1 00:00:28,899 --> 00:00:35,189 Suze: November 12, 2023. Welcome everybody. You know what I'm gonna say, 2 00:00:35,200 --> 00:00:38,930 Suze: don't you welcome everybody to the Women and Money podcast 3 00:00:39,360 --> 00:00:44,509 Suze: as well as everybody smart enough to listen. This is 4 00:00:44,520 --> 00:00:47,259 Suze: Suze O and today is Suze School. 5 00:00:48,119 --> 00:00:52,060 Suze: Today is also the day that KT and I are 6 00:00:52,069 --> 00:00:57,880 Suze: doing what? We are going back to the island. Seems 7 00:00:57,889 --> 00:01:01,508 Suze: like we haven't been there forever. And as soon as 8 00:01:01,520 --> 00:01:05,569 Suze: we get there, Colo is waiting for us and we're 9 00:01:05,580 --> 00:01:08,220 Suze: going to go fishing. I'm so excited 10 00:01:08,580 --> 00:01:11,360 Suze: because we got a new fishing pole and a new 11 00:01:11,370 --> 00:01:14,018 Suze: reel and I can't wait to try it, although I 12 00:01:14,029 --> 00:01:16,239 Suze: won't be trying it, but they'll be trying it. I'm 13 00:01:16,250 --> 00:01:19,959 Suze: just so excited to see what it can produce. 14 00:01:21,379 --> 00:01:24,000 Suze: It was many, many years ago 15 00:01:24,769 --> 00:01:27,989 Suze: and I decided to do an experiment 16 00:01:28,779 --> 00:01:34,559 Suze: and I had somebody gather a whole bunch of red roses, 17 00:01:34,569 --> 00:01:36,589 Suze: single red roses 18 00:01:37,349 --> 00:01:40,849 Suze: and this was in New York and they went onto 19 00:01:40,860 --> 00:01:47,330 Suze: the streets and they were to offer strangers as they 20 00:01:47,339 --> 00:01:52,849 Suze: were walking by a red rose, just one red rose. 21 00:01:53,500 --> 00:01:58,360 Suze: And as I was watching this person was offering red 22 00:01:58,370 --> 00:02:03,139 Suze: roses and one person would take it, another person would 23 00:02:03,150 --> 00:02:07,239 Suze: come along, that person would take it. And before you 24 00:02:07,250 --> 00:02:11,369 Suze: knew it, all of the roses, I think she had 25 00:02:11,380 --> 00:02:12,309 Suze: two dozen, 26 00:02:12,979 --> 00:02:15,648 Suze: all of them were gone. 27 00:02:16,889 --> 00:02:20,109 Suze: The next part of the experiment was 28 00:02:20,919 --> 00:02:28,619 Suze: that she had approximately 24 $1 bills. Ok. Same amount 29 00:02:28,630 --> 00:02:33,169 Suze: of bills that she had as roses and she stood 30 00:02:33,179 --> 00:02:35,360 Suze: in essentially the exact same spot. 31 00:02:36,080 --> 00:02:41,339 Suze: And as people walked by, she offered them a dollar bill. 32 00:02:42,970 --> 00:02:45,380 Suze: How many do you think took it? 33 00:02:46,399 --> 00:02:51,410 Suze: One person passed, did not take it. Another person passed. 34 00:02:51,419 --> 00:02:53,009 Suze: Did not take it 35 00:02:54,250 --> 00:03:01,869 Suze: after approximately 30 minutes of her standing there. Not one person. 36 00:03:01,880 --> 00:03:05,008 Suze: And in New York, a lot of people pass you 37 00:03:05,369 --> 00:03:10,350 Suze: in a 30 minute period of time. Not one person 38 00:03:10,360 --> 00:03:13,839 Suze: took the dollar bill. I want you to think about 39 00:03:13,850 --> 00:03:14,709 Suze: this for a second 40 00:03:15,649 --> 00:03:20,529 Suze: in a relatively shorter amount of time. 24 people took 41 00:03:20,538 --> 00:03:22,130 Suze: a rose and smiled 42 00:03:23,270 --> 00:03:27,800 Suze: in a little bit longer period of time. 30 minutes. 43 00:03:28,080 --> 00:03:34,039 Suze: Not one person took a dollar. And I was just 44 00:03:34,050 --> 00:03:37,350 Suze: flipped out about that. I have to tell you, I 45 00:03:37,360 --> 00:03:41,089 Suze: talked about it everywhere I went. When I gave a talk, 46 00:03:41,100 --> 00:03:43,639 Suze: I just didn't understand it. 47 00:03:44,789 --> 00:03:49,130 Suze: But then I started to realize people don't like to 48 00:03:49,139 --> 00:03:54,410 Suze: talk about money. People don't like to touch money. People 49 00:03:54,419 --> 00:03:59,889 Suze: think that something's wrong with somebody who's giving a dollar away, 50 00:04:00,570 --> 00:04:04,509 Suze: but they'll take something that, that dollar would buy such 51 00:04:04,520 --> 00:04:08,429 Suze: as a rose and that they're willing to take. 52 00:04:09,750 --> 00:04:14,070 Suze: And so many of us in our lives are like 53 00:04:14,080 --> 00:04:17,489 Suze: that with money. Whether we know it or not, we 54 00:04:17,500 --> 00:04:20,729 Suze: don't mind touching what money can buy. We don't mind 55 00:04:20,738 --> 00:04:25,489 Suze: touching those things, whether it's our clothes or our furniture 56 00:04:25,500 --> 00:04:29,529 Suze: or our flowers or our gifts or whatever it may be. 57 00:04:29,540 --> 00:04:33,089 Suze: We don't mind showing that to everybody and say, look 58 00:04:33,100 --> 00:04:36,829 Suze: what somebody got me. Look at what I just bought that. 59 00:04:36,839 --> 00:04:38,690 Suze: We don't mind at all. 60 00:04:39,678 --> 00:04:43,109 Suze: But yet we don't like to talk about our money. 61 00:04:43,329 --> 00:04:47,419 Suze: We don't like to touch our money. We don't like 62 00:04:47,428 --> 00:04:50,309 Suze: to say to somebody, oh, look at how much money 63 00:04:50,320 --> 00:04:53,178 Suze: I just made. Look at what I have even though 64 00:04:53,190 --> 00:04:56,230 Suze: the couch that you may be sitting on may have 65 00:04:56,238 --> 00:04:58,589 Suze: cost you a whole bunch of money. 66 00:04:59,660 --> 00:05:03,359 Suze: That's not how you see it all. You see it 67 00:05:03,369 --> 00:05:08,200 Suze: as things. So when something becomes a thing, when money 68 00:05:08,209 --> 00:05:12,540 Suze: turns into a thing that has been purchased, then you 69 00:05:12,549 --> 00:05:15,920 Suze: will talk about it and touch it. But when money 70 00:05:15,928 --> 00:05:20,720 Suze: is just money, you tend to stray away from it. 71 00:05:21,660 --> 00:05:24,428 Suze: What is that about? Everybody? 72 00:05:25,290 --> 00:05:27,880 Suze: Think about in your own lives and by the way, 73 00:05:27,890 --> 00:05:30,078 Suze: take out your Suze notebooks. You are so going to 74 00:05:30,089 --> 00:05:30,839 Suze: need it today. 75 00:05:32,750 --> 00:05:38,510 Suze: Think about that everybody. What is it about money? Your 76 00:05:38,519 --> 00:05:40,678 Suze: money that you work for 77 00:05:41,579 --> 00:05:45,660 Suze: that? You spend hours, maybe 40 50 60 70 80 78 00:05:45,670 --> 00:05:50,079 Suze: hours a week working for? Why is it that you 79 00:05:50,089 --> 00:05:52,920 Suze: don't want to touch it? Pay attention to it or 80 00:05:52,928 --> 00:05:55,238 Suze: anything like that? 81 00:05:56,410 --> 00:05:59,519 Suze: If you have your susy note book out, that is 82 00:05:59,529 --> 00:06:00,890 Suze: the question at hand. 83 00:06:01,890 --> 00:06:05,790 Suze: So what is it about money that repels you 84 00:06:06,470 --> 00:06:07,839 Suze: answer that question 85 00:06:09,570 --> 00:06:12,829 Suze: and if the answer to that question is nothing, then 86 00:06:12,839 --> 00:06:16,589 Suze: I want you to answer the question. What is it 87 00:06:16,600 --> 00:06:22,909 Suze: about money that attracts you? Now? Maybe you need to understand. Well, 88 00:06:22,920 --> 00:06:25,350 Suze: how do I even know if money repels me? 89 00:06:26,000 --> 00:06:28,659 Suze: Do you look at your statements? Do you open your 90 00:06:28,670 --> 00:06:30,459 Suze: credit card bills right away? 91 00:06:31,320 --> 00:06:33,570 Suze: Do you make sure that the dollars if you have 92 00:06:33,579 --> 00:06:37,140 Suze: any of them in your wallets or the $5 bills 93 00:06:37,149 --> 00:06:40,299 Suze: or the tens that they're all facing the same way? 94 00:06:40,649 --> 00:06:44,609 Suze: Do you wait to the last minute to pay your taxes? 95 00:06:44,959 --> 00:06:48,190 Suze: Do you look at your statements to see what you 96 00:06:48,200 --> 00:06:51,440 Suze: have in your 401ks or your Roth Iras? 97 00:06:52,678 --> 00:06:56,329 Suze: Do you pay attention to things like that when you're 98 00:06:56,339 --> 00:06:59,178 Suze: watching the news? And it's a money segment? Do you 99 00:06:59,190 --> 00:07:00,019 Suze: turn it off? 100 00:07:00,988 --> 00:07:03,739 Suze: So many people used to say to me, Suze, I 101 00:07:03,750 --> 00:07:06,029 Suze: like you, but I just can't watch your show. This 102 00:07:06,040 --> 00:07:08,450 Suze: is when I was on CNBC. And I would say, 103 00:07:08,459 --> 00:07:11,970 Suze: and why is that? They say I just can't deal 104 00:07:11,980 --> 00:07:14,709 Suze: with money. I see you and I freak out 105 00:07:15,690 --> 00:07:19,809 Suze: obviously I'm known as the money maven, the money lady, 106 00:07:19,820 --> 00:07:23,049 Suze: whatever it is that you wanna call me. So when 107 00:07:23,059 --> 00:07:25,750 Suze: you see me, you think about money 108 00:07:26,619 --> 00:07:30,959 Suze: and for those of you who can't stand watching me, 109 00:07:31,380 --> 00:07:33,820 Suze: it has nothing to do with me, whether you know 110 00:07:33,829 --> 00:07:34,720 Suze: it or not, 111 00:07:35,410 --> 00:07:39,750 Suze: it has to do with your repulsion of money, your 112 00:07:39,760 --> 00:07:41,750 Suze: inability to deal with it. 113 00:07:42,540 --> 00:07:46,559 Suze: If that happens to be, you can you write down 114 00:07:46,570 --> 00:07:47,679 Suze: what is it 115 00:07:48,489 --> 00:07:53,989 Suze: about money that repels you? On the other hand, if 116 00:07:54,000 --> 00:07:58,149 Suze: you're attracted to it and what do I mean by that? 117 00:07:58,839 --> 00:08:01,859 Suze: I mean that you see a financial segment and you 118 00:08:01,869 --> 00:08:05,549 Suze: like to watch it. You hear about the markets and 119 00:08:05,559 --> 00:08:08,220 Suze: you like to listen to it. You would like to 120 00:08:08,230 --> 00:08:11,519 Suze: make sure that your money, your dollars and your $5 121 00:08:11,529 --> 00:08:13,869 Suze: bills and $10 bills are all lined up in the 122 00:08:13,880 --> 00:08:18,440 Suze: right order. You like to look at your statements. You 123 00:08:18,450 --> 00:08:21,540 Suze: would like to look at what your individual stocks are 124 00:08:21,549 --> 00:08:24,700 Suze: doing or your i bonds are earning or whatever it 125 00:08:24,709 --> 00:08:25,540 Suze: may be. 126 00:08:26,250 --> 00:08:29,670 Suze: You spend time making sure that you know that you 127 00:08:29,679 --> 00:08:33,030 Suze: do not have so much money sitting in a bank 128 00:08:33,039 --> 00:08:38,039 Suze: account today, maybe making 0.5% interest or whatever it is 129 00:08:38,049 --> 00:08:41,270 Suze: they're paying you, you take the time to take that 130 00:08:41,280 --> 00:08:45,510 Suze: money out of a bank account and put it somewhere 131 00:08:45,520 --> 00:08:48,989 Suze: that's making a whole lot more interest. 132 00:08:50,289 --> 00:08:54,729 Suze: You're actually attracted to dealing with money, 133 00:08:55,780 --> 00:08:58,719 Suze: to dealing with the facts about it, to knowing what 134 00:08:58,729 --> 00:09:01,968 Suze: are the limits for a Roth Ira or this or 135 00:09:01,979 --> 00:09:04,090 Suze: that anything like that. 136 00:09:05,489 --> 00:09:12,349 Suze: So, if that's, you write down what attracts you to 137 00:09:12,369 --> 00:09:13,070 Suze: money 138 00:09:14,190 --> 00:09:17,750 Suze: because the answer to that question, 139 00:09:18,479 --> 00:09:24,020 Suze: whether it's repelling or attracting isn't about money. 140 00:09:25,020 --> 00:09:27,468 Suze: It's about you. 141 00:09:28,559 --> 00:09:32,409 Suze: You know, I have always told you that money is 142 00:09:32,419 --> 00:09:36,830 Suze: just a physical manifestation of who you are. 143 00:09:37,830 --> 00:09:40,840 Suze: You're the one who works for it. You're the one 144 00:09:40,849 --> 00:09:44,848 Suze: who earns it. You're the one who saves it, invests it. 145 00:09:44,900 --> 00:09:47,739 Suze: Money can't do anything without you. So if you are 146 00:09:47,750 --> 00:09:49,929 Suze: repelled by your money, 147 00:09:51,049 --> 00:09:56,750 Suze: there is something about yourself that repels you that you 148 00:09:56,760 --> 00:09:59,390 Suze: don't like that you're not dealing with. 149 00:10:00,179 --> 00:10:02,340 Suze: I just want you to think about that. And if 150 00:10:02,349 --> 00:10:04,150 Suze: you are attracted to money, 151 00:10:05,039 --> 00:10:08,739 Suze: there's something about yourself that you're attracted to. 152 00:10:09,969 --> 00:10:13,348 Suze: Chances are, if you're repelled from money, 153 00:10:14,190 --> 00:10:18,169 Suze: you may also have what I call a lack of 154 00:10:18,179 --> 00:10:19,159 Suze: self worth. 155 00:10:19,929 --> 00:10:27,229 Suze: And I will forever believe that self worth equals net worth. 156 00:10:27,679 --> 00:10:31,510 Suze: And as you get older and you're dealing with money, 157 00:10:31,520 --> 00:10:34,710 Suze: you know, it's very easy when you're younger. And I 158 00:10:34,719 --> 00:10:36,960 Suze: think I told you this before, I gave a talk 159 00:10:36,969 --> 00:10:41,229 Suze: to some, whatever I did to some kids and in college. 160 00:10:41,239 --> 00:10:43,429 Suze: And anyway, that's besides the point 161 00:10:43,679 --> 00:10:48,119 Suze: and they took such offense to when I said self 162 00:10:48,140 --> 00:10:51,909 Suze: worth equals net worth. They said Susie, I have self 163 00:10:51,919 --> 00:10:54,329 Suze: worth but I don't have any net worth just because 164 00:10:54,340 --> 00:10:56,349 Suze: I don't have money. Doesn't mean that I don't have 165 00:10:56,359 --> 00:11:00,239 Suze: self worth. Oh, grow up? You're in high school? You're 166 00:11:00,250 --> 00:11:02,619 Suze: in college. Your parents are paying for you. 167 00:11:02,710 --> 00:11:04,950 Suze: You don't have to deal with money. You don't have 168 00:11:04,960 --> 00:11:07,369 Suze: to go out and get a job and pay for 169 00:11:07,380 --> 00:11:11,520 Suze: everything and take care of a family and deal with money. So, 170 00:11:11,530 --> 00:11:14,409 Suze: don't talk to me about that. You think, you know 171 00:11:14,419 --> 00:11:17,099 Suze: what you're talking about when it comes to self worth 172 00:11:17,109 --> 00:11:20,330 Suze: and net worth, when you're a teenager or somebody else 173 00:11:20,340 --> 00:11:23,830 Suze: is supporting you. I'm talking about you. 174 00:11:24,580 --> 00:11:27,439 Suze: Most of you who listen to the women and money 175 00:11:27,450 --> 00:11:33,369 Suze: podcast who work for money, who have to support a family. 176 00:11:34,020 --> 00:11:37,650 Suze: We have to deal with credit card debt and inflation 177 00:11:37,770 --> 00:11:41,840 Suze: and feeding yourself and that because why it is all 178 00:11:41,849 --> 00:11:43,159 Suze: on you. 179 00:11:44,489 --> 00:11:49,659 Suze: So if the answer to that question is that money 180 00:11:49,669 --> 00:11:50,630 Suze: repels you 181 00:11:51,659 --> 00:11:53,239 Suze: then in my book, 182 00:11:54,080 --> 00:11:57,400 Suze: what that is, is it's a somehow a lack of 183 00:11:57,409 --> 00:12:01,909 Suze: self worth meaning that you don't feel that you're worthy 184 00:12:01,919 --> 00:12:04,750 Suze: enough to know about it or you have the ability 185 00:12:04,760 --> 00:12:07,520 Suze: to know about it or to understand it or to 186 00:12:07,530 --> 00:12:08,950 Suze: do any of that. 187 00:12:09,940 --> 00:12:13,369 Suze: You know, you can listen to KT on these podcasts 188 00:12:13,780 --> 00:12:16,900 Suze: and she could not know the answers to questions and 189 00:12:16,909 --> 00:12:21,239 Suze: things like that. But I am telling you that woman 190 00:12:21,250 --> 00:12:26,079 Suze: looks at every single statement that comes in 191 00:12:26,989 --> 00:12:30,159 Suze: and our statements are very thick. She not only looks 192 00:12:30,169 --> 00:12:32,409 Suze: at her own, she looks at mine 193 00:12:33,059 --> 00:12:36,718 Suze: and because KT doesn't like computers, she doesn't do it 194 00:12:36,729 --> 00:12:41,640 Suze: electronically as I do, but she does do it. I've 195 00:12:41,650 --> 00:12:43,919 Suze: come out and I see her with a stack of 196 00:12:43,929 --> 00:12:46,630 Suze: papers and she'll say to me, Suze Orman, do you 197 00:12:46,640 --> 00:12:49,280 Suze: know that we lost X amount of money last month 198 00:12:50,099 --> 00:12:55,130 Suze: or Suze, why are they charging me $6 a trade? 199 00:12:55,140 --> 00:12:57,770 Suze: I thought I didn't have to spend any money for 200 00:12:57,780 --> 00:13:02,469 Suze: these trades. She watches every penny, 201 00:13:03,539 --> 00:13:06,890 Suze: Miss Travis may not be able to answer certain financial 202 00:13:06,900 --> 00:13:12,039 Suze: questions nor may you. But who cares about that? Eventually? 203 00:13:12,049 --> 00:13:16,159 Suze: She will. And even if she doesn't, she does have 204 00:13:16,169 --> 00:13:20,159 Suze: the ability to look up the correct answers, she is 205 00:13:20,169 --> 00:13:25,609 Suze: not repelled from money. She is attracted to money. That 206 00:13:25,619 --> 00:13:28,640 Suze: is because she values who she is. She has 207 00:13:28,739 --> 00:13:33,239 Suze: self worth. She knows that money is very important and 208 00:13:33,250 --> 00:13:37,510 Suze: she knows that because she knows that her survival is 209 00:13:37,520 --> 00:13:42,090 Suze: important and she values her worth, she values who she is. 210 00:13:42,099 --> 00:13:45,000 Suze: So she values all of it. 211 00:13:47,130 --> 00:13:49,830 Suze: And so she would be one that would be answering 212 00:13:49,840 --> 00:13:51,819 Suze: this question by saying 213 00:13:52,700 --> 00:13:59,369 Suze: that, yeah, I'm attracted to money dealing with money, learning 214 00:13:59,380 --> 00:14:00,449 Suze: about money. 215 00:14:01,309 --> 00:14:06,369 Suze: So this is a really, really important Suze school and 216 00:14:06,380 --> 00:14:09,169 Suze: I'm sorry if I sound a little harsh this morning 217 00:14:09,429 --> 00:14:11,608 Suze: because it means so much to me. 218 00:14:12,440 --> 00:14:18,929 Suze: This is the crux of financial freedom. Everybody. This is it. 219 00:14:19,250 --> 00:14:23,960 Suze: Once you understand the concept that I am talking to 220 00:14:23,969 --> 00:14:28,059 Suze: you about right here and right now, 221 00:14:29,460 --> 00:14:32,570 Suze: then you'll never have as much money truthfully as you 222 00:14:32,580 --> 00:14:33,320 Suze: should have 223 00:14:34,109 --> 00:14:39,409 Suze: and possibly you'll never have any money at all. How 224 00:14:39,419 --> 00:14:42,799 Suze: sad is that? How sad is it? 225 00:14:43,419 --> 00:14:48,119 Suze: That may be you, you're the one who's standing in 226 00:14:48,130 --> 00:14:52,760 Suze: the way of being an obstacle to your own wealth, 227 00:14:52,770 --> 00:14:59,840 Suze: your own financial independence. It doesn't have to be that way. 228 00:15:00,979 --> 00:15:05,869 Suze: So that's the first part of Suze School. 229 00:15:06,690 --> 00:15:11,200 Suze: The second part of Suze School is I just want 230 00:15:11,210 --> 00:15:15,989 Suze: to straighten up something that Katie and I talked about 231 00:15:16,000 --> 00:15:20,539 Suze: on Thursday that has confused so many of you and 232 00:15:20,549 --> 00:15:25,070 Suze: I address this on the women and Money Community app. 233 00:15:25,080 --> 00:15:27,309 Suze: And if you are not part of the women and 234 00:15:27,320 --> 00:15:31,299 Suze: Money community app, you are missing out on so much. 235 00:15:31,309 --> 00:15:32,900 Suze: I cannot tell you 236 00:15:33,679 --> 00:15:37,619 Suze: on Friday of this last week. I made a comment 237 00:15:37,630 --> 00:15:40,099 Suze: about what I thought was going to be happening with 238 00:15:40,109 --> 00:15:44,580 Suze: Treasury Notes. I made a comment for those of you 239 00:15:44,590 --> 00:15:46,330 Suze: who may own ARC 240 00:15:47,010 --> 00:15:52,950 Suze: the ETF by Kathy Woods. I make comments of explaining 241 00:15:52,960 --> 00:15:57,469 Suze: something when I know you are confused because just maybe 242 00:15:57,479 --> 00:16:02,030 Suze: I won't address it here on the podcast. 243 00:16:02,869 --> 00:16:06,380 Suze: So if you're not part of the women and money 244 00:16:06,390 --> 00:16:10,690 Suze: community app, you should go and download it. It is 245 00:16:10,700 --> 00:16:16,390 Suze: absolutely free. But one of the things that confused so 246 00:16:16,400 --> 00:16:20,849 Suze: many of you last Thursday is that somebody had written 247 00:16:20,859 --> 00:16:22,450 Suze: in and asked a question 248 00:16:23,739 --> 00:16:28,460 Suze: when it comes to Series I Bonds and Series I Bonds. 249 00:16:28,469 --> 00:16:35,239 Suze: As you know, I was I bond crazy when the 250 00:16:35,250 --> 00:16:43,590 Suze: interest rates were at 7.12% annualized, 9.62% annualized. 251 00:16:44,210 --> 00:16:48,909 Suze: And that is because at that time, interest rates in 252 00:16:48,919 --> 00:16:54,940 Suze: any place were at like 0%. You couldn't get a 1% 253 00:16:54,950 --> 00:16:58,640 Suze: interest rate almost anywhere at that point in time. And 254 00:16:58,650 --> 00:17:02,020 Suze: yet savings I bonds, I stands for inflation. 255 00:17:02,619 --> 00:17:08,000 Suze: They were giving you the inflation rate and inflation was 256 00:17:08,010 --> 00:17:12,708 Suze: off the charts. Then. Since then, inflation has started to 257 00:17:12,719 --> 00:17:16,510 Suze: come down and down. It's not down as far as 258 00:17:16,520 --> 00:17:17,520 Suze: it should be, but 259 00:17:18,088 --> 00:17:20,239 Suze: we'll see if it gets there and this may be 260 00:17:20,249 --> 00:17:23,019 Suze: the lowest they're ever able to get it again for 261 00:17:23,029 --> 00:17:27,098 Suze: a while. But I don't have a frenzy anymore about 262 00:17:27,109 --> 00:17:30,428 Suze: I bonds. I'm not one that's like you haven't heard 263 00:17:30,438 --> 00:17:32,348 Suze: me say go on and buy them, you have to 264 00:17:32,359 --> 00:17:34,588 Suze: buy them. This is how they work. This is what 265 00:17:34,598 --> 00:17:36,308 Suze: I want you to know. You already 266 00:17:36,984 --> 00:17:43,255 Suze: purchased the ones that I personally wanted you to purchase. Now, 267 00:17:43,334 --> 00:17:47,314 Suze: I am more interested in treasury bill bonds and notes 268 00:17:47,324 --> 00:17:51,343 Suze: or certificates of deposits that are paying high yields. I 269 00:17:51,354 --> 00:17:55,395 Suze: still love the one currently at Alliant Credit Union 270 00:17:56,099 --> 00:18:05,010 Suze: paying 5.3% or 5.35% if it's $75,000 or more. I 271 00:18:05,020 --> 00:18:08,239 Suze: think that is a fabulous rate, especially for those who 272 00:18:08,250 --> 00:18:11,609 Suze: live in a tax free state. I think that's a 273 00:18:11,619 --> 00:18:14,520 Suze: far better thing to do than treasuries, believe it or 274 00:18:14,530 --> 00:18:15,079 Suze: not 275 00:18:16,010 --> 00:18:21,849 Suze: because I'm not even sure about treasuries only because in 276 00:18:21,859 --> 00:18:24,790 Suze: just another eight days or so, maybe it's six days 277 00:18:24,800 --> 00:18:29,579 Suze: now we're gonna be facing another possible government shutdown. 278 00:18:43,300 --> 00:18:48,579 Suze: And therefore you gotta make sure everything is ok. I 279 00:18:48,589 --> 00:18:51,160 Suze: don't want to get too off track here. Although I 280 00:18:51,170 --> 00:18:54,670 Suze: think I already have, I wanna go back to series I Bonds. 281 00:18:55,290 --> 00:18:58,680 Suze: So they're not something that I'm like just so gung 282 00:18:58,689 --> 00:19:04,369 Suze: ho about. Would I be putting new money today into 283 00:19:04,380 --> 00:19:05,939 Suze: a series, I bond? 284 00:19:06,609 --> 00:19:11,050 Suze: I would not. All right. Are we clear on that? 285 00:19:11,119 --> 00:19:14,750 Suze: That's my opinion. I know there are many people out 286 00:19:14,760 --> 00:19:17,630 Suze: there that you listen to that maybe would be taking 287 00:19:17,640 --> 00:19:20,790 Suze: old money and putting it in again. That's fine. But 288 00:19:20,800 --> 00:19:24,949 Suze: I would not be committing new money at this point 289 00:19:24,959 --> 00:19:27,709 Suze: in time to a series I bond. 290 00:19:28,520 --> 00:19:34,810 Suze: However, if I had money in a series, I bond, 291 00:19:35,469 --> 00:19:41,280 Suze: that had a 0% fixed income rate at the time, 292 00:19:41,290 --> 00:19:44,719 Suze: forget what the inflation rate is. Remember, I bonds are 293 00:19:44,729 --> 00:19:47,719 Suze: made up of two interest rates, 294 00:19:48,680 --> 00:19:52,119 Suze: an inflation rate and a fixed rate and it is 295 00:19:52,130 --> 00:19:57,550 Suze: a combination of those two that give you your composite rate. 296 00:19:58,150 --> 00:20:03,109 Suze: Many of you purchased in I bond when the fixed rate 297 00:20:03,119 --> 00:20:04,900 Suze: was 0%. 298 00:20:05,880 --> 00:20:10,329 Suze: And now every single six months when your I bond interest 299 00:20:10,339 --> 00:20:15,530 Suze: rate adjusts it has been going down and down and down. 300 00:20:16,489 --> 00:20:22,369 Suze: So the question for you becomes, is it important for 301 00:20:22,380 --> 00:20:25,619 Suze: you if you want money in I bond still 302 00:20:26,479 --> 00:20:32,040 Suze: to cash them out, take a three month interest penalty 303 00:20:32,050 --> 00:20:32,579 Suze: hit 304 00:20:33,339 --> 00:20:37,810 Suze: and take that money and reinvest it in an I 305 00:20:37,819 --> 00:20:43,879 Suze: bond that recently came out that's giving you a 1.30% 306 00:20:43,930 --> 00:20:45,520 Suze: fixed rate. 307 00:20:46,140 --> 00:20:50,069 Suze: Now, a lot of you really like that because the 308 00:20:50,079 --> 00:20:51,479 Suze: inflation rate 309 00:20:52,310 --> 00:21:00,209 Suze: of 3.94% plus the 1.30 fixed rate plus a little 0.3%. 310 00:21:00,300 --> 00:21:04,160 Suze: Also interest on the fixed rate that you can get. 311 00:21:04,170 --> 00:21:10,488 Suze: It's a long story. Anyway, your composite rate is 5.27%. 312 00:21:11,199 --> 00:21:15,439 Suze: If you are staying in bonds that you bought with 313 00:21:15,449 --> 00:21:19,099 Suze: a 0% fixed interest rate, 314 00:21:19,770 --> 00:21:24,069 Suze: you then only will get the inflation rate, which can 315 00:21:24,079 --> 00:21:29,520 Suze: be in the 3% area. If you sell, take the 316 00:21:29,530 --> 00:21:34,629 Suze: three month interest hit and switch over, you could increase 317 00:21:34,640 --> 00:21:37,400 Suze: your yield by quite a bit. 318 00:21:38,329 --> 00:21:39,310 Suze: However, 319 00:21:40,170 --> 00:21:45,099 Suze: back to where I was asking the question, two things. 320 00:21:45,109 --> 00:21:47,849 Suze: First of all, you need to know, when does it 321 00:21:47,859 --> 00:21:53,420 Suze: make sense for you to liquidate and I bonds to do this. 322 00:21:53,430 --> 00:21:58,899 Suze: Listen to Thursday's podcast, the answer will be there for you. However, 323 00:21:59,329 --> 00:22:04,609 Suze: where the confusion came in is when somebody wrote in, 324 00:22:05,050 --> 00:22:07,160 Suze: they essentially wanted to know 325 00:22:07,969 --> 00:22:12,589 Suze: the 1.3% fixed interest rate on their I bond that 326 00:22:12,599 --> 00:22:13,859 Suze: they just purchased. 327 00:22:14,560 --> 00:22:21,459 Suze: Is that mean that I would never get less than 1.3% 328 00:22:21,469 --> 00:22:24,140 Suze: on this particular I bond . 329 00:22:24,819 --> 00:22:28,319 Suze: And my answer to that was no. 330 00:22:29,489 --> 00:22:34,780 Suze: And all of you who thought that it meant that 331 00:22:34,790 --> 00:22:39,619 Suze: that 1.3% fixed rate was always going to be the 332 00:22:39,630 --> 00:22:44,270 Suze: rate that you got no matter what happened to inflation. 333 00:22:44,619 --> 00:22:48,869 Suze: So even if the inflation rate went to zero or 334 00:22:48,880 --> 00:22:52,780 Suze: to a deflationary rate, which it did, by the way, 335 00:22:52,790 --> 00:22:58,859 Suze: in 2009 and 2015, you thought that you would still 336 00:22:58,869 --> 00:23:01,438 Suze: get 1.3% 337 00:23:02,489 --> 00:23:08,379 Suze: and everybody out there that is not how it works. 338 00:23:08,729 --> 00:23:15,500 Suze: So let me read to you from the Treasury direct.gov 339 00:23:15,890 --> 00:23:23,109 Suze: website itself. Please listen to their exact words. 340 00:23:24,329 --> 00:23:29,050 Suze: The actual rate of interest for an I bond is 341 00:23:29,060 --> 00:23:34,469 Suze: a combination of the fixed rate and the inflation rate. 342 00:23:35,000 --> 00:23:40,790 Suze: The combined rate can and usually does change every six 343 00:23:40,800 --> 00:23:42,900 Suze: months that you know, 344 00:23:43,969 --> 00:23:50,060 Suze: I bonds protect you from inflation. Because when inflation increases, 345 00:23:50,260 --> 00:23:54,680 Suze: the combined rate increases that you know, 346 00:23:55,349 --> 00:23:58,459 Suze: but here is what you did not know 347 00:23:59,270 --> 00:24:07,810 Suze: because inflation can go up or down, we can have deflation, 348 00:24:08,069 --> 00:24:11,290 Suze: which is the opposite of inflation 349 00:24:12,199 --> 00:24:20,300 Suze: deflation can bring the combined rate down below the fixed rate. 350 00:24:20,849 --> 00:24:25,660 Suze: As long as the fixed rate itself is not zero. 351 00:24:26,530 --> 00:24:32,089 Suze: However, if the inflation rate is so negative that it 352 00:24:32,099 --> 00:24:37,209 Suze: would pull the combined rate below zero. We don't let 353 00:24:37,219 --> 00:24:40,829 Suze: that happen. We stop at zero. 354 00:24:43,010 --> 00:24:48,319 Suze: Did you hear that? Everybody? So just to be clear, 355 00:24:48,680 --> 00:24:53,750 Suze: if the deflation rate happens to go down and it 356 00:24:53,760 --> 00:25:00,670 Suze: goes down enough below what the fixed rate happens to be, 357 00:25:01,670 --> 00:25:06,650 Suze: then it will bring all the rates for the new 358 00:25:06,660 --> 00:25:12,609 Suze: term down, but it cannot take it below zero. 359 00:25:13,310 --> 00:25:20,649 Suze: I have been buying I bonds since 2000 - 2001. And some 360 00:25:20,660 --> 00:25:27,369 Suze: of my fixed rates are in like 3.5% 3.6% right 361 00:25:27,380 --> 00:25:28,489 Suze: there fixed. 362 00:25:29,780 --> 00:25:34,208 Suze: And the reason that I realized this is, I think 363 00:25:34,219 --> 00:25:39,239 Suze: it was in May of 2009. When I checked the 364 00:25:39,250 --> 00:25:44,550 Suze: interest rate on my I bonds that I purchased with 365 00:25:44,560 --> 00:25:50,680 Suze: a fixed rate of about 3.5%. I was getting a 0% 366 00:25:50,880 --> 00:25:51,859 Suze: interest rate 367 00:25:52,189 --> 00:25:56,409 Suze: on that bond. And I was like, how is that possible? 368 00:25:56,560 --> 00:26:01,660 Suze: I have approximately a 3.5% fixed rate. And then I 369 00:26:01,670 --> 00:26:06,599 Suze: started to truly learn about how I bonds work. 370 00:26:07,329 --> 00:26:11,050 Suze: And I think it was in 2009, it lasted that 371 00:26:11,060 --> 00:26:15,760 Suze: way for the entire six months because once they issued 372 00:26:15,770 --> 00:26:20,099 Suze: that new rate, it lasts for six months. It happened 373 00:26:20,109 --> 00:26:25,988 Suze: again in May of 2015, everybody 374 00:26:26,739 --> 00:26:32,339 Suze: just because you see that it has a 1.3% fixed 375 00:26:32,349 --> 00:26:35,160 Suze: rate or maybe it goes higher. And I think that 376 00:26:35,170 --> 00:26:38,949 Suze: the highest fixed interest rate recently in the past few 377 00:26:38,959 --> 00:26:41,760 Suze: years was 1.6%. 378 00:26:42,520 --> 00:26:47,699 Suze: But it doesn't mean that you're locking that in no 379 00:26:47,709 --> 00:26:51,719 Suze: matter what. And that is something you need to know 380 00:26:51,869 --> 00:26:56,160 Suze: because so many people out there have been telling you 381 00:26:56,170 --> 00:26:59,579 Suze: to buy an I bond lock in the fixed rate, 382 00:26:59,589 --> 00:27:02,050 Suze: the fixed rate is great and the fixed rate is 383 00:27:02,060 --> 00:27:04,780 Suze: great as long as we have inflation. 384 00:27:05,790 --> 00:27:10,609 Suze: But if we go to a deflationary period of time again, 385 00:27:11,290 --> 00:27:15,698 Suze: and in my book, anything can happen again. If it 386 00:27:15,709 --> 00:27:19,170 Suze: happened once it could happen twice, which it already has. 387 00:27:19,239 --> 00:27:24,630 Suze: If it happened twice, it can happen three times. Who knows? 388 00:27:25,619 --> 00:27:30,619 Suze: You just have to be clear on how fixed rates 389 00:27:30,630 --> 00:27:34,939 Suze: work for I bonds. Ok, everybody. 390 00:27:35,609 --> 00:27:43,948 Suze: All right. That is your Suze School for this Sunday now, 391 00:27:43,959 --> 00:27:46,589 Suze: next Sunday. Just so, you know, 392 00:27:47,349 --> 00:27:50,650 Suze: because we're getting close to the end of the year. 393 00:27:51,060 --> 00:27:55,130 Suze: I think it's really important that all of, you know, 394 00:27:55,560 --> 00:28:00,979 Suze: what are the new contribution limits for a traditional Ira 395 00:28:00,989 --> 00:28:04,359 Suze: and a Roth Ira and a 403 B and A 396 00:28:04,369 --> 00:28:08,849 Suze: 401k and a TSP and a 457. What is the 397 00:28:08,859 --> 00:28:15,319 Suze: new contribution limit for a SEP Ira in the year? 2024? 398 00:28:15,770 --> 00:28:22,020 Suze: What are the capital gains tax rates in 2024? Because 399 00:28:22,030 --> 00:28:24,829 Suze: a lot of you may be selling real estate or 400 00:28:24,839 --> 00:28:29,150 Suze: something like that. That is not your primary residency. And 401 00:28:29,160 --> 00:28:32,770 Suze: you should know those things. You should know what the 402 00:28:32,780 --> 00:28:37,670 Suze: modified adjusted gross income is to qualify for a Roth Ira. 403 00:28:38,369 --> 00:28:44,390 Suze: And those are things that you're going to have to know. Ok, 404 00:28:44,400 --> 00:28:48,829 Suze: so that's what next Sunday's Suze School is all about. 405 00:28:48,839 --> 00:28:49,349 Suze: So 406 00:28:50,449 --> 00:28:52,900 Suze: there's only one thing that I want you to say 407 00:28:52,910 --> 00:28:57,760 Suze: every single day and it goes as follows today, wherever 408 00:28:57,770 --> 00:29:03,300 Suze: I go, I will create a more, loving, peaceful and 409 00:29:03,310 --> 00:29:04,988 Suze: joyful world. 410 00:29:05,680 --> 00:29:10,790 Suze: And if you do that, you will be unstoppable. Bye 411 00:29:10,800 --> 00:29:11,410 Suze: bye now.