1 00:00:07,469 --> 00:00:12,069 Suze: January 29th, 2026. Welcome everybody to the Women and Money 2 00:00:12,069 --> 00:00:15,090 Suze: podcast and Everybody Smart enough to listen. 3 00:00:16,489 --> 00:00:17,209 Suze: What is today, KT? 4 00:00:18,250 --> 00:00:24,329 KT: Today is a great day, Suze. It's Oprah's birthday. Happy birthday, Oprah. 5 00:00:24,690 --> 00:00:25,370 KT: Wherever you are. 6 00:00:26,010 --> 00:00:28,909 Suze: You know, out of all the people in my life 7 00:00:29,290 --> 00:00:31,290 Suze: that if I were gonna name one person. 8 00:00:32,069 --> 00:00:36,159 Suze: That contributed the most to Suze Orman becoming Suze Orman, 9 00:00:36,470 --> 00:00:37,630 Suze: wouldn't you say it had to be Oprah? 10 00:00:37,630 --> 00:00:42,299 KT: Absolutely. I mean, that's without a doubt. Suze and Oprah, like, 11 00:00:42,470 --> 00:00:43,528 KT: you know, bread and butter. 12 00:00:44,259 --> 00:00:46,549 Suze: Yeah. Wanna tell everybody a secret about me and the 13 00:00:46,549 --> 00:00:50,380 Suze: Oprah Winfrey show and the 30 shows I did. How many, 14 00:00:50,509 --> 00:00:51,869 Suze: because most of them were taped. 15 00:00:52,348 --> 00:00:55,669 Suze: Right. How many did I ever see? 16 00:00:56,150 --> 00:00:59,909 KT: None, but I have them all. Matter of fact, we 17 00:00:59,909 --> 00:01:03,389 KT: have every one of the shows. We have every magazine 18 00:01:03,389 --> 00:01:07,940 KT: she ever wrote for, for Oprah, and Susie's never ever 19 00:01:07,940 --> 00:01:12,809 KT: sat down and seen herself on the Oprah Winfrey Show. 20 00:01:13,389 --> 00:01:15,988 KT: I don't think you've watched yourself on the Suze Orman 21 00:01:15,989 --> 00:01:16,260 KT: show either. 22 00:01:17,150 --> 00:01:18,339 KT: She doesn't watch herself... 23 00:01:18,339 --> 00:01:22,889 Suze: I can count on one hand, the number of shows 24 00:01:22,889 --> 00:01:24,389 Suze: that I did on CNBC. 25 00:01:24,930 --> 00:01:27,769 KT: What about Larry King? You were on there like 29 times. 26 00:01:28,050 --> 00:01:29,529 KT: Didn't watch that once 27 00:01:29,769 --> 00:01:30,550 Suze: Because it was live. 28 00:01:30,769 --> 00:01:31,389 KT: I know. 29 00:01:31,449 --> 00:01:34,809 Suze: But all the other shows were taped and everyone, everybody 30 00:01:34,809 --> 00:01:36,389 Suze: else was watching them and 31 00:01:36,434 --> 00:01:38,375 Suze: you would watch him. I'd go in the other room. 32 00:01:38,555 --> 00:01:41,014 Suze: Don't you think that's all strange, everybody, a little bit, 33 00:01:41,275 --> 00:01:46,804 Suze: but that is besides the point. All right, so happy birthday, O. 34 00:01:46,804 --> 00:01:51,944 Suze: Now this is the Ask KT and Susie Anything edition. 35 00:01:52,275 --> 00:01:54,014 Suze: What are you taking from me? 36 00:01:54,595 --> 00:01:55,194 KT: Julie. 37 00:01:55,870 --> 00:01:57,430 Suze: I was open with Julie. 38 00:01:57,510 --> 00:01:59,129 KT: You're gonna do it. You don't want me to do it. 39 00:01:59,239 --> 00:02:01,180 Suze: No, I was gonna do it. That's why it was in front of me. 40 00:02:01,980 --> 00:02:04,629 KT: OK, so I, I thought I was gonna tell everybody 41 00:02:04,629 --> 00:02:05,690 KT: who Julie is. 42 00:02:06,389 --> 00:02:10,788 Suze: No, I want to now, as you know, if you 43 00:02:10,788 --> 00:02:15,110 Suze: want your question to be answered on the podcast, first 44 00:02:15,110 --> 00:02:17,889 Suze: of all, KT has to choose it, and you would 45 00:02:18,100 --> 00:02:23,830 Suze: send in your question to ask Suze podcast@gmail.com. That is 46 00:02:23,830 --> 00:02:24,669 Suze: number one. 47 00:02:25,300 --> 00:02:29,029 Suze: However, just cause she chooses it doesn't mean that I 48 00:02:29,029 --> 00:02:34,070 Suze: haven't already read it. And the other day, about five days 49 00:02:34,070 --> 00:02:38,250 Suze: ago actually now, I was looking at some of the emails, 50 00:02:38,470 --> 00:02:42,429 Suze: and I read this one from Julie, and Julie was 51 00:02:42,429 --> 00:02:45,830 Suze: correcting me because I was wrong on something. 52 00:02:46,149 --> 00:02:48,149 Suze: And I have to tell you I love when that 53 00:02:48,149 --> 00:02:51,990 Suze: happens because there's no way everybody, that I could keep 54 00:02:51,990 --> 00:02:54,750 Suze: up on every single thing that's happening in the world 55 00:02:54,750 --> 00:02:58,410 Suze: when it comes to money. This wasn't a major wrong, 56 00:02:58,550 --> 00:03:02,228 Suze: but it was something that I want to correct. And 57 00:03:02,229 --> 00:03:04,869 Suze: here's what Julie said to me. 58 00:03:05,669 --> 00:03:08,270 Suze: I'll just read it directly from her. She says, in 59 00:03:08,270 --> 00:03:12,270 Suze: your podcast from January 22nd, there was a question from 60 00:03:12,270 --> 00:03:16,190 Suze: a listener with a TSP that had 50% in the 61 00:03:16,190 --> 00:03:16,910 Suze: G Fund. 62 00:03:17,669 --> 00:03:20,630 Suze: Which is everybody like a government fund, like a money market, 63 00:03:20,720 --> 00:03:24,350 Suze: so to speak, and 50% in the C Fund, C 64 00:03:24,350 --> 00:03:29,279 Suze: standing for common stocks. Suze, you shared the advice regarding 65 00:03:29,279 --> 00:03:33,880 Suze: retirees having at least three years of living expenses in 66 00:03:33,880 --> 00:03:37,500 Suze: funds such as the G Fund or money markets, etc. 67 00:03:37,919 --> 00:03:41,919 Suze: in case there is a market downturn so that retirees 68 00:03:41,919 --> 00:03:45,119 Suze: don't need to sell funds like the C Fund at 69 00:03:45,119 --> 00:03:45,800 Suze: a loss. 70 00:03:46,320 --> 00:03:50,100 Suze: Now that's great advice that I intend to live by. However, 71 00:03:50,720 --> 00:03:56,179 Suze: there is a TSP rule that every retiree should know. 72 00:03:56,800 --> 00:04:00,070 Suze: First of all, at TSP, everybody, is a thrift savings 73 00:04:00,070 --> 00:04:04,550 Suze: plan like a 401k or a 403B but for federal workers. 74 00:04:04,880 --> 00:04:09,520 Suze: Here's what Julie taught me. She said, when funds are 75 00:04:09,520 --> 00:04:12,279 Suze: withdrawn from a TSP in retirement. 76 00:04:12,869 --> 00:04:17,269 Suze: Money is withdrawn from each of the funds based on 77 00:04:17,269 --> 00:04:22,130 Suze: the percent invested in each fund. So for the listener 78 00:04:22,269 --> 00:04:26,229 Suze: with 50% in the G and 50% in the C, 79 00:04:26,790 --> 00:04:30,349 Suze: let's say the C Fund is down and this person 80 00:04:30,350 --> 00:04:36,709 Suze: is withdrawing $20,000 from her TSP. She can't sell just G. 81 00:04:37,170 --> 00:04:42,058 Suze: In that example, 10,000 would come from G and 10,000 82 00:04:42,059 --> 00:04:47,899 Suze: would come from C. Interesting. I did not know that. 83 00:04:48,339 --> 00:04:52,660 Suze: So what is the fix, everybody, to this problem? 84 00:04:53,140 --> 00:04:57,109 Suze: The fix really is that all of you need an 85 00:04:57,350 --> 00:05:01,410 Suze: outside retirement account or an account that has at least 86 00:05:01,470 --> 00:05:07,269 Suze: 3 months of living expenses above your guaranteed income within 87 00:05:07,269 --> 00:05:10,988 Suze: that account, and if you then have to take money out, 88 00:05:11,230 --> 00:05:14,250 Suze: you're taking it from where? You're taking it from either 89 00:05:14,250 --> 00:05:17,589 Suze: a Roth IRA or an investment account that's in a 90 00:05:17,589 --> 00:05:22,149 Suze: money market account or a savings account or something like that. 91 00:05:22,630 --> 00:05:26,670 Suze: That's one way that you could protect yourself and not 92 00:05:26,670 --> 00:05:31,320 Suze: have to take equal amounts out of your TSP. All right, KT, 93 00:05:31,428 --> 00:05:32,089 Suze: next question. 94 00:05:32,899 --> 00:05:34,268 Suze: Thanks, Julie, by the way. 95 00:05:34,350 --> 00:05:39,070 KT: Yeah, thanks, Jules. Next question is from Allie. Hi, Suze 96 00:05:39,070 --> 00:05:43,029 KT: and KT. I'm really grateful to you for introducing me 97 00:05:43,029 --> 00:05:45,589 KT: to the concept of Roth IRAs. 98 00:05:47,579 --> 00:05:51,190 KT: I, I love this. I have to admit I don't always... 99 00:05:51,190 --> 00:05:52,579 Suze: Ok, KT feels the exact same way. 100 00:05:52,700 --> 00:05:55,940 Suze: Wait, I have to admit I don't always completely follow 101 00:05:55,940 --> 00:05:58,339 Suze: you when you explain Roth strategies. 102 00:05:58,459 --> 00:06:01,178 Suze: Like I was saying, KT feels the exact same way. 103 00:06:01,420 --> 00:06:05,019 KT: So I play your podcast back multiple times until I 104 00:06:05,019 --> 00:06:05,459 KT: get it. 105 00:06:05,700 --> 00:06:08,510 Suze: That's the one thing KT doesn't do the same way. 106 00:06:08,928 --> 00:06:12,450 KT: Me too. The Roth strategy truly is powerful. Here is 107 00:06:12,450 --> 00:06:12,959 KT: my question. 108 00:06:13,670 --> 00:06:18,829 KT: I have a traditional IRA with 470,000. I want to 109 00:06:18,829 --> 00:06:24,109 KT: contribute to a Roth using a backdoor strategy. I did 110 00:06:24,109 --> 00:06:27,260 KT: some research and I'm able to roll my IRA into 111 00:06:27,750 --> 00:06:29,820 KT: my workplace 401k. 112 00:06:30,200 --> 00:06:34,869 KT: If I want to contribute for 2025, do I need 113 00:06:34,869 --> 00:06:39,880 KT: to roll my IRA funds into my 401k plan first, 114 00:06:40,320 --> 00:06:45,640 KT: then contribute to a traditional IRA and then convert to 115 00:06:45,640 --> 00:06:50,100 KT: a Roth, or does the order of operations not matter 116 00:06:50,359 --> 00:06:55,299 KT: as long as my traditional IRA is zero by year end? 117 00:06:56,119 --> 00:06:58,640 KT: OK, everybody repeat that three times back. 118 00:06:58,880 --> 00:07:02,039 Suze: Allie, here's what you gotta get. It's actually too late 119 00:07:02,040 --> 00:07:05,679 Suze: to do anything already for 2025. You have to do 120 00:07:05,678 --> 00:07:10,000 Suze: this for 2026. And why do I say you have 121 00:07:10,000 --> 00:07:14,880 Suze: to do it for 2026? Even though I know that 122 00:07:14,880 --> 00:07:19,200 Suze: you can open up an IRA or Roth IRA right 123 00:07:19,200 --> 00:07:24,078 Suze: now all the way till April 15th for 2025. That's true. 124 00:07:24,529 --> 00:07:28,649 Suze: But you want to do a backdoor Roth. So then you, 125 00:07:28,730 --> 00:07:30,649 Suze: once you open it up, you could do it this 126 00:07:30,649 --> 00:07:34,089 Suze: year if you wanted to, for last year, but when 127 00:07:34,089 --> 00:07:39,649 Suze: you convert it to a backdoor Roth, a conversion is 128 00:07:39,649 --> 00:07:43,519 Suze: deemed to have happened in the year you convert it. 129 00:07:43,970 --> 00:07:49,750 Suze: So that will now be a backdoor Roth for 2026, 130 00:07:50,130 --> 00:07:54,690 Suze: not 2025. Did that make sense? 131 00:07:55,350 --> 00:07:58,890 Suze: So, here's how I would do it if I were you. 132 00:07:59,149 --> 00:08:03,690 Suze: I would actually, right now, roll all of your money 133 00:08:04,059 --> 00:08:10,859 Suze: from your traditional IRA into your traditional 401k at work. Done. 134 00:08:11,149 --> 00:08:16,410 Suze: You don't have anything now at all in a traditional IRA. 135 00:08:16,950 --> 00:08:21,929 Suze: I would then fund a non-deductible IRA. 136 00:08:22,809 --> 00:08:25,570 Suze: And I would absolutely do what with it? I would 137 00:08:25,570 --> 00:08:29,700 Suze: convert it to a Roth right away, and you are fine. 138 00:08:29,779 --> 00:08:31,940 Suze: That's how you do a back door. 139 00:08:32,458 --> 00:08:35,448 Suze: Now, do you have to do it all at once? No, 140 00:08:35,698 --> 00:08:38,939 Suze: you could do little by little by little, as long 141 00:08:38,939 --> 00:08:44,258 Suze: as all the money in the traditional IRA is out 142 00:08:44,258 --> 00:08:49,379 Suze: by the end of this year, December 31st, just so 143 00:08:49,379 --> 00:08:52,618 Suze: you know. But just don't play around, just do it 144 00:08:52,619 --> 00:08:53,618 Suze: all at once. 145 00:08:54,359 --> 00:08:57,010 Suze: And then do the backdoor Roth. OK, KT. 146 00:08:57,890 --> 00:08:59,890 KT: I have another Roth question, Suze. 147 00:09:00,719 --> 00:09:03,000 Suze: Does that surprise you since you picked them? 148 00:09:03,489 --> 00:09:06,409 KT: From Nicole kind of making a little theme here. 149 00:09:06,830 --> 00:09:10,210 KT: So Nicole said, Hi KT and Suze. I'm 30 years old. 150 00:09:10,390 --> 00:09:13,109 KT: I've been following your advice for the last year. 151 00:09:13,229 --> 00:09:13,669 Suze: I thought she was going to say for the last 25... 152 00:09:13,669 --> 00:09:16,409 KT: No, last she's only 30. 153 00:09:16,750 --> 00:09:19,439 KT: Your advice has given me the confidence to plan for 154 00:09:19,440 --> 00:09:22,989 KT: my future. Good for you, Nicole. Last year I started 155 00:09:22,989 --> 00:09:29,030 KT: a city job. I make $41,500 a year. My job 156 00:09:29,030 --> 00:09:35,109 KT: offers a 457B and a Roth 457B. 157 00:09:35,830 --> 00:09:38,510 KT: I was planning to pick the Roth because you say 158 00:09:38,510 --> 00:09:43,689 KT: it's the better option, but the representative, Nationwide, convinced me 159 00:09:43,690 --> 00:09:47,750 KT: to pick the 457B. Should I convert it to a 160 00:09:47,750 --> 00:09:52,429 KT: Roth 457B or keep the 457B? 161 00:09:54,640 --> 00:09:57,919 Suze: Now, I won't get too mad at you, because you've 162 00:09:57,919 --> 00:09:59,950 Suze: only been listening to me for a year. 163 00:10:01,000 --> 00:10:06,130 Suze: But don't you think, Nicole, you'd rather take advice from 164 00:10:06,130 --> 00:10:10,130 Suze: somebody like me than this idiot who gave you the 165 00:10:10,130 --> 00:10:14,569 Suze: advice to do the 457B number one? All you are 166 00:10:14,570 --> 00:10:19,228 Suze: making right now is $41,500 a year. 167 00:10:20,500 --> 00:10:23,459 Suze: That will put you in one of the lowest income 168 00:10:23,460 --> 00:10:28,099 Suze: tax brackets out there. Why in the world would you 169 00:10:28,099 --> 00:10:33,340 Suze: do a traditional 457 to simply save money on taxes, 170 00:10:33,400 --> 00:10:39,108 Suze: which will be very little, and giving up compounding tax-free 171 00:10:39,109 --> 00:10:41,520 Suze: with a Roth? Are you crazy? 172 00:10:41,869 --> 00:10:45,630 Suze: So no, you are to do a Roth 457B and 173 00:10:45,630 --> 00:10:50,770 Suze: you are to never ever take advice from this person again. KT. 174 00:10:51,270 --> 00:10:54,150 KT: So, Suze, my next question is from Maria, so keep 175 00:10:54,150 --> 00:10:57,030 KT: up with me. I'm all over the road today. My 176 00:10:57,030 --> 00:11:01,690 KT: massage therapist mentioned she rolled over her husband's work traditional 177 00:11:02,049 --> 00:11:08,770 KT: 401k into a gold traditional investment IRA two years ago, 178 00:11:08,969 --> 00:11:10,979 KT: and it has doubled since then. 179 00:11:11,650 --> 00:11:12,500 KT: Is that possible, Suze? 180 00:11:12,609 --> 00:11:13,429 Suze: Yes, it's possible. 181 00:11:14,609 --> 00:11:17,929 KT: So now Maria said Suze, I was thinking of maybe 182 00:11:17,929 --> 00:11:19,830 KT: a Gold Roth IRA. 183 00:11:21,109 --> 00:11:23,390 KT: So what do you say to that? Is there a 184 00:11:23,390 --> 00:11:24,869 KT: gold Roth IRA? 185 00:11:25,070 --> 00:11:30,820 Suze: Actually, within a traditional Roth IRA or IRA for that matter, 186 00:11:31,150 --> 00:11:34,549 Suze: one that you would get at Fidelity, at Schwab, at 187 00:11:34,549 --> 00:11:37,150 Suze: a major brokerage firm, you cannot 188 00:11:38,460 --> 00:11:43,320 Suze: hold the physical commodity gold. You cannot do it. To 189 00:11:43,320 --> 00:11:48,250 Suze: buy the physical commodity and hold it in an IRA, 190 00:11:48,559 --> 00:11:51,070 Suze: you have to go through, uh, it's just a mess. 191 00:11:51,150 --> 00:11:54,539 Suze: There are ways for you to do it like your 192 00:11:54,539 --> 00:12:00,949 Suze: massage person did, but personally I don't think it's worth it. Maria, 193 00:12:01,030 --> 00:12:02,030 Suze: here's the thing. 194 00:12:02,489 --> 00:12:05,969 Suze: Right now when you have gold that has gone up 195 00:12:05,969 --> 00:12:07,210 Suze: so high. 196 00:12:07,979 --> 00:12:12,299 Suze: Do I think from here it can double? I do not. 197 00:12:12,799 --> 00:12:17,329 Suze: However, if you want to participate in gold within a 198 00:12:17,330 --> 00:12:20,449 Suze: Roth IRA, I think the best way for you to 199 00:12:20,450 --> 00:12:24,210 Suze: do it at this point is by buying an exchange 200 00:12:24,210 --> 00:12:29,729 Suze: traded fund by the symbol GLD. Just that simple. Why 201 00:12:29,729 --> 00:12:31,319 Suze: are you looking at me like that? 202 00:12:31,690 --> 00:12:33,750 KT: Well, because I have another gold question. 203 00:12:34,210 --> 00:12:35,130 Suze: Of course you do. 204 00:12:35,140 --> 00:12:37,929 KT: Are you ready? And this just kind of follows suit. 205 00:12:38,479 --> 00:12:41,549 KT: This is, um, this is from Janna. She said, my 206 00:12:41,549 --> 00:12:44,840 KT: husband and I listen to you all the time. Back 207 00:12:44,840 --> 00:12:49,718 KT: in June of 2022, you recommended a gold stock by 208 00:12:49,719 --> 00:12:51,299 KT: the name of Barrick Gold. 209 00:12:51,359 --> 00:12:53,679 Suze: I most certainly did. One of the best calls I've 210 00:12:53,679 --> 00:12:54,140 Suze: ever made. 211 00:12:54,349 --> 00:12:57,679 KT: All right. It was $18 at the time. The symbol 212 00:12:57,679 --> 00:12:59,059 KT: was G O L D. 213 00:12:59,520 --> 00:13:00,260 KT: All right, 214 00:13:00,760 --> 00:13:04,858 KT: I remember my husband wanted to buy 1000 shares, and 215 00:13:04,859 --> 00:13:05,400 KT: I didn't. 216 00:13:05,799 --> 00:13:09,460 KT: So we decided to only buy 500 shares or about 217 00:13:09,679 --> 00:13:12,159 KT: $9,000 in his Roth. 218 00:13:12,849 --> 00:13:15,440 Suze: Fabulous. See, there's gold in a Roth. 219 00:13:15,630 --> 00:13:16,599 KT: All right, there you go. 220 00:13:16,760 --> 00:13:18,679 Suze: Listen closely, Maria, what happened here. 221 00:13:19,090 --> 00:13:21,710 KT: Listen to what Janna said. She said he never shared 222 00:13:21,710 --> 00:13:25,000 KT: much with me about money. I always was afraid to 223 00:13:25,000 --> 00:13:27,640 KT: do anything. He recently died, so. 224 00:13:27,750 --> 00:13:31,210 KT: I'm trying to figure things out, Suze. I looked up 225 00:13:31,210 --> 00:13:34,468 KT: the symbol of G O L D, and it shows 226 00:13:34,469 --> 00:13:38,940 KT: a stock, but it's not Barrick. Did Barrick go belly up? 227 00:13:39,309 --> 00:13:41,820 KT: So is all the money gone? I'm just trying to 228 00:13:41,820 --> 00:13:43,109 KT: figure things out. 229 00:13:43,590 --> 00:13:43,869 Suze: So... 230 00:13:44,109 --> 00:13:45,669 KT: So Janna is really lost. 231 00:13:45,669 --> 00:13:48,950 Suze: So Janna, here's what happened sometime a year ago, maybe 232 00:13:48,950 --> 00:13:53,510 Suze: not even that. Barrick changed its symbol. It's on the 233 00:13:53,510 --> 00:13:56,390 Suze: New York Stock Exchange under the letter B. 234 00:13:56,849 --> 00:13:59,530 Suze: Let me tell you a little bit about Barrick so 235 00:13:59,530 --> 00:14:03,789 Suze: that you know. Number one, Maria, from the question before, 236 00:14:04,049 --> 00:14:08,409 Suze: listen closely, all right. The reason that I told everybody 237 00:14:08,409 --> 00:14:12,640 Suze: back in 2022 to buy Barrick gold is number one, 238 00:14:12,690 --> 00:14:15,169 Suze: I thought eventually it would go up, but it was 239 00:14:15,169 --> 00:14:19,929 Suze: also paying 40 cents a share of a dividend, so 240 00:14:19,929 --> 00:14:23,119 Suze: it was like a 2.something% return on your money even 241 00:14:23,119 --> 00:14:24,349 Suze: if gold did nothing. 242 00:14:25,260 --> 00:14:31,760 Suze: However, over the years, Janna, Barrick has raised its dividend 243 00:14:31,760 --> 00:14:36,820 Suze: to 70 cents a share, number one, based on the 244 00:14:36,820 --> 00:14:41,380 Suze: fact that you bought it at $18 a share. That's 245 00:14:41,380 --> 00:14:48,020 Suze: a 3.8% return just in dividends alone. Fabulous, given if 246 00:14:48,020 --> 00:14:50,619 Suze: you look at money markets and things like that, are 247 00:14:50,619 --> 00:14:52,789 Suze: even lower than that right now. 248 00:14:53,419 --> 00:14:57,179 Suze: Next, if you put in the letter B and look 249 00:14:57,179 --> 00:15:02,520 Suze: up the price of Barrick right now, it's about $50 250 00:15:02,580 --> 00:15:07,609 Suze: a share. So your 500 shares did not go belly up, 251 00:15:07,700 --> 00:15:14,400 Suze: my love. They are now worth about $25,500. 252 00:15:14,460 --> 00:15:16,169 KT: That's great, right? 253 00:15:16,380 --> 00:15:19,609 Suze: So, so here's the only thing I'm gonna say. I'm 254 00:15:19,609 --> 00:15:21,679 Suze: very number one, sorry for your loss. 255 00:15:22,070 --> 00:15:25,640 Suze: But the truth is you should have bought 1,000 shares. 256 00:15:25,849 --> 00:15:29,520 Suze: You should have listened to him, all right, but don't worry, 257 00:15:29,919 --> 00:15:33,359 Suze: everything is so great I can't even tell you. You 258 00:15:33,359 --> 00:15:34,760 Suze: did the right thing. 259 00:15:35,309 --> 00:15:36,229 Suze: There you go. All right. 260 00:15:36,349 --> 00:15:38,890 KT: Well, good, Janna, and now you know you never lost that. 261 00:15:39,330 --> 00:15:43,270 Suze: Barrick was a mining company, KT, and the reason I've 262 00:15:43,270 --> 00:15:47,030 Suze: kind of switched now to gold is that now gold 263 00:15:47,030 --> 00:15:50,760 Suze: is the commodity. Barrick has also gone up tremendously, obviously, 264 00:15:50,950 --> 00:15:54,469 Suze: far more than just a double, um, so that's why 265 00:15:54,469 --> 00:15:56,270 Suze: I kind of switched to GLD. 266 00:15:57,020 --> 00:15:59,010 Suze: The ETF. Oh, I'm so happy for her. 267 00:15:59,780 --> 00:16:03,059 KT: Me too. I'm really glad she found it. There's nothing 268 00:16:03,070 --> 00:16:05,789 KT: worse than trying to figure things out, and basically she 269 00:16:05,789 --> 00:16:07,190 KT: thought she lost all that money. 270 00:16:07,200 --> 00:16:09,619 Suze: Yeah, because you go to put in GOLD, and it's 271 00:16:09,619 --> 00:16:10,299 Suze: a whole different.. 272 00:16:10,299 --> 00:16:11,969 KT: What... that was only four years ago. 273 00:16:12,090 --> 00:16:13,000 Suze: That's pretty great, right? 274 00:16:13,179 --> 00:16:14,739 KT: Yeah, that really, that's a huge... 275 00:16:14,739 --> 00:16:17,830 Suze: Actually, truthfully, it was in June. 276 00:16:18,309 --> 00:16:22,880 Suze: Of, um, 2022 that I first recommended it, so it 277 00:16:22,880 --> 00:16:24,929 Suze: wasn't even four years ago anyway, go on. 278 00:16:25,200 --> 00:16:27,719 KT: All right, so question from Lauren and, and this is 279 00:16:27,719 --> 00:16:32,559 KT: based on January 22nd episode she learned all about IRAs 280 00:16:32,559 --> 00:16:35,929 KT: and she said, Suze, is it possible to convert a 281 00:16:35,929 --> 00:16:39,719 KT: SEP IRA into a SEP Roth IRA? 282 00:16:39,719 --> 00:16:40,840 Suze: If you could find one. 283 00:16:41,580 --> 00:16:46,820 KT: All right. Second, if so, how should that be done properly? Three, 284 00:16:46,940 --> 00:16:51,299 KT: my current investments are down about 2%. Does that make 285 00:16:51,299 --> 00:16:55,419 KT: now a smart time to convert and potentially take advantage 286 00:16:55,419 --> 00:16:57,489 KT: of tax loss harvesting? 287 00:16:57,659 --> 00:17:00,260 Suze: Great. Now you're not gonna be able to do any 288 00:17:00,260 --> 00:17:01,580 Suze: tax loss harvesting. 289 00:17:01,940 --> 00:17:05,688 Suze: Because everybody tax loss harvesting is when you take your 290 00:17:05,689 --> 00:17:09,560 Suze: losses now and are able to offset them for your taxes. 291 00:17:09,900 --> 00:17:14,099 Suze: So everybody don't ever make the mistake that the money 292 00:17:14,099 --> 00:17:17,500 Suze: that you have in a retirement account is subject to 293 00:17:17,500 --> 00:17:21,119 Suze: capital gains or whatever when you sell within there or losses. 294 00:17:21,180 --> 00:17:25,379 Suze: It doesn't work that way. However, the truth of the matter, 295 00:17:25,459 --> 00:17:29,819 Suze: my dear Lauren, when the money in a SEP IRA 296 00:17:29,819 --> 00:17:30,978 Suze: is down. 297 00:17:31,410 --> 00:17:34,540 Suze: And you want to get it into a Roth, now 298 00:17:34,540 --> 00:17:38,020 Suze: is when you wanna do it, because since it's down 299 00:17:38,020 --> 00:17:41,699 Suze: and you do convert it, you're not gonna owe as 300 00:17:41,699 --> 00:17:47,060 Suze: much on taxes, but it's not known as tax loss harvesting. However... 301 00:17:48,359 --> 00:17:53,239 Suze: Here's the problem. Even though now legally you can have 302 00:17:53,239 --> 00:17:59,159 Suze: a SEP Roth IRA, OK, good luck finding one. None 303 00:17:59,160 --> 00:18:02,880 Suze: of the major brokerage firms allow them. I can't find 304 00:18:02,880 --> 00:18:07,040 Suze: any of them. So here's what you would do. Who 305 00:18:07,040 --> 00:18:11,920 Suze: cares if it's another SEP? Just take your SEP IRA 306 00:18:12,479 --> 00:18:16,969 Suze: and convert it to a Roth IRA knowing you are 307 00:18:16,969 --> 00:18:20,329 Suze: going to pay taxes on whatever amount you convert, and 308 00:18:20,329 --> 00:18:23,969 Suze: now it's all in a Roth IRA and you can 309 00:18:23,969 --> 00:18:27,609 Suze: keep your SEP IRA funding it for as much as 310 00:18:27,609 --> 00:18:30,599 Suze: you can every year and then just convert it to 311 00:18:30,599 --> 00:18:34,810 Suze: a Roth IRA every single year. And that's how I 312 00:18:34,810 --> 00:18:37,189 Suze: would do it if I were you. All right, KT. 313 00:23:38,530 --> 00:23:41,530 KT: Next question is from Anne. She said, thank you for 314 00:23:41,530 --> 00:23:44,919 KT: your podcast. They've been invaluable to me and to many 315 00:23:44,920 --> 00:23:46,089 KT: others who listen. 316 00:23:46,579 --> 00:23:52,270 KT: Regarding Social Security benefits after 20 years of marriage that 317 00:23:52,280 --> 00:23:54,130 KT: ended in an annulment... 318 00:23:54,750 --> 00:23:54,859 Suze: How is that possible? 319 00:23:54,959 --> 00:23:58,310 KT: I know, I don't know, would I be eligible to 320 00:23:58,310 --> 00:24:03,020 KT: receive one half of my former spouse's Social Security? 321 00:24:03,630 --> 00:24:07,530 Suze: Wait, did she say that it absolutely already ended? 322 00:24:07,530 --> 00:24:11,800 KT: After 20 years of marriage that ended in an annulment. 323 00:24:11,859 --> 00:24:13,238 KT: It already happened. 324 00:24:13,579 --> 00:24:17,579 Suze: Anne are you sure, or did your ex-husband tell you 325 00:24:17,579 --> 00:24:20,660 Suze: that it ended in an annulment? Are you positive that 326 00:24:20,660 --> 00:24:24,099 Suze: it did? 20 years is a long time to be 327 00:24:24,099 --> 00:24:27,500 Suze: married and end in an annulment, but let's just say 328 00:24:27,500 --> 00:24:30,060 Suze: for now it did. What's the question, KT? 329 00:24:30,459 --> 00:24:31,859 KT: So the question is. 330 00:24:33,010 --> 00:24:38,849 KT: Regarding Social Security, is she eligible to receive one half 331 00:24:38,849 --> 00:24:42,930 KT: of my former spouse's Social Security benefits? 332 00:24:43,660 --> 00:24:46,159 KT: She said she understands it's a complex situation. 333 00:24:46,579 --> 00:24:50,699 Suze: It's a complex situation because she allowed it to happen. Why, Anne, 334 00:24:50,770 --> 00:24:54,280 Suze: would you even allow that? Why didn't you just get divorced? 335 00:24:54,819 --> 00:24:56,719 Suze: If you look at the rules. 336 00:24:57,689 --> 00:25:03,069 Suze: You only get part of your spouse's or ex-spouse's Social Security, 337 00:25:03,979 --> 00:25:08,329 Suze: if in fact you were married legally at least 10 years. 338 00:25:09,060 --> 00:25:15,579 Suze: Or got divorced. Because it was annulled, meaning you were 339 00:25:15,579 --> 00:25:19,859 Suze: never married to him. That's what an annulment means. So 340 00:25:19,859 --> 00:25:24,140 Suze: given you were never married to him, you will not 341 00:25:24,140 --> 00:25:29,938 Suze: in most cases qualify for any of his social security, however. 342 00:25:30,839 --> 00:25:35,959 Suze: There are, I am sure, limited technical exceptions, um, and 343 00:25:35,959 --> 00:25:39,800 Suze: you should check whatever state you live in. There are specific 344 00:25:39,800 --> 00:25:44,800 Suze: state laws, in which case maybe Social Security treats it differently. 345 00:25:44,959 --> 00:25:49,069 Suze: It's something that I would absolutely look into, given how 346 00:25:49,069 --> 00:25:53,040 Suze: much money we're probably talking about here. If it were me, 347 00:25:53,199 --> 00:25:56,399 Suze: I would have an expert review your decree. 348 00:25:56,750 --> 00:26:01,430 Suze: That you really have an annulment and the annulment is valid. 349 00:26:01,709 --> 00:26:03,760 Suze: Wanna know what I really think, KT? 350 00:26:04,790 --> 00:26:08,030 Suze: I'm not sure Anne knows that it's absolutely valid. I 351 00:26:08,030 --> 00:26:10,709 Suze: think her, this is going to be crazy what I think, 352 00:26:11,069 --> 00:26:16,530 Suze: but that's not unusual. I think her ex-husband thought if 353 00:26:16,780 --> 00:26:19,349 Suze: she got benefits, he was going to have to be 354 00:26:19,349 --> 00:26:23,000 Suze: the one who paid her. He may not have gotten 355 00:26:23,189 --> 00:26:26,750 Suze: that if she got ex benefits from him. It doesn't 356 00:26:26,750 --> 00:26:29,489 Suze: come from him. It comes from Social Security. 357 00:26:30,000 --> 00:26:31,500 KT: It doesn't lessen his. 358 00:26:31,560 --> 00:26:35,300 Suze: It doesn't lessen his. And so why else would he 359 00:26:35,839 --> 00:26:39,439 Suze: most likely have wanted to do an annulment unless he 360 00:26:39,439 --> 00:26:44,030 Suze: just really wanted to punish her seriously. So, Anne, if 361 00:26:44,030 --> 00:26:49,280 Suze: I were you, I would get on my warrior outfit, 362 00:26:49,439 --> 00:26:52,640 Suze: and I would do whatever I can to get that 363 00:26:52,640 --> 00:26:57,359 Suze: annulment declared invalid and get a divorce from him if 364 00:26:57,359 --> 00:26:58,079 Suze: you can. 365 00:26:58,859 --> 00:27:02,339 Suze: Sad KT. So I think we have to end on 366 00:27:02,339 --> 00:27:03,119 Suze: that one. 367 00:27:03,979 --> 00:27:08,420 KT: It's sad, right? Annulment after... Annulments, I thought were when 368 00:27:08,420 --> 00:27:10,900 KT: two kids run away to Las Vegas. They drink too much, 369 00:27:10,979 --> 00:27:13,540 KT: they get married. They come home, tell their parents, and 370 00:27:13,540 --> 00:27:16,800 KT: the parents say, Oh, this is getting annulled. Something is 371 00:27:16,800 --> 00:27:18,319 KT: not right with the annulment. 372 00:27:19,260 --> 00:27:21,979 Suze: And are you sure he got one, or did he 373 00:27:21,979 --> 00:27:23,619 Suze: just tell you he got one? 374 00:27:24,130 --> 00:27:24,609 Suze: I don't know. 375 00:27:25,050 --> 00:27:28,040 KT: She would have to know. A marriage is a marriage. Two 376 00:27:28,040 --> 00:27:28,969 KT: people have to know. 377 00:27:29,290 --> 00:27:32,420 Suze: Well, let's just... Anne, you check it out. So everybody... 378 00:27:33,089 --> 00:27:36,189 KT: And let us know. I'm curious. 379 00:27:36,329 --> 00:27:37,250 Suze: Yeah, we are. 380 00:27:38,300 --> 00:27:39,900 Suze: I have no idea what I'm going to do for 381 00:27:39,900 --> 00:27:42,839 Suze: Suzie's school on Sunday. So, 382 00:27:43,569 --> 00:27:45,469 Suze: You wanna say anything else before we go, KT? 383 00:27:45,890 --> 00:27:47,609 KT: Happy birthday again, Oprah. 384 00:27:47,609 --> 00:27:50,929 Suze: All right, so until Sunday, there's only one thing that 385 00:27:50,930 --> 00:27:53,729 Suze: we want you to remember when it comes to your money, sweetheart. 386 00:27:53,880 --> 00:27:55,530 Suze: Tell him everything. What do I want them to know? 387 00:27:55,829 --> 00:27:59,329 KT: It is people first, then money, then things, and you 388 00:27:59,415 --> 00:28:04,415 KT: stay safe and warm across this country. Stay warm. 389 00:28:04,614 --> 00:28:08,685 Suze: Stay warm and seriously, given everything that's going on out there, 390 00:28:08,935 --> 00:28:11,334 Suze: which I think is such a heartbreak, and I have 391 00:28:11,334 --> 00:28:14,135 Suze: to tell you I think it is so wrong. It's 392 00:28:14,135 --> 00:28:19,435 Suze: not even funny. Please all of you stay safe. Bye bye.