1 00:00:08,039 --> 00:00:11,670 KT: Welcome everyone to the Women and Money podcast, and everyone's 2 00:00:11,670 --> 00:00:12,680 KT: smart enough to listen. 3 00:00:12,680 --> 00:00:13,560 Suze: What's the date, KT? 4 00:00:13,829 --> 00:00:18,700 KT: It is March 12th, and Suze is in a state of.. 5 00:00:18,889 --> 00:00:21,479 Suze: Let me tell you, everybody, let me just tell you 6 00:00:21,479 --> 00:00:24,099 Suze: how this podcast started. 7 00:00:24,879 --> 00:00:25,760 KT: She brought the wrong pen. 8 00:00:25,760 --> 00:00:28,069 Suze: Wait, let me tell you this. All right, so we 9 00:00:28,069 --> 00:00:31,520 Suze: sit down and she looks at me, she says, I 10 00:00:31,520 --> 00:00:33,319 Suze: don't like this pen. Get me another pen. 11 00:00:33,470 --> 00:00:34,689 KT: No, I want the blue pen. 12 00:00:35,319 --> 00:00:37,278 Suze: All right, so I go, OK. 13 00:00:37,959 --> 00:00:38,769 KT: And she comes back... 14 00:00:39,580 --> 00:00:40,569 Suze: I come back with a... 15 00:00:40,569 --> 00:00:43,000 KT: A red pen. I said, No, Suze, I want the 16 00:00:43,000 --> 00:00:46,098 KT: blue one. Where is it? I said, there's blue pens everywhere. 17 00:00:46,330 --> 00:00:48,290 KT: Find the blue one. She said, You get up and 18 00:00:48,290 --> 00:00:50,549 KT: get it. I said, No, I'm ready. 19 00:00:51,689 --> 00:00:54,290 Suze: So in the meantime, I get her a blue pen. 20 00:00:54,759 --> 00:00:57,720 Suze: OK, I bring it back to her and now she's happy. 21 00:00:58,060 --> 00:01:00,970 Suze: We're about to start and she says, get those papers 22 00:01:00,970 --> 00:01:01,689 Suze: off the desk. 23 00:01:01,849 --> 00:01:07,889 KT: No, organize yourself. She has too much clutter. Suze is clutter. 24 00:01:08,089 --> 00:01:13,529 Suze: I'm not clutter. I have a, a webinar after this with... 25 00:01:13,529 --> 00:01:14,769 KT: The Queen of clutter... 26 00:01:14,769 --> 00:01:19,569 Suze: With Humana, and it's important. It's a big one hour webinar. 27 00:01:19,639 --> 00:01:21,209 Suze: It's live, so I have 28 00:01:21,294 --> 00:01:26,334 Suze: all these notes about their retirement plans and everything, and 29 00:01:26,334 --> 00:01:30,474 Suze: now she's made me clear everything because it irritates her 30 00:01:30,474 --> 00:01:31,134 Suze: to see it. 31 00:01:31,285 --> 00:01:32,964 Suze: Are you OK now? 32 00:01:33,074 --> 00:01:37,494 KT: I'm ready to go. OK, everyone, March 12th, let's rock and roll. 33 00:01:38,375 --> 00:01:41,584 Suze: Wait, wait, and then you know what she says to me earlier, Suze, 34 00:01:41,654 --> 00:01:45,355 Suze: you know how I know today is March 12th. 35 00:01:46,474 --> 00:01:47,855 KT: No, she sat down and said. 36 00:01:48,360 --> 00:01:52,400 KT: Now what's today? I said March 12th because tomorrow's Friday 37 00:01:52,400 --> 00:01:57,300 KT: the 13th. Do you believe that's an auspicious, unlucky day? 38 00:01:57,800 --> 00:01:58,519 Suze: What does that mean? 39 00:01:58,639 --> 00:02:01,160 KT: Do you believe in that Friday the 13th? 40 00:02:01,830 --> 00:02:05,500 Suze: Is an auspicious unlucky day. There's no such thing as... (laughgs) 41 00:02:08,669 --> 00:02:09,339 KT: Do you think it's a... (laughs) 42 00:02:11,369 --> 00:02:14,758 KT: Wait, do you think it's auspicious or unlucky? 43 00:02:14,968 --> 00:02:16,258 Suze: I think I don't care. I don't know. 44 00:02:18,008 --> 00:02:20,869 KT: All I know is that Friday the 13th. 45 00:02:22,369 --> 00:02:22,710 Suze: Is what? 46 00:02:22,710 --> 00:02:28,419 KT: Taylor Swift's favorite day. OK, here we go. March 12... 47 00:02:28,690 --> 00:02:28,888 Suze: Did I not tell you, all of this is gonna be very difficult.. 48 00:02:31,800 --> 00:02:34,729 KT: My first, my first reading is from Stacy, but it's 49 00:02:34,729 --> 00:02:37,960 KT: not a question. It's a heartfelt thank you. 50 00:02:38,169 --> 00:02:38,190 Suze: Oh good. 51 00:02:39,008 --> 00:02:41,210 KT: So here we're gonna open with a heartfelt thank you, Suze. 52 00:02:41,990 --> 00:02:45,740 KT: Stacy said, hi Suze and KT. I wanted to send 53 00:02:45,740 --> 00:02:48,470 KT: you a quick thank you. You're gonna love what she 54 00:02:48,470 --> 00:02:52,410 KT: has to say. I recently published a book called Project 55 00:02:52,508 --> 00:02:57,669 KT: Us about a married couple rediscovering each other after their 56 00:02:57,669 --> 00:03:00,009 KT: daughter leaves for college. 57 00:03:03,100 --> 00:03:06,660 KT: It almost sounds like an X-rated book. They're rediscovering each other, 58 00:03:06,949 --> 00:03:10,520 KT: she said, while writing it, I kept thinking about the cute, 59 00:03:10,710 --> 00:03:13,990 KT: silly love you two share with the world. That means 60 00:03:13,990 --> 00:03:18,639 KT: you and me, Suze. The playful, teasing partnership, and obvious 61 00:03:18,639 --> 00:03:23,029 KT: respect you have for each other definitely helped inspire the 62 00:03:23,029 --> 00:03:28,639 KT: tone of the relationship in the story. So Stacey is... 63 00:03:28,869 --> 00:03:29,109 Suze: Do we get royalties? 64 00:03:29,109 --> 00:03:31,000 KT: I was gonna say like Stacy. 65 00:03:31,559 --> 00:03:34,610 KT: She said she's a brand new author and just wanted 66 00:03:34,610 --> 00:03:39,729 KT: to say our love is contagious. Thanks, Stacy. Good luck 67 00:03:39,729 --> 00:03:41,740 KT: with "Us." 68 00:03:42,949 --> 00:03:45,199 KT: Wasn't there a TV show called Us? 69 00:03:45,350 --> 00:03:49,610 Suze: I think there's a very famous one, something Us. Now, KT, 70 00:03:49,990 --> 00:03:51,550 Suze: are we gonna be able to keep it together? 71 00:03:51,550 --> 00:03:53,589 KT: I'm together. I'm ready. 72 00:03:53,710 --> 00:03:55,630 Suze: Wait, but I have to... because I wanna tell a 73 00:03:55,630 --> 00:03:58,070 Suze: little story. Can I just do that? All right. 74 00:03:58,539 --> 00:04:03,339 Suze: Yesterday we go into Lowe's. Not a big deal. Wait, 75 00:04:03,449 --> 00:04:05,500 Suze: we go into Lowe's and... 76 00:04:05,500 --> 00:04:10,380 KT: Suze never ever goes into any stores. When we go 77 00:04:10,380 --> 00:04:13,619 KT: out together, she waits for me in the car. I 78 00:04:13,619 --> 00:04:16,739 KT: shouldn't be giving so much information. People are gonna go 79 00:04:16,738 --> 00:04:18,500 KT: driving around parking lots looking for you. 80 00:04:18,579 --> 00:04:20,899 Suze: So this time she says, Won't you please? 81 00:04:21,420 --> 00:04:22,220 KT: I say, come in with me, Suze, please. 82 00:04:22,339 --> 00:04:24,600 Suze: I go, OK, KT. 83 00:04:25,290 --> 00:04:28,329 Suze: Right, so I go into Lowe's and we're looking for 84 00:04:28,329 --> 00:04:29,289 Suze: this stupid umbrella stand. 85 00:04:29,399 --> 00:04:31,549 KT: We're looking for an umbrella stand and we're in an 86 00:04:31,549 --> 00:04:35,570 KT: aisle in the umbrella department and there's no one to 87 00:04:35,570 --> 00:04:35,980 KT: help us. 88 00:04:36,488 --> 00:04:39,200 Suze: So this man, she goes and gets this man. He 89 00:04:39,200 --> 00:04:42,089 Suze: comes up and he's helping us and he goes, You 90 00:04:42,089 --> 00:04:46,329 Suze: look like Suze Orman. And I say, I am Suze Orman. 91 00:04:46,410 --> 00:04:47,859 Suze: And he goes, He's like, right. 92 00:04:47,970 --> 00:04:48,570 KT: He didn't believe her. 93 00:04:48,769 --> 00:04:50,410 Suze: He refused to believe me. 94 00:04:50,410 --> 00:04:52,730 KT: And I didn't have my phone to show and she 95 00:04:52,730 --> 00:04:53,488 KT: didn't have a phone. We left it in the car. 96 00:04:53,609 --> 00:04:56,369 Suze: I never carry my phone with me out there. So, 97 00:04:56,519 --> 00:04:58,868 Suze: so I said, Do you see these earrings? I always 98 00:04:58,869 --> 00:05:01,929 Suze: have these earrings on. See my necklace? That's how you 99 00:05:01,928 --> 00:05:05,230 Suze: know it's really me. He said, Yeah, right. He refused, 100 00:05:05,450 --> 00:05:10,089 Suze: and I said, OK, no problem. So now we go 101 00:05:10,089 --> 00:05:13,890 Suze: to another part of the store because what he gave 102 00:05:13,890 --> 00:05:16,690 Suze: us wouldn't work. We were trying to find another solution 103 00:05:17,070 --> 00:05:21,029 Suze: to this umbrella problem we were having. But anyway, so 104 00:05:21,029 --> 00:05:22,570 Suze: we go to this other part... 105 00:05:24,029 --> 00:05:25,618 KT: He's this really big guy in the, in the aisle. Huge. 106 00:05:26,950 --> 00:05:31,769 Suze: And he says to me, you look like Suze Orman. 107 00:05:32,019 --> 00:05:34,149 Suze: And I go, That's because I am Suze Orman. And 108 00:05:34,149 --> 00:05:36,630 Suze: he goes, No, you're not. Oh, no way. I said, 109 00:05:36,920 --> 00:05:39,868 Suze: what would Suze Orman be doing in doing in this aisle? 110 00:05:39,920 --> 00:05:43,289 Suze: There is no way that you would be in Lowe's. 111 00:05:43,299 --> 00:05:44,269 Suze: And then he calls over 112 00:05:44,350 --> 00:05:47,669 Suze: this other guy, and he says, does that look like 113 00:05:47,670 --> 00:05:49,709 Suze: Suze Orman to you? And he goes, I don't know 114 00:05:49,709 --> 00:05:51,829 Suze: who she is. I don't know Suze Orman. 115 00:05:52,549 --> 00:05:54,970 KT: And he said, she's like the most famous money lady in the world. 116 00:05:54,988 --> 00:05:57,350 KT: And the guy looked at him and he said, What 117 00:05:57,350 --> 00:05:59,549 KT: do I know about money? I just use my phone. 118 00:05:59,750 --> 00:06:03,190 Suze: All right, so anyway, so now I'm like, OK, no problem. 119 00:06:03,299 --> 00:06:05,480 Suze: Now we start walking out. 120 00:06:05,809 --> 00:06:10,130 Suze: And one by one people were looking at me wondering, 121 00:06:10,209 --> 00:06:14,058 Suze: I can tell when this happens, wondering, are you Suze Orman? 122 00:06:14,290 --> 00:06:16,260 Suze: And I just looked at them and I said, no, 123 00:06:16,410 --> 00:06:19,250 Suze: I'm not. That was that anyway. 124 00:06:20,010 --> 00:06:22,190 KT: That was quite an adventure. 125 00:06:23,529 --> 00:06:24,489 Suze: I never going into Lowe's again. 126 00:06:24,488 --> 00:06:28,222 KT: She never comes with me anywhere, but I was happy she did. 127 00:06:28,222 --> 00:06:30,822 Suze: Remember the days when I used to go in with you? 128 00:06:31,183 --> 00:06:34,412 KT: Oh, we would never get anything done. Everyone would ask 129 00:06:34,412 --> 00:06:38,072 KT: her questions, shake her hand. Can I take a photo 130 00:06:38,072 --> 00:06:42,382 KT: with you? And Suze's very respectful and loves her audience, 131 00:06:42,502 --> 00:06:46,423 KT: loves her fans, loves people, and she'd always accommodate them 132 00:06:46,423 --> 00:06:48,703 KT: and forget what, what I, that I was there. 133 00:06:48,876 --> 00:06:51,316 Suze: You are just mincemeat. All right, we should get to 134 00:06:51,315 --> 00:06:52,355 Suze: the podcast, I think. 135 00:06:52,996 --> 00:06:58,355 KT: OK, here is my first question from Teresa. She said, Hi, Suze. 136 00:06:58,716 --> 00:07:06,605 KT: My sister unexpectedly passed away in 2016. I inherited her IRA, 137 00:07:06,835 --> 00:07:10,215 KT: and I still have RMDs that are distributed. 138 00:07:10,709 --> 00:07:14,230 KT: Can I transfer from this IRA into a Roth? 139 00:07:15,309 --> 00:07:19,429 Suze: So you cannot, just so you know, you cannot take 140 00:07:19,429 --> 00:07:24,390 Suze: an inherited IRA and convert it or transfer it to 141 00:07:24,390 --> 00:07:29,029 Suze: a Roth. It cannot happen. You have to take required 142 00:07:29,029 --> 00:07:30,950 Suze: minimum distributions from it. 143 00:07:31,399 --> 00:07:35,010 Suze: And you have to pay ordinary income taxes on it. 144 00:07:35,329 --> 00:07:39,450 Suze: You cannot take the RMDs, by the way, which many 145 00:07:39,450 --> 00:07:43,309 Suze: of you think you can, and directly put them in 146 00:07:43,489 --> 00:07:48,049 Suze: a Roth account. You cannot because you have to have 147 00:07:48,049 --> 00:07:49,429 Suze: earned income. 148 00:07:50,040 --> 00:07:53,239 Suze: So you can take the RMDs and if you happen 149 00:07:53,239 --> 00:07:56,890 Suze: to have earned income because now it is your money, 150 00:07:57,079 --> 00:08:01,880 Suze: you could use that money to fund a contributory Roth, 151 00:08:02,160 --> 00:08:05,470 Suze: but you can't just put them directly in there. You 152 00:08:05,470 --> 00:08:09,899 Suze: cannot do that. Next question, my dear love bug. 153 00:08:10,954 --> 00:08:14,394 KT: This is from Sonja. Hello, Suze and KT. I'm maxing 154 00:08:14,394 --> 00:08:19,934 KT: out my Roth 403B and Roth IRA contributions. Between these 155 00:08:19,934 --> 00:08:23,505 KT: rent and bills, I don't have much money left over 156 00:08:23,505 --> 00:08:26,315 KT: at the end of the month. Is it OK to 157 00:08:26,315 --> 00:08:31,515 KT: plan to use my Roth contributions as my emergency fund? 158 00:08:31,795 --> 00:08:36,234 KT: I am single, 59, have no debt, and live a 159 00:08:36,234 --> 00:08:38,414 KT: fairly frugal lifestyle. What do you think? 160 00:08:40,080 --> 00:08:40,859 Suze: Pop quizzy. 161 00:08:41,739 --> 00:08:41,749 KT: Hm. 162 00:08:44,129 --> 00:08:46,028 KT: I don't have much at the end of the month, 163 00:08:46,059 --> 00:08:49,448 KT: OK to use my Roth contributions... 164 00:08:49,448 --> 00:08:50,968 Suze: As an emergency fund. 165 00:08:51,760 --> 00:08:52,239 Suze: Hmm. 166 00:08:53,539 --> 00:08:56,340 Suze: Come on, we don't have much time. Tick tick tick 167 00:08:56,340 --> 00:08:58,250 Suze: tick tick tick tick tick tick tick. 168 00:08:58,859 --> 00:08:58,961 KT: No. 169 00:08:58,961 --> 00:09:02,580 Suze: It's not OK. All right, so it is absolute... (Suze makes the wrong answer noise) 170 00:09:06,469 --> 00:09:09,299 Suze: You missed that, didn't you? You just missed that. Yeah, 171 00:09:09,349 --> 00:09:12,349 Suze: I knew you did it. Listen to me, Sonja. Not 172 00:09:12,349 --> 00:09:16,929 Suze: only is it OK, I have been telling people forever, 173 00:09:17,390 --> 00:09:21,630 Suze: if you do not have at least a twelve-month emergency fund. 174 00:09:22,349 --> 00:09:25,869 Suze: I don't want you to miss the opportunity of being 175 00:09:25,869 --> 00:09:29,349 Suze: able to fund a Roth, cause you can only fund 176 00:09:29,349 --> 00:09:31,659 Suze: a Roth every year up to a max, and then 177 00:09:31,659 --> 00:09:35,968 Suze: you've lost that year if you haven't funded it. Because 178 00:09:36,150 --> 00:09:40,709 Suze: you can withdraw your original contributions any time you want 179 00:09:40,710 --> 00:09:44,750 Suze: without taxes or penalties regardless of age or how long 180 00:09:44,750 --> 00:09:46,250 Suze: the Roth has been open. 181 00:09:46,960 --> 00:09:51,679 Suze: You could take your emergency fund money, contribute it to 182 00:09:51,679 --> 00:09:55,440 Suze: a Roth, keep it in a money market account, savings account, 183 00:09:55,539 --> 00:09:59,939 Suze: whatever it is within the Roth. Do not invest it 184 00:10:00,320 --> 00:10:03,750 Suze: and let it build and build and build. If you 185 00:10:03,750 --> 00:10:03,880 Suze: happen 186 00:10:04,049 --> 00:10:08,109 Suze: to need it, you can withdraw it just that simple. 187 00:10:08,179 --> 00:10:12,699 KT: All right. OK, from David. Hi Suze and KT retired 188 00:10:12,700 --> 00:10:19,179 KT: at 62, wife 63, will be pulling out $75,000 a 189 00:10:19,179 --> 00:10:26,140 KT: year for living expenses. Now he said brokerage account balance $510,000. 190 00:10:26,590 --> 00:10:33,940 KT: Roth, 710,000. IRA 1,300,000, good for him. 191 00:10:34,520 --> 00:10:37,969 KT: Are we better pulling out living expenses from a brokerage 192 00:10:37,969 --> 00:10:42,090 KT: account and doing a Roth conversion for that amount, or 193 00:10:42,090 --> 00:10:45,609 KT: should we pull that amount out of our IRA and 194 00:10:45,609 --> 00:10:48,419 KT: not do a Roth conversion? Thanks for your help. 195 00:10:48,570 --> 00:10:52,250 Suze: Me, I would absolutely pull it out of my IRA. Why? 196 00:10:52,570 --> 00:10:55,130 Suze: Because the more you can get out of your IRA 197 00:10:55,130 --> 00:10:58,289 Suze: right now, live on it, pay taxes on it, because 198 00:10:58,289 --> 00:11:00,609 Suze: you'd have to pay taxes on it anyway if you 199 00:11:00,609 --> 00:11:03,530 Suze: converted it, and you're living on it. 200 00:11:03,880 --> 00:11:07,479 Suze: The more you let your Roth grow tax-free, the more 201 00:11:07,479 --> 00:11:12,530 Suze: you let your investment account grow tax deferred, possibly tax-free 202 00:11:12,530 --> 00:11:15,590 Suze: to the surviving spouse if one of you dies. So 203 00:11:15,690 --> 00:11:19,770 Suze: I would absolutely withdraw it from my taxable IRA and live on it. 204 00:11:20,760 --> 00:11:24,359 KT: He's got 1.3 in. Next is Sheila. She said, Suze, if 205 00:11:24,359 --> 00:11:27,369 KT: my sister is on all of my accounts and can 206 00:11:27,369 --> 00:11:31,409 KT: access the money, why do I need a revocable trust? 207 00:11:31,929 --> 00:11:35,609 KT: I'm a retired educator 76 years old with a teacher 208 00:11:35,609 --> 00:11:39,559 KT: pension and very small assets. I own my own home, 209 00:11:39,770 --> 00:11:43,468 KT: no mortgage in a city, and can pay for everything 210 00:11:43,469 --> 00:11:45,950 KT: so far. Thank you, Sheila. 211 00:11:46,330 --> 00:11:49,530 Suze: Did you notice the word so far? Oh, you did 212 00:11:49,530 --> 00:11:52,569 Suze: notice it. All right, so Sheila, listen to me and 213 00:11:52,570 --> 00:11:55,270 Suze: listen to me closely. You are an educator. 214 00:11:56,400 --> 00:12:00,119 Suze: Haven't you learned the lesson yourself that things can happen 215 00:12:00,119 --> 00:12:04,179 Suze: to anybody at any time. If all of a sudden 216 00:12:04,520 --> 00:12:07,640 Suze: you become incapacitated. 217 00:12:08,330 --> 00:12:11,569 Suze: And hey, you don't find that a problem whatsoever cause 218 00:12:11,570 --> 00:12:14,848 Suze: she's on your home title with you, but you need 219 00:12:14,849 --> 00:12:19,890 Suze: to sell the house, can you? No. Why? Because if 220 00:12:19,890 --> 00:12:23,809 Suze: you own it and join tenancy with her, then both 221 00:12:23,809 --> 00:12:26,549 Suze: of you have to sign in order to sell. 222 00:12:27,179 --> 00:12:31,599 Suze: If you're incapacitated, you can't sign. So now she's going 223 00:12:31,599 --> 00:12:35,739 Suze: to have to declare you incompetent, get a conservatorship for you. Oh, 224 00:12:35,940 --> 00:12:39,218 Suze: now she has problems from that point on. If you 225 00:12:39,219 --> 00:12:43,218 Suze: simply had a living revocable trust that was just in 226 00:12:43,219 --> 00:12:48,539 Suze: your name, Sheila, trustee for the Sheila revocable Trust dated 227 00:12:48,539 --> 00:12:50,159 Suze: whenever you created it. 228 00:12:50,659 --> 00:12:55,250 Suze: And your sister was the successor trustee, the one who 229 00:12:55,250 --> 00:12:58,400 Suze: would make the decisions if you couldn't make them yourself, 230 00:12:59,219 --> 00:13:03,739 Suze: as well as the successor beneficiary, so everything is held 231 00:13:03,739 --> 00:13:08,299 Suze: for your benefit while you're alive and her benefit after 232 00:13:08,299 --> 00:13:09,339 Suze: you have died. 233 00:13:09,969 --> 00:13:12,409 Suze: It wouldn't go through probate, so you don't have to 234 00:13:12,409 --> 00:13:16,359 Suze: worry about that, and you don't have to worry in 235 00:13:16,359 --> 00:13:21,210 Suze: case something happens. And now she's incapacitated and she no 236 00:13:21,210 --> 00:13:24,989 Suze: longer can sign for you or do anything. You now 237 00:13:25,169 --> 00:13:28,809 Suze: have her on all your accounts. She's not capable of 238 00:13:28,809 --> 00:13:31,460 Suze: taking care of you if something happens to you. Who's 239 00:13:31,460 --> 00:13:33,809 Suze: going to do that for you, Sheila? Who? 240 00:13:34,570 --> 00:13:37,289 Suze: You have to understand that. 241 00:13:37,960 --> 00:13:41,320 Suze: What's really important and the reason why I have been 242 00:13:41,320 --> 00:13:44,859 Suze: harping on the fact that every single one of you 243 00:13:45,119 --> 00:13:48,479 Suze: should have a revocable living trust, in my opinion, for 244 00:13:48,479 --> 00:13:53,719 Suze: the past almost 40 years, are you kidding me, is 245 00:13:53,719 --> 00:13:58,549 Suze: because I've seen what happens when you don't. Now maybe 246 00:13:58,549 --> 00:14:01,820 Suze: it will go great for you. Maybe there'll be no problems, 247 00:14:02,000 --> 00:14:04,839 Suze: but maybe there will be. Go to 248 00:14:05,030 --> 00:14:09,809 Suze: MustHave docs.com. Everybody, you can get the four must-have documents 249 00:14:10,000 --> 00:14:14,710 Suze: for what? For $99. $2,500 worth of state of the 250 00:14:14,710 --> 00:14:18,330 Suze: art documents that you can share with your sister Sheila 251 00:14:18,510 --> 00:14:21,869 Suze: so she can have them as well. Next question, KT. 252 00:14:22,030 --> 00:14:25,309 KT: OK, this is from Ashley. She said, Hi, Suze. I'm 253 00:14:25,309 --> 00:14:29,630 KT: a 63-year-old widow who recently was laid off from a 254 00:14:29,630 --> 00:14:32,090 KT: $100,000 a year job. 255 00:14:32,479 --> 00:14:36,599 KT: And she said, I'm now making $60,000. Half of that 256 00:14:36,599 --> 00:14:40,159 KT: is Social Security. I can survive on this. I have 257 00:14:40,159 --> 00:14:44,440 KT: no debt. I own my condo, car, etc. I have 258 00:14:44,440 --> 00:14:49,150 KT: $800,000 in investments, and my condo is worth half a 259 00:14:49,150 --> 00:14:52,760 KT: million dollars. And now Ashley said she has a dilemma. 260 00:14:53,409 --> 00:14:56,409 KT: Should I move to another state to live with and 261 00:14:56,409 --> 00:15:00,789 KT: take care of my 87 year old mom in her home? 262 00:15:01,049 --> 00:15:03,650 KT: I honestly don't want to go back to my hometown, 263 00:15:03,760 --> 00:15:08,809 KT: but financially it would be amazing. I could invest most 264 00:15:08,809 --> 00:15:12,849 KT: of my income while living there. Also, my mother has 265 00:15:12,849 --> 00:15:14,190 KT: a lot of money. 266 00:15:14,880 --> 00:15:18,280 KT: This part really made me laugh and reminds me that 267 00:15:18,280 --> 00:15:22,000 KT: my inheritance may be spent if she moves to a 268 00:15:22,000 --> 00:15:23,359 KT: retirement home. 269 00:15:24,500 --> 00:15:27,520 KT: Good on you, mama. I'm afraid I won't have enough 270 00:15:27,520 --> 00:15:30,739 KT: to retire on and feel pressure to go. Suze, I 271 00:15:30,739 --> 00:15:33,140 KT: would love to hear your thoughts on this. What do 272 00:15:33,140 --> 00:15:33,690 KT: you think? 273 00:15:33,780 --> 00:15:35,000 Suze: KT, what would you tell her? 274 00:15:35,340 --> 00:15:38,700 KT: I'd say if, well, first of all, she said she 275 00:15:38,700 --> 00:15:40,900 KT: just doesn't want to go back to her hometown, but 276 00:15:40,900 --> 00:15:44,179 KT: living with her mom financially would be amazing. 277 00:15:44,549 --> 00:15:47,549 KT: She didn't say anything about I'd love to go back 278 00:15:47,549 --> 00:15:51,260 KT: and take care of Mommy. She didn't say that. She's 279 00:15:51,260 --> 00:15:55,390 KT: a little selfish, Ashley. You're thinking about yourself and your 280 00:15:55,390 --> 00:15:55,929 KT: mom is... 281 00:15:55,979 --> 00:15:57,469 Suze: KT, that is not necessarily selfish. 282 00:15:57,549 --> 00:16:01,190 KT: All right, well, that, I, I like, she's being honest, 283 00:16:01,299 --> 00:16:03,510 KT: but I also like that her mom is being honest 284 00:16:03,510 --> 00:16:05,190 KT: and kind of threatening her. 285 00:16:05,510 --> 00:16:07,419 Suze: Yeah, well, that would make me not wanna go. 286 00:16:07,869 --> 00:16:10,710 KT: Well, I think that she should do it. Just go 287 00:16:10,710 --> 00:16:13,409 KT: and try it, but I think she's looking for a way. 288 00:16:14,159 --> 00:16:17,119 KT: To save a whole lot of money right now. 289 00:16:17,229 --> 00:16:17,840 Suze: All right, so here's what... 290 00:16:18,349 --> 00:16:19,409 KT: She's 63. 291 00:16:20,239 --> 00:16:22,679 Suze: So here's what I would tell you, Ashley. 292 00:16:24,190 --> 00:16:27,510 Suze: Once you do this, it's done. You're gonna be there, 293 00:16:27,780 --> 00:16:31,590 Suze: all right? So, I would give it time. If it 294 00:16:31,590 --> 00:16:37,450 Suze: is true that you can live on the $60,000 a year, 295 00:16:37,750 --> 00:16:44,190 Suze: no problem, and let the $800,000 in investments grow, plus 296 00:16:44,190 --> 00:16:48,989 Suze: your condo is worth $500,000 and you own it outright. 297 00:16:49,119 --> 00:16:53,650 Suze: Right, your car and everything you own outright, you have 298 00:16:53,650 --> 00:17:00,510 Suze: $1.3 million that is growing and growing, that could easily 299 00:17:00,510 --> 00:17:06,150 Suze: generate for you, besides your pension and everything, another $50,000, $70,000, 300 00:17:06,229 --> 00:17:10,188 Suze: possibly $80,000 as you get older. If you had to, 301 00:17:10,270 --> 00:17:12,619 Suze: you could do a reverse mortgage... There's all kinds of things 302 00:17:12,619 --> 00:17:14,989 Suze: that you could do. 303 00:17:16,259 --> 00:17:19,359 Suze: So, I do not want you to go back. 304 00:17:20,109 --> 00:17:23,479 Suze: And live at your mother's because of the money you 305 00:17:23,479 --> 00:17:25,119 Suze: could save, uh uh. 306 00:17:26,469 --> 00:17:30,349 Suze: She'll feel that. You'll feel it. You'll start to regret it. 307 00:17:31,180 --> 00:17:34,949 Suze: I would want you to go back because you wanna 308 00:17:34,949 --> 00:17:38,780 Suze: spend time with your mom. You wanna be able to 309 00:17:38,780 --> 00:17:43,349 Suze: help her during her later years. 310 00:17:44,060 --> 00:17:48,520 Suze: But if you don't have that kind of relationship with her. 311 00:17:49,489 --> 00:17:52,849 Suze: I'm sorry, it's not enough then for you to go 312 00:17:52,849 --> 00:17:57,589 Suze: back because she'll end up being miserable as well. And 313 00:17:57,589 --> 00:18:00,369 Suze: if she has a lot of money and she can 314 00:18:00,369 --> 00:18:04,209 Suze: afford it, she can hire caretakers, she can do whatever 315 00:18:04,209 --> 00:18:06,729 Suze: she wants, you can live your life, you can go 316 00:18:06,729 --> 00:18:10,199 Suze: visit her, you could leave, and all of that. Now, 317 00:18:10,250 --> 00:18:12,489 Suze: I'm gonna be really honest with you. 318 00:18:13,239 --> 00:18:18,679 Suze: There is no way that I personally could have moved in, really, KT, 319 00:18:18,800 --> 00:18:21,520 Suze: you know this is true, to take care of my 320 00:18:21,520 --> 00:18:26,000 Suze: mother if I needed money, whatever, I still couldn't have 321 00:18:26,000 --> 00:18:30,479 Suze: done it because I didn't have that kind of relationship 322 00:18:30,479 --> 00:18:35,280 Suze: with her at the very end. I loved her very much, 323 00:18:35,390 --> 00:18:37,800 Suze: but I could not have done it. KT, on the 324 00:18:37,800 --> 00:18:41,420 Suze: other hand, absolutely could have done it. 325 00:18:42,079 --> 00:18:47,089 Suze: And thank God I had the money, Ashley, to provide 326 00:18:47,089 --> 00:18:50,969 Suze: that for my mother, to give her full-time aides, to 327 00:18:50,969 --> 00:18:54,530 Suze: make sure she was comfortable, to go and visit her 328 00:18:54,530 --> 00:19:00,099 Suze: when I could. Your mother's taken care of that for herself, 329 00:19:00,489 --> 00:19:02,790 Suze: so if I were you, I have to tell you, 330 00:19:03,209 --> 00:19:08,489 Suze: I would stay exactly where I am. People first. That 331 00:19:08,489 --> 00:19:10,889 Suze: means you, Ashley. 332 00:19:11,750 --> 00:19:15,790 Suze: Then money, then things. You would only be going there 333 00:19:16,510 --> 00:19:21,270 Suze: for money and to get a big inheritance wrong in 334 00:19:21,270 --> 00:19:23,510 Suze: my opinion. Next question, KT. 335 00:19:23,670 --> 00:19:25,329 KT: OK, this is from Sue. 336 00:19:25,839 --> 00:19:30,660 KT: Sue said my friend aged 70, most recently attended an 337 00:19:30,660 --> 00:19:34,399 KT: elder seminar, so this is what her friend was told. 338 00:19:34,459 --> 00:19:38,599 KT: If you have a revocable trust, the five-year look back 339 00:19:38,599 --> 00:19:43,439 KT: for Medicaid paid to long-term care does not count. There 340 00:19:43,439 --> 00:19:46,399 KT: needs to be at least five years where your assets 341 00:19:46,400 --> 00:19:50,560 KT: are in an irrevocable trust, right? 342 00:19:51,160 --> 00:19:53,920 KT: So now, well, she's just asking Suze, 343 00:19:54,930 --> 00:19:55,040 Suze: I'm not mad at her. 344 00:19:55,040 --> 00:19:58,239 KT: Please do a Suze Orman school on the topic. We 345 00:19:58,239 --> 00:20:02,719 KT: need expert advice before some salesman wanting money leads us 346 00:20:02,719 --> 00:20:04,290 KT: down the wrong path. 347 00:20:04,560 --> 00:20:08,260 Suze: Let's do... just do a really quick Suze School here. 348 00:20:08,680 --> 00:20:11,919 Suze: What is the Medicaid five-year look back? 349 00:20:12,660 --> 00:20:17,040 Suze: When someone applies for Medicaid to pay for long-term care 350 00:20:17,040 --> 00:20:20,979 Suze: such as a nursing home, the government looks back five 351 00:20:20,979 --> 00:20:25,050 Suze: years from the date of the application because they want 352 00:20:25,050 --> 00:20:29,420 Suze: to review all transfers, KT of your money to make 353 00:20:29,420 --> 00:20:32,239 Suze: sure that you didn't give it all away right away, 354 00:20:32,660 --> 00:20:35,739 Suze: right before this happened just so you could qualify for 355 00:20:35,739 --> 00:20:39,199 Suze: Medicaid if you gave money away. 356 00:20:40,334 --> 00:20:45,305 Suze: Property or moved assets into certain trusts during that five 357 00:20:45,305 --> 00:20:52,744 Suze: year window, Medicaid may impose a penalty period, KT, where 358 00:20:52,744 --> 00:20:55,905 Suze: they will not pay for care. Everybody needs to know that. 359 00:20:56,344 --> 00:21:00,145 Suze: So the five year look back is real, but here 360 00:21:00,145 --> 00:21:01,785 Suze: is the important part. 361 00:21:02,719 --> 00:21:07,938 Suze: Many seminar presenters like this one throw around the word 362 00:21:08,199 --> 00:21:13,160 Suze: trust without really explaining the difference between a revocable and 363 00:21:13,160 --> 00:21:14,899 Suze: an irrevocable trust. 364 00:21:15,540 --> 00:21:20,579 Suze: The truth is, in a revocable living trust you still 365 00:21:20,579 --> 00:21:24,939 Suze: own and control the assets. You can change or revoke 366 00:21:24,939 --> 00:21:29,900 Suze: it any time because you still control it. Medicaid counts 367 00:21:29,900 --> 00:21:36,119 Suze: those assets as yours. A revocable trust does not protect 368 00:21:36,260 --> 00:21:40,489 Suze: assets from Medicaid. That is true. That is not why 369 00:21:40,489 --> 00:21:42,959 Suze: you get a revocable trust. 370 00:21:43,550 --> 00:21:50,020 Suze: However, an irrevocable trust. Once your assets are placed into it, 371 00:21:50,380 --> 00:21:55,959 Suze: they're no longer yours, everybody. You generally cannot take them back, 372 00:21:56,339 --> 00:22:00,300 Suze: and because of that loss of control, those assets may 373 00:22:00,300 --> 00:22:05,760 Suze: not count towards Medicaid eligibility after the five year look back, 374 00:22:05,939 --> 00:22:09,670 Suze: but that isn't what you want to do. That's not 375 00:22:09,670 --> 00:22:12,189 Suze: how you want to live your life, everybody. 376 00:22:14,609 --> 00:22:17,150 Suze: Also, when you have something, when you have assets, KT 377 00:22:17,150 --> 00:22:21,010 Suze: in an irrevocable trust, again, you can't change it, you 378 00:22:21,010 --> 00:22:26,170 Suze: lose access to it, and it the rules vary by state. So, 379 00:22:26,569 --> 00:22:30,659 Suze: here's the thing, you are not to listen to that, 380 00:22:31,170 --> 00:22:35,750 Suze: because the goal is not for you to protect your money. 381 00:22:36,250 --> 00:22:40,079 Suze: So that you end up in a nursing home on Medicaid. 382 00:22:40,410 --> 00:22:44,329 Suze: Do you have any idea the difference between care on 383 00:22:44,329 --> 00:22:47,489 Suze: Medicaid and care as a private patient? 384 00:22:47,920 --> 00:22:51,899 Suze: If this person had any integrity, they would have said, 385 00:22:52,079 --> 00:22:56,619 Suze: you should look into getting a long-term care insurance policy, 386 00:22:57,199 --> 00:23:00,819 Suze: or let's protect your money in terms of investing it 387 00:23:01,000 --> 00:23:04,839 Suze: so that you have enough money to pay privately if 388 00:23:04,839 --> 00:23:08,280 Suze: you happen to go into a nursing home, but you 389 00:23:08,280 --> 00:23:13,140 Suze: do not want to go into a Medicaid situation. 390 00:23:13,660 --> 00:23:15,630 Suze: To go into a Medicaid, I just have to say 391 00:23:15,630 --> 00:23:19,869 Suze: one last thing, to go into a Medicaid payment, you 392 00:23:19,869 --> 00:23:24,430 Suze: have to go into a Medicare approved nursing home, and 393 00:23:24,430 --> 00:23:28,020 Suze: little by little, they are getting rid of those cause 394 00:23:28,020 --> 00:23:32,229 Suze: they don't wanna have to pay for you. So don't 395 00:23:32,229 --> 00:23:36,069 Suze: lose control over your money simply so that the five-year 396 00:23:36,069 --> 00:23:38,270 Suze: lookback period may get you. 397 00:23:39,010 --> 00:23:42,050 Suze: No, if you spend down all your money to take 398 00:23:42,050 --> 00:23:46,750 Suze: care of yourself, OK, then you go into Medicaid legitimately, 399 00:23:46,969 --> 00:23:50,489 Suze: but don't go hiding your money just so you get 400 00:23:50,640 --> 00:23:53,869 Suze: to go on Medicaid. All right, go on, KT. 401 00:23:55,550 --> 00:23:58,469 KT: So Suze, my last question is from Robbie B. 402 00:23:59,400 --> 00:24:03,069 KT: I love this Robbie B. I'm a 48-year-old female who 403 00:24:03,069 --> 00:24:06,349 KT: is currently employed. My question is how much of my 404 00:24:06,349 --> 00:24:11,459 KT: savings should be placed in a high yield dividend account. 405 00:24:12,079 --> 00:24:15,280 KT: In approximately ten and a half years when I retire 406 00:24:15,280 --> 00:24:19,369 KT: from my current employer, I will be collecting a pension 407 00:24:19,640 --> 00:24:23,839 KT: as well as money in a deferred compensation account. 408 00:24:24,719 --> 00:24:26,969 KT: And then she said, I'm just concerned I have too 409 00:24:26,969 --> 00:24:30,250 KT: much money in my high yield dividend account rather than 410 00:24:30,250 --> 00:24:34,640 KT: having more in my regular savings account through my bank. 411 00:24:34,969 --> 00:24:37,569 KT: Is it too much of a gamble? So what would 412 00:24:37,569 --> 00:24:38,729 KT: you tell Robbie B? 413 00:24:38,849 --> 00:24:42,729 Suze: Robbie B, I can tell you that how could you 414 00:24:42,729 --> 00:24:43,409 Suze: even think 415 00:24:43,599 --> 00:24:47,069 Suze: about having any money at a savings account in a 416 00:24:47,069 --> 00:24:52,180 Suze: bank paying you what? 0.9% of that? Like what are 417 00:24:52,180 --> 00:24:57,310 Suze: you talking about? You are 48 years of age. As 418 00:24:57,310 --> 00:25:01,050 Suze: long as you have a 12 month emergency fund somewhere, 419 00:25:01,390 --> 00:25:02,329 Suze: hopefully 420 00:25:03,319 --> 00:25:07,359 Suze: where it makes sense, at Alliant Credit Union, at a 421 00:25:07,359 --> 00:25:10,280 Suze: money market account at a brokerage firm, wherever you want 422 00:25:10,280 --> 00:25:14,420 Suze: to put it, paying you the highest possible interest rate, 423 00:25:14,560 --> 00:25:18,280 Suze: but not at a bank. That is what should be 424 00:25:18,280 --> 00:25:22,319 Suze: keeping you up at night, number one. Number two, you 425 00:25:22,319 --> 00:25:23,790 Suze: are 48. 426 00:25:24,449 --> 00:25:29,069 Suze: Maybe you'll retire at 58, but by the time you're 58, 427 00:25:29,209 --> 00:25:31,930 Suze: maybe you'll go, why would I do that? Why wouldn't 428 00:25:31,930 --> 00:25:34,569 Suze: I want to work for another 10 years and keep 429 00:25:34,569 --> 00:25:37,849 Suze: making more money and having my money build and on 430 00:25:37,849 --> 00:25:39,129 Suze: and on and on. 431 00:25:39,510 --> 00:25:44,198 Suze: So right now, you want your money invested for growth. 432 00:25:44,630 --> 00:25:51,489 Suze: Hopefully you are investing in Roth retirement accounts, not traditional ones. So, 433 00:25:51,589 --> 00:25:55,739 Suze: if you want to be conservative, OK, you want it 434 00:25:55,739 --> 00:25:58,949 Suze: in high yield dividend stocks and things like that, I 435 00:25:58,949 --> 00:26:01,750 Suze: don't have a problem with that. I don't think you 436 00:26:01,750 --> 00:26:04,910 Suze: could have too much money in it, if that's what 437 00:26:04,910 --> 00:26:08,129 Suze: you're wanting. I hope you also have some money 438 00:26:08,689 --> 00:26:12,079 Suze: in the Standard and Poor's 500 indexes, or things that 439 00:26:12,079 --> 00:26:17,409 Suze: give you a little bit more of total growth, but no. 440 00:26:18,030 --> 00:26:22,430 Suze: Don't do what you were thinking of doing. Hi KT. 441 00:26:23,020 --> 00:26:23,989 KT: Hi, that's a wrap, 442 00:26:24,400 --> 00:26:27,069 Suze: A wrap, KT. Just tell everybody how much fun we've 443 00:26:27,069 --> 00:26:28,469 Suze: had the past few weeks. 444 00:26:28,579 --> 00:26:31,520 KT: Oh my goodness, I told you the month of March, 445 00:26:31,939 --> 00:26:36,949 KT: Suze turned into a social animal. We've been going to 446 00:26:36,949 --> 00:26:41,829 KT: concerts and plays and, I mean, dance recitals. 447 00:26:41,829 --> 00:26:43,698 Suze: I just want to say something, and I don't know 448 00:26:43,699 --> 00:26:45,310 Suze: if I've already said this to you. We went and 449 00:26:45,310 --> 00:26:46,589 Suze: we saw Pink Martini. 450 00:26:47,160 --> 00:26:52,810 Suze: And Storm Large performed with Pink Martini. She is, without 451 00:26:52,810 --> 00:26:56,390 Suze: a shadow of a doubt, right, KT? The most incredible 452 00:26:56,810 --> 00:27:00,650 Suze: performer I have ever seen in my life. We went 453 00:27:00,650 --> 00:27:03,510 Suze: to see other things as well. Just the other night. 454 00:27:03,530 --> 00:27:04,410 Suze: We were in Meisner... 455 00:27:04,410 --> 00:27:05,569 KT: We were with Patti Lupone 456 00:27:05,569 --> 00:27:10,129 Suze: And all, and loved it, loved it like she was fabulous, everybody. 457 00:27:10,430 --> 00:27:14,189 Suze: And very shortly we're going to see a comedian. 458 00:27:14,329 --> 00:27:15,629 Suze: And then we're going to see 459 00:27:15,969 --> 00:27:19,010 KT: Oh Jimmy, Jimmy Buffett's guy 460 00:27:19,489 --> 00:27:23,770 Suze: Mac McAnally, who wrote everything with Jimmy, and we're gonna go 461 00:27:23,770 --> 00:27:26,810 Suze: with Savannah, Jimmy's daughter. 462 00:27:26,880 --> 00:27:28,099 KT: We're gonna sing Jimmy's songs, 463 00:27:28,439 --> 00:27:31,250 Suze: But I keep going, Where can we go? What can we do? 464 00:27:31,530 --> 00:27:34,439 KT: So now we're, we're sitting around and, and all of 465 00:27:34,439 --> 00:27:37,229 KT: a sudden we're watching the news and a commercial came 466 00:27:37,229 --> 00:27:41,430 KT: on for an ice skating, an ice skating rink. 467 00:27:41,939 --> 00:27:44,859 KT: You know, big show, I think with all the stars 468 00:27:44,859 --> 00:27:49,060 KT: that were in the Olympics or all the Olympic, you know, skaters, 469 00:27:49,300 --> 00:27:51,290 KT: and so I looked, turned around, I looked at Suze, 470 00:27:51,300 --> 00:27:55,139 KT: and her face was lit up like a five-year-old wanting 471 00:27:55,140 --> 00:27:57,790 KT: to go see them skate. So we'll probably go see that. 472 00:27:57,900 --> 00:28:03,000 Suze: Yeah, baby, we're living now. All right, so until Sunday 473 00:28:03,459 --> 00:28:06,208 Suze: when I have absolutely no idea of what we're going 474 00:28:06,209 --> 00:28:08,948 Suze: or I'm going to be doing. There's only one thing 475 00:28:08,949 --> 00:28:10,650 Suze: that we want you to remember when it comes to 476 00:28:10,650 --> 00:28:12,750 Suze: your money. What is that, KT? 477 00:28:13,010 --> 00:28:15,930 KT: People first, then money, then things. 478 00:28:16,010 --> 00:28:20,149 Suze: And then pens that have a blue little strip around it. 479 00:28:20,410 --> 00:28:23,619 Suze: Until next week. Please stay safe. 480 00:28:23,849 --> 00:28:24,989 KT: Bye-bye. Bye.