1 00:00:28,979 --> 00:00:34,319 Suze: December 3rd, 2023. Can you just imagine in just a 2 00:00:34,330 --> 00:00:41,000 Suze: few more days, I'm gonna be saying 2024. Anyway, December 3rd, 2023. 3 00:00:41,009 --> 00:00:44,939 Suze: Welcome everybody to the Women and Money Podcast. This is 4 00:00:44,950 --> 00:00:46,610 Suze: Suze O here 5 00:00:46,930 --> 00:00:52,279 Suze: and today is Suze School. Get out your Suze notebooks 6 00:00:52,290 --> 00:00:57,139 Suze: because you are going to need them first. We are 7 00:00:57,150 --> 00:01:01,490 Suze: going to be talking about all the changes to retirement accounts, 8 00:01:01,700 --> 00:01:06,190 Suze: the numbers that you need to know to make the 9 00:01:06,199 --> 00:01:08,870 Suze: right decisions for you. 10 00:01:09,239 --> 00:01:11,399 Suze: So there are gonna be a lot of numbers but 11 00:01:11,410 --> 00:01:15,250 Suze: you are going to write them down so that you 12 00:01:15,260 --> 00:01:18,739 Suze: have them to refer to when you need them. 13 00:01:19,500 --> 00:01:24,150 Suze: Also, I'm gonna be talking about treasuries where I think 14 00:01:24,160 --> 00:01:27,480 Suze: they're going. Why I want you to do the 18 15 00:01:27,489 --> 00:01:34,129 Suze: month certificate of deposit with Alliant Credit Union. Why? Money 16 00:01:34,139 --> 00:01:38,169 Suze: market funds right now? And short term t bills may 17 00:01:38,180 --> 00:01:42,129 Suze: not be exactly what you really want to be investing 18 00:01:42,139 --> 00:01:44,250 Suze: in at this point in time 19 00:01:44,569 --> 00:01:48,379 Suze: and last, but not least, what do I think of 20 00:01:48,389 --> 00:01:55,010 Suze: the markets? How should you be investing and things like that? Now, 21 00:01:55,019 --> 00:01:58,610 Suze: hopefully we will get through all of that. All right. 22 00:01:58,620 --> 00:02:00,309 Suze: So let's begin. 23 00:02:00,779 --> 00:02:06,129 Suze: The biggest change in 2024 is to the amount of 24 00:02:06,139 --> 00:02:11,220 Suze: money that you can put in to retirement accounts. So 25 00:02:11,610 --> 00:02:15,820 Suze: for a traditional and a Roth IRA, 26 00:02:16,690 --> 00:02:22,148 Suze: if you are under 50 years of age, you now 27 00:02:22,160 --> 00:02:26,229 Suze: can put in $7000 a year. 28 00:02:26,899 --> 00:02:31,399 Suze: If you are 50 or older, you can put in 29 00:02:31,410 --> 00:02:36,949 Suze: $8000 a year. So write that down. So just know, 30 00:02:37,479 --> 00:02:41,779 Suze: depending on your age, you can now contribute to a 31 00:02:41,788 --> 00:02:47,070 Suze: Roth or a traditional IRA 7000 a year or 8000. 32 00:02:47,080 --> 00:02:49,309 Suze: If you are 50 or older, 33 00:02:50,139 --> 00:02:55,460 Suze: if you have a 401k, a 403 B, a 457 34 00:02:55,470 --> 00:03:01,490 Suze: or a TSP at work, those are all employer sponsored 35 00:03:01,500 --> 00:03:05,240 Suze: retirement accounts. It does not matter whether it is a 36 00:03:05,250 --> 00:03:11,009 Suze: Roth or a traditional. You now can put in if 37 00:03:11,020 --> 00:03:17,008 Suze: you are under 50 $23,000 per year. 38 00:03:17,729 --> 00:03:20,630 Suze: This starts in 2024. 39 00:03:21,339 --> 00:03:30,919 Suze: If you are 50 or older, you can put in $30,500. Now, 40 00:03:30,929 --> 00:03:32,720 Suze: just remember everybody. 41 00:03:33,600 --> 00:03:39,020 Suze: You can, if you want to have a employer sponsored 42 00:03:39,029 --> 00:03:43,990 Suze: retirement account or let's say you are 50 older and 43 00:03:44,000 --> 00:03:48,770 Suze: you can put up to $30,500 in that. Plus 44 00:03:49,699 --> 00:03:52,860 Suze: if you qualify for it, income wise, and we'll talk 45 00:03:52,869 --> 00:03:56,070 Suze: about that in a second. You could put in another 46 00:03:56,080 --> 00:04:02,250 Suze: $8000 in a traditional or Roth IRA. So just between 47 00:04:02,259 --> 00:04:05,330 Suze: those two, if you had the money, you could be 48 00:04:05,339 --> 00:04:13,699 Suze: putting $38,500 in two retirement accounts. Just think about that. 49 00:04:13,949 --> 00:04:16,010 Suze: That's a lot of money anyway, 50 00:04:16,678 --> 00:04:19,648 Suze: for those of you who are self employed or you 51 00:04:19,658 --> 00:04:27,919 Suze: have a SEP IRA, your new maximum for, 2024 will 52 00:04:27,928 --> 00:04:31,657 Suze: be $68,000 a year. 53 00:04:32,329 --> 00:04:36,369 Suze: And for those of you who have simple IRAs if 54 00:04:36,380 --> 00:04:39,909 Suze: you are under 50 it's now 16,000 a year. 55 00:04:40,670 --> 00:04:47,769 Suze: And if you are 50 or older, it's $19,500 a year. 56 00:04:48,899 --> 00:04:52,690 Suze: Have you written all those down? If you missed those numbers, 57 00:04:52,700 --> 00:04:58,558 Suze: just go back, rewind the podcast and get these numbers 58 00:04:58,570 --> 00:05:03,250 Suze: straight because they're important numbers. Every number I'm about to 59 00:05:03,260 --> 00:05:08,760 Suze: give you in. This segment is important for you to know. Now, 60 00:05:08,769 --> 00:05:13,519 Suze: you know that I am. Roth retirement accounts crazy. 61 00:05:14,000 --> 00:05:20,859 Suze: And my favorite retirement account of all is a Roth IRA. Yes, 62 00:05:20,869 --> 00:05:28,019 Suze: I love as well. Roth 401ks, 403bs, 457s and TSBs. But, the 63 00:05:28,029 --> 00:05:35,368 Suze: retirement account I love the most is an individual Roth IRA. 64 00:05:35,940 --> 00:05:43,279 Suze: However, not, everybody qualifies to have a Roth IRA because 65 00:05:43,290 --> 00:05:47,760 Suze: it is based on your modified adjusted gross income when 66 00:05:47,769 --> 00:05:53,850 Suze: it comes to contributing to a Roth 401k, 403b, 457 67 00:05:53,859 --> 00:05:58,399 Suze: or TSP. It does not matter about your income, you 68 00:05:58,410 --> 00:06:00,480 Suze: qualify for it no matter what. 69 00:06:01,269 --> 00:06:05,350 Suze: However, for a Roth IRA, because it is such an 70 00:06:05,359 --> 00:06:10,250 Suze: incredible account, the government limits the amount of money you 71 00:06:10,260 --> 00:06:16,390 Suze: can make to qualify for it. So those new phase 72 00:06:16,399 --> 00:06:19,950 Suze: out limits are, if you are single, 73 00:06:21,040 --> 00:06:26,738 Suze: the most you can make is $146,000 a year to 74 00:06:26,750 --> 00:06:33,678 Suze: contribute the max to a Roth IRA, which is again, $7000. 75 00:06:33,690 --> 00:06:37,980 Suze: If you are under $58,000 if you are 50 or older, 76 00:06:38,988 --> 00:06:43,328 Suze: and that amount of money, the maximum starts to phase 77 00:06:43,339 --> 00:06:43,959 Suze: out 78 00:06:44,738 --> 00:06:47,808 Suze: to where you are no longer qualified for a Roth 79 00:06:47,820 --> 00:06:56,440 Suze: IRA after $161,000 a year of modified adjusted gross income. 80 00:06:56,738 --> 00:07:00,309 Suze: So what that means is that the seven or the 81 00:07:00,320 --> 00:07:04,479 Suze: $8000 a year that you're able to put in as 82 00:07:04,488 --> 00:07:10,450 Suze: your modified adjusted gross income increases from 146 to maybe 83 00:07:10,459 --> 00:07:12,920 Suze: 150 maybe to 160. 84 00:07:13,309 --> 00:07:17,820 Suze: The amount of money that you can put in decreases. 85 00:07:18,200 --> 00:07:23,559 Suze: But again, anything from $146,000 a year of modified adjusted 86 00:07:23,570 --> 00:07:27,768 Suze: gross income or less, you can put in the full 87 00:07:27,779 --> 00:07:36,049 Suze: amount if you are married finally, jointly, those amounts are $230,000. 88 00:07:36,059 --> 00:07:39,170 Suze: Anything under that you can put in the full amount 89 00:07:39,179 --> 00:07:40,250 Suze: into a Roth. 90 00:07:40,549 --> 00:07:47,000 Suze: It phases out at $240,000. For those of you who 91 00:07:47,010 --> 00:07:51,309 Suze: are married finally single. The most you can make is 92 00:07:51,320 --> 00:07:55,690 Suze: $10,000 a year. So if you want to contribute to 93 00:07:55,700 --> 00:07:59,149 Suze: a Roth or traditional or anything, you really do not 94 00:07:59,160 --> 00:08:02,130 Suze: want to be married finally single. 95 00:08:02,760 --> 00:08:08,829 Suze: So that is what you need to know about Roth IRAs. 96 00:08:08,970 --> 00:08:13,959 Suze: For those of you who make more than that and 97 00:08:13,970 --> 00:08:19,980 Suze: you still want to have a Roth IRA. Remember any 98 00:08:19,989 --> 00:08:24,200 Suze: money that you have in a traditional IRA or a 99 00:08:24,209 --> 00:08:28,140 Suze: simple IRA or a set IRA, it doesn't matter, you 100 00:08:28,149 --> 00:08:31,140 Suze: can convert any money you want 101 00:08:32,260 --> 00:08:38,390 Suze: into a rough IRA with no income limitations. Obviously, if 102 00:08:38,400 --> 00:08:43,010 Suze: you do so whatever money you happen to convert, 103 00:08:43,950 --> 00:08:48,989 Suze: you will owe ordinary income taxes on that. There also 104 00:08:49,000 --> 00:08:53,299 Suze: is something known as a back door, Roth IRA 105 00:08:54,090 --> 00:08:59,229 Suze: and I've explained it in previous podcasts. So you might 106 00:08:59,239 --> 00:09:03,020 Suze: wanna look that up as to how they work. They 107 00:09:03,030 --> 00:09:06,309 Suze: are still legal. You can still do them and therefore 108 00:09:06,320 --> 00:09:09,599 Suze: you can get money into Roth IRAs 109 00:09:10,979 --> 00:09:14,169 Suze: even though your income level is too high, 110 00:09:15,119 --> 00:09:19,650 Suze: there's something else you should know about which is required 111 00:09:19,659 --> 00:09:24,260 Suze: minimum distributions. Again, you have heard me talk about it 112 00:09:24,270 --> 00:09:29,829 Suze: with KT many, many times and a required minimum distribution 113 00:09:29,840 --> 00:09:34,119 Suze: is if you have any retirement account other than a 114 00:09:34,130 --> 00:09:39,590 Suze: Roth IRA or a Roth 401k or whatever it may be. 115 00:09:39,820 --> 00:09:44,080 Suze: So if you have traditional retirement accounts 116 00:09:44,400 --> 00:09:47,909 Suze: or pre taxed retirement accounts, 117 00:09:49,280 --> 00:09:53,580 Suze: there comes an age when you have got to start 118 00:09:53,590 --> 00:09:59,219 Suze: taking money out based on a specific formula of your 119 00:09:59,229 --> 00:10:01,169 Suze: life expectancy. 120 00:10:01,940 --> 00:10:06,719 Suze: And over the years that age has been changing prior 121 00:10:06,729 --> 00:10:12,340 Suze: to 2020. Once you reached 70 a half, you had 122 00:10:12,349 --> 00:10:16,169 Suze: to April 1st. After the year, you turned 70 a 123 00:10:16,179 --> 00:10:23,700 Suze: half to start withdrawing your RMDs. Then that changed and 124 00:10:23,710 --> 00:10:27,819 Suze: then it went to 72 years of age 125 00:10:28,359 --> 00:10:32,099 Suze: and then that changed. And now if you are born 126 00:10:32,109 --> 00:10:39,900 Suze: between 1951 and 1959 it is 73 years of age 127 00:10:40,020 --> 00:10:45,599 Suze: before you have to start taking out required minimum distributions. 128 00:10:46,130 --> 00:10:49,020 Suze: I cannot believe that next year 129 00:10:49,530 --> 00:10:53,669 Suze: will be when I have to start taking out required 130 00:10:53,679 --> 00:10:58,848 Suze: minimum distributions. And just to be clear about this, even 131 00:10:58,859 --> 00:11:03,750 Suze: though you are allowed to wait till April 1st after 132 00:11:03,760 --> 00:11:07,228 Suze: the year of your R MD age again for me 133 00:11:07,239 --> 00:11:09,510 Suze: next year, it will be 73. 134 00:11:10,299 --> 00:11:16,270 Suze: I will not wait until 2025 to take out my 135 00:11:16,280 --> 00:11:20,000 Suze: RMDs because if I do that, 136 00:11:20,729 --> 00:11:24,710 Suze: I have to take out two in that year. So 137 00:11:24,719 --> 00:11:27,630 Suze: that is not what I want to see happen. So 138 00:11:27,890 --> 00:11:32,309 Suze: for those of you, once you turn the age of 139 00:11:32,320 --> 00:11:36,780 Suze: an RMD, take it out in the year that you 140 00:11:36,789 --> 00:11:41,109 Suze: turned that age, do not wait until April 1st after 141 00:11:41,119 --> 00:11:45,150 Suze: the year, you turned your RMD ag e. Now, for 142 00:11:45,159 --> 00:11:50,150 Suze: those of you who were born in 1960 or later, 143 00:11:50,640 --> 00:11:55,210 Suze: you get to wait till you are 75 years of 144 00:11:55,219 --> 00:11:55,840 Suze: age 145 00:11:56,489 --> 00:12:02,429 Suze: to start your RMDs. So this is giving you more 146 00:12:02,440 --> 00:12:06,589 Suze: and more time for your money to accumulate, for it 147 00:12:06,599 --> 00:12:10,140 Suze: to grow, for it to be there for you when 148 00:12:10,150 --> 00:12:15,309 Suze: you do actually retire. I don't know the thought process 149 00:12:15,570 --> 00:12:20,468 Suze: behind why they are raising those ages, but I'm actually 150 00:12:20,479 --> 00:12:26,000 Suze: very happy that they have done. So those are 151 00:12:26,520 --> 00:12:31,219 Suze: the important things that you need to know about retirement accounts. 152 00:12:31,729 --> 00:12:37,250 Suze: Treasuries have I not been saying for a long time 153 00:12:37,520 --> 00:12:40,210 Suze: that I had this feeling that we should go longer 154 00:12:40,219 --> 00:12:44,200 Suze: term treasuries. And then I talked to you about a 155 00:12:44,210 --> 00:12:46,140 Suze: bar Bell approach. 156 00:12:46,570 --> 00:12:49,739 Suze: A barbell approach would be you had some of your 157 00:12:49,750 --> 00:12:54,330 Suze: money in shorter term treasuries and some of your money 158 00:12:54,340 --> 00:12:59,000 Suze: in equal amount, if not more in longer term treasuries 159 00:12:59,010 --> 00:13:04,549 Suze: that you should absolutely have your treasury money or your 160 00:13:04,559 --> 00:13:09,718 Suze: CD money or whatever it is divided like a bar bell. 161 00:13:10,130 --> 00:13:13,969 Suze: So here's what I think is happening with interest rates. 162 00:13:14,390 --> 00:13:18,359 Suze: I do think interest rates are going to come down 163 00:13:18,700 --> 00:13:23,729 Suze: for those of you who are in short term treasury bills. Now, 164 00:13:23,739 --> 00:13:25,630 Suze: listen closely to me. 165 00:13:26,530 --> 00:13:31,469 Suze: Do you remember a few years ago when a treasury 166 00:13:31,479 --> 00:13:34,549 Suze: when a money market account when a savings account was 167 00:13:34,559 --> 00:13:38,559 Suze: maybe paying you a half a percent interest, 1% interest, 168 00:13:38,760 --> 00:13:45,150 Suze: you couldn't get an interest rate because interest rates stayed 169 00:13:45,159 --> 00:13:48,150 Suze: low to spur on the economy. 170 00:13:49,049 --> 00:13:53,200 Suze: The danger that you have is if you stay in 171 00:13:53,210 --> 00:13:59,830 Suze: short term treasuries, that if interest rates continue to go 172 00:13:59,840 --> 00:14:06,150 Suze: down that every time one of your treasury bills matures 173 00:14:06,820 --> 00:14:09,559 Suze: when you go to renew it, you may find that 174 00:14:09,570 --> 00:14:14,239 Suze: the interest rate is lower than before and lower and 175 00:14:14,250 --> 00:14:15,400 Suze: lower and lower 176 00:14:16,479 --> 00:14:20,609 Suze: and therefore you're setting yourself up in a situation if 177 00:14:20,619 --> 00:14:24,580 Suze: it's true that interest rates are going to come down, 178 00:14:24,919 --> 00:14:28,500 Suze: that your renewal rates will get lower and lower. 179 00:14:29,179 --> 00:14:34,000 Suze: So why not lock in a higher interest rate right 180 00:14:34,010 --> 00:14:37,799 Suze: now for a longer period of time, 181 00:14:38,929 --> 00:14:43,059 Suze: a two year, maybe a five year, maybe a 20 year, 182 00:14:43,070 --> 00:14:46,400 Suze: maybe a 30 year for those of you who are 183 00:14:46,409 --> 00:14:49,809 Suze: keeping your money in money market accounts or high yield 184 00:14:49,820 --> 00:14:55,380 Suze: savings accounts, the same may happen to you that interest 185 00:14:55,390 --> 00:15:00,400 Suze: rates possibly will go down and down and you will 186 00:15:00,409 --> 00:15:03,590 Suze: get less and less on your money. 187 00:15:04,440 --> 00:15:06,789 Suze: So that's what I think is going to happen with 188 00:15:06,799 --> 00:15:11,229 Suze: interest rates. Now, let me go to the 18 month 189 00:15:11,239 --> 00:15:15,830 Suze: certificate of deposit with Alliant Credit Union. 190 00:15:16,530 --> 00:15:21,320 Suze: The reason I'd like this particular certificate of deposit is 191 00:15:21,330 --> 00:15:27,090 Suze: not just because Alliant Credit Union sponsors the podcast. I 192 00:15:27,099 --> 00:15:31,969 Suze: like this particular certificate, a deposit for a few reasons. 193 00:15:32,460 --> 00:15:38,950 Suze: Number one, the interest rate is currently at 5.3% 194 00:15:39,460 --> 00:15:49,400 Suze: for amounts under $75,000 and $75,000 and above it's 5.35%. Ok. 195 00:15:49,880 --> 00:15:53,799 Suze: Now you may be sane but Suze, I listen to 196 00:15:53,809 --> 00:15:56,940 Suze: these other youtube channels and everything and they give me 197 00:15:56,950 --> 00:16:01,760 Suze: a list of all these places that I can get 5.8% 198 00:16:01,770 --> 00:16:08,059 Suze: 5.9 whatever it may be on certificates of deposits. First 199 00:16:08,070 --> 00:16:11,580 Suze: of all, most of those certificates of deposits are good 200 00:16:11,590 --> 00:16:12,979 Suze: for maybe one year, 201 00:16:13,940 --> 00:16:19,739 Suze: not 18 months. Listen to me closely everybody with the 202 00:16:19,750 --> 00:16:27,880 Suze: Alliant 18 month CD. It is a variable maturity CD. 203 00:16:28,830 --> 00:16:35,729 Suze: So the minimum deposit is $1000 you can get an 204 00:16:35,739 --> 00:16:41,349 Suze: 18 month maturity, a 19 month maturity, a 20 month maturity, 205 00:16:41,359 --> 00:16:46,530 Suze: a 21 month maturity or a 23 month maturity. 206 00:16:47,260 --> 00:16:51,429 Suze: So in essence, you could almost get a two year 207 00:16:51,440 --> 00:17:00,349 Suze: certificate of deposit at Alliant Credit Union for 5.3 or 5.35%. 208 00:17:00,900 --> 00:17:06,149 Suze: If you look right now at what two year treasuries 209 00:17:06,160 --> 00:17:09,239 Suze: are going for, you will find 210 00:17:09,869 --> 00:17:17,369 Suze: that two year treasury notes right now are about 4.55% 211 00:17:17,550 --> 00:17:21,670 Suze: and probably going down. May I just remind you that 212 00:17:21,680 --> 00:17:24,040 Suze: is 1% less 213 00:17:24,920 --> 00:17:29,550 Suze: approximately than what the 18 to 23 month certificate of 214 00:17:29,560 --> 00:17:33,569 Suze: deposit at Alliant Credit Union is offering you. 215 00:17:34,449 --> 00:17:37,390 Suze: Now, the question has to be asked and answered. 216 00:17:38,369 --> 00:17:45,750 Suze: Why would I want a 5.3 or 5.35% interest rate 217 00:17:46,339 --> 00:17:51,699 Suze: when I've been seeing certificates of deposits with higher interest 218 00:17:51,709 --> 00:17:55,949 Suze: rates than that. Well, let me tell you why. 219 00:17:57,229 --> 00:18:02,130 Suze: When Dennis Devine, who is the CEO of Alliant Credit 220 00:18:02,140 --> 00:18:02,630 Suze: Union 221 00:18:03,339 --> 00:18:09,380 Suze: looks at a portfolio, he has to know with all 222 00:18:09,390 --> 00:18:13,390 Suze: of his CFO S and everything that the interest rate 223 00:18:13,400 --> 00:18:15,540 Suze: that they are offering you 224 00:18:16,170 --> 00:18:20,790 Suze: is an interest rate. That number one does not put 225 00:18:20,800 --> 00:18:25,010 Suze: any part of the portfolio of this or any other 226 00:18:25,020 --> 00:18:27,790 Suze: things that they offer in jeopardy. 227 00:18:28,939 --> 00:18:33,619 Suze: It's not about the highest interest rate all the time. Everybody. 228 00:18:33,979 --> 00:18:38,839 Suze: It is about the safest interest rate. Now, I understand 229 00:18:38,849 --> 00:18:43,550 Suze: very well that banks as well as credit unions are 230 00:18:43,560 --> 00:18:50,040 Suze: insured up to $250,000 for the FDIC or NCUA for 231 00:18:50,050 --> 00:18:50,959 Suze: credit unions. 232 00:18:51,359 --> 00:18:54,510 Suze: But you don't want to get yourself in a situation 233 00:18:54,550 --> 00:18:57,880 Suze: where you even have to think about that. The financial 234 00:18:57,890 --> 00:19:01,739 Suze: institution that you are doing business with is ever going 235 00:19:01,750 --> 00:19:06,060 Suze: to have to depend on that back up insurance. 236 00:19:06,760 --> 00:19:09,300 Suze: It's true. You have insurance on your home, you have 237 00:19:09,310 --> 00:19:12,810 Suze: insurance on your car, but you do not want 238 00:19:13,530 --> 00:19:17,630 Suze: to get in an accident and have to use that insurance. 239 00:19:18,180 --> 00:19:21,270 Suze: So it is very, very important 240 00:19:22,040 --> 00:19:26,699 Suze: that you know, you are with a financial institution 241 00:19:27,750 --> 00:19:30,649 Suze: that only invest your money 242 00:19:31,630 --> 00:19:35,439 Suze: in maturities and in a way and offer you an 243 00:19:35,449 --> 00:19:36,479 Suze: interest rate 244 00:19:37,160 --> 00:19:42,150 Suze: that no matter what happens in the economy, your portfolio 245 00:19:42,160 --> 00:19:46,319 Suze: is going to be safe and sound when you see 246 00:19:46,329 --> 00:19:51,130 Suze: these other offers that are at 5.8% are offering you 247 00:19:51,140 --> 00:19:55,859 Suze: all this money. They want your money. Of course they do. 248 00:19:56,890 --> 00:20:00,439 Suze: I don't care about the highest interest rate. I care 249 00:20:00,449 --> 00:20:05,599 Suze: about a safe interest rate that still is totally respectable. 250 00:20:06,500 --> 00:20:11,760 Suze: And when you compare this to the two year treasury, 251 00:20:12,489 --> 00:20:17,800 Suze: it is seriously respectable no matter really what state you 252 00:20:17,810 --> 00:20:22,239 Suze: live in and state income tax bracket. So I just 253 00:20:22,250 --> 00:20:26,079 Suze: wanted to talk about that with you if you are 254 00:20:26,089 --> 00:20:27,920 Suze: interested in purchasing 255 00:20:28,640 --> 00:20:32,930 Suze: the 18 to 23 month certificate of deposit with Alliant 256 00:20:32,939 --> 00:20:38,719 Suze: Credit Union, while interest rates are still up here, everybody 257 00:20:38,750 --> 00:20:42,660 Suze: because this will not last forever. I guarantee you that 258 00:20:43,479 --> 00:20:54,739 Suze: you need to go to my alliant.com. That's myalliant.com. And 259 00:20:54,750 --> 00:20:57,208 Suze: you know that you're at the right place when you 260 00:20:57,219 --> 00:21:01,520 Suze: see my picture with three choices for you to choose from, 261 00:21:01,599 --> 00:21:04,889 Suze: choose certificates of deposits 262 00:21:05,880 --> 00:21:08,209 Suze: last, but not least 263 00:21:09,060 --> 00:21:12,150 Suze: I just want to talk about the stock market as 264 00:21:12,160 --> 00:21:16,780 Suze: I told you that I would, I think what's happening 265 00:21:16,790 --> 00:21:20,609 Suze: in the stock market is that we're pretty solid for 266 00:21:20,619 --> 00:21:24,890 Suze: right now. But you have to take an approach where 267 00:21:24,900 --> 00:21:27,390 Suze: if you do not need your money for at least 268 00:21:27,400 --> 00:21:30,420 Suze: 5, 7 or 10 years, the money that you are going 269 00:21:30,430 --> 00:21:32,550 Suze: to invest in the stock market, 270 00:21:33,000 --> 00:21:36,979 Suze: then the truth of the matter is you just need 271 00:21:36,989 --> 00:21:42,589 Suze: to pick out stocks that are good quality stocks, many 272 00:21:42,599 --> 00:21:46,948 Suze: of them that pay a very nice dividend. And even 273 00:21:46,959 --> 00:21:50,420 Suze: if you don't want the dividends because you're younger and 274 00:21:50,430 --> 00:21:54,579 Suze: you want growth with your money. Then there are so 275 00:21:54,589 --> 00:21:58,780 Suze: many stocks out there that you absolutely 276 00:21:59,209 --> 00:22:02,849 Suze: could be buying, but the only way to be buying 277 00:22:02,859 --> 00:22:08,400 Suze: them is through dollar cost. Averaging. Now dollar cost averaging 278 00:22:08,410 --> 00:22:12,719 Suze: is where you decide on a specific sum of money 279 00:22:13,380 --> 00:22:17,839 Suze: that whether it's every month, every three months, every six months, 280 00:22:17,849 --> 00:22:21,359 Suze: whatever it is that you are going to invest in 281 00:22:21,369 --> 00:22:25,159 Suze: the stock market. If you're buying shares of those individual 282 00:22:25,170 --> 00:22:28,589 Suze: stocks at that time, or if it's an ETF or 283 00:22:28,599 --> 00:22:33,198 Suze: whatever you invest in that ETF, if you're going to 284 00:22:33,209 --> 00:22:37,948 Suze: be buying individual stocks and you don't have an exchange 285 00:22:37,959 --> 00:22:40,920 Suze: traded fund for true diversification, 286 00:22:41,430 --> 00:22:45,099 Suze: none of you should ever have more than 4% of 287 00:22:45,109 --> 00:22:50,579 Suze: your stock market, investable assets in one stock. So that 288 00:22:50,589 --> 00:22:57,188 Suze: means that you need about 25 individual stocks for you 289 00:22:57,199 --> 00:23:01,969 Suze: to have a truly diversified portfolio, but you don't want 290 00:23:01,979 --> 00:23:06,459 Suze: all of your money in just one stock or two 291 00:23:06,469 --> 00:23:07,380 Suze: stocks 292 00:23:07,869 --> 00:23:11,938 Suze: if you do and something goes wrong. There it goes. 293 00:23:12,250 --> 00:23:18,390 Suze: So if you have however, an exchange traded fund such 294 00:23:18,400 --> 00:23:21,869 Suze: as VTI the V otal Stock Market Index fund or 295 00:23:21,880 --> 00:23:26,329 Suze: VU or spiders spy whatever it may be that gives 296 00:23:26,339 --> 00:23:28,050 Suze: you diversification 297 00:23:28,819 --> 00:23:32,869 Suze: because that has a lot of stocks in it. Therefore, 298 00:23:32,890 --> 00:23:35,239 Suze: if you then want to buy one or two or 299 00:23:35,250 --> 00:23:38,229 Suze: three stocks on your own with the majority of your 300 00:23:38,239 --> 00:23:43,109 Suze: money in exchange traded funds. I do not have a 301 00:23:43,119 --> 00:23:44,839 Suze: problem with that. 302 00:23:45,579 --> 00:23:46,900 Suze: One last thing 303 00:23:47,709 --> 00:23:53,050 Suze: we still have. PXD. That's at about 233. We'll see 304 00:23:53,060 --> 00:23:55,810 Suze: what happens next year with the Exxon deal. Will it 305 00:23:55,819 --> 00:24:00,069 Suze: go through? Will it not? But Devon, let's talk about 306 00:24:00,079 --> 00:24:04,689 Suze: Devon for a second, Devon, which many of you have 307 00:24:04,699 --> 00:24:12,250 Suze: is at $45 a share. It's still paying about 6.39%. 308 00:24:12,989 --> 00:24:16,750 Suze: What many of you may do right now, especially since 309 00:24:16,760 --> 00:24:20,920 Suze: it's year end. If it's outside of a retirement account 310 00:24:21,300 --> 00:24:24,930 Suze: and you have a loss in it, maybe what you 311 00:24:24,939 --> 00:24:26,719 Suze: do is you sell it here 312 00:24:27,739 --> 00:24:31,050 Suze: because it seems like the price of oil may be 313 00:24:31,060 --> 00:24:35,119 Suze: going down still. And if it goes down, the price 314 00:24:35,130 --> 00:24:40,639 Suze: of Devon will also go down. So maybe you sell 315 00:24:40,650 --> 00:24:43,119 Suze: it here and you take a loss, 316 00:24:43,500 --> 00:24:47,530 Suze: then maybe you look at a few of those other 317 00:24:47,540 --> 00:24:53,260 Suze: stocks such as CTRE the care Trust Reit, which is 318 00:24:53,270 --> 00:24:59,089 Suze: paying about 4.90% in dividends. Or maybe you look at 319 00:24:59,130 --> 00:25:01,800 Suze: the really the income one again. The 320 00:25:02,244 --> 00:25:05,734 Suze: on that one is, oh, and that one currently is 321 00:25:05,744 --> 00:25:12,964 Suze: paying 5.72% in dividends. And then Verizon as you also 322 00:25:12,974 --> 00:25:16,804 Suze: know that I like a lot, although people don't understand it, 323 00:25:16,814 --> 00:25:19,024 Suze: but it has gone up since I first start telling 324 00:25:19,035 --> 00:25:24,765 Suze: you to buy it. Everybody. Right. That's paying a 7% dividend. 325 00:25:25,219 --> 00:25:30,209 Suze: So do you go from Devon sell it, take a loss, 326 00:25:30,219 --> 00:25:33,560 Suze: take whatever money you have and then divide it maybe 327 00:25:33,569 --> 00:25:37,900 Suze: into those three companies that I just mentioned. So you 328 00:25:37,910 --> 00:25:41,750 Suze: might want to divide it up between all of those 329 00:25:41,760 --> 00:25:46,920 Suze: and see what happens if you're in a retirement account 330 00:25:47,469 --> 00:25:50,829 Suze: and you don't wanna wait a whole lot longer to 331 00:25:50,839 --> 00:25:54,800 Suze: see what happens, believe it or not, you might wanna 332 00:25:54,810 --> 00:25:59,089 Suze: do it anyway. But if you feel like you have time, 333 00:25:59,099 --> 00:26:02,729 Suze: you're fine with the dividend. You do not care and 334 00:26:02,739 --> 00:26:05,890 Suze: you wanna wait and see. Does oil go back up 335 00:26:05,900 --> 00:26:08,920 Suze: one day or does it not then just hold it 336 00:26:09,339 --> 00:26:13,689 Suze: because you are still getting a very, very nice dividend. 337 00:26:13,869 --> 00:26:15,520 Suze: When it comes to PXD 338 00:26:15,910 --> 00:26:18,489 Suze: a few podcasts ago, I told you what I would 339 00:26:18,500 --> 00:26:19,609 Suze: have done with it 340 00:26:36,400 --> 00:26:37,069 Suze: And for those of you who don't remember. I told you all the way back when this first happened around October 11th of this year that I would sell it. Now, many of you followed my advice and you sold it at 235, 243. And then, a lot of you got very sad because after you sold it, you watched it go all the way up to 255. And then, you have watched it come all the way back down again. And right now it's about 228, 229, right in that area. Again, I am going to now reiterate, I have a feeling that it is possible that this merger may not go through because they're now questioning it on many levels and that if it doesn't go through, you will see this stock go right back down to 215 to 217, which is where it was before this buyout was announced. So you just got your dividend of $3.20 a share if you still own it on November 29th. So you did great there. So again, If I still owned it, I'm telling you what I would still do is I would sell it here. Now listen closely. If you want to stay in the energy arena, because you think oil is going to go back up, and I have to tell you, I do think oil is going to go back up, I just don't know when, I would then, rather than own PXD, Pioneer, I would switch it to Diamondback, which I also recommended years ago. Symbol is F A N G. And that's at about 152.45 a share, right around there. And it's currently paying about a 4 and a half percent dividend. Now I understand that dividend is nowhere near as high as Pioneer. However, it's something that you might want to consider. I would be doing it. That doesn't mean that you should. If you like the dividend Pioneer, you don't care if it goes all the way back down to 217, and you think they'll keep the dividend, okay, but I don't know, you might just want to think about it. Also, for those of you who are in the energy area, and you have the ETF XLE. Just keep it. You're fine. You have diversification there. It's not like you just own one stock, such as Devon or Pioneer. You have a whole basket of energy stocks. So that is very, very different. OK, 341 00:26:37,699 --> 00:26:43,929 Suze: There you go. I think I covered everything that you 342 00:26:43,939 --> 00:26:48,270 Suze: wanted to know about. So there's really only one thing 343 00:26:48,280 --> 00:26:51,208 Suze: I want you to say every single day and it 344 00:26:51,219 --> 00:26:56,089 Suze: is as follows today, wherever I go, I will create 345 00:26:56,329 --> 00:26:59,849 Suze: a more peaceful, joyful and loving world. 346 00:27:00,540 --> 00:27:04,129 Suze: And I really mean that everybody as we enter the 347 00:27:04,140 --> 00:27:08,890 Suze: holiday season, the greatest gift you can give yourself and 348 00:27:08,900 --> 00:27:13,050 Suze: to give this world is to follow those words, make 349 00:27:13,060 --> 00:27:14,879 Suze: those words a reality 350 00:27:15,560 --> 00:27:21,319 Suze: and bring a little peace, joy and love into everybody's life. 351 00:27:21,329 --> 00:27:25,899 Suze: And if you do that you will be unstoppable.