1 00:00:45,939 --> 00:00:49,799 Suze: October 17th, 2024. Welcome. What do you want to say? 2 00:00:50,168 --> 00:00:54,319 KT: I wanna say, where did the year go? Honestly? Like 3 00:00:54,330 --> 00:00:58,080 KT: it's October. It's the, it's past the middle of October. 4 00:00:58,090 --> 00:00:58,830 Suze: It's almost the end 5 00:00:58,840 --> 00:00:59,290 Suze: of the year. 6 00:00:59,299 --> 00:01:02,229 KT: It's almost the end of the year. Where did it go? 7 00:01:02,540 --> 00:01:03,020 Suze: I don't 8 00:01:03,029 --> 00:01:09,239 Suze: know. I actually don't know where the past 24 years 9 00:01:09,250 --> 00:01:10,000 Suze: have gone. 10 00:01:10,980 --> 00:01:11,150 Suze: No, seriously. 11 00:01:11,919 --> 00:01:16,169 KT: That's amazing. You said that that's everybody listening the past 12 00:01:16,180 --> 00:01:19,518 KT: 24 years is when Susie and I found each other 13 00:01:20,029 --> 00:01:23,629 KT: and it's like, bam, they're zipping by and they're going 14 00:01:23,639 --> 00:01:25,429 KT: too fast and we don't like it, 15 00:01:25,510 --> 00:01:27,709 Suze: But I want to know what's so sweet KT is 16 00:01:27,720 --> 00:01:30,980 Suze: that I remember just wanting to be a double digit 17 00:01:30,989 --> 00:01:31,519 Suze: with you. 18 00:01:32,220 --> 00:01:33,989 Suze: I just wanted to be able to say we were 19 00:01:34,000 --> 00:01:36,059 Suze: together at least 10 years 20 00:01:36,230 --> 00:01:39,370 KT: Now it's going to be 25. What do you think 21 00:01:39,379 --> 00:01:39,839 KT: of that? 22 00:01:40,169 --> 00:01:40,220 Suze: I 23 00:01:40,230 --> 00:01:42,879 Suze: don't think it's long enough to tell you the truth. However, 24 00:01:42,889 --> 00:01:45,470 Suze: welcome everybody to the Women and Money podcast 25 00:01:45,480 --> 00:01:47,199 KT: and everyone's smart enough to listen. 26 00:01:47,209 --> 00:01:48,900 Suze: This is the, what KT? 27 00:01:49,430 --> 00:01:51,260 KT: Ask Suze anything and 28 00:01:51,269 --> 00:01:55,389 Suze: KT and if you write in to ask Suze Suze 29 00:01:55,400 --> 00:01:57,510 Suze: podcast at gmail.com. 30 00:01:57,839 --> 00:02:00,569 Suze: Your question, you have got to keep it short or 31 00:02:00,580 --> 00:02:00,940 Suze: we will 32 00:02:00,949 --> 00:02:04,220 KT: And that's why I'm in a good mood. Everybody I 33 00:02:04,230 --> 00:02:09,940 KT: have questions in front of me that are nice short, concise. 34 00:02:10,149 --> 00:02:14,100 KT: One topic, one question, many of you send me like 35 00:02:14,110 --> 00:02:16,859 KT: multiple questions in one email and I can't do 36 00:02:16,869 --> 00:02:17,100 KT: it 37 00:02:17,320 --> 00:02:18,220 Suze: Also. 38 00:02:18,729 --> 00:02:21,684 Suze: What I was gonna tell you is that KT I 39 00:02:21,684 --> 00:02:26,770 Suze: see that you've chosen some from our community app, which 40 00:02:26,779 --> 00:02:29,690 Suze: is all of you. And by the way, you miss 41 00:02:29,699 --> 00:02:31,788 Suze: out on things if you're not part of the women 42 00:02:31,800 --> 00:02:35,990 Suze: and money community and you can just simply download the app, 43 00:02:36,000 --> 00:02:40,869 Suze: it's free on either Apple Apps or Google Play and 44 00:02:41,089 --> 00:02:45,889 Suze: I post things there that I do not post anywhere else. 45 00:02:46,038 --> 00:02:47,630 KT: And did you post 46 00:02:47,979 --> 00:02:50,110 KT: what I think you're about to tell them? 47 00:02:50,169 --> 00:02:52,389 Suze: Well, I wasn't gonna tell them anything but what did you, 48 00:02:52,399 --> 00:02:53,799 Suze: what did you think I posted? 49 00:02:53,809 --> 00:02:54,130 KT: They 50 00:02:54,139 --> 00:02:57,948 KT: should go look and see if you did post one. 51 00:02:57,960 --> 00:03:03,928 KT: The first catch of the season. The first catch, not, not, 52 00:03:03,940 --> 00:03:07,399 KT: don't say anything else. If you want to know what 53 00:03:07,410 --> 00:03:09,880 KT: she posted, go to the women and money 54 00:03:10,365 --> 00:03:16,934 KT: and look for the first catch of the Wahoo season 2024. 55 00:03:17,274 --> 00:03:19,845 Suze: But KT should we start? 56 00:03:19,994 --> 00:03:20,455 KT: Let's go. 57 00:03:20,934 --> 00:03:23,044 Suze: So what is your first 58 00:03:23,054 --> 00:03:23,884 Suze: question? 59 00:03:23,895 --> 00:03:26,625 KT: This is from Roz and this is from the Community app. 60 00:03:26,633 --> 00:03:32,044 KT: It said Suze, when do medical bills become credit impacting debt? 61 00:03:32,350 --> 00:03:36,570 KT: Does it vary depending upon the medical provider. I get 62 00:03:36,580 --> 00:03:41,250 KT: notices from medical centers that the co parent hasn't paid 63 00:03:41,259 --> 00:03:46,339 KT: their portion 30 days, 60 days plus past due. So 64 00:03:46,350 --> 00:03:50,339 KT: far I haven't noticed an impact on my credit score, 65 00:03:50,419 --> 00:03:53,610 KT: but I'd like to understand the process more. 66 00:03:54,520 --> 00:03:57,360 Suze: Yeah. First of all, I don't know if all of 67 00:03:57,369 --> 00:04:02,207 Suze: you know this or not, but as of July 2022 - 68 00:04:02,207 --> 00:04:07,440 Suze: 2 years ago, major credit Bureaus, Equifax Experience TransUnion. That 69 00:04:07,449 --> 00:04:10,600 Suze: should have been your quizzy to name three credit bureaus. Anyway, 70 00:04:10,820 --> 00:04:18,820 Suze: they no longer include medical debts under $500 on credit reports. 71 00:04:18,829 --> 00:04:20,019 Suze: That's number one. 72 00:04:20,428 --> 00:04:23,299 Suze: And if you did have a medical collection that was 73 00:04:23,309 --> 00:04:27,200 Suze: reported on your credit report and you paid it, then 74 00:04:27,209 --> 00:04:31,229 Suze: they're also required to remove it from your credit reports 75 00:04:31,238 --> 00:04:35,339 Suze: however different than the question that you asked me the 76 00:04:35,350 --> 00:04:39,079 Suze: truth is that most medical providers will send you a 77 00:04:39,089 --> 00:04:43,219 Suze: bill that's due immediately or within 30 days if the 78 00:04:43,230 --> 00:04:44,890 Suze: bill isn't paid 79 00:04:45,369 --> 00:04:50,880 Suze: and it becomes overdue. But most medical providers allow some 80 00:04:50,890 --> 00:04:55,070 Suze: grace period. Usually I wanna say 90 to 100 and 81 00:04:55,079 --> 00:05:00,269 Suze: 80 days before turning that unpaid bill, KT over to 82 00:05:00,279 --> 00:05:05,950 Suze: collection agencies. Now, obviously some are more lenient than others, 83 00:05:05,959 --> 00:05:09,970 Suze: but that's about it. Now, what's important for all of 84 00:05:09,980 --> 00:05:10,380 Suze: you 85 00:05:10,940 --> 00:05:15,809 Suze: is that you should be checking because you wanna know 86 00:05:15,820 --> 00:05:19,159 Suze: is it on your credit report or not? And this 87 00:05:19,170 --> 00:05:22,808 Suze: person didn't say really? Did they say how long it 88 00:05:22,820 --> 00:05:23,359 Suze: had been, 89 00:05:23,970 --> 00:05:25,869 KT: It's the co parent. 90 00:05:25,880 --> 00:05:27,149 Suze: So the co parent 91 00:05:27,160 --> 00:05:30,920 KT: that hasn't paid their share and Roz is concerned 92 00:05:31,600 --> 00:05:31,760 Suze: for 30 to days... 93 00:05:31,769 --> 00:05:34,519 KT: Yea, its going to affect her credit. 94 00:05:34,850 --> 00:05:35,039 Suze: So you 95 00:05:35,049 --> 00:05:40,760 Suze: have at least really 180 days after the bill is 96 00:05:40,769 --> 00:05:44,709 Suze: sent to collections because it's not the medical provider, everybody, 97 00:05:44,720 --> 00:05:47,500 Suze: that's gonna put it on your credit report. It's when 98 00:05:47,510 --> 00:05:48,678 Suze: they actually sent 99 00:05:48,820 --> 00:05:53,200 Suze: it to collections, the collections agency will put it on 100 00:05:53,209 --> 00:05:56,640 Suze: your credit report. But if I were you and I 101 00:05:56,649 --> 00:05:59,959 Suze: had a co parent that was responsible, that's linked to 102 00:05:59,970 --> 00:06:05,119 Suze: your account, you better establish it very clearly that it's 103 00:06:05,130 --> 00:06:10,238 Suze: their financial responsibility and not yours. So you should not 104 00:06:10,250 --> 00:06:15,039 Suze: be directly responsible for their portion. I'm just saying. 105 00:06:15,410 --> 00:06:19,549 KT: OK, so this is my next question. It's actually a 106 00:06:19,559 --> 00:06:24,040 KT: thank you said, Suze, thank you for your podcast last Sunday. 107 00:06:24,049 --> 00:06:27,559 KT: Can you tell me how do I go about applying 108 00:06:27,570 --> 00:06:32,109 KT: for disaster relief from FEMA? Now, this is sad. A 109 00:06:32,119 --> 00:06:36,618 KT: little everyone. I'm 80 years old, a widow and I'm 110 00:06:36,630 --> 00:06:39,229 KT: so confused. Can you help me? 111 00:06:39,609 --> 00:06:40,600 Suze: Yeah, the truth is 112 00:06:40,700 --> 00:06:44,269 Suze: if you went on to the Women and Money community app, 113 00:06:44,709 --> 00:06:49,839 Suze: I actually listed all the URLs and phone numbers, but 114 00:06:49,850 --> 00:06:53,519 Suze: just for you, here's what you would do to apply 115 00:06:53,529 --> 00:06:57,820 Suze: for FEMA disaster assistance. The very first thing you need 116 00:06:57,829 --> 00:06:59,989 Suze: to do, sweetheart, is you need to fill out a 117 00:07:00,010 --> 00:07:05,820 Suze: disasterassistance.gov application and KT, you do that online. 118 00:07:06,329 --> 00:07:11,170 Suze: So applying using the FEMA app, you can also do that. 119 00:07:11,179 --> 00:07:14,209 Suze: So if you know how to download an app, look 120 00:07:14,220 --> 00:07:18,230 Suze: for the FEMA app and it's from any app store, 121 00:07:18,239 --> 00:07:21,910 Suze: from your iphone or whatever that may be, you also 122 00:07:21,920 --> 00:07:29,940 Suze: can apply by phone, which is 800-621-3362. And the truth 123 00:07:29,950 --> 00:07:30,519 Suze: is 124 00:07:31,171 --> 00:07:34,511 Suze: if you're really in a disaster area, then you could 125 00:07:34,522 --> 00:07:39,470 Suze: apply in person at a disaster area, recovery center that's 126 00:07:39,481 --> 00:07:43,231 Suze: near you. So that's how you would do it. 127 00:07:43,242 --> 00:07:47,481 KT: Have, if you can't do this yourself and have someone 128 00:07:47,492 --> 00:07:50,492 KT: help you just fill in the application. That's the number 129 00:07:50,502 --> 00:07:52,201 KT: one step and do 130 00:07:52,312 --> 00:07:52,462 KT: that. 131 00:07:53,182 --> 00:07:55,911 KT: People are being your community that is 132 00:07:56,093 --> 00:08:01,373 KT: in the disaster zone is so fabulous. Everyone will help 133 00:08:01,384 --> 00:08:05,234 KT: you find a friend, find, um a church, find a 134 00:08:05,243 --> 00:08:09,114 KT: medical facility. They'll help you fill it in for 135 00:08:09,123 --> 00:08:09,593 KT: sure. 136 00:08:09,683 --> 00:08:12,954 Suze: It's not that hard. You just have to be patient 137 00:08:13,164 --> 00:08:15,993 Suze: and no, listen, if you've made it to 80 you 138 00:08:16,003 --> 00:08:19,463 Suze: can do this girlfriend, you can do this. You're smart. 139 00:08:19,473 --> 00:08:20,753 Suze: You're stronger than you think 140 00:08:20,855 --> 00:08:23,696 Suze: you wrote into the show. So you must be 141 00:08:23,705 --> 00:08:24,196 Suze: smart. 142 00:08:24,205 --> 00:08:27,115 KT: So I have one more FEMA question that came in, Suze. 143 00:08:27,126 --> 00:08:32,286 KT: It said, can you explain what the 50% rule is 144 00:08:32,296 --> 00:08:37,106 KT: that FEMA is saying, I fall under. Try to try 145 00:08:37,116 --> 00:08:40,556 KT: to keep this short and try to tell people again 146 00:08:40,765 --> 00:08:42,395 KT: where to get the information, 147 00:08:42,955 --> 00:08:45,515 Suze: The FEMA 50% rule. 148 00:08:45,950 --> 00:08:51,090 Suze: And this applies to FEMA's flood insurance program under the 149 00:08:51,099 --> 00:08:56,929 Suze: National Flood Insurance. NFIP. Here's what it says. Everybody, 150 00:08:57,919 --> 00:09:04,909 Suze: if your repairs to your structure exceed 50% of its 151 00:09:04,919 --> 00:09:06,380 Suze: market value. 152 00:09:07,729 --> 00:09:12,630 Suze: All right, then you have to bring up the entire 153 00:09:12,640 --> 00:09:18,880 Suze: structure to the compliance of the current flood regulations. So 154 00:09:18,890 --> 00:09:23,750 Suze: it ensures that the properties are updated with future flood risk. Now, 155 00:09:23,760 --> 00:09:27,750 Suze: unless you already brought your home up to compliance, then 156 00:09:27,760 --> 00:09:30,309 Suze: it won't matter. But if you haven't, 157 00:09:30,960 --> 00:09:35,179 Suze: then you have to bring it up to compliance with 158 00:09:35,190 --> 00:09:37,859 Suze: your own money. All right, KT. 159 00:09:38,099 --> 00:09:42,440 KT: Ok. My next question, this is from PBS. I am... 160 00:09:42,450 --> 00:09:45,978 KT: I like that name PBS. I'm a single mother of two 161 00:09:45,989 --> 00:09:50,329 KT: adult children, 24 and 18, Suze, I take home about 162 00:09:50,340 --> 00:09:51,219 KT: $12,300 163 00:09:52,169 --> 00:09:56,890 KT: per month after maxing out my TSP plus another 3000 164 00:09:56,900 --> 00:10:01,880 KT: from the rental. I have about 1.5 million in retirement 165 00:10:02,080 --> 00:10:06,799 KT: and my equity in my home is approximately another 1.5 million. 166 00:10:06,950 --> 00:10:12,869 KT: My expenses are about 10,200 a month. I also live 167 00:10:12,880 --> 00:10:17,199 KT: with a wonderful man who takes home about 3900 per 168 00:10:17,210 --> 00:10:17,640 KT: month 169 00:10:17,940 --> 00:10:20,989 KT: because of the big difference in our salaries. I'm a 170 00:10:21,000 --> 00:10:26,080 KT: little nervous to marry him without a prenup arrangement. Any 171 00:10:26,090 --> 00:10:30,478 KT: advice on that? There you go. What would you do? 172 00:10:30,489 --> 00:10:31,000 Suze: Well, 173 00:10:31,010 --> 00:10:34,729 Suze: first of all, it's 1.5 million, I'm sure equity in 174 00:10:34,739 --> 00:10:38,569 Suze: her home as well as her rental. So she has 175 00:10:38,580 --> 00:10:44,400 Suze: a home a rental 1.5 million in retirement and makes 176 00:10:44,409 --> 00:10:46,320 Suze: a fabulous income. 177 00:10:46,840 --> 00:10:51,939 Suze: Listen, PBS, I would just stay living with him. I'm 178 00:10:51,950 --> 00:10:56,098 Suze: not sure that I would marry him. There's really no 179 00:10:56,109 --> 00:11:00,159 Suze: advantage for you to marry him. You could leave him 180 00:11:00,169 --> 00:11:04,130 Suze: all of this via a trust or making him a 181 00:11:04,140 --> 00:11:08,380 Suze: beneficiary of everything, even a transfer on death account on 182 00:11:08,390 --> 00:11:12,299 Suze: your piece of real estate or whatever it is. But 183 00:11:12,500 --> 00:11:15,319 Suze: there's all kinds of ways 184 00:11:15,719 --> 00:11:18,829 Suze: that you could do a prenup. But they can become 185 00:11:18,840 --> 00:11:22,250 Suze: very complicated because you have to have a lawyer, he 186 00:11:22,260 --> 00:11:24,559 Suze: has to have a lawyer who knows if they'll hold 187 00:11:24,570 --> 00:11:28,710 Suze: up in court or not. So, the real question is 188 00:11:28,960 --> 00:11:34,150 Suze: that you have hesitation or you wouldn't have written into 189 00:11:34,159 --> 00:11:38,260 Suze: us and you're nervous about marrying him. 190 00:11:38,609 --> 00:11:41,630 Suze: You shouldn't be nervous about the person that you're marrying 191 00:11:41,760 --> 00:11:45,330 Suze: because your differences in terms of how much money you 192 00:11:45,340 --> 00:11:48,070 Suze: make or how much you have. You should just continue 193 00:11:48,080 --> 00:11:52,750 Suze: living with him until you're no longer nervous on any level. 194 00:11:53,570 --> 00:11:56,030 Suze: And then you have to get a prenup. But me, 195 00:11:56,390 --> 00:11:58,520 Suze: I would just stay living with him. What would you 196 00:11:58,530 --> 00:11:59,450 Suze: have said to her? 197 00:11:59,530 --> 00:12:03,319 KT: I think it's the kids that are more nervous than, 198 00:12:03,330 --> 00:12:07,690 KT: than mom. They're 24 and 18. They, they see the 199 00:12:07,700 --> 00:12:11,640 KT: writing on the wall. There you go. All right. Next 200 00:12:11,650 --> 00:12:16,108 KT: question is from Joy. She said, love your podcast, husband 201 00:12:16,119 --> 00:12:20,650 KT: and I are both freelance performers, musicians and teachers. I 202 00:12:20,659 --> 00:12:23,690 KT: love that. I love that. You're a musical family 203 00:12:24,109 --> 00:12:27,409 KT: now, she says Suze, at what age should we stop 204 00:12:27,419 --> 00:12:31,510 KT: funding our Roth IRAs, would there be a reason to 205 00:12:31,520 --> 00:12:35,020 KT: stop at a certain age? I don't think so. We 206 00:12:35,030 --> 00:12:37,770 KT: are over the five year minimum by a lot. And 207 00:12:37,780 --> 00:12:42,359 KT: we've both religiously been funding for years now. We're in 208 00:12:42,369 --> 00:12:48,210 KT: our sixties. Musicians don't retire. That's true. But we definitely 209 00:12:48,219 --> 00:12:50,900 KT: have saved some for a future where we'll work less. 210 00:12:50,909 --> 00:12:51,849 KT: Thanks so much. 211 00:12:52,130 --> 00:12:55,659 KT: So, the question is at, what age should we stop 212 00:12:55,669 --> 00:12:59,549 KT: funding our Roth IRAs? Never, never, 213 00:12:59,559 --> 00:13:00,189 Suze: never, 214 00:13:00,200 --> 00:13:02,270 KT: never, never. 215 00:13:03,039 --> 00:13:07,549 Suze: You stop funding your Roth IRAs when you 216 00:13:07,655 --> 00:13:13,733 Suze: no longer have any earned income period. Other than that, 217 00:13:13,765 --> 00:13:18,255 Suze: you keep funding them, funding them, funding them because especially 218 00:13:18,265 --> 00:13:20,974 Suze: since you're past the five year period, you can take 219 00:13:20,984 --> 00:13:24,515 Suze: that money out anytime you want. So, are you kidding 220 00:13:24,525 --> 00:13:24,994 Suze: me 221 00:13:25,419 --> 00:13:28,959 Suze: when you stop earning money? All right, KT. 222 00:13:29,299 --> 00:13:32,320 KT: So I love this question. This is from Wendy. She 223 00:13:32,330 --> 00:13:36,159 KT: said hi, Suze and KT. Thank you so much for 224 00:13:36,169 --> 00:13:39,570 KT: all you do. I can't tell you how nice it 225 00:13:39,580 --> 00:13:44,280 KT: is to be able to ask questions to someone. I trust. 226 00:13:44,630 --> 00:13:45,439 KT: There you go, Suze. 227 00:13:46,049 --> 00:13:48,340 Suze: She must be talking to you. She's talking 228 00:13:48,349 --> 00:13:51,520 KT: to you, Wendy. I love that. You trust Suze. So 229 00:13:51,530 --> 00:13:52,159 KT: do I... 230 00:13:52,460 --> 00:13:56,219 KT: She said my husband's mom passed away in July and 231 00:13:56,229 --> 00:14:01,229 KT: designated him as a beneficiary. He's now 54 years old. 232 00:14:01,369 --> 00:14:06,760 KT: I understand. He needs to withdraw the money in 10 years. However, 233 00:14:06,770 --> 00:14:11,109 KT: since he's under age 59 and a half, will he 234 00:14:11,119 --> 00:14:15,820 KT: be charged a 10% penalty if he decides to withdraw 235 00:14:15,830 --> 00:14:16,919 KT: the money? Now, 236 00:14:17,799 --> 00:14:19,760 KT: didn't you do a whole podcast on 237 00:14:19,770 --> 00:14:20,059 KT: this? 238 00:14:20,109 --> 00:14:24,130 Suze: Of course. But it's also funny because I actually wrote 239 00:14:24,140 --> 00:14:28,979 Suze: Wendy back. You remember sometimes people I write you back 240 00:14:28,989 --> 00:14:31,900 Suze: directly when I read it. Tell me what you tell her. 241 00:14:31,909 --> 00:14:37,780 Suze: I said no, no, no penalty. That's absolutely 242 00:14:37,880 --> 00:14:44,059 Suze: ridiculous. When you inherit a retirement account, whether you're 13, 15, 243 00:14:44,190 --> 00:14:48,429 Suze: it doesn't matter what age you are, there is no 10% 244 00:14:48,440 --> 00:14:50,900 Suze: penalty if you happen to be under the age of 245 00:14:50,909 --> 00:14:52,880 Suze: 59 and a half. All right. 246 00:14:52,890 --> 00:14:56,840 KT: Ok. Hi, Suze and KT. I recently paid an attorney 247 00:14:56,849 --> 00:14:57,859 KT: 1800 248 00:14:57,960 --> 00:15:03,080 KT: dollars to redo my outdated will before listening to all 249 00:15:03,090 --> 00:15:07,229 KT: your podcast on Revocable Living Trust. Is it too late 250 00:15:07,239 --> 00:15:10,739 KT: now to use the must have documents to add the 251 00:15:10,750 --> 00:15:14,210 KT: revocable trust. And can I use it with my new 252 00:15:14,219 --> 00:15:19,109 KT: will without creating a poor over will? I can't believe 253 00:15:19,119 --> 00:15:22,219 KT: she paid someone $1800 for a will. 254 00:15:22,919 --> 00:15:23,500 Suze: You know what 255 00:15:23,859 --> 00:15:25,049 KT: You pay that for just... 256 00:15:25,059 --> 00:15:27,640 Suze: You know, I have a hard time believing is that 257 00:15:27,650 --> 00:15:30,700 Suze: I watch some of these TV commercials and it says 258 00:15:31,010 --> 00:15:34,940 Suze: trust and will $199 for just a will. Are you 259 00:15:34,950 --> 00:15:39,820 Suze: kidding me, everybody? The must have documents for must have 260 00:15:39,830 --> 00:15:40,609 Suze: documents 261 00:15:40,890 --> 00:15:46,210 Suze: $2500 a will a living revocable trust in advance directive 262 00:15:46,219 --> 00:15:48,710 Suze: and durable power of attorney for health care and a 263 00:15:48,719 --> 00:15:52,989 Suze: financial power of attorney updated as many times as you 264 00:15:53,000 --> 00:15:56,190 Suze: want to, no charge can share it with your family. 265 00:15:56,200 --> 00:16:03,030 Suze: Go to must have docs.com and Lynn, you absolutely can 266 00:16:03,039 --> 00:16:05,869 Suze: do the must have docs. And if you want to 267 00:16:05,880 --> 00:16:10,020 Suze: continue to use your will that you have, you can. 268 00:16:10,419 --> 00:16:13,789 Suze: But remember when you do the must have docs program 269 00:16:14,150 --> 00:16:17,200 Suze: within an hour, you've answered all the questions that the 270 00:16:17,210 --> 00:16:21,710 Suze: program asks you and then all four must have docs 271 00:16:21,719 --> 00:16:25,239 Suze: are created for you at one time. If you rather 272 00:16:25,250 --> 00:16:28,559 Suze: use the will that your lawyer did and not the 273 00:16:28,570 --> 00:16:34,000 Suze: will that gets printed out with the program, that's absolutely fine. 274 00:16:34,010 --> 00:16:35,239 Suze: All right, KT. 275 00:16:35,549 --> 00:16:38,789 KT: So next question is from Jamie. I have learned from 276 00:16:38,799 --> 00:16:45,049 KT: you that whole life insurance is a waste of money. Unfortunately, 277 00:16:45,059 --> 00:16:49,559 KT: I've been paying into such a policy for 30 years. 278 00:16:49,859 --> 00:16:53,109 KT: My children are now grown and I'd like to stop 279 00:16:53,119 --> 00:16:56,609 KT: wasting my money. In this way. I'd like to cash 280 00:16:56,619 --> 00:17:02,440 KT: out the policy which has a cash value of $8000. Plus, 281 00:17:03,049 --> 00:17:07,849 KT: I'm concerned that if I have an $8000 plus windfall, 282 00:17:07,939 --> 00:17:11,629 KT: I'll be in a world of hurt in April when 283 00:17:11,640 --> 00:17:14,929 KT: it's time to file my taxes. What is the best 284 00:17:14,939 --> 00:17:18,349 KT: thing for me to do in this situation? Thank you 285 00:17:18,359 --> 00:17:20,189 KT: so much, Suze, Jamie. 286 00:17:20,459 --> 00:17:21,430 Suze: So Jamie. 287 00:17:22,223 --> 00:17:25,494 Suze: Chances are over the 30 years that you've been putting 288 00:17:25,504 --> 00:17:30,523 Suze: money in to this whole life insurance policy. You actually 289 00:17:30,534 --> 00:17:36,284 Suze: have put in more than 8000 plus over the entire 290 00:17:36,292 --> 00:17:40,423 Suze: 30 years. If you think about that, if you just 291 00:17:40,433 --> 00:17:45,614 Suze: put in $1000 a year, that would be 30,000. If 292 00:17:45,624 --> 00:17:48,384 Suze: you put in 500 a year, 293 00:17:48,839 --> 00:17:55,079 Suze: you know, that would be 15,000. So chances are you 294 00:17:55,089 --> 00:17:58,709 Suze: have put in more because you put in more than 295 00:17:58,719 --> 00:18:02,300 Suze: you have in a cash value. There is no taxable 296 00:18:02,310 --> 00:18:06,369 Suze: event to you at all because you are getting back 297 00:18:06,380 --> 00:18:08,530 Suze: less than you have actually put in. 298 00:18:08,829 --> 00:18:12,339 Suze: So I personally would not be worrying about it if 299 00:18:12,349 --> 00:18:14,639 Suze: I were you. Why are you looking at? 300 00:18:14,650 --> 00:18:14,699 KT: I 301 00:18:14,839 --> 00:18:17,839 KT: didn't know that. That's great. I didn't know that. But 302 00:18:17,849 --> 00:18:18,569 Suze: what's important 303 00:18:19,170 --> 00:18:21,969 KT: is 30 years and she only gets 8000. 304 00:18:21,979 --> 00:18:24,160 Suze: Well, think about it, even if she was putting in 305 00:18:24,260 --> 00:18:29,880 Suze: 300 a year, that would be $9000. So trust me 306 00:18:29,890 --> 00:18:33,729 Suze: and you know that 25 a month. So I doubt 307 00:18:33,739 --> 00:18:34,489 Suze: highly 308 00:18:34,959 --> 00:18:40,300 Suze: that she's put in less than 8000 plus. But what 309 00:18:40,310 --> 00:18:42,020 Suze: everybody has to know 310 00:18:42,689 --> 00:18:48,149 Suze: is that before you ever, ever, ever cancel any life 311 00:18:48,160 --> 00:18:51,750 Suze: insurance policy, you better make sure that you are healthy, 312 00:18:51,760 --> 00:18:54,969 Suze: that nothing is wrong that you know that without a 313 00:18:54,979 --> 00:18:58,270 Suze: shadow of a doubt. So just don't go canceling those 314 00:18:58,280 --> 00:19:01,780 Suze: insurance policies just in case. 315 00:19:01,790 --> 00:19:06,339 KT: All right. Hi Suze and KT. This is, this is 316 00:19:06,349 --> 00:19:09,069 KT: from Jason. This is my last question, everyone. 317 00:19:09,430 --> 00:19:12,208 KT: I'm going to be over the Roth IRA limit for 318 00:19:12,219 --> 00:19:16,569 KT: 2024 because my husband is amazing and got a big 319 00:19:16,579 --> 00:19:19,688 KT: raise plus a bonus at work. Is it better to 320 00:19:19,699 --> 00:19:24,609 KT: contribute to a traditional IRA and convert to Roth each 321 00:19:24,619 --> 00:19:24,849 KT: time 322 00:19:25,125 --> 00:19:28,685 KT: a contribution is made or wait until the end of 323 00:19:28,694 --> 00:19:32,094 KT: the year and convert all at once. I think I 324 00:19:32,104 --> 00:19:34,594 KT: can make a good argument for either one and I 325 00:19:34,604 --> 00:19:37,504 KT: have analysis paralysis. 326 00:19:38,604 --> 00:19:44,395 Suze: So here's the thing, it's not about when to convert. 327 00:19:44,405 --> 00:19:46,574 Suze: According to the time of the year, 328 00:19:47,010 --> 00:19:50,780 Suze: you would convert according to what the money happens to 329 00:19:50,790 --> 00:19:55,099 Suze: be invested in. Remember if you invest in the traditional 330 00:19:55,109 --> 00:19:57,810 Suze: IRA and let's say you're gonna wait till the end 331 00:19:57,819 --> 00:20:01,170 Suze: of the year to convert it all at once during 332 00:20:01,180 --> 00:20:05,099 Suze: that year that you put the money in the traditional IRA. 333 00:20:05,540 --> 00:20:09,880 Suze: Hopefully you've invested it to take advantage of the market's 334 00:20:09,890 --> 00:20:12,579 Suze: upward move if the markets are moving up. 335 00:20:13,170 --> 00:20:16,550 Suze: But if you then convert it, when the markets are up, 336 00:20:16,560 --> 00:20:20,089 Suze: you're gonna owe more income taxes on it than if 337 00:20:20,099 --> 00:20:23,829 Suze: you had done it when the markets were down or 338 00:20:23,839 --> 00:20:27,438 Suze: if you did it right away and simply then bought 339 00:20:27,449 --> 00:20:32,229 Suze: something in the Roth IRA. So it doesn't matter. So 340 00:20:32,239 --> 00:20:33,510 Suze: if it were me 341 00:20:34,290 --> 00:20:38,739 Suze: and I was making a contribution to my traditional IRA, 342 00:20:39,060 --> 00:20:45,810 Suze: I would absolutely immediately be converting it to a Roth IRA. 343 00:20:45,819 --> 00:20:48,810 Suze: Did that make sense to you? KT all Right. Well, 344 00:20:48,819 --> 00:20:51,389 Suze: if it made sense to KT, you should. Oh, I 345 00:20:51,400 --> 00:20:54,790 Suze: didn't mean that. KT, I'm so sorry. I was about 346 00:20:54,800 --> 00:20:55,189 Suze: to say that... 347 00:20:55,670 --> 00:20:58,709 KT: I know what she's saying. I'm not gonna do your 348 00:20:58,719 --> 00:21:00,510 KT: quizzy if you say that again. 349 00:21:00,969 --> 00:21:03,188 KT: You said if it makes sense to KT, then it's 350 00:21:03,199 --> 00:21:04,688 KT: gonna make sense to all of 351 00:21:04,699 --> 00:21:05,339 KT: you. 352 00:21:05,349 --> 00:21:09,209 Suze: Well, is a little bit when it comes to a Roth, right? 353 00:21:09,810 --> 00:21:10,989 KT: A Roth. Maybe that topic. Maybe. 354 00:21:11,949 --> 00:21:15,430 Suze: All right, ready everybody. It is quizzy time. And this 355 00:21:15,439 --> 00:21:19,290 Suze: is where I asked KT a question and I'm really 356 00:21:19,300 --> 00:21:22,188 Suze: asking it to all of you because again, what is 357 00:21:22,199 --> 00:21:24,619 Suze: the goal of the Women and Money podcast? 358 00:21:25,140 --> 00:21:28,679 Suze: It's so that you can answer all of these. Why 359 00:21:28,689 --> 00:21:29,079 Suze: are you 360 00:21:29,089 --> 00:21:29,569 Suze: laughing? 361 00:21:29,579 --> 00:21:32,069 KT: The goal is to be smarter than KT 362 00:21:33,089 --> 00:21:34,930 Suze: No, don't you all 363 00:21:34,989 --> 00:21:35,439 KT: come on, 364 00:21:35,449 --> 00:21:41,339 Suze: let's don't ever say that KT. Alright. Anyway, so all 365 00:21:41,349 --> 00:21:45,000 Suze: of you can answer these questions. This one comes from 366 00:21:45,010 --> 00:21:45,849 Suze: Linda 367 00:21:46,479 --> 00:21:51,530 Suze: and she says I currently have a high deductible insurance 368 00:21:51,540 --> 00:21:56,109 Suze: plan at work and contribute to an HSA. 369 00:21:56,250 --> 00:21:58,670 KT: I know a lot about HSAs. 370 00:21:58,699 --> 00:21:59,335 Suze: All right. 371 00:21:59,335 --> 00:21:59,410 KT: I do. 372 00:21:59,920 --> 00:22:01,339 Suze: So you think you're gonna get this one 373 00:22:01,349 --> 00:22:01,688 Suze: right or wrong? 374 00:22:01,800 --> 00:22:05,379 KT: I get it right. I... Suze and I did HSAs 375 00:22:05,390 --> 00:22:07,449 KT: for a year for a 376 00:22:07,494 --> 00:22:10,375 KT: corporation and I learned a lot about an HSA 377 00:22:11,765 --> 00:22:14,265 Suze: and wait, if you get it wrong, will you do 378 00:22:14,275 --> 00:22:15,344 Suze: dishes for the next 379 00:22:15,354 --> 00:22:15,814 Suze: week? 380 00:22:15,824 --> 00:22:19,494 KT: No, I I know HSAs. I feel pretty confident that I, 381 00:22:19,545 --> 00:22:21,354 Suze: So why aren't you willing to bet me that? 382 00:22:21,694 --> 00:22:26,694 KT: I've never bet Suze. Don't ever bet Suze. She always wins. 383 00:22:26,704 --> 00:22:27,614 KT: So I'm not going to bet. 384 00:22:28,949 --> 00:22:33,329 Suze: I just, are you sure? And if, and if you're right, 385 00:22:33,339 --> 00:22:35,479 Suze: then I have to do it for the next month. 386 00:22:35,619 --> 00:22:35,819 Suze: You 387 00:22:35,829 --> 00:22:36,010 KT: do 388 00:22:36,020 --> 00:22:37,729 KT: the dishes anyway. Keep going 389 00:22:37,859 --> 00:22:42,109 Suze: Anyway. All right. I just turned 65 and signed up 390 00:22:42,119 --> 00:22:46,910 Suze: for Medicare part A. Can I still contribute to my 391 00:22:46,920 --> 00:22:50,438 Suze: HSA while I am still working? 392 00:22:51,030 --> 00:22:51,550 KT: No. 393 00:22:53,949 --> 00:22:54,479 Suze: How do you 394 00:22:54,489 --> 00:22:54,979 Suze: know that? 395 00:22:54,989 --> 00:22:58,660 KT: Because if you, first of all HSA, if you're, if 396 00:22:58,670 --> 00:23:02,198 KT: you're with Medicare, everything else, you stop. I told you 397 00:23:02,209 --> 00:23:06,579 KT: for a year, I followed you around America and you 398 00:23:06,589 --> 00:23:10,969 KT: lectured to thousands and thousands of employees about their 399 00:23:11,074 --> 00:23:13,885 KT: HSA. So I'm good with it. 400 00:23:13,984 --> 00:23:15,655 Suze: Ding, ding, ding, ding, ding. 401 00:23:16,185 --> 00:23:18,125 KT: I'll ding with you. I know HSAs. 402 00:23:18,574 --> 00:23:20,905 Suze: Wait a minute. You're gonna ding ding, ding with me 403 00:23:20,915 --> 00:23:21,925 Suze: on the podcast. You do. 404 00:23:21,935 --> 00:23:26,484 KT: Absolutely. I know HSAs everybody, not Roth but HSA and 405 00:23:26,494 --> 00:23:28,145 KT: I are solid. 406 00:23:29,270 --> 00:23:32,729 Suze: I have to tell you a little secret. I kind 407 00:23:32,739 --> 00:23:36,079 Suze: of picked these knowing that you won't know the answer. 408 00:23:36,089 --> 00:23:37,319 KT: Are you surprised? 409 00:23:38,000 --> 00:23:39,510 Suze: Do I look surprised to you? 410 00:23:40,439 --> 00:23:41,839 KT: I'm good with HSAs. 411 00:23:42,239 --> 00:23:44,859 Suze: All right. So once you sign up for Medicare, everybody, 412 00:23:44,910 --> 00:23:52,229 Suze: you cannot contribute more to an HSA. All right. That's it. 413 00:23:52,239 --> 00:23:53,359 KT: That's a wrap. 414 00:23:53,369 --> 00:23:54,250 Suze: It's a wrap. 415 00:23:54,260 --> 00:23:59,699 KT: Hey, everyone. Halloween's coming up. Let's do a Halloween podcast. 416 00:24:00,099 --> 00:24:01,319 Suze: KT Halloween is still 417 00:24:01,329 --> 00:24:02,069 Suze: two weeks away, 418 00:24:02,189 --> 00:24:06,170 KT: But it's coming up. We should do a trick or treat. Oh, 419 00:24:06,180 --> 00:24:09,219 KT: send me trick or treat questions everybody. 420 00:24:09,780 --> 00:24:13,119 KT: And if any of you can guess I'm gonna post 421 00:24:13,130 --> 00:24:17,140 KT: on the Women and Money App. Three of Suze's favorite 422 00:24:17,150 --> 00:24:22,229 KT: Halloween Candies. If you can guess the most favorite, you're 423 00:24:22,239 --> 00:24:23,389 KT: gonna get a prize. 424 00:24:23,660 --> 00:24:25,199 Suze: But how will, you know, 425 00:24:26,400 --> 00:24:27,310 KT: what do you mean? How often, 426 00:24:27,430 --> 00:24:29,310 Suze: how will you know, who, guess what? 427 00:24:29,319 --> 00:24:31,239 KT: They'll write into me? My question and they'll guess. 428 00:24:31,250 --> 00:24:33,969 Suze: That's not how you're gonna do it. You're gonna do 429 00:24:33,979 --> 00:24:37,459 Suze: a poll and we'll see if the majority of people are. 430 00:24:37,469 --> 00:24:37,630 KT: Ok. 431 00:24:37,739 --> 00:24:38,290 KT: We're gonna do a 432 00:24:38,300 --> 00:24:41,949 KT: poll for Halloween. I'm gonna, I'm gonna start having fun. 433 00:24:41,959 --> 00:24:42,619 KT: Everybody 434 00:24:42,969 --> 00:24:45,889 KT: year's almost over. I'm done. I want to 435 00:24:45,900 --> 00:24:46,180 KT: have 436 00:24:46,189 --> 00:24:46,510 KT: fun. 437 00:24:46,520 --> 00:24:48,880 Suze: And when is it that you haven't ever? 438 00:24:49,270 --> 00:24:49,739 KT: Well, right 439 00:24:49,750 --> 00:24:53,189 KT: now, well, it's a little stressful these days. Let's tell 440 00:24:53,199 --> 00:24:56,689 KT: everyone why. We live in Florida. We live in the Bahamas. 441 00:24:56,699 --> 00:24:59,149 KT: We are in hurricane season. 442 00:24:59,569 --> 00:25:04,500 KT: It's usually over around Halloween. So I'm gonna start having 443 00:25:04,510 --> 00:25:06,489 KT: some fun. That's all there is to, 444 00:25:06,500 --> 00:25:09,530 Suze: It is not over till the end of November, 445 00:25:09,540 --> 00:25:13,689 KT: But I'm gonna be very positive and very hopeful. 446 00:25:15,285 --> 00:25:20,444 Suze: As another one is coming our way anyway, there's only 447 00:25:20,454 --> 00:25:23,344 Suze: one thing that we really want you to remember and 448 00:25:23,354 --> 00:25:26,054 Suze: that's for all of you to be hopeful for all 449 00:25:26,064 --> 00:25:28,425 Suze: of you to have fun for all of you to 450 00:25:28,435 --> 00:25:32,194 Suze: have this spirit like KT does. And when it comes 451 00:25:32,204 --> 00:25:35,324 Suze: to money, there's only one thing that matters. And what 452 00:25:35,334 --> 00:25:36,265 Suze: is it? KT? 453 00:25:36,275 --> 00:25:38,864 KT: It's people first, then money, 454 00:25:40,109 --> 00:25:44,449 KT: then, then trick or treat. No, then things, then candy 455 00:25:46,920 --> 00:25:50,310 Suze: Here we go everybody... and if you do that, you will 456 00:25:50,319 --> 00:25:50,899 Suze: be 457 00:25:50,910 --> 00:25:52,489 Suze: unstoppable 458 00:25:52,510 --> 00:25:53,760 KT: and fat (laughs).