocks are paying you

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Suze: more than what an I bond possibly can be giving

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Suze: you in the future. We may change course. So just

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Suze: because I have loved series, I bonds now for a

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Suze: long time

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Suze: doesn't mean that I'm always going to love them. So

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Suze: you have to stay tuned. Got that everybody? Next. I

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Suze: have been asking all of you to consider Treasury bills

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Suze: and notes as a possible alternative to even investing in

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Suze: the stock market. Because many of you could absolutely get

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Suze: 4 4.5% on your money

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Suze: safe and sound guaranteed by the authority of the United

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Suze: States government state tax free. Fabulous. Why would many of

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Suze: you want to go into the stock market with all

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Suze: of its fluctuations and then I'm sure given what's happened

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Suze: in the past week or so

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Suze: You're like Oh my God, I've got to get back

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Suze: in the stock market. Are you kidding me? Look at

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Suze: what it's done like the Dow Jones industrial average is

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Suze: up almost 15% just for this month alone

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Suze: as you know, a week or so ago, maybe two

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Suze: weeks ago. I said it would not surprise me if

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Suze: this market went up and it went up that week.

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Suze: I then said to you, it would not surprise me

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Suze: if it continued up for two, three or four weeks, it

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Suze: is probable that it will most likely do that. Which

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Suze: it is doing and it has done.

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Suze: However, I will reiterate that even though it is going

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Suze: up right now and could continue to go up

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Suze: Eventually. I still believe that it will come back down

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Suze: now listen, I hope I am 100% wrong. I hope

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Suze: this market goes up and up and up and that

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Suze: many of you make a whole lot of money and

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Suze: you feel secure all over again because your 401K. Plans

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Suze: have come back your iras are back. You just are

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Suze: happy again that way.

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Suze: I'll have to believe it to see it because I

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Suze: personally think long term

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Suze: the bias of the stock market will be down. A

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Suze: lot of you may be noticing

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Suze: that yeah the markets have gone up but your stocks

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Suze: have not gone up at all. In fact many of

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Suze: your stocks have actually gone down considerably this past week.

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Suze: Are you invested in meta which is the new name

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Suze: for facebook, one of the more disastrous weeks I've ever

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Suze: seen was down 29% in just one day. Amazon was

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Suze: down the only stock that was up a little bit.

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Suze: Technology stock was apple.

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Suze: But most technology stocks that many of you made a

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Suze: fortune in over the past years are totally out of

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Suze: favor right now.

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Suze: The reason that you see the Dow Jones industrial average,

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Suze: which is really only 30 stocks, it is not a

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Suze: massive index by any means 30 really large blue chip

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Suze: stocks that is up is because it's not made up

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Suze: of a whole lot of technology stocks.

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Suze: It's made up of conservative blue chip stocks that are

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Suze: all over the place. But is that how your investment portfolio?

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Suze: Is that how you are invested? Are you mainly invested

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Suze: in

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Suze: technology stocks like Salesforce, Crowdstrike, Amazon, Alphabet. All those stocks

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Suze: that were really the bedrock of all the gains in

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Suze: the stock market over the past few years. One of

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Suze: the crazy things about our indexes is that it is

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Suze: possible like what the Standard and Poor's 500 index

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Suze: that the top few stocks mainly technology stocks, the top

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Suze: holdings in those indexes account for the majority of the

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Suze: increase or decrease of that index. Which is why it

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Suze: is extremely important when I talk about diversification that you

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Suze: are diversified across the entire area of stocks

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Suze: that you do have technology stocks but you also have

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Suze: stocks that are really invested in every day. Things All right.

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Suze: And so you might as an experiment and I could

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Suze: do it for you right here. But I want you

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Suze: to start to be independent where you know how to

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Suze: make decisions on your own. I want you to go

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Suze: and just look what are the stocks that make up

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Suze: the Dow Jones industrial average that cause that index to

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Suze: go up so high. What are the stocks that make

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Suze: up the standard and poor's 500 index? The top stocks

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Suze: compare the top 30 stocks of that

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Suze: to the top 30 stocks of the Dow Jones Industrial average,

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Suze: then also the third index that we always quote is

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Suze: the NASDAQ and the NASDAQ especially 100. Look at the

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Suze: top 30 stocks that are made up of that index

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Suze: and then you will get a feeling of essentially what

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Suze: is happening right now in the stock market

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Suze: now. Do I think if you are heavily invested in

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Suze: tech

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Suze: that it's just over for now, I kind of do,

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Suze: I have to tell you, I think it's possible that

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Suze: Amazon could come back somewhat.

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Suze: Apple, they're loving Apple stock. But the other stocks, if

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Suze: you're heavily invested in tech, you may have to wait

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Suze: a while quite a while that includes the AK Innovation fund. Everybody,

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Suze: you may have to wait a while to recapture any

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Suze: losses that you have in those companies,

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Suze: we are approaching the end of this year, believe it

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Suze: or not, we have two months left. So what many

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Suze: people are doing right now that will affect all of

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Suze: these indexes by the way is they are doing something

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Suze: called tax lost harvesting

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Suze: and what that is, they are selling their stocks right

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Suze: now

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Suze: or their index funds whatever they're invested in and they

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Suze: are taking a loss on their taxes and many of

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Suze: them are also selling their stocks that they have tremendous

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Suze: gains in

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Suze: and they are offsetting their gains so they don't have

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Suze: to pay taxes on them with the losses that they have,

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Suze: then they most likely will reinvest again in the companies

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Suze: that they want to own. What you have to know

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Suze: is if you sell anything and this is all outside

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Suze: of a retirement account just so you know retirement accounts,

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Suze: you don't get to take losses.

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Suze: So outside of a retirement account, what you have to

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Suze: know is that if you sell any stock that you

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Suze: have a loss in because you want to use that

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Suze: loss to offset any gain that you have, you cannot

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Suze: buy that stock or even a similar stock really

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Suze: Within a 30 day period of time. So the government

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Suze: does not allow you to sell a stock

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Suze: and let's say you have a stock such as metal

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Suze: and you have a significant loss in that stock

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Suze: and you sell it,

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Suze: You cannot buy back meta for at least 30 days. Alright,

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Suze: everybody that's called the 30 day wash rule.

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Suze: So these are little things that you need to know.

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Suze: So even in my own portfolio right now I am

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Suze: selling stocks that I have losses in to offset some

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Suze: of the stocks that I have tremendous gains in still

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Suze: And once I have done that then I will go

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Suze: back in and I can immediately go back in and

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Suze: buy the stocks that I sold that had gains and

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Suze: there is no 30 day wash rule for gains. So

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Suze: it only applies to stocks that you are selling for

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Suze: a loss. So you're taking that off taxes when you

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Suze: have a gain that is offset by a loss

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Suze: you can go back in and immediately that same day

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Suze: buy that stock back.

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Suze: So that is what I am currently doing in my

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Suze: own portfolio just so you know for those of you

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Suze: that it may apply to, you may want to consider

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Suze: doing that as well.

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Suze: Treasuries as you know, I've told many of you that

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Suze: I really like Treasuries

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Suze: and should you be buying them or should you not

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Suze: at this point in time. So many of you are

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Suze: writing me and saying is now the time to buy

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Suze: a 20 or 30 year Treasury bond and lock in

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Suze: those interest rates if you are purchasing Treasury bills and notes,

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Suze: I don't mind if you do so. In fact, I

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Suze: would love if you do so, but do not go

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Suze: out a lot further than five years if you're going

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Suze: to buy Treasuries, I do believe you are going to

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Suze: see the interest rates on Treasuries start to come down

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Suze: and possibly the 10 year could go all the way

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Suze: down to 3.5%. But I think eventually interest rates will

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Suze: once again turn around and you could very easily see

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Suze: long term Treasuries at 5.5% when you see them possibly

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Suze: around there, that is when you would go in and

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Suze: purchase a 30 year Treasury bond,

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Suze: there are more ways for you to make money than

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Suze: just simply buying stocks and watching them go up or

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Suze: down or whatever it may be.

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Suze: When interest rates go down,

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Suze: the price of bonds will go up. The longer the

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00:17:58,670 --> 00:18:02,880
Suze: maturity of the bond, Listen closely to me,

233
00:18:03,900 --> 00:18:08,180
Suze: the longer the maturity of the bomb, the more it

234
00:18:08,180 --> 00:18:10,720
Suze: moves up or down.

235
00:18:11,350 --> 00:18:15,210
Suze: So if interest rates go up in the world, bond

236
00:18:15,210 --> 00:18:20,240
Suze: prices go down. If interest rates go down, bond prices

237
00:18:20,240 --> 00:18:21,189
Suze: go up.

238
00:18:22,080 --> 00:18:25,970
Suze: But what determines how much they go up or down

239
00:18:25,990 --> 00:18:31,210
Suze: is dependent on the length of the bomb. A 30

240
00:18:31,210 --> 00:18:34,400
Suze: year bond will go up and down more depending on

241
00:18:34,410 --> 00:18:39,399
Suze: interest rates than a one year Treasury note. And many

242
00:18:39,400 --> 00:18:42,850
Suze: of you saw that happen in the bond funds that

243
00:18:42,850 --> 00:18:47,760
Suze: you owned that had long term maturity ease in that

244
00:18:47,760 --> 00:18:48,740
Suze: bond fund.

245
00:18:50,050 --> 00:18:53,610
Suze: Therefore I want you to remember this lesson because there

246
00:18:53,609 --> 00:18:57,600
Suze: will come a day when interest rates go up again

247
00:18:57,609 --> 00:19:02,430
Suze: in my opinion, and you can get a long term Treasury,

248
00:19:02,440 --> 00:19:07,949
Suze: meaning 20 or 30 years for about 5.5% or so

249
00:19:08,810 --> 00:19:15,330
Suze: when that happens and eventually interest rates will come back down.

250
00:19:15,400 --> 00:19:18,440
Suze: Not only did you lock in a great interest rate

251
00:19:18,440 --> 00:19:23,180
Suze: on that Treasury, but as interest rates go down, the

252
00:19:23,180 --> 00:19:27,679
Suze: price of that bond will go up and up and up.

253
00:19:27,859 --> 00:19:32,040
Suze: And then you have a decision if you want. Do

254
00:19:32,040 --> 00:19:34,780
Suze: you want to sell that bond in the open market

255
00:19:34,790 --> 00:19:37,629
Suze: and take your gain there? Like you would a stock

256
00:19:37,640 --> 00:19:41,209
Suze: or do you just want to hold it and keep

257
00:19:41,220 --> 00:19:46,280
Suze: the 5.5% interest or whatever interested is that you locked in.

258
00:19:46,290 --> 00:19:50,570
Suze: I always go back and tell you the story about

259
00:19:50,580 --> 00:19:53,950
Suze: how back in the early eighties when 30 year Treasury

260
00:19:53,950 --> 00:19:57,260
Suze: bonds were like selling for 14.5%.

261
00:19:57,740 --> 00:20:02,780
Suze: I had my clients by 30 year Treasury bonds. So

262
00:20:02,780 --> 00:20:09,020
Suze: for 30 years they would have made 14.5% interest. And

263
00:20:09,020 --> 00:20:13,369
Suze: remember Treasuries are state income tax free.

264
00:20:14,010 --> 00:20:19,220
Suze: So as interest rates went down and down and down,

265
00:20:19,230 --> 00:20:24,590
Suze: the price of those Treasuries skyrocketed. There was a time

266
00:20:24,600 --> 00:20:27,410
Suze: when people almost could double their money

267
00:20:27,940 --> 00:20:32,950
Suze: And they sold the 30-year Treasury bonds and repurchased them

268
00:20:32,960 --> 00:20:37,640
Suze: and locked in like a 6% yield. But on almost

269
00:20:37,640 --> 00:20:40,510
Suze: twice the amount of money. So really

270
00:20:41,180 --> 00:20:43,990
Suze: they were making almost as much as if they had

271
00:20:43,990 --> 00:20:46,970
Suze: just kept it. So there are many things that you

272
00:20:46,970 --> 00:20:49,869
Suze: can do with Treasuries. So I want you to start

273
00:20:49,880 --> 00:20:55,950
Suze: educating yourself on them. Now again, I do not have

274
00:20:55,950 --> 00:21:00,219
Suze: a problem for right now, if you do a Treasury ladder,

275
00:21:00,230 --> 00:21:03,389
Suze: maybe you buy a three month, a six month or

276
00:21:03,390 --> 00:21:07,850
Suze: one year, two year, maybe up to five years, but

277
00:21:07,850 --> 00:21:09,980
Suze: don't go out further than five,

278
00:21:09,990 --> 00:21:15,220
Suze: five years. Okay, preferably you would stick about the two

279
00:21:15,220 --> 00:21:20,680
Suze: year note length currently by the way, their pain about 4.5%.

280
00:21:20,690 --> 00:21:24,780
Suze: Which brings me to another question Many of you are

281
00:21:24,790 --> 00:21:25,950
Suze: asking me,

282
00:21:26,770 --> 00:21:36,650
Suze: you are being offered single premium deferred annuities for about 4.5%

283
00:21:36,800 --> 00:21:39,840
Suze: and you really think that is a really great deal.

284
00:21:40,020 --> 00:21:44,330
Suze: Somebody wrote in Kimberly. You know that's you and you

285
00:21:44,330 --> 00:21:46,570
Suze: asked me the question

286
00:21:46,830 --> 00:21:51,510
Suze: That you were considering buying a single premium deferred annuity

287
00:21:51,520 --> 00:21:56,720
Suze: with 70% of your i. r. a rollover that had

288
00:21:56,720 --> 00:21:58,830
Suze: $1 million dollars in it.

289
00:21:59,470 --> 00:22:04,590
Suze: You had a choice of buying a 34 or five

290
00:22:04,590 --> 00:22:09,129
Suze: year single premium deferred annuity and the rates would have

291
00:22:09,130 --> 00:22:15,649
Suze: been 4.64.8 and 5% respectively.

292
00:22:16,430 --> 00:22:19,239
Suze: Now you say in this email that you know I'm

293
00:22:19,240 --> 00:22:23,240
Suze: not a big fan of annuities. Well that's not exactly true.

294
00:22:23,240 --> 00:22:28,399
Suze: I actually love single premium deferred annuities but it makes

295
00:22:28,410 --> 00:22:34,670
Suze: absolutely really very little sense to buy a single premium

296
00:22:34,670 --> 00:22:39,350
Suze: deferred annuity. Again an annuity is a contract with an

297
00:22:39,350 --> 00:22:40,929
Suze: insurance company

298
00:22:41,240 --> 00:22:44,770
Suze: and as long as that money is in there, you

299
00:22:44,770 --> 00:22:48,560
Suze: do not pay income taxes on it. The income taxes

300
00:22:48,570 --> 00:22:55,110
Suze: are deferred. Also most annuities come with a surrender charge

301
00:22:55,119 --> 00:22:59,409
Suze: which means you cannot get at your money without a

302
00:22:59,410 --> 00:23:02,740
Suze: penalty before the surrender charges up.

303
00:23:02,940 --> 00:23:09,869
Suze: But to buy a single premium deferred annuity within an I. R. A.

304
00:23:09,869 --> 00:23:14,680
Suze: That is a tax deferred account doesn't make a whole

305
00:23:14,680 --> 00:23:21,609
Suze: lot of sense given what interest rates currently are with treasuries.

306
00:23:21,670 --> 00:23:25,670
Suze: But this person wanted to know is this a good

307
00:23:25,670 --> 00:23:30,890
Suze: investment because she wants her investment to be safe and

308
00:23:30,890 --> 00:23:31,620
Suze: sound

309
00:23:32,250 --> 00:23:37,260
Suze: what all of you have to really understand if this

310
00:23:37,260 --> 00:23:41,840
Suze: kind of investment is being proposed to you. Is that

311
00:23:41,850 --> 00:23:47,230
Suze: unlike a Treasury that is guaranteed by the authority of

312
00:23:47,230 --> 00:23:51,960
Suze: the United States government or even a certificate a deposit

313
00:23:52,510 --> 00:23:57,840
Suze: that's guaranteed by F. D. I. C. Insurance or a

314
00:23:57,840 --> 00:24:01,490
Suze: certificate of deposit that happens to be at a credit

315
00:24:01,490 --> 00:24:05,810
Suze: union that is also insured by N. C. U. A.

316
00:24:05,890 --> 00:24:09,419
Suze: But annuities also are protected

317
00:24:10,230 --> 00:24:17,600
Suze: and regulated by nonprofit insurance guaranteed associations at the state level.

318
00:24:17,780 --> 00:24:23,730
Suze: Now listen to me closely. Kimberly wanted to put 70%

319
00:24:23,740 --> 00:24:30,810
Suze: of her million dollars or $700,000 in this annuity

320
00:24:32,050 --> 00:24:38,780
Suze: annuities that are guaranteed by the state guaranteed association will

321
00:24:38,780 --> 00:24:43,680
Suze: pay claimants in the unlikely event that insurance company becomes

322
00:24:43,680 --> 00:24:48,070
Suze: insolvent and can't pay you. But their coverage is limited

323
00:24:48,080 --> 00:24:51,720
Suze: and it varies by state by the way to only

324
00:24:51,720 --> 00:24:58,210
Suze: $250,000 just like the N. C. U. A. And the F. D. I. C.

325
00:24:58,510 --> 00:25:03,899
Suze: So nobody under any circumstance whether it's a certificate of

326
00:25:03,900 --> 00:25:11,119
Suze: deposit or an annuity should put more than about 225,000

327
00:25:11,119 --> 00:25:15,389
Suze: or $230,000 in there so it can earn interest and

328
00:25:15,390 --> 00:25:17,560
Suze: maybe build up to 250

329
00:25:17,560 --> 00:25:24,859
Suze: 2000. But on no level should you be putting $700,000

330
00:25:24,880 --> 00:25:30,060
Suze: into what into one company. Would I tell you that

331
00:25:30,060 --> 00:25:35,380
Suze: you were able to put $700,000 in 21 Treasury note.

332
00:25:35,380 --> 00:25:41,379
Suze: You bet. As you know myself, I have put millions

333
00:25:41,380 --> 00:25:43,990
Suze: to keep my money safe and sound

334
00:25:44,760 --> 00:25:48,170
Suze: into one Treasury Note, I don't have a problem with

335
00:25:48,170 --> 00:25:52,350
Suze: that guaranteed by the authority of the United States government.

336
00:25:52,960 --> 00:25:57,609
Suze: So why would any of us take a chance on

337
00:25:57,609 --> 00:26:02,310
Suze: putting more than 200 and some odd 1000 into any vehicle.

338
00:26:02,320 --> 00:26:09,670
Suze: When right now, interest rates on Treasuries are seriously almost

339
00:26:09,670 --> 00:26:13,409
Suze: the same as what everybody else is offering you or

340
00:26:13,410 --> 00:26:15,130
Suze: maybe even better.

341
00:26:15,550 --> 00:26:19,150
Suze: So all of you before you do anything. I really

342
00:26:19,150 --> 00:26:22,490
Suze: want you to go and check out what is the

343
00:26:22,490 --> 00:26:28,580
Suze: current interest rates today of Treasuries and you'll find that

344
00:26:28,580 --> 00:26:31,300
Suze: one year there at 4.5%.

345
00:26:32,410 --> 00:26:37,410
Suze: Number one, number two. Remember what I just taught you.

346
00:26:37,660 --> 00:26:41,330
Suze: If you lock in a high interest rate and interest

347
00:26:41,330 --> 00:26:45,410
Suze: rates start to go down eventually the value of that

348
00:26:45,410 --> 00:26:48,660
Suze: Treasury will go up and you can sell it in

349
00:26:48,660 --> 00:26:53,080
Suze: the secondary market. Very easy to do. Especially if you

350
00:26:53,080 --> 00:26:55,410
Suze: have an account at a discount brokerage firm

351
00:26:55,920 --> 00:27:01,330
Suze: and therefore you could absolutely make money on this investment

352
00:27:01,359 --> 00:27:05,750
Suze: again with a Treasury. What can you do? You can buy,

353
00:27:05,750 --> 00:27:09,449
Suze: you can sell it anytime you want, no surrender fees,

354
00:27:09,460 --> 00:27:12,570
Suze: no danger of them defaulting on you.

355
00:27:13,430 --> 00:27:18,500
Suze: So can you just look at your alternatives?

356
00:27:19,040 --> 00:27:24,210
Suze: Oh God, I'm already almost out of time. However, I

357
00:27:24,210 --> 00:27:26,859
Suze: briefly just want to tell you

358
00:27:27,210 --> 00:27:31,010
Suze: what you need to know now about inherited IRAs Now

359
00:27:31,010 --> 00:27:34,619
Suze: this is a topic I could take all 30 minutes

360
00:27:34,630 --> 00:27:38,649
Suze: of this podcast up with. However, a little bit ago.

361
00:27:38,650 --> 00:27:41,570
Suze: I don't remember the exact date. I'm sorry but I

362
00:27:41,570 --> 00:27:48,330
Suze: did an extensive podcast on inherited IRAs and here is

363
00:27:48,330 --> 00:27:50,240
Suze: what you need to know.

364
00:27:51,160 --> 00:27:54,879
Suze: There had been a law that was passed in 2019

365
00:27:55,030 --> 00:27:59,310
Suze: known as the Secure Act. And the Secure Act simply

366
00:27:59,310 --> 00:28:03,209
Suze: said you can no longer if you inherit an IRA

367
00:28:03,210 --> 00:28:08,820
Suze: a stretch that ira over your life expectancy

368
00:28:09,190 --> 00:28:12,270
Suze: the most that you could leave it in. There would

369
00:28:12,270 --> 00:28:17,510
Suze: be for 10 years now there were five exceptions to

370
00:28:17,510 --> 00:28:21,930
Suze: that rule. The five exceptions were if you were older

371
00:28:21,930 --> 00:28:25,350
Suze: or not more than 10 years younger than the person

372
00:28:25,350 --> 00:28:27,910
Suze: who you had inherited the IRA from.

373
00:28:28,190 --> 00:28:31,200
Suze: If you were surviving spouse, if you are chronically ill,

374
00:28:31,200 --> 00:28:34,210
Suze: if you were disabled you were a minor child of

375
00:28:34,210 --> 00:28:37,280
Suze: that owner of the account. And that was until you

376
00:28:37,280 --> 00:28:42,240
Suze: were only 21 years of age. And those were the

377
00:28:42,240 --> 00:28:47,880
Suze: five what they called eligible designated beneficiaries. Which means this

378
00:28:47,880 --> 00:28:52,040
Suze: did not apply to you. Also if you inherited an

379
00:28:52,050 --> 00:28:58,010
Suze: IRA before 2020 this does not apply to you.

380
00:28:58,760 --> 00:29:01,740
Suze: And so everybody was fine with that. They thought they

381
00:29:01,740 --> 00:29:04,990
Suze: would inherit an IRA, and they would just leave it

382
00:29:05,000 --> 00:29:09,390
Suze: in there for 10 years and then take it out

383
00:29:09,400 --> 00:29:14,990
Suze: if they wanted to. Then on February 23rd of this year.

384
00:29:15,170 --> 00:29:19,560
Suze: The I. R. S. in its wisdom totally changed things.

385
00:29:19,560 --> 00:29:20,990
Suze: And they said

386
00:29:21,320 --> 00:29:29,810
Suze: that if you inherited an IRA a fter 2019 and the

387
00:29:29,820 --> 00:29:36,950
Suze: owner of the IRA was already taking required minimum distributions

388
00:29:36,950 --> 00:29:42,370
Suze: from it or they were of age to take required

389
00:29:42,380 --> 00:29:45,520
Suze: minimum distributions but hadn't started yet

390
00:29:46,500 --> 00:29:50,780
Suze: that when you inherited it you had to take out

391
00:29:50,790 --> 00:30:00,040
Suze: the required minimum distribution for 2021 as well as 2022.

392
00:30:01,230 --> 00:30:04,920
Suze: Many of you did not know about that. And if

393
00:30:04,920 --> 00:30:09,240
Suze: you didn't take out the required minimum distribution according to

394
00:30:09,240 --> 00:30:10,530
Suze: the I. R. S.

395
00:30:11,060 --> 00:30:16,730
Suze: They were going to assess you a 50% tax penalty

396
00:30:16,760 --> 00:30:22,170
Suze: and you didn't even know about this until this year

397
00:30:22,190 --> 00:30:25,510
Suze: and you're thinking to yourself nobody told me about it.

398
00:30:25,520 --> 00:30:28,310
Suze: So all of you and many people there was a

399
00:30:28,310 --> 00:30:31,950
Suze: total uproar about this. All right. Here's what you need

400
00:30:31,950 --> 00:30:35,440
Suze: to know on October seven of this year.

401
00:30:35,960 --> 00:30:41,230
Suze: They came out with a new bill. It's called 2022-53

402
00:30:41,270 --> 00:30:46,989
Suze: which waves the 50% penalty for all of you who

403
00:30:46,990 --> 00:30:51,510
Suze: did not take out the required minimum distributions on your

404
00:30:51,520 --> 00:30:56,930
Suze: inherited IRA, where required minimum distributions from the owner had

405
00:30:56,940 --> 00:31:01,760
Suze: already started to occur or the owner

406
00:31:01,950 --> 00:31:06,750
Suze: needed to start taking required minimum distributions because they were

407
00:31:06,760 --> 00:31:08,490
Suze: of age to do so.

408
00:31:09,530 --> 00:31:12,450
Suze: So all of you are safe you just need to

409
00:31:12,450 --> 00:31:18,360
Suze: know about that. You don't have a 50% penalty. So that's the good news. The bad news is they're not going to come out with final regulations until 2023.

410
00:31:38,770 --> 00:31:39,140
Suze: So at that time, I will do an entire podcast on inherited IRAs and how they absolutely, definitely work and what you need to know about them. Until then, there's really only one thing that I want for you and your money, and it's for you to be safe, strong and secure. See ya Wednesday night. Bye bye, everybody.