1
00:00:46,668 --> 00:00:51,668
Suze: April 18th, 2024. Welcome everybody to the Women and Money podcast.

2
00:00:51,680 --> 00:00:53,459
KT: And everyone's smart enough to listen.

3
00:00:53,470 --> 00:00:57,990
Suze: This is the Ask KT and Suze Anything edition. Want to

4
00:00:58,000 --> 00:01:02,819
Suze: ask a question, just go to ask Suze Suze podcast

5
00:01:03,189 --> 00:01:03,319
Suze: at Gmail

6
00:01:03,750 --> 00:01:07,349
Suze: dot com. Send in your question if KT chooses it,

7
00:01:07,360 --> 00:01:10,040
Suze: it will be on the podcast. But I just have

8
00:01:10,050 --> 00:01:15,389
Suze: to say something. Thousands of questions have come in thousands

9
00:01:15,400 --> 00:01:21,089
Suze: and thousands and thousands. So just be patient. If you

10
00:01:21,099 --> 00:01:22,399
Suze: want to send in your question again.

11
00:01:22,660 --> 00:01:24,599
Suze: I don't know. I'm just telling you.

12
00:01:25,010 --> 00:01:29,319
KT: She's overwhelmed today. She's overwhelmed because there's so much she

13
00:01:29,330 --> 00:01:32,518
KT: loves to answer all of you, whether it's on the

14
00:01:32,529 --> 00:01:35,879
KT: podcast or an email or any way she can. And

15
00:01:35,889 --> 00:01:38,319
KT: she is overwhelmed today.

16
00:01:38,330 --> 00:01:39,559
Suze: Because I want to answer,

17
00:01:39,830 --> 00:01:42,239
KT: Calm down. I'll help you.

18
00:01:42,250 --> 00:01:42,550
Suze: You can't...

19
00:01:42,559 --> 00:01:44,180
KT: Just don't give me a Roth question.

20
00:01:44,620 --> 00:01:47,410
Suze: But you know what I was thinking, wouldn't it be

21
00:01:47,419 --> 00:01:51,410
Suze: great if there was an artificial intelligence, Suze that could

22
00:01:51,419 --> 00:01:58,010
Suze: answer every one of those questions. You never know. All right,

23
00:01:58,019 --> 00:02:02,169
Suze: before we begin, want to tell everybody about our anniversary?

24
00:02:02,470 --> 00:02:05,879
KT: We had the best anniversary this week. It was real.

25
00:02:06,339 --> 00:02:08,970
KT: We're celebrating. We're still,

26
00:02:08,979 --> 00:02:10,000
Suze: She made me cry.

27
00:02:10,220 --> 00:02:11,329
KT: I did make her cry.

28
00:02:11,339 --> 00:02:12,330
Suze: Tell them why.

29
00:02:14,710 --> 00:02:20,410
KT: Really? So for our anniversary, I made Suze a delicious dinner,

30
00:02:20,619 --> 00:02:21,728
KT: early dinner.

31
00:02:22,080 --> 00:02:24,899
KT: And when it was time for dessert, she usually always

32
00:02:24,910 --> 00:02:29,610
KT: gets a little caramel. But this time I did something special.

33
00:02:29,869 --> 00:02:35,059
KT: I actually brought a beautiful plate with a gold candle.

34
00:02:35,070 --> 00:02:41,168
KT: And on it were three Kilwins dark chocolate covered

35
00:02:41,699 --> 00:02:47,169
KT: toffees, right? She loves them so much that I had

36
00:02:47,179 --> 00:02:50,720
KT: to actually buy them in Florida. Hide it, bring it

37
00:02:50,729 --> 00:02:53,759
KT: over and every time she would look at me, I

38
00:02:53,770 --> 00:02:56,559
KT: for dessert, I wanted to give her one, but I

39
00:02:56,570 --> 00:02:59,960
KT: actually hid them and she started crying when I brought

40
00:02:59,970 --> 00:03:00,538
KT: that out.

41
00:03:00,550 --> 00:03:03,198
Suze: I love those so much. I can't tell you, but

42
00:03:03,210 --> 00:03:06,799
Suze: I really started crying because of KT's thoughtfulness.

43
00:03:07,008 --> 00:03:07,899
KT: And my card.

44
00:03:07,910 --> 00:03:09,679
Suze: And, and what did I give you?

45
00:03:10,160 --> 00:03:14,220
KT: She gave me a um a, a voice card instead of,

46
00:03:14,229 --> 00:03:17,059
KT: she said, you know, all these years, I've always written

47
00:03:17,070 --> 00:03:22,529
KT: you anniversary and birthday letter Christmas holiday. She writes me

48
00:03:22,538 --> 00:03:26,399
KT: beautiful letters one day, I'll publish them and make a fortune.

49
00:03:26,410 --> 00:03:31,660
KT: But she writes beautiful, beautiful, beautiful letters, love letters. So

50
00:03:31,669 --> 00:03:35,740
KT: this year she decided to give me a voice card

51
00:03:36,360 --> 00:03:40,029
KT: and it was fabulous. And I said, please transcribe it

52
00:03:40,190 --> 00:03:42,720
KT: so I can read it because what if I lose it?

53
00:03:42,729 --> 00:03:46,259
Suze: You won't lose it. But I think it's important that

54
00:03:46,559 --> 00:03:48,960
Suze: I know my voice is on the air and KT

55
00:03:48,970 --> 00:03:51,979
Suze: can always watch old TV shows and everything of me.

56
00:03:51,990 --> 00:03:53,759
KT: No, this was for me. Right.

57
00:03:53,809 --> 00:03:55,820
Suze: But this was for KT

58
00:03:56,490 --> 00:04:00,270
Suze: in a voice that I probably wouldn't use on the air.

59
00:04:00,440 --> 00:04:02,889
Suze: So that's what we did. We had a great time.

60
00:04:02,899 --> 00:04:04,869
Suze: All right, KT what have you got?

61
00:04:04,919 --> 00:04:08,250
KT: Suze. My first email is not a question. It's actually

62
00:04:08,259 --> 00:04:13,029
KT: a thank you ready. Always ready, dear Suze. I found

63
00:04:13,039 --> 00:04:16,239
KT: myself at home alone this evening, which is a pretty

64
00:04:16,250 --> 00:04:19,458
KT: rare occurrence. My husband had gone to pick up our

65
00:04:19,470 --> 00:04:21,649
KT: son from work and I thought it would be a

66
00:04:21,660 --> 00:04:24,269
KT: good opportunity to enjoy some TV.

67
00:04:24,549 --> 00:04:27,920
KT: So I went to FreeVee and put on the Suzie

68
00:04:27,928 --> 00:04:32,250
KT: Orman Show. So for those of you that don't know,

69
00:04:32,260 --> 00:04:35,308
KT: we have all the episodes from the Suze Orman show

70
00:04:35,320 --> 00:04:41,479
KT: on CNBC available on FreeVee TV for free. So just

71
00:04:41,488 --> 00:04:44,329
KT: go to FreeVee and you can watch all kinds of

72
00:04:44,339 --> 00:04:46,170
KT: great Suze Orman.

73
00:04:46,440 --> 00:04:49,899
KT: So in the beginning of that first episode, this is

74
00:04:49,910 --> 00:04:54,459
KT: from Lisa. She said, Suze, you started talking about material

75
00:04:54,470 --> 00:04:56,289
KT: and financial clutter

76
00:04:57,070 --> 00:04:59,950
KT: and she said I had a large pile of documents

77
00:04:59,959 --> 00:05:03,980
KT: that I had accumulated, which needed to be shredded. I

78
00:05:03,988 --> 00:05:07,669
KT: actually like shredding as a receptionist for a law firm.

79
00:05:07,678 --> 00:05:11,299
KT: It's something I do daily. I find it soothing. But

80
00:05:11,309 --> 00:05:14,250
KT: for some reason I had let the pile at my

81
00:05:14,260 --> 00:05:16,500
KT: home grow for months.

82
00:05:17,000 --> 00:05:22,779
KT: I paused the show and immediately shredded everything in that pile.

83
00:05:22,790 --> 00:05:26,299
KT: By the time my husband and son got home and settled,

84
00:05:26,428 --> 00:05:30,339
KT: I was finished and we sat down and continued watching

85
00:05:30,350 --> 00:05:35,029
KT: together as I'm heading to bed. Now, I feel so

86
00:05:35,040 --> 00:05:36,440
KT: much lighter.

87
00:05:36,809 --> 00:05:40,558
KT: I did not realize how much that pile was weighing

88
00:05:40,570 --> 00:05:44,428
KT: on me. Thank you, Suze. You inspire me to be

89
00:05:44,440 --> 00:05:48,329
KT: better in so many ways. Sincerely, Lisa.

90
00:05:48,359 --> 00:05:49,119
Suze: I love that.

91
00:05:49,250 --> 00:05:52,410
KT: Isn't that great? It really does feel good when you

92
00:05:52,420 --> 00:05:54,339
KT: get rid of clutter, doesn't it?

93
00:05:55,065 --> 00:05:55,914
Suze: What do I do all  the time?

94
00:05:55,924 --> 00:05:59,595
KT: Oh, she throws things away my things away every day.

95
00:05:59,605 --> 00:06:00,625
KT: All right. Next question.

96
00:06:00,684 --> 00:06:03,724
Suze: I just want to say something, KT for those of

97
00:06:03,734 --> 00:06:08,183
Suze: you who haven't gone to FreeVee yet. Haven't watched the

98
00:06:08,195 --> 00:06:11,375
Suze: Suze Orman shows. It's funny to see my outfits, glasses,

99
00:06:11,385 --> 00:06:12,974
Suze: all the things, haircuts.

100
00:06:13,640 --> 00:06:18,079
Suze: The contract with Amazon is going to be up shortly

101
00:06:18,290 --> 00:06:20,738
Suze: and who knows if we'll renew or what will happen

102
00:06:20,750 --> 00:06:24,849
Suze: with that. So, don't miss it. Go now and look

103
00:06:24,859 --> 00:06:29,618
Suze: at the episodes. They're actually fabulous. Many of them timeless

104
00:06:30,119 --> 00:06:33,320
Suze: and always entertaining. All right, KT.

105
00:06:33,329 --> 00:06:36,099
KT: So this next one is from Gracie, Suze and I

106
00:06:36,109 --> 00:06:39,459
KT: think Gracie needs maybe a little Suze slap down. All right,

107
00:06:39,470 --> 00:06:40,178
KT: here we go.

108
00:06:40,730 --> 00:06:43,630
KT: Hi, Suze and KT. I hate to admit that I've

109
00:06:43,640 --> 00:06:48,029
KT: given up a bit dramatic. I know I've always heard

110
00:06:48,040 --> 00:06:51,630
KT: that people my age will never be able to afford

111
00:06:51,640 --> 00:06:56,390
KT: a home. You ready for this? Everyone. Gracie's 34 years old.

112
00:06:56,470 --> 00:06:59,559
KT: She said over the past 12 months, I'm starting to

113
00:06:59,570 --> 00:07:00,350
KT: believe it.

114
00:07:00,809 --> 00:07:03,950
KT: I earn a decent salary from my area. She makes

115
00:07:03,959 --> 00:07:09,600
KT: $87,000 a year. I own my car. Have a fully

116
00:07:09,609 --> 00:07:15,049
KT: funded emergency fund. I'm self diagnosed, allergic to debt, so

117
00:07:15,059 --> 00:07:15,989
KT: I have none.

118
00:07:16,679 --> 00:07:20,260
KT: Wait. She said the average home price in my area

119
00:07:20,269 --> 00:07:25,980
KT: is around 450,000. It just seems impossible. I feel bad

120
00:07:25,989 --> 00:07:29,279
KT: for complaining because I'm in a good spot in my life.

121
00:07:29,290 --> 00:07:33,640
KT: I want to eventually get married. Have a family. But overall,

122
00:07:33,649 --> 00:07:35,820
KT: I wanna have something of my own

123
00:07:36,209 --> 00:07:39,019
KT: outside of earning more money. I do not see any

124
00:07:39,029 --> 00:07:42,459
KT: light at the end of the tunnel. Any advice would

125
00:07:42,470 --> 00:07:47,078
KT: be appreciated, Suze, what are you gonna tell Gracie?

126
00:07:47,089 --> 00:07:50,220
Suze: Gracie? I think you should take your name more seriously.

127
00:07:50,250 --> 00:07:50,640
KT: Oh...

128
00:07:51,489 --> 00:07:54,890
Suze: I have a thing about names. I always look at

129
00:07:54,899 --> 00:07:59,970
Suze: somebody's name when I answer a question and your name

130
00:07:59,980 --> 00:08:00,769
Suze: is Gracie.

131
00:08:02,070 --> 00:08:02,850
Suze: Grace.

132
00:08:03,649 --> 00:08:06,480
Suze: You have to look at what you have, not at

133
00:08:06,489 --> 00:08:09,070
Suze: what you wish you could have.

134
00:08:09,760 --> 00:08:15,630
Suze: So, Gracie, 34 years of age, look at everything you

135
00:08:15,640 --> 00:08:18,670
Suze: do have. First of all, you're lucky enough to have

136
00:08:18,679 --> 00:08:23,119
Suze: a career to be making 87,000 to be allergic to debt,

137
00:08:23,130 --> 00:08:26,519
Suze: to not have any debt. Therefore, there are so many

138
00:08:26,529 --> 00:08:32,599
Suze: things that you have, stop feeling sorry for yourself thinking

139
00:08:32,609 --> 00:08:35,770
Suze: that it is impossible.

140
00:08:36,309 --> 00:08:41,369
Suze: Nothing is impossible in life. Maybe just not right now,

141
00:08:41,380 --> 00:08:46,890
Suze: but one day, absolutely. It's possible. How is it possible?

142
00:08:46,900 --> 00:08:52,299
Suze: Keep saving money, save, save, save, save, spend less, less, less, less.

143
00:08:52,309 --> 00:08:56,409
Suze: Eventually you'll have more money to put down.

144
00:08:56,919 --> 00:09:00,500
Suze: If you have more money to put down on a home,

145
00:09:00,590 --> 00:09:05,219
Suze: not just $90,000 if the house is 450,000. So that's

146
00:09:05,229 --> 00:09:10,289
Suze: a 20% down payment, but 200,000 to put down 300,000

147
00:09:10,299 --> 00:09:14,219
Suze: to put down, then you probably will be able to

148
00:09:14,229 --> 00:09:18,650
Suze: afford the monthly payments. If you continue to think you can't,

149
00:09:18,789 --> 00:09:23,679
Suze: you never ever will. Gracie, your thoughts are more powerful

150
00:09:23,690 --> 00:09:26,340
Suze: than you have any idea. Your words.

151
00:09:26,849 --> 00:09:32,489
Suze: How you feel is what creates your future. Stop thinking

152
00:09:32,500 --> 00:09:37,189
Suze: this saying this and feeling it change your ways and

153
00:09:37,200 --> 00:09:40,869
Suze: I promise you one day you will write me in saying,

154
00:09:40,880 --> 00:09:42,150
Suze: guess what Suze?

155
00:09:42,760 --> 00:09:48,260
Suze: Grace was bestowed upon me and I bought my first house. Now,

156
00:09:48,270 --> 00:09:51,039
Suze: the other thing that's funny, KT, eventually, Gracie says she

157
00:09:51,049 --> 00:09:53,750
Suze: wants to get married, she wants to have kids, maybe

158
00:09:53,760 --> 00:09:57,099
Suze: together with her spouse, she'll be able to do that.

159
00:09:57,690 --> 00:09:59,890
Suze: And what she always has to remember is she wants

160
00:09:59,900 --> 00:10:03,380
Suze: to own something of her own. She owns her money,

161
00:10:03,390 --> 00:10:07,250
Suze: she owns her retirement account, she owns all of those things,

162
00:10:08,030 --> 00:10:11,650
Suze: those are assets. So it's not just a house, that's

163
00:10:11,659 --> 00:10:12,890
Suze: an asset. All right. Go on.

164
00:10:12,900 --> 00:10:17,000
KT: Ok. Next question from Kelly. Hi, Suze. I have a

165
00:10:17,010 --> 00:10:22,539
KT: question about life insurance. We have a 500,000 whole life

166
00:10:22,549 --> 00:10:23,489
KT: policy

167
00:10:23,780 --> 00:10:27,349
KT: and I'm wondering, should I put this in our trust?

168
00:10:27,409 --> 00:10:31,109
KT: Will the beneficiaries have to pay tax on this amount?

169
00:10:31,309 --> 00:10:34,960
KT: And if we change the beneficiary to the owner of

170
00:10:34,969 --> 00:10:39,348
KT: the policy, will that work for tax purposes? So, Kelly

171
00:10:39,359 --> 00:10:40,659
KT: lives in Florida.

172
00:10:40,909 --> 00:10:44,900
Suze: Kelly, what you have to understand, it depends when you die, obviously.

173
00:10:44,989 --> 00:10:51,710
Suze: But currently the estate tax limit is approximately $13 million

174
00:10:51,719 --> 00:10:52,520
Suze: a person.

175
00:10:53,250 --> 00:10:56,609
Suze: So yes, whoever is the owner of this policy, if

176
00:10:56,619 --> 00:11:01,689
Suze: they were to die, that $500,000 will be included in

177
00:11:01,700 --> 00:11:06,390
Suze: their estate. If you, for instance, are the primary beneficiary

178
00:11:06,400 --> 00:11:09,539
Suze: of that policy, it all goes to you

179
00:11:09,960 --> 00:11:14,150
Suze: and because you're the spouse, there is no estate taxes.

180
00:11:14,489 --> 00:11:17,289
Suze: If let's say you and your spouse were killed in

181
00:11:17,299 --> 00:11:22,340
Suze: a car crash together again, you each can leave 13

182
00:11:22,349 --> 00:11:25,260
Suze: million right now right around there to your beneficiaries.

183
00:11:26,469 --> 00:11:30,770
Suze: So I doubt highly highly that you have to worry

184
00:11:30,780 --> 00:11:35,979
Suze: about this. So no, you shouldn't put it in your trust.

185
00:11:35,989 --> 00:11:41,929
Suze: Just leave a named beneficiary. So it will go directly to them. However,

186
00:11:41,940 --> 00:11:44,939
Suze: let's just say you were in a situation where you

187
00:11:44,950 --> 00:11:49,549
Suze: had 30 or $40 million to your name, then the

188
00:11:49,559 --> 00:11:53,049
Suze: $500,000 whole life policy on death would be added to

189
00:11:53,059 --> 00:11:54,010
Suze: the estate

190
00:11:54,270 --> 00:11:56,929
Suze: and yes estate taxes would be in it

191
00:11:57,679 --> 00:12:00,599
Suze: to get around that you would create what's called a

192
00:12:00,609 --> 00:12:06,150
Suze: life insurance trust where the trust owns the insurance policy

193
00:12:06,159 --> 00:12:10,219
Suze: upon death, it's out of your estate. But just somehow

194
00:12:10,229 --> 00:12:16,659
Suze: I don't think you're in that situation. Remember, in 2026 everybody,

195
00:12:16,840 --> 00:12:21,530
Suze: estate taxes are deemed to go back down again, maybe

196
00:12:21,539 --> 00:12:24,989
Suze: to $5 million or whatever they may be. The, the

197
00:12:25,000 --> 00:12:26,059
Suze: value of an estate

198
00:12:26,489 --> 00:12:31,569
Suze: and income tax brackets are scheduled to go back up.

199
00:12:31,580 --> 00:12:32,189
Suze: All right.

200
00:12:32,479 --> 00:12:36,390
KT: All right. Next question. This is from a Susan. I

201
00:12:36,400 --> 00:12:43,479
KT: have about $53,000 in a regular IRA, about 75,000 in

202
00:12:43,489 --> 00:12:48,348
KT: my 403 B I will have about 24,000 for an

203
00:12:48,359 --> 00:12:53,789
KT: emergency fund. I'm 69. I'll be 70 in December.

204
00:12:54,169 --> 00:12:57,449
KT: I've worked as a private registered nurse for the last

205
00:12:57,460 --> 00:13:02,530
KT: two years, full time before that I owe 50,000 on

206
00:13:02,539 --> 00:13:07,130
KT: my home and I'm retiring this April. She's retiring now.

207
00:13:07,549 --> 00:13:14,789
KT: I will clear $1760 monthly on social security. I need

208
00:13:14,799 --> 00:13:22,309
KT: approximately the same amount $1760 for bills and basic needs.

209
00:13:22,659 --> 00:13:27,559
KT: My house payment is about $700 monthly which is included

210
00:13:27,580 --> 00:13:31,959
KT: in this total bill. So her, her question is this, Suze,

211
00:13:31,969 --> 00:13:36,809
KT: should I pay off my house or transfer money into

212
00:13:36,820 --> 00:13:42,460
KT: an annuity or a Roth? So, Susan has a multiple

213
00:13:42,469 --> 00:13:46,400
KT: question here, I guess on how to preserve money for

214
00:13:46,409 --> 00:13:47,460
KT: her retirement.

215
00:13:48,900 --> 00:13:52,400
Suze: Boy, Susan, here is what I would say to you

216
00:13:53,549 --> 00:13:58,849
Suze: if you had listened to me a long, long, long

217
00:13:58,859 --> 00:14:04,090
Suze: time ago, starting actually in 1998 when I did a

218
00:14:04,099 --> 00:14:08,209
Suze: PBS special called The Nine Steps To Financial Freedom. And

219
00:14:08,219 --> 00:14:13,840
Suze: I blew the whole world away America actually by talking

220
00:14:13,849 --> 00:14:16,479
Suze: about a Roth IRA and how they work and how

221
00:14:16,489 --> 00:14:18,799
Suze: it is the best thing out there

222
00:14:19,469 --> 00:14:24,409
Suze: if you had listened at any time since then, and

223
00:14:24,419 --> 00:14:28,559
Suze: you had been investing in a Roth IRA in a

224
00:14:28,570 --> 00:14:33,809
Suze: Roth 403 B and now you're retiring, you could take

225
00:14:33,820 --> 00:14:38,289
Suze: out $50,000 from that account. Either one of them

226
00:14:38,609 --> 00:14:43,130
Suze: absolutely tax free and you could pay off the mortgage

227
00:14:43,140 --> 00:14:47,780
Suze: on your home, saving you $700 a month, which would

228
00:14:47,789 --> 00:14:50,549
Suze: then make things better for you.

229
00:14:51,200 --> 00:14:56,109
Suze: However, we are short money here because for you to

230
00:14:56,119 --> 00:15:01,710
Suze: pay off the home of $50,000 you're gonna wipe out

231
00:15:01,719 --> 00:15:05,719
Suze: either your 403 B and there isn't even enough money

232
00:15:05,729 --> 00:15:10,580
Suze: in your regular IRA because remember you take out $50,000

233
00:15:10,590 --> 00:15:15,619
Suze: it's totally taxable to you as ordinary income. So you

234
00:15:15,630 --> 00:15:18,890
Suze: absolutely would not want to do it this year

235
00:15:19,440 --> 00:15:25,169
Suze: because you still have income from being a private registered nurse.

236
00:15:25,469 --> 00:15:28,260
Suze: So if you're gonna do something like that, you wait

237
00:15:28,270 --> 00:15:32,830
Suze: until next year when you hardly have any income at all.

238
00:15:33,250 --> 00:15:36,880
Suze: And then if you withdrew that money, it would not

239
00:15:36,890 --> 00:15:40,619
Suze: be that big of an income tax ding. However,

240
00:15:42,210 --> 00:15:47,239
Suze: I have to tell you that if you currently are

241
00:15:47,539 --> 00:15:50,830
Suze: $1760 a month short,

242
00:15:51,809 --> 00:15:54,080
Suze: an annuity isn't going to do it for you.

243
00:15:54,760 --> 00:15:57,869
Suze: Transferring money into a Roth isn't going to do it

244
00:15:57,880 --> 00:16:01,559
Suze: for you on any level. So, what is going to

245
00:16:01,570 --> 00:16:04,380
Suze: do it for you? You're not gonna like this answer,

246
00:16:04,390 --> 00:16:05,859
Suze: but I'm gonna tell it to you.

247
00:16:07,109 --> 00:16:10,969
Suze: You don't have enough money to retire. You just don't.

248
00:16:11,580 --> 00:16:15,690
Suze: And that's the God honest truth because for you to

249
00:16:15,700 --> 00:16:20,669
Suze: have even $1000 a month of income and you've used

250
00:16:20,679 --> 00:16:23,349
Suze: up your retirement account simply to pay off the mortgage

251
00:16:23,359 --> 00:16:26,849
Suze: on your home. Where are you going to get that

252
00:16:26,859 --> 00:16:28,280
Suze: money from?

253
00:16:29,130 --> 00:16:32,229
Suze: So possibilities are, do you need to sell your home?

254
00:16:32,599 --> 00:16:35,969
Suze: Take whatever equity is out of that home and either

255
00:16:35,979 --> 00:16:41,190
Suze: seriously downsize or rent or? I don't know, but you

256
00:16:41,200 --> 00:16:45,789
Suze: need to look at this seriously because your financial situation

257
00:16:45,799 --> 00:16:50,190
Suze: needs a little bit of nursing and nobody is better

258
00:16:50,200 --> 00:16:52,669
Suze: to do that than you. If you can take care

259
00:16:52,679 --> 00:16:56,150
Suze: of people and nurse them back to health,

260
00:16:56,659 --> 00:17:00,200
Suze: you can take care of your finances and nurse it

261
00:17:00,210 --> 00:17:02,270
Suze: back to wealth.

262
00:17:03,390 --> 00:17:03,609
KT: Oh.

263
00:17:05,150 --> 00:17:08,849
KT: Oh, we need to do a talk to nurses and

264
00:17:08,859 --> 00:17:10,900
KT: use that line. That's great.

265
00:17:11,060 --> 00:17:12,449
Suze: We do, do talks to,

266
00:17:12,640 --> 00:17:16,930
KT: I know we love nurses by the way. Ok. Next question.

267
00:17:17,060 --> 00:17:20,089
KT: Simple question from Sharon. Suze,

268
00:17:20,468 --> 00:17:24,138
KT: My husband is 70. I am 68. Is there any

269
00:17:24,148 --> 00:17:28,838
KT: point in contributing or converting to a Roth at this

270
00:17:28,848 --> 00:17:30,677
KT: point in their, in their life?

271
00:17:30,698 --> 00:17:33,167
Suze: Listen to me and listen to me closely if you're

272
00:17:33,178 --> 00:17:36,879
Suze: still working and you have earned income, you're at least

273
00:17:36,888 --> 00:17:39,438
Suze: three years away from your husband. Having to take RMDs,

274
00:17:40,038 --> 00:17:44,698
Suze: required minimum distributions. I would be contributing every penny I

275
00:17:44,708 --> 00:17:47,548
Suze: could to a Roth assuming your home is paid off

276
00:17:47,558 --> 00:17:48,568
Suze: and all of that

277
00:17:49,530 --> 00:17:56,550
Suze: if you have IRA money 401k, traditional retirement money and

278
00:17:56,560 --> 00:18:00,729
Suze: depending on your income tax bracket right now and you

279
00:18:00,739 --> 00:18:03,949
Suze: do not need the money, you are not going to

280
00:18:03,959 --> 00:18:09,550
Suze: need to take required minimum distributions at all. Oh, you betcha.

281
00:18:09,560 --> 00:18:13,489
Suze: I would be converting at this point in time. Just

282
00:18:13,500 --> 00:18:17,050
Suze: make sure that you contact your CPA. How much could

283
00:18:17,060 --> 00:18:18,150
Suze: you convert

284
00:18:18,660 --> 00:18:22,930
Suze: to a Roth without you going into a higher income

285
00:18:22,939 --> 00:18:25,560
Suze: tax bracket? You know, KT,

286
00:18:27,119 --> 00:18:29,900
Suze: I've said it once, I'll say it a million times

287
00:18:29,910 --> 00:18:36,579
Suze: there is no investment vehicle. None that is better than

288
00:18:36,589 --> 00:18:41,939
Suze: a Roth IRA, whether it's converting to one, creating one,

289
00:18:41,989 --> 00:18:45,169
Suze: a backdoor Roth knowing how to do it. So, for

290
00:18:45,180 --> 00:18:48,819
Suze: next Thursday, I want you to do me a favor.

291
00:18:49,319 --> 00:18:53,680
Suze: I want to do an entire Ask KT and Suze

292
00:18:53,689 --> 00:19:01,260
Suze: Anything on Roth IRAs, especially for older people who think

293
00:19:01,390 --> 00:19:04,530
Suze: that they shouldn't be doing it as they're getting older,

294
00:19:04,560 --> 00:19:08,260
Suze: especially for the CPAs out there or the accountants out

295
00:19:08,270 --> 00:19:11,819
Suze: there who are advising you not to do them. It

296
00:19:11,829 --> 00:19:13,300
Suze: doesn't make sense.

297
00:19:13,719 --> 00:19:17,139
Suze: That is the worst advice you will ever have in

298
00:19:17,150 --> 00:19:21,800
Suze: your life. Bar. None, please. I am begging you do

299
00:19:21,810 --> 00:19:26,020
Suze: not make the mistake of not investing in a Roth.

300
00:19:26,030 --> 00:19:28,149
Suze: I don't care what your tax bracket is. I don't

301
00:19:28,160 --> 00:19:28,939
Suze: care what

302
00:19:29,630 --> 00:19:35,020
Suze: you cannot pass up. The Roth IRAs 401ks 403Bs TSBs

303
00:19:36,069 --> 00:19:39,459
Suze: SEP IRA Roths, all of them. Do you hear me?

304
00:19:39,469 --> 00:19:41,000
Suze: All right, KT, will you do that?

305
00:19:41,160 --> 00:19:45,619
KT: So next Thursday week from today, everybody tune in. Do

306
00:19:45,630 --> 00:19:48,889
KT: not miss it. It's gonna be a good one, especially

307
00:19:48,900 --> 00:19:49,800
KT: for me.

308
00:19:50,729 --> 00:19:51,699
KT: Alright, ready.

309
00:19:52,050 --> 00:19:54,670
KT: I like this one a lot. I have a question

310
00:19:54,680 --> 00:19:58,890
KT: about stock dividends. For a long time, you've stated that

311
00:19:58,900 --> 00:20:02,390
KT: it would be wise to buy stocks that pay dividends.

312
00:20:02,849 --> 00:20:06,170
KT: I've done this a lot, but I've recently learned that

313
00:20:06,180 --> 00:20:09,630
KT: once a dividend is announced on the record date, the

314
00:20:09,640 --> 00:20:13,790
KT: cost of the stock goes down by whatever the dividend was.

315
00:20:15,119 --> 00:20:19,329
KT: I'm a little bit confused and I'm having trouble understanding why.

316
00:20:19,339 --> 00:20:20,750
KT: That's a good deal.

317
00:20:21,589 --> 00:20:24,989
KT: It seems to me like it would just be a wash,

318
00:20:25,000 --> 00:20:29,530
KT: any information on this would be appreciated. This is from Christie.

319
00:20:30,859 --> 00:20:34,380
Suze: Christie. It is true. Let's say you're about to buy

320
00:20:34,390 --> 00:20:37,709
Suze: a stock and it has a 75 cents or let's

321
00:20:37,719 --> 00:20:41,569
Suze: just say it has a dollar dividend for that quarter.

322
00:20:41,579 --> 00:20:43,489
Suze: That would be a lot because that's $4 a year

323
00:20:43,500 --> 00:20:47,280
Suze: but that's besides the point. So for that quarter, you

324
00:20:47,290 --> 00:20:48,709
Suze: get a dollar

325
00:20:49,180 --> 00:20:53,599
Suze: and let's say the stock is at $20 a share.

326
00:20:54,540 --> 00:20:56,359
Suze: If you buy it

327
00:20:57,189 --> 00:21:01,430
Suze: before it goes ex dividend, that means if you buy

328
00:21:01,439 --> 00:21:01,780
Suze: it

329
00:21:02,520 --> 00:21:06,819
Suze: on the date that it goes ex dividend, what happens

330
00:21:06,829 --> 00:21:10,300
Suze: is they reduce the price of the stock. If it's

331
00:21:10,310 --> 00:21:16,900
Suze: at 20 they reduce it to $19 a share because

332
00:21:16,910 --> 00:21:22,300
Suze: you weren't on record before that. So therefore you shouldn't

333
00:21:22,310 --> 00:21:24,859
Suze: be able to get the dividend,

334
00:21:25,260 --> 00:21:29,550
Suze: but you're able to get it a dollar cheaper. So

335
00:21:29,560 --> 00:21:33,750
Suze: in essence, either way it would be the same. However,

336
00:21:34,599 --> 00:21:39,130
Suze: eventually that stock goes back up to $20 a share

337
00:21:39,140 --> 00:21:42,140
Suze: very shortly after that to tell you the truth. And

338
00:21:42,150 --> 00:21:47,500
Suze: from that point on you get that dollar every quarter.

339
00:21:48,040 --> 00:21:50,859
Suze: So it more than makes up for it

340
00:21:51,489 --> 00:21:54,989
Suze: really, you should just keep doing it and doing it.

341
00:21:55,050 --> 00:21:57,959
Suze: You can do it on the ex dividend date, which

342
00:21:57,969 --> 00:22:01,270
Suze: means if you buy it on that date, you don't

343
00:22:01,280 --> 00:22:05,119
Suze: get the dividend, but you get to buy the stock,

344
00:22:05,189 --> 00:22:09,709
Suze: whatever the price is, minus that dividend payment. Yeah.

345
00:22:09,920 --> 00:22:13,790
KT: So the ex dividend is the day they pay the dividend.

346
00:22:14,000 --> 00:22:16,389
Suze: And so if you bought it on that date,

347
00:22:16,959 --> 00:22:20,699
Suze: you don't qualify for the dividend because otherwise you would

348
00:22:20,709 --> 00:22:23,978
Suze: be getting the dividend. And let's say in this case,

349
00:22:23,989 --> 00:22:27,260
Suze: a dollar less per share, you have to buy it

350
00:22:27,270 --> 00:22:31,069
Suze: before the ex dividend date. So that you can be

351
00:22:31,079 --> 00:22:35,189
Suze: on record. So when they pay the dividend, you get

352
00:22:35,199 --> 00:22:39,479
Suze: the dividend, but you don't get both. But really if

353
00:22:39,489 --> 00:22:43,750
Suze: you think about it, it's identical. But from that point

354
00:22:43,760 --> 00:22:46,569
Suze: on every time you own the stock,

355
00:22:47,109 --> 00:22:50,180
Suze: you get the dividend, no matter what

356
00:22:51,069 --> 00:22:53,219
KT: Does it go down, every time a dividend is paid?

357
00:22:56,150 --> 00:22:59,489
Suze: You get the dividend and it goes down every time

358
00:22:59,619 --> 00:23:03,849
Suze: the stock goes ex dividend. But every time you're getting

359
00:23:03,859 --> 00:23:11,170
Suze: that dividend and you're reinvesting that dividend hopefully into that stock,

360
00:23:11,180 --> 00:23:15,770
Suze: it works out. Trust me. Right. But there's nothing greater

361
00:23:16,099 --> 00:23:20,719
Suze: than having dividends because the majority of your returns, KT,

362
00:23:20,969 --> 00:23:24,889
Suze: of a stock over a long period of time can

363
00:23:24,900 --> 00:23:26,819
Suze: be attributed to dividends.

364
00:23:28,000 --> 00:23:31,239
KT: So next one, Suze, would you approve to invest at

365
00:23:31,250 --> 00:23:36,619
KT: least $50,000 in a multifamily house ready for this? With

366
00:23:36,630 --> 00:23:42,130
KT: about 100 and 28 units in Houston, Texas. It doesn't

367
00:23:42,140 --> 00:23:45,550
KT: sound like multifamily. Sounds like an apartment building. I was

368
00:23:45,560 --> 00:23:48,129
KT: told that I will be able to double my investment

369
00:23:48,140 --> 00:23:49,300
KT: in five years. I,

370
00:23:50,140 --> 00:23:50,959
Suze: No, you're denied.

371
00:23:51,670 --> 00:23:55,430
Suze: anybody who tells you that you're going to double your

372
00:23:55,439 --> 00:24:01,208
Suze: money in five years in real estate, especially in Texas

373
00:24:01,349 --> 00:24:05,150
Suze: where they've had a lot of flooding, all of that stuff,

374
00:24:05,339 --> 00:24:08,229
Suze: all of that. Who knows what the cost of insurance

375
00:24:08,239 --> 00:24:10,849
Suze: is gonna go to or if they're even going to

376
00:24:10,859 --> 00:24:14,780
Suze: insure anymore in Houston, you never know they stopped insuring

377
00:24:14,790 --> 00:24:17,089
Suze: in Florida in California. No,

378
00:24:17,199 --> 00:24:20,819
Suze: if somebody says that and you're taking somebody else's word

379
00:24:20,829 --> 00:24:22,489
Suze: for it. I won't touch it with a 10 ft

380
00:24:22,500 --> 00:24:26,390
Suze: poll if you yourself knew it, if you did the numbers,

381
00:24:26,400 --> 00:24:30,619
Suze: if you understood it. Ok. But not because somebody else

382
00:24:30,630 --> 00:24:32,010
Suze: told you it all right.

383
00:24:32,319 --> 00:24:36,129
KT: Ok. This is from Erica. Hi, Suze and KT. I

384
00:24:36,140 --> 00:24:39,170
KT: have a question about special needs trust. I have a

385
00:24:39,180 --> 00:24:41,869
KT: seven year old daughter and a special needs, 10 year

386
00:24:41,900 --> 00:24:42,619
KT: old son.

387
00:24:42,869 --> 00:24:46,949
KT: Do I need a special needs trust and a separate

388
00:24:46,959 --> 00:24:49,489
KT: revocable living trust for both of them?

389
00:24:49,729 --> 00:24:54,130
Suze: Yes. No, not for both of them. What you need

390
00:24:54,280 --> 00:24:59,369
Suze: is a special needs trust only for your special needs child.

391
00:24:59,780 --> 00:25:04,169
Suze: You need a living revocable trust for your daughter.

392
00:25:04,949 --> 00:25:08,708
Suze: However, if you were to die while she still a minor,

393
00:25:08,770 --> 00:25:12,119
Suze: then you need to point a successor trustee to take

394
00:25:12,130 --> 00:25:16,770
Suze: care of that money and within that trust,

395
00:25:17,489 --> 00:25:20,579
Suze: you will decide how you get money from there into

396
00:25:20,589 --> 00:25:23,750
Suze: the special needs trust if your son needs it, but

397
00:25:23,760 --> 00:25:27,550
Suze: your son does not need a living revocable trust and

398
00:25:27,719 --> 00:25:32,250
Suze: a special needs trust. He only needs a special needs trust.

399
00:25:32,260 --> 00:25:35,540
Suze: Otherwise he will be disqualified from SSI.

400
00:25:36,619 --> 00:25:38,599
KT: So next is from Steven

401
00:25:39,060 --> 00:25:43,000
KT: Good morning Suze. Thank you for your great podcast. Do

402
00:25:43,010 --> 00:25:47,899
KT: you still recommend dollar cost averaging into 2030 year bonds

403
00:25:48,089 --> 00:25:52,550
KT: in addition to dividend paying stocks in my IRAs. I

404
00:25:52,560 --> 00:25:54,500
KT: noticed the bond rates are increasing.

405
00:25:54,530 --> 00:25:58,469
Suze: I do but do a 30 year versus a 20.

406
00:25:58,479 --> 00:26:02,040
Suze: And why is that? Because 20 year bonds are not

407
00:26:02,050 --> 00:26:05,810
Suze: very liquid, believe it or not, which is why they

408
00:26:05,819 --> 00:26:08,630
Suze: pay you a little bit higher interest rate.

409
00:26:09,010 --> 00:26:14,520
Suze: 30 year bonds are about 4.7%. Right now. I think

410
00:26:14,530 --> 00:26:19,349
Suze: it is possible that they could go to 5% which

411
00:26:19,359 --> 00:26:23,930
Suze: is why I've said little by little. So you might

412
00:26:23,939 --> 00:26:26,079
Suze: want to put a little into a 30 year bond

413
00:26:26,089 --> 00:26:29,920
Suze: now and then if it goes up a little bit more,

414
00:26:29,930 --> 00:26:34,260
Suze: once it hits around 5% maybe that will be when

415
00:26:34,270 --> 00:26:36,229
Suze: you go in with the rest of it.

416
00:26:37,069 --> 00:26:41,910
Suze: I absolutely still recommend that without a shadow of a doubt.

417
00:26:42,109 --> 00:26:46,170
Suze: And as always for real growth, dividend paying stocks is

418
00:26:46,180 --> 00:26:49,390
Suze: a great way to go. All right, KT, do you

419
00:26:49,400 --> 00:26:51,060
Suze: know what time it is time for?

420
00:26:51,280 --> 00:26:54,219
KT: Can I afford it Quizzy? And I'm ready.

421
00:26:54,619 --> 00:26:56,969
Suze: And she is ready. You got your little Suze notebook?

422
00:26:56,979 --> 00:27:00,630
KT: I have a big fat Suze notebook. Everybody. I've been

423
00:27:00,640 --> 00:27:03,089
KT: taking notes for 23 years.

424
00:27:03,295 --> 00:27:05,474
Suze: You know what I've been doing for 23 years?

425
00:27:05,484 --> 00:27:10,405
KT: Saving my notes. Every single scrap of paper... we have

426
00:27:10,415 --> 00:27:13,114
KT: to explain. I make little post it notes when I

427
00:27:13,125 --> 00:27:15,925
KT: leave or if I'm going somewhere and I leave them

428
00:27:15,935 --> 00:27:18,425
KT: around for her to find it's like a game we

429
00:27:18,435 --> 00:27:19,614
KT: have and she saves them.

430
00:27:19,625 --> 00:27:23,734
KT: All right, for 23 years. I have saved every single

431
00:27:23,744 --> 00:27:24,353
KT: note

432
00:27:24,689 --> 00:27:29,869
Suze: letter, everything she has ever written for me. Anyway, this

433
00:27:29,880 --> 00:27:33,729
Suze: is the, can I afford it for everybody. Not just KT,

434
00:27:33,959 --> 00:27:37,000
Suze: this is where I want you to take notes on.

435
00:27:37,040 --> 00:27:40,949
Suze: Can this person afford what she wants to buy? Because

436
00:27:40,959 --> 00:27:44,640
Suze: if you can figure it out for other people, guess what?

437
00:27:44,719 --> 00:27:47,930
Suze: You can figure it out for yourself. So get ready

438
00:27:47,939 --> 00:27:49,389
Suze: to write this down.

439
00:27:49,910 --> 00:27:52,979
Suze: We have a woman by the name of Laurie. She

440
00:27:52,989 --> 00:27:56,929
Suze: is 66 years of age and she is in good health.

441
00:27:57,280 --> 00:28:01,639
Suze: She currently owns a home outright that her deceased husband

442
00:28:01,650 --> 00:28:06,419
Suze: left for her. And it's a home on 30 acres.

443
00:28:06,640 --> 00:28:10,449
Suze: She actually only lives on two of the acres and

444
00:28:10,459 --> 00:28:13,739
Suze: leases out the other 28 to a neighbor and she

445
00:28:13,750 --> 00:28:16,569
Suze: has lived there for 30 years.

446
00:28:17,270 --> 00:28:21,010
Suze: She is afraid that as she gets older, she will

447
00:28:21,020 --> 00:28:23,489
Suze: not be able to continue to live in the house.

448
00:28:23,500 --> 00:28:25,129
Suze: So what does she want to do?

449
00:28:25,790 --> 00:28:32,729
Suze: She wants to buy a condo for $300,000. Now,

450
00:28:33,160 --> 00:28:42,140
Suze: her house is currently worth with the land 550 to $650,000.

451
00:28:42,949 --> 00:28:45,949
Suze: That's good because if she sold it, she could buy

452
00:28:45,959 --> 00:28:48,469
Suze: the condo, however, she doesn't want to wait to sell it.

453
00:28:48,989 --> 00:28:53,150
Suze: She wants to buy the condo right here and right

454
00:28:53,160 --> 00:28:57,540
Suze: now because she's afraid that if she doesn't buy it

455
00:28:57,550 --> 00:28:58,300
Suze: right now

456
00:28:59,119 --> 00:29:01,979
Suze: that it's gonna be sold and it won't be there

457
00:29:01,989 --> 00:29:06,650
Suze: for her. So can she afford it or not?

458
00:29:06,660 --> 00:29:08,119
KT: Show me the money, Suze.

459
00:29:08,130 --> 00:29:12,030
Suze: All right. I, oh, that was good, KT. I used

460
00:29:12,040 --> 00:29:14,699
Suze: to love to say that. So show me the money.

461
00:29:14,959 --> 00:29:22,199
Suze: Her income is comprised of va benefits of about $1612

462
00:29:22,209 --> 00:29:26,270
Suze: a month, as well as Social security Survivor benefits of

463
00:29:26,280 --> 00:29:28,969
Suze: $1628 a month

464
00:29:29,329 --> 00:29:33,119
Suze: and two part time jobs where she makes $2000 a

465
00:29:33,130 --> 00:29:40,839
Suze: month for a total of $5240 a month. That's her income.

466
00:29:41,199 --> 00:29:47,319
Suze: Let's talk for a second. However, about her expenses, Laurie

467
00:29:47,329 --> 00:29:53,260
Suze: says that her current monthly expenses are only utilities and insurance,

468
00:29:53,270 --> 00:29:56,869
Suze: which are $623 a month.

469
00:29:57,709 --> 00:30:01,229
Suze: Now, Laurie also has a little credit card debt,

470
00:30:02,060 --> 00:30:07,089
Suze: $3500 for hearing aids that she bought at 0%. So

471
00:30:07,099 --> 00:30:12,079
Suze: she pays an additional $475 on that debt as well.

472
00:30:12,369 --> 00:30:16,069
Suze: So Laurie is telling me that her total monthly expenses

473
00:30:16,079 --> 00:30:19,630
Suze: are only 1000 98 at this time.

474
00:30:20,170 --> 00:30:25,040
Suze: Laurie, let's get real. You have gasoline, you have food,

475
00:30:25,050 --> 00:30:28,790
Suze: you have entertainment, you have maintenance, you have all kinds

476
00:30:28,800 --> 00:30:33,400
Suze: of everything. So how much should we add to that? Really, KT.

477
00:30:33,949 --> 00:30:38,819
Suze: another 2000 a month. Not no, but you think that's conservative.

478
00:30:38,959 --> 00:30:41,609
KT: Make it an even 1800 let's say 1800 a month.

479
00:30:41,619 --> 00:30:45,729
Suze: All right. So, so 1800 to 2000 a month. But

480
00:30:45,739 --> 00:30:50,739
Suze: if that's true, then Laurie's expenses, let's just say are

481
00:30:50,750 --> 00:30:55,839
Suze: $3000 a month for everything. Going to the dentist, going here,

482
00:30:55,849 --> 00:30:59,209
Suze: going there, it's got average that giving gifts to people,

483
00:30:59,219 --> 00:30:59,969
Suze: all of that.

484
00:31:00,640 --> 00:31:04,099
Suze: So I want you all to think about this two things.

485
00:31:04,439 --> 00:31:11,380
Suze: Laurie's income is how much $5240 a month. Her expenses

486
00:31:11,390 --> 00:31:13,780
Suze: are $3000 a month,

487
00:31:14,089 --> 00:31:24,079
Suze: which leaves $2240 a month to live on. If Laurie

488
00:31:24,089 --> 00:31:27,949
Suze: gets ill and can't work those two part time jobs.

489
00:31:27,959 --> 00:31:32,520
Suze: That's an additional $2000 right now. That goes away. That

490
00:31:32,530 --> 00:31:39,160
Suze: leaves you Laurie with $240 a month of income, but ok,

491
00:31:39,819 --> 00:31:44,439
Suze: not so bad because you also have money in retirement

492
00:31:44,449 --> 00:31:49,079
Suze: accounts that can generate income for you.

493
00:31:49,709 --> 00:31:55,020
Suze: Her assets are $240,000 in a 401k. That's pre tax

494
00:31:55,030 --> 00:32:01,199
Suze: everybody $75,000 between an IRA and a Roth. So some

495
00:32:01,209 --> 00:32:08,069
Suze: of that is also pre-tax $10,000 in stocks and $45,000

496
00:32:08,079 --> 00:32:14,089
Suze: in checking and savings. So all together with all of that,

497
00:32:14,770 --> 00:32:23,989
Suze: that comes to approximately $370,000 in investments in cash that

498
00:32:24,000 --> 00:32:24,790
Suze: she has.

499
00:32:25,500 --> 00:32:30,079
Suze: Here's the thing. However, are you all following me? All right,

500
00:32:30,989 --> 00:32:34,810
Suze: even though she has good credit, KT, her bank is

501
00:32:34,819 --> 00:32:40,839
Suze: only willing to give her $170,000 loan on the condo.

502
00:32:41,209 --> 00:32:49,109
Suze: They also want an additional $18,700 in closing cost or

503
00:32:49,119 --> 00:32:53,160
Suze: whatever that money is for. They want the additional 11%

504
00:32:53,170 --> 00:32:55,130
Suze: of $170,000.

505
00:32:56,209 --> 00:33:03,699
Suze: That means she also has to come up with $130,000

506
00:33:04,489 --> 00:33:06,949
Suze: to be able to buy the condo

507
00:33:07,640 --> 00:33:15,010
Suze: because the condo is $300,000. Again, her intention is to

508
00:33:15,020 --> 00:33:17,089
Suze: pay off the loan in full. As soon as the

509
00:33:17,099 --> 00:33:18,640
Suze: house is sold,

510
00:33:19,380 --> 00:33:25,109
Suze: the HOA fees right now on the condo are $125

511
00:33:25,119 --> 00:33:25,790
Suze: a month.

512
00:33:26,530 --> 00:33:29,750
Suze: But remember, and she doesn't include it. She will also

513
00:33:29,760 --> 00:33:34,430
Suze: have condo insurance and other things that are in there.

514
00:33:34,439 --> 00:33:39,510
Suze: So if we added that to her monthly expenses, now

515
00:33:39,520 --> 00:33:46,430
Suze: we're getting close. However, the $170,000 loan

516
00:33:47,760 --> 00:33:52,479
Suze: at about 7.75% interest because that is the going interest

517
00:33:52,489 --> 00:33:55,459
Suze: rates right now on 30 year mortgages

518
00:33:56,339 --> 00:34:04,829
Suze: come to approximately $1454 a month a month. So if

519
00:34:04,839 --> 00:34:12,759
Suze: we add that $1454 to the $3000 that are currently

520
00:34:12,770 --> 00:34:21,679
Suze: her monthly expenses plus the $125 for the condo association fees.

521
00:34:22,389 --> 00:34:24,080
Suze: I don't know KT,

522
00:34:24,580 --> 00:34:30,590
Suze: that brings us to almost like 45 $4600 a month

523
00:34:31,370 --> 00:34:38,189
Suze: of expenses. And right now she's only bringing in about 5000.

524
00:34:38,199 --> 00:34:42,370
KT: Ok. So the big question, can she afford it?

525
00:34:42,379 --> 00:34:46,020
Suze: Can she afford it? My question to you, Laurie is

526
00:34:46,030 --> 00:34:53,790
Suze: and you to KT where is she going to get the $130,000 from?

527
00:34:56,149 --> 00:34:59,709
KT: You want my answer now. All right. She can't afford it,

528
00:34:59,719 --> 00:35:03,040
KT: Suze because she has to sell the house. First. In

529
00:35:03,050 --> 00:35:07,359
KT: other words, Laurie, you can't, if you cash all your

530
00:35:07,370 --> 00:35:11,129
KT: stuff in and your investments and your pay taxes, you're

531
00:35:11,139 --> 00:35:14,520
KT: gonna wipe yourself out and your life. I just want

532
00:35:14,540 --> 00:35:17,889
KT: to say she's at high risk because she hasn't yet

533
00:35:17,899 --> 00:35:20,870
KT: sold the house. And what about those, what ifs, what

534
00:35:20,879 --> 00:35:21,949
KT: about those storms?

535
00:35:22,219 --> 00:35:25,060
KT: What about all kinds of things? What about a twister

536
00:35:25,070 --> 00:35:26,870
KT: coming and taking that roof?

537
00:35:26,879 --> 00:35:30,199
Suze: Right. But here's the thing. So do you approve her

538
00:35:30,209 --> 00:35:31,319
Suze: or deny her?

539
00:35:31,330 --> 00:35:33,850
KT: I have to deny her because she, you have to

540
00:35:33,860 --> 00:35:36,639
KT: sell the house first. Then you can do all of this.

541
00:35:36,850 --> 00:35:40,550
KT: So you can't just go and buy it with what

542
00:35:40,810 --> 00:35:44,270
KT: you don't want to cash out all of these retirement funds.

543
00:35:44,280 --> 00:35:47,889
Suze: So, here's the thing, Laurie you're asking. I am a

544
00:35:47,899 --> 00:35:51,409
Suze: first time home buyer and I'm nervous. You should be

545
00:35:51,419 --> 00:35:55,189
Suze: nervous and I do not want you to do this

546
00:35:55,459 --> 00:35:57,459
Suze: to just come up. I don't want you to do

547
00:35:57,469 --> 00:36:01,489
Suze: it to come up with the other $130,000.

548
00:36:02,070 --> 00:36:05,589
Suze: Really, Laurie? You would have to because most of your

549
00:36:05,600 --> 00:36:10,359
Suze: money is in the 401k, the old one and it's pre-tax,

550
00:36:10,449 --> 00:36:13,760
Suze: you'd have to wipe that clean and after taxes, maybe

551
00:36:13,770 --> 00:36:17,159
Suze: it would give you your 130,000 that won't leave you

552
00:36:17,169 --> 00:36:21,040
Suze: with enough money. If something happened. Number one, number two,

553
00:36:21,580 --> 00:36:25,139
Suze: let's talk about condos for a second. What, what do

554
00:36:25,149 --> 00:36:26,100
Suze: you want to say? KT?

555
00:36:26,110 --> 00:36:29,030
KT: So, Suze and I buy a condo in Florida after

556
00:36:29,209 --> 00:36:33,100
KT: years of both of us having owned and paid for

557
00:36:33,110 --> 00:36:34,989
KT: homes with no mortgages.

558
00:36:35,479 --> 00:36:38,158
KT: And now we go buy this condo and, and we

559
00:36:38,169 --> 00:36:41,509
KT: buy it out. Right. And Suze's big brother said, hey, girls,

560
00:36:41,520 --> 00:36:44,780
KT: don't forget you're buying a condo. You're never going to

561
00:36:44,790 --> 00:36:49,350
KT: be in a situation where those expenses go down. Just remember,

562
00:36:49,360 --> 00:36:51,669
KT: I'm warning you and he's right.

563
00:36:51,679 --> 00:36:57,069
Suze: We've been assessed twice. The expenses we had

564
00:36:57,350 --> 00:37:04,830
Suze: was $14,000. So expenses go up. You have assessments, all

565
00:37:04,840 --> 00:37:07,949
Suze: things that you don't experience in a home that you

566
00:37:07,959 --> 00:37:12,439
Suze: own yourself. Number one and number two, when you buy

567
00:37:12,449 --> 00:37:17,070
Suze: a condo condos do not appreciate as much as homes.

568
00:37:17,080 --> 00:37:21,139
Suze: And why is that? You have to know is the

569
00:37:21,149 --> 00:37:25,909
Suze: condo filled the other condos in that unit that you're buying?

570
00:37:26,209 --> 00:37:32,449
Suze: Are they filled with renters or condo owners? Because if

571
00:37:32,459 --> 00:37:37,209
Suze: they're filled with renters that immediately brings the value down.

572
00:37:37,219 --> 00:37:37,989
Suze: Number one,

573
00:37:38,629 --> 00:37:43,479
Suze: number two, you're obviously buying this condo because you want

574
00:37:43,489 --> 00:37:46,479
Suze: to know as you get older, you'll be able to

575
00:37:46,489 --> 00:37:50,279
Suze: stay there and it will be friendly for elderly people.

576
00:37:51,419 --> 00:37:54,739
Suze: I would rather see you do the following. I want

577
00:37:54,750 --> 00:37:59,770
Suze: you to stay in your home right now, period. For

578
00:37:59,780 --> 00:38:04,250
Suze: as long as you possibly can. Laurie  you have enough

579
00:38:04,260 --> 00:38:06,870
Suze: money that if you needed somebody to help you to

580
00:38:06,879 --> 00:38:11,049
Suze: mow the lawn or do certain things, just hire somebody

581
00:38:11,060 --> 00:38:13,330
Suze: to come in far cheaper.

582
00:38:14,169 --> 00:38:17,929
Suze: But there will possibly come a time when you really

583
00:38:17,939 --> 00:38:21,479
Suze: do need to sell it and you need to sell

584
00:38:21,489 --> 00:38:25,469
Suze: it to move somewhere. Most likely where you can be

585
00:38:25,479 --> 00:38:29,969
Suze: taken care of, or there's facilities for you, like an

586
00:38:29,979 --> 00:38:36,029
Suze: independent living facility that also has assisted living there and

587
00:38:36,040 --> 00:38:37,169
Suze: other things.

588
00:38:37,179 --> 00:38:39,149
KT: And they're so nice these days.

589
00:38:39,239 --> 00:38:39,610
Suze: So nice

590
00:38:41,719 --> 00:38:45,080
Suze: because I don't want to see you buy a condo

591
00:38:45,090 --> 00:38:47,909
Suze: right now at the sky high interest rates that we

592
00:38:47,919 --> 00:38:52,300
Suze: have move in. Maybe not like it because your neighbors

593
00:38:52,310 --> 00:38:55,030
Suze: upstairs have kids or whatever and they're running all over

594
00:38:55,040 --> 00:38:58,330
Suze: the place and you can hear it. It's not like

595
00:38:58,340 --> 00:39:02,080
Suze: a single family home. So if that happened and you

596
00:39:02,090 --> 00:39:04,989
Suze: moved and you got older and you needed help, you'd

597
00:39:05,000 --> 00:39:07,409
Suze: have to sell it again and do

598
00:39:07,929 --> 00:39:11,270
Suze: what I'm suggesting going into a place that will help

599
00:39:11,280 --> 00:39:14,709
Suze: you and take care of. You don't take the intermediate

600
00:39:14,719 --> 00:39:19,179
Suze: step of buying a condo. Stay in your home. Have

601
00:39:19,189 --> 00:39:22,709
Suze: a great time. Fix it up a little bit if

602
00:39:22,719 --> 00:39:25,399
Suze: you need to, you have the money to do so

603
00:39:25,679 --> 00:39:30,439
Suze: and have a great life, but you are denied. My

604
00:39:30,449 --> 00:39:33,899
Suze: dear friend, do not buy the condo.

605
00:39:34,510 --> 00:39:39,790
Suze: And one thing before we sign off everybody, Laurie, I

606
00:39:39,800 --> 00:39:44,000
Suze: know you think that this condo won't be there, but

607
00:39:44,010 --> 00:39:46,689
Suze: I got news for you. There will always be another

608
00:39:46,699 --> 00:39:50,409
Suze: condo that you can buy. So the rules, you all

609
00:39:50,419 --> 00:39:52,649
Suze: need to live your life by.

610
00:39:53,169 --> 00:39:58,459
Suze: You sell before you buy, you do not buy and

611
00:39:58,469 --> 00:40:02,129
Suze: then hopefully want to sell because you never know when

612
00:40:02,139 --> 00:40:05,040
Suze: you won't be able to. And now you are stuck

613
00:40:05,050 --> 00:40:10,679
Suze: with two places. All right, everybody. So Suze School is

614
00:40:10,689 --> 00:40:12,219
Suze: coming up on Sunday.

615
00:40:12,830 --> 00:40:14,169
Suze: Do you know what that's going to do? What I'm

616
00:40:14,179 --> 00:40:15,408
Suze: going to do on Suze School?

617
00:40:15,419 --> 00:40:16,409
KT: What are you going to do?

618
00:40:16,419 --> 00:40:19,479
Suze: I don't know either, but I'll have to figure it out.

619
00:40:19,600 --> 00:40:22,800
Suze: But really, there's only one thing that we want you

620
00:40:22,810 --> 00:40:24,750
Suze: to remember when it comes to your money. And what

621
00:40:24,760 --> 00:40:25,929
Suze: is that? My love,

622
00:40:25,939 --> 00:40:29,810
KT: It's people first, then money and things.

623
00:40:29,879 --> 00:40:33,600
Suze: And if you do that, what's going to happen? You

624
00:40:33,610 --> 00:40:36,370
Suze: will be unstoppable.