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Music: MUSIC. 

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KT: Good morning, Suze. Let's start with Good morning Suze. How

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KT: you sleep?

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Suze: Wait. You want me to say that before I say

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Suze: the date.

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KT: Yeah. Good morning, Suze. It's so early. It's even a

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KT: little dark out. It's really early. We have a big

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KT: weekend ahead of us. So we're starting early.

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Suze: The reason we have a big weekend is why KT?

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KT: The family's coming and the kids are coming and when

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KT: the kids come, it's really fun.

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KT: Matter of fact, little Tommy J who's five, said he

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KT: wants to ride on the fire truck. We have an

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KT: island fire truck with Colo and he said he won't

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KT: be afraid when they blow the horn.

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Suze: Last year. He cried, cried and cried.

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KT: And his brother who's three, looked at him and said, brother,

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KT: you won't cry when they blow the horn?

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Suze: All right, this is our podcast and this is April 6th, 2023.

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Suze: Welcome everybody to the Women and Money podcast, and everybody's

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Suze: smart enough to listen. And this is the Ask KT

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Suze: and Suze anything edition. And I just want to say

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Suze: that if you want to ask a question, you do

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Suze: write into ask Suze S U Z E podcast at

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Suze: gmail dot com.

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Suze: And if KT chooses it, we will answer it on

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Suze: the podcast. However, I can tell you she does not

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Suze: like long emails. I watched her go through them the

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Suze: other day and one by the other, too much information here.

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Suze: So anyway, just keep that...

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KT: I have a big variety here though. We might want

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KT: to be able to do a fast fire to get

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KT: through them because I've got a huge, I think I

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KT: have like 12 questions. Well, we've already taken up 10 minutes.

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KT: All right, let's go ready. First one's from Gaye. She

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KT: said I am 70 plus among my assets is a

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KT: relatively small bank CD.

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KT: I do not need this money for my routine expenses.

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KT: But the question is if I want to renew with

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KT: the maturity date past the required RMD date, does the

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KT: bank have to let me withdraw the RMD without penalty

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KT: before maturity?

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KT: No, she said that, Suze.

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Suze: No, it's all right. Let me just answer it. Doesn't

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Suze: matter what the bank said.

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KT: No, she's, this is funny though. She said the bank

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KT: person I asked didn't give me confidence, he actually knew

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KT: the answer. So I'm asking Suze.

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Suze: And Suze will tell you no, for those of you

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Suze: who want to know RMD, is required minimum distributions.

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Suze: And if you were born between 1951 and 1959, the

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Suze: new required minimum distribution age is 73. If you were

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Suze: born after 1959, it is 75. RMDS mean required minimum

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Suze: distributions which does translate to: once you turn

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Suze: that age, you have got to take out a required

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Suze: distribution from your retirement accounts that are non ROTH and

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Suze: there is a minimum that you must take out. So Gaye, No,

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Suze: if you happen to, let's just say, buy a five

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Suze: year certificate of deposit right now and you need to

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Suze: take out more than the interest that, that deposit is

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Suze: absolutely generating for you.

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Suze: The bank does not allow you to do so without

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Suze: charging you if you break into that certificate of deposit,

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Suze: a probably a three or six month penalty. All right,

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Suze: go on.

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KT: Suze, next question is from Joseph. I quickly must make

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KT: a huge decision regarding my government pension, which is $100,000 annually,

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KT: whether I should take 100% joint survivor for my wife

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KT: or 50% joint survivor with the pop up.

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KT: I, yeah, I didn't know what a pop up. I

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KT: started reading your book, The Ultimate Retirement Guide for 50 Plus.

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KT: And I know you recommend 100% joint and survivor if possible.

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KT: We also have other assets. We believe our retirement accounts

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KT: will grow to over three million and more within 10,

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KT: 15 or even 20 years. With all this in mind,

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KT: would you still recommend giving up a lot of extra

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KT: money on 100

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KT: percent joint and Survivor knowing we have these other assets?

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Suze: Let me just see this because they list it right. KT... Yes.

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Suze: See when you do a long email, KT will jump

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Suze: over all the individual things where like, I'm looking at

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Suze: the email and Joseph, you're listing all the money that

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Suze: you have in your 401k plans. You're telling me that

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Suze: your parents own rental property and that you're the beneficiaries

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Suze: of it and they're worth $2 million and on and

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Suze: on and on.

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Suze: Joseph. Let me first explain to everybody what you're talking

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Suze: about here and then I'll tell you my answer, Joseph

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Suze: has a job, everybody that's going to pay him a

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Suze: monthly pension and that monthly pension will total $100,000 a year,

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Suze: which means Joseph will be getting $8,333 a month.

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Suze: Let's just say that was a life only option, which

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Suze: means if Joseph were to die,

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Suze: Then that $8,333 a month goes away.

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Suze: Every company that offers a pension, offers you different survivor

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Suze: benefits and usually the survivor has to be your spouse.

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Suze: So if Joseph wanted to, he could have 100% joint

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Suze: and survivor benefit, which means whatever they are paying him

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Suze: when he dies, his spouse gets 100% of what they

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Suze: were getting or a 75% joint and survivor benefit or

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Suze: a 50% joint and survivor benefit or like I just said,

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Suze: a life only benefit,

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Suze: Which is what I think Joseph is talking about here

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Suze: because the amount of money is so great.

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Suze: A pop up option is this, if Joseph were to take,

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Suze: let's just say the 100% joint and Survivor benefit, they

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Suze: would possibly reduce that $8333 a month down to let's

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Suze: just say $6000 a month or $7000 a month where

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Suze: if Joseph were to die,

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Suze: his spouse would continue to get $7,000 a month. However,

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Suze: if his spouse died before he did, his benefit would

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Suze: pop up to the $8,333 a month. That's what's called

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Suze: a pop up option.

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Suze: Now that I've explained what all of that is... over

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Suze: all the years that I was doing retirement planning for

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Suze: Pacific Gas and Electric where they had to choose which

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Suze: joint and Survivor benefit they should choose. And I was

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Suze: with them long enough to see when they were younger.

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Suze: And what did they choose to when they were older?

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Suze: And they died, every single one

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Suze: who didn't choose the 100% joint and Survivor benefit pop

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Suze: up option regretted it. Number one. Number two Joseph, since

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Suze: you have so much money that you say that you're

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Suze: going to have, you're gonna have $3 million in your

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Suze: retirement account. You're gonna inherit $2 million here and on

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Suze: and on and on.

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Suze: What do you care? What will a little bit amount

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Suze: of money, whether it's 15,000 a year or $20,000 a year?

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Suze: What difference will it make to you

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Suze: to give up that income since you have so much money?

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Suze: If you're really not worried about money at all, you

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Suze: definitely shouldn't be worried about choosing 100% joint and survivor

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Suze: benefit with a pop up. So through all my years,

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Suze: 40 of them, Joseph,

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Suze: that I have been dealing with this, I would always

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Suze: tell you to choose the 100% joint and survivor pop

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Suze: up benefit. KT next question.

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KT: OK, Susie, I'm confused.

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Suze: Are we talking about you?

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KT: No, Brenda

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Suze: Because KT says to me all the time, Suze, I'm confused.

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KT: This is Brenda's confusion and, and this actually, this is

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KT: a great question because my sister asked Suze the same

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KT: question

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KT: She said Susie, I'm confused as to if I want my

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KT: husband to be named as a co owner or the

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KT: beneficiary of my Alliant CD. Is there an advantage to

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KT: either one? It's exactly what Lynn asked you, right?

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Suze: So the answer to that question is Brenda very simple.

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Suze: A beneficiary on your Alliant CD or any CD

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Suze: would mean you die and that money goes directly to

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Suze: him in this particular case. So you own it in

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Suze: your individual name. He has no say over it. This

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Suze: is your money, Brenda.

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Suze: And upon your death, your husband would get it. If

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Suze: he is co owner, it means both of you own

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Suze: it so he can make decisions with it as well.

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Suze: So it depends how you feel about your husband. Do

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Suze: you want to give him any rights over this money

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Suze: or not? Do you want him to get it when

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Suze: you die?

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Suze: So, if all you want is for him to get

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Suze: it when you die, make him the beneficiary. If you

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Suze: don't care that he has total rights over this money

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Suze: and everything, make him the co owner.

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KT: All right. Next question is from Paul. Hi, Suze. My

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KT: wife and I have approximately $350,000 in a brokerage account.

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KT: This is a well balanced account with stocks, mutual funds

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KT: and bond funds. We also have considerable savings in an

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KT: emergency fund. We're both retired and we have no debt.

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KT: Our health care is paid by Medicare by my former employer.

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KT: I think both of them since retirement, we've never taken

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KT: any distributions from this account. So this is Paul's question:

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KT: Do we wait for the market to return to somewhat

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KT: normalcy or start taking distribution sooner?

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KT: Our income including SSI is $60,000 but our annual taxable

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KT: income is only about 25,000. My wife and I are

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KT: both 70. We understand by law we need to start distribution.

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KT: Six months after I turn 72 we're not getting any

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KT: younger Suze. Please help.

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Suze: Actually, Paul, let me start by correcting you, now under Secure Act 2.0, the age for required minimum

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Suze: distributions for you is going to be 73 and you

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Suze: do not have to start taking required minimum distributions until when?

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Suze: April first, after the year that you turned 73. So

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Suze: let's say that you turned 73 in January

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Suze: of 2024, you would not have to start taking required

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Suze: minimum distributions until April first of 2025. Would you want

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Suze: to do that? Because again, it's April first, after the

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Suze: year that you turn 73, would you want to ever

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Suze: do that? No, you would not,

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Suze: because if you wait until the year after you have

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Suze: turned 73 in this particular example, not only would you

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Suze: have to take out the required minimum distributions for when

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Suze: you were 73, that year, but you would also have

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Suze: to take it out that next year as well.

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Suze: So in 2025, you would have to take out two

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Suze: required minimum distributions which you would not want to do.

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Suze: So that's number one, just so you understand how it works.

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Suze: Number two, your income is $60,000 a year.

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Suze: But it says including SSI, which means that either you

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Suze: or your spouse has some disability, whether it be mental

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Suze: or physical, that's why you are on social security income.

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Suze: That's what SSI is. So that is why your $60,000

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Suze: a year of annual income is only taxed at $25,000

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Suze: because a lot of it is not taxable, even though

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Suze: your wife and you are both 70.

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Suze: Right. It depends on,

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Suze: does it make sense for you to take out any

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Suze: more money? The truth of the matter is if you

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Suze: don't need it, leave it in there, the longer that

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Suze: it's in there, the more money will accumulate for you,

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Suze: either tax deferred or tax free, especially if it's a raw.

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Suze: So even though you're not getting any younger, if you

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Suze: don't need it, don't take it. Next question, KT!

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KT: Next question. Suze is from Emma. Dear, Suze and KT, I

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KT: love your show very much because KT T akes it

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KT: fun to learn about money.

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Suze: Did they really say that? I told you, I'm telling you, everybody.

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KT: It said because you both make it fun to learn

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KT: about money, but we know who she's really talking about.

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KT: It said...

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Suze: Wait, do you all think KT is more fun than I am?

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KT: Absolutely. Come on, everybody. Come on answer. Honestly, she can take it. All right, ready.

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KT: Let me finish. The question...

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Suze: I already know the answer.  KT is ten times more fun than I am.

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KT: When are annuities a good investment? I'm 45 with an

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KT: old 403 B from a previous employer.

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KT: My current employer does not match. Can I move this

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KT: money into an annuity? She's only 45.. A financial... Ready,

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KT: Suze ready everyone. A financial advisor is encouraging me to

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KT: do so.

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Suze: Pop quizzie.

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KT: There's no good time. Don't do it.

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Suze: Everybody, this is KT's quizzie. Because the reason I want this

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00:16:15,359 --> 00:16:19,409
Suze: to be KT's quizzie is the quizzie I chose for

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00:16:19,419 --> 00:16:22,650
Suze: KT today, not knowing that she had. This question

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00:16:22,900 --> 00:16:26,729
Suze: was from a Cathy Lee that said is in annuity,

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00:16:26,739 --> 00:16:30,909
Suze: a good option at age 63. When you don't trust

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00:16:30,919 --> 00:16:31,809
Suze: the stock market...

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00:16:32,450 --> 00:16:32,479
KT: Can I answer that?

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00:16:38,164 --> 00:16:42,494
Suze: Wait, slow down, slow down. All right. So thequestion for the quizzie then is we have Emma who

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00:16:42,505 --> 00:16:49,875
Suze: is 45. We have Cathy Lee, that is 63 right?

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00:16:50,075 --> 00:16:55,455
Suze: Both of them want to know essentially is an annuity,

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00:16:55,465 --> 00:17:01,094
Suze: a good place to go for your investments. How would

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00:17:01,104 --> 00:17:06,354
Suze: all of you answer that question? Again, Emma in particular

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00:17:06,750 --> 00:17:12,250
Suze: has money in an old 403B from a previous employer.

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00:17:12,339 --> 00:17:16,199
Suze: All right, you also say that your current employer does

248
00:17:16,209 --> 00:17:19,129
Suze: not match, but the truth of the matter is one,

249
00:17:19,140 --> 00:17:22,859
Suze: has nothing to do with the other. So briefly, I

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00:17:22,869 --> 00:17:26,719
Suze: just want to say if your current employer does not

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Suze: match

252
00:17:28,040 --> 00:17:33,319
Suze: and they do not offer a ROTH 401k, you would

253
00:17:33,329 --> 00:17:38,709
Suze: be far better off putting money into a ROTH Ira.

254
00:17:38,719 --> 00:17:42,718
Suze: If you qualify for it, income wise. Or even if

255
00:17:42,729 --> 00:17:47,489
Suze: you make too much money, possibly doing a back door

256
00:17:47,650 --> 00:17:48,349
Suze: ROTH Ira.

257
00:17:48,535 --> 00:17:53,854
Suze: Than putting money into your employer's plan that does not

258
00:17:53,864 --> 00:17:57,234
Suze: match if you make too much money. By the way,

259
00:17:57,464 --> 00:18:02,015
Suze: for a ROTH Ira and your employer does offer a

260
00:18:02,025 --> 00:18:08,775
Suze: ROTH 401k, then you would do your employer's ROTH 401k. Ok.

261
00:18:09,530 --> 00:18:13,459
Suze: So the real question at hand is, should Emma

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00:18:14,219 --> 00:18:17,979
Suze: take the money that's in her old 403B from a

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00:18:17,989 --> 00:18:19,989
Suze: previous employer

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00:18:20,619 --> 00:18:25,920
Suze: and put it into an annuity? And Cathy, at the

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00:18:25,930 --> 00:18:31,109
Suze: age of 63 doesn't trust the stock market. Should she

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00:18:31,119 --> 00:18:36,260
Suze: put money into an annuity? Think about it. Everybody join

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00:18:36,270 --> 00:18:39,849
Suze: those two questions. How would you answer them? Go KT.

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00:18:40,319 --> 00:18:41,170
KT: OK. No.

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00:18:41,369 --> 00:18:45,109
Suze: KT, all right. Your answer is correct. They shouldn't do it.

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00:18:45,189 --> 00:18:48,300
Suze: But why should they not do it?

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00:18:50,239 --> 00:18:53,329
KT: Well, I don't know the answer. No, I don't know the answer. I'm,

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00:18:53,339 --> 00:18:57,500
KT: I'm just using my gut on Cathy Lee. This, this one,

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00:18:57,510 --> 00:19:01,489
KT: she's only 45. Is that a little too early to

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00:19:01,500 --> 00:19:04,650
KT: even buy or consider an annuity, isn't it?

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00:19:04,660 --> 00:19:08,810
Suze: There's lots of variable annuities. However, the money is in

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00:19:08,819 --> 00:19:12,510
Suze: an old 403 B, right? So the truth of the

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00:19:12,520 --> 00:19:17,810
Suze: matter is they shouldn't do it. But you don't know why.

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00:19:17,839 --> 00:19:18,409
Suze: So

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00:19:19,040 --> 00:19:21,989
Suze: ding, ding, ding, ding, ding and (wrong answer noise).

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Suze: All right. Listen to me, everybody. You can't go by

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00:19:27,619 --> 00:19:33,010
Suze: your gut. It is really important that you understand why

282
00:19:33,020 --> 00:19:36,780
Suze: you do something and you understand why you do not

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00:19:36,849 --> 00:19:41,410
Suze: do something. So let me first start with Emma.

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00:19:42,430 --> 00:19:47,989
Suze: Emma, you are only 45 years of age. Your money

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00:19:48,010 --> 00:19:52,520
Suze: happens to be in a 403 B with an ex-employer.

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00:19:52,530 --> 00:19:58,810
Suze: So it's already in a tax deferred vehicle because 403 Bs,

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00:19:58,819 --> 00:20:03,400
Suze: you do not pay taxes on. Why in the world

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00:20:03,410 --> 00:20:07,800
Suze: would you want to take this money and put it

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00:20:07,810 --> 00:20:09,979
Suze: in to an annuity,

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00:20:10,430 --> 00:20:13,729
Suze: that is also tax deferred? It would have to be

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00:20:13,739 --> 00:20:18,109
Suze: in an IRA that you buy the annuity. Why would

292
00:20:18,119 --> 00:20:22,109
Suze: you want to do that when you're getting a tax

293
00:20:22,119 --> 00:20:28,229
Suze: deferred investment within a tax deferred account? Oh, I know

294
00:20:28,239 --> 00:20:32,159
Suze: why your financial advisor is encouraging you to do so

295
00:20:32,359 --> 00:20:38,979
Suze: because normally with an annuity, there is a 5 to 7% commission.

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00:20:39,569 --> 00:20:44,729
Suze: If you have $200,000 in an old 403B, you do

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00:20:44,739 --> 00:20:47,599
Suze: a transfer of that money or a rollover of that

298
00:20:47,609 --> 00:20:52,050
Suze: money to an IRA rollover and you put it into

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00:20:52,060 --> 00:20:53,290
Suze: an annuity.

300
00:20:53,900 --> 00:20:59,050
Suze: Your financial advisor probably would be making about $14,000 in

301
00:20:59,060 --> 00:21:02,669
Suze: commissions to do so. Fabulous reason.

302
00:21:03,609 --> 00:21:06,969
Suze: In annuity is not something that you should be doing

303
00:21:06,979 --> 00:21:10,919
Suze: at the age of 45. Do you hear me? You

304
00:21:10,930 --> 00:21:14,688
Suze: should be taking this money doing an IRA rollover with

305
00:21:14,699 --> 00:21:20,640
Suze: it dollar cost averaging into index funds or exchange traded

306
00:21:20,650 --> 00:21:24,329
Suze: funds or whatever it may be, especially given that you

307
00:21:24,339 --> 00:21:27,160
Suze: have at least 20 years till you need this money.

308
00:21:27,430 --> 00:21:31,400
Suze: The markets most likely will continue down here for a while,

309
00:21:31,410 --> 00:21:35,560
Suze: even though I know they go up in everything overall.

310
00:21:35,569 --> 00:21:39,479
Suze: At this moment, we are in a bear market. So

311
00:21:39,489 --> 00:21:42,359
Suze: there will be times that if you simply dollar cost

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00:21:42,369 --> 00:21:45,719
Suze: average and these markets go down and you are putting

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00:21:45,729 --> 00:21:50,420
Suze: this money every single month into some great investment,

314
00:21:51,400 --> 00:21:54,609
Suze: an exchange traded fund and invest in the index, the

315
00:21:54,619 --> 00:21:59,060
Suze: Schwab dividend equity fund that I like for dividends or

316
00:21:59,069 --> 00:22:04,030
Suze: whatever it may be, you will be far better off.

317
00:22:04,040 --> 00:22:08,599
Suze: So that's what you should be doing. Do not listen

318
00:22:08,640 --> 00:22:15,109
Suze: to this financial advisor. Do you hear me? And Cathy Lee? Obviously,

319
00:22:15,119 --> 00:22:18,790
Suze: we're talking about money outside of an annuity.

320
00:22:19,109 --> 00:22:23,379
Suze: When you buy an annuity, it is a contract with

321
00:22:23,390 --> 00:22:28,920
Suze: an insurance company and for that contract, right? You do

322
00:22:28,930 --> 00:22:33,339
Suze: not pay taxes on that money while it is invested,

323
00:22:33,349 --> 00:22:35,899
Suze: it is tax deferred.

324
00:22:36,410 --> 00:22:41,439
Suze: However, you cannot get at that money usually for five

325
00:22:41,449 --> 00:22:45,890
Suze: or seven years without paying a surrender fee. That is

326
00:22:45,900 --> 00:22:51,199
Suze: how the financial advisor makes the commission to sell you that. Love,

327
00:22:51,209 --> 00:22:54,500
Suze: you would be far better off taking this money and

328
00:22:54,510 --> 00:22:59,179
Suze: buying a one year certificate of deposit depending on the

329
00:22:59,189 --> 00:23:00,400
Suze: state that you live in,

330
00:23:01,010 --> 00:23:04,989
Suze: at Alliant Credit Union. And you would do so because

331
00:23:05,000 --> 00:23:07,489
Suze: why you could get 5% for one year.

332
00:23:07,969 --> 00:23:11,359
Suze: You could take this money and buy if you want

333
00:23:11,369 --> 00:23:16,410
Suze: to right, a dividend portfolio like the Schwab equity dividend

334
00:23:16,420 --> 00:23:20,699
Suze: portfolio that I'm telling all of you about S C

335
00:23:20,750 --> 00:23:24,920
Suze: H D is the symbol currently paying 3.5%. There are

336
00:23:24,930 --> 00:23:28,250
Suze: better things for you to do. You are not to

337
00:23:28,260 --> 00:23:32,280
Suze: buy an annuity at this point in time. If you

338
00:23:32,290 --> 00:23:34,239
Suze: ask me. All right, KT!

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00:23:36,219 --> 00:23:42,790
KT: Next question from Janice, Dear Suze. I have term life insurance.

340
00:23:42,800 --> 00:23:47,599
KT: It will expire in 12 years. I will be 82.

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00:23:47,839 --> 00:23:52,469
Suze: I want to convert to a universal Life insurance to

342
00:23:52,479 --> 00:23:57,849
Suze: provide insurance after the age of 82. What do you recommend?

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00:23:57,859 --> 00:24:05,439
Suze: Why do you want to provide insurance to age of 82? No, no, no.

344
00:24:05,800 --> 00:24:08,689
Suze: You know you're great that you have at least term

345
00:24:08,699 --> 00:24:10,849
Suze: insurance till 82

346
00:24:11,270 --> 00:24:13,780
Suze: right? But if you look at the premiums that you

347
00:24:13,790 --> 00:24:16,899
Suze: are going to have to pay and a universal policy,

348
00:24:16,910 --> 00:24:18,619
Suze: you are not to do it, you are not to

349
00:24:18,630 --> 00:24:21,169
Suze: do it. You are not to do it. Why do

350
00:24:21,180 --> 00:24:26,030
Suze: you want to provide insurance? Who needs insurance that is

351
00:24:26,040 --> 00:24:31,530
Suze: dependent upon you? No overall chances are I don't think

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00:24:31,540 --> 00:24:33,219
Suze: you should do this. All right. Go on.

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00:24:36,530 --> 00:24:40,489
KT: Next question is.. Hello Suze and KT. I hope all is well. I've been following since 2020 and

354
00:24:40,500 --> 00:24:44,859
KT: even bought Suze's most recent book to assist my family.

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00:24:45,030 --> 00:24:47,760
KT: Now I picked this question, Suze, because this is,

356
00:24:48,030 --> 00:24:52,119
KT: this comes up all the time and everyone pretty much

357
00:24:52,170 --> 00:24:55,349
KT: our age and even younger has these issues with.

358
00:24:55,510 --> 00:24:58,329
Suze: But I do just want to answer. Obviously, she's been

359
00:24:58,339 --> 00:25:02,380
Suze: following since 2020 and she's asking that she hopes all is well.

360
00:25:03,170 --> 00:25:05,739
Suze: I think she's referring to me and my health. I'll

361
00:25:05,750 --> 00:25:07,209
Suze: let KT answer that.

362
00:25:07,390 --> 00:25:10,579
KT: It's not well, it's great! She's doing great,

363
00:25:10,670 --> 00:25:13,619
KT: great, great, great, great and, and every day better and

364
00:25:13,630 --> 00:25:17,389
KT: better and she's doing stretch yoga at night, which is

365
00:25:17,400 --> 00:25:20,530
KT: making a huge difference. A great thing that we did.

366
00:25:20,969 --> 00:25:24,599
Suze: Every night before we go to bed. I signed up for this

367
00:25:24,609 --> 00:25:27,760
Suze: little class that was online and the two of us

368
00:25:27,770 --> 00:25:31,438
Suze: do it together and it is my regimen. And the

369
00:25:31,449 --> 00:25:33,219
Suze: other night, KT said to me,

370
00:25:33,550 --> 00:25:36,439
Suze: oh, I'm so tired. Can't we do it in the morning?

371
00:25:36,449 --> 00:25:39,030
Suze: I said no, it won't be a regimen if I

372
00:25:39,040 --> 00:25:42,000
Suze: don't do it tonight, it's not a regimen. Anyway, go on.

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00:25:42,010 --> 00:25:44,729
KT: All right. So she said I'm writing as I need

374
00:25:44,739 --> 00:25:48,760
KT: further guidance regarding changing the title and the name of

375
00:25:48,770 --> 00:25:52,889
KT: my parents' home to the name of the trust. They

376
00:25:52,900 --> 00:25:53,660
KT: have their must

377
00:25:53,760 --> 00:25:57,949
KT: have documents. Suze, I just need your assistance to get

378
00:25:57,959 --> 00:26:02,920
KT: my parents situated. My dad has terminal illness and I

379
00:26:02,930 --> 00:26:06,760
KT: want to make sure they are all set regarding finances.

380
00:26:06,770 --> 00:26:11,329
Suze: So the quick answer to this question is to change

381
00:26:11,339 --> 00:26:13,890
Suze: the title from your father's name

382
00:26:14,359 --> 00:26:17,979
Suze: into, let's say the title of the trust. All you

383
00:26:17,989 --> 00:26:21,589
Suze: have to do is go to a title company and

384
00:26:21,599 --> 00:26:25,958
Suze: have them change the deed. Now, you need to find

385
00:26:25,969 --> 00:26:30,089
Suze: a title company that wants to do this or possibly

386
00:26:30,099 --> 00:26:34,290
Suze: even a lawyer that specializes in doing it for you.

387
00:26:34,300 --> 00:26:36,310
Suze: Just that simple.

388
00:26:36,579 --> 00:26:39,260
Suze: And as soon as you do that, it might cost

389
00:26:39,270 --> 00:26:43,329
Suze: you anywhere from $3-$500 to do so, but it is

390
00:26:43,339 --> 00:26:45,869
Suze: worth it as soon as you do so, and the

391
00:26:45,880 --> 00:26:49,790
Suze: title is transferred into the trust you are set.

392
00:26:49,800 --> 00:26:52,329
KT: So this is our last question. It's from Nancy.

393
00:26:52,729 --> 00:26:57,890
KT: Hi, ladies, quick question regarding IRA withdrawals. When do I

394
00:26:57,900 --> 00:27:02,699
KT: start to make withdrawals from my IRA? Are you only

395
00:27:02,709 --> 00:27:07,920
KT: allowed one per year or can you make installments of

396
00:27:07,930 --> 00:27:13,760
KT: withdrawals monthly? Also, if you are not at the RMD age,

397
00:27:13,800 --> 00:27:17,180
KT: if you take a withdrawal this year, have you opened

398
00:27:17,189 --> 00:27:19,718
KT: a Pandora's Box? And then

399
00:27:20,119 --> 00:27:25,188
KT: am I required to take disbursements yearly? Thanks for sharing

400
00:27:25,199 --> 00:27:26,619
KT: your expertise.

401
00:27:26,829 --> 00:27:31,229
Suze: Actually, Nancy. What a fabulous question. First of all, you

402
00:27:31,239 --> 00:27:35,410
Suze: need to know you can take withdrawals from your IRA

403
00:27:35,650 --> 00:27:39,429
Suze: any time after the age of 59 and a half, any

404
00:27:39,439 --> 00:27:42,829
Suze: time your little heart desires. Why the age of 59

405
00:27:42,989 --> 00:27:47,540
Suze: and a half? Because for a pretax IRA or 401k or

406
00:27:47,550 --> 00:27:48,688
Suze: any retirement account,

407
00:27:49,074 --> 00:27:52,604
Suze: if you take money out before 59 and a half, there

408
00:27:52,614 --> 00:27:58,265
Suze: is a 10% penalty on it. Plus you're gonna pay taxes.

409
00:27:58,275 --> 00:28:01,563
Suze: So after the age of 59 and a half, you just

410
00:28:01,574 --> 00:28:06,074
Suze: pay taxes, which is why I love ROTH Iras because

411
00:28:06,084 --> 00:28:10,084
Suze: there's no taxes and no RMDs. But that's besides the point.

412
00:28:10,094 --> 00:28:10,625
Suze: All right.

413
00:28:10,849 --> 00:28:15,880
Suze: So you can take out withdrawals anytime you want. You

414
00:28:15,890 --> 00:28:18,738
Suze: could take it out once a month, once a week,

415
00:28:18,750 --> 00:28:21,500
Suze: you could drive your financial firm crazy and take it

416
00:28:21,510 --> 00:28:27,159
Suze: out every day. It does not matter. Also, if you

417
00:28:27,170 --> 00:28:28,879
Suze: are not at the RMD

418
00:28:28,969 --> 00:28:34,729
Suze: age, it has nothing to do with opening a Pandora's box.

419
00:28:34,739 --> 00:28:39,790
Suze: The RMDs will be figured at how much money you

420
00:28:39,800 --> 00:28:44,520
Suze: actually have within your IRA at the time that RMDs

421
00:28:45,030 --> 00:28:49,069
Suze: are required to start and then they will tell you

422
00:28:49,079 --> 00:28:52,540
Suze: how much you need to take out. So one has

423
00:28:52,550 --> 00:28:54,989
Suze: nothing to do with the other. So if you want

424
00:28:55,000 --> 00:28:57,880
Suze: to start taking it out right now, girlfriend,

425
00:28:58,079 --> 00:29:04,530
Suze: go for it. All right. KT, in just another day, guess what?

426
00:29:06,839 --> 00:29:09,900
KT: Everyone will be here. She can have a nice weekend.

427
00:29:09,920 --> 00:29:13,520
KT: So she's always so happy. I love when we have visitors.

428
00:29:13,530 --> 00:29:16,069
KT: I love when we have guests and visitors.

429
00:29:16,530 --> 00:29:19,439
KT: It just, it just adds a lot of color to

430
00:29:19,449 --> 00:29:20,380
KT: our life.

431
00:29:20,390 --> 00:29:23,589
Suze: And I'm learning right. I'm getting better.

432
00:29:23,599 --> 00:29:26,829
KT: Suze's great. She, in the beginning it was a little

433
00:29:26,839 --> 00:29:31,069
KT: challenging everybody but she loves, she looks forward to it.

434
00:29:31,079 --> 00:29:33,510
KT: Matter of fact, you said to me, oh, let's invite

435
00:29:33,520 --> 00:29:35,869
KT: this group of friends. Let's invite that friend.

436
00:29:36,239 --> 00:29:40,819
Suze: And we are so I am doing better. KT

437
00:29:41,770 --> 00:29:45,010
Suze: how do we end this podcast? What do we want

438
00:29:45,020 --> 00:29:50,109
Suze: everybody to say every single day? Go for it, KT!

439
00:29:50,369 --> 00:29:55,430
KT: O K. Today, Suze, wherever we go, we will create

440
00:29:55,439 --> 00:29:59,540
KT: a more peaceful, joyful and loving world.

441
00:29:59,569 --> 00:30:02,020
Suze: And if they do that KT what happens?

442
00:30:02,209 --> 00:30:04,229
KT: They are unstoppable.

443
00:30:04,239 --> 00:30:07,390
Suze: All right, everybody see you Sunday. Have a great weekend.

444
00:30:07,400 --> 00:30:08,270
Suze: Bye bye.

445
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Music: MUSIC.