WEBVTT - Caution, Caution, Caution! 0:00:08.398 --> 0:00:12.579 June 11, 2026. Welcome everybody to the Women and Money 0:00:12.579 --> 0:00:17.898 podcast and Everybody Smart Enough to Listen. Today is what KT? 0:00:20.530 --> 0:00:20.540 (KT laughs) 0:00:22.510 --> 0:00:25.069 She just looked at me with an evil eye when 0:00:25.069 --> 0:00:29.790 she said, and everyone smart enough to listen because I 0:00:29.790 --> 0:00:34.810 don't listen enough to Miss Suze. Today's June 11th. It's Thursday. 0:00:36.029 --> 0:00:36.990 It's almost... 0:00:37.950 --> 0:00:39.770 KT, I just said it was June 11th. 0:00:40.180 --> 0:00:42.610 But... so why'd you say, what is it? What is this? 0:00:42.990 --> 0:00:45.229 This is, I'm telling you, do you see everybody, why 0:00:45.229 --> 0:00:48.110 I gave her that eye? It is the Ask KT 0:00:48.110 --> 0:00:52.509 and Suze Anything edition, because I can tell when she 0:00:52.509 --> 0:00:53.650 is not present. 0:00:54.020 --> 0:00:56.659 I pushed the button to start recording. We're all good... 0:00:57.659 --> 0:00:58.319 Are we on? 0:00:58.779 --> 0:01:01.560 I'm gonna absolute. Are you kidding me? 0:01:01.770 --> 0:01:02.860 OK, let's get started. 0:01:03.299 --> 0:01:06.459 No, KT, really, there are things that I want to 0:01:06.459 --> 0:01:08.098 talk about first. All right. 0:01:08.620 --> 0:01:14.019 So number one, today is the anniversary, KT, of Brett 0:01:14.019 --> 0:01:17.349 and Alexis, my niece. It's their anniversary today. 0:01:17.569 --> 0:01:18.680 How years have they been married? 0:01:18.860 --> 0:01:20.139 Too many. No, I don't know. 0:01:20.610 --> 0:01:23.569 The kids are teenagers, so probably at least 20. 0:01:24.750 --> 0:01:25.839 A lot, but anyway... 0:01:26.099 --> 0:01:26.750 Maybe 20 years. 0:01:26.879 --> 0:01:29.518 Happy anniversary to the two of you. 0:01:29.949 --> 0:01:31.510 What a beautiful couple too. 0:01:31.519 --> 0:01:33.399 And children. Stunning anyway... 0:01:33.639 --> 0:01:36.370 Alexis looks like a young Suze. 0:01:36.760 --> 0:01:37.259 Lucky her, lucky her. 0:01:37.260 --> 0:01:39.750 She does look so much like her Aunt Suze. 0:01:39.830 --> 0:01:43.000 Right? So, but no, but truthfully, the other thing, and 0:01:43.000 --> 0:01:49.069 this one is very, very important. Guess what ended last night? 0:01:49.319 --> 0:01:51.730 The birthday pricing for 0:01:52.120 --> 0:01:57.550 the Must-Have Documents and the Ultimate Scam Protection is over. 0:01:57.800 --> 0:01:59.599 We had told all of you that it was going 0:01:59.599 --> 0:02:04.110 to end on June 8th, about midnight Pacific time, but 0:02:04.110 --> 0:02:07.400 there was such an overwhelming demand for it, 0:02:07.650 --> 0:02:11.100 that we thought, OK, let's extend it two more days, 0:02:11.199 --> 0:02:15.880 but it is now officially over. So what does that mean? 0:02:16.250 --> 0:02:19.570 That means the Must-Have Documents has gone back up to 0:02:19.570 --> 0:02:25.089 $99 and the Ultimate Scam Protection has gone back up 0:02:25.089 --> 0:02:30.728 to $95.88 a year, not just one time only like 0:02:30.729 --> 0:02:35.449 the Must-Have Documents, that is per year. Now something that's 0:02:35.449 --> 0:02:37.410 very important for you to know. 0:02:38.649 --> 0:02:41.399 And I said this in the webinar, in the podcast, 0:02:41.580 --> 0:02:47.299 and it has come to pass. June 21st, the first 0:02:47.300 --> 0:02:51.859 day of summer. The Must-Have Documents, I have been told 0:02:51.860 --> 0:02:57.880 now are going to go up to $153. You need 0:02:57.880 --> 0:03:00.240 to know that. So between now 0:03:00.589 --> 0:03:06.339 and June 20th it will be $99. Starting June 21st 0:03:06.589 --> 0:03:11.309 it will be $153. Listen, Hay House has been wanting 0:03:11.309 --> 0:03:13.350 to raise those prices now for years. 0:03:13.350 --> 0:03:15.089 For over a year... 0:03:15.089 --> 0:03:17.508 For years because of the cost to keep everything going. 0:03:17.589 --> 0:03:21.710 I keep saying, no, no, please keep it $99. However, 0:03:21.949 --> 0:03:25.309 they are now raising it, so if you missed the 0:03:25.309 --> 0:03:26.448 birthday pricing, 0:03:27.190 --> 0:03:32.369 you have until June 20th to get it for $99. Remember, everybody, 0:03:32.630 --> 0:03:36.289 it is $2,500 worth of state of the art documents 0:03:36.550 --> 0:03:39.619 that you don't pay for updates. You can share it, 0:03:39.789 --> 0:03:43.250 but it's worth it. It's really, it's more, it's actually 0:03:43.250 --> 0:03:48.389 really more than worth it even at $153. So go 0:03:48.389 --> 0:03:51.289 to musthavedocs.com. 0:03:51.820 --> 0:03:54.320 That's where you can get it or just go to 0:03:54.429 --> 0:04:00.220 suzeorman.com and it's right there on the front page. All right, KT, now... 0:04:00.580 --> 0:04:03.360 Actually my first question is about Must-Have Docs. 0:04:03.740 --> 0:04:04.679 Oh, OK, go. All right. 0:04:05.500 --> 0:04:07.339 And, and this is perfect timing. 0:04:08.039 --> 0:04:11.440 Hi Suze, I have a question for you regarding the 0:04:11.440 --> 0:04:16.178 Must-Have Documents. My husband and I have gotten everything in place, 0:04:16.399 --> 0:04:20.059 but what happens if I were to die before him 0:04:20.238 --> 0:04:21.799 and he remarries? 0:04:22.970 --> 0:04:23.579 Chances are he will. 0:04:24.140 --> 0:04:24.410 I know... 0:04:24.410 --> 0:04:25.459 he's he absolutely will. 0:04:25.690 --> 0:04:26.570 He probably will. 0:04:26.579 --> 0:04:27.579 I just have to say this... 0:04:27.579 --> 0:04:28.700 Men remarry right away. 0:04:29.140 --> 0:04:32.649 Men remarry like sometimes, honest to God, within three months. 0:04:32.839 --> 0:04:34.518 Yeah, and before years out. 0:04:34.619 --> 0:04:36.000 Right? So anyway, all right, go on. 0:04:36.329 --> 0:04:38.660 Is there something that I can put in the will 0:04:38.660 --> 0:04:44.179 or trust that will prevent the current wife from inheriting 0:04:44.178 --> 0:04:48.519 my assets? I want to protect our two adult girls. 0:04:49.988 --> 0:04:51.589 See, she even said the current wide. 0:04:51.589 --> 0:04:55.750 The current wife, so she knows what's gonna happen there. Listen, 0:04:55.910 --> 0:05:00.309 here's what's important to understand. You have two choices here. 0:05:01.269 --> 0:05:06.070 You could have separate wills and trusts and everything. What's 0:05:06.070 --> 0:05:09.988 in your name, what's in his name. When you die, 0:05:10.428 --> 0:05:14.729 your half automatically does what it goes to your girls 0:05:14.750 --> 0:05:16.928 and not your spouse, however... 0:05:17.950 --> 0:05:20.429 You may not want to do that as well, cause 0:05:20.428 --> 0:05:23.959 you may want him to be able to have certain things, 0:05:24.070 --> 0:05:27.709 live in the house, things like that. But if I 0:05:27.709 --> 0:05:30.779 were you, I have to tell you the Must-Have Documents, 0:05:30.988 --> 0:05:32.988 in my opinion, don't help you here. 0:05:33.720 --> 0:05:37.970 In that they're not that complicated unless you want to 0:05:37.970 --> 0:05:42.649 do separate Must-Have Documents, which you can absolutely do. Listen, KT 0:05:42.649 --> 0:05:46.130 and I have separate wills, trusts, and everything. We do 0:05:46.130 --> 0:05:50.089 not have a joint one, just so you know. However, 0:05:50.209 --> 0:05:53.209 what you could do is go and see a lawyer 0:05:53.450 --> 0:05:56.488 and look into getting a marital trust, a family trust. 0:05:57.549 --> 0:06:00.720 A bypass trust, a Q-Tip trust. There are all kinds 0:06:00.720 --> 0:06:05.600 of solutions that will solve your concern. I don't think 0:06:05.600 --> 0:06:10.079 the Must-Have Documents are detailed enough for you to accomplish what 0:06:10.079 --> 0:06:13.399 you want. So bottom line, go and see a trust 0:06:13.399 --> 0:06:17.480 lawyer or leave it all to your kids and let 0:06:17.480 --> 0:06:19.519 your husband do what he wants and let your kids 0:06:19.519 --> 0:06:21.799 be in charge of your husband. Just saying I'm not 0:06:21.799 --> 0:06:22.899 sure that's what you want. 0:06:23.488 --> 0:06:26.690 But it's interesting that she's thinking that way. Don't you 0:06:26.690 --> 0:06:27.669 think that's interesting? 0:06:27.769 --> 0:06:31.089 Well, she kind of has an inkling maybe, but it's, 0:06:31.170 --> 0:06:35.250 it's also something that she wants to make sure if 0:06:35.250 --> 0:06:38.510 he does remarry that her kids are OK. 0:06:38.609 --> 0:06:43.049 But, however, you have to be very careful because remember, KT... 0:06:43.779 --> 0:06:48.200 Whenever you designate a beneficiary like in a retirement account 0:06:48.540 --> 0:06:52.500 and or a life insurance policy, even if you have 0:06:52.500 --> 0:06:56.250 a trust or a will that says other, when you 0:06:56.250 --> 0:07:00.839 designate a beneficiary, it overrides the wishes of your trust 0:07:00.839 --> 0:07:04.540 or wills. So if in her retirement account, if she 0:07:04.540 --> 0:07:09.220 has one, if she designated that her husband was the 0:07:09.220 --> 0:07:12.940 primary beneficiary of it, guess what? 0:07:13.269 --> 0:07:16.269 It all goes to him, and now she has no 0:07:16.269 --> 0:07:20.549 control over that whatsoever. So could she put the trust 0:07:20.549 --> 0:07:25.510 as the primary beneficiary? It gets very complicated at that 0:07:25.510 --> 0:07:28.549 point for many reasons, because a trust doesn't have the 0:07:28.549 --> 0:07:32.709 same rights as a spouse. And not only that, this 0:07:32.709 --> 0:07:35.829 is very important about what I am to say to 0:07:35.829 --> 0:07:36.589 all of you. 0:07:36.970 --> 0:07:41.149 You have a trust and you say that my half 0:07:41.329 --> 0:07:45.290 goes where to my children and that's where you think 0:07:45.290 --> 0:07:50.049 it's going to go. However, if you own a home 0:07:50.250 --> 0:07:54.570 in joint tenancy with right of survivorship, if you own 0:07:54.570 --> 0:07:59.750 a brokerage account, anything and joint tenancy with right of survivorship, 0:07:59.970 --> 0:08:03.690 you own a bank account, whatever it may be. 0:08:04.959 --> 0:08:07.630 The way that you hold title, 0:08:09.149 --> 0:08:15.100 overrides anything that you say in your trust or will. 0:08:15.769 --> 0:08:18.290 So even if you think that you've covered it in 0:08:18.290 --> 0:08:22.820 your individual trust and that when you die your money's 0:08:22.820 --> 0:08:26.700 going to go to your kids, it depends on how 0:08:26.700 --> 0:08:30.000 you've done it, which is why I'm saying to you, 0:08:30.700 --> 0:08:35.500 go and see an estate lawyer. See, aren't you happy 0:08:35.500 --> 0:08:36.559 that we're so simple. 0:08:37.200 --> 0:08:37.880 Yeah, 0:08:38.359 --> 0:08:38.880 Really. 0:08:39.530 --> 0:08:42.358 Everything I have goes to Suze. Everything she has would 0:08:42.359 --> 0:08:43.260 go to KT. 0:08:43.260 --> 0:08:47.280 Now, but here's what's key about that, everybody. We both 0:08:47.280 --> 0:08:52.799 have the rights to change anything that we want to 0:08:52.799 --> 0:08:56.599 change when that happens, but we do trust each other 0:08:56.599 --> 0:09:01.079 to know that we will abide by each other's wishes 0:09:01.080 --> 0:09:02.840 and not change them. 0:09:03.359 --> 0:09:06.949 And just, you know, honor what each of us want. 0:09:07.130 --> 0:09:10.570 Just that simple. But the majority, seriously, the majority of 0:09:10.570 --> 0:09:12.130 our estate goes to what kt? 0:09:12.650 --> 0:09:13.400 Hospitals. 0:09:13.450 --> 0:09:16.369 That's right, medical research and hospitals. All right. 0:09:17.010 --> 0:09:20.449 We love that. OK, so next question is this: This 0:09:20.450 --> 0:09:23.609 is to Suze and KT. I have to admit I'm 0:09:23.609 --> 0:09:23.729 a 0:09:23.830 --> 0:09:27.239 latecomer to your podcast and at the age of 55 0:09:27.469 --> 0:09:31.340 I feel so overwhelmed. I have a ton of questions, 0:09:31.429 --> 0:09:34.270 but the one that keeps coming to mind is about 0:09:34.270 --> 0:09:41.349 my 401(k) and 457(b). My job currently matches both accounts 0:09:41.349 --> 0:09:46.380 up to 4%. All right, so the question is. 0:09:46.770 --> 0:09:52.959 Should I contribute to my 457(b) or should I contribute 0:09:53.140 --> 0:09:58.700 to my Roth 401k since it's after taxes? Great So remember, 0:09:58.710 --> 0:10:00.179 age 55 here. 0:10:00.739 --> 0:10:06.729 All right, great question and great that you said age 55 KT. However, 0:10:07.020 --> 0:10:09.739 here's the thing, you can do both. You can have 0:10:09.739 --> 0:10:12.419 your cake and eat it too, and you should. 0:10:12.750 --> 0:10:17.590 Because a 457, everybody is an account that you put 0:10:17.590 --> 0:10:21.869 money in before taxes. It's with your company, and this 0:10:21.869 --> 0:10:26.750 company matches up to 4%, the same as her company 0:10:26.750 --> 0:10:29.349 matches for the Roth 401k. 0:10:29.760 --> 0:10:33.239 So why not contribute to both up to the point 0:10:33.239 --> 0:10:37.539 of the match, cause that's a guaranteed 4% on your money. 0:10:37.799 --> 0:10:41.809 After that, however, I personally would then be maxing out 0:10:41.809 --> 0:10:46.239 my Roth 401(k) and hey, if you have even more 0:10:46.239 --> 0:10:47.380 money than that. 0:10:47.849 --> 0:10:50.559 Well, you can go back to the 457, but I 0:10:50.559 --> 0:10:54.159 have a feeling that may max you out totally as 0:10:54.159 --> 0:10:56.650 to what you're doing for retirement. Next question. 0:10:56.809 --> 0:11:00.729 OK. Next question is from Chris. Hi, Suze. My question 0:11:00.729 --> 0:11:03.789 is about mutual funds. I have a bunch of them 0:11:03.789 --> 0:11:07.729 in my 401(k) which I opened over the years. I 0:11:07.729 --> 0:11:11.049 have not touched them for decades. I hear what you're 0:11:11.049 --> 0:11:11.710 saying about 0:11:12.215 --> 0:11:15.655 ETFs and I have invested in some of those as well. 0:11:16.075 --> 0:11:20.155 My question is, should I sell the mutual funds and 0:11:20.155 --> 0:11:25.395 transition that money into ETFs, or should I keep holding 0:11:25.395 --> 0:11:30.114 the mutual funds? I'm swiftly approaching 70 and will start 0:11:30.114 --> 0:11:35.395 collecting Social Security then. Right now I'm living comfortably off 0:11:35.395 --> 0:11:36.554 my nest egg. 0:11:36.929 --> 0:11:38.609 There you go. That's from Chris. 0:11:38.849 --> 0:11:41.289 And this, you see, everybody, when you write me a 0:11:41.289 --> 0:11:44.400 question like this, it's very difficult for me to answer 0:11:44.729 --> 0:11:48.090 because I don't know what mutual funds, I don't know 0:11:48.090 --> 0:11:52.090 the expense ratio of those mutual funds. I don't know 0:11:52.090 --> 0:11:56.330 what those mutual funds are actually invested in. So, Chris, 0:11:56.409 --> 0:11:58.098 here's what I would tell you. 0:11:58.750 --> 0:12:01.589 I would look at the investments in each one of 0:12:01.590 --> 0:12:06.909 those mutual funds and see if they overlap. 12, what 0:12:06.909 --> 0:12:10.989 is the expense ratio of those mutual funds and do 0:12:10.989 --> 0:12:14.728 they make sense? Are they managed mutual funds or are 0:12:14.729 --> 0:12:19.869 they indexed funds? Because remember, a managed mutual fund or ETF. 0:12:19.976 --> 0:12:24.454 In most cases is going to have a higher expense ratio. 0:12:24.815 --> 0:12:28.375 What has been the returns of those mutual funds in 0:12:28.375 --> 0:12:33.675 comparison to the Standard and Poor's 500 mutual fund or ETF? 0:12:34.216 --> 0:12:39.895 Have they been outperforming the S&P or not? Because any 0:12:39.895 --> 0:12:41.255 ETF out. 0:12:41.481 --> 0:12:46.721 There or mutual fund out there. Your goal is to 0:12:46.721 --> 0:12:49.702 either if you're in a Standard and Poor's index fund 0:12:49.841 --> 0:12:52.521 or ETF, of course, you're going to do what that does. 0:12:52.761 --> 0:12:56.802 But if you're in any other fund or ETF, you 0:12:56.802 --> 0:13:02.682 want to know that it's outperforming the S&P 500, 0:13:03.369 --> 0:13:08.210 including the expense ratio, and that goes for every ETF 0:13:08.520 --> 0:13:12.409 and mutual fund. Now, sometimes you have to give them 0:13:12.409 --> 0:13:17.049 years if they're new and they're just out, but that's 0:13:17.049 --> 0:13:19.640 what you're looking at. Then you need to look at 0:13:19.640 --> 0:13:23.489 your goal of what you want for this money. If 0:13:23.489 --> 0:13:26.210 you've already been in there a number of years, you 0:13:26.210 --> 0:13:27.570 already paid the load. 0:13:28.280 --> 0:13:32.289 It's already paid for. So look at the performance, look 0:13:32.289 --> 0:13:35.570 at what you need from your money. I know I 0:13:35.570 --> 0:13:38.770 like ETFs better than mutual funds, but that doesn't mean 0:13:38.770 --> 0:13:42.090 for those of you who have mutual funds, you need 0:13:42.090 --> 0:13:43.609 to get out of them. 0:13:44.059 --> 0:13:47.679 There are great mutual funds. I just like the liquidity 0:13:48.179 --> 0:13:53.419 of ETFs better for many reasons, just that simple. So, Chris, 0:13:53.539 --> 0:13:56.580 I can't help you except to have given you how 0:13:56.580 --> 0:13:59.919 you need to go about making sure what you have 0:13:59.919 --> 0:14:02.270 is what you need. Next question, KT. 0:14:02.590 --> 0:14:04.949 So this is from Sharon, and I like this one 0:14:04.950 --> 0:14:06.369 a lot, Suze. She's really... 0:14:06.369 --> 0:14:06.890 You like them all a lot. 0:14:07.679 --> 0:14:09.989 No, she's this one is a mom who's really trying 0:14:09.989 --> 0:14:14.150 to guide a 29 year-old daughter, and that 29 year-old 0:14:14.150 --> 0:14:16.789 daughter is totally ripe for these investments. 0:14:17.330 --> 0:14:20.770 Hello Suze, I'm trying to help our 29 year old 0:14:20.770 --> 0:14:26.010 daughter reallocate some of her funds in her company 401(k). 0:14:26.210 --> 0:14:27.739 Hopefully it's a Roth 401(k). 0:14:28.140 --> 0:14:33.590 Wait a minute. She has her contribution going into a Roth 401(k). 0:14:33.849 --> 0:14:37.539 But listen to this. Of course, the advisor that 0:14:37.585 --> 0:14:42.705 assisted her persuaded her to put the largest portion of 0:14:42.705 --> 0:14:48.306 her contribution into a Vanguard target date fund. I'm trying 0:14:48.306 --> 0:14:51.625 to encourage her to make note of the expense fees 0:14:51.625 --> 0:14:56.736 in these funds and educate her early. Plus, I, like you, 0:14:56.986 --> 0:14:57.866 don't think Target. 0:14:58.081 --> 0:15:01.361 Date Funds are the way to go. She also has 0:15:01.361 --> 0:15:05.271 an S&P fund and a couple of other funds. I 0:15:05.271 --> 0:15:08.781 realize she can sell and move out of accounts without 0:15:08.781 --> 0:15:14.481 triggering any tax consequences since it's in a 401(k). Just 0:15:14.481 --> 0:15:18.341 not sure what is the best way to move out. 0:15:18.802 --> 0:15:19.702 There you go. 0:15:20.002 --> 0:15:23.841 Well, you have two things going here right now. Number one, 0:15:24.242 --> 0:15:26.021 what's best for her money. 0:15:26.659 --> 0:15:31.729 And what's best for her self-esteem and her own empowerment. 0:15:32.599 --> 0:15:35.760 I don't want you to raise a daughter who is 0:15:35.760 --> 0:15:40.039 dependent on Mommy and what Mommy wants to do. I 0:15:40.039 --> 0:15:45.559 want her to make decisions on her own. Just that simple. 0:15:45.640 --> 0:15:48.520 Now I'll give you an example of my niece Sophia, 0:15:48.799 --> 0:15:52.280 who I love more than life itself. I wanted her 0:15:52.280 --> 0:15:57.200 to do certain things with her Roth IRA. I did. However, 0:15:57.359 --> 0:15:59.960 she wasn't comfortable in doing that. 0:16:00.330 --> 0:16:04.429 So we talked about it and she decided what she 0:16:04.429 --> 0:16:09.359 was comfortable in, and I was fine accepting that because 0:16:09.369 --> 0:16:12.729 she made the decision. She feels good about it, and 0:16:12.729 --> 0:16:16.609 now she is empowered to make her own decisions. Of course, 0:16:16.690 --> 0:16:19.809 she checks with Aunt Suze, but it's more important for 0:16:19.809 --> 0:16:24.650 Aunt Suze to empower her, to encourage her, and for 0:16:24.650 --> 0:16:28.409 her to feel secure in what she wanted to do. 0:16:29.080 --> 0:16:31.429 So I think it's important that you sit down with 0:16:31.429 --> 0:16:35.520 your daughter and you ask her, not tell her. You 0:16:35.520 --> 0:16:39.479 ask her why did she make those decisions. Does she 0:16:39.479 --> 0:16:43.469 feel good about them? Did she trust the adviser that 0:16:43.469 --> 0:16:46.419 was telling her what to do, because here's the truth, 0:16:46.840 --> 0:16:50.140 the target date mutual fund that she's in right now 0:16:50.320 --> 0:16:54.059 is probably all in the Standard and Poor's 500 index 0:16:54.200 --> 0:16:55.520 cause she's so young. 0:16:56.159 --> 0:17:00.799 So is she duplicating her investments? So I think it 0:17:00.799 --> 0:17:04.459 would be a great exercise to say, hey, let's go 0:17:04.459 --> 0:17:08.239 and look up what the top holdings are in all 0:17:08.239 --> 0:17:11.680 the mutual funds that you own, and let's see if 0:17:11.680 --> 0:17:13.119 there's any duplication. 0:17:13.604 --> 0:17:17.042 Let's look at what the expense ratio is in all 0:17:17.042 --> 0:17:19.843 the mutual funds that you own and see if there's 0:17:19.843 --> 0:17:23.683 a difference there and maybe are you better off just 0:17:23.683 --> 0:17:27.484 being in a Standard and Poor's 500 index fund, which 0:17:27.484 --> 0:17:31.713 she probably is, by the way, and that's it. So 0:17:31.723 --> 0:17:35.203 just look at everything she's invested in. 0:17:35.760 --> 0:17:39.959 And let her make the decisions where she on her 0:17:39.959 --> 0:17:44.699 own feels comfortable. Now, maybe she won't make as much money, 0:17:45.199 --> 0:17:50.520 but people first, then money, then things. Next question, KT. 0:17:51.439 --> 0:17:55.089 So, Suze, this is from Jennifer, who's 68 years old. 0:17:55.199 --> 0:17:58.699 She said, I have a question. For IRAs, you often 0:17:58.699 --> 0:18:03.349 advise whether young or old, you recommend only investing in 0:18:03.349 --> 0:18:07.280 Roth IRAs. I own my own small business and I've 0:18:07.280 --> 0:18:09.599 been investing in SEP IRAs. 0:18:10.094 --> 0:18:14.675 How are they different and should I consider investing instead 0:18:14.675 --> 0:18:16.344 in Roth IRAs? 0:18:16.454 --> 0:18:19.145 Well, why not have your cake and eat it too, OK, 0:18:19.604 --> 0:18:23.135 because you can actually do both. You can invest in 0:18:23.135 --> 0:18:27.334 a SEP IRA up to a maximum of 25% of 0:18:27.334 --> 0:18:31.813 your income, no more than 72,000 a year, and have 0:18:31.814 --> 0:18:37.775 a Roth IRA if your modified adjusted gross income qualifies. However, 0:18:38.310 --> 0:18:44.089 you can also, if you want, convert money from your 0:18:44.089 --> 0:18:48.188 SEP IRA into your Roth. Now, you are 68 years 0:18:48.189 --> 0:18:52.069 of age, and you have to decide how long you're 0:18:52.069 --> 0:18:55.750 gonna work. So maybe you wait until your income goes 0:18:55.750 --> 0:18:59.709 down dramatically after you're no longer working, and then you 0:18:59.709 --> 0:19:02.979 start to convert some of the money from your SEP 0:19:02.979 --> 0:19:07.989 IRA into your Roth, so you don't add to your income. 0:19:08.229 --> 0:19:11.949 In the meantime, fund the Roth IRA up to your 0:19:11.949 --> 0:19:17.349 max of $8,600 a year since you are over 50. 0:19:17.660 --> 0:19:23.030 Here's what's so sad, everybody. Few years ago with Secure 2.0, 0:19:23.229 --> 0:19:26.989 they decided, all right, you can all have a Roth 0:19:26.989 --> 0:19:32.250 SEP IRA, but good luck finding one. I've researched Schwab. 0:19:33.704 --> 0:19:37.525 Vanguard stated they're not going to allow them. E-Trade. Nobody 0:19:37.525 --> 0:19:41.594 wants them, so you can always go from a SEP 0:19:41.594 --> 0:19:46.655 IRA and convert to a Roth IRA. Just remember you 0:19:46.655 --> 0:19:49.625 owe taxes on any amount that you convert. All right, next. 0:19:50.494 --> 0:19:53.584 OK, this is a question for you, and the subject 0:19:53.584 --> 0:19:57.244 was when to take gains off the table. 0:19:57.689 --> 0:20:01.959 Hi Suze. Question. I've heard Fitzy say if you've doubled 0:20:01.959 --> 0:20:06.649 your money in a stock or ETF, you can take 0:20:06.650 --> 0:20:10.889 the gain and leave the original amount in to continue 0:20:10.890 --> 0:20:14.130 to grow, hopefully. Did I hear that correctly? 0:20:14.489 --> 0:20:17.209 Yes and Fitzy, everybody is Keith Fitz-Gerald... 0:20:17.770 --> 0:20:18.650 Fitzy's like her brother. 0:20:18.719 --> 0:20:23.489 ... and he has something called a free trade where 0:20:23.489 --> 0:20:26.209 if you buy something and let's say you buy it 0:20:26.209 --> 0:20:27.229 at 50. 0:20:27.609 --> 0:20:32.099 And it goes to 100, then take half off the 0:20:32.099 --> 0:20:36.000 table and just leave, meaning you sell, take your gain, 0:20:36.380 --> 0:20:39.979 and then everything that's remaining, the other 50% that you 0:20:39.979 --> 0:20:44.079 left in there, which was your obviously your original investment, 0:20:44.540 --> 0:20:47.969 it's free money. So no matter what happens after that, 0:20:48.239 --> 0:20:50.040 you're fine. However, 0:20:51.540 --> 0:20:56.260 Not that I like to disagree with him very often, but, however, 0:20:56.579 --> 0:21:00.659 it depends. I want to tell you, it depends, where 0:21:00.739 --> 0:21:05.060 is that money held? Is it in a retirement account 0:21:05.060 --> 0:21:06.459 or is it not? 0:21:06.790 --> 0:21:10.140 Because if it's in a retirement account, OK, you can 0:21:10.140 --> 0:21:14.020 sell half, no tax consequences, but if it's not in 0:21:14.020 --> 0:21:18.660 a retirement account and depending on what state you live in, 0:21:19.010 --> 0:21:21.920 let's say, and this has happened, I've seen it happen, 0:21:22.300 --> 0:21:25.859 that you buy something, it goes from 7 to 14, 0:21:25.930 --> 0:21:29.839 you bought a lot of it, or 25 to 50 0:21:30.849 --> 0:21:32.339 within less than a year. 0:21:32.880 --> 0:21:36.400 That means when you sell, you're going to owe ordinary 0:21:36.400 --> 0:21:39.839 income taxes on it and if you're in a high 0:21:39.839 --> 0:21:44.040 state tax bracket as well as federal, you may end 0:21:44.040 --> 0:21:47.800 up giving the majority of that gain back to the 0:21:47.800 --> 0:21:51.718 government in taxes. So all of a sudden you don't 0:21:51.719 --> 0:21:57.359 have a 100% gain there and then was it worth it? 0:21:58.020 --> 0:22:01.920 So sometimes it's worth it and sometimes it's not. I 0:22:01.920 --> 0:22:05.199 would not say that's a hard and fast rule for everybody. 0:22:05.380 --> 0:22:09.300 It depends, in my opinion, your tax bracket, the state 0:22:09.300 --> 0:22:12.810 you live in, and is it inside or outside of 0:22:12.810 --> 0:22:13.300 a retirement 0:22:13.415 --> 0:22:16.295 account and is it going to be a long or 0:22:16.295 --> 0:22:19.655 short term gain? You have to take all of that 0:22:19.655 --> 0:22:24.375 into consideration. Nothing is a hard and fast rule. Yes, KT. 0:22:24.935 --> 0:22:27.334 So that's interesting you disagree with your Fitzy. 0:22:27.935 --> 0:22:28.834 Just listen. 0:22:29.660 --> 0:22:32.780 I love him very much, but I have my opinions. 0:22:32.979 --> 0:22:36.669 He has his opinions. I trust him and honor him 0:22:36.869 --> 0:22:40.390 and normally do everything like he would want in terms 0:22:40.390 --> 0:22:43.979 of stock picking ETFs and things like that, but I 0:22:43.979 --> 0:22:46.680 do have my own way of thinking about things... 0:22:46.680 --> 0:22:47.159 And he defers to you also. 0:22:47.989 --> 0:22:51.069 Sometimes. So that's all. That's just how I think about it. 0:22:51.150 --> 0:22:54.619 Doesn't make him wrong. Doesn't make me right, although I 0:22:54.619 --> 0:22:56.560 think it does. Go on. All right. 0:22:57.119 --> 0:22:58.920 I agree with Suze. OK. 0:22:59.119 --> 0:23:00.849 Of course, because you're married to me. 0:23:00.949 --> 0:23:04.790 All right, this is from Rushali. This is a very 0:23:04.790 --> 0:23:07.760 sweet email, and, and, um, and I was thinking a 0:23:07.760 --> 0:23:11.119 lot about her. She said, first and foremost, Suze, I 0:23:11.119 --> 0:23:12.680 wanna thank you for being a role 0:23:12.834 --> 0:23:17.474 model for women like me all around the world. I 0:23:17.474 --> 0:23:21.073 am an Indian woman who's been living in Oklahoma City 0:23:21.074 --> 0:23:25.474 for 22 years, and I recently became a US citizen 0:23:25.474 --> 0:23:26.385 six years ago. 0:23:26.555 --> 0:23:27.194 Congratulations. 0:23:27.194 --> 0:23:31.405 Yeah, good for you, she said. Though sadly, Suze, eight 0:23:31.405 --> 0:23:35.155 years ago my husband took his own life after he 0:23:35.155 --> 0:23:39.534 got laid off from his job in 2018. 0:23:40.209 --> 0:23:44.513 I am a 48-year-old widow with two girls, one is 0:23:44.513 --> 0:23:50.688 14 and another 17. I inherited his stocks worth $1.8 0:23:50.689 --> 0:23:57.089 million now and his IRA worth about $1.2 million. The 0:23:57.089 --> 0:24:00.770 house is paid off. I have no debt. My daughter 0:24:00.770 --> 0:24:04.530 just got free tuition for four years to Vanderbilt. Wow, 0:24:04.810 --> 0:24:05.670 smart daughter. 0:24:06.369 --> 0:24:11.810 I work at IT and make $65,000 annually. Please let 0:24:11.810 --> 0:24:14.208 me know if I need to buy a home or 0:24:14.209 --> 0:24:18.530