1 00:00:01,120 --> 00:00:01,809 Music: Music (in) 2 00:00:33,490 --> 00:00:38,450 Suze: June 29th, 2023. Welcome everybody to the Women and Money 3 00:00:38,459 --> 00:00:43,479 Suze: podcast as well as everybody smart enough to listen today 4 00:00:43,490 --> 00:00:45,360 Suze: is the what KT? 5 00:00:46,189 --> 00:00:49,830 KT: Ask KT and Suze anything you want. 6 00:00:52,209 --> 00:00:54,299 Suze: You thought that was a trick question? I was asking... 7 00:00:54,340 --> 00:00:56,959 KT: No, it was Ask KT and Suze anything you want, 8 00:00:57,069 --> 00:01:00,080 KT: but Suze's gonna give you the answer or not. I 9 00:01:03,619 --> 00:01:05,289 KT: have quite a mixed bag today. 10 00:01:06,080 --> 00:01:08,440 Suze: KT, when you not... You are a mixed bag. 11 00:01:09,556 --> 00:01:16,827 KT: I am. But, um, there's many questions still concerning CDs and, and all 12 00:01:16,836 --> 00:01:20,327 KT: those kinds of things. Maybe we should do another Suze 13 00:01:20,336 --> 00:01:21,806 KT: school on that again. 14 00:01:21,816 --> 00:01:23,787 Suze: No way, allright, sweetheart. 15 00:01:24,316 --> 00:01:27,077 KT: Ok. Are we ready? We have a lot. I have 16 00:01:27,086 --> 00:01:27,827 KT: a big stack and... 17 00:01:27,876 --> 00:01:32,126 Suze: Wait KT, I think we're approximately halfway through Robert's galavanting to the... 18 00:01:34,344 --> 00:01:36,613 KT: Which is the one you showed me the other day. 19 00:01:36,624 --> 00:01:39,333 KT: It was so many people. Where the heck was that? 20 00:01:39,444 --> 00:01:41,664 Suze: Oh, well, that I don't, I think New Jersey. It 21 00:01:41,674 --> 00:01:42,683 Suze: was crazy. 22 00:01:42,694 --> 00:01:45,713 KT: And we were trying to think if our friend Sandy 23 00:01:45,723 --> 00:01:49,393 KT: was there. All our friends that were like Dead Heads back 24 00:01:49,403 --> 00:01:52,403 KT: in the day still go to those concerts. And these 25 00:01:52,414 --> 00:01:53,473 KT: are like old people... 26 00:01:53,484 --> 00:01:55,573 Suze: Like God, he would have been so jealous to know 27 00:01:55,583 --> 00:01:56,194 Suze: that we were back 28 00:01:56,291 --> 00:01:57,841 Suze: stage with the Grateful Dead. 29 00:01:58,801 --> 00:02:01,180 KT: And they love Suze, especially the drummer. 30 00:02:01,670 --> 00:02:06,081 Suze: You can't call him a drummer. He's a percussionist. He 31 00:02:06,091 --> 00:02:07,140 Suze: doesn't like being called. 32 00:02:07,371 --> 00:02:12,141 KT: He loved, you, loved, you loved Suze, loved her work. OK? 33 00:02:12,151 --> 00:02:16,380 KT: Are we ready? Ok. Here we go. Everybody. This is, 34 00:02:16,680 --> 00:02:19,600 KT: this is from Jasmine. I picked this one first 35 00:02:19,880 --> 00:02:22,948 KT: to kind of set the stage here so that all 36 00:02:22,960 --> 00:02:26,449 KT: of you listening will do the same thing. Jasmine did 37 00:02:26,460 --> 00:02:30,940 KT: encourage your brothers and your sisters or your friends. Anyone 38 00:02:30,949 --> 00:02:33,809 KT: that's too shy to ask Suze a question to just 39 00:02:33,820 --> 00:02:36,960 KT: do it. We're not going to judge you. So Jasmine 40 00:02:36,970 --> 00:02:42,009 KT: asks this question on behalf of her brother-in-law. It's regarding 41 00:02:42,020 --> 00:02:45,929 KT: disability insurance and she said, KT and Suze, he's too 42 00:02:45,940 --> 00:02:47,190 KT: shy to ask. 43 00:02:47,729 --> 00:02:50,690 KT: So, Kevin, whose married, this is Jasmine. 44 00:02:51,240 --> 00:02:53,660 Suze: Do you think they're too shy of me or too shy 45 00:02:53,669 --> 00:02:54,359 Suze: of you? 46 00:02:54,500 --> 00:02:56,729 KT: They're too shy of you. Oh my God. To get 47 00:02:56,740 --> 00:02:59,929 KT: a slap down. They're afraid of the people, they're afraid 48 00:02:59,940 --> 00:03:02,119 KT: of you. They're not, no one's afraid of me. 49 00:03:02,570 --> 00:03:10,109 KT: So, Kevin... Kevin is Jasmine's brother. He's married, he has 50 00:03:10,119 --> 00:03:14,160 KT: three kids, 17 15 and 11. He's the sole income 51 00:03:14,169 --> 00:03:17,739 KT: earner in his household. He makes a decent living and 52 00:03:17,750 --> 00:03:22,679 KT: part of his company's benefits is a $15,000 a month 53 00:03:22,690 --> 00:03:26,478 KT: disability insurance tax free. That's great. 54 00:03:26,899 --> 00:03:31,380 KT: They would pay up until he's 67 years old. Additionally, 55 00:03:31,410 --> 00:03:37,300 KT: his company is offering a 25% discount on a $500 56 00:03:37,309 --> 00:03:44,070 KT: month premium for a 12,000 per month additional coverage tax free. 57 00:03:44,100 --> 00:03:48,690 KT: Is it worth getting this additional disability insurance? 58 00:03:48,699 --> 00:03:50,929 Suze: Oh, boy, you know, I have to tell you out 59 00:03:50,940 --> 00:03:53,589 Suze: of all the insurances that are out there 60 00:03:53,979 --> 00:03:58,270 Suze: disability insurance, believe it or not, Jasmine is one of 61 00:03:58,279 --> 00:04:04,759 Suze: the more complicated ones to actually understand how does it work? 62 00:04:04,770 --> 00:04:09,419 Suze: When does it take effect? Is it a policy that 63 00:04:09,429 --> 00:04:12,899 Suze: will cover you that's known as an Any Occ, an Owner's Occ? 64 00:04:13,740 --> 00:04:16,309 Suze: There are so many things that I would need to 65 00:04:16,320 --> 00:04:18,750 Suze: know about that policy 66 00:04:19,200 --> 00:04:25,489 Suze: and so at $500 a month, that's $6000 a year. 67 00:04:26,470 --> 00:04:29,769 Suze: I don't know, I can't answer that. I would probably 68 00:04:29,779 --> 00:04:35,559 Suze: not be doing it because he's already covered and maybe 69 00:04:35,570 --> 00:04:38,559 Suze: he makes a whole lot more than $15,000 a month 70 00:04:38,570 --> 00:04:41,739 Suze: tax free. But I have a feeling what he's getting 71 00:04:41,750 --> 00:04:43,420 Suze: right now tax free 72 00:04:44,010 --> 00:04:48,420 Suze: and without any cost is probably what he should stick to. 73 00:04:48,649 --> 00:04:49,329 Suze: All right, KT. 74 00:04:50,540 --> 00:04:55,450 KT: Next questions from Lulu. Suze, I loved your recent article 75 00:04:55,459 --> 00:04:59,589 KT: on Salary negotiation and the point on where you start 76 00:04:59,600 --> 00:05:04,000 KT: is so important. I turned 60 this year and have 77 00:05:04,010 --> 00:05:06,980 KT: worked for the same company for 30 years and I 78 00:05:06,988 --> 00:05:11,640 KT: started bringing home $850 a month being a single mom. 79 00:05:11,940 --> 00:05:15,678 Suze: It is surreal to look back on those days. Now, 80 00:05:15,690 --> 00:05:20,089 Suze: here's my question after 30 years of busting my tail. 81 00:05:20,100 --> 00:05:24,540 Suze: How do I maximize my next round contract? Mine is 82 00:05:24,549 --> 00:05:29,359 Suze: set for April 2024 or do I just ask for 83 00:05:29,369 --> 00:05:32,970 Suze: a different comp package for those not on the contract? 84 00:05:33,220 --> 00:05:36,140 Suze: I have read about deferred comp and things like that. 85 00:05:36,459 --> 00:05:40,670 KT: So Suze, what would be the top negotiating strategies over 86 00:05:40,678 --> 00:05:44,450 KT: and above just salary to help with the overall long 87 00:05:44,459 --> 00:05:47,630 KT: term plan that most of us would not think about 88 00:05:47,640 --> 00:05:48,910 KT: or know about. 89 00:05:49,359 --> 00:05:52,140 Suze: So the first thing you have to do, Lulu is 90 00:05:52,149 --> 00:05:55,769 Suze: understand what other benefits your company 91 00:05:56,178 --> 00:06:00,678 Suze: offers that you currently are not getting. Do they offer 92 00:06:00,690 --> 00:06:04,250 Suze: long term care insurance? That would be a fabulous benefit. 93 00:06:04,260 --> 00:06:08,238 Suze: Do they offer extended vacation? Because maybe you would want 94 00:06:08,250 --> 00:06:10,678 Suze: that because you've been there for so long. Can you 95 00:06:10,690 --> 00:06:15,149 Suze: get that? But the main thing when negotiating something 96 00:06:15,869 --> 00:06:19,119 Suze: is to negotiate from a place of power, 97 00:06:19,970 --> 00:06:24,420 Suze: from a place of knowing your own self worth and 98 00:06:24,428 --> 00:06:29,880 Suze: believing in everything that you are asking for, not just 99 00:06:29,890 --> 00:06:33,019 Suze: to get it because they offer it, but to get 100 00:06:33,029 --> 00:06:38,619 Suze: it because you deserve it and you need it very different. 101 00:06:39,140 --> 00:06:42,320 Suze: So you don't negotiate from a place of greed, you 102 00:06:42,329 --> 00:06:47,428 Suze: negotiate from a place of need and that is where 103 00:06:47,440 --> 00:06:51,510 Suze: I would start and I would come at it with honesty, 104 00:06:51,559 --> 00:06:57,440 Suze: integrity and having the best of all straight from your heart. 105 00:06:57,450 --> 00:06:58,820 Suze: Next question. KT. 106 00:06:58,869 --> 00:07:03,820 KT: Next question is from Celia. Hi, Suze. I just recently 107 00:07:03,829 --> 00:07:07,209 KT: retired at age 66. I was in health care. 108 00:07:07,600 --> 00:07:14,130 KT: My portfolio is now around $700,000. I've not withdrawn anything 109 00:07:14,140 --> 00:07:17,290 KT: as of yet. The number sounds good, but I'm afraid 110 00:07:17,299 --> 00:07:21,109 KT: to start taking money out because of the tax implications. 111 00:07:21,290 --> 00:07:23,609 KT: I started Social Security this year. 112 00:07:23,970 --> 00:07:28,149 KT: So just going by the social security income alone, everything 113 00:07:28,160 --> 00:07:32,140 KT: is doable on a tight budget. My other concern is 114 00:07:32,149 --> 00:07:35,980 KT: if something were to happen to me, my IRA will 115 00:07:35,989 --> 00:07:39,799 KT: go into inheritance and a huge chunk to taxes. 116 00:07:40,190 --> 00:07:44,190 KT: And then she's asking, I wish my financial planners advised 117 00:07:44,200 --> 00:07:48,119 KT: me on the choices of IRA versus Roth. Is it 118 00:07:48,130 --> 00:07:52,290 KT: advisable to move some of the IRA money into a 119 00:07:52,299 --> 00:07:57,500 KT: Roth at this time, Celia is 66. What should she do? 120 00:07:57,510 --> 00:07:58,010 Suze: KT... 121 00:07:58,739 --> 00:07:59,720 KT: Is that a pop quiz? 122 00:08:00,230 --> 00:08:03,640 Suze: It's not a pop quiz. It's actually a question for us. 123 00:08:03,649 --> 00:08:04,359 Suze: You and me. 124 00:08:05,049 --> 00:08:08,679 Suze: So here we are. And it was striking me so deep. 125 00:08:08,690 --> 00:08:10,929 Suze: I have to tell you when you were reading this 126 00:08:11,200 --> 00:08:14,570 Suze: is that I had a flashback to when I would 127 00:08:14,579 --> 00:08:18,769 Suze: be answering questions like this. But when I was 45 128 00:08:19,450 --> 00:08:24,279 Suze: we're old and so many people now are writing in. 129 00:08:24,350 --> 00:08:29,670 Suze: I'm 60, I'm 66. And here we sit 72. You 130 00:08:29,679 --> 00:08:33,500 Suze: about to be 71 in a few weeks. KT 131 00:08:34,109 --> 00:08:36,419 Suze: what does it make you feel like knowing that we're 132 00:08:36,429 --> 00:08:39,039 Suze: older than these people now? Versus? 133 00:08:39,049 --> 00:08:41,898 KT: I never think like that and I never feel like that. 134 00:08:41,908 --> 00:08:46,958 KT: I never read a question from someone considerably younger than me. 135 00:08:46,968 --> 00:08:51,388 KT: Worried about getting old like I am, I never think 136 00:08:51,398 --> 00:08:53,379 KT: like that because I don't feel like that. 137 00:08:53,388 --> 00:08:54,989 Suze: So you don't feel old on any level? 138 00:08:54,999 --> 00:08:57,708 KT: Not at all. I know I'm old, but I don't 139 00:08:57,718 --> 00:09:00,989 KT: feel old and I don't think I'm old. I just 140 00:09:00,999 --> 00:09:02,778 KT: find it. So, do you think you're old? 141 00:09:03,690 --> 00:09:04,299 Suze: Um, 142 00:09:05,729 --> 00:09:10,400 Suze: I obviously must, I don't feel like I'm old but 143 00:09:10,409 --> 00:09:13,900 Suze: I think about getting older, I'll be honest with you, 144 00:09:13,969 --> 00:09:17,679 Suze: it 60 was fine. 50 was easy. 60 was fine. 145 00:09:17,710 --> 00:09:20,979 Suze: 70 was even kind of easy, right? But then I 146 00:09:20,989 --> 00:09:22,140 Suze: think 80 147 00:09:22,880 --> 00:09:25,210 Suze: and I'm not sure I'll quite feel the same way 148 00:09:25,219 --> 00:09:26,650 Suze: when I'm 80. 149 00:09:27,400 --> 00:09:32,270 Suze: Celia, let me first take the last part of your question, 150 00:09:32,609 --> 00:09:35,909 Suze: which is, is it advisable to move some of the 151 00:09:35,919 --> 00:09:40,770 Suze: IRA money into a Roth at this time? Absolutely not. 152 00:09:41,400 --> 00:09:45,409 Suze: Because if you move it into a Roth, you are 153 00:09:45,419 --> 00:09:49,869 Suze: going to pay taxes on any amount that you do convert. 154 00:09:50,609 --> 00:09:54,039 Suze: Right. So, since you're gonna need this money sooner than 155 00:09:54,049 --> 00:09:59,609 Suze: later anyway, just leave it exactly where it is. That's 156 00:09:59,619 --> 00:10:04,489 Suze: number one. Number two, it seems like you're just kind 157 00:10:04,500 --> 00:10:09,219 Suze: of making it on your social security that it's a struggle, 158 00:10:09,229 --> 00:10:13,599 Suze: but you say that you're worried about the tax implications. 159 00:10:13,760 --> 00:10:18,880 Suze: Listen to me, if your only income is your social security, 160 00:10:19,500 --> 00:10:22,669 Suze: then you know, it's not gonna kill you on any level. 161 00:10:22,679 --> 00:10:26,179 Suze: If you take out like $12,000 a year, it's not 162 00:10:26,190 --> 00:10:29,409 Suze: gonna make your social security taxable. It's not gonna put 163 00:10:29,419 --> 00:10:32,750 Suze: you in any kind of tax bracket at all. So 164 00:10:32,760 --> 00:10:35,589 Suze: I personally would be taking the money out 165 00:10:36,330 --> 00:10:39,280 Suze: that you need to either live on or just pay 166 00:10:39,289 --> 00:10:42,359 Suze: taxes on it now and put it in a savings 167 00:10:42,369 --> 00:10:46,630 Suze: account if you want not into a Roth. Right? Because 168 00:10:46,640 --> 00:10:48,739 Suze: remember if you convert it to a Roth, 169 00:10:49,219 --> 00:10:53,650 Suze: then the five year clock starts. So you just don't 170 00:10:53,659 --> 00:10:56,619 Suze: want to do that at this point in time. I 171 00:10:56,630 --> 00:11:00,229 Suze: don't want you to worry that your IRA is going 172 00:11:00,239 --> 00:11:03,439 Suze: to go to inheritance and a huge chunk will go 173 00:11:03,450 --> 00:11:09,219 Suze: to taxes. Please do not let taxes rule your decisions 174 00:11:09,229 --> 00:11:12,968 Suze: in terms of the quality of life that you deserve 175 00:11:12,979 --> 00:11:13,869 Suze: to live. 176 00:11:14,489 --> 00:11:17,849 Suze: You worked for this money, you need to worry about yourself. 177 00:11:17,859 --> 00:11:20,979 Suze: You need to make a plan for yourself and anything 178 00:11:20,989 --> 00:11:25,549 Suze: that happens after you're gone. Ok. But don't worry so 179 00:11:25,559 --> 00:11:30,059 Suze: much about taxes because by worrying about taxes, you may 180 00:11:30,070 --> 00:11:34,739 Suze: be creating for yourself a bigger problem, believe it or not. Also, 181 00:11:34,750 --> 00:11:39,960 Suze: don't forget that if your portfolio is in a retirement 182 00:11:39,969 --> 00:11:40,799 Suze: account 183 00:11:41,479 --> 00:11:45,559 Suze: starting at the age of 73 you do have to 184 00:11:45,570 --> 00:11:50,330 Suze: start taking required minimum distributions. So, if you start taking 185 00:11:50,340 --> 00:11:53,640 Suze: a little bit out of there now and even saving it, 186 00:11:53,989 --> 00:11:58,380 Suze: the amount of the required minimum distributions will be less 187 00:11:58,390 --> 00:12:02,330 Suze: when you are 73. And that's because KT there won't 188 00:12:02,340 --> 00:12:04,489 Suze: be as much money in the account. 189 00:12:06,109 --> 00:12:08,289 KT: So this is a, this is a good one. This 190 00:12:08,299 --> 00:12:12,880 KT: is from Elsie. Suze. Love you gals. Never stop laughing 191 00:12:13,280 --> 00:12:17,848 KT: like trust me, she's telling us, never stop laughing. That's 192 00:12:17,859 --> 00:12:20,200 KT: why I don't feel old. I can still laugh a 193 00:12:20,210 --> 00:12:21,780 KT: lot at you. 194 00:12:22,409 --> 00:12:25,289 Suze: Do you laugh at me a lot? What's the thing 195 00:12:25,299 --> 00:12:26,679 Suze: that makes you laugh the most? 196 00:12:26,690 --> 00:12:29,150 KT: When you get mad at me for something that you 197 00:12:29,159 --> 00:12:31,210 KT: shouldn't be mad at me about and I look at 198 00:12:31,219 --> 00:12:33,580 KT: you and I start laughing and you get really mad 199 00:12:33,590 --> 00:12:34,700 KT: even more mad 200 00:12:36,159 --> 00:12:40,500 KT: matter matter. OK? So ready from Elsie, Susie. 201 00:12:41,260 --> 00:12:45,689 KT: My CD at Alliant is coming due. I don't need 202 00:12:45,700 --> 00:12:48,569 KT: this money for at least two years. I live pretty 203 00:12:48,580 --> 00:12:52,650 KT: close to you all in Florida. So she's a Floridian. 204 00:12:54,719 --> 00:12:58,140 KT: Should I, should I just put the money in Alliant 205 00:12:58,150 --> 00:13:02,080 KT: savings account or if not? Which CD should I get? 206 00:13:02,309 --> 00:13:04,429 KT: I don't need this money. I just want it to 207 00:13:04,440 --> 00:13:05,809 KT: be safe and sound. 208 00:13:06,219 --> 00:13:07,890 KT: Tell Elsie what I did. 209 00:13:07,969 --> 00:13:11,070 Suze: Well, no, I'm gonna tell Elsie what she should do. 210 00:13:11,080 --> 00:13:14,589 Suze: All right. So Elsie, if you don't need the money 211 00:13:14,599 --> 00:13:17,510 Suze: for two years. You live in Florida, which is a 212 00:13:17,520 --> 00:13:23,130 Suze: state tax free state. All right, I would absolutely put 213 00:13:23,140 --> 00:13:30,570 Suze: it in the 18 month certificate of deposit for 5.15%. 214 00:13:31,030 --> 00:13:35,718 Suze: Now, remember the 18 month, even though they don't advertise 215 00:13:35,729 --> 00:13:39,419 Suze: it like this, you can lock it up for 23 216 00:13:39,429 --> 00:13:46,079 Suze: months at 5.15%. So you should absolutely put it in 217 00:13:46,419 --> 00:13:49,150 Suze: since the money's already at Alliant . And by the way, 218 00:13:49,159 --> 00:13:51,109 Suze: for those of you whose money is not at Alliant, 219 00:13:52,010 --> 00:13:55,510 Suze: you should do this as well. Is that put it 220 00:13:55,520 --> 00:14:02,939 Suze: into a CD for 23 months at 5.15%. If you 221 00:14:02,950 --> 00:14:09,359 Suze: look at what currently the two year treasury note is paying, 222 00:14:09,500 --> 00:14:12,210 Suze: it's only like 4.6%. 223 00:14:12,739 --> 00:14:16,369 Suze: So you're at a lot higher interest rate for just 224 00:14:16,380 --> 00:14:21,429 Suze: one month less. So if I were you right, that's 225 00:14:21,440 --> 00:14:23,880 Suze: exactly what I would be doing and I would be 226 00:14:23,890 --> 00:14:29,669 Suze: doing it today because you do not know when that 5.15% 227 00:14:29,679 --> 00:14:33,409 Suze: will decrease for those of you who are looking for 228 00:14:33,419 --> 00:14:37,789 Suze: certificates of deposits. I am telling you the 18 month 229 00:14:38,049 --> 00:14:41,739 Suze: and this rate is good for the 18 through 23 months. 230 00:14:41,750 --> 00:14:44,580 Suze: So every year you choose which term you want or 231 00:14:44,590 --> 00:14:46,820 Suze: you can do a combination of all of them is 232 00:14:46,830 --> 00:14:53,140 Suze: paying 5.15%. Good luck finding that anywhere else. And the 233 00:14:53,150 --> 00:14:55,719 Suze: CD is not callable which means 234 00:14:55,799 --> 00:14:59,210 Suze: you're guaranteed to get that interest rate for the entire 235 00:14:59,219 --> 00:15:05,059 Suze: time to check it out. Go to my Alliant dot com. 236 00:15:05,070 --> 00:15:10,609 Suze: That's myalliant dot com. 237 00:15:10,640 --> 00:15:11,969 KT: That's what I did, Suze. 238 00:15:13,890 --> 00:15:16,479 Suze: Ok. This is why didn't you do a 23 month? 239 00:15:16,609 --> 00:15:19,679 KT: Because I didn't, I just did it myself and I 240 00:15:19,690 --> 00:15:22,619 KT: didn't ask you. I didn't know you could do that. 241 00:15:24,219 --> 00:15:26,219 Suze: Now, should I laugh at you? 242 00:15:26,229 --> 00:15:31,460 KT: You can. But I, I'll do, I'll continue it. All right, ready. 243 00:15:31,469 --> 00:15:36,390 KT: This is from Todd. Hello. My favorite love bugs. I 244 00:15:36,979 --> 00:15:38,000 KT: have to tell everyone about... 245 00:15:44,299 --> 00:15:48,559 Suze: Wait... Why didn't I tell KT, I wanted her to do 23 246 00:15:48,570 --> 00:15:54,020 Suze: month versus the 18 month. Ok. It's very important for 247 00:15:54,030 --> 00:15:57,969 Suze: all of you that are in a relationship and maybe 248 00:15:57,979 --> 00:16:01,429 Suze: one of you knows all about money 249 00:16:02,260 --> 00:16:03,799 Suze: and the other one... 250 00:16:04,619 --> 00:16:09,429 KT: Can you guess in our family, who knows more about money? 251 00:16:10,840 --> 00:16:14,669 Suze: And the other one is still kind of learning. 252 00:16:14,679 --> 00:16:16,150 KT: The other one knows how to garden. 253 00:16:17,219 --> 00:16:21,440 Suze: Which I do. Not. All right. It's important that they 254 00:16:21,450 --> 00:16:26,179 Suze: learn from their mistakes. Everybody, not a huge mistake. Like 255 00:16:26,190 --> 00:16:29,059 Suze: I kind of knew what KT was doing, but I 256 00:16:29,070 --> 00:16:32,309 Suze: wanted KT to feel powerful enough and I still do 257 00:16:32,320 --> 00:16:36,419 Suze: KT that you can take action on your own. And now, 258 00:16:36,429 --> 00:16:39,140 Suze: you know, if you want to invest more money, what 259 00:16:39,150 --> 00:16:39,929 Suze: you can do. 260 00:16:40,450 --> 00:16:45,200 Suze: Right. So, but you have to empower your mate, you 261 00:16:45,210 --> 00:16:49,510 Suze: have to. Otherwise if something happens to me or something 262 00:16:49,520 --> 00:16:52,599 Suze: happens to you. What kind of situation does that leave 263 00:16:52,609 --> 00:16:55,559 Suze: them in? So please know that. 264 00:16:56,190 --> 00:17:00,030 KT: Ok. All right. Next question is from Todd. Hello. My 265 00:17:00,039 --> 00:17:01,880 KT: favorite love bugs. 266 00:17:01,890 --> 00:17:03,969 Suze: Oh, my God. I haven't heard that... 267 00:17:04,449 --> 00:17:09,040 KT: The love bug was something that Suze would refer to 268 00:17:09,050 --> 00:17:11,869 KT: the callers often on the Suze Orman show when we 269 00:17:11,880 --> 00:17:15,119 KT: were on television. Remember everyone called and people used to 270 00:17:15,130 --> 00:17:18,280 KT: send her all these little love bugs, like little 271 00:17:18,708 --> 00:17:21,279 KT: lady bug, um, animals. 272 00:17:21,288 --> 00:17:24,388 Suze: And you know, you know why I did that because 273 00:17:24,398 --> 00:17:28,088 Suze: I couldn't remember the name. I'm not really good at 274 00:17:28,098 --> 00:17:31,917 Suze: name recall. And so a lot of times things are 275 00:17:31,928 --> 00:17:36,417 Suze: happening very quickly, especially and I'm speaking. So I would say, listen, 276 00:17:36,428 --> 00:17:40,639 Suze: Love Bug. So once I'm on Larry King, right? And 277 00:17:40,648 --> 00:17:44,598 Suze: somebody calls in and I can't remember their name and 278 00:17:44,609 --> 00:17:46,259 Suze: I'm answering the question 279 00:17:46,520 --> 00:17:48,130 Suze: and I don't want to say to Larry, what was 280 00:17:48,140 --> 00:17:51,119 Suze: their name or whatever. So I say, listen, Love Bug 281 00:17:51,130 --> 00:17:52,689 Suze: and Larry goes love bug? 282 00:17:53,500 --> 00:17:57,109 Suze: Love bug? I go, yeah. Once I did it, I 283 00:17:57,119 --> 00:17:59,439 Suze: called somebody Pop Tart and the other people on the 284 00:17:59,449 --> 00:18:03,229 Suze: panel on Larry King went Pop Tart? I went. Anyway. 285 00:18:03,239 --> 00:18:04,689 Suze: There you go. All right. 286 00:18:04,699 --> 00:18:08,349 KT: So Suze, you are always on top of trust and 287 00:18:08,359 --> 00:18:14,149 KT: you always talk about revocable. But here's an irrevocable trust question. 288 00:18:14,489 --> 00:18:17,188 KT: I like so many people in my age group are 289 00:18:17,199 --> 00:18:21,488 KT: dealing with aging parents and assisted living in nursing homes. 290 00:18:21,500 --> 00:18:25,250 KT: It's so frustrating to have to use up all of 291 00:18:25,260 --> 00:18:29,410 KT: your hard earned retirement fund for these costs, which are 292 00:18:29,420 --> 00:18:35,109 KT: running about $10,000 a month. Should we have an irrevocable 293 00:18:35,119 --> 00:18:36,050 KT: trust 294 00:18:36,290 --> 00:18:40,260 KT: or should we get an irrevocable trust? So, listen, wait, 295 00:18:40,270 --> 00:18:43,650 KT: this is from San Francisco, buddy boy, buddy, boy or 296 00:18:43,660 --> 00:18:46,319 KT: love bug, buddy, boy, he's from San Francisco. 297 00:18:46,439 --> 00:18:51,239 Suze: This is the problem. All trusts have a five-year look back period. 298 00:18:51,420 --> 00:18:55,290 Suze: So any money that you put into the irrevocable or 299 00:18:55,300 --> 00:18:58,000 Suze: revocable trust, whatever it is to get it out, 300 00:18:58,089 --> 00:19:00,839 Suze: out of your estate. And for those of you who 301 00:19:00,849 --> 00:19:06,359 Suze: don't know, an irrevocable trust is a trust that's irrevocable. 302 00:19:06,369 --> 00:19:11,300 Suze: It means you cannot change anything about it. So therefore 303 00:19:11,319 --> 00:19:15,780 Suze: it is out of your estate, a revocable trust, you 304 00:19:15,790 --> 00:19:18,800 Suze: can change it any time you can do anything you 305 00:19:18,810 --> 00:19:23,199 Suze: want with it, but an irrevocable trust you cannot not. 306 00:19:23,680 --> 00:19:27,709 Suze: And I know there are a whole lot of articles 307 00:19:27,719 --> 00:19:31,250 Suze: and lawyers out there that say put your parents money 308 00:19:31,260 --> 00:19:35,219 Suze: in an irrevocable trust and then it won't be part 309 00:19:35,229 --> 00:19:38,329 Suze: of their estate. And therefore if they spend down all 310 00:19:38,339 --> 00:19:41,379 Suze: of their money, they can go on Medicaid and all 311 00:19:41,390 --> 00:19:43,489 Suze: of that other money will be safe 312 00:19:43,780 --> 00:19:46,599 Suze: again. As I started to say, there's usually a five 313 00:19:46,750 --> 00:19:50,310 Suze: year look back period. Any money that you put within 314 00:19:50,319 --> 00:19:56,209 Suze: five years in a trust will be disqualified if you 315 00:19:56,219 --> 00:19:58,859 Suze: then need to qualify for Medicaid because they know that 316 00:19:58,869 --> 00:20:03,050 Suze: you did that to qualify for Medicaid. All right. So 317 00:20:03,430 --> 00:20:05,750 Suze: that's one thing to know. However, 318 00:20:06,510 --> 00:20:10,640 Suze: this is more an ethical question truthfully, 319 00:20:11,329 --> 00:20:15,099 Suze: which is, you know, I have a saying, people first 320 00:20:15,109 --> 00:20:15,859 Suze: then money 321 00:20:16,630 --> 00:20:20,619 Suze: and I know that it's a heartbreak to watch somebody's 322 00:20:20,630 --> 00:20:25,239 Suze: entire amount of money that they saved to be spent 323 00:20:25,250 --> 00:20:26,479 Suze: on their care. 324 00:20:27,209 --> 00:20:30,719 Suze: But I ask you all to think about it really, 325 00:20:30,729 --> 00:20:35,500 Suze: really seriously, think about it. What was that money for? 326 00:20:36,109 --> 00:20:40,400 Suze: It's for your parents or whosever money it is to 327 00:20:40,410 --> 00:20:43,609 Suze: be used to take care of them in the best 328 00:20:43,619 --> 00:20:48,839 Suze: facility in the best way possible with the best services, 329 00:20:49,420 --> 00:20:53,400 Suze: it's not just so that they can go on Medicaid. 330 00:20:53,410 --> 00:20:55,339 Suze: So the kids get all the money 331 00:20:56,359 --> 00:20:59,750 Suze: if you think care in a nursing home is as 332 00:20:59,760 --> 00:21:01,770 Suze: good on Medicaid 333 00:21:02,890 --> 00:21:06,310 Suze: versus when you are a private pay patient, 334 00:21:07,290 --> 00:21:10,300 Suze: I'm here to tell you it is not. 335 00:21:11,270 --> 00:21:15,500 Suze: So I would not be doing that just to protect 336 00:21:15,510 --> 00:21:19,520 Suze: money so that my kids could get it or therefore 337 00:21:19,530 --> 00:21:21,379 Suze: you Todd would get it. 338 00:21:22,020 --> 00:21:25,069 Suze: I wouldn't care if they spent every single penny that 339 00:21:25,079 --> 00:21:30,728 Suze: they had getting the best care possible because that's what 340 00:21:30,739 --> 00:21:33,709 Suze: their money is truly for 341 00:21:34,510 --> 00:21:39,319 Suze: bringing back memories to you. Both of us. Yeah. You know, 342 00:21:39,329 --> 00:21:43,439 Suze: both of us obviously. And we say that because I 343 00:21:43,449 --> 00:21:46,880 Suze: spent millions keeping my mother 344 00:21:47,420 --> 00:21:50,469 Suze: um, in a home with a private nurse and everything. 345 00:21:50,479 --> 00:21:56,169 Suze: KT bought her mother the actual apartment in a life 346 00:21:56,180 --> 00:21:59,630 Suze: care facility that also was a private room when she 347 00:21:59,640 --> 00:22:03,679 Suze: needed to go to skilled nursing. And still above all 348 00:22:03,689 --> 00:22:09,359 Suze: that paid $6000 a month for a nurse, a private 349 00:22:09,369 --> 00:22:13,250 Suze: nurse to be there. Besides all the other expenses. 350 00:22:13,760 --> 00:22:17,188 Suze: And the greatest thing we can say about it is 351 00:22:17,199 --> 00:22:21,920 Suze: they sure were taken care of. Oh, now KT is crying. 352 00:22:22,609 --> 00:22:24,699 Suze: All right. You feel better? 353 00:22:24,709 --> 00:22:27,260 KT: Now, I get a little emotional. Maybe that's because I'm 354 00:22:27,270 --> 00:22:28,339 KT: getting old. 355 00:22:29,349 --> 00:22:35,379 KT: Ok. From Marion. Hi, Suze. I pay a credit monitoring 356 00:22:35,390 --> 00:22:40,530 KT: fee monthly. Is this really necessary? I know credit Karma 357 00:22:40,540 --> 00:22:44,750 KT: and Credit Sesame is free. Are those worth it? Thank 358 00:22:44,760 --> 00:22:48,359 KT: you for sharing your knowledge. I've been following you for years. 359 00:22:48,369 --> 00:22:50,660 KT: If she's been following you for years, she didn't need 360 00:22:50,670 --> 00:22:51,560 KT: to ask this question. 361 00:22:51,655 --> 00:22:56,405 KT: Oh, should this have been your quizzie? But here's what 362 00:22:56,415 --> 00:22:59,364 KT: I would pay a fee, Marion. Listen to me. No, 363 00:22:59,375 --> 00:23:02,344 KT: she's saying I know Credit Karma and Credit Sesame is, 364 00:23:02,354 --> 00:23:05,734 KT: is free. Are those worth it? Here's what I would 365 00:23:05,744 --> 00:23:08,574 KT: tell you obviously. Anything that's free. All right. I don't 366 00:23:08,584 --> 00:23:11,274 KT: have a problem with, but if you really, really, really 367 00:23:11,285 --> 00:23:14,045 KT: want to protect your credit, 368 00:23:14,430 --> 00:23:20,420 Suze: really just do credit freezes on all three credit bureaus 369 00:23:20,430 --> 00:23:24,708 Suze: and then pretty much your credit is protected. So if 370 00:23:24,719 --> 00:23:27,119 Suze: I were you, that's what I would do and then 371 00:23:27,130 --> 00:23:30,060 Suze: you can just easily check it yourself and not have 372 00:23:30,069 --> 00:23:33,280 Suze: to pay for it. So I would not be paying 373 00:23:33,290 --> 00:23:36,989 Suze: a fee to have credit monitoring that I can tell you. Ok. 374 00:23:37,000 --> 00:23:38,900 KT: Next question from Michael, 375 00:23:39,109 --> 00:23:42,229 KT: I'm a new listener. And my question is, would it 376 00:23:42,239 --> 00:23:46,819 KT: be ok to take a traditional IRA out and invest 377 00:23:46,829 --> 00:23:51,479 KT: the money in real estate, like maybe a multifamily duplex. 378 00:23:51,530 --> 00:23:52,260 Suze: Now, 379 00:23:53,750 --> 00:23:57,300 Suze: if you go Michelangelo, that's a no. And the reason 380 00:23:57,310 --> 00:24:00,489 Suze: it's a no is, I don't know how old you are. 381 00:24:00,500 --> 00:24:04,579 Suze: All right. But here's the thing, you take money out 382 00:24:04,589 --> 00:24:07,520 Suze: of a traditional IRA. Not only are you gonna pay 383 00:24:07,530 --> 00:24:10,939 Suze: ordinary income taxes on it? But if you're not 59.5 384 00:24:10,949 --> 00:24:13,709 Suze: years of age or older, you're gonna pay a 10% 385 00:24:13,719 --> 00:24:17,439 Suze: penalty as well. Just keep your IRA. 386 00:24:17,930 --> 00:24:21,300 Suze: And if you want, you can start converting that traditional 387 00:24:21,310 --> 00:24:24,540 Suze: IRA to a Roth. All right, because you should have 388 00:24:24,550 --> 00:24:29,679 Suze: Roth IRAs Roth 401ks Roth 403bs, Roth TSP is a Roth. 389 00:24:29,689 --> 00:24:32,379 Suze: Do you hear me? Everybody? You want to invest money, 390 00:24:32,390 --> 00:24:36,629 Suze: invest money in real estate, like maybe a multifamily duplex. 391 00:24:37,099 --> 00:24:39,780 Suze: You should not have to take money out of a 392 00:24:39,790 --> 00:24:43,930 Suze: retirement account to do so. You should have the money 393 00:24:43,939 --> 00:24:46,839 Suze: on the side to do so. So. No. All right. 394 00:24:47,030 --> 00:24:51,250 KT: This next question is a tongue twister from Kelly. Are 395 00:24:51,260 --> 00:24:54,780 KT: you ready for this one? I am incrementally moving money 396 00:24:54,790 --> 00:24:55,410 KT: from my 397 00:24:55,829 --> 00:25:01,790 KT: rollover IRA that was previously in my pretax 401k to 398 00:25:01,800 --> 00:25:05,159 KT: my Roth Ira. Is it better to move a position 399 00:25:05,170 --> 00:25:08,199 KT: as is convert a position to cash them, move it, 400 00:25:08,209 --> 00:25:11,959 KT: move or cash in the lowest performer or does any 401 00:25:11,969 --> 00:25:14,540 KT: of that matter since it would be the same dollar amount? 402 00:25:14,550 --> 00:25:17,530 KT: Either way, any advice on the most strategic way to 403 00:25:17,540 --> 00:25:21,400 KT: move value from 401k to roll over to Roth IRA 404 00:25:21,410 --> 00:25:23,219 KT: would be greatly appreciated. 405 00:25:25,449 --> 00:25:29,040 KT: Kelly. I don't mean to laugh but this question, honest 406 00:25:29,050 --> 00:25:30,800 KT: to God, when I read it, I read it like 407 00:25:30,810 --> 00:25:33,640 KT: 20 times and I said, I'm gonna read this to 408 00:25:33,650 --> 00:25:36,219 KT: Suze really fast and see if she can catch it. 409 00:25:36,229 --> 00:25:38,359 KT: All right, I'm not gonna give you this, this in 410 00:25:38,369 --> 00:25:39,729 KT: front of me. Can you answer that? 411 00:25:39,859 --> 00:25:42,709 Suze: Yes, I can answer it. So, Kelly, it depends what 412 00:25:42,719 --> 00:25:46,849 Suze: investments you're in and if you want those investments still, 413 00:25:46,859 --> 00:25:49,030 Suze: so to break it down for all of you, what 414 00:25:49,040 --> 00:25:49,319 Suze: Kelly 415 00:25:49,420 --> 00:25:53,599 Suze: asking is she has money in a 401k that she 416 00:25:53,609 --> 00:25:57,569 Suze: wants to convert over to a Roth Ira. Should she 417 00:25:57,579 --> 00:26:01,500 Suze: convert it in the investments that she already has? Should 418 00:26:01,510 --> 00:26:05,270 Suze: she cash them out? What should she do? What's the 419 00:26:05,280 --> 00:26:10,000 Suze: most effective way to convert something if you are invested 420 00:26:10,010 --> 00:26:13,329 Suze: in things that you want to be invested in 421 00:26:13,780 --> 00:26:19,349 Suze: and those things happen to be down in value. Those 422 00:26:19,359 --> 00:26:24,229 Suze: are the things that you should absolutely convert first because 423 00:26:24,239 --> 00:26:28,589 Suze: the less value they have, the less taxes that you pay. 424 00:26:28,660 --> 00:26:35,209 Suze: Um the conversion. If you have items that are really 425 00:26:35,219 --> 00:26:38,040 Suze: doing great stocks or whatever it may be that are 426 00:26:38,050 --> 00:26:41,750 Suze: doing great. And you want to keep them as well. 427 00:26:42,270 --> 00:26:44,680 Suze: You might want to just wait a little and see 428 00:26:44,689 --> 00:26:48,160 Suze: if the market takes them down, what's going to happen 429 00:26:48,170 --> 00:26:51,260 Suze: to them because I would not convert them when they 430 00:26:51,270 --> 00:26:55,250 Suze: were really high. I would convert them if they had 431 00:26:55,260 --> 00:26:59,079 Suze: a downward trend and everything has a down 432 00:26:59,145 --> 00:27:04,175 Suze: word trend sooner than later. So I wouldn't convert everything 433 00:27:04,185 --> 00:27:08,645 Suze: all at once. I would convert those investments that I 434 00:27:08,655 --> 00:27:12,014 Suze: have the biggest losses in. And hey, if you don't 435 00:27:12,025 --> 00:27:14,935 Suze: want to keep those investments anymore, sell them and just 436 00:27:14,944 --> 00:27:16,103 Suze: convert the cash, 437 00:27:16,609 --> 00:27:21,469 Suze: but you should do a combination of it all. KT 438 00:27:21,479 --> 00:27:23,280 Suze: got a few more because it's almost quizzie time. 439 00:27:23,449 --> 00:27:25,819 KT: I have, I have, I have a few more, but 440 00:27:25,829 --> 00:27:27,979 KT: I'm just gonna do this one from Terry and this 441 00:27:27,989 --> 00:27:35,349 KT: will make you feel good because Terry's 76 ready. Does 442 00:27:35,359 --> 00:27:39,040 KT: it make any sense at all to take RMD required 443 00:27:39,050 --> 00:27:44,569 KT: minimum distributions and redeposit it into a non ira same 444 00:27:44,579 --> 00:27:45,680 KT: fund account? 445 00:27:45,900 --> 00:27:49,629 KT: I feel it is balancing out the withdrawal and purchase 446 00:27:49,640 --> 00:27:54,449 KT: at the same price, thereby offsetting the drawdown of shares 447 00:27:54,459 --> 00:27:58,079 KT: and their lower price. My funds are down so badly 448 00:27:58,089 --> 00:28:00,909 KT: that I hate seeing them be sold off for such 449 00:28:00,920 --> 00:28:04,219 KT: a lower price in order to do the RMD, I'm 450 00:28:04,229 --> 00:28:10,050 KT: 76 in the vanguard Target retirement fund 2020. 451 00:28:10,119 --> 00:28:11,688 KT: What should Terry do? 452 00:28:11,699 --> 00:28:14,640 Suze: So, Terry, your first thing has to be, is that 453 00:28:14,650 --> 00:28:18,339 Suze: where you want to be invested. Would you be better 454 00:28:18,349 --> 00:28:23,160 Suze: off rather than being invested in that, being invested within 455 00:28:23,170 --> 00:28:27,770 Suze: your retirement account in either treasuries or certificates of deposits 456 00:28:27,780 --> 00:28:34,250 Suze: or other things than the Vanguard Target retirement fund 2020. 457 00:28:34,670 --> 00:28:38,900 Suze: Because truthfully it really shouldn't have been down as much 458 00:28:38,910 --> 00:28:43,849 Suze: as it is. If, however, for whatever reason you have decided, 459 00:28:43,859 --> 00:28:47,920 Suze: If you want to stay in the Vanguard Target retirement fund 2020. 460 00:28:48,650 --> 00:28:51,390 Suze: For those of you who don't know what a Vanguard 461 00:28:51,400 --> 00:28:56,660 Suze: Target Retirement fund 2020 is, that was the year that 462 00:28:56,670 --> 00:29:01,900 Suze: Terry decided 2020 that Terry was going to retire. So 463 00:29:01,910 --> 00:29:08,520 Suze: supposedly retirement funds, target date, retirement funds change the investments. 464 00:29:08,530 --> 00:29:11,839 Suze: So that by the time you retire, they're conservative, the 465 00:29:11,849 --> 00:29:13,979 Suze: money is there and you don't have to worry. 466 00:29:14,199 --> 00:29:16,689 Suze: Well, obviously that didn't work out so good for you. 467 00:29:18,099 --> 00:29:20,270 Suze: I just say it that way and I don't mean 468 00:29:20,280 --> 00:29:23,849 Suze: to be sarcastic to you by any means, Terry, that 469 00:29:23,859 --> 00:29:25,680 Suze: I have told all of you. I am not a 470 00:29:25,689 --> 00:29:29,869 Suze: fan of target date funds. This is one of the 471 00:29:29,880 --> 00:29:34,349 Suze: reasons why you don't invest according to age, you invest 472 00:29:34,359 --> 00:29:38,410 Suze: according to what's happening in the economy at the time, 473 00:29:38,420 --> 00:29:41,130 Suze: it's happening. So 474 00:29:41,530 --> 00:29:44,670 Suze: if you want to remain in the target date fund 475 00:29:44,989 --> 00:29:48,579 Suze: with your RMD, take it out and repurchase it, I 476 00:29:48,589 --> 00:29:51,349 Suze: don't know, I think there's a whole lot better things 477 00:29:51,359 --> 00:29:54,359 Suze: than you could be doing with your money than repurchasing 478 00:29:54,369 --> 00:29:59,359 Suze: what you already have. So, bottom line, if it were me, 479 00:29:59,369 --> 00:30:02,050 Suze: I most certainly would not be doing that. 480 00:30:02,670 --> 00:30:04,640 KT: Suze, You got anything else for me? 481 00:30:04,900 --> 00:30:09,030 Suze: I have such a simple quizzie for you. 482 00:30:09,040 --> 00:30:11,150 KT: Is it like a yes or no answer? 483 00:30:11,160 --> 00:30:12,109 Suze: I... kinda, 484 00:30:12,500 --> 00:30:13,530 KT: Is it gonna be a two parter? 485 00:30:13,800 --> 00:30:14,729 Suze: It's a two parter. 486 00:30:14,760 --> 00:30:17,189 KT: Oh, I hate those. All right. 487 00:30:17,400 --> 00:30:21,800 Suze: Ok. Not like your personality to say hate. 488 00:30:21,839 --> 00:30:24,780 KT: I don't like a two parters. I like a yes 489 00:30:24,790 --> 00:30:25,479 KT: or no. 490 00:30:25,500 --> 00:30:28,520 Suze: All of you. When I say thumbs up, I say 491 00:30:28,530 --> 00:30:31,209 Suze: when I say something that isn't quite polite, she goes, 492 00:30:31,579 --> 00:30:32,969 Suze: that's not polite. Don't say that. 493 00:30:33,329 --> 00:30:37,099 KT: Take it back. I say that's not nice all the time. 494 00:30:37,930 --> 00:30:41,739 KT: And my sister, they all say cancel, cancel, cancel, cancel, 495 00:30:42,030 --> 00:30:47,479 KT: cancel and says that whatever, but the word hate isn't nice. Cancel, cancel. 496 00:30:48,430 --> 00:30:52,310 KT: All right. What's my quizzie? Hey, tell everybody what a 497 00:30:52,319 --> 00:30:53,300 KT: quizzie is. 498 00:30:56,219 --> 00:30:59,660 Suze: Oh, yeah, it happens when you get old. A quizzie is when 499 00:30:59,670 --> 00:31:03,630 Suze: I ask KT on behalf of all of you a 500 00:31:03,640 --> 00:31:08,280 Suze: question that at this point in time I should know 501 00:31:08,290 --> 00:31:11,119 Suze: the answer. You should know the answer. And so should 502 00:31:11,130 --> 00:31:13,760 Suze: all of you if in fact, you've been listening to 503 00:31:13,770 --> 00:31:18,349 Suze: the Women and Money podcast for all these years now? 504 00:31:18,430 --> 00:31:22,469 Suze: So think about it all of you when I ask 505 00:31:23,030 --> 00:31:27,390 Suze: and let's see if you can all get it. Right. Hi, 506 00:31:27,400 --> 00:31:28,880 Suze: Suze and KT, 507 00:31:29,719 --> 00:31:33,989 Suze: I am currently contributing to my rollover IRA with after 508 00:31:34,000 --> 00:31:40,469 Suze: tax dollars. Will I be taxed again when I take distributions? 509 00:31:40,479 --> 00:31:44,000 Suze: Thank you so much. So, it's KT, it's not a 510 00:31:44,010 --> 00:31:50,770 Suze: Roth IRA. It's an IRA roll over. She has a 511 00:31:50,780 --> 00:31:56,020 Suze: 401k most likely at some place that she's working. She's 512 00:31:56,030 --> 00:31:57,829 Suze: never paid taxes on it. 513 00:31:58,189 --> 00:32:03,839 Suze: Ok. And now she's doing it into a rollover IRA. 514 00:32:03,859 --> 00:32:11,339 Suze: But within her 401k she contributed with, after tax dollars 515 00:32:11,349 --> 00:32:16,439 Suze: different than a Roth in many 401k s you are 516 00:32:16,449 --> 00:32:21,650 Suze: allowed to put money into the 401k with money that 517 00:32:21,660 --> 00:32:24,540 Suze: you've already paid taxes on. 518 00:32:25,449 --> 00:32:29,380 Suze: But the growth of that money is taxable. When you 519 00:32:29,390 --> 00:32:33,319 Suze: go to take it out with a Roth IRA, you 520 00:32:33,329 --> 00:32:36,599 Suze: fund it with money, you've paid taxes on, but the 521 00:32:36,609 --> 00:32:38,900 Suze: growth of that money is tax free. 522 00:32:39,839 --> 00:32:45,530 Suze: So the question I repeat, will I be taxed again 523 00:32:45,630 --> 00:32:48,689 Suze: when I take distributions? 524 00:32:49,670 --> 00:32:50,329 KT: No. 525 00:32:51,050 --> 00:32:52,900 Suze: It's all going to be tax free? 526 00:32:54,589 --> 00:32:58,630 KT: No, it's a two part question. So she only pays 527 00:32:58,640 --> 00:33:02,040 KT: taxes on the interest earned. 528 00:33:02,310 --> 00:33:05,520 Suze: Or the growth of it. That's your final answer? 529 00:33:06,170 --> 00:33:06,439 KT: Yes. 530 00:33:14,829 --> 00:33:20,640 Suze: Ding, ding, ding, ding, ding, ding, ding, ding, ding, ding. That's good. You did. I'm so proud of you. But 531 00:33:20,829 --> 00:33:25,089 Suze: here's the point of what's important about this one. KT 532 00:33:25,099 --> 00:33:29,609 Suze: heard it and she immediately heard Roth IRA because she 533 00:33:29,619 --> 00:33:34,920 Suze: heard the words after tax. I know her. So she thought, oh, 534 00:33:34,930 --> 00:33:37,020 Suze: of course, it's all gonna be tax free. 535 00:33:37,630 --> 00:33:39,619 Suze: And I knew that because she said, is this a 536 00:33:39,630 --> 00:33:42,530 Suze: one part or two part answer. When you said that, 537 00:33:42,540 --> 00:33:44,939 Suze: then you explain the two part, then I knew. So 538 00:33:44,949 --> 00:33:50,079 Suze: that's why it's important to always listen and ask questions. 539 00:33:50,199 --> 00:33:55,979 KT: There's never a question that's wrong or stupid or, or what. 540 00:33:56,349 --> 00:33:59,599 Suze: So, and if you want to ask a what question 541 00:33:59,650 --> 00:34:02,180 Suze: or whatever, all you have to do is send 542 00:34:02,244 --> 00:34:08,735 Suze: in your question to ask Suze Suze podcast at gmail 543 00:34:08,745 --> 00:34:12,745 Suze: dot com. And if KT chooses it, we'll answer it 544 00:34:12,754 --> 00:34:16,614 Suze: on this podcast. You should always listen to the podcast 545 00:34:16,625 --> 00:34:20,455 Suze: because you never know when we're going to answer your question. 546 00:34:20,465 --> 00:34:23,694 Suze: It's not like you get an email saying we're answering 547 00:34:23,705 --> 00:34:26,794 Suze: the question. So you always have to listen 548 00:34:27,070 --> 00:34:29,139 Suze: because maybe we've answered it. And wouldn't that be a 549 00:34:29,149 --> 00:34:32,649 Suze: shame if you missed it? All right, everybody, KT take 550 00:34:32,659 --> 00:34:33,159 Suze: us out... 551 00:34:33,169 --> 00:34:36,330 KT: First, I want to wish everyone a great weekend coming up. Now, 552 00:34:36,340 --> 00:34:39,739 KT: we still have Sunday school and we still have July 553 00:34:39,750 --> 00:34:43,330 KT: 4th early next week. But it's going to be a 554 00:34:43,340 --> 00:34:46,080 KT: fire cracker of a weekend. I just know it. Yeah. 555 00:34:46,090 --> 00:34:49,739 Suze: That's because her family's come, me and whenever her family comes, 556 00:34:49,750 --> 00:34:51,779 Suze: it is a serious fire 557 00:34:51,895 --> 00:34:56,425 Suze: cracker. KT, what are you gonna do today today? 558 00:34:56,435 --> 00:35:01,145 KT: Wherever I go, I will create a more peaceful, joyful 559 00:35:01,155 --> 00:35:02,824 KT: and loving world. 560 00:35:02,834 --> 00:35:07,014 Suze: And if everybody does that, if everybody says that if 561 00:35:07,024 --> 00:35:12,935 Suze: everybody thinks that I promise you, KT promises you, you 562 00:35:12,945 --> 00:35:16,544 Suze: will be unstoppable. 563 00:35:22,370 --> 00:35:22,669 Music: Music (out)