1 00:00:00,519 --> 00:00:00,939 Music: Music (in). 2 00:00:28,709 --> 00:00:34,668 Suze: July 9th, 2023. Welcome everybody to the Women and Money 3 00:00:34,680 --> 00:00:41,060 Suze: podcast as well as everybody smart enough to listen. Today 4 00:00:41,069 --> 00:00:42,619 Suze: is Suze School. Now, 5 00:00:43,389 --> 00:00:46,319 Suze: today I was planning, I don't even know why I 6 00:00:46,330 --> 00:00:50,380 Suze: plan to do anything because it always changes. Everybody will 7 00:00:50,389 --> 00:00:53,619 Suze: tell you I always change because I'm a Gemini, but 8 00:00:53,630 --> 00:00:58,340 Suze: I always change, especially a podcast based on what I 9 00:00:58,349 --> 00:01:02,180 Suze: feel people really want to know in the moment. 10 00:01:02,869 --> 00:01:07,540 Suze: So today I was going to do a Suze school 11 00:01:07,550 --> 00:01:14,730 Suze: on the differences between irrevocable trusts and revocable trust, especially 12 00:01:14,739 --> 00:01:19,379 Suze: when it comes to special needs kids because three or 13 00:01:19,389 --> 00:01:21,019 Suze: four of you wrote in and I think it may 14 00:01:21,029 --> 00:01:23,699 Suze: have been on the wall that you wanted to learn 15 00:01:23,709 --> 00:01:24,540 Suze: about it. 16 00:01:25,220 --> 00:01:28,259 Suze: And so that's what I was gonna do. I think 17 00:01:28,269 --> 00:01:30,519 Suze: I even said to you that's what I'm gonna do 18 00:01:30,760 --> 00:01:32,809 Suze: except last Thursday, 19 00:01:33,569 --> 00:01:36,500 Suze: we did a Suze and KT show 20 00:01:37,290 --> 00:01:40,529 Suze: and there we were and the quizzie for KT was 21 00:01:40,540 --> 00:01:44,489 Suze: all about this person who wanted to take money out 22 00:01:44,500 --> 00:01:50,690 Suze: of their Roth 401k just $45,000 to pay off a, HELOC, 23 00:01:51,410 --> 00:01:54,599 Suze: a home equity line of credit that has gone up 24 00:01:54,610 --> 00:01:58,860 Suze: in interest from 3% to 8%. And the truth of 25 00:01:58,870 --> 00:02:01,760 Suze: the matter is given what's going to happen with the 26 00:02:01,769 --> 00:02:06,319 Suze: feds and everything. It's gonna even go higher than that everybody. 27 00:02:06,970 --> 00:02:09,929 Suze: And I thought I answered the question simply by saying, 28 00:02:09,940 --> 00:02:13,850 Suze: in your situation, you cannot just do a withdrawal, you 29 00:02:13,860 --> 00:02:17,460 Suze: need to do what you need to do alone. 30 00:02:18,229 --> 00:02:22,339 Suze: And a lot of you wrote in and said to me, Suze, 31 00:02:23,008 --> 00:02:28,138 Suze: why can't we take out money from a Roth 401k? 32 00:02:28,149 --> 00:02:32,770 Suze: Exactly like we take money out of a Roth IRA. 33 00:02:32,940 --> 00:02:37,339 Suze: I thought that's why we did a Roth 401k. 34 00:02:38,190 --> 00:02:45,330 Suze: So before I begin Suze School, when I say 401k, obviously, 35 00:02:45,339 --> 00:02:50,479 Suze: a 401k is an employer sponsored retirement plan, 36 00:02:51,199 --> 00:02:57,130 Suze: but A 401k is for profit corporations. A Roth 403 37 00:02:57,139 --> 00:03:03,759 Suze: B is for nonprofit corporations and a Roth TSP is 38 00:03:03,770 --> 00:03:07,168 Suze: for government workers as well as the military. 39 00:03:07,960 --> 00:03:12,149 Suze: So when I say a Roth 401k in the Suze School, 40 00:03:12,160 --> 00:03:17,830 Suze: please know that. I also mean A Roth 403 B 41 00:03:17,839 --> 00:03:24,080 Suze: and A Roth TSP. Got that everybody. All right. Take 42 00:03:24,089 --> 00:03:28,529 Suze: out your Suze notebooks because you're gonna need it for 43 00:03:28,538 --> 00:03:29,210 Suze: this one 44 00:03:29,960 --> 00:03:33,168 Suze: To begin with, I don't want to assume that all of, 45 00:03:33,179 --> 00:03:37,350 Suze: you know what a Roth is but you need to 46 00:03:37,360 --> 00:03:40,910 Suze: understand that when you have a Roth retirement account, 47 00:03:41,729 --> 00:03:47,130 Suze: whether it's an individual retirement account or a 401k, when 48 00:03:47,139 --> 00:03:50,740 Suze: you see the word Roth, that means that it has 49 00:03:50,750 --> 00:03:55,899 Suze: been funded with money that you have already paid taxes on. 50 00:03:56,660 --> 00:04:01,139 Suze: If it is not a Roth IRA or a Roth 401k, 51 00:04:01,300 --> 00:04:07,550 Suze: then it's what's called a traditional Ira or a traditional 401k, 52 00:04:07,559 --> 00:04:10,800 Suze: which means it has been funded with money. You have 53 00:04:10,809 --> 00:04:13,949 Suze: never paid taxes on 54 00:04:15,229 --> 00:04:19,200 Suze: for a Roth. The reason that I will always tell 55 00:04:19,209 --> 00:04:22,200 Suze: you and I will believe forever in a day, no 56 00:04:22,209 --> 00:04:26,170 Suze: matter how much money you make. That, the reason a 57 00:04:26,178 --> 00:04:31,399 Suze: Roth is fabulous is because you can contribute money to 58 00:04:31,410 --> 00:04:31,760 Suze: it 59 00:04:32,420 --> 00:04:35,440 Suze: and it will grow and grow and grow because you 60 00:04:35,450 --> 00:04:39,269 Suze: have invested it hopefully. And when you go to take 61 00:04:39,279 --> 00:04:41,349 Suze: it out later on in life, 62 00:04:42,029 --> 00:04:47,000 Suze: especially if you are 59.5 years of age or older, 63 00:04:47,010 --> 00:04:50,420 Suze: especially if the account has been open for at least 64 00:04:50,428 --> 00:04:56,320 Suze: five years, every single penny that you have in that Roth, 65 00:04:56,738 --> 00:04:59,220 Suze: you could take out in one lump sum if you 66 00:04:59,230 --> 00:05:05,089 Suze: wanted to. Absolutely tax free all of it. If you 67 00:05:05,100 --> 00:05:07,200 Suze: were to die at any time 68 00:05:08,089 --> 00:05:11,500 Suze: and you leave it to a beneficiary, they can take 69 00:05:11,510 --> 00:05:15,339 Suze: it all out absolutely tax free. 70 00:05:15,988 --> 00:05:21,640 Suze: That is not how a traditional IRA or a traditional 71 00:05:21,649 --> 00:05:23,678 Suze: 401k works. 72 00:05:24,500 --> 00:05:29,609 Suze: You cannot take money out any time without taxes. In fact, 73 00:05:29,678 --> 00:05:35,130 Suze: if you take money out prior to the age of 59.5, 74 00:05:35,140 --> 00:05:38,959 Suze: you will pay ordinary income taxes on it as well 75 00:05:38,970 --> 00:05:43,869 Suze: as a 10% penalty. If you die and you leave 76 00:05:43,880 --> 00:05:48,989 Suze: it to your beneficiaries, they will pay ordinary income taxes 77 00:05:49,000 --> 00:05:52,730 Suze: on whatever money they take out as well. 78 00:05:53,100 --> 00:05:58,579 Suze: So we're just gonna concentrate however, for this podcast on 79 00:05:58,589 --> 00:06:06,010 Suze: Roth IRAs and how they differ from Roth 401k Plans 80 00:06:06,850 --> 00:06:10,880 Suze: In a Roth IRA, which is an individual retirement account 81 00:06:11,660 --> 00:06:14,480 Suze: where you can open it up at any brokerage firm 82 00:06:14,488 --> 00:06:16,829 Suze: credit union, any place that you want 83 00:06:17,529 --> 00:06:21,420 Suze: within a Roth IRA, write this down, 84 00:06:22,079 --> 00:06:25,690 Suze: any money that you originally contribute, 85 00:06:27,160 --> 00:06:31,368 Suze: you can take out any time you want without taxes 86 00:06:31,380 --> 00:06:34,570 Suze: or penalties whatsoever. 87 00:06:35,470 --> 00:06:38,119 Suze: Let's just assume for an example, 88 00:06:38,920 --> 00:06:42,600 Suze: you're still young, maybe you're 40 years of age 89 00:06:43,260 --> 00:06:45,869 Suze: and you've been putting in only, even though you can 90 00:06:45,880 --> 00:06:49,230 Suze: put in more, you've been putting in only $5000 a 91 00:06:49,238 --> 00:06:49,868 Suze: year 92 00:06:51,109 --> 00:06:56,130 Suze: when you are 40 41 and 43. So now you 93 00:06:56,140 --> 00:07:02,510 Suze: put in your original contributions are $15,000 in total. 94 00:07:03,299 --> 00:07:07,659 Suze: But the account value in your Roth IRA right now 95 00:07:07,678 --> 00:07:14,790 Suze: is $18,000. That extra $3000 is what you made by 96 00:07:14,799 --> 00:07:16,670 Suze: investing this money. 97 00:07:17,609 --> 00:07:21,750 Suze: And now you need, you're 43 years of age, you 98 00:07:21,760 --> 00:07:24,660 Suze: need to take some money out. 99 00:07:25,619 --> 00:07:32,100 Suze: You can take out anything up to the $15,000 that 100 00:07:32,109 --> 00:07:39,339 Suze: you originally contributed without taxes or penalties whatsoever. 101 00:07:41,010 --> 00:07:44,019 Suze: That means it's your money, you can have it back. 102 00:07:44,029 --> 00:07:45,410 Suze: It's not a big deal. 103 00:07:46,570 --> 00:07:49,859 Suze: You don't have to be 59.5. You don't have to 104 00:07:49,869 --> 00:07:53,070 Suze: have opened the account for at least five years. Your 105 00:07:53,079 --> 00:07:58,320 Suze: original contributions, you can take out at any time without 106 00:07:58,329 --> 00:08:00,380 Suze: taxes or penalty. 107 00:08:01,149 --> 00:08:04,940 Suze: It is that $3000 of earnings that you made on 108 00:08:04,950 --> 00:08:10,600 Suze: that $15,000 of your original contributions that you cannot touch 109 00:08:10,609 --> 00:08:16,059 Suze: till you are 59.5 years of age or older. And 110 00:08:16,480 --> 00:08:19,399 Suze: the account has got to have been opened for at 111 00:08:19,410 --> 00:08:21,660 Suze: least five years 112 00:08:21,970 --> 00:08:27,100 Suze: after that. You can take 100% of everything that's in there, 113 00:08:27,109 --> 00:08:34,468 Suze: your original contributions and your earnings without taxes or penalties whatsoever. 114 00:08:34,989 --> 00:08:39,179 Suze: And again, upon your death, all of it goes to 115 00:08:39,190 --> 00:08:42,059 Suze: your beneficiaries tax free. 116 00:08:43,010 --> 00:08:49,200 Suze: That is not how a 401k Roth works. Let's just 117 00:08:49,210 --> 00:08:51,940 Suze: say the exact same scenario. 118 00:08:53,190 --> 00:08:57,599 Suze: You've had the account for three years and you've only 119 00:08:57,609 --> 00:09:01,219 Suze: been putting in, let's just say $5000 a year, even 120 00:09:01,229 --> 00:09:04,419 Suze: though you could put in way more than that, you've 121 00:09:04,429 --> 00:09:10,119 Suze: only been contributing to your Roth 401k, $5000 a year 122 00:09:10,760 --> 00:09:16,530 Suze: for the past three years. You're now 43 years of age. Ok. 123 00:09:17,429 --> 00:09:20,440 Suze: So you wanna withdraw 124 00:09:21,229 --> 00:09:28,169 Suze: $5000 from your Roth 401k thinking, oh, you can do 125 00:09:28,179 --> 00:09:31,409 Suze: that because that's how a Roth IRA works. You could 126 00:09:31,419 --> 00:09:34,959 Suze: easily take up to that $15,000 out because it's your 127 00:09:34,969 --> 00:09:38,979 Suze: original contributions in a Roth IRA. That's again, not how 128 00:09:38,989 --> 00:09:40,820 Suze: it works for a Roth 401k 129 00:09:41,969 --> 00:09:47,179 Suze: because you are not at least 59.5 years of age 130 00:09:47,280 --> 00:09:51,439 Suze: and the account has not been opened for at least 131 00:09:51,450 --> 00:09:57,140 Suze: five years. The way they figure out if you withdraw 132 00:09:57,150 --> 00:10:01,260 Suze: money while in fact, you are still working for them, 133 00:10:01,890 --> 00:10:06,059 Suze: it is called an unqualified withdrawal. 134 00:10:06,690 --> 00:10:12,479 Suze: What an unqualified withdrawal means is that whatever amount you 135 00:10:12,489 --> 00:10:17,520 Suze: take out before you are 59.5 is a withdrawal and 136 00:10:17,530 --> 00:10:20,880 Suze: the account has been opened for at least five years. 137 00:10:21,260 --> 00:10:26,559 Suze: The amount that you take out will be prorated 138 00:10:27,200 --> 00:10:31,909 Suze: between how much is made up of your original contribution 139 00:10:32,320 --> 00:10:35,650 Suze: and how much of that withdrawal is made up of 140 00:10:35,659 --> 00:10:37,250 Suze: your earnings. 141 00:10:38,099 --> 00:10:42,390 Suze: Don't freak out on me here. This is the rule 142 00:10:42,400 --> 00:10:45,390 Suze: and you need to know it so you don't make 143 00:10:45,400 --> 00:10:46,348 Suze: a mistake. 144 00:10:47,070 --> 00:10:52,320 Suze: So in this particular case, here's how you figure it out. 145 00:10:53,700 --> 00:11:00,200 Suze: You take the $3000 of earnings in this example and 146 00:11:00,210 --> 00:11:01,419 Suze: you divide it 147 00:11:02,059 --> 00:11:09,228 Suze: by the $18,000 that you have in the Roth 401k 148 00:11:10,109 --> 00:11:12,719 Suze: and you will find that that comes out to be 149 00:11:12,729 --> 00:11:16,478 Suze: approximately 16.7%. 150 00:11:17,559 --> 00:11:24,020 Suze: That means of the $5000 that you are withdrawing. 151 00:11:24,710 --> 00:11:28,059 Suze: 16.7% of that 152 00:11:28,760 --> 00:11:32,609 Suze: are $835 153 00:11:33,250 --> 00:11:38,309 Suze: is going to be taxable to you as ordinary income. 154 00:11:38,780 --> 00:11:43,439 Suze: Plus you are going to have to pay a 10% 155 00:11:43,450 --> 00:11:51,760 Suze: penalty to the federal government on $835. Got that. 156 00:11:52,570 --> 00:11:56,299 Suze: So it is not the same. What that means to 157 00:11:56,309 --> 00:12:00,539 Suze: you is that of the $5000 that you want to withdraw, 158 00:12:02,219 --> 00:12:04,820 Suze: you will have to pay taxes and a penalty on 159 00:12:04,830 --> 00:12:13,859 Suze: $835 of it. And $4165 will be tax free to you. 160 00:12:13,989 --> 00:12:16,859 Suze: So you just have to decide, is that worth it 161 00:12:16,869 --> 00:12:19,118 Suze: to you or not? 162 00:12:19,929 --> 00:12:24,098 Suze: The reason why I told the person who sent in 163 00:12:24,109 --> 00:12:26,340 Suze: the quizzie, I'm sorry, I don't remember their name right 164 00:12:26,349 --> 00:12:29,979 Suze: now that the best thing for them to do would 165 00:12:29,989 --> 00:12:32,059 Suze: be to take out a loan 166 00:12:33,119 --> 00:12:40,289 Suze: because they wanted to take out $45,000. They didn't want 167 00:12:40,299 --> 00:12:43,468 Suze: to take out $5000 where the penalties would have been 168 00:12:43,479 --> 00:12:46,669 Suze: on only 800 some odd dollars. They wanted to take 169 00:12:46,679 --> 00:12:50,909 Suze: out $45,000 170 00:12:51,989 --> 00:12:57,400 Suze: and the penalty and the taxes on that most likely 171 00:12:57,409 --> 00:13:01,880 Suze: would not have been worth it on any level. 172 00:13:02,630 --> 00:13:07,569 Suze: So, one of the advantages to a Roth 401k is 173 00:13:07,580 --> 00:13:12,400 Suze: you can also take out loans from a Roth 401k. 174 00:13:12,590 --> 00:13:17,469 Suze: You cannot take a loan from a Roth IRA. You 175 00:13:17,479 --> 00:13:23,159 Suze: can only withdraw money from a Roth IRA that is 176 00:13:23,169 --> 00:13:27,598 Suze: really important for you to seriously understand. 177 00:13:28,409 --> 00:13:31,919 Suze: Now, you may not need this at this point in time, 178 00:13:32,409 --> 00:13:36,459 Suze: but you should absolutely keep this Suze lesson because there 179 00:13:36,469 --> 00:13:40,250 Suze: may come a time where you have a lot of 180 00:13:40,260 --> 00:13:44,840 Suze: money in your Roth 401k and you really need a 181 00:13:44,849 --> 00:13:47,900 Suze: good sum of money, whether it's for a down payment 182 00:13:47,909 --> 00:13:50,679 Suze: on a home or to pay off some bill, whatever 183 00:13:50,690 --> 00:13:51,479 Suze: it may be 184 00:13:52,270 --> 00:13:57,080 Suze: just don't go making the mistake thinking. Oh, I put 185 00:13:57,090 --> 00:14:02,010 Suze: in X amount of money in terms of contributions and 186 00:14:02,020 --> 00:14:05,510 Suze: I therefore can take it out all tax free without 187 00:14:05,520 --> 00:14:09,840 Suze: any penalty. Even though I'm not 59.5 years of age. 188 00:14:09,849 --> 00:14:12,820 Suze: And even though maybe the account hasn't been open for 189 00:14:12,830 --> 00:14:16,718 Suze: five years, you can not. 190 00:14:17,630 --> 00:14:21,000 Suze: All right, that's your Suze School for today. However, 191 00:14:21,719 --> 00:14:24,609 Suze: that doesn't mean the podcast is over. 192 00:14:25,909 --> 00:14:31,710 Suze: Ok. So the jobs report came out on Friday. And 193 00:14:31,719 --> 00:14:37,799 Suze: what that means is that now the Feds get to see, oh, 194 00:14:37,809 --> 00:14:42,239 Suze: is there a strong labor market? Is unemployment going up? 195 00:14:42,250 --> 00:14:45,400 Suze: Is the unemployment staying the same? Is it going down? 196 00:14:45,409 --> 00:14:50,549 Suze: Because remember the goal of the Feds raising the Fed's 197 00:14:50,559 --> 00:14:53,960 Suze: funds rate is to curb inflation. 198 00:14:54,289 --> 00:14:56,780 Suze: And one of the ways that they want to curb 199 00:14:56,789 --> 00:15:02,440 Suze: inflation is by getting the unemployment rate to rise. Nevers 200 00:15:02,450 --> 00:15:06,580 Suze: made sense to me. But ok, because if the unemployment 201 00:15:06,590 --> 00:15:10,719 Suze: rate rises, that means you don't have enough money to 202 00:15:10,729 --> 00:15:14,739 Suze: buy things. If you don't have enough money to buy things, 203 00:15:14,750 --> 00:15:18,580 Suze: then everything starts to come down in price. 204 00:15:19,489 --> 00:15:21,820 Suze: And that's one of the ways they think they can 205 00:15:21,830 --> 00:15:26,359 Suze: solve high inflation even though inflation really is on the 206 00:15:26,369 --> 00:15:29,900 Suze: majority of levels coming down on its own. 207 00:15:30,559 --> 00:15:34,489 Suze: So what is going to happen now, most likely when 208 00:15:34,500 --> 00:15:38,309 Suze: the feds meet again, they are going to raise the 209 00:15:38,320 --> 00:15:40,450 Suze: fed funds rate again, 210 00:15:41,080 --> 00:15:46,150 Suze: maybe 25 basis points, maybe 50 basis points. They probably 211 00:15:46,159 --> 00:15:49,880 Suze: in the next meeting after that will raise it again. 212 00:15:50,369 --> 00:15:53,419 Suze: How does that affect you? It affects you in the 213 00:15:53,429 --> 00:15:55,840 Suze: exact same way that I've been telling you it's going 214 00:15:55,849 --> 00:15:59,650 Suze: to affect you. You're going to see interest rates go 215 00:15:59,659 --> 00:16:03,270 Suze: up and up. The good news, they could go up 216 00:16:03,280 --> 00:16:06,469 Suze: on savings treasuries, things like that, 217 00:16:07,380 --> 00:16:12,070 Suze: but they probably in their own way will go up 218 00:16:12,080 --> 00:16:16,840 Suze: also on mortgages. One of the reasons that you're seeing 219 00:16:16,849 --> 00:16:20,900 Suze: interest rates go up on mortgages right now is because 220 00:16:20,909 --> 00:16:26,250 Suze: the treasuries are going up in interest rate. The 10 221 00:16:26,260 --> 00:16:29,950 Suze: year Treasury is the highest, it's been in a long 222 00:16:29,960 --> 00:16:32,650 Suze: time above 4% a little bit. 223 00:16:32,969 --> 00:16:37,619 Suze: Also, the 30 year Treasury is at about 4%. 224 00:16:38,359 --> 00:16:43,559 Suze: Now a while ago, long time ago, the trend, if 225 00:16:43,570 --> 00:16:48,229 Suze: you looked at the technical indicators, the trend was that 226 00:16:48,239 --> 00:16:50,849 Suze: interest rates were going to go up 227 00:16:51,770 --> 00:16:56,179 Suze: and now they're starting to go up again. However, I'm 228 00:16:56,190 --> 00:17:00,650 Suze: still gonna stick by the 18 month certificate of deposit 229 00:17:01,179 --> 00:17:07,500 Suze: at Alliant Credit Union for 5.15% currently is still a 230 00:17:07,510 --> 00:17:11,699 Suze: fabulous deal. And remember you can have the 18 month, 231 00:17:11,709 --> 00:17:17,199 Suze: 19 month, 2021 22 23 month and lock that in 232 00:17:17,209 --> 00:17:19,180 Suze: if you want. Ok. 233 00:17:20,260 --> 00:17:23,379 Suze: But here's something that I just want to talk to 234 00:17:23,390 --> 00:17:24,589 Suze: all of you about. 235 00:17:25,520 --> 00:17:27,290 Suze: I know the market's been going up. 236 00:17:28,069 --> 00:17:31,399 Suze: I know that everybody is like, oh my God, maybe 237 00:17:31,410 --> 00:17:33,188 Suze: I'm missing out on the market. Maybe I should be 238 00:17:33,199 --> 00:17:35,199 Suze: doing this, maybe I should be doing that 239 00:17:36,209 --> 00:17:42,040 Suze: dollar cost averaging into this market is still the only 240 00:17:42,050 --> 00:17:47,500 Suze: way to go because we don't know how these markets 241 00:17:47,510 --> 00:17:49,899 Suze: are going to react when 242 00:17:51,229 --> 00:17:54,459 Suze: they raise the fed funds rate in a very short 243 00:17:54,469 --> 00:17:55,599 Suze: time from now. 244 00:17:56,599 --> 00:18:03,609 Suze: So just keep dollar cost averaging in terms of energy, 245 00:18:03,619 --> 00:18:08,790 Suze: the price of oil, it's starting to go back up. 246 00:18:08,800 --> 00:18:11,819 Suze: I would not lose faith for those of you who 247 00:18:11,829 --> 00:18:15,930 Suze: are in energy companies. I would just stick by my 248 00:18:15,939 --> 00:18:21,810 Suze: conviction and enjoy the dividends that many of you are getting, 249 00:18:21,819 --> 00:18:24,599 Suze: which really was the main reason you bought them to 250 00:18:24,609 --> 00:18:25,329 Suze: begin with. 251 00:18:25,739 --> 00:18:26,670 Suze: However, 252 00:18:27,400 --> 00:18:30,530 Suze: I want to talk about right now being an all 253 00:18:30,540 --> 00:18:35,160 Suze: or nothing investor. When I say let's do this, let's 254 00:18:35,170 --> 00:18:38,000 Suze: do that, let's do a treasury, let's do an 18 255 00:18:38,010 --> 00:18:41,649 Suze: month certificate of deposit, whatever it may be. I don't 256 00:18:41,660 --> 00:18:45,890 Suze: mean do it with all of your money. 257 00:18:46,900 --> 00:18:50,270 Suze: I mean, do it with some of your money. 258 00:18:51,099 --> 00:18:56,349 Suze: Always keep money on the sideline so that if interest 259 00:18:56,359 --> 00:18:58,510 Suze: rates do go higher, 260 00:18:59,510 --> 00:19:03,420 Suze: then you have money to take advantage of that. 261 00:19:04,430 --> 00:19:09,319 Suze: So don't go putting absolutely everything you have into just 262 00:19:09,329 --> 00:19:14,060 Suze: maybe one energy stock or one certificate of deposit or 263 00:19:14,069 --> 00:19:18,099 Suze: one treasury. Hey, if you want to lock in some 264 00:19:18,109 --> 00:19:21,300 Suze: money right now in the 10 year treasury and trying 265 00:19:21,310 --> 00:19:23,040 Suze: to get it at four, although I think it could 266 00:19:23,050 --> 00:19:26,359 Suze: go maybe to 4.3 but that's besides the point, maybe. 267 00:19:26,369 --> 00:19:28,920 Suze: Yes or maybe no, you want to do that. I 268 00:19:28,930 --> 00:19:31,479 Suze: don't have a problem with that on any level. 269 00:19:32,530 --> 00:19:36,839 Suze: However, don't put everything that you were going to put 270 00:19:36,849 --> 00:19:42,938 Suze: into treasuries right now, into 1 10 year treasury. Let's 271 00:19:42,949 --> 00:19:46,750 Suze: just wait and see what happens. Maybe they will go 272 00:19:46,760 --> 00:19:51,140 Suze: to 5%. Maybe the everything will go a lot higher. 273 00:19:51,760 --> 00:19:54,969 Suze: So I just don't want you to be an all 274 00:19:54,979 --> 00:19:59,560 Suze: or nothing investor. What does nothing mean? Nothing means you 275 00:19:59,569 --> 00:20:03,560 Suze: have your money sitting at some bank paying you 0.1 276 00:20:03,569 --> 00:20:07,909 Suze: or 0.3% interest and you're just leaving it there because 277 00:20:07,920 --> 00:20:12,319 Suze: you're just really too lazy to take advantage of the 278 00:20:12,329 --> 00:20:14,849 Suze: higher interest rates that are out there. 279 00:20:15,479 --> 00:20:18,599 Suze: All of you should at least have your money in 280 00:20:18,609 --> 00:20:22,760 Suze: money market funds, whatever it may be that's giving you 281 00:20:22,770 --> 00:20:28,640 Suze: at least 3% 4% 4.5% on your money 282 00:20:29,819 --> 00:20:33,310 Suze: to have money. Just sitting at a bank account makes 283 00:20:33,319 --> 00:20:38,750 Suze: absolutely no sense. What so ever everybody, 284 00:20:39,699 --> 00:20:42,910 Suze: so you need to look around, you need to see 285 00:20:42,920 --> 00:20:45,550 Suze: what are the things that you can do 286 00:20:46,349 --> 00:20:50,000 Suze: to protect your money and to make sure that you 287 00:20:50,010 --> 00:20:55,079 Suze: are investing properly and to also make sure what that 288 00:20:55,089 --> 00:20:59,079 Suze: you understand if you need money, where do you go 289 00:20:59,089 --> 00:21:00,219 Suze: to get it? 290 00:21:01,069 --> 00:21:06,689 Suze: But be very, very careful right now about credit cards 291 00:21:06,699 --> 00:21:11,430 Suze: and taking cash advances on credit cards. Because remember they're 292 00:21:11,439 --> 00:21:14,739 Suze: going to be raising the fed funds rate in my opinion. 293 00:21:14,839 --> 00:21:18,239 Suze: So the interest rates that you will be paying on 294 00:21:18,250 --> 00:21:22,880 Suze: credit cards in most cases, especially for cash advances will 295 00:21:22,890 --> 00:21:27,599 Suze: probably be 21 22 or 23%. And that just isn't 296 00:21:27,609 --> 00:21:28,339 Suze: worth it. 297 00:21:28,569 --> 00:21:33,369 Suze: Obviously, you never want to do a payday loan. The 298 00:21:33,380 --> 00:21:36,079 Suze: tricks with payday loans where you go in and somebody 299 00:21:36,089 --> 00:21:39,300 Suze: will give you money for 90 days is that every 300 00:21:39,310 --> 00:21:43,239 Suze: 90 days it renews and because of that, it will 301 00:21:43,250 --> 00:21:47,000 Suze: never be able to be discharged in a bankruptcy. 302 00:21:47,939 --> 00:21:55,589 Suze: All of this ties together because when the Feds start 303 00:21:55,599 --> 00:21:59,189 Suze: to raise the fed funds rate again, 304 00:22:00,010 --> 00:22:03,819 Suze: it will have an effect all across the board. 305 00:22:04,489 --> 00:22:07,599 Suze: Now, I know we're currently not in recession, although I'm 306 00:22:07,609 --> 00:22:10,640 Suze: shocked that we're not and I'm not saying that we're 307 00:22:10,650 --> 00:22:15,479 Suze: going to be, but once again, it puts pressure on 308 00:22:15,489 --> 00:22:20,639 Suze: the possibility of doing so. So once again, I'm saying 309 00:22:20,650 --> 00:22:21,619 Suze: to all of you, 310 00:22:22,369 --> 00:22:26,459 Suze: please live below your means. But within your needs, 311 00:22:27,239 --> 00:22:30,920 Suze: if you want something, but you don't need it and 312 00:22:30,930 --> 00:22:34,089 Suze: you don't have an 8 to 12 month fund that 313 00:22:34,099 --> 00:22:37,889 Suze: can carry you in case you lose your job in 314 00:22:37,900 --> 00:22:42,670 Suze: case you get sick, don't buy it. Think twice about 315 00:22:42,680 --> 00:22:45,010 Suze: if you're gonna take a vacation and you have to 316 00:22:45,020 --> 00:22:47,929 Suze: put it on a credit card. Don't mind if you 317 00:22:47,939 --> 00:22:49,849 Suze: put it on a credit card, as long as you 318 00:22:49,859 --> 00:22:53,469 Suze: could pay that credit card off when that bill comes in. 319 00:22:54,359 --> 00:22:58,390 Suze: I just want you to start thinking like that because 320 00:22:58,489 --> 00:23:04,229 Suze: here we go again on the Feds, Mary go round. 321 00:23:04,239 --> 00:23:09,000 Suze: All right, everybody until Thursday when we have another ask 322 00:23:09,010 --> 00:23:12,939 Suze: Suzie and Kat anything. There's really only one thing I 323 00:23:12,949 --> 00:23:16,479 Suze: want you to say every single day. And it is 324 00:23:16,489 --> 00:23:20,770 Suze: this today, wherever we go, everybody, 325 00:23:21,910 --> 00:23:24,839 Suze: we will create a more peaceful, 326 00:23:25,520 --> 00:23:31,180 Suze: joyful and loving world. And if you say that every day, 327 00:23:31,290 --> 00:23:36,329 Suze: I promise you, you will be unstoppable. 328 00:23:40,819 --> 00:23:42,159 Music: Music (out).