1 00:00:34,229 --> 00:00:38,150 Suze: September 28th. Are you sure that's the right date. KT? 2 00:00:38,450 --> 00:00:43,250 KT: It is! it's the end of September. Remember we sang, see 3 00:00:43,259 --> 00:00:46,659 KT: you in September. Now we're gonna say so long, September. 4 00:00:46,959 --> 00:00:47,549 KT: So long... 5 00:00:48,159 --> 00:00:54,400 Suze: Stop, stop, stop, stop, stop. September 28th, 2023. Welcome everybody 6 00:00:54,409 --> 00:00:55,939 Suze: to the Women and Money podcast... 7 00:00:55,950 --> 00:00:57,770 KT: and everyone smart enough to listen. 8 00:00:57,779 --> 00:00:58,819 Suze: This is the 9 00:00:59,500 --> 00:01:04,220 KT: ask Suze and KT anything edition. 10 00:01:04,349 --> 00:01:07,970 Suze: And if you want, you can send in a question 11 00:01:07,980 --> 00:01:13,629 Suze: to ask Suze Suze podcast at gmail dot com. And 12 00:01:13,639 --> 00:01:18,370 Suze: if KT chooses it, we will answer it on this podcast.  All right girlfriend. 13 00:01:19,989 --> 00:01:22,660 KT: So the first, I don't really have a question. I 14 00:01:22,669 --> 00:01:25,720 KT: have a big thank you. This is from Lindsay Newton 15 00:01:25,730 --> 00:01:29,040 KT: and I want everyone to know that Lindsay Newton stumbled 16 00:01:29,050 --> 00:01:34,580 KT: upon Suze's podcast and said it is exactly what I've 17 00:01:34,589 --> 00:01:39,269 KT: been looking for for finance and life guidance. She added 18 00:01:39,279 --> 00:01:41,540 KT: life guidance. What do you think about that, 19 00:01:41,889 --> 00:01:45,089 KT: Please share with me the hyperlink, So I can get 20 00:01:45,099 --> 00:01:48,290 KT: my documents started. Thank you so much for your wisdom. 21 00:01:48,300 --> 00:01:51,669 KT: So Lindsay, obviously Suze, is referring to the must have 22 00:01:51,680 --> 00:01:56,500 KT: documents and I think that she's so excited to get 23 00:01:56,510 --> 00:01:58,260 KT: her house in order. 24 00:01:58,419 --> 00:02:03,250 Suze: All you have to do is go to must have docs 25 00:02:03,260 --> 00:02:08,059 Suze: dot com and you can get them there. Ok. Ok. 26 00:02:08,598 --> 00:02:12,518 KT: Next question is a nice simple one, Todd. Thank you 27 00:02:12,529 --> 00:02:16,238 KT: so much. I picked you right away. Suze, can you 28 00:02:16,248 --> 00:02:18,248 KT: have more than one trust? 29 00:02:19,328 --> 00:02:19,669 Suze: Yes.     30 00:02:22,220 --> 00:02:26,079 Suze: I'm not exactly sure why you are asking that question. 31 00:02:26,288 --> 00:02:29,750 Suze: Is it? Do you need more than one revocable trust? 32 00:02:29,758 --> 00:02:33,059 Suze: Chances are no, but you can have a revocable trust. 33 00:02:33,070 --> 00:02:35,880 Suze: You can have an irrevocable trust. You can have a 34 00:02:35,889 --> 00:02:39,508 Suze: personal resonance trust. You can have so many trust, a 35 00:02:39,520 --> 00:02:44,089 Suze: special needs, trust, whatever a life insurance trust. So yes, 36 00:02:44,100 --> 00:02:46,809 Suze: you can have more than one trust. All right, I 37 00:02:46,820 --> 00:02:50,470 Suze: only have one to and it does everything I need. 38 00:02:51,195 --> 00:02:55,214 KT: All right. So next is from Naomi. Hi, Suze. I 39 00:02:55,225 --> 00:02:59,154 KT: have all the proper documents done by a lawyer. 40 00:02:59,163 --> 00:03:00,994 Suze: What did you do? Pick all trust questions? 41 00:03:01,005 --> 00:03:04,434 KT: Well, quite a few actually, I kind of group them together, 42 00:03:04,445 --> 00:03:06,994 KT: the ones that are common but, but listen to hers, 43 00:03:07,005 --> 00:03:10,035 KT: she said by a lawyer that my company paid for, 44 00:03:10,044 --> 00:03:13,774 KT: we do not have to pay for anything. My question 45 00:03:13,785 --> 00:03:18,535 KT: to you is that we have bank accounts life insurance policy, 46 00:03:18,544 --> 00:03:19,634 KT: 401K 47 00:03:19,919 --> 00:03:22,809 KT: that ask for beneficiary information 48 00:03:23,070 --> 00:03:26,198 KT: So do we put each other's names or do we 49 00:03:26,210 --> 00:03:30,198 KT: put it in a trust because we have the paperwork done. 50 00:03:30,339 --> 00:03:33,758 KT: How does it go? So, now, now that the lawyer 51 00:03:33,770 --> 00:03:38,039 KT: that her company paid for, who provided all of her documents, 52 00:03:38,339 --> 00:03:40,320 KT: she's wondering, what do you do with them? 53 00:03:41,169 --> 00:03:44,440 Suze: No, it's not. That's not exactly what she's wondering. KT 54 00:03:44,449 --> 00:03:49,399 Suze: she's wondering who should be the beneficiary of many of 55 00:03:49,410 --> 00:03:52,279 Suze: these accounts. The 401k, 56 00:03:53,080 --> 00:03:59,139 Suze: the beneficiary if you are married should always be your spouse. 57 00:03:59,179 --> 00:04:04,080 Suze: So the primary beneficiary in a retirement account, whether it's 58 00:04:04,089 --> 00:04:10,100 Suze: a 401k, a 403B, a TSP, an IRA a SEP IRA or 59 00:04:10,110 --> 00:04:10,750 Suze: a Roth version 60 00:04:10,815 --> 00:04:14,945 Suze: of any of those should always be your spouse. The 61 00:04:14,955 --> 00:04:19,614 Suze: contingent beneficiary should be the trust as far as a 62 00:04:19,625 --> 00:04:22,844 Suze: bank account and things like that. It can be the trust. 63 00:04:22,855 --> 00:04:25,445 Suze: That's not a big deal. All right. 64 00:04:25,454 --> 00:04:31,415 KT: All right. Next question from Teresa comments. Hi, Suze. Thank 65 00:04:31,424 --> 00:04:34,225 KT: you for just being you and sharing your wisdom that 66 00:04:34,234 --> 00:04:36,105 KT: has helped me and my family. 67 00:04:36,113 --> 00:04:39,044 Suze: You see what she said, KT? Thanks for just being me. 68 00:04:40,350 --> 00:04:41,540 KT: What's wrong with that? 69 00:04:41,579 --> 00:04:43,290 Suze: Do you ever wish? I wasn't just me. 70 00:04:43,850 --> 00:04:44,899 KT: No, I just... 71 00:04:45,630 --> 00:04:48,820 Suze: I knew it. I knew it. I knew it! 72 00:04:49,279 --> 00:04:53,799 KT: Recently, my job announced they're now offering a Roth 401k 73 00:04:53,809 --> 00:04:58,849 KT: as another option with our current 401k yearly. Max is 74 00:04:58,859 --> 00:05:03,019 KT: the same company. Match the same. Yes, Suze. I am 75 00:05:03,029 --> 00:05:04,320 KT: maxing the match. 76 00:05:04,589 --> 00:05:08,078 KT: So grateful to you for that. I want to understand 77 00:05:08,089 --> 00:05:10,899 KT: the difference and what should I do? I am not 78 00:05:10,910 --> 00:05:14,410 KT: sure if I can or should contribute to both or 79 00:05:14,420 --> 00:05:18,799 KT: move to just one. I am 60. So retirement for 80 00:05:18,809 --> 00:05:21,899 KT: me may be 5 to 7 years and I'm now 81 00:05:21,910 --> 00:05:23,660 KT: going through a divorce. 82 00:05:24,750 --> 00:05:27,559 KT: Pray you can give me some advice. 83 00:05:27,570 --> 00:05:30,720 Suze: The first bit of advice that I could give you 84 00:05:30,730 --> 00:05:35,420 Suze: is really finalize that divorce as soon as possible or 85 00:05:35,488 --> 00:05:40,320 Suze: make sure that everything that you are accumulating, stops going 86 00:05:40,329 --> 00:05:42,140 Suze: towards a joint amount 87 00:05:42,410 --> 00:05:46,309 Suze: until you are actually divorced so that you don't have 88 00:05:46,320 --> 00:05:49,219 Suze: to continue to save money knowing that half of it 89 00:05:49,230 --> 00:05:53,659 Suze: may go to your ex spouse and the beneficiary. But 90 00:05:53,670 --> 00:05:57,700 Suze: that's number one. But number two, I don't care what 91 00:05:57,709 --> 00:06:03,760 Suze: age you are. I don't care what your situation happens 92 00:06:03,769 --> 00:06:06,839 Suze: to be. In my opinion, 93 00:06:07,049 --> 00:06:12,219 Suze: there is not one age one tax bracket. One situation 94 00:06:12,369 --> 00:06:17,040 Suze: that would make me ever, ever, ever change my mind 95 00:06:17,049 --> 00:06:22,099 Suze: from saying if you are offered a Roth retirement account 96 00:06:22,260 --> 00:06:25,859 Suze: and you are also offered a traditional retirement account, 97 00:06:26,850 --> 00:06:31,909 Suze: forget any pretax retirement account that you have and only 98 00:06:31,920 --> 00:06:35,570 Suze: put everything you have into a Roth. 99 00:06:35,579 --> 00:06:40,539 KT: Next question, next question is from Carol. She said hi, Suze. 100 00:06:40,549 --> 00:06:44,910 KT: I am my mother's live-in caregiver. She's 93 and she 101 00:06:44,920 --> 00:06:46,140 KT: has dementia. 102 00:06:46,559 --> 00:06:50,850 KT: She has a reverse mortgage on her home. I'm told 103 00:06:50,859 --> 00:06:54,769 KT: if anything happens to her, I have to vacate the premise. 104 00:06:55,238 --> 00:06:58,790 KT: Can you please tell me what my options are, I've 105 00:06:58,799 --> 00:07:03,320 KT: been here caring for my mother for over 20 years 106 00:07:03,329 --> 00:07:03,750 KT: because 107 00:07:03,820 --> 00:07:07,529 KT: she's always been disabled to some degree. Thank you so 108 00:07:07,540 --> 00:07:08,869 KT: very much, Carol. 109 00:07:08,880 --> 00:07:12,559 Suze: Yeah. So what's funny everybody, although this isn't funny is 110 00:07:12,570 --> 00:07:15,790 Suze: that you may or may not know, I go through 111 00:07:15,799 --> 00:07:19,760 Suze: all the emails, I never know which one KT is 112 00:07:19,769 --> 00:07:20,910 Suze: going to choose, 113 00:07:21,269 --> 00:07:23,500 Suze: but I go through them and when I see an 114 00:07:23,510 --> 00:07:28,440 Suze: email like this, I personally answer it and KT, I 115 00:07:28,450 --> 00:07:31,869 Suze: personally answered Carol. So what did you tell her? And 116 00:07:31,880 --> 00:07:34,459 Suze: here's what I told her is that when you have 117 00:07:34,470 --> 00:07:38,420 Suze: a reverse mortgage and for those of you who don't know, 118 00:07:38,429 --> 00:07:42,279 Suze: a reverse mortgage is usually for people who own their 119 00:07:42,290 --> 00:07:47,500 Suze: homes outright. They're 62 years of age or older and 120 00:07:47,510 --> 00:07:48,679 Suze: a company 121 00:07:49,339 --> 00:07:53,609 Suze: pays you to stay in the house. It's the reverse 122 00:07:53,619 --> 00:07:57,230 Suze: of a mortgage when you're paying a company to buy 123 00:07:57,239 --> 00:08:01,600 Suze: the house outright. So now you're getting a specific sum 124 00:08:01,609 --> 00:08:05,109 Suze: of money every single month for the rest of your 125 00:08:05,119 --> 00:08:09,160 Suze: life and they charge you a specific interest rate for that. 126 00:08:09,380 --> 00:08:12,480 Suze: It's based on your life expectancy, the interest rates at 127 00:08:12,489 --> 00:08:16,290 Suze: the time. Sometimes people just get one big lump sum 128 00:08:16,989 --> 00:08:21,839 Suze: and that's that. But over the years as they keep 129 00:08:21,850 --> 00:08:24,239 Suze: giving you money or if they gave you a large 130 00:08:24,250 --> 00:08:27,529 Suze: lump sum and that money is growing and growing and growing, 131 00:08:27,649 --> 00:08:31,570 Suze: sometimes you could end up with them giving you more 132 00:08:31,579 --> 00:08:33,959 Suze: money than the house is even worth if you live 133 00:08:33,969 --> 00:08:34,919 Suze: long enough. 134 00:08:35,539 --> 00:08:39,500 Suze: But regardless once the person who took out the reverse 135 00:08:39,510 --> 00:08:45,590 Suze: mortgage dies, in most circumstances, there are two possibilities. 136 00:08:46,380 --> 00:08:51,679 Suze: You either have to pay the reverse mortgage company back, 137 00:08:51,760 --> 00:08:56,580 Suze: the amount of the appraised value of the home or 138 00:08:56,599 --> 00:09:00,940 Suze: the house is almost immediately sold. And that's how they 139 00:09:00,950 --> 00:09:06,439 Suze: get their money back. Either way I have a feeling 140 00:09:06,630 --> 00:09:09,609 Suze: and this is what I told Carol, Carol, you're most 141 00:09:09,619 --> 00:09:13,848 Suze: likely needing to make arrangements right now. What are you 142 00:09:13,859 --> 00:09:15,109 Suze: going to do 143 00:09:15,570 --> 00:09:20,690 Suze: when mama passes away? Because chances are you're going to 144 00:09:20,700 --> 00:09:23,559 Suze: have to leave and vacate the house and they will 145 00:09:23,570 --> 00:09:27,559 Suze: sell the house almost immediately. So you have to make 146 00:09:27,570 --> 00:09:32,169 Suze: plans for that. And Carol wrote me back and said 147 00:09:32,250 --> 00:09:34,789 Suze: she doesn't know what she's gonna do. She's a little 148 00:09:34,799 --> 00:09:38,500 Suze: bit still confused. She loves so much that I wrote her. 149 00:09:39,150 --> 00:09:42,330 Suze: But in my own mind, KT want to know what 150 00:09:42,340 --> 00:09:46,429 Suze: I was thinking when somebody has spent 20 years or 151 00:09:46,440 --> 00:09:50,919 Suze: more of their lives, taking care of their mother, 152 00:09:51,549 --> 00:09:56,489 Suze: something will happen and everything will be just fine for Carol. 153 00:09:56,500 --> 00:09:59,299 Suze: I hope so. Carol will say prayers for you and 154 00:09:59,309 --> 00:10:01,489 Suze: your mommy. All right. Next question. 155 00:10:01,739 --> 00:10:06,109 KT: Next question. This is from Peggy. Suze, I am 60. 156 00:10:06,119 --> 00:10:07,119 KT: I have a Roth. I... 157 00:10:07,260 --> 00:10:09,609 Suze: Wait, wait, I have to say one more thing right 158 00:10:09,619 --> 00:10:13,429 Suze: before you go. This is a lesson to many of 159 00:10:13,440 --> 00:10:15,799 Suze: you though. The Carol example 160 00:10:16,309 --> 00:10:19,559 Suze: as to why you have to be very, very careful 161 00:10:19,570 --> 00:10:23,468 Suze: if you are taking out a reverse mortgage, especially if 162 00:10:23,479 --> 00:10:27,429 Suze: you have somebody who lives in that house, maybe they 163 00:10:27,440 --> 00:10:30,799 Suze: live in that house, a child as a caretaker or whatever. 164 00:10:30,809 --> 00:10:35,719 Suze: Because chances are upon your death, they're going to lose 165 00:10:35,729 --> 00:10:40,640 Suze: where they live at the same time they lost you. 166 00:10:40,859 --> 00:10:44,169 Suze: So please be very careful. Everybody. I do not like 167 00:10:44,179 --> 00:10:48,130 Suze: reverse mortgages. I do not like reverse mortgages. I just 168 00:10:48,140 --> 00:10:50,228 Suze: don't like them. All right. 169 00:10:50,260 --> 00:10:52,210 KT: Hi, Suze. This is from Peggy. 170 00:10:52,440 --> 00:10:56,589 KT: I am 60. I have a Roth Ira at TD Ameritrade, 171 00:10:56,799 --> 00:11:01,179 KT: I love TD Ameritrade. We had so much fun with them. I actually... 172 00:11:01,190 --> 00:11:04,489 Suze: The truth is Peggy. You now have a Roth Ira 173 00:11:04,510 --> 00:11:07,530 Suze: at Charles Schwab. Just so you know. 174 00:11:07,539 --> 00:11:09,650 KT: So let me, let me finish here. I've had it 175 00:11:09,659 --> 00:11:13,690 KT: for many years. You probably were responsible for that, Suze. 176 00:11:13,859 --> 00:11:17,450 KT: Can I take $100,000 out 177 00:11:17,719 --> 00:11:22,010 KT: to invest in a three year fixed annuity then put 178 00:11:22,020 --> 00:11:27,210 KT: it back in keeping its Roth status. That's the question. 179 00:11:27,280 --> 00:11:27,960 Suze: That's your quizzie. 180 00:11:29,559 --> 00:11:32,580 KT: Oh, Susie. I have no idea. I think the answer 181 00:11:32,590 --> 00:11:33,218 KT: is no. 182 00:11:33,559 --> 00:11:36,270 Suze: Ding, ding, ding, ding, ding, ding, ding, ding, ding, ding. 183 00:11:36,809 --> 00:11:40,580 Suze: So Right. So here's the question back at you, Peggy. 184 00:11:40,590 --> 00:11:43,579 Suze: Why would you even want to do that if there's 185 00:11:43,590 --> 00:11:46,869 Suze: a three year fixed annuity that you want to buy 186 00:11:46,880 --> 00:11:49,250 Suze: for some reason? And I can't imagine why, 187 00:11:50,340 --> 00:11:55,609 Suze: why not buy it within your Roth IRA. Obviously the 188 00:11:55,619 --> 00:11:59,799 Suze: three year fixed annuity must be giving you some extraordinary 189 00:11:59,809 --> 00:12:05,559 Suze: interest rate for three years. But please just be careful 190 00:12:05,570 --> 00:12:10,539 Suze: that that three year fixed annuity matures in three years 191 00:12:10,549 --> 00:12:13,260 Suze: and you can get all your money back, especially if 192 00:12:13,270 --> 00:12:15,710 Suze: you did it within the Roth IRA 193 00:12:16,109 --> 00:12:21,159 Suze: and not where it's just fixed for three years and 194 00:12:21,169 --> 00:12:23,718 Suze: then you have to go on and keep it because 195 00:12:23,729 --> 00:12:28,059 Suze: the surrender charge is for seven years. Please. The money 196 00:12:28,070 --> 00:12:30,599 Suze: that you have in the Roth there is no way 197 00:12:30,609 --> 00:12:33,900 Suze: that of annuity could be paying you more than 198 00:12:34,210 --> 00:12:37,539 Suze: uh you know, six months or three month treasury bill 199 00:12:37,549 --> 00:12:42,140 Suze: or something like that or even a longer term treasury 200 00:12:42,150 --> 00:12:45,479 Suze: note or maybe even a bond. So please don't do it, 201 00:12:45,489 --> 00:12:48,869 Suze: don't do it, don't do it. Oh, look, she says 202 00:12:48,880 --> 00:12:50,959 Suze: happy anniversary to you and KT, 203 00:12:52,299 --> 00:12:54,229 KT: Happy anniversary, Suze again, 204 00:12:54,239 --> 00:12:58,239 Suze: Again and again and again and again and again because 205 00:12:58,250 --> 00:13:00,299 Suze: we have three. So anyway, go on. 206 00:13:00,780 --> 00:13:03,909 KT: Ok. This next question is from Raquel. I love this 207 00:13:03,919 --> 00:13:08,229 KT: question says, hello, Suze and KT. I'm so glad I found 208 00:13:08,239 --> 00:13:13,000 KT: y'all's podcast and that she wrote. No, that's what she wrote. 209 00:13:13,010 --> 00:13:17,130 KT: She wrote y'all's podcast. This is my southern girl Raquel. 210 00:13:17,169 --> 00:13:20,630 KT: I love that. There is so much about money and 211 00:13:20,640 --> 00:13:24,939 KT: finances that I don't know. And your show has refreshingly 212 00:13:24,950 --> 00:13:27,090 KT: pointed me in the right direction. 213 00:13:27,419 --> 00:13:31,080 KT: So my question is, my dad started a Gerber savings 214 00:13:31,090 --> 00:13:35,450 KT: account for my son about three years ago. Please give 215 00:13:35,460 --> 00:13:36,140 KT: me your opinion. 216 00:13:36,229 --> 00:13:41,330 Suze: Can, you can hear her making my great breakfast bad... 217 00:13:44,414 --> 00:13:48,424 KT: Suze, please give me your opinion about the Gerber savings. And 218 00:13:48,434 --> 00:13:53,544 KT: can you suggest a better one if necessary? So, there 219 00:13:53,554 --> 00:13:56,544 KT: you go, Suze. Give Raquel. 220 00:13:56,664 --> 00:14:01,414 Suze: Well, Raquel, I think I already gave you my opinion, 221 00:14:01,655 --> 00:14:04,064 Suze: but here's the thing I want you to not just 222 00:14:04,075 --> 00:14:08,155 Suze: take my opinion and obviously I think it is one 223 00:14:08,164 --> 00:14:10,025 Suze: of the worst things you could ever do. 224 00:14:10,260 --> 00:14:15,530 Suze: I think it is absolutely sad that they are profiting 225 00:14:15,539 --> 00:14:17,709 Suze: off of the fact of that. There's this sweet little 226 00:14:17,719 --> 00:14:21,210 Suze: baby in the Gerber baby and how they advertise it. 227 00:14:21,219 --> 00:14:22,789 Suze: Go online. 228 00:14:23,669 --> 00:14:25,469 Suze: I don't even have to do this to know what 229 00:14:25,479 --> 00:14:30,000 Suze: you're gonna find. Go online and find out what does 230 00:14:30,010 --> 00:14:36,359 Suze: everybody from nerd wallet to everybody think about the Gerber 231 00:14:36,369 --> 00:14:40,059 Suze: savings account, which really is like a life insurance policy 232 00:14:40,070 --> 00:14:45,049 Suze: and blah, blah, blah, blah. It is absolutely ridiculous. Now, 233 00:14:45,059 --> 00:14:48,159 Suze: it says, please give me your opinion about the Gerber 234 00:14:48,169 --> 00:14:49,900 Suze: savings account that I've done. 235 00:14:50,320 --> 00:14:54,359 Suze: And can you suggest a better one if necessary? I 236 00:14:54,369 --> 00:14:55,849 Suze: have to tell you 237 00:14:56,739 --> 00:15:01,030 Suze: my alliant dot com. You should go there and for 238 00:15:01,039 --> 00:15:04,130 Suze: now because it's gonna be up sooner than later. If 239 00:15:04,140 --> 00:15:08,710 Suze: you have an ultimate opportunity savings account there, then you 240 00:15:08,719 --> 00:15:13,150 Suze: can open one up for your child. You put in 241 00:15:13,179 --> 00:15:18,390 Suze: $100 a month. After 12 months, they get another $100 242 00:15:18,400 --> 00:15:23,070 Suze: plus currently the 3.10% interest. Who knows? They may change 243 00:15:23,080 --> 00:15:25,409 Suze: that soon and raise it. But even if 244 00:15:25,489 --> 00:15:29,890 Suze: they don't raise it $100 a month, you get $100 245 00:15:29,900 --> 00:15:33,299 Suze: at the end. That is still an extraordinary double digit 246 00:15:33,309 --> 00:15:38,039 Suze: return on your money. After that, you can make a decision. 247 00:15:38,049 --> 00:15:40,500 Suze: Does it make sense to leave it there? Does it not, 248 00:15:40,510 --> 00:15:43,849 Suze: you're free to do anything you want? So I would 249 00:15:43,859 --> 00:15:46,200 Suze: go to my alliant dot com. 250 00:15:46,409 --> 00:15:51,340 Suze: You'll see three choices there. Click the kids' savings account. 251 00:15:51,349 --> 00:15:54,840 Suze: And if you don't have one yet, open one up 252 00:15:54,849 --> 00:15:58,890 Suze: in your name, you put in $100 a month, you 253 00:15:58,900 --> 00:16:02,390 Suze: get $100 at the end, both of you do it 254 00:16:02,530 --> 00:16:06,260 Suze: and that would be so much better than this Gerber 255 00:16:06,270 --> 00:16:07,880 Suze: whatever you want to call it. 256 00:16:08,080 --> 00:16:12,599 KT: So they stick to baby food, they stick to baby 257 00:16:12,609 --> 00:16:18,239 KT: food and money, you stick to Alliant. Ok. Next question from Naomi. 258 00:16:18,400 --> 00:16:22,489 KT: Good morning, Suze. May I ask what type of insurance 259 00:16:22,700 --> 00:16:24,630 KT: you would recommend for a one 260 00:16:24,705 --> 00:16:28,534 KT: and two year old? Also, my husband wants to buy 261 00:16:28,544 --> 00:16:33,614 KT: life insurance for himself to protect us. What should we do? 262 00:16:33,625 --> 00:16:35,755 KT: He is 58 years old. 263 00:16:35,934 --> 00:16:38,375 Suze: So you did group these. Look at your little thing. 264 00:16:38,664 --> 00:16:42,815 Suze: So you have two about kids. So this is a 265 00:16:42,825 --> 00:16:48,195 Suze: little bit controversial because I have a belief that you 266 00:16:48,205 --> 00:16:52,715 Suze: only buy insurance on somebody when in case that person 267 00:16:52,724 --> 00:16:53,914 Suze: were to die 268 00:16:54,630 --> 00:16:59,039 Suze: there would be somebody who would suffer a financial loss. 269 00:16:59,219 --> 00:17:03,280 Suze: You're one and two year old, you're not necessarily going 270 00:17:03,289 --> 00:17:07,750 Suze: to suffer a financial loss. Will you suffer an emotional 271 00:17:07,760 --> 00:17:13,589 Suze: loss beyond your wildest dreams? So, even though it might 272 00:17:13,599 --> 00:17:15,880 Suze: just cost you pennies on the dollar 273 00:17:16,569 --> 00:17:20,459 Suze: here is my thing about it over all the years 274 00:17:20,469 --> 00:17:25,579 Suze: I've been doing this and people did buy insurance for 275 00:17:25,589 --> 00:17:29,389 Suze: their child and their child happened to die all of 276 00:17:29,400 --> 00:17:32,810 Suze: a sudden, they didn't want that money. They just hated 277 00:17:32,819 --> 00:17:36,180 Suze: that money. It was like, oh, I have money but 278 00:17:36,189 --> 00:17:37,899 Suze: I don't have my child and I don't even know 279 00:17:37,910 --> 00:17:39,540 Suze: why I did that. So 280 00:17:39,780 --> 00:17:43,170 Suze: there are people who ever, however, who believe in it 281 00:17:43,180 --> 00:17:46,550 Suze: because it's so inexpensive that if you lose a child, 282 00:17:46,560 --> 00:17:49,869 Suze: you may need that money to just emotionally yourselves get 283 00:17:49,880 --> 00:17:53,430 Suze: by because you might not be able to work or whatever. 284 00:17:53,790 --> 00:17:56,989 Suze: I don't believe in it. However, if you're going to 285 00:17:57,000 --> 00:18:01,099 Suze: do it, the type of insurance needs to be term insurance, 286 00:18:01,109 --> 00:18:03,939 Suze: which is good for a specific period of time. And 287 00:18:03,949 --> 00:18:07,859 Suze: what should your husband do? The exact same thing? Get 288 00:18:07,869 --> 00:18:12,479 Suze: term insurance in this situation, he probably should look for 289 00:18:12,489 --> 00:18:17,130 Suze: a 10 year level term because after those 10 years, 290 00:18:17,630 --> 00:18:20,359 Suze: if he continues to have insurance, it's going to be 291 00:18:20,369 --> 00:18:24,599 Suze: far too expensive. Where would I go to get it? 292 00:18:24,750 --> 00:18:30,709 Suze: My favorite place is select quote dot com. I get 293 00:18:30,719 --> 00:18:33,680 Suze: nothing for it. They don't even know that I recommend them, 294 00:18:33,709 --> 00:18:38,969 Suze: but they have been around forever and I still love them. 295 00:18:38,979 --> 00:18:41,599 Suze: All right. You know, KT, here's, I just want to 296 00:18:41,609 --> 00:18:43,380 Suze: make a comment on this one 297 00:18:43,630 --> 00:18:47,199 Suze: here. They want to buy term insurance on their young 298 00:18:47,209 --> 00:18:49,119 Suze: child when really 299 00:18:49,969 --> 00:18:54,889 Suze: why. But yet the father, the husband is 58 years 300 00:18:54,900 --> 00:18:58,930 Suze: of age and they haven't even thought about buying term 301 00:18:58,939 --> 00:19:02,899 Suze: insurance yet on him. When really they should have bought 302 00:19:02,910 --> 00:19:04,780 Suze: it on him years ago. 303 00:19:04,790 --> 00:19:07,329 KT: We don't know how long they've been. We don't know 304 00:19:07,339 --> 00:19:11,099 KT: enough information, but at that age, you would think 305 00:19:11,439 --> 00:19:14,060 KT: that he may already have had insurance, but he could 306 00:19:14,069 --> 00:19:15,729 KT: be a brand new dad at 58. 307 00:19:15,739 --> 00:19:20,219 Suze: But still anyway, the time to buy it, everybody is 308 00:19:20,229 --> 00:19:24,109 Suze: when you are in your twenties and thirties, forties, the 309 00:19:24,119 --> 00:19:28,819 Suze: older you get with term insurance, the more expensive it is. 310 00:19:28,829 --> 00:19:29,180 Suze: All right. 311 00:19:29,670 --> 00:19:32,800 KT: Ok. This one you need to translate for me and 312 00:19:32,810 --> 00:19:37,209 KT: I don't mean his name. This is from Banoosh. Dear Suze and KT. 313 00:19:37,219 --> 00:19:38,149 KT: I have 314 00:19:38,989 --> 00:19:45,688 KT: VUSTX, a long term bond fund that is not doing well. 315 00:19:45,699 --> 00:19:50,579 KT: I listened to your podcast today. If I understand correctly, 316 00:19:50,680 --> 00:19:54,829 KT: you were encouraging us to buy long term bond funds. 317 00:19:55,000 --> 00:20:00,270 KT: As of 9 22 23. This fund shows a negative 318 00:20:00,280 --> 00:20:03,140 KT: 5.7 year to date return. 319 00:20:03,869 --> 00:20:06,280 KT: I'm not sure if it's a good idea to stay 320 00:20:06,290 --> 00:20:08,199 KT: with this fund, please advise. 321 00:20:08,410 --> 00:20:11,859 Suze: All right. So maybe this Sunday I'll have to do 322 00:20:11,869 --> 00:20:16,900 Suze: a Suze School once again on the difference between individual 323 00:20:16,910 --> 00:20:22,290 Suze: bonds and bond funds. What I have been saying is 324 00:20:22,300 --> 00:20:25,129 Suze: that I would start to dip my toe in. Did 325 00:20:25,140 --> 00:20:29,839 Suze: I not say that little by little by little into 326 00:20:29,849 --> 00:20:31,420 Suze: longer term 327 00:20:31,515 --> 00:20:35,603 Suze: bonds? When interest rates go up, the value of bonds 328 00:20:35,614 --> 00:20:39,145 Suze: go down when interest rates go down, the value of 329 00:20:39,155 --> 00:20:42,824 Suze: bonds go up and it could take a while. So 330 00:20:42,834 --> 00:20:46,935 Suze: if you're looking at 30 year treasury bonds, for instance, 331 00:20:46,944 --> 00:20:52,574 Suze: individual ones, they have started to go up from 4.1% 332 00:20:52,824 --> 00:20:57,944 Suze: in yield to 4.3 to 4.5 the other day, they 333 00:20:57,954 --> 00:21:00,344 Suze: were at 4.6%. 334 00:21:00,770 --> 00:21:03,639 Suze: And which is why I wanted you to go little 335 00:21:03,650 --> 00:21:08,199 Suze: by little. It is absolutely possible and probable that the 336 00:21:08,209 --> 00:21:13,239 Suze: 10 year treasury note will maybe go to 5% which 337 00:21:13,250 --> 00:21:17,420 Suze: means the longer term bonds most likely would also go 338 00:21:17,430 --> 00:21:20,000 Suze: to around five per cent. 339 00:21:20,380 --> 00:21:24,989 Suze: So as they're going up in interest, the value of 340 00:21:25,000 --> 00:21:28,750 Suze: the bond is going down, which is why you see 341 00:21:28,760 --> 00:21:32,910 Suze: your long term bond fund not doing that well, a 342 00:21:32,920 --> 00:21:38,829 Suze: year from now, two years from now, will it do so? Absolutely. However, 343 00:21:38,839 --> 00:21:43,669 Suze: if I were you and you own this bond fund 344 00:21:43,680 --> 00:21:46,229 Suze: outside of a retirement account, 345 00:21:46,660 --> 00:21:50,130 Suze: I would sell it. Now, I would take the losses 346 00:21:50,140 --> 00:21:55,109 Suze: off my taxes and I would go very slowly but 347 00:21:55,119 --> 00:21:59,800 Suze: surely into longer term bonds, but also at the same 348 00:21:59,810 --> 00:22:01,688 Suze: time into short 349 00:22:01,765 --> 00:22:06,135 Suze: term treasury bills. So remember the dumbbell theory that I 350 00:22:06,145 --> 00:22:09,175 Suze: talked about the other day where you take the money 351 00:22:09,185 --> 00:22:11,915 Suze: and little by little, you have money in three and 352 00:22:11,925 --> 00:22:15,405 Suze: six month treasury bills or certificates of deposits, whichever ones 353 00:22:15,415 --> 00:22:18,334 Suze: are paying you the most. And again, 354 00:22:18,770 --> 00:22:23,530 Suze: maybe some into a 10 year treasury note little, just 355 00:22:23,540 --> 00:22:26,698 Suze: a little amount and a 20 year or a 30 356 00:22:26,709 --> 00:22:30,790 Suze: year treasury bond, but not everything at once because as 357 00:22:30,800 --> 00:22:35,400 Suze: interest rates go up, you'll keep going and going into them. 358 00:22:35,410 --> 00:22:38,280 Suze: And then once we think that you've hit the top 359 00:22:38,290 --> 00:22:40,760 Suze: because we never know when something can change right away, 360 00:22:40,930 --> 00:22:43,919 Suze: then all of the money will be invested that way. 361 00:22:44,290 --> 00:22:49,170 Suze: But please don't be confused between long-term bond funds and 362 00:22:49,180 --> 00:22:54,319 Suze: long term bonds. Big difference between the two. Are you 363 00:22:54,339 --> 00:22:57,089 Suze: have a preference? Are you kidding? I am not a 364 00:22:57,099 --> 00:23:01,050 Suze: fan of bond funds on any level, however, but if 365 00:23:01,060 --> 00:23:04,319 Suze: you had to choose if, well, if you have to, 366 00:23:05,640 --> 00:23:09,829 Suze: oh my God bonds individual bonds. However, a lot of 367 00:23:09,839 --> 00:23:13,709 Suze: times in these 401k plans and all, they don't have 368 00:23:13,719 --> 00:23:18,260 Suze: a choice. So we've watched long term bond funds go 369 00:23:18,270 --> 00:23:21,629 Suze: all the way down when interest rates were going up. Now, 370 00:23:21,640 --> 00:23:27,000 Suze: they're kind of stabilizing around here when interest rates eventually 371 00:23:27,010 --> 00:23:28,819 Suze: one day, I don't know when that will be start 372 00:23:28,829 --> 00:23:32,469 Suze: to come down, they will go up in value again. 373 00:23:32,479 --> 00:23:33,140 Suze: All right. 374 00:23:33,459 --> 00:23:35,920 Suze: Looks like interest rates are going to stay put for 375 00:23:35,930 --> 00:23:42,228 Suze: a little right. That's what Jay Powell said. All right. 376 00:23:42,239 --> 00:23:45,099 KT: Ok. From Maria, "Yikes!" 377 00:23:46,469 --> 00:23:49,859 KT: That's why I picked this one. Her comment, Yikes. Hi, 378 00:23:49,869 --> 00:23:55,349 KT: KT and Suze. I have around 60% of rollover IRA 379 00:23:55,359 --> 00:24:01,140 KT: and Fidelity Intermediate Bond funds rest in stocks and T bills. 380 00:24:01,150 --> 00:24:04,429 KT: Is it ok to sell some of the bond fund 381 00:24:04,689 --> 00:24:07,339 KT: to buy the long term notes and bills you were 382 00:24:07,349 --> 00:24:12,169 KT: talking about on Sunday's podcast. I'm happy Suze, that people 383 00:24:12,180 --> 00:24:14,689 KT: really listen and they take action. 384 00:24:15,010 --> 00:24:17,709 KT: To be honest, the bond fund hasn't really made any 385 00:24:17,719 --> 00:24:22,609 KT: money since January just wondering if I need more diversification 386 00:24:22,619 --> 00:24:26,040 KT: in bonds. Thank you so much for any advice that 387 00:24:26,310 --> 00:24:30,219 KT: you go. And this part to that question you just answer. 388 00:24:30,229 --> 00:24:34,060 Suze: So, Maria, if this is money that has, you have 389 00:24:34,069 --> 00:24:38,619 Suze: designated to be invested in the fixed income portion of 390 00:24:38,630 --> 00:24:41,579 Suze: your entire portfolio, 391 00:24:42,420 --> 00:24:48,869 Suze: then I rather see you any day be in individual bonds, 392 00:24:49,459 --> 00:24:55,968 Suze: bills or notes than any type of bond fund again, 393 00:24:55,979 --> 00:24:59,030 Suze: just like I said a second ago, if you decide 394 00:24:59,040 --> 00:25:02,520 Suze: to come out of it truthfully and put the money 395 00:25:02,530 --> 00:25:05,310 Suze: in a money market account at Fidelity where you will 396 00:25:05,319 --> 00:25:06,890 Suze: be making 5% 397 00:25:07,180 --> 00:25:11,199 Suze: and then are around there 4.5 5% whatever they may 398 00:25:11,209 --> 00:25:17,180 Suze: be paying and little by little, you diversify from three 399 00:25:17,189 --> 00:25:20,589 Suze: and six months, maybe some into a two year, maybe some, 400 00:25:20,599 --> 00:25:23,050 Suze: like I said, into a 10 year note, some into 401 00:25:23,060 --> 00:25:26,209 Suze: a 20 year bond, some into a 30. But you 402 00:25:26,219 --> 00:25:31,349 Suze: keep putting that money in as interest rates change or 403 00:25:31,359 --> 00:25:34,419 Suze: go up. Then I think in the long run you'll 404 00:25:34,430 --> 00:25:35,770 Suze: be happy. But listen, 405 00:25:36,449 --> 00:25:41,540 Suze: KT will tell you just yesterday morning, I was talking 406 00:25:41,550 --> 00:25:44,050 Suze: to the person who buys bonds for me and things 407 00:25:44,060 --> 00:25:47,109 Suze: like that and the bonds that I bought the 30 408 00:25:47,119 --> 00:25:50,179 Suze: year bonds that I did buy, I'm down money on, 409 00:25:50,699 --> 00:25:54,119 Suze: but I didn't buy them to sell them yet. I 410 00:25:54,130 --> 00:25:59,849 Suze: bought them to lock in the 4.5, the 4.3 the 4.1% 411 00:25:59,859 --> 00:26:04,188 Suze: interest rates knowing that there will come a time. And 412 00:26:04,199 --> 00:26:07,770 Suze: I don't know when that time will be when interest 413 00:26:07,780 --> 00:26:12,589 Suze: rates will start to come down again. And the 30 414 00:26:12,599 --> 00:26:15,050 Suze: year bonds will skyrocket 415 00:26:15,540 --> 00:26:19,429 Suze: in comparison to the 20 year bond in comparison to 416 00:26:19,439 --> 00:26:22,479 Suze: the 10 year note, the seven year note, the five 417 00:26:22,489 --> 00:26:25,119 Suze: year note, the two year note or the bills. 418 00:26:25,400 --> 00:26:28,938 Suze: And it's then when I will make the money in 419 00:26:28,949 --> 00:26:33,920 Suze: the meantime. All right. So I'm making 4.14 0.3 versus 420 00:26:33,930 --> 00:26:38,140 Suze: 4.6 or whatever. I'm not interested in that. It's a 421 00:26:38,150 --> 00:26:42,329 Suze: great interest rate. They are treasuries, they're safe and sound. 422 00:26:42,339 --> 00:26:45,880 Suze: But when interest rates start to come down, that's when 423 00:26:45,890 --> 00:26:49,159 Suze: you want to be long term, we just have to 424 00:26:49,170 --> 00:26:51,729 Suze: kind of figure out when that will be. It is 425 00:26:51,739 --> 00:26:53,319 Suze: your time right now, Miss Travis. 426 00:26:55,469 --> 00:26:56,750 KT: Suze - 30 year 427 00:26:58,020 --> 00:27:02,599 KT: and bonds bonds, 30 year bonds, 30 year bonds ready. 428 00:27:03,459 --> 00:27:05,139 KT: We're going to be over 100. 429 00:27:05,540 --> 00:27:08,030 Suze: I'm not holding them for 30 years. 430 00:27:09,079 --> 00:27:12,260 Suze: I expect within two years, I was gonna say to everyone, 431 00:27:12,270 --> 00:27:15,729 Suze: she's gonna stick around and see what now in 30 years, 432 00:27:15,859 --> 00:27:19,708 Suze: somewhere within a year or two, KT, we will be 433 00:27:19,719 --> 00:27:23,290 Suze: selling for a very handsome profit. Even if it's three 434 00:27:23,300 --> 00:27:25,149 Suze: years from now, we will be 435 00:27:25,314 --> 00:27:27,524 Suze: so happy that we did that. 436 00:27:28,834 --> 00:27:33,805 KT: What's my quizzie? It's for all of us. Everyone listening. 437 00:27:33,824 --> 00:27:36,875 KT: Listen up. It's not just KT, I usually get it 438 00:27:36,885 --> 00:27:39,244 KT: wrong but let's see how we do on this one. 439 00:27:39,255 --> 00:27:40,064 KT: All right. 440 00:27:40,214 --> 00:27:46,005 Suze: Hello, Susie. I want to start a compound savings account 441 00:27:46,425 --> 00:27:52,614 Suze: at $2000 a year starting this year for my seven 442 00:27:52,685 --> 00:27:54,724 Suze: year old granddaughter. 443 00:27:55,520 --> 00:28:00,449 Suze: I researched that if I did that for eight years, 444 00:28:00,459 --> 00:28:06,629 Suze: starting in 2024. Are you writing this all down? Everybody. 445 00:28:06,869 --> 00:28:07,909 KT: I'm listening... 446 00:28:08,079 --> 00:28:15,069 Suze: and never contributed or touched it again until she was 54. So, 447 00:28:15,079 --> 00:28:21,290 Suze: KT starting next year in 2024. 448 00:28:23,150 --> 00:28:29,859 Suze: All the way for eight years. Right. So, $16,000 for 449 00:28:29,869 --> 00:28:35,099 Suze: eight years, she's seven years old. She's gonna be 15, 450 00:28:35,109 --> 00:28:36,800 Suze: 15 years old. She'll be, 451 00:28:37,880 --> 00:28:42,979 Suze: she'll be 15 years old and she's gonna have $16,000 452 00:28:42,989 --> 00:28:47,790 Suze: that has been compounding over the past number of years. So, 453 00:28:48,069 --> 00:28:51,369 Suze: here's the question. How much is she gonna get? Wait? 454 00:28:51,859 --> 00:28:55,189 Suze: So if she never touched it again. She never put 455 00:28:55,199 --> 00:29:00,869 Suze: in another penny. Right. And she did not touch it 456 00:29:00,880 --> 00:29:04,170 Suze: till she was 54 years of age. 457 00:29:04,619 --> 00:29:13,989 Suze: She would have about $2.3 million with her compounding interest. 458 00:29:14,589 --> 00:29:17,349 Suze: This could be retirement money for her. 459 00:29:18,109 --> 00:29:22,959 Suze: What kind of ETF or compounding account would be best 460 00:29:22,969 --> 00:29:26,000 Suze: for this? Do you like this idea? 461 00:29:26,430 --> 00:29:29,089 KT: So, so what's the question? What's the quizzie question? 462 00:29:29,469 --> 00:29:32,290 KT: Do I like the idea or not? 463 00:29:32,530 --> 00:29:36,920 Suze: No, because here's the question. Do you believe KT 464 00:29:37,479 --> 00:29:41,890 Suze: that if she put in $16,000 for over an eight 465 00:29:41,979 --> 00:29:45,949 Suze: year period of time, 2000 a year. And she never 466 00:29:45,959 --> 00:29:47,209 Suze: touched it again. 467 00:29:47,219 --> 00:29:50,369 KT: When the girl's 15, she stops getting that 2000 468 00:29:50,849 --> 00:29:54,449 Suze: And she didn't touch it till she was 54. Would she, 469 00:29:54,459 --> 00:30:02,810 Suze: is there any way possible that she would have $2.3 million? 470 00:30:02,819 --> 00:30:06,489 KT: So that's like 50 years of compounding 471 00:30:07,069 --> 00:30:12,760 KT: the $16,000 compounding money? 50 years, 40 50 years. Um, 472 00:30:13,199 --> 00:30:14,800 KT: would she have how much? 473 00:30:15,760 --> 00:30:21,439 Suze: $2.3 million. 474 00:30:21,479 --> 00:30:24,030 KT: Well, I think she'd have close to that but not 475 00:30:24,040 --> 00:30:28,119 KT: exactly that much because that's a, I mean, even if 476 00:30:28,130 --> 00:30:32,109 KT: it was like a 10% of compounding, which is a lot, 477 00:30:33,000 --> 00:30:36,099 KT: um, I think she would have like a little less 478 00:30:36,109 --> 00:30:39,770 KT: than that close though, maybe 2 million. 479 00:30:40,319 --> 00:30:41,280 Suze: So, what's your answer? 480 00:30:41,290 --> 00:30:42,819 KT: So, wait, what's the question again? 481 00:30:42,839 --> 00:30:46,810 Suze: The question is, do you think that's really possible at 482 00:30:46,819 --> 00:30:51,619 Suze: an interest rate, forget investments in the market, but just 483 00:30:51,630 --> 00:30:54,390 Suze: simply by getting an interest rate, is that possible? 484 00:30:54,400 --> 00:30:57,449 KT: It is if it's compounding for such a long time... 485 00:30:57,569 --> 00:30:58,729 Suze: At what interest rate? 486 00:30:58,739 --> 00:31:00,150 KT: Wow. A lot, 487 00:31:00,500 --> 00:31:02,839 KT: a pretty high interest rate. Right, Suze. 488 00:31:03,770 --> 00:31:06,959 KT: Wait, wait, wait, if it's an interest, you always use 489 00:31:06,969 --> 00:31:09,459 KT: like a 10% interest rate as a model, it would 490 00:31:09,469 --> 00:31:11,640 KT: have to be almost 15% I think. 491 00:31:12,930 --> 00:31:15,140 Suze: Right. So, listen to me, everybody. 492 00:31:15,829 --> 00:31:17,099 KT: But is that possible? 493 00:31:17,219 --> 00:31:23,199 Suze: Only if she makes approximately a 12.9 to 13% interest 494 00:31:23,209 --> 00:31:28,359 Suze: rate or annual average rate of return. So the answer 495 00:31:28,369 --> 00:31:28,780 Suze: is 496 00:31:29,109 --> 00:31:33,280 Suze: it's possible if it was more with like 15% interest. 497 00:31:33,290 --> 00:31:36,550 Suze: So anyway, here's what you need to know everybody seriously 498 00:31:36,560 --> 00:31:41,520 Suze: and especially especially Leslie, chances are, I'm the one who 499 00:31:41,530 --> 00:31:45,300 Suze: created that example because I was trying to get kids 500 00:31:45,310 --> 00:31:49,739 Suze: to understand the compounding value of an annual average rate 501 00:31:49,750 --> 00:31:53,719 Suze: of return. So if this is something that you would 502 00:31:53,729 --> 00:31:57,219 Suze: like to do for your granddaughter, 503 00:31:57,719 --> 00:32:01,469 Suze: it is possible but you would have to have an 504 00:32:01,479 --> 00:32:06,560 Suze: annual average rate of return, which means some years, the 505 00:32:06,569 --> 00:32:09,729 Suze: money might be up 30% some of the years, the 506 00:32:09,739 --> 00:32:15,089 Suze: the money might be down 50%. But over all 40 years, 507 00:32:15,910 --> 00:32:21,660 Suze: it averaged about 13% a year. Now, that used to 508 00:32:21,670 --> 00:32:26,969 Suze: be really attainable years ago because the average annual rate 509 00:32:26,979 --> 00:32:30,280 Suze: of return over 40 years in the stock market a 510 00:32:30,290 --> 00:32:35,920 Suze: while ago was about 12 or 13 or 14%. Now, 511 00:32:35,930 --> 00:32:39,439 Suze: I think it will be a little bit harder just 512 00:32:39,449 --> 00:32:42,160 Suze: to give you an idea, 513 00:32:42,719 --> 00:32:46,250 Suze: you know, over 40 years, if you were just to get, 514 00:32:46,260 --> 00:32:48,709 Suze: let's just say 4%. 515 00:32:49,339 --> 00:32:52,750 Suze: Right. And let's say you put the $2000 in every 516 00:32:52,760 --> 00:32:58,170 Suze: single year and for those years, the money earned 4%. 517 00:32:58,920 --> 00:33:03,089 Suze: That means at the end of the time when you stop, 518 00:33:03,099 --> 00:33:08,290 Suze: for those eight years, you would have $19,165 in that account. 519 00:33:08,949 --> 00:33:15,680 Suze: Then that $19,165 over the next 40 years. Listen to me, everybody. 520 00:33:16,339 --> 00:33:21,069 Suze: If you didn't put in another penny, if it earned 4% 521 00:33:21,660 --> 00:33:25,540 Suze: or it was an annual average rate of return of 4% 522 00:33:25,699 --> 00:33:31,050 Suze: you'd have only $92,000 at 6%. You'd have 100 and 523 00:33:31,060 --> 00:33:32,969 Suze: $97,000 524 00:33:33,390 --> 00:33:41,540 Suze: at 10%. You would have $867,000 at 12%. You would 525 00:33:41,550 --> 00:33:46,869 Suze: have about 1.7 million and at about 13% you would 526 00:33:46,880 --> 00:33:52,229 Suze: have the 2.3 million. So you should do it. 527 00:33:52,829 --> 00:33:58,349 Suze: But you need to understand that to get that million dollars, 528 00:33:58,380 --> 00:34:01,219 Suze: it really is going to have to be invested in 529 00:34:01,229 --> 00:34:05,699 Suze: an exchange traded fund like the Vanguard Total Stock market 530 00:34:05,709 --> 00:34:09,870 Suze: Index fund and the hopes that over all that time 531 00:34:09,879 --> 00:34:16,179 Suze: it averages for you about 13%. So that's what you 532 00:34:16,189 --> 00:34:18,139 Suze: need to know. But it is not 533 00:34:18,479 --> 00:34:25,250 Suze: guaranteed under any level, but something will be better than nothing. 534 00:34:25,260 --> 00:34:30,330 Suze: Even if you locked in a thirty-year treasury bond, she 535 00:34:30,340 --> 00:34:36,649 Suze: would be guaranteed to have $92,000 grandma put in $5000 536 00:34:36,659 --> 00:34:37,169 Suze: a year. 537 00:34:37,449 --> 00:34:41,919 Suze: No, no, it's like, but just know that when you 538 00:34:41,929 --> 00:34:44,589 Suze: read examples like that and I can tell you, I 539 00:34:44,600 --> 00:34:48,529 Suze: was the one who created that example years ago just so, 540 00:34:48,540 --> 00:34:52,780 Suze: you know, you have to understand how it really works 541 00:34:52,790 --> 00:34:57,919 Suze: and now all of you do, right. KT, that's it. 542 00:34:57,929 --> 00:35:00,259 KT: So what are you gonna do on Sunday? She said to 543 00:35:00,270 --> 00:35:03,120 KT: all of you, she's going to do another lesson in. 544 00:35:03,489 --> 00:35:06,549 Suze: Maybe, maybe, maybe because you can all look it up 545 00:35:06,560 --> 00:35:09,360 Suze: and listen to it. You know, we'll have to see 546 00:35:09,370 --> 00:35:13,120 Suze: what's gonna really, really happen here with the government. Are 547 00:35:13,129 --> 00:35:17,580 Suze: they going to shut down? Are they not what will happen? 548 00:35:17,600 --> 00:35:21,399 Suze: Although it's just such a boring topic because they go 549 00:35:21,409 --> 00:35:25,000 Suze: through this all the time, you know. So there's other 550 00:35:25,010 --> 00:35:27,800 Suze: things that are kind of on my mind as well. 551 00:35:28,050 --> 00:35:31,449 Suze: You know, about some of the scare tactics that are 552 00:35:31,459 --> 00:35:35,409 Suze: out there about certain ETFs that invest all kinds of 553 00:35:35,419 --> 00:35:38,070 Suze: things are out there right now. So I just kind 554 00:35:38,080 --> 00:35:41,899 Suze: of wait and see what really, really happens. 555 00:35:42,250 --> 00:35:45,819 KT: Also I'm going to remind everyone we're in the throes here, 556 00:35:45,830 --> 00:35:50,050 KT: we're in the throes of hurricane season and Susie and 557 00:35:50,060 --> 00:35:52,979 KT: I have been glued as we always are every autumn 558 00:35:52,989 --> 00:35:53,959 KT: to the weather 559 00:35:54,229 --> 00:35:57,419 KT: and what we're seeing with these water events and rain 560 00:35:57,429 --> 00:36:00,179 KT: events and water rivers and all these things that I 561 00:36:00,189 --> 00:36:03,919 KT: never heard of before. It makes you really wonder what 562 00:36:03,929 --> 00:36:08,500 KT: is important to prioritize and get those must have documents 563 00:36:08,510 --> 00:36:14,070 KT: in order for, in order for us. Right. We have 564 00:36:14,080 --> 00:36:16,770 KT: one hurricane that might be coming right at us. So 565 00:36:16,780 --> 00:36:20,860 KT: we'll see what happens to, but we're definitely preparing for it. Yeah, 566 00:36:20,870 --> 00:36:23,379 KT: if you get a best of Sunday means we had to 567 00:36:23,389 --> 00:36:26,120 KT: get out of all right. 568 00:36:26,129 --> 00:36:30,580 Suze: But until then there's only one thing that we want 569 00:36:30,590 --> 00:36:34,520 Suze: you to say every single day and it is today, 570 00:36:34,530 --> 00:36:39,299 Suze: wherever I go, I will create a more joyful, peaceful 571 00:36:39,310 --> 00:36:43,709 Suze: and loving world. And if you do that, you will 572 00:36:43,719 --> 00:36:47,779 Suze: be unstoppable. Bye bye now. Bye.