1 00:00:01,360 --> 00:00:01,779 MUSIC: MUSIC IN. 2 00:00:33,450 --> 00:00:39,419 Suze: April 13th, 2023. Welcome everybody to the Women and Money 3 00:00:39,430 --> 00:00:45,680 Suze: podcast and everybody smart enough to listen. This is the... 4 00:00:46,380 --> 00:00:51,638 KT: KT and Suze anything any way, any way anyhow. 5 00:00:52,740 --> 00:00:55,779 Suze: Do you know why? She's a little bit off there? 6 00:00:58,209 --> 00:01:00,750 Suze: Let me just tell you. So we sit down to 7 00:01:00,759 --> 00:01:04,488 Suze: do this podcast and she's on her iphone. 8 00:01:04,500 --> 00:01:08,209 KT: Wait, I'm on my iphone. I'm going. Hm. Oh hm. 9 00:01:08,220 --> 00:01:11,628 KT: Suze said, what are you doing? I said nothing and 10 00:01:11,639 --> 00:01:13,389 KT: I said, are you ready? And she said, yeah, she said, 11 00:01:13,400 --> 00:01:16,870 KT: what are you doing? What's this? Hm. Hm. And I said, 12 00:01:16,879 --> 00:01:19,769 KT: I'm looking up radish recipes. 13 00:01:20,860 --> 00:01:24,129 Suze: So that's what we're doing right now. Just so, you know, 14 00:01:24,319 --> 00:01:26,069 Suze: radish recipes. 15 00:01:26,639 --> 00:01:29,800 KT: I have an abundant of radishes from my garden and 16 00:01:29,809 --> 00:01:31,750 KT: I don't really eat radishes. 17 00:01:31,830 --> 00:01:34,550 Suze: So I'm figuring out well, if you don't eat radishes, 18 00:01:34,559 --> 00:01:37,569 Suze: I don't eat radishes. Why did we grow radishes? 19 00:01:37,580 --> 00:01:40,650 KT: Because Barbara puts them on avocado toast and it's delicious... 20 00:01:40,940 --> 00:01:42,330 Suze: Tell everybody who Barbara is. 21 00:01:42,904 --> 00:01:44,995 KT: My sister, my little sister. 22 00:01:45,154 --> 00:01:50,095 Suze: So because she has a little sister, everybody that eats radishes, 23 00:01:50,105 --> 00:01:54,964 Suze: the little sister that happens to live in Colorado. We 24 00:01:54,974 --> 00:01:59,824 Suze: in our garden there on the island, grow radishes. And 25 00:01:59,834 --> 00:02:03,285 Suze: with that KT... a few things I just want to 26 00:02:03,294 --> 00:02:07,644 Suze: say before we begin. So one week from today, guess 27 00:02:07,654 --> 00:02:10,714 Suze: what we're doing, you should see her face 28 00:02:11,029 --> 00:02:13,160 KT: A week from today, what are we doing? 29 00:02:13,288 --> 00:02:18,750 Suze: We are replaying the webinar that I did a few 30 00:02:18,758 --> 00:02:24,279 Suze: weeks ago where over 66,000 people watched it for one 31 00:02:24,288 --> 00:02:28,279 Suze: full hour. And so many of you have requested it 32 00:02:28,389 --> 00:02:32,639 Suze: that in fact, we will be replaying it again on 33 00:02:32,649 --> 00:02:33,758 Suze: April 20th. 34 00:02:33,970 --> 00:02:38,050 Suze: All you have to do is go to Suze Orman 35 00:02:38,059 --> 00:02:42,989 Suze: dot com slash webinar. Sign up there. It's free. It 36 00:02:43,000 --> 00:02:48,679 Suze: will air at 6pm East coast time, 3pm on Pacific time. 37 00:02:48,690 --> 00:02:51,539 Suze: And I'm sure there will be replays. I just want 38 00:02:51,550 --> 00:02:56,759 Suze: to say to everybody. However, since I did that webinar, 39 00:02:56,809 --> 00:03:00,429 Suze: especially with a few stocks, P X D being one 40 00:03:00,440 --> 00:03:00,899 Suze: of them, 41 00:03:01,160 --> 00:03:06,008 Suze: it has skyrocketed since then. So just if you watch it, 42 00:03:06,020 --> 00:03:10,258 Suze: take into consideration the advice that I was giving two 43 00:03:10,270 --> 00:03:14,869 Suze: weeks ago has not changed, but that it's, it's a 44 00:03:14,880 --> 00:03:17,839 Suze: little bit different. It's been, it's got to be tweaked, 45 00:03:17,850 --> 00:03:20,529 Suze: but I can't tweak it because it's not live anymore. 46 00:03:20,538 --> 00:03:24,410 KT: But it's packed with great information if you missed it, 47 00:03:24,419 --> 00:03:27,550 KT: make sure you watch it again. All right. 48 00:03:28,850 --> 00:03:31,119 Suze: Well KT, if thy missed it. How do they watch it again? 49 00:03:32,279 --> 00:03:33,970 KT: Make sure you watch it. 50 00:03:34,000 --> 00:03:37,169 Suze: There we go. Radishes and all girlfriend. 51 00:03:37,720 --> 00:03:41,289 KT: I have a stack of questions in front of me. So, Suze, 52 00:03:41,300 --> 00:03:45,509 KT: first question is from ET. Hello, Suze. 53 00:03:45,729 --> 00:03:48,369 Suze: Is it from outer space? No, just an E T. 54 00:03:57,949 --> 00:04:02,190 KT: Ok. Ready? Do we still have to prepare a will, 55 00:04:02,199 --> 00:04:05,350 KT: even though our assets are only the CDs at Alliant? 56 00:04:07,360 --> 00:04:11,529 KT: We rent an apartment. We both have a paid for car. 57 00:04:11,570 --> 00:04:16,260 KT: I have my own account and my beneficiary is my daughter. 58 00:04:16,450 --> 00:04:20,760 KT: He has four kids from a previous marriage. They're all adults. 59 00:04:20,928 --> 00:04:23,010 KT: Thank you very much for your help. 60 00:04:23,019 --> 00:04:27,969 Suze: So ET, here's the simple answer which is as long 61 00:04:27,980 --> 00:04:28,910 Suze: as all your beneficiaries 62 00:04:29,970 --> 00:04:34,220 Suze: are not minors, you can just leave that money to 63 00:04:34,230 --> 00:04:37,160 Suze: them via a pay on death account. And it's that 64 00:04:37,170 --> 00:04:41,178 Suze: simple and you don't need a will. However, you might 65 00:04:41,190 --> 00:04:44,429 Suze: want to listen to one of my podcasts on why 66 00:04:44,440 --> 00:04:49,118 Suze: you should absolutely still have the must have documents. KT, 67 00:04:49,380 --> 00:04:50,540 Suze: next question. 68 00:04:51,149 --> 00:04:56,000 KT: Ok, Suze, next question from Kimberley. Hi, Suze. What are 69 00:04:56,010 --> 00:04:58,760 KT: your thoughts on a second to die 70 00:04:59,820 --> 00:05:01,868 KT: life insurance policy? 71 00:05:02,988 --> 00:05:03,380 Suze: KT, there is nothing funny about a second to die policy. 72 00:05:05,869 --> 00:05:08,500 KT: Does it means you die twice. I don't get this. Wait, 73 00:05:08,660 --> 00:05:11,239 KT: what are your thoughts on a second to die life 74 00:05:11,250 --> 00:05:15,739 KT: insurance policy as a means to fund a special needs trust. 75 00:05:15,750 --> 00:05:19,809 KT: Once the parents of an autistic child have died. I don't know what a second to die life insurance policy is. 76 00:05:24,779 --> 00:05:25,750 Suze: Should this be your quizzie? 77 00:05:26,799 --> 00:05:28,170 KT: No, just tell me what is it. 78 00:05:28,178 --> 00:05:31,390 Suze: All right. So KT and everybody else... a second to 79 00:05:31,399 --> 00:05:35,250 Suze: die life insurance policy really is also known as a 80 00:05:35,260 --> 00:05:38,909 Suze: survivorship policy. It's this kind of type of, 81 00:05:38,988 --> 00:05:42,700 Suze: of life insurance policy that covers two people but pays 82 00:05:42,709 --> 00:05:46,540 Suze: out at the death of only after both of you 83 00:05:46,549 --> 00:05:50,459 Suze: have passed away. A lot of people get second to 84 00:05:50,470 --> 00:05:54,260 Suze: die policies when they have a huge estate that's above 85 00:05:54,269 --> 00:05:57,359 Suze: the estate tax limits. However, 86 00:05:58,309 --> 00:06:02,690 Suze: it's also a great idea to do exactly what this 87 00:06:02,700 --> 00:06:07,450 Suze: person asked about because the benefit of using a second 88 00:06:07,459 --> 00:06:11,309 Suze: to die life insurance policy to fund a special needs trust, 89 00:06:11,470 --> 00:06:13,910 Suze: is that it can provide a lump sum of money 90 00:06:13,920 --> 00:06:17,859 Suze: to the trust after both parents have passed away. And 91 00:06:17,869 --> 00:06:21,450 Suze: this can ensure to help that their child who has 92 00:06:21,459 --> 00:06:25,529 Suze: special needs, will have financial support for the rest of 93 00:06:25,540 --> 00:06:27,570 Suze: his or her life. Now, 94 00:06:28,119 --> 00:06:30,760 Suze: the truth is you may be thinking KT, well, why 95 00:06:30,769 --> 00:06:34,479 Suze: don't they just each get a separate life insurance policy? 96 00:06:34,510 --> 00:06:38,708 Suze: Why do they both need to have one life insurance policy? 97 00:06:38,720 --> 00:06:41,859 Suze: And it only pays when they both die? And the 98 00:06:41,869 --> 00:06:46,529 Suze: answer to that is, it's more affordable than individual life 99 00:06:46,540 --> 00:06:50,369 Suze: insurance policies for each parent. So, here's the bottom line. 100 00:06:50,600 --> 00:06:52,549 Suze: If you have a child 101 00:06:52,760 --> 00:06:57,190 Suze: that is on SSI, you can't not leave them money 102 00:06:57,200 --> 00:07:00,769 Suze: outright or they'll be kicked off of SSI an d 103 00:07:00,779 --> 00:07:03,829 Suze: it will be a mess. So you create a special needs, 104 00:07:03,839 --> 00:07:06,290 Suze: trust for them and you fund it in whatever way 105 00:07:06,299 --> 00:07:06,989 Suze: you can. 106 00:07:07,230 --> 00:07:09,839 Suze: But if you don't have the money to fund it 107 00:07:10,010 --> 00:07:12,700 Suze: and you need to still take care of that child 108 00:07:12,709 --> 00:07:16,480 Suze: or children. This is a great way to do it, 109 00:07:16,489 --> 00:07:21,489 Suze: if you happen to be married. KT did that make 110 00:07:21,559 --> 00:07:21,970 Suze: sense to you? 111 00:07:22,329 --> 00:07:25,429 KT: It does make sense. Now, I understand what it actually means. 112 00:07:25,450 --> 00:07:30,750 KT: So this next question from Regina, I'm titling it "to 113 00:07:30,760 --> 00:07:32,500 KT: remodel or not." Did you like that to remodel or not? 114 00:07:37,429 --> 00:07:40,440 Suze: I heard that KT I didn't somehow think that it 115 00:07:40,450 --> 00:07:42,570 Suze: was as funny as you think it is. She has 116 00:07:42,579 --> 00:07:45,250 Suze: the biggest smile on her face. What do you find so 117 00:07:45,260 --> 00:07:45,950 Suze: cute about... 118 00:07:46,119 --> 00:07:51,420 KT: To remodel or not? OK. Ready. That's a Shakespearean title. I 119 00:07:51,429 --> 00:07:53,040 KT: am 55 years old. 120 00:07:53,049 --> 00:07:55,519 Suze: Wait, wait, stop. What does that mean? How is that Shakespearean? I want you to explain. 121 00:07:59,179 --> 00:08:00,850 KT: To remodel or not. 122 00:08:00,859 --> 00:08:03,690 Suze: What is it? What does it come from to what 123 00:08:04,089 --> 00:08:08,170 Suze: or what? You don't know? All right and why me everybody. 124 00:08:08,399 --> 00:08:11,510 Suze: All right. It's one of those days it started with 125 00:08:11,519 --> 00:08:13,299 Suze: those radishes. OK, go on! 126 00:08:13,700 --> 00:08:17,609 KT: OK. I am 55 years old. I'm a homeowner. I 127 00:08:17,619 --> 00:08:21,820 KT: have 32,000 left to pay on my home. My only 128 00:08:21,829 --> 00:08:26,390 KT: other debt is 11,000 on a credit card with zero interest, 129 00:08:26,399 --> 00:08:31,230 KT: which I pay $485 a month. I have a one 130 00:08:31,239 --> 00:08:37,109 KT: year emergency fund, 11,000 in additional bank account savings 131 00:08:37,380 --> 00:08:41,510 KT: that include the Alliant savings account. I have three Roth 132 00:08:41,520 --> 00:08:44,718 KT: accounts mutual funds. She goes on and on. So she's 133 00:08:44,729 --> 00:08:51,520 KT: got all in with her TSP Roths about 150,000 plus 134 00:08:51,840 --> 00:08:54,989 KT: a traditional IRA with about 300,000. 135 00:08:55,780 --> 00:08:59,390 Suze: But wait, wait, stop, seriously, for a second. This is 136 00:08:59,400 --> 00:09:03,530 Suze: a woman who's 55 years of age, right? She still 137 00:09:03,539 --> 00:09:06,429 Suze: owes $32,000 on her home. 138 00:09:06,760 --> 00:09:11,579 Suze: She still has $11,000 of credit card debt, which means 139 00:09:11,590 --> 00:09:15,659 Suze: she still spends more than she should be even though 140 00:09:15,669 --> 00:09:20,469 Suze: she has about, would you say four or $500,000 in 141 00:09:20,479 --> 00:09:23,349 Suze: savings altogether? All right. Go on. 142 00:09:23,570 --> 00:09:27,309 KT: I would like to know. Well, first let me finish this, 143 00:09:27,520 --> 00:09:33,530 KT: the remodel is estimated to cost 15 to $20,000. I 144 00:09:33,539 --> 00:09:36,650 KT: would like to know if I should use the funds 145 00:09:36,659 --> 00:09:39,940 KT: from one of these accounts or apply for a HELOC. 146 00:09:40,979 --> 00:09:44,849 KT: So she said, Suze, I eagerly await your answer. 147 00:09:50,080 --> 00:09:53,760 Suze: So to remodel or not, whatever that means Shakespeare, right? But here's the thing, my dear Regina in this 148 00:09:53,770 --> 00:09:56,580 Suze: type of an interest rate environment. The last thing you 149 00:09:56,590 --> 00:09:59,510 Suze: would ever want to do is a home equity line 150 00:09:59,520 --> 00:10:04,718 Suze: of credit. You have money in an account, especially Roth accounts. 151 00:10:04,729 --> 00:10:06,210 Suze: And if I were you, 152 00:10:06,890 --> 00:10:10,200 Suze: if you were going to remodel, I would do it 153 00:10:10,210 --> 00:10:15,500 Suze: that way versus a home equity line of credit. However, 154 00:10:15,510 --> 00:10:18,020 Suze: this is not the time that I would be remodeling. 155 00:10:18,030 --> 00:10:22,010 Suze: So I would not be doing it. Why? Because inflation 156 00:10:22,020 --> 00:10:25,679 Suze: is still here. Labor is still high. You still have 157 00:10:25,690 --> 00:10:28,989 Suze: materials that are high. KT and I can tell you, 158 00:10:29,000 --> 00:10:31,239 Suze: we just did a little remodel as well. 159 00:10:31,320 --> 00:10:35,960 Suze: did we not, KT on a condo in Florida? And X turned 160 00:10:35,969 --> 00:10:39,539 Suze: into three X. It never fails. So it's not that 161 00:10:39,549 --> 00:10:42,400 Suze: all it's gonna cost you is 15 to 20,000 because 162 00:10:42,409 --> 00:10:46,090 Suze: you said it's an estimated cost. By the time it's done, 163 00:10:46,099 --> 00:10:50,250 Suze: it will be 40 or $50,000 and you still have 164 00:10:50,260 --> 00:10:54,309 Suze: $11,000 of credit card debt. Once you have paid off 165 00:10:54,320 --> 00:10:55,669 Suze: all your credit card debt, 166 00:10:56,270 --> 00:11:00,309 Suze: um maybe we can consider if you should do what KT? 167 00:11:01,090 --> 00:11:05,400 KT: Remodel or not. There you go. Hi, Suze. I know 168 00:11:05,409 --> 00:11:09,059 KT: that you recommend we all wait to take social security 169 00:11:09,070 --> 00:11:13,718 KT: income at the max rate at age 70. This made 170 00:11:13,729 --> 00:11:17,380 KT: sense to me. However, now I'm reading that you have 171 00:11:17,390 --> 00:11:21,440 KT: to pay taxes on income over 25,000. 172 00:11:21,950 --> 00:11:25,169 KT: I'm sure you've considered this in your advice. But can 173 00:11:25,179 --> 00:11:29,939 KT: you explain why or how it's still beneficial to wait 174 00:11:29,950 --> 00:11:33,090 KT: till 70 to get the extra benefits. 175 00:11:33,500 --> 00:11:34,819 Suze: Is that a quizzie? 176 00:11:35,640 --> 00:11:36,598 KT: No. 177 00:11:36,820 --> 00:11:40,070 Suze: All right. So listen to me Vicky. Go back in 178 00:11:40,080 --> 00:11:42,299 Suze: time in terms of one of the podcasts that I 179 00:11:42,309 --> 00:11:46,789 Suze: did about social security and taxation. The truth of the 180 00:11:46,799 --> 00:11:50,449 Suze: matter is if you make over a specific sum of money, 181 00:11:50,460 --> 00:11:54,968 Suze: depending if you happen to be single or married or whatever, 182 00:11:54,979 --> 00:11:59,280 Suze: you will owe taxes on a percentage of your social security. 183 00:11:59,359 --> 00:12:02,549 Suze: The maximum percentage that you will ever owe taxes on 184 00:12:02,559 --> 00:12:04,510 Suze: is usually 85%. 185 00:12:04,830 --> 00:12:10,729 Suze: Therefore, it doesn't matter. I rather see you do what? 186 00:12:10,739 --> 00:12:15,098 Suze: Get more money later on in life. A whole lot 187 00:12:15,109 --> 00:12:17,989 Suze: more money. Not just a little bit, you would get 188 00:12:18,000 --> 00:12:22,890 Suze: almost 76% more if you took it at 70 than 189 00:12:22,900 --> 00:12:26,229 Suze: if you did at 62. That is a lot of money, 190 00:12:26,239 --> 00:12:29,659 Suze: Vicky and all the taxes in the world. If you 191 00:12:29,669 --> 00:12:31,939 Suze: are not in a high tax bracket, 192 00:12:32,320 --> 00:12:37,200 Suze: it's not gonna matter to you. So just wait till 70. (Sigh) 193 00:12:37,739 --> 00:12:42,439 KT: Next question from Alana. Are you exhausted? We're not even 194 00:12:42,450 --> 00:12:45,250 KT: like a quarter through my list of questions... 195 00:12:45,539 --> 00:12:48,640 Suze: It's not that I'm exhausted. It's I'll tell you what 196 00:12:48,650 --> 00:12:49,228 Suze: I am. 197 00:12:49,400 --> 00:12:51,090 KT: Tell me what you are. What are you? 198 00:12:51,429 --> 00:12:54,400 Suze: I've been reading so many emails because KT you know, 199 00:12:54,409 --> 00:12:58,468 Suze: I go through the emails and as well as the 200 00:12:58,479 --> 00:13:01,330 Suze: questions that many of you are asking on the Women 201 00:13:01,340 --> 00:13:04,880 Suze: and Money Community app, which by the way you could 202 00:13:04,890 --> 00:13:09,199 Suze: download for free by going to Apple Apps or Google Play, 203 00:13:09,210 --> 00:13:13,239 Suze: search for women and Money and there's a fabulous community there. 204 00:13:13,840 --> 00:13:19,010 Suze: But some of you are getting the worst information I 205 00:13:19,020 --> 00:13:23,510 Suze: have ever read or heard in my life. It makes 206 00:13:23,520 --> 00:13:29,289 Suze: me so concerned, so concerned because I am concerned about you. 207 00:13:29,299 --> 00:13:31,429 Suze: You know, I just have to say this, I'll never 208 00:13:31,440 --> 00:13:35,250 Suze: forget because it was just this month really, 209 00:13:35,590 --> 00:13:38,919 Suze: you know, back in 2015, believe it or not, eight 210 00:13:38,929 --> 00:13:42,409 Suze: years ago that I signed off on the Suze Orman 211 00:13:42,419 --> 00:13:46,880 Suze: show and I'll never forget, at the very end, I 212 00:13:46,890 --> 00:13:51,869 Suze: wanted to cry. I didn't want to cry because I 213 00:13:51,880 --> 00:13:54,739 Suze: was signing off because it was my choice to end it. 214 00:13:55,710 --> 00:13:58,079 Suze: I wanted to cry because I was like, and I 215 00:13:58,090 --> 00:14:01,280 Suze: said this, who's gonna take care of all of you? 216 00:14:01,849 --> 00:14:06,299 Suze: Where are you going to get correct information so that 217 00:14:06,309 --> 00:14:09,299 Suze: you get the most out of your money? And then 218 00:14:09,309 --> 00:14:11,440 Suze: when I hear things like that, 219 00:14:11,869 --> 00:14:16,239 Suze: I know that it's not Vicky or whatever. It's somebody 220 00:14:16,250 --> 00:14:20,979 Suze: told her that and now she's afraid and maybe would 221 00:14:20,989 --> 00:14:24,960 Suze: have chosen to make a serious mistake by collecting social 222 00:14:24,969 --> 00:14:28,880 Suze: security earlier. That's why you see me like that. 223 00:14:28,890 --> 00:14:30,119 KT: It's frustrating. 224 00:14:30,520 --> 00:14:33,659 Suze: No... it's  more than frustrating. It makes me so sad. 225 00:14:33,989 --> 00:14:36,719 KT: Well, then you better keep doing this podcast. 226 00:14:36,760 --> 00:14:41,640 Suze: I guess so and you better doing it with me as long 227 00:14:41,650 --> 00:14:45,309 Suze: as you're not too busy harvesting radishes. And looking up 228 00:14:45,320 --> 00:14:48,650 Suze: recipes so that Barbara who doesn't even live here can 229 00:14:48,659 --> 00:14:50,179 Suze: eat that. All right. 230 00:14:55,159 --> 00:15:02,489 KT: This is from Alana. Good morning, I'm interested in your thoughts of transferring $438,000 from a 231 00:15:02,500 --> 00:15:06,109 KT: Roth IRA to a market index annuity. 232 00:15:06,400 --> 00:15:12,669 KT: I'm 55. 10 year commitment promises 14% on the first year. 233 00:15:12,679 --> 00:15:16,770 KT: Then each year after I would get 50% of the 234 00:15:16,780 --> 00:15:20,890 KT: average of the stock market. I didn't, I didn't know 235 00:15:20,900 --> 00:15:23,570 KT: that that's how they work. Or at least this one works. 236 00:15:23,580 --> 00:15:27,099 Suze: You didn't listen last Sunday podcast, did you? 237 00:15:27,260 --> 00:15:28,049 KT: No, I didn't. 238 00:15:28,059 --> 00:15:30,799 Suze: And that's because you had a house full of your 239 00:15:30,809 --> 00:15:35,330 Suze: loved ones there. But this is exactly what that was about. 240 00:15:36,669 --> 00:15:41,440 Suze: You need to listen seriously to last Sunday's podcast. You 241 00:15:41,450 --> 00:15:43,809 Suze: are not to do this. You are not to do this. 242 00:15:43,820 --> 00:15:46,080 Suze: I don't care if your money was in a traditional 243 00:15:46,090 --> 00:15:48,890 Suze: IRA and you were thinking about doing it into a 244 00:15:48,900 --> 00:15:51,299 Suze: Roth IRA. That would be the biggest mistake of your 245 00:15:51,309 --> 00:15:55,619 Suze: life because all 438,000 would be taxable to you if 246 00:15:55,630 --> 00:15:58,419 Suze: it's in a Roth IRA because I never know for 247 00:15:58,429 --> 00:16:02,500 Suze: sure if you have all of you have your terminology correct. 248 00:16:02,809 --> 00:16:05,090 Suze: You are not to do this as well because there 249 00:16:05,099 --> 00:16:14,450 Suze: are fees in, an indexed annuity. 14% who pays you 14%? 250 00:16:14,460 --> 00:16:19,059 Suze: Some company that is suckering you in so that they 251 00:16:19,070 --> 00:16:22,049 Suze: entice you. But yet you have to make a 10 252 00:16:22,059 --> 00:16:26,260 Suze: year commitment till you are. 65 years of age. 253 00:16:26,659 --> 00:16:29,510 Suze: Are you kidding me? You are just a few years 254 00:16:29,520 --> 00:16:32,400 Suze: away from being able to take any money you want. 255 00:16:32,409 --> 00:16:35,950 Suze: If it's in a Roth IRA, out without taxes or penalties, 256 00:16:35,979 --> 00:16:38,630 Suze: you have the ability to do what, leave it to 257 00:16:38,640 --> 00:16:42,960 Suze: your beneficiaries upon your death without any taxes or penalties. 258 00:16:43,080 --> 00:16:48,030 Suze: All because 14% for the first year and after that, 259 00:16:48,039 --> 00:16:51,659 Suze: you would get only 50% of the average stock market. 260 00:16:51,669 --> 00:16:54,619 Suze: So if the market went up 10% you would get 261 00:16:54,630 --> 00:16:56,330 Suze: only 5% of that? 262 00:16:56,799 --> 00:16:59,049 Suze: You're never going to make your money back. You are 263 00:16:59,059 --> 00:17:01,419 Suze: not to do it. This is one of the worst 264 00:17:01,669 --> 00:17:06,550 Suze: market index annuities I've ever even heard of. Don't do it. 265 00:17:06,729 --> 00:17:10,599 KT: So Judy says, Suze, I read that I should get 266 00:17:10,609 --> 00:17:14,109 KT: out of I Bonds now, please tell me how this 267 00:17:14,119 --> 00:17:17,410 KT: is done. How do I cash them in? I need 268 00:17:17,708 --> 00:17:22,948 KT: specifics, please also, should I wait for three months? Meaning 269 00:17:22,958 --> 00:17:28,359 KT: July to do it or now I bought them last April, please, Suze, 270 00:17:28,369 --> 00:17:30,308 KT: I need your help now. 271 00:17:30,398 --> 00:17:34,168 Suze: Judy, I am begging you to listen to me. I 272 00:17:34,178 --> 00:17:37,298 Suze: don't know where you read that you should get out 273 00:17:37,308 --> 00:17:41,457 Suze: of I bonds now. But wherever you read that, can 274 00:17:41,468 --> 00:17:43,239 Suze: you do me a favor 275 00:17:43,469 --> 00:17:47,260 Suze: if it's an email or a text, block them from you, 276 00:17:47,270 --> 00:17:51,020 Suze: if it was a newspaper article or a magazine, never 277 00:17:51,030 --> 00:17:55,208 Suze: read that publication again. That is 278 00:17:55,619 --> 00:18:04,510 Suze: 100% incorrect advice, especially because you bought them last April, 279 00:18:04,520 --> 00:18:09,439 Suze: you're gonna leave your money right there. Do you hear me? 280 00:18:09,550 --> 00:18:12,739 Suze: Why do you want to get out? Remember your money 281 00:18:12,750 --> 00:18:16,739 Suze: is compounding. It's still compounding at a nice rate. When 282 00:18:16,750 --> 00:18:20,619 Suze: everything again is issued come, this May 283 00:18:21,150 --> 00:18:25,430 Suze: probably it'll be about three, three and a half percent right around there. We'll see 284 00:18:25,439 --> 00:18:29,839 Suze: what happens, but all your money then will be making 285 00:18:29,849 --> 00:18:33,829 Suze: still a great average interest rate and you're just gonna 286 00:18:33,839 --> 00:18:38,069 Suze: wait and listen till I tell you on this podcast 287 00:18:38,079 --> 00:18:40,680 Suze: that you should get out of I bonds. But you 288 00:18:40,689 --> 00:18:43,359 Suze: are not repeat with me, my dear Judy. 289 00:18:43,719 --> 00:18:47,389 Suze: You are not going to take money out of I 290 00:18:47,459 --> 00:18:50,409 Suze: bonds right now. If you want to make one of 291 00:18:50,420 --> 00:18:53,290 Suze: the biggest mistakes of your life because you bought Last 292 00:18:53,300 --> 00:18:56,689 Suze: April very different if you might be buying in the future. 293 00:18:56,719 --> 00:19:00,890 Suze: But because you bought last April when rates were so great. 294 00:19:00,900 --> 00:19:05,189 Suze: Oh my God. Right. Then if you wanted to get 295 00:19:05,199 --> 00:19:09,109 Suze: money out, all you do is you contact Treasury direct 296 00:19:09,119 --> 00:19:09,569 Suze: dot gov 297 00:19:10,300 --> 00:19:15,229 Suze: and you redeem your I bond there, goes directly into 298 00:19:15,239 --> 00:19:18,280 Suze: your bank account, whatever amount of money that you wanted 299 00:19:18,290 --> 00:19:22,030 Suze: to redeem and you will owe a three month interest 300 00:19:22,040 --> 00:19:29,189 Suze: penalty on it along with ordinary income taxes on the interest. 301 00:19:29,199 --> 00:19:32,469 Suze: So just do me a favor, stop reading 302 00:19:32,949 --> 00:19:36,228 Suze: whatever it was you were reading and just continue to 303 00:19:36,239 --> 00:19:40,800 Suze: listen to the Women and Money podcast. 304 00:19:41,849 --> 00:19:45,150 KT: Next question says, hello, Suze and KT. 305 00:19:45,589 --> 00:19:48,260 Suze: And by the way, everybody so sorry to interrupt you, 306 00:19:48,270 --> 00:19:53,420 Suze: my love. Right? But this Sunday, I will be doing 307 00:19:53,430 --> 00:19:58,300 Suze: a podcast on if I think you should be buying 308 00:19:58,310 --> 00:20:03,160 Suze: I bonds for this auction coming up in May or not. 309 00:20:03,349 --> 00:20:07,520 Suze: And my philosophy of why I think what I'm thinking. 310 00:20:07,530 --> 00:20:08,469 Suze: All right, KT. 311 00:20:09,150 --> 00:20:14,270 KT: Ok. Next question, Suze and KT. My father's retired and 312 00:20:14,280 --> 00:20:19,170 KT: has about $20,000 in an IRA. He does not have 313 00:20:19,180 --> 00:20:23,579 KT: a 401k. So he will turn 73 next year. What 314 00:20:23,589 --> 00:20:27,770 KT: happens if he does not take RMD? What is a penalty? 315 00:20:27,869 --> 00:20:31,179 KT: And how will he pay that penalty? Will he have 316 00:20:31,189 --> 00:20:33,520 KT: to send a check to the IRS? 317 00:20:38,260 --> 00:20:44,619 Suze: So here's the thing when they say RMD, that stands for required minimum distribution and when they say required, 318 00:20:44,630 --> 00:20:50,949 Suze: it means it is required and you're lucky because in 319 00:20:50,959 --> 00:20:54,459 Suze: 2023 the law changed 320 00:20:54,780 --> 00:21:00,050 Suze: and the penalty for not taking the required minimum distribution 321 00:21:00,060 --> 00:21:02,649 Suze: in the year that you need to take it, has 322 00:21:02,660 --> 00:21:08,430 Suze: been reduced from 50 five oh percent to 25%. 323 00:21:09,020 --> 00:21:15,099 Suze: However, that penalty can be further reduced to 10% if 324 00:21:15,109 --> 00:21:19,079 Suze: it's fixed during what they call the correction window. And 325 00:21:19,089 --> 00:21:22,599 Suze: the correction window begins on the date that the tax 326 00:21:22,609 --> 00:21:26,390 Suze: is imposed. So that's what you need to know. So 327 00:21:26,400 --> 00:21:30,140 Suze: it's either the earliest or when you will receive a 328 00:21:30,280 --> 00:21:34,849 Suze: notice of deficiency mailed to your father 329 00:21:35,420 --> 00:21:39,859 Suze: And the tax is assessed by the IRS or the 330 00:21:39,869 --> 00:21:43,859 Suze: last day of the second tax year after the tax 331 00:21:43,869 --> 00:21:50,179 Suze: is imposed. That is the official ruling of how it works. 332 00:21:50,189 --> 00:21:54,270 Suze: But what you need to know really is that you 333 00:21:54,280 --> 00:21:58,859 Suze: need to make sure that he pays it. Because why 334 00:21:58,869 --> 00:22:00,669 Suze: do you want to be penalized? You're not going to 335 00:22:00,680 --> 00:22:02,050 Suze: get around it. 336 00:22:02,390 --> 00:22:05,359 Suze: So you will go and if you don't know how 337 00:22:05,369 --> 00:22:07,619 Suze: to figure it out, go to see a tax person 338 00:22:07,630 --> 00:22:11,369 Suze: or whatever, it's not gonna be that much money because 339 00:22:11,380 --> 00:22:16,708 Suze: there's only $20,000 in there. So, you know, maybe he'll 340 00:22:16,719 --> 00:22:20,479 Suze: have to take out $2000 or whatever it may be, 341 00:22:20,489 --> 00:22:24,160 Suze: but just make sure that he does it. 342 00:22:24,339 --> 00:22:28,160 KT: Ok. Next question is from Andy, hey, Suze and KT, 343 00:22:28,810 --> 00:22:30,800 KT: love you both so much. 344 00:22:31,099 --> 00:22:34,510 KT: My dad had a trust and he put everything in it, 345 00:22:34,660 --> 00:22:39,140 KT: this backfired on us because his IRA was left to 346 00:22:39,150 --> 00:22:42,829 KT: the trust. So we are being told we can't get 347 00:22:42,839 --> 00:22:47,659 KT: inherited IRAs and now have to pay taxes on the 348 00:22:47,670 --> 00:22:51,949 KT: money distributed by the end of five years. Should I 349 00:22:51,959 --> 00:22:56,140 KT: just name beneficiaries on my retirement accounts and CDs? 350 00:22:59,770 --> 00:23:03,400 Suze: The answer to that is no. Listen again, you can search on the Women and Money app 351 00:23:03,410 --> 00:23:07,739 Suze: for past podcasts. I did a whole podcast on Inherited 352 00:23:07,750 --> 00:23:13,719 Suze: IRAs and the new laws and why you absolutely, if 353 00:23:13,729 --> 00:23:15,000 Suze: you have the correct 354 00:23:15,074 --> 00:23:19,083 Suze: kind of trust can leave the trust as the beneficiary 355 00:23:19,094 --> 00:23:22,954 Suze: and not have to take it out in just five years. 356 00:23:22,964 --> 00:23:26,425 Suze: So all of you should know this: for the trust 357 00:23:26,435 --> 00:23:30,244 Suze: to be considered valid and legal under state law, 358 00:23:30,910 --> 00:23:34,800 Suze: which typically means that you created the trust document, it's 359 00:23:34,810 --> 00:23:37,349 Suze: been witnessed and it's been notarized which all of you know, 360 00:23:37,359 --> 00:23:38,319 Suze: you need to do. 361 00:23:39,069 --> 00:23:45,099 Suze: The trust must be irrevocable upon the plan owner's death. 362 00:23:45,109 --> 00:23:49,739 Suze: That's number one, meaning that the listed beneficiaries, the people 363 00:23:49,750 --> 00:23:52,169 Suze: who are gonna get the money that they can be 364 00:23:52,180 --> 00:23:56,680 Suze: changed up to the point where the IRA owner passes away, 365 00:23:56,689 --> 00:23:59,160 Suze: but not after that. 366 00:23:59,630 --> 00:24:06,500 Suze: All beneficiaries must be easily identified and eligible and legally named. 367 00:24:06,510 --> 00:24:10,399 Suze: That's what's called a see through trust. 368 00:24:11,089 --> 00:24:14,810 Suze: That when you look at the trust, the document, you 369 00:24:14,819 --> 00:24:18,859 Suze: can see right through it, so to speak as to who... 370 00:24:18,869 --> 00:24:23,310 Suze: who is going to get this money. It's really just 371 00:24:23,319 --> 00:24:25,500 Suze: that simple. So obviously, 372 00:24:26,010 --> 00:24:31,560 Suze: your father did not have the right kind of trust. Therefore, 373 00:24:31,569 --> 00:24:34,750 Suze: they're making all of you take the money at the 374 00:24:34,760 --> 00:24:39,959 Suze: end of five years versus at the end of 10 years. 375 00:24:39,969 --> 00:24:42,589 Suze: I just also want to say that if your father 376 00:24:42,599 --> 00:24:43,379 Suze: died 377 00:24:43,949 --> 00:24:47,160 Suze: at a time when he was old enough to have 378 00:24:47,170 --> 00:24:51,550 Suze: to take required minimum distributions, since we just had this 379 00:24:51,560 --> 00:24:56,510 Suze: question here, right? When you have a see through trust 380 00:24:56,630 --> 00:25:00,129 Suze: that has many beneficiaries, let's say it's you and your 381 00:25:00,140 --> 00:25:01,989 Suze: family members whatever 382 00:25:02,599 --> 00:25:05,738 Suze: then rather than all of you having to do the 383 00:25:05,750 --> 00:25:09,079 Suze: same thing. A lot of times what happens when it's 384 00:25:09,089 --> 00:25:11,889 Suze: in a see-through trust, which is normally just a good 385 00:25:11,900 --> 00:25:16,449 Suze: trust that's set up correctly. They're going to split all 386 00:25:16,459 --> 00:25:21,589 Suze: the inherited IRA separately so that you each have your 387 00:25:21,599 --> 00:25:25,669 Suze: own just so, you know, so do not be afraid 388 00:25:25,790 --> 00:25:28,949 Suze: to have a trust as a beneficiary. However, 389 00:25:29,819 --> 00:25:33,780 Suze: I will still tell you if you are married, your 390 00:25:33,790 --> 00:25:39,430 Suze: primary beneficiary of any retirement account should be your spouse, 391 00:25:39,479 --> 00:25:45,180 Suze: secondary beneficiary should be the living revocable trust. Because a 392 00:25:45,189 --> 00:25:50,909 Suze: spouse has certain benefits that nobody else has. But again, 393 00:25:50,949 --> 00:25:54,229 Suze: that's all in a past podcast for you, 394 00:25:54,750 --> 00:25:58,800 KT: Suze, next question from Jan. Hi, Suze. I've been listening 395 00:25:58,810 --> 00:26:04,199 KT: to your podcast regularly and my question during the Annuities podcast, 396 00:26:04,209 --> 00:26:08,099 KT: I heard money placed in an ETF or index market 397 00:26:08,109 --> 00:26:13,319 KT: fund withdrawn would be taxable as capital gain. Is there 398 00:26:13,329 --> 00:26:17,479 KT: a first in and last out rule that applies to this? 399 00:26:18,619 --> 00:26:21,919 Suze: So I don't know what annuity podcast you were listening 400 00:26:21,930 --> 00:26:26,209 Suze: to Jan. But I never ever said that. What did 401 00:26:26,219 --> 00:26:31,589 Suze: I say? Any money that's in a variable annuity or 402 00:26:31,599 --> 00:26:35,469 Suze: an indexed annuity when you go to take money out 403 00:26:35,839 --> 00:26:40,879 Suze: will be taxed to you as ordinary income. What I 404 00:26:40,890 --> 00:26:44,790 Suze: said to you is it makes no sense to own 405 00:26:44,800 --> 00:26:47,969 Suze: a variable annuity within a retirement account. 406 00:26:48,619 --> 00:26:52,790 Suze: None whatsoever. Number one, but it makes no sense as 407 00:26:52,800 --> 00:26:57,800 Suze: well to own a variable annuity outside of a retirement account. 408 00:26:57,959 --> 00:27:01,630 Suze: Because if you bought those exact same mutual funds outside 409 00:27:01,640 --> 00:27:05,680 Suze: of a retirement account or an exchange traded fund, outside 410 00:27:05,689 --> 00:27:09,010 Suze: of a retirement account, you pay capital gains tax on 411 00:27:09,020 --> 00:27:12,449 Suze: it once you've owned it for over one year if 412 00:27:12,459 --> 00:27:13,469 Suze: you go to sell. 413 00:27:14,079 --> 00:27:18,599 Suze: But if it's in an annuity outside of a retirement account, 414 00:27:18,959 --> 00:27:23,300 Suze: when you go to withdraw money, it is always ordinary 415 00:27:23,310 --> 00:27:28,290 Suze: income and it is not first in last out, it's 416 00:27:28,300 --> 00:27:33,550 Suze: last in first out. So it's always interest my love. 417 00:27:33,560 --> 00:27:37,109 Suze: It is never your principle coming out. 418 00:27:38,140 --> 00:27:39,030 KT: That's good. 419 00:27:39,760 --> 00:27:41,800 Suze: You know, there was a time I think in August 420 00:27:41,810 --> 00:27:44,579 Suze: of '82 they may have changed it. It used to 421 00:27:44,589 --> 00:27:49,489 Suze: be right first in first out. So I was selling 422 00:27:49,500 --> 00:27:54,849 Suze: in the eighties, so many people into annuities at 14%. 423 00:27:55,400 --> 00:28:00,119 Suze: So we could lock in 14% and they could take 424 00:28:00,130 --> 00:28:03,270 Suze: out the 10% a year. But the 10% came in 425 00:28:03,280 --> 00:28:06,270 Suze: from their principle because it was the first in first out. 426 00:28:06,280 --> 00:28:07,530 Suze: So it was tax free. 427 00:28:08,140 --> 00:28:11,459 Suze: And for 10 years, we took out money, tax free 428 00:28:11,869 --> 00:28:15,489 Suze: and then the rest was all taxable. But oh, it 429 00:28:15,500 --> 00:28:17,329 Suze: was the best thing until they got rid of them. 430 00:28:18,859 --> 00:28:21,329 Suze: There were there so many great ways to make money 431 00:28:21,339 --> 00:28:21,750 Suze: back then. 432 00:28:21,760 --> 00:28:25,310 KT: So this is an interesting question from Rob, dear Suze 433 00:28:25,319 --> 00:28:28,198 KT: and KT. I love your show. We love that. You 434 00:28:28,209 --> 00:28:29,390 KT: love the show, Rob. 435 00:28:29,859 --> 00:28:33,260 KT: You have told us that Treasury bills, notes and bonds 436 00:28:33,270 --> 00:28:36,530 KT: are backed by the full faith and credit of the 437 00:28:36,540 --> 00:28:40,750 KT: US government, when we buy them at treasury direct dot gov. 438 00:28:40,939 --> 00:28:42,030 Suze: I did not say that. 439 00:28:42,040 --> 00:28:44,949 KT: Well, wait, what about when I buy them through a 440 00:28:44,959 --> 00:28:50,270 KT: discount brokerage? Do I have to be mindful of SIPC limits? 441 00:28:50,449 --> 00:28:51,829 KT: Say at Fidelity? 442 00:28:51,839 --> 00:28:54,489 Suze: Now stop, stop. I don't want... I want to stop here, really. 443 00:28:54,862 --> 00:28:57,962 Suze: Let me stop it here because I didn't say that Rob, 444 00:28:57,972 --> 00:29:02,521 Suze: what I said was no matter where you buy a treasury, 445 00:29:02,531 --> 00:29:05,082 Suze: it does not have to be from Treasury direct dot gov. 446 00:29:05,621 --> 00:29:08,722 Suze: In fact, Treasury Direct dot gov is a real pain, 447 00:29:08,732 --> 00:29:11,812 Suze: if you ask me to buy anything, you have to 448 00:29:11,822 --> 00:29:15,082 Suze: buy series I bonds there because they're not sold anywhere else, 449 00:29:15,092 --> 00:29:17,881 Suze: but I would not be buying treasury bill bonds or 450 00:29:17,891 --> 00:29:19,222 Suze: notes from them because 451 00:29:19,323 --> 00:29:22,433 Suze: again, they are just archaic. So the truth of the 452 00:29:22,443 --> 00:29:26,104 Suze: matter is, all you have to know is all treasuries, 453 00:29:26,114 --> 00:29:29,293 Suze: no matter where you buy them are backed by the 454 00:29:29,303 --> 00:29:33,364 Suze: full faith and authority of the United States government. SIPC is 455 00:29:33,374 --> 00:29:37,614 Suze: about what it's about if the brokerage firm that you 456 00:29:37,624 --> 00:29:40,144 Suze: are with happens to go under, but you're gonna be 457 00:29:40,154 --> 00:29:43,953 Suze: fine no matter what if you're in individual treasury 458 00:29:44,505 --> 00:29:47,686 Suze: and KT and I can tell you we have a 459 00:29:47,696 --> 00:29:53,776 Suze: serious sum of money at a brokerage firm. Many brokerage 460 00:29:53,786 --> 00:29:58,286 Suze: firms actually that um we have individual treasuries far above 461 00:29:58,296 --> 00:30:02,536 Suze: any SIPC insurance or anything like that. All right. 462 00:30:02,635 --> 00:30:04,855 KT: Suze, it's quizzie time! 463 00:30:05,056 --> 00:30:08,385 Suze: This is a really, really easy quizzie. 464 00:30:09,469 --> 00:30:12,790 KT: Ok, I'm ready. Is everyone else ready? 465 00:30:12,800 --> 00:30:15,540 Suze: Right. So this is where I ask all of you 466 00:30:15,550 --> 00:30:19,660 Suze: a question. You need to think about it and answer 467 00:30:19,670 --> 00:30:23,310 Suze: it because this is how we educate you to make 468 00:30:23,319 --> 00:30:25,969 Suze: sure that you are listening to what I am trying 469 00:30:25,979 --> 00:30:29,640 Suze: to teach you. So answer a question as if you 470 00:30:29,650 --> 00:30:30,640 Suze: were me. 471 00:30:31,479 --> 00:30:35,979 Suze: Hi, Suze and KT, love your podcast. I have a 472 00:30:35,989 --> 00:30:39,979 Suze: Roth Ira at Vanguard. I would like to open a 473 00:30:39,989 --> 00:30:44,930 Suze: new Roth IRA at Alliant Credit Union. Would my new 474 00:30:44,939 --> 00:30:46,680 Suze: Roth at Alliant 475 00:30:46,949 --> 00:30:52,400 Suze: have a new five year wait period to withdraw earnings. Also, 476 00:30:52,410 --> 00:30:56,750 Suze: I assume I could have Vanguard, transfer some funds to 477 00:30:56,760 --> 00:31:00,939 Suze: my new Roth IRA at Allilant, correct? So the real 478 00:31:00,949 --> 00:31:06,180 Suze: question here, everybody is as you know, when it comes 479 00:31:06,189 --> 00:31:08,000 Suze: to a Roth IRA, 480 00:31:08,660 --> 00:31:12,949 Suze: you can withdraw any money that you originally put in 481 00:31:13,239 --> 00:31:18,010 Suze: at any time without taxes or penalties, regardless of your age. 482 00:31:18,469 --> 00:31:23,130 Suze: The money that, that money earns however, has to be 483 00:31:23,140 --> 00:31:27,349 Suze: in there for at least five years and until you 484 00:31:27,359 --> 00:31:31,250 Suze: are 59 a half years of age 485 00:31:31,880 --> 00:31:36,489 Suze: for you to withdraw the earnings of that money tax free. 486 00:31:37,260 --> 00:31:42,359 Suze: When you start a Roth IRA, whether it's with a dollar, 487 00:31:42,410 --> 00:31:48,369 Suze: $10 whatever it may be, the five year clock starts, 488 00:31:48,770 --> 00:31:53,630 Suze: this person, Susan, wants to know if she opens up now, 489 00:31:53,640 --> 00:31:58,229 Suze: a new Roth IRA with Alliant, because obviously she wants to buy certificates of deposits. There will the five year clock start all over again? 490 00:32:05,260 --> 00:32:05,760 KT: Yes. 491 00:32:05,770 --> 00:32:08,540 Suze: Wait, you have to wait and think about it. 492 00:32:08,550 --> 00:32:09,920 KT: I did think about it. 493 00:32:09,930 --> 00:32:11,560 Suze: You're positive you thought about it? 494 00:32:11,569 --> 00:32:14,459 KT: Yeah. I mean, every time you open a new account, 495 00:32:14,469 --> 00:32:16,060 KT: if the clock gets reset. 496 00:32:17,050 --> 00:32:24,219 Suze: (Suze makes the buzzer sound) No, you are so wrong, so wrong. It's not even funny. Right. 497 00:32:24,229 --> 00:32:27,979 Suze: Every time you convert from a traditional to a Roth, 498 00:32:28,020 --> 00:32:32,199 Suze: that five year clock starts all over again. When you 499 00:32:32,209 --> 00:32:35,239 Suze: are putting in money in a contributory Roth, 500 00:32:35,900 --> 00:32:38,329 Suze: which is what this is. She's gonna open up a 501 00:32:38,339 --> 00:32:42,469 Suze: new Roth at Alliant. She has one at Vanguard. She could 502 00:32:42,479 --> 00:32:45,650 Suze: open up another one at Fidelity. It will all be 503 00:32:45,660 --> 00:32:51,109 Suze: based on the very first Roth she ever opened up. 504 00:32:51,119 --> 00:32:52,089 Suze: So the five year 505 00:32:52,265 --> 00:32:56,935 Suze: clock started my dear Susan when you opened up the 506 00:32:56,944 --> 00:32:58,344 Suze: Roth IRA at Vanguard. 507 00:32:59,594 --> 00:33:04,094 KT: Oh, I get it. But what if she takes money 508 00:33:04,104 --> 00:33:06,635 KT: from Vanguard and puts it into... 509 00:33:06,755 --> 00:33:08,415 Suze: She can do that? It has no effect. 510 00:33:08,900 --> 00:33:13,000 Suze: It doesn't stop. There is no way you can manipulate 511 00:33:13,010 --> 00:33:13,520 Suze: this int you being ok. 512 00:33:14,469 --> 00:33:17,800 KT: I'm listening. I thought for sure that that clock gets reset. 513 00:33:17,829 --> 00:33:20,130 Suze: And that's what I'm talking about everybody. 514 00:33:20,300 --> 00:33:23,369 KT: That's what she's talking. You should know this. 515 00:33:23,469 --> 00:33:25,920 Suze: No, that's not that you should or you shouldn't. There's, 516 00:33:25,930 --> 00:33:26,869 Suze: that's not it. 517 00:33:27,550 --> 00:33:32,239 Suze: There is information out there that KT would have honest 518 00:33:32,250 --> 00:33:34,560 Suze: to God believed that she was right. 519 00:33:35,150 --> 00:33:38,729 Suze: And then her sister would have asked her a question 520 00:33:38,739 --> 00:33:42,699 Suze: and she would have said no, Lynn clocks gonna get reset, 521 00:33:42,709 --> 00:33:46,819 Suze: the clock is gonna get reset. So, misinformation is passed 522 00:33:46,829 --> 00:33:51,079 Suze: from one person to another person under the guise of 523 00:33:51,089 --> 00:33:59,060 Suze: absolute correct inference. She anyway, but since we mentioned 524 00:33:59,133 --> 00:34:03,983 Suze: Alliant and Roth IRAs, I wanted Alliant and all of 525 00:34:03,993 --> 00:34:07,853 Suze: you may know this to create a retirement account, whether 526 00:34:07,863 --> 00:34:12,542 Suze: it's a Roth or a traditional IRA where all you 527 00:34:12,552 --> 00:34:17,962 Suze: could buy within them were certificates of deposits because I 528 00:34:17,972 --> 00:34:21,322 Suze: didn't want you to be vulnerable to financial 529 00:34:21,416 --> 00:34:24,335 Suze: people saying, oh, buy this, buy that. So if you 530 00:34:24,344 --> 00:34:28,166 Suze: want safe money, they have fabulous interest rates going on 531 00:34:28,176 --> 00:34:32,216 Suze: right now and you might wanna look, believe it or 532 00:34:32,226 --> 00:34:37,844 Suze: not at their three and five year certificate of deposits 533 00:34:37,916 --> 00:34:42,696 Suze: because I may be changing my theory from going really 534 00:34:42,706 --> 00:34:43,585 Suze: short term 535 00:34:44,158 --> 00:34:47,957 Suze: because interest rates are going up. I'm not sure treasuries 536 00:34:47,968 --> 00:34:51,249 Suze: are gonna go a whole lot higher anymore. A lot 537 00:34:51,259 --> 00:34:56,729 Suze: has changed after Silicon Valley Bank went belly up. So 538 00:34:56,739 --> 00:34:59,468 Suze: if you're going to open up a Roth or a 539 00:34:59,479 --> 00:35:04,319 Suze: traditional with Alliant Credit Union, then you would go to 540 00:35:04,329 --> 00:35:06,468 Suze: My Alliant dot com 541 00:35:06,729 --> 00:35:10,100 Suze: and check it out right there, if it's a retirement account. 542 00:35:10,250 --> 00:35:13,760 Suze: If you're just interested, by the way in there, really 543 00:35:13,770 --> 00:35:18,500 Suze: great interest rates for certificates to deposit outside of a 544 00:35:18,510 --> 00:35:22,899 Suze: retirement account, just go to My Alliant A L L 545 00:35:22,909 --> 00:35:26,520 Suze: I A N T dot com slash ultimate. 546 00:35:26,800 --> 00:35:30,459 Suze: And that's how it works. And I have to tell you, 547 00:35:30,469 --> 00:35:34,989 Suze: their three and five year certificates of deposit are a 548 00:35:35,000 --> 00:35:37,699 Suze: good point point and a half, more than a three 549 00:35:37,709 --> 00:35:42,909 Suze: and five year treasury, Everybody. So you might just want 550 00:35:42,919 --> 00:35:45,830 Suze: to take advantage of that. 551 00:35:46,389 --> 00:35:46,649 Suze: All right, KT. 552 00:35:47,469 --> 00:35:48,729 KT: That's a wrap, Suze. 553 00:35:48,739 --> 00:35:52,969 Suze: It's a wrap. So everybody until Sunday, when we are 554 00:35:52,979 --> 00:35:55,889 Suze: going to do a Suze School, let me say that 555 00:35:55,899 --> 00:36:00,909 Suze: again when I'm going to be doing a Suze School 556 00:36:00,919 --> 00:36:04,689 Suze: on what I think about I bonds interest rates, things 557 00:36:04,699 --> 00:36:09,330 Suze: like that also um Pioneer because as many of you know, 558 00:36:09,449 --> 00:36:12,709 Suze: it's skyrocketed. Exxon is gonna think about buying it. I 559 00:36:12,719 --> 00:36:15,429 Suze: have many comments for all of you. So 560 00:36:15,989 --> 00:36:20,359 Suze: until then, however, there's only one thing that both KT 561 00:36:20,370 --> 00:36:25,340 Suze: and I want you to say every single day, say 562 00:36:25,350 --> 00:36:25,699 Suze: it KT: 563 00:36:26,760 --> 00:36:33,919 KT: Today, Wherever I go, I will create a peaceful, joyful 564 00:36:33,929 --> 00:36:35,239 KT: and loving world. 565 00:36:35,250 --> 00:36:38,959 Suze: That's my girl. And if you do that, we promise 566 00:36:38,969 --> 00:36:44,520 Suze: you you will be unstoppable. Bye bye now. 567 00:36:45,110 --> 00:36:45,389 MUSIC: Music Out.