1 00:00:46,479 --> 00:00:52,080 Suze: August 29th, 2024. Welcome everybody to the Women and Money 2 00:00:52,090 --> 00:00:52,750 Suze: podcast 3 00:00:52,759 --> 00:00:54,580 KT: And everyone's smart enough to listen. 4 00:00:54,759 --> 00:00:58,880 Suze: Yes. And this is the ask Suze and 5 00:00:59,029 --> 00:01:01,790 KT: KT Anything, anything, anything, anything, 6 00:01:01,830 --> 00:01:05,399 Suze: edition. Now, if you want, you can send in a 7 00:01:05,410 --> 00:01:11,809 Suze: question to ask Suze Podcast at gmail.com. That's Suze. 8 00:01:12,430 --> 00:01:14,910 Suze: I know let's do our little cheer for them because 9 00:01:14,919 --> 00:01:18,449 Suze: I'm going to be on Telemundo September 5th and giving 10 00:01:18,459 --> 00:01:23,110 Suze: a talk there to especially the Latin American audience in 11 00:01:23,120 --> 00:01:24,899 Suze: Latin America, right? 12 00:01:24,910 --> 00:01:27,480 KT: But we have a cheer for everyone. She's going to 13 00:01:27,489 --> 00:01:33,849 KT: welcome the audience and tell them she is: SUZE (in Spanish) a which is, 14 00:01:35,860 --> 00:01:36,750 Suze: which is how you spell, 15 00:01:38,419 --> 00:01:40,910 Suze: say Suze in Spanish. I hope we have that right. 16 00:01:40,919 --> 00:01:47,120 Suze: So it's a soccer cheer, but also guess who's visiting right now. 17 00:01:47,129 --> 00:01:50,500 KT: My sister Lynn and her husband Tom were having a 18 00:01:50,510 --> 00:01:55,819 KT: delightful Labor Day weekend here on the island and it's 19 00:01:55,830 --> 00:01:59,050 KT: just been a really pleasant visit so far. We have 20 00:01:59,059 --> 00:02:00,989 KT: a few more days. To go and then back to 21 00:02:01,000 --> 00:02:01,910 KT: work everyone. 22 00:02:02,489 --> 00:02:04,319 Suze: But before we be 23 00:02:04,410 --> 00:02:08,600 Suze: again, KT, where you ask me questions, I just want 24 00:02:08,610 --> 00:02:13,279 Suze: to give everybody an update on the Suze story that 25 00:02:13,288 --> 00:02:16,630 Suze: I did last Sunday and the Peter story. And if 26 00:02:16,639 --> 00:02:20,168 Suze: you haven't listened to it, go back and listen to it. 27 00:02:20,179 --> 00:02:25,369 Suze: It's a really fascinating story. But where is Peter now? 28 00:02:25,380 --> 00:02:28,419 Suze: And what has happened? Well, let me give you all 29 00:02:28,429 --> 00:02:30,270 Suze: some great news. 30 00:02:30,960 --> 00:02:35,859 Suze: Just last night, I got an email from Peter 31 00:02:36,550 --> 00:02:41,550 Suze: and Peter essentially said, Suze, first of all, I just 32 00:02:41,559 --> 00:02:45,610 Suze: want you to know that I listened to the podcast 33 00:02:45,788 --> 00:02:49,008 Suze: and at the time, it kind of sounded like my 34 00:02:49,020 --> 00:02:52,929 Suze: kids were greedy. But let me tell you that's not 35 00:02:53,089 --> 00:02:59,100 Suze: the story anymore. What happened was an old family friend 36 00:02:59,179 --> 00:03:04,130 Suze: who the kids knew, my father in law, knew I 37 00:03:04,139 --> 00:03:04,809 Suze: knew 38 00:03:05,350 --> 00:03:10,258 Suze: sat down with all of us and talked about the 39 00:03:10,270 --> 00:03:14,789 Suze: wishes of their kids', grandfather and everything and everything is 40 00:03:14,800 --> 00:03:15,910 Suze: great now 41 00:03:16,419 --> 00:03:21,179 Suze: and the kids so generously have decided and it is 42 00:03:21,190 --> 00:03:24,279 Suze: the best way to do it is they will each 43 00:03:24,288 --> 00:03:28,889 Suze: give me quite a few $1000 every month to go 44 00:03:28,899 --> 00:03:33,080 Suze: towards my expenses. And if I need anything, I can 45 00:03:33,089 --> 00:03:36,660 Suze: come to them and we're all back together as a 46 00:03:36,669 --> 00:03:41,500 Suze: family when I wrote you that last email truthfully, it 47 00:03:41,509 --> 00:03:44,080 Suze: was a while ago and I was still in 48 00:03:44,154 --> 00:03:47,294 Suze: a state of shock which I still am having lost 49 00:03:47,304 --> 00:03:50,645 Suze: the love. Of my life. The kids were as well. 50 00:03:50,654 --> 00:03:55,445 Suze: But now bottom line we are all back together happily 51 00:03:55,455 --> 00:04:00,315 Suze: ever if and happily ever after. So see some stories 52 00:04:00,324 --> 00:04:04,774 Suze: end up just great. Peter, we are so, so happy 53 00:04:04,785 --> 00:04:07,865 Suze: for you because I know what a loving husband and 54 00:04:07,875 --> 00:04:11,774 Suze: a loving son in law you always have been. All right. 55 00:04:12,190 --> 00:04:14,820 KT: OK. Are we ready for our first question, Suze? 56 00:04:14,830 --> 00:04:16,440 Suze: You never know with you. Do you? 57 00:04:16,450 --> 00:04:20,609 KT: It's from Corrine ready? Good morning. I've been a follower 58 00:04:20,619 --> 00:04:24,359 KT: for years. I will be 60 in August. I have 59 00:04:24,369 --> 00:04:31,739 KT: 960,000 in my 401k. Mostly in high risk stock investments. Ok. 60 00:04:32,369 --> 00:04:36,190 KT: So Corrine lives in Connecticut. She said we've always wanted 61 00:04:36,200 --> 00:04:39,428 KT: to retire to Florida. My husband wants me to take 62 00:04:39,440 --> 00:04:42,649 KT: 300,000 out and buy a condo... 63 00:04:43,079 --> 00:04:44,729 Suze: Out of where? Out of her 401K? 64 00:04:44,738 --> 00:04:48,738 KT: I guess. Yes. Wait, let me finish which we would 65 00:04:48,750 --> 00:04:49,640 KT: use as a rent 66 00:04:50,709 --> 00:04:53,779 KT: and then obviously use it a couple of weeks themselves 67 00:04:53,790 --> 00:04:57,250 KT: out of the year. Then this is the clincher. Corinne 68 00:04:57,260 --> 00:05:00,808 KT: said it makes me nervous although I will have a 69 00:05:00,820 --> 00:05:04,880 KT: decent social security payment and Jim will have a pension 70 00:05:05,079 --> 00:05:10,059 KT: withdraw or not. That should be the question withdraw or 71 00:05:10,070 --> 00:05:11,980 KT: I would say definitely not. 72 00:05:12,500 --> 00:05:12,640 Suze: Corrine... 73 00:05:14,029 --> 00:05:15,200 KT: Not for a rental. 74 00:05:15,209 --> 00:05:17,980 Suze: Let me, let me just tell you something. All right, 75 00:05:18,690 --> 00:05:23,910 Suze: your husband could not be more wrong if he tried 76 00:05:24,209 --> 00:05:30,660 Suze: for you to withdraw $300,000 right? And buy a condo 77 00:05:31,260 --> 00:05:37,049 Suze: that $300,000 would be number one, totally taxable to you. 78 00:05:38,049 --> 00:05:42,820 Suze: Number two, if you're still working for this company, for 79 00:05:42,829 --> 00:05:45,940 Suze: you to withdraw it, you would have to take out 80 00:05:45,950 --> 00:05:50,299 Suze: a loan, you just can't withdraw that money because you're 81 00:05:50,309 --> 00:05:52,549 Suze: still working for that company. 82 00:05:52,970 --> 00:05:56,529 Suze: And then you would miss out on possibly some of 83 00:05:56,540 --> 00:06:01,589 Suze: the greatest growth over the years till you do retire. 84 00:06:01,600 --> 00:06:02,750 KT: And she's only 60. 85 00:06:02,760 --> 00:06:07,649 Suze: You're 60. Has your husband lost his mind to buy 86 00:06:07,660 --> 00:06:09,980 Suze: a condo in Florida 87 00:06:10,670 --> 00:06:16,049 Suze: where insurance is over the top condos are having incredible 88 00:06:16,059 --> 00:06:19,440 Suze: assessments right now to bring all the buildings up to date. 89 00:06:19,579 --> 00:06:23,779 Suze: That is the worst possible thing you could do. So 90 00:06:23,790 --> 00:06:28,519 Suze: withdraw or not. You tell your husband he is so denied. 91 00:06:28,630 --> 00:06:31,230 Suze: I cannot even tell you next question, KT. 92 00:06:31,238 --> 00:06:36,130 KT: Hey, this is from Britney. I inherited my dad's 401k 93 00:06:36,140 --> 00:06:38,808 KT: worth $150,000. 94 00:06:39,290 --> 00:06:43,700 KT: My financial advisor is suggesting I move the money into 95 00:06:43,709 --> 00:06:46,070 KT: a life insurance retirement plan 96 00:06:46,369 --> 00:06:50,428 KT: to avoid paying taxes when I get ready to withdraw. 97 00:06:50,678 --> 00:06:53,049 KT: Can you please help me, Suze? I'm not sure how 98 00:06:53,059 --> 00:06:58,118 KT: to maximize the potential of my inherited IRA. Is that a, 99 00:06:58,480 --> 00:07:00,980 KT: I'm looking at her face, bad decision. 100 00:07:00,988 --> 00:07:04,109 Suze: Did you just pick questions today that are gonna aggravate me? 101 00:07:04,119 --> 00:07:07,190 KT: No, but when I see Life insurance... 102 00:07:09,299 --> 00:07:13,739 Suze: Life insurance retirement plan. KT before I even answer this question, 103 00:07:14,059 --> 00:07:15,910 Suze: what do you think? 104 00:07:16,839 --> 00:07:19,890 KT: First of all, life insurance should never be purchased for 105 00:07:19,899 --> 00:07:22,329 KT: retirement where you go. 106 00:07:22,339 --> 00:07:26,190 Suze: That's not my question to you. What do you think 107 00:07:26,200 --> 00:07:27,820 Suze: the commission would be 108 00:07:28,480 --> 00:07:35,700 Suze: on 150,001 lump sum life insurance retirement plan for her 109 00:07:35,709 --> 00:07:37,320 Suze: financial advisor? 110 00:07:37,549 --> 00:07:38,619 KT: 10 grand? 111 00:07:38,779 --> 00:07:39,579 Suze: Guess again. 112 00:07:40,399 --> 00:07:41,769 KT: 15,000? 113 00:07:41,829 --> 00:07:49,019 Suze: It very probably would be at least $75,000. And then 114 00:07:49,029 --> 00:07:52,059 Suze: a few, it could be 100 and 50,000 some plans, 115 00:07:52,070 --> 00:07:55,820 Suze: but then two or 3% every year thereafter. That's the 116 00:07:55,829 --> 00:08:00,540 Suze: first thing. But Britney, you need to get a new 117 00:08:00,609 --> 00:08:02,700 Suze: financial advisor 118 00:08:03,019 --> 00:08:08,320 Suze: because first of all, you now have an inherited 401k 119 00:08:08,329 --> 00:08:15,119 Suze: plan worth $150,000. I'm not sure when you inherited it, 120 00:08:15,380 --> 00:08:19,559 Suze: but I'm going to assume that it is right now. 121 00:08:19,570 --> 00:08:23,130 Suze: Number one, chances are the best thing for you to 122 00:08:23,140 --> 00:08:28,359 Suze: do would be to roll it over into an inherited IRA. 123 00:08:29,339 --> 00:08:34,679 Suze: This question makes me decide absolutely. This coming Sunday, Suze 124 00:08:34,690 --> 00:08:39,609 Suze: school is going to be a master class on inherited 125 00:08:39,619 --> 00:08:45,080 Suze: IRAs especially pre-tax ones. You did not say that you 126 00:08:45,090 --> 00:08:51,359 Suze: inherited a Roth 401k. You said you inherited a 401k. 127 00:08:51,590 --> 00:08:56,640 Suze: That means if your father died now. 128 00:08:57,130 --> 00:09:01,679 Suze: All right, this year or any time from 2020 till now, 129 00:09:02,059 --> 00:09:06,770 Suze: you fall under the new rules of the Secure 2.0 Act, 130 00:09:07,260 --> 00:09:12,739 Suze: which is you are a non eligible designated beneficiary and 131 00:09:12,750 --> 00:09:17,228 Suze: you have 10 years to wipe this account, clean 132 00:09:17,750 --> 00:09:21,669 Suze: any money that you take out of this account will 133 00:09:21,679 --> 00:09:26,049 Suze: be absolutely taxed to you as ordinary income. There is 134 00:09:26,059 --> 00:09:30,869 Suze: no way in a million years that you can avoid 135 00:09:30,880 --> 00:09:34,159 Suze: paying tax on this. None. 136 00:09:34,440 --> 00:09:39,229 Suze: It's in a traditional 401k. Hey, if you took money 137 00:09:39,239 --> 00:09:42,598 Suze: out of this pay taxes and you put it into 138 00:09:42,609 --> 00:09:47,270 Suze: a life insurance retirement plan. Another story. But even then 139 00:09:47,640 --> 00:09:49,209 Suze: that would be the worst thing you could ever do 140 00:09:49,219 --> 00:09:51,829 Suze: on your money because the only reason that you get 141 00:09:51,840 --> 00:09:54,010 Suze: to take it out tax free then is you do 142 00:09:54,020 --> 00:09:57,150 Suze: it as a loan... worst investment you could ever 143 00:09:57,242 --> 00:10:05,353 Suze: make and impossible to avoid taxes on a traditional 401k. 144 00:10:05,372 --> 00:10:09,192 KT: She better invite that advisor to listen to Sunday, Suze 145 00:10:09,203 --> 00:10:11,343 KT: school and get it right. 146 00:10:11,352 --> 00:10:16,812 Suze: If your father had already been taking out his RMDs 147 00:10:17,533 --> 00:10:20,023 Suze: then you have to continue 148 00:10:20,116 --> 00:10:26,814 Suze: to take out RMDs based. It's just, uh, are you crazy? No, 149 00:10:26,825 --> 00:10:31,156 Suze: you cannot do this. Listen to Sunday's podcast upcoming and 150 00:10:31,166 --> 00:10:34,695 Suze: I will do it just in your honor. All right. 151 00:10:34,955 --> 00:10:35,695 Suze: All right. 152 00:10:36,035 --> 00:10:41,005 KT: Oh God. Yeah, it's amazing. Right. People don't understand, but 153 00:10:41,015 --> 00:10:42,885 KT: Suze's not a fan of um, 154 00:10:45,260 --> 00:10:45,890 KT: advisers that have... 155 00:10:46,309 --> 00:10:48,169 Suze: Just stay away from this person is... 156 00:10:48,479 --> 00:10:51,260 KT: Ok. Next question from Tamara. 157 00:10:51,940 --> 00:10:55,210 KT: Hi, Suze and KT. Huge. Thank you, Suze for all 158 00:10:55,219 --> 00:10:57,960 KT: your wisdom. I've been listening to your teachings and reading 159 00:10:57,969 --> 00:11:01,340 KT: your books since I was in my twenties. You ready? 160 00:11:01,619 --> 00:11:05,439 KT: She said I'm getting married in October, my partner and 161 00:11:05,450 --> 00:11:09,770 KT: I each have our own personal accounts, 401k. CDs . 162 00:11:09,780 --> 00:11:13,459 KT: She wrote all of hers are at Alliant, Yeah! And Wealth. 163 00:11:13,690 --> 00:11:18,020 KT: We also have a joint checking account for shared household expenses. 164 00:11:18,289 --> 00:11:21,369 KT: They're both women in their sixties. All right. So she's 165 00:11:21,380 --> 00:11:24,090 KT: been listening to you for a long time. They live 166 00:11:24,099 --> 00:11:28,059 KT: in Michigan and they're asking, do we have to change 167 00:11:28,070 --> 00:11:33,030 KT: our beneficiaries on our personal accounts after we are married? 168 00:11:33,599 --> 00:11:37,340 KT: So the question becomes um and I love that you're 169 00:11:37,349 --> 00:11:41,309 KT: gonna get married. Yeah, congratulations, girl. It's such a great 170 00:11:41,320 --> 00:11:44,650 KT: privilege to be able to do. So. Here's the question 171 00:11:44,659 --> 00:11:47,780 KT: though for you, Tamara, which is 172 00:11:48,369 --> 00:11:53,299 Suze: upon your death, would you want your spouse at that 173 00:11:53,309 --> 00:11:57,700 Suze: time to get the money that's in your CDs and 174 00:11:57,710 --> 00:12:01,859 Suze: other things? Or do you have enough money each of 175 00:12:01,869 --> 00:12:06,130 Suze: you that you then want to go to the current beneficiaries? 176 00:12:06,140 --> 00:12:10,280 Suze: Do you have to change the current beneficiaries? You absolutely 177 00:12:10,289 --> 00:12:10,940 Suze: do not. 178 00:12:11,690 --> 00:12:14,140 Suze: But you need to sit down and talk with each 179 00:12:14,150 --> 00:12:17,989 Suze: other and figure out what would happen if one of 180 00:12:18,000 --> 00:12:23,130 Suze: you were to die? Would the other be 100%? Ok. 181 00:12:23,190 --> 00:12:24,299 Suze: Normally 182 00:12:25,140 --> 00:12:29,390 Suze: it's the spouse is the one who is the primary beneficiary. 183 00:12:29,400 --> 00:12:32,049 Suze: If one of you dies, if both of you dies, 184 00:12:32,059 --> 00:12:35,190 Suze: then it could be the other beneficiaries who maybe you 185 00:12:35,200 --> 00:12:38,330 Suze: have now. But that's just a decision that the two 186 00:12:38,340 --> 00:12:42,049 Suze: of you have to make. But truthfully do you have to. No, 187 00:12:42,059 --> 00:12:44,250 Suze: you do not, but you may want to. 188 00:12:45,299 --> 00:12:48,280 KT: Now, this next one's really good. Everyone listen carefully... 189 00:12:49,390 --> 00:12:50,719 Suze: Wait KT - what's coming up for us? 190 00:12:51,690 --> 00:12:51,989 KT: Our anniversary. 191 00:12:52,070 --> 00:12:57,330 Suze: It made me think of that. September 8th, 2010, we were married in 192 00:12:57,340 --> 00:13:01,890 Suze: South Africa in Pretoria and that was before it was 193 00:13:01,900 --> 00:13:05,479 Suze: legal for any gay people to get 194 00:13:05,679 --> 00:13:10,109 Suze: married in America. And so that's coming up. Can you 195 00:13:10,119 --> 00:13:14,070 Suze: believe it? But you want to know what I really like. 196 00:13:14,359 --> 00:13:17,069 Suze: I get that it's been, it will be now 14 197 00:13:17,080 --> 00:13:18,669 Suze: years since we've been married... 198 00:13:18,679 --> 00:13:21,598 KT: But together 23 199 00:13:22,510 --> 00:13:25,069 Suze: 23, 24 years. I like that figure better. 200 00:13:25,080 --> 00:13:25,630 KT: Which one do you like better? 201 00:13:27,900 --> 00:13:29,030 Suze: Larger numbers. 202 00:13:30,590 --> 00:13:33,289 KT: I hope so. All right. Let me read this one. 203 00:13:33,299 --> 00:13:36,690 KT: This is important for everyone to listen because Patty got 204 00:13:36,700 --> 00:13:41,380 KT: it right. But she didn't listen carefully. This is important. Hi, 205 00:13:41,390 --> 00:13:45,669 KT: Suze and KT. I heard you say to get a credit 206 00:13:45,679 --> 00:13:49,409 KT: card for your adult child. Mine is 207 00:13:49,510 --> 00:13:53,289 KT: 24 but don't give it to them and they will 208 00:13:53,299 --> 00:13:58,039 KT: obtain my credit score. Now. She, so, so that's the 209 00:13:58,049 --> 00:13:58,940 KT: first part. 210 00:13:59,000 --> 00:14:01,809 Suze: Let me correct the first part I didn't say get 211 00:14:01,820 --> 00:14:04,900 Suze: your child a credit card. I said if you in 212 00:14:04,909 --> 00:14:09,950 Suze: fact have a great FICO score and you have credit 213 00:14:09,960 --> 00:14:14,478 Suze: cards and a great Fico score would be 760 or above. 214 00:14:14,489 --> 00:14:15,609 Suze: Hopefully above. 215 00:14:16,159 --> 00:14:20,539 Suze: And you put your child's name as an authorized user 216 00:14:20,549 --> 00:14:24,700 Suze: on all of your credit cards. Don't, don't give him 217 00:14:24,710 --> 00:14:27,299 Suze: the car. Don't even tell him that you did that. 218 00:14:27,469 --> 00:14:32,460 Suze: Your FICO score will help his FICO score tremendously. 219 00:14:32,469 --> 00:14:34,950 KT: So the next part of the question is, I love 220 00:14:34,960 --> 00:14:38,780 KT: this idea as my son's credit score isn't great, 221 00:14:39,190 --> 00:14:44,460 KT: but Suze will his poor choices. He's 24. Remember everyone 222 00:14:44,469 --> 00:14:48,700 KT: in his own finances affect my score at all? 223 00:14:49,280 --> 00:14:55,119 Suze: No, because he's an authorized user on your credit card. So 224 00:14:55,130 --> 00:14:58,200 Suze: anything he does on his own cards or in his 225 00:14:58,210 --> 00:15:02,599 Suze: life will not affect you at all. However, if you 226 00:15:02,609 --> 00:15:06,229 Suze: start to go downhill for whatever reason and your FICO 227 00:15:06,239 --> 00:15:07,979 Suze: score happens to go down, 228 00:15:08,330 --> 00:15:11,429 Suze: then it will affect his FICO score. So if that 229 00:15:11,440 --> 00:15:14,229 Suze: ever were to happen to you, take his name off 230 00:15:14,239 --> 00:15:16,929 Suze: as an authorized user. All right, KT. 231 00:15:16,940 --> 00:15:20,880 KT: So, Suze, next questions from Sarah. Hi, ladies. This is 232 00:15:20,890 --> 00:15:25,809 KT: yet another question about putting property in trust versus not. 233 00:15:26,289 --> 00:15:29,109 KT: I've heard you say time and time again that trusts 234 00:15:29,119 --> 00:15:30,049 KT: are the best, 235 00:15:30,380 --> 00:15:33,320 KT: but are they needed when it's only the house? 236 00:15:33,520 --> 00:15:34,020 Suze: Keep going. 237 00:15:34,979 --> 00:15:38,700 KT: I'm a 42 year old single mother of two and 238 00:15:38,710 --> 00:15:43,440 KT: my $550,000 house would be the only thing to go 239 00:15:43,450 --> 00:15:47,869 KT: to probate. If I passed, I live in North Carolina. 240 00:15:47,880 --> 00:15:51,080 KT: I do not have a trust for the house. So 241 00:15:51,090 --> 00:15:52,440 KT: the question is, 242 00:15:52,770 --> 00:15:55,780 KT: should she get a trust for, for her home? She 243 00:15:55,789 --> 00:15:58,049 KT: has two Children, single mom. 244 00:15:58,059 --> 00:16:00,880 Suze: She didn't say whether they were minors or not. But 245 00:16:00,890 --> 00:16:02,049 Suze: let me just give you, 246 00:16:02,059 --> 00:16:04,200 KT: I think so. She's only 42. 247 00:16:04,479 --> 00:16:08,309 Suze: So, but let me just give you an idea about 248 00:16:08,320 --> 00:16:14,969 Suze: your home truthfully if all you had was a home. Absolutely. 249 00:16:14,979 --> 00:16:18,469 Suze: It should be in a revocable trust. 250 00:16:18,809 --> 00:16:21,750 Suze: And let me just give you an idea about North 251 00:16:21,760 --> 00:16:25,929 Suze: Carolina because I happen to know about North Carolina. Let's 252 00:16:25,940 --> 00:16:28,799 Suze: say all you have obviously is a will and you're 253 00:16:28,809 --> 00:16:32,059 Suze: gonna leave that house to them via a will because 254 00:16:32,070 --> 00:16:34,650 Suze: that's probably what you're saying that you're gonna do. 255 00:16:35,609 --> 00:16:38,510 Suze: First of all, they're gonna have to go to probate court. 256 00:16:39,530 --> 00:16:44,419 Suze: The filing fees will just be $120 not a big deal, 257 00:16:44,729 --> 00:16:47,989 Suze: but the executor fees in North Carolina can be up 258 00:16:48,000 --> 00:16:52,380 Suze: to 5% of the real estate value, not the equity 259 00:16:52,390 --> 00:16:55,010 Suze: you have in it, but the value. So you 260 00:16:55,174 --> 00:16:59,234 Suze: say that the value of the house is worth 550,000. 261 00:16:59,294 --> 00:17:04,915 Suze: So that will be about $27,500 in executive fees, attorney fees, 262 00:17:04,925 --> 00:17:08,314 Suze: some attorneys to do this for you could charge by 263 00:17:08,324 --> 00:17:11,525 Suze: the hour, but some have a flat fee. So their 264 00:17:11,535 --> 00:17:16,094 Suze: flat fee could be anywhere from 2000 to 10,000. So 265 00:17:16,104 --> 00:17:19,714 Suze: you can figure out in the state of North Carolina 266 00:17:20,239 --> 00:17:24,269 Suze: that probate fees will be anywhere from 3 to 7% 267 00:17:24,279 --> 00:17:27,749 Suze: of the home's value. So in your case, it could 268 00:17:27,759 --> 00:17:35,869 Suze: be anywhere from $16,500 about all the way up to $38,500. 269 00:17:36,890 --> 00:17:38,040 Suze: I don't know. 270 00:17:39,400 --> 00:17:41,619 Suze: I don't know. Do you think it's worth maybe an 271 00:17:41,630 --> 00:17:44,699 Suze: hour or so of your time to get a revocable 272 00:17:44,709 --> 00:17:48,430 Suze: trust and put it in trust. Go to must have 273 00:17:48,520 --> 00:17:53,229 Suze: docs.com and take a look at the four must have 274 00:17:53,239 --> 00:17:56,520 Suze: documents that are offered there that you can do at 275 00:17:56,530 --> 00:17:57,390 Suze: your home 276 00:17:57,660 --> 00:18:00,718 Suze: and it will be a whole lot less than 16,000 277 00:18:00,729 --> 00:18:04,349 Suze: or $38,000. Trust me on that one and you don't 278 00:18:04,359 --> 00:18:07,979 Suze: waste all that time. It just, it's, I don't know 279 00:18:07,989 --> 00:18:12,280 Suze: why there is such confusion over this when it's so 280 00:18:12,290 --> 00:18:16,239 Suze: easy to do a revocable trust, especially with the 281 00:18:16,425 --> 00:18:17,805 Suze: to have docs. All right. 282 00:18:17,814 --> 00:18:21,744 KT: Next question, Suze is from Tanya. I'm 51 and my 283 00:18:21,755 --> 00:18:28,285 KT: Roth IRA 90,000 consists mainly of stocks, ETFs and mutual funds. 284 00:18:28,295 --> 00:18:30,944 KT: I have a bit in CDs that will mature later 285 00:18:30,954 --> 00:18:35,004 KT: this year. CDs are around 5%. My question is 286 00:18:35,349 --> 00:18:39,290 KT: at my age. Should I have more in CDs than 287 00:18:39,300 --> 00:18:40,819 KT: in other assets? 288 00:18:40,900 --> 00:18:41,819 Suze: How old is she? 289 00:18:42,040 --> 00:18:42,989 KT: 51? 290 00:18:43,339 --> 00:18:47,270 Suze: No way, girlfriend. What you want is these still are 291 00:18:47,280 --> 00:18:51,030 Suze: your growing years that you don't want more in CDs. 292 00:18:51,349 --> 00:18:54,280 Suze: Interest rates on CDs will be going down and down, 293 00:18:54,290 --> 00:18:57,149 Suze: in my opinion. I don't know how far but, 294 00:18:57,390 --> 00:19:01,389 Suze: but no, continue to invest dollar cost average in stocks, 295 00:19:01,400 --> 00:19:03,479 Suze: ETFs and mutual funds. All right. 296 00:19:03,660 --> 00:19:06,849 KT: So this question, I don't know if you have the answer, Suze, 297 00:19:06,859 --> 00:19:09,530 KT: but it's a pretty good question. No. Listen to it. 298 00:19:09,540 --> 00:19:14,260 KT: My credit monitoring service notified me. No, you might not 299 00:19:14,270 --> 00:19:17,369 KT: have the answer to this. Let me, let me ask you. 300 00:19:17,660 --> 00:19:21,089 KT: I was curious, don't this is from Pat. 301 00:19:21,760 --> 00:19:26,079 KT: My credit monitoring service notified me that my social security 302 00:19:26,089 --> 00:19:31,188 KT: number was found on the dark web and even provided 303 00:19:31,199 --> 00:19:34,339 KT: a name and address of a person using my social 304 00:19:34,349 --> 00:19:35,479 KT: security number. 305 00:19:35,810 --> 00:19:39,780 KT: But Pat was smart. She checked her SSA earnings and 306 00:19:39,790 --> 00:19:44,550 KT: nothing has been added. All three credit bureau reports are 307 00:19:44,560 --> 00:19:49,439 KT: always frozen until I check my score annually. What further 308 00:19:49,449 --> 00:19:51,329 KT: action can I take, Suze? 309 00:19:51,770 --> 00:19:54,640 Suze: Well, if they have the name and everybody using this, 310 00:19:54,650 --> 00:19:57,609 Suze: you could go to the, you know, police or somebody 311 00:19:57,619 --> 00:20:00,310 Suze: and file a complaint against that person 312 00:20:00,709 --> 00:20:03,900 Suze: and everything. But the truth of the matter is the 313 00:20:03,910 --> 00:20:06,890 Suze: number one thing everybody should do today and I don't 314 00:20:06,900 --> 00:20:10,139 Suze: care who you are is you should freeze all of 315 00:20:10,150 --> 00:20:14,688 Suze: your credit reports, contact them, do whatever but freeze them. 316 00:20:14,829 --> 00:20:15,819 Suze: What that means? 317 00:20:16,010 --> 00:20:19,609 Suze: However, is that you are locked out of them as well. 318 00:20:19,770 --> 00:20:22,800 Suze: You wanna check your FICO score, you have to unfreeze 319 00:20:22,810 --> 00:20:25,540 Suze: your report. It will take you 10 seconds to do. 320 00:20:25,550 --> 00:20:29,520 Suze: So after you've checked your credit reports or your FICO scores, 321 00:20:29,530 --> 00:20:34,000 Suze: you freeze it again. The second thing I would do. Absolutely, 322 00:20:34,010 --> 00:20:37,619 Suze: I would do is I would make sure that on 323 00:20:37,630 --> 00:20:42,520 Suze: all your passwords that you have double verification 324 00:20:43,349 --> 00:20:46,079 Suze: that you just don't put in your password and then 325 00:20:46,089 --> 00:20:49,380 Suze: you get to get online or do something that you 326 00:20:49,390 --> 00:20:53,079 Suze: put in your password, they send you a double verification 327 00:20:53,089 --> 00:20:58,199 Suze: to your phone number or somewhere and that you verify. Yes, 328 00:20:58,209 --> 00:20:59,500 Suze: this is you 329 00:21:00,020 --> 00:21:03,500 Suze: that you actually make sure that you have credit cards 330 00:21:03,680 --> 00:21:07,550 Suze: that every time you make a charge, they send a 331 00:21:07,560 --> 00:21:12,209 Suze: text to you saying you just made this charge. So 332 00:21:12,219 --> 00:21:14,489 Suze: you know that that was you, if all of a 333 00:21:14,500 --> 00:21:17,420 Suze: sudden you get a text saying you just charge something 334 00:21:17,430 --> 00:21:21,219 Suze: at XYZ, you know, you've been hacked. Those are a 335 00:21:21,229 --> 00:21:24,510 Suze: few of the things that you can do and I 336 00:21:24,520 --> 00:21:28,709 Suze: would not just check my credit report once a year. 337 00:21:29,140 --> 00:21:33,400 Suze: I would check my credit report in these times in 338 00:21:33,410 --> 00:21:37,319 Suze: these times where if you think about it, everybody, these 339 00:21:37,329 --> 00:21:40,819 Suze: hackers can hack into the government, they can hack into 340 00:21:40,829 --> 00:21:44,369 Suze: the credit card companies. They can hack everything today. I 341 00:21:44,380 --> 00:21:47,640 Suze: don't think anything is really protected anymore. 342 00:21:47,949 --> 00:21:50,810 Suze: I'm so sorry to say I would check my credit 343 00:21:50,819 --> 00:21:55,319 Suze: report once every three months. It doesn't take much time, 344 00:21:55,329 --> 00:21:59,329 Suze: but I would keep track of everything big time. 345 00:22:00,219 --> 00:22:03,629 KT: Yeah. Well, wait, Suze, what about all those credit monitoring 346 00:22:03,640 --> 00:22:06,910 KT: companies and reports that you can get to protect your score? 347 00:22:07,829 --> 00:22:11,390 Suze: The problem with those is that they don't play offense, 348 00:22:11,619 --> 00:22:18,079 Suze: they play defense. So once you have already been damaged, right, 349 00:22:18,089 --> 00:22:21,390 Suze: then they go in to help you restore credit and 350 00:22:21,400 --> 00:22:26,670 Suze: everything like that, but they cannot prevent you right from 351 00:22:26,680 --> 00:22:27,510 Suze: doing that. 352 00:22:28,400 --> 00:22:30,900 Suze: So do they play defense? They play offense. 353 00:22:30,949 --> 00:22:34,489 KT: I know that it took my sister Barbara three years 354 00:22:35,050 --> 00:22:39,500 KT: to restore her name. Credit everything from being stolen. 355 00:22:39,579 --> 00:22:43,219 Suze: So maybe, you know, they can help you and move 356 00:22:43,229 --> 00:22:48,060 Suze: that along quicker but they can't prevent you, KT from it happening. 357 00:22:48,189 --> 00:22:51,589 Suze: All right. Go on. Also. Everybody. I would change your 358 00:22:51,599 --> 00:22:57,000 Suze: passwords constantly on all your accounts and your email account, 359 00:22:57,010 --> 00:22:57,729 Suze: your Facebook, 360 00:22:57,824 --> 00:23:01,244 Suze: all of that. I would change. Why are you laughing? 361 00:23:01,255 --> 00:23:04,324 KT: Because Suze does that to me all the time. Everybody. 362 00:23:04,334 --> 00:23:07,645 KT: So we have, she, I know her password. She knows mine. 363 00:23:07,655 --> 00:23:10,494 KT: She goes in, she changes it when I go online 364 00:23:10,655 --> 00:23:13,864 KT: and then I call our office in, in California. I 365 00:23:13,875 --> 00:23:17,364 KT: say I've been hacked. I can't get in and Suze 366 00:23:17,375 --> 00:23:20,204 KT: says no, KT, it's now this password. 367 00:23:20,829 --> 00:23:23,290 KT: She does it to me all the time, but it's good. 368 00:23:23,300 --> 00:23:25,719 Suze: And I would be very, by the way, I would 369 00:23:25,729 --> 00:23:29,780 Suze: be very careful about emails and texts that you send 370 00:23:29,790 --> 00:23:32,609 Suze: people that have very vital information. 371 00:23:32,619 --> 00:23:36,170 KT: This is, I have a few emails here, Suze that 372 00:23:36,180 --> 00:23:37,569 KT: are the same issue. 373 00:23:37,849 --> 00:23:41,790 KT: Listen to this. Hi, Suze and KT. I invest in my 374 00:23:41,800 --> 00:23:46,310 KT: employer's 401k and Roth. I'm 60 years old. I've been 375 00:23:46,319 --> 00:23:50,429 KT: working for 15 years with this company and also rolled 376 00:23:50,439 --> 00:23:54,859 KT: over my old 401k from my old employer. I have 377 00:23:54,869 --> 00:23:57,459 KT: about $389,000 378 00:23:57,895 --> 00:24:02,833 KT: the company that my employer uses for 401k, sends me 379 00:24:02,844 --> 00:24:07,425 KT: messages all the time to apply for investment help for 380 00:24:07,435 --> 00:24:11,454 KT: a fee to help grow my portfolio. Is it worth it? 381 00:24:11,734 --> 00:24:11,905 Suze: No. 382 00:24:11,915 --> 00:24:13,854 KT: Well, wait, wait, wait, this is the next one. 383 00:24:13,864 --> 00:24:14,584 Suze: Let me answer that. 384 00:24:14,594 --> 00:24:17,194 KT: Hold on. No. Listen to this one. Same thing. 385 00:24:17,489 --> 00:24:20,849 KT: Should I move my old 401k to my new job 386 00:24:20,859 --> 00:24:25,170 KT: or to an IRA? I have a financial advisor that 387 00:24:25,180 --> 00:24:28,040 KT: wants me to move it under her control and she'll 388 00:24:28,050 --> 00:24:31,079 KT: charge me only 1.5%. 389 00:24:31,400 --> 00:24:34,469 Suze: Both of those questions. And let me tell you why. 390 00:24:34,829 --> 00:24:39,389 Suze: All right, normally within a 401k, there aren't a whole 391 00:24:39,400 --> 00:24:41,339 Suze: lot of options for you to pick. 392 00:24:41,760 --> 00:24:45,699 Suze: And truthfully if you just pick at this point in time, 393 00:24:45,709 --> 00:24:48,770 Suze: like a Standard and Poor's 500 index fund, maybe a 394 00:24:48,780 --> 00:24:52,099 Suze: bond fund, whatever it may be, you'll be fine. But 395 00:24:52,109 --> 00:24:54,899 Suze: here's the thing, the reason that you want to keep 396 00:24:54,910 --> 00:24:56,739 Suze: money in a 401k 397 00:24:57,069 --> 00:25:01,250 Suze: is that if you happen to leave service at the 398 00:25:01,260 --> 00:25:05,069 Suze: age of 55 or older, you can get any money 399 00:25:05,079 --> 00:25:10,400 Suze: that is in a 401k without the 10% penalty, you 400 00:25:10,410 --> 00:25:13,569 Suze: roll it to an IRA, then you have to be 401 00:25:13,579 --> 00:25:19,530 Suze: 59.5 to be able to take money out without that 10% penalty. 402 00:25:19,770 --> 00:25:23,449 Suze: So either way it's gonna be ordinary income taxes. And 403 00:25:23,459 --> 00:25:26,989 Suze: so also I don't know how much money you make. 404 00:25:27,010 --> 00:25:29,510 Suze: But if you happen to make a lot of money 405 00:25:29,520 --> 00:25:33,219 Suze: and you want to do a backdoor Roth IRA. You 406 00:25:33,229 --> 00:25:37,869 Suze: cannot have an IRA of any kind and do a 407 00:25:37,880 --> 00:25:40,780 Suze: backdoor Roth when it makes sense. So, can you just 408 00:25:40,790 --> 00:25:43,409 Suze: leave your money in your 401? Ks and given that 409 00:25:43,420 --> 00:25:47,349 Suze: it's in a 401k? You don't need financial advice. All right. 410 00:25:47,449 --> 00:25:49,349 Suze: What else? You got it? All right. 411 00:25:49,719 --> 00:25:55,229 Suze: So, guess what time it is? KT quizzy time! Do you 412 00:25:55,239 --> 00:25:56,139 Suze: have a good feeling? 413 00:25:56,849 --> 00:25:59,780 KT: I, I always have a good, I always have a 414 00:25:59,790 --> 00:26:03,640 KT: good feeling about quizzy time and I'm always positive and 415 00:26:03,650 --> 00:26:06,150 KT: I always, I'm waiting for the ding, ding, ding. So 416 00:26:06,160 --> 00:26:07,030 KT: go for it. 417 00:26:07,489 --> 00:26:09,198 Suze: That's what I like to hear it. 418 00:26:10,770 --> 00:26:13,319 KT: So this isn't just for me, by the way, it's 419 00:26:13,329 --> 00:26:14,619 KT: for everyone listening. 420 00:26:14,780 --> 00:26:19,290 Suze: So before you take a second, because the reason we 421 00:26:19,300 --> 00:26:22,989 Suze: do these quizzes is though that you all should be 422 00:26:23,000 --> 00:26:25,459 Suze: able to answer it. So, are you all ready to 423 00:26:25,469 --> 00:26:27,239 Suze: answer this question? 424 00:26:27,959 --> 00:26:31,020 Suze: Hello, KT and Suze. I love your show and listen 425 00:26:31,030 --> 00:26:34,359 Suze: all the time. I have a question on home repairs. 426 00:26:34,369 --> 00:26:37,859 Suze: My house needs a new roof and some indoor repairs. 427 00:26:38,010 --> 00:26:42,339 Suze: I got a quote and the handyman said about 13,000 total. 428 00:26:42,579 --> 00:26:47,170 Suze: Here are my details. I have 6000 in the bank total. 429 00:26:47,410 --> 00:26:51,119 Suze: My credit score is in the eight hundreds. Hopefully that 430 00:26:51,130 --> 00:26:53,250 Suze: is a fight. Go score. All right. 431 00:26:53,709 --> 00:26:58,650 Suze: I have about $100,000 left on the mortgage and 7000 432 00:26:58,660 --> 00:27:03,290 Suze: on the car loan, which is at 2.9%. Very little 433 00:27:03,300 --> 00:27:07,810 Suze: other than that 1000 on a credit card. I don't 434 00:27:07,819 --> 00:27:11,890 Suze: have enough for the repairs. Should I get a HELOC, 435 00:27:11,900 --> 00:27:16,250 Suze: a home equity line of credit or a second mortgage 436 00:27:16,260 --> 00:27:21,089 Suze: or use my cash? Think about it, KT. Let others 437 00:27:21,099 --> 00:27:21,890 Suze: think about it. 438 00:27:22,415 --> 00:27:26,474 Suze: What would you do in Yasmin's situation? 439 00:27:26,665 --> 00:27:30,444 KT: All right. None of the above, none. 440 00:27:30,454 --> 00:27:33,155 Suze: None of the above none? 441 00:27:33,165 --> 00:27:37,314 KT: Nope Yasmin. I wouldn't do any of those suggestions. 442 00:27:37,324 --> 00:27:38,313 Suze: What would you do? 443 00:27:38,805 --> 00:27:41,435 KT: Well, she had, there's a little secret in here what 444 00:27:41,444 --> 00:27:44,535 KT: she said she has a very high credit score. So, 445 00:27:44,545 --> 00:27:48,655 KT: if I were Yasmin, I would absolutely put that repair 446 00:27:48,665 --> 00:27:50,114 KT: on my credit card. 447 00:27:50,849 --> 00:27:53,390 Suze: Yes. But how is she gonna pay the person who 448 00:27:53,400 --> 00:27:58,209 Suze: does it? No, seriously, KT. So the items that this 449 00:27:58,219 --> 00:28:01,599 Suze: person has to buy for this, maybe she can put 450 00:28:01,609 --> 00:28:05,909 Suze: on her credit card. But you have to take into consideration. 451 00:28:05,920 --> 00:28:09,270 Suze: How does she pay for him or her? So, 452 00:28:10,199 --> 00:28:11,640 Suze: ding, ding, ding, ding, ding. 453 00:28:12,459 --> 00:28:14,719 KT: So you agree? Don't do any of the above that 454 00:28:14,729 --> 00:28:15,699 KT: she wants to do? 455 00:28:15,709 --> 00:28:19,640 Suze: Well, wait, listen to me, which is she has a 456 00:28:19,650 --> 00:28:23,540 Suze: credit card that has about $1000 on it. I would 457 00:28:23,550 --> 00:28:25,639 Suze: absolutely just leave that credit card alone. 458 00:28:26,400 --> 00:28:26,630 Suze: And what I would do is, given that she has an 800 FICO score, and hopefully it is a FICO score, I would look into getting a new credit card that allows you to make new purchases and gives you a period of time on those new purchases to pay zero percent. 459 00:29:02,199 --> 00:29:06,949 Suze: Then they would also allow you to do a balance transfer from another credit card if you needed to for 0 percent for 21 months. But balance transfers can cost anywhere from 3 to 5 percent to transfer a balance. So why not get a credit card that's a zero percent for 12 months, 15 months or whatever it is, and put all the material that needs to be purchased for this repair on that credit card. So that's what I would do there. What scares me, Yasmin is that the handyman said 460 00:29:07,400 --> 00:29:14,339 Suze: about $13,000. 1st of all, if your house needs a 461 00:29:14,349 --> 00:29:19,540 Suze: new roof, a handyman should not be the person putting 462 00:29:19,550 --> 00:29:26,810 Suze: on a new roof, a roofing company that guarantees the roof. 463 00:29:27,030 --> 00:29:29,959 Suze: And there are all different techniques now that a roof 464 00:29:29,969 --> 00:29:33,530 Suze: can be repaired, doesn't need to be replaced before you 465 00:29:33,540 --> 00:29:37,180 Suze: just take that one quote from a handyman. 466 00:29:37,650 --> 00:29:40,400 Suze: You need to do, only do a new roof with 467 00:29:40,410 --> 00:29:44,170 Suze: a company that guarantees its work number one 468 00:29:44,880 --> 00:29:48,260 Suze: and you need to know that anything that you do. 469 00:29:48,550 --> 00:29:54,180 Suze: If somebody says 13,000, it's gonna end up as 20,000 470 00:29:54,189 --> 00:29:59,099 Suze: or possibly even more. So you really need to think 471 00:29:59,109 --> 00:30:02,459 Suze: about that. You need to be able to break out 472 00:30:02,550 --> 00:30:05,900 Suze: what is the labor cost and what is the material cost? 473 00:30:05,910 --> 00:30:09,780 Suze: The materials go on your credit card, labor, believe it 474 00:30:09,790 --> 00:30:10,500 Suze: or not, 475 00:30:11,209 --> 00:30:14,290 Suze: maybe you're going to have to use the $6000 that 476 00:30:14,300 --> 00:30:17,790 Suze: you have in the bank for that because you can 477 00:30:17,800 --> 00:30:20,349 Suze: always take out a home equity line of credit if 478 00:30:20,359 --> 00:30:23,609 Suze: you need it, but not yet. Not now, not at 479 00:30:23,619 --> 00:30:26,660 Suze: these interest rates. There you go. 480 00:30:27,349 --> 00:30:27,569 Suze: (sighs) 481 00:30:28,250 --> 00:30:32,079 KT: You see so much about roofers and getting guarantees and 482 00:30:32,089 --> 00:30:33,560 KT: we've had that experience. 483 00:30:33,569 --> 00:30:36,489 Suze: You know what's funny, KT is sometimes when you're in 484 00:30:36,500 --> 00:30:41,089 Suze: a situation like Yasmin, the question has to be asked 485 00:30:41,099 --> 00:30:42,040 Suze: and answered 486 00:30:42,510 --> 00:30:47,760 Suze: is this about time that maybe Yasmin sells the house 487 00:30:47,959 --> 00:30:52,729 Suze: and either downsizes or does something else. Right? Because when 488 00:30:52,739 --> 00:30:56,619 Suze: you're cutting it this tight at this point because I'm 489 00:30:56,630 --> 00:31:00,369 Suze: reading the breast of this email, she's 62 years old 490 00:31:00,380 --> 00:31:01,530 Suze: and still working, 491 00:31:01,819 --> 00:31:05,560 Suze: but she doesn't really know for how long. Right. I'd 492 00:31:05,569 --> 00:31:09,400 Suze: be very careful at this point. I would probably think 493 00:31:09,410 --> 00:31:15,459 Suze: about downsizing into something that you could really, really afford truthfully. 494 00:31:15,469 --> 00:31:19,180 Suze: All right, KT, guess what? That's it. We don't have 495 00:31:19,189 --> 00:31:20,359 Suze: to labor anymore. 496 00:31:20,569 --> 00:31:24,959 KT: Hey, Suze, let's wish everyone a great Labor Day weekend. 497 00:31:25,130 --> 00:31:28,130 KT: Hopefully some barbecues going on a lot of fun at 498 00:31:28,140 --> 00:31:31,000 KT: the beach. And before you know, it 499 00:31:31,719 --> 00:31:33,750 KT: fall is around the corner. 500 00:31:33,760 --> 00:31:37,339 Suze: Yes. And for all of you, no matter what your 501 00:31:37,349 --> 00:31:41,729 Suze: situation is, just know that there's only one thing that 502 00:31:41,739 --> 00:31:44,290 Suze: matters when it comes to your money and it is 503 00:31:44,300 --> 00:31:45,349 Suze: what KT? 504 00:31:45,359 --> 00:31:48,469 KT: People first, then money, then things. 505 00:31:48,530 --> 00:31:52,869 Suze: And if you live your life like that and you 506 00:31:52,880 --> 00:31:59,430 Suze: stay safe and stay healthy, you will be unstoppable.