1 00:00:08,460 --> 00:00:13,000 KT: Hi everyone. Welcome to the Women and Money podcast, and everyone, 2 00:00:13,420 --> 00:00:15,859 KT: everyone smart enough to listen. This is, 3 00:00:16,020 --> 00:00:16,190 Suze: What's the date? 4 00:00:16,190 --> 00:00:17,979 KT: Wait, this is KT in the house. 5 00:00:18,200 --> 00:00:18,860 Suze: They know it's you. 6 00:00:19,020 --> 00:00:23,360 KT: There's a reason why I'm opening this. Today is July 19th... 2026. 7 00:00:26,219 --> 00:00:27,874 Suze: Did you get stumped there for a second? 8 00:00:27,874 --> 00:00:31,200 KT: I did, because I'm realizing how old I am. July 19th, 9 00:00:31,420 --> 00:00:35,040 KT: and in a few days it will be my 74th birthday. 10 00:00:35,139 --> 00:00:37,979 Suze: That's on July 21st. So what do you got? 11 00:00:38,299 --> 00:00:39,860 KT: I have something for all of you. 12 00:00:40,264 --> 00:00:43,365 KT: I have a gift for all of you. On today, 13 00:00:43,595 --> 00:00:48,223 KT: July 19th, Hay House will be offering as a special 14 00:00:48,223 --> 00:00:50,865 KT: birthday pricing in honor of me because 15 00:00:50,865 --> 00:00:52,854 Suze: I know she gets jealous when I do it. 16 00:00:52,935 --> 00:00:55,424 KT: Yeah, plus you, you're gonna save a dollar, everyone. 17 00:00:56,869 --> 00:00:58,759 Suze: Mine was at $75. All right, go on. 18 00:00:58,959 --> 00:01:03,720 KT: The must-have documents will be available for anyone that needs 19 00:01:03,720 --> 00:01:08,339 KT: them and doesn't have them from today, July 19th through 20 00:01:08,680 --> 00:01:16,269 KT: July 21st, midnight Pacific time. They are $74 and that 21 00:01:16,269 --> 00:01:18,839 KT: is an incredible price because right now you have to 22 00:01:18,839 --> 00:01:19,919 KT: pay $153. 23 00:01:20,339 --> 00:01:22,669 KT: Suze's were 75. 24 00:01:23,019 --> 00:01:25,800 Suze: So wait, let me just step in here for one second. 25 00:01:26,059 --> 00:01:30,050 Suze: For those of you who don't know, the must-have documents 26 00:01:30,050 --> 00:01:34,849 Suze: are documents you must have. They are a will, a 27 00:01:34,849 --> 00:01:37,940 Suze: living revocable trust, an advanced directive, a durable power of 28 00:01:37,940 --> 00:01:41,620 Suze: attorney for healthcare, a financial power of attorney, and you 29 00:01:41,620 --> 00:01:44,018 Suze: can change them as often as you want. 30 00:01:44,489 --> 00:01:47,559 Suze: There's Suze Shareware, so what does that mean? Well, these 31 00:01:47,559 --> 00:01:50,889 Suze: will be KT Shareware. All right, you can share it 32 00:01:50,889 --> 00:01:54,639 Suze: with any of your family members, anytime there is an update, 33 00:01:54,889 --> 00:01:58,239 Suze: you get it for free, and on and on and 34 00:01:58,239 --> 00:02:02,459 Suze: on again, $2,500 worth of state of the art documents, 35 00:02:02,489 --> 00:02:05,250 Suze: good in all 50 states. 36 00:02:05,919 --> 00:02:09,240 Suze: So what that means everybody is to get this incredible 37 00:02:09,240 --> 00:02:19,440 Suze: B-Day offer. Please go to musthave docs.com, that's DOCS.com/birthday. If 38 00:02:19,440 --> 00:02:23,978 Suze: you don't put slash birthday, you aren't gonna get birthday pricing. 39 00:02:25,029 --> 00:02:28,110 Suze: All right, now, this is the Ask KT and Suze 40 00:02:28,110 --> 00:02:32,809 Suze: Anything edition. As you know, we are taking the summer off, 41 00:02:33,250 --> 00:02:38,049 Suze: so to speak, so on Thursdays, Robert will drop a 42 00:02:38,050 --> 00:02:41,990 Suze: best of Suze School or whatever he feels is appropriate. 43 00:02:42,169 --> 00:02:47,449 Suze: On Sundays we drop a new podcast. Sometimes it's Ask 44 00:02:47,449 --> 00:02:51,288 Suze: KT and Suze Anything. Sometimes, like last week, it was 45 00:02:51,288 --> 00:02:55,050 Suze: a serious Suze School. So it just depends on what's 46 00:02:55,050 --> 00:02:56,809 Suze: happening out there. What do you got for me, sweetheart? 47 00:02:57,119 --> 00:02:59,610 KT: So, based on what she just told you on the 48 00:02:59,610 --> 00:03:02,089 KT: community board, Roz sent in 49 00:03:02,470 --> 00:03:07,880 KT: a question after listening to last Sunday's Suze School, which 50 00:03:07,880 --> 00:03:12,399 KT: was a master class on the solo 401k versus the 51 00:03:12,399 --> 00:03:13,649 KT: SEP IRA. 52 00:03:13,960 --> 00:03:15,240 Suze: So did you listen to it? 53 00:03:15,320 --> 00:03:18,500 KT: I did. And Suze, all I can say to all 54 00:03:18,500 --> 00:03:22,220 KT: of you that haven't listened, listen up and listen, especially 55 00:03:23,000 --> 00:03:25,320 KT: to the part where it says two hats are better 56 00:03:25,320 --> 00:03:26,029 KT: than one. 57 00:03:26,080 --> 00:03:26,779 Suze: Oh, you liked that? 58 00:03:26,860 --> 00:03:28,198 KT: Yes, I did. I loved it. 59 00:03:29,119 --> 00:03:30,470 KT: And it pertained to me. 60 00:03:30,600 --> 00:03:31,309 Suze: All right, go on. 61 00:03:31,410 --> 00:03:34,009 KT: I was pretty much self-employed for a good part of my life. 62 00:03:34,830 --> 00:03:36,529 Suze: What is the question you have in front of you? 63 00:03:37,039 --> 00:03:40,929 KT: Ok, question from Roz. So where does the Roth IRA 64 00:03:40,929 --> 00:03:45,130 KT: fit in? Can both the SEP IRA and the solo 65 00:03:45,130 --> 00:03:50,770 KT: 401k people also contribute to their Roth IRA? 66 00:03:51,080 --> 00:03:52,850 Suze: Oh, so you picked this up from the Women and 67 00:03:52,850 --> 00:03:55,880 Suze: Money Community app. Well, that's good on you. 68 00:03:56,509 --> 00:04:00,509 Suze: Anyway, listen, everybody, there is an app called Women and Money. 69 00:04:00,789 --> 00:04:04,110 Suze: Go to Apple Apps or Google Play, and there's a 70 00:04:04,110 --> 00:04:07,910 Suze: community there that really helps one another out. I've stopped 71 00:04:07,910 --> 00:04:12,550 Suze: answering questions on that site, because there are imposters that 72 00:04:12,550 --> 00:04:14,309 Suze: pretend that they're me. 73 00:04:15,289 --> 00:04:18,440 Suze: So therefore, just know I'm not going to answer, and 74 00:04:18,440 --> 00:04:20,969 Suze: if I do, maybe it's a yes or a no, 75 00:04:21,209 --> 00:04:25,440 Suze: but I never invite you to go offline with me 76 00:04:25,440 --> 00:04:29,529 Suze: and answer questions. So be very, very careful. Also, I 77 00:04:29,529 --> 00:04:34,029 Suze: just have to say I never take individual appointments. 78 00:04:34,480 --> 00:04:40,190 Suze: I never do individual consultations where I invite that for you. 79 00:04:40,678 --> 00:04:44,149 Suze: Sometimes if you've just lost a spouse or something, we'll 80 00:04:44,149 --> 00:04:47,640 Suze: get together, but you'll know it's me when we do it. 81 00:04:47,720 --> 00:04:49,238 Suze: You don't have to doubt it. 82 00:04:49,720 --> 00:04:53,599 Suze: So, Roz, this one's very, very simple. Yes, you can 83 00:04:53,600 --> 00:04:57,859 Suze: have both. One has absolutely nothing to do with the other. 84 00:04:58,000 --> 00:05:02,140 Suze: You can have a SEP or a solo 401k, and yes, 85 00:05:02,238 --> 00:05:05,339 Suze: you can have a Roth IRA on top of it, 86 00:05:05,440 --> 00:05:08,118 Suze: just that simple. And it makes no difference if you 87 00:05:08,119 --> 00:05:13,440 Suze: have a Roth 401k at your employer, either. You can 88 00:05:13,440 --> 00:05:16,440 Suze: also have a Roth IRA. All right, go on. 89 00:05:17,040 --> 00:05:20,799 KT: OK, next question is from Anna. She said, I'm retired, 90 00:05:21,049 --> 00:05:25,928 KT: 57 years old. I have $2 million in a traditional 91 00:05:25,928 --> 00:05:31,000 KT: IRA that I'm converting to a Roth over 13 years, 92 00:05:31,010 --> 00:05:38,529 KT: staying in the 22 to 24% bracket. My advisor charges 0.60%. 93 00:05:38,859 --> 00:05:41,779 KT: Which is about $35,000 a year. 94 00:05:41,910 --> 00:05:44,589 Suze: Wait, wait, did I just hear that right? She has 95 00:05:44,589 --> 00:05:51,309 Suze: $2 million. She's paying $35,000 a year, and supposedly all 96 00:05:51,309 --> 00:05:54,450 Suze: he charges is 0.60%. Go on. 97 00:05:54,869 --> 00:05:57,649 KT: He manages individual equities. 98 00:05:57,994 --> 00:06:02,195 KT: Keep cash reserves and help her with tax planning on 99 00:06:02,195 --> 00:06:06,815 KT: the conversion. She said, I'm a low cost index fund believer, 100 00:06:06,904 --> 00:06:10,394 KT: and I'm wondering, Suze, at what point does it make 101 00:06:10,394 --> 00:06:16,795 KT: sense to move to self-management or a flat fee automated alternative? 102 00:06:17,369 --> 00:06:22,420 KT: And are platforms like Range a reasonable substitute for what 103 00:06:22,420 --> 00:06:26,369 KT: a traditional advisor provides? What's Range? 104 00:06:26,660 --> 00:06:29,220 Suze: I'll tell you about Range in a second, but here's 105 00:06:29,220 --> 00:06:35,739 Suze: the range that really concerns me: 0.60 on $2 million 106 00:06:35,738 --> 00:06:43,799 Suze: is not $35,000. $35,000 a year on $2 million, KT 107 00:06:43,799 --> 00:06:49,149 Suze: is a 1.75% advisory fee 108 00:06:49,149 --> 00:06:49,440 KT: Way too much. 109 00:06:49,959 --> 00:06:55,359 Suze: That is way, way too much. So something is radically 110 00:06:55,359 --> 00:06:58,320 Suze: wrong there, Anna. You have to go to him and 111 00:06:58,320 --> 00:07:01,440 Suze: you have to say, or her and say, why am 112 00:07:01,440 --> 00:07:05,200 Suze: I paying $35,000 a year just for you to manage 113 00:07:05,200 --> 00:07:09,920 Suze: individual equity and keep cash reserves and do some tax planning? 114 00:07:10,119 --> 00:07:14,320 Suze: That is ridiculous. That is ridiculous. That is ridiculous, OK. 115 00:07:15,579 --> 00:07:18,380 Suze: Now, next, all right, before I go on to my 116 00:07:18,380 --> 00:07:23,019 Suze: true thoughts here, right, is Range. What is Range? Range 117 00:07:23,019 --> 00:07:25,660 Suze: is this new company that started, I want to say 118 00:07:25,660 --> 00:07:29,140 Suze: maybe 5 or 6 years ago, KT, that rather than 119 00:07:29,140 --> 00:07:32,820 Suze: them charging you a percent of assets under management, like 120 00:07:32,820 --> 00:07:37,500 Suze: 0.60 or whatever it may be, they charge you a 121 00:07:37,500 --> 00:07:40,079 Suze: flat fee that has a range, 122 00:07:40,559 --> 00:07:45,040 Suze: depending on the services that you get from them, they 123 00:07:45,040 --> 00:07:49,989 Suze: can be simple to very complex, but their range goes from, 124 00:07:50,279 --> 00:07:55,029 Suze: I think, about maybe $4,000 a year to $12,500 a year, 125 00:07:55,040 --> 00:07:58,679 Suze: or even $20,000 a year, depending on what you want 126 00:07:58,679 --> 00:08:02,880 Suze: them to do. The catch is, though, you have to 127 00:08:02,880 --> 00:08:06,640 Suze: sign up for one full year, number one. 128 00:08:07,500 --> 00:08:10,260 Suze: Doesn't matter on whether they make money for you or 129 00:08:10,260 --> 00:08:12,899 Suze: they lose money for you. You still have to pay 130 00:08:12,899 --> 00:08:16,820 Suze: them that. Number two, I don't think you get your 131 00:08:16,820 --> 00:08:23,640 Suze: own individual advisor. It's done by a team of people. Also, 132 00:08:24,100 --> 00:08:27,459 Suze: the money isn't kept at Range. It's kept at a 133 00:08:27,459 --> 00:08:30,940 Suze: bit Altruist or whatever it may be. They're young, but 134 00:08:30,940 --> 00:08:33,799 Suze: here's what I don't like about it, truthfully. 135 00:08:34,229 --> 00:08:39,528 Suze: Which is this, there is no incentive really for them 136 00:08:39,528 --> 00:08:42,958 Suze: to make you more money. The reason that I'd like 137 00:08:42,958 --> 00:08:46,369 Suze: an investment advisory fee more if you want to use 138 00:08:46,369 --> 00:08:47,448 Suze: an advisor, 139 00:08:47,760 --> 00:08:52,200 Suze: is that they make more if you make more. So 140 00:08:52,200 --> 00:08:56,880 Suze: if they take your money from 2 million to 3 million, 141 00:08:57,090 --> 00:09:00,309 Suze: now they're making, let's just say 1% on 3 million 142 00:09:00,309 --> 00:09:04,080 Suze: versus 2. If they take your money from 2 million 143 00:09:04,080 --> 00:09:07,569 Suze: to 1 million, not only have you lost money on paper, 144 00:09:07,679 --> 00:09:11,479 Suze: but their fees have gone down as well. So it 145 00:09:11,479 --> 00:09:15,280 Suze: puts you on the same side of the fence, right? 146 00:09:15,919 --> 00:09:19,549 Suze: They do better when you do better. Just that simple. 147 00:09:19,849 --> 00:09:23,449 Suze: I don't see the incentive for range here except to 148 00:09:23,450 --> 00:09:27,690 Suze: have you keep coming back, but I don't think I 149 00:09:27,690 --> 00:09:29,609 Suze: would do it if I were you. I don't like 150 00:09:29,609 --> 00:09:32,530 Suze: that you have to pay number one up front and 151 00:09:32,530 --> 00:09:34,069 Suze: that you get a team. 152 00:09:34,770 --> 00:09:38,728 Suze: I really don't really love range bottom line. I don't 153 00:09:38,729 --> 00:09:41,969 Suze: know enough about them. I just don't think they're really 154 00:09:41,969 --> 00:09:46,530 Suze: what you need. You seem to be very simple in 155 00:09:46,530 --> 00:09:51,369 Suze: your needs. You have $2 million that's obviously already invested 156 00:09:51,369 --> 00:09:56,330 Suze: in a traditional IRA. You've already been converting it over 157 00:09:56,330 --> 00:09:56,530 Suze: the 158 00:09:56,614 --> 00:10:00,255 Suze: years to a Roth, you know how much per year 159 00:10:00,255 --> 00:10:03,335 Suze: you've been converting it, so you can either do that 160 00:10:03,335 --> 00:10:07,005 Suze: on your own or go back to your advisor that 161 00:10:07,005 --> 00:10:10,314 Suze: you have been working with and say something is wrong 162 00:10:10,315 --> 00:10:12,955 Suze: with the $35,000 that I'm paying. 163 00:10:13,820 --> 00:10:18,969 Suze: It is way, way too much, really, because 0.60% on 164 00:10:18,969 --> 00:10:25,619 Suze: $2 million is only about $12,000 a year, which is 165 00:10:25,619 --> 00:10:28,728 Suze: essentially what you would be paying at range for full 166 00:10:28,729 --> 00:10:30,080 Suze: services anyway. 167 00:10:30,960 --> 00:10:34,239 Suze: And you already know this advisor. Do you want to 168 00:10:34,239 --> 00:10:37,679 Suze: do it on your own? That is up to you. 169 00:10:38,280 --> 00:10:41,000 Suze: Before you do anything, Anna, I want you to go 170 00:10:41,000 --> 00:10:44,789 Suze: to the advisor that you have and really figure this out, 171 00:10:44,960 --> 00:10:48,760 Suze: because I think you have been seriously overcharged for a 172 00:10:48,760 --> 00:10:51,039 Suze: long time. Next question, KT. 173 00:10:51,159 --> 00:10:52,799 KT: Next question is from Kelly. 174 00:10:53,219 --> 00:10:57,299 KT: Hi Suze and KT. My old employer only offered a 175 00:10:57,299 --> 00:11:04,939 KT: traditional 401k. I now have $114,000 in that account. My 176 00:11:04,940 --> 00:11:09,179 KT: new employer offers a 401k Roth, which I will be 177 00:11:09,179 --> 00:11:14,400 KT: contributing to. My old employer plan only allows a complete 178 00:11:14,900 --> 00:11:20,020 KT: one-time all at once rollover to the new employer plan. 179 00:11:20,530 --> 00:11:24,049 KT: I know I will owe taxes on the conversion. I 180 00:11:24,049 --> 00:11:28,250 KT: do not want to pay taxes owed on the 114,000 181 00:11:28,250 --> 00:11:32,369 KT: all at once. Is there any other way to do this? 182 00:11:32,489 --> 00:11:35,210 Suze: Yea, simple. What you should be doing, you can do 183 00:11:35,210 --> 00:11:39,609 Suze: two things talk to your new employer. They obviously also 184 00:11:39,609 --> 00:11:41,890 Suze: have a traditional 401k. 185 00:11:42,409 --> 00:11:46,330 Suze: Roll it all at once to the traditional 401k, but 186 00:11:46,330 --> 00:11:50,609 Suze: make sure that they allow in plan conversions so that 187 00:11:50,609 --> 00:11:54,729 Suze: within your new employer's plan, you can convert little by 188 00:11:54,729 --> 00:12:00,090 Suze: little to the Roth 401k or better yet, if your 189 00:12:00,090 --> 00:12:03,090 Suze: income isn't really high and you know you're always gonna 190 00:12:03,090 --> 00:12:07,848 Suze: qualify for a contributory Roth, then you could roll it 191 00:12:07,849 --> 00:12:10,950 Suze: over into an IRA rollover. 192 00:12:11,349 --> 00:12:15,719 Suze: And little by little convert to a Roth IRA and 193 00:12:15,719 --> 00:12:19,750 Suze: by doing that you have far more investment choices that 194 00:12:19,750 --> 00:12:23,859 Suze: you can make. You can do treasuries, ETFs, individual stocks, 195 00:12:24,039 --> 00:12:27,780 Suze: all kinds of things in your employer's plan. You're only 196 00:12:27,780 --> 00:12:29,599 Suze: going to probably be able to do mutual 197 00:12:29,770 --> 00:12:33,450 Suze: funds and or the employer's stock if they have one. 198 00:12:33,770 --> 00:12:36,450 Suze: So yeah, you have two choices, not a big deal. Next, KT. 199 00:12:37,570 --> 00:12:40,929 KT: Suze, this is from Giovanna. I like this one a 200 00:12:40,929 --> 00:12:45,059 KT: lot because I think it's two Italian ladies. Hello. First 201 00:12:45,059 --> 00:12:48,849 KT: of all, thank you for your continued teachings. I am 202 00:12:48,849 --> 00:12:55,159 KT: a POA of a 96-year-old friend, Anna. Anna owns her... 203 00:12:55,159 --> 00:12:56,169 KT: so POA... 204 00:12:56,450 --> 00:12:57,429 Suze: Power of Attorney. 205 00:12:58,140 --> 00:13:01,459 KT: Anna owns her own house in which she lives alone. 206 00:13:01,659 --> 00:13:06,979 KT: She is very independent and strong-willed, good health overall, but 207 00:13:06,979 --> 00:13:08,340 KT: limited mobility. 208 00:13:08,840 --> 00:13:14,599 KT: Anna's financial situation: She owns her house outright. Her long-term 209 00:13:14,599 --> 00:13:18,419 KT: care insurance is about to end in a few months. 210 00:13:18,780 --> 00:13:24,400 KT: Anna has $58,000 in a bank. Her monthly expenses are 211 00:13:24,400 --> 00:13:29,840 KT: about $5,000 once the long-term care insurance ends. 212 00:13:30,429 --> 00:13:34,189 KT: Anna currently is starting to spend more than she earns. 213 00:13:34,650 --> 00:13:38,239 KT: Once her long-term care insurance runs out, she'll need to 214 00:13:38,239 --> 00:13:43,199 KT: spend even more. I'm thinking about increasing her income through 215 00:13:43,200 --> 00:13:47,159 KT: a reverse mortgage or in an equity loan. What are 216 00:13:47,159 --> 00:13:50,200 KT: your thoughts on each? Is, do you think, Suze, there's 217 00:13:50,200 --> 00:13:54,890 KT: another way to address this situation? And again, Giovanna says 218 00:13:54,890 --> 00:13:58,689 KT: thank you for your valuable recommendations. So sweet. 219 00:13:59,409 --> 00:14:03,650 Suze: Well, my dear Giovanna, it really depends. 220 00:14:05,320 --> 00:14:11,530 Suze: So your friend is 96 years of age, and Anna 221 00:14:11,530 --> 00:14:14,739 Suze: owns her home outright. I don't know how much it's worth, 222 00:14:14,799 --> 00:14:18,359 Suze: but here's the question. Is she always going to be 223 00:14:18,359 --> 00:14:20,260 Suze: able to remain in that home? 224 00:14:21,520 --> 00:14:25,929 Suze: Or is she, as she gets older, possibly going to 225 00:14:25,929 --> 00:14:30,109 Suze: need nursing care? She doesn't have long term care insurance anymore. 226 00:14:30,450 --> 00:14:33,409 Suze: Will she end up in a nursing home? Who's going 227 00:14:33,409 --> 00:14:36,130 Suze: to look after her? Who's going to take care of her? 228 00:14:36,409 --> 00:14:40,969 Suze: All of those things. And so you really need to 229 00:14:40,969 --> 00:14:46,409 Suze: make a decision now. Does it make sense for Anna 230 00:14:46,409 --> 00:14:50,190 Suze: to do truthfully because interest rates are relatively high right now. 231 00:14:50,669 --> 00:14:53,700 Suze: Does it make sense for her to do a reverse mortgage, 232 00:14:54,030 --> 00:14:57,739 Suze: take all the money out of the house little by little? 233 00:14:57,989 --> 00:15:00,750 Suze: Who knows how long she's going to live, and then 234 00:15:00,750 --> 00:15:03,710 Suze: all of a sudden she's no longer in the house. 235 00:15:03,789 --> 00:15:06,880 Suze: She's now in a nursing home. Will she need to 236 00:15:06,880 --> 00:15:10,130 Suze: sell the house? Will she not? Will she really net more, 237 00:15:10,190 --> 00:15:11,150 Suze: having done that? 238 00:15:11,440 --> 00:15:16,200 Suze: I think the real conversation is here, is she better 239 00:15:16,200 --> 00:15:21,299 Suze: off selling the house? You say she has limited mobility. 240 00:15:22,239 --> 00:15:24,619 Suze: Selling the house right now, 241 00:15:25,929 --> 00:15:29,489 Suze: taking that money and now she has it now she 242 00:15:29,489 --> 00:15:32,849 Suze: could always rent an apartment. She could go into an 243 00:15:32,849 --> 00:15:37,450 Suze: independent living facility like my mother did, and she loved it. 244 00:15:37,849 --> 00:15:41,489 Suze: She wasn't alone. She had people around her, and it 245 00:15:41,489 --> 00:15:45,349 Suze: was good and simply live off the interest. 246 00:15:45,840 --> 00:15:49,330 Suze: That the money from selling her home will probably generate 247 00:15:49,719 --> 00:15:52,559 Suze: for her to pay for all of that. And even 248 00:15:52,559 --> 00:15:56,640 Suze: if she goes into her principal little by little, I 249 00:15:56,640 --> 00:16:01,599 Suze: don't think she'll outlive it. But if she does a 250 00:16:01,599 --> 00:16:05,320 Suze: reverse mortgage, yes, she gets to stay in her home. 251 00:16:05,559 --> 00:16:08,099 Suze: The question is, can she. 252 00:16:08,780 --> 00:16:12,780 Suze: Does it make sense? And I don't think it makes 253 00:16:12,780 --> 00:16:16,380 Suze: financial sense, you know, KT, sometimes when we get older 254 00:16:16,380 --> 00:16:20,380 Suze: we latch on so strongly to our home. Like our 255 00:16:20,380 --> 00:16:24,000 Suze: home is our independence. Our home is what we love. 256 00:16:24,099 --> 00:16:27,900 Suze: We want to stay in our home, and I understand 257 00:16:27,900 --> 00:16:28,900 Suze: that feeling. 258 00:16:29,630 --> 00:16:35,760 Suze: But it's not always the wisest thing, and at 96, again, 259 00:16:35,880 --> 00:16:39,429 Suze: you have to think differently. If she falls, does somebody 260 00:16:39,429 --> 00:16:40,140 Suze: live with her? 261 00:16:41,030 --> 00:16:44,630 Suze: You say her expenses are going to increase. Is that 262 00:16:44,630 --> 00:16:48,559 Suze: because right now, her long-term care insurance provides an aid? 263 00:16:48,719 --> 00:16:50,289 Suze: I don't know enough. 264 00:16:51,640 --> 00:16:55,049 Suze: But in a situation like this, if I was forced 265 00:16:55,049 --> 00:16:58,250 Suze: to choose one or the other, I would choose a 266 00:16:58,250 --> 00:17:02,690 Suze: reverse mortgage because a home equity loan, your expenses are 267 00:17:02,690 --> 00:17:04,729 Suze: just going to go up and you're going to be 268 00:17:04,729 --> 00:17:07,689 Suze: paying the loan back with the money that you took out. 269 00:17:08,189 --> 00:17:11,599 Suze: But I really, really think the two of you should 270 00:17:11,599 --> 00:17:15,400 Suze: take a ride around and really look at places and 271 00:17:15,400 --> 00:17:18,839 Suze: just see what she thinks about it, all right, but 272 00:17:18,839 --> 00:17:22,339 Suze: you need to do it sooner than later. All right, KT. 273 00:17:22,520 --> 00:17:25,359 KT: And both of our moms lived in assisted living and 274 00:17:25,359 --> 00:17:28,589 KT: they loved it. They had friends. They had a community. 275 00:17:29,280 --> 00:17:32,069 Suze: Yes they did, but remember, KT, it's not something that 276 00:17:32,069 --> 00:17:34,410 Suze: they wanted to do right away. 277 00:17:35,040 --> 00:17:37,920 KT: Like once they did it, they really loved it 278 00:17:37,920 --> 00:17:42,119 Suze: They did, yes, and so you know it's hard everybody listen, 279 00:17:42,160 --> 00:17:45,079 Suze: I get it. I get when you get older you 280 00:17:45,079 --> 00:17:47,679 Suze: want the only thing that you've ever known. 281 00:17:48,239 --> 00:17:52,639 Suze: What you don't know is the unknown. Do you trip? 282 00:17:52,880 --> 00:17:56,510 Suze: Do you break your hip? Do you start forgetting things? 283 00:17:56,719 --> 00:17:59,920 Suze: Do you leave the stove on? Little things can happen. 284 00:18:00,280 --> 00:18:04,310 Suze: So even to be accepted in an independent living facility, 285 00:18:04,560 --> 00:18:05,280 Suze: you have to show 286 00:18:05,550 --> 00:18:10,469 Suze: that you're capable of living independently, otherwise they're not gonna 287 00:18:10,469 --> 00:18:14,189 Suze: want to do it. So, and there are many out 288 00:18:14,189 --> 00:18:16,890 Suze: there where you don't have to buy in. You can 289 00:18:16,890 --> 00:18:19,419 Suze: just rent like my mama did. All right, go on, KT. 290 00:18:20,040 --> 00:18:22,669 KT: OK, this is from Teresa. 291 00:18:23,119 --> 00:18:26,000 KT: Hi Suze, I'm trying to help my mom and dad 292 00:18:26,000 --> 00:18:30,739 KT: look over their finances. They are both retired, 64 and 293 00:18:30,739 --> 00:18:35,560 KT: 70 years old, living in California, and their only income 294 00:18:35,560 --> 00:18:42,040 KT: is Social Security, which is about $3,200 a month total 295 00:18:42,040 --> 00:18:44,459 KT: between the two of them. Not a lot. 296 00:18:45,479 --> 00:18:50,800 KT: She wants to move her Fidelity 401 money, $45,000 from 297 00:18:50,800 --> 00:18:54,680 KT: her previous employer somewhere, and I'm thinking she should roll 298 00:18:54,680 --> 00:18:59,040 KT: it over into a traditional IRA and then over the 299 00:18:59,040 --> 00:19:00,438 KT: next three to five years. 300 00:19:00,920 --> 00:19:04,169 KT: Roll it into a Roth IRA. Is that the right 301 00:19:04,170 --> 00:19:05,010 KT: thing to do? 302 00:19:05,209 --> 00:19:05,670 Suze: No. 303 00:19:06,089 --> 00:19:11,208 KT: Oh, OK. Tell Teresa O she signs it like Suze O. 304 00:19:11,410 --> 00:19:15,129 Suze: All right, Teresa O, here's the thing. There's no reason 305 00:19:15,130 --> 00:19:19,650 Suze: why your mom and dad, they have no income, therefore 306 00:19:19,650 --> 00:19:23,290 Suze: they don't pay any taxes even in the state of California. 307 00:19:23,689 --> 00:19:26,729 Suze: There is no advantage for them rolling it to a 308 00:19:26,729 --> 00:19:29,569 Suze: Roth when the truth of the matter is that there's 309 00:19:29,569 --> 00:19:34,050 Suze: only $45,000. You're going to have to start taking money 310 00:19:34,050 --> 00:19:37,239 Suze: out of it, and that's when you pay taxes on 311 00:19:37,239 --> 00:19:40,770 Suze: it little by little. So the truth is either leave 312 00:19:40,770 --> 00:19:43,890 Suze: it exactly where it is or roll it to an 313 00:19:43,890 --> 00:19:48,869 Suze: IRA rollover. Don't even bother converting it. It makes absolutely 314 00:19:49,089 --> 00:19:52,159 Suze: no sense whatsoever in their situation. 315 00:19:54,069 --> 00:19:57,010 Suze: However, they're only 64 and 70, my dear Teresa. 316 00:19:58,209 --> 00:20:05,109 Suze: They only have $45,000 in a retirement account. They're living 317 00:20:05,109 --> 00:20:10,489 Suze: on their Social Security, which jointly is $3,200 a month. 318 00:20:10,810 --> 00:20:13,149 Suze: When one of them dies? 319 00:20:13,800 --> 00:20:20,119 Suze: They lose one Social Security check. Now their income has 320 00:20:20,119 --> 00:20:25,520 Suze: gone down to probably about $1,600 a month or whatever 321 00:20:25,520 --> 00:20:30,439 Suze: the higher spouse's Social Security check was. Can you tell 322 00:20:30,439 --> 00:20:35,920 Suze: me how in the state of California or anywhere mamma 323 00:20:35,920 --> 00:20:36,920 Suze: or daddy, 324 00:20:37,300 --> 00:20:40,859 Suze: depending on who dies first, is able to survive on 325 00:20:40,859 --> 00:20:46,099 Suze: $1,600 a month. Oh, now we have to start taking 326 00:20:46,099 --> 00:20:51,660 Suze: out $2,000 or $3,000 from the $45,000 and really in 327 00:20:51,660 --> 00:20:56,760 Suze: one year that's gone. So all mommy and daddy have, 328 00:20:57,500 --> 00:21:01,650 Suze: especially if one of them dies, it will be approximately 329 00:21:01,650 --> 00:21:05,250 Suze: $1,600 a month after the $45,000 is gone. 330 00:21:06,530 --> 00:21:10,728 Suze: Your true job now when you say that you're looking 331 00:21:10,729 --> 00:21:15,930 Suze: over their finances is you need to figure out what 332 00:21:15,930 --> 00:21:20,010 Suze: are you going to do when that happens because usually 333 00:21:20,010 --> 00:21:24,250 Suze: what happens, Teresa is that that's when a child steps 334 00:21:24,250 --> 00:21:28,010 Suze: up and they pay for their mother. KT and I 335 00:21:28,010 --> 00:21:32,369 Suze: both paid for our mother's fully, everything for them. Luckily 336 00:21:32,369 --> 00:21:34,369 Suze: we had enough income to do so. 337 00:21:34,859 --> 00:21:39,099 Suze: I don't know your particular situation, but this is what 338 00:21:39,099 --> 00:21:42,180 Suze: my advice to you is here, not about what do 339 00:21:42,180 --> 00:21:46,369 Suze: you do with the $45,000 but do not convert it. 340 00:21:46,459 --> 00:21:49,900 Suze: Makes no sense. But the mere fact that you wanted 341 00:21:49,900 --> 00:21:51,699 Suze: to and you thought that was the right thing to 342 00:21:51,699 --> 00:21:55,060 Suze: do says to me that you also don't know what 343 00:21:55,060 --> 00:21:58,180 Suze: to do with your own money. Believe it or not. 344 00:21:58,670 --> 00:22:02,390 Suze: So, you need to look over your own money right now. 345 00:22:02,670 --> 00:22:05,750 Suze: Think about what are you going to do? Are you 346 00:22:05,750 --> 00:22:07,900 Suze: going to have to move one of them in with you? 347 00:22:08,030 --> 00:22:10,209 Suze: What are you going to have to do? 348 00:22:10,589 --> 00:22:14,280 Suze: But you need to make a plan right here, right now. 349 00:22:14,359 --> 00:22:16,520 Suze: I don't know if you're an only child or you 350 00:22:16,520 --> 00:22:20,079 Suze: have siblings, but you got to start looking over your 351 00:22:20,079 --> 00:22:23,479 Suze: own finances right now to figure out how you're going 352 00:22:23,479 --> 00:22:26,699 Suze: to be able to take care of mommy and daddy 353 00:22:26,760 --> 00:22:29,819 Suze: or just one of them after one of them have died. 354 00:22:30,400 --> 00:22:31,439 Suze: So sad, KT. 355 00:22:31,680 --> 00:22:33,459 KT: I know I'm saying, my goodness. 356 00:22:35,479 --> 00:22:38,390 Suze: First of all, the good thing about this situation is 357 00:22:38,390 --> 00:22:43,229 Suze: they have Teresa, right, and a family that helps one 358 00:22:43,229 --> 00:22:47,409 Suze: another in time of need is really the meaning of family. 359 00:22:47,760 --> 00:22:52,030 Suze: Obviously her parents were great. She's great and everything, but 360 00:22:52,030 --> 00:22:54,489 Suze: here's what I want to say to all of you. 361 00:22:54,910 --> 00:22:58,430 Suze: All right? It's very important that you don't wait 'till 362 00:22:58,430 --> 00:23:02,030 Suze: your parents are in their 60s or 70s for you 363 00:23:02,030 --> 00:23:04,208 Suze: to get involved with their finances. 364 00:23:05,119 --> 00:23:10,089 Suze: You know whether they've been responsible, whether they're saving, and 365 00:23:10,089 --> 00:23:12,810 Suze: for those of you who are older out there, you 366 00:23:12,810 --> 00:23:16,930 Suze: need to involve your kids right now. You need to 367 00:23:16,930 --> 00:23:22,400 Suze: make finances a family affair. Don't just say, oh, it's OK. 368 00:23:22,449 --> 00:23:25,889 Suze: I'll be OK. Just worry about yourself cause it never 369 00:23:25,890 --> 00:23:27,189 Suze: ends up that way. 370 00:23:27,780 --> 00:23:31,520 Suze: So kids, get involved with your parents' money right now 371 00:23:31,520 --> 00:23:34,500 Suze: and see, are they OK. See if you are going 372 00:23:34,500 --> 00:23:39,959 Suze: to have to help them. Make decisions now when you're younger, everybody, 373 00:23:40,180 --> 00:23:42,339 Suze: and if you're older and you know you're going to 374 00:23:42,339 --> 00:23:48,929 Suze: need help, involve your kids sooner than later. Just that simple. 375 00:23:48,979 --> 00:23:49,819 Suze: All right, KT. 376 00:23:50,900 --> 00:23:54,978 KT: OK, this is from Suzy. Hi Suze and KT. I 377 00:23:54,979 --> 00:23:59,500 KT: have a question about emergency and retirement funds in the 378 00:23:59,500 --> 00:24:04,500 KT: age of AI. I like this question because she's only 38. 379 00:24:04,609 --> 00:24:09,770 KT: She said, I'm 38, single, no dependents, and no debt. 380 00:24:10,060 --> 00:24:13,159 KT: I rent a small apartment instead of owning. 381 00:24:13,609 --> 00:24:17,579 KT: Even though I'm currently doing well financially, I am very 382 00:24:17,579 --> 00:24:21,419 KT: concerned about the impact AI will have on the job 383 00:24:21,420 --> 00:24:27,380 KT: market in the upcoming years. My current job security is shaky, 384 00:24:27,619 --> 00:24:29,739 KT: but I don't want to find a new one right 385 00:24:29,739 --> 00:24:34,180 KT: now for many reasons. Do you have any thoughts on 386 00:24:34,180 --> 00:24:36,959 KT: how to financially prepare for the fallout? 387 00:24:37,829 --> 00:24:40,948 KT: Thank you both for continuing to share your knowledge and 388 00:24:40,949 --> 00:24:44,739 KT: wisdom through the podcast and on the app. You're like 389 00:24:44,739 --> 00:24:48,989 KT: the two aunts, you're like the two aunts everyone needs 390 00:24:48,989 --> 00:24:52,119 KT: in their lives, always willing to speak the truth to 391 00:24:52,119 --> 00:24:56,800 KT: help others. Wishing you health and happiness. She sounds like Sophia. 392 00:24:57,540 --> 00:25:01,319 KT: Suze, Suze has her niece Sophia, and they speak often, 393 00:25:01,739 --> 00:25:04,300 KT: and they speak about money and finances, but we speak 394 00:25:04,300 --> 00:25:07,979 KT: the truth to each other, totally true, but Sophia listens 395 00:25:07,979 --> 00:25:11,300 KT: and wants, she wants that tough love sometimes. 396 00:25:11,380 --> 00:25:13,819 Suze: I hold the truth from all the other ones just 397 00:25:13,819 --> 00:25:17,219 Suze: so you know. Anyway, that's just what it is to 398 00:25:17,219 --> 00:25:21,020 Suze: be an auntie, I guess. Here's the bottom line here. 399 00:25:22,000 --> 00:25:27,130 Suze: Fear is the main internal obstacle to wealth, and for 400 00:25:27,130 --> 00:25:30,969 Suze: you to spend time right now being afraid of what 401 00:25:30,969 --> 00:25:35,170 Suze: the future brings keeps you from getting the most out 402 00:25:35,170 --> 00:25:40,449 Suze: of today. It renders you powerless. It probably prevents you 403 00:25:40,449 --> 00:25:44,250 Suze: from getting a promotion at work. You already say your 404 00:25:44,250 --> 00:25:45,989 Suze: current work is shaky. 405 00:25:46,619 --> 00:25:50,180 Suze: But you don't want to leave it. I feel fear 406 00:25:50,180 --> 00:25:53,380 Suze: throughout your entire email. You don't want to own a 407 00:25:53,380 --> 00:25:56,099 Suze: home cause it might be too much. You, you know, 408 00:25:56,219 --> 00:25:58,959 Suze: don't want to leave work right now, even though it's shaky, 409 00:25:59,099 --> 00:26:02,060 Suze: for reasons you didn't want to go in. Now you're 410 00:26:02,060 --> 00:26:04,540 Suze: fearing AI. Stop it. 411 00:26:05,420 --> 00:26:10,329 Suze: Stop worrying about the future and put 100% of your 412 00:26:10,329 --> 00:26:15,250 Suze: energy into what you can do right now to help 413 00:26:15,250 --> 00:26:18,569 Suze: yourself feel more powerful. The goal of money is for 414 00:26:18,569 --> 00:26:23,250 Suze: you to feel secure. Human beings will always be needed 415 00:26:23,250 --> 00:26:28,050 Suze: to do specific jobs. You're only 38. There'll be certain 416 00:26:28,050 --> 00:26:31,089 Suze: things that AI, in my opinion, is not going to 417 00:26:31,089 --> 00:26:31,859 Suze: be able to do. 418 00:26:32,469 --> 00:26:35,069 Suze: Hey, you wanna learn how to cut hair? You wanna 419 00:26:35,069 --> 00:26:38,129 Suze: maybe learn to be a boat captain, or a mechanic, 420 00:26:38,310 --> 00:26:42,170 Suze: or a contractor. There are many answers to AI. 421 00:26:43,239 --> 00:26:47,410 Suze: But you cannot turn your back on the battlefield. You 422 00:26:47,410 --> 00:26:50,489 Suze: have to stand in your truth that you have already 423 00:26:50,489 --> 00:26:55,380 Suze: at the age of 38, created a very significant financial pile, 424 00:26:55,410 --> 00:26:57,968 Suze: because I just saw all your numbers, and you should 425 00:26:57,969 --> 00:27:01,489 Suze: be so proud of yourself. It's not even funny. So 426 00:27:01,489 --> 00:27:05,689 Suze: little niece of mine listening to me right now, just 427 00:27:05,689 --> 00:27:07,219 Suze: stop it. Stop being 428 00:27:07,375 --> 00:27:11,214 Suze: a wimp and be the woman you were born to be. 429 00:27:11,295 --> 00:27:13,614 Suze: There is not an excuse out there big enough to 430 00:27:13,614 --> 00:27:17,534 Suze: keep you from succeeding. Do you hear me? Why are 431 00:27:17,535 --> 00:27:18,415 Suze: you laughing, KT? 432 00:27:18,594 --> 00:27:22,045 KT: I'm not. I'm just saying that's a great rap, Suze. 433 00:27:22,135 --> 00:27:23,214 KT: I love that. 434 00:27:23,334 --> 00:27:27,415 Suze: Right? And that's exactly how I talk to my niece, right? Yes, 435 00:27:27,535 --> 00:27:30,295 Suze: I do. I let them have it. Now. I didn't 436 00:27:30,295 --> 00:27:31,494 Suze: just let you have it. 437 00:27:32,209 --> 00:27:35,420 Suze: But it is with that energy, it is with that 438 00:27:35,420 --> 00:27:40,839 Suze: conviction that you have to live this life. You cannot 439 00:27:40,839 --> 00:27:46,420 Suze: be a wimp in 2026. You just cannot. 440 00:27:47,520 --> 00:27:51,400 KT: I love when Suze gets feisty like that, everybody. 441 00:27:51,920 --> 00:27:55,520 Suze: All right, she loves when I get feisty, period. However, 442 00:27:56,079 --> 00:28:00,459 Suze: just want to remind all of you, today, July 19th, 443 00:28:00,680 --> 00:28:05,930 Suze: all the way through midnight Pacific Coast time, July 21st, 444 00:28:06,119 --> 00:28:11,199 Suze: Hay House is offering the must-have documents in honor of 445 00:28:11,199 --> 00:28:15,760 Suze: KT's birthday, which is July 21st, and she's gonna be 74. 446 00:28:16,066 --> 00:28:20,276 Suze: They are offering it for you just for these few days. 447 00:28:20,515 --> 00:28:22,264 Suze: So those of you who listen to the Women and 448 00:28:22,265 --> 00:28:26,735 Suze: Money podcast early, you win if you need the must-have 449 00:28:26,734 --> 00:28:32,014 Suze: documents or want them for $74. If you were to look, 450 00:28:32,145 --> 00:28:35,826 Suze: you'll see normally they are now $153. 451 00:28:36,442 --> 00:28:41,741 Suze: Which is still a bargain, because once again, $2,500 worth 452 00:28:41,741 --> 00:28:45,842 Suze: of state of the art documents, good in all 50 states. 453 00:28:46,092 --> 00:28:49,011 Suze: You can share it with your loved ones, renew it 454 00:28:49,011 --> 00:28:52,452 Suze: whenever you want, when there's an upgrade, change it whenever 455 00:28:52,452 --> 00:28:57,192 Suze: you want, and I can go on and on, and again, 456 00:28:57,729 --> 00:29:01,810 Suze: They're called the must-have documents, a will, a living revocable trust, 457 00:29:02,089 --> 00:29:04,780 Suze: an advanced directive, a durable power of attorney for healthcare, 458 00:29:04,890 --> 00:29:09,050 Suze: and a financial power of attorney because you must have them, 459 00:29:09,089 --> 00:29:15,359 Suze: just that simple. So remember, go to musthavedocs.com/birthday. 460 00:29:15,589 --> 00:29:18,410 KT: So everyone, that's a wrap. I do want to wish 461 00:29:18,410 --> 00:29:22,849 KT: my twin sister a very, very happy day. I know 462 00:29:22,849 --> 00:29:26,010 KT: we're not together, and I will be thinking about you 463 00:29:26,010 --> 00:29:27,064 KT: as well. I love you, Lynn. 464 00:29:27,785 --> 00:29:31,224 Suze: All right, everybody, so until next Sunday, there's only one 465 00:29:31,224 --> 00:29:33,224 Suze: thing that we really want you to remember, and it 466 00:29:33,224 --> 00:29:33,824 Suze: is what KT? 467 00:29:34,625 --> 00:29:36,905 KT: People first, then money, then things. 468 00:29:37,545 --> 00:29:43,444 Suze: Now you stay safe in KT for everybody. Happy, happy birthday.