Suze: We
Suze: March 2nd, 2025. Welcome everybody to the Women and Money
Suze: podcast as well as everybody smart enough to listen. Suze
Suze: O here, and today is Suze School, and here's what
Suze: I want you to know. First of all, take out
Suze: your notebooks because I think you're gonna want to write
Suze: things down.
Suze: Second, I'm going to touch on interest rates. Then the
Suze: stock market, and I'm sure many of you are just
Suze: freaked when it comes to Palantir.
Suze: Even though I told you, don't be surprised.
Suze: To see it down at 75 or 85, but that's
Suze: another story. And if we have time, I will touch
Suze: on real estate.
Suze: So let's begin. Have you been watching interest rates?
Suze: Oh, you haven't, have you, because interest rates don't concern
Suze: you unless of course you have a CD or a
Suze: Treasury maturing, which I'm going to also talk to you
Suze: about in a second, but currently interest rates are coming down.
Suze: For instance, the one year treasury is all the way
Suze: down at about 4.09%.
Suze: The two-year treasury is at about 3.9%, and the 10-year
Suze: treasury is 4.2%. OK.
Suze: It would not shock me on any level if the
Suze: 10 year treasury goes down to 4%, which would be really,
Suze: really great because then mortgage rates would start to trend down.
Suze: Will they trend down enough for many of you who
Suze: are willing to sell the house that you currently have
Suze: at a 2.5 or 2 3/4% mortgage to possibly buy
Suze: a new one at 5.5%?
Suze: 6%, not exactly sure, but we will see. Let's get
Suze: back to interest rates and why I want to talk
Suze: to you about this.
Suze: As you know, many of you one year ago purchased
Suze: one year certificates of deposits. In fact, many of you
Suze: purchased those one year certificates of deposits at Alliant Credit Union,
Suze: who sponsors this podcast. Now,
Suze: what's interesting is that in this month those CDs are
Suze: going to mature and you are going to have a
Suze: choice of what should you do with it.
Suze: Should you roll it over? Should you look somewhere else?
Suze: What are you going to do? Currently, the one year
Suze: rate for new customers, for people just doing it.
Suze: The one year rate is at 4.25%, not bad on
Suze: any level, however, and listen to me closely. I had
Suze: a long talk the other day with the powers that
Suze: be at Alliant Credit Union, and they are making a
Suze: special offer as they normally do do for the Women
Suze: and Money podcast listeners, and here is how it works.
Suze: If you decide to roll over into another one year.
Suze: Certificate of deposit with Alliant Credit Union. You will get 4.35%
Suze: for amounts under $75,000 or 4.4%.
Suze: For amounts of $75,000 or over, however, here is the
Suze: real kicker if you decide to put in new money.
Suze: Not money that you're rolling over but actually add to it,
Suze: you will get those interest rates as well. I personally
Suze: think those are great rates for a one year certificate
Suze: of deposit, bar none, however, I want you to listen
Suze: to me now.
Suze: As you know, with Alliant Credit Union, unlike any other
Suze: credit union out there, does this crazy thing when it
Suze: comes to their maturities with CDs. When you get a CD,
Suze: they have a 12 month currently at 4.25%, a 2
Suze: year for 3.80%. OK.
Suze: Listen to me closely now.
Suze: They do this crazy thing where if you decide to
Suze: get a 12 month CD you can stagger the maturities
Suze: of that from 12 months to 13 months. You could
Suze: choose 1415, 16, or 17 months if you were to
Suze: then choose, you have to talk to them when you're
Suze: doing this, a 17 month maturity.
Suze: It matures in 17 months and 30 days, and you
Suze: would be locking in either 4.35% or 4.40% for that
Suze: entire amount of time versus 3.8% for a two year.
Suze: So you're almost going to be able to get a
Suze: 2 year certificate of deposit at Alliant Credit Union.
Suze: It's only 17 months and 30 days.
Suze: But get a significantly higher interest rate. If I were you,
Suze: I would seriously consider doing that. So again, for those
Suze: of you who do have certificates of deposits with Alliant
Suze: Credit Union that are maturing the month of March.
Suze: So I'm addressing just you now, just those of you
Suze: who have that.
Suze: You can if you roll it over, you will get 4.35%
Suze: for under $75,000 4.4 for amounts $75,000 and over, and
Suze: that will include if you want to add any additional
Suze: money to those CDs just.
Suze: That simple and you again can change your maturity if
Suze: you want from 12 months anywhere up to 17 months.
Suze: So I just wanted to tell you that you would
Suze: go to myalliant.com to check it out, or better yet,
Suze: call them and talk to them directly about this.
Suze: Next topic, the stock market.
Suze: Now, I'm sure all of you, like I said in
Suze: the introduction to this podcast, you want me to talk
Suze: about talent here, but the truth of the matter, it's
Suze: far more than just one stock.
Suze: What have I always told you is the main internal
Suze: obstacle to wealth.
Suze: The main internal obstacle to wealth is fear.
Suze: Fear everybody just that simple.
Suze: And what are people afraid of right now? I want
Suze: you to think about it. Half this world seems to
Suze: be afraid that they're absolutely going to lose their job
Suze: if they work for the federal government.
Suze: Even if you don't work for the federal government, you're
Suze: afraid if you work for a retailer, retailers everywhere are
Suze: starting to shutter their businesses and or lay off thousands
Suze: of people.
Suze: So this universal fear that you hear on the news
Suze: all the time or your friends are telling you permeates
Suze: the atmosphere.
Suze: And what we see happening because of that, the economy
Suze: now is starting to go down, go down in what way?
Suze: People are stopping to shop. Retail sales are down. Real
Suze: estate is down. Things are starting to happen where we're
Suze: going down rather than going up, just that simple. Then
Suze: we have things where the cost of meat is going up.
Suze: The cost of eggs still going up. Everybody is afraid
Suze: that measles is going to spread throughout the entire United States.
Suze: That another possible pandemic may happen with Ebola from across
Suze: the sea.
Suze: And that we don't have the infrastructure to handle any
Suze: of it and inwardly we are all afraid. We have
Suze: heard that they're going to absolutely cut the defense budget
Suze: and so in our heads and everybody else start to say, well,
Suze: that means they are going to cut stocks like Palantir
Suze: and things like that. So rumors are abound everywhere.
Suze: Everybody is afraid we see on TV what recently just
Suze: happened between the United States and Ukraine, and what does
Suze: that mean for all of us. So this is not
Suze: exactly the most peaceful, wonderful time.
Suze: Energy goes everywhere. You cannot stop it and when energy
Suze: is frenetic, when energy is afraid, when energy is just going, oh,
Suze: what am I gonna do if something happens?
Suze: That affects everything, and what it affects is the stock
Suze: market because a lot of people are afraid, oh my God,
Suze: everything's going to go to hell. Where should I take
Suze: my money? Do I need to take it to a
Suze: Swiss bank account? Do you know that's my number one
Suze: email right now that I'm getting, Suze.
Suze: How do I open up a Swiss bank account? OK, now,
Suze: what does that tell you? In the entire time that
Suze: I've done this podcast, the Suze Orman show, nobody has
Suze: ever asked me that question before, and now people are
Suze: asking that question.
Suze: Why would they ask that question? It's because they are afraid.
Suze: So when you are afraid and you have stocks that
Suze: have incredible gains in them, you start to take them.
Suze: And then when you start to take them and you
Suze: see the stocks start to go down, then you go, Oh,
Suze: I better take them, and everybody jumps on the bandwagon.
Suze: Prices go down.
Suze: You feel good for a while, cause maybe you sold
Suze: Palantir at 95, and now here it's at 85 and
Suze: you feel like such a winner. Are you kidding me?
Suze: Again, remember you are not investing with money that you
Suze: hopefully need right away. You are investing with money that
Suze: you don't need for the long run. And while it's true,
Suze: maybe you made good money in Palantir or whatever stocks
Suze: you may happen to have sold outside of a retirement account.
Suze: Did you take into consideration whether you're gonna be paying
Suze: ordinary income tax on that gain or capital gains tax,
Suze: cause if you're going to pay ordinary income tax, which
Suze: simply means
Suze: That you didn't hold it for at least one year
Suze: or longer, you might be losing 30 or 40% of
Suze: that gain to taxes. Let's say you bought it at
Suze: $50 a share. It's now at $100 a share when
Suze: you sold it. You haven't held it for at least
Suze: a year or longer. Let's just say you're in the 30%
Suze: combined federal and state income tax bracket.
Suze: So that means $15 of that $50 gain is gonna
Suze: go to taxes, so to speak, and that means rather
Suze: than selling at $100 after taxes you have $85 which
Suze: is where it is right now.
Suze: Am I making sense to you for a second? I
Suze: would like you to think back to 2022. Do you
Suze: remember what happened in 2022? Do you?
Suze: Well, if you don't, let me just remind you, the
Suze: magnificent seven stocks like Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia
Suze: and Tesla had one of the most challenging years ever.
Suze: Collectively they totally all tanked and underperformed the market and
Suze: why was that? Because interest rates were rising and they
Suze: started to go down. There was economic uncertainty, valuation concerns,
Suze: the same thing kind of is now anyway, and they tanked.
Suze: In fact, they weren't known as the Magnificent Seven, everybody.
Suze: Do you know that they were referred to as the
Suze: Stinky 7.
Suze: Because of how badly they had gone down, and I
Suze: remember looking at them and going, Are you kidding me?
Suze: But a year later, for instance, Nvidia that had been obliterated,
Suze: went up 240% in 2023.
Suze: And then as time went on, they all started to skyrocket,
Suze: and if you had purchased them in 2022,
Suze: You would have in the following 2 years made an
Suze: absolute fortune to put it mildly, all right.
Suze: We are going through a time like that right now
Suze: with these stocks, but you did not buy these stocks, everybody,
Suze: for you to simply buy it and then sell it
Suze: a few months later.
Suze: A year later, 2 years later.
Suze: If the stocks are good, and I've said this to
Suze: you before, if the stock is good, management is good,
Suze: product is good, product is something that is going to
Suze: be very futuristic, and all the other things that go
Suze: into making a great stock.
Suze: You want to build wealth. You just don't want gains,
Suze: and then what are you going to do with them, OK?
Suze: You want wealth. Now that doesn't mean that when a
Suze: stock skyrockets, that if you need the money, you don't
Suze: take some off the table, especially if the stock has
Suze: gone up so high.
Suze: That it's now creating too big of a position in
Suze: your overall portfolio in just one stock.
Suze: In English, maybe you have too much money at risk,
Suze: and then you have to take some off the table
Suze: to invest somewhere else or put in a money market fund,
Suze: keep it safe and sound, and if the stock happens
Suze: to tank again, you buy it back.
Suze: But you have to understand.
Suze: When do you keep a stock? When do you sell it,
Suze: and when do you add to it? Now let's go
Suze: back to Palantir. One of the reasons Palantir obviously got
Suze: hit so hard, went all the way up to 125,
Suze: way too fast. Then now is down at 85. That
Suze: is a dramatic decline, everybody.
Suze: But if it never had gone up to 125 and
Suze: it was just at 85, all of you would still
Suze: be absolutely thrilled given that many of you bought it
Suze: at 10, at 20, at 40, or 50, and you
Suze: would still have a tremendous gain.
Suze: Those that are freaking are those that it went up
Suze: to 125. Then it went down, you bought some more
Suze: maybe like I did at 113, then it went down
Suze: some more to 98 and maybe you bought more like
Suze: I did. And now, as I said in a podcast,
Suze: I think it was last week, don't be surprised to
Suze: see it at 75 or 85, then it went down.
Suze: And I'm buying some more, but I have the funds
Suze: to continuously to buy more in large chunk moves. 113
Suze: to 98 is a good move. 98 to 85, that's
Suze: a significant move, so I bought more.
Suze: And if it goes from 85 to 75, I will
Suze: buy more.
Suze: But the big question at hand is, do you continuously
Suze: have money to buy more, because if you don't, you
Suze: have to be selective. $1 cost averaging as to how
Suze: often do you buy it because you're not going to
Suze: catch it at its bottom.
Suze: Again this stock can go anywhere it wants to.
Suze: So you have to decide, you have another $300 that
Suze: you can put into Palantir totally.
Suze: So all right, put $50 at a time in it.
Suze: So that you have at least 6 more times that
Suze: you can buy the stock if it continues to go down.
Suze: Are you understanding what I'm saying? Where you get in
Suze: big trouble is if you bought it at 125 and
Suze: you don't have any more money to put into it,
Suze: and now you're down at 85. That is a serious mistake, everybody.
Suze: Which is why dollar cost averaging is absolutely essential. Value
Suze: cost averaging is absolutely essential, and that is why in
Suze: markets like this you do not, and I repeat, you
Suze: do not want to do lumps.
Suze: Some investing, which means, oh, I have to buy the stock.
Suze: I just have to buy it. It's at $125. It's
Suze: gonna go to $150. I already missed it and you
Suze: buy it and let's say you had $5000 to invest
Suze: in it and you put all $5000 in at once.
Suze: You cannot make a bigger mistake than that, and you
Suze: may think that you're doing great if it continues up.
Suze: But not on a stock that has gone straight up.
Suze: Are you understanding? So am I freaked about Palantir? I
Suze: am not.
Suze: Do I wish it had stayed up there? No, cause
Suze: I like that it's come down cause I can keep
Suze: buying more, but I have the funds to do so.
Suze: So the question at hand to all of you, do
Suze: you have the funds to do so?
Suze: And do you have other stocks besides Palantir?
Suze: So you just need time, but besides time you also
Suze: need diversification cause you cannot put all of your money
Suze: into just the magnificent seven and think that's diversification. You
Suze: need other kinds of stocks, and if you don't know
Suze: which stocks to buy, then buy an exchange traded fund
Suze: like Vu VOO or Spider SPY or the Vanguard Total
Suze: Stock Market Index VTI, just get some diversification in there.
Suze: So that you're not 100% exposed to the magnificent seven.
Suze: So if you did that and you had diversification.
Suze: You won't be so freaked that one stock is down
Suze: considerably right now, but your other stock should be relatively OK.
Suze: All right, so I'm asking you just to realize Palantir
Suze: is still great.
Suze: What I found fascinating is that the stock was down
Suze: even more on Friday. It was down to about 79,
Suze: and right after the argument that happened at the White
Suze: House ended Nvidia that was down 3 or 4 at
Suze: that moment in time, both those stocks finished up right
Suze: after that.
Suze: Don't ask me why that happened, but I found that
Suze: very interesting. Is the government going to need what Nvidia
Suze: and Palantir manufacture, possibly.
Suze: So it's just something for you to think about and
Suze: not get freaked about. All right, I was gonna talk
Suze: to you a little bit about real estate, but I
Suze: think I'm gonna hold that till next Sunday's Suze School.
Suze: And continue to see what's happening with it, but just
Suze: to give you a little bit of a preview, which is,
Suze: I don't think the real estate market is doing very
Suze: good on any level, so just be careful before you
Suze: jump in right now and buy a home. That's all
Suze: I'm going to say at this point in time.
Suze: So there's two things that I just want you to consider.
Suze: I want you again to consider what's happening with interest rates. Again,
Suze: Allliant customers don't miss the opportunity that's there for you
Suze: if you have a certificate of deposit that is maturing
Suze: in the month of March 2025 and you want to
Suze: renew it, you best think about the offer that they're
Suze: making you because I think it's a pretty great offer
Suze: number one.
Suze: And also the stock market just understand why it's doing
Suze: what it's doing, but overall I still think that many stocks,
Suze: as well as the overall markets are still going to
Suze: go up this year, but time will tell.
Suze: So until Thursday, there's only one thing that I want
Suze: you to remember when it comes to your money, and
Suze: it's this people first, then money, then things. Now you
Suze: stay safe. Bye-bye. We are.