1 00:00:07,929 --> 00:00:12,920 Suze: August 21, 2025. Welcome everybody to the Women and Money podcast, 2 00:00:13,250 --> 00:00:18,128 Suze: as well as everybody smart enough to listen. Today is... 3 00:00:18,569 --> 00:00:20,250 KT: Ask KT and Suze 4 00:00:21,729 --> 00:00:24,000 Suze: Anything. And are you just so excited? 5 00:00:24,170 --> 00:00:25,809 KT: I am. We're leaving soon. 6 00:00:25,809 --> 00:00:31,250 Suze: In 10 days we are going to San Francisco and 7 00:00:31,250 --> 00:00:33,250 Suze: we're actually going to see 8 00:00:33,250 --> 00:00:34,168 KT: Caitlin Clark. 9 00:00:34,479 --> 00:00:35,115 Suze: The Valkyries play. 10 00:00:35,115 --> 00:00:37,020 KT: Let's hope she's playing. 11 00:00:37,069 --> 00:00:39,310 Suze: That's, well, even if she's not playing, I just can't 12 00:00:39,310 --> 00:00:42,339 Suze: wait even to see her. So we're going with our friends, 13 00:00:42,348 --> 00:00:46,599 Suze: Woody and Paula, who have season tickets, and we're going 14 00:00:46,598 --> 00:00:52,540 Suze: to see our very first in-person WNBA game. 15 00:00:52,668 --> 00:00:55,069 KT: We've been wanting to watch her play for a really 16 00:00:55,069 --> 00:00:55,549 KT: long time... 17 00:00:55,549 --> 00:00:55,939 Suze: In person. 18 00:00:56,029 --> 00:01:03,900 Suze: I love the WNBA and all the great women players really. However, yesterday, 19 00:01:04,449 --> 00:01:11,220 Suze: Was the birthday of my oldest, oldest friend really Laurie Nader, 20 00:01:11,580 --> 00:01:13,750 Suze: and happy birthday Laurie, right? 21 00:01:14,150 --> 00:01:15,919 KT: So when did you and Laurie meet each other? 22 00:01:17,019 --> 00:01:19,289 Suze: Boy, when probably when we were 10 or 11, she 23 00:01:19,290 --> 00:01:20,800 Suze: lived around the block from us 24 00:01:21,199 --> 00:01:21,330 KT: And you went to school? 25 00:01:22,010 --> 00:01:24,209 Suze: We went everywhere... loved her, just loved her. 26 00:01:24,209 --> 00:01:27,729 KT: And you still do. They're still very good, very good friends. 27 00:01:27,970 --> 00:01:28,559 Suze: OK. 28 00:01:29,169 --> 00:01:34,129 KT: OK, first question from Sheila. Hello, dear Suze, can you 29 00:01:34,129 --> 00:01:41,150 KT: please explain SIPC Insurance? I understand that stocks are insured 30 00:01:41,150 --> 00:01:45,650 KT: up to $50 million. If one is fortunate enough to 31 00:01:45,650 --> 00:01:46,410 KT: have stocks 32 00:01:46,485 --> 00:01:50,275 KT: worth more than that amount, is there insurance we should 33 00:01:50,275 --> 00:01:53,595 KT: purchase to protect those funds? 34 00:01:53,714 --> 00:01:56,324 Suze: First of all, it's no, there isn't... 35 00:01:56,324 --> 00:01:58,464 KT: Is it stocks or one stock? 36 00:01:58,514 --> 00:02:02,514 Suze: No, it's the brokerage firm. If the brokerage firm itself 37 00:02:02,514 --> 00:02:03,875 Suze: went belly up. 38 00:02:04,519 --> 00:02:09,029 Suze: And you had a half a million dollars of ETFs, investments, 39 00:02:09,110 --> 00:02:13,720 Suze: whatever it may be in your brokerage account, then automatically 40 00:02:13,720 --> 00:02:18,070 Suze: you're insured up to $500,000. Now it doesn't protect you 41 00:02:18,070 --> 00:02:22,869 Suze: against loss. It doesn't mean, oh, you invested $500,000 in 42 00:02:22,869 --> 00:02:25,910 Suze: these stocks and these stocks went down and therefore you're 43 00:02:25,910 --> 00:02:29,589 Suze: going to get your $500,000 back. It's not how it works. 44 00:02:29,910 --> 00:02:31,750 Suze: It is protecting you 45 00:02:32,288 --> 00:02:35,990 Suze: against if the brokerage firm where you are invested in 46 00:02:36,240 --> 00:02:42,600 Suze: gets into trouble, then you are protected. However, most brokerage 47 00:02:42,600 --> 00:02:49,889 Suze: firms have excess security insurance, sometimes up to millions of dollars. 48 00:02:49,960 --> 00:02:52,830 Suze: I mean, we have friends seriously. 49 00:02:53,360 --> 00:02:58,478 Suze: That have hundreds of millions of dollars in one particular 50 00:02:58,479 --> 00:03:03,809 Suze: brokerage account, so they are protected and they feel safe, 51 00:03:03,960 --> 00:03:07,479 Suze: believe it or not we have a serious sum of 52 00:03:07,479 --> 00:03:12,198 Suze: money in one particular brokerage account, and we feel safe 53 00:03:12,199 --> 00:03:15,160 Suze: because they have excess insurance, so. 54 00:03:15,679 --> 00:03:18,220 Suze: I would feel safe if I were you just ask 55 00:03:18,220 --> 00:03:23,250 Suze: your brokerage account how much excess insurance they carry. Now, 56 00:03:23,419 --> 00:03:26,899 Suze: if you want, just invest up to a specific sum 57 00:03:26,899 --> 00:03:31,380 Suze: of money, like maybe $400,000 and then get another account 58 00:03:31,380 --> 00:03:34,570 Suze: at a different brokerage firm. You can do that if 59 00:03:34,570 --> 00:03:36,240 Suze: you want. All right, next, KT, 60 00:03:36,669 --> 00:03:37,949 KT: OK, Henry... 61 00:03:38,100 --> 00:03:38,429 Suze: Henry! 62 00:03:38,570 --> 00:03:42,330 KT: Henry, this is a very sweet question, Henry. 63 00:03:42,720 --> 00:03:45,199 KT: Henry, I have to say your wife is so lucky 64 00:03:45,199 --> 00:03:48,610 KT: to have you as her husband. This is what he wrote. 65 00:03:48,919 --> 00:03:52,470 KT: My wife and I are going to be renting an apartment. 66 00:03:52,800 --> 00:03:56,910 KT: She has a disability that is preventing her from working 67 00:03:56,910 --> 00:04:01,960 KT: at a job in our hometown. I am 56. She 68 00:04:01,960 --> 00:04:05,750 KT: is 46. How can I make sure she has a 69 00:04:05,750 --> 00:04:09,360 KT: place to live when I eventually pass on? 70 00:04:09,669 --> 00:04:13,050 KT: I'm not ready to leave this world. My health is 71 00:04:13,050 --> 00:04:16,808 KT: generally OK, but I want to make sure she will 72 00:04:16,809 --> 00:04:19,190 KT: be OK. Is that sweet or what? 73 00:04:20,488 --> 00:04:20,768 Suze: Henry 74 00:04:20,769 --> 00:04:21,609 KT: Henry, you're both 75 00:04:21,609 --> 00:04:22,179 KT: pretty young, 76 00:04:22,488 --> 00:04:26,170 Suze: But Henry, at your age, if I were you, I 77 00:04:26,170 --> 00:04:30,649 Suze: would look into a 10 year term life insurance policy. 78 00:04:30,744 --> 00:04:34,295 Suze: Policy for a significant amount of money in case something 79 00:04:34,295 --> 00:04:38,005 Suze: happened to you within the next 10 years. After that, 80 00:04:38,214 --> 00:04:42,045 Suze: what starts to happen is it becomes very, very expensive. 81 00:04:42,334 --> 00:04:45,924 Suze: I would tell you to get a whole life insurance policy, 82 00:04:46,095 --> 00:04:49,294 Suze: but it's going to be absolutely so expensive it's not 83 00:04:49,295 --> 00:04:52,695 Suze: really in my opinion, going to be worth it. What 84 00:04:52,695 --> 00:04:55,364 Suze: you can do right now. 85 00:04:56,619 --> 00:05:01,290 Suze: Is do everything you possibly can do to save money, 86 00:05:01,790 --> 00:05:05,739 Suze: invest money, put a whole lot of money away as 87 00:05:05,738 --> 00:05:10,700 Suze: much as you possibly can so that upon your death 88 00:05:10,700 --> 00:05:12,669 Suze: that's left to her or 89 00:05:12,988 --> 00:05:17,700 Suze: Henry, I get that right now your wife has a disability, 90 00:05:18,000 --> 00:05:22,118 Suze: but somehow we never think about what if Henry gets 91 00:05:22,119 --> 00:05:27,359 Suze: a disability? What if Henry can't work right now or 92 00:05:27,359 --> 00:05:28,489 Suze: ever again? 93 00:05:28,910 --> 00:05:33,130 Suze: So do you take out a disability policy on yourself? 94 00:05:33,399 --> 00:05:37,000 Suze: I don't know what kind of disability your wife happens 95 00:05:37,000 --> 00:05:41,399 Suze: to have, but is she on SSI? Is the state 96 00:05:41,399 --> 00:05:45,290 Suze: giving her income? Is there ways for that to happen? 97 00:05:45,600 --> 00:05:49,480 Suze: Now I get that you're renting at this point in time. 98 00:05:50,470 --> 00:05:53,149 Suze: Your question becomes how can I make sure she has 99 00:05:53,149 --> 00:05:57,269 Suze: a place to live when I eventually pass on. 100 00:05:57,988 --> 00:06:03,399 Suze: You might want to think about buying into an independent 101 00:06:03,399 --> 00:06:09,200 Suze: living facility where you own the place that she's living 102 00:06:09,200 --> 00:06:12,279 Suze: in and that she will be able to be taken 103 00:06:12,279 --> 00:06:15,649 Suze: care of in that place and you just live there 104 00:06:15,649 --> 00:06:17,529 Suze: starting now as well. 105 00:06:17,899 --> 00:06:22,399 Suze: So there are alternatives, but it's something that you cannot 106 00:06:22,399 --> 00:06:25,540 Suze: put off. It's something that you have to make your 107 00:06:25,540 --> 00:06:30,450 Suze: number one priority. So the other thing is, do you 108 00:06:30,450 --> 00:06:35,738 Suze: have relatives? Does she have relatives that if something happened 109 00:06:35,738 --> 00:06:38,928 Suze: to you would say, Don't worry, we'll take her in. 110 00:06:39,178 --> 00:06:41,779 Suze: We'll make sure we'll take care of her. Do you 111 00:06:41,779 --> 00:06:45,979 Suze: have a friend, anybody, but you better put plans in 112 00:06:45,980 --> 00:06:47,549 Suze: order right now. 113 00:06:48,000 --> 00:06:52,328 Suze: And do everything you possibly can to secure a place 114 00:06:52,329 --> 00:06:55,940 Suze: for her to live and that just might be an 115 00:06:55,940 --> 00:07:01,529 Suze: independent living facility right now that has different levels of care. 116 00:07:01,880 --> 00:07:02,869 Suze: All right, what were you gonna say? 117 00:07:02,869 --> 00:07:06,579 KT: There's lots of great independent living facilities, and I think 118 00:07:06,579 --> 00:07:10,230 KT: that is the, the key here. If they're renting, why 119 00:07:10,230 --> 00:07:12,790 KT: not put that money towards that investment, right? 120 00:07:12,890 --> 00:07:16,549 Suze: Or and the question becomes, I don't know how much 121 00:07:16,549 --> 00:07:19,459 Suze: money you have, what you have available to you, but 122 00:07:19,459 --> 00:07:21,670 Suze: you have to get on it right here and now. 123 00:07:22,269 --> 00:07:25,950 KT: All right. OK, next question is from Diane. 124 00:07:26,279 --> 00:07:29,859 KT: Hi Suze and KT, do I need to update the 125 00:07:29,859 --> 00:07:34,459 KT: trust and other essential documents because I moved from Wisconsin 126 00:07:34,459 --> 00:07:38,649 KT: to Georgia? The only thing that had changed was their address. 127 00:07:38,940 --> 00:07:41,220 KT: There you go, she said. My husband and I put 128 00:07:41,220 --> 00:07:46,779 KT: the trust as our contingent beneficiary on our 403Bs rather 129 00:07:46,779 --> 00:07:50,899 KT: than name our adult sons directly. Is this OK? You 130 00:07:50,899 --> 00:07:55,089 KT: mentioned something in the podcast that made us question this. 131 00:07:55,375 --> 00:07:58,054 KT: Thank you for your great information, Diane. 132 00:07:58,174 --> 00:08:01,214 Suze: Yeah, truthfully, because I don't know what kind of trust 133 00:08:01,214 --> 00:08:04,095 Suze: you have, you want to make sure that your trust 134 00:08:04,095 --> 00:08:07,605 Suze: is a see through trust. If it's named as a 135 00:08:07,605 --> 00:08:12,494 Suze: beneficiary on a retirement account, also remember your husband needs 136 00:08:12,494 --> 00:08:16,804 Suze: to be the primary beneficiary, and the trust can be 137 00:08:16,804 --> 00:08:19,214 Suze: the contingent beneficiaries, however. 138 00:08:20,070 --> 00:08:24,630 Suze: If your children are of age and you say they are, 139 00:08:24,839 --> 00:08:28,399 Suze: I do think that in fact you would probably be 140 00:08:28,399 --> 00:08:33,319 Suze: better off naming them individually. It's just a better way 141 00:08:33,320 --> 00:08:37,760 Suze: to go because of how the inherited retirement account rules 142 00:08:37,760 --> 00:08:40,440 Suze: have changed. So that's number one. 143 00:08:41,169 --> 00:08:44,718 Suze: Do you need to rename your trust or update it 144 00:08:44,718 --> 00:08:48,448 Suze: because now you've moved to Georgia? I don't think so. 145 00:08:48,718 --> 00:08:52,838 Suze: It's the must have documents, for instance, that trust is 146 00:08:52,838 --> 00:08:57,348 Suze: governed by the state of California no matter where you live, 147 00:08:57,638 --> 00:09:01,398 Suze: because the state of California actually happens to have the 148 00:09:01,398 --> 00:09:05,598 Suze: best trust laws around. So when you live in another 149 00:09:05,598 --> 00:09:08,679 Suze: state and you get this, no, you don't have to 150 00:09:08,679 --> 00:09:10,238 Suze: change it to your state. 151 00:09:10,599 --> 00:09:15,049 Suze: So up to you, but since only your address has changed, 152 00:09:15,260 --> 00:09:18,488 Suze: I wouldn't worry about it. There you go. All right, KT. 153 00:09:18,739 --> 00:09:21,219 KT: Next question I have Suze is from Jeremy. 154 00:09:21,979 --> 00:09:25,020 KT: Say Hi Suze and KT. My wife and I have 155 00:09:25,020 --> 00:09:28,780 KT: listened to Suze for many years and just discovered the 156 00:09:28,780 --> 00:09:33,099 KT: podcast a few years ago. And then he says, we 157 00:09:33,099 --> 00:09:37,049 KT: are debt free. We paid off our house a year ago. 158 00:09:37,780 --> 00:09:42,059 KT: My question is, with a house being paid off, what 159 00:09:42,059 --> 00:09:47,099 KT: are some steps to prevent identity thieves from claiming a 160 00:09:47,099 --> 00:09:50,979 KT: quick claim deed in a fake transaction with the house 161 00:09:50,979 --> 00:09:51,819 KT: we live in? 162 00:09:52,539 --> 00:09:56,099 KT: Or our other house that is a rental. How do 163 00:09:56,099 --> 00:10:00,659 KT: we prevent mortgage fraud? Should I just freeze our credit? Like, 164 00:10:00,719 --> 00:10:05,000 KT: what do we do? They're very paranoid about their real estate. Yeah, 165 00:10:05,340 --> 00:10:06,460 KT: a lot of identity theft. 166 00:10:06,460 --> 00:10:07,669 Suze: Identity theft, 167 00:10:08,020 --> 00:10:11,940 Suze: where you just simply freeze your credit isn't going to 168 00:10:11,940 --> 00:10:15,460 Suze: help you with your house. It just simply helps that 169 00:10:15,460 --> 00:10:18,820 Suze: if somebody is applying for a loan or something on 170 00:10:18,820 --> 00:10:21,260 Suze: your house, then they're not going to be able to 171 00:10:21,260 --> 00:10:23,218 Suze: do it if it's in your name. 172 00:10:23,650 --> 00:10:27,390 Suze: However, if they transfer it to their name, they're probably 173 00:10:27,390 --> 00:10:32,020 Suze: not caring about that. So you might want to, number one, right? 174 00:10:32,210 --> 00:10:34,968 Suze: There's all different kinds of things you can do, but 175 00:10:34,969 --> 00:10:39,559 Suze: depending on the county that you live in, cause many counties, Jeremy, 176 00:10:39,780 --> 00:10:43,169 Suze: offer what's known as a free alert system that's going 177 00:10:43,169 --> 00:10:48,169 Suze: to notify you if there's any recorded activity including filing 178 00:10:48,169 --> 00:10:51,460 Suze: a deed or a mortgage or whatever on your property. 179 00:10:51,770 --> 00:10:54,609 Suze: So you can sign up for these alerts for both 180 00:10:54,609 --> 00:10:59,010 Suze: your residence and your rental property that's known as a 181 00:10:59,010 --> 00:11:04,450 Suze: county property alert service. So check with your county to 182 00:11:04,450 --> 00:11:06,690 Suze: see if they offer them. 183 00:11:07,429 --> 00:11:12,429 Suze: Next, you have to watch for missing any redirected bills, 184 00:11:12,440 --> 00:11:16,109 Suze: so your mortgage, your property tax, your utility bills, if 185 00:11:16,109 --> 00:11:21,289 Suze: they stop arriving at your house, you know something is 186 00:11:21,289 --> 00:11:26,780 Suze: radically wrong. Title insurance. Listen, if you don't already have 187 00:11:26,780 --> 00:11:33,179 Suze: an owner's title insurance policy that covers post-policy forgery and fraud, 188 00:11:33,469 --> 00:11:34,520 Suze: you need to consider. 189 00:11:34,724 --> 00:11:40,505 Suze: Getting one or reviewing your current policy for this coverage. 190 00:11:40,765 --> 00:11:43,804 Suze: So now there are obviously you see them advertised all 191 00:11:43,804 --> 00:11:48,885 Suze: the time. You see professional monitoring services. Some companies will 192 00:11:48,885 --> 00:11:52,275 Suze: offer that you pay for a service, then they will 193 00:11:52,275 --> 00:11:57,074 Suze: monitor your property's title status for anything like a suspicious 194 00:11:57,075 --> 00:12:00,885 Suze: filing or something. So these might be worth while if 195 00:12:00,885 --> 00:12:01,843 Suze: you prefer. 196 00:12:02,130 --> 00:12:07,830 Suze: That somebody else handles it for you. So for maximum security, Jeremy, 197 00:12:08,080 --> 00:12:13,320 Suze: use a combination of property alerts, periodic deed checks, and 198 00:12:13,320 --> 00:12:17,239 Suze: credit freezes. That's what I would be doing if I 199 00:12:17,239 --> 00:12:18,199 Suze: were you. All right. 200 00:12:18,200 --> 00:12:21,320 KT: OK, Suze, the next question we have is a really 201 00:12:21,320 --> 00:12:22,599 KT: good one. It's from Betty. 202 00:12:23,039 --> 00:12:25,359 KT: She said, first off, my husband and I made it 203 00:12:25,359 --> 00:12:29,000 KT: our routine to watch your show on Saturday evenings many 204 00:12:29,000 --> 00:12:32,429 KT: years ago. People loved the Suze Orman show. 205 00:12:32,919 --> 00:12:34,598 Suze: Yeah, and by the way, for those of you who 206 00:12:34,599 --> 00:12:37,440 Suze: never watched it or you want to watch it, they're 207 00:12:37,440 --> 00:12:43,679 Suze: being shown again on my YouTube channel. That's youtube.com/ Suze 208 00:12:43,679 --> 00:12:47,478 Suze: Orman S U Z E and go there and you 209 00:12:47,479 --> 00:12:49,189 Suze: can watch them. And shortly, 210 00:12:49,530 --> 00:12:53,200 Suze: we're going to be doing live broadcasts from that YouTube 211 00:12:53,200 --> 00:12:56,119 Suze: channel where we're going to have live questions and answers. 212 00:12:56,159 --> 00:12:59,200 Suze: It only took us 10 or 15 years, some amount 213 00:12:59,200 --> 00:13:03,468 Suze: of time to get my YouTube channel back. Somebody had it. 214 00:13:03,770 --> 00:13:06,440 Suze: We couldn't figure out who it was and now it's 215 00:13:06,440 --> 00:13:08,559 Suze: back in my name. So here we go. 216 00:13:08,750 --> 00:13:12,099 KT: All right. So she says, Suze, your advice was invaluable, 217 00:13:12,599 --> 00:13:14,559 KT: especially regarding the need for a 218 00:13:14,609 --> 00:13:18,598 KT: long term care policy. We both lived healthy lifestyles, but 219 00:13:18,599 --> 00:13:23,059 KT: based on your advice, we each purchased one never expecting 220 00:13:23,440 --> 00:13:27,108 KT: to have to use my husband's 10 years later. Thank 221 00:13:27,109 --> 00:13:31,409 KT: you for that advice. Nobody knows what the future holds. 222 00:13:31,719 --> 00:13:35,390 KT: So Betty says my question today is, can you explain 223 00:13:35,640 --> 00:13:39,559 KT: what an index-based annuity is? Ready? 224 00:13:40,530 --> 00:13:44,619 KT: You should see Suze's face, everyone, I have a friend 225 00:13:44,929 --> 00:13:45,880 KT: who sells. 226 00:13:45,929 --> 00:13:46,899 Suze: Oh there we go. "Friend." 227 00:13:47,729 --> 00:13:48,880 KT: I have a friend. 228 00:13:49,260 --> 00:13:52,489 Suze: Don't you ever anybody buy an investment from a friend. 229 00:13:52,130 --> 00:13:57,159 KT: Wait, wait, wait. I have a friend who sells index-based annuities, 230 00:13:57,539 --> 00:14:02,020 KT: claims they are good investments and safe, she said. Even 231 00:14:02,020 --> 00:14:07,770 KT: financial advisors aren't really educated on the potential benefits of 232 00:14:07,770 --> 00:14:09,169 KT: those annuities. 233 00:14:09,760 --> 00:14:10,700 KT: You ready? 234 00:14:11,210 --> 00:14:11,789 Suze: Wait, now look at my face. 235 00:14:12,309 --> 00:14:15,228 KT: I know that face. I wish we were on video 236 00:14:15,229 --> 00:14:18,909 KT: because you would know the answer already, Betty. Betty said, 237 00:14:18,950 --> 00:14:22,469 KT: I'm 75 years old, a retired widow who has always 238 00:14:22,469 --> 00:14:26,500 KT: been very careful with my money, so I don't want 239 00:14:26,500 --> 00:14:27,710 KT: to mess that up now. 240 00:14:27,710 --> 00:14:31,059 Suze: Well, you're about to by listening to this so-called friend. 241 00:14:32,109 --> 00:14:35,530 KT: She said the money to purchase this annuity would most 242 00:14:35,530 --> 00:14:39,559 KT: likely come from cashing in my short-term treasuries. 243 00:14:39,669 --> 00:14:40,409 Suze: Are you kidding me? 244 00:14:40,630 --> 00:14:44,559 KT: I've been retired for 11 years and I'm enjoying life 245 00:14:44,559 --> 00:14:49,869 KT: with my Social Security, my pension, my RMDs, and interest 246 00:14:49,869 --> 00:14:51,469 KT: income from the treasuries. 247 00:14:52,119 --> 00:14:55,460 KT: There you go, Suze. Why does she need that annuity? 248 00:14:55,630 --> 00:14:56,419 Suze: She doesn't. 249 00:14:56,559 --> 00:14:57,229 KT: Well, there you go. 250 00:14:58,070 --> 00:15:01,299 KT: Your friend maybe needs the commission on the annuity. 251 00:15:01,539 --> 00:15:02,030 Suze: Here's the thing... 252 00:15:02,150 --> 00:15:03,830 KT: Is that not nice to say? 253 00:15:04,109 --> 00:15:08,030 Suze: No, that's the truth, because a $50,000 index annuity is 254 00:15:08,030 --> 00:15:11,270 Suze: probably going to yield her friend like $2500 or $3000 255 00:15:11,270 --> 00:15:12,030 Suze: in commission. 256 00:15:12,739 --> 00:15:16,119 Suze: You listen to me and you listen to me closely. 257 00:15:16,409 --> 00:15:19,359 Suze: You are to not do this. You're not to do this. 258 00:15:19,450 --> 00:15:21,320 Suze: You are not to do this. 259 00:15:21,640 --> 00:15:22,450 KT: She doesn't need to do it. 260 00:15:22,530 --> 00:15:24,690 Suze: I don't need to explain it to anybody. It just 261 00:15:24,690 --> 00:15:27,489 Suze: doesn't make any sense. If you want to invest in 262 00:15:27,489 --> 00:15:31,890 Suze: an index, then just buy the Standard and Poor's 500 index, 263 00:15:31,969 --> 00:15:35,929 Suze: by the Vanguard, the VOO ETF, and that would be 264 00:15:35,929 --> 00:15:41,450 Suze: far better. An indexed annuity, I don't even want you 265 00:15:41,450 --> 00:15:41,890 Suze: to know about it. 266 00:15:42,005 --> 00:15:44,994 Suze: I know everything that there is to know about it. 267 00:15:45,075 --> 00:15:48,195 Suze: You can tell your friend about that. And I just 268 00:15:48,195 --> 00:15:52,034 Suze: think it is not something that you in your particular 269 00:15:52,034 --> 00:15:54,554 Suze: situation should do. Next question, KT. 270 00:15:56,015 --> 00:16:00,594 KT: Michelle. Hi there, beautiful ladies. Thank you for all your 271 00:16:00,594 --> 00:16:05,145 KT: advice and really smart information. The smart information came comes 272 00:16:05,145 --> 00:16:06,005 KT: from Suze. 273 00:16:06,474 --> 00:16:08,945 Suze: Don't say that. You are never to do that again. 274 00:16:09,525 --> 00:16:10,945 Suze: I hate when you do that. 275 00:16:11,739 --> 00:16:12,859 Suze: So your sorry to yourself. 276 00:16:13,150 --> 00:16:13,640 KT: I'm, I'm sorry, KT. 277 00:16:13,440 --> 00:16:15,469 KT: Say, cancel, cancel. 278 00:16:15,679 --> 00:16:17,150 KT: Cancel, cancel KT. 279 00:16:17,909 --> 00:16:18,200 KT: She said... 280 00:16:18,200 --> 00:16:19,280 Suze: Not cancel, cancel KT. 281 00:16:19,960 --> 00:16:23,150 KT: No - Cancel, cancel. KT, your information is smart too. 282 00:16:24,349 --> 00:16:25,890 Suze: Sometimes it's even smarter, KT. 283 00:16:26,219 --> 00:16:30,900 KT: Well, there you go. Everyone hear that sometimes it is even smarter... 284 00:16:30,900 --> 00:16:33,179 Suze: Don't ever do that. 285 00:16:33,260 --> 00:16:37,619 KT: OK, I purchased the must have documents. I'm 67 and 286 00:16:37,619 --> 00:16:42,140 KT: was married two years ago, so everyone listen carefully. I 287 00:16:42,140 --> 00:16:46,580 KT: have approximately $1 million that I have worked two jobs 288 00:16:46,580 --> 00:16:47,419 KT: and invested, 289 00:16:47,950 --> 00:16:52,099 KT: with using so many of your suggestions, Suze, she said, 290 00:16:52,109 --> 00:16:55,750 KT: when setting up my trust and will in 2020, I 291 00:16:55,750 --> 00:17:00,580 KT: made my two grown daughters my beneficiaries. My new husband 292 00:17:00,580 --> 00:17:05,060 KT: does not have any retirement plan or savings. He gave 293 00:17:05,060 --> 00:17:07,579 KT: his 401k to his ex-wife. 294 00:17:08,219 --> 00:17:11,139 KT: We built a house together and each put in half 295 00:17:11,140 --> 00:17:15,530 KT: of the deposit money. I'm not working. He is still working. 296 00:17:15,739 --> 00:17:19,719 KT: He pays the mortgage and all of the household bills. 297 00:17:20,099 --> 00:17:23,579 KT: If I died, I would want my family, meaning her 298 00:17:23,579 --> 00:17:27,540 KT: two daughters, to have her financial investments. 299 00:17:28,099 --> 00:17:32,000 KT: She said it sounds selfish, but I'm not comfortable with 300 00:17:32,000 --> 00:17:35,359 KT: him having what I've worked very hard to build. And 301 00:17:35,359 --> 00:17:39,310 KT: when he passed, he would include what money is left 302 00:17:39,310 --> 00:17:42,880 KT: to share with his two grown children as well as 303 00:17:42,880 --> 00:17:47,959 KT: my two daughters, right? My question is, how do I 304 00:17:47,959 --> 00:17:51,560 KT: move forward in a kind and loving manner with a 305 00:17:51,560 --> 00:17:55,400 KT: new married partner that isn't financially secure? This is a 306 00:17:55,400 --> 00:17:56,599 KT: very good question. 307 00:17:57,140 --> 00:18:00,699 KT: Can I keep my daughters as the beneficiaries and keep 308 00:18:00,699 --> 00:18:05,329 KT: my current will, or since married, is it more practical, fair, 309 00:18:05,380 --> 00:18:09,169 KT: and loving to make him the beneficiary? 310 00:18:10,250 --> 00:18:15,379 Suze: Hopefully, my dear Michel, I hope all of your money 311 00:18:15,380 --> 00:18:20,589 Suze: that you entered this relationship with is still in your 312 00:18:20,589 --> 00:18:25,198 Suze: individual name. Now obviously you built a home with him, 313 00:18:25,489 --> 00:18:29,729 Suze: and chances are you own that house in joint tenancy 314 00:18:29,729 --> 00:18:35,359 Suze: with right of survivorship, which means you die. It automatically 315 00:18:35,359 --> 00:18:36,449 Suze: goes to him. 316 00:18:37,209 --> 00:18:41,718 Suze: And when he dies, if his will and or trust 317 00:18:41,719 --> 00:18:46,760 Suze: says it goes to just his children, you have disinherited 318 00:18:46,760 --> 00:18:50,800 Suze: your children, and there is nothing they can do about 319 00:18:50,800 --> 00:18:53,390 Suze: it when it comes to the assets of the house. 320 00:18:54,050 --> 00:18:58,319 Suze: So first of all, you all have to understand everybody 321 00:18:58,319 --> 00:19:03,359 Suze: that's listening right now that how you designate a beneficiary 322 00:19:03,890 --> 00:19:10,170 Suze: overrides the wishes of any trust or will, so anything 323 00:19:10,170 --> 00:19:13,718 Suze: that you own and joint tenancy with right of survivorship 324 00:19:13,719 --> 00:19:17,728 Suze: is automatically going to go to him, even if your 325 00:19:17,729 --> 00:19:22,410 Suze: trust and or will says it's to go to your children. 326 00:19:22,979 --> 00:19:25,839 Suze: So the best way for you to do it is 327 00:19:25,839 --> 00:19:29,640 Suze: to make sure that all of your investments are pay 328 00:19:29,640 --> 00:19:31,839 Suze: and death accounts to them. 329 00:19:32,780 --> 00:19:35,930 Suze: Therefore, it doesn't matter what your trust or will says 330 00:19:35,930 --> 00:19:41,099 Suze: it will go to them in regards to your home. 331 00:19:41,609 --> 00:19:45,250 Suze: Most likely the proper way that you should have owned 332 00:19:45,250 --> 00:19:50,089 Suze: that home is tenancy in common, which means half of 333 00:19:50,089 --> 00:19:54,050 Suze: it goes to your children. When you die, the other 334 00:19:54,050 --> 00:19:57,839 Suze: half would go to his children if those were his beneficiaries. 335 00:19:58,130 --> 00:20:02,599 Suze: Those are then governed by your will and or your trust. 336 00:20:02,729 --> 00:20:06,969 Suze: So that is how probably you should have done it, however. 337 00:20:07,770 --> 00:20:13,060 Suze: What's interesting is let's say you really love each other, 338 00:20:13,630 --> 00:20:16,030 Suze: and the truth of the matter is if one of 339 00:20:16,030 --> 00:20:19,390 Suze: you dies, you want the other to continue to be 340 00:20:19,390 --> 00:20:24,219 Suze: able to live in that house until they have died, 341 00:20:24,750 --> 00:20:29,339 Suze: so you might want to do a life estate in 342 00:20:29,339 --> 00:20:32,550 Suze: that house saying that he can stay there 343 00:20:33,250 --> 00:20:38,839 Suze: until he dies, but upon his death, then your half 344 00:20:38,839 --> 00:20:42,530 Suze: would go to your children, and actually that kind of 345 00:20:42,530 --> 00:20:45,969 Suze: happens on your death, believe it or not, so he 346 00:20:45,969 --> 00:20:48,520 Suze: gets to stay there for as long as he wants. 347 00:20:48,849 --> 00:20:51,968 Suze: So what should you do? You express that how do 348 00:20:51,969 --> 00:20:55,239 Suze: you do this in a loving manner. 349 00:20:56,359 --> 00:20:59,699 Suze: A loving manner is an honest manner. 350 00:21:00,400 --> 00:21:03,750 Suze: It's a manner where you are not afraid to talk 351 00:21:03,750 --> 00:21:08,000 Suze: with your spouse about what you want to see happen. Now, 352 00:21:08,010 --> 00:21:13,218 Suze: obviously you also seem to have more money than he does. 353 00:21:13,930 --> 00:21:17,438 Suze: And he also is probably going to want to leave 354 00:21:17,439 --> 00:21:20,629 Suze: his children something as well. 355 00:21:21,290 --> 00:21:25,459 Suze: So the two of you really need to figure that out. 356 00:21:25,949 --> 00:21:30,030 Suze: The first thing that I would do really is either 357 00:21:30,030 --> 00:21:35,030 Suze: retitle the house as tenants in common with a life 358 00:21:35,030 --> 00:21:39,780 Suze: estate that says you both, either one whoever dies first, 359 00:21:40,030 --> 00:21:43,449 Suze: the other one gets to stay in there until they 360 00:21:43,449 --> 00:21:44,229 Suze: have died. 361 00:21:44,890 --> 00:21:49,089 Suze: However, how do you figure it out with him that 362 00:21:49,089 --> 00:21:51,609 Suze: he is the one that is paying for all the 363 00:21:51,609 --> 00:21:55,448 Suze: expenses of that house, so you, in essence, are getting 364 00:21:55,449 --> 00:22:01,250 Suze: to live there free and participate in the appreciation of 365 00:22:01,250 --> 00:22:05,760 Suze: that piece of real estate. That isn't fair either, my love. 366 00:22:06,349 --> 00:22:11,599 Suze: So either you start to participate in paying for everything 367 00:22:11,599 --> 00:22:15,949 Suze: equally with him so that you get to participate in 368 00:22:15,949 --> 00:22:21,579 Suze: that appreciation or you decide on a price right now 369 00:22:21,869 --> 00:22:26,030 Suze: that you would get if he died first. 370 00:22:26,630 --> 00:22:30,329 Suze: You need to work that out with him so that 371 00:22:30,329 --> 00:22:34,079 Suze: he doesn't feel like it's not fair for him and 372 00:22:34,079 --> 00:22:38,569 Suze: is he holding any feelings about that in terms of 373 00:22:38,569 --> 00:22:41,689 Suze: what would go to his children. So given that I 374 00:22:41,689 --> 00:22:44,800 Suze: can't solve this for you cause I don't know enough, 375 00:22:45,000 --> 00:22:48,079 Suze: you do have what it takes to solve this yourself, 376 00:22:48,609 --> 00:22:50,729 Suze: and that's by sitting down with him, 377 00:22:51,189 --> 00:22:55,929 Suze: in a loving way and telling him what you feel 378 00:22:55,930 --> 00:22:59,339 Suze: and you figuring out how to work it out so 379 00:22:59,339 --> 00:23:02,698 Suze: that he knows your children are going to be getting 380 00:23:02,699 --> 00:23:06,698 Suze: everything that you entered into this relationship with his children 381 00:23:06,699 --> 00:23:10,810 Suze: will get everything that he has entered this relationship with, 382 00:23:10,979 --> 00:23:13,569 Suze: and then you just have to figure out what happens 383 00:23:13,569 --> 00:23:19,310 Suze: with the house. All right, now you know, all right, KT. 384 00:23:19,880 --> 00:23:21,949 KT: So Suze, we're on a roll here, and many of 385 00:23:21,949 --> 00:23:26,189 KT: these questions are very similar that I've selected because they 386 00:23:26,189 --> 00:23:30,550 KT: all seem to have to do with second marriages or changes, 387 00:23:30,599 --> 00:23:34,589 KT: life changes when spouses die or long term care. This 388 00:23:34,589 --> 00:23:38,790 KT: next question is from Susie, she said. Dear Suze, sadly 389 00:23:38,790 --> 00:23:42,310 KT: and unexpectedly at the age of 71, I became a 390 00:23:42,310 --> 00:23:44,699 KT: widow nearly 6 months ago. 391 00:23:45,119 --> 00:23:48,550 KT: We're so sorry for your loss, she said. My husband 392 00:23:48,550 --> 00:23:51,819 KT: was a physician and was still earning a very good living. 393 00:23:52,189 --> 00:23:55,829 KT: We had 46 years together during which we raised five 394 00:23:55,829 --> 00:23:59,790 KT: incredible kids. In addition to all of the grief, emotion, 395 00:23:59,829 --> 00:24:04,829 KT: and heartbreak, I find myself at a financial crossroad. We 396 00:24:04,829 --> 00:24:07,819 KT: still have a mortgage on our home in West LA, 397 00:24:08,069 --> 00:24:09,910 KT: which is a pretty expensive neighborhood. 398 00:24:10,339 --> 00:24:16,329 KT: She said my mortgage comes to approximately $7,100 a month, 399 00:24:16,739 --> 00:24:20,939 KT: yet I only receive close to $4,000 a month in 400 00:24:20,939 --> 00:24:26,679 KT: Social Security and unemployment insurance. Between my mortgage and other expenses, 401 00:24:26,739 --> 00:24:30,489 KT: I find myself going through my savings all too quickly, 402 00:24:30,699 --> 00:24:34,859 KT: and this scares me. Maybe it's time to sell my home. 403 00:24:35,569 --> 00:24:39,060 KT: However, Suze, this is what Susie wants you to know, 404 00:24:39,349 --> 00:24:42,109 KT: she said. We redid our kitchen five years ago, and 405 00:24:42,109 --> 00:24:45,119 KT: I put my heart and soul into it. I have 406 00:24:45,119 --> 00:24:49,389 KT: an Instagram called Kosher Mexican where I cook in my 407 00:24:49,390 --> 00:24:52,790 KT: beautiful kitchen and share recipes from my background. 408 00:24:53,199 --> 00:24:57,109 KT: This little Instagram page of mine has been my lifeline 409 00:24:57,430 --> 00:25:00,869 KT: and has really helped me through this time in being 410 00:25:00,869 --> 00:25:05,069 KT: creative and really to express my grief and in doing 411 00:25:05,069 --> 00:25:09,270 KT: so maybe I'm helping others. What should I do, Suze? 412 00:25:09,709 --> 00:25:11,500 Suze: Susie, Susie, Susie. 413 00:25:12,060 --> 00:25:16,489 Suze: I always say you are to do nothing for six 414 00:25:16,489 --> 00:25:20,800 Suze: months to one year, preferably even longer, usually two years, 415 00:25:20,930 --> 00:25:24,530 Suze: after you have suffered the loss of a loved one. 416 00:25:24,849 --> 00:25:27,680 Suze: And while I know that you are going into your 417 00:25:27,680 --> 00:25:32,208 Suze: savings right now, I don't think that you are quite 418 00:25:32,209 --> 00:25:37,569 Suze: ready to sell the house. Now eventually it would seem 419 00:25:37,569 --> 00:25:39,849 Suze: to me you are going to have to do so. 420 00:25:40,550 --> 00:25:43,800 Suze: But I would just put aside an amount of money 421 00:25:43,800 --> 00:25:47,599 Suze: from your savings that would allow you to stay there 422 00:25:47,599 --> 00:25:51,280 Suze: for at least 6 more months, OK. 423 00:25:52,239 --> 00:25:56,660 Suze: It's only gonna be what, another $42,000 or another $50,000 424 00:25:56,680 --> 00:26:01,719 Suze: or even if it's $100,000 you need that time and 425 00:26:01,719 --> 00:26:05,239 Suze: you also need that time of being able to do 426 00:26:05,239 --> 00:26:07,329 Suze: your Instagram account. 427 00:26:07,969 --> 00:26:13,280 Suze: And to show others through your cooking how grief can 428 00:26:13,280 --> 00:26:17,459 Suze: really find a place that there is some joy in 429 00:26:17,459 --> 00:26:21,839 Suze: it after all. I have to tell you the one 430 00:26:21,839 --> 00:26:25,069 Suze: thing that I loved that you said in here. 431 00:26:25,780 --> 00:26:30,849 Suze: Is that you had 46 years together and which you 432 00:26:30,849 --> 00:26:38,250 Suze: raised five incredible kids. If you love this house and 433 00:26:38,250 --> 00:26:41,199 Suze: this is where you want to stay for a while, 434 00:26:41,930 --> 00:26:45,680 Suze: I want you to figure out how much per month 435 00:26:45,930 --> 00:26:49,129 Suze: you are going into your savings to be able to 436 00:26:49,130 --> 00:26:49,718 Suze: stay there. 437 00:26:50,630 --> 00:26:55,670 Suze: And I want you to bring your five incredible kids 438 00:26:55,670 --> 00:27:00,619 Suze: together cause I have a feeling they're also making an 439 00:27:00,619 --> 00:27:06,780 Suze: incredible income and are very self-sufficient and maybe now is 440 00:27:06,780 --> 00:27:07,739 Suze: the time. 441 00:27:08,550 --> 00:27:12,010 Suze: That they will really show you how incredible they are, 442 00:27:12,260 --> 00:27:15,219 Suze: and they will step up and say, you know what, Mom, 443 00:27:15,819 --> 00:27:19,619 Suze: the five of us are going to give you $2000 444 00:27:19,619 --> 00:27:24,060 Suze: a month each, and that should probably allow you that 445 00:27:24,060 --> 00:27:30,050 Suze: extra $10,000 to stay in this house, at least for now, 446 00:27:30,060 --> 00:27:34,219 Suze: without you having to go in your savings. Now that 447 00:27:34,219 --> 00:27:36,540 Suze: doesn't mean that's what they're going to have to do forever. 448 00:27:37,329 --> 00:27:40,520 Suze: Cause there will come a time when you are ready 449 00:27:40,930 --> 00:27:44,239 Suze: that you will put that house up on the market, 450 00:27:44,770 --> 00:27:49,449 Suze: and now you will cut your expenses dramatically and you 451 00:27:49,449 --> 00:27:52,680 Suze: will have a lot more in savings and then maybe 452 00:27:52,680 --> 00:27:54,800 Suze: one of them will say, Mom, come live with me. 453 00:27:55,319 --> 00:27:58,609 Suze: Mom here mom there we don't know what the future 454 00:27:58,609 --> 00:28:03,129 Suze: holds for you that way. But for right now, secure 455 00:28:03,130 --> 00:28:04,890 Suze: your future with number one. 456 00:28:06,160 --> 00:28:08,879 Suze: Knowing you are going to stay there for another 6 457 00:28:08,880 --> 00:28:11,680 Suze: months and get joy out of it, know that you 458 00:28:11,680 --> 00:28:15,198 Suze: are going to dip in your savings if your kids 459 00:28:15,199 --> 00:28:18,399 Suze: don't want to step up for whatever reason to meet 460 00:28:18,400 --> 00:28:21,500 Suze: your needs, but I think they're going to, by the way, 461 00:28:21,760 --> 00:28:26,719 Suze: and just know that and give yourself a date 6 462 00:28:26,719 --> 00:28:30,438 Suze: months from now that you will make a decision as 463 00:28:30,439 --> 00:28:34,520 Suze: to what you think you should do at that point. 464 00:28:34,780 --> 00:28:38,410 Suze: I can tell you, in my opinion, you need to 465 00:28:38,410 --> 00:28:42,689 Suze: sell this home. You just do, but you don't need 466 00:28:42,689 --> 00:28:47,709 Suze: to do it right now, so give yourself time. Allow 467 00:28:47,709 --> 00:28:48,810 Suze: yourself to mourn. 468 00:28:49,640 --> 00:28:54,469 Suze: And from there you'll see the right moves will be made. 469 00:28:55,500 --> 00:28:57,589 KT: That's a beautiful wrap, Suze. 470 00:28:57,780 --> 00:29:02,489 Suze: All right, so everybody, things happen in life. 471 00:29:03,800 --> 00:29:06,839 Suze: All kinds of unexpected things, whether it's a long term 472 00:29:06,839 --> 00:29:11,199 Suze: care need, or it's a house that you can't afford 473 00:29:11,199 --> 00:29:13,839 Suze: anymore because of a death and loss of income. 474 00:29:14,520 --> 00:29:18,280 Suze: But that is why it is so, so important that 475 00:29:18,280 --> 00:29:23,219 Suze: you do take the actions today to protect your tomorrows 476 00:29:23,219 --> 00:29:27,790 Suze: and whether that's by getting a living revocable trust, a will, 477 00:29:27,839 --> 00:29:30,790 Suze: an advanced directive, and durable power of attorney for health care, 478 00:29:31,000 --> 00:29:35,520 Suze: so you get your estate in order, go to musthavedocs.com 479 00:29:35,520 --> 00:29:37,010 Suze: to check that out. 480 00:29:37,660 --> 00:29:42,300 Suze: Or a long term care insurance policy, go on the 481 00:29:42,300 --> 00:29:46,140 Suze: Women and Money community app and scroll down on the 482 00:29:46,140 --> 00:29:48,969 Suze: wall there. You'll see it on one of those little boxes, 483 00:29:49,260 --> 00:29:54,170 Suze: long term care insurance, and have a conversation with Phyllis Shelton, who, 484 00:29:54,180 --> 00:29:57,300 Suze: in my opinion, is one of the experts in long 485 00:29:57,300 --> 00:29:58,209 Suze: term care. 486 00:29:58,739 --> 00:30:04,079 Suze: But take the actions today to protect your tomorrows cause 487 00:30:04,079 --> 00:30:08,989 Suze: you just never know what tomorrow will bring. So until 488 00:30:09,400 --> 00:30:12,359 Suze: next week with Miss Travis, there's only one thing that 489 00:30:12,359 --> 00:30:16,709 Suze: we want you to remember, and KT, this is your line. 490 00:30:17,469 --> 00:30:20,500 KT: We want you to make your money, make more money. 491 00:30:21,219 --> 00:30:24,869 Suze: And the way that you do that is you plan 492 00:30:24,869 --> 00:30:29,619 Suze: today for the what ifs of tomorrow. All of you 493 00:30:29,619 --> 00:30:32,900 Suze: stay safe, stay healthy, and once again know we love 494 00:30:32,900 --> 00:30:34,969 Suze: you all so very, very much. 495 00:30:35,420 --> 00:30:36,209 KT: Bye bye.