1 00:00:28,909 --> 00:00:34,209 Suze: October 12th 2023. Welcome everybody to the Women and Money 2 00:00:34,220 --> 00:00:40,250 Suze: podcast as well as everybody smart enough to listen, Suze O, here. 3 00:00:40,939 --> 00:00:45,939 Suze: No, I don't hear little KT's voice. Wanna know why 4 00:00:45,950 --> 00:00:51,360 Suze: that is because KT somehow two or three days ago 5 00:00:51,450 --> 00:00:57,599 Suze: came down with a horrific, horrific cold and cough where 6 00:00:57,610 --> 00:01:01,360 Suze: she is coughing almost all the time. So she can't 7 00:01:01,369 --> 00:01:03,360 Suze: do today's podcast. 8 00:01:04,230 --> 00:01:06,110 Suze: And I don't know if you can hear it in 9 00:01:06,120 --> 00:01:09,940 Suze: my voice, but I think I took that from her. 10 00:01:10,349 --> 00:01:12,099 Suze: Not that I took it away from her, 11 00:01:12,839 --> 00:01:15,180 Suze: but I don't wanna say she gave it to me 12 00:01:15,470 --> 00:01:18,260 Suze: because KT would never give me anything that wasn't good 13 00:01:18,269 --> 00:01:21,580 Suze: for me. But because it was my choice to stick 14 00:01:21,589 --> 00:01:25,149 Suze: around her when she was coughing and doing everything else, 15 00:01:25,160 --> 00:01:28,459 Suze: feeding her and on and on. I think I took it, 16 00:01:28,949 --> 00:01:31,300 Suze: I took it and made it my own as well. 17 00:01:31,309 --> 00:01:35,440 Suze: So we'll see, hopefully that will not be true. But 18 00:01:35,449 --> 00:01:37,010 Suze: if KT gets better 19 00:01:37,800 --> 00:01:40,699 Suze: then what will happen is she will be back on 20 00:01:40,870 --> 00:01:46,419 Suze: Sunday and Sunday, we will make it Ask KT and 21 00:01:46,430 --> 00:01:51,900 Suze: Suze anything and today will be Suze School for those 22 00:01:51,910 --> 00:01:54,790 Suze: of you who want to ask a question and hopefully 23 00:01:54,800 --> 00:01:59,300 Suze: KT will pick it. That's when we answer the questions 24 00:01:59,309 --> 00:02:02,220 Suze: you write in on, Ask KT and Sze anything 25 00:02:02,629 --> 00:02:06,040 Suze: all you have to do is write to ask Suze 26 00:02:06,050 --> 00:02:09,679 Suze: - Suze podcast at gmail dot com. 27 00:02:10,758 --> 00:02:14,049 Suze: And if KT picks it, I will answer it on 28 00:02:14,059 --> 00:02:19,339 Suze: this podcast. Now, before we begin Suze school 29 00:02:20,119 --> 00:02:24,850 Suze: today, I just want to say my heart, KT's heart 30 00:02:25,149 --> 00:02:28,309 Suze: goes out to everybody in Israel. 31 00:02:29,500 --> 00:02:32,460 Suze: I mean, I can't even imagine 32 00:02:33,149 --> 00:02:36,459 Suze: what the parents are going through, what people are going 33 00:02:36,470 --> 00:02:41,389 Suze: through there. But let's keep our fingers crossed that something 34 00:02:41,399 --> 00:02:45,729 Suze: happens for the good sooner than later. But I personally 35 00:02:45,740 --> 00:02:51,639 Suze: do not like how it's escalating in many ways. So 36 00:02:51,649 --> 00:02:55,869 Suze: we have to watch it also for many, many reasons. 37 00:02:56,210 --> 00:03:00,929 Suze: But I just wanna say that before I began Suze School. 38 00:03:01,589 --> 00:03:05,388 Suze: So since today is Suze School, take out your little 39 00:03:05,399 --> 00:03:06,648 Suze: Suze notebooks. 40 00:03:07,520 --> 00:03:09,880 Suze: I'll give me a second to do that since you 41 00:03:09,889 --> 00:03:13,419 Suze: weren't expecting a Suze School today. Although you should probably 42 00:03:13,429 --> 00:03:16,619 Suze: always listen with a Suze notebook and write down things 43 00:03:16,630 --> 00:03:20,779 Suze: even with Ask KT and Suze Anything. But what makes me 44 00:03:20,788 --> 00:03:23,240 Suze: laugh a little bit here is that I have a 45 00:03:23,250 --> 00:03:26,899 Suze: niece by the name of Alexis Tandy. 46 00:03:27,820 --> 00:03:31,669 Suze: And I know Alexis, you're listening and you're just, I 47 00:03:31,679 --> 00:03:34,729 Suze: can just see your little face right now going oh no. 48 00:03:34,740 --> 00:03:38,490 Suze: What is she going to say? And the other day 49 00:03:38,500 --> 00:03:42,110 Suze: Alexis wrote me and said, Suze, I have an idea 50 00:03:42,119 --> 00:03:47,029 Suze: for you. Why don't you create a little Suze notebook 51 00:03:47,039 --> 00:03:49,789 Suze: and you can have things in it, like definitions and 52 00:03:49,800 --> 00:03:53,229 Suze: everything and sell it to everybody. 53 00:03:54,410 --> 00:03:59,610 Suze: And I said to her, Alexis, Suze Orman doesn't sell tchotchkes, 54 00:04:00,710 --> 00:04:05,139 Suze: which means little things that aren't necessary that you are 55 00:04:05,149 --> 00:04:07,509 Suze: being offered to buy. But really you don't need to 56 00:04:07,520 --> 00:04:11,428 Suze: buy them at all. Suze Orman doesn't sell things like that. 57 00:04:11,910 --> 00:04:13,350 Suze: I never sold 58 00:04:14,070 --> 00:04:17,428 Suze: you are approved or denied t-shirt. We gave them away. 59 00:04:17,519 --> 00:04:21,130 Suze: I never sold a Suze Orman show cap on my 60 00:04:21,450 --> 00:04:25,750 Suze: CNBC show or a mug or anything. I know all 61 00:04:25,760 --> 00:04:29,279 Suze: the shows did that and that's how they make money. 62 00:04:30,170 --> 00:04:33,549 Suze: My job is not to make money off of you. 63 00:04:34,049 --> 00:04:37,589 Suze: My job is to get you to make money off 64 00:04:37,600 --> 00:04:42,140 Suze: of your own money and not to buy things that 65 00:04:42,149 --> 00:04:45,720 Suze: you don't need. There is nothing wrong with you writing 66 00:04:45,730 --> 00:04:48,559 Suze: on the back of scratch paper. I don't care where 67 00:04:48,570 --> 00:04:51,519 Suze: you take your notes and put it all in one place. 68 00:04:51,529 --> 00:04:55,720 Suze: But no, I am not selling you a Suze notebook. 69 00:04:55,730 --> 00:04:57,559 Suze: It's really just that simple. 70 00:04:58,079 --> 00:05:02,299 Suze: But for this particular Suze school, I can tell you 71 00:05:02,309 --> 00:05:05,380 Suze: you're going to need it and the reason that you're 72 00:05:05,390 --> 00:05:08,850 Suze: going to need it is that this Suze School is 73 00:05:08,859 --> 00:05:14,459 Suze: a continuation of last Sunday's podcast where I tried to 74 00:05:14,470 --> 00:05:18,368 Suze: educate all of you on what was happening with pioneer 75 00:05:18,380 --> 00:05:19,820 Suze: natural resources 76 00:05:19,915 --> 00:05:24,084 Suze: or PXD, which was one of the stocks that I've 77 00:05:24,095 --> 00:05:30,214 Suze: been recommending now for approximately three years. And the main 78 00:05:30,225 --> 00:05:34,174 Suze: reason that I recommended it was for its dividend. Same 79 00:05:34,184 --> 00:05:38,774 Suze: thing with Devon and same thing with Fang. Um all 80 00:05:38,785 --> 00:05:43,575 Suze: these other, you know, oil stocks and XLE the ETF. 81 00:05:43,584 --> 00:05:46,575 Suze: But anyway, Fang, by the way, is Diamondback. That's its 82 00:05:46,584 --> 00:05:48,005 Suze: symbol FANG. 83 00:05:48,309 --> 00:05:51,190 Suze: But that's why I did that when the stock prices 84 00:05:51,200 --> 00:05:52,289 Suze: were so low 85 00:05:52,950 --> 00:05:55,250 Suze: and their dividends were so high. 86 00:05:56,119 --> 00:05:58,309 Suze: That was like, how do you lose on that? 87 00:05:59,070 --> 00:06:01,329 Suze: So since that time 88 00:06:02,420 --> 00:06:05,790 Suze: right now, you have a stock here. PXD 89 00:06:06,570 --> 00:06:13,118 Suze: that is being bought out by ExxonMobil on Sunday. We 90 00:06:13,130 --> 00:06:17,029 Suze: did not know the exact details of it. Was it 91 00:06:17,040 --> 00:06:20,070 Suze: going to be an all cash deal? Was it going 92 00:06:20,079 --> 00:06:23,010 Suze: to be cash and shares? Was it going to be 93 00:06:23,019 --> 00:06:26,019 Suze: all shares? How much were they going to give you 94 00:06:26,029 --> 00:06:28,890 Suze: in shares? How much would they give you in cash? 95 00:06:28,899 --> 00:06:31,109 Suze: We did not know any of that. 96 00:06:31,850 --> 00:06:38,869 Suze: But yesterday morning, they officially announced that Exxon is buying 97 00:06:38,880 --> 00:06:45,670 Suze: out PXD at $59.5 billion. And essentially that comes out 98 00:06:45,678 --> 00:06:51,839 Suze: to about $253 a share for PXD. Put a pin 99 00:06:51,850 --> 00:06:53,029 Suze: in that for a second 100 00:06:54,570 --> 00:06:56,109 Suze: on Sunday 101 00:06:57,160 --> 00:07:02,320 Suze: when we were talking about this PXD had closed at 102 00:07:02,329 --> 00:07:05,130 Suze: $237 a share. 103 00:07:06,100 --> 00:07:11,170 Suze: And for many of you, because you bought PXD so 104 00:07:11,179 --> 00:07:15,739 Suze: long ago and you dollar cost averaged into it as 105 00:07:15,750 --> 00:07:17,809 Suze: it went up and then it came back down again 106 00:07:17,820 --> 00:07:24,320 Suze: and everything that was a tremendous profit in that stock, 107 00:07:24,329 --> 00:07:29,200 Suze: especially when you include the dividends that they were paying 108 00:07:29,209 --> 00:07:32,518 Suze: you over the time that you owned it. 109 00:07:33,769 --> 00:07:38,079 Suze: And my advice to you at that time was that 110 00:07:38,089 --> 00:07:40,230 Suze: if it were me, I would probably sell it. 111 00:07:41,420 --> 00:07:44,640 Suze: And the reason that I gave you that advice on 112 00:07:44,649 --> 00:07:48,570 Suze: Sunday is I am an investor. I am not a 113 00:07:48,579 --> 00:07:49,079 Suze: trader 114 00:07:49,730 --> 00:07:53,859 Suze: once I see a really good deal on the table 115 00:07:53,869 --> 00:07:56,609 Suze: that I was not expecting because the truth of the 116 00:07:56,619 --> 00:08:00,410 Suze: matter is I didn't want PXD to be bought out. 117 00:08:00,989 --> 00:08:04,540 Suze: I wanted to keep that stock for a long, long 118 00:08:04,549 --> 00:08:08,329 Suze: time because why, because of the dividend? 119 00:08:09,140 --> 00:08:11,959 Suze: Isn't that why we bought it? Isn't that what I 120 00:08:11,970 --> 00:08:14,929 Suze: would say to you? You're doing it because of the dividend, 121 00:08:16,179 --> 00:08:21,480 Suze: however, all right, it got bought out now 122 00:08:22,209 --> 00:08:25,950 Suze: back to Sunday. So when I see something like that 123 00:08:25,959 --> 00:08:30,899 Suze: happen and I see a stock jump from $215 a 124 00:08:30,910 --> 00:08:34,909 Suze: share to 237 on the news, I'm like, I'm out 125 00:08:34,919 --> 00:08:36,390 Suze: of here, I'm taking it. 126 00:08:37,099 --> 00:08:42,039 Suze: It is how it is. So that's how I think 127 00:08:42,049 --> 00:08:43,039 Suze: about money. 128 00:08:43,700 --> 00:08:47,530 Suze: I'm not a trader. I'm not a gambler. I am 129 00:08:47,539 --> 00:08:53,840 Suze: an investor and I have never lost money taking a profit. 130 00:08:54,539 --> 00:09:00,988 Suze: I've also seen too many of these deals absolutely fall 131 00:09:01,020 --> 00:09:05,579 Suze: through where all of a sudden something goes wrong. The 132 00:09:05,590 --> 00:09:08,640 Suze: people striking the deal, they decide, wait a minute, I'm 133 00:09:08,650 --> 00:09:11,919 Suze: not gonna do this and then the stock plummets and 134 00:09:11,929 --> 00:09:14,320 Suze: who knows how long it stays down there. 135 00:09:15,409 --> 00:09:19,619 Suze: But given that it was a solid deal and I 136 00:09:19,630 --> 00:09:22,559 Suze: kind of had a feeling that it would go through 137 00:09:22,580 --> 00:09:26,020 Suze: but not knowing what was the structure of the deal 138 00:09:26,030 --> 00:09:26,979 Suze: going to be? 139 00:09:27,640 --> 00:09:31,020 Suze: Was it going to be all cash? Was it going 140 00:09:31,030 --> 00:09:35,218 Suze: to be stock? Was it going to be stock and cash? 141 00:09:35,510 --> 00:09:37,179 Suze: I decided, you know what, 142 00:09:37,960 --> 00:09:41,320 Suze: there's other places right now that I think one can 143 00:09:41,330 --> 00:09:45,939 Suze: invest money do equally as well and just move on 144 00:09:46,609 --> 00:09:48,348 Suze: come Monday morning, 145 00:09:49,520 --> 00:09:52,460 Suze: many of you sold and you wrote me and you 146 00:09:52,469 --> 00:09:55,690 Suze: said you got $241 a share, 147 00:09:56,479 --> 00:09:58,270 Suze: many of you wrote me 148 00:09:58,929 --> 00:10:02,359 Suze: and you said I'm just gonna hold on and I'm 149 00:10:02,369 --> 00:10:07,989 Suze: going to see what happens. You now were playing the, 150 00:10:08,000 --> 00:10:09,989 Suze: if only game 151 00:10:10,760 --> 00:10:14,500 Suze: and the, if only game is one of the most 152 00:10:14,510 --> 00:10:20,380 Suze: dangerous games you can play when it comes to investing 153 00:10:20,840 --> 00:10:22,859 Suze: and I'll get back to that in a second. 154 00:10:23,559 --> 00:10:24,380 Suze: You said, 155 00:10:25,119 --> 00:10:29,739 Suze: I'm gonna wait and hold and see what happens. Then 156 00:10:29,750 --> 00:10:34,559 Suze: what happened was after the stock traded Monday morning at 157 00:10:34,799 --> 00:10:38,140 Suze: 241 it went to 240 158 00:10:39,090 --> 00:10:46,880 Suze: 239, 238, 237, which is what it closed at on Friday. 159 00:10:48,179 --> 00:10:51,710 Suze: And as the stock then went down to 236 and 160 00:10:51,719 --> 00:10:55,869 Suze: it started to go down, the people who decided not 161 00:10:55,880 --> 00:10:58,819 Suze: all of you, but some of you decided, oh, it's 162 00:10:58,830 --> 00:11:03,289 Suze: going down. Now, I missed it. I could have gotten 241. 163 00:11:03,950 --> 00:11:08,079 Suze: If only I had sold it at $241 a share. 164 00:11:08,520 --> 00:11:12,640 Suze: But now it's at 236 I'm just gonna sell, I 165 00:11:12,650 --> 00:11:16,219 Suze: can't take it anymore. And so you sold many of 166 00:11:16,229 --> 00:11:17,359 Suze: you wrote me and said 167 00:11:17,770 --> 00:11:20,880 Suze: you sold at 236. And then all of a sudden 168 00:11:21,250 --> 00:11:24,299 Suze: the stock started to go back up again 169 00:11:25,409 --> 00:11:30,909 Suze: and it was, oh, if only I had waited, if 170 00:11:30,919 --> 00:11:34,190 Suze: only I had been more patient, I could have gotten 171 00:11:34,280 --> 00:11:36,669 Suze: $241 again, 172 00:11:37,520 --> 00:11:39,619 Suze: then the announcement came out 173 00:11:40,369 --> 00:11:44,789 Suze: and then the emails came in. If only I had waited, 174 00:11:44,799 --> 00:11:49,988 Suze: I could get $253 a share. If only I had waited, 175 00:11:50,440 --> 00:11:52,988 Suze: then there were those who wrote me and said, 176 00:11:53,719 --> 00:11:57,869 Suze: I'm going to wait and I'm just gonna get 253 177 00:11:57,880 --> 00:11:59,780 Suze: $260 a share 178 00:12:00,559 --> 00:12:06,820 Suze: again last night. By the way, PXD closed at 241 again. 179 00:12:07,119 --> 00:12:09,848 Suze: So it seems like it's trading right in that area 180 00:12:09,859 --> 00:12:14,609 Suze: during the day. Yesterday, it went down 237, 236 and 181 00:12:14,619 --> 00:12:15,468 Suze: then back up to 241. 182 00:12:17,010 --> 00:12:20,549 Suze: So I don't know where the stock is going to go, 183 00:12:20,710 --> 00:12:23,700 Suze: but you just need to see that it is trading 184 00:12:23,710 --> 00:12:25,429 Suze: around this area. 185 00:12:26,849 --> 00:12:30,979 Suze: Well, here's what I want to tell you. Number one, 186 00:12:31,940 --> 00:12:36,250 Suze: you are not to be if only investors because if 187 00:12:36,260 --> 00:12:37,669 Suze: you do that, 188 00:12:38,460 --> 00:12:43,280 Suze: there will come a time where maybe you should have 189 00:12:43,289 --> 00:12:47,679 Suze: waited because maybe you would have gotten $253 a share. 190 00:12:48,510 --> 00:12:52,059 Suze: And even though you made money at 237 or 241 191 00:12:53,460 --> 00:12:55,968 Suze: and you made good money on it, 192 00:12:57,000 --> 00:12:58,710 Suze: especially again with the dividend 193 00:13:00,080 --> 00:13:03,400 Suze: and in your head, you're saying, if only I had waited, 194 00:13:03,409 --> 00:13:06,988 Suze: I would have gotten 253. The next time, something like 195 00:13:07,000 --> 00:13:11,789 Suze: this happens, chances are, or even if you see a 196 00:13:11,799 --> 00:13:15,429 Suze: stock that you own going up and maybe there's news 197 00:13:15,440 --> 00:13:17,849 Suze: on it, you're not gonna sell it even though you 198 00:13:17,859 --> 00:13:21,010 Suze: have a profit in it because you're gonna remember back 199 00:13:21,020 --> 00:13:24,059 Suze: to what happened in this particular scenario 200 00:13:25,090 --> 00:13:27,190 Suze: and you are going to wait, 201 00:13:27,820 --> 00:13:33,598 Suze: but probably in that circumstance, it will go down and 202 00:13:33,609 --> 00:13:35,159 Suze: down and down. 203 00:13:36,510 --> 00:13:40,210 Suze: And so you have to base your decisions when it 204 00:13:40,219 --> 00:13:46,250 Suze: comes to buying and selling stocks on. Are you happy 205 00:13:46,260 --> 00:13:50,250 Suze: with the gain that you got? Was it an unexpected 206 00:13:50,260 --> 00:13:55,929 Suze: gain you have to make decisions on, are you sad 207 00:13:55,940 --> 00:13:57,369 Suze: that you lost some money? 208 00:13:58,059 --> 00:14:00,619 Suze: But you're not gonna wish and hope that it just 209 00:14:00,630 --> 00:14:02,080 Suze: goes back up again 210 00:14:02,900 --> 00:14:06,000 Suze: because some people have written to me and said things 211 00:14:06,010 --> 00:14:11,599 Suze: about Devon that if Devon, which is, uh, another energy 212 00:14:11,609 --> 00:14:16,919 Suze: stock that I had all of you buy for the dividend. Well, 213 00:14:17,109 --> 00:14:22,489 Suze: if only Devon wasn't in my retirement account, I would 214 00:14:22,500 --> 00:14:23,280 Suze: have sold it. 215 00:14:24,000 --> 00:14:27,059 Suze: I'm so sick and tired of waiting for that stock 216 00:14:27,070 --> 00:14:31,239 Suze: to go up. But the excuse then was, if only 217 00:14:31,250 --> 00:14:36,400 Suze: it wasn't in my retirement account, what is wrong with you? 218 00:14:36,580 --> 00:14:39,679 Suze: Are you crazy if you don't want to own a 219 00:14:39,690 --> 00:14:43,340 Suze: stock because it's going down and you don't have faith 220 00:14:43,349 --> 00:14:47,739 Suze: in that stock anymore? Sell it. Why would you keep 221 00:14:47,750 --> 00:14:51,210 Suze: a stock simply because it's in your retirement account 222 00:14:51,669 --> 00:14:53,590 Suze: and you don't want to sell it because you can't 223 00:14:53,599 --> 00:14:56,450 Suze: take a loss off your taxes as if you had 224 00:14:56,460 --> 00:15:00,909 Suze: owned it outside of a retirement account. What kind of 225 00:15:00,919 --> 00:15:02,549 Suze: thinking is that? 226 00:15:03,320 --> 00:15:04,719 Suze: So one way 227 00:15:05,479 --> 00:15:09,340 Suze: that you can kind of decide, should you be buying 228 00:15:09,349 --> 00:15:11,419 Suze: or selling a stock? 229 00:15:12,369 --> 00:15:13,830 Suze: Is this 230 00:15:14,669 --> 00:15:18,890 Suze: if you didn't own that stock and you had the 231 00:15:18,900 --> 00:15:22,669 Suze: amount of money that you have invested in that stock, 232 00:15:22,719 --> 00:15:27,289 Suze: but you had it in cash, would you buy that 233 00:15:27,299 --> 00:15:30,090 Suze: stock right here? And right now? 234 00:15:30,989 --> 00:15:33,429 Suze: And if the answer to that question is no, I 235 00:15:33,440 --> 00:15:37,039 Suze: would not. Now, what are you keeping it for? 236 00:15:38,210 --> 00:15:41,150 Suze: If you wouldn't buy more of it? You need to 237 00:15:41,159 --> 00:15:44,580 Suze: sell it. If the answer to that question is, yes, 238 00:15:44,590 --> 00:15:48,750 Suze: I absolutely would buy more. You keep it, if the 239 00:15:48,760 --> 00:15:54,030 Suze: answer to that question is, I don't know, sell half, 240 00:15:54,869 --> 00:15:59,750 Suze: you don't have to be an all or nothing investor. 241 00:15:59,760 --> 00:16:01,340 Suze: Do you hear me? 242 00:16:02,700 --> 00:16:07,869 Suze: So you have to really stay calm, keep your head 243 00:16:07,880 --> 00:16:11,159 Suze: and not try to get every single dollar out of 244 00:16:11,169 --> 00:16:11,979 Suze: a stock. 245 00:16:13,090 --> 00:16:17,580 Suze: Obviously, every time you make a decision you have, when 246 00:16:17,590 --> 00:16:22,109 Suze: it comes to selling a stock, you have to decide 247 00:16:23,119 --> 00:16:28,179 Suze: what will you get after taxes. Now, the example that 248 00:16:28,190 --> 00:16:31,409 Suze: I gave you Sunday was if you owned PXD in 249 00:16:31,419 --> 00:16:35,590 Suze: a Roth IRA, because that's where many of you own 250 00:16:35,599 --> 00:16:36,429 Suze: the stock. 251 00:16:37,640 --> 00:16:41,280 Suze: When you own stock in a Roth IRA, you need 252 00:16:41,289 --> 00:16:44,179 Suze: to write this down because many of you have gotten 253 00:16:44,190 --> 00:16:44,979 Suze: this wrong. 254 00:16:46,039 --> 00:16:49,719 Suze: When you own stock in a Roth IRA, 255 00:16:50,580 --> 00:16:55,340 Suze: there is no capital gain and there is no loss 256 00:16:55,369 --> 00:17:00,289 Suze: because what's in there is essentially tax free to you 257 00:17:00,299 --> 00:17:04,000 Suze: when you go to take it out later on in life. 258 00:17:04,680 --> 00:17:09,890 Suze: So even if you sell a stock in your Roth IRA, 259 00:17:10,119 --> 00:17:12,010 Suze: as long as you've left the money in there, you 260 00:17:12,020 --> 00:17:13,300 Suze: haven't withdrawn it, 261 00:17:14,030 --> 00:17:16,849 Suze: but you've left it in there. Let's say 262 00:17:17,859 --> 00:17:21,229 Suze: there's no capital gain, there's no ordinary income tax. There 263 00:17:21,239 --> 00:17:26,040 Suze: is no loss. So a lot of you have gotten 264 00:17:26,050 --> 00:17:27,919 Suze: confused on that. 265 00:17:28,670 --> 00:17:32,930 Suze: So taxes do not come into the equation of selling 266 00:17:32,939 --> 00:17:37,449 Suze: a stock when you own it within a Roth IRA 267 00:17:37,469 --> 00:17:42,689 Suze: or truthfully a traditional IRA or a 401k for that 268 00:17:42,699 --> 00:17:45,629 Suze: matter if you happen to sell a mutual fund or 269 00:17:45,640 --> 00:17:50,250 Suze: whatever you own in your 401k plans or 403b or 270 00:17:50,260 --> 00:17:54,729 Suze: TSPs out side of a retirement account, 271 00:17:55,520 --> 00:18:00,339 Suze: if you own a stock for less than one year 272 00:18:01,579 --> 00:18:04,930 Suze: and you go to sell it and you have a gain, 273 00:18:05,650 --> 00:18:10,050 Suze: it is taxed as ordinary income to you. 274 00:18:10,760 --> 00:18:15,179 Suze: Once you have owned a stock for over one year 275 00:18:15,189 --> 00:18:18,810 Suze: and you go to sell it, it's taxed at the 276 00:18:18,819 --> 00:18:23,500 Suze: capital gain rate, which is a whole lot less than 277 00:18:23,510 --> 00:18:28,369 Suze: ordinary income in most cases. Ok. 278 00:18:29,280 --> 00:18:34,579 Suze: Also, if you have a loss outside of a retirement account, 279 00:18:35,869 --> 00:18:40,629 Suze: you can sell a stock that you have a loss 280 00:18:40,640 --> 00:18:41,030 Suze: in 281 00:18:42,079 --> 00:18:45,000 Suze: at the same time or any time during the year. 282 00:18:45,500 --> 00:18:48,719 Suze: A stock that you sold where you had a gain 283 00:18:48,729 --> 00:18:49,439 Suze: in it. 284 00:18:50,250 --> 00:18:52,810 Suze: And if you sell the stock that you had a 285 00:18:52,819 --> 00:18:57,379 Suze: loss in any time within the year that you took 286 00:18:57,390 --> 00:19:00,420 Suze: a gain where you sold the stock that you had 287 00:19:00,430 --> 00:19:01,550 Suze: a gain in, 288 00:19:02,319 --> 00:19:07,050 Suze: you can offset some of the gain with all of 289 00:19:07,060 --> 00:19:12,079 Suze: the loss or maybe you could offset the entire gain 290 00:19:12,089 --> 00:19:17,300 Suze: with the loss that you took. All right. The only 291 00:19:17,310 --> 00:19:21,089 Suze: thing you have to know is if you do that 292 00:19:21,709 --> 00:19:26,800 Suze: and you sell a stock at a loss to offset 293 00:19:26,810 --> 00:19:30,890 Suze: a gain outside of a retirement account, 294 00:19:31,880 --> 00:19:37,640 Suze: you cannot buy that stock back for 30 days. If 295 00:19:37,650 --> 00:19:43,160 Suze: you do the offsetting of taxes will be disqualified, that 296 00:19:43,170 --> 00:19:46,339 Suze: means you can't buy it back even in your ira 297 00:19:46,599 --> 00:19:51,560 Suze: in a different account, you cannot buy it back. So 298 00:19:51,569 --> 00:19:54,560 Suze: many of you are thinking that if you have a 299 00:19:54,569 --> 00:19:56,920 Suze: stock that you have a loss in, outside of a 300 00:19:56,930 --> 00:19:58,060 Suze: retirement account 301 00:19:58,530 --> 00:20:02,430 Suze: and you sell it, you could then offset the gain 302 00:20:03,290 --> 00:20:06,550 Suze: on PXD. That's in your retirement account. 303 00:20:07,439 --> 00:20:10,579 Suze: No, it doesn't work that way because you don't have 304 00:20:10,589 --> 00:20:13,500 Suze: to pay taxes on the gain 305 00:20:14,430 --> 00:20:18,929 Suze: in the retirement account. Got that everybody. So, so many 306 00:20:18,939 --> 00:20:23,109 Suze: of you are asking that question, that's why I went 307 00:20:23,119 --> 00:20:24,430 Suze: into it again. 308 00:20:25,060 --> 00:20:29,160 Suze: You should mark this podcast so you can go back 309 00:20:29,170 --> 00:20:32,560 Suze: and listen to it over and over again. So you 310 00:20:32,569 --> 00:20:36,550 Suze: can understand exactly what I was talking about. Let's go 311 00:20:36,560 --> 00:20:39,280 Suze: back to PXD for a second here. 312 00:20:40,599 --> 00:20:44,619 Suze: So here we are. And the deal right now is 313 00:20:44,630 --> 00:20:45,619 Suze: pretty official 314 00:20:46,550 --> 00:20:55,589 Suze: that ExxonMobil will be buying pioneer pxd for $253 a share. 315 00:20:55,630 --> 00:20:59,250 Suze: Here's what you need to understand. This deal is not 316 00:20:59,260 --> 00:21:06,119 Suze: going to happen until sometime in 2024. Number one. So 317 00:21:06,130 --> 00:21:08,430 Suze: it's not gonna happen overnight. 318 00:21:09,449 --> 00:21:15,319 Suze: Number two, this is a deal where they are going 319 00:21:15,329 --> 00:21:19,459 Suze: to buy it out in shares of ExxonMobil. This is 320 00:21:19,469 --> 00:21:24,000 Suze: not a cash deal. Now, I would have thought with 321 00:21:24,010 --> 00:21:27,810 Suze: all the cash that ExxonMobil has on hand, it could 322 00:21:27,819 --> 00:21:30,708 Suze: have been an all cash deal, which means they would 323 00:21:30,719 --> 00:21:34,300 Suze: have given you $253 a share if that was the 324 00:21:34,310 --> 00:21:35,410 Suze: final price. 325 00:21:36,219 --> 00:21:42,900 Suze: But it's not, this is an all share deal, which 326 00:21:42,910 --> 00:21:49,599 Suze: means for every share of pxd that you have. 327 00:21:51,079 --> 00:21:52,698 Suze: If you keep it, 328 00:21:53,489 --> 00:21:57,869 Suze: when this deal happens, if these figures remain the same, 329 00:21:58,709 --> 00:22:01,939 Suze: you are going to end up with write this down 330 00:22:01,969 --> 00:22:09,129 Suze: 2.3234 shares of ExxonMobil. 331 00:22:11,560 --> 00:22:16,030 Suze: That is what you are going to end up with. Now, 332 00:22:16,040 --> 00:22:20,689 Suze: the good news about that is because let's just say 333 00:22:20,699 --> 00:22:24,419 Suze: for whatever reason, you have decided that you want to 334 00:22:24,430 --> 00:22:29,989 Suze: keep PXD and you're fine owning ExxonMobil, it's a good stock, 335 00:22:30,000 --> 00:22:32,579 Suze: you want to own it for whatever reason and you 336 00:22:32,589 --> 00:22:33,790 Suze: just keep it. 337 00:22:34,569 --> 00:22:39,189 Suze: What you have to be aware of is the difference 338 00:22:39,310 --> 00:22:41,949 Suze: between if it was an all cash deal 339 00:22:42,770 --> 00:22:46,790 Suze: and if it's an all share deal, which it is, 340 00:22:47,380 --> 00:22:50,030 Suze: if it was an all cash deal 341 00:22:50,750 --> 00:22:56,290 Suze: and you owned PXD outside of a retirement account, this 342 00:22:56,300 --> 00:22:59,839 Suze: does not apply to you if you have PXD in 343 00:22:59,849 --> 00:23:04,170 Suze: a retirement account. But if you own PXD outside of 344 00:23:04,180 --> 00:23:05,609 Suze: your retirement account, 345 00:23:06,650 --> 00:23:10,030 Suze: and if this were an all cash deal, 346 00:23:10,750 --> 00:23:13,599 Suze: you would owe taxes immediately. 347 00:23:14,339 --> 00:23:18,698 Suze: Um, the difference between whatever your cost basis happens to 348 00:23:18,709 --> 00:23:24,319 Suze: be in PXD and the amount of money that ExxonMobil 349 00:23:24,729 --> 00:23:29,619 Suze: pays you in the end for your stock right away, 350 00:23:29,770 --> 00:23:32,560 Suze: you would owe taxes no way around it. 351 00:23:33,339 --> 00:23:37,800 Suze: However, because this is a share deal, 352 00:23:39,180 --> 00:23:46,550 Suze: you will not, hopefully will owe any taxes whatsoever at 353 00:23:46,560 --> 00:23:47,569 Suze: the time 354 00:23:48,439 --> 00:23:55,619 Suze: that your shares convert to ExxonMobil. All right. Listen, most 355 00:23:55,630 --> 00:24:00,060 Suze: stock based mergers, which is what this is, are not 356 00:24:00,069 --> 00:24:06,170 Suze: taxable events to the shareholders of the acquired company. 357 00:24:06,829 --> 00:24:08,650 Suze: So if you own PXD 358 00:24:09,699 --> 00:24:15,510 Suze: in most stock based mergers, they're not taxable events to you. 359 00:24:16,280 --> 00:24:21,339 Suze: However, this is what has to happen to make sure 360 00:24:21,349 --> 00:24:28,938 Suze: that is true. In this case, ExxonMobil must first secure 361 00:24:29,500 --> 00:24:35,329 Suze: that the tax free exchange with the government is going 362 00:24:35,339 --> 00:24:40,140 Suze: to be allowed. Now, with all the research I've done, 363 00:24:41,410 --> 00:24:46,060 Suze: I'm not sure this has been cleared yet. So I 364 00:24:46,069 --> 00:24:48,910 Suze: cannot tell you at this moment. But as soon as 365 00:24:48,920 --> 00:24:52,790 Suze: I know, I will that for those of you outside 366 00:24:52,800 --> 00:24:54,349 Suze: of a retirement account, 367 00:24:55,099 --> 00:24:57,280 Suze: if you decide to stay in it, 368 00:24:58,209 --> 00:25:02,670 Suze: that when it converts to ExxonMobil, I don't know if 369 00:25:02,680 --> 00:25:06,149 Suze: it's going to be taxable to you or not, chances 370 00:25:06,160 --> 00:25:11,849 Suze: are it will not be. But again, first, ExxonMobil must 371 00:25:11,859 --> 00:25:16,989 Suze: secure that tax free exchange with the government. 372 00:25:17,800 --> 00:25:20,510 Suze: You just need to know that. 373 00:25:21,430 --> 00:25:26,109 Suze: All right. So you understand that now. So how many 374 00:25:26,119 --> 00:25:29,959 Suze: shares are you going to end up with? Number one? 375 00:25:29,969 --> 00:25:33,609 Suze: How do you figure that out? And number two, what 376 00:25:33,619 --> 00:25:40,160 Suze: is your cost basis in ExxonMobil? If you decide 377 00:25:40,869 --> 00:25:44,829 Suze: to keep PXD and convert it? And you need to 378 00:25:44,839 --> 00:25:49,300 Suze: really know this for people who are outside of a 379 00:25:49,310 --> 00:25:50,689 Suze: retirement account. 380 00:25:51,380 --> 00:25:54,139 Suze: So let's go back to my example that I did 381 00:25:54,150 --> 00:26:00,800 Suze: on Sunday, which is you own 100 shares of PXD 382 00:26:02,280 --> 00:26:07,339 Suze: and your cost basis on that is $200 a share 383 00:26:07,349 --> 00:26:10,380 Suze: or $20,000. 384 00:26:11,150 --> 00:26:15,199 Suze: So first to figure out how many shares you are 385 00:26:15,209 --> 00:26:19,530 Suze: going to get what you would do, you would first 386 00:26:19,540 --> 00:26:24,069 Suze: multiply the number of shares that you have. Write it down. 387 00:26:24,079 --> 00:26:29,250 Suze: In this case, you have 100 shares of PXD. 388 00:26:30,369 --> 00:26:39,660 Suze: You would times 100 by 2.3234. So what that means 389 00:26:39,670 --> 00:26:44,629 Suze: in this example, if you stay in and it converts 390 00:26:45,270 --> 00:26:48,760 Suze: at that rate to ExxonMobil, you are going to end 391 00:26:48,770 --> 00:26:57,589 Suze: up with 232.34 shares of ExxonMobil. Just that simple. 392 00:26:58,270 --> 00:27:02,060 Suze: But now you need to know if it's outside of 393 00:27:02,069 --> 00:27:08,150 Suze: a retirement account. What is your cost basis in ExxonMobil? 394 00:27:08,449 --> 00:27:11,569 Suze: What is it that you purchased it for? And really 395 00:27:11,579 --> 00:27:15,130 Suze: you want to know this no matter what. So you know, 396 00:27:15,140 --> 00:27:18,699 Suze: if you're making money, if you're losing money where you are, 397 00:27:19,439 --> 00:27:23,859 Suze: so the way that you do that is you take 398 00:27:23,869 --> 00:27:29,430 Suze: the amount of money that you have invested in PXD 399 00:27:29,439 --> 00:27:34,060 Suze: at your cost basis. So you know that your cost 400 00:27:34,069 --> 00:27:34,899 Suze: basis 401 00:27:35,910 --> 00:27:42,280 Suze: if you have 100 shares and your cost basis is 402 00:27:42,290 --> 00:27:47,969 Suze: $200 a share, you know that you have $20,000 as 403 00:27:47,979 --> 00:27:52,189 Suze: your cost basis to figure out what your cost basis 404 00:27:52,199 --> 00:27:57,310 Suze: is going to be for ExxonMobil, you're going to take 405 00:27:57,319 --> 00:28:00,208 Suze: that $20,000 406 00:28:01,390 --> 00:28:04,869 Suze: and you're going to divide it by the number of 407 00:28:04,880 --> 00:28:09,310 Suze: shares that you are going to have in ExxonMobil when 408 00:28:09,319 --> 00:28:17,389 Suze: it converts, which in this example is 232.34 shares. And 409 00:28:17,400 --> 00:28:22,930 Suze: if you divide 20,000 by 2 32.34 410 00:28:23,459 --> 00:28:26,359 Suze: you will find out that your new cost basis in 411 00:28:26,369 --> 00:28:32,880 Suze: ExxonMobil is $86.08 a share. 412 00:28:33,959 --> 00:28:37,880 Suze: That is how you do it and then you would 413 00:28:37,890 --> 00:28:42,380 Suze: know what your gain is. So it's just that simple. 414 00:28:42,829 --> 00:28:44,729 Suze: So you have now learned 415 00:28:45,410 --> 00:28:48,770 Suze: how to know how many shares you're going to have 416 00:28:48,780 --> 00:28:52,969 Suze: in ExxonMobil. If you stick with it, you now know 417 00:28:52,979 --> 00:28:58,469 Suze: what your cost base will be in ExxonMobil if these 418 00:28:58,479 --> 00:29:00,790 Suze: numbers still hold 419 00:29:02,060 --> 00:29:05,469 Suze: and now you just have to decide, do you or 420 00:29:05,479 --> 00:29:09,500 Suze: do you not want to stick it out? I cannot 421 00:29:09,510 --> 00:29:13,400 Suze: make that decision for you. I've said before, I do 422 00:29:13,410 --> 00:29:17,849 Suze: not know enough about your situation, your tax bracket, what 423 00:29:17,859 --> 00:29:20,680 Suze: you're in anything like that. 424 00:29:21,369 --> 00:29:26,800 Suze: So just something for you to think about for those 425 00:29:26,810 --> 00:29:29,760 Suze: of you. I do just want to say this who 426 00:29:29,770 --> 00:29:33,829 Suze: have PXD and you have it at a lower cost, 427 00:29:33,839 --> 00:29:36,650 Suze: but you have not owned it for at least a 428 00:29:36,660 --> 00:29:41,619 Suze: year and you are in a high income tax bracket. 429 00:29:42,040 --> 00:29:43,989 Suze: And if it is true 430 00:29:44,729 --> 00:29:48,290 Suze: that if you were to hold it and they issue 431 00:29:48,300 --> 00:29:51,670 Suze: the shares, it will be a nontaxable event for you 432 00:29:52,589 --> 00:29:57,670 Suze: and your holding period. Will be with ExxonMobil when your 433 00:29:57,680 --> 00:30:01,170 Suze: holding period started with PXD, 434 00:30:02,219 --> 00:30:05,810 Suze: depending on how much you would lose in ordinary income 435 00:30:05,819 --> 00:30:09,319 Suze: taxes for some of you. And you need to talk 436 00:30:09,329 --> 00:30:13,619 Suze: to a CPA about this. You may just want to say, oh, 437 00:30:13,630 --> 00:30:16,699 Suze: maybe it's worth it for me to just let it 438 00:30:16,709 --> 00:30:18,640 Suze: convert sometime next year. 439 00:30:19,449 --> 00:30:22,030 Suze: And if I decide to sell it at that point, 440 00:30:22,040 --> 00:30:25,560 Suze: then I'll only have to have capital gains tax if 441 00:30:25,569 --> 00:30:29,150 Suze: in fact, I owned it for over a year. But 442 00:30:29,160 --> 00:30:34,630 Suze: this is something that you need to discuss with your CPA. 443 00:30:34,780 --> 00:30:37,469 Suze: How much are you? Absolutely gonna lose if you sell 444 00:30:37,479 --> 00:30:41,290 Suze: it right now to ordinary income taxes? And how does 445 00:30:41,300 --> 00:30:45,349 Suze: that offset it if you hold it in ExxonMobil 446 00:30:45,989 --> 00:30:49,180 Suze: and then your holding period becomes more than a year? 447 00:30:49,349 --> 00:30:52,689 Suze: I hope that made sense to you. So I have 448 00:30:52,699 --> 00:30:54,488 Suze: now educated all of you 449 00:30:55,290 --> 00:30:59,619 Suze: and you're gonna have to decide what you are going 450 00:30:59,630 --> 00:31:04,369 Suze: to do. But I think you have some incredible Suze 451 00:31:04,380 --> 00:31:08,510 Suze: School information here to make sure that you do the 452 00:31:08,520 --> 00:31:13,619 Suze: right thing for yourself. There's really only one thing that 453 00:31:13,630 --> 00:31:17,030 Suze: I want you to remember to do every single day 454 00:31:17,640 --> 00:31:24,030 Suze: and that is to say out loud today, wherever I go, 455 00:31:24,599 --> 00:31:31,000 Suze: I will create a more, loving, peaceful and joyful world. 456 00:31:31,380 --> 00:31:32,739 Suze: And if you do that, 457 00:31:33,540 --> 00:31:38,890 Suze: I promise you you will be unstoppable.