1 00:00:07,719 --> 00:00:10,658 Suze: September 25th, 2025. 2 00:00:10,760 --> 00:00:12,680 KT: Wait, tell everyone why you're laughing. 3 00:00:13,770 --> 00:00:16,280 Suze: Well, why don't you tell everybody why we're laughing? 4 00:00:16,280 --> 00:00:19,620 KT: So Suze had a keratin treatment yesterday. 5 00:00:19,690 --> 00:00:20,409 Suze: We're in Florida. 6 00:00:20,549 --> 00:00:22,369 KT: We're in Florida. She had a keratin 7 00:00:22,370 --> 00:00:22,829 KT: treatment... 8 00:00:22,829 --> 00:00:24,308 Suze: and my hair can be a little bit unmanageable. 9 00:00:24,309 --> 00:00:27,649 KT: And when I picked her up from the salon, she, 10 00:00:27,770 --> 00:00:30,159 KT: she had a little cap on, a little baseball cap, 11 00:00:30,409 --> 00:00:30,969 KT: and when we got home, 12 00:00:31,284 --> 00:00:33,424 KT: she took it off and I said, Oh my God, 13 00:00:33,455 --> 00:00:37,805 KT: where's your hair? So this treatment makes your hair like 14 00:00:37,805 --> 00:00:38,715 KT: real flat. 15 00:00:38,884 --> 00:00:39,293 Suze: Yes. 16 00:00:39,654 --> 00:00:41,814 KT: And I, I said, Why'd you let him cut it? 17 00:00:41,854 --> 00:00:44,685 KT: She said, I never cut not one strand. I said, 18 00:00:44,895 --> 00:00:46,934 KT: Oh my God, what did you do, Suze? And I 19 00:00:46,935 --> 00:00:50,935 KT: keep looking at her and she's, her hair's real flat. 20 00:00:52,590 --> 00:00:54,099 KT: We should post a photo. 21 00:00:55,069 --> 00:00:57,959 Suze: Maybe, maybe we'll see what happens anyway... 22 00:00:58,349 --> 00:01:03,430 KT: Today's a lucky day. Suze has flat hair and it's 23 00:01:03,430 --> 00:01:08,430 KT: our nephew, our great nephew, Nicky's first birthday. So how 24 00:01:08,430 --> 00:01:11,089 KT: does he think it feels, Nicky, to be one? 25 00:01:12,410 --> 00:01:14,809 Suze: You know what I think is so funny, everybody. First 26 00:01:14,809 --> 00:01:17,900 Suze: of all, welcome to the Women and Money podcast... 27 00:01:17,900 --> 00:01:19,110 KT: And everyone's smart enough to listen. 28 00:01:19,110 --> 00:01:22,059 Suze: All right, so we've got that down. KT has already 29 00:01:22,059 --> 00:01:26,300 Suze: just been going, going, going this morning, um, but what 30 00:01:26,300 --> 00:01:29,300 Suze: I think is so funny is that everybody's making all 31 00:01:29,300 --> 00:01:32,769 Suze: these presents, remember, in our family we don't really buy things, 32 00:01:32,980 --> 00:01:37,019 Suze: so I've watched KT paint a coconut, paint all these 33 00:01:37,019 --> 00:01:39,459 Suze: little things, you know, figures on it and everything, and 34 00:01:39,459 --> 00:01:40,018 Suze: I'm like, 35 00:01:40,790 --> 00:01:43,110 Suze: all these people are going there to be with him 36 00:01:43,110 --> 00:01:46,190 Suze: on what's so fascinating. He's not really even gonna know 37 00:01:46,190 --> 00:01:47,620 Suze: it's his birthday. 38 00:01:47,870 --> 00:01:48,660 KT: Yes, he does. 39 00:01:48,750 --> 00:01:50,309 Suze: Yes, he does anyway, KT. 40 00:01:51,610 --> 00:01:55,440 Suze: You have questions for me today because ask KT and 41 00:01:55,440 --> 00:01:59,440 Suze: Suze anything, but most people tuning in, maybe for the 42 00:01:59,440 --> 00:02:02,150 Suze: first time would think, oh, this is the KT show. 43 00:02:03,599 --> 00:02:07,669 KT: It should be. I bet the ratings will skyrocket if 44 00:02:07,669 --> 00:02:09,210 KT: there's ratings on a podcast. 45 00:02:09,559 --> 00:02:12,399 Suze: There's a number of downloads, right? I think what, what 46 00:02:12,399 --> 00:02:15,559 Suze: are we approaching 50 million. So we're approaching a nice 47 00:02:15,559 --> 00:02:16,119 Suze: number anyway. 48 00:02:16,399 --> 00:02:20,639 KT: All right. Hi, Suze and KT what does fund your 49 00:02:20,639 --> 00:02:21,630 KT: trust mean? 50 00:02:23,229 --> 00:02:25,990 KT: What do I need to do? Is this something I 51 00:02:25,990 --> 00:02:31,270 KT: need to do before getting my must-have documents notarized? Please 52 00:02:31,270 --> 00:02:33,020 KT: advise from Linda. 53 00:02:33,429 --> 00:02:36,309 Suze: Here's the thing, Linda, that you need to understand. 54 00:02:37,080 --> 00:02:42,630 Suze: A trust is like a suitcase where you have to 55 00:02:42,630 --> 00:02:45,228 Suze: pack things in it. You have to put things in 56 00:02:45,229 --> 00:02:50,059 Suze: it so it goes from one place to another very easily. 57 00:02:50,350 --> 00:02:54,470 Suze: If you have a suitcase and there's nothing in it, 58 00:02:55,320 --> 00:02:57,880 Suze: then you get to the place that you're going and 59 00:02:57,880 --> 00:03:00,589 Suze: you open it up and there's nothing there. 60 00:03:00,679 --> 00:03:01,160 KT: I love 61 00:03:01,160 --> 00:03:02,119 KT: that analogy. 62 00:03:02,240 --> 00:03:02,309 Suze: Oh, 63 00:03:02,339 --> 00:03:03,978 KT: I'm, no, I love that. 64 00:03:04,160 --> 00:03:08,520 Suze: I'm so glad. So when you have a trust, I 65 00:03:08,520 --> 00:03:12,119 Suze: want you to think about it as a suitcase that 66 00:03:12,119 --> 00:03:17,199 Suze: you have to put things into that suitcase so it 67 00:03:17,199 --> 00:03:18,979 Suze: can easily go from you 68 00:03:19,038 --> 00:03:23,229 Suze: to your beneficiaries that all kinds of things can happen 69 00:03:23,229 --> 00:03:26,869 Suze: to it when it's in the suitcase. So funding your 70 00:03:26,869 --> 00:03:31,508 Suze: trust means you have to first do the trust, get 71 00:03:31,508 --> 00:03:36,029 Suze: it notarized, get it witnessed. Then what you have to 72 00:03:36,029 --> 00:03:38,830 Suze: do is you have to change the name of, let's 73 00:03:38,830 --> 00:03:42,869 Suze: say your individual bank account from, let's just say, Suze Orman. 74 00:03:43,380 --> 00:03:47,500 Suze: To Suze Orman Trustee for the Suze Orman Trust. You 75 00:03:47,500 --> 00:03:52,710 Suze: have to change the assets that you have your bank accounts, 76 00:03:52,789 --> 00:03:58,009 Suze: your brokerage firm accounts, your real estate. All of those 77 00:03:58,009 --> 00:04:01,669 Suze: things get changed from your individual name, 78 00:04:02,509 --> 00:04:07,350 Suze: into the suitcase and the suitcase has the name of 79 00:04:07,350 --> 00:04:12,029 Suze: Linda trustee for the Linda revocable trust and whatever date 80 00:04:12,029 --> 00:04:16,769 Suze: you did it just that simple. So that's how you 81 00:04:16,769 --> 00:04:17,709 Suze: fund a trust. 82 00:04:18,609 --> 00:04:21,190 Suze: Now, when you get the must-have docs, and I have a 83 00:04:21,190 --> 00:04:25,279 Suze: feeling that you're talking about them and the must-have docs 84 00:04:25,720 --> 00:04:30,159 Suze: are a living revocable trust, an advanced directive and durable 85 00:04:30,160 --> 00:04:33,519 Suze: power of attorney for health care, a financial power of attorney, 86 00:04:33,619 --> 00:04:34,829 Suze: and a will. 87 00:04:35,450 --> 00:04:40,040 Suze: And when you get those and you do them all 88 00:04:40,040 --> 00:04:44,529 Suze: of them, you will absolutely have instructions when you're doing 89 00:04:44,529 --> 00:04:48,799 Suze: the revocable trust of how you fund it. They'll take 90 00:04:48,799 --> 00:04:52,089 Suze: you through the entire process and for those of you 91 00:04:52,089 --> 00:04:52,768 Suze: who don't know what 92 00:04:52,850 --> 00:04:59,519 Suze: the must-have documents are go to musthadocs.com for $99. You 93 00:04:59,519 --> 00:05:04,709 Suze: will get $2,500 worth of state of the art documents, 94 00:05:05,040 --> 00:05:08,279 Suze: good in all 50 states. All right, KT. 95 00:05:08,959 --> 00:05:12,789 KT: All right, Suze, next question. This is from Liza. 96 00:05:13,190 --> 00:05:14,089 Suze: Are you sure? 97 00:05:14,260 --> 00:05:14,730 KT: Yes. 98 00:05:14,899 --> 00:05:16,579 Suze: Do you remember when we saw Liza Minnelli? 99 00:05:17,100 --> 00:05:19,869 KT: I loved it. I love Liza Minnelli, everybody. 100 00:05:20,290 --> 00:05:21,659 Suze: We got to go backstage. 101 00:05:22,260 --> 00:05:24,809 KT: Yeah, we saw her on on Broadway for her show. 102 00:05:25,140 --> 00:05:27,219 Suze: It was so good. Was it on Broadway or was it somewhere else? 103 00:05:27,809 --> 00:05:29,579 KT: It was on Broadway because we were in New York. We had 104 00:05:29,579 --> 00:05:31,820 KT: to walk all the way down the steps. 105 00:05:32,290 --> 00:05:35,409 KT: To get to her dressing room, the old New Yorker... 106 00:05:35,570 --> 00:05:40,040 Suze: Never mind. Next question, KT. We're already done with this podcast. 107 00:05:40,040 --> 00:05:43,989 KT: Liza, Liza with a Z. Hi Suze. I'm 30 years 108 00:05:43,988 --> 00:05:46,570 KT: old and I lost my job earlier this year with 109 00:05:46,570 --> 00:05:50,760 KT: the Doge funding cuts. I want to roll my former 110 00:05:50,760 --> 00:05:55,529 KT: employer Roth 401k into my Roth IRA. I have 111 00:05:55,950 --> 00:06:01,690 KT: $34,000 in my Roth 401k. Question is, when I roll 112 00:06:01,690 --> 00:06:05,679 KT: the funds over, do I dollar cost average this money 113 00:06:05,928 --> 00:06:09,649 KT: into my Roth IRA as I normally would do with 114 00:06:09,649 --> 00:06:13,649 KT: my investments? If I dollar cost average, am I missing 115 00:06:13,649 --> 00:06:17,649 KT: out on money that would have been growing before rolling 116 00:06:17,649 --> 00:06:19,570 KT: it over and now sitting in cash? 117 00:06:20,059 --> 00:06:23,190 KT: So Liza, invest in ETFs. 118 00:06:23,200 --> 00:06:26,010 Suze: Yeah, so Liza with a Z. 119 00:06:27,130 --> 00:06:32,570 Suze: When you transfer that 34,000 into your Roth, if that 120 00:06:32,570 --> 00:06:36,808 Suze: money had been fully invested, listen to me closely already, 121 00:06:37,690 --> 00:06:41,049 Suze: let's say it was in your Roth 401k in a 122 00:06:41,049 --> 00:06:44,250 Suze: Standard and Poor's 500 index fund if it was already 123 00:06:44,250 --> 00:06:45,928 Suze: totally invested. 124 00:06:46,760 --> 00:06:51,350 Suze: When you actually transfer it, maybe you'll transfer it in cash. 125 00:06:51,399 --> 00:06:54,950 Suze: Who knows? I would not dollar cost average. I would 126 00:06:54,950 --> 00:06:59,238 Suze: actually just totally invest if the money that you are 127 00:06:59,238 --> 00:07:04,678 Suze: transferring was 100% invested at that time. If it wasn't 128 00:07:04,678 --> 00:07:07,799 Suze: and it was sitting in cash, then I would dollar 129 00:07:07,799 --> 00:07:09,429 Suze: cost average. All right, KT. 130 00:07:10,029 --> 00:07:13,607 KT: Hi, Suze and KT, if I am maxing out my 401k... 131 00:07:14,399 --> 00:07:14,790 Suze: Who is this from? 132 00:07:15,260 --> 00:07:15,820 KT: AC. 133 00:07:15,820 --> 00:07:19,579 Suze: AC. Ok AC, Ask KT AC. 134 00:07:20,019 --> 00:07:22,049 KT: Should I add additional dollars? 135 00:07:22,859 --> 00:07:22,970 Suze: I'm SO. 136 00:07:22,970 --> 00:07:26,820 KT: Should I add additional dollars to a traditional rollover IRA 137 00:07:26,820 --> 00:07:30,980 KT: or brokerage account? I have both additional accounts, but I'm 138 00:07:30,980 --> 00:07:34,260 KT: not sure which is a better investment for retirement, which 139 00:07:34,260 --> 00:07:37,209 KT: I would like to do in about 10 years. My 140 00:07:37,209 --> 00:07:40,820 KT: income doesn't allow me to contribute to a Roth IRA 141 00:07:40,820 --> 00:07:42,609 KT: just in case you were wondering. 142 00:07:43,149 --> 00:07:43,700 Suze: Yes and I was. 143 00:07:44,214 --> 00:07:47,364 Suze: AC because as you were, as KT was reading that 144 00:07:47,364 --> 00:07:48,964 Suze: to me, I was going, why doesn't you just do 145 00:07:48,964 --> 00:07:53,614 Suze: a backdoor Roth, and you can't do a backdoor Roth, 146 00:07:53,924 --> 00:07:59,024 Suze: everybody remember this if you have a traditional IRA, uh, 147 00:07:59,095 --> 00:08:03,535 Suze: a SEP plan, a simple plan that is pre-tax, you'll be, 148 00:08:03,605 --> 00:08:05,795 Suze: you just don't want to do it if you have one. 149 00:08:06,484 --> 00:08:10,524 Suze: Now my answer's gonna probably surprise you, AC. 150 00:08:12,000 --> 00:08:15,649 Suze: If you are asking me which is better, a traditional 151 00:08:15,649 --> 00:08:21,609 Suze: IRA or a brokerage account, I would tell you I 152 00:08:21,609 --> 00:08:24,730 Suze: would do a brokerage account. And the reason that I 153 00:08:24,730 --> 00:08:28,290 Suze: would do a brokerage account is because once you make 154 00:08:28,290 --> 00:08:32,039 Suze: an investment normally, you may keep it for 10 years 155 00:08:32,039 --> 00:08:35,449 Suze: or longer, and while it's in there, you don't pay 156 00:08:35,450 --> 00:08:39,010 Suze: taxes on it anyway, but when you do go to 157 00:08:39,010 --> 00:08:40,289 Suze: take it out, 158 00:08:40,789 --> 00:08:44,390 Suze: what can happen then you will only pay capital gains 159 00:08:44,390 --> 00:08:47,829 Suze: tax if you have a gain. What happens if you 160 00:08:47,830 --> 00:08:51,309 Suze: have a loss? Then you can take the loss off 161 00:08:51,309 --> 00:08:54,940 Suze: your taxes. You also may have some things in there 162 00:08:54,940 --> 00:08:57,468 Suze: that have a gain. Some have a loss, so you 163 00:08:57,469 --> 00:09:01,419 Suze: can offset them all so you don't pay any taxes. Oh, 164 00:09:01,565 --> 00:09:05,236 Suze: you die. And now the money goes down to your beneficiaries. 165 00:09:05,315 --> 00:09:08,556 Suze: They get a step up in basis. So let's just 166 00:09:08,556 --> 00:09:14,745 Suze: say you took that money and you turned $50,000 into $300,000. 167 00:09:15,035 --> 00:09:18,635 Suze: You die, guess what? Your beneficiaries get a step up 168 00:09:18,635 --> 00:09:22,356 Suze: in basis. They get all of that for $300,000. 169 00:09:22,541 --> 00:09:26,021 Suze: They could sell it all, no taxes. You put it 170 00:09:26,021 --> 00:09:29,802 Suze: in a traditional IRA and it grows and it grows 171 00:09:29,802 --> 00:09:33,921 Suze: and it grows. Oh great. Now you go to take 172 00:09:33,921 --> 00:09:37,631 Suze: it out - ordinary income. Oh, you've lost money on it, 173 00:09:37,841 --> 00:09:40,481 Suze: can't take it off your taxes. You die and it 174 00:09:40,481 --> 00:09:43,331 Suze: goes to your beneficiaries. Totally taxable. 175 00:09:43,820 --> 00:09:48,359 Suze: An investment account over an IRA any day if you 176 00:09:48,359 --> 00:09:50,719 Suze: ask me when it's pre-tax. All right. 177 00:09:51,080 --> 00:09:53,400 KT: OK, next question from Karen. 178 00:09:53,700 --> 00:09:58,549 KT: Hi Suze and KT, I'm reading your retirement book and loving it. 179 00:09:58,549 --> 00:10:00,520 Suze: The Ultimate Retirement Guide. 180 00:10:00,520 --> 00:10:06,079 KT: For 50+. I remember you've mentioned on your podcast, and 181 00:10:06,080 --> 00:10:08,679 KT: I just read it in your book as well, that 182 00:10:08,679 --> 00:10:12,069 KT: a Roth SEP IRA is now allowed. 183 00:10:12,390 --> 00:10:12,780 Suze: Yea, if you can find one. 184 00:10:12,780 --> 00:10:13,840 KT: Do you know... 185 00:10:14,679 --> 00:10:17,239 KT: There you go. The question is, do you know of 186 00:10:17,239 --> 00:10:21,669 KT: any institutions currently offering one? Do you? 187 00:10:21,960 --> 00:10:22,390 Suze: No. 188 00:10:22,609 --> 00:10:22,979 KT: All right, well. 189 00:10:23,520 --> 00:10:28,280 Suze: Listen, everybody, I don't understand, now that the laws have 190 00:10:28,280 --> 00:10:33,239 Suze: changed and you can have a SEP IRA as a Roth, 191 00:10:33,919 --> 00:10:38,200 Suze: no financial institution really is offering it. Maybe I found one, 192 00:10:38,280 --> 00:10:40,039 Suze: but I wouldn't put my money there. 193 00:10:40,349 --> 00:10:42,659 Suze: But so here's what I would do if I were you. 194 00:10:42,700 --> 00:10:46,900 Suze: It's just such a shame. Fund your SEP IRA and 195 00:10:46,900 --> 00:10:50,859 Suze: convert it just that simple and pay taxes on it 196 00:10:50,859 --> 00:10:54,380 Suze: when you convert it. It's the same as if you 197 00:10:54,380 --> 00:10:59,130 Suze: put money into a Roth SEP IRA with after tax money. 198 00:10:59,299 --> 00:11:01,429 Suze: It would come out the same. All right, go on. 199 00:11:01,539 --> 00:11:05,659 KT: All right. Next question is from Miguel. Hi, Suze. I 200 00:11:05,659 --> 00:11:08,820 KT: recently switched jobs and I had a 401k with my 201 00:11:08,820 --> 00:11:10,020 KT: previous employer. 202 00:11:10,460 --> 00:11:13,968 KT: It is a traditional 401k and I was thinking of 203 00:11:13,969 --> 00:11:18,849 KT: rolling it over to my personal Roth IRA or should 204 00:11:18,849 --> 00:11:21,710 KT: I open a traditional IRA? 205 00:11:22,590 --> 00:11:27,119 KT: And then Miguel goes on to say, it's about $650 206 00:11:27,239 --> 00:11:31,400 KT: not much. Hey, every dollar counts, Miguel, but I'd love 207 00:11:31,400 --> 00:11:34,880 KT: to move it in the best way possible, avoiding a 208 00:11:34,880 --> 00:11:37,640 KT: tax hit. Where should I move this money? Thank you. 209 00:11:38,400 --> 00:11:44,640 Suze: You know, KT, this is such a sweet question and 210 00:11:44,640 --> 00:11:45,559 Suze: one that is... 211 00:11:45,559 --> 00:11:45,929 KT: They're all sweet. 212 00:11:46,000 --> 00:11:47,179 KT: Yes, this one is very... 213 00:11:47,440 --> 00:11:51,348 Suze: Very sweet because people would go, really, $650? 214 00:11:51,890 --> 00:11:55,380 Suze: So, and what you said is every penny counts. Miguel, 215 00:11:55,419 --> 00:11:56,500 Suze: listen to me. 216 00:11:57,359 --> 00:12:04,630 Suze: You are to convert it to a Roth IRA absolutely. 217 00:12:05,289 --> 00:12:08,569 Suze: Because now what will happen is as you invested and 218 00:12:08,570 --> 00:12:13,210 Suze: if I were you I would put all $650 into 219 00:12:13,210 --> 00:12:16,380 Suze: an ETF by the symbol VOO, 220 00:12:16,770 --> 00:12:20,829 Suze: and let it grow because now the money will grow 221 00:12:21,200 --> 00:12:25,760 Suze: tax free. So take your tax hit now, put it 222 00:12:25,760 --> 00:12:29,799 Suze: into a Roth IRA and see what happens. It's not 223 00:12:29,799 --> 00:12:32,439 Suze: going to be that big of a tax hit, but 224 00:12:32,440 --> 00:12:36,359 Suze: I'd rather you take a tax hit on $650 than 225 00:12:36,359 --> 00:12:39,679 Suze: years and years and years from now, maybe taking a tax 226 00:12:40,059 --> 00:12:44,939 Suze: hit on 5000, 10,000, 15,000 or more when you go 227 00:12:44,940 --> 00:12:46,179 Suze: to take it out. All right, KT. 228 00:12:47,039 --> 00:12:49,979 KT: Suze, the next question is from Jenny. My husband and 229 00:12:49,979 --> 00:12:53,739 KT: I have a business, so we have the SEP IRA accounts. 230 00:12:53,940 --> 00:12:58,500 KT: We maximize the amount every year. My question is, we 231 00:12:58,500 --> 00:13:02,619 KT: currently have it with Merrill Lynch. My hubby's 61, I 232 00:13:02,619 --> 00:13:02,739 KT: am 233 00:13:02,909 --> 00:13:06,760 KT: 56 they charge us 1% on what we have in 234 00:13:06,760 --> 00:13:09,960 KT: the account. Should I move it to a no brokerage 235 00:13:09,960 --> 00:13:14,349 KT: firm like Fidelity so we stop paying the 1% when 236 00:13:14,349 --> 00:13:17,770 KT: we stop contributing? It adds up every month. 237 00:13:18,119 --> 00:13:21,890 Suze: So first of all, my dear Jenny, here's how I 238 00:13:21,890 --> 00:13:24,159 Suze: would look at this if I were you and everybody 239 00:13:24,159 --> 00:13:25,840 Suze: else wondering this question. 240 00:13:26,210 --> 00:13:29,848 Suze: Because as I peruse the emails that you send in 241 00:13:29,849 --> 00:13:35,010 Suze: to ask Suze - Suze- podcast at gmail.com, all of 242 00:13:35,010 --> 00:13:39,409 Suze: you seem to be asking this question lately. If you 243 00:13:39,409 --> 00:13:44,200 Suze: have money with a financial advisor and let's say 100% 244 00:13:44,200 --> 00:13:46,289 Suze: of it is invested for growth. 245 00:13:47,059 --> 00:13:50,320 Suze: Is it worth it for you to pay 1% or 246 00:13:50,320 --> 00:13:54,000 Suze: more in fees because that will mount up, to this 247 00:13:54,000 --> 00:13:57,460 Suze: financial adviser. Here's how I would make the decision if 248 00:13:57,460 --> 00:14:01,640 Suze: I were you. A financial adviser should at least in 249 00:14:01,640 --> 00:14:06,669 Suze: my opinion, beat the Standard and and Poor's 500 index. 250 00:14:07,239 --> 00:14:10,159 Suze: Now you all know that I really like the exchange 251 00:14:10,159 --> 00:14:14,799 Suze: traded fund by the symbol VOO. Take a look 252 00:14:15,320 --> 00:14:17,079 Suze: at the return for VOO. 253 00:14:17,840 --> 00:14:21,969 Suze: And if your adviser has beat that, all right, stay 254 00:14:21,969 --> 00:14:25,760 Suze: with the adviser. If the adviser has not beat it, 255 00:14:26,169 --> 00:14:27,679 Suze: then what are you paying for? 256 00:14:28,630 --> 00:14:32,140 Suze: Just that simple. All right, KT, next. 257 00:14:32,590 --> 00:14:35,590 KT: This is from Steph Suze, and the reason I love this, 258 00:14:35,630 --> 00:14:39,179 KT: it says pick me KT. It's a quick and Rothy. 259 00:14:40,190 --> 00:14:42,020 Suze: Oh, you know, we should create a... 260 00:14:42,469 --> 00:14:46,500 KT: A drink. Let's make a, let's make a smoothie called, 261 00:14:47,330 --> 00:14:50,929 KT: A Frothy Rothy. I'll put it on the, I'll put 262 00:14:50,929 --> 00:14:52,270 KT: it on the wall, everybody. 263 00:14:52,289 --> 00:14:53,169 Suze: And what would be in it? 264 00:14:53,169 --> 00:14:55,559 KT: I'm not gonna tell you now they have to go 265 00:14:55,559 --> 00:14:56,929 KT: to the wall to get the recipe. 266 00:14:57,210 --> 00:14:58,530 Suze: Guess what I would have in it? 267 00:14:58,650 --> 00:14:59,799 KT: Banana. 268 00:15:00,450 --> 00:15:05,809 Suze: No, I would have root beer and vanilla ice cream. 269 00:15:06,590 --> 00:15:14,250 KT: And a banana maybe? OK that's called a root beer float. 270 00:15:14,460 --> 00:15:18,489 KT: I need one that's called a Frothy Rothy Root Beer maybe. 271 00:15:20,080 --> 00:15:20,469 KT: I keep... (laughing) 272 00:15:23,640 --> 00:15:26,719 KT: Hi KT and Suze. I can't begin to thank you 273 00:15:26,719 --> 00:15:30,710 KT: for all the Roth knowledge you passed, passed on to me. 274 00:15:30,960 --> 00:15:31,989 KT: I currently (laughing) 275 00:15:33,049 --> 00:15:36,609 KT: I just drank a frothy. 276 00:15:37,530 --> 00:15:40,809 KT: I just drank my Frothy Rothy this morning and currently 277 00:15:40,809 --> 00:15:45,250 KT: have a standard investment account and a Roth IRA. They 278 00:15:45,250 --> 00:15:50,979 KT: are both all invested in great companies you've suggested, Suze, yippee. 279 00:15:51,580 --> 00:15:53,719 KT: That yippee is for real, by the way. 280 00:15:54,289 --> 00:15:57,530 KT: My question is this now that I know so much 281 00:15:57,530 --> 00:16:01,679 KT: about Roth IRA accounts and how to invest well within them, 282 00:16:01,869 --> 00:16:06,570 KT: is it possible to transfer shares of these fabulous stocks 283 00:16:06,570 --> 00:16:11,130 KT: from my standard investment account into my Roth IRA, 284 00:16:11,460 --> 00:16:16,229 KT: As my annual $8,000 contribution next year? So Suze, Steph 285 00:16:16,229 --> 00:16:20,049 KT: is over $50. I really don't want to sell those 286 00:16:20,049 --> 00:16:22,900 KT: that I have in the standard, and I sure wish 287 00:16:22,900 --> 00:16:24,090 KT: they were in my Roth. 288 00:16:24,340 --> 00:16:27,299 Suze: So when she says standard, she means in her regular 289 00:16:27,299 --> 00:16:30,820 Suze: investment account. Should I give you that as a pop quizzy? 290 00:16:31,469 --> 00:16:33,510 KT: Oh, no. 291 00:16:33,799 --> 00:16:34,590 Suze: Why? 292 00:16:36,690 --> 00:16:39,770 KT: No, no, don't, because I'm on a roll here. 293 00:16:40,950 --> 00:16:43,590 Suze: Oh really? Do all of us think she's on a 294 00:16:43,590 --> 00:16:44,030 Suze: roll here? 295 00:16:44,150 --> 00:16:44,919 KT: I am. 296 00:16:45,070 --> 00:16:45,869 Suze: Trust me... 297 00:16:46,109 --> 00:16:49,750 KT: Come on, answer the question before everyone forgets the question. 298 00:16:49,789 --> 00:16:49,950 Suze: All right. 299 00:16:50,669 --> 00:16:54,750 Suze: So, Steph, the easy answer to that is no, you cannot, right? 300 00:16:54,909 --> 00:17:00,020 Suze: You cannot transfer stocks that are in an investment account 301 00:17:00,020 --> 00:17:05,189 Suze: into a Roth IRA and have that be considered your. 302 00:17:05,310 --> 00:17:11,650 Suze: Contribution only cash can be considered a contribution when investing 303 00:17:11,859 --> 00:17:17,899 Suze: in a contributory Roth. Could you sell those stocks, pay 304 00:17:17,900 --> 00:17:21,260 Suze: taxes on them now, and then take that money and 305 00:17:21,260 --> 00:17:24,060 Suze: put it in as a contribution? Yes, but I'm not 306 00:17:24,060 --> 00:17:27,180 Suze: sure cause I have a feeling you probably have some 307 00:17:27,180 --> 00:17:29,739 Suze: serious gains in those stocks. 308 00:17:30,790 --> 00:17:34,718 Suze: Especially if they are... anyway, go on, go on, 309 00:17:34,969 --> 00:17:37,969 KT: Just enjoy another Frothy Rothy. All right. 310 00:17:39,560 --> 00:17:40,550 KT: This is from Cindy. 311 00:17:41,119 --> 00:17:42,959 Suze: Oh wait, let me put my flat. Let me fluff... 312 00:17:43,439 --> 00:17:47,159 KT: Cindy said, Suze, I got the must-have documents. I live 313 00:17:47,160 --> 00:17:51,520 KT: in Texas. When I... listen to this question, everybody, whoa, 314 00:17:51,619 --> 00:17:56,040 KT: make this one my pop quizzy. When I met with 315 00:17:56,040 --> 00:17:59,479 KT: an attorney to change the name of my home deed 316 00:17:59,800 --> 00:18:01,599 KT: to the trust name, they 317 00:18:01,760 --> 00:18:05,359 KT: said my trust document was not valid since it was 318 00:18:05,359 --> 00:18:06,239 KT: from California. 319 00:18:06,760 --> 00:18:09,198 Suze: Let me finish this question, and they wanted to do 320 00:18:09,199 --> 00:18:10,719 Suze: a new trust for them. Go on, 321 00:18:10,800 --> 00:18:14,050 KT: It says of course they offered to create a new 322 00:18:14,050 --> 00:18:20,359 KT: will and trust. Is this so? Cindy, you absolutely need 323 00:18:20,359 --> 00:18:23,910 KT: to listen to Suze and everyone out there smart enough. 324 00:18:24,599 --> 00:18:27,800 Suze: In the same way that you have the ability, Cindy, 325 00:18:28,000 --> 00:18:31,290 Suze: when you're like creating a corporation for a company. 326 00:18:31,609 --> 00:18:35,400 Suze: You can create and incorporate in really any place you 327 00:18:35,400 --> 00:18:40,420 Suze: want in Delaware or anywhere. The same is true with 328 00:18:40,420 --> 00:18:45,369 Suze: a living trust. If you create a living trust governed 329 00:18:45,640 --> 00:18:50,160 Suze: by the laws of California, it's good anywhere that you 330 00:18:50,160 --> 00:18:51,400 Suze: happen to be. 331 00:18:51,680 --> 00:18:55,099 Suze: And the reason that the must-have documents chose the state 332 00:18:55,099 --> 00:18:58,579 Suze: of California is that they have the most liberal trust 333 00:18:58,579 --> 00:19:02,579 Suze: laws anywhere, so your lawyer is 100% wrong. I just 334 00:19:02,579 --> 00:19:04,290 Suze: want to make this statement, everybody. 335 00:19:04,930 --> 00:19:10,420 Suze: Over the years, millions and millions and millions and millions 336 00:19:10,849 --> 00:19:16,119 Suze: of people have purchased the must-have docs from all over 337 00:19:16,119 --> 00:19:21,649 Suze: the United States. Don't you think by this point in time, 338 00:19:22,130 --> 00:19:25,790 Suze: that would have been noticed if it wasn't possible. Many 339 00:19:25,790 --> 00:19:29,109 Suze: of those people are no longer alive. They passed everything 340 00:19:29,109 --> 00:19:33,829 Suze: down to their beneficiaries absolutely with ease. There's never been 341 00:19:33,829 --> 00:19:37,430 Suze: a lawsuit or anything like that against them, so I 342 00:19:37,430 --> 00:19:38,550 Suze: doubt highly, 343 00:19:39,239 --> 00:19:44,300 Suze: that the manufactures of the must-have documents would have allowed 344 00:19:44,300 --> 00:19:49,750 Suze: that if it wasn't legal. So therefore they are wrong, 345 00:19:49,780 --> 00:19:51,339 Suze: and by the way, I just have to say. 346 00:19:51,800 --> 00:19:55,650 Suze: We had the must-have documents, and we live in Florida. 347 00:19:55,979 --> 00:19:57,729 Suze: Just saying, go on, KT. 348 00:19:57,939 --> 00:20:02,339 KT: All right, next question is from Carlene. I turned 60 349 00:20:02,339 --> 00:20:07,540 KT: in January 2025. Do I qualify for the additional catchup 350 00:20:07,540 --> 00:20:15,979 KT: amount of $11,250 on my 401k for the 2025 tax year? 351 00:20:17,089 --> 00:20:17,849 Suze: Pop quizzy. 352 00:20:17,969 --> 00:20:18,640 KT: Yes. 353 00:20:18,930 --> 00:20:20,760 Suze: What if she had turned 64? 354 00:20:22,020 --> 00:20:22,869 Suze: Would she have qualified? 355 00:20:22,979 --> 00:20:23,770 KT: I think yes. 356 00:20:24,000 --> 00:20:27,909 Suze: No, it's only between the ages of 60 and 63. 357 00:20:28,390 --> 00:20:28,800 Suze: Don't ask me... 358 00:20:28,800 --> 00:20:29,865 KT: I didn't know that. 359 00:20:29,865 --> 00:20:30,619 Suze: Of course you didn't. 360 00:20:30,959 --> 00:20:31,079 KT: Why? 361 00:20:31,189 --> 00:20:31,579 Suze: Don't ask me why. 362 00:20:31,579 --> 00:20:31,829 KT: ask, 363 00:20:32,000 --> 00:20:35,079 Suze: Don't ask me why. That's the law. I don't know 364 00:20:35,079 --> 00:20:37,438 Suze: why they did that, but yes, you absolutely 365 00:20:37,555 --> 00:20:42,785 Suze: qualify for that catch up contribution. With that, let's say 366 00:20:42,785 --> 00:20:47,534 Suze: you were 59 let's say you were 64, it's only 367 00:20:47,744 --> 00:20:50,084 Suze: like $7,500. All right, go on, KT. 368 00:20:50,505 --> 00:20:54,545 KT: OK, my final question is from Kara, and I, I 369 00:20:54,545 --> 00:20:56,785 KT: picked this one because it said in the subject, is 370 00:20:56,785 --> 00:20:59,665 KT: now a good time to refinance my mortgage? 371 00:21:00,310 --> 00:21:04,188 KT: Hi, Suze and KT. I bought a house two years ago. 372 00:21:04,439 --> 00:21:10,479 KT: I have a 30-year mortgage with an interest rate of 6.125%. 373 00:21:10,920 --> 00:21:14,750 KT: I've been watching mortgage interest rates waiting for them to 374 00:21:14,750 --> 00:21:17,739 KT: go down so I can refinance to a lower rate. 375 00:21:18,069 --> 00:21:22,229 KT: Two local credit unions have 20 year mortgage refinance rates 376 00:21:22,229 --> 00:21:27,988 KT: of 5.5 and 5.375. Should I lock in one of 377 00:21:27,989 --> 00:21:32,030 KT: these lower rates now or wait to see if the 378 00:21:32,030 --> 00:21:33,979 KT: interest rates go down further? 379 00:21:34,329 --> 00:21:37,949 Suze: Interest rates probably will go down further, but again, then 380 00:21:37,949 --> 00:21:38,579 Suze: you never know. 381 00:21:38,719 --> 00:21:40,229 KT: You never know how, when, right? 382 00:21:40,270 --> 00:21:43,300 Suze: You never know. They should go down sooner than later. 383 00:21:43,310 --> 00:21:47,149 Suze: We'll see, but truthfully, the current rate on a 20 384 00:21:47,150 --> 00:21:48,300 Suze: year mortgage, 385 00:21:48,729 --> 00:21:52,359 Suze: if you were to get it it's still at about 6.10%, 386 00:21:52,569 --> 00:21:56,920 Suze: so those are really great rates. So I don't know. 387 00:21:56,930 --> 00:21:58,810 Suze: I think if you did it would probably be OK, 388 00:21:58,900 --> 00:22:02,410 Suze: but you might just want to wait a little. Is 389 00:22:02,410 --> 00:22:06,329 Suze: it a special offer that these credit unions are offering 390 00:22:06,329 --> 00:22:07,000 Suze: right now? 391 00:22:07,800 --> 00:22:09,938 Suze: Or is it gonna go away? So can you just 392 00:22:09,939 --> 00:22:13,560 Suze: ask your credit unions, is this a special or what 393 00:22:13,560 --> 00:22:16,560 Suze: do they think? Because it might be a special to 394 00:22:16,560 --> 00:22:19,880 Suze: get you to do it now and it's gonna stay 395 00:22:19,880 --> 00:22:23,709 Suze: that way even if they lower rates. So there you go. 396 00:22:24,000 --> 00:22:25,369 KT: OK, Suze, that's a wrap. 397 00:22:25,520 --> 00:22:26,349 Suze: I don't think so. 398 00:22:26,520 --> 00:22:27,349 KT: Oh no. 399 00:22:28,000 --> 00:22:28,479 Suze: Yeah, you're right. 400 00:22:28,479 --> 00:22:33,319 KT: Oh no, she's doing it. She's bringing back the quizzes. 401 00:22:33,359 --> 00:22:37,109 Suze: So this is where I asked KT a question. 402 00:22:37,619 --> 00:22:41,359 Suze: And all of you are being asked the same question, 403 00:22:41,400 --> 00:22:46,160 Suze: and I want you to be able to answer this question. 404 00:22:46,410 --> 00:22:52,209 Suze: This is from Doctor SD. All right. Hi ladies, I 405 00:22:52,209 --> 00:22:54,929 Suze: love listening to the way the two of you interact. 406 00:22:55,010 --> 00:22:58,089 Suze: Oh yeah, like today? Anyway, it is so much fun 407 00:22:58,089 --> 00:23:01,770 Suze: in addition to being a learning experience. I just listened 408 00:23:01,770 --> 00:23:05,969 Suze: to both Roth podcasts together. Did I do this right? 409 00:23:06,520 --> 00:23:13,599 Suze: I am over 65. OK, I opened a Roth in 1994. 410 00:23:14,369 --> 00:23:17,130 Suze: It had about $60,000 in it. 411 00:23:17,729 --> 00:23:24,149 Suze: So I opened a Roth on January 10, 2025 and 412 00:23:24,150 --> 00:23:28,819 Suze: transferred everything from my Schwab account that I had opened 413 00:23:29,030 --> 00:23:34,410 Suze: in 1994 to a new account at Fidelity feeling it 414 00:23:34,410 --> 00:23:37,660 Suze: was time to consolidate. So KT, just to be clear, 415 00:23:38,469 --> 00:23:43,669 Suze: this person is 65. They opened a Roth in 1994 416 00:23:43,670 --> 00:23:47,629 Suze: at Schwab. The beginning of this year, they opened up 417 00:23:47,630 --> 00:23:53,030 Suze: another Roth at Fidelity, and now they want to transfer 418 00:23:53,030 --> 00:23:57,479 Suze: the money from the Schwab account to the Roth account 419 00:23:57,479 --> 00:24:00,389 Suze: at Fidelity. Here's the question: 420 00:24:01,339 --> 00:24:08,859 Suze: Right after that, I converted my traditional IRA about $30,000 421 00:24:08,859 --> 00:24:12,489 Suze: into the Roth, and I know I will owe taxes. 422 00:24:12,819 --> 00:24:16,859 Suze: The conversion has its own 5 year clock which I 423 00:24:16,859 --> 00:24:20,530 Suze: read starting January 1st of the year I did the conversion. 424 00:24:21,020 --> 00:24:25,459 Suze: So in my case, can I withdraw the money I converted. 425 00:24:25,880 --> 00:24:29,329 Suze: But I have to wait 5 years to withdraw any 426 00:24:29,329 --> 00:24:33,599 Suze: earnings on the converted amount. Is that right? 427 00:24:33,689 --> 00:24:34,920 KT: I believe, yes. 428 00:24:35,250 --> 00:24:36,650 Suze: You're thinking about this? 429 00:24:36,890 --> 00:24:37,659 KT: Yeah, I think. 430 00:24:38,290 --> 00:24:38,649 Suze: Again, she's... 431 00:24:38,729 --> 00:24:42,089 KT: Wait, wait, wait, wait, hold on, 65. 432 00:24:44,280 --> 00:24:44,290 KT: Hm. 433 00:24:45,660 --> 00:24:50,489 Suze: And she had a Roth all the way back to 1994. 434 00:24:51,979 --> 00:24:55,459 KT: I think that um, I think the doctor's exempt 435 00:24:56,339 --> 00:24:59,890 KT: from having to owe anything at this point. 436 00:25:00,170 --> 00:25:04,698 Suze: Ding ding ding ding. Because when you converted, Doc, 437 00:25:05,319 --> 00:25:10,089 Suze: into a Roth IRA that had already met the 5 438 00:25:10,089 --> 00:25:14,358 Suze: year time clock and you are over 59 and a half, 439 00:25:14,719 --> 00:25:19,119 Suze: you can take anything you want out without taxes or 440 00:25:19,119 --> 00:25:21,599 Suze: penalties whatsoever. 441 00:25:21,839 --> 00:25:24,880 KT: I learned um from all of Suzy's Roth lessons that 442 00:25:24,880 --> 00:25:31,170 KT: 59.5 is a really magic number everyone just needs to remember. 443 00:25:31,170 --> 00:25:31,959 Suze: And... 444 00:25:32,550 --> 00:25:36,599 Suze: a Roth that has been open for at least 5 years. 445 00:25:36,869 --> 00:25:42,689 Suze: All right, KT, now that's a... that's a Rothy, Frothy wrap. 446 00:25:43,030 --> 00:25:46,319 Suze: All right, everybody, so until Sunday. 447 00:25:46,839 --> 00:25:49,439 Suze: Though it looks like we have a hurricane possibly coming 448 00:25:49,439 --> 00:25:49,650 Suze: our 449 00:25:49,650 --> 00:25:50,079 Suze: way. 450 00:25:50,239 --> 00:25:51,880 KT: Yeah, we're in the season, Suze. 451 00:25:52,010 --> 00:25:55,938 Suze: So there's one this Invest 94, I think it is. 452 00:25:55,949 --> 00:26:00,839 Suze: Isn't looking so good for us. So hopefully if everything 453 00:26:00,839 --> 00:26:02,958 Suze: goes the way it should because we're on our way 454 00:26:02,959 --> 00:26:07,589 Suze: back now to the island now that I have flat hair. 455 00:26:09,560 --> 00:26:12,760 Suze: So anyway, and so we'll see what happens, but hopefully 456 00:26:12,760 --> 00:26:16,919 Suze: Sunday we'll be here with a Suze School. I'll be here. 457 00:26:16,920 --> 00:26:18,780 KT: And happy birthday, Nicky. 458 00:26:19,000 --> 00:26:21,849 Suze: Happy birthday, Nicky. Happy Rosh Hashana everybody. 459 00:26:22,920 --> 00:26:23,719 KT: Happy New Year. 460 00:26:23,839 --> 00:26:26,150 Suze: Right, Happy New Year and 461 00:26:26,589 --> 00:26:28,790 Suze: Until then, there's only one thing that we want you 462 00:26:28,790 --> 00:26:30,150 Suze: to remember, and it is this: 463 00:26:30,150 --> 00:26:33,339 KT: People first, then money, then things. 464 00:26:33,510 --> 00:26:38,079 Suze: Now you stay safe, healthy, and secure. Bye bye now.