1 00:00:28,870 --> 00:00:33,270 Suze: February 6, 2025. Welcome everybody to the Women and Money 2 00:00:33,270 --> 00:00:37,590 Suze: podcast as well as everybody smart enough to listen. Guess 3 00:00:37,590 --> 00:00:40,259 Suze: who's in the house this morning? 4 00:00:40,979 --> 00:00:41,000 KT: KT! 5 00:00:42,880 --> 00:00:44,200 Suze: Why are you saying it like that? 6 00:00:44,200 --> 00:00:45,639 KT: Because why wouldn't I be? 7 00:00:46,290 --> 00:00:47,189 Suze: I, I don't know actually. 8 00:00:47,189 --> 00:00:48,630 KT: It's Thursday. 9 00:00:49,180 --> 00:00:50,360 Suze: Well, sometimes it was, 10 00:00:50,680 --> 00:00:54,240 KT: no, no, no, no, no. KT and Suze are always Thursday. 11 00:00:54,279 --> 00:00:57,919 KT: Occasionally I join you for Suze school. 12 00:00:58,279 --> 00:00:59,479 Suze: However, Ms. Travis, 13 00:00:59,669 --> 00:01:00,950 KT: You're gonna change it up? 14 00:01:01,279 --> 00:01:02,189 Suze: You asked. 15 00:01:02,900 --> 00:01:04,929 Suze: And people answered on the email... 16 00:01:04,930 --> 00:01:05,849 KT: They want me all the time. 17 00:01:05,910 --> 00:01:06,910 Suze: They want you all the time. 18 00:01:07,050 --> 00:01:10,039 KT: OK, you got me you got me all the time. 19 00:01:10,120 --> 00:01:14,930 KT: I'll do it Sunday, Thursday, and I won't charge overtime. 20 00:01:15,959 --> 00:01:18,750 Suze: Oh well it's a deal. I'll take it. All right, sweetheart. 21 00:01:18,889 --> 00:01:21,139 KT: Suze, it's almost Valentine's Day. 22 00:01:21,709 --> 00:01:22,389 Suze: What are we gonna do? 23 00:01:22,510 --> 00:01:24,309 KT: I don't know. I was gonna ask you, do you 24 00:01:24,309 --> 00:01:26,059 KT: have anything special in mind? 25 00:01:26,150 --> 00:01:30,349 Suze: Well, we're gonna be in Florida because if any of 26 00:01:30,349 --> 00:01:33,470 Suze: you care, maybe you want to come out, we're going 27 00:01:33,470 --> 00:01:35,349 Suze: to see Kathy Griffin. 28 00:01:35,919 --> 00:01:38,319 Suze: On February 15, 29 00:01:38,440 --> 00:01:39,039 KT: Miami. 30 00:01:39,190 --> 00:01:41,879 Suze: And I think it's at the Jackie Gleason Theater, and 31 00:01:41,879 --> 00:01:45,160 Suze: as you know, Kathy is a very good friend of ours, 32 00:01:45,279 --> 00:01:47,867 KT: An old old friend 33 00:01:47,867 --> 00:01:51,800 Suze: And she said, You better be there. So KT and 34 00:01:51,800 --> 00:01:54,360 Suze: I will be there. Are you going to be there too? 35 00:01:54,480 --> 00:01:56,949 Suze: If so, you best say hi to us, all right, KT. 36 00:01:57,199 --> 00:02:01,759 KT: OK, so here we go. My first question is about... 37 00:02:01,879 --> 00:02:05,669 Suze: Wait, we didn't tell anybody what this really what happens today. 38 00:02:06,540 --> 00:02:07,819 Suze: She's looking like what? 39 00:02:08,550 --> 00:02:09,279 KT: What happens today? 40 00:02:09,279 --> 00:02:11,100 Suze: This is where you write in. 41 00:02:11,270 --> 00:02:13,820 KT: Oh, you write in, but don't they know that by now? 42 00:02:13,990 --> 00:02:17,470 KT: Do all of you listeners, OK, so the new listeners, 43 00:02:17,508 --> 00:02:19,169 KT: here you go. Ready, go, Suze. 44 00:02:19,350 --> 00:02:22,750 Suze: So if you have a question and you want KT 45 00:02:22,750 --> 00:02:24,229 Suze: to possibly choose it, so 46 00:02:24,339 --> 00:02:28,570 Suze: that I can answer it on this podcast. Just write 47 00:02:28,570 --> 00:02:34,410 Suze: into Ask Suze podcast. That's S U Z E podcast 48 00:02:34,410 --> 00:02:37,080 Suze: at gmail.com. All right. 49 00:02:37,288 --> 00:02:39,529 KT: OK, I picked this one because this one is a 50 00:02:39,529 --> 00:02:40,198 KT: little bit. 51 00:02:40,860 --> 00:02:44,179 KT: They, they don't agree with you, which is very rare. 52 00:02:44,300 --> 00:02:46,289 KT: I'm not gonna mention the name, 53 00:02:46,660 --> 00:02:48,410 Suze: Why? Because I'm gonna yell at them. 54 00:02:48,940 --> 00:02:51,970 KT: No, I was asked, and, and it's, uh, I don't... 55 00:02:51,979 --> 00:02:52,609 Suze: So there's somebody... 56 00:02:52,699 --> 00:02:53,600 KT: It's a woman, and 57 00:02:53,600 --> 00:02:54,779 Suze: she said, please don't... 58 00:02:54,779 --> 00:02:58,339 Suze: Wait, stop. She disagrees with me, and yet she's embarrassed 59 00:02:58,339 --> 00:02:59,169 Suze: to use her name. 60 00:02:59,860 --> 00:03:02,619 KT: Yes, because she's embarrassed probably to disagree with the great 61 00:03:02,619 --> 00:03:05,619 KT: Suze Orman, but here you go, Suze and 62 00:03:05,619 --> 00:03:06,258 Suze: Just use her name. 63 00:03:06,404 --> 00:03:07,875 Suze: Come on KT, use her name. 64 00:03:07,994 --> 00:03:08,195 KT: I'm 65 00:03:08,195 --> 00:03:11,945 KT: being respectful, but I will tell everyone she's from Staten Island. 66 00:03:12,475 --> 00:03:13,234 Suze: All right, go on. 67 00:03:13,514 --> 00:03:17,704 KT: Hi, Suze and KT. Thank you for always having an 68 00:03:17,705 --> 00:03:22,365 KT: interesting podcast regarding podcast number 644. 69 00:03:22,475 --> 00:03:23,835 Suze: Do you even know what that one was? 70 00:03:23,913 --> 00:03:24,065 KT: I 71 00:03:24,065 --> 00:03:24,274 Suze: don't 72 00:03:24,274 --> 00:03:28,353 KT: know who remembers numbers, but if all of you are 73 00:03:28,354 --> 00:03:32,065 KT: wondering why Miss Staten Island disagreed. 74 00:03:32,538 --> 00:03:36,690 KT: Go to podcast 644, have a listen and then listen 75 00:03:36,690 --> 00:03:42,100 KT: to this. I disagree with you about home ownership as 76 00:03:42,100 --> 00:03:43,139 KT: a senior. 77 00:03:43,830 --> 00:03:46,610 KT: So I wanted to say something. She's she's writing to 78 00:03:46,610 --> 00:03:50,139 KT: us saying as a senior, does she know that we're seniors, 79 00:03:50,220 --> 00:03:54,289 KT: like really senior? We're older than senior, yeah, we're older. 80 00:03:54,539 --> 00:03:57,419 KT: What are we? What category are we? Senior plus. 81 00:03:57,570 --> 00:04:00,160 Suze: Senoritas. 82 00:04:05,889 --> 00:04:11,440 KT: (Suze and KT sing a little bit) All right, as a senior, I would be terrified 83 00:04:11,440 --> 00:04:16,790 KT: if I was a renter watching uncontrolled rents unpredictably go 84 00:04:16,790 --> 00:04:21,200 KT: way up with the housing shortage and the cost for 85 00:04:21,200 --> 00:04:23,839 KT: moving to a cheaper apartment is high. 86 00:04:24,320 --> 00:04:28,738 KT: So folks are stuck, Suze. At the time my partner 87 00:04:28,738 --> 00:04:31,928 KT: and I bought a townhouse in Staten Island, New York 88 00:04:31,928 --> 00:04:33,700 KT: in 1984. 89 00:04:33,779 --> 00:04:34,058 Suze: Are you 90 00:04:34,059 --> 00:04:37,929 Suze: kidding me? She's comparing 1984 to now. Are you just 91 00:04:37,928 --> 00:04:39,109 Suze: kidding me? She's Staten Island. 92 00:04:39,209 --> 00:04:42,970 KT: She's a senior. My rent for one bedroom was about 93 00:04:42,970 --> 00:04:47,390 KT: to be raised to $400 in a nearby neighborhood. His 94 00:04:47,390 --> 00:04:50,339 KT: in Brooklyn was around the same, maybe 450. 95 00:04:50,524 --> 00:04:55,755 KT: So we would have wasted so much money in rent 96 00:04:55,755 --> 00:05:00,595 KT: over the years. Yes, we've had big surprise maintenance costs, 97 00:05:00,674 --> 00:05:03,834 KT: but at least it's not rent going to someone else's 98 00:05:03,834 --> 00:05:07,594 KT: property and we, and this is in bold, everyone, and 99 00:05:07,595 --> 00:05:12,034 KT: we can't be evicted, which is as close as one 100 00:05:12,035 --> 00:05:16,674 KT: can get to security. You might disagree with that, Suze. 101 00:05:17,029 --> 00:05:20,250 KT: And now, so Ms. Staten Island said you suggest one 102 00:05:20,250 --> 00:05:25,459 KT: might save a million dollars in Roth investments over 40 years. 103 00:05:25,649 --> 00:05:30,988 KT: That implies one with no home ownership has unsecured money 104 00:05:31,250 --> 00:05:34,570 KT: he can afford to lose. A million is barely 105 00:05:34,720 --> 00:05:38,029 KT: a backup now for old age in 40 years it 106 00:05:38,029 --> 00:05:41,738 KT: will be a pittance. I don't know, a million dollars 107 00:05:42,109 --> 00:05:43,709 KT: in 40 years. What would it really 108 00:05:43,709 --> 00:05:43,790 KT: be, Suze? 109 00:05:43,950 --> 00:05:49,730 Suze: Well, probably at about a 2.5% inflation rate around $375,000 110 00:05:49,730 --> 00:05:50,070 Suze: right around there. 111 00:05:50,279 --> 00:05:51,209 KT: Well, there you go. 112 00:05:51,390 --> 00:05:56,260 Suze: All right, so wait, so let's get realistic here. 113 00:05:57,640 --> 00:06:01,839 Suze: All of us who are older lived in a very 114 00:06:01,839 --> 00:06:03,320 Suze: privileged time. 115 00:06:04,119 --> 00:06:09,160 Suze: We lived in a time when real estate was really 116 00:06:09,160 --> 00:06:12,529 Suze: so inexpensive I can't tell you. I remember when this 117 00:06:12,529 --> 00:06:19,760 Suze: incredibly large house in Berkeley, California was $17,000 yeah, and 118 00:06:19,760 --> 00:06:23,428 Suze: then the next year it was $34,000. KT, I bought 119 00:06:23,428 --> 00:06:24,988 Suze: that huge home. 120 00:06:26,029 --> 00:06:30,779 Suze: 97 Tunnel Road for $40,000. 121 00:06:30,829 --> 00:06:32,269 KT: I remember you showed it to me. 122 00:06:32,470 --> 00:06:36,869 Suze: I bought my house up in the Oakland Hills for 123 00:06:36,869 --> 00:06:43,920 Suze: $65,000 and then it sold for what, 900,000 whatever so 124 00:06:44,190 --> 00:06:48,750 Suze: the thing is, Miss Staten Island is that you have 125 00:06:48,750 --> 00:06:52,100 Suze: to also as you've gotten older now. 126 00:06:52,480 --> 00:06:55,709 Suze: You have to appreciate the fact that all of us 127 00:06:55,709 --> 00:06:58,630 Suze: were able to buy things at a time when they 128 00:06:58,630 --> 00:07:02,670 Suze: were far less expensive and that it just made sense 129 00:07:02,670 --> 00:07:08,309 Suze: to own real estate. Today, I can't even imagine what 130 00:07:08,309 --> 00:07:11,049 Suze: is your house worth. What are you going to sell 131 00:07:11,049 --> 00:07:15,470 Suze: it for? And is anybody gonna be able to even 132 00:07:15,470 --> 00:07:18,910 Suze: buy it? So we were privileged. 133 00:07:19,390 --> 00:07:22,380 Suze: So while you may be able to disagree with me 134 00:07:22,380 --> 00:07:26,660 Suze: and I respect that. Today for those who are younger, 135 00:07:26,739 --> 00:07:31,179 Suze: the millennials and all of them, it's incredibly difficult to 136 00:07:31,179 --> 00:07:36,299 Suze: buy a home that average prices are $400,000 that means 137 00:07:36,299 --> 00:07:39,980 Suze: at least $80,000 down. Insurance is 138 00:07:40,130 --> 00:07:43,519 Suze: through the roof, property taxes are through the roof. The 139 00:07:43,519 --> 00:07:47,760 Suze: jobs aren't stable. They're being displaced by artificial intelligence. If 140 00:07:47,760 --> 00:07:50,760 Suze: you're working for the federal government, well, you've just been 141 00:07:50,760 --> 00:07:54,559 Suze: laid off. There are tens of thousands of jobs that 142 00:07:54,559 --> 00:07:55,660 Suze: are going away. 143 00:07:56,420 --> 00:08:00,029 Suze: So while you get to enjoy the fact that you 144 00:08:00,029 --> 00:08:05,790 Suze: own it outright and you can't be evicted, you also 145 00:08:05,790 --> 00:08:10,630 Suze: have to be understanding of why somebody like Suze Orman 146 00:08:10,630 --> 00:08:15,790 Suze: says it's OK to just rent. It's OK. 147 00:08:16,570 --> 00:08:20,290 Suze: Because with insurance and things like that, it just might 148 00:08:20,290 --> 00:08:23,369 Suze: be too expensive. Now you're in Staten Island. I just 149 00:08:23,369 --> 00:08:24,450 Suze: have to say this... 150 00:08:24,450 --> 00:08:25,170 KT: It's expensive. 151 00:08:25,880 --> 00:08:30,230 Suze: You're in Staten Island. There are people in Florida who 152 00:08:30,230 --> 00:08:34,989 Suze: own their homes outright, and they have to sell because 153 00:08:34,989 --> 00:08:39,520 Suze: their insurance has gone up so much they can't afford 154 00:08:39,520 --> 00:08:44,270 Suze: their insurance payments even though they own the house outright. 155 00:08:45,059 --> 00:08:50,460 Suze: So don't be too judgmental. It depends on who you are, 156 00:08:50,750 --> 00:08:55,520 Suze: where you live, their income, and everything like that next, 157 00:08:55,919 --> 00:08:56,590 KT: OK. 158 00:08:56,989 --> 00:09:01,978 Suze: I suggest that a million dollars in a Roth investment 159 00:09:01,979 --> 00:09:06,669 Suze: over 40 years, right, implies with no home ownership. No, 160 00:09:06,750 --> 00:09:08,229 Suze: I didn't imply that. 161 00:09:08,710 --> 00:09:11,419 Suze: But what I was trying to do is make a 162 00:09:11,419 --> 00:09:17,260 Suze: point with the woman who was interviewing me. Simply, it's 163 00:09:17,260 --> 00:09:20,380 Suze: better to have something than nothing. 164 00:09:21,150 --> 00:09:25,219 Suze: And if you can't afford a home, all right, at 165 00:09:25,219 --> 00:09:29,739 Suze: least start saving for the future. The example of $1 166 00:09:29,739 --> 00:09:33,489 Suze: million was $100 a month over 40 years. 167 00:09:34,239 --> 00:09:37,468 Suze: And that would give you a million dollars. What if 168 00:09:37,469 --> 00:09:40,959 Suze: it were $200 a month or $500 a month? 169 00:09:42,179 --> 00:09:47,500 Suze: Something is better than nothing, and to understand compounding helps 170 00:09:47,500 --> 00:09:51,859 Suze: you no matter what, so don't be so snippety. 171 00:09:52,369 --> 00:09:56,799 Suze: That a million dollars will only be a pittance. $376,000 172 00:09:56,840 --> 00:10:00,080 Suze: even 40 years from now is not a pittance. There 173 00:10:00,080 --> 00:10:03,400 Suze: are people who would love to have just $10,000 so 174 00:10:03,400 --> 00:10:06,489 Suze: be more gracious, my dear one. Next KT. 175 00:10:06,640 --> 00:10:09,659 KT: OK, this is from Marilyn, and the subject said in 176 00:10:09,659 --> 00:10:12,229 KT: the same boat as Juliana. 177 00:10:12,320 --> 00:10:14,640 Suze: Oh, so wait, let me remind everybody about 178 00:10:14,640 --> 00:10:15,669 KT: Juliana. 179 00:10:15,919 --> 00:10:18,119 Suze: A week or so ago I asked all of you 180 00:10:18,119 --> 00:10:21,159 Suze: who might have advice for Juliana because she was actually 181 00:10:21,159 --> 00:10:21,799 Suze: the quizzy. 182 00:10:22,299 --> 00:10:26,679 Suze: I think anyway um to write in and give her 183 00:10:26,679 --> 00:10:30,520 Suze: advice why because she is in this abusive relationship she's 184 00:10:30,520 --> 00:10:34,280 Suze: been separated and she's so confused. Should she divorce him? 185 00:10:34,429 --> 00:10:37,718 Suze: Should she not? And she's just scared to make a 186 00:10:37,719 --> 00:10:41,640 Suze: move so I thought maybe all of you could help 187 00:10:41,640 --> 00:10:46,080 Suze: her and she's gotten about 50, by the way, responses. 188 00:10:46,539 --> 00:10:50,140 Suze: To her situation, but obviously KT chose 189 00:10:50,140 --> 00:10:52,479 KT: I like to read to you. This is important. It said, 190 00:10:52,559 --> 00:10:54,789 KT: hi Suze. This past summer... 191 00:10:55,320 --> 00:10:58,059 Suze: Juliana, I hope you're listening. All right, go for it, 192 00:10:58,159 --> 00:11:01,640 KT: KT. Hi Suze. This past summer you advised me when 193 00:11:01,640 --> 00:11:05,799 KT: I went through a very ugly and contested divorce from 194 00:11:05,799 --> 00:11:07,119 KT: a similar man. 195 00:11:07,849 --> 00:11:12,559 KT: So she her man, her husband was similar to Juliana's. 196 00:11:12,729 --> 00:11:16,820 KT: It was very hard emotionally and financially as it cost 197 00:11:16,820 --> 00:11:23,848 KT: me $174,000 in legal fees. I am now on the 198 00:11:23,849 --> 00:11:27,729 KT: other side and am in a much better place. I 199 00:11:27,729 --> 00:11:32,130 KT: promised Juliana it will get better. I even started dating, 200 00:11:32,179 --> 00:11:34,169 KT: which I never thought I would. 201 00:11:34,455 --> 00:11:37,714 KT: It feels amazing to go out with a man who 202 00:11:37,715 --> 00:11:41,554 KT: values and respects you. My children are very happy to 203 00:11:41,554 --> 00:11:45,395 KT: see me out of a bad marriage as well. Please 204 00:11:45,395 --> 00:11:48,515 KT: tell Juliana she can reach out to me if she 205 00:11:48,515 --> 00:11:53,034 KT: needs support or has questions about my experience. Don't go 206 00:11:53,034 --> 00:11:56,304 KT: through it alone. Reach out to those who love you 207 00:11:56,304 --> 00:11:59,934 KT: and ready, this is the finale and get a therapist. 208 00:12:01,419 --> 00:12:05,359 KT: So Marilyn, thank you so much for being kind enough 209 00:12:05,359 --> 00:12:08,719 KT: to take the time to send that into Juliana. 210 00:12:08,760 --> 00:12:09,080 Suze: And to all of 211 00:12:09,080 --> 00:12:12,400 Suze: you who took the time to do so. I'll try 212 00:12:12,400 --> 00:12:15,900 Suze: my best to get all of them to Juliana, right? 213 00:12:15,960 --> 00:12:17,880 Suze: And I, I do have to cross out all your 214 00:12:17,880 --> 00:12:21,189 Suze: names and everything to protect all of you, but anyway, 215 00:12:21,320 --> 00:12:23,320 Suze: I'll try my best to do so, but. 216 00:12:23,760 --> 00:12:27,039 Suze: Thanks everybody seriously. You know, KT... 217 00:12:27,039 --> 00:12:28,270 KT: Supporting each other 218 00:12:28,479 --> 00:12:31,320 Suze: The people that listen to the Women and Money podcast 219 00:12:31,320 --> 00:12:35,159 Suze: and everybody smart enough to listen. The majority of everybody 220 00:12:35,159 --> 00:12:40,799 Suze: really are so kind and good and supportive, and we 221 00:12:40,799 --> 00:12:43,429 Suze: appreciate that so, so very much. OK, 222 00:12:43,530 --> 00:12:47,960 KT: OK, next is from Suzanne. Good morning, Suze and KT. 223 00:12:48,280 --> 00:12:49,469 KT: You mentioned last Sunday 224 00:12:49,669 --> 00:12:52,349 KT: that you will self insure your home. 225 00:12:52,609 --> 00:12:52,969 Suze: You bet. 226 00:12:53,340 --> 00:12:56,179 KT: Please teach us what to look at to know when 227 00:12:56,179 --> 00:13:00,260 KT: it's right to self insure. Thank you for everything you do. 228 00:13:00,340 --> 00:13:05,799 KT: Now Suzanne's from Texas, so she's interested obviously in self insuring. 229 00:13:06,179 --> 00:13:10,500 Suze: So Suzanne, here's what you have to take in consideration. 230 00:13:10,580 --> 00:13:13,179 Suze: I'll just tell you as far as we go. 231 00:13:13,849 --> 00:13:20,070 Suze: To pay $28,000 a year for a really 2000 square 232 00:13:20,070 --> 00:13:22,619 Suze: foot condo. That's all it is. 233 00:13:23,520 --> 00:13:28,299 Suze: It is just ridiculous... in Florida is ridiculous because they 234 00:13:28,299 --> 00:13:31,409 Suze: also let you know if you make one little claim, 235 00:13:31,909 --> 00:13:34,580 Suze: even if it's a little claim, they're gonna cancel you. 236 00:13:35,309 --> 00:13:39,150 Suze: So my looking at it is all right... 237 00:13:39,950 --> 00:13:44,478 Suze: If something happens to the condo, the outside and everything 238 00:13:44,479 --> 00:13:49,309 Suze: will be protected by the condo insurance for the building. 239 00:13:49,599 --> 00:13:54,119 Suze: The inside is what we will be responsible for, so 240 00:13:54,119 --> 00:13:57,440 Suze: I look at everything and I just think, all right, 241 00:13:57,679 --> 00:14:01,280 Suze: I'd rather come up with whatever it's gonna cost to 242 00:14:01,280 --> 00:14:06,239 Suze: fix everything than have to pay $28,000 a year. 243 00:14:06,700 --> 00:14:12,380 Suze: Now my big fear is hurricanes, so it's possible that 244 00:14:12,380 --> 00:14:16,059 Suze: we could get hit this summer after I've canceled. It's 245 00:14:16,059 --> 00:14:20,419 Suze: also possible that for the 20 some odd years that 246 00:14:20,419 --> 00:14:25,210 Suze: we have lived there and we've gone through many hurricanes, 247 00:14:25,500 --> 00:14:27,419 Suze: can you believe we've lived there? How long have we 248 00:14:27,419 --> 00:14:27,940 Suze: lived there? 249 00:14:28,789 --> 00:14:30,580 Suze: 20, 21 years, 250 00:14:30,789 --> 00:14:33,780 KT: 21...21 maybe going on 22 years. 251 00:14:34,030 --> 00:14:34,659 Suze: Oh, can you 252 00:14:34,659 --> 00:14:38,239 Suze: believe it? Anyway, and we love it there. We've never 253 00:14:38,239 --> 00:14:40,349 Suze: been hit by a hurricane yet. 254 00:14:41,109 --> 00:14:44,919 Suze: So if I were to say, OK, can I go 255 00:14:44,919 --> 00:14:47,919 Suze: 5 years maybe and not being hit, and that would 256 00:14:47,919 --> 00:14:51,640 Suze: be a $150,000 savings, which would probably be enough to 257 00:14:51,640 --> 00:14:54,479 Suze: fix everything, but regardless. 258 00:14:55,280 --> 00:14:58,429 Suze: It's right for us to self insure because the truth 259 00:14:58,429 --> 00:15:01,669 Suze: of the matter is no matter what happened in that 260 00:15:01,669 --> 00:15:06,030 Suze: condo we can easily afford to fix it and it 261 00:15:06,030 --> 00:15:10,309 Suze: will not on any level affect us financially in terms 262 00:15:10,309 --> 00:15:14,239 Suze: of our security or anything so that's kind of how 263 00:15:14,239 --> 00:15:17,869 Suze: when you know it's right is if you drop your 264 00:15:17,869 --> 00:15:22,669 Suze: insurance and this next week or whatever the place is destroyed. 265 00:15:23,460 --> 00:15:27,770 Suze: Can you afford to replace it totally on your own, 266 00:15:28,260 --> 00:15:31,070 Suze: and it's easy to do. All right, KT. 267 00:15:31,340 --> 00:15:35,429 KT: All right. Next is from Ashley. It's about a Roth, 268 00:15:35,539 --> 00:15:39,299 KT: all right, so ready... everywhere I go I'm told 269 00:15:39,299 --> 00:15:41,489 Suze: By the way, I have to say something, everybody. 270 00:15:42,000 --> 00:15:45,299 Suze: So I told KT today was supposed to be a 271 00:15:45,299 --> 00:15:46,900 Suze: Roth quizzy just for her. 272 00:15:46,900 --> 00:15:47,900 KT: I'm not ready. 273 00:15:47,900 --> 00:15:50,140 Suze: She kept saying I'm not ready. I said, When are 274 00:15:50,140 --> 00:15:51,859 Suze: you gonna be ready? What did you say? 275 00:15:52,059 --> 00:15:52,770 KT: 2 weeks. 276 00:15:52,900 --> 00:15:57,200 Suze: You said 2 months. You said 2 months. So don't 277 00:15:57,200 --> 00:16:00,419 Suze: think I forgot everybody, but no way. I have the 278 00:16:00,419 --> 00:16:03,419 Suze: quizzy right here. I've done the quizzy. 279 00:16:03,869 --> 00:16:06,479 Suze: I looked at her and she said, I'm not doing that, right? 280 00:16:06,609 --> 00:16:08,530 Suze: I'm not doing it. I'm, I'm not doing it. 281 00:16:08,809 --> 00:16:12,039 KT: I'm letting Suze answer this Roth question, but I'm not 282 00:16:12,039 --> 00:16:12,729 KT: doing a quizzy. 283 00:16:13,179 --> 00:16:14,859 KT: So here's what Ashley said. 284 00:16:15,210 --> 00:16:15,619 Suze: She put her foot down. 285 00:16:15,820 --> 00:16:18,409 KT: She said, everywhere I go, I'm told I will have 286 00:16:18,409 --> 00:16:23,940 KT: to pay penalties and possibly taxes if I withdraw contributions 287 00:16:23,940 --> 00:16:28,659 KT: from a 403B Roth before I am 59 and a half years of 288 00:16:28,659 --> 00:16:32,099 KT: age and if the account hasn't been opened for at 289 00:16:32,099 --> 00:16:36,619 KT: least 5 years. So then she said, and I just 290 00:16:36,619 --> 00:16:36,859 KT: tell 291 00:16:36,965 --> 00:16:41,284 KT: them that Suze Orman says that you can take out contributions. 292 00:16:41,414 --> 00:16:46,755 KT: On my post-tax contributions, not by employers pre-tax at any 293 00:16:46,755 --> 00:16:52,655 KT: time without penalties. Suze, am I wrong? Did I misunderstand you? 294 00:16:52,994 --> 00:16:54,854 Suze: You did misunderstand me. 295 00:16:55,234 --> 00:16:57,094 KT: Ashley. All right, let's Suze explain. 296 00:16:57,094 --> 00:17:00,715 Suze: When it comes to a Roth 403B. 297 00:17:01,469 --> 00:17:05,709 Suze: When it comes to a Roth IRA, please everybody understand 298 00:17:05,709 --> 00:17:10,659 Suze: the difference. A Roth IRA is an individual retirement account 299 00:17:10,910 --> 00:17:15,060 Suze: that you yourself open up usually at a brokerage firm 300 00:17:15,060 --> 00:17:18,899 Suze: or whatever it may be. When that is the case, 301 00:17:19,150 --> 00:17:23,069 Suze: you can take out any of your original contributions that 302 00:17:23,069 --> 00:17:23,948 Suze: you put in. 303 00:17:24,829 --> 00:17:27,910 Suze: Regardless of age or how long the account has been 304 00:17:27,910 --> 00:17:32,939 Suze: open without any taxes or penalties, it's the earnings that 305 00:17:32,939 --> 00:17:36,879 Suze: have to stay in there for at least 5 years, 306 00:17:36,890 --> 00:17:39,790 Suze: and you have to be 59 and a half years of age. But 307 00:17:39,790 --> 00:17:44,109 Suze: in a wroth you have the ability to just take 308 00:17:44,109 --> 00:17:49,270 Suze: out contributions. In a Roth 403B, 309 00:17:49,780 --> 00:17:54,260 Suze: that is not how it works, my dear Ashley, because 310 00:17:54,260 --> 00:18:00,510 Suze: they do a combination. You just can't take out contributions 311 00:18:00,510 --> 00:18:05,619 Suze: from a Roth 403B. So what happens is they do 312 00:18:05,619 --> 00:18:12,150 Suze: a calculation. Let's say you had $50,000 in your Roth 403B. 313 00:18:12,780 --> 00:18:18,729 Suze: 30,000 were your contributions. 20,000 were growth. So if you 314 00:18:18,729 --> 00:18:25,550 Suze: were to divide 30 by 50,000, that's 60%, 20 by 50,000, 315 00:18:25,630 --> 00:18:29,589 Suze: that's 40%. So if you wanted to just let's say 316 00:18:29,589 --> 00:18:36,670 Suze: take out $10,000 of your contributions, 60% of that $10,000 317 00:18:36,670 --> 00:18:42,229 Suze: would be considered contributions totally tax free, no problem. 318 00:18:42,810 --> 00:18:48,569 Suze: The 40% or $4000 of that $10,000 is going to 319 00:18:48,569 --> 00:18:51,989 Suze: be considered earnings if it hasn't been in there for 320 00:18:51,989 --> 00:18:56,438 Suze: at least 5 years and you're not at least 59 and a half 321 00:18:56,439 --> 00:18:59,250 Suze: years of age or older, you're not only going to 322 00:18:59,250 --> 00:19:02,780 Suze: have to pay ordinary income taxes on that $4000 you're 323 00:19:02,780 --> 00:19:06,930 Suze: gonna have to pay a 10% penalty as well. So 324 00:19:06,930 --> 00:19:08,050 Suze: you have mixed 325 00:19:08,194 --> 00:19:13,265 Suze: up a Roth IRA with a Roth 403B or 401k 326 00:19:13,265 --> 00:19:15,823 Suze: or TSP. There you go. All right. 327 00:19:16,104 --> 00:19:17,224 KT: OK, we straightened her out. 328 00:19:17,704 --> 00:19:19,224 Suze: That should have been your quizzy. 329 00:19:19,265 --> 00:19:20,185 KT: It should have. I would have 330 00:19:23,224 --> 00:19:24,185 KT: would have never gotten it. 331 00:19:24,265 --> 00:19:26,974 Suze: That's why my voice has gotten so hoarse over the years. 332 00:19:27,344 --> 00:19:29,864 Suze: I'm always going like this (Suze makes the wrong answer sound) to KT. 333 00:19:30,064 --> 00:19:33,385 KT: OK, this is from Beth. I like this one because 334 00:19:33,385 --> 00:19:36,425 KT: it's so many of us are in the same boat here. 335 00:19:37,010 --> 00:19:40,949 KT: As my dad's power of attorney for finances, I may 336 00:19:40,949 --> 00:19:45,369 KT: soon need to decide which investments to redeem so he 337 00:19:45,369 --> 00:19:49,349 KT: can receive the care he needs. He is 95 years old. 338 00:19:50,489 --> 00:19:53,530 KT: He has a good daughter. Most of his assets are 339 00:19:53,530 --> 00:19:57,438 KT: in mutual funds, with only a small portion in an IRA. 340 00:19:57,709 --> 00:20:01,369 KT: He does not have long term care insurance. Number one, 341 00:20:01,430 --> 00:20:02,290 KT: I'm guessing, 342 00:20:02,550 --> 00:20:06,899 KT: should I use his regular investments first, but how do 343 00:20:06,900 --> 00:20:10,780 KT: I decide which ones to use the best performing, the 344 00:20:10,780 --> 00:20:16,300 KT: worst performing? Number two, should I liquidate a sum of 345 00:20:16,300 --> 00:20:20,500 KT: money now for easy access, a year's worth, more or less? 346 00:20:21,324 --> 00:20:23,895 KT: So Beth wants to do the right thing and, and ask you, your advice. 347 00:20:23,895 --> 00:20:24,774 Suze: If you 348 00:20:24,775 --> 00:20:28,094 Suze: remember, um, I think it was last week I answered 349 00:20:28,094 --> 00:20:29,494 Suze: you picked a question very 350 00:20:29,494 --> 00:20:29,804 Suze: Similar 351 00:20:29,814 --> 00:20:33,104 KT: Similar to that which had, yeah, numbers, amounts of money. 352 00:20:33,454 --> 00:20:35,734 Suze: How come you're picking the same type of question because 353 00:20:35,734 --> 00:20:36,175 Suze: it's stuck in your heart. 354 00:20:37,015 --> 00:20:38,574 KT: Yeah, I think because, um. 355 00:20:39,260 --> 00:20:42,819 KT: Many people that we know are in this situation of 356 00:20:42,819 --> 00:20:47,619 KT: taking care of elderly parents. The decisions and just the 357 00:20:47,619 --> 00:20:49,780 KT: conversations are so awkward and 358 00:20:49,780 --> 00:20:50,389 KT: difficult. 359 00:20:50,540 --> 00:20:53,369 Suze: Yeah, but this one isn't about an awkward or difficult 360 00:20:53,369 --> 00:20:56,699 Suze: one for. This is, this is for you to do 361 00:20:56,699 --> 00:21:01,429 Suze: something just that simple. So here's the scoop, my friend, 362 00:21:01,859 --> 00:21:03,810 Suze: which is if I were you. 363 00:21:04,979 --> 00:21:08,780 Suze: I would not just do little by little because anything 364 00:21:08,780 --> 00:21:14,449 Suze: can happen at any time to the stock market and 365 00:21:14,780 --> 00:21:18,459 Suze: therefore your father is 95 now he could live another 366 00:21:18,459 --> 00:21:22,099 Suze: 5 years. My mother lived till 97. 367 00:21:22,310 --> 00:21:24,099 Suze: And it was because she didn't really want to live 368 00:21:24,099 --> 00:21:27,140 Suze: any longer or she really would have lived till 100 369 00:21:27,140 --> 00:21:29,149 Suze: or she'd probably still be alive today, KT. 370 00:21:29,380 --> 00:21:29,939 KT: Probably 371 00:21:29,939 --> 00:21:33,899 Suze: Right? Anyway, so if I were you and I were 372 00:21:33,900 --> 00:21:38,698 Suze: in this situation, I would figure out a lump sum 373 00:21:38,699 --> 00:21:42,780 Suze: of money that I know I'm going to need for 374 00:21:42,780 --> 00:21:48,060 Suze: my dad for at least 3 years and depending on 375 00:21:48,060 --> 00:21:50,500 Suze: where his investments are. 376 00:21:51,329 --> 00:21:54,689 Suze: I would look and talk to a tax person and 377 00:21:54,689 --> 00:21:59,050 Suze: I would look especially if it's outside of a retirement account. 378 00:22:00,020 --> 00:22:03,180 Suze: I would cash out of the ones that were the 379 00:22:03,180 --> 00:22:07,458 Suze: best performing he has gains in, and I would sell 380 00:22:07,459 --> 00:22:10,489 Suze: the ones that he has losses in if there are any, 381 00:22:10,739 --> 00:22:14,458 Suze: and I would offset the two so he doesn't owe 382 00:22:14,459 --> 00:22:18,219 Suze: any taxes on it if it's outside of a retirement 383 00:22:18,219 --> 00:22:22,579 Suze: account and he doesn't have any gains to offset. 384 00:22:23,270 --> 00:22:25,989 Suze: Then I would do only the ones really that had 385 00:22:25,989 --> 00:22:29,349 Suze: the losses in it and let the winners continue to 386 00:22:29,349 --> 00:22:32,140 Suze: go so he doesn't have to pay taxes on it 387 00:22:32,550 --> 00:22:34,989 Suze: because I don't know how large of a capital gain 388 00:22:34,989 --> 00:22:38,030 Suze: or an ordinary income he's going to have but if 389 00:22:38,030 --> 00:22:40,430 Suze: I were you, the best advice I could give you 390 00:22:40,430 --> 00:22:44,349 Suze: is I would actually sit down with either a financial 391 00:22:44,349 --> 00:22:49,300 Suze: adviser or a tax person, look at everything your dad has. 392 00:22:50,050 --> 00:22:54,429 Suze: And do the ones that make the most sense. Also, 393 00:22:54,520 --> 00:22:58,829 Suze: I just have to say this, remember upon his death, 394 00:22:59,640 --> 00:23:02,958 Suze: when you get this, especially if it's outside of a 395 00:23:02,959 --> 00:23:05,920 Suze: retirement account, if he's gonna leave it to you, you 396 00:23:05,920 --> 00:23:08,119 Suze: get a step up in basis. 397 00:23:08,869 --> 00:23:12,150 Suze: On all the stocks and anything else he has where 398 00:23:12,150 --> 00:23:14,938 Suze: he has a tremendous gain and then if you sell 399 00:23:14,939 --> 00:23:18,390 Suze: it there's no taxes so you have to figure it 400 00:23:18,390 --> 00:23:23,229 Suze: out but probably I would start with getting rid of 401 00:23:23,229 --> 00:23:28,229 Suze: his worst performers first if I didn't wasn't able to 402 00:23:28,229 --> 00:23:29,829 Suze: offset things, OK. 403 00:23:30,630 --> 00:23:33,149 KT: All right, Suze, next question is from Rachel. 404 00:23:34,160 --> 00:23:37,560 KT: This kind of made me chuckle because the subject says 405 00:23:37,560 --> 00:23:39,550 KT: fear and politics. 406 00:23:40,780 --> 00:23:43,660 KT: I'm not gonna do. We don't do politics. I'm not 407 00:23:43,660 --> 00:23:48,140 KT: making any comment, but obviously, Rachel said, Suze, I'm freaking 408 00:23:48,140 --> 00:23:52,060 KT: out about all the political stuff. I'm worried about the 409 00:23:52,060 --> 00:23:54,979 KT: money I have in the market. I'm worried about the 410 00:23:54,979 --> 00:23:57,899 KT: money I have in the banks. I'm worried they will 411 00:23:57,900 --> 00:24:01,609 KT: invalidate my marriage. I'm worried about so many things right 412 00:24:01,609 --> 00:24:04,339 KT: now and I don't know how to feel OK about 413 00:24:04,339 --> 00:24:05,139 KT: the future. 414 00:24:05,760 --> 00:24:10,349 KT: Will the must have documents cover me and my same-sex 415 00:24:10,349 --> 00:24:14,640 KT: spouse if they overturn recognition of my marriage? 416 00:24:14,760 --> 00:24:18,229 Suze: So you know, KT, she's asking two different questions. 417 00:24:18,319 --> 00:24:19,469 KT: Oh, she's just scared to death. 418 00:24:20,719 --> 00:24:24,140 Suze: Financially, you're asking, is the market gonna be OK? Is 419 00:24:24,140 --> 00:24:26,399 Suze: money gonna be OK and all of that. 420 00:24:26,869 --> 00:24:29,910 Suze: I would tell you I wouldn't worry about it. I 421 00:24:29,910 --> 00:24:34,229 Suze: wouldn't because I think this year in particular is gonna 422 00:24:34,229 --> 00:24:37,229 Suze: be a really great year for the stock market, possibly 423 00:24:37,229 --> 00:24:40,939 Suze: into 2026, believe it or not. The money that you 424 00:24:40,939 --> 00:24:45,760 Suze: have in banks are FDIC insured hopefully if you're the 425 00:24:45,760 --> 00:24:49,989 Suze: uh with the $250,000 or many beneficiaries, so I wouldn't 426 00:24:49,989 --> 00:24:52,540 Suze: be worried about those things. 427 00:24:53,140 --> 00:24:58,579 Suze: Would I be worried about gay marriage being invalidated, which 428 00:24:58,579 --> 00:25:03,660 Suze: obviously kind of affects KT and myself, but we were 429 00:25:03,660 --> 00:25:07,459 Suze: married in South Africa, so we don't even have a 430 00:25:07,459 --> 00:25:09,649 Suze: license here in the United States. 431 00:25:09,939 --> 00:25:14,129 KT: What we have is acknowledged and recognized worldwide. 432 00:25:14,339 --> 00:25:16,218 Suze: But anyway, more important than that. 433 00:25:16,839 --> 00:25:21,810 Suze: But here's what everybody is writing me who's worried about 434 00:25:21,810 --> 00:25:27,939 Suze: the invalidation of gay marriage or same-sex marriage. Truthfully, the 435 00:25:27,939 --> 00:25:33,500 Suze: only way to completely ban same-sex marriage nationwide. 436 00:25:34,530 --> 00:25:39,609 Suze: Would be through a constitutional, KT, amendment where they would 437 00:25:39,609 --> 00:25:43,650 Suze: be defining marriage as a man and a woman. Now 438 00:25:43,650 --> 00:25:47,170 Suze: what's interesting about this because KT's looking at me as 439 00:25:47,170 --> 00:25:51,079 Suze: if I should know this, right, but anyway, is this 440 00:25:51,079 --> 00:25:56,550 Suze: would require 2/3 KT of Congress and the ratification of 441 00:25:56,550 --> 00:25:58,849 Suze: almost I think it's 38 states. 442 00:25:59,349 --> 00:26:03,729 Suze: To get rid of it, which in my opinion is highly, 443 00:26:03,859 --> 00:26:08,750 Suze: highly improbable and why is that? Because the current public 444 00:26:08,750 --> 00:26:13,939 Suze: support of same-sex marriage is 70%, so I don't think 445 00:26:13,939 --> 00:26:18,300 Suze: a lot of these states are gonna really jeopardize everybody 446 00:26:18,300 --> 00:26:21,099 Suze: voting them out next time, however. 447 00:26:22,859 --> 00:26:28,760 Suze: Will marriages that are existing become null and void? I 448 00:26:28,760 --> 00:26:34,500 Suze: don't think so. However, it may be that marriages in 449 00:26:34,500 --> 00:26:39,939 Suze: the future won't be allowed to happen, and that is 450 00:26:39,939 --> 00:26:47,000 Suze: an absolute possibility. Therefore, if you're out there, if you're gay, 451 00:26:47,300 --> 00:26:49,379 Suze: you've been thinking about getting married. 452 00:26:49,819 --> 00:26:52,939 Suze: I would do it - stop thinking about it, right? Wait, 453 00:26:53,010 --> 00:26:54,810 Suze: I just have to tell a little story even though 454 00:26:54,810 --> 00:26:56,969 Suze: I know we may run a little late. We were 455 00:26:56,969 --> 00:27:01,469 Suze: on that cruise ship, Olivia, remember, and there were two 456 00:27:01,469 --> 00:27:04,530 Suze: women and I was speaking there and two women stood 457 00:27:04,530 --> 00:27:08,439 Suze: up who had been together forever and essentially they said 458 00:27:08,439 --> 00:27:12,250 Suze: to me this was after same-sex marriage was legalized in 459 00:27:12,250 --> 00:27:15,329 Suze: the United States and I said oh so you're gonna 460 00:27:15,329 --> 00:27:18,000 Suze: get married? They said no, what for? 461 00:27:18,640 --> 00:27:21,189 Suze: I said what do you mean what for? They said 462 00:27:21,189 --> 00:27:25,270 Suze: we love each other. Everything's OK. I said, do you 463 00:27:25,270 --> 00:27:30,978 Suze: know how hard all of us worked to get same-sex 464 00:27:30,979 --> 00:27:35,819 Suze: marriage legalized? I gave talks to senators. I did so much. 465 00:27:36,030 --> 00:27:40,510 Suze: It was like it was essential, especially when you love 466 00:27:40,510 --> 00:27:43,550 Suze: somebody like I love KT. Of course you want to 467 00:27:43,550 --> 00:27:44,790 Suze: be able to get married. 468 00:27:45,119 --> 00:27:48,449 Suze: And they said, no, it's all right, and I said 469 00:27:48,739 --> 00:27:53,780 Suze: don't wait, don't take something for granted because you never 470 00:27:53,780 --> 00:27:57,420 Suze: know when it will go away. And here we are 471 00:27:57,420 --> 00:28:02,510 Suze: today with I've gotten over 50 emails like this KT 472 00:28:02,510 --> 00:28:04,859 Suze: asking this question. 473 00:28:05,560 --> 00:28:08,569 Suze: So don't take it for granted if you're out there 474 00:28:08,569 --> 00:28:12,010 Suze: and thinking about it, go ahead and do it, but 475 00:28:12,010 --> 00:28:13,859 Suze: don't do it just to do it and then you're 476 00:28:13,859 --> 00:28:15,329 Suze: going to have to get divorced and then you're going 477 00:28:15,329 --> 00:28:17,219 Suze: to be like all these other people that write in 478 00:28:17,219 --> 00:28:20,449 Suze: and go, you're fighting and just cost you $176,000 in 479 00:28:20,449 --> 00:28:22,649 Suze: legal fees. All right, next KT. 480 00:28:24,680 --> 00:28:27,209 KT: I'm done. I'm done. Do you have a quizzy? 481 00:28:28,209 --> 00:28:29,208 Suze: Of course I have a quizzy. 482 00:28:29,449 --> 00:28:30,479 KT: All right, give me my quizzy. 483 00:28:30,689 --> 00:28:31,609 Suze: Wait, you're just done. 484 00:28:32,369 --> 00:28:33,599 KT: I'm quick. I'm finished. Yeah. 485 00:28:34,089 --> 00:28:35,169 Suze: That's all you picked? 486 00:28:36,069 --> 00:28:40,209 Suze: All right then quizzy time ding ding ding ding dingy. 487 00:28:40,630 --> 00:28:46,689 Suze: Oh look, I have my marriage ring on everybody. Look KT, yeah, because, yeah, 488 00:28:46,790 --> 00:28:49,510 Suze: because yesterday I had to do a webinar and I 489 00:28:49,510 --> 00:28:51,829 Suze: wanted everybody to see that I was married. So do 490 00:28:51,829 --> 00:28:52,790 Suze: you hear it banging on 491 00:28:52,790 --> 00:28:53,189 Suze: the desk? 492 00:28:53,270 --> 00:28:55,150 KT: I hear it. That's why I keep looking at her. 493 00:28:55,189 --> 00:28:55,829 KT: Don't bang your 494 00:28:55,829 --> 00:28:56,119 KT: rings. 495 00:28:56,300 --> 00:28:58,150 Suze: I, so that that's what that noise is in case 496 00:28:58,150 --> 00:28:59,859 Suze: you hear it. Now ready. 497 00:28:59,989 --> 00:29:01,060 KT: What's my quizzy? 498 00:29:01,359 --> 00:29:04,420 Suze: This is from Brent. All right. 499 00:29:05,739 --> 00:29:10,189 Suze: Good afternoon, Suze. I'm now all of you know Quizzy 500 00:29:10,189 --> 00:29:13,140 Suze: isn't just for KT. This is for you to be 501 00:29:13,140 --> 00:29:15,209 Suze: able to answer this as well. 502 00:29:16,000 --> 00:29:20,319 Suze: Good afternoon, Suze. I'm reaching out for your guidance regarding 503 00:29:20,319 --> 00:29:25,550 Suze: my parents' financial situation which has been weighing heavily on me. 504 00:29:26,489 --> 00:29:30,650 Suze: My mother is already retired and only has Social Security 505 00:29:30,650 --> 00:29:35,650 Suze: as her retirement plan. My father, who is 68, is 506 00:29:35,650 --> 00:29:41,449 Suze: looking to retire soon. They are still married. Unfortunately, they've 507 00:29:41,449 --> 00:29:43,489 Suze: never been strong with managing money. 508 00:29:43,880 --> 00:29:48,510 Suze: And have a history of on again off again credit 509 00:29:48,510 --> 00:29:54,630 Suze: debt often resolved through bankruptcy in the past. However, they 510 00:29:54,630 --> 00:29:59,349 Suze: no longer qualify for that option. Obviously that's KT because 511 00:29:59,349 --> 00:30:02,709 Suze: they filed just a few years ago, so they can't 512 00:30:02,709 --> 00:30:03,430 Suze: do it again. 513 00:30:04,209 --> 00:30:11,329 Suze: Currently they have approximately $60,000 in credit card debt and 514 00:30:11,329 --> 00:30:17,170 Suze: they owe about $110,000 on their mortgage. Remember they're only 515 00:30:17,170 --> 00:30:24,489 Suze: in their 60s. They are about to receive $98,000 as 516 00:30:24,489 --> 00:30:29,890 Suze: a tax-free inheritance from the sale of my grandmother's home. 517 00:30:30,329 --> 00:30:38,520 Suze: Additionally, my father has around 250,000 in his 401k. 518 00:30:39,599 --> 00:30:43,949 Suze: My question is, should they use the inheritance to pay 519 00:30:43,949 --> 00:30:47,319 Suze: off their mortgage, or should they use it to pay 520 00:30:47,319 --> 00:30:53,890 Suze: off their credit card debt? Think about it 98,000 tax free. 521 00:30:54,790 --> 00:30:59,540 Suze: Daddy has $250,000 in a 401k. 522 00:31:00,800 --> 00:31:04,099 Suze: Should they use the inheritance to pay off their mortgage, 523 00:31:05,130 --> 00:31:07,199 Suze: or their credit card debt? 524 00:31:10,280 --> 00:31:11,979 KT: I'm ready with my answer. 525 00:31:12,189 --> 00:31:12,790 Suze: What is it? 526 00:31:13,030 --> 00:31:16,550 KT: I think they absolutely should pay off the mortgage, but 527 00:31:16,550 --> 00:31:18,630 KT: there's gonna be some money left over, right? 528 00:31:19,500 --> 00:31:23,310 Suze: No, they're not gonna have enough, right? Their mortgage is $110,000. 529 00:31:23,319 --> 00:31:25,219 Suze: They only have $98,000... 530 00:31:25,219 --> 00:31:25,329 KT: Coming in? 531 00:31:25,920 --> 00:31:28,880 Suze: Yeah, so they're gonna owe still $12,000. 532 00:31:29,400 --> 00:31:30,510 KT: Pay off the mortgage. 533 00:31:30,599 --> 00:31:32,000 Suze: Absolutely your final answer? 534 00:31:32,479 --> 00:31:32,869 KT: I think so. 535 00:31:33,630 --> 00:31:34,459 Suze: You sure? 536 00:31:34,500 --> 00:31:34,564 KT: Yea, yea. 537 00:31:34,564 --> 00:31:36,979 Suze: Oh, I'm so happy to be able to do this 538 00:31:36,979 --> 00:31:40,369 Suze: to you. Are you ready? My hoarse voice, are you ready? 539 00:31:40,739 --> 00:31:46,369 Suze: Ding ding ding ding ding ding. Absolutely the correct answer. 540 00:31:46,900 --> 00:31:50,979 Suze: The reason, everybody that it is the correct answer is 541 00:31:50,979 --> 00:31:51,619 Suze: that 542 00:31:52,339 --> 00:31:55,969 Suze: you never want them to get in a situation where 543 00:31:55,969 --> 00:31:59,170 Suze: they're not able to pay their mortgage and then their 544 00:31:59,170 --> 00:32:05,040 Suze: house is taken away from them remember credit card debt is, 545 00:32:05,250 --> 00:32:08,290 Suze: you know, it's just credit card debt it's not attached 546 00:32:08,290 --> 00:32:12,209 Suze: to anything so given that they're not gonna have any 547 00:32:12,209 --> 00:32:15,500 Suze: income or anything, what are the credit card companies going 548 00:32:15,500 --> 00:32:19,290 Suze: to do? All right so if I were you, 549 00:32:19,829 --> 00:32:23,349 Suze: my dear Brent, I would take the 98,000 and I 550 00:32:23,349 --> 00:32:26,750 Suze: would pay the mortgage on the home. Then, 551 00:32:27,550 --> 00:32:33,569 Suze: I would withdraw as soon as your father retires. I 552 00:32:33,569 --> 00:32:41,050 Suze: would withdraw at least $12,000 to pay off the mortgage totally. 553 00:32:41,979 --> 00:32:46,689 Suze: Then they own the house outright. Now the question is 554 00:32:46,939 --> 00:32:52,020 Suze: they still have $60,000 in credit card debt. 555 00:32:53,010 --> 00:32:57,000 Suze: Well, I don't know. What do you do with that now? 556 00:32:57,030 --> 00:32:59,910 Suze: Do you take the money that they were paying towards 557 00:32:59,910 --> 00:33:04,630 Suze: the mortgage, and now they put that towards the credit 558 00:33:04,630 --> 00:33:09,040 Suze: card debt, and sooner than later they will be out 559 00:33:09,040 --> 00:33:12,349 Suze: of credit card debt. That is how I would do 560 00:33:12,349 --> 00:33:17,130 Suze: it if I were you and then be very careful 561 00:33:17,130 --> 00:33:20,920 Suze: about how they use that money in their 401k. 562 00:33:21,810 --> 00:33:26,030 Suze: And because I'm telling you it could be really difficult 563 00:33:26,030 --> 00:33:29,479 Suze: if they just take it all out. I would, however, 564 00:33:29,829 --> 00:33:33,020 Suze: take the money that's in the 401k and do an 565 00:33:33,020 --> 00:33:35,109 Suze: IRA roll over with it. 566 00:33:35,959 --> 00:33:39,650 Suze: And then maybe if they don't have a lot of income. 567 00:33:40,560 --> 00:33:43,800 Suze: Maybe just start converting some little by little to a 568 00:33:43,800 --> 00:33:48,229 Suze: Roth IRA if they're not gonna need it to live on. 569 00:33:48,839 --> 00:33:52,839 Suze: All right, KT, that's a wrap. What are you doing today? 570 00:33:54,270 --> 00:33:54,859 KT: Fishing 571 00:33:55,770 --> 00:34:00,869 Suze: You've been... KT, you have been fishing every single day. 572 00:34:01,119 --> 00:34:04,079 KT: I'm trying to catch something special and I haven't been 573 00:34:04,079 --> 00:34:04,670 KT: able to. 574 00:34:04,760 --> 00:34:05,689 Suze: And what is that 575 00:34:05,689 --> 00:34:06,250 Suze: KT? 576 00:34:06,439 --> 00:34:08,189 KT: A really nice tuna. 577 00:34:09,709 --> 00:34:14,209 Suze: That is why everybody every single morning she is out 578 00:34:14,209 --> 00:34:16,830 Suze: the door by 6 a.m. 579 00:34:17,418 --> 00:34:20,698 Suze: With Colo, I on the other hand can't go because 580 00:34:20,698 --> 00:34:23,698 Suze: somebody in the family has to work, but and she 581 00:34:23,698 --> 00:34:28,089 Suze: doesn't get back usually until when KT? 582 00:34:28,299 --> 00:34:31,618 KT: No, lately I've been going out very, very early, but 583 00:34:31,618 --> 00:34:34,178 KT: coming back midday, you know what the tides... 584 00:34:34,329 --> 00:34:34,618 Suze: Or 2 or 3 or 4... 585 00:34:34,585 --> 00:34:37,938 KT: The tides are 6 hours, everybody, so you fish a tide. 586 00:34:37,938 --> 00:34:41,937 Suze: Anyway, so you're gonna go do it again. 587 00:34:43,289 --> 00:34:44,078 Suze: Maybe I'll go with 588 00:34:44,079 --> 00:34:44,329 Suze: you. 589 00:34:44,408 --> 00:34:49,038 KT: Oh yes, when Suze comes, it's so lucky we catch, catch, catch, catch, 590 00:34:49,248 --> 00:34:52,368 Suze: All right, but until Sunday when I am going to 591 00:34:52,368 --> 00:34:56,589 Suze: do a Suze school to hopefully try to explain to 592 00:34:56,589 --> 00:35:01,218 Suze: all of you the difference between lump sum investing, dollar 593 00:35:01,218 --> 00:35:07,498 Suze: cost averaging investing, and value cost averaging investing, which Mr. 594 00:35:07,608 --> 00:35:10,127 Suze: Keith Fitzgerald taught me about. 595 00:35:10,750 --> 00:35:13,689 Suze: I hope that you will listen because it's really a 596 00:35:13,689 --> 00:35:14,629 Suze: fascinating thing. 597 00:35:14,689 --> 00:35:18,209 KT: I'll be there. I'll be there. And if I don't get, 598 00:35:18,489 --> 00:35:20,729 KT: if I don't understand what she's saying, I'm gonna ask 599 00:35:20,729 --> 00:35:24,399 KT: her to explain it again and if KT gets it, 600 00:35:24,489 --> 00:35:25,840 KT: all of you will get it. 601 00:35:27,770 --> 00:35:32,830 Suze: All right, so until Sunday there's really only one thing 602 00:35:32,830 --> 00:35:34,600 Suze: we want you to remember when it comes to your 603 00:35:34,600 --> 00:35:36,989 Suze: money and is what people first, 604 00:35:37,199 --> 00:35:39,770 KT: then then money then fishing then and things 605 00:35:39,770 --> 00:35:43,310 Suze: and things and if you do that you stay safe 606 00:35:43,310 --> 00:35:44,320 Suze: and strong. 607 00:35:45,320 --> 00:35:50,260 Suze: You will be KT wants to say it, unstoppable, but 608 00:35:50,260 --> 00:35:53,759 Suze: you all still will rise together. Bye-bye.