1 00:00:08,539 --> 00:00:14,350 Suze: May 21st, 2026. Welcome everybody to the Women and Money podcast. 2 00:00:14,460 --> 00:00:17,919 Suze: We are back. KT, are you still jet lagged? 3 00:00:18,209 --> 00:00:18,959 KT: A little bit? 4 00:00:19,219 --> 00:00:20,180 Suze: What do you mean a little bit? 5 00:00:20,180 --> 00:00:20,909 KT: Konnichiwa! 6 00:00:22,139 --> 00:00:23,559 Suze: Tell everybody what that means. 7 00:00:23,739 --> 00:00:26,940 KT: Konnichiwa means good morning in Japanese. 8 00:00:26,940 --> 00:00:30,500 Suze: We had the best time in our lives. 9 00:00:30,579 --> 00:00:31,760 KT: What was your highlight? 10 00:00:31,899 --> 00:00:34,020 Suze: I'm sure it was yours as well, but for me. 11 00:00:34,263 --> 00:00:39,583 Suze: Honest to God, meeting Fitzy Keith Fitz-Gerald and his wife 12 00:00:39,583 --> 00:00:44,223 Suze: Noriko in person was beyond the beyond. 13 00:00:44,813 --> 00:00:47,104 KT: Wait, we didn't just meet them in person. We met 14 00:00:47,104 --> 00:00:51,923 KT: them in Kyoto, his wife's hometown, and now his hometown 15 00:00:52,144 --> 00:00:55,824 KT: as well, and we met at the temple where they 16 00:00:55,824 --> 00:00:58,284 KT: were married, and it was magical. 17 00:00:59,023 --> 00:00:59,984 Suze: It was, it gives me goosebumps... 18 00:01:00,228 --> 00:01:03,027 Suze: as I'm sitting here and even thinking about it, so 19 00:01:03,027 --> 00:01:05,968 Suze: the rest of Japan was fabulous, fabulous. 20 00:01:06,148 --> 00:01:11,568 KT: Suze's second favorite was sumo wrestling. Everyone, she became hooked. 21 00:01:11,708 --> 00:01:15,828 KT: She's a sport buff and she became hooked on sumo wrestling. 22 00:01:15,938 --> 00:01:18,828 KT: She said, KT, take me to the match next year 23 00:01:18,828 --> 00:01:22,777 KT: in Tokyo. I wanna sit there right at ringside. I said, No, 24 00:01:22,828 --> 00:01:25,248 KT: you don't. If they fall off, they crush you. 25 00:01:26,181 --> 00:01:31,272 Suze: But seriously, we could not have had a better time 26 00:01:31,272 --> 00:01:32,472 Suze: if we tried. 27 00:01:32,472 --> 00:01:38,250 KT: And KT's favorite was the Benesse House which is on Nyoshima Island. 28 00:01:38,311 --> 00:01:46,291 KT: It's an art museum designed by the great architect Ando. Unbelievable. So... the best. 29 00:01:46,391 --> 00:01:52,031 Suze: There was nothing that we didn't like about that trip. 30 00:01:53,075 --> 00:01:57,575 Suze: So, we're going back again next year in May with 31 00:01:57,956 --> 00:02:01,026 Suze: Keith and Noriko to do the same things kind of 32 00:02:01,026 --> 00:02:06,515 Suze: that we did, but to go to the sumo championship matches. Oh, 33 00:02:06,596 --> 00:02:11,475 Suze: I'm so excited, but anyway, we're back. This is the 34 00:02:11,475 --> 00:02:15,796 Suze: Ask KT and Suze Anything edition. We have thousands of 35 00:02:15,796 --> 00:02:18,016 Suze: emails that came in while we were gone. 36 00:02:18,419 --> 00:02:20,300 Suze: So I hope you didn't miss us too much. I 37 00:02:20,300 --> 00:02:23,399 Suze: think we only needed to do one best of, but 38 00:02:23,500 --> 00:02:27,059 Suze: if you have a question, please send it into our 39 00:02:27,059 --> 00:02:33,759 Suze: new email address which is podcast@askSuze.com. If you've been using 40 00:02:33,758 --> 00:02:37,660 Suze: the older email address, it will still get to us, 41 00:02:38,100 --> 00:02:42,100 Suze: but the one I want you to start using is podcast@ 42 00:02:42,100 --> 00:02:44,678 Suze: Ask Suze S U Z E.com. 43 00:02:45,320 --> 00:02:49,520 Suze: That will help a lot against all kinds of things 44 00:02:49,520 --> 00:02:53,850 Suze: known as scammers and people answering you that are not me. 45 00:02:53,960 --> 00:02:57,119 Suze: All right. Therefore, that's what I want you to do. 46 00:02:57,399 --> 00:03:01,279 Suze: But KT, what do you have to start? 47 00:03:01,399 --> 00:03:03,520 KT: My first question is from Trudell. 48 00:03:04,320 --> 00:03:08,710 KT: Hi, Suze and KT, thanks for taking us along to Japan. 49 00:03:09,520 --> 00:03:12,559 Suze: What she means by that, everybody, is that if you 50 00:03:12,559 --> 00:03:15,240 Suze: go to the Women and Money community app, if you 51 00:03:15,240 --> 00:03:18,119 Suze: don't have it, you can download it on Google Play 52 00:03:18,119 --> 00:03:21,839 Suze: or Apple Apps. It's free, obviously, and on there I 53 00:03:21,839 --> 00:03:26,440 Suze: posted some of the pictures that we took while we 54 00:03:26,440 --> 00:03:29,038 Suze: were in Japan with Keith and Noriko, as well as 55 00:03:29,038 --> 00:03:32,199 Suze: the sumo wrestlers that I was with. 56 00:03:32,660 --> 00:03:34,710 Suze: I stood right in the middle of two of them. 57 00:03:34,820 --> 00:03:38,220 Suze: Oh my God, they're huge. Anyway, go there and you'll 58 00:03:38,220 --> 00:03:39,449 Suze: see them. OK, go on. 59 00:03:39,610 --> 00:03:43,020 KT: OK, if I can manage my money well, maybe I 60 00:03:43,020 --> 00:03:44,839 KT: can go there someday too. 61 00:03:46,360 --> 00:03:49,839 KT: I will be needing the income from my 401(k) within 62 00:03:49,839 --> 00:03:54,500 KT: five years. When Suze says money needed within five years 63 00:03:54,759 --> 00:03:58,559 KT: doesn't belong in the stock market, does that mean that 64 00:03:58,559 --> 00:04:03,820 KT: money I have in a 401k mutual fund, that have 65 00:04:03,820 --> 00:04:08,139 KT: underlying funds and stocks should be moved to money market 66 00:04:08,139 --> 00:04:12,300 KT: or stable value funds now? I am so grateful for 67 00:04:12,300 --> 00:04:13,979 KT: your podcast. Thank you. 68 00:04:14,460 --> 00:04:18,609 Suze: So Trudell, it's very difficult for me to answer that 69 00:04:18,609 --> 00:04:21,500 Suze: question because I really don't know what else you have 70 00:04:21,500 --> 00:04:25,058 Suze: and how much of the income that you are going 71 00:04:25,059 --> 00:04:28,820 Suze: to need to live on will come from your 401(k). 72 00:04:29,290 --> 00:04:31,690 Suze: So this is what you need to do. This is 73 00:04:31,690 --> 00:04:35,089 Suze: kind of a rule of thumb. Add up all your expenses. 74 00:04:35,170 --> 00:04:38,309 Suze: What does it actually cost you to live every month? 75 00:04:38,649 --> 00:04:42,600 Suze: Escalate that by a few thousand dollars every year just so 76 00:04:42,600 --> 00:04:45,670 Suze: in case inflation hits, you have more than enough money. 77 00:04:45,988 --> 00:04:50,630 Suze: Where is the income going to come from to cover 78 00:04:50,630 --> 00:04:55,230 Suze: those expenses? How much will Social Security cover? How much 79 00:04:55,230 --> 00:04:57,859 Suze: will a pension cover if you're going to get one? 80 00:04:58,178 --> 00:05:02,149 Suze: How much is generated in dividends and or interest on 81 00:05:02,149 --> 00:05:02,470 Suze: the money? 82 00:05:02,559 --> 00:05:07,200 Suze: In the 401(k), so if you left everything invested in 83 00:05:07,200 --> 00:05:10,059 Suze: your 401(k) and let's just say it was in dividend 84 00:05:10,059 --> 00:05:14,959 Suze: stocks and those dividends pay you enough income plus everything 85 00:05:14,959 --> 00:05:20,559 Suze: else to cover your expenses, you're OK. However, if you 86 00:05:20,559 --> 00:05:25,559 Suze: need 100% of the money that is in your 401(k) 87 00:05:26,119 --> 00:05:30,529 Suze: to generate the interest that you need to live on, 88 00:05:31,100 --> 00:05:35,820 Suze: as well as an emergency fund. So if you have 89 00:05:35,820 --> 00:05:39,640 Suze: money in the 401(k), you have no other money at all, 90 00:05:40,209 --> 00:05:43,779 Suze: and you don't have an emergency fund, then you need 91 00:05:43,779 --> 00:05:46,979 Suze: at least 3 to 5 years of your must pay 92 00:05:46,980 --> 00:05:52,529 Suze: expenses liquid, meaning in a stable fund within your 401(k), 93 00:05:52,899 --> 00:05:55,700 Suze: so that if you needed a larger sum of money 94 00:05:55,700 --> 00:05:57,299 Suze: you could get it without having to sell 95 00:05:57,734 --> 00:06:03,065 Suze: stocks or ETFs. So that's kind of the formula. So 96 00:06:03,065 --> 00:06:05,183 Suze: I can't tell you what you should do, but those 97 00:06:05,184 --> 00:06:09,144 Suze: are some guidelines that you should follow. Next question, KT. 98 00:06:09,315 --> 00:06:12,214 KT: OK, this is from Alicia. This is a good one, Suze, 99 00:06:12,424 --> 00:06:16,265 KT: because I, I understand her position. She said, Dear Suze... 100 00:06:16,415 --> 00:06:19,534 Suze: Does that mean you don't understand many of these people's positions? 101 00:06:19,635 --> 00:06:20,084 KT: Yeah. 102 00:06:21,613 --> 00:06:22,094 KT: Dear Suze... 103 00:06:24,130 --> 00:06:27,170 KT: I have been a dedicated listener for many years and 104 00:06:27,170 --> 00:06:31,010 KT: your voice was the one in my head that pushed 105 00:06:31,010 --> 00:06:34,729 KT: me to build the emergency fund that just saved my life. 106 00:06:34,769 --> 00:06:36,399 Suze: You know what I thought she was gonna say, and 107 00:06:36,399 --> 00:06:38,910 Suze: your voice was the one that pushed me over the edge. 108 00:06:39,950 --> 00:06:43,630 KT: I'm 59, living in a New York beach townhouse that 109 00:06:43,630 --> 00:06:48,988 KT: I love. I have $1 million net worth. Uh, she 110 00:06:48,988 --> 00:06:52,149 KT: has $400,000 in accounts and $600,000 in home equity, Suze, 111 00:06:52,230 --> 00:06:54,980 KT: just to give you a perspective, and she said, I 112 00:06:54,980 --> 00:06:59,589 KT: have zero debt other than my $320,000 mortgage. 113 00:06:59,970 --> 00:07:03,459 KT: I own my car outright. I don't carry any credit card, 114 00:07:03,970 --> 00:07:07,790 KT: but last year I was laid off for 6 months. 115 00:07:08,130 --> 00:07:12,709 KT: I used $60,000 of my $100,000 emergency fund to survive. 116 00:07:13,160 --> 00:07:17,489 KT: Your must have documents and advice were my lifeline. I'm 117 00:07:17,489 --> 00:07:20,649 KT: now in a new commission only role, and for the 118 00:07:20,649 --> 00:07:21,010 KT: next 119 00:07:21,214 --> 00:07:25,855 KT: two months I'm not quite making my nut of $4,000 120 00:07:25,855 --> 00:07:29,674 KT: a month for mortgage and taxes. Friends are telling me 121 00:07:29,674 --> 00:07:33,535 KT: I should sell, move somewhere cheap, and pay cash for 122 00:07:33,535 --> 00:07:37,325 KT: a house, but Suze, I don't want to. My home 123 00:07:37,325 --> 00:07:42,334 KT: is my office, my sanctuary, and my highest yielding asset. 124 00:07:42,760 --> 00:07:46,279 KT: If I rented elsewhere I'd pay the same 4,000 without 125 00:07:46,279 --> 00:07:50,160 KT: gaining any equity. I don't spend on clothes or vacations. 126 00:07:50,279 --> 00:07:53,929 KT: My only extravagance is self-care and my 10 month old 127 00:07:53,929 --> 00:07:58,010 KT: rescue kitty Salem. I'm betting on myself to turn this 128 00:07:58,010 --> 00:08:03,130 KT: job into a W-2 salary by June. My question to you: 129 00:08:03,480 --> 00:08:08,040 KT: Am I being standoffish with my money by refusing to sell, 130 00:08:08,279 --> 00:08:12,119 KT: or is it a sound move to protect my joy 131 00:08:12,119 --> 00:08:15,279 KT: and my equity while I bridge this gap? 132 00:08:16,589 --> 00:08:18,149 KT: Yeah, great question. 133 00:08:19,089 --> 00:08:19,376 Suze: How old KT? 134 00:08:19,376 --> 00:08:22,609 KT: She's um 59. 135 00:08:23,290 --> 00:08:26,170 Suze: So she still has a number of years. So here's what... 136 00:08:26,170 --> 00:08:27,720 KT: But can I just say something? 137 00:08:27,850 --> 00:08:28,089 Suze: No. 138 00:08:28,369 --> 00:08:29,809 Suze: Go on. I'm joking. Go on. 139 00:08:30,730 --> 00:08:34,330 KT: She sounds very adamant that she can turn this into 140 00:08:34,330 --> 00:08:39,229 KT: a W-2 situation. She's in a commission-only job right now. 141 00:08:39,609 --> 00:08:40,369 KT: What do you think? 142 00:08:42,409 --> 00:08:43,690 Suze: That's what you wanted to say. 143 00:08:43,849 --> 00:08:47,849 KT: Yeah, I, I love that she's determined. She's very, you know, 144 00:08:47,969 --> 00:08:49,979 KT: she's hell bent on not having her... 145 00:08:50,090 --> 00:08:50,839 Suze: What would you do? 146 00:08:51,130 --> 00:08:55,090 KT: Absolutely stick to my plan. She has a deadline. Her 147 00:08:55,090 --> 00:08:59,030 KT: deadline said by June she wants to turn things around. 148 00:08:59,130 --> 00:09:00,118 KT: So what do you think? 149 00:09:00,330 --> 00:09:02,320 Suze: So here's what I would say to you. June is 150 00:09:02,320 --> 00:09:06,319 Suze: just a few days away, which is not very long. 151 00:09:06,450 --> 00:09:08,690 Suze: All right. Number one. Number two: 152 00:09:09,309 --> 00:09:14,309 Suze: You know the truth of your situation. You know things 153 00:09:14,309 --> 00:09:17,218 Suze: can happen, and the truth of the matter is, you 154 00:09:17,219 --> 00:09:19,940 Suze: have a plan that you're gonna be able to turn 155 00:09:19,940 --> 00:09:24,909 Suze: this around, but also plans can go the wrong way, 156 00:09:24,989 --> 00:09:28,150 Suze: meaning you could be in a car accident, you can 157 00:09:28,150 --> 00:09:32,570 Suze: get sick, things can happen that prevent you from working. 158 00:09:33,070 --> 00:09:36,968 Suze: And you're having a hard time right now while you're working, 159 00:09:38,020 --> 00:09:42,049 Suze: making your bills. That is reality, not what you think 160 00:09:42,049 --> 00:09:44,460 Suze: is going to happen, not what you want to happen, 161 00:09:44,669 --> 00:09:47,510 Suze: but that is the reality right now. 162 00:09:48,030 --> 00:09:54,000 Suze: Obviously, you have a home that's worth approximately $920,000 you 163 00:09:54,000 --> 00:09:57,039 Suze: have $600,000 equity in it, so that meant that's the 164 00:09:57,039 --> 00:10:01,479 Suze: $320,000 of your mortgage. Now, I don't know what your 165 00:10:01,479 --> 00:10:03,059 Suze: mortgage payments are. 166 00:10:03,849 --> 00:10:06,690 Suze: And does it make sense for you to refinance? I 167 00:10:06,690 --> 00:10:09,409 Suze: don't know what your original mortgage rate was when you 168 00:10:09,409 --> 00:10:12,250 Suze: first got this, but is it possible that you could 169 00:10:12,250 --> 00:10:18,059 Suze: refinance this house, that $320,000 and go out longer in 170 00:10:18,059 --> 00:10:22,239 Suze: terms to reduce your monthly mortgage payment, if this is 171 00:10:22,239 --> 00:10:25,609 Suze: where you want to stay. That's one choice for you. 172 00:10:26,349 --> 00:10:30,750 Suze: Your second choice is getting a home equity line of 173 00:10:30,750 --> 00:10:35,190 Suze: credit just in case you need more time. Now, the 174 00:10:35,190 --> 00:10:38,750 Suze: best place for you to do so, seriously, is to 175 00:10:38,750 --> 00:10:43,710 Suze: go to myalliant.com and look into getting their home equity 176 00:10:43,710 --> 00:10:45,789 Suze: line of credit. Now that home 177 00:10:46,039 --> 00:10:50,659 Suze: equity line of credit is only offered currently in 28 states. 178 00:10:51,159 --> 00:10:54,080 Suze: You happen to be one of the lucky ones because 179 00:10:54,080 --> 00:10:57,669 Suze: it is offered in New York and there is no 180 00:10:57,669 --> 00:11:00,820 Suze: better home equity line of credit currently on the market 181 00:11:01,039 --> 00:11:03,840 Suze: than that one. Your first 6 months will only be 182 00:11:03,840 --> 00:11:05,770 Suze: at 3.99%. 183 00:11:06,070 --> 00:11:09,479 Suze: And after that it can be as low as 6.75%, 184 00:11:09,559 --> 00:11:14,119 Suze: but it's 0 plus prime and nobody usually offers that. 185 00:11:14,450 --> 00:11:19,659 Suze: So go to my alliant.com and check that out. Third, 186 00:11:20,039 --> 00:11:23,440 Suze: you obviously could sell, take the equity that you have 187 00:11:23,440 --> 00:11:24,199 Suze: in your house and 188 00:11:24,284 --> 00:11:27,585 Suze: maybe buy something outright that's little and you can afford, 189 00:11:27,724 --> 00:11:30,405 Suze: but you're not ready for that right now. What you 190 00:11:30,405 --> 00:11:34,664 Suze: have to understand is you have options, so take advantage 191 00:11:34,664 --> 00:11:38,684 Suze: of which option makes the most sense to you. Personally, 192 00:11:38,765 --> 00:11:41,084 Suze: if I were you, I would most likely do the 193 00:11:41,085 --> 00:11:42,525 Suze: home equity line of credit. 194 00:11:42,979 --> 00:11:46,659 Suze: But check it out, see what the rates are, and 195 00:11:46,659 --> 00:11:51,728 Suze: make that decision, but don't let this go on too long. 196 00:11:52,020 --> 00:11:56,739 Suze: If you find that in June, in January, and sometime 197 00:11:56,739 --> 00:11:59,659 Suze: next year, you're still in the same situation, 198 00:11:59,960 --> 00:12:03,819 Suze: then girlfriend, what you really have to do is sell 199 00:12:04,080 --> 00:12:06,880 Suze: and change your situation. All right, KT next. 200 00:12:07,239 --> 00:12:11,469 KT: All right, from Lisa, Hi Suze and KT, your podcast 201 00:12:11,469 --> 00:12:15,559 KT: is my favorite and I never miss an episode. Thank 202 00:12:15,559 --> 00:12:19,949 KT: you so much for helping us all get smarter about finances. 203 00:12:20,280 --> 00:12:23,919 KT: I'm looking for some guidance as my parents are divorced 204 00:12:24,159 --> 00:12:28,320 KT: and are both aging and both have separate houses in 205 00:12:28,320 --> 00:12:31,799 KT: different states. My mom is in Florida and has put 206 00:12:31,799 --> 00:12:35,799 KT: her house in a Lady Bird trust for me. It's my 207 00:12:35,799 --> 00:12:40,079 KT: understanding that that allows her and my stepdad to live 208 00:12:40,080 --> 00:12:43,260 KT: in the house while alive, but then at their death 209 00:12:43,260 --> 00:12:45,320 KT: the house transfers to me. 210 00:12:45,739 --> 00:12:49,460 KT: My dad is in New York and not remarried. He 211 00:12:49,460 --> 00:12:53,880 KT: sold me his house for $1 so I am listed 212 00:12:54,140 --> 00:12:56,179 KT: as a grantee on the deed. 213 00:12:56,299 --> 00:12:57,530 Suze: Trouble, KT trouble. 214 00:12:57,700 --> 00:13:00,700 KT: Well, hold on then. She's asking, I don't know that 215 00:13:00,700 --> 00:13:03,010 KT: this was the correct way to do it. It was 216 00:13:03,010 --> 00:13:06,579 KT: not all right. So then she's saying, is it possible 217 00:13:06,580 --> 00:13:09,669 KT: to redo something at this point? Then she said, Suze, 218 00:13:09,739 --> 00:13:12,520 KT: can you give the best options on both of these? 219 00:13:12,659 --> 00:13:14,739 KT: Is a Lady Bird trust legit? 220 00:13:15,530 --> 00:13:19,789 Suze: So first of all, it's not a Lady Bird trust KT. 221 00:13:20,369 --> 00:13:25,450 Suze: It's known as a Lady Bird deed. It's also known as 222 00:13:25,450 --> 00:13:30,609 Suze: an enhanced life estate deed, and they're absolutely, I have 223 00:13:30,609 --> 00:13:34,239 Suze: to tell you, legal in Florida. In fact, Florida is 224 00:13:34,239 --> 00:13:37,909 Suze: one of the only handful of states really that recognizes 225 00:13:38,130 --> 00:13:39,030 Suze: this tool. 226 00:13:39,549 --> 00:13:42,599 Suze: And it's all right. It's not as great as a 227 00:13:42,599 --> 00:13:46,270 Suze: living revocable trust, so listen to me, everybody. All of 228 00:13:46,270 --> 00:13:51,000 Suze: you are so concerned about transferring an asset from maybe 229 00:13:51,000 --> 00:13:54,340 Suze: daddy or mommy's name down to your child without probate. 230 00:13:54,520 --> 00:14:00,539 Suze: All right, in Florida, a Lady Bird deed will absolutely do that. However, 231 00:14:00,960 --> 00:14:04,000 Suze: it's not the only concern that you need 232 00:14:04,090 --> 00:14:08,520 Suze: to have the reason a living revocable trust is far 233 00:14:08,520 --> 00:14:11,469 Suze: better is because it will accomplish the same thing. It 234 00:14:11,469 --> 00:14:17,939 Suze: will avoid probate. However, if Mommy in Florida becomes incapacitated, 235 00:14:18,280 --> 00:14:21,479 Suze: they need to sell the house before she's died. A 236 00:14:21,479 --> 00:14:26,219 Suze: Lady Bird deed is not going to help them on any level. Why? 237 00:14:26,440 --> 00:14:31,200 Suze: Because if Mommy is incapacitated, she's not competent enough to 238 00:14:31,200 --> 00:14:33,080 Suze: sign the deed to sell it. 239 00:14:33,880 --> 00:14:37,700 Suze: There's no paperwork saying that the daughter can sign it. 240 00:14:38,280 --> 00:14:41,039 Suze: So now Mommy's going to have to be declared incompetent, 241 00:14:41,320 --> 00:14:43,919 Suze: get a conservatorship for her. Now you have opened up 242 00:14:43,919 --> 00:14:47,880 Suze: a big can of worms. If you had simply a 243 00:14:47,880 --> 00:14:51,400 Suze: living revocable trust where the house was held in trust 244 00:14:51,400 --> 00:14:54,880 Suze: for her benefit while she was alive, your benefit after 245 00:14:54,880 --> 00:14:56,000 Suze: she has died, you 246 00:14:56,059 --> 00:14:59,159 Suze: avoid probate, but it also will have an incapacity clause 247 00:14:59,159 --> 00:15:02,250 Suze: in it that allows you to sign for her when 248 00:15:02,250 --> 00:15:07,580 Suze: she cannot sign for herself. So there you go. You 249 00:15:07,580 --> 00:15:10,440 Suze: have a choice, but if it's in a Lady Bird deed, 250 00:15:10,659 --> 00:15:15,619 Suze: it's fine, not a big deal, except unless your mother 251 00:15:15,619 --> 00:15:20,299 Suze: becomes incapacitated. However, Dad's house, this is where we have 252 00:15:20,299 --> 00:15:25,739 Suze: a problem because he sold it to you for $1. 253 00:15:26,809 --> 00:15:29,760 Suze: That is going to be deemed as a gift because 254 00:15:29,760 --> 00:15:33,840 Suze: everybody knows that that was a tool used to get 255 00:15:33,840 --> 00:15:36,909 Suze: the house in your name and they'll just void it 256 00:15:37,090 --> 00:15:39,969 Suze: so it will be considered a gift to you, which 257 00:15:39,969 --> 00:15:45,049 Suze: means you are going to inherit his cough spaces on 258 00:15:45,049 --> 00:15:49,000 Suze: the house when he dies. So if he paid $80,000 259 00:15:49,000 --> 00:15:49,669 Suze: for the house. 260 00:15:50,030 --> 00:15:55,109 Suze: It's now worth $600,000. He dies. Your cost basis is 261 00:15:55,109 --> 00:16:01,030 Suze: going to be $80,000. You go to sell it. You, 262 00:16:01,270 --> 00:16:04,690 Suze: because you didn't live in the house as your primary residency, 263 00:16:04,909 --> 00:16:08,549 Suze: you are going to owe taxes on the difference between 264 00:16:08,549 --> 00:16:14,409 Suze: those two amounts, which is $520,000. 265 00:16:15,609 --> 00:16:20,450 Suze: If you inherit the house after he died, it's in 266 00:16:20,450 --> 00:16:24,299 Suze: his name now. He dies, you inherit it, you get 267 00:16:24,299 --> 00:16:28,700 Suze: a step up in cost basis. So then your cost 268 00:16:28,700 --> 00:16:32,700 Suze: basis on that house, if it's currently worth $600,000 would 269 00:16:32,700 --> 00:16:37,219 Suze: be $600,000. If you turn around and sell it right 270 00:16:37,219 --> 00:16:42,780 Suze: away for $600,000 you don't owe any taxes. 271 00:16:43,409 --> 00:16:48,010 Suze: So it creates several, several problems for you, seriously. The 272 00:16:48,010 --> 00:16:50,450 Suze: next problem it creates is that house is now in 273 00:16:50,450 --> 00:16:51,130 Suze: your name. 274 00:16:51,950 --> 00:16:54,200 Suze: If you are in a car accident or you do 275 00:16:54,200 --> 00:16:57,799 Suze: something and you get sued and for some reason they 276 00:16:57,799 --> 00:17:01,239 Suze: take that house away from you, guess what, your father's 277 00:17:01,239 --> 00:17:04,359 Suze: going to be out of a house, so you have 278 00:17:04,359 --> 00:17:08,649 Suze: to be very careful because now that house is legally 279 00:17:08,650 --> 00:17:14,719 Suze: exposed to creditors, a lawsuit, divorce, or anything else that 280 00:17:14,719 --> 00:17:18,719 Suze: life's going to throw at you, girlfriend. So the good 281 00:17:18,719 --> 00:17:20,079 Suze: news is this. 282 00:17:20,959 --> 00:17:25,959 Suze: Likely it can be unwound just so you know, your 283 00:17:25,959 --> 00:17:30,119 Suze: father can deed the house back to himself. Then he 284 00:17:30,119 --> 00:17:35,139 Suze: has accomplished two really good choices for himself. Number one 285 00:17:35,319 --> 00:17:37,680 Suze: is that, and this is what I just told you, 286 00:17:37,920 --> 00:17:42,199 Suze: he can create a revocable living trust where he puts 287 00:17:42,199 --> 00:17:45,839 Suze: the title of the house into the trust. 288 00:17:46,060 --> 00:17:50,280 Suze: Held for his benefit while he was alive, your benefit 289 00:17:51,489 --> 00:17:52,319 Suze: when he dies. 290 00:17:53,579 --> 00:17:56,910 Suze: Also, if he wants, not as good of an option, 291 00:17:57,219 --> 00:18:01,550 Suze: but New York finally, and I think it was in 2024, 292 00:18:01,819 --> 00:18:06,938 Suze: they authorized transfer on death deeds. So what he can 293 00:18:06,939 --> 00:18:11,119 Suze: do is it works very similar to your mom's Lady Bird deed. 294 00:18:11,300 --> 00:18:13,800 Suze: He keeps full control while he's alive. 295 00:18:14,234 --> 00:18:18,296 Suze: And the house transfers for you on his death automatically 296 00:18:18,475 --> 00:18:22,715 Suze: with the step up in basis. So that's what I 297 00:18:22,715 --> 00:18:26,595 Suze: would do if I were you. Bottom line, do the 298 00:18:26,595 --> 00:18:34,916 Suze: must-have documents. Go to must-havedocs.com currently for $99 but if 299 00:18:34,916 --> 00:18:34,994 Suze: you 300 00:18:35,092 --> 00:18:40,052 Suze: wait till June 4th and you tune in to the webinar, 301 00:18:40,291 --> 00:18:44,771 Suze: you may find birthday pricing will be there for those 302 00:18:44,771 --> 00:18:48,972 Suze: of you who know. So that's June 4th, 6:00 p.m. 303 00:18:48,972 --> 00:18:54,452 Suze: Go to Suzeorman.com to register. We almost have 100,000 people 304 00:18:54,452 --> 00:18:55,832 Suze: at this point in time. 305 00:18:56,260 --> 00:19:00,770 Suze: So, you're going to want to hear a webinar and 306 00:19:00,770 --> 00:19:05,399 Suze: information that can actually change your life for the better, 307 00:19:05,660 --> 00:19:08,979 Suze: but you can go there and get those documents and 308 00:19:08,979 --> 00:19:11,420 Suze: do what I just told you to do, or 309 00:19:11,670 --> 00:19:15,790 Suze: Just make sure you have a Lady Bird deed and a 310 00:19:15,790 --> 00:19:19,930 Suze: transfer on death deed in New York, worst case scenario 311 00:19:20,430 --> 00:19:24,270 Suze: after your father has fixed what he did. All right, KT. 312 00:19:24,430 --> 00:19:26,670 KT: OK, next question is from Petra. 313 00:19:27,339 --> 00:19:31,709 KT: Suze and KT, thank you so much for everything you do. 314 00:19:31,800 --> 00:19:35,739 KT: I am deeply grateful. I would so appreciate your guidance 315 00:19:35,739 --> 00:19:40,420 KT: on a decision I'm facing regarding a custodial account I 316 00:19:40,420 --> 00:19:44,760 KT: opened for my daughter. She is now 22 years old. 317 00:19:45,329 --> 00:19:49,900 KT: In 2018 before discovering your work, I opened a Merrill 318 00:19:49,900 --> 00:19:56,219 KT: guided investment account for her with $10,500. Today it has 319 00:19:56,219 --> 00:20:05,250 KT: grown to approximately $23,000. The annual program fee is 0.45%, 320 00:20:05,579 --> 00:20:09,780 KT: and other fees may apply. Recently, Bank of America rep 321 00:20:09,780 --> 00:20:14,199 KT: called and advised us to simply close the custodial account, 322 00:20:14,869 --> 00:20:19,209 KT: open a Merrill guided investment account in my daughter's name 323 00:20:19,430 --> 00:20:26,109 KT: and transfer the funds as is keeping the existing investments intact. However, 324 00:20:26,189 --> 00:20:29,989 KT: I'm wondering if it would be wiser to instead sell 325 00:20:29,989 --> 00:20:31,910 KT: the investments, pay the 326 00:20:32,005 --> 00:20:36,204 KT: capital gains tax now, they live in Connecticut, Suze, and 327 00:20:36,204 --> 00:20:39,764 KT: use a portion of the proceeds to fund her Roth 328 00:20:39,765 --> 00:20:45,464 KT: IRA while investing the remainder in her Schwab brokerage account 329 00:20:45,685 --> 00:20:50,194 KT: in the stocks and ETFs you and Keith recommend. Now 330 00:20:50,194 --> 00:20:51,804 KT: she said a little bit about her daughter. 331 00:20:51,925 --> 00:20:55,045 Suze: She's gotta listen to June 4th. June 4th. 332 00:20:55,165 --> 00:20:56,984 KT: Don't miss Keith and Suze. 333 00:20:57,324 --> 00:20:57,854 Suze: All right, go on. 334 00:20:58,300 --> 00:21:03,708 KT: Um, she said, my daughter just graduated from Carnegie Mellon University. 335 00:21:04,010 --> 00:21:06,630 KT: They're so proud of her, and now she's going for 336 00:21:06,630 --> 00:21:11,150 KT: her master's. So should we follow the bank's advice and 337 00:21:11,150 --> 00:21:14,869 KT: transfer the account as is, or would it make more 338 00:21:14,869 --> 00:21:19,420 KT: financial sense to sell, pay capital gains tax, and start 339 00:21:19,420 --> 00:21:23,180 KT: fresh with the stocks and ETFs you and Keith recommend? 340 00:21:23,750 --> 00:21:28,550 KT: Given her limited earned income right now, should we prioritize 341 00:21:28,550 --> 00:21:31,420 KT: funding her Roth with some of this money? 342 00:21:31,550 --> 00:21:35,949 Suze: Yeah, so the answer to that question is no, don't 343 00:21:35,949 --> 00:21:37,829 Suze: listen to the advisor. 344 00:21:38,280 --> 00:21:42,599 Suze: Number one, because the truth of the matter is you 345 00:21:42,599 --> 00:21:46,209 Suze: can do something without having to pay any fees if 346 00:21:46,209 --> 00:21:49,938 Suze: you don't want to and have more control over the money. 347 00:21:50,150 --> 00:21:53,239 Suze: But the reason that you do need to change the 348 00:21:53,239 --> 00:21:57,079 Suze: account from a UGMA account to her own name is 349 00:21:57,079 --> 00:22:00,760 Suze: she is now 22 years of age, so it now 350 00:22:00,760 --> 00:22:03,479 Suze: has to be in her individual name. In fact, it 351 00:22:03,479 --> 00:22:06,800 Suze: should have been so even starting at least a year ago. 352 00:22:06,880 --> 00:22:07,989 Suze: That's number one. 353 00:22:08,380 --> 00:22:12,260 Suze: Number two, you have to understand that your daughter is 354 00:22:12,260 --> 00:22:15,760 Suze: only 22 years of age, and I have a feeling 355 00:22:15,900 --> 00:22:19,300 Suze: that you are still claiming her as a dependent and 356 00:22:19,300 --> 00:22:24,609 Suze: supporting her because she's still in school with very limited income. However, 357 00:22:25,020 --> 00:22:28,819 Suze: the problem here is cause she's 22. 358 00:22:29,530 --> 00:22:32,849 Suze: She, if she sells anything and there is a gain 359 00:22:32,849 --> 00:22:36,609 Suze: in it, there's something known as a kiddie tax, which 360 00:22:36,609 --> 00:22:40,229 Suze: means it's going to be taxed at your tax bracket, 361 00:22:40,469 --> 00:22:43,770 Suze: not at hers. So what you would do is an 362 00:22:43,770 --> 00:22:49,670 Suze: in-kind distribution to her own account in her own name 363 00:22:49,800 --> 00:22:53,489 Suze: at Schwab, and I would have it at Schwab. The 364 00:22:53,489 --> 00:22:57,089 Suze: other thing that you can do is this if she 365 00:22:57,089 --> 00:22:58,810 Suze: has limited income. 366 00:22:59,530 --> 00:23:02,729 Suze: Maybe what you can do is open up an additional 367 00:23:02,729 --> 00:23:04,770 Suze: Roth IRA for her. 368 00:23:05,550 --> 00:23:09,140 Suze: And then simply fund it with some money from you 369 00:23:09,140 --> 00:23:12,000 Suze: or from her, whatever she's earned up to the point 370 00:23:12,000 --> 00:23:16,880 Suze: of what she's earned. Maximum of $7500 obviously, but if 371 00:23:16,880 --> 00:23:20,800 Suze: she only earned $2,000 that's the max. But I would 372 00:23:20,800 --> 00:23:25,060 Suze: keep everything in kind for her right now until she 373 00:23:25,060 --> 00:23:27,459 Suze: does turn 24. 374 00:23:28,130 --> 00:23:31,020 Suze: And then it will no longer be as a kiddie tax, 375 00:23:31,099 --> 00:23:34,958 Suze: it will be at her tax bracket, so 24 or older, 376 00:23:35,290 --> 00:23:39,500 Suze: and that's when I might start liquidating things and investing 377 00:23:39,500 --> 00:23:43,540 Suze: in it that way. But just something to think about, 378 00:23:43,660 --> 00:23:47,399 Suze: all right? But I wouldn't be selling it, just thinking 379 00:23:47,400 --> 00:23:49,739 Suze: that you're not gonna pay any taxes on it, cause 380 00:23:49,739 --> 00:23:51,900 Suze: it's gonna be taxed at your tax bracket. Now, one 381 00:23:51,900 --> 00:23:54,739 Suze: last thing, if you don't have a high tax bracket. 382 00:23:55,349 --> 00:24:00,520 Suze: And you could afford for her to sell $7,500 or 383 00:24:00,520 --> 00:24:01,660 Suze: some amount of money. 384 00:24:02,260 --> 00:24:04,218 Suze: And not pay a lot of taxes on it, then 385 00:24:04,219 --> 00:24:06,198 Suze: I would do that as well. All right. 386 00:24:06,500 --> 00:24:09,458 KT: All right. My next question is from Christine. I love this. 387 00:24:09,569 --> 00:24:12,900 KT: This is the kind of question I like. Suze, I'm 388 00:24:12,900 --> 00:24:18,229 KT: 73 years old and was gifted an I-bond of $10,000 389 00:24:18,229 --> 00:24:22,619 KT: in 2022. I am not sure if I should be 390 00:24:22,619 --> 00:24:27,420 KT: doing anything with it or just let it be until 391 00:24:27,420 --> 00:24:29,000 KT: I decide to cash it in. 392 00:24:29,569 --> 00:24:31,569 KT: Thank you for being my guiding light. 393 00:24:31,770 --> 00:24:32,869 Suze: So how old is she? 394 00:24:34,699 --> 00:24:35,255 KT: 73. 395 00:24:35,255 --> 00:24:38,140 Suze: 73. So here's what I would be doing if I 396 00:24:38,140 --> 00:24:43,020 Suze: were you. I don't know when the person who bought 397 00:24:43,180 --> 00:24:45,260 Suze: the I-bond bought it. 398 00:24:45,869 --> 00:24:49,680 Suze: They gifted it to you in 2022, but did they 399 00:24:49,680 --> 00:24:55,079 Suze: buy it in 2021? In 2020, if they did, and 400 00:24:55,079 --> 00:24:58,639 Suze: you should ask them, you are now past the five 401 00:24:58,640 --> 00:25:02,239 Suze: years that you could get out of this bond without 402 00:25:02,239 --> 00:25:04,260 Suze: any penalties whatsoever. 403 00:25:04,939 --> 00:25:07,389 Suze: And the penalty isn't that much, it's just a 3 404 00:25:07,390 --> 00:25:13,770 Suze: month interest penalty. You probably have approximately $12,500 in there 405 00:25:13,770 --> 00:25:17,609 Suze: right now, if you've been in there since 2022. 406 00:25:18,420 --> 00:25:24,319 Suze: However, interest rates in treasuries right now are far higher 407 00:25:24,660 --> 00:25:29,219 Suze: than the interest rate that I-bonds are paying. So if 408 00:25:29,219 --> 00:25:33,020 Suze: you're not in a very high tax bracket, and really 409 00:25:33,020 --> 00:25:37,129 Suze: you're only going to owe income tax on approximately $2,000 410 00:25:37,130 --> 00:25:42,619 Suze: or $3000 at most, and once you hit the 5 411 00:25:42,619 --> 00:25:43,719 Suze: year period. 412 00:25:44,199 --> 00:25:48,199 Suze: I would then come out of that bond seriously, pay 413 00:25:48,199 --> 00:25:52,560 Suze: the taxes, and go into a treasury for a higher 414 00:25:52,560 --> 00:25:56,880 Suze: interest rate. I can tell you, everybody, that I myself 415 00:25:56,880 --> 00:26:00,760 Suze: yesterday put quite a bit of money into a 30 416 00:26:00,760 --> 00:26:06,520 Suze: year Treasury bond and got 5.05% for it. I think 417 00:26:06,520 --> 00:26:09,640 Suze: that's a great rate. Now job, Susie. Well, you heard 418 00:26:09,640 --> 00:26:12,569 Suze: me doing that, OK. I knew she did it right. So, 419 00:26:12,719 --> 00:26:13,160 Suze: and the 420 00:26:13,275 --> 00:26:16,074 Suze: reason that I did it was just to keep it 421 00:26:16,074 --> 00:26:19,954 Suze: safe and sound, not if interest rates go down, I'll 422 00:26:19,954 --> 00:26:23,275 Suze: make money. I like the 5% rate, and I took 423 00:26:23,275 --> 00:26:28,784 Suze: money that was in a Treasury money market account at 3.5%. 424 00:26:29,390 --> 00:26:31,469 Suze: And I decided, you know what, I don't need that 425 00:26:31,469 --> 00:26:34,790 Suze: much liquid money. Why not tie up some at a 426 00:26:34,790 --> 00:26:37,469 Suze: good rate? Why not do it? And if interest rates 427 00:26:37,469 --> 00:26:40,670 Suze: do go down, all right, then we'll make some money there. 428 00:26:40,989 --> 00:26:43,390 Suze: So that's what I would be doing if I were you. 429 00:26:43,469 --> 00:26:46,369 Suze: So check out the bond was purchased. 430 00:26:47,000 --> 00:26:51,729 Suze: And if it was purchased in 2022, you only probably 431 00:26:51,729 --> 00:26:55,089 Suze: have another year or so till you're out of the 432 00:26:55,089 --> 00:26:59,250 Suze: five-year penalty, but also you can check the three-month interest 433 00:26:59,250 --> 00:27:02,060 Suze: penalty and if it's only $75 or $100. 434 00:27:02,635 --> 00:27:04,734 Suze: or something like that, you might think about doing it. 435 00:27:04,834 --> 00:27:05,974 Suze: All right, KT next. 436 00:27:06,074 --> 00:27:09,775 KT: OK, next one is from Daniel. Hi, Suze and KT. 437 00:27:10,234 --> 00:27:14,094 KT: I just turned 29 and have a public accounting job 438 00:27:14,314 --> 00:27:20,755 KT: making around $93,000. My mortgage is around $1,300 and I 439 00:27:20,755 --> 00:27:26,194 KT: have a $450 car payment. I have about $100,000 saved 440 00:27:26,194 --> 00:27:30,734 KT: in my 401(k), about $50,000 in a brokerage account. 441 00:27:31,339 --> 00:27:36,139 KT: My issue is that I have about $15,000 in credit 442 00:27:36,140 --> 00:27:40,169 KT: card debt that I really want to get rid of. Suze, 443 00:27:40,260 --> 00:27:43,500 KT: would you advise I withdraw some from my investments to 444 00:27:43,500 --> 00:27:48,079 KT: wipe this debt out and start fresh? I appreciate your input. 445 00:27:48,420 --> 00:27:52,780 Suze: Well, I don't know what investments you have, Daniel. First 446 00:27:52,780 --> 00:27:57,579 Suze: of all, at 29, you are doing fabulous, fabulous. Not 447 00:27:57,579 --> 00:27:59,899 Suze: sure why you have $15,000 of credit card debt. 448 00:28:00,005 --> 00:28:04,885 Suze: But I personally don't care, right? If, however, you have 449 00:28:04,885 --> 00:28:09,005 Suze: a high FICO score, you should check it out. Do 450 00:28:09,005 --> 00:28:12,605 Suze: you or don't you, like in the 700 area, whatever 451 00:28:12,605 --> 00:28:15,965 Suze: it may be, check to see if you are paying 452 00:28:15,965 --> 00:28:20,242 Suze: currently a high interest rate on that $15,000 of 453 00:28:20,242 --> 00:28:23,751 Suze: credit card debt, could you do a balance transfer to 454 00:28:23,751 --> 00:28:28,832 Suze: a 0% rate card for like 21 months, then you're 455 00:28:28,832 --> 00:28:31,791 Suze: not paying any interest on that money and then you 456 00:28:31,791 --> 00:28:37,911 Suze: could dedicate just $1,000 a month towards that $15,000 and 457 00:28:37,911 --> 00:28:40,812 Suze: I think you'll find you have that $1,000 a month 458 00:28:41,192 --> 00:28:44,432 Suze: and therefore in a year and a half, while it's 459 00:28:44,432 --> 00:28:46,781 Suze: still under the 0% interest rate window. 460 00:28:48,290 --> 00:28:51,609 Suze: You will get rid of that debt. I would not 461 00:28:51,609 --> 00:28:57,209 Suze: be liquidating money in my brokerage account unless I had 462 00:28:57,209 --> 00:29:01,050 Suze: a loss on one of my investments there that I 463 00:29:01,050 --> 00:29:05,010 Suze: could then liquidate, take up to $3,000 off my taxes 464 00:29:05,010 --> 00:29:07,530 Suze: if I didn't have anything to offset it with in 465 00:29:07,530 --> 00:29:09,319 Suze: terms of a gain that I had. 466 00:29:09,650 --> 00:29:12,609 Suze: And use that money to get out of debt. However, 467 00:29:13,010 --> 00:29:16,020 Suze: markets still might be pretty good this year, although August, 468 00:29:16,050 --> 00:29:19,609 Suze: in my opinion, may be a rough month. Remember I 469 00:29:19,609 --> 00:29:24,400 Suze: said that to you, everybody, August, beginning of September, um, 470 00:29:24,650 --> 00:29:29,250 Suze: so up to you. But the other thing is, besides 471 00:29:29,250 --> 00:29:32,290 Suze: just having money in a brokerage account. 472 00:29:32,680 --> 00:29:35,829 Suze: And it's funny because KT just wrote me a little note. 473 00:29:36,290 --> 00:29:37,890 Suze: She just put it in front of me and said, 474 00:29:38,010 --> 00:29:42,199 Suze: What about a Roth? What about a Roth? KT's so good. 475 00:29:42,670 --> 00:29:46,619 Suze: Dinga dinga dinga dinga dinga. Japan was really good for you, 476 00:29:48,290 --> 00:29:52,829 Suze: really good for you. The other thing that you are missing, however. 477 00:29:53,089 --> 00:29:56,089 Suze: Is that you say that you have 100,000 saved in 478 00:29:56,089 --> 00:29:59,930 Suze: my 401(k). Why don't you have any money in a 479 00:29:59,930 --> 00:30:04,569 Suze: Roth 401(k)? All new contributions should be going to a 480 00:30:04,569 --> 00:30:10,099 Suze: Roth 401(k) number one, number two, you're only making 93,000 481 00:30:10,099 --> 00:30:15,050 Suze: a year, which means you qualify for a Roth IRA 482 00:30:15,050 --> 00:30:20,310 Suze: as well, so you should be fully funding your Roth IRA. 483 00:30:20,562 --> 00:30:24,503 Suze: $7,500 and I'm telling you in the long run that's 484 00:30:24,503 --> 00:30:29,562 Suze: far smarter than having $100,000 in a brokerage account. Remember, 485 00:30:29,572 --> 00:30:33,123 Suze: any money that you put in a Roth IRA, your 486 00:30:33,123 --> 00:30:36,302 Suze: original contributions you can take out any time you want 487 00:30:36,613 --> 00:30:39,973 Suze: without taxes or penalties regardless of age or how long 488 00:30:39,973 --> 00:30:42,672 Suze: it's been in there, so there are no benefits on 489 00:30:42,733 --> 00:30:47,892 Suze: any level of an investment account over a Roth retirement account. 490 00:30:48,135 --> 00:30:51,776 Suze: If you ask me, but you are doing fabulous. Give 491 00:30:51,776 --> 00:30:53,056 Suze: me one more, KT. 492 00:30:53,286 --> 00:30:56,615 KT: OK, this is from Christine, and she said, thank you 493 00:30:56,615 --> 00:31:01,576 KT: for the wonderful advice in your recent webinar. So Christine 494 00:31:01,576 --> 00:31:03,816 KT: obviously heard webinar Part I. 495 00:31:03,816 --> 00:31:07,416 Suze: And by the way, before you go on, all of 496 00:31:07,416 --> 00:31:13,215 Suze: you can go on to youtube.com/Suze Orman. Look for the 497 00:31:13,215 --> 00:31:15,316 Suze: five things you can do with money. 498 00:31:15,819 --> 00:31:20,180 Suze: That title somewhere there. And that's where we recapped and 499 00:31:20,180 --> 00:31:25,420 Suze: cut down the webinar that was live on April 23rd. 500 00:31:26,010 --> 00:31:29,790 Suze: To like 30 minutes so you can see the highlights 501 00:31:29,790 --> 00:31:32,170 Suze: of it, but I just have to say this, that 502 00:31:32,170 --> 00:31:37,930 Suze: was more about personal finance. Part II, you cannot miss. 503 00:31:38,050 --> 00:31:43,089 Suze: It is all about individual stocks, ETFs. Fitz is going 504 00:31:43,089 --> 00:31:48,010 Suze: to introduce his ETF on that day and tell you 505 00:31:48,010 --> 00:31:50,650 Suze: all about it. This is something that has been worked 506 00:31:50,650 --> 00:31:52,449 Suze: on by him for over two 507 00:31:52,755 --> 00:31:55,994 Suze: years now you've heard about it for two years you're 508 00:31:55,994 --> 00:31:59,935 Suze: gonna be able to really hear about it on June 4th. 509 00:32:00,114 --> 00:32:04,594 Suze: If you weren't already registered for the first webinar, please 510 00:32:04,594 --> 00:32:08,984 Suze: go to Suze Orman.com and register for the second one. 511 00:32:09,314 --> 00:32:11,974 Suze: This is a webinar you do not want to miss, 512 00:32:12,145 --> 00:32:14,814 Suze: and I'm just giving you a little highlight right now 513 00:32:14,994 --> 00:32:17,635 Suze: at the end of the webinar, and you need to 514 00:32:17,635 --> 00:32:19,094 Suze: stay all the way through. 515 00:32:19,530 --> 00:32:24,050 Suze: You will have birthday pricing for the ultimate scam protection. 516 00:32:24,329 --> 00:32:28,969 Suze: You will have birthday pricing for the must-have documents and 517 00:32:28,969 --> 00:32:32,609 Suze: the other things you have got to tune in for that. 518 00:32:32,729 --> 00:32:33,449 Suze: What KT? 519 00:32:33,449 --> 00:32:36,474 KT: Suze, tell them whose birthday you're talking about. 520 00:32:36,714 --> 00:32:41,915 Suze: Well, the next day it's my seventy-fifth birthday, so that 521 00:32:41,925 --> 00:32:45,064 Suze: gives you an idea of what the pricing is going 522 00:32:45,064 --> 00:32:48,295 Suze: to be for that day. All right, KT. 523 00:32:48,505 --> 00:32:51,214 KT: All right, my last question is from Christine. 524 00:32:51,819 --> 00:32:54,550 KT: Again she said thank you for the wonderful advice in 525 00:32:54,550 --> 00:32:58,750 KT: the recent webinar part one. During the session you mentioned 526 00:32:58,750 --> 00:33:03,829 KT: that choosing target date funds for retirement accounts is a 527 00:33:03,829 --> 00:33:08,670 KT: mistake in your opinion. My financial advisor previously suggested a 528 00:33:08,670 --> 00:33:10,949 KT: 2035 target 529 00:33:11,025 --> 00:33:16,625 KT: plan for my Roth 403B. I am currently 64 years old. 530 00:33:16,704 --> 00:33:19,864 KT: I do not plan to retire soon. I hope to 531 00:33:19,864 --> 00:33:26,145 KT: delay taking Social Security until I'm 70. Given this context, Susie, 532 00:33:26,464 --> 00:33:30,285 KT: what would you suggest instead of a target date fund? 533 00:33:30,689 --> 00:33:33,810 Suze: So, here's what all of you need to understand as 534 00:33:33,810 --> 00:33:38,250 Suze: to why Suze Orman personally doesn't like the majority of 535 00:33:38,250 --> 00:33:41,089 Suze: target date mutual funds that are out there. 536 00:33:42,010 --> 00:33:46,729 Suze: A target date mutual fund. Actually, KT, as I'm doing this, 537 00:33:46,810 --> 00:33:50,130 Suze: I'm thinking, should I save this for Suze School to 538 00:33:50,130 --> 00:33:54,119 Suze: explain to everybody in great detail the difference as to 539 00:33:54,119 --> 00:33:56,849 Suze: why I don't like target date mutual funds. 540 00:33:56,949 --> 00:33:58,930 KT: Absolutely. All right, do it Sunday. 541 00:33:59,010 --> 00:34:00,670 Suze: All right, so therefore, because we're a little bit 542 00:34:00,785 --> 00:34:05,305 Suze: over time, so everybody, this Sunday, Suze School is going 543 00:34:05,305 --> 00:34:09,504 Suze: to answer Christine's question and get you to understand in 544 00:34:09,504 --> 00:34:14,784 Suze: detail why I don't like target date mutual funds, at 545 00:34:14,784 --> 00:34:19,104 Suze: least the majority of them. So KT, anything you wanna say? 546 00:34:19,185 --> 00:34:22,685 KT: Yes, I do. I wanna wish my baby sister Barbara 547 00:34:22,685 --> 00:34:25,885 KT: a very happy birthday yesterday. 548 00:34:26,358 --> 00:34:28,708 KT: We love you. I hope you're having a great time. 549 00:34:28,799 --> 00:34:31,779 Suze: 65. Can you believe it? Oh my God. 550 00:34:32,309 --> 00:34:33,288 KT: Free med, baby. 551 00:34:33,638 --> 00:34:36,718 Suze: Medicare, Medicare, yeah, baby, right? 552 00:34:36,918 --> 00:34:38,319 KT: We love you, Barb. 553 00:34:38,398 --> 00:34:43,378 Suze: We most certainly do, sweetheart, Babsy, Babsy. And so until 554 00:34:43,378 --> 00:34:47,519 Suze: Sunday when I'm gonna tell all of you about why 555 00:34:48,000 --> 00:34:50,429 Suze: I don't like target date mutual funds, at least the 556 00:34:50,429 --> 00:34:52,879 Suze: majority of them. There's only one thing that we want 557 00:34:52,879 --> 00:34:54,959 Suze: you to remember when it comes to money, and what 558 00:34:54,959 --> 00:34:55,729 Suze: is it, KT? 559 00:34:55,840 --> 00:34:58,739 KT: It is people first, then money, then things. 560 00:35:00,320 --> 00:35:02,879 Suze: Now you stay safe. Love you. Bye bye 561 00:35:02,879 --> 00:35:03,419 KT: Bye bye.