1 00:00:45,709 --> 00:00:51,799 Suze: May 23rd, 2024. Welcome everybody to the Women and Money podcast. 2 00:00:51,810 --> 00:00:53,930 Suze: Don't make me laugh, KT 3 00:00:54,049 --> 00:00:55,799 KT: And everyone's smart enough to listen. 4 00:00:55,810 --> 00:00:56,400 Suze: This 5 00:00:56,409 --> 00:00:59,220 Suze: is the ask KT and 6 00:00:59,459 --> 00:01:00,349 KT: Suze, 7 00:01:00,360 --> 00:01:05,230 Suze: you got that pickup, right? Good KT. Anything addition. This 8 00:01:05,239 --> 00:01:10,209 Suze: is where you write in to ask Suze SUZE podcast 9 00:01:10,220 --> 00:01:11,599 Suze: at gmail.com. 10 00:01:11,980 --> 00:01:14,839 Suze: You ask a question. Can you please keep them short? 11 00:01:15,199 --> 00:01:20,010 Suze: Just short? All right. Don't give me your entire financial history. 12 00:01:20,019 --> 00:01:21,000 KT: I won't pick it. 13 00:01:21,010 --> 00:01:25,259 Suze: It won't happen. All right, peeps. Anyway. So this is 14 00:01:25,269 --> 00:01:27,399 Suze: where you can write in a question and if KT 15 00:01:27,410 --> 00:01:30,919 Suze: chooses it, it will be on this podcast and you 16 00:01:30,930 --> 00:01:35,000 Suze: never know when I will answer it directly. 17 00:01:35,339 --> 00:01:39,720 Suze: Obviously, we have recorded this before we left for Africa, 18 00:01:39,879 --> 00:01:43,260 Suze: but let's see on today. Where would we be? KT? 19 00:01:43,519 --> 00:01:46,179 KT: I think we're in Soweto and we're gonna try to 20 00:01:46,190 --> 00:01:50,019 KT: visit the Regina Mundi church where you spoke. How many 21 00:01:50,029 --> 00:01:51,099 KT: years ago was that? 22 00:01:51,339 --> 00:01:54,889 Suze: 2002, to 5,000 women. 23 00:01:54,980 --> 00:01:56,540 KT: I'm gonna cry when I walk in. 24 00:01:56,949 --> 00:02:03,279 Suze: It was the most incredible thing, everybody. 5,000 women came to hear me 25 00:02:03,290 --> 00:02:09,619 Suze: speak for four hours on financial freedom is your birthright. Extraordinary. 26 00:02:09,809 --> 00:02:12,850 Suze: And I just want Sophia and Travis and Barb and 27 00:02:12,860 --> 00:02:16,059 Suze: Don our little pod. I want them to see where 28 00:02:16,070 --> 00:02:17,389 Suze: their Aunt Suze 29 00:02:18,160 --> 00:02:22,639 Suze: in her own way, really made history in South Africa. Anyway. 30 00:02:22,869 --> 00:02:24,779 Suze: So I hope we're having a good time, don't you? 31 00:02:25,080 --> 00:02:26,309 KT: We will. 32 00:02:26,850 --> 00:02:28,179 Suze: All right. So 33 00:02:28,639 --> 00:02:30,559 Suze: shall we begin? Is there anything else we want to 34 00:02:30,570 --> 00:02:31,600 Suze: remind people of? 35 00:02:32,258 --> 00:02:36,429 KT: Yea, the quiz. Oh, my goodness. Wait, wait, wait, this is really important. 36 00:02:36,710 --> 00:02:41,350 KT: Suze's birthday is June 5th. I believe that is the 37 00:02:41,360 --> 00:02:45,479 KT: end of an opportunity for all of you listening to 38 00:02:45,490 --> 00:02:50,550 KT: do something so simple. Go to my alliant.com. Take a quiz. 39 00:02:50,559 --> 00:02:54,978 KT: There's five questions. There's easy, easy, easy. I get them right. 40 00:02:55,097 --> 00:02:58,876 KT: You can't get them wrong. They're just asking you simple questions, 41 00:02:59,046 --> 00:03:02,406 KT: put your email in and you will be entered into 42 00:03:02,417 --> 00:03:04,947 KT: a lucky draw on June 5th, Suze's birthday. 43 00:03:04,957 --> 00:03:08,457 Suze: Well, it's the end of the thing and then after they'll 44 00:03:08,466 --> 00:03:10,457 Suze: pick it, but one of you will win how much? 45 00:03:11,037 --> 00:03:15,757 KT: Suze, they can win $5,000 and it's so easy. Just do this. 46 00:03:15,766 --> 00:03:19,876 KT: People go to myaliant.com. Look for Suze, look for the 47 00:03:19,886 --> 00:03:21,477 KT: little quizzy. It takes 48 00:03:21,574 --> 00:03:23,654 KT: a few seconds done. All right. 49 00:03:23,663 --> 00:03:27,073 Suze: And nothing to buy. Nothing to sign up for nothing. 50 00:03:27,083 --> 00:03:29,123 Suze: Just so, you know. All right, 51 00:03:29,502 --> 00:03:32,333 KT: I'm ready. I've got a bunch of great questions here. 52 00:03:32,343 --> 00:03:35,843 KT: Are you ready? Ok. Hey, Suze and KT, I love 53 00:03:35,854 --> 00:03:41,574 KT: the podcast. I'm 35 years old and have about $300,000 54 00:03:41,583 --> 00:03:43,643 KT: saved for retirement. 55 00:03:44,274 --> 00:03:44,404 Suze: Who is this... that is so... 56 00:03:44,854 --> 00:03:44,983 KT: This is 57 00:03:45,063 --> 00:03:45,723 KT: Alex 58 00:03:45,733 --> 00:03:47,934 KT: and I'm so proud of him. But wait, listen to this, 59 00:03:48,621 --> 00:03:52,630 KT: save for retirement split between an IRA and a 401k. 60 00:03:52,770 --> 00:03:57,401 KT: All of it is invested in low cost index funds. 61 00:03:57,901 --> 00:04:03,190 KT: The Fidelity website tells me that I'm too aggressively invested 62 00:04:03,201 --> 00:04:07,811 KT: for my age. Wait, I understand the logic of shifting 63 00:04:07,820 --> 00:04:11,490 KT: towards bonds when you approach retirement, but starting to do 64 00:04:11,501 --> 00:04:14,350 KT: this at 35 seems crazy to me. 65 00:04:14,619 --> 00:04:17,820 KT: I'm not planning on touching this money for 30 years. 66 00:04:17,839 --> 00:04:20,489 KT: Call me cynical, but it seems like they just want 67 00:04:20,500 --> 00:04:23,730 KT: me to invest in their target date funds with a 68 00:04:23,738 --> 00:04:27,399 KT: higher expense ratio. I should go ding ding, ding, ding. 69 00:04:27,410 --> 00:04:28,480 KT: He's probably right. 70 00:04:28,820 --> 00:04:31,519 KT: Am I missing something here? Is there a good reason 71 00:04:31,529 --> 00:04:35,039 KT: for me to start shifting from stocks to bonds at 72 00:04:35,049 --> 00:04:36,640 KT: age 35? 73 00:04:36,649 --> 00:04:40,399 Suze: So I could make a case just so you know 74 00:04:40,609 --> 00:04:45,130 Suze: that if the feds start to lower interest rates, Alex 75 00:04:45,369 --> 00:04:50,119 Suze: and you are invested especially in long term bonds that 76 00:04:50,130 --> 00:04:53,959 Suze: as interest rates go down, the value of bonds will 77 00:04:53,970 --> 00:04:56,799 Suze: go up. So you could make a nice little sum 78 00:04:56,809 --> 00:04:57,519 Suze: of money 79 00:04:57,859 --> 00:05:00,480 Suze: with bonds, but I wouldn't be doing it through a 80 00:05:00,488 --> 00:05:04,000 Suze: target date mutual fund. I would be doing it through 81 00:05:04,010 --> 00:05:10,980 Suze: buying individual long term treasuries at Fidelity however, who knows 82 00:05:10,988 --> 00:05:13,099 Suze: if interest rates are going to come down or not, 83 00:05:13,140 --> 00:05:17,178 Suze: who knows how long that will take. If I were you, 84 00:05:17,329 --> 00:05:20,919 Suze: I would just continue to do exactly what you are 85 00:05:20,928 --> 00:05:25,839 Suze: doing because at 35 and you already have $300,000 saved. 86 00:05:26,070 --> 00:05:29,269 Suze: I think you're doing just fine. And if the markets 87 00:05:29,279 --> 00:05:33,540 Suze: happen to really crash, they go down, just keep doing it, 88 00:05:33,549 --> 00:05:37,200 Suze: buy more of great quality stocks, ETFs, whatever it is 89 00:05:37,209 --> 00:05:40,649 Suze: that you may invest in over time and later on, 90 00:05:40,660 --> 00:05:42,809 Suze: you'll be so happy that you did. I think there's 91 00:05:42,820 --> 00:05:45,640 Suze: more money to be made doing it the way you're 92 00:05:45,649 --> 00:05:46,950 Suze: doing it. All right. 93 00:05:47,000 --> 00:05:49,130 KT: Good for you, Alex, this is from Kim. 94 00:05:49,670 --> 00:05:52,779 KT: Hi KT and Suze. I listen to you all the 95 00:05:52,790 --> 00:05:56,880 KT: time and deeply appreciate all that you both share. My 96 00:05:56,890 --> 00:06:01,489 KT: question is a simple one, which criteria is most important 97 00:06:01,500 --> 00:06:07,049 KT: when choosing a high dividend ETF? For example, Vanguard International 98 00:06:07,059 --> 00:06:15,329 KT: ETF shows 0.22% expense ratio, but a dividend rate of 4.94%. 99 00:06:15,630 --> 00:06:22,450 KT: The Schwab US Dividend Equity shows a 0.06 expense ratio 100 00:06:22,589 --> 00:06:27,329 KT: but a dividend of 3.48. What is most important? 101 00:06:27,839 --> 00:06:29,928 KT: So I picked this because I don't know the answer. 102 00:06:29,940 --> 00:06:30,868 KT: And I'm really curious. 103 00:06:32,119 --> 00:06:32,410 Suze: This should be your quizzy. 104 00:06:33,369 --> 00:06:35,669 KT: This could be a quizzy. I'm curious to see what you're gonna say. 105 00:06:36,160 --> 00:06:37,799 Suze: So are you gonna listen to me this 106 00:06:37,809 --> 00:06:38,140 Suze: time? 107 00:06:38,149 --> 00:06:41,089 KT: I'm listening because I'm, I'm very curious like which one 108 00:06:41,100 --> 00:06:41,600 KT: is better. 109 00:06:41,880 --> 00:06:45,238 Suze: So first of all, you have to look at what 110 00:06:45,250 --> 00:06:46,750 Suze: your goals are, Kim, 111 00:06:47,320 --> 00:06:52,440 Suze: The Vanguard International ETF says to you that they're investing 112 00:06:52,450 --> 00:06:57,250 Suze: in international stocks, not just here in the United States, 113 00:06:57,260 --> 00:07:01,619 Suze: but internationally. And normally the rule of thumb is for 114 00:07:01,630 --> 00:07:07,579 Suze: international investments, the expense ratio is higher than when it's 115 00:07:07,589 --> 00:07:11,179 Suze: just invested here in the United States. 116 00:07:11,660 --> 00:07:15,109 Suze: Also you have to look at, are you doing this 117 00:07:15,119 --> 00:07:19,480 Suze: for growth? Are you doing this for income? What are 118 00:07:19,489 --> 00:07:24,529 Suze: you doing in buying these things? So they're very, very 119 00:07:24,540 --> 00:07:28,910 Suze: different ETFs so I can't tell you which one is 120 00:07:28,920 --> 00:07:33,018 Suze: more important because I don't know what your goals are, 121 00:07:33,029 --> 00:07:39,190 Suze: but please understand the differences in those two funds. Ok, KT. 122 00:07:39,200 --> 00:07:39,750 KT: So I picked 123 00:07:39,760 --> 00:07:41,549 KT: this one because it's from Mimi. 124 00:07:43,019 --> 00:07:47,320 KT: Mimi is what um my sister, my twin sister, the 125 00:07:47,329 --> 00:07:52,230 KT: kids call her Mimi instead of grandma Mimi. So I'm 71. 126 00:07:52,269 --> 00:07:52,700 Suze: Do you see 127 00:07:52,779 --> 00:07:53,570 Suze: everybody... 128 00:07:54,000 --> 00:07:54,859 KT: And she's the same age as 129 00:07:55,179 --> 00:07:59,059 Suze: ... how KT chooses which question she's going to 130 00:07:59,070 --> 00:07:59,450 Suze: ask. 131 00:07:59,609 --> 00:08:01,410 KT: I resonate with some of you. 132 00:08:02,690 --> 00:08:07,820 KT: I'm 71 and have 300,000 plus in a Vanguard Target 133 00:08:07,829 --> 00:08:12,320 KT: Retirement Fund 2020. I've had this fund for a long time. 134 00:08:12,329 --> 00:08:17,429 KT: It's now down to 40% in stocks and 60% in bonds. 135 00:08:17,730 --> 00:08:22,070 KT: I wake up in night sweats, terrified of investing in 136 00:08:22,079 --> 00:08:26,220 KT: stocks or dealing with brokers having been burned big time 137 00:08:26,230 --> 00:08:29,040 KT: in the past. The rest of my savings are all 138 00:08:29,049 --> 00:08:33,429 KT: in CDs with online banks, like Alliant. Vanguard's going to 139 00:08:33,440 --> 00:08:37,348 KT: start charging fees as of July 1. What to do 140 00:08:37,359 --> 00:08:40,830 KT: with this retirement fund account? And I know the CD 141 00:08:40,840 --> 00:08:42,229 KT: rates are also going 142 00:08:42,335 --> 00:08:45,234 KT: down. So I have concerns there as well. 143 00:08:45,325 --> 00:08:50,315 Suze: If you really are waking up with night sweats and 144 00:08:50,325 --> 00:08:54,114 Suze: obviously at the age of 71 it's not because you're 145 00:08:54,125 --> 00:08:57,994 Suze: in menopause, but you are in "Moneypause." 146 00:08:58,724 --> 00:08:58,765 KT: Oh! That's good, Suze. 147 00:09:00,405 --> 00:09:01,434 Suze: That was good. Right. 148 00:09:01,505 --> 00:09:03,304 KT: Oh, I like that. I'm writing 149 00:09:03,315 --> 00:09:03,843 KT: that one down. 150 00:09:04,145 --> 00:09:06,825 Suze: But what do I mean by that, Mimi, 151 00:09:07,349 --> 00:09:12,939 Suze: it's, you have pause about what your money is invested 152 00:09:12,950 --> 00:09:17,500 Suze: in and therefore you are afraid. What is the goal 153 00:09:17,510 --> 00:09:19,599 Suze: of money? The goal of money is for you to 154 00:09:19,609 --> 00:09:20,419 Suze: be what KT? 155 00:09:20,429 --> 00:09:21,130 KT: Secure. 156 00:09:21,299 --> 00:09:26,130 Suze: Secure and obviously you are not secure in this number one. 157 00:09:26,140 --> 00:09:26,859 Suze: Number two. 158 00:09:27,880 --> 00:09:32,369 Suze: Yes, interest rates on CDs and everything seemed to be 159 00:09:32,380 --> 00:09:35,309 Suze: going down but not going down that much. But if 160 00:09:35,320 --> 00:09:40,090 Suze: you believe that interest rates are going to continue down 161 00:09:40,599 --> 00:09:47,890 Suze: and you're scared to death as well about investing in stocks. Therefore, 162 00:09:47,900 --> 00:09:50,848 Suze: what I would tell you is why not come out 163 00:09:50,859 --> 00:09:53,859 Suze: of this target date retirement fund. 164 00:09:54,549 --> 00:09:59,590 Suze: First of all, it was for 2020 we're already in 2024. 165 00:09:59,599 --> 00:10:03,819 Suze: Number one, number two, why not just come out and 166 00:10:03,830 --> 00:10:09,969 Suze: buy a ladder of treasury bills, bonds notes going out 167 00:10:09,979 --> 00:10:13,090 Suze: longer term? So that if interest rates do start to 168 00:10:13,099 --> 00:10:16,530 Suze: go down as you think they may, the value of 169 00:10:16,539 --> 00:10:18,559 Suze: those bonds will go up 170 00:10:18,880 --> 00:10:22,169 Suze: If interest rates stay where they are, you're still getting 171 00:10:22,179 --> 00:10:25,479 Suze: a good interest rate and you've laddered it and it's 172 00:10:25,489 --> 00:10:28,309 Suze: not gonna really cost you anything. So, if it were 173 00:10:28,320 --> 00:10:32,150 Suze: me and I was afraid to do anything and risk 174 00:10:32,159 --> 00:10:35,659 Suze: any of this money, that is what I would do. 175 00:10:36,440 --> 00:10:36,950 KT: I like 176 00:10:36,960 --> 00:10:37,150 KT: that Mimi. 177 00:10:37,619 --> 00:10:40,270 Suze: Do you think there's any financial hormone pills to take 178 00:10:40,280 --> 00:10:40,819 Suze: for that? 179 00:10:41,549 --> 00:10:44,429 KT: I'm writing, I think this is a great idea. 180 00:10:45,200 --> 00:10:45,409 Suze: Like what 181 00:10:45,419 --> 00:10:48,020 Suze: are you going to do with it? I now I'm afraid. 182 00:10:48,150 --> 00:10:48,858 KT: Ok, 183 00:10:49,679 --> 00:10:54,669 KT: this next question is from Sandra. I invested in two 184 00:10:54,679 --> 00:10:59,959 KT: I bonds when the rate was 9.62. Yeah, but listen 185 00:10:59,969 --> 00:11:01,989 KT: to this as the rates are now lower than the 186 00:11:02,000 --> 00:11:05,859 KT: CD rate at Alliant. I would like to cash them out. 187 00:11:06,000 --> 00:11:08,530 KT: When is the best time to do so? 188 00:11:09,539 --> 00:11:13,169 Suze: All right. And the reason that is, is that obviously 189 00:11:13,179 --> 00:11:17,010 Suze: you have been, my dear Sandra, in these bonds for 190 00:11:17,020 --> 00:11:18,159 Suze: over a year, 191 00:11:18,919 --> 00:11:23,169 Suze: obviously, interest rates have gone down, but your bond has 192 00:11:23,179 --> 00:11:28,319 Suze: a 0% fixed interest rate, which is very different than 193 00:11:28,330 --> 00:11:31,039 Suze: the new I bonds that have been issued, which have 194 00:11:31,049 --> 00:11:34,199 Suze: like a 1.3% fixed interest rate. 195 00:11:34,679 --> 00:11:38,400 Suze: So, therefore you are only getting a small amount of 196 00:11:38,409 --> 00:11:43,340 Suze: money in those bonds. You should absolutely redeem them now 197 00:11:43,349 --> 00:11:46,819 Suze: and do whatever it is that you want with that money. 198 00:11:46,830 --> 00:11:47,380 Suze: All right. 199 00:11:47,799 --> 00:11:52,340 KT: All right. Fom Nicole. I'm 47. Is it too late to 200 00:11:52,349 --> 00:11:53,799 KT: buy a home? 201 00:11:53,809 --> 00:11:54,619 Suze: At what age? 202 00:11:54,630 --> 00:11:55,739 KT: 47. 203 00:11:55,750 --> 00:11:56,669 Suze: Are you kidding me? 204 00:11:57,390 --> 00:12:00,619 KT: Hi, Suze. I'm hoping you answer this question for me. 205 00:12:00,919 --> 00:12:04,780 KT: I'm 47 years old. Not married and I want to 206 00:12:04,789 --> 00:12:07,319 KT: own a home. All right. Well, this is a little 207 00:12:07,330 --> 00:12:10,750 KT: bit tricky. I live in Staten Island and the average 208 00:12:10,760 --> 00:12:15,979 KT: home price is around 700,000, which is more than 50% 209 00:12:15,989 --> 00:12:20,130 KT: of my take home pay. This would not include utilities. 210 00:12:20,359 --> 00:12:21,780 KT: I earned good money. 211 00:12:22,049 --> 00:12:27,098 KT: So Nicole makes about $195,000 a year and she has 212 00:12:27,109 --> 00:12:31,789 KT: about 200,000 in liquid savings. I also have a good 213 00:12:31,799 --> 00:12:35,520 KT: amount in retirement. She has a million dollars and a 214 00:12:35,530 --> 00:12:40,569 KT: nonretirement investment account 30,000 which she doesn't plan on touching 215 00:12:40,659 --> 00:12:41,710 KT: for a long time. 216 00:12:42,219 --> 00:12:45,090 KT: I'm beginning to wonder if I should rent for the 217 00:12:45,099 --> 00:12:49,989 KT: next few years. Keep my fixed expenses low, then buy 218 00:12:50,000 --> 00:12:52,750 KT: a home in a lower cost state. 219 00:12:53,200 --> 00:12:55,760 KT: Big issue for me is that this would require I 220 00:12:55,770 --> 00:13:00,989 KT: move away from my mom who's 75 and my entire family. 221 00:13:01,130 --> 00:13:03,109 KT: I don't really want to do that nor do I 222 00:13:03,119 --> 00:13:06,469 KT: want to take on an overpriced 30 year mortgage at 223 00:13:06,479 --> 00:13:09,659 KT: the age of 47 when I don't plan to be 224 00:13:09,669 --> 00:13:12,309 KT: in the same job for 30 more years, 225 00:13:12,630 --> 00:13:16,579 Suze: Nicole. I think you've answered your own question. Believe it 226 00:13:16,590 --> 00:13:17,099 Suze: or not. 227 00:13:17,690 --> 00:13:22,039 Suze: You know how we end every podcast people first, then money, 228 00:13:22,049 --> 00:13:27,989 Suze: then things obviously more than your desire to want to 229 00:13:28,000 --> 00:13:32,780 Suze: own a home. Is your desire. If you read this 230 00:13:32,789 --> 00:13:37,950 Suze: email is your desire to be near your mom to 231 00:13:37,960 --> 00:13:40,329 Suze: be near your entire family, 232 00:13:41,570 --> 00:13:44,630 Suze: you have many, many years left that you can always 233 00:13:44,640 --> 00:13:49,500 Suze: buy a home. You don't have many, many years left 234 00:13:49,590 --> 00:13:53,590 Suze: to be near your mom and your family. If you 235 00:13:53,599 --> 00:13:58,229 Suze: think about it, your mom is 75. So you never 236 00:13:58,239 --> 00:14:01,750 Suze: know what can happen in the future. 237 00:14:02,409 --> 00:14:04,919 Suze: If I were you, I would not be buying a 238 00:14:04,929 --> 00:14:09,829 Suze: home right now in your particular situation. This does not 239 00:14:09,840 --> 00:14:12,309 Suze: hold for everybody who's listening. 240 00:14:12,809 --> 00:14:16,030 Suze: I would wait to see what happens with your job 241 00:14:16,039 --> 00:14:18,190 Suze: because you know the other thing that none of us 242 00:14:18,200 --> 00:14:22,119 Suze: ever think about Nicole is all right. We bought a home. 243 00:14:22,130 --> 00:14:25,830 Suze: We now have a large mortgage payment. Now here we 244 00:14:25,840 --> 00:14:29,169 Suze: are and we get sick. We're in a car accident, 245 00:14:29,280 --> 00:14:32,609 Suze: something happens. We lose our job and now we have 246 00:14:32,619 --> 00:14:38,159 Suze: this huge mortgage to pay huge property taxes, huge insurance bills, 247 00:14:38,169 --> 00:14:41,440 Suze: huge maintenance costs and we don't have the money to 248 00:14:41,450 --> 00:14:42,429 Suze: pay for it. 249 00:14:42,989 --> 00:14:46,690 Suze: So you have to think about that as well. Now 250 00:14:46,700 --> 00:14:50,409 Suze: I get that you have a good amount in liquid savings. 251 00:14:50,419 --> 00:14:55,429 Suze: But if you're gonna buy a $700,000 home, you're gonna 252 00:14:55,440 --> 00:14:59,900 Suze: have to put down at least 70,000 to 100 and 253 00:14:59,909 --> 00:15:04,570 Suze: $40,000 as a down payment. 100 and 40,000 is what 254 00:15:04,580 --> 00:15:06,530 Suze: would be preferable truthfully 255 00:15:07,049 --> 00:15:13,229 Suze: that then only leaves you $60,000 in savings, which isn't 256 00:15:13,239 --> 00:15:16,989 Suze: very much of an emergency fund, even in your non 257 00:15:17,000 --> 00:15:21,250 Suze: retirement investments at 30,000, it's still, if you combine those 258 00:15:21,260 --> 00:15:24,309 Suze: two are only $90,000 and once you have a huge 259 00:15:24,320 --> 00:15:25,820 Suze: mortgage payment and everything 260 00:15:26,349 --> 00:15:31,049 Suze: along with everything else, it's not enough. So just continue 261 00:15:31,059 --> 00:15:34,330 Suze: to rent for the next few years, keep your expenses 262 00:15:34,340 --> 00:15:39,919 Suze: as low as possible. Then when you do decide either 263 00:15:39,929 --> 00:15:43,210 Suze: you have enough money to buy a home, then or 264 00:15:43,820 --> 00:15:47,020 Suze: you wanna move to another lower cost state for your 265 00:15:47,030 --> 00:15:50,869 Suze: own retirement, then you'll be able to buy one outright. 266 00:15:51,140 --> 00:15:51,849 Suze: So 267 00:15:52,179 --> 00:15:55,719 Suze: I would stay near mama versus staying in a home 268 00:15:55,729 --> 00:15:58,840 Suze: that's further away from her. All right. Next question, KT. 269 00:15:59,130 --> 00:16:01,679 KT: Well, wait, wait before we do the next question. I'm getting a 270 00:16:01,690 --> 00:16:06,429 KT: lot of questions about young people or people, Nicole's age 271 00:16:06,440 --> 00:16:10,349 KT: wanting to buy a home. They just think it's impossible 272 00:16:10,530 --> 00:16:13,599 KT: and it is expensive. So if she did buy a 273 00:16:13,609 --> 00:16:15,090 KT: home in Staten Island 274 00:16:15,359 --> 00:16:19,440 KT: and wanted to, you know, pursue her goal, could she, 275 00:16:19,450 --> 00:16:20,679 KT: and what would that cost? 276 00:16:20,690 --> 00:16:21,150 Suze: Could she 277 00:16:21,159 --> 00:16:22,849 Suze: afford it? Is that what you're asking me? 278 00:16:23,989 --> 00:16:26,979 KT: Make this a can I afford it? Question? Can you, 279 00:16:26,989 --> 00:16:30,010 KT: can you figure that out for her? So she makes 280 00:16:30,830 --> 00:16:34,140 KT: 195 gross. I don't think that's her take on it. 281 00:16:34,669 --> 00:16:35,270 KT: Let's assume 282 00:16:35,309 --> 00:16:35,690 Suze: it's not. 283 00:16:35,700 --> 00:16:39,820 Suze: She's in Staten Island, New York. So when somebody says 284 00:16:39,960 --> 00:16:42,719 Suze: they now write this down, everybody take out your little 285 00:16:42,729 --> 00:16:47,849 Suze: Suze note books, right? When somebody says they make $195,000 286 00:16:47,859 --> 00:16:52,700 Suze: a year, KT, especially in New York, remember from that 287 00:16:52,710 --> 00:16:56,969 Suze: amount you have to take social security tax, Medicare tax. 288 00:16:56,979 --> 00:17:00,659 Suze: Let's see, New York City tax, New York State, federal tax, 289 00:17:00,669 --> 00:17:04,339 Suze: all of those things. And I would imagine 290 00:17:05,159 --> 00:17:12,479 Suze: all of those things probably total close to $64,000. So 291 00:17:12,489 --> 00:17:21,729 Suze: her net really isn't 195,000. It's about $141,000. So then 292 00:17:21,739 --> 00:17:28,088 Suze: the question becomes, can she on $141,000 net 293 00:17:28,540 --> 00:17:35,198 Suze: can she afford the house? So $141,000 net is right around, 294 00:17:35,209 --> 00:17:41,390 Suze: I'd say $12,000 a month. Ok, at $12,000 a month 295 00:17:41,680 --> 00:17:43,780 Suze: now she's bought this home 296 00:17:44,209 --> 00:17:48,329 Suze: and her monthly mortgage payment, let's just say at 7% 297 00:17:48,339 --> 00:17:53,639 Suze: for 30 years for a $700,000 home with 20% down 298 00:17:53,650 --> 00:18:00,228 Suze: or $140,000 down. Her payment is going to be around 299 00:18:00,645 --> 00:18:08,035 Suze: $3,700 a month between insurance, property taxes and maintenance she's 300 00:18:08,045 --> 00:18:13,244 Suze: gonna owe, oh boy, not maybe another 1,000 1,200 whatever 301 00:18:13,255 --> 00:18:16,094 Suze: it may be a month. That's just estimating because I 302 00:18:16,104 --> 00:18:16,925 Suze: don't know. 303 00:18:17,250 --> 00:18:19,719 Suze: So let's just say this house is going to cost 304 00:18:19,729 --> 00:18:24,310 Suze: her $5,000 a month. Let's just say that's true. Forget 305 00:18:24,319 --> 00:18:25,280 Suze: tax deductions. So 306 00:18:25,290 --> 00:18:27,469 KT: That just leaves her how much at the end of 307 00:18:27,479 --> 00:18:27,909 KT: the day? 308 00:18:28,160 --> 00:18:32,589 Suze: That leaves her approximately, I wanna say 6,500 or so 309 00:18:33,275 --> 00:18:36,823 Suze: in my head to live, to live on which is 310 00:18:36,834 --> 00:18:41,915 Suze: for her car expenses, her food, her travel, her putting 311 00:18:41,925 --> 00:18:46,025 Suze: money in savings, medical bill, clothing and everything. So the 312 00:18:46,035 --> 00:18:47,974 Suze: truth of the matter is Nicole, 313 00:18:48,869 --> 00:18:55,079 Suze: can you afford this if you can live on about 314 00:18:55,089 --> 00:18:59,640 Suze: $6,500 a month after taxes still put money away in 315 00:18:59,650 --> 00:19:02,660 Suze: your retirement and all of that, which would really bring 316 00:19:02,670 --> 00:19:03,770 Suze: this down quite a bit. 317 00:19:04,310 --> 00:19:07,280 Suze: Only because I'm sure she's putting the max in her 318 00:19:07,290 --> 00:19:11,810 Suze: retirement account because she says she has 1 million in retirement. 319 00:19:11,859 --> 00:19:14,599 Suze: So I'm sure she's fully funding it. So that would 320 00:19:14,609 --> 00:19:18,770 Suze: take away possibly another 3,000 a month from that figure. 321 00:19:19,319 --> 00:19:20,729 Suze: And so maybe 322 00:19:21,400 --> 00:19:25,419 Suze: there isn't enough given what she wants to put away 323 00:19:25,430 --> 00:19:31,169 Suze: in other retirement accounts. But now Nicole, now, you know 324 00:19:31,180 --> 00:19:33,979 Suze: what it would actually cost you and if it's worth 325 00:19:33,989 --> 00:19:37,900 Suze: that or not, and if in fact, you can afford 326 00:19:37,910 --> 00:19:41,800 Suze: it or not, and only, you know, the answer to 327 00:19:41,810 --> 00:19:44,180 Suze: that question. And somehow I think 328 00:19:44,680 --> 00:19:48,219 Suze: when you look at it with what you put towards savings, 329 00:19:48,229 --> 00:19:52,228 Suze: you're going to say denied, but let us know, write 330 00:19:52,239 --> 00:19:53,569 Suze: me back, let me know. All right. 331 00:19:53,869 --> 00:19:56,770 KT: All right. Here's the next one is from, I, I 332 00:19:56,780 --> 00:19:58,859 KT: have lots of men and women today. I love the 333 00:19:58,869 --> 00:19:59,459 KT: mix up. 334 00:19:59,770 --> 00:20:03,670 KT: Hi, Suze father is 78 and is doing well for 335 00:20:03,680 --> 00:20:07,670 KT: his age. He owns a home in sunny South Florida 336 00:20:07,910 --> 00:20:11,010 KT: and plans on leaving the house to me and my sister. 337 00:20:11,050 --> 00:20:14,030 KT: And this is already stated in his will. Even though 338 00:20:14,040 --> 00:20:17,979 KT: he remarried after our mom passed, he doesn't have the 339 00:20:17,989 --> 00:20:21,708 KT: other must have documents completed yet. I'm gonna work with 340 00:20:21,719 --> 00:20:22,510 KT: him on that 341 00:20:23,060 --> 00:20:26,438 KT: In your podcast, I heard you talk about joint tenants 342 00:20:26,479 --> 00:20:31,140 KT: with right of survivorship. If he puts me and my 343 00:20:31,150 --> 00:20:35,020 KT: sister's name on the title, will we avoid probate when 344 00:20:35,030 --> 00:20:37,660 KT: he passes and assume ownership of the 345 00:20:37,670 --> 00:20:38,189 KT: house? 346 00:20:38,219 --> 00:20:40,969 Suze: The answer to that is yes. However, 347 00:20:42,229 --> 00:20:47,510 Suze: nothing's ever simple. As KT and I were talking this morning, right? 348 00:20:47,520 --> 00:20:51,880 Suze: KT and remember what we were saying, we were talking 349 00:20:51,890 --> 00:20:54,859 Suze: about the interviewers on TV. 350 00:20:55,599 --> 00:21:00,060 Suze: That are good interviewers because when they're interviewing somebody, they 351 00:21:00,069 --> 00:21:02,579 Suze: don't just talk and talk and talk and leave five 352 00:21:02,589 --> 00:21:05,880 Suze: seconds for their in the person they're interviewing to answer. 353 00:21:06,229 --> 00:21:09,449 Suze: And KT was telling me about who was your favorite interviewer? 354 00:21:09,459 --> 00:21:12,699 KT: Larry King. Bar none the best of the best. 355 00:21:12,709 --> 00:21:17,540 Suze: Because he would ask a question very succinctly and give 356 00:21:17,550 --> 00:21:21,060 Suze: his guest all this time to answer. 357 00:21:21,560 --> 00:21:22,469 KT: He was the best. 358 00:21:22,560 --> 00:21:23,930 Suze: And then I said to her, 359 00:21:24,619 --> 00:21:28,569 Suze: I talk too much, don't I? And she said, what 360 00:21:28,579 --> 00:21:29,369 Suze: did you say to me? 361 00:21:29,510 --> 00:21:32,239 KT: No, I said you don't talk too much sometimes the answers 362 00:21:32,250 --> 00:21:37,209 KT: are too long, meaning they're too complex to remember. They're 363 00:21:37,219 --> 00:21:40,310 KT: too long. So she just, she just answered yes. 364 00:21:41,819 --> 00:21:48,459 Suze: However, I don't know how long your father has owned 365 00:21:48,469 --> 00:21:51,000 Suze: the home in sunny South Florida 366 00:21:51,640 --> 00:21:59,300 Suze: because let's say it's worth $1 million. Maybe even more 367 00:21:59,310 --> 00:22:04,300 Suze: than that. Who knows? So, Ed, yes, you can avoid probate. 368 00:22:04,589 --> 00:22:06,699 Suze: But let me just tell you if you do it 369 00:22:06,709 --> 00:22:12,099 Suze: that way. There are many unintended consequences. The very first one, 370 00:22:12,859 --> 00:22:17,410 Suze: when you put your name on the title as joint 371 00:22:17,420 --> 00:22:22,310 Suze: tenants with right of survivorship, it means that your father 372 00:22:22,319 --> 00:22:27,750 Suze: has gifted you each one third of the home and 373 00:22:27,760 --> 00:22:32,020 Suze: in gifting it to you, he has also gifted you 374 00:22:32,030 --> 00:22:35,389 Suze: his cost basis in the home. 375 00:22:36,060 --> 00:22:39,369 Suze: So let's just say he bought the house 25 years 376 00:22:39,380 --> 00:22:45,069 Suze: ago for $300,000. Let's just say that's true. And today 377 00:22:45,079 --> 00:22:48,879 Suze: it is worth $1 million. 378 00:22:49,680 --> 00:22:53,339 Suze: If you didn't put your names on as joint tenancy 379 00:22:53,910 --> 00:22:59,339 Suze: and you inherited it from him via a living revocable trust, 380 00:22:59,349 --> 00:23:01,660 Suze: which is the best way for you to be doing 381 00:23:01,670 --> 00:23:05,739 Suze: this the day of his death, you would get a 382 00:23:05,750 --> 00:23:08,619 Suze: step up in cost basis on that home 383 00:23:08,979 --> 00:23:12,930 Suze: so that your cost in it would be $1 million. 384 00:23:13,069 --> 00:23:16,380 Suze: So if you turned around and sold it right then 385 00:23:16,390 --> 00:23:19,760 Suze: and there you would not owe any taxes on it. 386 00:23:19,849 --> 00:23:26,609 Suze: What so ever. However, if you put your names on 387 00:23:26,619 --> 00:23:30,560 Suze: it and now you each own a third of it. 388 00:23:31,310 --> 00:23:35,119 Suze: Your cost basis is $100,000. 389 00:23:35,869 --> 00:23:41,339 Suze: Your sister's cost basis is $100,000. And your father's cost 390 00:23:41,349 --> 00:23:45,089 Suze: basis now is $100,000. He dies. 391 00:23:45,760 --> 00:23:50,859 Suze: So his $100,000 that you are inheriting in that house 392 00:23:51,290 --> 00:23:58,300 Suze: gets a step up in cost basis to $333,000. One third 393 00:23:59,030 --> 00:24:03,560 Suze: of the million dollar value that it's at you and 394 00:24:03,569 --> 00:24:09,020 Suze: your sister retain the $100,000 each cost basis 395 00:24:09,609 --> 00:24:14,750 Suze: for $200,000. Jointly. Are now your total new cost basis 396 00:24:14,760 --> 00:24:21,910 Suze: in the house is $523,000. Let's just say you don't 397 00:24:21,920 --> 00:24:25,790 Suze: want the house and you sell it for a million dollars. 398 00:24:26,109 --> 00:24:31,879 Suze: Now you have a gain. So you better think about this. 399 00:24:31,890 --> 00:24:33,709 Suze: That's number one, 400 00:24:34,250 --> 00:24:40,180 Suze: number two, you now have subjected that house, your father's 401 00:24:40,189 --> 00:24:46,229 Suze: house to exposure to creditors. If you have any debts, 402 00:24:46,239 --> 00:24:50,829 Suze: anything like that, your creditors could go after you. And 403 00:24:50,839 --> 00:24:54,910 Suze: you're thinking I don't owe any money right now. We're fine. We're clear. 404 00:24:55,579 --> 00:24:59,420 Suze: You're in a car accident, you're sued and now you 405 00:24:59,430 --> 00:25:02,739 Suze: owe money to somebody, but you don't have the money 406 00:25:02,750 --> 00:25:03,589 Suze: to pay them 407 00:25:03,869 --> 00:25:08,890 Suze: legally. You own a home, they could attach it, they 408 00:25:08,900 --> 00:25:13,660 Suze: could go after that home. There's all kinds of things 409 00:25:13,670 --> 00:25:15,889 Suze: that could go wrong. I could actually go on and 410 00:25:15,900 --> 00:25:19,319 Suze: name three or four more. But those are the two 411 00:25:19,329 --> 00:25:23,410 Suze: biggest ones that you really should think about. 412 00:25:24,290 --> 00:25:27,939 KT: So if he, if his concern was going through probate, 413 00:25:27,949 --> 00:25:31,680 KT: if there is a living revocable trust, there's no probate. 414 00:25:32,540 --> 00:25:35,709 KT: So just go get the documents done with your dad 415 00:25:35,719 --> 00:25:36,589 KT: and you'll be fine. 416 00:25:36,969 --> 00:25:42,479 Suze: Just get yourself a living revocable trust. Or if you want, 417 00:25:42,689 --> 00:25:48,478 Suze: just go to must have docs.com and that's where you 418 00:25:48,489 --> 00:25:50,589 Suze: can get the, must have docs 419 00:25:50,939 --> 00:25:55,709 Suze: which are a revocable living trust. A will, an advance 420 00:25:55,719 --> 00:25:58,479 Suze: directive and a durable power of attorney for health care 421 00:25:58,489 --> 00:26:02,790 Suze: and a financial power of attorney. Just do that $99. 422 00:26:02,800 --> 00:26:04,869 Suze: That's what I would be doing if I were you? 423 00:26:05,339 --> 00:26:06,619 Suze: All right, Katie. 424 00:26:07,000 --> 00:26:10,660 KT: This is from Joe. Hi, Suze and KT, my 90 year 425 00:26:10,670 --> 00:26:16,489 KT: old mom and I love your podcast. And many, many 426 00:26:16,500 --> 00:26:19,719 KT: years ago she introduced me to your books and TV show. 427 00:26:19,729 --> 00:26:20,760 KT: Way to go mom 428 00:26:21,079 --> 00:26:24,300 KT: And like everyone else on planet Earth, we wish we 429 00:26:24,310 --> 00:26:29,459 KT: found your podcast earlier. So, here's Joe's question. When my 430 00:26:29,469 --> 00:26:32,739 KT: dad passed away five years ago, their bank put his 431 00:26:32,750 --> 00:26:37,500 KT: traditional IRA and an IRA for her and they put 432 00:26:37,510 --> 00:26:40,010 KT: the money into a five year CD that will come 433 00:26:40,020 --> 00:26:43,339 KT: due in a few months at that time. Can she 434 00:26:43,349 --> 00:26:45,399 KT: put the money into TIPs 435 00:26:45,650 --> 00:26:47,129 KT: or VTIs? 436 00:26:47,380 --> 00:26:47,589 Suze: Yeah. 437 00:26:47,599 --> 00:26:51,089 Suze: So VTI is the ETF, the symbol for the Vanguard 438 00:26:51,099 --> 00:26:55,560 Suze: Total Stock Market Index Fund ETF. She can do anything 439 00:26:55,569 --> 00:27:00,550 Suze: she wants because she was a primary beneficiary of your 440 00:27:00,560 --> 00:27:02,180 Suze: father's IRA. 441 00:27:02,880 --> 00:27:07,520 Suze: It is now her IRA and therefore she has total 442 00:27:07,530 --> 00:27:12,660 Suze: control over it so she can do anything she wants, 443 00:27:12,859 --> 00:27:15,739 Suze: just so you know. And I got news for you 444 00:27:15,750 --> 00:27:20,420 Suze: KT because she listens to the Women and Money podcast. 445 00:27:20,430 --> 00:27:22,939 Suze: She knows what to do. All right. You know what 446 00:27:22,949 --> 00:27:26,670 Suze: time it is right now. It's quizzy time. And this 447 00:27:26,680 --> 00:27:28,829 Suze: is where I asked KT and all of you a 448 00:27:28,839 --> 00:27:29,659 Suze: question 449 00:27:29,989 --> 00:27:33,390 Suze: and let's see how you would answer it. 450 00:27:34,030 --> 00:27:38,889 Suze: Hi, Suze and KT. My question is, how do you feel 451 00:27:38,900 --> 00:27:43,688 Suze: about buying a condo in Arlington, Virginia living in it 452 00:27:43,699 --> 00:27:49,729 Suze: for a year, but renting it out for several years afterwards? 453 00:27:49,989 --> 00:27:54,250 Suze: My job is moving me overseas for several years in 454 00:27:54,260 --> 00:27:57,329 Suze: January of 2026. 455 00:27:57,640 --> 00:28:01,089 Suze: I am expecting an inheritance that will allow me to 456 00:28:01,099 --> 00:28:07,640 Suze: purchase a one bedroom condo outright. I do not own property. 457 00:28:07,709 --> 00:28:13,619 Suze: This would be my first home purchase. I am 55 single, 458 00:28:13,670 --> 00:28:18,459 Suze: no debt, a 793 credit score and I am on 459 00:28:18,469 --> 00:28:22,619 Suze: track for my retirement and I have a two year 460 00:28:22,630 --> 00:28:24,270 Suze: emergency fund... 461 00:28:24,900 --> 00:28:30,489 Suze: or should I just put the inheritance money in CD? 462 00:28:30,500 --> 00:28:32,129 Suze: So think about it. Everybody 463 00:28:32,930 --> 00:28:38,319 Suze: think about it. Mhm. She's 55. She is single. She 464 00:28:38,329 --> 00:28:42,189 Suze: has no debt. She has a high fico score of 793. 465 00:28:42,810 --> 00:28:45,569 Suze: She has two years in an emergency fund of her 466 00:28:45,579 --> 00:28:50,770 Suze: current expenses. Anyway, she is moving in one year overseas 467 00:28:50,780 --> 00:28:53,310 Suze: for possibly several years, 468 00:28:54,079 --> 00:28:56,729 Suze: but she is getting an inheritance that will allow her 469 00:28:56,739 --> 00:29:01,739 Suze: to purchase a one bedroom condo outright, should she or 470 00:29:01,750 --> 00:29:05,209 Suze: should she not? And if she doesn't, should she just 471 00:29:05,219 --> 00:29:07,439 Suze: put that money in CDs? 472 00:29:08,099 --> 00:29:09,650 KT: I have the answer. 473 00:29:10,109 --> 00:29:11,329 Suze: What is it? 474 00:29:11,339 --> 00:29:15,810 KT: Put the money in the CD? Do not, do not 475 00:29:15,819 --> 00:29:17,449 KT: buy a condominium. 476 00:29:17,880 --> 00:29:19,489 KT: I don't care if you live in it for one 477 00:29:19,500 --> 00:29:21,599 KT: year or two years, but if you intend to rent 478 00:29:21,609 --> 00:29:24,619 KT: it out while you're abroad and you have no idea 479 00:29:24,630 --> 00:29:28,119 KT: how long you may stay abroad. And I tell you 480 00:29:28,130 --> 00:29:33,089 KT: that from personal experience in 1980 I went to visit 481 00:29:33,099 --> 00:29:36,819 KT: a friend in Hong Kong. Guess what, everybody... I came 482 00:29:36,829 --> 00:29:42,800 KT: back to America in 1998 and almost 20 years in 483 00:29:42,810 --> 00:29:43,689 KT: Hong Kong. 484 00:29:45,209 --> 00:29:49,650 KT: So so I never expected to stay, to go and 485 00:29:49,660 --> 00:29:51,750 KT: live on the other side of the world for most 486 00:29:51,760 --> 00:29:56,109 KT: of my life. You don't know what happens, don't do it. So, Angelique, 487 00:29:56,170 --> 00:29:59,420 KT: listen to me the cost of a condominium and I 488 00:29:59,430 --> 00:30:04,030 KT: don't care what state you're in a condominium cost and 489 00:30:04,040 --> 00:30:07,989 KT: expenses will only go up, not down 490 00:30:08,449 --> 00:30:11,880 KT: ever. So who and, and someone can ruin it if 491 00:30:11,890 --> 00:30:13,229 KT: you're going to rent it, right? 492 00:30:13,239 --> 00:30:15,290 Suze: So you would say don't do it, 493 00:30:15,300 --> 00:30:18,280 KT: Don't do it, don't do it, don't do it, don't 494 00:30:18,290 --> 00:30:18,790 KT: do it. 495 00:30:18,890 --> 00:30:19,229 Suze: So, 496 00:30:19,239 --> 00:30:22,130 Suze: are you right or you wrong? And I have to 497 00:30:22,140 --> 00:30:24,810 Suze: tell you, I don't know KT if you're right or 498 00:30:24,819 --> 00:30:25,680 Suze: if you're wrong 499 00:30:26,489 --> 00:30:29,479 Suze: because there's a few more questions that we would have 500 00:30:29,489 --> 00:30:35,670 Suze: to ask to Angelique such as Angelique eventually. Do you 501 00:30:35,680 --> 00:30:40,869 Suze: plan on coming back to Arlington, Virginia to live for 502 00:30:40,880 --> 00:30:45,310 Suze: the rest of your life? Is that one of your goals? 503 00:30:45,319 --> 00:30:49,189 Suze: Number one, I get that you have the money to 504 00:30:49,199 --> 00:30:51,739 Suze: afford to buy the condo outright, 505 00:30:52,109 --> 00:30:56,349 Suze: but you also have the income while you are overseas 506 00:30:56,479 --> 00:31:02,010 Suze: to afford the property taxes on it, the condo fees, 507 00:31:02,050 --> 00:31:04,599 Suze: all the things that go along with it and the 508 00:31:04,609 --> 00:31:10,500 Suze: probable assessments that will happen with that condo. Do you 509 00:31:10,510 --> 00:31:11,119 Suze: have a 510 00:31:11,165 --> 00:31:15,744 Suze: management company that will manage that condo for you while 511 00:31:15,755 --> 00:31:19,515 Suze: you are overseas? Because usually rule of thumb is do 512 00:31:19,525 --> 00:31:22,354 Suze: not rent something out that you own that you're not 513 00:31:22,364 --> 00:31:25,744 Suze: just 10 or 15 or 20 minutes away where you 514 00:31:25,755 --> 00:31:28,244 Suze: can check on it. So given that you're going to 515 00:31:28,255 --> 00:31:30,055 Suze: be overseas, 516 00:31:30,910 --> 00:31:34,949 Suze: do you have a management company that can manage it 517 00:31:34,959 --> 00:31:38,939 Suze: for you? Is the area that you are buying this 518 00:31:38,949 --> 00:31:42,400 Suze: condo in? Is it up and coming? Is it a 519 00:31:42,410 --> 00:31:47,020 Suze: place where prices have been appreciating? What could possibly happen 520 00:31:47,030 --> 00:31:51,020 Suze: to this area to make it either decrease in value 521 00:31:51,030 --> 00:31:55,650 Suze: or increase in value? And if you rent it to 522 00:31:55,660 --> 00:31:56,459 Suze: a renter 523 00:31:57,260 --> 00:32:00,699 Suze: who all of a sudden, let's say this is the pandemic. Now, 524 00:32:01,310 --> 00:32:04,270 Suze: they don't have to pay you rent. They're not giving 525 00:32:04,280 --> 00:32:08,810 Suze: you anything towards your expenses to keep it. Can you 526 00:32:08,819 --> 00:32:14,319 Suze: easily afford those expenses without the rent coming in? 527 00:32:14,939 --> 00:32:19,290 Suze: If the answer to all those questions are, yeah, I 528 00:32:19,300 --> 00:32:22,560 Suze: have more than enough money to do so, even if 529 00:32:22,569 --> 00:32:26,959 Suze: I don't rent it out, just saying. And yes, when 530 00:32:26,969 --> 00:32:31,410 Suze: I return, I wanna come back to Arlington, Virginia. And 531 00:32:31,420 --> 00:32:34,589 Suze: this is the place that I want to live. 532 00:32:35,410 --> 00:32:37,500 Suze: Then I don't have a problem if that's what you 533 00:32:37,510 --> 00:32:40,510 Suze: want to do and you know, you have enough money 534 00:32:40,520 --> 00:32:44,060 Suze: to do. So. And KT, she's obviously a saver because 535 00:32:44,069 --> 00:32:46,469 Suze: she has two years in an emergency fund so she 536 00:32:46,479 --> 00:32:50,300 Suze: could carry it for quite a while. Given that she's 537 00:32:50,310 --> 00:32:55,020 Suze: buying it outright. The answer to this question is really 538 00:32:55,030 --> 00:32:59,189 Suze: up to you if you can afford and answered all 539 00:32:59,199 --> 00:33:02,390 Suze: those questions with a yes, no problem whatsoever. 540 00:33:02,660 --> 00:33:04,699 Suze: I might go ahead and buy it and rent it 541 00:33:04,709 --> 00:33:05,219 Suze: out KT. 542 00:33:05,699 --> 00:33:10,359 KT: So, I totally disagree with Suze for one reason. Go overseas 543 00:33:10,369 --> 00:33:13,479 KT: and have peace of mind. Who wants to worry about 544 00:33:13,489 --> 00:33:17,000 KT: a rent or a condo, collecting the rent, the meetings, 545 00:33:17,010 --> 00:33:21,479 KT: everything at the no, go overseas. Have a great time. 546 00:33:22,020 --> 00:33:24,979 KT: Open the door for a new life. You don't need 547 00:33:24,989 --> 00:33:26,959 KT: to have anything back here. 548 00:33:27,020 --> 00:33:31,560 Suze: Or KT, she goes overseas, she gets injured, she gets sick, 549 00:33:31,569 --> 00:33:34,630 Suze: she gets laid off now, she has to come back 550 00:33:34,640 --> 00:33:38,479 Suze: to the States and she wants a place she wants 551 00:33:38,489 --> 00:33:41,400 Suze: this place to live in 552 00:33:42,060 --> 00:33:44,280 Suze: and now she has it and now she lets the 553 00:33:44,290 --> 00:33:48,239 Suze: renter go and she has a home that has probably 554 00:33:48,250 --> 00:33:53,869 Suze: increased in value at least 3% a year as well. 555 00:33:54,369 --> 00:33:58,119 Suze: So the property will probably increase as much 556 00:33:58,780 --> 00:34:04,359 Suze: as maybe what a CD would increase after taxes. Because remember, 557 00:34:04,369 --> 00:34:08,479 Suze: interest on a CD is taxable to her. The increase 558 00:34:08,489 --> 00:34:12,810 Suze: in the value of the condo is not taxable to 559 00:34:12,820 --> 00:34:17,279 Suze: her as ordinary income. It just increases until she sells 560 00:34:17,290 --> 00:34:21,330 Suze: it and then she gets a $250,000 write off if 561 00:34:21,340 --> 00:34:24,399 Suze: she sells it. If she's lived in it for two 562 00:34:24,409 --> 00:34:26,669 Suze: out of the past five years. 563 00:34:27,370 --> 00:34:28,229 Suze: You still disagree with me? 564 00:34:29,129 --> 00:34:31,739 KT: Who knows what the renters are gonna be like? So 565 00:34:31,750 --> 00:34:34,060 KT: you could trash it. Wait, this is a real what 566 00:34:34,070 --> 00:34:38,389 KT: if question the answer requires. What ifs, what ifs, what ifs. 567 00:34:38,929 --> 00:34:42,040 Suze: For me, if you answered yes to all of my. 568 00:34:42,303 --> 00:34:45,533 Suze: what ifs, I would go ahead and buy it, KT 569 00:34:45,543 --> 00:34:45,973 Suze: would say 570 00:34:46,174 --> 00:34:51,333 KT: Go have a free mind, free open opportunity for a 571 00:34:51,343 --> 00:34:55,414 KT: new future overseas. You may not want to come back. 572 00:34:55,424 --> 00:35:00,303 Suze: All right. So that's KT you heard Suze's answer? What 573 00:35:00,313 --> 00:35:05,453 Suze: are you all thinking now, Angelique, the decision is truly 574 00:35:05,464 --> 00:35:07,343 Suze: up to you. 575 00:35:07,669 --> 00:35:10,100 Suze: All right, KT, that brings us to the end of 576 00:35:10,110 --> 00:35:14,520 Suze: another ask Suze and KT Anything podcast. So what do 577 00:35:14,530 --> 00:35:15,929 Suze: you want to tell everybody? 578 00:35:15,939 --> 00:35:18,609 KT: There's only one thing that you all need to remember 579 00:35:18,620 --> 00:35:23,250 KT: and that is people first, then money, then things. Now 580 00:35:23,260 --> 00:35:26,610 KT: if you all do that, you will live a life 581 00:35:26,620 --> 00:35:27,569 KT: that is 582 00:35:27,580 --> 00:35:31,649 Suze: unstoppable. See you soon, everybody. Bye bye.