1
00:00:47,959 --> 00:00:53,430
Suze: January 9, 2025. Welcome everybody to the Women and Money podcast,

2
00:00:53,799 --> 00:00:58,400
Suze: as well as everybody smart enough to listen. Today is

3
00:00:58,400 --> 00:01:03,990
Suze: Ask Suze and KT anything. Now, before we begin,

4
00:01:05,540 --> 00:01:06,929
Suze: We both have to say, right KT?

5
00:01:07,800 --> 00:01:11,180
KT: Oh, Suze and I for the past 24 hours have

6
00:01:11,180 --> 00:01:14,619
KT: been glued to the news, speaking to all of our

7
00:01:14,620 --> 00:01:18,899
KT: friends in California and where our hearts go out to

8
00:01:18,900 --> 00:01:19,750
KT: everyone in LA.

9
00:01:20,110 --> 00:01:23,300
KT: And we just can't imagine what they're going through, but

10
00:01:23,300 --> 00:01:25,970
KT: when we see the photos, I can't stop crying. It's so sad.

11
00:01:27,629 --> 00:01:30,699
Suze: Actually I can, I'm sorry to say I can imagine

12
00:01:30,699 --> 00:01:32,089
Suze: what they are going through.

13
00:01:32,220 --> 00:01:34,119
KT: Oh, you, you lived it because it was... I forgot.

14
00:01:34,589 --> 00:01:39,580
Suze: 1991 and the Oakland fires were 3000 homes burnt down.

15
00:01:39,860 --> 00:01:41,610
Suze: And we got a knock on the door and I

16
00:01:41,610 --> 00:01:44,479
Suze: was told to evacuate and so on and so forth

17
00:01:44,809 --> 00:01:48,059
Suze: and so, oh, you bet I can imagine, thank God

18
00:01:48,059 --> 00:01:51,610
Suze: for me anyway that the fire stopped a very short

19
00:01:51,610 --> 00:01:55,849
Suze: way from my house but I do know on some

20
00:01:55,849 --> 00:02:01,199
Suze: level what they were going through. So to that end

21
00:02:01,529 --> 00:02:02,650
Suze: this Sunday,

22
00:02:03,279 --> 00:02:08,149
Suze: I'm going to do an entire Suze school on fire insurance.

23
00:02:08,149 --> 00:02:14,109
Suze: Because in 1991 I was still seeing clients at my

24
00:02:14,110 --> 00:02:17,509
Suze: office at the Suze Orman Financial Group and I had

25
00:02:17,508 --> 00:02:20,309
Suze: the corner glass office and as you would look out

26
00:02:20,309 --> 00:02:23,788
Suze: the window you could see the fire as it was

27
00:02:23,788 --> 00:02:24,910
Suze: happening number one.

28
00:02:25,160 --> 00:02:29,509
Suze: But number two, the hills, for as far as you

29
00:02:29,508 --> 00:02:34,720
Suze: could see were blackened ash. There was no green whatsoever

30
00:02:34,990 --> 00:02:38,149
Suze: as you drove through the fire area which I had

31
00:02:38,149 --> 00:02:40,029
Suze: to do every day. There was not

32
00:02:40,315 --> 00:02:45,675
Suze: one structure standing, nothing. I mean, I'm telling you just

33
00:02:45,675 --> 00:02:48,994
Suze: ash and you would see people standing there going through

34
00:02:48,994 --> 00:02:51,955
Suze: their ash as I did with many friends to try

35
00:02:51,955 --> 00:02:55,035
Suze: to find mementos and things like that, however.

36
00:02:56,270 --> 00:03:01,538
Suze: I saw so many people came to me to decipher

37
00:03:01,538 --> 00:03:04,490
Suze: their insurance policy, what they should do what was covered,

38
00:03:04,529 --> 00:03:07,369
Suze: what was not so on some level I became an

39
00:03:07,369 --> 00:03:11,448
Suze: expert on it so I think it's important at this time.

40
00:03:11,910 --> 00:03:16,539
Suze: That the way that we really get educated not just

41
00:03:16,538 --> 00:03:20,580
Suze: about stocks and bonds and all these things, but it's

42
00:03:20,580 --> 00:03:25,419
Suze: important to be educated on what does your home insurance

43
00:03:25,419 --> 00:03:30,059
Suze: cover and what does it not so that will be

44
00:03:30,059 --> 00:03:32,139
Suze: Suze School on Sunday.

45
00:03:32,500 --> 00:03:35,039
Suze: I do just want to say one other thing before

46
00:03:35,039 --> 00:03:39,750
Suze: we begin, which is last Sunday, I gave a list

47
00:03:39,750 --> 00:03:43,679
Suze: of many, many stocks and ETFs that I would be

48
00:03:43,679 --> 00:03:45,630
Suze: dollar cost averaging into.

49
00:03:46,020 --> 00:03:50,039
Suze: I also told you two things that this was going

50
00:03:50,039 --> 00:03:54,440
Suze: to be the year of severe ups and severe downs,

51
00:03:54,809 --> 00:03:58,779
Suze: not just with the entire indexes but with individual stocks

52
00:03:58,779 --> 00:04:03,050
Suze: as well. I also told you that I thought Bitcoin

53
00:04:03,050 --> 00:04:06,919
Suze: could easily go to 125, but before it went there,

54
00:04:06,929 --> 00:04:09,250
Suze: it would go up and it would go down, and

55
00:04:09,250 --> 00:04:11,369
Suze: it would not surprise me if

56
00:04:11,414 --> 00:04:15,565
Suze: It went down to the low 90s or 87,000 right

57
00:04:15,565 --> 00:04:20,114
Suze: in there and after that podcast it zoomed up to

58
00:04:20,113 --> 00:04:23,325
Suze: almost 102,000 of Bitcoin and I was just praying it

59
00:04:23,325 --> 00:04:26,613
Suze: was like, please don't get suckered in. Did you listen

60
00:04:26,613 --> 00:04:29,045
Suze: to me? It's gonna go up, it's gonna go down,

61
00:04:29,154 --> 00:04:32,565
Suze: but I think it's gonna go down before it goes

62
00:04:32,565 --> 00:04:36,674
Suze: way up. So the key to everything, two things here.

63
00:04:37,269 --> 00:04:43,089
Suze: Is dollar cost averaging in little little amounts number one

64
00:04:43,350 --> 00:04:46,880
Suze: and number two, somebody wrote me and they said, Suze,

65
00:04:47,269 --> 00:04:49,670
Suze: I know I'm supposed to be invested in the plan

66
00:04:49,670 --> 00:04:51,779
Suze: that maybe Keith's gonna come out with for at least

67
00:04:51,779 --> 00:04:54,829
Suze: five years. What if I only have two years? I

68
00:04:54,829 --> 00:04:57,670
Suze: want you to all understand something that I'm about to

69
00:04:57,670 --> 00:04:58,700
Suze: say right now.

70
00:04:59,100 --> 00:05:02,969
Suze: No money that you have invested in the stock market.

71
00:05:02,980 --> 00:05:07,880
Suze: It doesn't matter what plan, whose plan, your plan, however,

72
00:05:08,209 --> 00:05:11,549
Suze: no money should be invested in the stock market that

73
00:05:11,549 --> 00:05:14,839
Suze: you don't have at least five years that you do

74
00:05:14,839 --> 00:05:16,769
Suze: not need to touch it.

75
00:05:17,549 --> 00:05:21,820
Suze: And again you've heard me say that over and over again,

76
00:05:22,029 --> 00:05:24,980
Suze: and the reason is, is that when the markets go down.

77
00:05:25,660 --> 00:05:29,058
Suze: It could take easily five years for it to recover,

78
00:05:29,130 --> 00:05:33,250
Suze: so you need five years or longer. How many times

79
00:05:33,250 --> 00:05:36,649
Suze: have you heard me say that? I do have to

80
00:05:36,649 --> 00:05:40,730
Suze: just comment on one stock that was mentioned on Sunday

81
00:05:40,730 --> 00:05:47,928
Suze: last Sunday, IONQ, which the other day it was down 50%.

82
00:05:48,709 --> 00:05:51,589
Suze: Now a lot of you probably are freaked if you

83
00:05:51,589 --> 00:05:54,760
Suze: bought it, but probably you only if you follow me,

84
00:05:54,790 --> 00:05:56,739
Suze: bought a little bit of it.

85
00:05:57,299 --> 00:06:00,589
Suze: And I went in the other day and I bought

86
00:06:00,589 --> 00:06:04,640
Suze: a lot of it when it was down 50%, so

87
00:06:04,640 --> 00:06:08,149
Suze: that's the type of stock. I just have to say

88
00:06:08,480 --> 00:06:13,238
Suze: that is long term and you dollar cost average into

89
00:06:13,238 --> 00:06:16,529
Suze: it as I did tell you on Sunday, take advantage

90
00:06:16,529 --> 00:06:20,959
Suze: of down days, especially in some of these stocks. Don't

91
00:06:21,230 --> 00:06:23,859
Suze: let it scare you when they go down like that.

92
00:06:24,109 --> 00:06:28,779
Suze: Just simply buy a little more and let's see what happens.

93
00:06:29,149 --> 00:06:32,230
KT: Yeah, she, she did that. Everyone, I had lunch. I said, Suze,

94
00:06:32,238 --> 00:06:35,980
KT: lunch is ready. KT, I can't, I can't join you. Why?

95
00:06:36,299 --> 00:06:39,429
KT: She said a stock just went down 50%. I'm taking advantage.

96
00:06:39,510 --> 00:06:41,790
KT: I said, buy it, girl, buy more.

97
00:06:42,070 --> 00:06:44,828
Suze: And I also bought it for Colo anyway.

98
00:06:45,010 --> 00:06:48,779
Suze: So there you go. So you have to have like

99
00:06:48,779 --> 00:06:53,980
Suze: this fearless attitude for this year when investing in markets

100
00:06:53,980 --> 00:06:58,500
Suze: and faith and faith in yourself that you can do

101
00:06:58,500 --> 00:07:01,859
Suze: this because you know God's not gonna save us that

102
00:07:01,859 --> 00:07:05,459
Suze: way KT it's our own actions that we take, but

103
00:07:05,459 --> 00:07:08,700
Suze: things go up, things go down when you know you're

104
00:07:08,820 --> 00:07:12,980
Suze: invested in good quality stocks, you take advantage of it.

105
00:07:13,010 --> 00:07:16,290
Suze: The same thing with Palantir. It's down in the 60s

106
00:07:16,290 --> 00:07:20,290
Suze: or it was down from 80%. Things go up, things

107
00:07:20,290 --> 00:07:23,559
Suze: go down, and when they go down, they give you

108
00:07:23,559 --> 00:07:28,290
Suze: another chance to buy even more, which is why dollar

109
00:07:28,290 --> 00:07:31,529
Suze: cost averaging and what you're soon gonna learn about value

110
00:07:31,529 --> 00:07:35,799
Suze: cost averaging is the way to go.

111
00:07:36,239 --> 00:07:39,760
Suze: Alright, KT, that's all the time for the ask Suze

112
00:07:39,760 --> 00:07:42,209
Suze: and KT anything. All right, girlfriend, what do you got?

113
00:07:42,480 --> 00:07:45,079
KT: So Suze, this is my first email which I think

114
00:07:45,079 --> 00:07:49,130
KT: is very relevant. Hi Suze and KT. My name is Will.

115
00:07:49,359 --> 00:07:52,070
KT: I'm 35, living in Detroit, Michigan.

116
00:07:52,399 --> 00:07:55,190
KT: I wanted to tell you that I'm so grateful to

117
00:07:55,190 --> 00:07:57,910
KT: both of you. I was able to max out my

118
00:07:57,910 --> 00:08:04,578
KT: Roth 401k and increase my net worth by $70,000 last year,

119
00:08:04,869 --> 00:08:07,790
KT: and that's partially because of your guidance.

120
00:08:08,350 --> 00:08:10,709
KT: I also think you'll be proud to know that I

121
00:08:10,709 --> 00:08:16,589
KT: bought the must-have documents for my three best friends for Christmas. Yay,

122
00:08:17,230 --> 00:08:21,429
KT: good job, William, or Will, working as the director of

123
00:08:21,429 --> 00:08:25,549
KT: nursing at a large nursing home for the past five years,

124
00:08:25,709 --> 00:08:29,350
KT: my single biggest challenge is that most people do not

125
00:08:29,350 --> 00:08:30,470
KT: plan for.

126
00:08:30,532 --> 00:08:37,763
KT: Every eventuality, including a rapid decline or becoming incapacitated, especially

127
00:08:37,763 --> 00:08:42,122
KT: for folks that are incapacitated. I see so much time

128
00:08:42,122 --> 00:08:46,973
KT: and money wasted at end of life seeking legal guardianship

129
00:08:47,203 --> 00:08:51,362
KT: when decision making ability could have been easily established prior

130
00:08:51,362 --> 00:08:52,762
KT: to incapacitation

131
00:08:53,535 --> 00:08:56,814
KT: with the must have docs. They were so easy to

132
00:08:56,815 --> 00:09:00,135
KT: get through and if everyone knew about them, my job

133
00:09:00,135 --> 00:09:04,416
KT: would be much easier. Well, Will, first of all, he's

134
00:09:04,416 --> 00:09:07,096
KT: great to give those as gifts. We think they're great

135
00:09:07,096 --> 00:09:09,655
KT: Christmas gifts or anytime gifts.

136
00:09:09,895 --> 00:09:13,575
Suze: Yeah, but Will, here's what I want everybody to know

137
00:09:13,575 --> 00:09:15,015
Suze: on behalf of Will.

138
00:09:15,450 --> 00:09:19,400
Suze: And especially of times where you have to expect the

139
00:09:19,400 --> 00:09:24,739
Suze: unexpected which every single person in LA is experiencing right now.

140
00:09:25,109 --> 00:09:29,858
Suze: The difference is, you know you're gonna get older hopefully.

141
00:09:30,359 --> 00:09:33,280
Suze: You know that you may get sick. You know that

142
00:09:33,280 --> 00:09:37,319
Suze: things happen in life and just like you take time

143
00:09:37,320 --> 00:09:41,280
Suze: to insure your home or whatever it may be, you

144
00:09:41,280 --> 00:09:42,520
Suze: have to make sure

145
00:09:42,989 --> 00:09:47,299
Suze: that you have all your paperwork in place so that

146
00:09:47,299 --> 00:09:50,700
Suze: you don't have to waste money. Remember this year's theme

147
00:09:51,059 --> 00:09:54,739
Suze: making your money make more money. And one of the

148
00:09:54,739 --> 00:09:58,218
Suze: ways that you make your money make more money is

149
00:09:58,219 --> 00:10:01,539
Suze: you make sure that you have all the documents in

150
00:10:01,539 --> 00:10:06,099
Suze: place today to protect your tomorrows. That is why the

151
00:10:06,099 --> 00:10:08,859
Suze: must-have documents were created.

152
00:10:09,309 --> 00:10:12,760
Suze: And you can get the must-have documents, everybody. They are

153
00:10:12,760 --> 00:10:16,320
Suze: the will, the trust, the advanced directive, and durable power

154
00:10:16,320 --> 00:10:19,159
Suze: of attorney for healthcare, and so on and so forth.

155
00:10:19,479 --> 00:10:24,200
Suze: And all you have to do is go to musthavedocs.com.

156
00:10:24,669 --> 00:10:29,419
Suze: They're $99 for $2500 worth of state of the art

157
00:10:29,419 --> 00:10:33,580
Suze: documents good in all 50 states. You can share them

158
00:10:33,580 --> 00:10:35,979
Suze: once you get them. So when you get them, you

159
00:10:35,979 --> 00:10:38,940
Suze: will get an activation code. You can share it with

160
00:10:38,940 --> 00:10:41,940
Suze: your family members and your friends. Every time you want

161
00:10:41,940 --> 00:10:45,510
Suze: to make an update, you can do so absolutely free,

162
00:10:45,659 --> 00:10:49,700
Suze: and once they're updated, you can get that update when

163
00:10:49,700 --> 00:10:53,150
Suze: the actual program is updated, you get that for free.

164
00:10:53,590 --> 00:10:55,929
Suze: So I know this sounds like a commercial, but it

165
00:10:55,929 --> 00:11:00,369
Suze: most certainly is, but those documents are put out by

166
00:11:00,369 --> 00:11:05,309
Suze: Hay House, and that is who does those documents. I'm

167
00:11:05,309 --> 00:11:09,049
Suze: the educator of that now, but that's who is selling

168
00:11:09,049 --> 00:11:15,770
Suze: them to you. So therefore go to musthadocs.com and really

169
00:11:15,770 --> 00:11:18,929
Suze: everybody you should take advantage of it.

170
00:11:19,270 --> 00:11:21,960
Suze: So I'm spending time with this right now on this

171
00:11:21,960 --> 00:11:25,640
Suze: podcast because of what happened not only in the LA

172
00:11:25,640 --> 00:11:28,839
Suze: fires because I'm sure there are people that will have

173
00:11:28,840 --> 00:11:32,760
Suze: been injured or killed in them as well as to

174
00:11:32,760 --> 00:11:37,500
Suze: honor Will and what Will asked us to do. Wait,

175
00:11:37,559 --> 00:11:40,229
Suze: don't you think it's funny, KT? His name is Will.

176
00:11:40,760 --> 00:11:41,280
KT: Don't go

177
00:11:41,280 --> 00:11:41,949
KT: there.

178
00:11:42,159 --> 00:11:44,239
Suze: But Will, Will wants all of you to have a

179
00:11:44,239 --> 00:11:47,679
Suze: will and a trust, huh? You see how that works.

180
00:11:47,760 --> 00:11:48,869
Suze: All right, let's go on.

181
00:11:49,549 --> 00:11:54,140
KT: That's a "Suzeism". All right. OK, next emails from Vanessa.

182
00:11:54,469 --> 00:12:00,228
KT: Hi Suze. On September 16, 2017, when our daughter was

183
00:12:00,229 --> 00:12:04,750
KT: 10 years old, we signed up for a $100,000 whole

184
00:12:04,750 --> 00:12:08,630
KT: life insurance policy that will be fully paid off after

185
00:12:08,630 --> 00:12:12,020
KT: paying monthly premiums for 20 years.

186
00:12:12,320 --> 00:12:15,229
KT: So it was a 20 year pay whole life. We

187
00:12:15,229 --> 00:12:18,669
KT: will not have to make any additional premium payments after

188
00:12:18,669 --> 00:12:24,549
KT: the 20 years. After 7.5 years of paying about $75

189
00:12:24,549 --> 00:12:31,229
KT: a month, we've paid in $6750 towards the policy.

190
00:12:31,710 --> 00:12:38,530
KT: The value is $3,353. OK? Our daughter is now 17

191
00:12:38,530 --> 00:12:41,809
KT: years old and thank God she is healthy. Could you

192
00:12:41,809 --> 00:12:45,340
KT: please let us know if after making all these premium payments,

193
00:12:45,609 --> 00:12:47,929
KT: would our daughter be better off at this stage

194
00:12:48,034 --> 00:12:52,064
KT: if we continue making the payments, or should we absorb

195
00:12:52,065 --> 00:12:56,464
KT: the loss of money paid so far, stop making additional

196
00:12:56,465 --> 00:13:00,885
KT: premium payments, and instead invest the remaining money for her

197
00:13:01,145 --> 00:13:04,265
KT: in a Standard and Poor 500 ETF like VOO?

198
00:13:05,039 --> 00:13:06,520
KT: What's your thought, Suze?

199
00:13:09,289 --> 00:13:10,960
Suze: Tell everybody what my face looks like. Come on.

200
00:13:11,489 --> 00:13:12,799
KT: She's impressed,

201
00:13:13,530 --> 00:13:14,238
Suze: Impressed?

202
00:13:14,239 --> 00:13:15,960
KT: That I did such a great read.

203
00:13:17,690 --> 00:13:20,559
Suze: And like tell them what my posture is right now.

204
00:13:20,849 --> 00:13:22,929
KT: Her posture is you've gotta be

205
00:13:22,929 --> 00:13:23,280
KT: kidding me.

206
00:13:23,369 --> 00:13:26,760
Suze: No, the posture what my, my head is on my hand.

207
00:13:27,169 --> 00:13:30,000
Suze: And I'm leaning over like really?

208
00:13:30,200 --> 00:13:33,799
KT: Really... well listen everybody you send anything in about whole

209
00:13:33,799 --> 00:13:38,960
KT: life just remember whole life, not Whole Foods, whole

210
00:13:38,960 --> 00:13:39,630
KT: life.

211
00:13:40,599 --> 00:13:45,919
Suze: There you go. All right, my dear Vanessa, listen to me.

212
00:13:47,200 --> 00:13:51,179
Suze: First of all, I have to ask you, why did

213
00:13:51,179 --> 00:13:57,669
Suze: you buy life insurance on a 10 year old child? Why?

214
00:13:58,119 --> 00:14:02,479
Suze: Who sold you that? You only buy life insurance in

215
00:14:02,479 --> 00:14:03,478
Suze: my opinion,

216
00:14:04,409 --> 00:14:09,609
Suze: when somebody is financially dependent upon you, and if you

217
00:14:09,609 --> 00:14:13,109
Suze: were to die, they would suffer a loss. If your

218
00:14:13,109 --> 00:14:16,330
Suze: daughter were to die, you would suffer the biggest loss

219
00:14:16,330 --> 00:14:20,090
Suze: of your life, obviously you might not even want that

220
00:14:20,090 --> 00:14:23,289
Suze: $100,000 at that point in time because I've seen that

221
00:14:23,289 --> 00:14:26,650
Suze: happen where you know, the parents just give it all

222
00:14:26,650 --> 00:14:29,090
Suze: away because they can't believe that their child died.

223
00:14:29,890 --> 00:14:33,809
Suze: But the question becomes, did you do it so that

224
00:14:33,809 --> 00:14:36,729
Suze: your daughter, when she got older, would have a paid

225
00:14:36,729 --> 00:14:41,880
Suze: up policy of $100,000? Is that why you did it?

226
00:14:43,020 --> 00:14:46,780
Suze: I would say to you it was a mistake. I

227
00:14:46,780 --> 00:14:50,770
Suze: just think it is a mistake and let me just

228
00:14:50,770 --> 00:14:55,780
Suze: tell you why. Obviously at $75 a month you say

229
00:14:55,780 --> 00:15:02,099
Suze: you've already paid in $6750 and you still have 12 and a half years.

230
00:15:02,179 --> 00:15:06,049
Suze: So by the time you're done with all of this,

231
00:15:06,340 --> 00:15:07,780
Suze: you still owe $11,250

232
00:15:09,664 --> 00:15:15,794
Suze: or you will have paid a total of $18,000 over

233
00:15:15,794 --> 00:15:22,174
Suze: 20 years for your daughter to have a $100,000 life

234
00:15:22,174 --> 00:15:25,905
Suze: insurance policy and is that something that you think she

235
00:15:25,905 --> 00:15:29,864
Suze: really needs? Don't you think that you could probably help

236
00:15:29,864 --> 00:15:31,304
Suze: her more in life

237
00:15:31,729 --> 00:15:36,520
Suze: than in death, so to speak, by taking that $75

238
00:15:36,520 --> 00:15:41,690
Suze: a month and having invested it over all those years really?

239
00:15:42,280 --> 00:15:44,150
Suze: So if I were you.

240
00:15:44,919 --> 00:15:49,919
Suze: You say that you have a policy value of about $3300.

241
00:15:49,960 --> 00:15:54,440
Suze: Now I don't know if you mean that you have

242
00:15:54,440 --> 00:15:57,280
Suze: a cash value, meaning if you were to stop the

243
00:15:57,280 --> 00:16:01,919
Suze: policy that you would get back $3300 or not or

244
00:16:01,919 --> 00:16:04,559
Suze: if that's just what the policy value is worth and

245
00:16:04,559 --> 00:16:06,239
Suze: if you were to cash it out, you would get

246
00:16:06,239 --> 00:16:10,000
Suze: a whole lot less but just let's make the assumption.

247
00:16:10,429 --> 00:16:14,830
Suze: That the $3,353 is what you would get back if

248
00:16:14,830 --> 00:16:16,820
Suze: you stopped the policy.

249
00:16:17,659 --> 00:16:21,729
Suze: If you took that $3300 right now.

250
00:16:22,460 --> 00:16:27,479
Suze: And you simply invested it and let's say your daughter

251
00:16:27,479 --> 00:16:31,229
Suze: now is 17 and half years of age because you've been doing

252
00:16:31,229 --> 00:16:33,640
Suze: it for 7 and a half years and she was 10 years

253
00:16:33,640 --> 00:16:36,559
Suze: of age when you did this and let's say she

254
00:16:36,559 --> 00:16:38,840
Suze: has a little bit of a side job or whatever

255
00:16:38,840 --> 00:16:43,869
Suze: it may be and she could put that $3300 into

256
00:16:43,869 --> 00:16:48,109
Suze: a Roth IRA because maybe she earns $3300 a year.

257
00:16:48,780 --> 00:16:53,270
Suze: And you were to give her maybe $75 a month

258
00:16:53,520 --> 00:16:57,239
Suze: to continue to put into that Roth IRA, and she

259
00:16:57,239 --> 00:17:04,439
Suze: did it for another 12 and a half more years at just an 8%

260
00:17:04,439 --> 00:17:09,270
Suze: annual average rate of return, approximately per year. She would

261
00:17:09,270 --> 00:17:14,889
Suze: have about $27,000 in her Roth IRA.

262
00:17:15,468 --> 00:17:18,658
Suze: And let's just say she never did anything with that

263
00:17:18,659 --> 00:17:22,499
Suze: money again. She never put another penny in. And now

264
00:17:22,499 --> 00:17:26,928
Suze: she's 50 years of age. Just let's say that's true.

265
00:17:27,499 --> 00:17:31,168
Suze: At an 8% annual average rate of return, she would

266
00:17:31,167 --> 00:17:37,177
Suze: have $140,000 in her Roth IRA.

267
00:17:38,050 --> 00:17:41,050
Suze: At a 10% annual average rate of return she'd have

268
00:17:41,050 --> 00:17:49,718
Suze: about $205,000 in her Roth IRA if she waited till

269
00:17:49,719 --> 00:17:51,400
Suze: she was 70.

270
00:17:52,329 --> 00:17:56,329
Suze: Can you just imagine she might have 5 or $600,000

271
00:17:56,329 --> 00:18:00,359
Suze: at that time all tax free.

272
00:18:01,069 --> 00:18:04,949
Suze: But that's money that she could use. That's money that

273
00:18:04,949 --> 00:18:10,689
Suze: she can access. That $100,000 life insurance policy doesn't help

274
00:18:10,689 --> 00:18:15,109
Suze: her at all, really, while she's alive. Maybe it helps

275
00:18:15,109 --> 00:18:17,708
Suze: her if she gets married, she has a child, whatever

276
00:18:17,709 --> 00:18:20,349
Suze: it may be, but she would be far better off

277
00:18:20,349 --> 00:18:22,790
Suze: buying a term insurance policy.

278
00:18:23,579 --> 00:18:27,760
Suze: And have this money for herself, but she would only

279
00:18:27,760 --> 00:18:32,569
Suze: buy a term policy if somebody is financially dependent upon her.

280
00:18:33,750 --> 00:18:38,400
Suze: So therefore, oh, you bet I would not continue to

281
00:18:38,400 --> 00:18:42,339
Suze: do this at all. I would switch that money if

282
00:18:42,339 --> 00:18:45,969
Suze: you can to a wroth for her. If not, hey,

283
00:18:46,170 --> 00:18:48,839
Suze: just put it then in an investment account for her.

284
00:18:49,479 --> 00:18:52,919
Suze: Eventually she'll be able to fund her wrath with that money,

285
00:18:53,209 --> 00:18:57,520
Suze: but that's what I would do if I were you.

286
00:18:57,810 --> 00:18:59,930
KT: OK, now, Suze, so keeping

287
00:19:00,459 --> 00:19:04,209
KT: on track with Roth, one of one of my favorite topics.

288
00:19:05,099 --> 00:19:07,979
KT: This next one's from Gina. She said, hi KT and Suze.

289
00:19:08,180 --> 00:19:11,979
KT: I'm 56 years old and I want to start converting

290
00:19:11,979 --> 00:19:15,339
KT: my traditional IRA to my Roth IRA

291
00:19:15,579 --> 00:19:16,319
Suze: And how old is she

292
00:19:16,319 --> 00:19:17,489
Suze: 56?

293
00:19:17,489 --> 00:19:20,458
KT: Yes... At Charles Schwab, but I don't want to use

294
00:19:20,459 --> 00:19:22,300
KT: my liquid savings to pay the

295
00:19:22,300 --> 00:19:22,780
KT: taxes.

296
00:19:22,859 --> 00:19:23,979
Suze: Why not? What's wrong with.

297
00:19:24,109 --> 00:19:26,859
KT: Oh wait a minute, this is what she's asking, and

298
00:19:26,859 --> 00:19:29,459
KT: it's a good question because I, I wouldn't think you

299
00:19:29,459 --> 00:19:31,729
KT: can do this, but here's what she wants to know.

300
00:19:32,099 --> 00:19:35,339
KT: When I do the conversion, could I ask Charles Schwab

301
00:19:35,699 --> 00:19:38,699
KT: to withhold the amount that I think I would owe

302
00:19:38,699 --> 00:19:38,900
KT: for

303
00:19:38,900 --> 00:19:39,319
KT: taxes?

304
00:19:39,319 --> 00:19:40,859
Suze: Yea, if you want to make the biggest mistake in

305
00:19:40,859 --> 00:19:42,030
Suze: your life, but go on.

306
00:19:42,099 --> 00:19:43,140
KT: Well, Schwab's telling her.

307
00:19:43,609 --> 00:19:46,130
KT: Schwab said, of course you can do this, but those

308
00:19:46,130 --> 00:19:50,129
KT: funds would be treated as distribution and you would be

309
00:19:50,130 --> 00:19:51,920
KT: taxed and penalized on that.

310
00:19:51,969 --> 00:19:52,680
Suze: They are correct,

311
00:19:52,849 --> 00:19:56,839
KT: Yeah. Schwab was right. I clarified. I, I didn't want

312
00:19:56,839 --> 00:20:00,250
KT: those funds to be sent to me rather just hold

313
00:20:00,250 --> 00:20:04,449
KT: them for my taxes, she said it's still treated as

314
00:20:04,449 --> 00:20:05,380
KT: a distribution.

315
00:20:05,689 --> 00:20:05,876
Suze: Absolutely.

316
00:20:05,876 --> 00:20:06,530
KT: Is this true?

317
00:20:06,709 --> 00:20:07,140
KT: That is true.

318
00:20:07,290 --> 00:20:10,369
KT: Well, there you go. Well, you answered her question. Next

319
00:20:10,369 --> 00:20:11,829
KT: question is from Elle.

320
00:20:12,500 --> 00:20:16,359
KT: She said, I think it's a she. I inherited my

321
00:20:16,359 --> 00:20:22,170
KT: father's IRA after his death in 2020. He was taking RMDs.

322
00:20:22,420 --> 00:20:24,939
KT: I split the account and I have a portion with

323
00:20:24,939 --> 00:20:28,900
KT: Fidelity and a portion with Vanguard. Do I need to

324
00:20:28,900 --> 00:20:32,280
KT: calculate the RMD for each, or can I take it

325
00:20:32,280 --> 00:20:33,339
KT: all from one?

326
00:20:33,800 --> 00:20:34,670
Suze: So let me,

327
00:20:34,839 --> 00:20:37,599
Suze: let's quickly, wait, just let me answer that, all right,

328
00:20:37,680 --> 00:20:42,510
Suze: which is Elle, even though you split it between the two,

329
00:20:43,000 --> 00:20:46,920
Suze: all you have to do is take the ending balance

330
00:20:46,920 --> 00:20:53,640
Suze: of last year, December 31st, 2024. Whatever the ending balances

331
00:20:53,640 --> 00:20:58,709
Suze: of both of those accounts, you add them together, you

332
00:20:58,709 --> 00:21:02,680
Suze: then have to do your life expectancy divided into that.

333
00:21:03,050 --> 00:21:07,839
Suze: And you can take whatever that number is from either one.

334
00:21:07,920 --> 00:21:10,719
Suze: You don't have to split it equally that way. Just

335
00:21:10,719 --> 00:21:14,949
Suze: make sure you do it before December 31st of this year.

336
00:21:15,239 --> 00:21:18,729
KT: So Suze, next question's from Christine. She said, Hi KT

337
00:21:19,199 --> 00:21:22,880
KT: and Suze. My mom is 83. She's in a state

338
00:21:22,880 --> 00:21:29,899
KT: dependent care facility. She's received $23,000 in benefits for Social Security.

339
00:21:30,160 --> 00:21:35,310
KT: She has under 2000 in assets and no income. Does

340
00:21:35,310 --> 00:21:39,469
KT: she still need to file taxes? My sister takes care

341
00:21:39,469 --> 00:21:43,579
KT: of her finances and asked me. I have no idea.

342
00:21:43,829 --> 00:21:47,709
KT: Now Suze, Christine said if it were a quizzy, she'd

343
00:21:47,709 --> 00:21:48,699
KT: say yes.

344
00:21:49,319 --> 00:21:51,050
Suze: Do you want this to be your quizzy?

345
00:21:52,589 --> 00:21:52,750
Suze: Come on, come on.

346
00:21:52,910 --> 00:21:55,869
KT: No, it's Christine's quizzy. She say yes.

347
00:21:57,030 --> 00:21:59,619
Suze: What is this? Is this is your quizzy.

348
00:22:00,670 --> 00:22:03,989
KT: All right, I think that everyone has to file taxes,

349
00:22:04,109 --> 00:22:05,430
KT: so I'd say yes too.

350
00:22:05,550 --> 00:22:06,188
Suze: Positive?

351
00:22:06,349 --> 00:22:06,819
KT: Yeah. (Suze makes the wrong answer sound)

352
00:22:08,390 --> 00:22:10,829
KT: Come on, it doesn't it, I know you have to file,

353
00:22:10,869 --> 00:22:12,629
KT: but you don't have to pay if you don't have

354
00:22:12,630 --> 00:22:13,380
KT: any money.

355
00:22:13,670 --> 00:22:18,280
Suze: No, let's just say this was for 2024. All right.

356
00:22:18,550 --> 00:22:22,729
Suze: And so for 2024, you are not required to file

357
00:22:22,729 --> 00:22:23,839
Suze: a tax return.

358
00:22:24,560 --> 00:22:33,400
Suze: Because her income did not equal or exceed $16,550 right?

359
00:22:33,410 --> 00:22:36,040
Suze: And all she had, no, no, all she had was

360
00:22:36,040 --> 00:22:37,349
Suze: $23,000 of

361
00:22:37,349 --> 00:22:40,410
KT: Social Security. OK, that's why we messed up.

362
00:22:40,410 --> 00:22:40,680
Suze: She did not have income. So there you go.

363
00:22:42,839 --> 00:22:44,959
KT: So Social Security is not taxable.

364
00:22:45,199 --> 00:22:46,869
Suze: All right, you got any others for me?

365
00:22:48,119 --> 00:22:50,459
KT: Yeah. So Suze, you tricked me on that Social Security,

366
00:22:50,520 --> 00:22:51,800
KT: so here's another one.

367
00:22:52,310 --> 00:22:58,219
KT: This is Social Security marriage penalty ready from William, he said,

368
00:22:58,270 --> 00:23:00,910
KT: I wanted to make sure that you know if a

369
00:23:00,910 --> 00:23:02,890
KT: couple collects Social Security...

370
00:23:03,229 --> 00:23:06,124
Suze: So wait, this person is asking if I know -

371
00:23:06,124 --> 00:23:07,150
Suze: versus they

372
00:23:07,150 --> 00:23:07,349
Suze: want me to tell...

373
00:23:07,349 --> 00:23:10,389
KT: I can tell you're already going to William is probably

374
00:23:10,390 --> 00:23:12,560
KT: making a big mistake. Let me read what he wrote.

375
00:23:13,069 --> 00:23:16,550
KT: He said, I want to make sure you know if

376
00:23:16,550 --> 00:23:19,069
KT: a couple collects Social Security.

377
00:23:19,420 --> 00:23:27,229
KT: That they limit to monthly maximum to $6,138. But if

378
00:23:27,229 --> 00:23:31,869
KT: you're divorced, both can collect over that amount. That is

379
00:23:31,869 --> 00:23:36,229
KT: why I truly believe that it is a penalty to

380
00:23:36,229 --> 00:23:40,270
KT: be married if both spouses retire later in life and

381
00:23:40,270 --> 00:23:42,188
KT: both collect benefits.

382
00:23:42,989 --> 00:23:45,920
KT: What's, what's William want everyone to do, get a divorce

383
00:23:45,920 --> 00:23:47,050
KT: before they start collecting?

384
00:23:47,050 --> 00:23:49,010
Suze: William, where did you

385
00:23:49,010 --> 00:23:49,160
Suze: get

386
00:23:50,260 --> 00:23:55,479
Suze: this information firsthand. I can tell you, KT, are we married?

387
00:23:56,239 --> 00:23:57,130
Suze: And KT.

388
00:23:57,540 --> 00:24:03,659
Suze: Between the two of us, are we limited to $6,138

389
00:24:03,660 --> 00:24:04,219
Suze: in Social

390
00:24:04,219 --> 00:24:04,930
Suze: Security?

391
00:24:05,060 --> 00:24:07,500
KT: No, we get like $8000 or something...

392
00:24:07,500 --> 00:24:10,060
Suze: Between the two of us. We get a lot. We

393
00:24:10,060 --> 00:24:10,500
Suze: get a lot.

394
00:24:10,619 --> 00:24:11,910
KT: We get about the max.

395
00:24:12,260 --> 00:24:13,099
Suze: We get the max.

396
00:24:13,300 --> 00:24:17,180
Suze: You know, right now the max versus 70 year old

397
00:24:17,449 --> 00:24:23,530
Suze: is I think 4,636. So William, if two people are

398
00:24:23,530 --> 00:24:29,010
Suze: married and they are claiming each their own Social Security.

399
00:24:30,170 --> 00:24:34,849
Suze: Not a spousal benefit, not a divorce benefit, but they're

400
00:24:34,849 --> 00:24:39,650
Suze: married and they're each claiming their own Social Security. There

401
00:24:39,650 --> 00:24:46,560
Suze: is no limit because they're married wherever you got that. I, I,

402
00:24:46,739 --> 00:24:46,890
Suze: I

403
00:24:46,890 --> 00:24:47,089
Suze: don't know.

404
00:24:47,170 --> 00:24:47,959
KT: I'll do it for you. (KT makes the wrong answer sound).

405
00:24:49,489 --> 00:24:52,640
Suze: Right. And so again, if two of you are married

406
00:24:52,640 --> 00:24:58,050
Suze: this year and you're both 70, you could have $4,636

407
00:24:58,050 --> 00:25:02,729
Suze: each if you qualify for the maximum. But William, I

408
00:25:02,729 --> 00:25:04,839
Suze: just want to say this, I want to make sure

409
00:25:04,839 --> 00:25:11,569
Suze: that you know that you are 1000% wrong. All right.

410
00:25:11,920 --> 00:25:13,198
KT: I think that's a good one to end on Suze.

411
00:25:13,890 --> 00:25:17,349
Suze: Williams, is that was that his name? William, right? We

412
00:25:17,349 --> 00:25:18,560
Suze: started with Will.

413
00:25:18,989 --> 00:25:19,989
KT: Now we have a William...

414
00:25:19,989 --> 00:25:24,199
Suze: and now which is like Will I am... kind of funny, right?

415
00:25:24,420 --> 00:25:27,708
Suze: And we won't go there. All right, everybody, so when.

416
00:25:27,829 --> 00:25:29,729
Suze: Until Sunday,

417
00:25:29,859 --> 00:25:32,890
KT: Sunday will be good. And if you have any friends

418
00:25:33,140 --> 00:25:37,859
KT: in California, especially in the, the, the burning areas, have

419
00:25:37,859 --> 00:25:39,698
KT: them listen to this, tell

420
00:25:39,699 --> 00:25:40,579
KT: them about it.

421
00:25:40,619 --> 00:25:43,579
Suze: It'll be on here for them. But anyway.

422
00:25:44,270 --> 00:25:49,689
Suze: We have a new ending right KT. So here's what

423
00:25:49,689 --> 00:25:52,849
Suze: we want you to remember. I'll take them out, my dear.

424
00:25:52,930 --> 00:25:53,229
KT: OK.

425
00:25:53,449 --> 00:25:56,930
Suze: There's two things I want you to remember, and it's

426
00:25:56,930 --> 00:26:02,839
Suze: this you are to make your time worth your time.

427
00:26:03,520 --> 00:26:08,959
Suze: And you are to make your money, make more money,

428
00:26:09,130 --> 00:26:12,170
Suze: and if you do that, oh, you will be...

429
00:26:12,170 --> 00:26:14,020
KT: Unstoppable.

430
00:26:14,170 --> 00:26:14,380
Suze: There

431
00:26:14,380 --> 00:26:15,810
Suze: you go, bye bye.