1 00:00:00,009 --> 00:00:04,079 Intro/Outro: All right, Suze, KT. Are you ready for today's podcast? Yeah, 2 00:00:04,659 --> 00:00:10,279 Intro/Outro: of course. We're ready because we are unstoppable. Yeah, baby, 3 00:00:12,579 --> 00:00:12,619 Intro/Outro: Music In. 4 00:00:33,250 --> 00:00:36,939 Suze: September 14th, 2023. 5 00:00:36,950 --> 00:00:38,729 KT: Good morning, Suze. Good morning. 6 00:00:39,909 --> 00:00:45,589 Suze: But wait, everybody knows that it's really September 14th, but 7 00:00:45,598 --> 00:00:46,669 Suze: we didn't record this 8 00:00:46,750 --> 00:00:51,479 Suze: on September 14th because why? We're on our way back... 9 00:00:52,450 --> 00:00:53,380 KT: We're on a plane... 10 00:00:53,389 --> 00:00:56,159 Suze: We're on our way back from Spain. 11 00:00:56,169 --> 00:00:59,680 KT: Ok. So that's, that's really difficult when I just woke 12 00:00:59,689 --> 00:01:02,439 KT: up for you to tell me I'm on a plane. 13 00:01:02,740 --> 00:01:06,680 KT: So everyone knows that I recorded this today, but it's 14 00:01:06,690 --> 00:01:08,199 KT: not really today. 15 00:01:08,209 --> 00:01:11,839 Suze: The know it's not today. But we remember KT, we wanted 16 00:01:11,849 --> 00:01:15,509 Suze: to make sure that we had new podcasts for them 17 00:01:15,519 --> 00:01:20,230 Suze: while we were gone versus just playing the best of. 18 00:01:21,059 --> 00:01:25,410 KT: But those best of are great because they call it the best of. 19 00:01:26,029 --> 00:01:31,110 Suze: It is September 14th when you're listening to this 2023. 20 00:01:31,120 --> 00:01:33,830 KT: I can't wait to tell you all about our trip. 21 00:01:33,839 --> 00:01:37,449 Suze: Well, that will be the very next ask KT and 22 00:01:37,459 --> 00:01:42,940 Suze: Suze Anything will be on September 21st, we will have 23 00:01:42,949 --> 00:01:46,129 Suze: been back and all will be great. 24 00:01:46,959 --> 00:01:47,930 KT: What are you looking like? 25 00:01:47,940 --> 00:01:50,709 KT: Is it that, is it that long? The 21st... 26 00:01:51,739 --> 00:01:55,330 Suze: Today is the 14th and seven days from today is what? 27 00:01:58,250 --> 00:02:02,180 KT: It's... Yeah, but, ok. All right. I just woke up. Let's go! 28 00:02:04,169 --> 00:02:05,779 Suze: Do you want me to start all over again? 29 00:02:06,120 --> 00:02:07,910 KT: Let's go. Keep going, Suze. 30 00:02:07,919 --> 00:02:12,639 Suze: Anyway, this is when you're listening to this, September 14th 31 00:02:12,649 --> 00:02:17,538 Suze: 2023 welcome everybody to the Women and Money podcast and 32 00:02:18,830 --> 00:02:22,889 Suze: everybody smart enough to listen. This is the Ask KT 33 00:02:22,899 --> 00:02:26,960 Suze: and Suze edition. This is where if you write in 34 00:02:27,258 --> 00:02:31,179 Suze: to Ask Suze podcast at gmail dot com, 35 00:02:31,508 --> 00:02:35,850 Suze: you ask a question. If KT chooses it or I 36 00:02:35,860 --> 00:02:40,720 Suze: ask her to choose it, then she will read it 37 00:02:40,729 --> 00:02:43,279 Suze: and your question will be answered. 38 00:02:43,288 --> 00:02:48,160 KT: You're so, you're so perky today. You're so perky. 39 00:02:48,949 --> 00:02:53,360 KT: Usually, usually I'm a lot perkier than you. But no, 40 00:02:53,369 --> 00:02:56,179 KT: I had a really, I didn't sleep enough. 41 00:02:56,190 --> 00:02:57,139 Suze: And why was that? 42 00:02:57,149 --> 00:03:00,440 KT: I don't know, I just didn't sleep enough. Ok. Are 43 00:03:00,449 --> 00:03:01,638 KT: we ready to begin? 44 00:03:03,169 --> 00:03:03,830 Suze: I think so. 45 00:03:03,839 --> 00:03:08,080 KT: Here we go. First question is from Donna. Thank you 46 00:03:08,089 --> 00:03:11,829 KT: for all you do to help everyone with our finances. 47 00:03:11,839 --> 00:03:15,470 KT: Listening to you both makes it fun to learn. I'm 48 00:03:15,479 --> 00:03:18,509 KT: glad I'm glad we make it fun for you. So, 49 00:03:18,630 --> 00:03:22,949 KT: so Suze, Donna has a traditional Ira a Roth Ira 50 00:03:22,960 --> 00:03:28,570 KT: and HSA, 401k. She knows that topic better than me. 51 00:03:28,830 --> 00:03:31,850 KT: But here's the good news, Suze. She left this to 52 00:03:31,860 --> 00:03:36,350 KT: her three kids. So outside and other accounts she has 53 00:03:36,360 --> 00:03:40,750 KT: outside of retirement, her saving, checking her treasury direct for 54 00:03:40,759 --> 00:03:45,179 KT: treasury bills. All of these she made the trust the owner. 55 00:03:45,190 --> 00:03:51,149 KT: Now this is number six house title. This is just 56 00:03:51,160 --> 00:03:54,940 KT: in my name. Are these correct? This is my quizzie 57 00:03:54,949 --> 00:03:56,300 KT: to you, Suze 58 00:03:56,850 --> 00:03:59,839 KT: is number six. Correct. Yes or no. 59 00:04:00,330 --> 00:04:01,210 Suze: No. 60 00:04:01,690 --> 00:04:04,639 KT: Ding, ding, ding, ding, ding, ding, ding. I want to 61 00:04:04,649 --> 00:04:05,479 KT: do that. 62 00:04:05,929 --> 00:04:10,009 KT: Ok. She got it right. Everybody. Number six is not 63 00:04:10,020 --> 00:04:12,148 KT: correct because it should be in the trust as well. 64 00:04:12,160 --> 00:04:15,169 Suze: All right. So Donna, here's what you need to understand. 65 00:04:15,179 --> 00:04:19,149 Suze: You've done such a great job taking care of your kids, 66 00:04:19,160 --> 00:04:23,320 Suze: making them the beneficiaries, the pay on death account, blah, blah, blah, 67 00:04:23,329 --> 00:04:29,500 Suze: love that. However, for yourself, you've taken title to your 68 00:04:29,510 --> 00:04:30,250 Suze: home 69 00:04:30,738 --> 00:04:34,589 Suze: according to the email KT just gave me in just 70 00:04:34,600 --> 00:04:39,390 Suze: your name and now you are leaving your kids and 71 00:04:39,399 --> 00:04:43,250 Suze: you in jeopardy. Why is that? 72 00:04:43,510 --> 00:04:48,600 Suze: That is because you don't die, you become incapacitated. How 73 00:04:48,609 --> 00:04:51,579 Suze: many times have I told all of you? It's not 74 00:04:51,589 --> 00:04:56,190 Suze: just about leaving something easily to your kids. You have 75 00:04:56,200 --> 00:04:59,230 Suze: to make sure that you have taken care of yourself. 76 00:04:59,238 --> 00:05:01,940 Suze: And as you get older, you can get sick, you 77 00:05:01,950 --> 00:05:02,540 Suze: can have a stroke, 78 00:05:02,725 --> 00:05:04,845 Suze: you can have an accident, you can have an accident 79 00:05:04,855 --> 00:05:09,165 Suze: at any time. You can become incapacitated at any time. 80 00:05:09,255 --> 00:05:12,724 Suze: And if that happens, who's going to pay your bills, 81 00:05:12,734 --> 00:05:15,774 Suze: who's gonna write your checks? And the fact that your 82 00:05:15,785 --> 00:05:19,024 Suze: house may need to be sold, you might not be 83 00:05:19,035 --> 00:05:22,704 Suze: able to sell it because you're incapacitated and you can't 84 00:05:22,714 --> 00:05:26,065 Suze: sign the deed to be able to sell it. 85 00:05:26,470 --> 00:05:29,679 Suze: So therefore your kids now are going to have to 86 00:05:29,690 --> 00:05:34,760 Suze: declare you incompetent, get a conservatorship for you and blah, blah, blah. 87 00:05:34,790 --> 00:05:36,859 Suze: Your kids don't do that. They have to go down 88 00:05:36,869 --> 00:05:39,220 Suze: to probate court and probate court will do that. 89 00:05:39,589 --> 00:05:43,399 Suze: You have now entered really a living nightmare since you've 90 00:05:43,410 --> 00:05:47,000 Suze: taken such good care of your kids. Why can't you 91 00:05:47,010 --> 00:05:50,260 Suze: just put your house in the title of the living 92 00:05:50,269 --> 00:05:53,760 Suze: revocable trust? Just that simple. And by the way, I 93 00:05:53,769 --> 00:05:56,410 Suze: just have to say KT, I don't even know if 94 00:05:56,420 --> 00:05:59,079 Suze: you know this, but Hay House 95 00:05:59,450 --> 00:06:03,820 Suze: has totally redone. The must have documents and now they've 96 00:06:03,829 --> 00:06:08,500 Suze: put them back on sale again at Must have Docs dot com. 97 00:06:08,510 --> 00:06:10,539 KT: Oh, she should go get a must have document. 98 00:06:10,950 --> 00:06:13,510 Suze: No, she already has a trust, KT, she has a 99 00:06:13,519 --> 00:06:15,899 Suze: need to buy a new one. She's fine. But for 100 00:06:15,910 --> 00:06:17,540 Suze: those of you who don't. 101 00:06:17,799 --> 00:06:22,010 Suze: All right, you might want to listen to September 10th's 102 00:06:22,019 --> 00:06:26,049 Suze: podcast where I talk about it, but I, I don't 103 00:06:26,059 --> 00:06:28,829 Suze: know if you knew that KT, Hay House has it 104 00:06:28,839 --> 00:06:32,368 Suze: back on sale. They totally redid everything... 105 00:06:33,390 --> 00:06:35,229 KT: And they made it really easy, right? 106 00:06:35,420 --> 00:06:39,140 Suze: I educate, they sell and they program. There you go. 107 00:06:40,380 --> 00:06:45,170 KT: So next question is from Pamela. Suze and KT, I 108 00:06:45,178 --> 00:06:46,690 KT: have a quick question 109 00:06:46,940 --> 00:06:51,640 KT: for the first time in three years. My escrow account 110 00:06:51,649 --> 00:06:56,609 KT: is short $204. What's an escrow account? 111 00:06:56,940 --> 00:07:01,269 Suze: KT, somehow and I don't know why, when people get a mortgage, 112 00:07:01,609 --> 00:07:07,459 Suze: the banks usually talk them into why not combine your mortgage, 113 00:07:07,470 --> 00:07:11,760 Suze: your property tax payment and your insurance payment all in 114 00:07:11,769 --> 00:07:16,709 Suze: one escrow account. You pay us monthly, we'll hold it 115 00:07:16,720 --> 00:07:19,730 Suze: in an escrow account for you even though we make 116 00:07:19,739 --> 00:07:22,799 Suze: interest on it in most cases and we will pay 117 00:07:22,809 --> 00:07:24,890 Suze: it when it comes due and you don't have to 118 00:07:24,899 --> 00:07:29,720 Suze: worry about it, obviously, because insurance is great. 119 00:07:29,785 --> 00:07:34,114 Suze: The insurance went up for the first time ever. Right. 120 00:07:34,125 --> 00:07:40,274 Suze: Pamela is short $204 and the amount of money that 121 00:07:40,285 --> 00:07:43,795 Suze: she had been paying into this escrow account. So now 122 00:07:43,804 --> 00:07:47,535 Suze: she has to come up with an additional $204. What's 123 00:07:47,545 --> 00:07:48,315 Suze: her question? 124 00:07:48,445 --> 00:07:52,315 KT: So what is the benefit of paying it outright or 125 00:07:52,325 --> 00:07:55,565 KT: rolling it into my monthly mortgage payment in which I 126 00:07:55,575 --> 00:07:57,894 KT: would have to make a higher payment, 127 00:07:58,170 --> 00:08:01,079 KT: Suze, I have the money to pay it out right out. 128 00:08:01,089 --> 00:08:05,369 Suze: Pay it out right. Done. Done. Done. Done. There's no... 129 00:08:05,429 --> 00:08:07,480 KT: She said, what are the advantages or disadvantages. 130 00:08:07,500 --> 00:08:12,410 Suze: There are no advantages with an escrow account. You're just simply 131 00:08:12,420 --> 00:08:14,859 Suze: making interest with your money for 132 00:08:14,954 --> 00:08:19,515 Suze: the mortgage holder. Why not just pay it either outright 133 00:08:19,524 --> 00:08:22,024 Suze: in one lump sum? And when you do, by the way, 134 00:08:22,035 --> 00:08:28,165 Suze: it's usually cheaper. When you pay your insurance, either monthly 135 00:08:28,174 --> 00:08:31,605 Suze: or whatever it may be. They add about 8% to it. 136 00:08:32,200 --> 00:08:35,390 Suze: Right. Because you're doing it monthly versus all at once. 137 00:08:35,400 --> 00:08:38,189 Suze: So I would not have an escrow account. I would 138 00:08:38,200 --> 00:08:41,929 Suze: do it myself and earn interest on that money myself 139 00:08:41,940 --> 00:08:43,989 Suze: rather than the mortgage holder. Go on, KT. 140 00:08:44,919 --> 00:08:49,020 KT: Next is from Melissa. Hi, Suze and KT. I had 141 00:08:49,030 --> 00:08:53,250 KT: a family member pass earlier this year without a trust. 142 00:08:53,260 --> 00:08:56,070 KT: There you go, Suze. The executor of the 143 00:08:56,155 --> 00:09:00,005 KT: state was able to sell his house in a matter 144 00:09:00,015 --> 00:09:04,606 KT: of months without going through probate. I was told this 145 00:09:04,616 --> 00:09:07,776 KT: was due to a transfer on death deed. Yeah, you've 146 00:09:07,785 --> 00:09:11,466 KT: talked to. Suze's explained this before. I've never heard of 147 00:09:11,476 --> 00:09:14,846 KT: this before and when I Googled it, it seems to 148 00:09:14,856 --> 00:09:18,406 KT: be another way to pass your house onto your heirs 149 00:09:18,416 --> 00:09:20,026 KT: avoiding probate. 150 00:09:20,111 --> 00:09:23,242 KT: Could you speak to this and why or why not, 151 00:09:23,252 --> 00:09:26,242 KT: this might be an alternative to a trust? 152 00:09:26,252 --> 00:09:32,920 Suze: I actually addressed this with Donna a second ago because Melissa, 153 00:09:32,932 --> 00:09:37,911 Suze: if your only goal is to pass everything down to 154 00:09:37,921 --> 00:09:42,262 Suze: your kids without probate, fine. There's nothing wrong with doing 155 00:09:42,271 --> 00:09:43,961 Suze: it this way. However, 156 00:09:44,840 --> 00:09:49,400 Suze: if you want to protect yourself in case of an incapacity, 157 00:09:49,409 --> 00:09:53,830 Suze: a transfer on death will not do that because you're fine, 158 00:09:53,840 --> 00:09:54,929 Suze: if you've died, 159 00:09:55,440 --> 00:09:58,400 Suze: you don't have problems, the kids get everything. But if 160 00:09:58,409 --> 00:10:02,000 Suze: you don't die, you become ill, you become incapacitated. A 161 00:10:02,020 --> 00:10:09,000 Suze: TOD or transfer on death account will help you zippo. Not 162 00:10:09,010 --> 00:10:14,909 Suze: at all. So get yourself a living revocable trust. Must 163 00:10:14,929 --> 00:10:17,390 Suze: have docs dot com. Go on, KT. 164 00:10:17,859 --> 00:10:19,209 KT: Ok. This question. 165 00:10:19,364 --> 00:10:24,895 KT: Ready Suze and ready everyone listening. Listen up really carefully. 166 00:10:25,015 --> 00:10:28,354 KT: This is from Shell and the subject line which is 167 00:10:28,364 --> 00:10:31,054 KT: why I can't wait to read this to you, Suze. 168 00:10:31,065 --> 00:10:36,794 KT: Is Taylor Swift economy. So I keep reading. 169 00:10:36,804 --> 00:10:37,074 Suze: I love Taylor Swift. 170 00:10:37,085 --> 00:10:40,613 KT: I know... she loves. I do too, but I, I want 171 00:10:40,625 --> 00:10:43,174 KT: you to answer this and explain why 172 00:10:44,010 --> 00:10:49,709 KT: Taylor Swift Tour is boosting the economy and then Shell writes, 173 00:10:50,190 --> 00:10:53,780 KT: I can't understand how millions of people are spending an 174 00:10:53,789 --> 00:10:59,718 KT: average $1300 on the experience. While I'm happy for everyone 175 00:10:59,729 --> 00:11:02,939 KT: going to the shows. I don't see how for many 176 00:11:02,950 --> 00:11:06,679 KT: people it's a financially responsible decision. 177 00:11:06,960 --> 00:11:10,968 KT: I'm just trying to understand how the economy is boosted 178 00:11:11,059 --> 00:11:14,770 KT: by people going into debt and spending more money than 179 00:11:14,780 --> 00:11:18,289 KT: they should. I have always followed your rule to live 180 00:11:18,299 --> 00:11:22,650 KT: within my means and have savings. I think it's amazing 181 00:11:22,690 --> 00:11:25,090 KT: to splurge on the things we love. 182 00:11:25,260 --> 00:11:28,809 KT: When we have the resources, I'd like to save up 183 00:11:28,820 --> 00:11:32,869 KT: and spend on travel. It just seems backwards to me 184 00:11:32,890 --> 00:11:37,219 KT: that the government is encouraging us to blow our budgets. 185 00:11:37,280 --> 00:11:42,169 KT: Can you explain? So, Shell wants to know how does 186 00:11:42,179 --> 00:11:43,489 KT: Taylor Swift? 187 00:11:43,700 --> 00:11:47,330 KT: How's her tour boosting the economy? Suze, how many people 188 00:11:47,340 --> 00:11:48,950 KT: work for Taylor on that tour? 189 00:11:49,049 --> 00:11:52,630 Suze: Well, but that's not the answer here, KT... 190 00:11:55,390 --> 00:11:56,609 KT: No, I'm just pointing that out. 191 00:11:56,849 --> 00:11:58,869 Suze: No, but that's besides the point, 192 00:11:59,169 --> 00:12:03,929 Suze: it boosts the economy because when people go to see 193 00:12:03,940 --> 00:12:08,380 Suze: her concert after the concert, they then go out to eat, 194 00:12:08,400 --> 00:12:10,679 Suze: to go to the concert, they go and they buy 195 00:12:10,690 --> 00:12:14,309 Suze: clothes to go to the concert. They either Uber or 196 00:12:14,320 --> 00:12:17,090 Suze: they do whatever to go to the concert. Like many 197 00:12:17,099 --> 00:12:21,049 Suze: people I know flew to where her... We had friends, flew, 198 00:12:21,059 --> 00:12:24,960 Suze: flew all the way to Los Angeles with this woman, 199 00:12:24,969 --> 00:12:26,880 Suze: with her daughter, they could afford it. 200 00:12:27,159 --> 00:12:31,150 Suze: At least the mother could, right? And so the airlines 201 00:12:31,159 --> 00:12:37,539 Suze: make more money when something is that big, everybody makes 202 00:12:37,549 --> 00:12:42,169 Suze: money and it does boost the economy. Big time. 203 00:12:42,599 --> 00:12:44,549 KT: Bigger. She's bigger than Super Bowl. 204 00:12:44,559 --> 00:12:45,809 KT: She is bigger than Super Bowl 205 00:12:45,820 --> 00:12:47,469 KT: Taylor, You're bigger than Super Bowl. 206 00:12:47,479 --> 00:12:49,929 Suze: We, we've gone to a Taylor show. 207 00:12:50,479 --> 00:12:53,840 KT: Taylor, when you're in Miami, I'll come down, I'll boost it 208 00:12:53,849 --> 00:12:54,989 KT: for you. Taylor. 209 00:12:55,000 --> 00:12:57,890 Suze: Here's the thing that you need to understand. 210 00:12:59,289 --> 00:13:04,059 Suze: It doesn't have to make sense. But the thing is this, 211 00:13:04,070 --> 00:13:07,650 Suze: I'll never forget when I was on morning Joe. Maybe 212 00:13:07,659 --> 00:13:10,640 Suze: you'll remember this KT and maybe I've told this story 213 00:13:10,650 --> 00:13:15,320 Suze: before and it was during 2007, 2008, everything was going 214 00:13:15,330 --> 00:13:21,020 Suze: to hell and people were what were just losing their houses, 215 00:13:21,030 --> 00:13:23,059 Suze: losing their jobs, everything. 216 00:13:23,590 --> 00:13:27,880 Suze: And I went on to say, stop spending money, everybody 217 00:13:27,890 --> 00:13:31,449 Suze: stop going out to eat, stop doing this, stop doing that. 218 00:13:31,679 --> 00:13:37,320 Suze: And that was my spiel. Then before I signed off 219 00:13:37,330 --> 00:13:41,349 Suze: the air or cut my connection. The next guest came 220 00:13:41,359 --> 00:13:45,559 Suze: on and said, I couldn't disagree with Suze more. 221 00:13:45,919 --> 00:13:50,109 Suze: If people stop spending money and getting further into debt, 222 00:13:50,119 --> 00:13:53,590 Suze: then the economy is going to suffer. Because if people 223 00:13:53,599 --> 00:13:57,210 Suze: don't have money and they don't spend money, nobody makes money. 224 00:13:57,239 --> 00:14:00,400 Suze: All right, that was the position. I said to the 225 00:14:00,409 --> 00:14:04,228 Suze: producer who knew I hadn't been disconnected yet, put me 226 00:14:04,239 --> 00:14:07,369 Suze: back on the air. I go back on the air 227 00:14:07,380 --> 00:14:09,968 Suze: and I have this huge fight on the air with 228 00:14:09,979 --> 00:14:10,909 Suze: this person. 229 00:14:11,760 --> 00:14:17,390 Suze: So I've never understood why. In fact, one would go 230 00:14:17,400 --> 00:14:22,750 Suze: into debt to do things. However, the whole world does that, Shell. 231 00:14:23,630 --> 00:14:26,690 Suze: They go on vacation when they don't have the money to, 232 00:14:26,760 --> 00:14:28,599 Suze: they go out to eat when they don't have the 233 00:14:28,609 --> 00:14:32,130 Suze: money to, they all put everything on their credit cards 234 00:14:32,140 --> 00:14:35,650 Suze: and they pay the minimum payment due thinking they're keeping 235 00:14:35,659 --> 00:14:36,130 Suze: up 236 00:14:36,419 --> 00:14:41,409 Suze: when they're not. So you just live your life exactly 237 00:14:41,419 --> 00:14:44,539 Suze: like you live it where you save up, you don't 238 00:14:44,549 --> 00:14:48,130 Suze: get into debt and that's your life. The people that 239 00:14:48,140 --> 00:14:51,630 Suze: are going into debt and spending more money they have 240 00:14:51,640 --> 00:14:54,969 Suze: or my favorite saying is they're spending money they don't 241 00:14:54,979 --> 00:14:58,059 Suze: have to impress people they don't even know or like, 242 00:14:58,239 --> 00:15:02,950 Suze: eventually trust me that will catch up with them. However, 243 00:15:02,960 --> 00:15:04,169 Suze: from what I've heard, 244 00:15:04,440 --> 00:15:07,340 Suze: it's sure worth going to that concert. 245 00:15:07,349 --> 00:15:09,450 KT: I heard it's unbelievable. 246 00:15:09,760 --> 00:15:12,020 Suze: But is it worth the KT to get into debt 247 00:15:12,030 --> 00:15:12,989 Suze: to go to it. 248 00:15:13,580 --> 00:15:15,390 Suze: I don't think it's worth to go into debt to 249 00:15:15,400 --> 00:15:16,289 Suze: do anything. 250 00:15:16,340 --> 00:15:20,039 Suze: Then done, and there's the answer to that question. Next KT. 251 00:15:20,260 --> 00:15:22,830 KT: Next question, Suze is from Tony. 252 00:15:23,179 --> 00:15:26,530 KT: I would love five minutes of your time for advice 253 00:15:26,539 --> 00:15:31,169 KT: on a situation with my mom who's receiving 24 hour 254 00:15:31,179 --> 00:15:36,640 KT: care at home. So Tony's mom is 97. So my 255 00:15:36,900 --> 00:15:40,080 KT: mom and she said this is a situation with my 256 00:15:40,090 --> 00:15:43,919 KT: mom who's receiving 24 hour care at home. She's out 257 00:15:43,929 --> 00:15:47,429 KT: of money, Suze, but she doesn't want to move to 258 00:15:47,440 --> 00:15:51,270 KT: assisted living and doesn't want a reverse mortgage. 259 00:15:51,520 --> 00:15:54,919 KT: My wife and I are considering taking money out of 260 00:15:54,929 --> 00:16:00,250 KT: our savings and 403 B to honor mom's wishes to 261 00:16:00,260 --> 00:16:03,640 KT: die at home. After the house is sold, we get 262 00:16:03,650 --> 00:16:07,780 KT: our money back with interest and taxes repaid and then 263 00:16:07,789 --> 00:16:11,289 KT: this is really sweet everybody and maybe you can look 264 00:16:11,299 --> 00:16:15,039 KT: it up and, and, and support. Tony. Tony is an artist. 265 00:16:15,169 --> 00:16:18,390 KT: He said, Suze, for your advice, I would give you 266 00:16:18,400 --> 00:16:20,109 KT: a small painting. 267 00:16:20,359 --> 00:16:23,940 KT: I'm a professional artist with a master's from UCLA. 268 00:16:23,950 --> 00:16:25,380 Suze: Why just a small... 269 00:16:26,219 --> 00:16:28,320 KT: Small to medium size, 270 00:16:28,409 --> 00:16:31,070 Suze: Why not large, Tony. Are you being stingy? 271 00:16:31,190 --> 00:16:35,020 KT: So anyway, I thought that was really kind and he 272 00:16:35,030 --> 00:16:38,150 KT: sounds like a real special man. But Tony, listen to 273 00:16:38,159 --> 00:16:41,530 KT: Suze's advice. Trust me, she's always right. 274 00:16:42,429 --> 00:16:43,479 Suze: What made you say that? 275 00:16:43,489 --> 00:16:45,210 KT: Because you are in this case. 276 00:16:45,280 --> 00:16:51,760 Suze: Tony, here's my problem, right? Your mom is currently receiving 277 00:16:51,770 --> 00:16:57,909 Suze: 24 hour care at home. Now, I know exactly what 278 00:16:57,919 --> 00:17:02,659 Suze: that costs because I had to do that as well 279 00:17:02,669 --> 00:17:08,599 Suze: with my mother and it could easily be 10 15 280 00:17:08,609 --> 00:17:11,439 Suze: $20,000 a month. 281 00:17:12,239 --> 00:17:15,339 Suze: So I don't know how much longer your mom is 282 00:17:15,349 --> 00:17:19,310 Suze: going to live. So those bills I can tell you 283 00:17:19,319 --> 00:17:23,719 Suze: over the years that my mom did that cost me 284 00:17:23,729 --> 00:17:31,209 Suze: over $2.5 million. And I remember thinking to myself when 285 00:17:31,219 --> 00:17:33,930 Suze: I first started to do it. All right, mama's not 286 00:17:33,939 --> 00:17:36,958 Suze: doing so well. I'm sure you know, she wants to 287 00:17:36,969 --> 00:17:39,910 Suze: die at home. What she did just like your mom 288 00:17:40,189 --> 00:17:43,938 Suze: that this will probably end sooner than later. It did not, 289 00:17:43,949 --> 00:17:48,810 Suze: it went on and on and on thankfully because I 290 00:17:48,819 --> 00:17:51,208 Suze: didn't want my mama to die. Yeah, we had her, 291 00:17:51,750 --> 00:17:54,599 Suze: we had her for a long time, but it ended 292 00:17:54,609 --> 00:18:04,000 Suze: costing me $2.5 million. Are you prepared that that may 293 00:18:04,010 --> 00:18:08,920 Suze: be what it ends up costing you? All right. Number one, 294 00:18:09,380 --> 00:18:13,890 Suze: number two, if you take a loan out of your 295 00:18:13,900 --> 00:18:15,179 Suze: 403 B 296 00:18:15,869 --> 00:18:21,459 Suze: to honor your mom's wishes. The problem with that is 297 00:18:21,469 --> 00:18:25,218 Suze: if something happens to you, you lose your job, you 298 00:18:25,229 --> 00:18:28,770 Suze: get ill, you can't work. Any money you took out 299 00:18:28,780 --> 00:18:32,209 Suze: of your 403 B as a loan will be due 300 00:18:32,219 --> 00:18:35,958 Suze: and payable within a very short period of time. If 301 00:18:35,969 --> 00:18:38,719 Suze: you don't have that money to repay it, 302 00:18:39,880 --> 00:18:43,829 Suze: number one, you're in trouble, but number two, you will 303 00:18:43,839 --> 00:18:47,829 Suze: owe ordinary income taxes on that money as well. And 304 00:18:47,839 --> 00:18:51,399 Suze: if you're not 55 years of age or older, when 305 00:18:51,410 --> 00:18:54,800 Suze: you had to leave service, you'll owe a 10% penalty 306 00:18:54,810 --> 00:18:59,430 Suze: as well. It's really hard right now because if you 307 00:18:59,439 --> 00:19:02,329 Suze: use up your savings, if you take money out of 308 00:19:02,339 --> 00:19:05,449 Suze: your 403 B, if the markets all of a sudden 309 00:19:05,459 --> 00:19:07,709 Suze: skyrocket on you, 310 00:19:07,969 --> 00:19:13,159 Suze: that's so much growth right now, Tony, of money that 311 00:19:13,170 --> 00:19:16,500 Suze: I know you think you will be repaid when mom 312 00:19:16,510 --> 00:19:20,689 Suze: sells the house. But there's never any guarantee that a 313 00:19:20,699 --> 00:19:27,390 Suze: house absolutely continues to hold value. What if a hurricane comes, 314 00:19:27,400 --> 00:19:30,839 Suze: a fire, whatever it may be? So therefore, 315 00:19:31,479 --> 00:19:35,780 Suze: if your mother wants to stay at home because she 316 00:19:35,790 --> 00:19:39,409 Suze: doesn't want to move to an assisted living facility, ok? 317 00:19:39,829 --> 00:19:42,589 Suze: And she has a home that has a lot of 318 00:19:42,599 --> 00:19:43,589 Suze: equity in it. 319 00:19:44,469 --> 00:19:47,510 Suze: You need to have, in my opinion, a talk with 320 00:19:47,520 --> 00:19:52,300 Suze: her and she needs to do a reverse mortgage. I'm 321 00:19:52,310 --> 00:19:55,718 Suze: sure she doesn't want to do a reverse mortgage because 322 00:19:55,729 --> 00:19:59,500 Suze: in her head, she wants to leave you that home 323 00:19:59,510 --> 00:20:03,000 Suze: and everything that it's worth so that you'll be ok. 324 00:20:03,640 --> 00:20:06,310 Suze: But she has to understand that in order to keep 325 00:20:06,319 --> 00:20:09,329 Suze: her there for you to take money from the places 326 00:20:09,339 --> 00:20:13,770 Suze: you want to, could end up being very, very dangerous. 327 00:20:13,939 --> 00:20:17,050 Suze: So I love that mama wants to stay at home. 328 00:20:17,069 --> 00:20:20,250 Suze: But if the only way she can stay at home 329 00:20:21,140 --> 00:20:25,198 Suze: is for her to either do a reverse mortgage and, 330 00:20:25,209 --> 00:20:28,800 Suze: or you use your savings and you take money as 331 00:20:28,810 --> 00:20:31,629 Suze: a loan from your 403 B. She needs to do 332 00:20:31,640 --> 00:20:35,349 Suze: the reverse mortgage. Going back to my mother for one second, 333 00:20:35,459 --> 00:20:39,560 Suze: my money that kept her going, didn't come out of savings. 334 00:20:39,569 --> 00:20:41,869 Suze: It came out of the income that I was earning 335 00:20:41,880 --> 00:20:43,448 Suze: and it wasn't a big deal to me. 336 00:20:44,130 --> 00:20:46,389 Suze: All right. It sounds to me if you have to 337 00:20:46,400 --> 00:20:51,579 Suze: use your savings and your 403 B, it's a big deal. 338 00:20:51,589 --> 00:20:52,670 Suze: KT next. 339 00:20:52,680 --> 00:20:55,550 KT: All right. So the next question is from Kelly. I'm 340 00:20:55,560 --> 00:20:59,180 KT: writing to you for advice, Suze. I lost my husband 341 00:20:59,189 --> 00:21:03,958 KT: of 31 years after a long battle with skin cancer. 342 00:21:04,199 --> 00:21:08,458 KT: He was only 57 years old, but he earned six figures. 343 00:21:08,469 --> 00:21:09,459 KT: He died. 344 00:21:09,489 --> 00:21:12,359 Suze: I, I saw this one 345 00:21:12,800 --> 00:21:15,629 Suze: and she ended up sending me a picture of her 346 00:21:15,640 --> 00:21:18,579 Suze: and her husband. I'll show it to you. Such a 347 00:21:18,589 --> 00:21:21,849 Suze: good looking couple. So sweet. Anyway, go on. 348 00:21:21,859 --> 00:21:26,050 KT: So he died on disability. I just recently found out 349 00:21:26,060 --> 00:21:30,179 KT: that I can draw on his SSDI at 60 she 350 00:21:30,189 --> 00:21:33,479 KT: said I'll be 59 years old next month. I know 351 00:21:33,489 --> 00:21:36,069 KT: that you're going to say, don't take it at 60. 352 00:21:36,079 --> 00:21:37,649 KT: But hear me out, Suze, 353 00:21:37,869 --> 00:21:42,958 KT: my husband passed at 57. Never got to retire. And 354 00:21:42,969 --> 00:21:47,530 KT: my mother started having strokes at 53 spent the last 355 00:21:47,540 --> 00:21:52,319 KT: 14 years of her life in a nursing home who 356 00:21:52,619 --> 00:21:57,079 KT: I'm scared I will never get to retire. So she's 357 00:21:57,089 --> 00:21:58,170 KT: asking your advice. 358 00:21:58,180 --> 00:22:01,010 Suze: Yeah, let me see the email for a second. All right. 359 00:22:01,369 --> 00:22:05,000 Suze: So she also says on here KT, 360 00:22:05,260 --> 00:22:10,689 Suze: that her husband's disability is $2200 a month right now 361 00:22:10,939 --> 00:22:16,150 Suze: and her social security at 70 is $2200 a month. 362 00:22:16,489 --> 00:22:20,040 Suze: So, Kelly, while you may think that I would say no, no, 363 00:22:20,050 --> 00:22:24,060 Suze: wait till 70. I'm not gonna say that to you 364 00:22:24,180 --> 00:22:27,099 Suze: because what you need to do is just continue to 365 00:22:27,109 --> 00:22:33,688 Suze: take his social security disability at 60 for you. That's 366 00:22:33,699 --> 00:22:37,958 Suze: $2200 a month all the way until you 367 00:22:38,060 --> 00:22:41,530 Suze: are 70. When in fact, what will happen, you will 368 00:22:41,540 --> 00:22:48,189 Suze: then convert over to your own social security at $2200 369 00:22:48,199 --> 00:22:52,589 Suze: a month. That's what you are going to do. Survivor 370 00:22:52,599 --> 00:22:56,459 Suze: benefits are very, very different KT than divorced and things 371 00:22:56,469 --> 00:22:59,569 Suze: like that. So that's why you're going to do that. Kelly, 372 00:23:00,250 --> 00:23:04,699 KT: This is from Lisa and it's my last question, Suze. Hi, Suze. 373 00:23:04,709 --> 00:23:07,349 KT: I'm a 50 year old single mom. I have a 374 00:23:07,359 --> 00:23:15,139 KT: stable $100,000 a year salary job. And I've got 100,000 375 00:23:15,150 --> 00:23:17,420 KT: K in my 401k. 376 00:23:17,770 --> 00:23:22,919 KT: I recently left a relationship and now have $60,000 in 377 00:23:22,930 --> 00:23:27,899 KT: credit card debt, mostly from overspending to keep up appearances 378 00:23:27,910 --> 00:23:31,719 KT: with my ex partner who had a higher income 379 00:23:32,000 --> 00:23:35,189 KT: now I realize I was breaking the first law of 380 00:23:35,199 --> 00:23:39,750 KT: money and hiding my spending. Very soon, I will have 381 00:23:39,780 --> 00:23:43,780 KT: 100,000 K from the sale of our home. Should I 382 00:23:43,790 --> 00:23:48,448 KT: immediately pay off my credit card debt with that house income? 383 00:23:48,760 --> 00:23:49,609 KT: Do you want to ask me this as a quizzie, Suze? 384 00:23:50,969 --> 00:23:51,709 Suze: No. 385 00:23:51,810 --> 00:23:56,849 KT: Ok. I would say I pay it off, pay it off. 386 00:23:56,859 --> 00:24:01,209 Suze: Yeah. So Lisa, the greatest thing is you learned a 387 00:24:01,219 --> 00:24:05,849 Suze: priceless lesson. I mean, how many times seriously was I 388 00:24:05,859 --> 00:24:08,819 Suze: in a relationship? I'll never forget with this woman by 389 00:24:08,829 --> 00:24:09,520 Suze: the name of Nonny. 390 00:24:10,540 --> 00:24:14,359 Suze: And Nonny was a very, very wealthy woman, although I'm 391 00:24:14,369 --> 00:24:16,699 Suze: 10 times wealthier than her right now. But that's besides 392 00:24:16,709 --> 00:24:20,349 Suze: the point, right? But, and I tried to keep up 393 00:24:20,359 --> 00:24:24,050 Suze: with her so much. I got myself into so much 394 00:24:24,060 --> 00:24:28,389 Suze: debt because I wanted to impress her. That's where I 395 00:24:28,400 --> 00:24:31,069 Suze: came up with a lot of these laws of money 396 00:24:31,219 --> 00:24:33,069 Suze: because I lived them. 397 00:24:33,739 --> 00:24:37,670 Suze: I lived the same way years and years and years ago. 398 00:24:37,930 --> 00:24:39,930 Suze: So we all have to go through it. 399 00:24:40,119 --> 00:24:44,729 Suze: But once I learned that lesson, like you've just learned it, Lisa, 400 00:24:44,750 --> 00:24:49,770 Suze: now you are on the path to prosperity. So, yes, sweetheart. 401 00:24:49,780 --> 00:24:55,369 Suze: When in fact, you sell the house, take $60,000 of it, 402 00:24:55,380 --> 00:24:59,089 Suze: pay off your credit card debt and then just go 403 00:24:59,099 --> 00:25:04,290 Suze: from there. You are 50 years of age, you are 404 00:25:04,300 --> 00:25:06,250 Suze: a single mom. 405 00:25:06,550 --> 00:25:12,188 Suze: That is exactly when I met KT. Not that I'm 406 00:25:12,199 --> 00:25:18,040 Suze: a mom but, but, and truthfully so much wealth came 407 00:25:18,140 --> 00:25:21,680 Suze: after that. It's not even funny because I did stand 408 00:25:21,689 --> 00:25:22,680 Suze: in my truth 409 00:25:23,380 --> 00:25:28,869 Suze: and financial freedom, baby. Yeah. Financing is sweeter than financial freedom. 410 00:25:28,880 --> 00:25:33,959 Suze: But financial freedom comes with the freedom of truth, the 411 00:25:33,969 --> 00:25:37,629 Suze: freedom of standing in your truth, the freedom of not 412 00:25:37,640 --> 00:25:41,150 Suze: being afraid to just be who you are. The freedom 413 00:25:41,160 --> 00:25:45,159 Suze: of defining yourself by who you are and not by 414 00:25:45,170 --> 00:25:48,569 Suze: what you have when you define yourself by what you 415 00:25:48,579 --> 00:25:52,250 Suze: have or what people think you have. You are living 416 00:25:52,260 --> 00:25:53,189 Suze: a lie 417 00:25:53,420 --> 00:25:58,609 Suze: and you will pay the price. All right, it's quizzie time. 418 00:25:59,040 --> 00:26:03,449 Suze: This is a simple one. All right. All of you 419 00:26:03,459 --> 00:26:06,569 Suze: should be able to get this correct. 420 00:26:07,199 --> 00:26:08,938 Suze: And it comes from Kathy. 421 00:26:09,430 --> 00:26:12,569 KT: Wait, I have to just say something. My good friend 422 00:26:12,579 --> 00:26:15,760 KT: Jennifer wrote to me. She loved one of your. It 423 00:26:15,770 --> 00:26:19,449 KT: wasn't a quizzie, it was a Sunday school but all 424 00:26:19,459 --> 00:26:22,109 KT: she said she didn't get any of the questions right. 425 00:26:22,119 --> 00:26:24,349 Suze: Oh, Jennifer Littlehalls. I love my Jennifer. 426 00:26:24,359 --> 00:26:28,089 KT: We love Jennifer. She listens to every podcast. I laughed 427 00:26:28,099 --> 00:26:31,688 KT: so hard. I said Suze, Suze Jennifer got them all wrong. 428 00:26:31,699 --> 00:26:34,589 KT: Just like me. Finally, I have a soulmate. 429 00:26:35,979 --> 00:26:42,640 Suze: All right. This is from Kathy. All right. Everybody think about this. 430 00:26:42,650 --> 00:26:47,250 Suze: The truth is every time KT asks me a question, 431 00:26:47,680 --> 00:26:51,910 Suze: you should think about how you would answer that question. 432 00:26:52,599 --> 00:26:56,680 Suze: But now I'm asking KT a question which means I'm 433 00:26:56,689 --> 00:26:59,910 Suze: asking all of you a question. You need to know 434 00:26:59,920 --> 00:27:01,369 Suze: how to answer this. 435 00:27:02,329 --> 00:27:07,530 Suze: Kathy says I keep getting mail for term life insurance. 436 00:27:08,079 --> 00:27:12,569 Suze: I know how you feel about term life per your podcast. 437 00:27:12,810 --> 00:27:16,729 Suze: I love term life. Everybody. If I am not married, 438 00:27:17,069 --> 00:27:20,550 Suze: my house is paid for and I am still working 439 00:27:20,599 --> 00:27:24,800 Suze: and will until I am 70 11 years to go. Yay. 440 00:27:24,849 --> 00:27:27,689 Suze: Do I even need a life insurance policy? 441 00:27:28,050 --> 00:27:31,520 Suze: My answer is no, but I would love to hear 442 00:27:31,530 --> 00:27:35,020 Suze: what your thoughts are on this. Don't answer yet. 443 00:27:35,869 --> 00:27:39,609 Suze: Right. She's not going to be 70 for 10 more years. 444 00:27:39,619 --> 00:27:45,680 Suze: She's only 60. Right. Right. Her house is paid for. 445 00:27:46,089 --> 00:27:51,400 Suze: Does she need a term life insurance policy? 446 00:27:51,410 --> 00:27:51,739 KT: Does she have children? 447 00:27:52,469 --> 00:27:54,859 Suze: She didn't say but I have a feeling she doesn't 448 00:27:54,869 --> 00:27:57,339 Suze: because she says I'm not married and I think she 449 00:27:57,349 --> 00:27:59,719 Suze: would have said if she had because she said all 450 00:27:59,729 --> 00:28:00,500 Suze: the other details. 451 00:28:01,040 --> 00:28:01,859 KT: Are you ready? 452 00:28:02,319 --> 00:28:03,669 KT: Am I ready to answer? 453 00:28:03,989 --> 00:28:04,790 Suze: I don't know. Are you? 454 00:28:04,920 --> 00:28:07,910 KT: I'm ready to answer. No, I don't think she needs it. 455 00:28:09,060 --> 00:28:11,819 Suze: Ding, ding, ding, ding, ding, ding, ding, ding, ding, ding, ding, 456 00:28:11,829 --> 00:28:18,430 Suze: listen to me. Everybody. You do not need life insurance 457 00:28:18,439 --> 00:28:22,479 Suze: of any kind. If you don't have anybody that is 458 00:28:22,489 --> 00:28:25,909 Suze: financially dependent upon you. 459 00:28:26,640 --> 00:28:31,949 Suze: Zippo, so don't waste your money on life insurance. At 460 00:28:32,000 --> 00:28:36,390 Suze: that point, I don't care even if it's term insurance. 461 00:28:36,489 --> 00:28:41,260 Suze: So if somebody is financially dependent on you, a spouse, 462 00:28:41,270 --> 00:28:45,800 Suze: a parent your Children, then term life insurance is the 463 00:28:45,810 --> 00:28:49,520 Suze: way to go. But if you don't owe any money, 464 00:28:49,530 --> 00:28:52,439 Suze: you're not married, you don't have any beneficiaries. You don't 465 00:28:52,449 --> 00:28:53,520 Suze: personally care. 466 00:28:53,829 --> 00:28:59,839 Suze: Not your problem. Don't let anybody sell you insurance that 467 00:28:59,849 --> 00:29:04,238 Suze: you don't need. All right. KT how's it feel to 468 00:29:04,250 --> 00:29:05,780 Suze: be back now in the States? 469 00:29:05,790 --> 00:29:06,760 KT: Jet lagged. 470 00:29:08,520 --> 00:29:13,949 Suze: All right. I hope all of you have enjoyed big time, 471 00:29:13,959 --> 00:29:18,930 Suze: the prerecording that we did for all of you also. 472 00:29:18,939 --> 00:29:22,119 Suze: I want you all to remember that you have till 473 00:29:22,130 --> 00:29:29,010 Suze: December 31st, 2023 to do the kids savings account at 474 00:29:29,020 --> 00:29:33,800 Suze: Alliant Credit Union, as well as the teens checking account 475 00:29:33,810 --> 00:29:34,510 Suze: and savings 476 00:29:34,599 --> 00:29:38,619 Suze: account. Go to my alliant dot com. Check it out. 477 00:29:38,630 --> 00:29:41,770 Suze: You put in $100 a month every month for 12 478 00:29:41,780 --> 00:29:47,540 Suze: consecutive months, they will get $100. You need to make 479 00:29:47,550 --> 00:29:52,010 Suze: finances a family affair and this is only gonna last 480 00:29:52,020 --> 00:29:57,030 Suze: till the end of December. So please don't miss this opportunity, 481 00:29:57,140 --> 00:29:59,050 Suze: but until 482 00:29:59,719 --> 00:30:05,209 Suze: our next podcast, which will be with us really in Florida, 483 00:30:05,219 --> 00:30:09,290 Suze: back from Spain where we'll tell you all about it 484 00:30:09,300 --> 00:30:12,750 Suze: back from Italy where we'll tell you all about it. 485 00:30:13,069 --> 00:30:16,199 Suze: There's only one thing that we want you to say 486 00:30:16,209 --> 00:30:21,640 Suze: every single day and that is today. Wherever I go, 487 00:30:21,800 --> 00:30:28,319 KT: I will create a more joyful, peaceful and loving world. 488 00:30:28,349 --> 00:30:32,920 Suze: And if you do that, I promise you you will 489 00:30:32,930 --> 00:30:35,329 Suze: be unstoppable. 490 00:30:40,150 --> 00:30:41,469 Intro/Outro: Music Out.