1 00:00:30,979 --> 00:00:36,180 Suze: January 23rd, 2025. Welcome everybody to the Women and Money 2 00:00:36,180 --> 00:00:41,348 Suze: podcast as well as everybody smart enough to listen. Today 3 00:00:41,348 --> 00:00:46,099 Suze: is Ask KT and Suze Anything, and this is where 4 00:00:46,098 --> 00:00:49,189 Suze: you can, if you want, write in a question to 5 00:00:49,189 --> 00:00:55,529 Suze: the Ask Suze SUZE podcast at gmail.com, and if chosen, we. 6 00:00:56,069 --> 00:00:59,970 Suze: We'll answer it on the podcast. Now, KT, did you 7 00:00:59,970 --> 00:01:02,880 Suze: notice what I just said? We, we're gonna 8 00:01:02,880 --> 00:01:03,150 Suze: answer. 9 00:01:03,880 --> 00:01:06,919 KT: All right. Here's KT's first question to Suze. Who's gonna win the 10 00:01:06,919 --> 00:01:07,830 KT: Super Bowl? 11 00:01:08,720 --> 00:01:10,830 Suze: Well, truthfully, I hope. 12 00:01:11,220 --> 00:01:16,250 Suze: The Commanders are... from Washington KT are part of the 13 00:01:16,250 --> 00:01:21,250 Suze: Super Bowl. Who's gonna win it will depend seriously on 14 00:01:21,250 --> 00:01:24,849 Suze: who wins between Kansas City and the Bills. 15 00:01:25,129 --> 00:01:25,889 KT: I thought you want the 16 00:01:25,889 --> 00:01:26,639 KT: Bills. 17 00:01:27,250 --> 00:01:29,610 Suze: I love Josh Allen. I think 18 00:01:29,610 --> 00:01:30,010 KT: the most 19 00:01:30,010 --> 00:01:31,250 KT: valuable player, baby. 20 00:01:31,370 --> 00:01:32,620 Suze: Well, he's up for it, right? 21 00:01:32,690 --> 00:01:33,300 KT: He'll get it. 22 00:01:33,449 --> 00:01:36,330 Suze: We'll see. But the truth of the matter is we'll 23 00:01:36,330 --> 00:01:39,419 Suze: have to see. They have to get by Kansas City. 24 00:01:39,980 --> 00:01:43,009 Suze: And I hate this because you know how much I love Kansas City. 25 00:01:43,010 --> 00:01:44,610 KT: She loves Patrick, her boyfriend. 26 00:01:44,809 --> 00:01:47,739 Suze: If I were a betting woman, I would not be 27 00:01:47,750 --> 00:01:50,620 Suze: betting against the Buffalo Bills at this point. 28 00:01:51,089 --> 00:01:53,449 KT: The Bills, the Bills really want this, and... 29 00:01:53,449 --> 00:01:54,414 Suze: They both want it KT. 30 00:01:54,414 --> 00:01:58,080 KT: And they're good in cold weather. They were playing in snow, 31 00:01:58,290 --> 00:02:00,970 KT: so I'm not a big football person, everybody. 32 00:02:01,379 --> 00:02:04,120 KT: But I have to tell you it was fun watching 33 00:02:04,120 --> 00:02:09,119 KT: these guys slipping and sliding all over the snow. I 34 00:02:09,119 --> 00:02:12,850 KT: felt bad though they were getting hurt pretty bad. All right, 35 00:02:13,000 --> 00:02:17,089 KT: so first question we have is from Cathy. She said, Suze, 36 00:02:17,320 --> 00:02:21,160 KT: I just discovered you had a podcast. She said, I 37 00:02:21,160 --> 00:02:24,279 KT: was a caller on your TV show maybe 14 or 38 00:02:24,279 --> 00:02:27,399 KT: 15 years ago. I've lost track of time. 39 00:02:27,839 --> 00:02:32,038 KT: I must have been about 36 years old. I'm now 51. 40 00:02:32,589 --> 00:02:37,800 KT: My husband was awful back then about finances. For example, 41 00:02:38,029 --> 00:02:42,059 KT: I discovered he put my engagement ring on a credit card. 42 00:02:42,270 --> 00:02:43,470 Suze: Oh, I remember this. 43 00:02:43,508 --> 00:02:46,190 KT: Yeah, this was a great show. I remember this too. 44 00:02:46,350 --> 00:02:47,110 Suze: Did they get divorced? 45 00:02:47,190 --> 00:02:49,559 KT: Wait, wait, wait, she said I paid off the balance. 46 00:02:49,630 --> 00:02:52,740 KT: He paid me back within a year. I called in 47 00:02:53,070 --> 00:02:56,839 KT: because I suspected my husband was not paying his credit 48 00:02:56,839 --> 00:02:58,910 KT: card and other bills on time. 49 00:02:59,014 --> 00:03:00,065 Suze: And she was right. 50 00:03:00,065 --> 00:03:03,645 KT: So wait, she listened to this, everyone, she said, so 51 00:03:03,645 --> 00:03:07,114 KT: I opened his mail and I was right when I 52 00:03:07,115 --> 00:03:10,323 KT: confronted him about this and told him his bad financial 53 00:03:10,324 --> 00:03:14,883 KT: habits would prevent us from getting the best interest rates 54 00:03:14,883 --> 00:03:18,163 KT: on car loans or mortgages and that he could be 55 00:03:18,163 --> 00:03:22,163 KT: ruining both of our futures. He kept this up and 56 00:03:22,163 --> 00:03:25,485 KT: his only reaction. Listen to this, everyone. 57 00:03:25,820 --> 00:03:30,080 KT: Her husband's only reaction was telling me that opening his 58 00:03:30,080 --> 00:03:31,750 KT: mail was illegal. 59 00:03:33,380 --> 00:03:37,220 KT: Wait. And then she said, so Suze, your only advice, 60 00:03:37,320 --> 00:03:38,740 KT: if I remember correctly, 61 00:03:38,979 --> 00:03:40,380 Suze: Oh you remember correctly... 62 00:03:40,380 --> 00:03:41,910 KT: Was to divorce him. 63 00:03:42,020 --> 00:03:43,259 Suze: Divorce, divorce, divorce. 64 00:03:43,339 --> 00:03:46,529 KT: I have to admit I was stunned and angry at 65 00:03:46,529 --> 00:03:47,630 KT: you at the time. 66 00:03:47,660 --> 00:03:48,619 Suze: I'm sure you were. 67 00:03:48,619 --> 00:03:51,229 KT: Right? Truth prevailed. She didn't want to hear the truth. 68 00:03:51,339 --> 00:03:52,100 Suze: Most people don't. 69 00:03:52,220 --> 00:03:56,339 KT: So then Cathy said, however, friends and family had also 70 00:03:56,339 --> 00:04:00,220 KT: seen the episode, and he was basically shamed 71 00:04:00,990 --> 00:04:05,869 KT: into permanently changing his behavior, his credit card score is 72 00:04:05,869 --> 00:04:12,110 KT: now consistently around 830. That's great. And while our net 73 00:04:12,110 --> 00:04:15,940 KT: worth was around 600,000 when I was on your show, 74 00:04:16,230 --> 00:04:19,709 KT: mostly in equity in our condo and retirement accounts, no 75 00:04:19,709 --> 00:04:25,070 KT: real savings, it is now about 3.7 million. 76 00:04:25,649 --> 00:04:29,729 KT: We bought a house in 2015. We'll probably have it 77 00:04:29,730 --> 00:04:33,079 KT: paid off at the 15 year mark. We also hope 78 00:04:33,079 --> 00:04:37,290 KT: to retire in our fifties. Watching your show started me 79 00:04:37,290 --> 00:04:42,730 KT: on the path to financial responsibility and independence, and my 80 00:04:42,730 --> 00:04:45,219 KT: husband being shamed on TV 81 00:04:45,303 --> 00:04:49,375 KT: for his poor financial habits and behavior and that they 82 00:04:49,375 --> 00:04:53,295 KT: were grounds for divorce gave him a really big kick 83 00:04:53,295 --> 00:04:57,295 KT: in the butt that he needed to change his ways. 84 00:04:57,454 --> 00:05:03,375 KT: He is now obsessed with budgeting and knowing our investments, balances, returns, 85 00:05:03,613 --> 00:05:04,774 KT: interest rates, etc. 86 00:05:05,290 --> 00:05:08,529 KT: And then Cathy goes on to say, so Suze, thank 87 00:05:08,529 --> 00:05:13,260 KT: you for that long ago encounter on your show. Do 88 00:05:13,260 --> 00:05:13,940 KT: you love that? 89 00:05:14,019 --> 00:05:17,339 Suze: I love that, but it is true. So like Oprah 90 00:05:17,339 --> 00:05:19,339 Suze: would call it, the Suze smackdown. 91 00:05:20,209 --> 00:05:25,308 Suze: And sometimes you have to be smacked down in public, 92 00:05:25,459 --> 00:05:29,368 Suze: believe it or not, in order to pick yourself up, 93 00:05:29,619 --> 00:05:33,649 Suze: because as long as you are able to live a lie, 94 00:05:34,059 --> 00:05:37,928 Suze: as long as you're able to make others think something 95 00:05:37,928 --> 00:05:39,920 Suze: about you, you have the money, you can do this, 96 00:05:39,980 --> 00:05:42,140 Suze: you can put it on your credit, whatever, and they 97 00:05:42,140 --> 00:05:45,859 Suze: think that you're doing better than you're doing, you continue 98 00:05:45,859 --> 00:05:49,488 Suze: to deceive yourself and others as soon as others know 99 00:05:49,488 --> 00:05:49,820 Suze: the truth 100 00:05:50,070 --> 00:05:54,809 Suze: about you, guess what? It helps you stand in your 101 00:05:54,809 --> 00:05:58,579 Suze: own truth, which is why KT, I always tell people 102 00:05:58,579 --> 00:06:02,260 Suze: who have credit card debt, tell everybody you know, tell 103 00:06:02,260 --> 00:06:05,140 Suze: everybody you know the truth about yourself, because once you 104 00:06:05,140 --> 00:06:05,940 Suze: do that, 105 00:06:06,480 --> 00:06:09,010 Suze: It's hard to lie anymore. 106 00:06:09,049 --> 00:06:09,609 KT: It's freeing. 107 00:06:09,769 --> 00:06:11,339 Suze: It's freeing. All right, next, KT. 108 00:06:11,570 --> 00:06:15,570 KT: So Giselle wrote in, Hi, Suze. I've recently learned about 109 00:06:15,570 --> 00:06:20,268 KT: fixed income annuities. What are your thoughts on them and which, 110 00:06:20,329 --> 00:06:23,529 KT: if any, do you think are worth investing in? 111 00:06:23,799 --> 00:06:27,920 KT: I'm thinking about opening one up within my Roth IRA. 112 00:06:28,109 --> 00:06:31,269 Suze: Yeah, so Giselle, here's what you need to understand and 113 00:06:31,269 --> 00:06:36,779 Suze: everybody else as well. What is a fixed income annuity? Remember, 114 00:06:36,910 --> 00:06:41,459 Suze: an annuity is a contract with an insurance company, and 115 00:06:41,510 --> 00:06:44,190 Suze: because it's with an insurance company, even though you're not 116 00:06:44,190 --> 00:06:45,549 Suze: getting any insurance. 117 00:06:45,704 --> 00:06:50,644 Suze: The investments in an annuity are tax deferred. You do 118 00:06:50,644 --> 00:06:55,794 Suze: not pay taxes on them until you take the money out. 119 00:06:56,045 --> 00:06:58,445 Suze: But when you take it out, it's taxed to you 120 00:06:58,445 --> 00:07:02,915 Suze: as ordinary income. If you pass it down to your beneficiaries, 121 00:07:03,244 --> 00:07:07,484 Suze: they take it out. It's taxed to them as ordinary income. 122 00:07:07,790 --> 00:07:12,450 Suze: And there's usually a 5, 6, or 7 year surrender 123 00:07:12,450 --> 00:07:14,690 Suze: period where if you take the money out of the 124 00:07:14,690 --> 00:07:18,570 Suze: annuity before the surrender charge is up, it could cost 125 00:07:18,570 --> 00:07:22,089 Suze: you 4, 5 or 6% and you have to be 126 00:07:22,089 --> 00:07:25,250 Suze: 59 and a half years of age to take out money 127 00:07:25,535 --> 00:07:29,924 Suze: from the annuity or you're gonna get a penalty from 128 00:07:29,924 --> 00:07:35,015 Suze: the federal government so annuities are usually for those people 129 00:07:35,015 --> 00:07:40,214 Suze: who are in retirement years. A fixed income annuity is 130 00:07:40,214 --> 00:07:42,855 Suze: where the interest rate is fixed. 131 00:07:43,700 --> 00:07:46,970 Suze: Now it can be fixed for 1 year, 3 years, 132 00:07:47,100 --> 00:07:50,700 Suze: 5 years, 7 years, but most of the time it's 133 00:07:50,700 --> 00:07:54,890 Suze: fixed for the first year to sucker you in. And 134 00:07:54,890 --> 00:07:57,690 Suze: then in years 2, 3, 4, 5, and so on, 135 00:07:57,779 --> 00:08:01,619 Suze: the surrender period years, it goes down and down to 136 00:08:01,619 --> 00:08:06,260 Suze: make up for that first year of high interest rates, so. 137 00:08:06,869 --> 00:08:12,100 Suze: There are what's called CD fixed annuities where the interest 138 00:08:12,100 --> 00:08:15,339 Suze: rate is fixed like a CD for 4 years or 139 00:08:15,339 --> 00:08:18,970 Suze: 5 years or the amount of time in the surrender period, 140 00:08:18,980 --> 00:08:21,140 Suze: which are the ones that I happen to like if 141 00:08:21,140 --> 00:08:24,779 Suze: you want a fixed annuity. Now I know I'm going 142 00:08:24,779 --> 00:08:27,290 Suze: long into this, KT, but I think people should know. 143 00:08:27,890 --> 00:08:31,420 Suze: Remember the interest that the annuity will pay you. 144 00:08:32,119 --> 00:08:38,020 Suze: You're not paying taxes on it because it's in the annuity. You, however, Giselle, 145 00:08:38,309 --> 00:08:42,869 Suze: want to put an annuity within a Roth IRA, which 146 00:08:42,869 --> 00:08:49,099 Suze: is a tax-free account in most cases. Therefore, I would 147 00:08:49,099 --> 00:08:51,830 Suze: not be doing it within a Roth 148 00:08:51,919 --> 00:08:55,919 Suze: IRA. Why not just buy a CD at Alliant Credit 149 00:08:55,919 --> 00:08:59,659 Suze: Union with a Roth IRA or why not? If you 150 00:08:59,659 --> 00:09:03,260 Suze: have a Roth IRA open somewhere already, why not do 151 00:09:03,260 --> 00:09:06,070 Suze: a 5 year Treasury note or a 10 year Treasury 152 00:09:06,070 --> 00:09:08,510 Suze: note and lock in that interest for that period of 153 00:09:08,510 --> 00:09:11,700 Suze: time and you're not gonna pay taxes on it anyway. 154 00:09:12,030 --> 00:09:17,130 Suze: So therefore I would not do an annuity within any 155 00:09:17,130 --> 00:09:20,270 Suze: type of retirement account, however. 156 00:09:21,200 --> 00:09:23,959 Suze: At your age, because KT just gave me this, you're 157 00:09:23,960 --> 00:09:27,549 Suze: in your early 50s. Why do you want an annuity? 158 00:09:28,080 --> 00:09:29,919 Suze: Why don't you want to take some of this money 159 00:09:29,919 --> 00:09:34,039 Suze: and dollar cost average into good paying dividend stocks that 160 00:09:34,039 --> 00:09:37,320 Suze: could pay you 4, 5, or 6% and also give 161 00:09:37,320 --> 00:09:40,460 Suze: you growth? So that's probably what I would be doing 162 00:09:40,460 --> 00:09:42,799 Suze: in my Roth IRA if I were you. All right, KT. 163 00:09:42,960 --> 00:09:47,468 KT: Right, on the same topic of CDs, I just want 164 00:09:47,469 --> 00:09:49,679 KT: this next question from Jennifer is good. I want you 165 00:09:49,679 --> 00:09:50,599 KT: to clarify it. 166 00:09:51,070 --> 00:09:54,789 KT: She said, I've heard you be quite emphatic about never 167 00:09:54,789 --> 00:09:56,619 KT: buying a callable CD. 168 00:09:56,989 --> 00:09:59,840 Suze: Wait, KT, can you imagine me being emphatic about anything? 169 00:10:01,239 --> 00:10:04,069 KT: What am I missing in this scenario, she said. I 170 00:10:04,070 --> 00:10:08,599 KT: bought a 2 year callable CD via Vanguard with a 171 00:10:08,599 --> 00:10:14,010 KT: major bank. The rate is 4.6%. It's callable in 6 months. 172 00:10:14,320 --> 00:10:17,799 KT: If I just bought the 6 month CD, it would 173 00:10:17,799 --> 00:10:22,159 KT: have only been 4.2. So even if the bank calls 174 00:10:22,159 --> 00:10:22,429 KT: the CD 175 00:10:22,669 --> 00:10:26,140 KT: in 6 months I've earned more than I put in 176 00:10:26,429 --> 00:10:30,400 KT: the 6 month or kept the money in my settlement fund. 177 00:10:30,630 --> 00:10:30,719 Suze: Yeah. 178 00:10:31,380 --> 00:10:35,189 KT: So, and now she's saying clearly, if my intent with 179 00:10:35,190 --> 00:10:39,150 KT: the money is not long term retirement saving but a 180 00:10:39,150 --> 00:10:42,909 KT: more short term saving in my brokerage account, is this 181 00:10:42,909 --> 00:10:44,030 KT: such a no no. 182 00:10:44,270 --> 00:10:46,929 KT: I still get the interest on the 1st 6 months 183 00:10:46,929 --> 00:10:49,689 KT: it was held, right? She must be missing something. 184 00:10:50,330 --> 00:10:52,520 Suze: Well, here's the thing, you don't know that they're gonna 185 00:10:52,520 --> 00:10:56,890 Suze: call it in 6 months, right? So it's callable, so 186 00:10:56,890 --> 00:10:58,710 Suze: they can call it any time. 187 00:10:58,710 --> 00:10:59,679 KT: Tell everybody what that means. 188 00:10:59,690 --> 00:11:02,840 Suze: Right, everybody, so first of all, what is a callable CD? 189 00:11:02,859 --> 00:11:06,250 Suze: Obviously you all know a certificate of deposit. You put 190 00:11:06,250 --> 00:11:10,570 Suze: money in and the certificate of deposit has a maturity date. 191 00:11:10,729 --> 00:11:14,000 Suze: And for that entire maturity date it is fixed at 192 00:11:14,000 --> 00:11:17,840 Suze: the interest rate that you bought it at so you 193 00:11:17,840 --> 00:11:20,119 Suze: know for like 2 years if it's a 2 year 194 00:11:20,119 --> 00:11:24,118 Suze: CD for all 2 years you're going to get that 195 00:11:24,119 --> 00:11:29,119 Suze: interest rate. A callable CD simply says we'll give you 196 00:11:29,119 --> 00:11:31,960 Suze: this interest, but we can call it, 197 00:11:32,710 --> 00:11:35,429 Suze: any time we want or in the 1st 6 months 198 00:11:35,429 --> 00:11:38,820 Suze: or after that or for the entire period because if 199 00:11:38,820 --> 00:11:42,190 Suze: interest rates happen to go down, then we can call 200 00:11:42,190 --> 00:11:45,030 Suze: it back from you because we don't want to pay 201 00:11:45,030 --> 00:11:49,150 Suze: you a higher interest rate when interest rates have already 202 00:11:49,150 --> 00:11:53,109 Suze: gone down so if interest rates then go down. 203 00:11:53,619 --> 00:11:57,640 Suze: And the CD is called from you, then it's difficult 204 00:11:57,640 --> 00:12:01,500 Suze: to reinvest that money at a higher interest rate if 205 00:12:01,500 --> 00:12:06,169 Suze: interest rates have gone down. That's what a callable CD 206 00:12:06,169 --> 00:12:10,169 Suze: is versus a fixed rate. You're not missing anything, Jennifer. 207 00:12:10,210 --> 00:12:12,250 Suze: You can do that if you want. 208 00:12:12,960 --> 00:12:15,890 Suze: But you also could have simply put your money in 209 00:12:15,890 --> 00:12:19,238 Suze: a money market account, gotten that kind of interest rate, 210 00:12:19,530 --> 00:12:22,199 Suze: maybe in a treasury, so you didn't have to pay 211 00:12:22,200 --> 00:12:25,130 Suze: interest on it in terms of the state bracket you 212 00:12:25,130 --> 00:12:28,289 Suze: may be in, so you can do that if you 213 00:12:28,289 --> 00:12:32,089 Suze: want for short periods of time. Now I'm assuming that 214 00:12:32,090 --> 00:12:36,489 Suze: it's callable in 6 months, meaning that they can't call 215 00:12:36,489 --> 00:12:38,919 Suze: it for 6 months. 216 00:12:39,320 --> 00:12:44,020 Suze: But can they call it after 6 months? So if 217 00:12:44,020 --> 00:12:47,820 Suze: this CD goes on for let's say a year and 218 00:12:47,820 --> 00:12:52,820 Suze: a half and now they decide to call it when 219 00:12:52,820 --> 00:12:55,739 Suze: interest rates have gone down significantly. 220 00:12:56,570 --> 00:13:00,039 Suze: Then were you going to reinvest that money at that rate, 221 00:13:00,650 --> 00:13:04,319 Suze: so I still don't like callable CDs. I just don't. 222 00:13:04,570 --> 00:13:07,299 Suze: Why not lock in for the period that you want 223 00:13:07,570 --> 00:13:10,450 Suze: and not play with it? That's just my opinion, but 224 00:13:10,450 --> 00:13:13,119 Suze: you can do that if you want. All right. 225 00:13:13,549 --> 00:13:17,200 KT: My next question, it's not even a question. It's a, 226 00:13:17,570 --> 00:13:20,650 KT: I picked this because the subject line said, have we 227 00:13:20,650 --> 00:13:24,010 KT: created a monster? So it, it grabbed my attention. 228 00:13:24,380 --> 00:13:26,919 KT: And this is from Julie, who's a mom. She said, 229 00:13:27,039 --> 00:13:30,679 KT: Dear Suze and KT, we've been living below our means 230 00:13:30,679 --> 00:13:33,599 KT: our whole married lives and now have a net worth 231 00:13:33,599 --> 00:13:39,479 KT: of over $6 million. My husband constantly stresses to my 232 00:13:39,479 --> 00:13:44,400 KT: adult daughters the necessity of saving and investing early. My 233 00:13:44,400 --> 00:13:48,989 KT: 23-year old daughter is a full-time graduate student and has 234 00:13:49,195 --> 00:13:56,594 KT: a Roth IRA and non-retirement investments of over $250,000. She 235 00:13:56,594 --> 00:13:59,875 KT: has accumulated this through jobs she's had for years, as 236 00:13:59,875 --> 00:14:02,875 KT: well as our annual gift of a match to what 237 00:14:02,875 --> 00:14:07,905 KT: she contributes to her wrath. In my opinion, ready for this, everyone? 238 00:14:08,155 --> 00:14:11,275 KT: This is from Mom: In my opinion, she has a 239 00:14:11,275 --> 00:14:13,505 KT: toxic attitude towards money. 240 00:14:15,070 --> 00:14:20,320 KT: She constantly says she cannot afford things and never offers 241 00:14:20,320 --> 00:14:23,330 KT: to pay for anything when she's on a date with 242 00:14:23,330 --> 00:14:27,280 KT: her boyfriend or when she's with friends or family. She 243 00:14:27,280 --> 00:14:31,630 KT: studies very hard, always looking for ways to make more money, 244 00:14:32,039 --> 00:14:35,479 KT: and even though she's stressed with her schoolwork, what can 245 00:14:35,479 --> 00:14:38,549 KT: we do to shift her miserly ways. 246 00:14:39,210 --> 00:14:41,719 KT: Mom thinks her daughter's a miser. 247 00:14:42,010 --> 00:14:42,960 Suze: This is your quizzy. 248 00:14:43,150 --> 00:14:45,640 KT: All right. Oh, this is my quizzy 249 00:14:45,640 --> 00:14:46,950 Suze: Pop quizzy. 250 00:14:47,090 --> 00:14:49,799 KT: Oh, so what's the, what's the quizzy here? 251 00:14:50,010 --> 00:14:51,809 Suze: The quizzy is what should she do to 252 00:14:51,809 --> 00:14:54,849 KT: I wouldn't do a thing. I wouldn't do a thing, Mom. 253 00:14:55,010 --> 00:14:58,849 KT: I don't think she's miserly. I just think she's super 254 00:14:58,849 --> 00:15:04,330 KT: conscious of wanting to accumulate savings and have a very 255 00:15:04,330 --> 00:15:06,809 KT: secure lifestyle and future. 256 00:15:07,719 --> 00:15:10,409 KT: I don't think she's miserly at all, but I do 257 00:15:10,409 --> 00:15:12,690 KT: think that maybe, you know, 258 00:15:12,869 --> 00:15:16,840 Suze: Mom's saying she's miserly because she never, she never pays 259 00:15:16,840 --> 00:15:21,140 Suze: for anything because she doesn't think she can afford it, yeah. 260 00:15:21,909 --> 00:15:23,280 Suze: So what do you think about that? 261 00:15:24,840 --> 00:15:28,500 KT: I think the daughter's 23 years old. Any kid that's 262 00:15:28,500 --> 00:15:32,119 KT: 23 that wants to work and earn money and save 263 00:15:32,119 --> 00:15:35,760 KT: money and accumulate money is a good thing. I don't 264 00:15:35,760 --> 00:15:39,280 KT: think that she's miserly, but maybe, mom, you ought to say, OK, 265 00:15:39,359 --> 00:15:42,719 KT: we're all going out and everyone's chipping in. And if 266 00:15:42,719 --> 00:15:43,169 KT: you can't. 267 00:15:43,335 --> 00:15:44,885 KT: Afford it, don't come with us. 268 00:15:45,294 --> 00:15:46,094 Suze: Ding ding ding ding. 269 00:15:46,094 --> 00:15:47,174 KT: That's what I would do 270 00:15:47,695 --> 00:15:52,455 Suze: Here's the thing, Julie, is these younger years of your 271 00:15:52,455 --> 00:15:58,015 Suze: daughter in their twenties, anybody that's in their twenties, these 272 00:15:58,015 --> 00:16:01,604 Suze: are the financial foundation years. 273 00:16:01,940 --> 00:16:07,890 Suze: That you cannot pass up because these are her compounding 274 00:16:07,890 --> 00:16:12,729 Suze: years which means for every dollar she saves over the 275 00:16:12,729 --> 00:16:17,690 Suze: next 40 years when she's in her 60s is gonna 276 00:16:17,690 --> 00:16:22,330 Suze: multiply so much because of compounding the growth of the 277 00:16:22,330 --> 00:16:26,570 Suze: money at 23 gets to earn money. The earning money 278 00:16:26,570 --> 00:16:28,679 Suze: on the growth of the money gets to earn money, 279 00:16:28,690 --> 00:16:31,729 Suze: and it compounds to magnificent amounts 280 00:16:31,820 --> 00:16:36,809 Suze: of money far beyond your $6 million that I think 281 00:16:36,809 --> 00:16:40,679 Suze: you say you have a net worth of. Your daughter 282 00:16:40,679 --> 00:16:44,969 Suze: is on the path of being far wealthier than both 283 00:16:44,969 --> 00:16:48,599 Suze: you and your husband, just so you know that's Number one. 284 00:16:48,880 --> 00:16:51,409 Suze: Number two, don't try to change her. 285 00:16:51,950 --> 00:16:56,049 Suze: You have to let her change herself. Somewhere she picked 286 00:16:56,049 --> 00:17:00,039 Suze: up the desire to want to have money to be secure. 287 00:17:00,250 --> 00:17:02,400 Suze: I don't know where she learned that from. It doesn't 288 00:17:02,400 --> 00:17:06,050 Suze: even matter. The wise do not matter. You need to 289 00:17:06,050 --> 00:17:09,890 Suze: respect her decision and not make her feel that it 290 00:17:09,890 --> 00:17:11,319 Suze: is miserly. 291 00:17:11,890 --> 00:17:16,270 Suze: Her boyfriend, her boyfriend has the ability to say, Listen, girlfriend, 292 00:17:16,550 --> 00:17:19,979 Suze: you're going to pay this time. Let them decide that 293 00:17:19,979 --> 00:17:25,469 Suze: between themselves. But if I were you truthfully, I wouldn't reward. 294 00:17:25,630 --> 00:17:28,909 Suze: I'd reward her, but here's how I would reward her 295 00:17:28,910 --> 00:17:30,069 Suze: Stop matching her money. 296 00:17:30,439 --> 00:17:30,989 KT: Yeah. 297 00:17:31,270 --> 00:17:35,500 Suze: Obviously she has enough. Obviously you've helped her do whatever, 298 00:17:35,750 --> 00:17:39,589 Suze: so you don't have to match her anymore because you 299 00:17:39,589 --> 00:17:43,030 Suze: can simply say, you know what, you're doing so great. 300 00:17:43,349 --> 00:17:45,790 Suze: We're not gonna match you anymore. You're on your own 301 00:17:45,790 --> 00:17:48,839 Suze: and doing it and we're gonna keep that money for 302 00:17:48,839 --> 00:17:51,739 Suze: ourselves so she can at least feel what it's like 303 00:17:51,949 --> 00:17:54,660 Suze: not to be given money by mom and dad. 304 00:17:55,500 --> 00:17:58,129 Suze: And let's just see what that does to her. Does 305 00:17:58,130 --> 00:18:01,209 Suze: that make her even more miserly? I don't know. But 306 00:18:01,209 --> 00:18:03,930 Suze: now let her be on her own, and you have 307 00:18:03,930 --> 00:18:08,729 Suze: not created a monster. You have created a money maven, 308 00:18:08,739 --> 00:18:10,389 Suze: if you ask me. 309 00:18:10,930 --> 00:18:14,250 KT: That's a good one, Suze. Next question's from Karen. 310 00:18:15,040 --> 00:18:19,520 KT: She said, Suze, I'm 55 years old, single woman with 311 00:18:19,520 --> 00:18:23,680 KT: two grown kids and one 12-year-old son. I used to 312 00:18:23,680 --> 00:18:27,920 KT: have money in a couple Roth IRAs, but an insurance 313 00:18:27,920 --> 00:18:32,839 KT: agent was trying to help me with retirement. He had 314 00:18:32,839 --> 00:18:37,208 KT: put my money in a margin account. I don't understand 315 00:18:37,209 --> 00:18:38,119 KT: anything about it. 316 00:18:38,400 --> 00:18:41,339 KT: And I have authorized him to make trades for 317 00:18:41,339 --> 00:18:41,540 KT: me. 318 00:18:41,619 --> 00:18:42,419 Suze: Stop for one 319 00:18:42,420 --> 00:18:42,609 Suze: second. 320 00:18:42,819 --> 00:18:45,819 KT: Yeah, tell everyone what the heck is that? A margin 321 00:18:45,819 --> 00:18:45,820 KT: s 322 00:18:45,820 --> 00:18:46,339 Suze: Should that be 323 00:18:46,339 --> 00:18:47,130 Suze: your quizzy? 324 00:18:47,380 --> 00:18:50,369 KT: No, it sounds like he was able to trade her money. 325 00:18:50,660 --> 00:18:50,849 Suze: No. 326 00:18:51,099 --> 00:18:51,380 KT: I don't 327 00:18:51,380 --> 00:18:52,300 KT: know what a margin... 328 00:18:52,300 --> 00:18:55,260 Suze: There we go. That's the truth. Now. I already knew that, 329 00:18:55,380 --> 00:18:59,219 Suze: but that's besides the point, right, which is, first of all, 330 00:18:59,420 --> 00:19:05,739 Suze: before we even go on with this email, 99% of 331 00:19:05,739 --> 00:19:06,688 Suze: you out there, 332 00:19:07,520 --> 00:19:12,260 Suze: should not ever, ever, ever have a margin account. KT, 333 00:19:12,329 --> 00:19:17,459 Suze: you and I have never in our lives traded on margin. 334 00:19:17,709 --> 00:19:22,869 Suze: What does that mean? That means that let's say you 335 00:19:22,869 --> 00:19:28,669 Suze: have $100,000 in an account and you're on margin. They'll 336 00:19:28,670 --> 00:19:31,589 Suze: allow you to borrow from the brokerage firm. 337 00:19:32,060 --> 00:19:36,140 Suze: Like $50,000 or some amount of money so that you 338 00:19:36,140 --> 00:19:41,729 Suze: actually can invest more money than you than you have 339 00:19:42,099 --> 00:19:45,219 Suze: if the stock starts to go down they can have 340 00:19:45,219 --> 00:19:48,020 Suze: what's called a margin call, which means you have to 341 00:19:48,020 --> 00:19:51,060 Suze: come up with that money that it's gone down if 342 00:19:51,060 --> 00:19:54,699 Suze: it goes up, all right, you can make more money 343 00:19:54,699 --> 00:19:58,339 Suze: because you bought on a loan, so to speak, but 344 00:19:58,339 --> 00:20:01,780 Suze: it is seriously seriously dangerous. 345 00:20:02,165 --> 00:20:05,185 Suze: And I don't ever want to hear any of you 346 00:20:05,555 --> 00:20:09,194 Suze: be on margin, and you are to never let a 347 00:20:09,194 --> 00:20:13,784 Suze: financial advisor or so-called insurance agent tell you that trading 348 00:20:13,785 --> 00:20:16,714 Suze: on margin makes sense. All right, go on. 349 00:20:16,795 --> 00:20:19,395 KT: Well then, Karen, you're gonna get a big slap down. 350 00:20:19,515 --> 00:20:23,074 Suze: Did I hear you say there that she authorized him 351 00:20:23,074 --> 00:20:24,464 Suze: to make trades for her? 352 00:20:25,910 --> 00:20:29,500 KT: It said I don't understand anything about it. I have 353 00:20:29,500 --> 00:20:33,229 KT: authorized him to make trades for me. And then she 354 00:20:33,229 --> 00:20:38,939 KT: said it's only about $50,000. That's the part I don't like. 355 00:20:39,099 --> 00:20:41,510 KT: Karen was a victim of the loss, she said around 356 00:20:41,510 --> 00:20:45,329 KT: 5 months ago, I guess it took a huge plunge, 357 00:20:45,540 --> 00:20:48,959 KT: and he said all accounts did. It went super 358 00:20:49,314 --> 00:20:53,155 KT: low and slowly it's making its way back up. My 359 00:20:53,155 --> 00:20:58,114 KT: question is this trading stuff seems awfully risky, but he 360 00:20:58,114 --> 00:21:02,034 KT: said I can make a really good return to greatly 361 00:21:02,035 --> 00:21:05,714 KT: multiplying my money by the time I retire. 362 00:21:06,579 --> 00:21:10,250 KT: She's 55. I wonder if I should just move it 363 00:21:10,250 --> 00:21:13,619 KT: to a Roth IRA, please. What is your advice? So 364 00:21:13,619 --> 00:21:17,729 KT: listen up, everybody. Suze's going to tell Karen the truth 365 00:21:17,729 --> 00:21:18,540 KT: of what she 366 00:21:18,540 --> 00:21:19,050 KT: should do. 367 00:21:19,099 --> 00:21:22,218 Suze: Listen, the first truth is you should never have done 368 00:21:22,219 --> 00:21:26,770 Suze: a margin account. Second truth is you are never, ever, 369 00:21:26,819 --> 00:21:31,930 Suze: ever to give somebody authorization to make trades for you 370 00:21:32,219 --> 00:21:34,300 Suze: without your permission. 371 00:21:34,920 --> 00:21:39,899 Suze: So there's something called a discretionary account where a financial adviser, 372 00:21:39,979 --> 00:21:43,609 Suze: a broker can buy and sell at their own discretion. 373 00:21:43,819 --> 00:21:45,859 Suze: Do not do it. Do not do it, do not 374 00:21:45,859 --> 00:21:49,060 Suze: do it. Even our accounts KT, 375 00:21:49,640 --> 00:21:52,770 Suze: If John, who is our financial adviser and who I 376 00:21:52,770 --> 00:21:54,359 Suze: talk to every single day, 377 00:21:54,790 --> 00:21:56,659 KT: Suze advises him every 378 00:21:56,660 --> 00:21:56,709 KT: single day 379 00:21:56,709 --> 00:21:59,930 Suze: Tat's besides the point, right? But even when he has 380 00:21:59,930 --> 00:22:02,650 Suze: an idea that he wants to discuss with me, he 381 00:22:02,650 --> 00:22:07,250 Suze: doesn't just buy it. He has to get my permission. 382 00:22:07,449 --> 00:22:10,569 KT: I have to tell everybody something funny. Suze talks to 383 00:22:10,569 --> 00:22:12,770 KT: John every day or twice a day, three, yeah, a 384 00:22:12,770 --> 00:22:15,409 KT: couple times a day, and, and then he, he might 385 00:22:15,410 --> 00:22:16,810 KT: come up with something and she 386 00:22:17,229 --> 00:22:20,389 KT: says, oh that sounds really great. Let's do it. Let's 387 00:22:20,390 --> 00:22:23,910 KT: put in X amount of money and then on the 388 00:22:23,910 --> 00:22:27,400 KT: background I hear him say on the speaker, what about KT? 389 00:22:29,020 --> 00:22:31,978 KT: Meaning what about KT's account money and Suze said, no, 390 00:22:32,099 --> 00:22:33,050 KT: just leave it. 391 00:22:34,130 --> 00:22:38,400 KT: Suze knows I do not like to lose a penny, right? 392 00:22:38,459 --> 00:22:41,849 Suze: But what I do say is this is a good idea, 393 00:22:42,540 --> 00:22:45,339 Suze: but you have to call KT and talk to KY. 394 00:22:45,619 --> 00:22:47,939 KT: He always says to but Suze's my personal 395 00:22:48,209 --> 00:22:48,780 KT: Financial advisor. 396 00:22:48,900 --> 00:22:54,449 Suze: But still, he personally needs her permission even if I 397 00:22:54,449 --> 00:22:59,069 Suze: like the idea, he can't do it because I'm not authorized, 398 00:22:59,130 --> 00:23:03,079 Suze: nor is he to make a trade in KT's account, 399 00:23:03,209 --> 00:23:07,530 Suze: buy or sell anything without KT's permission. 400 00:23:07,910 --> 00:23:11,030 Suze: So that's first of all. Second of all, when you 401 00:23:11,030 --> 00:23:17,978 Suze: say it's only about $50,000 50,000 dollars on margin could 402 00:23:17,979 --> 00:23:22,410 Suze: be gone before you even know it. And if he 403 00:23:22,410 --> 00:23:27,170 Suze: was an astute financial person over these past few months, 404 00:23:27,500 --> 00:23:31,020 Suze: rather than its slowly making its way back, you would 405 00:23:31,020 --> 00:23:31,260 Suze: be up 406 00:23:31,380 --> 00:23:35,790 Suze: a fortune right now if he had invested on margin 407 00:23:36,089 --> 00:23:40,079 Suze: in the correct stocks. I don't like this person's advice. 408 00:23:40,329 --> 00:23:43,800 Suze: I don't like this person telling you to do these things. 409 00:23:44,010 --> 00:23:47,129 Suze: I want you to cut just like I did with 410 00:23:47,130 --> 00:23:50,410 Suze: that person divorce him and then look what happened. I 411 00:23:50,410 --> 00:23:54,680 Suze: want you to divorce this financial person or insurance 412 00:23:54,849 --> 00:23:59,270 Suze: agent. An insurance agent should not be telling you what 413 00:23:59,270 --> 00:24:03,359 Suze: to do with anything other than insurance. It is incredibly 414 00:24:03,359 --> 00:24:06,319 Suze: risky now whether you can move it all to a 415 00:24:06,319 --> 00:24:09,880 Suze: Roth IRA or not, I doubt because I don't know 416 00:24:09,880 --> 00:24:12,670 Suze: if this money is in a retirement account or not, 417 00:24:12,880 --> 00:24:15,719 Suze: so can you convert it, but I would put it 418 00:24:15,719 --> 00:24:18,188 Suze: out of his hands right now. 419 00:24:18,650 --> 00:24:20,959 Suze: And just put it either in a money market account 420 00:24:20,959 --> 00:24:25,550 Suze: or somewhere just to make sure that you are OK. 421 00:24:25,640 --> 00:24:26,290 Suze: All right. 422 00:24:26,640 --> 00:24:30,079 KT: All right. Next question is from Sue. She said, Suze, 423 00:24:30,280 --> 00:24:33,199 KT: I've been listening to you and watching you for over 424 00:24:33,199 --> 00:24:36,280 KT: 20 years, and I am shocked. 425 00:24:37,140 --> 00:24:41,099 KT: That I did not get this very important point about 426 00:24:41,099 --> 00:24:44,890 KT: Roths please, and KT probably didn't get it either, so 427 00:24:44,890 --> 00:24:49,280 KT: don't feel alone, Sue. Please confirm and share with all 428 00:24:49,280 --> 00:24:53,800 KT: since others may need this information. Is it correct? There 429 00:24:53,800 --> 00:24:59,040 KT: are no income requirements when contributing to a Roth account 430 00:24:59,369 --> 00:25:02,319 KT: when it is connected to your job? 431 00:25:02,530 --> 00:25:04,000 Suze: Another pop quizzy. 432 00:25:04,199 --> 00:25:05,410 KT: Oh, OK. 433 00:25:06,890 --> 00:25:10,010 KT: So I don't think there is any. I don't think 434 00:25:10,010 --> 00:25:10,880 KT: there is any, 435 00:25:10,890 --> 00:25:11,839 Suze: Any what? 436 00:25:12,569 --> 00:25:13,739 KT: Income requirements. 437 00:25:13,930 --> 00:25:14,750 Suze: You're positive on that? 438 00:25:15,089 --> 00:25:18,409 KT: I'm not positive, but I think with a Roth, you know, 439 00:25:18,530 --> 00:25:21,250 KT: you can, um, I think I'm OK with that. There's 440 00:25:21,250 --> 00:25:22,770 KT: no income requirement with a... 441 00:25:22,770 --> 00:25:24,359 Suze: Roth at an employer? 442 00:25:25,130 --> 00:25:26,800 KT: When it's connected to your job, yeah, 443 00:25:26,930 --> 00:25:29,260 Suze: Yeah, ding ding ding ding ding. 444 00:25:29,839 --> 00:25:31,209 Suze: So again, everybody... 445 00:25:32,290 --> 00:25:33,060 KT: Sue, I got that one right. 446 00:25:33,089 --> 00:25:35,569 Suze: Then after I answer this, I'm gonna yell at you 447 00:25:35,569 --> 00:25:36,889 Suze: for a second here, Ms. Travis. 448 00:25:37,010 --> 00:25:37,329 KT: OK. 449 00:25:37,489 --> 00:25:38,400 Suze: Are you ready for it? 450 00:25:38,609 --> 00:25:38,660 KT: All right. 451 00:25:38,670 --> 00:25:41,479 KT: You sure? I can shame you in front of everybody. 452 00:25:41,689 --> 00:25:42,729 KT: I'm never shamed. 453 00:25:42,890 --> 00:25:43,650 Suze: All right, so but here's... 454 00:25:43,650 --> 00:25:45,890 KT: I'm wrong, but I'm never shamed. 455 00:25:46,089 --> 00:25:48,729 Suze: But here's the thing, everybody, which is this. 456 00:25:49,800 --> 00:25:55,790 Suze: There are income requirements to qualify for a contributory Roth, 457 00:25:56,189 --> 00:26:01,430 Suze: so to do a full contribution into a Roth IRA 458 00:26:01,670 --> 00:26:05,310 Suze: that you contribute 7000 or $8000 a year to depending 459 00:26:05,310 --> 00:26:10,750 Suze: on your age, you cannot make over $150,000 a year 460 00:26:10,750 --> 00:26:13,909 Suze: if you're single, a modified adjusted gross income. 461 00:26:14,150 --> 00:26:17,300 Suze: To put the max in or if you're married filing 462 00:26:17,300 --> 00:26:24,439 Suze: jointly $236,000 a year of modified adjusted gross income when 463 00:26:24,439 --> 00:26:29,500 Suze: you have a Roth 401k, 403B or TSP, there are 464 00:26:29,500 --> 00:26:35,060 Suze: no income limitations at all. So Sue. 465 00:26:35,660 --> 00:26:38,811 Suze: You missed it, but now you understand it. But KT. 466 00:26:38,811 --> 00:26:40,510 KT: What did I do wrong? 467 00:26:40,839 --> 00:26:45,510 Suze: I don't ever want to hear again in the year 468 00:26:45,510 --> 00:26:48,410 Suze: 2025 and beyond. 469 00:26:48,839 --> 00:26:52,579 Suze: That you don't get Roths, that you don't understand them. 470 00:26:52,790 --> 00:26:55,989 Suze: I think you have placed it in your mind that 471 00:26:55,989 --> 00:26:59,069 Suze: you don't have the ability to understand them or how 472 00:26:59,069 --> 00:27:01,869 Suze: they work when you are one of the sharpest, shrewdest, 473 00:27:01,949 --> 00:27:05,060 Suze: most intelligent women I have ever met in my life 474 00:27:05,310 --> 00:27:09,699 Suze: and therefore you have the ability, you're going to understand 475 00:27:09,699 --> 00:27:12,709 Suze: them you do understand them and I never want you 476 00:27:12,709 --> 00:27:13,030 Suze: to think. 477 00:27:13,119 --> 00:27:17,310 Suze: Again, that you can't because you are actually convincing yourself 478 00:27:17,310 --> 00:27:19,589 Suze: when you see the word Roth it's beyond you. 479 00:27:19,869 --> 00:27:23,910 KT: So that's my New Year's resolution. I'm gonna conquer the Roth. 480 00:27:24,050 --> 00:27:27,349 Suze: It is now your life. You have conquered it. You're 481 00:27:27,349 --> 00:27:28,589 Suze: gonna do like... 482 00:27:28,589 --> 00:27:29,139 KT: I'm gonna 483 00:27:29,140 --> 00:27:33,680 KT: conquer the Roth, everybody. I'm gonna learn front door, back door, 484 00:27:33,869 --> 00:27:34,149 KT: side 485 00:27:34,150 --> 00:27:36,930 Suze: go on to the next question I'll rascal you, but 486 00:27:37,400 --> 00:27:38,239 Suze: I'm not joking. 487 00:27:38,430 --> 00:27:39,469 KT: I, I'll do it. I 488 00:27:39,469 --> 00:27:40,060 KT: can do it. 489 00:27:40,069 --> 00:27:42,448 Suze: And all of you out there, you are never to tell. 490 00:27:42,589 --> 00:27:46,069 KT: We'll do a podcast in about 6 months where you 491 00:27:46,069 --> 00:27:49,589 KT: can all write into KT and ask me questions about 492 00:27:49,589 --> 00:27:51,069 KT: a Roth. Let's try that. 493 00:27:51,469 --> 00:27:52,199 Suze: Let's try that in 2 months, everybody. 494 00:27:52,430 --> 00:27:53,270 KT: No, no, no, no, 495 00:27:53,349 --> 00:27:53,760 Suze: You're giving me too much time. 496 00:27:54,989 --> 00:27:55,199 Suze: No, 497 00:27:55,310 --> 00:27:56,349 KT: I need 6 months. 498 00:27:56,510 --> 00:27:59,829 Suze: No, you don't. You see the excuses you all give yourself. 499 00:27:59,910 --> 00:28:02,800 Suze: You're just like KT, everybody. You're just like her. 500 00:28:03,439 --> 00:28:03,859 KT: All right, I'll try in 3 months. 501 00:28:05,150 --> 00:28:05,819 Suze: What? 502 00:28:07,619 --> 00:28:11,349 KT: Next is from Sheila. She said, My mother's distributing shares 503 00:28:11,349 --> 00:28:14,589 KT: of stock to my sister and me. I am inclined 504 00:28:14,589 --> 00:28:18,010 KT: to sell approximately half of the stock she's giving me 505 00:28:18,270 --> 00:28:22,189 KT: and reinvest it in a broader market index fund. I 506 00:28:22,189 --> 00:28:25,429 KT: do not need the money. It's part of my retirement fund. 507 00:28:25,969 --> 00:28:28,270 KT: Please let me know if you have any thoughts of 508 00:28:28,270 --> 00:28:29,569 KT: what to do with the stock. 509 00:28:29,569 --> 00:28:30,649 Suze: Yeah, well, here's the thing... 510 00:28:30,770 --> 00:28:33,649 KT: So it's a single stock, I guess, and she wants 511 00:28:33,650 --> 00:28:34,290 KT: to put it in. 512 00:28:34,489 --> 00:28:38,089 Suze: Yeah, but here's the thing, Sheila, which is I don't 513 00:28:38,089 --> 00:28:41,329 Suze: know how old your mother is, and I don't know 514 00:28:41,329 --> 00:28:45,689 Suze: how long she's held the stock that in fact she 515 00:28:45,689 --> 00:28:47,000 Suze: wants to give you. 516 00:28:47,500 --> 00:28:51,189 Suze: But by giving it to you, listen to me closely, 517 00:28:51,439 --> 00:28:56,030 Suze: she is giving you her cost basis on that stock. 518 00:28:56,560 --> 00:29:00,349 Suze: So let's say she bought this stock 20 years ago 519 00:29:00,599 --> 00:29:04,119 Suze: at $10 a share. Let's just say that's true. And 520 00:29:04,119 --> 00:29:08,959 Suze: now it's at $100 a share. If she gives it 521 00:29:08,959 --> 00:29:12,680 Suze: to you and you turn around and sell it. 522 00:29:13,199 --> 00:29:17,479 Suze: You're going to owe taxes on the difference between $10 523 00:29:17,520 --> 00:29:20,829 Suze: which she bought it at and $100 of where it 524 00:29:20,829 --> 00:29:26,319 Suze: is possibly today. If she's older and you don't need 525 00:29:26,319 --> 00:29:30,550 Suze: the money and it is a good quality stock, you 526 00:29:30,550 --> 00:29:33,599 Suze: might ask her to just keep it and let you 527 00:29:33,599 --> 00:29:38,119 Suze: inherit it because if you inherit it from her via 528 00:29:38,119 --> 00:29:41,359 Suze: a trust, for instance, so there's no probate fees on it. 529 00:29:41,959 --> 00:29:46,040 Suze: Then what will happen there is you will get a 530 00:29:46,040 --> 00:29:48,959 Suze: step up in cost basis. So if she bought it 531 00:29:48,959 --> 00:29:53,160 Suze: at 10, it's worth $200 when she dies and gives 532 00:29:53,160 --> 00:29:57,520 Suze: it to you. That $200 will be tax free to 533 00:29:57,520 --> 00:30:01,359 Suze: you if you turn around and sell it. So that's 534 00:30:01,359 --> 00:30:01,819 Suze: what I 535 00:30:01,880 --> 00:30:05,270 Suze: would be doing since you don't need the money and 536 00:30:05,270 --> 00:30:08,109 Suze: it's kind of part of your retirement fund if it's 537 00:30:08,109 --> 00:30:11,530 Suze: good quality stock maybe your mama, depending how old she 538 00:30:11,530 --> 00:30:15,069 Suze: is in her health, should absolutely keep it and leave 539 00:30:15,069 --> 00:30:18,219 Suze: it to you via her trust. 540 00:30:18,550 --> 00:30:19,819 KT: That's great advice. 541 00:30:20,310 --> 00:30:21,839 Suze: Well, KT, that's a wrap. 542 00:30:22,969 --> 00:30:26,560 KT: So I did my quizzy. I did a couple of quizzes. 543 00:30:28,250 --> 00:30:28,530 KT: All right, 544 00:30:28,729 --> 00:30:31,170 KT: good. Well, that was a that was a nice mix 545 00:30:31,170 --> 00:30:32,089 KT: up of, um, lessons. 546 00:30:32,930 --> 00:30:35,689 Suze: Let me just give you a little piece of news here, 547 00:30:36,869 --> 00:30:43,060 Suze: KT whether people write in or not, I myself, am 548 00:30:43,060 --> 00:30:46,219 Suze: going to create a Roth quizzy just for you... 549 00:30:46,219 --> 00:30:47,439 KT: A whole podcast of Roth... 550 00:30:47,439 --> 00:30:51,680 Suze: I am going to make sure that I have asked you everything 551 00:30:51,680 --> 00:30:54,199 Suze: that I want you to know. 552 00:30:54,780 --> 00:30:57,329 Suze: And for you to get and I am going to 553 00:30:57,329 --> 00:31:02,050 Suze: be testing you to see in 2 months how you 554 00:31:02,050 --> 00:31:06,520 Suze: do on that quizzy. So very shortly in 2 months, everybody, 555 00:31:06,729 --> 00:31:10,010 Suze: we're gonna have an ask KT anything 556 00:31:10,010 --> 00:31:10,920 KT: I can do it. 557 00:31:11,930 --> 00:31:12,650 Suze: I love 558 00:31:12,650 --> 00:31:13,689 KT: that. I can do it. 559 00:31:13,890 --> 00:31:14,640 Suze: You're so cute. 560 00:31:14,770 --> 00:31:15,550 KT: I can do it. 561 00:31:15,890 --> 00:31:19,489 Suze: I can do got haircuts yesterday, everybody. How's, how's how 562 00:31:19,489 --> 00:31:20,199 Suze: they look? 563 00:31:20,849 --> 00:31:23,839 KT: Yours doesn't look like you got much cut, but mine 564 00:31:24,170 --> 00:31:26,770 KT: is kind of curly. Well, I, I have very curly 565 00:31:26,770 --> 00:31:28,119 KT: hair in this weather. 566 00:31:28,599 --> 00:31:32,069 KT: It's kind of in between whether it's like winter and 567 00:31:32,069 --> 00:31:33,380 KT: summer in Florida. What 568 00:31:33,380 --> 00:31:36,750 Suze: what you all don't know is that we're in Florida 569 00:31:36,750 --> 00:31:40,380 Suze: right now, and we sit in front of this big mirror, 570 00:31:40,750 --> 00:31:44,270 KT: huge wall mirror, we look at each other's hair. 571 00:31:45,109 --> 00:31:46,160 KT: I sometimes 572 00:31:46,160 --> 00:31:49,050 Suze: look at her teeth and wake up while we're 573 00:31:49,050 --> 00:31:51,569 KT: talking in the if we were on the camera, it 574 00:31:51,569 --> 00:31:53,969 KT: would be hysterical for you to see us, 575 00:31:54,869 --> 00:31:54,880 Suze: right? 576 00:31:54,890 --> 00:31:58,369 KT: Suze has on her pajamas still, and I got dressed 577 00:31:58,369 --> 00:32:01,770 KT: a long time ago. It's like really early and I 578 00:32:01,770 --> 00:32:03,890 KT: got dressed because I was cold, so I'm on a 579 00:32:03,890 --> 00:32:04,890 KT: fleece and 580 00:32:05,199 --> 00:32:06,959 Suze: Yeah, I've been running hot lately. 581 00:32:07,040 --> 00:32:09,920 KT: Suze has on her like little sleep 582 00:32:11,280 --> 00:32:11,949 KT: sleep shirt, 583 00:32:11,979 --> 00:32:15,760 Suze: My little sleep shirt. Anyway, all right, everybody, so until 584 00:32:15,760 --> 00:32:18,520 Suze: Sunday when we will have another Suze School, I have 585 00:32:18,520 --> 00:32:22,709 Suze: no idea what it will be about. However, there's really 586 00:32:22,709 --> 00:32:26,239 Suze: only one thing that we want you to remember. Now 587 00:32:26,239 --> 00:32:30,489 Suze: there's many, many ways, KT, that we have been ending. 588 00:32:30,800 --> 00:32:35,400 Suze: Our podcasts. We've gone from long endings to short endings... 589 00:32:35,959 --> 00:32:40,280 KT: Suze, you know, no matter what, I always like your 590 00:32:40,280 --> 00:32:47,349 KT: very original credo in life, which is people first, then money, 591 00:32:47,599 --> 00:32:48,550 KT: then things. 592 00:32:48,630 --> 00:32:53,329 Suze: And if you do that, everybody, then together we 593 00:32:53,329 --> 00:32:55,069 Suze: will rise.