1 00:00:33,510 --> 00:00:37,030 KT: Hi everybody. Welcome to the Women and Money podcast with 2 00:00:37,040 --> 00:00:41,710 KT: KT in the house and Suze's here too. So 3 00:00:41,710 --> 00:00:42,870 KT: this is November 4 00:00:42,870 --> 00:00:47,510 KT: 9th. It's our countdown. We almost have Thanksgiving around the corner. 5 00:00:47,520 --> 00:00:52,880 KT: My favorite holiday. It's the one day of the year 6 00:00:52,890 --> 00:00:58,660 KT: that Suze cooks the entire Thanksgiving meal at least most 7 00:00:58,660 --> 00:01:01,220 KT: of it. The most important are the turkeys, 8 00:01:01,320 --> 00:01:02,270 Suze: And the stuffing... 9 00:01:02,280 --> 00:01:04,429 KT: and the stuffing. But we have two turkeys because we 10 00:01:04,430 --> 00:01:09,840 KT: have like 20 people this year. It's our big family reunion. Finally, finally, 11 00:01:09,840 --> 00:01:13,960 KT: our first thanksgiving after covid with everybody, right? 12 00:01:15,260 --> 00:01:17,500 Suze: Almost I was liking it with just you, me and Colo. Was 13 00:01:17,500 --> 00:01:18,539 Suze: that bad? 14 00:01:18,990 --> 00:01:23,009 KT: Colo would gain like ten pounds just from one day. He 15 00:01:23,010 --> 00:01:25,500 KT: would eat the whole thing. So now he has to 16 00:01:25,500 --> 00:01:29,320 KT: share and he'll stay nice and trim. Okay, ready? November 17 00:01:29,319 --> 00:01:34,520 KT: 9th everybody. The first question Suze is from Sarah, Do 18 00:01:34,520 --> 00:01:35,500 KT: you want to say anything? 19 00:01:35,510 --> 00:01:38,470 Suze: Well, I'm looking at you and I'm wondering to myself 20 00:01:38,480 --> 00:01:40,200 Suze: now let's say somebody 21 00:01:41,080 --> 00:01:45,870 Suze: tuned in or downloaded the podcast for the very first time. 22 00:01:45,930 --> 00:01:49,419 Suze: How would they even know what today is about 23 00:01:49,860 --> 00:01:53,990 KT: Today's women and money. It's our podcast. If listen, if 24 00:01:53,990 --> 00:01:56,660 KT: you're tuning in for the first time, guess what? There's 25 00:01:56,660 --> 00:02:01,350 KT: 400 plus of these you can listen to. So just 26 00:02:01,350 --> 00:02:02,960 KT: hang in there with me. Here we go! 27 00:02:03,200 --> 00:02:07,250 Suze: Before you start. I do want to say something. Obviously. 28 00:02:07,250 --> 00:02:10,630 Suze: If you want to ask a question where we choose it. 29 00:02:10,630 --> 00:02:11,540 Suze: KT chooses 30 00:02:11,540 --> 00:02:12,739 Suze: it... 31 00:02:13,675 --> 00:02:13,946 KT: Right. 32 00:02:13,946 --> 00:02:17,516 Suze: ...to be answered on the women and money podcast. You 33 00:02:17,516 --> 00:02:20,796 Suze: would send in your question to ask Suze S- U- 34 00:02:20,796 --> 00:02:23,995 Suze: Z- E Podcast you would think everybody would know how to 35 00:02:23,996 --> 00:02:26,536 Suze: spell my name by now but they don't. But anyway 36 00:02:26,546 --> 00:02:32,025 Suze: ask Suze podcast at gmail dot com or you could 37 00:02:32,026 --> 00:02:35,136 Suze: go to the Women and Money app, you could download 38 00:02:35,136 --> 00:02:35,640 Suze: it by 39 00:02:35,651 --> 00:02:39,762 Suze: downloading Apple apps, Google play and you can ask your 40 00:02:39,762 --> 00:02:43,431 Suze: question there. Also at the end of every podcast that 41 00:02:43,431 --> 00:02:48,272 Suze: we list there people ask questions and when they're on 42 00:02:48,272 --> 00:02:53,001 Suze: the app I tend to answer them almost right away. 43 00:02:53,012 --> 00:02:55,232 Suze: So you might want to think about that. But no 44 00:02:55,242 --> 00:02:58,542 Suze: really KT, I want to say one thing, okay? 45 00:02:59,570 --> 00:03:04,300 Suze: If you write in a question that goes on and 46 00:03:04,310 --> 00:03:06,460 Suze: on and on and 47 00:03:06,470 --> 00:03:08,720 KT: or has multiple parts 48 00:03:08,730 --> 00:03:13,660 Suze: and I start to read those and my eyes cross 49 00:03:13,669 --> 00:03:16,540 Suze: and you can imagine that if 1000 of those come 50 00:03:16,540 --> 00:03:19,900 Suze: in it would drive you a little bit like really. 51 00:03:21,850 --> 00:03:22,070 KT: I 52 00:03:22,070 --> 00:03:25,109 KT: put them in a pile called rainy day and those 53 00:03:25,110 --> 00:03:28,620 KT: are that's the pile where it's way too long to 54 00:03:28,620 --> 00:03:31,180 KT: answer on the podcast. And I give these to Suze 55 00:03:31,180 --> 00:03:34,100 KT: and when it's a rainy day and she's just cuddled 56 00:03:34,100 --> 00:03:38,010 KT: up with her computer, she answers them at her leisure. 57 00:03:38,010 --> 00:03:39,830 Suze: But chances are 58 00:03:40,160 --> 00:03:44,370 Suze: I do personally answer your questions by the way that 59 00:03:44,370 --> 00:03:48,380 Suze: you write in when they are short succinct I can 60 00:03:48,380 --> 00:03:51,070 Suze: read them, I can answer them and they're done when 61 00:03:51,070 --> 00:03:54,340 Suze: they go on and on. Sometimes I'm like and I 62 00:03:54,340 --> 00:03:57,430 Suze: skip it. So I wish I could be your individual 63 00:03:57,430 --> 00:04:00,860 Suze: financial advisor telling you exactly what to do in your 64 00:04:00,860 --> 00:04:02,210 Suze: particular situation. 65 00:04:02,460 --> 00:04:06,870 Suze: But thousands of you write in and I just can't. 66 00:04:06,880 --> 00:04:10,940 Suze: So don't feel like I'm ignoring you. You know, just 67 00:04:10,940 --> 00:04:14,790 Suze: break down your questions, make them simple. Alright KT ask 68 00:04:14,790 --> 00:04:15,410 Suze: away 69 00:04:15,410 --> 00:04:19,810 KT: First questions from Sarah. Dear Suze. When I get paid, 70 00:04:19,820 --> 00:04:23,469 KT: I pay my bills. But after that, when I buy 71 00:04:23,470 --> 00:04:28,320 KT: my groceries I spend just about every dollar I have. 72 00:04:28,330 --> 00:04:31,260 KT: I think it's a security thing with me. 73 00:04:31,470 --> 00:04:35,650 KT: What is your yearly budget plan or ideas on how 74 00:04:35,650 --> 00:04:38,660 KT: I can start saving? I know what you're going to tell. 75 00:04:38,670 --> 00:04:40,900 Suze: Well let me tell her first and let's see if 76 00:04:40,900 --> 00:04:41,870 Suze: you are correct. 77 00:04:41,880 --> 00:04:43,680 KT: Okay I know what the answer is. 78 00:04:43,690 --> 00:04:49,300 Suze: But Sarah you say in your email that besides obviously 79 00:04:49,300 --> 00:04:51,470 Suze: all your bills and probably what it takes you with 80 00:04:51,470 --> 00:04:55,580 Suze: your home and everything like that right? You spend every 81 00:04:55,589 --> 00:04:58,520 Suze: extra cent on food. 82 00:04:59,080 --> 00:05:03,260 Suze: And that is because you said it makes you feel 83 00:05:03,270 --> 00:05:04,150 Suze: secure 84 00:05:05,710 --> 00:05:08,000 Suze: sweetheart. That's not security. 85 00:05:09,070 --> 00:05:11,730 Suze: Food comes and food goes and then you have to 86 00:05:11,730 --> 00:05:16,520 Suze: do it again and again and again security is when 87 00:05:16,520 --> 00:05:20,500 Suze: you take your money and you put it somewhere and 88 00:05:20,500 --> 00:05:23,430 Suze: next time you look at it you have more and 89 00:05:23,430 --> 00:05:26,049 Suze: then you put it there again and you have more 90 00:05:26,430 --> 00:05:30,890 Suze: so you have to learn to feed yourself what I 91 00:05:30,890 --> 00:05:36,029 Suze: call true security and that is called saving. You have 92 00:05:36,040 --> 00:05:38,750 Suze: got to get as much pleasure out of saving as 93 00:05:38,750 --> 00:05:42,510 Suze: you do spending on food. So therefore 94 00:05:43,210 --> 00:05:44,820 Suze: here's what I think you should do. 95 00:05:45,870 --> 00:05:49,580 Suze: We created a year and a half or so ago 96 00:05:49,800 --> 00:05:54,190 Suze: something called the Ultimate Opportunity Savings Account with Alliant Credit 97 00:05:54,190 --> 00:06:00,000 Suze: Union and truthfully it was for people exactly like you 98 00:06:00,529 --> 00:06:04,270 Suze: That didn't have a whole lot of money to save that. 99 00:06:04,279 --> 00:06:07,640 Suze: Maybe you just wanted to start so if you just 100 00:06:07,640 --> 00:06:12,200 Suze: started before you went and bought any food and you 101 00:06:12,200 --> 00:06:17,080 Suze: put $100 a month away every single month for 12 102 00:06:17,080 --> 00:06:18,490 Suze: consecutive months 103 00:06:18,870 --> 00:06:22,239 Suze: At the end of that period, Alliant will give you 104 00:06:22,250 --> 00:06:31,450 Suze: $100 now recently Alliant just increased their interest rate to 2.35%. 105 00:06:31,510 --> 00:06:35,779 Suze: So not only are you going to be getting that 106 00:06:35,779 --> 00:06:39,910 Suze: extra $100 you're also going to be getting a good 107 00:06:39,920 --> 00:06:45,170 Suze: interest rate and Alliant is constantly increasing that interest rate 108 00:06:45,180 --> 00:06:48,560 Suze: also very shortly here 109 00:06:48,820 --> 00:06:53,370 Suze: in a few days I'm going to be announcing something 110 00:06:53,380 --> 00:06:56,960 Suze: for all of you that you are going to love. 111 00:06:56,960 --> 00:06:59,720 Suze: We did it last year. Do you remember what that was? 112 00:07:01,070 --> 00:07:01,880 KT: I'm not gonna tell you 113 00:07:01,890 --> 00:07:05,710 Suze: Right, but for all of you I'm going to do 114 00:07:05,710 --> 00:07:07,150 Suze: a fabulous announcement 115 00:07:07,160 --> 00:07:10,960 Suze: again and you all want to have an Alliant Credit 116 00:07:10,960 --> 00:07:13,110 Suze: Union account at that time 117 00:07:13,120 --> 00:07:14,750 Suze: anyway. Alright 118 00:07:14,760 --> 00:07:19,550 Suze: anyway you do so by going to my Alliant dot 119 00:07:19,550 --> 00:07:23,540 Suze: com that's M Y. A. L. L. I A N. 120 00:07:23,540 --> 00:07:28,320 Suze: T dot com. You open it up there immediately fund 121 00:07:28,320 --> 00:07:31,760 Suze: it with at least $100. And you just continue and 122 00:07:31,760 --> 00:07:32,830 Suze: let's see 123 00:07:33,340 --> 00:07:38,230 Suze: if that is the budget plan for you. All right, KT, 124 00:07:38,230 --> 00:07:39,900 Suze: next question sweetheart. 125 00:07:39,910 --> 00:07:44,670 KT: Okay from Renee. Hi Suze, can you please go over 126 00:07:44,670 --> 00:07:49,510 KT: whether to designate a trust as the beneficiary on an 127 00:07:49,520 --> 00:07:54,390 KT: IRA or 401k. Or just have it go directly to 128 00:07:54,400 --> 00:07:58,620 KT: the beneficiary. I think I remember you saying that IRAs 129 00:07:58,620 --> 00:08:02,020 KT: don't go through probate so there was no need. 130 00:08:02,970 --> 00:08:06,920 Suze: Yeah. Well it is true that an IRA . When 131 00:08:06,920 --> 00:08:10,790 Suze: you designate a beneficiary, KT, whether it's on a life 132 00:08:10,790 --> 00:08:15,020 Suze: insurance policy to pay on death account for a bank account. 133 00:08:15,030 --> 00:08:19,030 Suze: An IRA, where you designate a person whenever an investment 134 00:08:19,030 --> 00:08:23,530 Suze: has a designated beneficiary that upon your death it is 135 00:08:23,530 --> 00:08:25,170 Suze: to go to that person. 136 00:08:25,760 --> 00:08:28,110 Suze: It does not go through probate. 137 00:08:28,120 --> 00:08:29,050 Suze: You 138 00:08:29,050 --> 00:08:32,559 Suze: go through probate, which is a court procedure. Everybody after 139 00:08:32,559 --> 00:08:37,040 Suze: you have died at least your beneficiaries will where you 140 00:08:37,040 --> 00:08:42,069 Suze: leave your money to people via a will and most 141 00:08:42,070 --> 00:08:47,390 Suze: wills absolutely have to go through probate. However, 142 00:08:47,900 --> 00:08:49,640 Suze: when it comes to an IRA 143 00:08:51,160 --> 00:08:54,970 Suze: And IRA works very very differently in that 144 00:08:55,880 --> 00:09:01,070 Suze: if you are married, you always want your spouse to 145 00:09:01,070 --> 00:09:05,000 Suze: be the primary beneficiary of your IRA 146 00:09:06,809 --> 00:09:09,860 Suze: If you have a trust as well. And again, all 147 00:09:09,860 --> 00:09:12,380 Suze: of you. You know I think every single one of 148 00:09:12,380 --> 00:09:16,320 Suze: you should have a living revocable trust. But anyway 149 00:09:16,970 --> 00:09:23,750 Suze: outside of your spouse, your secondary beneficiary, your contingent beneficiary 150 00:09:24,290 --> 00:09:29,490 Suze: should be your living revocable trust, which designates where everything 151 00:09:29,490 --> 00:09:34,839 Suze: is to go. Now, that's important because let's just say, 152 00:09:34,850 --> 00:09:40,000 Suze: you designate your spouse maybe as the beneficiary and then 153 00:09:40,010 --> 00:09:43,810 Suze: your child who's 18 years of age or older as 154 00:09:43,809 --> 00:09:46,000 Suze: that beneficiary, the secondary one, 155 00:09:46,160 --> 00:09:49,800 Suze: the three of you are all together and something happens, 156 00:09:49,800 --> 00:09:52,439 Suze: you're in a car accident and all three of you 157 00:09:52,440 --> 00:09:55,679 Suze: now are no longer here. What happens to the money 158 00:09:55,690 --> 00:09:59,640 Suze: that's in the IRA who gets it next? Now we 159 00:09:59,640 --> 00:10:04,170 Suze: go through probate. If you have your trust as the 160 00:10:04,170 --> 00:10:09,550 Suze: secondary or contingent beneficiary to your spouse, then it goes 161 00:10:09,550 --> 00:10:14,500 Suze: via the trust. No probate. If you are not married 162 00:10:14,510 --> 00:10:15,800 Suze: to anybody, 163 00:10:16,270 --> 00:10:19,750 Suze: then you are far better off having the trust as 164 00:10:19,750 --> 00:10:24,990 Suze: your primary beneficiary. That's how it should be set up. 165 00:10:25,000 --> 00:10:27,530 Suze: So up to you. If you just want to leave 166 00:10:27,530 --> 00:10:29,610 Suze: it to one person, as long as that one person 167 00:10:29,610 --> 00:10:32,460 Suze: is still alive, something happen doesn't happen to both of 168 00:10:32,460 --> 00:10:35,320 Suze: you at the same time, You'll be fine. I always 169 00:10:35,320 --> 00:10:38,780 Suze: think a trust is far better if you do it. 170 00:10:38,780 --> 00:10:40,470 Suze: The way I just said, 171 00:10:42,460 --> 00:10:44,809 Suze: are you wondering, KT why a spouse first and not 172 00:10:44,809 --> 00:10:45,630 Suze: just the trust? 173 00:10:47,140 --> 00:10:49,910 KT: I think it was always like that, That's the plan. 174 00:10:49,920 --> 00:10:53,810 Suze: No, the reason that it's the spouse first is the 175 00:10:53,809 --> 00:10:57,530 Suze: spouse is the only person, KT that has the right 176 00:10:57,540 --> 00:11:01,689 Suze: to take over your retirement account upon your death. As 177 00:11:01,690 --> 00:11:05,390 Suze: if it was your own. You're not subject to the 178 00:11:05,390 --> 00:11:10,199 Suze: inherited IRA rules like everybody else's. It's just there. If 179 00:11:10,200 --> 00:11:13,270 Suze: you want to take it over as your own you can. 180 00:11:13,610 --> 00:11:17,020 Suze: And chances are you should. That's why you always want 181 00:11:17,020 --> 00:11:20,750 Suze: your spouse because the spouse has far more rights than anybody trusted dictates. 182 00:11:22,870 --> 00:11:26,530 KT: Okay. Good, all right, Next question is from Pat. Hi, 183 00:11:26,530 --> 00:11:30,079 KT: Suze and KT. I'm one of the men smart enough 184 00:11:30,080 --> 00:11:37,100 KT: to listen. Yeah, Pat I have 750,000 in an E. S. O. P. 185 00:11:37,260 --> 00:11:37,569 Suze: Do you know what that is? 186 00:11:42,059 --> 00:11:42,459 KT: Yeah, it's an employee stock option plan. 187 00:11:42,460 --> 00:11:44,829 KT: I know that because I used to have that. I 188 00:11:44,830 --> 00:11:48,930 KT: have 750,000 and an employee stock option plan that I 189 00:11:48,929 --> 00:11:53,910 KT: will need to roll over to an IRA in November 2022. 190 00:11:53,920 --> 00:11:58,000 KT: That's just this month. I no longer work for that company. 191 00:11:58,000 --> 00:12:01,020 KT: I'm required to take a lump sum distribution. 192 00:12:01,320 --> 00:12:05,870 KT: I'm 54 married. My kids are successfully supporting themselves. I 193 00:12:05,870 --> 00:12:09,610 KT: do have an investor. I work with, my investor is 194 00:12:09,610 --> 00:12:14,550 KT: recommending I invested all in the mutual funds I already 195 00:12:14,550 --> 00:12:20,340 KT: invest in because everything is on sale at this time. Suze, 196 00:12:20,340 --> 00:12:23,700 KT: I value your advice. What should he do? 197 00:12:23,710 --> 00:12:26,610 Suze: Pat. I need you to listen to me. All right. 198 00:12:27,040 --> 00:12:30,429 Suze: I don't know how you pay your investment person to 199 00:12:30,429 --> 00:12:34,640 Suze: invest money for you either. If it goes into mutual 200 00:12:34,640 --> 00:12:39,170 Suze: funds either they are loaded mutual funds where the advisor 201 00:12:39,170 --> 00:12:43,819 Suze: usually will get 5% of any amount that you invest. 202 00:12:43,830 --> 00:12:44,679 Suze: So that could 203 00:12:44,679 --> 00:12:48,300 Suze: be right up front. So 204 00:12:48,300 --> 00:12:53,199 Suze: That could be 35 or 45 thousand dollars in your case. Or 205 00:12:53,670 --> 00:12:58,189 Suze: They work as an investment advisor and they get 1% 206 00:12:58,200 --> 00:13:01,820 Suze: or some percentage of all the money that they have 207 00:13:01,830 --> 00:13:04,450 Suze: under management per year. 208 00:13:05,050 --> 00:13:10,830 Suze: So you give this investment advisor another $750,000 all at once. 209 00:13:10,929 --> 00:13:15,880 Suze: That gives him what an extra $7500 of income. If 210 00:13:15,880 --> 00:13:21,000 Suze: that's the arrangement every year from now on, depending does 211 00:13:21,000 --> 00:13:23,890 Suze: it go up more in value? Doesn't go down. That 212 00:13:23,890 --> 00:13:26,590 Suze: will see how much he gets at that point. But 213 00:13:26,590 --> 00:13:29,830 Suze: that's a lot of money regardless of what you are 214 00:13:29,830 --> 00:13:33,030 Suze: paying him or her? Okay. 215 00:13:33,790 --> 00:13:41,900 Suze: Under no circumstances would I be taking $750,000 in one 216 00:13:41,910 --> 00:13:48,240 Suze: lump sum right now and invested in the stock market 217 00:13:48,250 --> 00:13:53,000 Suze: or mutual funds or bond funds or exchange traded funds? 218 00:13:53,010 --> 00:13:55,260 Suze: Are you kidding me? 219 00:13:55,640 --> 00:13:59,460 Suze: Just because things are cheap right now or they look 220 00:13:59,460 --> 00:14:03,079 Suze: like they're cheap, Does not mean that they cannot get 221 00:14:03,090 --> 00:14:10,309 Suze: even less cheap. And remember within your IRA, you are 222 00:14:10,320 --> 00:14:16,550 Suze: able to buy Treasury bills, bonds and notes, make sure 223 00:14:16,550 --> 00:14:21,260 Suze: that you listen to last Saturday's podcast 224 00:14:21,450 --> 00:14:25,080 Suze: because it was on that podcast that I talked about 225 00:14:25,080 --> 00:14:31,430 Suze: the brilliance of investing in Treasuries within a retirement account. 226 00:14:31,440 --> 00:14:36,520 Suze: Are you kidding me? Right? So especially if any of 227 00:14:36,520 --> 00:14:40,870 Suze: your money can be converted to a Roth IRA because 228 00:14:40,870 --> 00:14:43,750 Suze: maybe you're not working anymore. Maybe you've left that place 229 00:14:43,750 --> 00:14:47,580 Suze: of employment and maybe your taxes aren't as high. Oh 230 00:14:47,580 --> 00:14:51,140 Suze: my God, the brilliance of it is just amazing. 231 00:14:51,300 --> 00:14:55,410 Suze: So therefore you have to do me a favor and 232 00:14:55,410 --> 00:14:58,420 Suze: think twice about doing it. I would not be doing 233 00:14:58,420 --> 00:15:02,250 Suze: it on any level If I were you with anything. 234 00:15:02,260 --> 00:15:05,110 Suze: If you want to stick with this person, you want 235 00:15:05,110 --> 00:15:09,210 Suze: to put small amounts of money in every month or 236 00:15:09,210 --> 00:15:12,420 Suze: every three months? All right. But I have to tell 237 00:15:12,420 --> 00:15:16,260 Suze: you under no circumstance. Would I be doing 238 00:15:17,000 --> 00:15:23,250 Suze: $750,000 all at once. No way. 239 00:15:23,260 --> 00:15:28,000 KT: Alright. There you go. Pat. Okay, next question's from Angela. 240 00:15:28,010 --> 00:15:33,380 KT: Hello Suze. You talked about bonds and recommended investing in 241 00:15:33,380 --> 00:15:38,810 KT: long-term bonds when they were at 5.5%. I would like 242 00:15:38,810 --> 00:15:42,560 KT: to invest in bonds or certificates of deposit 243 00:15:42,790 --> 00:15:48,360 KT: as an income generator can bond interest be deposited directly 244 00:15:48,360 --> 00:15:50,050 KT: into my checking account? 245 00:15:50,060 --> 00:15:52,720 Suze: It can, but I just have to straighten up something 246 00:15:52,720 --> 00:15:58,740 Suze: about this? 5.5%. My hopes is that over the long 247 00:15:58,740 --> 00:16:02,350 Suze: run with more increases in the Fed fund rate and 248 00:16:02,350 --> 00:16:05,229 Suze: we'll see what else happens here. Does the stock market 249 00:16:05,230 --> 00:16:07,729 Suze: go up or does it go down? No one knows 250 00:16:07,730 --> 00:16:12,040 Suze: for sure. Really? Until it does it. I'm hoping 251 00:16:12,350 --> 00:16:17,220 Suze: that eventually, sometime next year. Long term bonds may get 252 00:16:17,230 --> 00:16:23,200 Suze: to 5 - 5.5% again. What you should see around this 253 00:16:23,200 --> 00:16:26,810 Suze: time is that interest rates on bonds, especially long term 254 00:16:26,810 --> 00:16:32,090 Suze: bonds are starting to go down. Which is exactly what 255 00:16:32,090 --> 00:16:36,570 Suze: I expected. And I think I said a few podcasts ago, 256 00:16:36,580 --> 00:16:40,550 Suze: but in the same way that they're going down right now, 257 00:16:40,910 --> 00:16:44,970 Suze: especially the 10 year, I think you will find that 258 00:16:44,980 --> 00:16:50,260 Suze: over the long run they may go up. When that happens. 259 00:16:50,270 --> 00:16:54,110 Suze: You obviously want to go into a longer term bond 260 00:16:54,120 --> 00:16:58,170 Suze: so that when interest rates go down again, you still 261 00:16:58,170 --> 00:17:02,370 Suze: have a high interest rate and your bond will appreciate 262 00:17:02,380 --> 00:17:05,659 Suze: because when interest rates go down, the value of bonds 263 00:17:05,660 --> 00:17:06,830 Suze: go up 264 00:17:07,619 --> 00:17:11,580 Suze: so we're just gonna have to see what happens. Will 265 00:17:11,580 --> 00:17:14,540 Suze: that be the case or will it not? But either way, 266 00:17:14,770 --> 00:17:21,050 Suze: absolutely. Your interest rate goes directly into wherever you designate. 267 00:17:21,060 --> 00:17:23,409 Suze: You know also. And I just have to go back 268 00:17:23,410 --> 00:17:27,150 Suze: with Alliant Credit Union for a second here. Alliant has 269 00:17:27,150 --> 00:17:31,770 Suze: some really great rates on three year and four year 270 00:17:31,770 --> 00:17:36,510 Suze: certificates of deposits. And obviously that interest rate would go 271 00:17:36,510 --> 00:17:37,810 Suze: immediately into 272 00:17:37,820 --> 00:17:43,280 Suze: to your Alliant Ultimate Opportunity savings account. That's making a great 273 00:17:43,290 --> 00:17:48,010 Suze: interest rate as well. So all of that compounds so truthfully, 274 00:17:48,010 --> 00:17:51,350 Suze: if I were you, I would look at the certificates 275 00:17:51,350 --> 00:17:56,080 Suze: of deposits that Alliant is currently offering and I think 276 00:17:56,080 --> 00:17:59,350 Suze: you will be pleased with those rates. 277 00:17:59,350 --> 00:18:03,139 KT: Yeah, they're they're great. Okay, Suze this next question is 278 00:18:03,140 --> 00:18:04,190 KT: from Becky. 279 00:18:04,700 --> 00:18:08,330 KT: Hi Suze and KT. My mom opened a whole life 280 00:18:08,330 --> 00:18:13,800 KT: policy when my daughter was born 21 years ago, a 281 00:18:13,800 --> 00:18:18,590 KT: decision must be made by 12 December 2022 to either 282 00:18:18,590 --> 00:18:24,600 KT: cash out the policy or keep making quarterly payments of $18. 283 00:18:24,750 --> 00:18:28,790 KT: The death benefit value is $15,000. 284 00:18:29,030 --> 00:18:33,080 KT: My daughter will be graduating in May 2023 with an 285 00:18:33,080 --> 00:18:39,129 KT: education degree. She has $16,000 of student loan debt. If 286 00:18:39,130 --> 00:18:43,600 KT: something should happen to her before she graduates, at least 287 00:18:43,600 --> 00:18:47,020 KT: we would have some money for the student loan debt. 288 00:18:47,359 --> 00:18:52,220 KT: Should we keep paying on this policy or take the payout? 289 00:18:52,230 --> 00:18:57,120 KT: I do have a $10,000 term life policy on her 290 00:18:57,119 --> 00:18:59,960 KT: through my work, I pay about a dollar a month 291 00:18:59,960 --> 00:19:02,590 KT: for this. See that's why you like term. 292 00:19:02,650 --> 00:19:05,400 Suze: Everybody, should this be KT's pop quiz? Okay. 293 00:19:05,400 --> 00:19:07,780 KT: I can, I can guess I can get, I think 294 00:19:07,780 --> 00:19:09,010 KT: I know what I would do. 295 00:19:09,920 --> 00:19:15,220 Suze: Alright then. Everybody, you just heard the question that KT read, 296 00:19:15,230 --> 00:19:21,240 Suze: how would you answer that question? This person's mother has 297 00:19:21,240 --> 00:19:28,429 Suze: been investing $18 a quarter for 21 years on a 298 00:19:28,430 --> 00:19:31,100 Suze: whole life insurance policy. 299 00:19:31,670 --> 00:19:35,969 Suze: That now should they surrender it? If they surrender it, 300 00:19:35,970 --> 00:19:40,960 Suze: there's only like a $450 cash value or should they 301 00:19:40,960 --> 00:19:47,830 Suze: continue paying $18 a quarter so that if this person's 302 00:19:47,840 --> 00:19:49,310 Suze: daughter died, 303 00:19:49,800 --> 00:19:54,560 Suze: They would have a $15,000 death benefit to pay off 304 00:19:54,570 --> 00:19:56,850 Suze: her student loans. KT. 305 00:19:56,859 --> 00:20:01,720 KT: Well then she said she has $10,000 term life through 306 00:20:01,720 --> 00:20:03,970 KT: work that it's a dollar a month. 307 00:20:03,980 --> 00:20:04,730 Suze: Yes. But so 308 00:20:04,740 --> 00:20:08,679 KT: Personally I would get another term policy, I'd get another 309 00:20:08,680 --> 00:20:10,320 KT: term policy. You can have multiple 310 00:20:11,540 --> 00:20:12,119 KT: cash 311 00:20:12,119 --> 00:20:15,680 KT: It out. Get rid of the 18, that's almost $100 312 00:20:15,680 --> 00:20:19,790 KT: a year. Well not that much but $80 a year. 313 00:20:19,800 --> 00:20:23,879 KT: And for another dollar a month or even less, maybe 314 00:20:23,880 --> 00:20:27,399 KT: she can get a bigger term life, make the term 315 00:20:27,400 --> 00:20:28,470 KT: life larger. 316 00:20:29,020 --> 00:20:36,080 Suze: Alright, so that's your answer. Yes and no. The first 317 00:20:36,080 --> 00:20:39,899 Suze: reason that it's she should absolutely cancel it out. 318 00:20:40,420 --> 00:20:45,730 Suze: Okay. Is this it makes absolutely no sense. They've been 319 00:20:45,730 --> 00:20:52,150 Suze: putting in $18 a quarter for 21 years, even at 320 00:20:52,150 --> 00:20:54,609 Suze: a 4% interest rate, 321 00:20:55,100 --> 00:20:58,870 Suze: that would be $2400 right now. But they only have 322 00:20:58,869 --> 00:21:04,900 Suze: a $450 cash value. Something's wrong there. Yes. But but 323 00:21:04,900 --> 00:21:08,700 Suze: so listen to that everybody, even if they put in 324 00:21:08,710 --> 00:21:13,190 Suze: $18 a quarter for 21 years and they didn't make 325 00:21:13,200 --> 00:21:18,340 Suze: any interest on that money, that would be $1500 326 00:21:18,890 --> 00:21:22,889 Suze: and they're only getting back $450. So do you all 327 00:21:22,890 --> 00:21:29,270 Suze: understand why I seriously in most cases hate whole life insurance, 328 00:21:29,280 --> 00:21:33,350 Suze: It makes no sense. So number one, I will not 329 00:21:33,350 --> 00:21:39,560 Suze: keep wasting my money on this $18 a quarter. Number two. However, 330 00:21:40,100 --> 00:21:46,760 Suze: Becky says that her daughter has $16,000 of student loans. 331 00:21:47,330 --> 00:21:51,310 Suze: Now if those loans and now I'm talking to everybody here. 332 00:21:51,450 --> 00:21:56,300 Suze: If you have student loans that are federal loans, staff 333 00:21:56,300 --> 00:22:01,389 Suze: for loans apparent plus loans. And if the student dies, 334 00:22:01,660 --> 00:22:07,060 Suze: those loans are absolutely forgiven. It's when you have a 335 00:22:07,070 --> 00:22:11,300 Suze: private loan in many circumstances and you should all check 336 00:22:11,300 --> 00:22:15,070 Suze: this out before you just go and get a private 337 00:22:15,070 --> 00:22:16,330 Suze: student loan. 338 00:22:16,790 --> 00:22:21,880 Suze: If the student dies, then usually the parents are still 339 00:22:21,880 --> 00:22:26,760 Suze: responsible for paying that student loan. KT, do you remember 340 00:22:26,760 --> 00:22:27,140 Suze: years ago 341 00:22:27,140 --> 00:22:27,910 KT: Right - that woman from Boston, 342 00:22:29,420 --> 00:22:34,970 Suze: Right was paying her son owed $800 a month on 343 00:22:34,970 --> 00:22:38,660 Suze: a student loan that was a private student loan. 344 00:22:38,950 --> 00:22:41,250 Suze: He died of cancer 345 00:22:43,450 --> 00:22:44,090 Suze: and 346 00:22:44,090 --> 00:22:48,450 Suze: she, the mommy who really had no money. She was 347 00:22:48,450 --> 00:22:54,139 Suze: an Avon rep had to come up with $800 a month. 348 00:22:54,480 --> 00:23:00,150 Suze: Now thank God she contacted us and I got the 349 00:23:00,150 --> 00:23:05,530 Suze: loan dismissed everybody, but that was Suze Orman doing that. 350 00:23:05,970 --> 00:23:09,600 Suze: So don't get yourself in that situation back to the 351 00:23:09,600 --> 00:23:13,030 Suze: answer to this question. And I think it's really important 352 00:23:13,030 --> 00:23:17,310 Suze: that we're thorough KT, with every answer because so many 353 00:23:17,310 --> 00:23:21,140 Suze: people are in this situation. So if it's a federal 354 00:23:21,140 --> 00:23:25,060 Suze: loan that you're not going to be responsible for, if 355 00:23:25,070 --> 00:23:26,960 Suze: your daughter dies, 356 00:23:27,650 --> 00:23:31,740 Suze: Why have an insurance policy at all to cover that expense. 357 00:23:31,830 --> 00:23:35,920 Suze: That makes no sense at all. You say that you 358 00:23:35,920 --> 00:23:40,630 Suze: also have a term life insurance policy on her through 359 00:23:40,630 --> 00:23:45,639 Suze: your work for a dollar a month more than you 360 00:23:45,670 --> 00:23:48,810 Suze: having her be the one who's insured. So you get 361 00:23:48,810 --> 00:23:53,730 Suze: that $10,000 Becky. I hope you have a serious term 362 00:23:53,740 --> 00:23:56,390 Suze: insurance policy on yourself. 363 00:23:56,800 --> 00:24:01,200 Suze: So that if you die, your daughter gets a whole 364 00:24:01,200 --> 00:24:03,879 Suze: lot of money to be able to support herself and 365 00:24:03,880 --> 00:24:09,000 Suze: continue on because Mama wouldn't be there anymore. So just 366 00:24:09,000 --> 00:24:12,800 Suze: make sure that's true. Why you have an insurance policy 367 00:24:12,800 --> 00:24:16,020 Suze: on her, even though it's only a dollar a month 368 00:24:16,030 --> 00:24:20,560 Suze: is beyond me. $12 a year is $12 a year. 369 00:24:20,880 --> 00:24:23,410 Suze: I'm not exactly sure I would be doing that if 370 00:24:23,420 --> 00:24:27,169 Suze: I were you. Unless you know, your daughter has some 371 00:24:27,180 --> 00:24:32,520 Suze: illness that will show itself in the next few years. Okay, KT. 372 00:24:32,530 --> 00:24:33,930 KT: Alright, the next question is from Kim. 373 00:24:34,830 --> 00:24:36,380 Suze: Are you wondering how calm I am today? 374 00:24:36,390 --> 00:24:38,699 KT: Yeah. Why are you so calm? 375 00:24:38,869 --> 00:24:41,359 Suze: I want to know why I'm so calm everybody. Truthfully 376 00:24:41,869 --> 00:24:42,979 Suze: because 377 00:24:43,900 --> 00:24:51,449 Suze: KT has been fishing for hours and hours every single day, 378 00:24:51,460 --> 00:24:52,540 Suze: which 379 00:24:53,020 --> 00:24:54,139 Suze: for 380 00:24:54,150 --> 00:24:58,649 Suze: eight hours, 12 hours at a time. Which allows me 381 00:24:58,660 --> 00:25:00,820 Suze: all the time in the world 382 00:25:00,820 --> 00:25:01,180 Suze: to stay, 383 00:25:01,440 --> 00:25:01,870 Suze: and 384 00:25:01,869 --> 00:25:06,139 Suze: study and listen to CNBC and understanding what's happening in 385 00:25:06,140 --> 00:25:08,889 Suze: the economy so that I can give you the absolute 386 00:25:08,890 --> 00:25:10,230 Suze: best up to date advice. 387 00:25:10,940 --> 00:25:14,750 KT: She studies more than any student I have ever known in 388 00:25:14,750 --> 00:25:16,949 KT: my entire lifetime. 389 00:25:17,150 --> 00:25:22,110 KT: It's almost her hobby. She reads, she studies, she watches 390 00:25:22,109 --> 00:25:27,780 KT: the news, the reports, all of the financial ins and outs. 391 00:25:27,780 --> 00:25:30,139 KT: She studies it like crazy. I always say, what are 392 00:25:30,140 --> 00:25:33,340 KT: you doing? Wait, KT give me five more minutes. But 393 00:25:33,340 --> 00:25:36,100 Suze: the reason I do that everybody is I take what 394 00:25:36,100 --> 00:25:37,639 Suze: I tell you very, very serious. 395 00:25:38,560 --> 00:25:40,390 KT: This isn't a joke. 396 00:25:40,400 --> 00:25:43,820 Suze: This is your money and this is your life. So 397 00:25:43,830 --> 00:25:48,320 Suze: I'm calm because I've had days and days and days 398 00:25:48,330 --> 00:25:50,879 Suze: to catch up on all the reading I've wanted to 399 00:25:50,880 --> 00:25:52,910 Suze: do so now I'm just calm. 400 00:25:52,920 --> 00:25:57,480 KT: Alright. Here's another question. If you're that calm ready for 401 00:25:57,480 --> 00:25:58,140 KT: this one. 402 00:25:58,540 --> 00:26:01,359 KT: Hi, Suze and KT. Thank you. Thank you. Thank you. 403 00:26:01,369 --> 00:26:05,440 KT: Through your podcast and books. You have changed my financial 404 00:26:05,440 --> 00:26:09,480 KT: life for good. Ready, Suze. I don't know how much 405 00:26:09,480 --> 00:26:13,210 KT: you did because here's the question, Suze. I've heard you 406 00:26:13,210 --> 00:26:16,970 KT: talk about annuities and how they're not always a good 407 00:26:16,970 --> 00:26:20,520 KT: fit for some people. I would like to see if 408 00:26:20,520 --> 00:26:23,930 KT: an annuity might be a good fit for me. I 409 00:26:23,930 --> 00:26:27,700 KT: own my own condo. It's worth about 325,000. 410 00:26:27,880 --> 00:26:33,600 KT: I have 250,000 in IRA's mostly traditional. I have a 411 00:26:33,600 --> 00:26:38,770 KT: one year emergency fund. I'm 62 single and hoping to 412 00:26:38,770 --> 00:26:43,210 KT: retire in five years. My Social Security benefit will be 413 00:26:43,210 --> 00:26:48,820 KT: about $2000 a month. So kim wants to know. Suze 414 00:26:48,830 --> 00:26:52,389 KT: is annuity possibly a good fit for me? 415 00:26:53,210 --> 00:26:59,020 Suze: Boy. So the reason that I say, oh boy, right, 416 00:26:59,030 --> 00:27:04,080 Suze: is because there's so many different types of annuities. There 417 00:27:04,090 --> 00:27:07,669 Suze: are single premium deferred annuities which I like very much 418 00:27:07,680 --> 00:27:11,510 Suze: in certain circumstances where you put in a single premium, 419 00:27:11,510 --> 00:27:15,750 Suze: one lump sum of money and you get a guaranteed 420 00:27:15,760 --> 00:27:19,440 Suze: interest rate normally for a specific period of time just 421 00:27:19,440 --> 00:27:20,619 Suze: like a C. D. 422 00:27:21,090 --> 00:27:25,100 Suze: Where you don't pay taxes on the interest until you 423 00:27:25,100 --> 00:27:30,000 Suze: take the money out. Okay that's one a variable annuity 424 00:27:30,000 --> 00:27:34,629 Suze: which I seriously don't like which is a mutual fund 425 00:27:34,640 --> 00:27:37,639 Suze: held within an insurance company 426 00:27:37,890 --> 00:27:41,619 Suze: and there's many reasons I just don't like a variable annuity. 427 00:27:41,630 --> 00:27:45,240 Suze: They in my opinion make absolutely no sense. Nine out 428 00:27:45,240 --> 00:27:48,050 Suze: of 10 of the times. So I don't like a 429 00:27:48,050 --> 00:27:54,220 Suze: variable annuity then there's a single premium immediate annuity that 430 00:27:54,220 --> 00:27:58,600 Suze: pays you a monthly income every month for the rest 431 00:27:58,609 --> 00:28:00,000 Suze: of your life 432 00:28:00,660 --> 00:28:04,939 Suze: now do I like those or do I? Not years 433 00:28:04,940 --> 00:28:09,490 Suze: ago when interest rates were at 0% half a percent. 434 00:28:09,500 --> 00:28:14,480 Suze: They made absolutely no sense. Are they starting to make 435 00:28:14,480 --> 00:28:18,710 Suze: more sense right now? They are because as interest rates 436 00:28:18,710 --> 00:28:23,460 Suze: go up then your income will go up as well 437 00:28:23,630 --> 00:28:25,699 Suze: because you are single 438 00:28:26,140 --> 00:28:30,290 Suze: and you have absolutely no beneficiaries I'm assuming because you 439 00:28:30,290 --> 00:28:34,030 Suze: didn't say that you did that if you got a 440 00:28:34,030 --> 00:28:39,230 Suze: single premium annuity based on your life expectancy only, you 441 00:28:39,230 --> 00:28:42,550 Suze: may find that you have a guaranteed income for the 442 00:28:42,550 --> 00:28:46,709 Suze: rest of your life. That makes it okay for you 443 00:28:46,710 --> 00:28:49,680 Suze: along with your social security to be able to meet 444 00:28:49,680 --> 00:28:52,620 Suze: your bills with taking a little bit out of your 445 00:28:52,620 --> 00:28:54,030 Suze: retirement account. 446 00:28:54,390 --> 00:28:57,690 Suze: So if that is the situation I don't have a problem. 447 00:28:57,700 --> 00:29:01,020 Suze: You just need to know that with a single premium 448 00:29:01,020 --> 00:29:06,520 Suze: immediate annuity. The highest payout life only you get it. 449 00:29:06,530 --> 00:29:11,710 Suze: You die two days from now. The insurance company keeps 100% 450 00:29:11,720 --> 00:29:15,690 Suze: of the money. So you have to be okay with that. 451 00:29:15,690 --> 00:29:19,430 Suze: There are other withdrawal options. Again, that's a whole Suze 452 00:29:19,430 --> 00:29:20,880 Suze: School on its own. 453 00:29:21,320 --> 00:29:25,100 Suze: But you have to make that decision. If I were you, 454 00:29:25,100 --> 00:29:28,820 Suze: I would wait till interest rates when higher and higher 455 00:29:28,830 --> 00:29:33,450 Suze: you became older and older because if that is the case, 456 00:29:33,460 --> 00:29:36,750 Suze: your income will be more and more. All right. 457 00:29:37,300 --> 00:29:41,170 KT: Oh that's good. So next question is from Adam. Hi 458 00:29:41,170 --> 00:29:44,330 KT: KT and Suze. Great podcast. 459 00:29:44,500 --> 00:29:49,380 KT: I've been listening since I was 25 and ever since 460 00:29:49,390 --> 00:29:54,500 KT: I feel safe. Strong and secure in my financial life. 461 00:29:54,510 --> 00:29:58,640 KT: That's sweet. My question is for my mom. So he's 462 00:29:58,640 --> 00:30:02,050 KT: the good son. She has a Roth IRA and a 463 00:30:02,050 --> 00:30:05,350 KT: really terrible account with lots of fees. 464 00:30:05,710 --> 00:30:09,520 KT: So she he's asking can she roll over her Roth 465 00:30:09,530 --> 00:30:14,690 KT: into an account with less fees like Fidelity or Vanguard. Suze, 466 00:30:14,690 --> 00:30:16,840 KT: how would she be able to do this? 467 00:30:16,850 --> 00:30:19,400 Suze: All right. So first let's go to a really brief 468 00:30:19,400 --> 00:30:21,600 Suze: Suze School. Sorry KT. 469 00:30:21,610 --> 00:30:26,300 Suze: But Adam when you have money in one Roth IRA . 470 00:30:26,300 --> 00:30:29,070 Suze: At some brokerage firm and you want to put it 471 00:30:29,080 --> 00:30:33,650 Suze: into another brokerage firm in the same type of an 472 00:30:33,650 --> 00:30:37,520 Suze: account that's known as an IRA transfer 473 00:30:38,120 --> 00:30:42,370 Suze: And IRA roll over is when when you go from 474 00:30:42,370 --> 00:30:45,690 Suze: like a 401k Which is one type of a retirement 475 00:30:45,690 --> 00:30:50,180 Suze: account into a different type of retirement account like an IRA, 476 00:30:51,440 --> 00:30:54,200 Suze: then you roll it over. 477 00:30:54,500 --> 00:30:59,530 Suze: So just so you know the difference. You absolutely can 478 00:30:59,530 --> 00:31:01,950 Suze: do this. What I would do if I were you 479 00:31:02,000 --> 00:31:08,390 Suze: I would go to either Vanguard, Fidelity, Charles Schwab possibly 480 00:31:08,390 --> 00:31:13,530 Suze: TD Ameritrade any of those and I would open up 481 00:31:13,540 --> 00:31:17,870 Suze: a Roth IRA for mama or do it with her. 482 00:31:17,880 --> 00:31:21,330 Suze: So she feels empowered like she's doing something, take her 483 00:31:21,330 --> 00:31:23,890 Suze: with you or do it with her online. 484 00:31:24,190 --> 00:31:28,979 Suze: Then they will contact this old brokerage firm where the 485 00:31:28,980 --> 00:31:33,270 Suze: money is at. And they will request a custodian to 486 00:31:33,270 --> 00:31:38,340 Suze: custodian transfer where all the money comes out of her 487 00:31:38,340 --> 00:31:44,260 Suze: account into the new Roth IRA with them within that 488 00:31:44,260 --> 00:31:45,540 Suze: Roth IRA 489 00:31:45,800 --> 00:31:52,060 Suze: you absolutely can buy treasury bills, bonds and notes. And 490 00:31:52,070 --> 00:31:55,450 Suze: if you listened again to the podcast that I did 491 00:31:55,460 --> 00:32:00,660 Suze: last saturday you'll see why that might be the best 492 00:32:00,660 --> 00:32:03,110 Suze: thing mom does with the money. Now if she has 493 00:32:03,110 --> 00:32:06,510 Suze: years and years to go then that's another thing. But 494 00:32:06,510 --> 00:32:09,640 Suze: for right now next few years I don't have a 495 00:32:09,640 --> 00:32:12,920 Suze: problem with her doing treasuries. But that's how she would 496 00:32:12,920 --> 00:32:14,120 Suze: do the transfer. 497 00:32:14,510 --> 00:32:17,630 KT: You're a good son. Good job. 498 00:32:17,640 --> 00:32:18,900 Suze: I'm a good daughter. 499 00:32:18,910 --> 00:32:22,020 KT: You are you were a great daughter. Oh my God 500 00:32:22,060 --> 00:32:25,210 Suze: I have to tell you That stopped me in my tracks. KT. 501 00:32:25,220 --> 00:32:28,750 Suze: Because whenever I hear you say a good son, it 502 00:32:28,750 --> 00:32:30,970 Suze: takes me back, What does it take me back to? 503 00:32:30,980 --> 00:32:31,950 KT: To your mom? 504 00:32:31,960 --> 00:32:34,930 Suze: To my mom And how she thought her son, 505 00:32:34,940 --> 00:32:37,600 KT: she thought, Suze, well, let me tell them the story. 506 00:32:37,610 --> 00:32:39,090 Suze: We've told them this before. 507 00:32:39,600 --> 00:32:40,880 KT: Suze's one daughter and she has 508 00:32:40,900 --> 00:32:45,990 KT: two brothers much older and her mom all her life 509 00:32:46,000 --> 00:32:48,980 KT: thought and felt that she was taken care of by 510 00:32:48,980 --> 00:32:53,310 KT: her two sons. The truth is, Suze not only took 511 00:32:53,310 --> 00:32:57,550 KT: care of her financially, but also made all the decisions. 512 00:32:57,560 --> 00:33:01,590 KT: Would tell those decisions to the two brothers and they 513 00:33:01,590 --> 00:33:04,260 KT: would tell mom and mom felt, oh great, 514 00:33:04,420 --> 00:33:06,260 KT: my boys are taking care 515 00:33:06,260 --> 00:33:07,250 Suze: of me. But 516 00:33:07,250 --> 00:33:10,860 KT: the truth is, it was the daughter that stepped up. 517 00:33:10,870 --> 00:33:13,210 Suze: I loved taking care of my mom by the way. 518 00:33:13,220 --> 00:33:15,700 Suze: It was the greatest thing I ever did in my life. 519 00:33:15,710 --> 00:33:16,620 KT: It wasn't just 520 00:33:16,750 --> 00:33:17,530 Suze: I can't believe 521 00:33:17,660 --> 00:33:18,400 Suze: that she 522 00:33:18,400 --> 00:33:21,360 Suze: died thinking it wasn't me. Anyway, go on. 523 00:33:21,610 --> 00:33:22,750 KT: That's okay. We know. 524 00:33:22,760 --> 00:33:24,590 Suze: Obviously it's not okay. 525 00:33:24,600 --> 00:33:25,400 KT: It's okay. 526 00:33:25,530 --> 00:33:27,219 Suze: I haven't gotten over look at me. 527 00:33:27,230 --> 00:33:29,980 KT: So I picked this question 528 00:33:30,360 --> 00:33:34,670 KT: from Claudia because this was something that I so enjoyed. It. Said, 529 00:33:34,670 --> 00:33:38,240 KT: Dear Suze and KT. I've been enjoying listening to the 530 00:33:38,240 --> 00:33:42,490 KT: podcast and I learned a lot. I also enjoy your 531 00:33:42,490 --> 00:33:47,300 KT: turtle dove banter and your fishing stories. I live in 532 00:33:47,300 --> 00:33:52,810 KT: Northwest Alaska and partially feed myself by fishing for salmon 533 00:33:52,810 --> 00:33:56,780 KT: and dolly vardon. A dolly vardon is a good tasting 534 00:33:56,780 --> 00:33:58,390 KT: fish but we've never caught one. 535 00:33:58,850 --> 00:34:03,440 KT: So I totally get the universal importance of fishing. Keep 536 00:34:03,440 --> 00:34:07,490 KT: it up Suze. Here's the question from Claudia. My dear 537 00:34:07,490 --> 00:34:10,950 KT: old dad, bless his heart has decided to give my 538 00:34:10,950 --> 00:34:14,170 KT: brother and I some of our inheritance while he is 539 00:34:14,170 --> 00:34:18,160 KT: still alive. The problem is, my dad is German and 540 00:34:18,160 --> 00:34:23,020 KT: lives in Germany where the money sits in his savings account. 541 00:34:23,460 --> 00:34:26,080 KT: The easiest would be to simply transfer it to my 542 00:34:26,080 --> 00:34:31,810 KT: American bank account and the amount would be approximately €100,000. 543 00:34:31,810 --> 00:34:32,960 KT: It's a lot of money. 544 00:34:33,540 --> 00:34:37,799 KT: So which of the following options should I take, should 545 00:34:37,800 --> 00:34:41,130 KT: I transfer it now or leave it with dad until 546 00:34:41,130 --> 00:34:44,630 KT: the exchange rate is better. What should she do? Suze? 547 00:34:44,640 --> 00:34:48,109 Suze: Well obviously if we knew without a shadow of a doubt, 548 00:34:48,110 --> 00:34:52,460 Suze: Claudia that your father would live and live and live 549 00:34:52,460 --> 00:34:55,170 Suze: until the exchange rate does get better, 550 00:34:55,500 --> 00:34:58,000 Suze: then that is what you would do. But there are 551 00:34:58,000 --> 00:35:03,489 Suze: people predicting that it could get way worse before it 552 00:35:03,489 --> 00:35:09,120 Suze: gets better Right now the dollar has been weakening a little. 553 00:35:09,130 --> 00:35:14,810 Suze: So you're maybe $1000 off parity 100,000 for 100,000. 554 00:35:15,440 --> 00:35:18,400 Suze: So if I were you, I would just go ahead 555 00:35:18,400 --> 00:35:23,090 Suze: and bite the bullet and do it because interest rates 556 00:35:23,100 --> 00:35:26,920 Suze: are high right now they're going high in the United States, 557 00:35:26,930 --> 00:35:33,770 Suze: you get the $100,000 in now that $100,000 is earning 234% 558 00:35:33,770 --> 00:35:36,540 Suze: whatever it is you're doing with that money. So that's 559 00:35:36,540 --> 00:35:39,140 Suze: an extra $4000 a year. 560 00:35:39,760 --> 00:35:43,040 Suze: If you went for like a 4% Treasury note, let's 561 00:35:43,040 --> 00:35:47,060 Suze: say that you're giving up while you're waiting to see 562 00:35:47,070 --> 00:35:51,580 Suze: if in fact the exchange rate changes. So I always 563 00:35:51,580 --> 00:35:55,650 Suze: say do it now girlfriend. One last one, 564 00:35:55,860 --> 00:35:58,560 KT: One last one that actually I want you to give 565 00:35:58,560 --> 00:36:01,290 KT: to everyone listening. This is a gift to everyone. 566 00:36:01,580 --> 00:36:05,290 KT: Suze. Hi there. This is from Sue. Could you please 567 00:36:05,290 --> 00:36:08,560 KT: send me the link to get the must have documents 568 00:36:08,560 --> 00:36:12,930 KT: for the discounted price. So we talked about wills and 569 00:36:12,930 --> 00:36:16,700 KT: trust quite a bit in this podcast. But give Sue 570 00:36:16,700 --> 00:36:20,780 KT: the discounted price link and everyone listening. 571 00:36:20,790 --> 00:36:21,520 Suze: So here you.. 572 00:36:21,530 --> 00:36:24,600 KT: Don't have a will and trust. And they must have documents. 573 00:36:24,610 --> 00:36:26,719 KT: You need them. Everyone. 574 00:36:26,730 --> 00:36:28,730 Suze: So just very quickly 575 00:36:29,510 --> 00:36:32,480 Suze: I believe from the bottom my heart, every single one 576 00:36:32,480 --> 00:36:36,610 Suze: of you, no matter what anybody says should have a 577 00:36:36,610 --> 00:36:40,839 Suze: living revocable trust. A will, an advanced directive, durable power 578 00:36:40,840 --> 00:36:44,180 Suze: of attorney for health care and a financial directive. All right. 579 00:36:44,489 --> 00:36:48,840 Suze: Those are what I call the must have documents very expensive. 580 00:36:48,840 --> 00:36:53,060 Suze: You go if you go to an attorney $2500 years 581 00:36:53,060 --> 00:36:57,899 Suze: ago and almost 10 million people have purchased this over 582 00:36:57,900 --> 00:37:03,740 Suze: the years. We have never had one complaint. Must have documents. 583 00:37:03,750 --> 00:37:05,700 Suze: We've never had one complaint. 584 00:37:06,110 --> 00:37:12,730 Suze: They sell for $99. They are over $2500 worth of 585 00:37:12,730 --> 00:37:16,550 Suze: state of the art documents. All you have to do 586 00:37:16,560 --> 00:37:21,919 Suze: is go to Suze Orman dot com slash offer 587 00:37:21,940 --> 00:37:27,020 Suze: To get that $99 offer. Otherwise on the website they 588 00:37:27,020 --> 00:37:31,140 Suze: sell for $198. You can also do it on the 589 00:37:31,140 --> 00:37:35,240 Suze: Women and Money app. And once you've downloaded them, you 590 00:37:35,239 --> 00:37:38,450 Suze: can share it with all your family members and you 591 00:37:38,450 --> 00:37:42,810 Suze: can update them and change them whenever you want for nothing. 592 00:37:42,810 --> 00:37:48,239 Suze: So that's how you get them. My dear, Sue. All right, KT. 593 00:37:48,530 --> 00:37:50,540 KT: No quizzie. You did it up front. 594 00:37:50,550 --> 00:37:52,070 Suze: I did the upfront quizzie. 595 00:37:52,330 --> 00:37:55,710 KT: But for now we want everyone to do what, Suze? 596 00:37:55,719 --> 00:37:58,509 Suze: We want you to remember that there is only one 597 00:37:58,510 --> 00:38:03,720 Suze: thing that matters when it comes to you and your money. 598 00:38:03,730 --> 00:38:05,960 Suze: What are those three things, KT? 599 00:38:05,960 --> 00:38:09,430 KT: We want you all to be safe, strong and secure. 600 00:38:10,700 --> 00:38:14,969 Suze: So until Sunday you stay safe.