1 00:00:30,580 --> 00:00:34,690 Suze: September 8th 2022 2 00:00:35,229 --> 00:00:38,860 KT: Suze, where's the time gone? This is KT. 3 00:00:39,310 --> 00:00:43,190 Suze: KT. They know it's you, Who else would it be? 4 00:00:43,200 --> 00:00:46,200 KT: Wait, this is KT and Suze on the Women and 5 00:00:46,200 --> 00:00:50,489 KT: Money podcast. Ask Suze Anything and KT will read it 6 00:00:50,500 --> 00:00:54,810 KT: and ask her anything on your behalf. But today, today 7 00:00:54,810 --> 00:00:57,400 KT: everyone is our anniversary 8 00:00:57,770 --> 00:00:58,740 Suze: It is our wedding. We've 9 00:00:58,750 --> 00:01:01,030 KT: been married forever. Right, Suze? 10 00:01:01,040 --> 00:01:03,460 Suze: So wait, I just have to tell everybody this. Alright? 11 00:01:03,460 --> 00:01:06,959 Suze: So we sit down to do this and I say, 12 00:01:06,959 --> 00:01:07,780 Suze: you know what 13 00:01:07,920 --> 00:01:10,459 Suze: today is, You know what we should say to everybody. 14 00:01:10,470 --> 00:01:13,660 Suze: And you know what KT says to me says, yeah, 15 00:01:13,670 --> 00:01:17,480 Suze: we should tell everybody that tomorrow is the birthday of 16 00:01:17,480 --> 00:01:20,209 Suze: our nieces, Katie and Lauren. 17 00:01:20,220 --> 00:01:22,620 KT: And Suze stared at me and said and? 18 00:01:23,910 --> 00:01:24,990 Suze: and she just looked at me like what else is there? 19 00:01:24,990 --> 00:01:27,720 KT: I said, oh yeah, and let's talk about the interest 20 00:01:27,720 --> 00:01:30,590 KT: raise and Alliant . And she said and... 21 00:01:30,770 --> 00:01:34,680 KT: and I said, oh yeah, we're gonna tell everyone about 22 00:01:34,680 --> 00:01:38,120 KT: Freevee which I'm going to save for Suze. She said, KT, 23 00:01:38,130 --> 00:01:39,590 KT: and what else? 24 00:01:40,530 --> 00:01:43,450 KT: And I looked at her and I said, she said 25 00:01:43,459 --> 00:01:44,800 KT: it's our anniversary. 26 00:01:44,810 --> 00:01:46,459 Suze: So for all, 27 00:01:46,459 --> 00:01:47,339 KT: she got 28 00:01:47,920 --> 00:01:51,240 Suze: all of you who think we are this most loving, 29 00:01:51,250 --> 00:01:53,880 Suze: adorable couple. 30 00:01:56,850 --> 00:01:57,630 KT: We are. 31 00:01:57,640 --> 00:02:04,160 Suze: If your spouse happens to forget your anniversary, just remember 32 00:02:04,160 --> 00:02:06,500 Suze: it's okay. That doesn't mean they don't love you. 33 00:02:06,510 --> 00:02:07,390 KT: So what 34 00:02:07,400 --> 00:02:10,880 KT: people don't know is we got married in South Africa, 35 00:02:10,889 --> 00:02:13,520 Suze: I think many people know that KT, don't you? 36 00:02:13,530 --> 00:02:15,880 KT: Yeah. And it was great. This was before it was 37 00:02:15,880 --> 00:02:20,079 KT: legal in the US. It was great. Jillian Michaels was there 38 00:02:20,080 --> 00:02:20,670 Suze: Yes she was. 39 00:02:21,330 --> 00:02:23,140 KT: It was what Football? 40 00:02:23,139 --> 00:02:23,649 Suze: The World Cup. 41 00:02:23,660 --> 00:02:25,010 Suze: Yeah, the World Cup. 42 00:02:25,020 --> 00:02:26,869 Suze: They al had those long horns (makes a horn sound) . 43 00:02:27,790 --> 00:02:30,740 KT: Yeah, it was a big time in South Africa. We had 44 00:02:30,750 --> 00:02:32,480 KT: a blast. 45 00:02:32,490 --> 00:02:32,870 KT: We had 46 00:02:32,870 --> 00:02:33,890 KT: so much fun. 47 00:02:34,380 --> 00:02:35,790 Suze: KT, we always have fun. 48 00:02:35,800 --> 00:02:40,310 KT: That wedding anniversary was really fun. We had a big barbecue... 49 00:02:41,070 --> 00:02:42,900 Suze: That wasn't a wedding anniversary, 50 00:02:42,960 --> 00:02:44,250 KT: Wedding day, Wedding day. 51 00:02:45,150 --> 00:02:48,400 Suze: She thinks our wedding anniversary was then, but doesn't remember 52 00:02:48,400 --> 00:02:52,570 Suze: it today. I'm going to let her forget this. Oh, 53 00:02:52,570 --> 00:02:54,040 Suze: you are so wrong. 54 00:02:54,900 --> 00:02:55,090 KT: Wild animals everywhere... 55 00:02:55,090 --> 00:02:58,470 Suze: A few things I want to tell everybody. However, number one 56 00:02:58,770 --> 00:03:03,200 Suze: I'm so glad that you loved last Sunday's podcast with Dr. 57 00:03:03,200 --> 00:03:07,230 Suze: Mary Gardner. You are sending in so many emails you 58 00:03:07,230 --> 00:03:09,880 Suze: are sending in all kinds of things that we should 59 00:03:09,880 --> 00:03:12,919 Suze: know about animals and pain for them. I might just 60 00:03:12,919 --> 00:03:16,090 Suze: have to do another podcast on that. But I love that. 61 00:03:16,100 --> 00:03:21,650 Suze: You loved that. I also want to thank everybody. Especially Bob. 62 00:03:22,000 --> 00:03:28,590 Suze: Bob who wrote in because last Thursday's podcast, before last 63 00:03:28,590 --> 00:03:33,510 Suze: Sunday's at the end, I was thanking KT, because it's 64 00:03:33,510 --> 00:03:36,980 Suze: so true, KT! Oh my God, how many times have 65 00:03:36,980 --> 00:03:39,420 Suze: you had to and still have to take care of 66 00:03:39,430 --> 00:03:39,840 Suze: me 67 00:03:40,150 --> 00:03:44,930 Suze: And Bob is a man who wrote in and said 68 00:03:44,940 --> 00:03:49,370 Suze: he so can relate to this because for years now 69 00:03:49,380 --> 00:03:52,350 Suze: his husband has had to take care of him and 70 00:03:52,350 --> 00:03:56,020 Suze: he knows exactly how I feel. And KT actually wrote 71 00:03:56,030 --> 00:04:00,100 Suze: back to him because it was important that he heard 72 00:04:00,100 --> 00:04:01,570 Suze: it from the 73 00:04:01,580 --> 00:04:04,940 KT: the caregiver on the other side but but you know 74 00:04:04,940 --> 00:04:07,570 KT: what Suze, a lot of people listening 75 00:04:08,050 --> 00:04:12,900 KT: are in relationships or had relationships or you know miss 76 00:04:12,900 --> 00:04:16,450 KT: their spouses but it's part of love that's all there 77 00:04:16,450 --> 00:04:18,359 KT: is to it. It's not a big deal to take 78 00:04:18,360 --> 00:04:19,520 KT: care of each other. 79 00:04:19,839 --> 00:04:22,300 Suze: It isn't. I want to thank you for that 80 00:04:22,580 --> 00:04:25,080 Suze: and now I want to thank Alliant 81 00:04:25,089 --> 00:04:25,989 Suze: because 82 00:04:25,990 --> 00:04:30,500 Suze: guess what your interest is up to 1.7%. 83 00:04:30,510 --> 00:04:33,920 KT: I'm making really good money, good. 84 00:04:33,930 --> 00:04:36,440 Suze: So all of you should do good and check into 85 00:04:36,440 --> 00:04:39,979 Suze: my alliant dot com slash good and learn about that. 86 00:04:39,990 --> 00:04:41,729 Suze: But we have a real... 87 00:04:41,730 --> 00:04:42,220 KT: The biggest, 88 00:04:42,890 --> 00:04:47,779 Suze: biggest news of all and I'll let you KT 89 00:04:48,330 --> 00:04:50,859 KT: First of all, we couldn't be happier if we tried. 90 00:04:50,860 --> 00:04:53,570 KT: This has been in the works for many months and 91 00:04:53,570 --> 00:04:57,150 KT: it finally was launched, September First. 92 00:04:57,430 --> 00:05:01,350 KT: And those of you that didn't get announcements or see notices, 93 00:05:01,980 --> 00:05:04,589 KT: The Suze Orman show is back 94 00:05:04,670 --> 00:05:05,790 Suze: back back 95 00:05:05,790 --> 00:05:10,620 KT: baby and it's on Freevee on Amazon for 96 00:05:10,630 --> 00:05:11,870 Suze: free. You 97 00:05:11,870 --> 00:05:17,440 KT: Can stream this. We've got 207 episodes that have been 98 00:05:17,440 --> 00:05:21,240 KT: launched now and we're going and this is climbing 99 00:05:21,490 --> 00:05:26,160 KT: And what's really great is that um Suze's show is 100 00:05:26,160 --> 00:05:31,810 KT: available probably all 600 episodes by the end of this 101 00:05:31,810 --> 00:05:34,930 KT: year in the United States, October will be in the 102 00:05:34,930 --> 00:05:39,170 KT: UK in January '23 we're going to be in Germany 103 00:05:39,170 --> 00:05:43,540 KT: and on and on and on this is a worldwide event. 104 00:05:43,550 --> 00:05:44,419 Suze: So yeah baby 105 00:05:45,060 --> 00:05:45,480 KT: When 106 00:05:45,480 --> 00:05:48,099 KT: I say the Suze Orman show is back. 107 00:05:48,279 --> 00:05:52,190 Suze: The Suze Orman show that I did on CNBC for 108 00:05:52,190 --> 00:05:53,060 Suze: all those 109 00:05:53,060 --> 00:05:54,359 Suze: years that 110 00:05:54,370 --> 00:05:56,849 Suze: all of you watched and you write me and you 111 00:05:56,850 --> 00:05:59,609 Suze: say you only wished your kids could see it Well 112 00:05:59,610 --> 00:06:03,330 Suze: guess what now they can't and all of you can 113 00:06:03,330 --> 00:06:08,560 Suze: watch them again again on Freevee . So 114 00:06:08,730 --> 00:06:10,780 Suze: I'm so proud of that. I can't even tell you. 115 00:06:10,779 --> 00:06:14,560 KT: And more come on Freevee . We'll wait and save those 116 00:06:14,560 --> 00:06:19,000 KT: announcements a little bit down the road. But we're excited. 117 00:06:19,000 --> 00:06:21,740 KT: You're going to see much more of Suze in the 118 00:06:21,740 --> 00:06:23,340 KT: current as well. 119 00:06:23,360 --> 00:06:26,220 Suze: All right now I'm sure 120 00:06:26,529 --> 00:06:28,830 Suze: that you want us to get to Ask Suze and KT Anything 121 00:06:29,200 --> 00:06:30,370 KT: I have so many questions. 122 00:06:31,150 --> 00:06:35,160 Suze: You always say that you always say you have great ones, 123 00:06:35,170 --> 00:06:40,030 Suze: you always remember all of that. But does she remember 124 00:06:40,040 --> 00:06:41,140 Suze: our anniversary? 125 00:06:41,150 --> 00:06:42,679 Suze: No. 126 00:06:42,690 --> 00:06:46,270 KT: Alright. Ready? The first one is from Cindy. 127 00:06:46,520 --> 00:06:49,660 KT: Hey Suze & KT, I'm in need of advice on 128 00:06:49,660 --> 00:06:57,100 KT: how to invest. $655,000 in a safe short term account. 129 00:06:57,580 --> 00:07:01,650 KT: This is for my 89 year old mother who recently 130 00:07:01,650 --> 00:07:06,040 KT: sold her home of 51 years. She's happily residing in 131 00:07:06,040 --> 00:07:11,000 KT: assisted living and funding her monthly expenses with her retirement 132 00:07:11,010 --> 00:07:11,780 KT: income 133 00:07:12,120 --> 00:07:16,650 KT: after paying capital gains tax on the home sale some 134 00:07:16,650 --> 00:07:21,230 KT: medical bills and setting aside a nest egg for unexpected needs. 135 00:07:21,240 --> 00:07:25,050 KT: I'll have about half a million dollars to invest. I 136 00:07:25,050 --> 00:07:28,900 KT: am the trustee of her revocable trust and feel an 137 00:07:28,900 --> 00:07:34,540 KT: enormous responsibility and legal obligation to make the right decisions 138 00:07:34,550 --> 00:07:38,270 KT: with Mom's money. So the question is Suze, 139 00:07:38,700 --> 00:07:42,660 KT: if she has only a year to liquidate after her 140 00:07:42,660 --> 00:07:44,920 KT: mom's death, what should she do with this one? 141 00:07:45,210 --> 00:07:47,850 Suze: I feel like we've answered this question a few times 142 00:07:47,910 --> 00:07:50,520 KT: Maybe. But it's her mom and it... 143 00:07:51,370 --> 00:07:54,340 Suze: I'm just wondering that that if we had and I don't 144 00:07:54,340 --> 00:07:57,470 Suze: mind answering questions the same questions over and over and 145 00:07:57,480 --> 00:08:01,000 Suze: over again because every single one of you is so important, 146 00:08:01,010 --> 00:08:03,970 Suze: you know to us and to yourself and your situation, 147 00:08:03,970 --> 00:08:05,510 Suze: especially your parent. 148 00:08:05,740 --> 00:08:09,410 Suze: But this obviously is a question that a lot of 149 00:08:09,410 --> 00:08:12,650 Suze: you now are coming up with because a lot of 150 00:08:12,650 --> 00:08:17,570 Suze: us are at that age where we are responsible for 151 00:08:17,580 --> 00:08:21,330 Suze: taking care of a parent or our parents and their money. 152 00:08:21,340 --> 00:08:23,820 Suze: I will say it once, I will say it twice. 153 00:08:23,820 --> 00:08:26,980 Suze: I will say it over and over again. Money that 154 00:08:26,980 --> 00:08:30,890 Suze: you need within five years is not money that you 155 00:08:30,900 --> 00:08:32,980 Suze: can invest in the stock market. 156 00:08:33,230 --> 00:08:37,040 Suze: And the good news for you is interest rates are 157 00:08:37,040 --> 00:08:40,300 Suze: continuing to go up and up and up. This isn't 158 00:08:40,300 --> 00:08:43,209 Suze: just a thing where a lion took their interest rates 159 00:08:43,210 --> 00:08:50,920 Suze: up from .60% a year ago 1.0 to 1.4 to 1.6 now to 1.7 160 00:08:50,960 --> 00:08:53,390 Suze: they will continue up. 161 00:08:53,600 --> 00:08:57,199 Suze: So it is very possible for you now to invest 162 00:08:57,210 --> 00:09:01,020 Suze: in certificates of deposit and get like 3% for a 163 00:09:01,020 --> 00:09:05,720 Suze: year and a half in Treasury bills or notes or 164 00:09:05,730 --> 00:09:09,390 Suze: things that are really short term. So what I would 165 00:09:09,390 --> 00:09:11,200 Suze: do if I were you 166 00:09:11,600 --> 00:09:16,250 Suze: I would figure out if you have $500,000. How much 167 00:09:16,260 --> 00:09:19,699 Suze: at most do you think you need to get at 168 00:09:19,710 --> 00:09:23,220 Suze: within a week, within two weeks, within a few months 169 00:09:23,300 --> 00:09:27,729 Suze: you leave that in a place like Alliant Credit Union 170 00:09:27,730 --> 00:09:32,000 Suze: where you can get 1.7% but continue to get higher 171 00:09:32,010 --> 00:09:36,520 Suze: interest rates as interest rates go up. If you can 172 00:09:36,520 --> 00:09:38,870 Suze: get a little bit higher interest rate 173 00:09:39,220 --> 00:09:41,370 Suze: and you know that you have like a year and 174 00:09:41,370 --> 00:09:44,290 Suze: a half until you need the money or some of 175 00:09:44,290 --> 00:09:48,170 Suze: this money. You could do like a three year certificate 176 00:09:48,170 --> 00:09:52,110 Suze: of deposit again with a lion or whoever you want. 177 00:09:52,120 --> 00:09:55,819 Suze: There are things like that that you can do and 178 00:09:55,820 --> 00:10:00,150 Suze: make a nice safe interest rate and return on your 179 00:10:00,150 --> 00:10:04,420 Suze: money again. And I'll go into this more on Sunday. 180 00:10:04,429 --> 00:10:06,369 Suze: I don't love this market 181 00:10:06,870 --> 00:10:09,750 Suze: so many of you over the past few months when 182 00:10:09,750 --> 00:10:12,130 Suze: I would say I will bet you any amount of 183 00:10:12,130 --> 00:10:14,040 Suze: money that this market will go up and then it 184 00:10:14,040 --> 00:10:16,500 Suze: will go right back down and you would write me 185 00:10:16,500 --> 00:10:18,440 Suze: and you would say no Suze it's gonna go up 186 00:10:18,440 --> 00:10:22,440 Suze: up up up. We'll talk about that on sunday 187 00:10:22,590 --> 00:10:26,040 Suze: but I'm not in love with the market. I'm not 188 00:10:26,050 --> 00:10:28,290 Suze: in love with what I think might happen next year 189 00:10:28,300 --> 00:10:32,589 Suze: in the market. So just keep this money safe and 190 00:10:32,650 --> 00:10:37,620 Suze: sound in the ways that I suggested KT. Next question 191 00:10:37,620 --> 00:10:41,970 KT: OK. From Elizabeth. Hi KT and Suze. I love listening 192 00:10:41,970 --> 00:10:45,780 KT: to your podcast and now I am streaming your show 193 00:10:46,110 --> 00:10:46,730 KT: on Freevee. 194 00:10:47,570 --> 00:10:49,990 KT: I 195 00:10:50,000 --> 00:10:52,580 KT: know you will never want one to take a loan 196 00:10:52,580 --> 00:10:56,230 KT: from their 401 K. But is it okay to take 197 00:10:56,230 --> 00:11:01,459 KT: money back from a Roth ira. However, would you recommend 198 00:11:01,460 --> 00:11:05,900 KT: I could take a loan from my Roth 401k. To 199 00:11:05,900 --> 00:11:08,980 KT: increase the down payment for a primary residence. 200 00:11:09,340 --> 00:11:12,780 KT: I would like to reduce my mortgage principal and monthly 201 00:11:12,780 --> 00:11:17,660 KT: payments as much as possible. I prefer this option versus 202 00:11:17,660 --> 00:11:24,620 KT: taking a distribution from my Roth ira because the Roth 401k. 203 00:11:24,630 --> 00:11:28,250 KT: Allows me to return this money plus interest to my 204 00:11:28,250 --> 00:11:32,960 KT: Roth 401 K. Account. What are your thoughts on this option, Suze. 205 00:11:33,280 --> 00:11:38,069 Suze: So my dear Elizabeth, you know from your Roth I. R. A. 206 00:11:38,559 --> 00:11:40,819 Suze: There is a rule that allows you to take up 207 00:11:40,820 --> 00:11:45,820 Suze: to $10,000. Just withdraw it up to earnings without taxes 208 00:11:45,830 --> 00:11:48,329 Suze: or penalties to buy a home. 209 00:11:48,840 --> 00:11:51,530 Suze: You're right, I don't want you to take money from 210 00:11:51,540 --> 00:11:54,059 Suze: a Roth IRA because there's no way to get it 211 00:11:54,059 --> 00:11:57,689 Suze: back in there while it's true if you took a 212 00:11:57,690 --> 00:12:01,280 Suze: loan from your Roth 401k, you do get to pay 213 00:12:01,280 --> 00:12:03,689 Suze: it back and a lot of times when it's for 214 00:12:03,690 --> 00:12:07,160 Suze: a down payment on a home, you actually have 15 215 00:12:07,170 --> 00:12:11,670 Suze: years to pay it back now. Normally 216 00:12:12,280 --> 00:12:16,060 Suze: I would say no, no, I don't want you to 217 00:12:16,059 --> 00:12:18,730 Suze: do either. I want you to save up enough money to, 218 00:12:18,730 --> 00:12:21,900 Suze: you could put 20% down and buy the house at 219 00:12:21,900 --> 00:12:26,929 Suze: that time. But given that I'm not loving the markets 220 00:12:26,940 --> 00:12:30,790 Suze: in the long run, maybe for the next year or two, 221 00:12:31,360 --> 00:12:35,170 Suze: I don't think if you took alone as the markets 222 00:12:35,170 --> 00:12:37,610 Suze: are going down. I don't think you're going to miss 223 00:12:37,610 --> 00:12:38,800 Suze: out on a lot 224 00:12:39,080 --> 00:12:42,720 Suze: and therefore as you pay the money back in monthly 225 00:12:42,720 --> 00:12:46,979 Suze: payments to the Roth 401k. You may be getting a 226 00:12:46,980 --> 00:12:50,590 Suze: better deal on the stocks that you are already having 227 00:12:50,590 --> 00:12:53,750 Suze: to liquidate to take the loan. So if you have 228 00:12:53,750 --> 00:12:56,240 Suze: to take a loan, I rather see you get the 229 00:12:56,240 --> 00:13:01,910 Suze: money from your Roth 401 K versus your Roth I. R. A. 230 00:13:01,920 --> 00:13:03,820 Suze: If you get in trouble 231 00:13:03,970 --> 00:13:06,620 Suze: And all of a sudden you lose your job, you 232 00:13:06,630 --> 00:13:09,130 Suze: something you quit and that money has to be paid 233 00:13:09,130 --> 00:13:11,429 Suze: back all at once. You can always go to the 234 00:13:11,429 --> 00:13:14,700 Suze: Roth Iva take it out from there and paid back 235 00:13:14,710 --> 00:13:19,860 Suze: the Roth 401K loan. All right, KT, I normally don't 236 00:13:19,870 --> 00:13:22,320 Suze: give that kind of advice, you know that right? 237 00:13:22,910 --> 00:13:25,990 Suze: She's laughing. She's laughing because she's so out of her 238 00:13:25,990 --> 00:13:28,990 Suze: body today. It's not even funny. There is no reason 239 00:13:28,990 --> 00:13:31,010 Suze: for you to be laughing right now. 240 00:13:31,740 --> 00:13:33,599 Suze: Why are you laughing? 241 00:13:36,590 --> 00:13:39,160 KT: Because I usually say to 242 00:13:41,750 --> 00:13:44,540 KT: I usually say that's really good advice and she gets 243 00:13:44,540 --> 00:13:45,100 KT: so many, 244 00:13:45,809 --> 00:13:49,360 KT: she says "KT, all of my advice is good advice. 245 00:13:49,370 --> 00:13:52,530 KT: Don't keep saying it's good advice." Of course. 246 00:13:52,540 --> 00:13:55,130 Suze: So instead I look at her and she doesn't know 247 00:13:55,130 --> 00:13:58,410 Suze: what to say now. Except what's the next question? 248 00:13:58,420 --> 00:14:02,020 KT: This actually here's a great question. I try to find 249 00:14:02,020 --> 00:14:04,910 KT: more of these because it's so current and there's been 250 00:14:04,910 --> 00:14:08,230 KT: so much confusion. This is from Monica. Suze. You gotta 251 00:14:08,230 --> 00:14:09,590 KT: set everyone straight. 252 00:14:10,010 --> 00:14:16,140 KT: I have federal student loans in the amount of $6500 253 00:14:16,150 --> 00:14:21,570 KT: which have been on pause and are now eligible for forgiveness. 254 00:14:21,860 --> 00:14:26,530 KT: But I also have a commercially held F. F. E. L. 255 00:14:26,660 --> 00:14:27,270 KT: Student 256 00:14:27,270 --> 00:14:28,530 KT: loans which 257 00:14:28,530 --> 00:14:30,500 KT: I don't know what that is in the amount of 258 00:14:30,500 --> 00:14:35,410 KT: 3000 which did not qualify for the payment pause so 259 00:14:35,410 --> 00:14:38,540 KT: I've been making monthly payments throughout the pandemic. 260 00:14:38,790 --> 00:14:42,340 KT: It seems uncertain whether this F F. E. L loan 261 00:14:42,340 --> 00:14:47,550 KT: qualifies for forgiveness. I read some online articles advising those 262 00:14:47,550 --> 00:14:50,530 KT: who have an F. F. E. L. Student loan 263 00:14:50,930 --> 00:14:56,360 KT: that they should consolidate them into a direct loan program 264 00:14:56,370 --> 00:15:02,200 KT: at student aid dot gov. Then they would qualify for forgiveness. Suze, 265 00:15:02,200 --> 00:15:03,760 KT: is this good advice? 266 00:15:03,760 --> 00:15:06,470 Suze: Yes, it is good advice. And not only is it 267 00:15:06,470 --> 00:15:10,110 Suze: good advice, but after you do that, then you would 268 00:15:10,110 --> 00:15:12,810 Suze: want to go back and see if you could get 269 00:15:12,810 --> 00:15:13,450 Suze: a refund 270 00:15:13,460 --> 00:15:16,670 Suze: for the amount of money that you paid that should 271 00:15:16,670 --> 00:15:20,580 Suze: have been on pause. They will do that. So go 272 00:15:20,580 --> 00:15:24,920 Suze: back and listen to a podcast that I did on 273 00:15:24,930 --> 00:15:28,070 Suze: the new student loan forgiveness thing maybe a week or 274 00:15:28,070 --> 00:15:31,910 Suze: two ago and you'll read about that. But yes, hopefully 275 00:15:31,910 --> 00:15:34,360 Suze: they will allow this to happen. 276 00:15:34,370 --> 00:15:36,110 KT: So next is from Lynn, 277 00:15:36,440 --> 00:15:40,730 KT: I'm struggling with the issue of downsizing. I'm a 60 278 00:15:40,730 --> 00:15:44,080 KT: year old widow of almost two years. I would love 279 00:15:44,080 --> 00:15:48,340 KT: to be free of the hassle of home lawn maintenance 280 00:15:48,350 --> 00:15:52,540 KT: by moving into a condo. The area where I would 281 00:15:52,540 --> 00:15:56,120 KT: prefer to move is highly desirable because it's of walking 282 00:15:56,120 --> 00:16:00,340 KT: distance to shopping, gym restaurants, so on and so forth. 283 00:16:00,340 --> 00:16:03,790 KT: But Suze. The condo would cost more than the price 284 00:16:03,790 --> 00:16:05,660 KT: I could get from my house. 285 00:16:05,890 --> 00:16:09,720 KT: So not a smart financial move, but one that would 286 00:16:09,720 --> 00:16:13,990 KT: give me security. I feel split on the decision. 287 00:16:14,140 --> 00:16:18,870 KT: I am completely debt free. I'm still working any advice? 288 00:16:18,880 --> 00:16:21,740 KT: She's 60. I I know what I would do. 289 00:16:21,750 --> 00:16:22,720 Suze: What would you do? 290 00:16:22,880 --> 00:16:25,260 KT: Definitely go to the condo 291 00:16:25,270 --> 00:16:26,140 Suze: Right now? 292 00:16:26,550 --> 00:16:30,310 KT: You know why? Because of one word, it gave me a great 293 00:16:30,310 --> 00:16:32,450 KT: sense of security. 294 00:16:32,450 --> 00:16:35,100 Suze: Here's the thing though Lynn that I want you to 295 00:16:35,100 --> 00:16:36,500 Suze: just keep in mind. 296 00:16:36,840 --> 00:16:41,200 Suze: I get that the condo according to your email is 297 00:16:41,200 --> 00:16:43,290 Suze: going to cost you more than the price you could 298 00:16:43,290 --> 00:16:45,360 Suze: get for your house. Alright. 299 00:16:45,910 --> 00:16:51,800 Suze: However, you also say that you are still working. So 300 00:16:51,800 --> 00:16:56,109 Suze: therefore even though you're debt free right now, your mortgage 301 00:16:56,110 --> 00:17:00,440 Suze: payment and even though I know interest rates are about 5.6% 302 00:17:00,450 --> 00:17:03,780 Suze: currently as we are doing this podcast 303 00:17:03,920 --> 00:17:07,460 Suze: and that's a high interest rate in most of your minds. 304 00:17:07,470 --> 00:17:11,440 Suze: Even though historically speaking it's not that high. Remember you 305 00:17:11,440 --> 00:17:17,310 Suze: will get a tax deduction for the interest on that payment. 306 00:17:17,320 --> 00:17:20,520 Suze: So it's not gonna be hopefully as expensive as you think. 307 00:17:20,530 --> 00:17:23,770 Suze: But the point I wanted to make is what you 308 00:17:23,770 --> 00:17:28,300 Suze: never take into consideration is that it isn't the price 309 00:17:28,300 --> 00:17:30,520 Suze: that you get for your home. 310 00:17:31,030 --> 00:17:34,920 Suze: It's also the price of the maintenance on your home 311 00:17:35,190 --> 00:17:38,920 Suze: when something breaks on your home, when something has to 312 00:17:38,920 --> 00:17:42,990 Suze: be replaced. All this stuff adds up and you don't 313 00:17:42,990 --> 00:17:46,199 Suze: even keep track of it all and you're probably paying 314 00:17:46,200 --> 00:17:49,149 Suze: more on a yearly basis then you're gonna pay for 315 00:17:49,150 --> 00:17:53,389 Suze: possibly the condo. So I would do it so fast. 316 00:17:53,400 --> 00:17:57,470 Suze: I would do it faster than a New York minute girlfriend. 317 00:17:57,480 --> 00:18:01,889 KT: Great, this next question isn't really a question but 318 00:18:02,480 --> 00:18:04,850 KT: it's something that's going to make you mad. 319 00:18:04,859 --> 00:18:06,330 KT: Hello 320 00:18:06,330 --> 00:18:10,460 KT: Miss Orman. My oldest son is 22 just graduated from 321 00:18:10,460 --> 00:18:18,490 KT: college with his BS in Kinesiology. His father... kinesiology, kinesiology 322 00:18:18,490 --> 00:18:21,989 KT: is the study of muscle testing. 323 00:18:23,640 --> 00:18:24,790 Suze: We still do that. 324 00:18:25,380 --> 00:18:29,910 KT: His father and I were veterans. So his tuition was paid. 325 00:18:29,910 --> 00:18:30,820 KT: Lucky boy. 326 00:18:31,000 --> 00:18:35,080 KT: He took out loans for personal expenses. Now he has 327 00:18:35,080 --> 00:18:39,340 KT: his first job making $25 an hour. One of his 328 00:18:39,340 --> 00:18:41,980 KT: clients in my opinion is a 329 00:18:41,980 --> 00:18:43,590 KT: predator. Ready, 330 00:18:43,590 --> 00:18:47,840 KT: Suze. You ready? And is trying to get my son 331 00:18:47,840 --> 00:18:50,830 KT: to buy whole life insurance. 332 00:18:51,000 --> 00:18:53,800 KT: I always remembered from your show that it's not a 333 00:18:53,800 --> 00:18:57,919 KT: good investment. He won't listen to me. It's his life. 334 00:18:57,930 --> 00:19:00,940 KT: But I think he's making a big mistake. Do you 335 00:19:00,940 --> 00:19:04,120 KT: have a website I can refer him to that will 336 00:19:04,119 --> 00:19:08,750 KT: explain this. I miss your show. Well guess what Miss Koopa? 337 00:19:09,060 --> 00:19:12,990 KT: Not for long. Go to Freevee. And you can be 338 00:19:13,000 --> 00:19:16,220 KT: a forever fan again and get your son to go 339 00:19:16,220 --> 00:19:18,899 KT: to free V. And watch the Suze Orman show. 340 00:19:19,040 --> 00:19:22,570 KT: But how can you convince her son not to get 341 00:19:22,580 --> 00:19:25,490 KT: a whole life and he's 22 years old, Suze. 342 00:19:25,500 --> 00:19:28,990 Suze: Yeah. I think you need to find one of the 343 00:19:28,990 --> 00:19:34,280 Suze: podcast that I talk about whole life insurance or absolutely 344 00:19:34,290 --> 00:19:37,750 Suze: one of the episodes of the Suze Orman show on Freevee, 345 00:19:39,280 --> 00:19:39,629 Suze: or 346 00:19:39,630 --> 00:19:40,520 KT: the books or 347 00:19:40,520 --> 00:19:44,830 Suze: whatever books. But maybe he could just listen to this 348 00:19:44,830 --> 00:19:46,750 Suze: podcast right here. 349 00:19:47,190 --> 00:19:51,070 Suze: He's in a little bit of a hard position because 350 00:19:51,080 --> 00:19:55,330 Suze: it's one of his clients and so he's gotta be 351 00:19:55,330 --> 00:19:59,760 Suze: respectful of his client because his client is selling whole 352 00:19:59,760 --> 00:20:04,180 Suze: life insurance. So he can't just say to his client, 353 00:20:04,190 --> 00:20:06,190 Suze: no I'm not going to do this. It's a waste 354 00:20:06,190 --> 00:20:08,580 Suze: of money. It's a rip off. It's this and that. 355 00:20:08,960 --> 00:20:11,780 Suze: I would simply try to explain to your son and 356 00:20:11,780 --> 00:20:15,200 Suze: have him listen to this podcast. The only reason one 357 00:20:15,200 --> 00:20:21,459 Suze: would buy insurance. If somebody is financially dependent upon you 358 00:20:21,490 --> 00:20:24,360 Suze: and if you happen to die, they would 359 00:20:24,380 --> 00:20:31,290 Suze: would be in a financially stressed position. Nobody is reliant 360 00:20:31,300 --> 00:20:35,210 Suze: upon you for money. You probably are reliant on a 361 00:20:35,210 --> 00:20:38,150 Suze: whole lot of people like maybe your parents for money 362 00:20:38,150 --> 00:20:39,790 Suze: at this point in time. 363 00:20:40,090 --> 00:20:43,610 Suze: So therefore it's such a waste of money. It's not 364 00:20:43,609 --> 00:20:46,650 Suze: even funny. You would be far better off taking that 365 00:20:46,650 --> 00:20:49,899 Suze: money and putting it into a Roth IRA. A dollar 366 00:20:49,900 --> 00:20:55,730 Suze: cost averaging, invest it. So just don't fall prey to 367 00:20:55,730 --> 00:20:59,740 Suze: this salesman who really wants to make a serious sum 368 00:20:59,740 --> 00:21:01,120 Suze: of money on you, 369 00:21:01,290 --> 00:21:05,940 Suze: but be respectful of your client and say, you know what, 370 00:21:05,950 --> 00:21:08,899 Suze: I don't have enough money to do that right now. 371 00:21:08,910 --> 00:21:11,810 Suze: And I would rather put it into a Roth Ira. 372 00:21:11,820 --> 00:21:14,810 Suze: But I'll let you know if I'm ever interested in 373 00:21:14,810 --> 00:21:18,000 Suze: doing so. So be respectful of this person 374 00:21:18,210 --> 00:21:21,900 Suze: because this person is your client now, KT. I didn't 375 00:21:21,900 --> 00:21:22,980 Suze: get mad at that. 376 00:21:22,990 --> 00:21:24,050 KT: Good Suze. 377 00:21:24,060 --> 00:21:25,050 Suze: Are you proud of me? 378 00:21:25,050 --> 00:21:29,270 KT: I'm proud of you. Next is from Eileen, Suze, Hi 379 00:21:29,270 --> 00:21:33,440 KT: Suze and KT. I am 58 I recently switched jobs 380 00:21:33,440 --> 00:21:37,530 KT: after 20 plus years. I have a 401 K worth 381 00:21:37,530 --> 00:21:43,590 KT: around $100,000 from my former employer. I recently opened a 382 00:21:43,600 --> 00:21:46,200 KT: Roth IRA listening to you 383 00:21:46,460 --> 00:21:50,760 KT: And I married my husband recently retired. Should I leave 384 00:21:50,770 --> 00:21:54,910 KT: my 401K. Where it is at the old job and 385 00:21:54,910 --> 00:21:57,490 KT: this is where someone is a little bit. Not sure 386 00:21:57,490 --> 00:21:59,490 KT: of how to do a rollover Suze. So I hope 387 00:21:59,490 --> 00:22:00,210 KT: you can help her. 388 00:22:00,210 --> 00:22:01,310 Suze: She working currently? 389 00:22:01,310 --> 00:22:02,300 KT: Yeah. Listen to this. 390 00:22:02,470 --> 00:22:03,320 Suze: Is she working? 391 00:22:03,320 --> 00:22:07,790 KT: Yes she just switched, she said she just switched jobs. 392 00:22:07,840 --> 00:22:09,490 KT: She switched her job 393 00:22:09,490 --> 00:22:11,550 Suze: So she's not retired but her husband is. 394 00:22:11,550 --> 00:22:14,170 KT: Yes but listen to this. I'm not sure if they're 395 00:22:14,170 --> 00:22:15,590 KT: charging a fee. 396 00:22:15,770 --> 00:22:19,820 KT: Should I transfer it to a vanguard Ira or take 397 00:22:19,830 --> 00:22:23,780 KT: a tax hit and move it to my Roth IRA. 398 00:22:24,230 --> 00:22:26,659 KT: We own a home. Have no dead good amount of 399 00:22:26,660 --> 00:22:29,580 KT: savings blah blah blah. So Eileen needs to know what 400 00:22:29,590 --> 00:22:30,940 KT: a rollover is. 401 00:22:30,940 --> 00:22:32,820 Suze: No that isn't what she needs to 402 00:22:32,820 --> 00:22:34,129 Suze: know because 403 00:22:34,130 --> 00:22:36,670 Suze: that's not what she needs to know. You know what's funny, 404 00:22:36,670 --> 00:22:39,520 Suze: KT is sometimes people think they need to know something 405 00:22:39,530 --> 00:22:41,450 Suze: and that's not what they need to know. They need 406 00:22:41,450 --> 00:22:43,400 Suze: to know what they need to know according to what 407 00:22:43,400 --> 00:22:44,340 Suze: I think they need to know. 408 00:22:44,960 --> 00:22:47,230 KT: What do you think Eileen needs? 409 00:22:48,109 --> 00:22:51,950 Suze: So given the fact that your husband has just retired 410 00:22:52,460 --> 00:22:58,219 Suze: right? And you have $100,000 in your 401k. At an 411 00:22:58,230 --> 00:23:04,500 Suze: old job and you're 58 years of age. I would 412 00:23:04,500 --> 00:23:10,290 Suze: start converting this money from my old 401 K. Either 413 00:23:10,290 --> 00:23:13,170 Suze: to an I. R. A. And then to a Roth 414 00:23:13,180 --> 00:23:17,840 Suze: IRA even if it was $10,000 20,000 dollars a year. 415 00:23:18,450 --> 00:23:21,710 Suze: Especially because you want to get, by the time you 416 00:23:21,710 --> 00:23:25,560 Suze: are on Medicare, you want to make sure that all 417 00:23:25,570 --> 00:23:29,770 Suze: the money that is in your taxable 401k. Is in 418 00:23:29,780 --> 00:23:34,400 Suze: a Roth ira. Because then when you go to make 419 00:23:34,400 --> 00:23:38,310 Suze: distributions from that Roth ira it's not going to count 420 00:23:38,310 --> 00:23:42,360 Suze: towards your Medicare premiums. So you will save money in 421 00:23:42,359 --> 00:23:43,889 Suze: the long run. 422 00:23:44,140 --> 00:23:47,800 Suze: So if I were you I would plan it to 423 00:23:47,810 --> 00:23:51,940 Suze: convert X amount of money every single year. So that 424 00:23:51,950 --> 00:23:55,770 Suze: at least by the time that I'm 65 all the 425 00:23:55,770 --> 00:24:00,750 Suze: money in my 401k. Is in a Roth IRA again 426 00:24:00,760 --> 00:24:03,470 Suze: you can do it by just leaving it where it is. 427 00:24:03,470 --> 00:24:05,740 Suze: You can ask if they charge for it or not, 428 00:24:05,910 --> 00:24:10,550 Suze: they'll tell you right or do an IRA rollover which 429 00:24:10,550 --> 00:24:13,080 Suze: is simply where you open up an account at a 430 00:24:13,080 --> 00:24:16,840 Suze: discount brokerage firm such as Schwab or Fidelity or you 431 00:24:16,840 --> 00:24:20,240 Suze: choose which ones you want. You open up an IRA 432 00:24:20,240 --> 00:24:24,740 Suze: with them. They contact your ex employer and your ex 433 00:24:24,740 --> 00:24:27,960 Suze: employer sends the money directly to them. 434 00:24:28,330 --> 00:24:33,270 Suze: No tax consequences at all for you know 20% withholding 435 00:24:33,280 --> 00:24:37,520 Suze: and then you convert from there to a Roth I. R. A. 436 00:24:37,630 --> 00:24:42,330 Suze: Now you say that you've recently opened a Roth I. R. A. 437 00:24:42,340 --> 00:24:45,880 Suze: You can put the money that you convert into the 438 00:24:45,880 --> 00:24:49,350 Suze: Roth ira that you have already opened. You don't need 439 00:24:49,350 --> 00:24:50,659 Suze: to open another one. 440 00:24:51,530 --> 00:24:55,290 KT: Okay this is from Laura. Hi Suze. If a person has 441 00:24:55,290 --> 00:24:58,240 KT: a regular 401k. Not a Roth. 442 00:24:58,580 --> 00:25:02,380 KT: And is at the age of having to withdraw funds 443 00:25:02,730 --> 00:25:03,480 Suze: That means she's 72 years of age 444 00:25:04,250 --> 00:25:07,790 KT: How does the I. R. S determine how much tax 445 00:25:07,790 --> 00:25:12,610 KT: to take out? Is the person's tax bracket determined by 446 00:25:12,609 --> 00:25:15,020 KT: the prior year or by the last 447 00:25:15,030 --> 00:25:20,040 KT: few years or by the highest paid years of that 448 00:25:20,040 --> 00:25:21,420 KT: person's salary, 449 00:25:21,430 --> 00:25:24,590 Suze: Laura. Just know whatever money you take out of a 450 00:25:24,590 --> 00:25:29,720 Suze: traditional 401K. Will be taxed to you that year as 451 00:25:29,730 --> 00:25:31,460 Suze: ordinary income. 452 00:25:31,630 --> 00:25:37,130 Suze: And it will also apply to your Medicare premiums. Part 453 00:25:37,130 --> 00:25:41,390 Suze: B and D. As well if you're over a certain limit. 454 00:25:41,400 --> 00:25:41,820 Suze: Alright 455 00:25:41,830 --> 00:25:46,659 KT: Ready? Next question is an I Bond question. Good morning Suze. 456 00:25:46,670 --> 00:25:51,760 KT: I have started investing in I Bonds since June 1st 2022. 457 00:25:52,109 --> 00:25:54,729 KT: I listened to your podcast as much as I can 458 00:25:54,730 --> 00:25:58,040 KT: to help me understand the process. One thing I have 459 00:25:58,040 --> 00:26:02,080 KT: not heard. Is it okay to have your account set 460 00:26:02,080 --> 00:26:07,620 KT: for automatic withdraw in my case $1,000 at the first 461 00:26:07,619 --> 00:26:12,220 KT: of the month as opposed to putting $10,000 in all 462 00:26:12,220 --> 00:26:13,050 KT: at once. 463 00:26:13,940 --> 00:26:18,030 KT: Am I wasting valuable time at 63 doing it this way. 464 00:26:19,230 --> 00:26:20,280 KT: Okay. 465 00:26:23,430 --> 00:26:27,320 Suze: Jackie, would you want a dollar cost average into a 466 00:26:27,320 --> 00:26:31,370 Suze: Series I Bond if you have the money to do 467 00:26:31,369 --> 00:26:35,810 Suze: a lump sum? So if you have $10,000 468 00:26:35,820 --> 00:26:40,139 Suze: you want to do it absolutely all at once. Also 469 00:26:40,140 --> 00:26:42,510 Suze: you said that you're having them do it at the 470 00:26:42,510 --> 00:26:45,660 Suze: first of the month. Why are you having them do 471 00:26:45,660 --> 00:26:48,379 Suze: it at the first of the month? If you put 472 00:26:48,380 --> 00:26:52,410 Suze: money into an I Bond at the end of a month, 473 00:26:52,730 --> 00:26:56,100 Suze: As long as it's in there before the month ends, 474 00:26:56,119 --> 00:26:58,910 Suze: they credit you as if you put it in on 475 00:26:58,910 --> 00:27:01,800 Suze: the first of the month. So why would you want 476 00:27:01,800 --> 00:27:04,600 Suze: to wait if you do 1000 a month you might 477 00:27:04,600 --> 00:27:08,129 Suze: miss out on the 9.62% because November 1st it might 478 00:27:08,140 --> 00:27:12,710 Suze: not be that. So anyway it could very well go down. 479 00:27:12,710 --> 00:27:15,590 Suze: We'll have to see what happens. So no you do 480 00:27:15,590 --> 00:27:17,520 Suze: it all at once girlfriend. 481 00:27:19,020 --> 00:27:20,470 Suze: So, you know what time it is now? 482 00:27:20,780 --> 00:27:22,160 KT: It's quizzie time! 483 00:27:22,170 --> 00:27:23,939 Suze: That you remember? 484 00:27:25,180 --> 00:27:28,109 KT: I know it's our anniversary but it's quizzie time. 485 00:27:28,109 --> 00:27:34,270 Suze: That you remember now, KT in honor of the Suze 486 00:27:34,270 --> 00:27:39,530 Suze: Orman Show that is on Freevee. Now the favorite segment 487 00:27:39,540 --> 00:27:43,020 Suze: of that show was "Can I Afford It?" 488 00:27:44,119 --> 00:27:44,970 KT: "Can I Afford It?" Everyone loved it! 489 00:27:45,090 --> 00:27:45,669 Suze: Love 490 00:27:45,670 --> 00:27:46,830 KT: love love loved it. 491 00:27:46,840 --> 00:27:49,320 Suze: So this quizzie... and by the way, for those of 492 00:27:49,320 --> 00:27:50,940 Suze: you who don't know 493 00:27:51,190 --> 00:27:54,430 Suze: right? The quizzie isn't just for KT. It's for you 494 00:27:54,430 --> 00:27:59,240 Suze: as well, how would you answer this question? So now 495 00:27:59,240 --> 00:28:02,570 Suze: you have to pretend that you're me and this person 496 00:28:02,580 --> 00:28:04,350 Suze: is calling you, 497 00:28:04,580 --> 00:28:05,480 KT: Can I afford it? 498 00:28:05,490 --> 00:28:09,340 Suze: Can I afford it? And asking you if they can 499 00:28:09,340 --> 00:28:13,940 Suze: afford something and you have to approve or deny based 500 00:28:13,940 --> 00:28:17,020 Suze: on the information that I'm about to give you. 501 00:28:17,720 --> 00:28:19,720 Suze: All right? So listen closely. Do you want to write 502 00:28:19,720 --> 00:28:20,520 Suze: anything down? 503 00:28:20,560 --> 00:28:23,469 KT: I have my pen. I'll take notes if I need them. 504 00:28:24,280 --> 00:28:27,660 Suze: Seems to me you need notes lately. Okay. Anyway, 505 00:28:27,670 --> 00:28:28,930 KT: I remember today 506 00:28:28,940 --> 00:28:30,970 Suze: This is from Clay. 507 00:28:32,020 --> 00:28:36,500 Suze: Hi, Suze. I want to buy myself a Rolex but 508 00:28:36,500 --> 00:28:40,660 Suze: my husband is skeptical and I would like to get 509 00:28:40,670 --> 00:28:45,940 Suze: your blessing. I'm 37 with around $ 160,000 in a 510 00:28:45,940 --> 00:28:53,690 Suze: 401 K $55,000 in company stock and another $40,000 in 511 00:28:53,690 --> 00:29:00,000 Suze: checking and savings. That is burning a hole in my pocket. 512 00:29:00,650 --> 00:29:04,560 Suze: We also own a home that has increased in value 513 00:29:04,570 --> 00:29:10,490 Suze: from $175,000 to around $600,000 and will be paid off 514 00:29:10,500 --> 00:29:15,130 Suze: in 10 years. I would like to spend a $9000, 515 00:29:15,720 --> 00:29:19,190 Suze: on a Rolex that I've had my eye on for 516 00:29:19,190 --> 00:29:24,709 Suze: years and with the secondary watch market currently crashing I 517 00:29:24,710 --> 00:29:27,110 Suze: think now is the time. 518 00:29:28,150 --> 00:29:30,990 Suze: That's what he wants to know. 519 00:29:32,110 --> 00:29:35,690 KT: So show me the money Suze. That's what you say. Show 520 00:29:35,690 --> 00:29:36,430 KT: me the money. 521 00:29:36,440 --> 00:29:42,370 Suze: All right. A few other things. Truthfully right about Clay 522 00:29:42,380 --> 00:29:46,770 Suze: is that he has with his husband, expenses of about 523 00:29:46,770 --> 00:29:48,880 Suze: $5,000 a month. 524 00:29:49,080 --> 00:29:54,620 Suze: They split those expenses equally. They have two cars that 525 00:29:54,620 --> 00:29:59,060 Suze: are fully paid for, right? And he doesn't like the 526 00:29:59,060 --> 00:30:02,540 Suze: stock market. He's afraid to lose money. He wants to 527 00:30:02,540 --> 00:30:06,560 Suze: know where to put money that he does have. That. 100% guaranteed, 528 00:30:06,570 --> 00:30:12,090 Suze: Blah Blah Blah Blah. So that is the picture of Clay. 529 00:30:12,100 --> 00:30:18,420 Suze: Would you approve Clay to spend $9,250 530 00:30:18,810 --> 00:30:25,550 Suze: on a Rolex? Given his current financial situation? 531 00:30:26,320 --> 00:30:32,540 KT: Want me to give you my answer? D enied denied denied. 532 00:30:32,550 --> 00:30:33,500 Suze: Why? 533 00:30:33,510 --> 00:30:38,710 KT: Because of the emotional decision not whether he can afford it. 534 00:30:38,710 --> 00:30:42,640 KT: I don't think he can afford emotionally to upset his husband. 535 00:30:42,650 --> 00:30:44,150 KT: Why would he do that? 536 00:30:45,060 --> 00:30:49,900 KT: Why Clay? You're 37. Your husband's very skeptical. Why don't you 537 00:30:49,900 --> 00:30:52,240 KT: wait till your husband and both of you feel great 538 00:30:52,240 --> 00:30:54,180 KT: about it? Let him buy it for you as an 539 00:30:54,190 --> 00:30:58,420 KT: anniversary or birthday or something denied. 540 00:30:58,430 --> 00:31:01,900 Suze: And how would all of you answer that? What do 541 00:31:01,900 --> 00:31:03,200 Suze: you think everybody 542 00:31:03,880 --> 00:31:05,600 Suze: So KT 543 00:31:06,080 --> 00:31:07,180 KT: How would you answer? 544 00:31:07,190 --> 00:31:11,780 Suze: How is Suze going to answer through all the years 545 00:31:11,780 --> 00:31:13,420 Suze: of the Suze Orman show. 546 00:31:13,860 --> 00:31:19,760 Suze: Now I really had to separate emotions from finances whether 547 00:31:19,760 --> 00:31:22,310 Suze: I agreed with them or not. Whether they wanted to 548 00:31:22,310 --> 00:31:27,330 Suze: spend $100,000 on cloning their dog or which I approved 549 00:31:27,340 --> 00:31:31,560 Suze: by the way or $7,000 for a sun room for 550 00:31:31,570 --> 00:31:33,880 Suze: a pet Iguana. 551 00:31:34,160 --> 00:31:41,440 Suze: Alright or $6,000 to go to Elf School with somebody 552 00:31:41,440 --> 00:31:44,670 Suze: who had so much debt. It wasn't even funny. So 553 00:31:44,670 --> 00:31:47,820 Suze: the question is can I afford it 554 00:31:48,830 --> 00:31:53,130 Suze: Can Clay afford it? And Clay, This is how I look 555 00:31:53,140 --> 00:31:54,460 Suze: at your situation. 556 00:31:55,050 --> 00:32:01,140 Suze: You have $175,000 of a house that you purchase that's 557 00:32:01,140 --> 00:32:04,719 Suze: worth 600,000. Well that's great Clay. But you live in 558 00:32:04,720 --> 00:32:07,750 Suze: that house. That money is not liquid to you. And 559 00:32:07,750 --> 00:32:09,660 Suze: there is no way I'm gonna let you take out 560 00:32:09,660 --> 00:32:13,950 Suze: any cash from that house in a rising interest rate environment. 561 00:32:14,110 --> 00:32:17,660 Suze: You say you have $160,000 in a 401 K. 562 00:32:18,170 --> 00:32:21,180 Suze: First of all. Not only is it taxable but it's 563 00:32:21,180 --> 00:32:24,090 Suze: a 10% penalty because you're not of age. You can't 564 00:32:24,090 --> 00:32:29,220 Suze: touch that money either. You say you have 55,000 in stock. 565 00:32:29,230 --> 00:32:32,220 Suze: This is not the time to be selling stock no 566 00:32:32,220 --> 00:32:35,650 Suze: matter what. So you can't touch that as well. You 567 00:32:35,650 --> 00:32:40,120 Suze: say you have $40,000 in a checking and savings account 568 00:32:40,320 --> 00:32:42,040 Suze: that's burning a hole in your 569 00:32:42,040 --> 00:32:43,530 Suze: pocket. I 570 00:32:43,540 --> 00:32:47,280 Suze: think it's burning a hole, my love in your head, right? 571 00:32:47,290 --> 00:32:51,800 Suze: There's no way money can ever burn a hole in 572 00:32:51,800 --> 00:32:56,490 Suze: your pocket. You have this yearning desire to buy something 573 00:32:56,490 --> 00:32:59,680 Suze: that you've wanted to buy for years and so you're 574 00:32:59,680 --> 00:33:04,010 Suze: using that as an excuse if you want to buy this, 575 00:33:04,020 --> 00:33:07,950 Suze: you have $9,250. You're going to have to spend 576 00:33:08,430 --> 00:33:11,760 Suze: take that from the 40,000, which brings you down to 577 00:33:11,760 --> 00:33:20,400 Suze: approximately $30,000 left. You say that you also split the 578 00:33:20,400 --> 00:33:24,890 Suze: $5,000 in monthly expenses with your husband. So that means 579 00:33:24,890 --> 00:33:29,160 Suze: you need $2500 a month as an emergency fund. So 580 00:33:29,160 --> 00:33:32,040 Suze: for 12 months you have that 30,000. 581 00:33:32,680 --> 00:33:38,080 Suze: So on some level, financially truthfully, can you afford it 582 00:33:38,090 --> 00:33:43,910 Suze: at this point in time? You can, you are approved financially. 583 00:33:44,550 --> 00:33:50,090 Suze: However, you are such a smart man. You're saving money. 584 00:33:50,090 --> 00:33:53,990 Suze: You're saving money with your husband. Nothing's going wrong. I 585 00:33:53,990 --> 00:33:56,910 Suze: mean everything is on track to how it should be. 586 00:33:57,200 --> 00:34:02,480 Suze: But here is the real question at hand, everybody. So KT, 587 00:34:02,480 --> 00:34:05,750 Suze: I know you denied him, but 588 00:34:06,140 --> 00:34:07,440 Suze: he could afford it. 589 00:34:08,570 --> 00:34:08,750 KT: He could have... 590 00:34:10,040 --> 00:34:13,320 Suze: Yes. But the question is, can I afford 591 00:34:13,330 --> 00:34:14,560 Suze: it? All 592 00:34:14,560 --> 00:34:17,080 Suze: right. You can now, Clay, but listen to me, 593 00:34:17,620 --> 00:34:20,450 Suze: here's the question, which is how all of you need 594 00:34:20,450 --> 00:34:21,540 Suze: to look at something. 595 00:34:22,480 --> 00:34:28,050 Suze: If Clay took $9,250 right now 596 00:34:28,580 --> 00:34:30,290 Suze: and he invested it. 597 00:34:30,830 --> 00:34:34,510 Suze: And let's say over the next 33 years, clay, when 598 00:34:34,510 --> 00:34:39,629 Suze: you're going to be 70, KT's age, the age that 599 00:34:39,640 --> 00:34:44,110 Suze: is perfect. If you ask me, although she can't remember 600 00:34:44,120 --> 00:34:47,690 Suze: our anniversary. But that's besides the point. Right. Do you 601 00:34:47,690 --> 00:34:53,280 Suze: know at just a 5% rate of return, which over 602 00:34:53,280 --> 00:34:56,990 Suze: 33 years is so low. I can't even tell you, 603 00:34:57,500 --> 00:35:04,830 Suze: You would have approximately $47,000. So that 92 50 would 604 00:35:04,830 --> 00:35:08,030 Suze: turn into $47,000. 605 00:35:08,969 --> 00:35:16,629 Suze: Is this watch worth $47,000. Seriously, Clay? I don't know. 606 00:35:16,630 --> 00:35:19,840 Suze: It's something that you need to think about. Also when 607 00:35:19,840 --> 00:35:23,859 Suze: you have a watch, like a Rolex, don't think that 608 00:35:23,860 --> 00:35:26,459 Suze: there aren't costs to maintain it. 609 00:35:27,130 --> 00:35:29,510 Suze: So you have to make sure you get a watch 610 00:35:29,510 --> 00:35:31,800 Suze: winder for it so that when you don't have it on, 611 00:35:31,800 --> 00:35:34,759 Suze: it's constantly winding it. Don't think you're not going to 612 00:35:34,760 --> 00:35:37,910 Suze: have to have it repaired over those years because you are. 613 00:35:37,930 --> 00:35:42,040 Suze: And remember, a watch can always be stolen. All kinds 614 00:35:42,040 --> 00:35:44,670 Suze: of things can happen to that. You're therefore going to 615 00:35:44,670 --> 00:35:46,989 Suze: have to ensure it. I don't know Clay. 616 00:35:47,410 --> 00:35:50,790 Suze: If I were you, I would take that money, you know, 617 00:35:50,800 --> 00:35:53,210 Suze: open up a Roth IRA for this year. Open up 618 00:35:53,210 --> 00:35:55,690 Suze: a Roth for next year. Take advantage of the fact 619 00:35:55,690 --> 00:35:59,470 Suze: that the markets are down. But can you afford it? 620 00:35:59,480 --> 00:36:03,340 Suze: You have been approved. 621 00:36:03,610 --> 00:36:05,410 Suze: How is that KT? 622 00:36:05,420 --> 00:36:06,149 Suze: Did that make 623 00:36:06,150 --> 00:36:07,489 Suze: you miss "Can I Afford It?" 624 00:36:07,489 --> 00:36:12,010 KT: Yeah, that was a great ending approved approved. Now, the 625 00:36:12,010 --> 00:36:16,819 KT: question is Clay, will you listen to Suze's approved or 626 00:36:16,820 --> 00:36:21,120 KT: Suze's voice of reason. So let's see what happens. 627 00:36:21,130 --> 00:36:26,480 Suze: Or KT's voice of love. All right, Everybody 628 00:36:26,830 --> 00:36:28,360 KT: Happy Anniversary Suze. Okay. 629 00:36:28,360 --> 00:36:30,370 Suze: Now you remember? 630 00:36:30,520 --> 00:36:34,270 KT: Let's go celebrate. We're gonna go celebrate. Will you buy 631 00:36:34,270 --> 00:36:38,650 KT: me a watch? Just kidding. Let's go celebrate everybody. 632 00:36:38,660 --> 00:36:41,780 Suze: All right. But I want all of you to celebrate 633 00:36:41,790 --> 00:36:45,669 Suze: by watching all those hundreds of episode 634 00:36:45,670 --> 00:36:50,350 KT: 600 The Suze Orman Show baby. Go to FreeVee, g o 635 00:36:50,350 --> 00:36:50,790 KT: to Amazon 636 00:36:50,960 --> 00:36:54,920 KT: just plug it right in. It's free and love it up, 637 00:36:54,930 --> 00:36:55,719 KT: enjoy it. 638 00:36:55,719 --> 00:37:00,440 Suze: And you are all approved to do that. So until 639 00:37:00,440 --> 00:37:05,110 Suze: Sunday KT we only want one thing for everybody and 640 00:37:05,110 --> 00:37:07,719 Suze: that's for them to be safe. Strong 641 00:37:07,730 --> 00:37:11,069 KT: and secure and safe and secure. 642 00:37:11,080 --> 00:37:12,810 Suze: She just doesn't like that. 643 00:37:13,000 --> 00:37:18,060 KT: They're already smart. They're listening. They're they're already smart. All of 644 00:37:18,060 --> 00:37:22,440 KT: you listening are already smart. But to be safe. Strong 645 00:37:22,440 --> 00:37:25,250 KT: and secure we all need a little more of that 646 00:37:25,250 --> 00:37:26,200 KT: in our lives. 647 00:37:26,210 --> 00:37:29,589 Suze: Alright until Sunday you take care. 648 00:37:29,600 --> 00:37:30,759 KT: Bye bye.