1 00:00:07,429 --> 00:00:11,159 Suze: December 11th, 2025. Welcome everybody to the Women and Money 2 00:00:11,159 --> 00:00:12,978 Suze: podcast and what KT? 3 00:00:12,978 --> 00:00:15,819 KT: And everyone's smart enough to listen. 4 00:00:16,319 --> 00:00:18,319 Suze: And if they don't listen, does that mean they're not 5 00:00:18,319 --> 00:00:19,420 Suze: smart enough? Yes. 6 00:00:21,959 --> 00:00:26,829 Suze: This is the Ask KT and Suze Anything edition. If 7 00:00:26,829 --> 00:00:29,670 Suze: you have a question, write into Ask Suze, S U 8 00:00:29,670 --> 00:00:35,069 Suze: Z E podcast at gmail.com. And if KT chooses it, oh, 9 00:00:35,270 --> 00:00:39,540 Suze: we will answer it on this podcast. All right. 10 00:00:40,000 --> 00:00:40,950 Suze: Should we just get into it? 11 00:00:41,009 --> 00:00:45,200 KT: Let's get right into it. My first question is from Susan, 12 00:00:45,319 --> 00:00:48,680 KT: and she said, Hi, Suze and KT. My father, who 13 00:00:48,680 --> 00:00:53,560 KT: is 75, watches these people on Facebook, and they told 14 00:00:53,560 --> 00:00:56,240 KT: him that he could get a life insurance policy and 15 00:00:56,240 --> 00:00:57,560 KT: borrow against it. 16 00:00:57,849 --> 00:01:01,840 KT: That he can put the stocks into a trust and 17 00:01:01,840 --> 00:01:04,769 KT: borrow against them as well for a house. I think 18 00:01:04,769 --> 00:01:06,919 KT: it's a scam. What are your thoughts on this? 19 00:01:07,000 --> 00:01:10,690 Suze: It's not a scam, Susan. It's absolutely just stupid. How 20 00:01:10,690 --> 00:01:13,529 Suze: is it possible that your father at 75 21 00:01:14,059 --> 00:01:17,699 Suze: is not intelligent enough to know not to listen to 22 00:01:17,699 --> 00:01:21,330 Suze: somebody on Facebook that he knows nothing about. Why are 23 00:01:21,330 --> 00:01:25,730 Suze: they telling him this? It's just stupid. OK. First of all, 24 00:01:26,139 --> 00:01:29,199 Suze: when you see that you can borrow against something. 25 00:01:30,029 --> 00:01:32,309 Suze: What does that say to you? It says that you've 26 00:01:32,309 --> 00:01:35,510 Suze: put your money somewhere and now you're going to borrow 27 00:01:35,510 --> 00:01:37,110 Suze: against it, which means you're going to have to pay 28 00:01:37,110 --> 00:01:40,750 Suze: an interest rate to use your own money. Are you 29 00:01:40,750 --> 00:01:46,209 Suze: kidding me? It just makes no sense whatsoever. I'm very, 30 00:01:46,470 --> 00:01:50,319 Suze: very familiar with these policies, and my advice to your 31 00:01:50,319 --> 00:01:54,870 Suze: father would be stay away, stay away, stay away. Next, 32 00:01:55,510 --> 00:01:56,760 Suze: anybody can put money 33 00:01:57,449 --> 00:02:00,949 Suze: into an investment account, whether it's in trust or individual name, 34 00:02:01,449 --> 00:02:05,410 Suze: and qualify for something called margin, and margin is where 35 00:02:05,410 --> 00:02:09,649 Suze: you have these stocks, and you can borrow against them 36 00:02:09,649 --> 00:02:12,559 Suze: to do anything you want, but then once again, it's 37 00:02:12,559 --> 00:02:15,279 Suze: not free. You have to pay the brokerage firm the 38 00:02:15,279 --> 00:02:18,508 Suze: money to borrow against the stocks and 39 00:02:18,880 --> 00:02:21,799 Suze: if the stocks that you borrowed the money from start 40 00:02:21,800 --> 00:02:25,660 Suze: to go down significantly, there's something called a margin call. 41 00:02:25,800 --> 00:02:28,679 Suze: And if your father doesn't have the money to absolutely 42 00:02:28,679 --> 00:02:31,869 Suze: pay that call, what does that mean? They will liquidate 43 00:02:31,869 --> 00:02:34,339 Suze: the stocks that he has, and he could possibly lose 44 00:02:34,720 --> 00:02:38,038 Suze: most of his money, if not all of it. It's 45 00:02:38,038 --> 00:02:42,089 Suze: not a scam. It is stupidity, all right. 46 00:02:43,699 --> 00:02:47,460 KT: I think that's great. Not a scam. It's just stupid. 47 00:02:47,559 --> 00:02:48,479 Suze: Well, you know, all these people... 48 00:02:48,479 --> 00:02:50,329 KT: I think that was just all you had to say. 49 00:02:50,410 --> 00:02:51,720 Suze: Yeah, when you see the word 50 00:02:52,630 --> 00:02:55,389 Suze: borrow when you see the word that you can do 51 00:02:55,389 --> 00:02:59,809 Suze: something with your stocks and borrow against them twice now, 52 00:02:59,860 --> 00:03:03,770 Suze: twice in this email you read me the word borrow. 53 00:03:04,190 --> 00:03:07,990 Suze: Just think about what the word borrow means and if 54 00:03:07,990 --> 00:03:11,089 Suze: you have the money, why would you borrow your own money? 55 00:03:11,229 --> 00:03:11,769 Suze: All right. All right. 56 00:03:12,830 --> 00:03:15,949 KT: Next question is from Marie. She said, first... 57 00:03:16,270 --> 00:03:17,299 Suze: What a way to start off the morning. 58 00:03:17,300 --> 00:03:18,649 KT: I know. I'm sorry. 59 00:03:19,470 --> 00:03:20,490 Suze: You did that on purpose. 60 00:03:20,800 --> 00:03:22,729 KT: No, I didn't. I like to rile you up, but 61 00:03:22,729 --> 00:03:26,050 KT: it woke you up. That's for sure. OK. Next question 62 00:03:26,050 --> 00:03:29,210 KT: from Marie. She said, first, thank you so much for 63 00:03:29,210 --> 00:03:33,449 KT: an excellent podcast. I've learned so much from both of you. 64 00:03:33,880 --> 00:03:37,839 KT: She said first time question submitter, this situation is a 65 00:03:37,839 --> 00:03:43,440 KT: real conundrum. Sadly, my sister passed away recently. She named 66 00:03:43,440 --> 00:03:49,160 KT: my elderly father as the beneficiary for her quite large 403b. 67 00:03:49,600 --> 00:03:53,839 KT: What's the best way to handle the funds to avoid, ready? 68 00:03:54,199 --> 00:03:57,339 KT: Avoid ordinary income taxes. 69 00:03:58,630 --> 00:03:59,770 Suze: Listen, Marie. 70 00:04:01,190 --> 00:04:04,990 Suze: Sometimes, obviously, you want to avoid income taxes if you can. 71 00:04:05,809 --> 00:04:10,660 Suze: However, whenever it comes to a retirement account, there's only 72 00:04:10,660 --> 00:04:14,740 Suze: one way to avoid income taxes, which I have been 73 00:04:14,740 --> 00:04:17,940 Suze: preaching from the mountain top now for over like 20 74 00:04:17,940 --> 00:04:22,140 Suze: or 30 years, however long it's been really, and that 75 00:04:22,140 --> 00:04:27,980 Suze: is what? By doing a Roth IRA, a Roth 403B, 76 00:04:28,100 --> 00:04:31,618 Suze: a Roth 401k, a Roth TSP. 77 00:04:32,510 --> 00:04:36,089 Suze: That is why I've been saying it. Once your money 78 00:04:36,309 --> 00:04:41,089 Suze: is in a traditional 403B, meaning pre-tax account, 79 00:04:41,839 --> 00:04:45,769 Suze: and the owner, your sister, dies and it now goes 80 00:04:45,769 --> 00:04:50,010 Suze: to your father. It is now in an inherited retirement 81 00:04:50,010 --> 00:04:55,089 Suze: account and there is absolutely no way to avoid taxes 82 00:04:55,089 --> 00:04:58,928 Suze: on it. However, stop thinking about the taxes that he's 83 00:04:58,928 --> 00:05:03,250 Suze: going to owe. Start thinking about how much money is 84 00:05:03,250 --> 00:05:04,029 Suze: in there. 85 00:05:04,529 --> 00:05:06,579 Suze: And how he will take it out. I don't know 86 00:05:06,579 --> 00:05:09,420 Suze: how old he actually is, but he will either have 87 00:05:09,420 --> 00:05:12,820 Suze: to take it out according to how old your sister 88 00:05:12,820 --> 00:05:15,859 Suze: was when she died, all of that, but something is 89 00:05:15,859 --> 00:05:17,559 Suze: always better than nothing. 90 00:05:18,029 --> 00:05:20,739 Suze: And if you approach this as, I want to just 91 00:05:20,738 --> 00:05:22,839 Suze: give the money away so he doesn't have to pay taxes, 92 00:05:22,920 --> 00:05:24,518 Suze: what can I do? What can I do? You're gonna 93 00:05:24,519 --> 00:05:28,079 Suze: get yourself in trouble. And just know that it is 94 00:05:28,079 --> 00:05:33,799 Suze: possible that when your father dies, maybe you then get 95 00:05:33,799 --> 00:05:35,518 Suze: that money because he gets to name who 96 00:05:35,725 --> 00:05:41,045 Suze: he wants as a beneficiary on this inherited IRA. So 97 00:05:41,045 --> 00:05:45,104 Suze: stop worrying about taxes. There is no way around them. 98 00:05:45,204 --> 00:05:46,183 Suze: All right, go on. 99 00:05:46,755 --> 00:05:48,524 KT: OK, this is sweet. Suze from Rosie. 100 00:05:48,695 --> 00:05:50,725 Suze: However, I just have to say one thing. He's not 101 00:05:50,725 --> 00:05:53,204 Suze: going to take all of this money out at one time. 102 00:05:53,750 --> 00:05:55,239 Suze: So don't be freaked that all of a sudden he 103 00:05:55,238 --> 00:05:56,559 Suze: got a lot of money and he's gonna take it 104 00:05:56,559 --> 00:06:00,000 Suze: out at one time. He's not, OK. It's gonna take 105 00:06:00,000 --> 00:06:02,799 Suze: out little by little, but probably it's gonna have to 106 00:06:02,799 --> 00:06:07,040 Suze: be wiped clean within 10 years. It just depends on age. 107 00:06:07,119 --> 00:06:07,760 Suze: All right, go on. 108 00:06:08,000 --> 00:06:08,558 KT: Suze. This next... 109 00:06:08,559 --> 00:06:10,170 Suze: Are you sure I'm done with that question? 110 00:06:10,320 --> 00:06:15,480 KT: Yeah, 10 years, Suze. This, this next, this next question 111 00:06:15,480 --> 00:06:17,178 KT: is from Rosie, and it's very sweet. 112 00:06:17,839 --> 00:06:22,079 KT: She said, I was born in 1941, so currently I 113 00:06:22,079 --> 00:06:23,540 KT: am 84 years old. 114 00:06:23,839 --> 00:06:25,470 Suze: Me too. 10 years later. 115 00:06:26,079 --> 00:06:28,919 KT: I do not have a great deal of money. However, 116 00:06:29,040 --> 00:06:35,510 KT: in total, I have over $100,000 in savings and CDs. 117 00:06:35,799 --> 00:06:37,789 KT: I think that's a great deal of money, Rosie. 118 00:06:37,790 --> 00:06:38,519 Suze: That's a great deal of money for most people. 119 00:06:38,959 --> 00:06:40,880 KT: And then she said, Does it make sense for me 120 00:06:40,880 --> 00:06:44,000 KT: to convert any of the savings to a Roth? 121 00:06:44,390 --> 00:06:47,649 KT: And then Rosie gives you an explanation as why she's asking. 122 00:06:47,760 --> 00:06:51,359 KT: She said, my family is long lived with my mother 123 00:06:51,359 --> 00:06:54,260 KT: living to 101 years old. 124 00:06:54,920 --> 00:06:57,880 Suze: See, Rosie, here's the problem. If this money right now 125 00:06:57,880 --> 00:07:03,269 Suze: is just in a savings account, $100,000 in savings and CDs, 126 00:07:03,600 --> 00:07:07,239 Suze: you can't convert any of that to a savings Roth. 127 00:07:07,859 --> 00:07:13,709 Suze: Unless you are currently working and you have earned income 128 00:07:13,899 --> 00:07:16,679 Suze: and then you're not converting it, you're just opening up 129 00:07:16,859 --> 00:07:20,578 Suze: a contributory Roth and putting some of this money in it, 130 00:07:20,899 --> 00:07:23,739 Suze: but I got news for you. It really doesn't make 131 00:07:23,739 --> 00:07:26,519 Suze: any sense to do that if it's all in savings 132 00:07:26,700 --> 00:07:29,380 Suze: and chances are that you're living off of the interest 133 00:07:29,380 --> 00:07:32,899 Suze: on that savings and everything. No, it does not make 134 00:07:32,899 --> 00:07:37,019 Suze: sense for you to do that. And in fact you cannot, OK. 135 00:07:38,470 --> 00:07:40,609 Suze: KT, you can only convert you money. 136 00:07:41,070 --> 00:07:41,252 KT: If you are working. 137 00:07:41,252 --> 00:07:44,970 Suze: No, no, you can only convert money to a Roth 138 00:07:45,109 --> 00:07:48,790 Suze: if you have it in a traditional retirement account. Then 139 00:07:48,790 --> 00:07:51,910 Suze: you convert it. If it's not in a Roth to 140 00:07:51,910 --> 00:07:55,589 Suze: begin with, you're not converting anything. You're opening up a new, 141 00:07:55,600 --> 00:07:58,149 Suze: a new one, and you have to have earned income 142 00:07:58,149 --> 00:08:01,149 Suze: to do so. And at 84, for some reason, I 143 00:08:01,149 --> 00:08:01,809 Suze: have a feeling. 144 00:08:02,600 --> 00:08:04,489 Suze: She might not have income, but anyway, go on. 145 00:08:04,489 --> 00:08:08,010 KT: OK. Next is from James. We have a man smart 146 00:08:08,010 --> 00:08:11,649 KT: enough to listen. Yay, Suze, I know you want everybody 147 00:08:11,649 --> 00:08:15,250 KT: to have a Roth IRA account, including myself, and I 148 00:08:15,250 --> 00:08:17,929 KT: want one, but do you want us to take a 149 00:08:17,929 --> 00:08:21,529 KT: low-risk IRA out or an aggressive one? 150 00:08:22,450 --> 00:08:24,309 KT: I don't know the difference between the two. 151 00:08:24,410 --> 00:08:27,130 Suze: Well, one is investing your money, risky, maybe. 152 00:08:27,369 --> 00:08:29,410 KT: He said, I don't know what the best option should be. 153 00:08:29,410 --> 00:08:36,309 Suze: It's KT, low risk would be treasuries, CDs, money market accounts, maybe even... 154 00:08:36,309 --> 00:08:38,409 KT: Aggressive is higher. 155 00:08:38,409 --> 00:08:43,090 Suze: It's higher return and higher risk. James, can we just 156 00:08:43,090 --> 00:08:45,809 Suze: talk for a second? How do you expect me to 157 00:08:45,809 --> 00:08:48,809 Suze: answer that question? And I want everybody to listen to 158 00:08:48,809 --> 00:08:49,690 Suze: this answer. 159 00:08:50,049 --> 00:08:52,789 Suze: I know nothing about you. I don't know your age. 160 00:08:53,250 --> 00:08:56,169 Suze: I don't know how much we're really talking about. I 161 00:08:56,169 --> 00:08:58,609 Suze: don't know how secure your job is. I don't know 162 00:08:58,609 --> 00:09:02,030 Suze: your health. I don't know your emotion quotient, which means 163 00:09:02,250 --> 00:09:04,489 Suze: you put in $5,000 and you lose it. Are you're 164 00:09:04,489 --> 00:09:07,689 Suze: going to want to commit financial suicide? Some people can't 165 00:09:07,690 --> 00:09:11,409 Suze: afford and don't want to emotionally lose even $10. So 166 00:09:11,409 --> 00:09:16,909 Suze: how can I answer that question? I cannot. So therefore... 167 00:09:17,460 --> 00:09:20,098 Suze: I can't answer that question. Go on, KT. 168 00:09:21,690 --> 00:09:23,280 KT: But he is smart enough to listen. 169 00:09:23,489 --> 00:09:26,090 Suze: Smart enough to listen. But James, if you've been listening 170 00:09:26,090 --> 00:09:28,849 Suze: now for a while, you would know that, you know. 171 00:09:29,049 --> 00:09:31,929 Suze: But just assuming that you don't know a lot about 172 00:09:31,929 --> 00:09:34,530 Suze: the stock market because you must not even to ask 173 00:09:34,530 --> 00:09:35,450 Suze: that question. 174 00:09:35,890 --> 00:09:40,089 Suze: If you're still relatively young, you have at least 5, 10, 15, 175 00:09:40,190 --> 00:09:42,929 Suze: 20 years till you need the money and you don't 176 00:09:42,929 --> 00:09:45,369 Suze: know what to do. Why don't you just dollar cost 177 00:09:45,369 --> 00:09:49,169 Suze: average every month in a Roth IRA in a Standard 178 00:09:49,169 --> 00:09:51,419 Suze: and Poor's 500 index fund? 179 00:09:51,530 --> 00:09:52,090 KT: There you go, James. 180 00:09:53,049 --> 00:09:54,690 Suze: Actually an ETF. All right, 181 00:09:54,809 --> 00:09:57,599 KT: All right, there you go, James. This is from Sarah. 182 00:09:57,650 --> 00:10:00,609 KT: She said, My husband and I are 60 and 63. 183 00:10:00,969 --> 00:10:03,289 KT: He is retired, and I will be soon. 184 00:10:03,799 --> 00:10:08,200 KT: We are very well suited financially. We have always lived 185 00:10:08,200 --> 00:10:10,760 KT: within our means and continue to do so and enjoy 186 00:10:10,760 --> 00:10:15,640 KT: a retirement of purposeful travel, fitness, and continuing 187 00:10:15,640 --> 00:10:15,840 KT: education. 188 00:10:15,919 --> 00:10:17,919 Suze: Don't you find this is an interesting way to start 189 00:10:17,919 --> 00:10:20,819 Suze: a question? What, what, where's she going? Where's she going? 190 00:10:20,919 --> 00:10:25,280 KT: OK, ready. Here's where she's going. My husband loves cars. 191 00:10:25,400 --> 00:10:26,109 KT: Are you ready? 192 00:10:27,440 --> 00:10:29,950 KT: He'd like to purchase a car that I feel is 193 00:10:30,000 --> 00:10:31,039 KT: too expensive. 194 00:10:31,400 --> 00:10:34,608 KT: It will cost about $90,000. 195 00:10:34,940 --> 00:10:37,020 KT: Is that, um, is that one of those, um... 196 00:10:37,059 --> 00:10:39,200 Suze: I don't know what kind it is, KT. 197 00:10:39,340 --> 00:10:41,719 KT: Which I personally feel is ridiculous 198 00:10:41,719 --> 00:10:42,799 Suze: Don't become like James now. 199 00:10:43,059 --> 00:10:45,739 KT: All right, wait, so Sarah said, I feel, I personally 200 00:10:45,739 --> 00:10:48,950 KT: feel this is a ridiculous price to pay for a vehicle. 201 00:10:49,140 --> 00:10:52,979 KT: He's a car guy and ready, Suze? Her husband says 202 00:10:52,979 --> 00:10:55,200 KT: cars give him pleasure. 203 00:10:55,739 --> 00:10:57,260 Suze: Now how old is he? 204 00:10:57,580 --> 00:11:00,619 KT: Well, 60 and 63, so I think he's 60. She's 205 00:11:00,619 --> 00:11:03,239 KT: a little older and wiser. This is... 206 00:11:03,729 --> 00:11:05,549 KT: This is a big argument between us. 207 00:11:05,700 --> 00:11:07,739 Suze: Does it say he just turned 60 like he's in 208 00:11:07,739 --> 00:11:08,260 Suze: his sixties? 209 00:11:08,570 --> 00:11:11,140 KT: It says my husband and I are 60 and 63. 210 00:11:11,340 --> 00:11:13,940 KT: He's retired. He's retired. 211 00:11:14,640 --> 00:11:17,179 Suze: So he's 60, right? All right. 212 00:11:17,570 --> 00:11:22,169 KT: She's 63, a little wiser. Ready? It's a big argument 213 00:11:22,169 --> 00:11:24,530 KT: between us. At a minimum, I'd like him to buy 214 00:11:24,530 --> 00:11:27,109 KT: a car that is two or three years old. 215 00:11:27,570 --> 00:11:30,098 KT: She said, yes, I know we have the money for this, 216 00:11:30,219 --> 00:11:34,978 KT: but it doesn't fit with my values. So, is this 217 00:11:34,979 --> 00:11:39,299 KT: a money solution or a value solution? What do you think, Suze? 218 00:11:40,140 --> 00:11:43,039 Suze: Sarah, in my opinion, your husband is going through something 219 00:11:43,039 --> 00:11:45,479 Suze: that I call the dollar of the decades. 220 00:11:46,140 --> 00:11:50,479 Suze: It's almost as if men, not women, but when men 221 00:11:50,780 --> 00:11:57,340 Suze: turn a decade, 50, 60, 70, those ages, for some 222 00:11:57,340 --> 00:12:01,780 Suze: reason they wanna buy a boy toy. They wanna impress 223 00:12:01,780 --> 00:12:04,260 Suze: other people at a stop sign and say, look at 224 00:12:04,260 --> 00:12:09,900 Suze: what I have, especially if they have retired. It's a 225 00:12:09,900 --> 00:12:12,000 Suze: very fascinating thing. 226 00:12:12,479 --> 00:12:15,969 Suze: And I have a feeling that's what he's going through, 227 00:12:16,010 --> 00:12:18,929 Suze: and you say that he always loves cars. 228 00:12:19,710 --> 00:12:23,559 Suze: Well, think about that. KT and I are very, very 229 00:12:23,559 --> 00:12:29,109 Suze: wealthy women, and I love cars, but it would not 230 00:12:29,109 --> 00:12:33,109 Suze: matter how wealthy we are. No way would I ever 231 00:12:33,109 --> 00:12:34,799 Suze: spend $90,000 on a car. 232 00:12:35,109 --> 00:12:36,570 KT: Tell them what you drive. 233 00:12:37,000 --> 00:12:42,929 Suze: I drive a 2012 Mercedes convertible that's worth now maybe 234 00:12:42,929 --> 00:12:47,469 Suze: $10,000 or less at this point in time. 235 00:12:47,880 --> 00:12:51,119 Suze: We only have 50,000, 60,000 miles on it. 236 00:12:51,130 --> 00:12:52,159 KT: 53,000. 237 00:12:52,210 --> 00:12:54,729 Suze: All right, but it's, oh, now you know numbers. 238 00:12:54,729 --> 00:12:56,150 KT: Because I'm, I'm the driver. 239 00:12:56,940 --> 00:13:00,770 Suze: Anyway, but it's like what a waste of money in 240 00:13:00,770 --> 00:13:06,770 Suze: my opinion. However, it's something that he wants, and with 241 00:13:06,770 --> 00:13:10,280 Suze: KT before either of us spend a large sum of 242 00:13:10,280 --> 00:13:14,449 Suze: money or wanna buy something, both of us have to 243 00:13:14,450 --> 00:13:17,500 Suze: be in agreement because it's both of our money. 244 00:13:18,030 --> 00:13:21,960 Suze: And this is both of your money, and I always 245 00:13:21,960 --> 00:13:24,299 Suze: go with the one that doesn't want to do something. 246 00:13:24,840 --> 00:13:27,640 Suze: If KT doesn't wanna do it, and I really wanna 247 00:13:27,640 --> 00:13:31,840 Suze: do it, we do not do it, cause you are 248 00:13:31,840 --> 00:13:35,559 Suze: gonna be a little bit resentful the whole time. But 249 00:13:35,559 --> 00:13:38,359 Suze: here's how I would deal with it if I were you. 250 00:13:39,349 --> 00:13:42,429 Suze: You have to sit down with him and you have 251 00:13:42,429 --> 00:13:46,669 Suze: to say, can we just seriously figure out what this 252 00:13:46,669 --> 00:13:50,469 Suze: car is actually going to cost us because Sarah, it's 253 00:13:50,469 --> 00:13:54,549 Suze: not just $90,000. There's gonna be tax on it, there's 254 00:13:54,549 --> 00:13:56,510 Suze: gonna be all kinds of things on it, but just 255 00:13:56,510 --> 00:14:00,669 Suze: let's say it was $90,000 including tax. 256 00:14:01,289 --> 00:14:05,409 Suze: But that's not where it ends. When you own a 257 00:14:05,409 --> 00:14:12,108 Suze: $90,000 car, you have automobile insurance. So you're looking at, 258 00:14:12,119 --> 00:14:15,169 Suze: at least, depending on his record, everything else, even his 259 00:14:15,169 --> 00:14:19,090 Suze: FICO score, believe it or not, $4,000 to $6,000 a 260 00:14:19,090 --> 00:14:22,969 Suze: year in insurance. You're looking at maintenance on a car 261 00:14:22,969 --> 00:14:23,650 Suze: like that. 262 00:14:24,289 --> 00:14:30,260 Suze: And maintenance could easily be $2,500, $1,500 a year. You're 263 00:14:30,260 --> 00:14:34,159 Suze: looking at depreciation, by the way, of anywhere between $9,000 264 00:14:34,159 --> 00:14:39,140 Suze: and $12,000. Actually, it could be more like $18,000 the 265 00:14:39,140 --> 00:14:41,969 Suze: second he drives it off the lot. Just saying so, 266 00:14:41,979 --> 00:14:45,239 Suze: he lost that money right there. Fuel for the car. 267 00:14:46,340 --> 00:14:49,979 Suze: $90,000 cars unless it's electric, and I somehow I have 268 00:14:49,979 --> 00:14:53,020 Suze: a feeling it's not. It's gonna be at least, depending 269 00:14:53,020 --> 00:14:58,419 Suze: on price of fuel, $2,500 - $3,000 and then registration 270 00:14:58,419 --> 00:15:00,900 Suze: and all of these things. So you're looking at least 271 00:15:00,900 --> 00:15:08,299 Suze: besides the $90,000, $8,500 to $10,000 a year just to 272 00:15:08,299 --> 00:15:09,900 Suze: have that car, OK. 273 00:15:10,739 --> 00:15:13,380 Suze: Now let's do the math on the real cost of 274 00:15:13,380 --> 00:15:17,140 Suze: this car because he's just looking at $90,000. The way 275 00:15:17,140 --> 00:15:19,479 Suze: that I would do it is I would say, OK, 276 00:15:19,900 --> 00:15:25,369 Suze: what is $90,000 deposited into an account right now? Let's 277 00:15:25,369 --> 00:15:30,119 Suze: just say that's true, and you add $8,500 a year 278 00:15:30,299 --> 00:15:34,039 Suze: for five years. What is the cost of that car 279 00:15:34,039 --> 00:15:37,140 Suze: over five years? And let's just say that money was 280 00:15:37,140 --> 00:15:39,200 Suze: able to make a 7% 281 00:15:39,530 --> 00:15:44,549 Suze: annual average rate of return, you're looking at about $175,000 282 00:15:44,770 --> 00:15:47,679 Suze: for the cost of that car and and in five years, 283 00:15:47,690 --> 00:15:49,090 Suze: if he wanted to sell it. 284 00:15:49,719 --> 00:15:53,640 Suze: Good luck if he gets more than $38,000 to $45,000. 285 00:15:54,030 --> 00:15:57,760 Suze: So he now is making an investment as you are 286 00:15:57,760 --> 00:16:01,590 Suze: entering your retirement years, and he is no longer working, 287 00:16:01,799 --> 00:16:03,710 Suze: and he is looking at how much money you have, 288 00:16:03,719 --> 00:16:06,679 Suze: and he thinks that he can just do this. He 289 00:16:06,679 --> 00:16:12,400 Suze: has to understand the financial ramifications of making a purchase 290 00:16:12,400 --> 00:16:17,000 Suze: like this. You never look, everybody, at just what something 291 00:16:17,000 --> 00:16:18,409 Suze: costs you to buy. 292 00:16:18,960 --> 00:16:21,609 Suze: You have to look at what does it cost you 293 00:16:21,609 --> 00:16:23,469 Suze: to keep, right, KT? 294 00:16:24,330 --> 00:16:26,039 KT: Absolutely. You know what I would do? 295 00:16:26,169 --> 00:16:27,130 Suze: What would you do? 296 00:16:27,130 --> 00:16:29,210 KT: If I were her? I would, because they have all 297 00:16:29,210 --> 00:16:33,530 KT: of these very special like fancy car, you know, loan 298 00:16:33,530 --> 00:16:37,530 KT: places or renting places. I would rent one for a week, 299 00:16:37,650 --> 00:16:38,849 KT: see if he gets it out of his 300 00:16:38,849 --> 00:16:39,260 KT: system. 301 00:16:39,369 --> 00:16:43,010 Suze: Now, what I would do is rather than buying it 302 00:16:43,010 --> 00:16:43,549 Suze: right away. 303 00:16:44,849 --> 00:16:47,530 Suze: There's always going to be a $90,000 car that he 304 00:16:47,530 --> 00:16:48,090 Suze: can buy. 305 00:16:49,270 --> 00:16:51,989 Suze: And given that Sarah does not want to do it, 306 00:16:52,039 --> 00:16:55,340 Suze: it's going to cause problems between them. It just is. 307 00:16:55,760 --> 00:16:57,840 Suze: I just have to ask you this question. If it 308 00:16:57,840 --> 00:17:00,200 Suze: was me, what would you say? 309 00:17:01,780 --> 00:17:06,310 KT: Seriously, at your age and with the amount of money 310 00:17:06,310 --> 00:17:11,670 KT: you have, Suze, if that car makes you happy, buy it, 311 00:17:11,750 --> 00:17:13,310 KT: but I'm not gonna drive it. 312 00:17:14,130 --> 00:17:15,469 Suze: Oh, then I would never buy it. 313 00:17:17,579 --> 00:17:20,859 Suze: Yeah, it's at this time in your life, everything you 314 00:17:20,859 --> 00:17:23,930 Suze: do with money, both of you have to say yes, 315 00:17:24,020 --> 00:17:25,180 Suze: and if you don't, 316 00:17:26,540 --> 00:17:30,150 Suze: and it really upsets you. I'm sorry, I would just 317 00:17:30,150 --> 00:17:30,859 Suze: say no. 318 00:17:30,469 --> 00:17:34,250 Suze: Now, maybe he wants to buy a car that's two 319 00:17:34,250 --> 00:17:37,738 Suze: or three years old and you could compromise somehow like that. 320 00:17:38,050 --> 00:17:38,929 KT: Yeah, meet him in the middle. 321 00:17:38,979 --> 00:17:40,790 Suze: Meet him in the middle, but... 322 00:17:40,880 --> 00:17:43,660 KT: And say to him, let's sit down and look at 323 00:17:43,660 --> 00:17:46,420 KT: the expenses because Susie just laid it out for you 324 00:17:46,579 --> 00:17:49,420 KT: and Sarah say, Let's, let's meet in the middle. Let's 325 00:17:49,420 --> 00:17:52,739 KT: compromise because I want you to be happy, but I 326 00:17:52,739 --> 00:17:55,300 KT: also want you to respect my values. 327 00:17:55,380 --> 00:17:57,650 Suze: Yeah, but the truth is, I'm telling you, it's the 328 00:17:57,650 --> 00:18:01,698 Suze: dollar of the decades, 60, uh-huh, OK. 329 00:18:04,030 --> 00:18:07,229 Suze: I tell you, a car is such an... I, I 330 00:18:07,229 --> 00:18:07,869 Suze: know we're going on, 331 00:18:08,000 --> 00:18:12,250 KT: Yeah, because Suze's a car person, Sarah. I'm not at all. 332 00:18:12,349 --> 00:18:15,819 KT: I don't care what wheels you put under me, but 333 00:18:15,819 --> 00:18:19,430 KT: she loves cars. She likes to go. She likes to 334 00:18:19,430 --> 00:18:22,150 KT: go to the showrooms and walk around and look, and 335 00:18:22,150 --> 00:18:24,550 KT: she knows everything about cars. 336 00:18:25,250 --> 00:18:28,209 KT: She's been looking at me for probably the past six 337 00:18:28,209 --> 00:18:31,290 KT: years saying maybe we need to think about what our 338 00:18:31,290 --> 00:18:34,760 KT: next car will be since this one's so old, but 339 00:18:34,760 --> 00:18:36,188 KT: she loves this little Mercedes. 340 00:18:36,199 --> 00:18:38,479 Suze: I can't do it. I just can't waste money like that. 341 00:18:38,550 --> 00:18:44,010 Suze: I just can't do it. It goes against my own values. 342 00:18:44,089 --> 00:18:46,849 Suze: But KT, what I was gonna say to you and 343 00:18:46,849 --> 00:18:51,880 Suze: everybody else, please understand that a car is actually one 344 00:18:51,880 --> 00:18:54,530 Suze: of the most dangerous investments you can make. 345 00:18:55,020 --> 00:18:58,979 Suze: Because all it takes is somebody smashing into you, somebody 346 00:18:58,979 --> 00:19:03,979 Suze: cracking your windows, somebody stealing it. It is not an investment. 347 00:19:04,060 --> 00:19:08,750 Suze: It's simply a showoff toy for others if you ask me. 348 00:19:09,020 --> 00:19:11,939 KT: Well, that may be that kind of vehicle. Most cars 349 00:19:11,939 --> 00:19:13,899 KT: are for you to use to get to work, or travel. 350 00:19:15,260 --> 00:19:16,290 Suze: He's retired. He doesn't need a $90,000 car. 351 00:19:17,209 --> 00:19:19,109 Suze: But hey, what do I know? All right. 352 00:19:19,109 --> 00:19:23,189 KT: This next question is from Debbie. She said, Dear KT, 353 00:19:23,550 --> 00:19:25,829 KT: she said, I'm listing your name first, so you hopefully 354 00:19:25,829 --> 00:19:29,010 KT: you'll pick me, and I did, Debbie. You were right. 355 00:19:29,550 --> 00:19:32,719 KT: She said, Dear KT and Suze, if you are single, 356 00:19:32,869 --> 00:19:38,270 KT: should the primary beneficiary on an employer retirement account be 357 00:19:38,270 --> 00:19:41,750 KT: the same as the name of the trust, or is 358 00:19:41,750 --> 00:19:45,209 KT: it best to name a designated beneficiary instead? 359 00:19:45,880 --> 00:19:48,550 KT: She said, I'm desperate for an answer from you. 360 00:19:48,680 --> 00:19:51,800 Suze: If you're desperate, if you're desperate, Debbie, 361 00:19:51,880 --> 00:19:53,719 Suze: let me see if I can help you here. Oh 362 00:19:53,719 --> 00:19:57,280 Suze: my God, my desperate one. Here comes your financial lifesaver 363 00:19:57,280 --> 00:19:58,619 Suze: to rescue you. 364 00:19:59,130 --> 00:20:02,250 Suze: Just put it in your individual name since I don't 365 00:20:02,250 --> 00:20:04,930 Suze: know what kind of trust you have, and it has 366 00:20:04,930 --> 00:20:07,609 Suze: to be a see-through trust and everything like that, if 367 00:20:07,609 --> 00:20:12,160 Suze: it's a beneficiary of any retirement account, since you're single, right, 368 00:20:12,329 --> 00:20:15,949 Suze: the beneficiary should be the name of whoever you want 369 00:20:15,949 --> 00:20:16,709 Suze: to leave 370 00:20:17,285 --> 00:20:21,165 Suze: this too, all right. And if you're married, it should 371 00:20:21,165 --> 00:20:24,405 Suze: absolutely be the name of your spouse, by the way, 372 00:20:24,484 --> 00:20:27,765 Suze: for those of you who are married, the contingent beneficiary, 373 00:20:27,844 --> 00:20:31,214 Suze: if you know it's a see-through trust, can be a trust. 374 00:20:31,324 --> 00:20:31,795 Suze: All right. 375 00:20:32,084 --> 00:20:35,583 KT: OK. My next question is from Carla. I love this question. 376 00:20:35,925 --> 00:20:40,844 KT: She said, I'll be turning 65 in August of 2026. 377 00:20:41,165 --> 00:20:44,525 KT: I'm still working full time with no plans to retire 378 00:20:44,525 --> 00:20:45,665 KT: anytime soon. 379 00:20:45,930 --> 00:20:51,319 KT: I have good medical, dental, vision, and prescription drug benefits. 380 00:20:51,729 --> 00:20:55,609 KT: Do I still need to enroll in Medicare? If so, 381 00:20:55,729 --> 00:20:58,609 KT: what parts? I love this question. 382 00:20:58,609 --> 00:20:59,069 Suze: How old is she? 383 00:20:59,290 --> 00:21:02,698 KT: She's 64 today, but in August next year. 384 00:21:02,709 --> 00:21:03,489 Suze: Yes, I hear that. But... 385 00:21:03,489 --> 00:21:04,900 KT: She'll turn 65. 386 00:21:04,969 --> 00:21:06,589 Suze: But how long does she plan to work? 387 00:21:07,239 --> 00:21:09,958 KT: She plans to not retire anytime soon. 388 00:21:09,959 --> 00:21:13,040 Suze: She didn't give a time frame for that. All right, let, 389 00:21:13,160 --> 00:21:14,560 Suze: let me just see this for a second. 390 00:21:15,000 --> 00:21:18,159 KT: Can I just say something? I couldn't wait to turn 65 391 00:21:18,160 --> 00:21:19,500 KT: to get Medicare benefits. 392 00:21:19,550 --> 00:21:22,819 Suze: But you weren't working for a corporation that already gives 393 00:21:22,819 --> 00:21:25,189 Suze: you health insurance, Miss Travis. 394 00:21:25,199 --> 00:21:25,540 KT: OK. 395 00:21:26,209 --> 00:21:29,369 Suze: Right. So, I'm so glad we were happy to do so, 396 00:21:29,439 --> 00:21:33,089 Suze: but we didn't work for anybody but ourselves. So, my 397 00:21:33,089 --> 00:21:36,589 Suze: dear Carla, here's what it depends on two key facts, 398 00:21:36,849 --> 00:21:38,010 Suze: all right. Number one: 399 00:21:38,599 --> 00:21:44,169 Suze: How many employees does your employer have? KT's looking at me. 400 00:21:44,170 --> 00:21:45,329 KT: With question, like why? 401 00:21:45,699 --> 00:21:49,170 Suze: KT this question and answer is so critical. I can't 402 00:21:49,170 --> 00:21:53,250 Suze: even tell you because if her employer has 20 or 403 00:21:53,250 --> 00:21:58,489 Suze: more employees, then your employer plan, her employer plan has 404 00:21:58,489 --> 00:22:00,489 Suze: to remain as primary. 405 00:22:00,880 --> 00:22:05,640 Suze: And she does not need Medicare B or D at 65. 406 00:22:06,050 --> 00:22:09,290 Suze: She doesn't need those at all. She can and she 407 00:22:09,290 --> 00:22:14,130 Suze: should delay both with no penalty because it's B and 408 00:22:14,130 --> 00:22:18,930 Suze: D that can be expensive. However, if her employer KT 409 00:22:18,930 --> 00:22:25,089 Suze: has fewer than 20 employees, then Medicare becomes her primary. 410 00:22:25,500 --> 00:22:29,739 Suze: And her employer plan becomes secondary. So in this case, 411 00:22:29,900 --> 00:22:33,500 Suze: my dear Carla, you must enroll in Part A and 412 00:22:33,500 --> 00:22:36,520 Suze: Part B at 65 or you risk 413 00:22:37,329 --> 00:22:41,599 Suze: being able to have any claims that are absolutely approved, 414 00:22:41,609 --> 00:22:43,890 Suze: like all these kinds of things, so you have to 415 00:22:43,890 --> 00:22:48,010 Suze: first confirm your employer size, and I can tell you 416 00:22:48,010 --> 00:22:51,550 Suze: to do so just call your HR department and ask them. 417 00:22:51,969 --> 00:22:56,889 Suze: And the question becomes should she enroll in Medicare A 418 00:22:56,890 --> 00:23:01,810 Suze: at 65 and she enrolls only in Part A if 419 00:23:01,810 --> 00:23:05,510 Suze: it is free, and she has to figure that out. 420 00:23:05,920 --> 00:23:08,959 Suze: So if she's worked for 10 years, 40 quarters, da 421 00:23:08,959 --> 00:23:11,760 Suze: da da, she'll be able to do it. But if 422 00:23:11,760 --> 00:23:17,400 Suze: she has an HSA account, a health savings account, and 423 00:23:17,400 --> 00:23:21,679 Suze: she's contributing to it, if she enrolls in Medicare Part A, 424 00:23:21,800 --> 00:23:25,369 Suze: she won't be able to have a health savings account. 425 00:23:25,680 --> 00:23:28,119 Suze: So she has to know that because it will immediately 426 00:23:28,119 --> 00:23:32,819 Suze: disqualify her from it. So, Carla, if you are contributing 427 00:23:32,819 --> 00:23:33,929 Suze: to an HSA. 428 00:23:34,660 --> 00:23:39,380 Suze: Then delay Part A until you stop contributing. If no, 429 00:23:39,579 --> 00:23:44,140 Suze: enroll in Part A at 65, again, only if it's free. 430 00:23:44,969 --> 00:23:47,880 Suze: All right, so there you go. I just told her 431 00:23:47,880 --> 00:23:51,130 Suze: what she needs. That's it. It's not that simple, believe 432 00:23:51,130 --> 00:23:53,760 Suze: it or not. You thought that was a simple question, didn't you? 433 00:23:53,849 --> 00:23:54,208 KT: I did. 434 00:23:54,969 --> 00:23:56,270 Suze: What did you think I was gonna say? 435 00:23:58,479 --> 00:24:01,959 KT: Take it like I did. I couldn't because I, I 436 00:24:01,959 --> 00:24:03,920 KT: got so excited that I didn't have to pay all 437 00:24:03,920 --> 00:24:04,760 KT: those medical bills. 438 00:24:04,829 --> 00:24:08,000 Suze: Yeah, but I can tell you one thing. Always go 439 00:24:08,000 --> 00:24:14,719 Suze: for Medicare. Always, always, always be very, very careful of 440 00:24:14,719 --> 00:24:17,650 Suze: Medicare Advantage. Warning, warning... 441 00:24:17,859 --> 00:24:19,000 KT: warning, warning. 442 00:24:19,160 --> 00:24:19,839 Suze: All right, 443 00:24:20,119 --> 00:24:22,640 KT: Suze, my next question is from Janeth. 444 00:24:23,680 --> 00:24:24,639 Suze: What kind of name is that? 445 00:24:24,640 --> 00:24:28,319 KT: Janeth. It's Janeth. It's not Janice, it's Janeth. 446 00:24:29,130 --> 00:24:31,030 Suze: I'm wonder why they named her that. 447 00:24:31,410 --> 00:24:36,209 KT: Probably someone Jane and Beth - Janeth, like maybe two 448 00:24:36,209 --> 00:24:36,930 KT: names together. 449 00:24:37,050 --> 00:24:38,520 Suze: Only you would come up with that, 450 00:24:38,680 --> 00:24:41,369 KT: Janeth said, Suze, I'm 60 years old. I'd like to 451 00:24:41,369 --> 00:24:43,400 KT: know if it's a good idea to take money out 452 00:24:43,400 --> 00:24:47,409 KT: of my 401k and pay off the balance on the 453 00:24:47,410 --> 00:24:51,250 KT: apartment where I live. The HOA fees are high, and 454 00:24:51,250 --> 00:24:54,250 KT: I haven't been able to sell it. My mother lives 455 00:24:54,250 --> 00:24:56,250 KT: with me. She has dementia. 456 00:24:56,579 --> 00:25:02,849 KT: And I am on my own. My annual salary is $55,000. Hmm. 457 00:25:03,390 --> 00:25:05,649 KT: And she said, thank you. So she's asking... 458 00:25:05,650 --> 00:25:06,663 Suze: How old is she? 459 00:25:06,663 --> 00:25:07,770 KT: 60, and her... 460 00:25:07,770 --> 00:25:08,650 Suze: Do you think she's still working? 461 00:25:08,829 --> 00:25:12,810 Suze: Yeah, she said her annual salary is $55,000. 462 00:25:12,859 --> 00:25:13,669 Suze: I'm not listening very good this morning. 463 00:25:13,910 --> 00:25:13,989 KT: No. 464 00:25:14,316 --> 00:25:16,630 Suze: That's because I have water in my left ear. 465 00:25:16,910 --> 00:25:17,510 KT: You do? 466 00:25:17,790 --> 00:25:19,630 Suze: Wanna hear it squeak if I blow my nose? 467 00:25:19,760 --> 00:25:23,099 KT: No, it squeaks real loud when she does that I 468 00:25:23,099 --> 00:25:24,119 KT: don't like that. 469 00:25:24,660 --> 00:25:25,849 Suze: Does it irritate you? 470 00:25:26,030 --> 00:25:29,040 KT: Well, no, it seems like something's wrong that this water 471 00:25:29,040 --> 00:25:30,239 KT: is stuck in there. 472 00:25:30,540 --> 00:25:32,560 Suze: Well, who, who goes in the pool on the ocean 473 00:25:32,560 --> 00:25:33,459 Suze: all the time? 474 00:25:33,699 --> 00:25:34,140 KT: You do. 475 00:25:34,339 --> 00:25:41,619 Suze: All right, anyway, so Janeth, here's the thing, KT pop quizzy. 476 00:25:43,989 --> 00:25:45,920 KT: Should she, should she do what? 477 00:25:46,469 --> 00:25:48,310 Suze: What are you talking about? Should she do what? You 478 00:25:48,310 --> 00:25:51,630 Suze: just read this to me. See, she already went on to... 479 00:25:52,310 --> 00:25:53,189 KT: She said takes money out what she. 480 00:25:53,550 --> 00:25:57,349 KT: No, don't take money out of the 401k. First of all, 481 00:25:57,459 --> 00:25:59,390 KT: when she takes it out, number one, she has to 482 00:25:59,390 --> 00:26:02,956 KT: pay taxes on it. So if she's 60... wait, 59 and 483 00:26:02,956 --> 00:26:04,329 KT: a half, she doesn't have to pay... 484 00:26:04,790 --> 00:26:05,390 Suze: A penalty. 485 00:26:05,430 --> 00:26:10,209 KT: A penalty, but she still has to pay on it. Second, um, 486 00:26:10,310 --> 00:26:12,229 KT: that's her security blanket. 487 00:26:12,689 --> 00:26:15,729 KT: I think that she should just aggressively try to sell 488 00:26:15,729 --> 00:26:19,209 KT: the apartment and downsize or do something. Do not touch 489 00:26:19,209 --> 00:26:23,750 KT: the 401k. Yeah, no way. Don't touch it. 490 00:26:24,010 --> 00:26:26,290 Suze: But here's what I'd like you to think about. 491 00:26:27,260 --> 00:26:30,560 Suze: If you need to sell something, and you're desperate enough 492 00:26:30,560 --> 00:26:33,859 Suze: to think about taking money out of your 401k and 493 00:26:33,859 --> 00:26:37,180 Suze: you do not tell me how much you have in 494 00:26:37,180 --> 00:26:42,290 Suze: your 401k and what the balance is on your apartment, 495 00:26:42,579 --> 00:26:44,180 Suze: do you all get the idea, I 496 00:26:44,270 --> 00:26:47,109 Suze: cannot answer these questions for you if you don't give 497 00:26:47,109 --> 00:26:49,349 Suze: me the facts, and that doesn't mean it has to 498 00:26:49,349 --> 00:26:52,390 Suze: be a three page essay. It could have been, should 499 00:26:52,390 --> 00:26:56,859 Suze: I take money out of my 401k that has $500,000 500 00:26:56,859 --> 00:26:59,150 Suze: in it to pay off the balance on the apartment 501 00:26:59,150 --> 00:27:02,169 Suze: where I live? That's all it needed to be because 502 00:27:02,270 --> 00:27:06,109 Suze: you're saying since the HOA fees are high, that's kind 503 00:27:06,109 --> 00:27:08,410 Suze: of why you wanna sell. If you took the money 504 00:27:08,410 --> 00:27:10,069 Suze: out of your 401k, 505 00:27:10,959 --> 00:27:14,479 Suze: think about how much money you would lose in taxes, 506 00:27:14,560 --> 00:27:15,719 Suze: all right? Number one. 507 00:27:16,569 --> 00:27:20,129 Suze: Number two, since you're willing to lose that money in 508 00:27:20,130 --> 00:27:24,010 Suze: taxes from your 401k, why don't you reduce the price 509 00:27:24,010 --> 00:27:27,849 Suze: of your apartment by that amount of money, since you 510 00:27:27,849 --> 00:27:31,129 Suze: were willing to lose it anyway, to get somebody to 511 00:27:31,130 --> 00:27:33,629 Suze: buy it because you're lowering the price. 512 00:27:34,199 --> 00:27:36,879 Suze: Do you understand what I'm saying to you? If you 513 00:27:36,890 --> 00:27:40,359 Suze: can't sell it, it means it's priced too high. If 514 00:27:40,359 --> 00:27:42,599 Suze: you need to sell it and you're willing to take 515 00:27:42,599 --> 00:27:46,380 Suze: money out of a 401k, lower the price until somebody 516 00:27:46,680 --> 00:27:49,198 Suze: buys it, period. All right, KT. 517 00:27:49,280 --> 00:27:53,400 KT: Yeah, don't touch the 401. OK. This is from Catherine. 518 00:27:53,510 --> 00:27:56,680 KT: This is my final question. She said, my dad put 519 00:27:56,680 --> 00:28:02,040 KT: a million dollars in an IRA from me back in 1987. 520 00:28:03,000 --> 00:28:08,160 KT: Before he remarried, ready? In the last six years, my 521 00:28:08,160 --> 00:28:11,119 KT: brother said he took out my money and gave it 522 00:28:11,119 --> 00:28:14,959 KT: to him. My brother hasn't worked in six years and 523 00:28:14,959 --> 00:28:20,459 KT: has received at least $150,000 a year from my dad. 524 00:28:20,810 --> 00:28:22,479 KT: He's lost all of it. 525 00:28:22,959 --> 00:28:26,060 KT: My dad, who is 90 years old, said to us 526 00:28:26,280 --> 00:28:28,920 KT: that my brother and I will get nothing when he 527 00:28:28,920 --> 00:28:35,359 KT: dies because money doesn't create happiness. Hmm. Sounds a little sad, right? 528 00:28:35,719 --> 00:28:38,839 KT: He can do anything he wants with his money. He 529 00:28:38,839 --> 00:28:41,760 KT: worked hard for every cent, but I'd like to hear 530 00:28:41,760 --> 00:28:44,800 KT: an honest explanation as to why he took care of 531 00:28:44,800 --> 00:28:47,099 KT: one child and not the other. 532 00:28:47,719 --> 00:28:52,760 KT: So Catherine's feeling pretty sad over this. In 1987, you 533 00:28:52,760 --> 00:28:55,738 KT: would think that a million dollars would have really grown 534 00:28:55,739 --> 00:29:00,439 KT: a lot, and the brother only in the last six 535 00:29:00,439 --> 00:29:02,890 KT: years has been taking money out. 536 00:29:03,640 --> 00:29:07,160 Suze: So, the father probably opened up an IRA in the 537 00:29:07,160 --> 00:29:10,920 Suze: father's name. He did a transfer, $1 million. 538 00:29:11,920 --> 00:29:16,359 Suze: And made Catherine, the daughter, the beneficiary. 539 00:29:17,390 --> 00:29:21,699 Suze: Somewhere in there, however, it doesn't matter who the beneficiary is, 540 00:29:21,790 --> 00:29:26,270 Suze: that only comes to play upon death. For some reason, 541 00:29:26,550 --> 00:29:31,910 Suze: the father was taking out money every year or however 542 00:29:31,910 --> 00:29:34,380 Suze: many times he did it that Catherine may or may 543 00:29:34,380 --> 00:29:39,109 Suze: not even know about it until all the money was depleted. 544 00:29:39,229 --> 00:29:42,270 Suze: Now we don't know how the money was invested. 545 00:29:42,650 --> 00:29:45,939 Suze: And maybe even years later, it was only worth a 546 00:29:45,939 --> 00:29:48,280 Suze: million dollars. Maybe he just put it in an account 547 00:29:48,280 --> 00:29:51,380 Suze: that wasn't earning any interest, who knows? So, if you 548 00:29:51,380 --> 00:29:53,579 Suze: think about it, KT, OK. 549 00:29:54,290 --> 00:30:00,150 Suze: 150,000 a year over six years is like 900,000. So 550 00:30:00,329 --> 00:30:02,130 Suze: he may have used up all of it, who knows 551 00:30:02,130 --> 00:30:04,560 Suze: what happened to the rest of it, but... 552 00:30:05,469 --> 00:30:09,550 Suze: The only way to solve this is for Catherine, for 553 00:30:09,550 --> 00:30:11,209 Suze: you to stand in your truth. 554 00:30:11,939 --> 00:30:16,569 Suze: Not why did he favor one child over another. 555 00:30:17,770 --> 00:30:21,290 Suze: Why... not any of that. Just sit down with your 556 00:30:21,290 --> 00:30:24,329 Suze: dad and say, Dad, listen, I know it's your money. 557 00:30:24,569 --> 00:30:26,530 Suze: You worked hard for it, and you can do anything 558 00:30:26,530 --> 00:30:27,489 Suze: you want with it. 559 00:30:28,290 --> 00:30:31,520 Suze: But why? I just need to know why. 560 00:30:32,349 --> 00:30:37,069 Suze: You gave at least $900,000 to my brother. 561 00:30:37,819 --> 00:30:41,140 Suze: You told me that you were opening up this account 562 00:30:41,140 --> 00:30:45,030 Suze: for me, this $1 million IRA for me. 563 00:30:45,839 --> 00:30:49,530 Suze: And now you tell us neither of us are going 564 00:30:49,530 --> 00:30:53,369 Suze: to get anything even though my brother got 900,000 of 565 00:30:53,369 --> 00:30:58,410 Suze: what supposedly you told me was mine. I understand that 566 00:30:58,410 --> 00:31:02,349 Suze: money doesn't create happiness, but it sure does create security. 567 00:31:02,890 --> 00:31:06,609 Suze: So can you just tell me why, so I can 568 00:31:06,609 --> 00:31:08,119 Suze: understand this. 569 00:31:08,579 --> 00:31:12,089 KT: Also, the father's very wealthy, Suze. 570 00:31:12,359 --> 00:31:15,239 Suze: I know he has approximately $9 million. 571 00:31:15,699 --> 00:31:18,569 KT: And this is 40 years ago. It had to have 572 00:31:18,569 --> 00:31:19,329 KT: earned some money. 573 00:31:19,329 --> 00:31:24,469 Suze: We don't know. We don't know anything, but here's the point, Catherine. 574 00:31:25,640 --> 00:31:29,819 Suze: I have no idea. KT has no idea. You have 575 00:31:29,819 --> 00:31:34,079 Suze: no idea, but you do know that you have a need. 576 00:31:34,810 --> 00:31:37,780 Suze: To talk to your father about it and you say, 577 00:31:37,859 --> 00:31:41,579 Suze: is it my business, in this email. The reason that 578 00:31:41,579 --> 00:31:45,380 Suze: it's your business is because it's bothering you and when 579 00:31:45,380 --> 00:31:49,109 Suze: you hold something in, it's going to eat at you. 580 00:31:49,260 --> 00:31:51,819 Suze: It's going to eat at your relationship with your father. 581 00:31:52,020 --> 00:31:54,880 Suze: It's going to eat at your relationship with your brother. 582 00:31:55,060 --> 00:31:59,180 Suze: It's going to eat at you, especially if you're not 583 00:31:59,180 --> 00:32:00,719 Suze: doing well financially. 584 00:32:01,670 --> 00:32:05,109 Suze: So if I were you, you have absolutely nothing to 585 00:32:05,109 --> 00:32:09,910 Suze: lose and everything to gain and say, Dad, can we 586 00:32:09,910 --> 00:32:12,310 Suze: just sit down, the two of us and talk? I 587 00:32:12,310 --> 00:32:16,390 Suze: really need to talk to you. Could you please do 588 00:32:16,390 --> 00:32:19,829 Suze: that with me? And sit down in a not in 589 00:32:19,829 --> 00:32:23,988 Suze: an accusing way, in an attacking way, but speak to 590 00:32:23,989 --> 00:32:28,910 Suze: him directly from your heart and speak with such love 591 00:32:28,910 --> 00:32:29,630 Suze: for him. 592 00:32:30,369 --> 00:32:34,449 Suze: Speak with him with such respect for him. 593 00:32:35,650 --> 00:32:40,609 Suze: Speak with him with the intention of you truly understanding 594 00:32:40,609 --> 00:32:42,410 Suze: all of this, not that you're going to get a 595 00:32:42,410 --> 00:32:45,310 Suze: million dollars, but you just want the truth. 596 00:32:46,030 --> 00:32:47,910 Suze: And you'll come out fine. 597 00:32:48,689 --> 00:32:50,859 Suze: And after you've done that, can you just write me 598 00:32:50,859 --> 00:32:56,619 Suze: and let me tell, tell me what happened. All right, KT. 599 00:32:56,619 --> 00:32:57,920 KT: That's a wrap, Suze. 600 00:32:58,859 --> 00:33:00,109 Suze: What are we gonna do now? 601 00:33:00,510 --> 00:33:02,319 Suze: You have plans. I can tell you. I know what 602 00:33:02,319 --> 00:33:04,520 Suze: you want to do today. Tell them what you wanna 603 00:33:04,520 --> 00:33:05,079 Suze: do today. 604 00:33:05,520 --> 00:33:08,800 KT: This week, the only opportunity is this afternoon I can 605 00:33:08,800 --> 00:33:12,140 KT: try to catch some yellow eye or yellow tail. 606 00:33:12,319 --> 00:33:15,660 Suze: KT, believe it or not, everybody is out of fish. 607 00:33:16,359 --> 00:33:19,239 Suze: She has no fish to eat. I personally don't like 608 00:33:19,239 --> 00:33:20,160 Suze: eating fish. I'm like... 609 00:33:20,449 --> 00:33:21,442 KT: Suze's not a big fish lover. 610 00:33:22,239 --> 00:33:24,640 Suze: Yeah, baby, we don't have to eat fish. Yeah, baby! 611 00:33:25,359 --> 00:33:27,459 KT: It's the healthiest, most delicious food. 612 00:33:28,050 --> 00:33:30,189 KT: We can, we can catch. 613 00:33:30,849 --> 00:33:34,199 Suze: You can catch, right? Actually, KT, you know, when I 614 00:33:34,199 --> 00:33:37,069 Suze: woke up this morning, I looked out the window, I went, ugh. 615 00:33:37,829 --> 00:33:38,859 Suze: Why do you think I did that? 616 00:33:38,989 --> 00:33:39,900 KT: Because it was nice. 617 00:33:40,069 --> 00:33:42,430 Suze: It was nice. And as much as I love when 618 00:33:42,430 --> 00:33:45,189 Suze: she goes fishing, I love it so much more when 619 00:33:45,189 --> 00:33:46,579 Suze: you just stay around here. 620 00:33:46,670 --> 00:33:49,109 KT: I can stay with you today if you like. 621 00:33:49,109 --> 00:33:49,949 Suze: And not fish. 622 00:33:50,150 --> 00:33:53,630 KT: Yeah, if that's your wish, I will grant your wish. 623 00:33:54,189 --> 00:33:56,310 KT: What do you think, everyone? Should I try to catch 624 00:33:56,310 --> 00:33:58,079 KT: a fish or grant her wish? 625 00:33:58,270 --> 00:34:01,150 Suze: Now, here is a perfect example of two of us disagreeing, 626 00:34:01,310 --> 00:34:02,079 Suze: kind of. 627 00:34:02,670 --> 00:34:05,869 Suze: Right, on whatever, but I'm gonna switch my vote from 628 00:34:05,869 --> 00:34:09,709 Suze: no to yes because number one, doesn't really cost anything 629 00:34:09,709 --> 00:34:11,669 Suze: to do what you're gonna do. It's gonna save money 630 00:34:11,669 --> 00:34:14,469 Suze: eventually on fish because otherwise you're gonna end up having 631 00:34:14,469 --> 00:34:17,218 Suze: to buy it when we go back to Florida, um, 632 00:34:17,510 --> 00:34:20,120 Suze: and so go for it, girlfriend. 633 00:34:20,229 --> 00:34:21,389 KT: Yay, woohoo. 634 00:34:21,510 --> 00:34:24,110 Suze: All right, everybody, until next time there's only one thing 635 00:34:24,110 --> 00:34:27,080 Suze: we want them to remember, and it's what fish first. 636 00:34:27,658 --> 00:34:32,687 Suze: Fish first, then people, then money, then things, right KT? 637 00:34:32,698 --> 00:34:34,229 KT: And you stay safe. 638 00:34:34,658 --> 00:34:36,558 Suze: Talk to you soon. Bye bye.