1 00:00:46,380 --> 00:00:50,680 Suze: December 12, 2024. Welcome everybody to the Women and Money 2 00:00:50,689 --> 00:00:54,400 Suze: podcast as well as everybody smart enough to listen. This 3 00:00:54,409 --> 00:00:55,159 Suze: is the 4 00:00:55,250 --> 00:00:58,299 KT: Ask KT and Suze, Anything... 5 00:00:58,380 --> 00:01:01,669 Suze: That's right. But KT, here's what I'm gonna ask you. 6 00:01:02,490 --> 00:01:05,738 Suze: How did you enjoy the time with your sisters? You know, 7 00:01:05,750 --> 00:01:07,510 Suze: I posted many pictures. 8 00:01:08,410 --> 00:01:11,650 KT: I'm afraid to look. The sisters weekend and we still 9 00:01:11,660 --> 00:01:15,399 KT: have one around, we still have one. We have the 10 00:01:15,410 --> 00:01:19,470 KT: little one here. She's not leaving till late tonight actually. 11 00:01:19,980 --> 00:01:21,128 KT: Um So it was... 12 00:01:22,010 --> 00:01:22,639 Suze: How did that happen by the way? 13 00:01:23,370 --> 00:01:26,119 KT: She just didn't want to go back to Colorado it 14 00:01:26,730 --> 00:01:29,839 KT: after talking to her husband, it's so cold there and 15 00:01:29,849 --> 00:01:33,580 KT: she's like swimming and in the sun and beautiful. She said, 16 00:01:33,589 --> 00:01:36,239 KT: can I stay a little longer? Of course, you can. 17 00:01:36,250 --> 00:01:39,160 Suze: Didn't you think you should maybe say Suze is it 18 00:01:39,169 --> 00:01:39,910 Suze: ok if I stay? 19 00:01:40,800 --> 00:01:41,720 KT: You love them. 20 00:01:42,569 --> 00:01:46,839 Suze: Actually, it was my idea to begin with. So, you know. 21 00:01:47,430 --> 00:01:48,919 Suze: All right, but you had a good time, 22 00:01:49,129 --> 00:01:54,120 KT: Really great time. We all did and some exquisite dinners together, didn't we? 23 00:01:54,410 --> 00:01:58,069 Suze: Yeah, maybe I'll post some of those pictures as well. Alright. 24 00:01:58,540 --> 00:02:02,339 KT: Alright. My first question. Is from Sheila and this is 25 00:02:02,349 --> 00:02:04,751 KT: a really easy answer for you, Suze. 26 00:02:04,751 --> 00:02:05,080 Suze: Denied. 27 00:02:05,459 --> 00:02:10,100 KT: I'm working, I'm well... ready. I'm working with a financial 28 00:02:10,110 --> 00:02:14,490 KT: advisor who is positive about annuities as part of a 29 00:02:14,500 --> 00:02:19,630 KT: retirement strategy. I am not, if I am not mistaken, 30 00:02:19,639 --> 00:02:24,050 KT: you are not either. What is your position on this, Suze? 31 00:02:24,350 --> 00:02:27,479 Suze: It's surprising that I said denied right off the back, Sheila. 32 00:02:27,490 --> 00:02:31,519 Suze: Listen to me the first and most important thing isn't 33 00:02:31,529 --> 00:02:35,089 Suze: what I think isn't even what the financial advisor thinks. 34 00:02:35,240 --> 00:02:40,000 Suze: But you said in this email that you are not 35 00:02:40,020 --> 00:02:44,850 Suze: positive about annuities as a part of a retirement strategy, 36 00:02:44,979 --> 00:02:49,489 Suze: you said it. So if you don't think it, then 37 00:02:49,500 --> 00:02:52,070 Suze: you must not do it. 38 00:02:52,538 --> 00:02:56,538 Suze: It's really just that simple. So I can't answer this 39 00:02:56,550 --> 00:03:00,669 Suze: question for you truthfully because it depends on what type 40 00:03:00,679 --> 00:03:04,070 Suze: of an annuity. I don't know enough about your own 41 00:03:04,080 --> 00:03:10,169 Suze: financial situation. Are you retiring now? Do you need guaranteed income, whatever? However, 42 00:03:10,179 --> 00:03:11,929 Suze: it does not even matter. 43 00:03:12,869 --> 00:03:17,419 Suze: You don't like it. So don't you dare do it. 44 00:03:18,729 --> 00:03:22,880 KT: Ok. Next question, Suze is from Megan in keeping with 45 00:03:22,889 --> 00:03:25,460 KT: the same topic. Your favorite. 46 00:03:25,649 --> 00:03:27,262 Suze: You thought I was gonna get a lot worse on 47 00:03:27,262 --> 00:03:27,269 Suze: that one, didn't you? 48 00:03:27,809 --> 00:03:30,839 KT: I thought that you were gonna do a big deny. 49 00:03:30,850 --> 00:03:32,029 KT: But ready here comes 50 00:03:32,750 --> 00:03:34,960 Suze: And you were baiting me. You were, you were me up 51 00:03:34,970 --> 00:03:36,669 Suze: for the rest of this podcast. 52 00:03:36,770 --> 00:03:37,960 KT: Here comes another one. 53 00:03:38,429 --> 00:03:38,729 Suze: So I have 54 00:03:38,740 --> 00:03:39,779 Suze: a second chance to get really upset. 55 00:03:39,789 --> 00:03:41,869 KT: Here comes another one Suze. 56 00:03:42,324 --> 00:03:45,875 KT: My husband and I are very young, 60 year olds. 57 00:03:46,074 --> 00:03:49,475 KT: We've been married for three years. We each have two 58 00:03:49,485 --> 00:03:53,494 KT: grown children from prior marriages. We're looking at planning for 59 00:03:53,505 --> 00:03:58,154 KT: our joint retirement. We have no joint savings. My husband 60 00:03:58,164 --> 00:04:01,425 KT: has about $200 left in his 401k. 61 00:04:01,434 --> 00:04:04,664 Suze: Do you think she meant $200 or 200,000? And just 62 00:04:04,675 --> 00:04:05,324 Suze: didn't put it in? 63 00:04:05,434 --> 00:04:07,035 KT: I think she meant 200,000. 64 00:04:07,335 --> 00:04:08,054 Suze: Doesn't matter... 65 00:04:08,225 --> 00:04:11,785 KT: But she has 2.5 million 66 00:04:12,330 --> 00:04:14,499 KT: in mortgage free rental property. 67 00:04:14,499 --> 00:04:14,960 Suze: Are they married? 68 00:04:16,170 --> 00:04:17,970 Suze: Yes, they're married for only three years. 69 00:04:20,170 --> 00:04:23,690 KT: I say only because of what, listen to what's coming up. 70 00:04:24,209 --> 00:04:27,579 KT: We don't have any other debt. We also live in 71 00:04:27,589 --> 00:04:32,190 KT: my pre marriage home, which is also paid and valued 72 00:04:32,200 --> 00:04:35,690 KT: at almost a million dollars. We believe we could live 73 00:04:35,700 --> 00:04:39,149 KT: off about $120,000 a year. 74 00:04:39,899 --> 00:04:43,119 KT: We're looking for a financial advisor. One of the people 75 00:04:43,130 --> 00:04:48,119 KT: we interviewed and liked advised me to sell $2 million 76 00:04:48,130 --> 00:04:51,760 KT: net worth of my real estate portfolio and put it 77 00:04:51,769 --> 00:04:57,238 KT: all in a money market account specifically with American Fund 78 00:04:57,350 --> 00:05:02,320 KT: and spread it out over five funds with 400,000 in each. 79 00:05:02,559 --> 00:05:05,920 KT: He showed us a hypothetical that showed if we had 80 00:05:05,928 --> 00:05:07,589 KT: invested in the same funds that 81 00:05:07,859 --> 00:05:11,350 KT: years ago, they would be worth 13 million. Now, blah, blah, blah, blah, blah. 82 00:05:11,399 --> 00:05:14,950 KT: I I say that blah, blah, blah because every financial 83 00:05:14,959 --> 00:05:18,790 KT: advisor is gonna show you a hypothetical based on should have, 84 00:05:18,799 --> 00:05:22,640 KT: could have, would have in my opinion. Now, she said 85 00:05:22,649 --> 00:05:24,859 KT: I want to plan for our retirement and leave a 86 00:05:24,869 --> 00:05:28,950 KT: legacy for my children and grandchildren. 87 00:05:29,410 --> 00:05:29,769 Suze: Notice she said "my." 88 00:05:30,040 --> 00:05:30,339 KT: She 89 00:05:30,350 --> 00:05:33,390 KT: said she didn't say "ours" she said mine, 90 00:05:33,678 --> 00:05:35,459 KT: I appreciate your perspective. 91 00:05:35,738 --> 00:05:39,529 KT: So this perspective needs a little bit of between the 92 00:05:39,540 --> 00:05:41,119 KT: line thinking 93 00:05:42,000 --> 00:05:43,678 Suze: and you think I know how to do that. 94 00:05:44,980 --> 00:05:46,040 Suze: Do you? 95 00:05:46,140 --> 00:05:47,950 KT: I can help you... 96 00:05:49,178 --> 00:05:50,029 KT: OK, go for it. 97 00:05:51,440 --> 00:05:56,368 Suze: First of all, my dear Megan, you have obviously done 98 00:05:56,619 --> 00:06:02,450 Suze: incredibly well on your own over these years. I don't 99 00:06:02,459 --> 00:06:06,410 Suze: know how you accumulated this. If this was your first husband, 100 00:06:06,420 --> 00:06:11,019 Suze: your second husband or whatever, but you on your own 101 00:06:11,029 --> 00:06:14,000 Suze: have done so well. Look at this. You have a 102 00:06:14,010 --> 00:06:17,649 Suze: home that's paid and valued at 900,000 that you had 103 00:06:17,660 --> 00:06:18,730 Suze: before you got married. 104 00:06:19,209 --> 00:06:24,940 Suze: You have 2.5 million in mortgage free rental properties. How 105 00:06:24,950 --> 00:06:30,469 Suze: did you do that? Hopefully you did a prenup agreement 106 00:06:30,480 --> 00:06:35,989 Suze: before you got married, keeping all of these properties separate. 107 00:06:36,000 --> 00:06:38,959 Suze: So that if anything were to happen between you and 108 00:06:38,970 --> 00:06:43,140 Suze: your newly wedded husband, three years is newly wedded. I 109 00:06:43,149 --> 00:06:46,100 Suze: don't care what anybody says. You tell me 30 years, 110 00:06:46,109 --> 00:06:48,670 Suze: I'll think about it but not three. 111 00:06:48,890 --> 00:06:53,309 Suze: All right. So hopefully you did a prenup. Absolutely protecting 112 00:06:53,320 --> 00:06:59,510 Suze: all of that. What is interesting is that this advisor 113 00:06:59,760 --> 00:07:06,308 Suze: wants you to sell $2 million of your real estate? Why, 114 00:07:06,799 --> 00:07:09,589 Suze: why in this environment 115 00:07:10,190 --> 00:07:13,279 Suze: would he want you or she want you to sell 116 00:07:13,290 --> 00:07:18,040 Suze: $2 million of paid for real estate that is generating 117 00:07:18,250 --> 00:07:22,970 Suze: a lot of income for you and probably continuing to grow. 118 00:07:23,299 --> 00:07:27,329 Suze: That's number one. You say you wanna plan 119 00:07:27,980 --> 00:07:31,059 Suze: so that everything is great and you can leave a 120 00:07:31,070 --> 00:07:35,679 Suze: legacy for your children and your grandchildren. One of the 121 00:07:35,690 --> 00:07:39,079 Suze: great ways to do that is that if your individual 122 00:07:39,089 --> 00:07:43,799 Suze: real estate you bought a long time ago, you just 123 00:07:43,809 --> 00:07:48,230 Suze: keep and on your death, it passes to them via 124 00:07:48,239 --> 00:07:51,350 Suze: a living revocable trust. They're gonna get a step up 125 00:07:51,359 --> 00:07:55,149 Suze: in cost basis on all of it and not have 126 00:07:55,160 --> 00:07:57,079 Suze: to pay any tax. 127 00:07:57,420 --> 00:08:02,839 Suze: Got that girlfriend. If you sell your real estate right now, 128 00:08:02,850 --> 00:08:06,790 Suze: you're going to have income tax on it. Will you 129 00:08:06,799 --> 00:08:10,000 Suze: have recaptured tax on it? Have you looked at the 130 00:08:10,010 --> 00:08:15,179 Suze: tax ramifications of selling these properties? That's number one, number 131 00:08:15,190 --> 00:08:17,649 Suze: two and Katie, I know you want me to make 132 00:08:17,660 --> 00:08:22,239 Suze: these short, but when it's this much money involved, I 133 00:08:22,250 --> 00:08:25,230 Suze: really need to go into detail about something, 134 00:08:25,640 --> 00:08:30,459 Suze: this suggestion of this person wanting you to put all 135 00:08:30,470 --> 00:08:33,549 Suze: of this money to begin with in a money market 136 00:08:33,559 --> 00:08:39,500 Suze: fund and then do what spread it over five different 137 00:08:39,510 --> 00:08:45,359 Suze: American funds. American funds are mutual funds that have if 138 00:08:45,369 --> 00:08:48,699 Suze: they're a share funds, which I bet they are, they 139 00:08:48,710 --> 00:08:52,940 Suze: all have a load on them. I just want to 140 00:08:52,950 --> 00:08:54,739 Suze: say that I'm suspicious here 141 00:08:55,409 --> 00:09:00,030 Suze: because there can't be that much difference in all of 142 00:09:00,039 --> 00:09:04,059 Suze: the American funds. Now, American funds are great funds. I 143 00:09:04,070 --> 00:09:06,909 Suze: do not like that. They have a load on them. 144 00:09:07,200 --> 00:09:09,729 Suze: I just want to tell you about their load 145 00:09:10,820 --> 00:09:15,520 Suze: for anything under $25,000. There's a five and three quarters 146 00:09:15,530 --> 00:09:20,770 Suze: percent load. Then it goes up in tranches from 25 147 00:09:20,780 --> 00:09:27,250 Suze: to 50. 50 to 100. 100 to 250. 250 to 499. 148 00:09:27,390 --> 00:09:33,840 Suze: If you put $400,000 in these funds, it's gonna be 149 00:09:33,849 --> 00:09:40,559 Suze: a 2.5% load. So that means with this advisor's suggestion 150 00:09:40,909 --> 00:09:45,950 Suze: that you are going to pay a commission of 2.5% 151 00:09:46,390 --> 00:09:50,340 Suze: on each one of these five funds. If you simply 152 00:09:50,349 --> 00:09:55,780 Suze: had put $500,000 in, there would only be a 2% commission, 153 00:09:55,789 --> 00:09:59,890 Suze: which still, in my opinion is way too high. Just so, 154 00:09:59,900 --> 00:10:03,150 Suze: you know, for a million dollars or more, there is 155 00:10:03,159 --> 00:10:09,760 Suze: no commission. What so ever when you have this amount 156 00:10:09,770 --> 00:10:10,479 Suze: of money, 157 00:10:11,109 --> 00:10:14,549 Suze: this amount of money, $2 million shouldn't be going into 158 00:10:14,559 --> 00:10:18,979 Suze: all mutual funds at $2 million. If you had a 159 00:10:18,989 --> 00:10:24,260 Suze: great financial advisor, they would be putting you in individual stocks, 160 00:10:24,340 --> 00:10:26,630 Suze: they would be able to do option strategy 161 00:10:26,854 --> 00:10:30,125 Suze: with you, all kinds of things. They might diversify with 162 00:10:30,135 --> 00:10:34,815 Suze: you with some bonds, treasuries, all kinds of things. So, no, 163 00:10:35,015 --> 00:10:37,125 Suze: I do not think you should be doing that with 164 00:10:37,135 --> 00:10:40,965 Suze: that advisor. Number one, number two, if you have liked 165 00:10:40,974 --> 00:10:44,594 Suze: your real estate and it's producing for you in terms 166 00:10:44,604 --> 00:10:47,994 Suze: of great rental income, I personally would be keeping it. 167 00:10:48,215 --> 00:10:50,564 Suze: I would be telling you since you are probably going 168 00:10:50,575 --> 00:10:52,604 Suze: to be moving into your home 169 00:10:53,349 --> 00:10:57,200 Suze: that you owned outright, that you better work out something 170 00:10:57,210 --> 00:10:59,570 Suze: with your husband as to how do you really share 171 00:10:59,580 --> 00:11:02,890 Suze: those expenses and things like that? But I am just 172 00:11:02,900 --> 00:11:06,840 Suze: wishing and praying and hoping that all of your individual 173 00:11:06,849 --> 00:11:10,549 Suze: assets that you entered this relationship with are in just 174 00:11:10,559 --> 00:11:14,549 Suze: your name and you never ever, ever put them in 175 00:11:14,559 --> 00:11:18,409 Suze: joint name with your husband ever. What KT? 176 00:11:18,419 --> 00:11:21,289 KT: I want you to tell everyone listening 177 00:11:21,640 --> 00:11:26,080 KT: about this hypothetical 30 year model. Can you please set 178 00:11:26,090 --> 00:11:30,260 KT: everyone straight that any model that you go back half 179 00:11:30,270 --> 00:11:35,580 KT: of your lifetime is gonna be significantly different? Can, can 180 00:11:35,590 --> 00:11:37,369 KT: you tell people to just be aware of... 181 00:11:37,469 --> 00:11:42,219 Suze: Just, you know, it doesn't matter what happened over the past, 182 00:11:42,229 --> 00:11:45,700 Suze: what matters is what is happening right now. 183 00:11:46,239 --> 00:11:50,539 Suze: And real estate today is very, very different than real 184 00:11:50,549 --> 00:11:55,179 Suze: estate was years ago. Your property taxes on that real 185 00:11:55,190 --> 00:11:58,539 Suze: estate is lower than if you just bought that real 186 00:11:58,549 --> 00:12:03,390 Suze: estate today. There's a reason that you invested in real estate, 187 00:12:03,400 --> 00:12:06,880 Suze: that means you are comfortable with it. You like it, 188 00:12:07,030 --> 00:12:09,580 Suze: it's providing for you right 189 00:12:09,679 --> 00:12:13,880 Suze: now. There is no way of really knowing what's gonna 190 00:12:13,890 --> 00:12:17,260 Suze: happen with the stock market. What's gonna go on. It 191 00:12:17,270 --> 00:12:23,409 Suze: doesn't matter about 30 years ago, what matters is right here. 192 00:12:23,419 --> 00:12:26,719 Suze: And right now if it's a good investment or not, 193 00:12:26,820 --> 00:12:30,119 Suze: and with this kind of money, there is no reason 194 00:12:30,130 --> 00:12:33,020 Suze: in a million years. If you did do that, 195 00:12:33,539 --> 00:12:36,619 Suze: that you would put it in my opinion, in exchange 196 00:12:36,640 --> 00:12:40,010 Suze: traded funds or mutual funds, you would find a financial 197 00:12:40,020 --> 00:12:44,799 Suze: advisor who managed the money themselves and didn't get an 198 00:12:44,809 --> 00:12:49,849 Suze: expense ratio because why it's in a mutual fund. It just, no, 199 00:12:49,859 --> 00:12:51,539 Suze: I don't like this person. Don't do it. 200 00:12:51,549 --> 00:12:53,760 KT: Don't do it, don't do it. 201 00:12:54,090 --> 00:12:58,429 KT: Next. Anne Marie says, hi ladies. I'm 69 and just 202 00:12:58,440 --> 00:13:04,099 KT: found out I'm named beneficiary on 100 and $50,000 Roth 203 00:13:04,109 --> 00:13:08,780 KT: from my ex. Well, wait, we've been divorced 30 years 204 00:13:08,789 --> 00:13:12,429 KT: and it's all he has. It should go to our 205 00:13:12,440 --> 00:13:15,309 KT: 40 year old daughter. How do I get it to 206 00:13:15,320 --> 00:13:19,429 KT: her with the least tax impact for either of us? 207 00:13:20,289 --> 00:13:22,630 KT: Thank you for all you do. How does she do that? 208 00:13:23,070 --> 00:13:27,549 Suze: Given the fact that your ex was smart enough to 209 00:13:27,559 --> 00:13:31,219 Suze: have it all in a Roth. It doesn't really matter 210 00:13:31,359 --> 00:13:35,979 Suze: upon his death. All $150,000 will come to you. You 211 00:13:35,989 --> 00:13:38,250 Suze: can take it out tax free. Give it to your 212 00:13:38,260 --> 00:13:40,020 Suze: daughter if you want or 213 00:13:40,840 --> 00:13:43,848 Suze: talk to your ex. Obviously, if he's leaving it to 214 00:13:43,859 --> 00:13:47,179 Suze: you and just say to him, can you please just 215 00:13:47,190 --> 00:13:51,450 Suze: change it from me to the 40 year old daughter. 216 00:13:51,460 --> 00:13:57,869 Suze: Just that simple. Either way there's no tax impact whatsoever 217 00:13:58,369 --> 00:14:02,510 Suze: as a beneficiary of a Roth retirement account. All right. 218 00:14:02,520 --> 00:14:06,830 KT: So I, I have one more financial planner question here. 219 00:14:06,919 --> 00:14:09,309 KT: They kind of came in in a big bunch, ready? 220 00:14:09,619 --> 00:14:11,390 Suze: Is this one going to aggravate me? 221 00:14:11,400 --> 00:14:11,919 KT: Yes. 222 00:14:13,880 --> 00:14:17,599 KT: Yeah, this is from Valerie. Hi, Suze and KT. 223 00:14:17,609 --> 00:14:19,729 Suze: Are you all noticing a trend here? 224 00:14:19,739 --> 00:14:24,030 KT: Wait, wait, wait, a financial planner had me close my CD. 225 00:14:24,159 --> 00:14:27,989 KT: Ready Suze? Put the money in my checking account for 226 00:14:28,000 --> 00:14:31,280 KT: ease of transfer to a Roth IRA that he opened 227 00:14:31,289 --> 00:14:34,229 KT: for me. It's been a month. The money is still 228 00:14:34,239 --> 00:14:36,739 KT: sitting in my checking account earning nothing. 229 00:14:37,270 --> 00:14:41,239 KT: Now she said I don't know how to fund my IRA. 230 00:14:41,390 --> 00:14:44,770 KT: So I'm coming to you, Suze for advice. Should I 231 00:14:44,780 --> 00:14:49,099 KT: hire another financial planner or do this on my own? 232 00:14:49,109 --> 00:14:53,010 KT: The thought of making a mistake with this 50,000 233 00:14:53,094 --> 00:14:57,854 KT: dollars, Suze, sitting in a checking account paralyzes me. Then 234 00:14:57,864 --> 00:15:00,135 KT: here's what I just want to read to all of you. 235 00:15:00,145 --> 00:15:04,794 KT: What she's got. I have the Ultimate Opportunity Savings Account. 236 00:15:05,065 --> 00:15:08,784 KT: I have 400,000 in a Roth 401k. 237 00:15:09,099 --> 00:15:15,400 KT: I have 10,000 series I bonds and $100,000 CD which will 238 00:15:15,409 --> 00:15:20,299 KT: mature next month and 12 months of expenses saved. 239 00:15:20,309 --> 00:15:22,780 Suze: Does she give us her income level? Like is she 240 00:15:22,789 --> 00:15:26,900 Suze: even qualified to do a contributory Roth IRA? 241 00:15:27,130 --> 00:15:28,880 KT: No, but here this will give us a hint of 242 00:15:28,890 --> 00:15:32,000 KT: when she's retiring in her age. I live very much 243 00:15:32,010 --> 00:15:35,880 KT: below my means and save everything I can for a 244 00:15:35,890 --> 00:15:38,559 KT: 2027 retirement. 245 00:15:39,090 --> 00:15:42,609 KT: So she's asking you for some guidance, but it sounds 246 00:15:42,619 --> 00:15:46,169 KT: like she has done everything. But most 247 00:15:46,179 --> 00:15:46,809 KT: importantly... 248 00:15:47,219 --> 00:15:48,190 Suze: This person... 249 00:15:48,200 --> 00:15:50,750 KT: She's, if you look at her list, why I read 250 00:15:50,760 --> 00:15:53,469 KT: the shopping list of what she's got. Everything in this 251 00:15:53,479 --> 00:15:56,880 KT: list is what Suze Orman has advised over the past 252 00:15:56,890 --> 00:15:58,309 KT: two years. Everything. 253 00:15:58,539 --> 00:16:01,030 Suze: So if you have, Valerie, I don't know if you 254 00:16:01,135 --> 00:16:04,375 Suze: have or not, but listen to me over all of 255 00:16:04,385 --> 00:16:10,155 Suze: that time. Are you kidding me? First of all, you 256 00:16:10,164 --> 00:16:17,164 Suze: can't transfer $50,000 from a CD into a Roth IRA 257 00:16:17,174 --> 00:16:22,085 Suze: unless the CD was in a Roth IRA. But obviously 258 00:16:22,094 --> 00:16:23,075 Suze: it's not 259 00:16:23,489 --> 00:16:27,659 Suze: why he had, you put it all in a checking account. 260 00:16:27,809 --> 00:16:30,109 Suze: Why didn't he have you at least do it in 261 00:16:30,119 --> 00:16:33,969 Suze: a money market account so that you could make 4% 262 00:16:33,979 --> 00:16:37,979 Suze: or 5% on it? Are you crazy? Number one, that 263 00:16:37,989 --> 00:16:43,640 Suze: is his first stupid mistake that he himself made then 264 00:16:43,650 --> 00:16:45,469 Suze: to have it sit there 265 00:16:45,830 --> 00:16:48,900 Suze: when he says he's gonna open up a Roth for you, 266 00:16:48,909 --> 00:16:54,020 Suze: which he did but not transfer at $8000 right away 267 00:16:54,030 --> 00:16:58,140 Suze: into that Roth another 8000 at the beginning of next 268 00:16:58,150 --> 00:17:03,869 Suze: year and have invested it for you. What's that about? So, no, 269 00:17:03,880 --> 00:17:07,219 Suze: I won't be doing anything that this advisor told me. 270 00:17:07,229 --> 00:17:12,140 Suze: Number one, number two, you can do this on your own. 271 00:17:12,150 --> 00:17:13,420 Suze: Do you hear me? 272 00:17:14,109 --> 00:17:16,540 Suze: I would be taking this money and I would be 273 00:17:16,550 --> 00:17:21,139 Suze: opening an account at either Schwab or Fidelity. I would 274 00:17:21,150 --> 00:17:25,469 Suze: be putting it into their government money market funds, either one. 275 00:17:26,020 --> 00:17:29,150 Suze: And then I would be opening on my own. A 276 00:17:29,310 --> 00:17:33,659 Suze: Roth IRA because the most you can contribute while you're 277 00:17:33,670 --> 00:17:39,968 Suze: working is $8000 this year, $8000 next year. 278 00:17:40,459 --> 00:17:44,800 Suze: So now you have $16,000 that you can invest within 279 00:17:44,810 --> 00:17:51,000 Suze: your Roth IRA. But the other $34,000 is at least 280 00:17:51,010 --> 00:17:56,569 Suze: sitting in a money market account making more interest and 281 00:17:56,579 --> 00:17:58,959 Suze: I would absolutely do it on my own. You do 282 00:17:58,969 --> 00:18:05,910 Suze: not need a financial advisor to be investing $16,000 for you. 283 00:18:05,920 --> 00:18:08,280 Suze: Do you hear me, Valerie? 284 00:18:09,030 --> 00:18:09,040 Suze: Ugh... 285 00:18:10,670 --> 00:18:13,319 KT: Wait, Valerie, you have about two weeks to do what 286 00:18:13,329 --> 00:18:14,290 KT: Suze just said. 287 00:18:14,640 --> 00:18:17,650 Suze: So do it now, girlfriend, which is why, by the way, 288 00:18:18,369 --> 00:18:21,129 Suze: every one of you when you write in, you don't 289 00:18:21,140 --> 00:18:23,890 Suze: know if I'm gonna answer your question or not. You 290 00:18:23,900 --> 00:18:26,420 Suze: don't know if we go way back in time and 291 00:18:26,430 --> 00:18:29,709 Suze: pick a question from back then and answer it. So 292 00:18:29,719 --> 00:18:33,469 Suze: it's really important that if you want your question answered 293 00:18:33,560 --> 00:18:37,189 Suze: that you at least listen to see if we're answering it. Go on KT. 294 00:18:37,859 --> 00:18:44,889 KT: Ok, next question is from Susan. Hi. Fun girls. Yeah. Hi, fun... 295 00:18:45,300 --> 00:18:47,078 Suze: Do know that we spend how many minutes a day laughing would you say laughing? 296 00:18:48,339 --> 00:18:51,550 KT: Too many hours 297 00:18:54,530 --> 00:18:58,020 Suze: Colo comes in first thing in the morning. Seriously, I'm 298 00:18:58,030 --> 00:18:58,979 Suze: still in bed. 299 00:18:59,349 --> 00:19:03,000 Suze: Right. KT has already brought in coffee for all three 300 00:19:03,010 --> 00:19:08,369 Suze: of us and now we're having serious meetings, meetings. And 301 00:19:08,380 --> 00:19:12,520 Suze: do you know what this morning's meeting was? It was about? 302 00:19:12,530 --> 00:19:15,640 Suze: Tell Suze, what about Caitlin Clark? 303 00:19:15,810 --> 00:19:16,280 KT: Oh, 304 00:19:16,290 --> 00:19:17,650 Suze: These are our conversations in the morning. 305 00:19:19,505 --> 00:19:24,025 KT: Colo reports. First of all, he's an incredible sport aficionado. 306 00:19:24,755 --> 00:19:24,764 Suze: He's a savant. 307 00:19:24,764 --> 00:19:28,954 KT: Oh, he is, his mind has a memory beyond the beyond. 308 00:19:28,964 --> 00:19:32,604 KT: His big report this morning, everyone was that we had 309 00:19:32,614 --> 00:19:35,994 KT: to know that Caitlin Clark has been named 310 00:19:37,050 --> 00:19:39,400 KT: athlete of the year by Time. 311 00:19:39,939 --> 00:19:43,150 Suze: And then he wanted to make sure we knew that 312 00:19:43,160 --> 00:19:46,719 Suze: they're all flying now on a private plane. 313 00:19:46,750 --> 00:19:50,239 KT: That because of her. And then he said for KT, 314 00:19:50,250 --> 00:19:54,489 KT: did you know Susie for 23 years, the women's be 315 00:19:54,535 --> 00:19:58,574 KT: basketball teams have been trying to get private flights to 316 00:19:58,584 --> 00:20:01,435 KT: send the team around when they do their, I guess, 317 00:20:01,444 --> 00:20:05,083 KT: you know, their tournament. And he said, um, and he 318 00:20:05,094 --> 00:20:07,704 KT: said they were flying on, you know, all these little 319 00:20:07,984 --> 00:20:09,484 KT: planes and commercial 320 00:20:09,564 --> 00:20:12,035 Suze: And he goes on and on and the whole conversation 321 00:20:12,920 --> 00:20:16,010 Suze: is about sports and all we can do is laugh. 322 00:20:16,020 --> 00:20:16,599 Suze: All right. Go on. 323 00:20:17,630 --> 00:20:21,739 KT: But this question is good. Hi, fun girls and Colo. 324 00:20:21,750 --> 00:20:25,270 KT: Quick question. I have a Roth and a newly opened 325 00:20:25,280 --> 00:20:30,030 KT: brokerage account. I've been buying stocks and index funds in 326 00:20:30,040 --> 00:20:33,627 KT: the Roth, but only BND in the brokerage account. 327 00:20:33,627 --> 00:20:34,510 Suze: That's the bond fund. 328 00:20:34,520 --> 00:20:38,030 KT: Right. I'd like to add some of your dividend stock 329 00:20:38,040 --> 00:20:41,260 KT: picks but unsure which account they should go in. 330 00:20:41,900 --> 00:20:46,079 Suze: It's difficult for me, Susan to answer this question. Only 331 00:20:46,089 --> 00:20:49,800 Suze: because I don't know the goal of your money really. 332 00:20:49,890 --> 00:20:53,829 Suze: That and your income tax situation, I would be buying 333 00:20:53,839 --> 00:20:58,280 Suze: probably stocks, index funds that maybe I would keep for 334 00:20:58,290 --> 00:21:01,430 Suze: a long term of growth. And if you're buying the 335 00:21:01,439 --> 00:21:04,630 Suze: bond fund, I would probably do it in my brokerage account. 336 00:21:04,640 --> 00:21:04,949 Suze: All right, go on. 337 00:21:04,959 --> 00:21:09,160 KT: Ok. Another one. This is from Carol. She said, hello, 338 00:21:09,270 --> 00:21:14,050 KT: KT and Suze. Many thanks for sharing your joie de vivre and 339 00:21:14,060 --> 00:21:18,790 KT: financial guidance over these many years. 340 00:21:19,290 --> 00:21:20,310 Suze: Do a French accent for me. 341 00:21:20,400 --> 00:21:20,969 KT: Joie de vivre. 342 00:21:22,089 --> 00:21:23,050 Suze: That's right. 343 00:21:23,280 --> 00:21:23,560 Suze: Tres bien, mi amour, 344 00:21:28,760 --> 00:21:29,130 KT: she said 345 00:21:29,680 --> 00:21:32,369 Suze: I just did Spanish for you. All right. I combined 346 00:21:32,380 --> 00:21:32,800 Suze: the two 347 00:21:34,699 --> 00:21:36,000 Suze: Mon amore. 348 00:21:38,780 --> 00:21:42,810 KT: I have a quick question about my living revocable trust. 349 00:21:42,819 --> 00:21:46,530 KT: I do not want my successor trustee to have all 350 00:21:46,540 --> 00:21:50,500 KT: the powers granted in the document. I want my successor 351 00:21:50,510 --> 00:21:55,910 KT: trustee to simply liquidate my holdings and make distributions. And 352 00:21:55,920 --> 00:21:57,169 KT: then she's asking, 353 00:21:57,599 --> 00:22:00,959 KT: can I omit the long list of authorizations and replace 354 00:22:00,969 --> 00:22:04,290 KT: it with instructions of what I wish to do if 355 00:22:04,300 --> 00:22:07,729 KT: I move to another state? Do I need to restate 356 00:22:07,739 --> 00:22:08,160 KT: for that reason? 357 00:22:08,930 --> 00:22:11,300 Suze: Yeah, if you move to another state, you don't have 358 00:22:11,310 --> 00:22:16,760 Suze: to restate anything truthfully. However, if you wanna be that specific, 359 00:22:17,505 --> 00:22:21,665 Suze: you need to go then and see a trust lawyer 360 00:22:21,744 --> 00:22:26,395 Suze: when you're using a trust program and it's a boilerplate 361 00:22:26,405 --> 00:22:30,014 Suze: such as the must have. Documents happens to be. No, 362 00:22:30,025 --> 00:22:33,813 Suze: you cannot change any part of those documents because it 363 00:22:33,824 --> 00:22:36,114 Suze: has to be clear that you are protected 364 00:22:36,489 --> 00:22:39,469 Suze: and sometimes you can change something that actually hurts you 365 00:22:39,479 --> 00:22:42,180 Suze: rather than is there to help you. So my advice 366 00:22:42,189 --> 00:22:44,819 Suze: would be go and see a trust lawyer have a 367 00:22:44,829 --> 00:22:49,239 Suze: trust drawn up exactly what you want the successor trustee 368 00:22:49,250 --> 00:22:51,979 Suze: to be able to do or not do. However, 369 00:22:52,680 --> 00:22:57,109 Suze: a successor trustee is somebody that once you are dead 370 00:22:57,119 --> 00:23:01,209 Suze: or you're incapacitated really does have to carry out all 371 00:23:01,219 --> 00:23:05,659 Suze: of your wishes according to the trust, if you don't 372 00:23:05,670 --> 00:23:09,479 Suze: trust that person to do exactly that you don't have 373 00:23:09,489 --> 00:23:12,469 Suze: the right successor trustee. OK. 374 00:23:13,099 --> 00:23:16,889 KT: Next question, Suze is from Anne. She said, hello, my 375 00:23:16,900 --> 00:23:20,229 KT: husband and I are purchasing a condo for our daughter 376 00:23:20,239 --> 00:23:21,409 KT: in San Diego. 377 00:23:21,680 --> 00:23:24,459 KT: We wanted to put the condo in her name as 378 00:23:24,469 --> 00:23:28,219 KT: well as ours. All of our properties have been in 379 00:23:28,229 --> 00:23:32,219 KT: our trust. What do you suggest for this property? Put 380 00:23:32,229 --> 00:23:34,819 KT: it in the trust with her first line over the 381 00:23:34,829 --> 00:23:40,500 KT: two other siblings, joint tenants, community property or community property 382 00:23:40,510 --> 00:23:42,439 KT: with right of survivorship. 383 00:23:42,770 --> 00:23:44,629 Suze: Ding, ding, ding, ding pop quizzy. 384 00:23:44,989 --> 00:23:45,900 KT: Oh 385 00:23:45,910 --> 00:23:47,020 KT: oh 386 00:23:47,770 --> 00:23:51,899 KT: oh, so put it in the trust with her - 387 00:23:51,899 --> 00:23:52,780 KT: I would do 388 00:23:53,099 --> 00:23:59,400 Suze: Wait. Everybody. How would you answer this question? Mommy and 389 00:23:59,410 --> 00:24:02,239 Suze: daddy want to leave the property... 390 00:24:02,729 --> 00:24:04,229 KT: Well, they want to buy this for their. 391 00:24:04,239 --> 00:24:04,709 Suze: They 392 00:24:04,719 --> 00:24:09,439 Suze: want to buy a condo just for their daughter in 393 00:24:09,449 --> 00:24:12,160 Suze: San Diego right now. 394 00:24:12,680 --> 00:24:15,349 Suze: They want to put the condo in her name as 395 00:24:15,359 --> 00:24:20,149 Suze: well as theirs. Ok. All of our properties have been 396 00:24:20,160 --> 00:24:23,968 Suze: in trust. What do you suggest for this property? 397 00:24:24,619 --> 00:24:28,119 Suze: Would you everybody, KT, would you put it in trust 398 00:24:28,420 --> 00:24:33,579 Suze: with her first line over the two other siblings, joint 399 00:24:33,589 --> 00:24:39,189 Suze: tenants or community property with right of survivorship. First question 400 00:24:39,810 --> 00:24:43,680 Suze: with their daughter, can they put it in community property? 401 00:24:45,069 --> 00:24:46,050 KT: I don't know. 402 00:24:46,540 --> 00:24:48,530 Suze: She has the cutest little face. 403 00:24:49,349 --> 00:24:49,438 KT: I 404 00:24:49,459 --> 00:24:49,948 KT: don't know. 405 00:24:50,020 --> 00:24:53,479 Suze: The answer to that is no because community property is 406 00:24:53,489 --> 00:24:55,800 Suze: only between spouses. 407 00:24:56,060 --> 00:24:57,389 KT: See, I didn't 408 00:24:57,400 --> 00:24:57,790 KT: know that. 409 00:24:58,079 --> 00:25:00,329 Suze: Well now you do. So you can't do community property 410 00:25:00,339 --> 00:25:01,689 Suze: with her name on it. 411 00:25:02,439 --> 00:25:06,709 Suze: I personally would not put her name on it right now. 412 00:25:07,069 --> 00:25:11,540 Suze: I just wouldn't, I would own it in your name 413 00:25:11,619 --> 00:25:15,089 Suze: and your husband's name and then I would own it 414 00:25:15,099 --> 00:25:19,949 Suze: in community property with right of survivorship so that it 415 00:25:19,959 --> 00:25:22,129 Suze: went to either one of you, but you got a 416 00:25:22,140 --> 00:25:25,229 Suze: step up in basis on the entire thing. If just 417 00:25:25,239 --> 00:25:30,020 Suze: one of you dies, then what I would do is 418 00:25:30,030 --> 00:25:31,250 Suze: at that point, 419 00:25:31,550 --> 00:25:35,420 Suze: you could do a transfer on death account that upon 420 00:25:35,430 --> 00:25:39,969 Suze: the last person's death, meaning whoever survived of the two 421 00:25:39,979 --> 00:25:43,969 Suze: of you, it goes directly to your daughter. Now, you 422 00:25:43,979 --> 00:25:46,930 Suze: could do that in trust for her. But if you 423 00:25:46,939 --> 00:25:49,719 Suze: don't want any complications 424 00:25:50,479 --> 00:25:53,180 Suze: and you want to avoid probate and everything. You could 425 00:25:53,189 --> 00:25:58,540 Suze: do it as a transfer on death just with that property. 426 00:25:58,550 --> 00:25:59,569 KT: And with that daughter. 427 00:25:59,709 --> 00:26:01,319 Suze: So, officially we've done your quizzy. 428 00:26:01,890 --> 00:26:02,250 KT: All right. 429 00:26:02,260 --> 00:26:04,109 Suze: So you usually end after your quizzy. 430 00:26:04,310 --> 00:26:07,060 KT: Oh, wait, let me just do one more. Do you 431 00:26:07,069 --> 00:26:07,780 KT: want to end? 432 00:26:08,430 --> 00:26:11,089 Suze: Never. Never, 433 00:26:11,719 --> 00:26:12,449 KT: never, 434 00:26:12,459 --> 00:26:13,569 Suze: never. Never. 435 00:26:13,979 --> 00:26:16,968 KT: All right. Hi, Suze and KT. We're closing our home 436 00:26:16,979 --> 00:26:19,569 KT: next week. Should I pay it off in full or 437 00:26:19,579 --> 00:26:25,050 KT: get a mortgage partially and invest that remaining cash? Listen 438 00:26:25,060 --> 00:26:28,849 KT: to these numbers, Susie, we're already putting more than 50% 439 00:26:28,859 --> 00:26:33,010 KT: down on a $700,000 home. 440 00:26:33,500 --> 00:26:38,329 KT: I have additional 300,000 from the sale of our current 441 00:26:38,339 --> 00:26:42,050 KT: home that we're not sure to invest or pay full 442 00:26:42,060 --> 00:26:46,250 KT: in cash for the new home. We are currently set 443 00:26:46,260 --> 00:26:50,829 KT: to get a 15 year mortgage for the 300,000 rate 444 00:26:50,839 --> 00:26:51,399 KT: locked at 445 00:26:51,785 --> 00:26:54,284 KT: .25%. Seems a little bit high. 446 00:26:54,474 --> 00:26:54,885 Suze: That's 447 00:26:54,895 --> 00:26:55,744 Suze: actually low in 448 00:26:55,755 --> 00:26:56,324 Suze: comparison. 449 00:26:56,334 --> 00:26:59,665 KT: But I mean, anyway, my hu listen to this, my 450 00:26:59,675 --> 00:27:03,014 KT: husband and I are 52 and 48, done with the 451 00:27:03,025 --> 00:27:07,583 KT: kids education expenses, fully paid off college, no student loans, 452 00:27:07,594 --> 00:27:11,474 KT: no car loans or any other debt we take home 453 00:27:11,484 --> 00:27:14,324 KT: combined roughly 200,000. 454 00:27:15,349 --> 00:27:16,530 KT: Personally. So, 455 00:27:16,979 --> 00:27:17,160 Suze: let's 456 00:27:17,170 --> 00:27:18,129 Suze: so quizzy again. What would you do? 457 00:27:18,650 --> 00:27:23,250 KT: Could I answer this? They're 52 and 48. They're still 458 00:27:23,260 --> 00:27:24,139 KT: pretty young. 459 00:27:24,150 --> 00:27:25,159 Suze: What would you tell them? 460 00:27:25,959 --> 00:27:28,180 KT: I wouldn't pay it off in full. 461 00:27:28,500 --> 00:27:29,780 Suze: Great. What would you do? 462 00:27:30,670 --> 00:27:34,569 KT: I would put down the 50% is huge. And if 463 00:27:34,579 --> 00:27:38,000 KT: you're saying that 5.25 is pretty good, then they have 464 00:27:38,010 --> 00:27:42,630 KT: at least these 300,000 cash as an emergency money and... 465 00:27:42,640 --> 00:27:43,849 Suze: They could pay it off anytime 466 00:27:43,859 --> 00:27:43,968 Suze: ...they 467 00:27:43,979 --> 00:27:46,409 KT: want any time they want in case they need that money. 468 00:27:46,420 --> 00:27:48,774 KT: You never know about the what ifs? That's what I would do. 469 00:27:48,774 --> 00:27:48,780 Suze: Ding Ding Ding! 470 00:27:53,000 --> 00:27:54,899 KT: You're good, KT. You're good KT. 471 00:27:56,160 --> 00:27:56,750 KT: I never get it right. 472 00:27:56,829 --> 00:27:59,130 Suze: But I just have to tell you a little funny story, 473 00:27:59,140 --> 00:28:04,439 Suze: which is we're trying to do a translation of the 474 00:28:04,449 --> 00:28:11,589 Suze: podcast into Spanish. OK. And, and so I heard the 475 00:28:11,599 --> 00:28:14,329 Suze: first version last night 476 00:28:14,619 --> 00:28:18,979 Suze: and the one that got translated with artificial intelligence, even 477 00:28:18,989 --> 00:28:22,438 Suze: though they weren't able to capture our sweet little voices, 478 00:28:22,739 --> 00:28:25,270 Suze: although you have a much sweeter voice than I do. 479 00:28:25,329 --> 00:28:29,909 Suze: But anyway, is, was an Ask KT and Suze Anything. KT, 480 00:28:29,920 --> 00:28:32,770 Suze: you don't even know this. So I listened to it 481 00:28:32,780 --> 00:28:37,630 Suze: last night and I was listening to the quizzy part 482 00:28:37,800 --> 00:28:40,109 Suze: and you hear it go ding, ding, ding, ding, ding, ding, 483 00:28:40,512 --> 00:28:44,512 Suze: like these, like these, like these noises that we make 484 00:28:44,733 --> 00:28:48,022 Suze: and I'm trying to imitate it. It was so funny. 485 00:28:48,032 --> 00:28:49,022 Suze: I can't tell you. 486 00:28:49,192 --> 00:28:51,083 KT: We should let colo listen to it 487 00:28:51,162 --> 00:28:53,223 Suze: because I don't know if it's, if it's accurate. 488 00:28:53,302 --> 00:28:57,473 KT: It's funny because we, we were hoping we could translate... 489 00:28:57,753 --> 00:29:00,302 KT: if Susie and I spoke fluent Spanish, we would be 490 00:29:00,312 --> 00:29:02,463 KT: able to do this and we so want to, 491 00:29:02,682 --> 00:29:03,113 Suze: It's such a 492 00:29:03,142 --> 00:29:04,062 Suze: shame we don't... 493 00:29:04,272 --> 00:29:05,542 KT: We really, really 494 00:29:05,715 --> 00:29:10,806 KT: want to take care of our Hispanic community is so important. Right? 495 00:29:10,816 --> 00:29:14,145 Suze: But anyway, I just thought that was kind of funny. Ding, ding, ding, ding, ding, ding. 496 00:29:14,715 --> 00:29:16,395 Suze: You should hear, I have to play it for you. 497 00:29:16,406 --> 00:29:19,975 Suze: It's actually hysterical. All right. That brings us to the 498 00:29:19,985 --> 00:29:24,855 Suze: end of another Ask KT and Suze Anything. If you want, 499 00:29:24,865 --> 00:29:29,426 Suze: send in your question to ask Suze Suze podcast at 500 00:29:29,436 --> 00:29:31,135 Suze: gmail.com 501 00:29:31,680 --> 00:29:35,609 Suze: and if KT picks it, we will answer it on 502 00:29:35,619 --> 00:29:41,119 Suze: the podcast. But until Sunday for Suze School, there's really 503 00:29:41,130 --> 00:29:43,359 Suze: only one thing that we want you to remember when 504 00:29:43,369 --> 00:29:45,469 Suze: it comes to your money. And what is it, KT? 505 00:29:45,479 --> 00:29:48,530 KT: People first, then money, then things. 506 00:29:48,540 --> 00:29:52,930 Suze: And if you do that, stay healthy, stay strong 507 00:29:53,619 --> 00:29:58,000 Suze: and stand in your truth, we promise you you will 508 00:29:58,010 --> 00:30:00,780 Suze: be unstoppable.