1 00:00:28,530 --> 00:00:33,090 Suze: May 29, 2025. Welcome everybody to the Women of Money 2 00:00:33,090 --> 00:00:38,450 Suze: podcast as well as everybody, and I oh so mean 3 00:00:38,450 --> 00:00:44,229 Suze: everybody smart enough to listen. Today is Ask KT and 4 00:00:44,229 --> 00:00:48,009 Suze: Suze Anything, and this is where you can write in 5 00:00:48,290 --> 00:00:53,689 Suze: to ask Suze podcast@gmail.com. Ask a question if Ms. Travis 6 00:00:53,689 --> 00:00:54,330 Suze: chooses it, 7 00:00:54,619 --> 00:00:57,189 Suze: Oh, we'll answer it on the podcast, and you just 8 00:00:57,189 --> 00:01:01,209 Suze: never know when I will answer you personally. How are 9 00:01:01,209 --> 00:01:02,380 Suze: you this morning, Miss Travis? 10 00:01:02,380 --> 00:01:06,730 KT: I'm great. And, and to Suze's point about whether or 11 00:01:06,730 --> 00:01:11,410 KT: not she answers you personally, listen to this first comment 12 00:01:11,410 --> 00:01:12,089 KT: from Anne. 13 00:01:12,250 --> 00:01:12,529 Suze: Oh well, 14 00:01:12,569 --> 00:01:13,470 Suze: there you go. 15 00:01:13,934 --> 00:01:14,414 KT: Suze, wow 16 00:01:14,535 --> 00:01:16,363 Suze: You didn't know what I was going to say. So 17 00:01:16,364 --> 00:01:17,324 Suze: how'd you have that in order? 18 00:01:18,084 --> 00:01:22,444 KT: Suze, wow, thanks so much for responding to my email. 19 00:01:22,735 --> 00:01:26,333 KT: You made my day when I saw your response. My 20 00:01:26,334 --> 00:01:31,135 KT: husband was sure that someone answered it for you. 21 00:01:31,254 --> 00:01:32,724 Suze: Figures. Men. 22 00:01:33,660 --> 00:01:36,349 KT: And I loved it at the end when you identified 23 00:01:36,349 --> 00:01:40,510 KT: that it was you answering. More importantly, you are helping 24 00:01:40,510 --> 00:01:44,239 KT: me to feel more confident with interviewing and selecting a 25 00:01:44,239 --> 00:01:48,989 KT: financial advisor with your response. Thanks again for all of 26 00:01:48,989 --> 00:01:52,190 KT: your advice over the years. I love how it makes 27 00:01:52,190 --> 00:01:56,519 KT: common sense, and trying to make smart, informed decisions with 28 00:01:56,519 --> 00:01:59,269 KT: money can be confusing and costly. 29 00:01:59,860 --> 00:02:04,239 KT: Take care, wishing you well. Keep up the great work, Suze! Anne. 30 00:02:04,519 --> 00:02:05,879 Suze: Thank you, Anne. 31 00:02:06,000 --> 00:02:09,240 KT: See, her husband doubted that you're the one, and let 32 00:02:09,240 --> 00:02:13,199 KT: me tell all of you, no one responds to any 33 00:02:13,199 --> 00:02:16,549 KT: of you except Suze. No one. 34 00:02:16,758 --> 00:02:18,000 Suze: We don't even have anyone to do it. 35 00:02:18,625 --> 00:02:18,744 KT: Well, 36 00:02:18,904 --> 00:02:19,024 KT: no, 37 00:02:19,304 --> 00:02:22,184 KT: she has her editor Carla that she's worked with for 38 00:02:22,184 --> 00:02:25,865 KT: 25 years. You all heard about Carla's birthday on Sunday 39 00:02:25,865 --> 00:02:27,195 KT: if you listened last week. 40 00:02:27,824 --> 00:02:27,945 Suze: But that's for books. 41 00:02:27,985 --> 00:02:28,994 KT: that's editors, 42 00:02:30,235 --> 00:02:31,663 Suze: But not for financial advice. 43 00:02:31,985 --> 00:02:33,335 KT: Yeah, even when I try... 44 00:02:34,494 --> 00:02:36,464 Suze: And why do you try? 45 00:02:36,919 --> 00:02:39,580 KT: But, but let's tell everyone if they're looking for the 46 00:02:39,580 --> 00:02:42,978 KT: same answer that you gave to Anne, why don't you 47 00:02:42,979 --> 00:02:43,649 KT: post it? 48 00:02:43,699 --> 00:02:45,250 Suze: Oh my God, it's so long. 49 00:02:45,419 --> 00:02:45,660 KT: So 50 00:02:45,660 --> 00:02:46,929 KT: what? They 51 00:02:46,929 --> 00:02:47,330 KT: want it. 52 00:02:47,460 --> 00:02:51,339 Suze: I sent you Anne a list of every she wanted 53 00:02:51,339 --> 00:02:53,979 Suze: to know how you check out a financial advisor and 54 00:02:53,979 --> 00:02:55,418 Suze: make sure that they're OK. 55 00:02:55,850 --> 00:02:58,399 Suze: And I talk about it. I think it's in Chapter 56 00:02:58,399 --> 00:03:00,800 Suze: 8 of the Ultimate Retirement Guide, which, by the way, 57 00:03:00,830 --> 00:03:05,279 Suze: is out in soft back now, and the audio is 58 00:03:05,279 --> 00:03:08,880 Suze: coming out in June sometime, so you might want to 59 00:03:08,880 --> 00:03:11,839 Suze: check that out with all the changes because there were 60 00:03:11,839 --> 00:03:14,880 Suze: so many changes from when the book first came out 61 00:03:15,160 --> 00:03:17,038 Suze: a few years ago, But, Anne 62 00:03:17,320 --> 00:03:20,460 Suze: wanted to know more ways to check out a financial 63 00:03:20,460 --> 00:03:23,538 Suze: adviser and oh, I gave them to her. So in 64 00:03:23,538 --> 00:03:27,859 Suze: honor of Anne, because I'll post it for all of 65 00:03:27,860 --> 00:03:32,259 Suze: you the resources that I sent to Anne. All right, KT, next. 66 00:03:32,419 --> 00:03:35,610 KT: OK, and this next one is kind of the same. 67 00:03:35,820 --> 00:03:38,660 KT: This subject was called Truth Hurts. Ready? 68 00:03:39,199 --> 00:03:43,509 KT: Suze, my friend group calls you our selected mentor. 69 00:03:43,600 --> 00:03:44,119 Suze: Thank you. 70 00:03:44,259 --> 00:03:48,399 KT: We love your financial advice, but your thoughts on relationships 71 00:03:48,399 --> 00:03:52,789 KT: have been at the forefront of our conversations. I wouldn't 72 00:03:52,789 --> 00:03:57,839 KT: do it again. Letting fear and shame control my actions 73 00:03:57,839 --> 00:03:59,360 KT: kept me in a relationship that 74 00:03:59,509 --> 00:04:04,580 KT: was emotionally abusive and manipulative. I mean, I've heard that before. 75 00:04:05,339 --> 00:04:08,899 KT: So then, then she goes on to say, thinking there 76 00:04:08,899 --> 00:04:11,740 KT: might be a KT just around the corner gave me 77 00:04:11,740 --> 00:04:15,570 KT: the strength to leave, and I love you both for it. 78 00:04:15,759 --> 00:04:17,589 Suze: Let me tell you what's so great about that, right? 79 00:04:18,579 --> 00:04:19,730 Suze: The truth is. 80 00:04:20,428 --> 00:04:24,308 Suze: Obviously I've been in many relationships over the years. I 81 00:04:24,308 --> 00:04:29,588 Suze: met KT when I was 50, but I stayed in 82 00:04:29,588 --> 00:04:34,829 Suze: these horrific, in my opinion, relationships where on some level 83 00:04:34,829 --> 00:04:37,908 Suze: I wasn't, how, what would you say was I, I 84 00:04:37,908 --> 00:04:40,188 Suze: was just they weren't healthy, but 85 00:04:40,188 --> 00:04:41,859 KT: no, they, they were. 86 00:04:42,250 --> 00:04:45,299 KT: They were just there. They were there. They actually had, 87 00:04:45,369 --> 00:04:45,850 KT: they didn't contribute anything. 88 00:04:47,380 --> 00:04:49,820 Suze: But I just stayed because I thought it was easier 89 00:04:49,820 --> 00:04:53,980 Suze: to stay than to leave and I didn't know that 90 00:04:53,980 --> 00:04:58,130 Suze: there was a KT out there. I didn't know what 91 00:04:58,130 --> 00:05:05,100 Suze: a true relationship, an honest relationship, an equal relationship was 92 00:05:05,100 --> 00:05:07,260 Suze: because I had never had one. 93 00:05:07,988 --> 00:05:12,130 Suze: I'm so touched, KT, that people are sensing that there 94 00:05:12,130 --> 00:05:15,929 Suze: can be a KT out there for them because I stayed, 95 00:05:16,059 --> 00:05:19,799 Suze: especially in the last relationship, 8 years in a relationship 96 00:05:19,980 --> 00:05:23,640 Suze: that after 6 months I knew was going nowhere. 97 00:05:24,279 --> 00:05:28,489 Suze: And so because it was just easier to stay, but 98 00:05:28,488 --> 00:05:33,339 Suze: it's never easier to stay. It's never easier to insult yourself. 99 00:05:33,690 --> 00:05:37,149 Suze: It's so always stand in your truth and move on. 100 00:05:37,410 --> 00:05:40,299 KT: That's why I thought that title was Truth hurts. 101 00:05:40,329 --> 00:05:41,059 Suze: It does hurt. 102 00:05:41,579 --> 00:05:43,890 KT: All right, now this next one's even better. 103 00:05:45,459 --> 00:05:47,250 Suze: So before we go into questions like... 104 00:05:47,420 --> 00:05:50,260 KT: These are, these are all important because it's kind of 105 00:05:50,260 --> 00:05:53,500 KT: just I'm just in that mood to share great things, 106 00:05:53,709 --> 00:05:54,220 KT: great news with everybody. 107 00:05:54,220 --> 00:05:56,500 Suze: Because it's one week before my birthday. 108 00:05:57,579 --> 00:05:59,890 KT: Oh, her birthday is next Thursday, everybody. 109 00:06:00,750 --> 00:06:03,130 KT: What are we doing? How are we celebrating? 110 00:06:03,459 --> 00:06:04,469 Suze: I have two gifts 111 00:06:04,470 --> 00:06:04,940 Suze: for you. 112 00:06:05,029 --> 00:06:07,419 KT: What about, what about my gift to you? 113 00:06:07,549 --> 00:06:10,260 Suze: I don't want any gifts on birthdays. 114 00:06:10,420 --> 00:06:12,070 KT: We don't exchange gifts any... 115 00:06:12,428 --> 00:06:16,179 Suze: Not physical gifts, right? Written gifts, things like that. But 116 00:06:16,178 --> 00:06:19,579 Suze: there's something that you've been wanting me to do now 117 00:06:19,579 --> 00:06:20,229 Suze: for many. 118 00:06:20,570 --> 00:06:21,200 Suze: Many years. 119 00:06:22,399 --> 00:06:22,600 KT: Oh, don't 120 00:06:22,600 --> 00:06:23,630 KT: make me cry, 121 00:06:23,809 --> 00:06:24,720 Suze: Right? And 122 00:06:24,720 --> 00:06:26,919 KT: I know, I know what she's gonna do, but let's 123 00:06:26,920 --> 00:06:31,109 KT: not reveal it. We're gonna reveal it next week. And 124 00:06:31,519 --> 00:06:35,510 KT: if she's, yeah, if it's what I think it is, 125 00:06:35,720 --> 00:06:39,200 KT: I'm gonna post a photo for all of you, and 126 00:06:39,200 --> 00:06:39,640 KT: then you'll 127 00:06:39,640 --> 00:06:40,169 KT: cry. 128 00:06:40,279 --> 00:06:41,709 Suze: So I'm gonna try. OK, 129 00:06:42,440 --> 00:06:46,269 KT: Suze, this next one is one of your all-time favorites ready. 130 00:06:46,399 --> 00:06:47,600 KT: It's from Manson. 131 00:06:47,950 --> 00:06:49,880 Suze: I remember Manson. 132 00:06:50,515 --> 00:06:52,493 KT: So Manson wrote, but wait, 133 00:06:52,545 --> 00:06:54,295 Suze: Tell everybody about Manson. 134 00:06:54,345 --> 00:06:54,545 KT: I 135 00:06:54,545 --> 00:06:56,505 KT: want you to tell them, but let me read what 136 00:06:56,505 --> 00:06:59,954 KT: he sent you. He just sent this. He just sent this. 137 00:07:00,105 --> 00:07:03,785 KT: Hi Suze and KT. I was on the podcast about 138 00:07:03,785 --> 00:07:08,065 KT: a year ago. Everything worked out just as you and 139 00:07:08,065 --> 00:07:09,505 KT: KT said it would. 140 00:07:10,109 --> 00:07:15,989 KT: Regarding coming out to my family, right? I graduated from 141 00:07:15,989 --> 00:07:19,619 KT: law school last week with my mother and partner Justin 142 00:07:19,950 --> 00:07:24,470 KT: taking the photo watching so proudly. I, I can we 143 00:07:24,470 --> 00:07:30,420 KT: post this photo? Manson is here in his UC Davis gown. 144 00:07:30,670 --> 00:07:35,089 KT: It's such a great photo, and he's with his, um, 145 00:07:35,100 --> 00:07:37,709 KT: mom and sister, I think, with him. 146 00:07:37,970 --> 00:07:42,029 KT: And his partner Justin is taking the photo. You should 147 00:07:42,029 --> 00:07:44,529 KT: see the smiles on the three faces. 148 00:07:45,070 --> 00:07:48,709 Suze: Yeah, what's interesting, everybody, is this is a man, and 149 00:07:48,709 --> 00:07:52,369 Suze: if you listen back, I don't know which podcast it is, right, 150 00:07:52,450 --> 00:07:54,670 Suze: but it's obviously about a year ago. 151 00:07:54,959 --> 00:07:57,670 Suze: Where he wrote in and he was scared to death 152 00:07:58,119 --> 00:08:01,600 Suze: because he had a year or so left on his 153 00:08:01,600 --> 00:08:06,029 Suze: he had law school law school and obviously his mother 154 00:08:06,029 --> 00:08:09,829 Suze: was helping him financially and had property or something like 155 00:08:09,829 --> 00:08:11,480 Suze: that that she might leave him. 156 00:08:11,769 --> 00:08:15,079 Suze: And he was scared to death that she would cut 157 00:08:15,079 --> 00:08:19,040 Suze: him off, that she would cut him out of that 158 00:08:19,040 --> 00:08:22,760 Suze: whole will and trust later on if he came out 159 00:08:22,760 --> 00:08:26,559 Suze: to her and said, Mom, I'm gay, and I wrote 160 00:08:26,559 --> 00:08:29,070 Suze: him back essentially saying to him, 161 00:08:30,070 --> 00:08:33,429 Suze: the money will never matter. What matters is when you 162 00:08:33,429 --> 00:08:35,819 Suze: stand in your truth and on and on and on, 163 00:08:36,030 --> 00:08:40,189 Suze: and it was fabulous. And here we are a little 164 00:08:40,190 --> 00:08:44,150 Suze: bit later, he told his mom, obviously she is fine 165 00:08:44,150 --> 00:08:48,359 Suze: with it and he's doing great. I just love that one. 166 00:08:48,549 --> 00:08:50,099 Suze: So anyway, all right. 167 00:08:50,739 --> 00:08:52,799 KT: All right. Next is from Kim. Hi 168 00:08:52,799 --> 00:08:52,959 KT: there, Suze. 169 00:08:53,390 --> 00:08:54,489 Suze: Are we at questions yet? 170 00:08:55,210 --> 00:08:56,000 KT: Um, 171 00:08:56,270 --> 00:08:58,059 KT: Yes, this is a question... 172 00:08:59,270 --> 00:09:03,590 Suze: Finally, finally, 9 minutes into it, we're at the Ask 173 00:09:03,590 --> 00:09:06,140 Suze: KT and Suze anything podcast. All 174 00:09:06,140 --> 00:09:09,219 KT: right, go on. So this is from Kim. Hi there, Suze. 175 00:09:09,549 --> 00:09:13,549 KT: My parents and I and my older brother are trying 176 00:09:13,549 --> 00:09:17,789 KT: to piece together what we should obtain in addition to 177 00:09:17,789 --> 00:09:21,599 KT: my parents' will that they made a long while ago. 178 00:09:22,260 --> 00:09:25,329 KT: I know that they want a durable power of attorney 179 00:09:25,330 --> 00:09:29,179 KT: over financial and health, but they also want to get 180 00:09:29,179 --> 00:09:34,500 KT: an irrevocable trust and a revocable trust as well. Everyone's 181 00:09:34,500 --> 00:09:38,500 KT: confused right now here, Suze. One of the main reasons 182 00:09:38,500 --> 00:09:41,099 KT: why they want a revocable trust, 183 00:09:41,429 --> 00:09:44,380 KT: is that they can be in control of the money 184 00:09:44,380 --> 00:09:48,369 KT: or assets they put into it in conjunction with that, 185 00:09:48,619 --> 00:09:52,500 KT: they would also like to have an irrevocable living trust 186 00:09:52,940 --> 00:09:55,339 KT: so that in the rare case that they have to 187 00:09:55,340 --> 00:09:56,700 KT: go to a nursing home. 188 00:09:57,190 --> 00:10:00,239 KT: And they put the house, cars, and maybe some money 189 00:10:00,239 --> 00:10:05,159 KT: in it that the state won't go after that. They're 190 00:10:05,159 --> 00:10:09,200 KT: very confused here. I said, I want to know if 191 00:10:09,200 --> 00:10:12,000 KT: this is something that you think is a wise choice, 192 00:10:12,010 --> 00:10:15,789 KT: and if so, are the assets protected from day one 193 00:10:16,159 --> 00:10:20,520 KT: in an irrevocable living trust and revocable 194 00:10:20,520 --> 00:10:20,619 KT: trust. 195 00:10:21,679 --> 00:10:24,239 Suze: So obviously KT you have a family theme. 196 00:10:24,630 --> 00:10:29,809 Suze: And a personal and a personal truth-telling theme going on 197 00:10:29,809 --> 00:10:33,489 Suze: here in this podcast. Kim, I want you to listen 198 00:10:33,489 --> 00:10:34,059 Suze: to me. 199 00:10:35,650 --> 00:10:39,559 Suze: People first, then money, then things. 200 00:10:40,320 --> 00:10:43,869 Suze: Been my motto now for 20 some odd years or 201 00:10:43,869 --> 00:10:48,549 Suze: longer actually, and the truth of the matter is your 202 00:10:48,549 --> 00:10:53,309 Suze: parents and even possibly you seem to be putting money, 203 00:10:53,390 --> 00:10:58,479 Suze: believe it or not, before themselves. It's true if they 204 00:10:58,479 --> 00:11:03,270 Suze: put things in an irrevocable trust and everybody an irrevocable 205 00:11:03,270 --> 00:11:07,669 Suze: trust means you can touch it. It no longer is 206 00:11:07,669 --> 00:11:09,590 Suze: part of your estate. 207 00:11:10,000 --> 00:11:14,190 Suze: It's now out of your hands. Somebody else is in 208 00:11:14,190 --> 00:11:18,939 Suze: control of it. You are not. So that's a big deal, 209 00:11:19,429 --> 00:11:21,510 Suze: cause a lot of times you think things are, oh, 210 00:11:21,590 --> 00:11:24,468 Suze: I'll just put it in an irrevocable trust. I can 211 00:11:24,469 --> 00:11:27,190 Suze: then go into a nursing home. The estate will pay 212 00:11:27,190 --> 00:11:29,580 Suze: for it. Everything will be great, da da da da. 213 00:11:29,869 --> 00:11:32,989 Suze: Listen to me and listen to me closely. You can 214 00:11:32,989 --> 00:11:36,949 Suze: put it in an irrevocable trust, and somebody else will 215 00:11:36,950 --> 00:11:38,510 Suze: have control over it. 216 00:11:39,049 --> 00:11:42,599 Suze: But what happens if something happens to the person who 217 00:11:42,599 --> 00:11:46,359 Suze: has control over it. What happens if all of a 218 00:11:46,359 --> 00:11:49,590 Suze: sudden they die and the next it can become very, 219 00:11:49,799 --> 00:11:52,520 Suze: very complicated, Number 1. Number 2, 220 00:11:54,140 --> 00:11:59,390 Suze: you do not want to put money before your own benefit. 221 00:12:00,080 --> 00:12:04,829 Suze: To go in a nursing home where a state pays 222 00:12:04,830 --> 00:12:09,468 Suze: for it on Medicaid, if you think the care in 223 00:12:09,469 --> 00:12:13,829 Suze: a nursing home on Medicaid is going to be as 224 00:12:13,830 --> 00:12:17,330 Suze: good as when you are a private pay patient, I 225 00:12:17,330 --> 00:12:19,710 Suze: am here to tell you you are going to make 226 00:12:19,710 --> 00:12:23,869 Suze: one of the biggest mistakes out there. It does not 227 00:12:23,869 --> 00:12:27,109 Suze: work that way. Are you at all listening 228 00:12:27,640 --> 00:12:31,159 Suze: to the news about how certain bills that are being 229 00:12:31,159 --> 00:12:36,030 Suze: passed could cut down on Medicaid, could cut down on Medicare, 230 00:12:36,239 --> 00:12:40,669 Suze: can make it very, very hard. There are many, many 231 00:12:40,669 --> 00:12:45,199 Suze: nursing homes for many reasons now that are starting to 232 00:12:45,200 --> 00:12:49,159 Suze: actually close down because they don't have the money anymore 233 00:12:49,159 --> 00:12:50,679 Suze: to continue to run. 234 00:12:51,409 --> 00:12:55,859 Suze: So to put this money, your parents' money, in front 235 00:12:55,859 --> 00:13:00,030 Suze: of their care just so you could be OK and 236 00:13:00,030 --> 00:13:03,429 Suze: have the money, the house can be protected is not 237 00:13:03,429 --> 00:13:08,309 Suze: something that I advise. Their money is there to take 238 00:13:08,309 --> 00:13:12,789 Suze: care of them, to make sure that when they get older. 239 00:13:13,400 --> 00:13:18,210 Suze: They have the care that they deserve in a respectful 240 00:13:18,210 --> 00:13:21,530 Suze: way if they go through the money, OK. 241 00:13:22,309 --> 00:13:25,549 Suze: Then you just have to figure that out, but your parents' 242 00:13:25,549 --> 00:13:30,510 Suze: well-being should come first, so I would never ever do 243 00:13:30,510 --> 00:13:36,390 Suze: something like that. Obviously a revocable trust absolutely makes sense 244 00:13:36,390 --> 00:13:39,750 Suze: because they can change it any time they want, and 245 00:13:39,750 --> 00:13:42,710 Suze: they're in control of it. But if something happens to 246 00:13:42,710 --> 00:13:45,869 Suze: them in case of an incapacity, whatever it may be, 247 00:13:45,950 --> 00:13:47,949 Suze: because they end up in a nursing home, let's say 248 00:13:47,950 --> 00:13:49,229 Suze: with Alzheimer's. 249 00:13:49,719 --> 00:13:52,609 Suze: You can sign for them. People can take care of 250 00:13:52,609 --> 00:13:56,079 Suze: them while their money is still in trust, and if 251 00:13:56,080 --> 00:13:59,090 Suze: anything did happen to them, they die. It can pass 252 00:13:59,090 --> 00:14:02,900 Suze: without probate. So therefore, I have a problem with the 253 00:14:02,900 --> 00:14:07,539 Suze: revocable trust. That's why the must have documents exist. 254 00:14:07,809 --> 00:14:11,500 Suze: The four must have documents which happen to be a will, 255 00:14:11,710 --> 00:14:15,229 Suze: a revocable trust, an advanced directive, durable power of attorney 256 00:14:15,229 --> 00:14:20,419 Suze: for healthcare, and a financial power of attorney. Go to musthavedocs.com. 257 00:14:20,710 --> 00:14:22,710 Suze: $99 there are 258 00:14:23,599 --> 00:14:27,510 Suze: $2500 state of the art documents if you went to 259 00:14:27,510 --> 00:14:30,880 Suze: a lawyer, that's what they would cost you. So this 260 00:14:30,880 --> 00:14:33,250 Suze: is something that you should look into and you can 261 00:14:33,250 --> 00:14:35,929 Suze: change them any time you want and on and on. 262 00:14:36,130 --> 00:14:40,570 Suze: It's must have docs.com that you should do. But the 263 00:14:40,570 --> 00:14:44,650 Suze: rest of it isn't wise. I can go on and 264 00:14:44,650 --> 00:14:49,409 Suze: on and on, but that's my opinion. KT, go on. 265 00:14:50,010 --> 00:14:53,210 KT: OK, next question, Suze, from Yvonne. 266 00:14:53,960 --> 00:14:54,280 KT: Hi 267 00:14:54,280 --> 00:14:56,630 Suze: It's kind of mysterious with this one. 268 00:14:57,200 --> 00:14:59,429 KT: Well, this one is interesting. 269 00:14:59,799 --> 00:15:01,070 Suze: And I aren't they all? 270 00:15:01,309 --> 00:15:04,669 KT: yeah, but this one ready, this reminds me of someone 271 00:15:04,669 --> 00:15:07,869 KT: we know. I want to create a trust and put 272 00:15:07,869 --> 00:15:11,229 KT: our parents' house into it. My wife and I have 273 00:15:11,229 --> 00:15:15,349 KT: our own trust thanks to you. I have 3 siblings. 274 00:15:15,590 --> 00:15:19,429 KT: My mother wants the house to be split among the 275 00:15:19,429 --> 00:15:24,320 KT: 4 kids after she transitions into whatever is next. 276 00:15:24,799 --> 00:15:28,900 KT: Now ready, Suze, listen carefully. The risk is if she 277 00:15:28,900 --> 00:15:33,039 KT: moves on first. My father has a girlfriend, and we're 278 00:15:33,039 --> 00:15:36,359 KT: not quite sure what he would do. This is the 279 00:15:36,359 --> 00:15:40,400 KT: worst part. Ready, they're from the state of California. My 280 00:15:40,400 --> 00:15:45,840 KT: mother and father are still legally married. My mother has 281 00:15:45,840 --> 00:15:48,799 KT: been living in the house all her life with one 282 00:15:48,799 --> 00:15:52,919 KT: of my brothers. My father lives in a nearby city. 283 00:15:53,270 --> 00:15:56,940 KT: The house is in the state of California... 284 00:15:56,940 --> 00:15:57,969 Suze: Community property state. 285 00:15:59,090 --> 00:16:04,150 KT: So Yvonne goes on, Suze, to ask all these what ifs. 286 00:16:04,489 --> 00:16:06,929 KT: What if my father does this and what if my 287 00:16:06,929 --> 00:16:07,679 KT: father dies? 288 00:16:08,099 --> 00:16:12,530 Suze: Well here's the real question at hand, Yvonne, how is 289 00:16:12,530 --> 00:16:15,559 Suze: title to this house held? 290 00:16:16,289 --> 00:16:19,890 Suze: Because if the title to this house is held as 291 00:16:19,890 --> 00:16:24,890 Suze: joint tenants with right of survivorship and mamma dies, it 292 00:16:24,890 --> 00:16:27,570 Suze: does not matter if she has a will. It does 293 00:16:27,570 --> 00:16:30,500 Suze: not matter if she has a trust, cause listen to 294 00:16:30,500 --> 00:16:34,719 Suze: me closely, everybody, how you hold title to an asset 295 00:16:35,330 --> 00:16:39,820 Suze: overrides the wishes of any will or trust. 296 00:16:40,179 --> 00:16:43,210 Suze: So if the house is held in joint tenancy with 297 00:16:43,210 --> 00:16:47,929 Suze: right of survivorship, it will immediately go to your father. 298 00:16:48,760 --> 00:16:53,119 Suze: Now it's in his name, and if his will says hey, 299 00:16:53,200 --> 00:16:56,159 Suze: it's to go to my girlfriend or whatever it is, 300 00:16:56,260 --> 00:17:01,690 Suze: guess what you have just been disinherited. Now if Mommy 301 00:17:01,690 --> 00:17:04,270 Suze: is living in that house with your brother. 302 00:17:05,060 --> 00:17:08,979 Suze: Your father is not living in that house. Obviously has 303 00:17:08,979 --> 00:17:12,910 Suze: another girlfriend, yet they are still married. The proper way 304 00:17:12,910 --> 00:17:17,260 Suze: for Mommy to do it after she's divorced is to 305 00:17:17,260 --> 00:17:20,410 Suze: get the title to that house in just her name, 306 00:17:20,660 --> 00:17:21,420 Suze: number one. 307 00:17:21,917 --> 00:17:25,409 Suze: Number 2, then transfer it to the title of a 308 00:17:25,409 --> 00:17:29,448 Suze: trust held for her benefit while she's alive, and upon 309 00:17:29,448 --> 00:17:32,609 Suze: her death it goes to all the four kids divided 310 00:17:32,609 --> 00:17:36,009 Suze: however she wants to do so, but she needs to 311 00:17:36,009 --> 00:17:41,478 Suze: deal with it now because otherwise your greatest nightmare. 312 00:17:41,969 --> 00:17:46,930 Suze: If she dies first is absolutely going to happen. So 313 00:17:46,930 --> 00:17:49,530 Suze: the only way to prevent that is to stand in 314 00:17:49,530 --> 00:17:53,780 Suze: your truth right now and deal with this. Now, I'm 315 00:17:53,780 --> 00:17:57,448 Suze: not exactly sure why she hasn't divorced him, but maybe 316 00:17:57,449 --> 00:18:01,130 Suze: it's an amicable relationship, and maybe he's willing to say, 317 00:18:01,219 --> 00:18:04,000 Suze: Oh yeah, I'll take the house out of my name 318 00:18:04,170 --> 00:18:06,319 Suze: and just put it in your name right now, and 319 00:18:06,319 --> 00:18:09,199 Suze: that's it. But you have to make sure 320 00:18:09,819 --> 00:18:13,639 Suze: that she has a trust and it goes to you 321 00:18:13,640 --> 00:18:17,439 Suze: guys because otherwise what's going to happen if she doesn't 322 00:18:17,439 --> 00:18:20,479 Suze: have a will, she doesn't have a trust and it's 323 00:18:20,479 --> 00:18:24,040 Suze: just in her name and she dies intestate in the 324 00:18:24,040 --> 00:18:28,670 Suze: state of California, the next beneficiary will be her husband. 325 00:18:29,329 --> 00:18:33,390 Suze: So bottom line, you have got to get, she's got 326 00:18:33,390 --> 00:18:36,649 Suze: to get divorced and somehow figure that out. 327 00:18:37,574 --> 00:18:41,254 KT: So step one, get a divorce. Put the title only 328 00:18:41,255 --> 00:18:44,064 KT: in her name and put the house in a trust 329 00:18:44,375 --> 00:18:44,814 KT: in her 330 00:18:44,814 --> 00:18:45,094 KT: name. 331 00:18:45,175 --> 00:18:47,814 Suze: That's what I would be doing. But they might have 332 00:18:47,814 --> 00:18:50,935 Suze: reasons why they haven't gotten a divorce. Like, is she 333 00:18:50,935 --> 00:18:54,734 Suze: getting his Social Security? Is he, I don't know why. 334 00:18:54,734 --> 00:18:57,895 KT: She should just ask him to put the house title 335 00:18:57,895 --> 00:18:58,974 KT: in her name. 336 00:18:58,974 --> 00:18:59,885 Suze: Yo start with, 337 00:18:59,935 --> 00:19:00,165 KT: Yes. 338 00:19:01,104 --> 00:19:03,775 Suze: A nd then make sure that she has. 339 00:19:04,359 --> 00:19:07,589 Suze: It so that her will, her trust leaves it to 340 00:19:07,589 --> 00:19:11,300 Suze: the kids or if she's really freaked about it, put 341 00:19:11,300 --> 00:19:14,430 Suze: all four kids on the title and have them all 342 00:19:14,430 --> 00:19:17,030 Suze: be joint tenants with the right of survivorship, but that 343 00:19:17,030 --> 00:19:19,988 Suze: would be a serious mistake if she did that because 344 00:19:19,989 --> 00:19:21,869 Suze: they wouldn't get a step up in basis and on 345 00:19:21,869 --> 00:19:25,709 Suze: and on. All right, OK, see how complicated things can 346 00:19:25,709 --> 00:19:27,040 Suze: absolutely be. 347 00:19:27,530 --> 00:19:31,949 KT: Yeah, all right, so here's one more family matter ready. 348 00:19:32,489 --> 00:19:37,760 KT: My siblings and I inherited my aunt's IRA in 2020. 349 00:19:38,170 --> 00:19:41,409 KT: Am I able to roll it over to my IRA 350 00:19:41,410 --> 00:19:45,819 KT: I have with RBC? That's the Royal Bank of Canada, everyone, good, 351 00:19:45,959 --> 00:19:49,770 KT: good bank. So I don't have to withdraw within 10 352 00:19:49,770 --> 00:19:53,639 KT: years and not be able to reinvest the large sum, 353 00:19:53,810 --> 00:19:58,369 KT: which is about $100,000. That would give me 5 more 354 00:19:58,369 --> 00:20:01,649 KT: years of investment before I have to start withdrawing. 355 00:20:02,369 --> 00:20:04,339 KT: So what should Kathleen do? 356 00:20:04,500 --> 00:20:05,979 Suze: Here's the thing, Kathleen. 357 00:20:06,619 --> 00:20:10,569 Suze: The question you're asking is your siblings and you inherited 358 00:20:10,569 --> 00:20:15,800 Suze: your aunt's IRA in 2020. The date 2020 is important 359 00:20:16,250 --> 00:20:20,410 Suze: because the Secure Act now is in effect. So then 360 00:20:20,410 --> 00:20:23,489 Suze: your question is, am I able to roll it over 361 00:20:23,489 --> 00:20:28,579 Suze: to my IRA I have with RBC? And the answer 362 00:20:28,579 --> 00:20:30,609 Suze: to that is no, you are not. 363 00:20:31,540 --> 00:20:36,489 Suze: Because you are inheriting this IRA, so you have got 364 00:20:36,489 --> 00:20:41,939 Suze: to open up what's called an inherited IRA. You cannot 365 00:20:41,939 --> 00:20:46,609 Suze: mix this money with your IRA that you already have, 366 00:20:46,900 --> 00:20:49,060 Suze: and you're saying, can you do that? 367 00:20:49,589 --> 00:20:53,829 Suze: So you don't have to withdraw the money within 10 368 00:20:53,829 --> 00:20:57,099 Suze: years and not be able to reinvest the large sum. 369 00:20:57,349 --> 00:21:01,379 Suze: You are going to have to withdraw the money within 370 00:21:01,380 --> 00:21:04,949 Suze: 10 years, and my advice to you would be do 371 00:21:04,949 --> 00:21:08,310 Suze: not wait till the 10th year to withdraw it because 372 00:21:08,310 --> 00:21:11,468 Suze: it will be taxed to you as ordinary income, and 373 00:21:11,469 --> 00:21:14,030 Suze: that will be a big deal. You should be taking 374 00:21:14,030 --> 00:21:17,708 Suze: out a tenth every single year, 375 00:21:18,040 --> 00:21:22,229 Suze: and pay taxes on it at that point, so you 376 00:21:22,229 --> 00:21:25,030 Suze: can't outsmart this one, my friend. All right. 377 00:21:25,550 --> 00:21:29,510 KT: Suze, just one more question since we're talking about RMDs, 378 00:21:29,630 --> 00:21:32,829 KT: this one's really a good one from Janet. She said, 379 00:21:32,910 --> 00:21:36,069 KT: I've got a problem with not starting to take my 380 00:21:36,069 --> 00:21:42,510 KT: RMDs at age 73. I was misinformed on when to start. 381 00:21:43,349 --> 00:21:46,579 KT: Having been told as long as I am working full time, 382 00:21:46,589 --> 00:21:52,219 KT: I don't have to start taking RMDs. I recently turned 76, 383 00:21:52,229 --> 00:21:56,819 KT: and I'm considering retiring very soon. Suze, can you advise 384 00:21:56,819 --> 00:22:00,109 KT: me on what I need to understand and do? 385 00:22:00,829 --> 00:22:01,619 Suze: Funny because I... 386 00:22:01,619 --> 00:22:03,899 KT: A lot of people don't know anything about this. 387 00:22:03,900 --> 00:22:06,180 Suze: A lot of people don't know anything about a lot 388 00:22:06,180 --> 00:22:09,420 Suze: when it comes to RMDs, but I actually wrote Janet 389 00:22:09,420 --> 00:22:14,349 Suze: back and told her exactly what to do, which is 390 00:22:14,739 --> 00:22:20,219 Suze: what I don't know is, is she talking about RMDs 391 00:22:20,219 --> 00:22:21,379 Suze: from an IRA, 392 00:22:22,079 --> 00:22:26,359 Suze: or is she talking about RMDs from an employer sponsored 393 00:22:26,359 --> 00:22:32,319 Suze: plan such as a 401K, 403B or TSB. Because KT, 394 00:22:32,989 --> 00:22:37,400 Suze: the truth is, as long as she is working full time, 395 00:22:37,890 --> 00:22:42,599 Suze: which obviously she is right, because that's what it says, 396 00:22:43,050 --> 00:22:49,260 Suze: that you don't have to take RMDs from a 401k 397 00:22:49,260 --> 00:22:51,849 Suze: or a 403B or a TSP. 398 00:22:52,750 --> 00:22:57,989 Suze: However, that is not true for IRAs. So if you're 399 00:22:57,989 --> 00:23:02,310 Suze: still working, everybody and you are working full time, which 400 00:23:02,310 --> 00:23:04,380 Suze: again Janet is. 401 00:23:05,280 --> 00:23:10,449 Suze: If you're working and the RMDs are from your employer's plan, 402 00:23:10,660 --> 00:23:14,579 Suze: your 401K, 403 or TSP, you do not have to 403 00:23:14,579 --> 00:23:17,260 Suze: start taking them at 73. 404 00:23:17,869 --> 00:23:22,270 Suze: So it is important that you understand that's the rule 405 00:23:22,270 --> 00:23:27,680 Suze: for retirement accounts from employers. However, if you have any 406 00:23:27,680 --> 00:23:32,790 Suze: IRAs or you only have IRAs or whatever it may be, 407 00:23:33,160 --> 00:23:37,040 Suze: then that doesn't apply. So if you have an SEP IRA, 408 00:23:37,079 --> 00:23:39,560 Suze: a simple IRA, and any of that. 409 00:23:40,310 --> 00:23:45,349 Suze: You have to take RMDs from the IRAs even if 410 00:23:45,349 --> 00:23:49,079 Suze: you are working full time. Let's just say she had 411 00:23:49,380 --> 00:23:49,790 Suze: some 412 00:23:50,180 --> 00:23:54,449 Suze: IRAs and she missed her RMDs. Then she has to 413 00:23:54,449 --> 00:23:57,810 Suze: take those as soon as possible. She needs to fill 414 00:23:57,810 --> 00:24:00,729 Suze: out forms with the IRS, which she really should do 415 00:24:00,729 --> 00:24:04,479 Suze: go see a CPA and have them straighten this out, 416 00:24:04,770 --> 00:24:08,410 Suze: and the IRS may waive the penalties entirely if she 417 00:24:08,410 --> 00:24:12,688 Suze: can show reasonable cause and everything. But yes, you look 418 00:24:12,689 --> 00:24:14,089 Suze: at me, you have a question. 419 00:24:14,170 --> 00:24:15,530 KT: Yeah, I do have a question. 420 00:24:15,640 --> 00:24:16,000 Suze: Uh oh. 421 00:24:16,760 --> 00:24:18,969 KT: Should I still be contributing 422 00:24:20,560 --> 00:24:22,040 KT: to my SEP IRA? 423 00:24:22,430 --> 00:24:23,550 Suze: You could be if you want to be. 424 00:24:24,290 --> 00:24:25,718 KT: You think it's worth it? 425 00:24:25,839 --> 00:24:31,079 Suze: Listen, everybody, just because you have to take out RMDs 426 00:24:31,479 --> 00:24:35,239 Suze: once you turn 73 and soon to be 75, they'll 427 00:24:35,239 --> 00:24:39,239 Suze: change that, doesn't mean that if you have earned income 428 00:24:39,239 --> 00:24:43,250 Suze: like both of us do, KT, that we can contribute 429 00:24:43,680 --> 00:24:47,119 Suze: to your SEP IRA. You could put $70,000 in there 430 00:24:47,119 --> 00:24:48,040 Suze: if you wanted to. 431 00:24:48,300 --> 00:24:50,130 Suze: And all and take it as a tax write off 432 00:24:50,130 --> 00:24:53,010 Suze: and then you could convert it to a Roth IRA 433 00:24:53,010 --> 00:24:55,770 Suze: if you wanted to. That might be a strategy that 434 00:24:55,770 --> 00:24:59,639 Suze: we look at however, and I've talked about this, everybody 435 00:24:59,640 --> 00:25:04,770 Suze: on the podcast before, sometimes maybe you're just as well 436 00:25:04,770 --> 00:25:08,329 Suze: off if rather than taking a tax write off and 437 00:25:08,329 --> 00:25:11,890 Suze: putting it into something that's going to compound for you 438 00:25:11,890 --> 00:25:13,929 Suze: over the years and then you go to take it 439 00:25:13,930 --> 00:25:16,040 Suze: out and you pay even more in taxes. 440 00:25:16,420 --> 00:25:19,199 Suze: You might be better off just paying the taxes now 441 00:25:19,410 --> 00:25:24,438 Suze: and then investing that money in an individual brokerage account 442 00:25:24,439 --> 00:25:25,929 Suze: like you have KT. 443 00:25:26,290 --> 00:25:29,469 Suze: And you don't pay taxes on that while it's in 444 00:25:29,469 --> 00:25:32,469 Suze: that stock, let's say that you bought and when you 445 00:25:32,469 --> 00:25:36,379 Suze: go to sell it, if it is held over a year, 446 00:25:36,670 --> 00:25:39,790 Suze: you pay capital gains tax on it, but it's still 447 00:25:39,790 --> 00:25:43,750 Suze: compounding as if it could be making more money in 448 00:25:43,750 --> 00:25:47,169 Suze: the long run it could be making more money after taxes. 449 00:25:47,349 --> 00:25:48,949 KT: I'm not gonna put any more in. 450 00:25:49,430 --> 00:25:53,430 Suze: I, well, you know, we should look at everything and just... 451 00:25:53,430 --> 00:25:55,339 KT: I need to find an advisor. 452 00:25:57,790 --> 00:26:01,869 Suze: You think that's cute, don't you? You think that's cute, right? 453 00:26:01,989 --> 00:26:03,300 Suze: It's like, but I don't... 454 00:26:04,150 --> 00:26:04,469 KT: Suze, what should I do? 455 00:26:04,469 --> 00:26:08,130 Suze: The only thing we could contemplate really is putting in 456 00:26:08,130 --> 00:26:11,900 Suze: a lot of money in our SEP IRA, converting it, 457 00:26:11,989 --> 00:26:16,150 Suze: paying taxes now, and letting it compound forever tax free. 458 00:26:17,520 --> 00:26:19,280 Suze: However, I just thought I don't wanna do 459 00:26:20,369 --> 00:26:22,890 Suze: that, but we can, we can play around with that. 460 00:26:22,949 --> 00:26:29,040 Suze: But notice I said the word play around. So anyway, 461 00:26:29,569 --> 00:26:31,239 Suze: all right, now what are we going to do today? 462 00:26:31,900 --> 00:26:34,650 KT: Well, we could make birthday plans. 463 00:26:35,300 --> 00:26:38,819 Suze: No, I've already planned it out. So many people having 464 00:26:38,819 --> 00:26:40,290 Suze: birthdays this month, 465 00:26:41,569 --> 00:26:42,449 KT: It's a good month. 466 00:26:42,660 --> 00:26:44,099 Suze: Yeah. So, all right. 467 00:26:44,660 --> 00:26:46,819 KT: Wait, it's going to be a good month. June, June 468 00:26:46,819 --> 00:26:48,410 KT: are a lot of birthdays, 469 00:26:48,500 --> 00:26:48,699 Suze: So many. 470 00:26:48,699 --> 00:26:51,900 KT: Remember when we were in New York working with Anderson 471 00:26:51,900 --> 00:26:54,819 KT: birthday Anderson Anderson Cooper's birthday is 472 00:26:54,819 --> 00:26:55,719 KT: on the 3rd. 473 00:26:55,859 --> 00:26:58,379 Suze: Right, and Kathy Griffin and I'll never forget this one. 474 00:26:58,829 --> 00:27:04,790 Suze: CNN is live television, absolutely live, and Kathy, don't even 475 00:27:04,790 --> 00:27:07,540 Suze: ask me how she talked me into this. I like, 476 00:27:07,829 --> 00:27:12,260 Suze: let's go bust into his set live live and I said, 477 00:27:12,390 --> 00:27:15,139 Suze: how we gonna get in? And they go, You're Suze Orman. 478 00:27:15,150 --> 00:27:18,589 Suze: I'm Kathy Griffin. They're not gonna stop us, right? And 479 00:27:18,589 --> 00:27:20,550 Suze: so we got there and we walked right through and 480 00:27:20,550 --> 00:27:24,310 Suze: they said, Oh hi Suze, hi Kathy... Anderson, yeah, and 481 00:27:24,310 --> 00:27:27,310 Suze: go and Cathy goes, we're going up to see Anderson, OK. 482 00:27:28,300 --> 00:27:31,729 Suze: Bam, we go up, we walk in, we have balloons, 483 00:27:31,739 --> 00:27:35,739 Suze: we have flowers and a cake, and boy, you know, 484 00:27:35,819 --> 00:27:36,060 KT: and 485 00:27:36,060 --> 00:27:41,199 KT: they surprised and shocked him and Anderson's a rather shy guy, 486 00:27:41,260 --> 00:27:41,889 KT: shy guy. 487 00:27:41,969 --> 00:27:44,810 Suze: He's a shy guy. He's very shy and very private 488 00:27:44,810 --> 00:27:48,089 Suze: all the years that we would sit in the, um, 489 00:27:48,339 --> 00:27:51,699 Suze: makeup room before we went on. I did the Anderson 490 00:27:51,699 --> 00:27:55,979 Suze: show a lot back in 2007 and 2008 and 2009. 491 00:27:56,359 --> 00:27:59,129 Suze: And we had the same makeup room. It was one 492 00:27:59,130 --> 00:28:02,729 Suze: big makeup room. Never said a word, not, not a 493 00:28:02,729 --> 00:28:05,609 Suze: word ever. And it was like, OK, this is very 494 00:28:05,609 --> 00:28:08,290 Suze: serious time, but he's so great. I love him alot. 495 00:28:08,290 --> 00:28:10,718 KT: Yeah, he was always quiet before. 496 00:28:11,489 --> 00:28:12,149 KT: He went on. 497 00:28:12,449 --> 00:28:13,260 Suze: Unlike us, huh, KT? 498 00:28:13,489 --> 00:28:17,530 KT: And we would be chatting and say nice tie, Anderson. No response. 499 00:28:17,530 --> 00:28:23,010 Suze: Anyway, all right, so until Sunday when I have no 500 00:28:23,010 --> 00:28:26,130 Suze: idea what I'm going to do for Suze School, there's 501 00:28:26,130 --> 00:28:28,569 Suze: really only one thing that we want you to remember 502 00:28:28,569 --> 00:28:31,489 Suze: when it comes to your money. What is it, Miss Travis? 503 00:28:31,569 --> 00:28:32,089 KT: People first... 504 00:28:32,089 --> 00:28:33,719 Suze: then money... 505 00:28:33,810 --> 00:28:34,760 KT: then things. 506 00:28:34,890 --> 00:28:37,380 KT: Now you stay safe... 507 00:28:37,380 --> 00:28:38,219 KT: And happy. 508 00:28:38,369 --> 00:28:40,079 Suze: All right, bye bye, everybody.