1 00:00:28,950 --> 00:00:33,809 Suze: June 12, 2025. Welcome everybody to the Women and Money... Don't make me. 2 00:00:34,939 --> 00:00:35,138 KT: Why are you laughing? 3 00:00:35,138 --> 00:00:35,810 Suze: I don't know. 4 00:00:35,939 --> 00:00:38,659 KT: I'll tell you why she's laughing, everybody, because this is 5 00:00:38,659 --> 00:00:43,258 KT: take three. She read this beginning three times with the 6 00:00:43,259 --> 00:00:45,979 KT: wrong date, so I'm looking at her and I'm saying 7 00:00:45,979 --> 00:00:49,528 KT: I'm shaking my head. No, Suze, it's the 12th, not 8 00:00:49,529 --> 00:00:52,939 KT: the 11th, not the 10th, it's the 12th of June. 9 00:00:54,060 --> 00:00:54,590 KT: There we go. 10 00:00:54,939 --> 00:00:56,009 Suze: All right, so you feel better now. 11 00:00:56,099 --> 00:00:57,610 KT: It's almost Bastille Day. 12 00:00:58,139 --> 00:01:01,180 Suze: Do y'all feel better now? You're good. All right. So 13 00:01:01,180 --> 00:01:04,738 Suze: this is the Women and Money Podcast, and Everybody Smart 14 00:01:04,739 --> 00:01:05,730 Suze: Enough to Listen. 15 00:01:05,989 --> 00:01:06,720 Suze: And today is... 16 00:01:06,720 --> 00:01:08,660 KT: Ask KT and Suze Anything. 17 00:01:09,059 --> 00:01:12,378 Suze: But it's obvious that KT is going to tell me 18 00:01:12,379 --> 00:01:15,809 Suze: everything today. I can tell you she's just a little 19 00:01:16,180 --> 00:01:20,540 Suze: whatever buster already and it's early and it's just she's 20 00:01:20,540 --> 00:01:24,739 Suze: she's very rambunctious already. Is that because Colo comes home? 21 00:01:24,900 --> 00:01:28,610 KT: No, it's because you're taking me out today on the boat. 22 00:01:28,610 --> 00:01:28,629 Suze: By myself? 23 00:01:29,580 --> 00:01:30,059 KT: Just you 24 00:01:30,059 --> 00:01:31,940 KT: and me, baby, you and me, just you and 25 00:01:31,940 --> 00:01:32,059 KT: me. 26 00:01:32,139 --> 00:01:33,940 Suze: How are we going to explain that to Colo? 27 00:01:34,400 --> 00:01:37,309 KT: I'm telling him he has other things to do. We're 28 00:01:37,309 --> 00:01:38,940 KT: going alone, just you and me. 29 00:01:39,150 --> 00:01:39,459 Suze: Is there 30 00:01:39,459 --> 00:01:40,378 Suze: a reason why? 31 00:01:40,550 --> 00:01:44,459 KT: Yeah, cause we can, but let's start this podcast. 32 00:01:44,620 --> 00:01:47,309 Suze: Wait, can I tell you a story? All right. So 33 00:01:47,309 --> 00:01:51,550 Suze: as you know, yesterday, right, Mr. Davis came over to 34 00:01:51,550 --> 00:01:52,860 Suze: say hi to us. Now Mr. Davis... 35 00:01:53,069 --> 00:01:54,069 KT: Love him. 36 00:01:54,485 --> 00:01:56,355 Suze: Love him is like in his he's 37 00:01:56,355 --> 00:02:00,834 KT: the godfather of this island. He's the best farmer, fisherman, 38 00:02:00,925 --> 00:02:01,125 Suze: The 39 00:02:01,125 --> 00:02:06,084 Suze: best fisherman ever, ever. So it's funny, KT, because yesterday 40 00:02:06,084 --> 00:02:09,434 Suze: I was telling him how you and I are going 41 00:02:09,434 --> 00:02:12,845 Suze: to start going out on the boat by ourself, and 42 00:02:12,845 --> 00:02:16,804 Suze: he said, you know, Suze, you've come so far. I 43 00:02:16,804 --> 00:02:18,755 Suze: remember like 10 years ago. 44 00:02:19,288 --> 00:02:22,490 Suze: I would be going out fishing, and there you and 45 00:02:22,490 --> 00:02:25,889 Suze: KT would be in your boat with your little fishing 46 00:02:25,889 --> 00:02:28,880 Suze: rods catching the tiniest little fish... 47 00:02:28,880 --> 00:02:29,639 KT: On the dock. 48 00:02:29,809 --> 00:02:32,970 Suze: No, we would be at Mrs. Boo in front of Mrs. Boo, 49 00:02:33,538 --> 00:02:36,690 Suze: and we would go every single day, you guys, to 50 00:02:36,690 --> 00:02:37,750 Suze: this spot. Because 51 00:02:37,800 --> 00:02:38,750 Suze: we were afraid to go 52 00:02:38,750 --> 00:02:39,139 Suze: very far. 53 00:02:39,199 --> 00:02:41,869 KT: 12 ft of water we would anchor and it was 54 00:02:41,869 --> 00:02:43,990 KT: a big deal to anchor. I'll never 55 00:02:43,990 --> 00:02:44,380 KT: forget. 56 00:02:44,380 --> 00:02:47,500 Suze: And we caught these little tiny fish and we would 57 00:02:47,500 --> 00:02:50,269 Suze: be so excited and then we would go to the 58 00:02:50,270 --> 00:02:54,429 Suze: filet station. KT would filet them, but he said every 59 00:02:54,429 --> 00:02:56,389 Suze: day he would see us there. 60 00:02:56,758 --> 00:03:00,949 Suze: And he said, 'You girls have come a really long way.' 61 00:03:01,070 --> 00:03:03,859 Suze: But don't you love that he told that story? All right, 62 00:03:04,110 --> 00:03:05,190 Suze: you have questions for me. 63 00:03:05,270 --> 00:03:05,940 KT: I do. 64 00:03:06,000 --> 00:03:06,470 Suze: What are they? 65 00:03:06,630 --> 00:03:07,380 KT: Are you ready? 66 00:03:07,479 --> 00:03:08,079 Suze: I hope so. 67 00:03:08,139 --> 00:03:12,350 KT: OK, everyone, here we go. Buckle up. Hello, Suze. Thank 68 00:03:12,350 --> 00:03:15,788 KT: you for helping women with their finances. I am a 69 00:03:15,788 --> 00:03:20,269 KT: new senior, and I understand about stocks and GICs. 70 00:03:21,660 --> 00:03:21,668 Suze: Do you know what at GIC is? 71 00:03:22,050 --> 00:03:25,139 KT: Yeah, guaranteed investment certificates. 72 00:03:25,369 --> 00:03:25,609 Suze: How did you know that? 73 00:03:25,609 --> 00:03:28,979 KT: Because it says it right here. It says it on 74 00:03:28,979 --> 00:03:31,639 KT: my email, but I still don't know what a GIC is. 75 00:03:31,639 --> 00:03:32,478 Suze: I'll tell you. 76 00:03:33,720 --> 00:03:35,710 KT: I know what a geek is, but I don't know what a GIC is. 77 00:03:36,119 --> 00:03:36,979 Suze: I'll tell you... 78 00:03:36,979 --> 00:03:37,830 Suze: Read me the question. 79 00:03:37,869 --> 00:03:41,949 KT: I do not understand why bonds are necessary. Also, there's 80 00:03:41,949 --> 00:03:45,949 KT: so many bonds. Would you recommend bond ETFs, which types, 81 00:03:46,029 --> 00:03:48,910 KT: and what should be the goal for bonds? I know 82 00:03:48,910 --> 00:03:51,710 KT: it's the fixed income part and the income would be 83 00:03:51,710 --> 00:03:56,229 KT: my goal. Why would bonds be better than GICs? Suze, 84 00:03:56,270 --> 00:03:57,410 KT: you're a geek. Tell him why. 85 00:03:57,940 --> 00:03:59,179 Suze: So a GIC is what again KT? 86 00:04:00,210 --> 00:04:03,279 KT: Guaranteed investment certificates. 87 00:04:03,279 --> 00:04:06,699 Suze: And they are usually offered, so this person must be 88 00:04:06,699 --> 00:04:11,500 Suze: from Canada because they're usually offered by Canadian banks and 89 00:04:11,500 --> 00:04:12,600 Suze: trust companies. 90 00:04:13,440 --> 00:04:13,563 KT: Why? 91 00:04:13,563 --> 00:04:16,500 Suze: Because that's just they like like them. And so when 92 00:04:16,500 --> 00:04:20,659 Suze: you purchase one, you're essentially lending a bank or a 93 00:04:20,660 --> 00:04:24,618 Suze: financial institution money for a fixed period of time. 94 00:04:25,049 --> 00:04:29,078 Suze: When you do that, that bank guarantees your interest rate 95 00:04:29,079 --> 00:04:32,570 Suze: and everything back, kind of like a bond, but because 96 00:04:32,570 --> 00:04:35,809 Suze: it's all kind of guaranteed up to $100,000 by the way. 97 00:04:36,089 --> 00:04:40,200 Suze: But anyway, they give you a lower interest rate than 98 00:04:40,200 --> 00:04:41,649 Suze: a bond would. 99 00:04:42,649 --> 00:04:46,149 Suze: So that's essentially what a GIC is. Did that not 100 00:04:46,149 --> 00:04:46,589 Suze: explain it? 101 00:04:46,790 --> 00:04:49,299 KT: So which is better, a GIC or a bond? 102 00:04:49,510 --> 00:04:51,399 Suze: So the thing about a GIC, 103 00:04:52,700 --> 00:04:55,469 Suze: right, for those of you who would ever come across them, 104 00:04:55,738 --> 00:04:59,940 Suze: you get a lower interest rate. It's fixed normally depending 105 00:04:59,940 --> 00:05:02,100 Suze: on what kind of GIC you buy 'cause there's 3 106 00:05:02,100 --> 00:05:06,299 Suze: or 4 kinds of different ones, then you usually don't 107 00:05:06,299 --> 00:05:09,809 Suze: get your interest rate till it matures. It's not like 108 00:05:09,809 --> 00:05:12,419 Suze: a bond that if interest rates go down, the value 109 00:05:12,420 --> 00:05:15,279 Suze: of the bond goes up, that you can easily cash 110 00:05:15,279 --> 00:05:18,250 Suze: out of and things like that. So here's the answer 111 00:05:18,250 --> 00:05:20,808 Suze: to your question. What is this person's name? 112 00:05:21,309 --> 00:05:22,059 KT: Elisa. 113 00:05:22,559 --> 00:05:27,130 Suze: So here's the thing, the disadvantage of a GIC is 114 00:05:27,130 --> 00:05:31,329 Suze: that you generally get a lower return in comparison to 115 00:05:31,329 --> 00:05:35,089 Suze: a bond. You don't have as much liquidity as you 116 00:05:35,089 --> 00:05:38,899 Suze: do with a bond, and again, obviously your interest rate 117 00:05:38,899 --> 00:05:41,289 Suze: earned is taxable to you. 118 00:05:41,750 --> 00:05:45,390 Suze: So I personally like bonds because you can buy and 119 00:05:45,390 --> 00:05:48,510 Suze: sell them any time you want. The interest rate is 120 00:05:48,510 --> 00:05:52,660 Suze: higher than a GIC, and it just gives me more flexibility. 121 00:05:52,829 --> 00:05:55,670 Suze: But if you like that your principal is protected, you 122 00:05:55,670 --> 00:05:58,149 Suze: like the guaranteed return, you like all of 123 00:05:58,195 --> 00:06:01,295 Suze: those things then just stick with your GICs. All right. 124 00:06:01,584 --> 00:06:05,695 KT: Now listen to the next question carefully, everybody and Suze. 125 00:06:05,945 --> 00:06:09,703 KT: The reason I picked it, it's from Russell. Russell from Louisiana, 126 00:06:09,863 --> 00:06:12,863 KT: but this is why I picked it. Here's his subject. 127 00:06:12,945 --> 00:06:15,815 KT: This is the title of the email. Should I pay 128 00:06:15,815 --> 00:06:18,584 KT: off my annoying student loan? 129 00:06:19,299 --> 00:06:20,410 Suze: Well, there you go. The 130 00:06:20,410 --> 00:06:22,570 Suze: answer is yes. 131 00:06:24,049 --> 00:06:27,200 KT: But should I read it to everyone? So Russell has... 132 00:06:27,200 --> 00:06:28,160 Suze: That's your job. 133 00:06:28,359 --> 00:06:30,808 KT: All right, so, so I, when I read that, I 134 00:06:30,809 --> 00:06:33,329 KT: knew that Suze and I both would say yes is 135 00:06:33,329 --> 00:06:37,609 KT: the answer. I have $3600 remaining in student loan debt, 136 00:06:37,619 --> 00:06:40,519 KT: and I'm so tired of paying it monthly. 137 00:06:41,085 --> 00:06:44,825 KT: I graduated in 2012. This student loan has been on 138 00:06:44,825 --> 00:06:48,246 KT: been on my back. He wrote, been on my back 139 00:06:48,246 --> 00:06:50,996 KT: for 13 years. I'm so tired of dealing with it. 140 00:06:51,286 --> 00:06:53,985 KT: So he said, then he gives me a little details, 141 00:06:54,045 --> 00:06:56,005 KT: and then he said, Should I suck it up and 142 00:06:56,005 --> 00:06:59,395 KT: pay off the student loan out of my savings or 143 00:06:59,966 --> 00:07:02,515 KT: continue to pay that annoying monthly payment 144 00:07:02,682 --> 00:07:03,522 KT: plus some. 145 00:07:03,601 --> 00:07:04,390 Suze: Give him the answer. 146 00:07:05,282 --> 00:07:09,002 KT: So yes, pay it off and forget it. Set it 147 00:07:09,002 --> 00:07:12,481 KT: and forget it, Russell. You're done. That's it. You're done. 148 00:07:12,721 --> 00:07:13,432 KT: School is out. 149 00:07:13,432 --> 00:07:16,802 Suze: No, student loan debt is over. 150 00:07:17,761 --> 00:07:18,221 Suze: All right. 151 00:07:18,522 --> 00:07:19,562 KT: All right, ready? 152 00:07:19,622 --> 00:07:22,462 Suze: I told you she was very rambunctious this morning. 153 00:07:22,721 --> 00:07:24,041 KT: So this is from Jason. 154 00:07:24,480 --> 00:07:27,540 KT: And Jason said, hi Suze and KT. I haven't listened 155 00:07:27,540 --> 00:07:29,420 KT: in a few weeks, so I'm not sure what... 156 00:07:29,420 --> 00:07:30,529 Suze: What the heck is the matter with you? 157 00:07:30,779 --> 00:07:32,429 KT: I don't know.. Where you been Jason? 158 00:07:32,429 --> 00:07:32,679 Suze: Where have you been, Jason. 159 00:07:35,980 --> 00:07:38,369 KT: Not sure what's new with you both, but I certainly 160 00:07:38,369 --> 00:07:40,399 KT: hope you're as well as can be. 161 00:07:40,519 --> 00:07:41,970 Suze: Well, wait. Is there anything new with us? 162 00:07:42,730 --> 00:07:45,010 Suze: Let's think. I don't know. I don't, I'm not saying 163 00:07:45,010 --> 00:07:47,299 Suze: there is, but is there anything new with us in 164 00:07:47,299 --> 00:07:48,600 Suze: the past two weeks? 165 00:07:48,790 --> 00:07:50,359 KT: Yeah, we've been so happy. 166 00:07:50,649 --> 00:07:51,959 Suze: I turned 74. 167 00:07:52,290 --> 00:07:54,829 KT: Yeah, but we're just real happy on the island. 168 00:07:54,929 --> 00:07:56,558 Suze: But we're always happy. That's not new. 169 00:07:56,558 --> 00:07:56,730 KT: Um... 170 00:07:58,589 --> 00:08:00,739 Suze: So no, nothing's new with us. You haven't missed anything. 171 00:08:00,739 --> 00:08:03,929 KT: You haven't missed anything except you've been missing this podcast, 172 00:08:04,019 --> 00:08:07,859 KT: which has been great, Jason. So he said, and he's 173 00:08:07,859 --> 00:08:11,779 KT: asking this question. Suze, are you still a fan of 174 00:08:11,779 --> 00:08:13,619 KT: dental savings plans? 175 00:08:13,779 --> 00:08:16,820 Suze: And the answer to that, KT is you bet we 176 00:08:17,970 --> 00:08:20,600 Suze: are and again for those of you who don't know. 177 00:08:20,929 --> 00:08:25,390 Suze: A dental savings plan can be gotten through a company 178 00:08:25,390 --> 00:08:30,640 Suze: by the name of Dental Plans.com, and a dental savings 179 00:08:30,640 --> 00:08:36,000 Suze: plan is issued by insurance companies, and if you have 180 00:08:36,000 --> 00:08:37,840 Suze: one or if you get one. 181 00:08:38,340 --> 00:08:41,179 Suze: Normally you can get one for 150 a year, maybe 182 00:08:41,179 --> 00:08:44,659 Suze: $200 a year for your entire family. You can get 183 00:08:44,659 --> 00:08:50,140 Suze: anywhere from 10 to 60% off dental procedures. KT and 184 00:08:50,140 --> 00:08:54,619 Suze: I both have one, and we save hundreds and hundreds 185 00:08:54,619 --> 00:09:00,340 Suze: of dollars every single year on our dental procedures. So 186 00:09:00,340 --> 00:09:02,500 Suze: go to dental plans.com. 187 00:09:02,830 --> 00:09:06,409 Suze: And check it out and see, and I have a 188 00:09:06,409 --> 00:09:09,599 Suze: feeling if you really want to be smart with your money, 189 00:09:09,729 --> 00:09:14,250 Suze: the Suze way, get yourself a dental savings plan. All right, KT. 190 00:09:14,900 --> 00:09:19,169 KT: So this is from Lily, and I don't know the answer, but... 191 00:09:19,169 --> 00:09:20,049 Suze: Oh really? 192 00:09:20,090 --> 00:09:20,830 KT: Wait, wait, wait... 193 00:09:21,130 --> 00:09:21,969 Suze: Does that surprise you? 194 00:09:21,969 --> 00:09:23,880 KT: It's about a Roth, everybody. 195 00:09:24,369 --> 00:09:27,369 Suze: I just want to tell you all, right? So KT 196 00:09:27,369 --> 00:09:30,690 Suze: and I spent the weekend, actually I spent the weekend 197 00:09:30,690 --> 00:09:31,330 Suze: watching 198 00:09:31,869 --> 00:09:33,809 Suze: the finals of the... 199 00:09:33,809 --> 00:09:35,859 KT: Paris Open tennis 200 00:09:35,859 --> 00:09:40,950 Suze: Great tennis. KT decides to join me. Oh my God, 201 00:09:41,239 --> 00:09:41,839 KT: That's not 202 00:09:41,840 --> 00:09:42,349 KT: nice. 203 00:09:42,479 --> 00:09:42,880 Suze: Oh my God. 204 00:09:42,880 --> 00:09:46,580 KT: I don't play tennis. I'm not a big sport, jock. 205 00:09:46,599 --> 00:09:47,630 KT: I don't know... 206 00:09:48,330 --> 00:09:52,369 KT: ... really all of the nuances I've never seen the 207 00:09:52,369 --> 00:09:54,390 KT: ad you have to, you get 208 00:09:54,390 --> 00:09:55,849 KT: all these 209 00:09:55,849 --> 00:09:56,729 KT: points 210 00:09:56,729 --> 00:09:57,530 KT: are confused... 211 00:09:57,530 --> 00:09:59,130 Suze: If any of you are with KT and you're going 212 00:09:59,130 --> 00:10:00,559 Suze: to go to a tennis game, don't. 213 00:10:00,960 --> 00:10:04,650 KT: Send me to go get the drinks. Alright, ready. So 214 00:10:04,650 --> 00:10:10,650 KT: Lily asks my retired friends, ages 68 to 70, say 215 00:10:10,650 --> 00:10:14,650 KT: I'm a fool for converting my traditional IRAs to a 216 00:10:14,650 --> 00:10:16,799 KT: Roth and say, 217 00:10:17,106 --> 00:10:22,866 KT: let our adult kids pay the taxes. I'm 77 years 218 00:10:22,866 --> 00:10:26,635 KT: old and I've 4 kids, 27 to 31. We all 219 00:10:26,635 --> 00:10:29,465 KT: had read that we'd been in a much lower tax 220 00:10:29,466 --> 00:10:33,575 KT: bracket when we were old and retired, false. She said. 221 00:10:33,585 --> 00:10:36,145 KT: We're in a much higher tax bracket than when we 222 00:10:36,145 --> 00:10:36,776 KT: were younger. 223 00:10:36,945 --> 00:10:39,505 Suze: Wait, I have to say something. The most important part 224 00:10:39,505 --> 00:10:43,505 Suze: of this email is exactly what you've just read. The 225 00:10:43,505 --> 00:10:45,726 Suze: reason that I'm telling all of you that 226 00:10:45,771 --> 00:10:48,242 Suze: you should do a roth roth roth roth. I don't 227 00:10:48,242 --> 00:10:52,041 Suze: care what tax bracket you're in today. If you buy 228 00:10:52,041 --> 00:10:54,692 Suze: this myth that when you get older, you're going to 229 00:10:54,692 --> 00:10:57,872 Suze: be in a lower tax bracket, I've got a bridge 230 00:10:57,872 --> 00:11:01,242 Suze: to sell you, especially given the deficits and the debt 231 00:11:01,242 --> 00:11:04,080 Suze: that we have. So listen to what she just said. 232 00:11:04,160 --> 00:11:04,442 Suze: Go on, KT. 233 00:11:04,562 --> 00:11:08,881 KT: Suze, in the past couple of years, I converted 300,000 234 00:11:08,881 --> 00:11:12,802 KT: in traditional IRAs to a Roth after listening to your 235 00:11:12,802 --> 00:11:14,471 KT: show and reading your book. 236 00:11:15,020 --> 00:11:17,010 Suze: And does she say how much she has remaining? 237 00:11:17,119 --> 00:11:21,799 KT: Yeah, she's, so here's her dilemma. She has 500,000 remaining 238 00:11:22,090 --> 00:11:23,950 KT: in traditional IRAs. 239 00:11:24,049 --> 00:11:24,890 Suze: So obviously she's... 240 00:11:24,890 --> 00:11:25,520 KT: She's 77. 241 00:11:27,130 --> 00:11:29,569 Suze: So Lily, listen to me. I have to tell you, 242 00:11:29,570 --> 00:11:30,609 Suze: your friends are right 243 00:11:31,580 --> 00:11:36,339 Suze: on this, and the reason is that you're already in 244 00:11:36,340 --> 00:11:40,949 Suze: a high tax bracket at 30%. If you convert, you're 245 00:11:40,950 --> 00:11:44,500 Suze: going to go to a higher income tax bracket, number one, 246 00:11:44,580 --> 00:11:46,799 Suze: but you're going to lose out on the growth of 247 00:11:46,799 --> 00:11:47,619 Suze: that money. 248 00:11:47,979 --> 00:11:50,789 Suze: The only people that will not benefit from you converting 249 00:11:50,789 --> 00:11:53,989 Suze: now will be your kids because they're going to have 250 00:11:53,989 --> 00:11:57,549 Suze: to pay income tax on it, but KT just gave 251 00:11:57,549 --> 00:12:00,189 Suze: me your email and it says that your kids are 252 00:12:00,190 --> 00:12:04,069 Suze: in the 12 to 22% tax bracket, so I would 253 00:12:04,070 --> 00:12:09,059 Suze: not be at your age converting at this point in time. 254 00:12:09,229 --> 00:12:11,669 Suze: I would take out what you need to spend. 255 00:12:12,159 --> 00:12:14,760 Suze: What you might want to do is if you have 256 00:12:14,760 --> 00:12:19,640 Suze: income from other investments or whatever, just save that and 257 00:12:19,640 --> 00:12:22,679 Suze: live off the money that you do take out of 258 00:12:22,679 --> 00:12:27,280 Suze: your traditional IRA and spend that, but I would not 259 00:12:27,280 --> 00:12:30,882 Suze: be converting large amounts on any level to a Roth 260 00:12:30,882 --> 00:12:32,679 Suze: at your age. All right, KT. 261 00:12:32,890 --> 00:12:35,729 KT: Suze, this next question's from Luis, but ready? 262 00:12:35,969 --> 00:12:36,719 Suze: Did it already make you laugh? 263 00:12:36,900 --> 00:12:40,409 KT: Yeah, it does because he's he wrote this. Hello, Suze 264 00:12:40,409 --> 00:12:42,510 KT: and the amazing KT. 265 00:12:42,919 --> 00:12:44,770 Suze: The only reason she picked it. Go on. 266 00:12:45,340 --> 00:12:47,819 KT: Wait a minute. Listen to the first sentence, everyone tell 267 00:12:47,820 --> 00:12:51,739 KT: me how you would feel. KT, like you, we don't 268 00:12:51,739 --> 00:12:54,330 KT: always get Suze's questions right. 269 00:12:55,010 --> 00:12:59,479 KT: But that's OK. We still love your perspective on the show. So, 270 00:12:59,989 --> 00:13:03,830 KT: so thanks, Luis. That's a compliment, I guess. So Luis... 271 00:13:03,909 --> 00:13:04,750 Suze: Just don't watch tennis 272 00:13:04,750 --> 00:13:05,070 Suze: with her. Go on. 273 00:13:05,429 --> 00:13:05,468 KT: No, 274 00:13:05,710 --> 00:13:07,909 KT: don't watch tennis with me. So, but I'm gonna go 275 00:13:07,909 --> 00:13:10,630 KT: to watch tennis next year in Paris. 276 00:13:10,755 --> 00:13:11,575 Suze: We decided for... 277 00:13:11,575 --> 00:13:13,905 KT: I am taking Suze for her birthday. 278 00:13:14,145 --> 00:13:18,655 Suze: We're going to the Paris Open because I love tennis. 279 00:13:18,765 --> 00:13:19,445 Suze: All right, go on. 280 00:13:19,664 --> 00:13:24,444 KT: So I'm writing today to ask about financial adviser management 281 00:13:24,445 --> 00:13:26,614 KT: fees on IRA accounts. 282 00:13:27,039 --> 00:13:28,770 KT: And it's called AUM, 283 00:13:28,840 --> 00:13:30,059 Suze: Assets Under Management. 284 00:13:30,229 --> 00:13:34,349 KT: OK, so my past two financial advising companies allowed me 285 00:13:34,349 --> 00:13:38,229 KT: to pay all management fees for all of the accounts 286 00:13:38,229 --> 00:13:42,030 KT: they were managing Roth, traditional brokerage, so on and so 287 00:13:42,030 --> 00:13:44,829 KT: on from a non-retirement taxable 288 00:13:44,955 --> 00:13:46,094 KT: Brokerage account. 289 00:13:46,145 --> 00:13:46,694 KT: Of course. How else would you pay it? 290 00:13:46,905 --> 00:13:51,304 KT: Well, listen to this. So we're looking at moving to 291 00:13:51,304 --> 00:13:54,103 KT: a new financial planning company. When we told them we 292 00:13:54,104 --> 00:13:58,625 KT: wanted to pay all management fees from a non-retirement taxable 293 00:13:58,625 --> 00:14:02,674 KT: brokerage account, they said it wasn't legal to do so. 294 00:14:03,059 --> 00:14:06,450 KT: And that the fees associated with each account needed to 295 00:14:06,450 --> 00:14:09,609 KT: be paid out of each respective account. 296 00:14:09,729 --> 00:14:13,809 Suze: Luis, the answer is very simple here. Get yourself a 297 00:14:13,809 --> 00:14:17,130 Suze: new financial firm. If they're wanting to take money from 298 00:14:17,130 --> 00:14:22,919 Suze: a retirement account to pay your fees, are you crazy? No. 299 00:14:23,169 --> 00:14:27,010 Suze: Outside of retirement accounts is how it's done properly. Go on. 300 00:14:28,169 --> 00:14:29,099 Suze: Ooh, she's reading. She's very serious. 301 00:14:30,369 --> 00:14:34,280 KT: Because this is um kind of... 302 00:14:35,969 --> 00:14:38,049 KT: All right, so ready, everybody. 303 00:14:38,049 --> 00:14:38,409 Suze: You picked it. 304 00:14:38,409 --> 00:14:42,289 KT: Sally, I know, but Sally wishes Suze happy birthday, but 305 00:14:42,289 --> 00:14:43,640 KT: listen to the email. 306 00:14:44,869 --> 00:14:48,179 KT: This is my question. With my husband being on the 307 00:14:48,179 --> 00:14:51,299 KT: fringe of death a number of times, I mean, that's 308 00:14:51,299 --> 00:14:54,140 KT: why I'm reading this thinking, is this, I don't want 309 00:14:54,140 --> 00:14:57,619 KT: to make light of this, but with my husband being 310 00:14:57,619 --> 00:15:01,059 KT: on the fringe of death a number of times, we 311 00:15:01,059 --> 00:15:05,539 KT: decided to re-deed our rental properties in his name to 312 00:15:05,539 --> 00:15:07,299 KT: avoid large capital gains. 313 00:15:07,380 --> 00:15:08,510 Suze: Smart move, yes. 314 00:15:08,580 --> 00:15:13,140 KT: But, however, I'm just realizing that if he dies first. 315 00:15:13,880 --> 00:15:15,960 Suze: Which you hope he does. That's why you did it. 316 00:15:15,960 --> 00:15:20,539 KT: This opens me up to probate with these properties, correct? 317 00:15:20,789 --> 00:15:23,760 Suze: Only if she doesn't have a living revocable trust. 318 00:15:23,830 --> 00:15:26,630 KT: Well, wait, I keep reading about joint tenancy with right 319 00:15:26,630 --> 00:15:27,070 KT: of survival. 320 00:15:27,150 --> 00:15:28,275 Suze: That I won't do it for her. 321 00:15:28,275 --> 00:15:31,869 KT: But I'm lost. Did we make a mistake? Oh, I'm 322 00:15:31,869 --> 00:15:32,929 KT: glad that you're going to fix this for her. 323 00:15:32,929 --> 00:15:36,030 Suze: So you did not make a mistake yet. 324 00:15:36,440 --> 00:15:38,719 Suze: What you want to do is if you put the 325 00:15:38,719 --> 00:15:43,280 Suze: property in joint tenancy with right a survivorship, then obviously 326 00:15:43,280 --> 00:15:46,719 Suze: it's in both of your names and you only get 327 00:15:46,719 --> 00:15:49,469 Suze: a step up in basis on his half. 328 00:15:50,409 --> 00:15:54,929 Suze: You put everything in his name cause obviously you bought 329 00:15:54,929 --> 00:15:57,530 Suze: all these properties and I see there's quite a few 330 00:15:57,530 --> 00:16:01,169 Suze: here like 4 or 5. You bought them all years 331 00:16:01,169 --> 00:16:05,250 Suze: ago at a very low cost basis if they're only 332 00:16:05,250 --> 00:16:10,309 Suze: in his name upon his death, it goes to you. 333 00:16:10,320 --> 00:16:13,210 Suze: You get a step up in basis on all of them. 334 00:16:13,640 --> 00:16:17,169 Suze: So let's say you paid $100,000 for all the properties, 335 00:16:17,380 --> 00:16:21,059 Suze: and now they're worth $3 million. If they're just in 336 00:16:21,059 --> 00:16:24,859 Suze: his name upon his death, your new cost basis will 337 00:16:24,859 --> 00:16:28,210 Suze: be $3 million. If you turn around and sell it, 338 00:16:28,340 --> 00:16:32,909 Suze: you don't owe any capital gains tax whatsoever. The key 339 00:16:32,909 --> 00:16:37,369 Suze: is it should be in his trust. You should have 340 00:16:37,369 --> 00:16:40,940 Suze: a living revocable trust, just his name. 341 00:16:41,809 --> 00:16:45,580 Suze: And the property should be held in trust, his trust, 342 00:16:45,830 --> 00:16:49,270 Suze: and you're the beneficiary. So for his benefit while he's 343 00:16:49,270 --> 00:16:54,099 Suze: alive upon his death, you're the successor beneficiary. You get 344 00:16:54,099 --> 00:16:56,340 Suze: all of those and get a step up in basis. 345 00:16:56,590 --> 00:16:59,869 Suze: A will will make it so you're probated. You don't 346 00:16:59,869 --> 00:17:02,750 Suze: want joint tenancy with the right of survivorship. So now 347 00:17:02,750 --> 00:17:06,430 Suze: just get yourself a living revocable trust which, by the way. 348 00:17:07,698 --> 00:17:15,187 Suze: By the end of today you can go to musthavedocs.com/birthday, 349 00:17:15,489 --> 00:17:20,288 Suze: and you can get the must-have docs for $74 till 350 00:17:20,288 --> 00:17:26,649 Suze: the end of the day Pacific Time, so midnight Pacific time. 351 00:17:27,079 --> 00:17:30,630 Suze: You can do that. So just go and get those 352 00:17:30,630 --> 00:17:35,560 Suze: $74 for $2500 worth of state of the art documents, 353 00:17:35,599 --> 00:17:37,319 Suze: and you can do it right in the luxury of 354 00:17:37,319 --> 00:17:40,560 Suze: your own home. Good in all 50 states. And here's 355 00:17:40,560 --> 00:17:43,280 Suze: the thing, I just want to answer this one question 356 00:17:43,280 --> 00:17:45,880 Suze: because a lot of you have been writing it. You 357 00:17:45,880 --> 00:17:49,280 Suze: hear me say that if you get these documents you 358 00:17:49,280 --> 00:17:52,229 Suze: can share it with as many people as you want, 359 00:17:52,520 --> 00:17:53,599 Suze: and you can. 360 00:17:53,800 --> 00:17:56,270 Suze: But you're afraid. Does that mean that they can see 361 00:17:56,270 --> 00:18:00,188 Suze: your documents? Do they get to know everything that you've done? No, 362 00:18:00,310 --> 00:18:04,780 Suze: you just give them the activation code. They activate it, 363 00:18:05,069 --> 00:18:08,629 Suze: and then they create their own account, their own password, 364 00:18:08,750 --> 00:18:12,069 Suze: their own name, and everything they do in it. Nobody 365 00:18:12,069 --> 00:18:14,880 Suze: can see what they do. Nobody saw what you did. 366 00:18:15,229 --> 00:18:17,430 Suze: So the reason that I've done that is that it 367 00:18:17,430 --> 00:18:18,949 Suze: only takes one of you. 368 00:18:19,250 --> 00:18:21,160 Suze: And then you can share it with your mother or 369 00:18:21,160 --> 00:18:24,589 Suze: your brother or your sister or your children, so all 370 00:18:24,589 --> 00:18:26,109 Suze: of you can be protected. 371 00:18:26,199 --> 00:18:27,770 KT: Get it right away, Sally, today. 372 00:18:28,040 --> 00:18:33,280 Suze: Today you got only till end of today, Pacific time. All right. 373 00:18:33,280 --> 00:18:36,410 KT: All right. Next question is from Kelly. She said, Hi, 374 00:18:36,520 --> 00:18:40,479 KT: Suze and KT, and she said, I picked this because 375 00:18:40,479 --> 00:18:44,040 KT: KT's favorite topic, the Roth. She writes, The Roth. 376 00:18:44,040 --> 00:18:46,089 Suze: You have quite the reputation, my dear. 377 00:18:46,640 --> 00:18:47,359 KT: I do. 378 00:18:48,000 --> 00:18:52,359 KT: So the question is, I have $300,000 in a traditional 379 00:18:52,359 --> 00:18:59,280 KT: IRA and $100,000 in a Roth IRA. I'm currently contributing 14% 380 00:18:59,280 --> 00:19:02,469 KT: of my income to the Roth. Would it be better 381 00:19:02,469 --> 00:19:06,810 KT: for me to continue contributing 14% to the Roth or 382 00:19:07,160 --> 00:19:11,229 KT: contribute less or nothing to the Roth and instead 383 00:19:11,314 --> 00:19:17,175 KT: do a traditional IRA conversion. I currently earn $69,000 a year. 384 00:19:17,385 --> 00:19:21,584 KT: I'm 54 years old and I am single. What is 385 00:19:21,584 --> 00:19:24,224 KT: in my best interest long term? This is from Kelly. 386 00:19:24,224 --> 00:19:27,744 Suze: Yeah, Kelly, listen to me very quickly. Why don't you 387 00:19:27,744 --> 00:19:31,665 Suze: do both? Do not stop contributing to the Roth by 388 00:19:31,665 --> 00:19:34,665 Suze: any means. Just don't do it. 389 00:19:35,119 --> 00:19:38,560 Suze: Right, because you could only put so much into a 390 00:19:38,560 --> 00:19:40,839 Suze: Roth every year and you would be missing out on 391 00:19:40,839 --> 00:19:45,280 Suze: those contributions. You can convert any time you want. I 392 00:19:45,280 --> 00:19:48,880 Suze: would be contributing the Roth and I would be converting 393 00:19:48,880 --> 00:19:51,919 Suze: little by little from a traditional to a Roth. All right, OK. 394 00:19:53,160 --> 00:19:55,239 KT: Suze, my last question is from Judy. 395 00:19:55,656 --> 00:19:57,225 Suze: I have to tell you, I think she says this 396 00:19:57,225 --> 00:20:00,385 Suze: is her last question because this is a two page 397 00:20:00,895 --> 00:20:04,416 Suze: email she's about to read. So what the heck? 398 00:20:05,176 --> 00:20:07,504 KT: I'll tell you, I think a lot of you listening 399 00:20:07,505 --> 00:20:10,916 KT: have either gone through this or know someone that absolutely 400 00:20:10,916 --> 00:20:15,205 KT: has very serious so my name is Judy. I'm 31 401 00:20:15,205 --> 00:20:15,666 KT: years old. 402 00:20:15,741 --> 00:20:18,732 KT: I've been listening to the Women and Money podcast since 403 00:20:18,732 --> 00:20:23,491 KT: July of 2024. Good, you have an anniversary coming up, Judy. 404 00:20:24,131 --> 00:20:27,640 KT: In March of '24, I found out I was pregnant. 405 00:20:27,932 --> 00:20:31,232 KT: My husband and I were absolutely thrilled by the news, 406 00:20:31,291 --> 00:20:36,081 KT: and we welcomed our son in November 2024. 407 00:20:36,550 --> 00:20:41,800 KT: Now ready, listen up, everyone. Shortly after finding out about 408 00:20:41,800 --> 00:20:45,800 KT: my pregnancy, my husband informed me that he was in 409 00:20:45,800 --> 00:20:52,160 KT: credit card debt to the tune of about $45,000. We 410 00:20:52,160 --> 00:20:55,520 KT: have a joint savings account through my bank, but we 411 00:20:55,520 --> 00:20:59,839 KT: keep most of our finances separate and split household bills. 412 00:21:00,040 --> 00:21:01,959 KT: My husband pays the mortgage. I 413 00:21:02,012 --> 00:21:06,792 KT: pay utilities, cable, so on and so forth. Unfortunately, ready? 414 00:21:07,203 --> 00:21:10,802 KT: After he told me about the debt, we decided to 415 00:21:10,802 --> 00:21:15,113 KT: take out a HELOC to cover it. Big mistake, right? 416 00:21:15,723 --> 00:21:21,363 KT: Our loan is for $45,000 at a 10% interest. I 417 00:21:21,363 --> 00:21:24,402 KT: wasn't listening to the podcast at the time, and I 418 00:21:24,402 --> 00:21:27,412 KT: now know it isn't how I would have handled the situation. 419 00:21:27,576 --> 00:21:29,086 Suze: But that's all right. 420 00:21:29,286 --> 00:21:32,484 KT: I do check in periodically with my husband to make 421 00:21:32,484 --> 00:21:36,244 KT: sure he's making the monthly payments, but Suze, even as 422 00:21:36,244 --> 00:21:39,645 KT: I'm typing this email, I know I need to be 423 00:21:39,645 --> 00:21:44,244 KT: more involved. He makes about 150,000 a year. I make 424 00:21:44,244 --> 00:21:51,525 KT: about 63,000. Ready, everyone, let's introduce suspect number two, my 425 00:21:51,526 --> 00:21:52,965 KT: husband's mother. 426 00:21:53,339 --> 00:21:55,219 KT: This is the part that's a little tricky. 427 00:21:55,369 --> 00:21:57,280 Suze: What did, what bad habit did he learn from 428 00:21:57,280 --> 00:21:57,910 Suze: his mother? 429 00:21:58,150 --> 00:22:01,649 KT: She is in the process of selling her home. She's 430 00:22:01,650 --> 00:22:05,959 KT: asked my husband to co-sign on an apartment lease for her. 431 00:22:06,209 --> 00:22:10,010 KT: I know this is one of Suze's top 3 red flags, 432 00:22:10,209 --> 00:22:13,849 KT: so her credit score is less than 600, but I 433 00:22:13,849 --> 00:22:17,250 KT: don't know exactly what it is. I do. I do 434 00:22:17,250 --> 00:22:21,290 KT: not want my husband to cosign. I have expressed this 435 00:22:21,290 --> 00:22:21,810 KT: to him. 436 00:22:22,290 --> 00:22:26,030 KT: There are a lot of unknowns surrounding this situation. She 437 00:22:26,030 --> 00:22:29,449 KT: currently lives in a home she cannot afford. Her mortgage 438 00:22:29,449 --> 00:22:36,380 KT: is 2200 with a 250 HOA fee. Yeah, wow. Her 439 00:22:36,380 --> 00:22:39,250 KT: rent in the new apartment will be 2000. 440 00:22:39,390 --> 00:22:42,500 KT: In my mind, I don't feel like that is enough 441 00:22:42,500 --> 00:22:46,300 KT: of a difference to feel comfortable cosigning for. I looked 442 00:22:46,300 --> 00:22:49,650 KT: at our county's property tax records and saw that she 443 00:22:49,650 --> 00:22:54,540 KT: had refinanced her current home at least twice since moving 444 00:22:54,540 --> 00:22:56,500 KT: into that home in 2020. 445 00:22:56,989 --> 00:23:02,449 KT: She originally bought it for 225,000 and in 2024 refinanced 446 00:23:02,449 --> 00:23:08,290 KT: with a new mortgage for 279,000. My husband is an 447 00:23:08,290 --> 00:23:10,968 KT: only child and his dad died from cancer 448 00:23:11,420 --> 00:23:15,300 KT: in 2015, he feels like he needs to co-sign his 449 00:23:15,300 --> 00:23:16,819 KT: mom to help her. 450 00:23:16,939 --> 00:23:17,420 Suze: Of course he does. They are codependent. 451 00:23:19,180 --> 00:23:23,458 KT: Listening to the podcast. I've... listen to what what Judy's doing, everyone... 452 00:23:23,500 --> 00:23:26,250 KT: and you tell me if this marriage is a little shaky. 453 00:23:26,619 --> 00:23:30,619 KT: Since listening to the podcast, I've opened a savings account 454 00:23:30,619 --> 00:23:33,819 KT: through Alliant. I am more than halfway to having a 455 00:23:33,819 --> 00:23:35,660 KT: 12 month emergency fund. 456 00:23:35,989 --> 00:23:40,630 KT: I also have a $2000 fund in a regular savings 457 00:23:40,630 --> 00:23:43,939 KT: account in case I need it for home repairs. I 458 00:23:43,939 --> 00:23:48,660 KT: opened a 529 for my son that has almost $1000 459 00:23:48,660 --> 00:23:52,219 KT: in it. I contribute to a retirement plan through my 460 00:23:52,219 --> 00:23:55,780 KT: job and also to a pension since I work for 461 00:23:55,780 --> 00:23:59,339 KT: the government. I'm trying to do everything in my power 462 00:23:59,339 --> 00:24:01,170 KT: to be financially secure. 463 00:24:01,640 --> 00:24:05,819 KT: She missed the word alone. I do not want to 464 00:24:05,819 --> 00:24:10,339 KT: divorce my husband, but I need help. Any advice would 465 00:24:10,339 --> 00:24:13,500 KT: be greatly appreciate appreciated. You know what makes me sad? 466 00:24:13,619 --> 00:24:17,379 KT: They have a brand new baby boy. He's not being 467 00:24:17,380 --> 00:24:20,689 KT: respectful or honest. He's not standing in his truth with 468 00:24:20,689 --> 00:24:24,250 KT: his wife, Susie. Well, what should, what should Judy do? 469 00:24:24,420 --> 00:24:28,660 Suze: Judy. So first of all, you're doing great on your own. 470 00:24:29,589 --> 00:24:33,520 Suze: And you obviously, I mean, what struck me about this email, 471 00:24:33,609 --> 00:24:36,849 Suze: my love, is that did I hear it right that 472 00:24:36,849 --> 00:24:43,300 Suze: your husband makes like $150,000 a year and you make $63,000? 473 00:24:44,170 --> 00:24:48,010 Suze: So did you ever ask him what did he spend 474 00:24:48,010 --> 00:24:53,920 Suze: that $45,000 on? Did he ever come clean with that? 475 00:24:54,250 --> 00:24:57,849 Suze: Because it seems to me when somebody's making three times 476 00:24:57,849 --> 00:24:59,760 Suze: what you're making essentially. 477 00:25:00,280 --> 00:25:03,599 Suze: What is he doing? Does he have a gambling problem? 478 00:25:03,680 --> 00:25:06,639 Suze: I'm very serious about this. Does he have some other 479 00:25:06,640 --> 00:25:09,709 Suze: kind of problem, or is he just like somebody who 480 00:25:09,709 --> 00:25:12,319 Suze: wants to show off and he takes his friends out 481 00:25:12,319 --> 00:25:15,359 Suze: to drinks and he pays for everything, and he pretends 482 00:25:15,359 --> 00:25:19,199 Suze: like he has more money than he does? But he 483 00:25:19,199 --> 00:25:23,520 Suze: is not somebody that is responsible with money and just 484 00:25:23,520 --> 00:25:26,239 Suze: because you did a home equity line of credit. 485 00:25:26,459 --> 00:25:30,400 Suze: And he's making the payments on it. Uh, uh, what 486 00:25:30,400 --> 00:25:32,849 Suze: I would be doing if I were you, cause you 487 00:25:32,849 --> 00:25:36,680 Suze: said that you know you need to be more financially responsible, 488 00:25:36,959 --> 00:25:41,479 Suze: is he is to give you the money every single month, 489 00:25:41,890 --> 00:25:44,489 Suze: and you are going to make the payments on the 490 00:25:44,489 --> 00:25:47,919 Suze: home equity line of credit. And if he says why, 491 00:25:48,170 --> 00:25:49,880 Suze: tell him cause Suze doesn't trust you. 492 00:25:50,670 --> 00:25:53,829 Suze: Just say it that way cause I don't trust him 493 00:25:54,069 --> 00:25:57,709 Suze: to not fall into bad habits again. I want you 494 00:25:57,709 --> 00:26:02,300 Suze: to check both credit reports. Is he up to date 495 00:26:02,300 --> 00:26:05,619 Suze: or is he not? I want you to call the 496 00:26:05,619 --> 00:26:08,859 Suze: company that you have the home equity line of credit with, 497 00:26:09,109 --> 00:26:12,859 Suze: and I want you to ask them if, in fact, 498 00:26:13,229 --> 00:26:16,709 Suze: has he been on time. Have your payments, cause they're 499 00:26:16,709 --> 00:26:19,219 Suze: not just his, they're your payments as well. 500 00:26:19,510 --> 00:26:23,369 Suze: Have your payments been on time every single month, or 501 00:26:23,369 --> 00:26:27,319 Suze: have there been late charges with those payments? So let's 502 00:26:27,319 --> 00:26:30,300 Suze: get you real with what's happening with that home equity 503 00:26:30,300 --> 00:26:34,020 Suze: line of credit number one. As soon as you know 504 00:26:34,020 --> 00:26:36,489 Suze: everything is up to date, he is to pay you, 505 00:26:36,520 --> 00:26:40,810 Suze: and you are in charge of making those payments. Next, 506 00:26:40,979 --> 00:26:43,099 Suze: his mother. I'm sorry. 507 00:26:43,579 --> 00:26:46,410 Suze: I'm sorry that she lost her husband and he lost 508 00:26:46,410 --> 00:26:51,280 Suze: his father maybe 10 years ago or whatever it was now. However, 509 00:26:51,650 --> 00:26:55,689 Suze: that is the past. Guilt, shame, and anger are the 510 00:26:55,689 --> 00:27:00,180 Suze: three internal obstacles to wealth. Guilt is not enough 511 00:27:00,650 --> 00:27:04,880 Suze: to have his mother not only get herself into financial 512 00:27:04,880 --> 00:27:09,198 Suze: trouble again but to get you and your husband into 513 00:27:09,199 --> 00:27:11,839 Suze: financial trouble again cause you are not going to be 514 00:27:11,839 --> 00:27:16,160 Suze: able to afford an extra $2000 a month to pay 515 00:27:16,160 --> 00:27:19,469 Suze: for her apartment and then he won't have the nerve 516 00:27:19,469 --> 00:27:21,479 Suze: to be able to say, Mom, you've got to move 517 00:27:21,479 --> 00:27:23,560 Suze: out and then she's going to be living with you. 518 00:27:23,750 --> 00:27:26,589 Suze: I was going to say that. What can you do? 519 00:27:26,780 --> 00:27:29,520 Suze: She is to stay in the home that she has. 520 00:27:30,170 --> 00:27:35,250 Suze: Now the difference between what she's paying right now $2200 521 00:27:35,250 --> 00:27:40,889 Suze: a month plus $250 for homeowners association is just $450 522 00:27:40,890 --> 00:27:44,079 Suze: more a month than what her apartment would cost her 523 00:27:44,079 --> 00:27:49,649 Suze: for $2000 a month. Your husband, if he wants, should 524 00:27:49,650 --> 00:27:54,689 Suze: pay the difference between what she would pay renting. 525 00:27:55,380 --> 00:28:00,000 Suze: And what she's paying now, so that's only $450 a month. 526 00:28:00,250 --> 00:28:03,609 Suze: If he wants to give his mother $450 a month 527 00:28:03,609 --> 00:28:07,050 Suze: to be able to stay in her home, fine, but 528 00:28:07,050 --> 00:28:11,449 Suze: something is going on with his mother as well. We 529 00:28:11,449 --> 00:28:15,688 Suze: have a husband and we have a mother-in-law that spends 530 00:28:15,689 --> 00:28:19,479 Suze: more money than they have coming in. They are both 531 00:28:19,479 --> 00:28:21,609 Suze: living a financial lie. 532 00:28:22,219 --> 00:28:25,839 Suze: And I say that with the utmost of love to you. 533 00:28:26,170 --> 00:28:29,569 Suze: You have to be the strong one because your husband 534 00:28:29,569 --> 00:28:33,760 Suze: is not, your mother-in-law is not. It is so crazy 535 00:28:33,969 --> 00:28:37,500 Suze: that she has blown the equity in her home on what? 536 00:28:38,140 --> 00:28:41,130 Suze: So either you all need to sit down, the three 537 00:28:41,130 --> 00:28:46,170 Suze: of you, and have an honest financial conversation. Your mother-in-law, 538 00:28:46,329 --> 00:28:50,040 Suze: if she gets in financial trouble, you and your husband 539 00:28:50,209 --> 00:28:52,609 Suze: do not have the money to save her, and she 540 00:28:52,609 --> 00:28:56,839 Suze: is getting older and older, and her expenses will be increasing. 541 00:28:57,369 --> 00:29:00,089 Suze: So she is to stay in a home now that 542 00:29:00,089 --> 00:29:03,290 Suze: she owns, build up equity in that home. 543 00:29:04,119 --> 00:29:08,209 Suze: And just be honest, but no, he is not going 544 00:29:08,209 --> 00:29:11,219 Suze: to co-sign that loan. You are going to have an 545 00:29:11,219 --> 00:29:14,420 Suze: honest talk with both of them. You are going to 546 00:29:14,420 --> 00:29:17,260 Suze: pay for the home equity line of credit. You're going 547 00:29:17,260 --> 00:29:20,260 Suze: to check credit reports and you're going to stand on 548 00:29:20,260 --> 00:29:22,900 Suze: your own. And if your husband doesn't like it, then 549 00:29:22,900 --> 00:29:24,380 Suze: let him stand on his own. 550 00:29:25,180 --> 00:29:27,869 Suze: And he's gonna find out he's a lot better with 551 00:29:27,869 --> 00:29:29,619 Suze: you than without you. 552 00:29:30,780 --> 00:29:35,449 Suze: All right, Ms. Travis, that brings us to an end here, right? 553 00:29:35,609 --> 00:29:37,560 Suze: Guess guess who's coming home today? 554 00:29:37,890 --> 00:29:38,750 KT: Colo. 555 00:29:38,750 --> 00:29:42,060 Suze: Colo comes home in just a little bit. So we're 556 00:29:42,060 --> 00:29:44,969 Suze: going to sign off. He's been with his wife in 557 00:29:44,969 --> 00:29:48,290 Suze: Colombia and so I hope he's happy to come home 558 00:29:48,290 --> 00:29:50,459 Suze: to his two mamas, but 559 00:29:50,515 --> 00:29:53,814 Suze: anyway, there's only really one thing we want you to 560 00:29:53,814 --> 00:29:56,604 Suze: remember when it comes to your money and what is it, KT? 561 00:29:56,964 --> 00:29:59,854 KT: People first and money and things. 562 00:29:59,944 --> 00:30:05,584 Suze: And don't forget Suze School on Sunday. Let's see what 563 00:30:05,584 --> 00:30:09,055 Suze: I come up with. Until then, take care. Bye-bye.