1 00:00:01,120 --> 00:00:01,809 Music: Music (in). 2 00:00:33,639 --> 00:00:41,770 Suze: July 27th, 2023. Welcome everybody to the Women and Money podcast... 3 00:00:41,779 --> 00:00:44,970 KT: And everyone's smart enough to listen. It's KT here. 4 00:00:44,979 --> 00:00:50,098 Suze: They know who you are. It's Suze. O, here. And 5 00:00:50,110 --> 00:00:54,709 Suze: this is the Ask KT and Suze edition of the podcast. 6 00:00:54,970 --> 00:00:58,150 Suze: So the main question everybody has 7 00:00:58,520 --> 00:01:00,930 Suze: at hand Miss Travis was, how was your birthday? 8 00:01:00,939 --> 00:01:06,940 KT: It was the best birthday ever, Suze went over the top. 9 00:01:06,949 --> 00:01:10,610 KT: Everybody and wrote me the most gorgeous letter which I'm 10 00:01:10,620 --> 00:01:15,449 KT: not going to share. She then made me an incredible video, 11 00:01:15,480 --> 00:01:20,379 KT: a beautiful video with probably my most favorite song. It's 12 00:01:20,389 --> 00:01:21,349 KT: an aria 13 00:01:21,660 --> 00:01:25,349 KT: and it's just maybe we'll have to play that Aria. 14 00:01:26,330 --> 00:01:30,750 KT: And then, and then she surprised me with so many 15 00:01:30,760 --> 00:01:33,069 KT: wonderful things throughout the weekend. 16 00:01:33,459 --> 00:01:35,629 KT: Um And we had a big sushi dinner and my 17 00:01:35,639 --> 00:01:37,899 KT: sister Lynn had a good time. It was a, it 18 00:01:37,910 --> 00:01:42,029 KT: was an uneventful, perfect, perfect weekend. 19 00:01:42,040 --> 00:01:47,250 Suze: There you go. Everybody. So that's over. Thank God. Till next year. 20 00:01:47,860 --> 00:01:52,989 KT: Yea, Suze's not a big celebration holiday. Birthday, Christmas, Hanukkah girl on any level. 21 00:01:53,680 --> 00:01:57,300 Suze: Want to know the truth, but have no idea what we 22 00:01:57,309 --> 00:01:58,349 Suze: did on my birthday. 23 00:01:59,180 --> 00:02:01,209 KT: We didn't do anything on your birthday. 24 00:02:02,589 --> 00:02:05,419 Suze: See! I remembered. All right. What do you got? 25 00:02:05,580 --> 00:02:08,550 KT: Ok. I've got a real mixed bag of questions here. 26 00:02:08,559 --> 00:02:11,589 KT: So let's start with one that I found a little 27 00:02:11,600 --> 00:02:15,990 KT: bit amusing from Brad. Right. Listen to this. Everyone, Suze, 28 00:02:16,000 --> 00:02:17,050 KT: my Roth is in 29 00:02:17,119 --> 00:02:22,830 KT: invested into two ETFs, VTI and VOO. Is it ok to be in 30 00:02:22,839 --> 00:02:24,710 KT: both or should I just be in one? Do you 31 00:02:24,720 --> 00:02:30,490 KT: even like VOO? I feel FOMO watching the market keep 32 00:02:30,500 --> 00:02:33,889 KT: going higher but I will just keep dollar cost averaging 33 00:02:33,899 --> 00:02:37,050 KT: like you say so ready everybody. 34 00:02:37,630 --> 00:02:43,960 KT: VTI, Vanguard Total Stock Market Index. VOO is the Vanguard 500. 35 00:02:44,100 --> 00:02:48,199 KT: But what stumped me, Suze was him feeling FOMO.  Do you know what FOMO is? 36 00:02:50,750 --> 00:02:51,198 Suze: It's fear of missing out. 37 00:02:52,300 --> 00:02:56,509 KT: Yeah, and it's, and it's described as anxiety. 38 00:02:56,520 --> 00:03:01,149 Suze: He's got anxiety, Brad just stay where you are. It's fine. 39 00:03:01,160 --> 00:03:05,889 Suze: VTI obviously just invests in a whole lot more than 40 00:03:05,899 --> 00:03:09,479 Suze: VOO but there's you since you have both just keep 41 00:03:09,490 --> 00:03:11,070 Suze: doing so. However, 42 00:03:11,899 --> 00:03:15,220 Suze: in terms of fear of missing out, 43 00:03:16,008 --> 00:03:22,490 Suze: that is very dangerous, just dollar cost average. These are 44 00:03:22,500 --> 00:03:27,070 Suze: still not situations where you should lump some into the markets. 45 00:03:27,258 --> 00:03:31,660 Suze: Just dollar cost average every month, month in and month 46 00:03:31,669 --> 00:03:34,580 Suze: out and maybe you won't make as much as if 47 00:03:34,589 --> 00:03:36,419 Suze: you had put a whole lot of money in and 48 00:03:36,429 --> 00:03:40,710 Suze: everything skyrocketed, but it can go the other way as well. 49 00:03:40,720 --> 00:03:44,289 Suze: So just keep dollar cost averaging and stop being afraid 50 00:03:44,300 --> 00:03:45,729 Suze: that you're missing out. 51 00:03:46,169 --> 00:03:48,619 Suze: You're not missing out on anything. Go on. 52 00:03:48,630 --> 00:03:52,300 KT: No, keep listening to us. You'll never miss out Brad. Ok. 53 00:03:52,309 --> 00:03:56,570 KT: Next question is from Merrill. Merrill said my student loans 54 00:03:56,580 --> 00:04:01,300 KT: have been a heavy weight on my shoulders for years. Suze, 55 00:04:01,309 --> 00:04:05,259 KT: that's the most important sentence. Heavy weight on my shoulders 56 00:04:05,270 --> 00:04:08,600 KT: for years since loans have been in forbearance. I've been 57 00:04:08,610 --> 00:04:11,130 KT: saving that money and built up an 8 to 9 58 00:04:11,139 --> 00:04:12,600 KT: month emergency fund. 59 00:04:12,960 --> 00:04:18,959 KT: My loan is $44,000 at 6.5%. Now that the payments 60 00:04:18,970 --> 00:04:22,178 KT: are about to resume, I'd love to pay off my 61 00:04:22,190 --> 00:04:25,849 KT: loans completely, but I want to make sure I'm not 62 00:04:25,859 --> 00:04:30,630 KT: making a huge mistake. So Merrill's 40 years old, she's single. 63 00:04:30,640 --> 00:04:33,820 KT: She has no debt. If she pays the loans off, 64 00:04:33,829 --> 00:04:36,779 KT: she has to save up again for her emergency fund 65 00:04:37,029 --> 00:04:39,450 KT: and she also has a goal of buying a home. 66 00:04:39,459 --> 00:04:42,029 KT: So she's asking you for a green light. 67 00:04:42,459 --> 00:04:46,669 Suze: KT just handed me your question, Merril. And a few 68 00:04:46,678 --> 00:04:50,678 Suze: things that I see on this is that your $44,000 69 00:04:50,690 --> 00:04:56,019 Suze: student loan is at 6.5% interest. You already have an 70 00:04:56,029 --> 00:05:01,359 Suze: 8 to 9 month emergency fund, which is $30,000 that 71 00:05:01,369 --> 00:05:04,750 Suze: you contribute $500 a month for 72 00:05:05,279 --> 00:05:08,369 Suze: you have an I Bond. All right, and you will 73 00:05:08,380 --> 00:05:12,359 Suze: be getting a $10,000 inheritance soon. So here's what I 74 00:05:12,369 --> 00:05:17,469 Suze: want you to do. I want you to stop contributing 75 00:05:17,480 --> 00:05:21,169 Suze: the $500 a month to your emergency fund because I 76 00:05:21,178 --> 00:05:24,600 Suze: do not want you to use up your emergency fund 77 00:05:24,690 --> 00:05:27,989 Suze: to pay off your student loan in case something happens 78 00:05:28,000 --> 00:05:29,450 Suze: to you. So take that 79 00:05:30,105 --> 00:05:34,355 Suze: $500 a month, add it to whatever you are paying 80 00:05:34,363 --> 00:05:37,524 Suze: now towards your student loan and it will be gone 81 00:05:37,535 --> 00:05:42,315 Suze: before you know it. Next, when you get that $10,000 inheritance, 82 00:05:42,325 --> 00:05:46,834 Suze: apply all of that to the student loan and before 83 00:05:46,845 --> 00:05:50,454 Suze: you know it, that heavy weight on your shoulders will 84 00:05:50,464 --> 00:05:52,475 Suze: be gone. Next question. 85 00:05:52,545 --> 00:05:55,635 KT: I love that advice, Suze. I love that. Ok, this 86 00:05:55,644 --> 00:05:56,553 KT: is from Lisa. 87 00:05:56,799 --> 00:06:01,308 KT: Hi, Suze and KT. I'm 51 and my husband is 53. 88 00:06:01,369 --> 00:06:04,359 KT: My friends make fun of how much time I spend 89 00:06:04,369 --> 00:06:07,989 KT: listening to your show and reading your books. But I'm 90 00:06:08,000 --> 00:06:11,178 KT: the only one with a will and revocable trust. So 91 00:06:11,190 --> 00:06:14,899 KT: guess who will be laughing last? Now, here's the question. 92 00:06:15,089 --> 00:06:19,510 KT: My husband and I both have term insurance. His policy 93 00:06:19,519 --> 00:06:24,670 KT: is for 1.5 million. Mine is for 750,000. 94 00:06:24,869 --> 00:06:29,670 KT: They're in place until we're 70. Wow. Our son will 95 00:06:29,678 --> 00:06:34,609 KT: be 33 by then and hopefully self-sufficient. My main concern 96 00:06:34,619 --> 00:06:37,660 KT: is our later years. Would it be smarter to have 97 00:06:37,670 --> 00:06:42,309 KT: less life insurance and put money into long term care. 98 00:06:42,440 --> 00:06:44,459 KT: So take a look at their ages again. 99 00:06:44,880 --> 00:06:50,238 Suze: Right. So currently at the age of 51 and 53 100 00:06:50,339 --> 00:06:54,070 Suze: I have to tell you this is the perfect age, 101 00:06:54,079 --> 00:06:56,839 Suze: believe it or not. I used to say it was 102 00:06:56,850 --> 00:07:02,399 Suze: 59 but 51 53 is essentially the perfect age to 103 00:07:02,410 --> 00:07:06,390 Suze: at least look to long term care insurance 104 00:07:06,619 --> 00:07:09,070 Suze: and to see if it's something that not only can 105 00:07:09,079 --> 00:07:12,029 Suze: you afford now, but you will be able to afford 106 00:07:12,040 --> 00:07:17,170 Suze: it for the absolute rest of your life. So, Phyllis Shelton, 107 00:07:17,679 --> 00:07:21,350 Suze: in my opinion, is one of the world's finance experts 108 00:07:21,359 --> 00:07:24,670 Suze: on long term care insurance. You might want to write 109 00:07:24,679 --> 00:07:30,450 Suze: her at Phyllis, Phyllis at got 110 00:07:31,040 --> 00:07:37,350 Suze: LTC I dot com. So that's got GOTLTC I that 111 00:07:37,359 --> 00:07:42,109 Suze: stands for got long term care insurance dot com. Just so, 112 00:07:42,119 --> 00:07:44,880 Suze: you know, I do not get a penny if you 113 00:07:44,890 --> 00:07:49,489 Suze: do business with her, whatever it is. She's fabulous though. 114 00:07:49,500 --> 00:07:52,209 Suze: Just so, you know. All right. Go on, KT. 115 00:07:52,220 --> 00:07:55,529 KT: Hi, Suze and KT. You are my favorite and I listen 116 00:07:55,540 --> 00:07:57,250 KT: every day of my life, 117 00:07:59,029 --> 00:08:02,779 KT: Kim must be really tired of us. Ok. So you 118 00:08:02,790 --> 00:08:05,619 KT: really caught my attention this week when you shared your 119 00:08:05,630 --> 00:08:10,760 KT: perspective about saving money for your own care at your age. 120 00:08:10,809 --> 00:08:12,239 KT: Here's my question. 121 00:08:13,390 --> 00:08:17,049 KT: My husband and I have no living parents, no siblings, 122 00:08:17,059 --> 00:08:22,420 KT: no children. I'm 62. He is 57. The only debt 123 00:08:22,429 --> 00:08:25,630 KT: we have is our mortgage, which is half a million dollars. 124 00:08:25,869 --> 00:08:29,100 KT: I realize that mortgage balance is not small and we 125 00:08:29,109 --> 00:08:31,480 KT: will need to downsize one day. 126 00:08:31,989 --> 00:08:35,640 KT: Do I still need a revocable trust to protect me 127 00:08:35,650 --> 00:08:39,608 KT: from losing my home? Should illness or something like that 128 00:08:39,619 --> 00:08:43,358 KT: happen to one of us? She doesn't have a will 129 00:08:43,369 --> 00:08:43,960 KT: or a trust. 130 00:08:44,479 --> 00:08:49,130 Suze: It's not about, Kim, a living trust will never protect you 131 00:08:49,140 --> 00:08:52,729 Suze: from losing your home. The only thing a living trust 132 00:08:52,739 --> 00:08:56,460 Suze: really does is it avoids probate 133 00:08:56,719 --> 00:09:01,228 Suze: as well as protects you against an incapacity in case 134 00:09:01,239 --> 00:09:04,070 Suze: one of you should become incapacitated and you want to 135 00:09:04,080 --> 00:09:08,090 Suze: sell your house or make financial decisions for that person. 136 00:09:08,289 --> 00:09:11,349 Suze: So the simple answer to this question is, yeah, you 137 00:09:11,359 --> 00:09:14,869 Suze: still need a revocable trust but not to protect yourself 138 00:09:14,880 --> 00:09:16,289 Suze: from losing your home. 139 00:09:16,299 --> 00:09:19,229 KT: All right. Hi, Suze, my husband and I are very 140 00:09:19,239 --> 00:09:21,390 KT: confused about this market. 141 00:09:21,619 --> 00:09:25,989 KT: Do you agree with the majority of people on CNBC 142 00:09:26,059 --> 00:09:29,900 KT: that we aren't in a bull market instead of dollar 143 00:09:29,909 --> 00:09:32,799 KT: cost averaging in the market? We've been laddering CDs DS 144 00:09:32,809 --> 00:09:37,369 KT: d treasuries. Where did the recession go? I'm baffled. We 145 00:09:37,380 --> 00:09:40,049 KT: still have outrageous inflation. 146 00:09:41,039 --> 00:09:43,260 KT: And then she said this is funny. She said the 147 00:09:43,270 --> 00:09:46,330 KT: same mattress I bought two years ago has now doubled 148 00:09:46,340 --> 00:09:51,079 KT: in price. Luckily we're financially sound. I don't know how 149 00:09:51,090 --> 00:09:54,319 KT: the less fortunate make ends meet. So the question is, 150 00:09:54,330 --> 00:09:55,890 KT: what are we in Suze? 151 00:09:56,159 --> 00:10:00,049 Suze: So, what all of you have to understand is there's 152 00:10:00,059 --> 00:10:04,000 Suze: no such thing as a bull market, that's only a 153 00:10:04,010 --> 00:10:05,059 Suze: bull market. 154 00:10:05,419 --> 00:10:08,280 Suze: What you really need to understand is that there are 155 00:10:08,289 --> 00:10:13,960 Suze: secular markets and cyclical markets and a secular market is 156 00:10:13,969 --> 00:10:19,909 Suze: a very long term market. And within every long term market, 157 00:10:19,960 --> 00:10:24,750 Suze: there are cyclical market cycles where the market goes the 158 00:10:24,760 --> 00:10:25,988 Suze: other way. 159 00:10:26,349 --> 00:10:30,669 Suze: So I think very possibly now we could be entering 160 00:10:30,679 --> 00:10:34,900 Suze: or we already did a bull market in some areas, 161 00:10:34,909 --> 00:10:39,289 Suze: not all areas of this market, right? But there are 162 00:10:39,299 --> 00:10:44,299 Suze: cycles within this market that will obviously still go down. 163 00:10:44,469 --> 00:10:47,939 Suze: So it's not just that simple to say, are we 164 00:10:47,950 --> 00:10:50,760 Suze: in a bull market or are we not, you should 165 00:10:50,770 --> 00:10:54,319 Suze: continue to dollar cost average if you want to be 166 00:10:54,330 --> 00:10:55,939 Suze: in the stock market, 167 00:10:56,210 --> 00:11:00,780 Suze: there are fabulous stocks that I would absolutely think about 168 00:11:00,789 --> 00:11:04,799 Suze: being a part of a few of those. Uh, um, 169 00:11:04,809 --> 00:11:09,400 Suze: way long ago somebody asked me, was there one stock 170 00:11:09,409 --> 00:11:13,520 Suze: they should invest in for artificial intelligence. And way back 171 00:11:13,530 --> 00:11:18,280 Suze: when I said Microsoft, I still think that's a fabulous stock, 172 00:11:18,289 --> 00:11:19,119 Suze: but you have to, 173 00:11:19,215 --> 00:11:21,564 Suze: you have time on your side, you have to know 174 00:11:21,575 --> 00:11:26,765 Suze: what you're doing, but remember just a few stocks pulled 175 00:11:26,775 --> 00:11:32,184 Suze: this market up, not all stocks participated, which is why 176 00:11:32,195 --> 00:11:34,924 Suze: you have to know which stocks you're gonna be in 177 00:11:34,934 --> 00:11:39,275 Suze: if it's individual stocks or ETF S just so you 178 00:11:39,284 --> 00:11:44,945 Suze: can have everything and still participate. But nothing ever will 179 00:11:44,955 --> 00:11:47,164 Suze: go straight up forever. 180 00:11:47,700 --> 00:11:50,489 Suze: It will go up and then it will go down 181 00:11:50,500 --> 00:11:53,739 Suze: and then it will go back up again. So just 182 00:11:53,750 --> 00:11:56,450 Suze: keep dollar cost averaging. Go on KT. 183 00:11:56,460 --> 00:12:00,770 KT: Ok. Next question, Suze is from Amber. KT and Suze 184 00:12:00,780 --> 00:12:03,289 KT: a quick note to start by saying you are both 185 00:12:03,299 --> 00:12:07,830 KT: so amazing. I always like those compliments. Thanks, Amber. 186 00:12:08,299 --> 00:12:11,880 KT: My grandma has a home owned outright in the name 187 00:12:11,890 --> 00:12:15,780 KT: of her trust. She is leaving me the option to 188 00:12:15,789 --> 00:12:19,619 KT: purchase her home from the trust at the time of 189 00:12:19,630 --> 00:12:24,429 KT: her passing. If I so choose, I think I recall 190 00:12:24,440 --> 00:12:27,719 KT: you saying to have homes passed down to you by 191 00:12:27,729 --> 00:12:32,409 KT: a trust is the best way to avoid unnecessary taxes. 192 00:12:32,650 --> 00:12:35,799 KT: Does that go out the window if you exercise an 193 00:12:35,809 --> 00:12:39,099 KT: option to purchase the home from the trust? 194 00:12:39,109 --> 00:12:41,780 Suze: Yes. So what you have to know Amber is that 195 00:12:41,789 --> 00:12:47,299 Suze: I've never said that a living trust will alleviate taxes. 196 00:12:47,510 --> 00:12:49,679 Suze: What it does is it alleviates 197 00:12:49,744 --> 00:12:54,215 Suze: once again, everybody probate, the cost of going through probate, 198 00:12:54,224 --> 00:12:57,455 Suze: which is a court procedure, which is what is needed 199 00:12:57,465 --> 00:13:00,655 Suze: to get a home from a person whose home is 200 00:13:00,664 --> 00:13:04,655 Suze: entitled and their name has passed away. They're not alive 201 00:13:04,664 --> 00:13:07,955 Suze: to sign it over to you. So it has to 202 00:13:07,965 --> 00:13:11,364 Suze: go through a court procedure known as probate where a 203 00:13:11,375 --> 00:13:16,954 Suze: judge signs the deceased person's deed over to the person 204 00:13:16,965 --> 00:13:18,554 Suze: it's meant to go to. 205 00:13:19,080 --> 00:13:24,520 Suze: However, if she simply has a home that she owns 206 00:13:24,530 --> 00:13:28,570 Suze: outright and she's leaving it to you. 207 00:13:29,309 --> 00:13:31,940 Suze: She doesn't even have to give you the option to 208 00:13:31,950 --> 00:13:34,450 Suze: purchase her home from the trust at the time of 209 00:13:34,460 --> 00:13:38,250 Suze: her passing. Right. If you so choose, if she's just 210 00:13:38,260 --> 00:13:41,859 Suze: leaving it outright to you, whether she gave you that 211 00:13:41,869 --> 00:13:46,010 Suze: option or not, you have the option to sell it 212 00:13:46,229 --> 00:13:50,039 Suze: if you want or to purchase it if you want 213 00:13:50,049 --> 00:13:52,799 Suze: from the trust, that's totally up to you. 214 00:13:53,080 --> 00:13:57,119 Suze: So the trust doesn't take away from that at all. 215 00:13:57,130 --> 00:13:59,969 Suze: What the trust will do is it will provide that 216 00:13:59,979 --> 00:14:03,978 Suze: you get the house probably within two weeks versus possibly 217 00:14:03,989 --> 00:14:08,030 Suze: two years. And you also get a step up in 218 00:14:08,039 --> 00:14:12,598 Suze: cost basis either way. So that if you do decide 219 00:14:12,890 --> 00:14:16,840 Suze: to sell the house, chances are you won't owe any 220 00:14:16,849 --> 00:14:19,679 Suze: income taxes on it at all. 221 00:14:19,729 --> 00:14:24,380 KT: Suze, next question is from Karen. My in-laws in California 222 00:14:24,390 --> 00:14:28,380 KT: passed away about five years ago. They were both in 223 00:14:28,390 --> 00:14:30,900 KT: a convalescent home during their passing, 224 00:14:31,210 --> 00:14:36,000 KT: their primary residence remained empty after they passed, they did 225 00:14:36,010 --> 00:14:39,679 KT: not have a will or trust the house was paid 226 00:14:39,690 --> 00:14:43,479 KT: for with no mortgage. None of the adult Children did 227 00:14:43,489 --> 00:14:48,359 KT: anything with the house. Is it still in the deceased names? 228 00:14:48,369 --> 00:14:51,859 KT: Is there a deadline to go through probate? Will there 229 00:14:51,869 --> 00:14:55,900 KT: be penalties for the delay? Sounds like Karen wants to 230 00:14:55,909 --> 00:14:56,799 KT: try to 231 00:14:57,260 --> 00:15:00,630 KT: help, you know, take the property back. I don't know. 232 00:15:00,640 --> 00:15:01,390 KT: What do you think? 233 00:15:01,400 --> 00:15:06,020 Suze: So, what's interesting... she says my in-laws in California. So, 234 00:15:06,030 --> 00:15:09,929 Suze: what do you think the relationship is that her husband 235 00:15:09,940 --> 00:15:13,039 Suze: or her spouse's parents... 236 00:15:13,770 --> 00:15:16,739 KT: Right. So, it's her spouse that hasn't done a damn 237 00:15:16,750 --> 00:15:19,039 KT: thing about it. None of them have done anything. It's 238 00:15:19,049 --> 00:15:22,479 KT: like they don't care. And Karen is thinking, well, wait 239 00:15:22,489 --> 00:15:23,700 KT: a minute, maybe we can... 240 00:15:23,710 --> 00:15:27,340 Suze: Karen, you're the only smart one among all these in-laws 241 00:15:27,349 --> 00:15:30,530 Suze: of yours on some level. They're kind of like outlaws 242 00:15:30,539 --> 00:15:33,659 Suze: at this period of time. Listen to me 243 00:15:34,169 --> 00:15:36,849 Suze: in the state of California, which is probably the worst 244 00:15:36,859 --> 00:15:39,989 Suze: state in the United States to have to go through probate. 245 00:15:40,090 --> 00:15:45,400 Suze: But it, there usually is a 30 day limit to 246 00:15:45,409 --> 00:15:50,640 Suze: where probate has to be begin. And if you, they 247 00:15:50,650 --> 00:15:53,299 Suze: failed to do so, if the in-laws failed to do so, 248 00:15:53,364 --> 00:15:58,294 Suze: so then you bet you that's gonna lead to penalties. Now, 249 00:15:58,304 --> 00:16:00,934 Suze: do you know for a fact that the house is 250 00:16:00,945 --> 00:16:05,164 Suze: still in the name of the parents? Have you checked that? 251 00:16:05,205 --> 00:16:07,364 Suze: How does she do that? She would go down to 252 00:16:07,375 --> 00:16:10,044 Suze: the court systems and find out who's the title on 253 00:16:10,054 --> 00:16:15,344 Suze: this house? Because if that's true, then what's really important 254 00:16:15,354 --> 00:16:18,734 Suze: is that one of you needs to file a petition 255 00:16:18,744 --> 00:16:20,395 Suze: with the probate court 256 00:16:20,700 --> 00:16:27,630 Suze: that's in the county where your in-laws absolutely resided and died. 257 00:16:27,710 --> 00:16:32,559 Suze: Then the court will then appoint an executor, uh to 258 00:16:32,570 --> 00:16:37,590 Suze: deal with everything. However, you have to know when somebody 259 00:16:37,599 --> 00:16:40,729 Suze: dies without a will or a trust 260 00:16:41,349 --> 00:16:47,599 Suze: number one, it passes by something known as intestate succession. 261 00:16:47,710 --> 00:16:51,679 Suze: So the state of California has already decided who is 262 00:16:51,690 --> 00:16:55,039 Suze: to get what of the estate that was left? Now, 263 00:16:55,049 --> 00:16:59,609 Suze: I'm assuming the only thing that was left obviously was 264 00:16:59,619 --> 00:17:03,919 Suze: the house and that there was absolutely no money whatsoever. 265 00:17:04,280 --> 00:17:09,369 Suze: So has been paying the property taxes on this house 266 00:17:09,380 --> 00:17:11,969 Suze: because if they haven't been paying the property taxes on 267 00:17:11,979 --> 00:17:15,150 Suze: this house for all these years, I'm sure there is 268 00:17:15,160 --> 00:17:18,489 Suze: a tax lien that is now on this house. And 269 00:17:18,500 --> 00:17:21,569 Suze: if it keeps going, they have the right to sell 270 00:17:21,579 --> 00:17:22,629 Suze: the house, 271 00:17:22,939 --> 00:17:27,530 Suze: right? Because obviously everybody's abandoned it. So this is not 272 00:17:27,540 --> 00:17:32,688 Suze: a good situation. So, whoever you're involved with, that's an 273 00:17:32,699 --> 00:17:37,699 Suze: in-law of these people who died. Are you kidding me? 274 00:17:37,920 --> 00:17:43,810 Suze: Are you kidding me? Right. So whoever you're dealing with 275 00:17:43,819 --> 00:17:46,329 Suze: in terms of you're in a relationship with that is 276 00:17:46,339 --> 00:17:49,520 Suze: involved in this, you better give them a swift kick 277 00:17:49,530 --> 00:17:50,810 Suze: in their booty. 278 00:17:51,349 --> 00:17:55,859 Suze: Maybe a really hard one because this is just stupid 279 00:17:55,939 --> 00:17:59,349 Suze: because more and more penalties are going to be assessed. 280 00:17:59,359 --> 00:18:02,319 Suze: There's a lot of money that is being left on 281 00:18:02,329 --> 00:18:06,089 Suze: the table here. It just makes absolutely no sense that 282 00:18:06,099 --> 00:18:10,669 Suze: they've done nothing with it whatsoever. So again, the main 283 00:18:10,680 --> 00:18:13,589 Suze: thing I can tell you is that you need to 284 00:18:13,599 --> 00:18:17,119 Suze: file a petition with the probate court in the county 285 00:18:17,150 --> 00:18:19,459 Suze: that the parents resided in, 286 00:18:19,890 --> 00:18:23,760 Suze: right? When they count they resided in the house, they 287 00:18:24,800 --> 00:18:28,010 Suze: they resided in the house. So it's where they were, 288 00:18:28,020 --> 00:18:29,400 Suze: I'm sure part of that, 289 00:18:30,099 --> 00:18:35,250 Suze: that county there. Right. So, um, is that bad situation? 290 00:18:35,459 --> 00:18:38,478 KT: I have a question if this were me and I were her trying 291 00:18:38,489 --> 00:18:41,859 KT: to find out, should Karen find out if, if there's 292 00:18:41,869 --> 00:18:44,349 KT: any value to the house or the property, 293 00:18:44,719 --> 00:18:51,619 Suze: There is always some value to it, whether it's $10,000, $50 whatever. But regardless, 294 00:18:51,630 --> 00:18:54,770 Suze: penalties are now accruing because you have to, 295 00:18:54,864 --> 00:18:57,974 Suze: to file a probate. It's not like you can just 296 00:18:57,984 --> 00:19:03,474 Suze: walk away from things. So somebody has to be responsible 297 00:19:03,484 --> 00:19:05,964 Suze: for it or it's going to be sold, they're going 298 00:19:05,974 --> 00:19:10,334 Suze: to lose it all. And what a shame. It's just stupid. Karen. 299 00:19:10,760 --> 00:19:12,260 KT: No, you're not stupid. 300 00:19:12,270 --> 00:19:14,819 KT: You're not, you're not stupid. You're the smart one. 301 00:19:14,880 --> 00:19:17,310 Suze: Yeah. But if you're married to somebody that's stupid, I'd 302 00:19:17,319 --> 00:19:19,709 Suze: have to think twice about it. All right. Go ahead. 303 00:19:20,000 --> 00:19:21,709 KT: Ok. From Donna... 304 00:19:22,479 --> 00:19:25,839 Suze: Karen. Well, KT think about this. No, seriously. Now I'm 305 00:19:25,849 --> 00:19:28,260 Suze: pissed off. See, now I have some energy... 306 00:19:28,719 --> 00:19:29,569 KT: Now you're spicy. 307 00:19:29,579 --> 00:19:31,859 Suze: I was like, oh, these questions are ok, but there's 308 00:19:31,869 --> 00:19:36,989 Suze: no juice to them. Now, I'm full of spicy, spicy. I'm... 309 00:19:38,099 --> 00:19:43,719 Suze: But it's that if your spouse is so irresponsible in 310 00:19:43,729 --> 00:19:48,188 Suze: this situation that they did nothing, what have they done 311 00:19:48,199 --> 00:19:51,939 Suze: in regards to your own situation? Do you have a will? 312 00:19:51,949 --> 00:19:54,170 Suze: Do you have a trust? What are they gonna do 313 00:19:54,180 --> 00:19:56,410 Suze: if you were to predecease them? 314 00:19:57,050 --> 00:20:00,359 Suze: And do you have Children? And how really irresponsible are 315 00:20:00,369 --> 00:20:03,079 Suze: they gonna be at that point in time? So you 316 00:20:03,089 --> 00:20:06,739 Suze: better make sure that you have a trust a will, 317 00:20:06,750 --> 00:20:09,209 Suze: an advanced directive and a durable power of attorney for 318 00:20:09,219 --> 00:20:13,020 Suze: health care. You better protect yourself against the person that 319 00:20:13,030 --> 00:20:17,130 Suze: you're married to doesn't have the ability to do. Especially 320 00:20:17,140 --> 00:20:20,698 Suze: if they live in California, especially California is the worst 321 00:20:20,709 --> 00:20:23,500 Suze: because it's statutory probate fees. 322 00:20:23,849 --> 00:20:27,189 Suze: Right. Anyway, go on. No. Ok. 323 00:20:28,859 --> 00:20:34,300 KT: All right. Ready. Let's be nice. Donna has a nice question, Suze. 324 00:20:34,310 --> 00:20:38,270 KT: Recently you answered a question from someone who said her 325 00:20:38,280 --> 00:20:44,229 KT: financial planner bought an annuity without her approval. You indicated 326 00:20:44,239 --> 00:20:49,060 KT: that she might have signed some document giving him this power. 327 00:20:49,280 --> 00:20:52,660 KT: Can you tell me what was the name of that document? 328 00:20:52,750 --> 00:20:55,849 KT: I think I may have signed the same document 329 00:20:56,030 --> 00:20:59,159 KT: and I want to talk to my financial planner to 330 00:20:59,170 --> 00:21:01,719 KT: cancel it. Good for you, Donna. 331 00:21:01,750 --> 00:21:07,000 Suze: So normally Donna, when a financial advisor has the ability 332 00:21:07,010 --> 00:21:11,079 Suze: to make trades, buy for you, sell for you without 333 00:21:11,089 --> 00:21:13,839 Suze: having your permission to do so, 334 00:21:14,420 --> 00:21:19,629 Suze: you have signed what's called a discretionary account form. You 335 00:21:19,640 --> 00:21:24,119 Suze: are giving that advisor discretion to buy and sell things 336 00:21:24,130 --> 00:21:27,040 Suze: without consulting you. 337 00:21:27,369 --> 00:21:31,020 Suze: If that is not something that you want, then obviously 338 00:21:31,030 --> 00:21:34,739 Suze: you just call the advisor and you get rid of 339 00:21:34,750 --> 00:21:39,060 Suze: it so that they don't have the discretion to do. So. 340 00:21:39,089 --> 00:21:44,000 Suze: Just that simple many advisors though that take your money 341 00:21:44,010 --> 00:21:45,959 Suze: under a management fee, 342 00:21:46,540 --> 00:21:50,239 Suze: they're registered investment advisor. You give them a lump sum 343 00:21:50,250 --> 00:21:53,630 Suze: of money, they get to buy anything they want with you. 344 00:21:53,640 --> 00:21:56,879 Suze: And what's happening is they get a percentage of what's there. 345 00:21:56,910 --> 00:22:01,489 Suze: Normally they have discretion. But if you just have an 346 00:22:01,500 --> 00:22:05,170 Suze: account with a financial advisor that you aren't paying an 347 00:22:05,180 --> 00:22:08,410 Suze: annual fee for like 1% a year to manage your 348 00:22:08,420 --> 00:22:09,089 Suze: money 349 00:22:09,380 --> 00:22:12,770 Suze: and you're just, they're just buying and selling and getting 350 00:22:12,780 --> 00:22:17,290 Suze: commission to do so every time they make a buy 351 00:22:17,300 --> 00:22:20,469 Suze: or a sell, that is not right. And that you 352 00:22:20,479 --> 00:22:21,459 Suze: should change, 353 00:22:22,180 --> 00:22:27,770 Suze: right. The reason why when somebody takes money under a 354 00:22:27,780 --> 00:22:33,619 Suze: registered investment fee, they get 1% they don't participate in 355 00:22:33,630 --> 00:22:36,688 Suze: commission at all or they get less than 1%. They 356 00:22:36,699 --> 00:22:40,708 Suze: should never, by the way, get more than 1%. And 357 00:22:40,719 --> 00:22:43,640 Suze: therefore they're not making money if they buy or they 358 00:22:43,650 --> 00:22:47,119 Suze: sell or things like that in terms of commission, they're 359 00:22:47,130 --> 00:22:47,290 Suze: buying 360 00:22:47,530 --> 00:22:51,819 Suze: and selling things simply why, so that the account can 361 00:22:51,829 --> 00:22:56,500 Suze: grow because they want 1% on more money than 1% 362 00:22:56,510 --> 00:23:00,229 Suze: on less money. And if they start losing money for you, 363 00:23:00,310 --> 00:23:04,239 Suze: they get 1% or whatever the fee is of less money. 364 00:23:04,859 --> 00:23:07,750 Suze: So they really, you both then are on the same 365 00:23:07,760 --> 00:23:12,369 Suze: side but to buy something like an annuity or something 366 00:23:12,380 --> 00:23:15,750 Suze: like that, I doubt highly would be part of a 367 00:23:15,760 --> 00:23:20,089 Suze: registered investment advisors fee to do so. 368 00:23:20,099 --> 00:23:22,929 KT: All right, Suze, I have one last 369 00:23:23,949 --> 00:23:27,438 KT: email. It's not a question. Well, it is a question. 370 00:23:27,449 --> 00:23:30,889 KT: It's from Marissa. This might calm you down and take 371 00:23:30,900 --> 00:23:32,180 KT: you down memory lane. 372 00:23:32,189 --> 00:23:33,900 Suze: What you like when I'm calmer? 373 00:23:33,910 --> 00:23:36,439 KT: You always, we all do, right? Everybody. 374 00:23:36,449 --> 00:23:37,209 Suze: You do not. 375 00:23:38,540 --> 00:23:42,189 KT: Hi, Suze, I'm currently... 376 00:23:42,199 --> 00:23:44,810 Suze: and I would be just like every other boring financial 377 00:23:44,819 --> 00:23:46,349 Suze: advisor out there. Go on. 378 00:23:46,359 --> 00:23:51,780 KT: Hi, Suze. I'm currently interested in pursuing finance. I know 379 00:23:51,790 --> 00:23:56,609 KT: you have your own podcast and share your knowledge on finance. 380 00:23:56,849 --> 00:24:00,089 KT: I have a few questions for you. Do you love 381 00:24:00,099 --> 00:24:05,729 KT: what you do? And do you regret anything with your occupation? 382 00:24:06,920 --> 00:24:09,000 Suze: Do you want to answer these one at a time? 383 00:24:09,260 --> 00:24:12,069 Suze: This one's a good one. If I'm not that great 384 00:24:12,079 --> 00:24:14,989 Suze: at math, should I still consider finance? 385 00:24:15,910 --> 00:24:18,810 KT: Marissa, I'm not great at math. And there's something called 386 00:24:18,819 --> 00:24:23,218 KT: computers out there. All right. Then what advice would you 387 00:24:23,229 --> 00:24:25,640 KT: give to pursuing a career? 388 00:24:25,650 --> 00:24:27,510 Suze: Does she say how old she is? 389 00:24:27,729 --> 00:24:31,209 KT: No, but I'm assuming she's, she's pretty young and.. 390 00:24:31,290 --> 00:24:36,619 Suze: You know, it's interesting KT lately, a lot of kids 391 00:24:36,630 --> 00:24:41,180 Suze: when you're 72 you can call them kids, right? 29 392 00:24:41,189 --> 00:24:43,780 Suze: 30 years of age are writing all of a sudden, 393 00:24:44,349 --> 00:24:50,000 Suze: even though I had originally geared this podcast to everybody 394 00:24:50,010 --> 00:24:52,739 Suze: who is like 50 60 70 years of age and 395 00:24:52,750 --> 00:24:56,458 Suze: older because very few podcasts when it comes to money 396 00:24:56,469 --> 00:25:01,270 Suze: are geared towards the elder crowd. So I just find 397 00:25:01,280 --> 00:25:05,040 Suze: that fascinating that 29 year olds are writing. Marissa, listened 398 00:25:05,050 --> 00:25:08,900 Suze: to me it doesn't matter what occupation that you're in, 399 00:25:09,469 --> 00:25:10,640 Suze: you better love it 400 00:25:11,119 --> 00:25:14,140 Suze: and you better love it with all of your heart. 401 00:25:14,270 --> 00:25:17,670 Suze: I want you to think about this for 40 years now. 402 00:25:17,680 --> 00:25:20,849 Suze: I've been doing this, I've essentially been asked the same 403 00:25:20,859 --> 00:25:24,889 Suze: questions because when it comes to money, questions are relatively 404 00:25:24,900 --> 00:25:29,790 Suze: the same over and over and over again. I've answered 405 00:25:29,800 --> 00:25:34,609 Suze: tens of thousands of questions that I've answered before, over 406 00:25:34,619 --> 00:25:35,890 Suze: and over again. 407 00:25:36,180 --> 00:25:39,390 Suze: And I love answering every single one of them because 408 00:25:39,400 --> 00:25:42,719 Suze: I love what I do. I love that I have 409 00:25:42,729 --> 00:25:46,550 Suze: the ability to help people with their money and in 410 00:25:46,560 --> 00:25:51,050 Suze: life really. There's nothing in my opinion that is essential 411 00:25:51,060 --> 00:25:55,399 Suze: as knowing about your health and your wealth. You've got 412 00:25:55,410 --> 00:25:59,250 Suze: to know about these two things. You can't just trust 413 00:25:59,260 --> 00:26:02,709 Suze: it to somebody else. You have to be knowledgeable about 414 00:26:02,719 --> 00:26:03,889 Suze: it as well. 415 00:26:04,140 --> 00:26:07,770 Suze: So do I love what I do? I love it 416 00:26:07,780 --> 00:26:10,010 Suze: with so much you can hear it in my voice 417 00:26:10,020 --> 00:26:13,469 Suze: right now. I have a passion for it that I 418 00:26:13,479 --> 00:26:18,488 Suze: can do this forever and a day into the future. 419 00:26:18,660 --> 00:26:22,939 Suze: If I were lucky enough to be able to do so, no, 420 00:26:23,109 --> 00:26:27,250 Suze: I don't have any regrets about my own personal occupation. 421 00:26:27,260 --> 00:26:31,629 Suze: But that's because I've always been strong enough to stand 422 00:26:31,640 --> 00:26:32,189 Suze: up 423 00:26:32,479 --> 00:26:36,389 Suze: to what I believe in and to stand in my truth. 424 00:26:36,400 --> 00:26:39,790 Suze: A lot of times in finances, you have to do 425 00:26:39,800 --> 00:26:43,188 Suze: what the company who you're working for. Wants you to do. 426 00:26:43,380 --> 00:26:47,060 Suze: You have to really be able to go. Oh, really? 427 00:26:47,069 --> 00:26:48,930 Suze: And you have to do it in order to keep 428 00:26:48,939 --> 00:26:51,910 Suze: the job even though you may not believe in it. 429 00:26:52,310 --> 00:26:55,199 Suze: So I don't have any regrets. And that's because I 430 00:26:55,209 --> 00:27:01,219 Suze: have never put money before. The advice that I give people, 431 00:27:01,760 --> 00:27:05,410 Suze: I give people the advice that's good for them no 432 00:27:05,420 --> 00:27:10,270 Suze: matter what that means for me financially. So I don't 433 00:27:10,280 --> 00:27:13,770 Suze: have any regrets, but you have to be careful because 434 00:27:13,780 --> 00:27:18,688 Suze: in this industry it's easy to do what others want 435 00:27:18,699 --> 00:27:21,050 Suze: you to do so that you can make money over 436 00:27:21,060 --> 00:27:23,949 Suze: doing what's right for the people. 437 00:27:24,239 --> 00:27:27,670 Suze: And you ask me or you say that you're not 438 00:27:27,680 --> 00:27:32,500 Suze: good at math. Should I still consider finance? Math, English? 439 00:27:32,510 --> 00:27:36,329 Suze: Any talent that you can learn at a university is 440 00:27:36,339 --> 00:27:40,810 Suze: not what will make you a great financial advisor. You 441 00:27:40,819 --> 00:27:44,989 Suze: have the ability to really comprehend it with your heart, 442 00:27:45,000 --> 00:27:47,410 Suze: with your mind, with your soul. 443 00:27:47,819 --> 00:27:52,280 Suze: I was dyslexic. I wasn't good in English. I really 444 00:27:52,290 --> 00:27:54,630 Suze: was a waitress as you know, till I was 30 445 00:27:54,640 --> 00:27:58,489 Suze: years of age, essentially making only $400 a month. I 446 00:27:58,500 --> 00:28:04,209 Suze: had no preparation on any level really to become a 447 00:28:04,219 --> 00:28:06,069 Suze: financial advisor... 448 00:28:06,079 --> 00:28:10,929 KT: No, to become the world's personal finance expert. 449 00:28:10,939 --> 00:28:12,300 Suze: Yeah. What's interesting KT.. 450 00:28:12,520 --> 00:28:13,920 KT: The world everybody, 451 00:28:13,939 --> 00:28:16,010 Suze: Yes. But want to hear what's interesting is that 452 00:28:16,229 --> 00:28:19,839 Suze: I said that about myself and somebody wrote it, 453 00:28:19,849 --> 00:28:23,390 KT: Then they should complain to the White House or to 454 00:28:23,400 --> 00:28:29,159 KT: Washington DC or to the Pentagon or to every major 455 00:28:29,170 --> 00:28:34,839 KT: publication about Money. Suze Orman was titled not by herself, 456 00:28:34,849 --> 00:28:36,319 KT: but by all of them, 457 00:28:36,569 --> 00:28:38,530 KT: the world's personal finance... 458 00:28:38,739 --> 00:28:42,390 Suze: And a lot of that is because I've traveled the world. 459 00:28:42,400 --> 00:28:46,680 Suze: Remember the Suze Orman show was shown in 18 different 460 00:28:46,689 --> 00:28:50,560 Suze: countries throughout the world. I'm not sure if the other 461 00:28:50,569 --> 00:28:54,260 Suze: people that are the so-called financial pundits of the United 462 00:28:54,270 --> 00:29:01,880 Suze: States of America traveled to India, Australia, all of Asia 463 00:29:01,890 --> 00:29:05,800 Suze: and South Africa where they sold out 464 00:29:05,900 --> 00:29:09,689 Suze: 12,000 tickets in like just a few minutes. I have 465 00:29:09,699 --> 00:29:13,349 Suze: traveled the world and I am known throughout the world. 466 00:29:13,359 --> 00:29:16,430 Suze: My books are written and God knows how my language 467 00:29:18,079 --> 00:29:23,969 Suze: and therefore that's how that title came about. So please 468 00:29:23,979 --> 00:29:28,170 Suze: know it's not me giving me myself that it's really 469 00:29:28,180 --> 00:29:31,250 Suze: the studies of who was the most recognizable and on 470 00:29:31,260 --> 00:29:31,810 Suze: and on. 471 00:29:31,819 --> 00:29:34,239 KT: So, do you think Marissa has what it takes for 472 00:29:34,250 --> 00:29:35,150 KT: this career? 473 00:29:35,839 --> 00:29:41,170 Suze: Well, only Marissa knows. Right. So that girlfriend is how 474 00:29:41,180 --> 00:29:45,119 Suze: I would answer that question for you girlfriend. 475 00:29:45,130 --> 00:29:46,449 KT: Ready, Suze? Where's my quizzie? 476 00:29:46,640 --> 00:29:53,030 Suze: Oh, I have your quizzie on your most favorite topic? Oh, yes, 477 00:29:54,319 --> 00:29:57,250 Suze: I love asking you a Roth question. 478 00:29:57,530 --> 00:30:02,050 Suze: Right. Listen up everybody for all of us. Kara says, Hi, 479 00:30:02,060 --> 00:30:08,209 Suze: Suze and KT longtime fan and listener love you both 480 00:30:08,459 --> 00:30:12,689 Suze: my husband and I are both 61. Our gross annual 481 00:30:12,699 --> 00:30:14,619 Suze: income is 200,000. 482 00:30:14,890 --> 00:30:18,250 Suze: The kids are grown and off the dole. That's kind 483 00:30:18,260 --> 00:30:23,959 Suze: of funny. KT, no debt except a small mortgage at 2.5% 484 00:30:23,969 --> 00:30:27,979 Suze: fixed that will be paid off in 3 to 4 years. 485 00:30:27,989 --> 00:30:33,349 Suze: They have about 1.2 million in a traditional retirement account. 486 00:30:33,609 --> 00:30:37,640 Suze: Plus we have a 12 month emergency fund. Are you 487 00:30:37,650 --> 00:30:40,099 Suze: all writing these things down? 488 00:30:40,839 --> 00:30:45,750 Suze: The question is, should we be doing a Roth 401k 489 00:30:45,760 --> 00:30:51,349 Suze: available through our employer with 3% match and a rough 490 00:30:51,359 --> 00:30:55,780 Suze: ira at our age or are there more or are 491 00:30:55,790 --> 00:31:01,290 Suze: they for more young people? We have always done tax deferred. 492 00:31:01,300 --> 00:31:05,079 Suze: We're going to need about $8000 per month after tax 493 00:31:05,089 --> 00:31:09,410 Suze: when we retire to live comfortably and have a little fun. 494 00:31:09,689 --> 00:31:14,579 Suze: We are healthy active, projected to get about 56 30 495 00:31:14,589 --> 00:31:19,349 Suze: a month. If we take social security at 67 we 496 00:31:19,359 --> 00:31:24,410 Suze: appreciate your advice in the final stretch of our working 497 00:31:24,540 --> 00:31:29,819 Suze: years at KT. Think about it closely. 498 00:31:30,160 --> 00:31:36,219 Suze: Our Roth retirement accounts is what she is asking is 499 00:31:36,229 --> 00:31:41,930 Suze: that for people who are younger than 61 years of 500 00:31:41,939 --> 00:31:45,650 Suze: age and they're obviously still working. 501 00:31:45,869 --> 00:31:49,780 Suze: They expect to stay active and healthy, right. They plan 502 00:31:49,790 --> 00:31:53,619 Suze: to take social security at 67 but they want to 503 00:31:53,630 --> 00:31:59,079 Suze: really live comfortably and have a little fun after retirement, 504 00:31:59,329 --> 00:32:02,170 Suze: should they or should they not 505 00:32:02,525 --> 00:32:08,074 Suze: continue to do? Roth 401kz plus a Roth Ira. 506 00:32:08,285 --> 00:32:12,055 KT: Yeah. First Suze, I would not pass up the employer 507 00:32:12,064 --> 00:32:13,474 KT: match of 3%. 508 00:32:13,484 --> 00:32:18,074 Suze: So good. So good. Ding, ding, ding, ding, ding, ding, ding, ding, ding. Yes. 509 00:32:19,449 --> 00:32:22,439 KT: I absolutely wouldn't pass that up. And why not have 510 00:32:22,449 --> 00:32:23,390 KT: the other one? 511 00:32:27,109 --> 00:32:30,459 KT: This has nothing to do with age has to do 512 00:32:30,469 --> 00:32:33,339 KT: a lot with time but not with age. So, 513 00:32:35,109 --> 00:32:38,050 KT: That was good. Right. I got it. 514 00:32:38,310 --> 00:32:45,349 Suze: You got double ding, ding, ding dong, ding dong, ding dong. 515 00:32:45,359 --> 00:32:48,630 Suze: You were so good. Yes, and you knew it right away. 516 00:32:48,859 --> 00:32:53,869 Suze: No Kara. Seriously listened to me. Now the answer to 517 00:32:53,880 --> 00:32:55,550 Suze: this question really 518 00:32:56,089 --> 00:33:00,530 Suze: can help you live the lifestyle that you asked to live. 519 00:33:00,550 --> 00:33:07,689 Suze: You need $8000 a month after taxes you say to live. 520 00:33:07,699 --> 00:33:11,949 Suze: All right, you're 61. Obviously, you're thinking of retiring at 521 00:33:11,959 --> 00:33:15,939 Suze: 67 because that's when your social security you say will start. 522 00:33:16,020 --> 00:33:18,660 Suze: So that's six years from now 523 00:33:19,219 --> 00:33:25,250 Suze: in six years, the $1.2 million in your traditional IRA, 524 00:33:25,260 --> 00:33:29,790 Suze: which is going to be totally taxable to you. If 525 00:33:29,800 --> 00:33:32,050 Suze: you even just kept it safe and sound in a 526 00:33:32,060 --> 00:33:40,119 Suze: treasury right now at 4% will be worth $1.5 million 527 00:33:40,130 --> 00:33:42,810 Suze: at that time. Now listen to me closely 528 00:33:43,619 --> 00:33:48,310 Suze: if you claim social security at that time, which is 529 00:33:48,319 --> 00:33:54,010 Suze: $5630 a month between the two of you since you 530 00:33:54,020 --> 00:33:56,550 Suze: are both the same age. 531 00:33:56,910 --> 00:34:02,839 Suze: You have to understand after taxes on that because obviously 85% of, 532 00:34:02,849 --> 00:34:05,479 Suze: that's going to be taxed because of the money you're 533 00:34:05,489 --> 00:34:10,850 Suze: gonna be taking out of your taxable Ira at that time. 534 00:34:11,060 --> 00:34:16,449 Suze: And Medicare premium B you're gonna be lucky if you 535 00:34:16,459 --> 00:34:23,569 Suze: get $4000 a month after taxes from your Social security, 536 00:34:23,820 --> 00:34:28,859 Suze: that will leave you the need of $4000 a month 537 00:34:28,870 --> 00:34:34,750 Suze: after taxes from your IRA to meet the $8000 a 538 00:34:34,760 --> 00:34:38,540 Suze: month that you want. That means you're going to take 539 00:34:38,550 --> 00:34:43,179 Suze: out 4% or $60,000 a year. 540 00:34:44,129 --> 00:34:49,360 Suze: From what? From your IRA? That's totally taxable to you. 541 00:34:49,520 --> 00:34:53,489 Suze: It's about $1000 a month in taxes. So that gives 542 00:34:53,500 --> 00:34:59,540 Suze: you your $8000 a month. Not a good plan cutting 543 00:34:59,550 --> 00:35:03,399 Suze: it too close if however you were smart 544 00:35:03,889 --> 00:35:07,310 Suze: and you both stop this thing about the Roth IRAs 545 00:35:07,350 --> 00:35:11,280 Suze: being for people who are younger. If you were to 546 00:35:11,290 --> 00:35:14,909 Suze: continue to fund both of you, your Roth Ira s 547 00:35:14,919 --> 00:35:20,969 Suze: to the max because you're 50 or older is $625 548 00:35:20,979 --> 00:35:24,820 Suze: a month, a piece or $7500 a year for each 549 00:35:24,830 --> 00:35:28,780 Suze: of you or $1250 a month together 550 00:35:29,679 --> 00:35:33,679 Suze: over the next six years till you are 67 at 551 00:35:33,689 --> 00:35:41,560 Suze: just 4%. You would have $101,000 in there. Absolutely tax 552 00:35:41,649 --> 00:35:45,169 Suze: free more than you have. Now, if you were to 553 00:35:45,179 --> 00:35:51,189 Suze: continue to contribute up to 3% of your match, which 554 00:35:51,199 --> 00:35:56,109 Suze: is all your company matches in your Roth 401k. 555 00:35:56,439 --> 00:36:00,199 Suze: That would be 500 a month from you, $500 a 556 00:36:00,209 --> 00:36:03,620 Suze: month from your employer. That would be in another six 557 00:36:03,629 --> 00:36:13,638 Suze: years at 4% $81,000. You now would have $182,000 tax 558 00:36:13,649 --> 00:36:14,399 Suze: free 559 00:36:15,020 --> 00:36:18,509 Suze: if you took $8000 a month 560 00:36:19,429 --> 00:36:23,750 Suze: out of your tax free Roth. Just from the two 561 00:36:23,760 --> 00:36:30,659 Suze: things we just did that will carry you two more years. 562 00:36:30,699 --> 00:36:34,639 Suze: At that point, you have two more years of growth 563 00:36:34,649 --> 00:36:38,219 Suze: of your Ira money and you can then collect social 564 00:36:38,229 --> 00:36:43,799 Suze: security at 69 versus 67 which will be an incredible 565 00:36:43,810 --> 00:36:45,159 Suze: raise to you 566 00:36:45,409 --> 00:36:50,000 Suze: and then your life will work far easier. That's something 567 00:36:50,010 --> 00:36:53,760 Suze: that you should consider either way. However you do, it 568 00:36:53,770 --> 00:36:59,370 Suze: do not stop contributing fully to your Roth Ira s 569 00:36:59,379 --> 00:37:02,500 Suze: and at least up to the point of the match 570 00:37:02,510 --> 00:37:08,399 Suze: in your what? Roth 401k? Oh my God. 571 00:37:08,760 --> 00:37:13,010 Suze: Maybe that was a, that was a financial plan. Maybe 572 00:37:13,020 --> 00:37:15,560 Suze: the woman who just asked about. Does she have to 573 00:37:15,570 --> 00:37:19,159 Suze: be good in math to do this? Maybe a little 574 00:37:19,169 --> 00:37:21,770 Suze: bit because you have to be able to think like 575 00:37:21,780 --> 00:37:24,500 Suze: that and do things like that almost like in your 576 00:37:24,510 --> 00:37:25,110 Suze: head 577 00:37:25,409 --> 00:37:29,580 Suze: to be able to off the cuff, tell people what 578 00:37:29,590 --> 00:37:31,139 Suze: they need to do. 579 00:37:31,149 --> 00:37:34,549 KT: All right. So that's a, that's a wrap Suze. That's 580 00:37:34,560 --> 00:37:38,089 KT: a good financial plan. I got a little energy boost 581 00:37:38,100 --> 00:37:38,429 KT: with that... 582 00:37:39,530 --> 00:37:42,429 Suze: but it's you know what's wrong with me? KT is 583 00:37:42,439 --> 00:37:45,229 Suze: only letting me drink like a quarter of a cup 584 00:37:45,239 --> 00:37:46,169 Suze: of coffee in the morning. 585 00:37:46,209 --> 00:37:48,919 KT: That's it. That's all you need. Just a couple sips. 586 00:37:48,929 --> 00:37:49,739 KT: Get you going. 587 00:37:49,770 --> 00:37:53,040 Suze: Well, obviously I needed more than that today. I needed 588 00:37:53,050 --> 00:37:53,110 Suze: an 589 00:37:53,350 --> 00:37:58,060 Suze: question that aggravated me. Can I have another cup of coffee? 590 00:37:58,070 --> 00:38:01,159 Suze: Can I have a full cup of coffee? I said 591 00:38:01,169 --> 00:38:03,560 Suze: when you have breakfast and then she didn't want breakfast. 592 00:38:03,570 --> 00:38:07,189 KT: So we have our green protein shake, which is delicious... 593 00:38:07,280 --> 00:38:10,040 Suze: But nothing was stopping me from getting off my booty 594 00:38:10,050 --> 00:38:12,489 Suze: and making my own cup of coffee if I really 595 00:38:12,500 --> 00:38:13,320 Suze: wanted it. 596 00:38:13,580 --> 00:38:21,219 KT: Ok. So let's just remind everyone, Suze today, wherever I go, 597 00:38:21,449 --> 00:38:23,820 KT: we will create a more... 598 00:38:25,000 --> 00:38:26,280 Suze: I forgot because... 599 00:38:26,290 --> 00:38:30,810 KT: peaceful, loving and joyful world. 600 00:38:30,820 --> 00:38:34,899 Suze: And if you do that, everybody and say that every day, 601 00:38:34,909 --> 00:38:38,739 Suze: day in and day out or do we promise them, KT? 602 00:38:38,750 --> 00:38:41,629 KT: You will be unstoppable. 603 00:38:41,709 --> 00:38:43,070 Suze: Yeah, baby, 604 00:38:47,959 --> 00:38:48,979 Music: Music (out).