1 00:00:08,300 --> 00:00:12,369 Suze: March 19, 2026. Welcome everybody to the Women and Money 2 00:00:12,369 --> 00:00:12,920 Suze: podcast 3 00:00:13,409 --> 00:00:14,159 KT: And Everyone Smart Enough to Listen. 4 00:00:14,159 --> 00:00:17,120 Suze: This is the Ask Suze and KT edition. 5 00:00:17,379 --> 00:00:17,979 KT: Anything... 6 00:00:19,040 --> 00:00:19,090 Suze: Oh, right. 7 00:00:19,110 --> 00:00:22,399 KT: Ask KT and Suze anything edition. 8 00:00:22,459 --> 00:00:25,620 Suze: And if you want to ask us anything, please write 9 00:00:25,620 --> 00:00:30,139 Suze: into Ask Suze S U Z E podcast at gmail.com 10 00:00:31,642 --> 00:00:35,323 Suze: Keep it short. I promise you he won't even have 11 00:00:36,482 --> 00:00:37,763 Suze: an inkling of a chance. 12 00:00:38,402 --> 00:00:42,042 KT: Speaking about keeping it short, I got a pleading email. 13 00:00:42,443 --> 00:00:45,443 KT: Most of these, by the way, Suze, I've got this 14 00:00:45,443 --> 00:00:50,882 KT: barrage of Roth questions yet again, so people are probably still... 15 00:00:51,382 --> 00:00:52,362 Suze: You know why they write in about Roths? 16 00:00:52,534 --> 00:00:54,465 KT: Because it's tax time coming up? 17 00:00:54,465 --> 00:00:54,486 Suze: No. 18 00:00:55,576 --> 00:00:55,585 KT: Why? 19 00:00:55,745 --> 00:00:57,366 Suze: Because they know it is a topic. 20 00:00:57,416 --> 00:01:01,035 KT: Oh, it's a topic that's not, that doesn't endear me. 21 00:01:01,305 --> 00:01:03,666 KT: So that's why I'm not gonna talk about Roth for 22 00:01:03,666 --> 00:01:06,776 KT: my first question because this one was pleading, pick me, 23 00:01:06,905 --> 00:01:07,255 KT: pick me, pick me. 24 00:01:07,776 --> 00:01:10,426 Suze: Wait, so we're already starting. There, there's nothing we wanna 25 00:01:10,426 --> 00:01:11,176 Suze: talk about? 26 00:01:11,465 --> 00:01:12,106 KT: Not yet. 27 00:01:12,346 --> 00:01:14,486 Suze: You don't wanna talk about A Place Called Home? 28 00:01:15,360 --> 00:01:21,430 KT: Oh my God, what a great series. We've been binge-watching again, everyone. Woohoo. 29 00:01:21,830 --> 00:01:26,429 Suze: Yeah, we're binge-watching till like 1:30 or 2 o'clock every morning. 30 00:01:27,750 --> 00:01:29,980 Suze: Right, we're now on season 4. 31 00:01:30,550 --> 00:01:33,389 KT: Wait, let's tell everyone it's called. This is a series 32 00:01:33,389 --> 00:01:37,269 KT: from Australia that's not new. It's been around like that 33 00:01:37,269 --> 00:01:41,389 KT: for a decade. It's called A Place Called Home, but 34 00:01:41,389 --> 00:01:46,220 KT: it's a fabulous saga about the Blythe family in Australia, 35 00:01:46,470 --> 00:01:48,629 KT: and we're hooked on it. Suze and I are hooked 36 00:01:48,629 --> 00:01:52,750 KT: on this somewhat of a kind of a soap opera. 37 00:01:53,029 --> 00:01:54,949 KT: It's really intriguing. 38 00:01:55,300 --> 00:01:59,989 KT: And romantic and sad. I mean, we were both crying 39 00:01:59,989 --> 00:02:02,790 KT: the other night when they showed a funeral. We were 40 00:02:02,790 --> 00:02:05,970 KT: both crying. I, I said, Are you crying? She said, Yes. 41 00:02:06,230 --> 00:02:09,970 KT: I said, Me too. Anyway, you, if you haven't seen it, 42 00:02:10,389 --> 00:02:13,149 KT: and if you've got a whole lot of time, 43 00:02:13,229 --> 00:02:14,228 Suze: Which we don't... 44 00:02:14,389 --> 00:02:17,929 KT: We don't, we're getting frustrated because we, we wanna find 45 00:02:17,929 --> 00:02:18,389 KT: out what happens in the end. 46 00:02:19,002 --> 00:02:20,522 Suze: And I keep saying let's skip to the end. 47 00:02:20,522 --> 00:02:23,602 KT: And there's what, 30 episodes left? 48 00:02:23,651 --> 00:02:24,792 Suze: Yes, like 27. 49 00:02:26,882 --> 00:02:29,313 KT: All right, we'll get through it, but it's really fun 50 00:02:29,313 --> 00:02:31,483 KT: if you wanna watch a good series, if you have 51 00:02:31,483 --> 00:02:32,602 KT: a whole lot of time... 52 00:02:32,742 --> 00:02:35,203 Suze: Here's what's so great, everybody, I normally stay up every 53 00:02:35,203 --> 00:02:36,442 Suze: night till about 1 or 2 in the morning. 54 00:02:36,962 --> 00:02:39,643 KT: She reads, she writes to all of you. She's got, 55 00:02:39,763 --> 00:02:41,681 KT: she doesn't ever require the sleep, I do. 56 00:02:41,936 --> 00:02:45,174 Suze: Yeah, and we still wake up very, very early in 57 00:02:45,175 --> 00:02:49,436 Suze: the morning, and KT always goes to bed at about 10, 58 00:02:50,095 --> 00:02:52,606 Suze: and so now she, it's killing her. And me, it's 59 00:02:52,606 --> 00:02:55,725 Suze: like normal for me, but anyway, all right, Missy, what 60 00:02:55,725 --> 00:02:56,776 Suze: do you got for me today? 61 00:02:57,016 --> 00:03:00,614 KT: OK, so this, as I was saying, I'm, I'm this 62 00:03:00,615 --> 00:03:03,656 KT: first email I'm reading is a pleading, Suze, pick me, 63 00:03:03,815 --> 00:03:04,916 KT: pick me, pick me. 64 00:03:05,679 --> 00:03:06,750 KT: It's a short question. 65 00:03:06,839 --> 00:03:08,089 Suze: Is that all it takes? 66 00:03:08,369 --> 00:03:11,130 KT: No, but wait, I liked it because I, I learned 67 00:03:11,130 --> 00:03:14,210 KT: that it's about someone called Diamond, and anytime I see a, 68 00:03:14,288 --> 00:03:17,279 KT: a fun name like that, so here's what it says. Suze, 69 00:03:17,369 --> 00:03:19,850 KT: pick me, pick me, pick me. My friend told me 70 00:03:19,850 --> 00:03:24,130 KT: to check out Diamond Nest Egg on YouTube to learn 71 00:03:24,130 --> 00:03:28,449 KT: about high yield savings. Suze, do you recommend her? 72 00:03:28,990 --> 00:03:30,720 Suze: Funny, KT. So you picked it... 73 00:03:31,440 --> 00:03:34,639 KT: I like the name Diamond, but the, the whole pleading 74 00:03:34,639 --> 00:03:35,809 KT: email was, Suze... 75 00:03:35,919 --> 00:03:37,919 Suze: I got it. You read it. You read it. I 76 00:03:37,919 --> 00:03:40,759 Suze: got it. I heard it. Everybody listen. You know, a 77 00:03:40,759 --> 00:03:41,899 Suze: few years ago... 78 00:03:42,639 --> 00:03:43,630 KT: This is from Laurie, by the way. 79 00:03:43,919 --> 00:03:46,839 Suze: All right, Laurie, a few years ago, if you remember 80 00:03:46,839 --> 00:03:49,160 Suze: when all I was doing is talking about Series I 81 00:03:49,160 --> 00:03:50,660 Suze: bonds and everything. 82 00:03:51,160 --> 00:03:54,440 Suze: That's when I also referred all of you, believe it 83 00:03:54,440 --> 00:03:58,789 Suze: or not, to Diamond Nest Egg. She is on YouTube 84 00:03:59,440 --> 00:04:02,979 Suze: because I was like, oh my God, this woman is fabulous. 85 00:04:03,309 --> 00:04:07,100 Suze: If you are looking for a high yield savings account, 86 00:04:07,130 --> 00:04:10,919 Suze: truthfully and you wanna know the comparison between money market 87 00:04:10,919 --> 00:04:13,600 Suze: accounts and the offers that are really out there all 88 00:04:13,695 --> 00:04:16,695 Suze: across the board, especially if you want to know the 89 00:04:16,695 --> 00:04:22,375 Suze: difference between the money markets at Schwab, Fidelity, Vanguard. I 90 00:04:22,375 --> 00:04:24,045 Suze: go to her site and I have to tell you, 91 00:04:24,113 --> 00:04:29,334 Suze: I think she's fabulous. So check her, check her out. Seriously, 92 00:04:29,415 --> 00:04:32,174 Suze: I think she's worth her weight in diamonds. All right, 93 00:04:32,954 --> 00:04:35,695 Suze: go on. She's really great, KT. She really is 94 00:04:36,738 --> 00:04:39,670 KT: OK, so Laurie, I hope that answers your question. Pick me, 95 00:04:39,809 --> 00:04:43,029 KT: pick me, pick me. And the next one is from Sherry. 96 00:04:43,230 --> 00:04:44,390 KT: She said, Hi, Suze and KT. 97 00:04:45,380 --> 00:04:45,750 Suze: Hi Sherry. 98 00:04:45,829 --> 00:04:50,309 KT: Hi Sherry. I have an inherited IRA which I know 99 00:04:50,309 --> 00:04:53,988 KT: has to be at zero in 10 years. What I'm 100 00:04:53,988 --> 00:04:55,329 KT: wondering is, should I 101 00:04:55,684 --> 00:04:58,914 KT: re-buy some of the stocks after I sell them since 102 00:04:58,915 --> 00:05:02,795 KT: I can't transfer them. Seeing them in the IRA, I 103 00:05:02,795 --> 00:05:06,034 KT: can see how much they've grown over time. That makes 104 00:05:06,035 --> 00:05:09,635 KT: me have hope that they will continue to grow. So 105 00:05:09,635 --> 00:05:10,553 KT: that's her question. 106 00:05:10,674 --> 00:05:13,113 Suze: So KT, Sherry's one of the women that I happen 107 00:05:13,113 --> 00:05:14,614 Suze: to answer directly. 108 00:05:15,519 --> 00:05:19,720 Suze: Right? So I sometimes answer you directly when I don't 109 00:05:19,720 --> 00:05:22,119 Suze: want you to make a mistake, OK? 110 00:05:22,549 --> 00:05:25,969 Suze: And so here's what I told Sherry, everybody. She needed 111 00:05:25,970 --> 00:05:31,880 Suze: to learn about what's called in-kind distributions, just that simple. 112 00:05:32,209 --> 00:05:35,808 Suze: She doesn't have to sell and then re-buy in her 113 00:05:35,809 --> 00:05:40,450 Suze: new account. All she has to do is literally transfer in-kind, 114 00:05:40,529 --> 00:05:44,169 Suze: meaning if she has shares of XYZ stock, just to 115 00:05:44,170 --> 00:05:49,369 Suze: transfer the shares into her IRA, her inherited IRA, just 116 00:05:49,369 --> 00:05:51,649 Suze: that simple. She does not have to sell and re-buy. Next question, KT. 117 00:05:53,524 --> 00:05:57,904 KT: OK, from Liz. I changed jobs last month. I'm trying 118 00:05:57,904 --> 00:06:01,704 KT: to decide if I should roll over my 401k to 119 00:06:01,704 --> 00:06:07,565 KT: IRAs or transfer it to my new employer 401k plan. 120 00:06:07,825 --> 00:06:11,243 KT: I've been doing backdoor Roths for a few years now, 121 00:06:11,303 --> 00:06:15,295 KT: and I'm concerned that the pre-tax money in the 401k 122 00:06:15,584 --> 00:06:19,635 KT: going to a rollover IRA would be counted in the 123 00:06:19,635 --> 00:06:20,845 KT: pro rata rule. 124 00:06:21,510 --> 00:06:22,809 KT: So that's her question. 125 00:06:23,149 --> 00:06:23,729 Suze: Pop quizzy. 126 00:06:24,970 --> 00:06:26,950 KT: Oh well, ask me what the pop quizzy is. 127 00:06:27,260 --> 00:06:28,739 Suze: What is the question you just asked me? 128 00:06:29,178 --> 00:06:30,399 KT: So I've been doing... 129 00:06:30,540 --> 00:06:32,760 Suze: No, let me ask you the question, KT. 130 00:06:33,649 --> 00:06:39,510 Suze: If this person Sherry puts money into an IRA rollover, 131 00:06:39,859 --> 00:06:44,039 Suze: what's gonna happen if she then does a backdoor Roth? 132 00:06:44,220 --> 00:06:47,219 Suze: Will it count as the pro rata rule? 133 00:06:50,010 --> 00:06:51,808 Suze: When she does a back door? 134 00:06:51,809 --> 00:06:52,339 KT: I think, yes, 135 00:06:52,809 --> 00:06:53,250 Suze: Why? 136 00:06:55,779 --> 00:06:59,109 KT: I'm not quite, I'm not quite sure, but when you do.... 137 00:07:00,019 --> 00:07:04,459 KT: A rollover then the pro rata rule comes into effect 138 00:07:04,459 --> 00:07:08,339 Suze: And how could she avoid that if she did what instead? 139 00:07:08,940 --> 00:07:10,660 KT: Oh, she could avoid it if she didn't do that. 140 00:07:10,779 --> 00:07:12,390 KT: Just leave it in the 401k. 141 00:07:13,220 --> 00:07:18,140 Suze: Ding dingy dingy dingy. But you guessed that's why it's 142 00:07:18,140 --> 00:07:19,890 Suze: not a really enthusiastic ding. 143 00:07:21,880 --> 00:07:21,899 KT: I did... 144 00:07:21,899 --> 00:07:28,049 Suze: Do not do an IRA rollover if you're doing a backdoor Roth, 145 00:07:28,329 --> 00:07:31,690 Suze: cause then when you do a backdoor Roth, whatever amount 146 00:07:31,690 --> 00:07:34,649 Suze: of money you put into the backdoor Roth is going 147 00:07:34,649 --> 00:07:37,970 Suze: to be subjected to the pro rata rule. Money that 148 00:07:37,970 --> 00:07:43,640 Suze: is in a 401k, everybody is not subjected to it, 149 00:07:43,809 --> 00:07:45,730 Suze: just so you know, so you can do as many 150 00:07:45,730 --> 00:07:47,230 Suze: backdoor Roths as you want. 151 00:07:47,760 --> 00:07:50,760 Suze: As long as you don't have an IRA, a SEP IRA, 152 00:07:50,839 --> 00:07:55,359 Suze: a simple IRA, any type of IRA other than a Roth. 153 00:07:55,440 --> 00:07:56,079 Suze: All right, KT. 154 00:07:56,640 --> 00:08:00,720 KT: All right, this is from Kim. Hi, Suze, as always, thanks 155 00:08:00,720 --> 00:08:04,799 KT: to you and KT for everything you do. She thanking 156 00:08:04,799 --> 00:08:08,239 KT: me too. I can't seem to get a consistent answer 157 00:08:08,239 --> 00:08:09,679 KT: to this from anyone. 158 00:08:10,119 --> 00:08:11,839 Suze: KT will give you a consistent answer. 159 00:08:13,089 --> 00:08:18,489 KT: I inherited two non-spouse traditional IRAs. I know it has 160 00:08:18,489 --> 00:08:20,880 KT: to be withdrawn over the next 10 years. 161 00:08:22,239 --> 00:08:25,660 KT: However, do I have to take an RMD every year, 162 00:08:25,929 --> 00:08:28,160 KT: or can I do it when it would be best 163 00:08:28,160 --> 00:08:32,520 KT: for me? The deceased was 62, had not taken a 164 00:08:32,520 --> 00:08:37,960 KT: withdrawal on either IRA. I am 68, retired and not 165 00:08:37,960 --> 00:08:42,919 KT: drawing Social Security yet since I am the higher income spouse. 166 00:08:43,400 --> 00:08:47,010 Suze: So KT, does Kim say when this person died? 167 00:08:47,979 --> 00:08:48,890 KT: No, she doesn't. 168 00:08:49,070 --> 00:08:51,659 Suze: All right, so let's just assume because we're still pretty 169 00:08:51,659 --> 00:08:53,700 Suze: much at the beginning of this year and it takes 170 00:08:53,700 --> 00:08:58,049 Suze: a while when somebody dies that they died in 2025. 171 00:08:58,739 --> 00:09:01,380 Suze: Now what makes this special, and which is why Kim 172 00:09:01,380 --> 00:09:06,059 Suze: probably can't find an answer from anybody, is that Kim 173 00:09:06,059 --> 00:09:11,099 Suze: is actually older. She is 68 than the person who 174 00:09:11,099 --> 00:09:17,439 Suze: left her this IRA, which makes her an eligible designated beneficiary. 175 00:09:17,859 --> 00:09:21,179 Suze: So the first thing you need to know, Kim, is 176 00:09:21,179 --> 00:09:25,599 Suze: that you do not ever have to take RMDs based 177 00:09:25,780 --> 00:09:28,780 Suze: on the life expectancy of the person who left it 178 00:09:28,780 --> 00:09:30,580 Suze: to you, number one, because first of all, they weren't 179 00:09:30,580 --> 00:09:33,640 Suze: 73 when they died, they were 62. 180 00:09:34,190 --> 00:09:38,119 Suze: And you do not have to take RMDs based on 181 00:09:38,119 --> 00:09:42,469 Suze: your age from this account when you turn 73. It 182 00:09:42,469 --> 00:09:46,880 Suze: doesn't work that way. Your normal IRAs, you have to 183 00:09:46,880 --> 00:09:50,200 Suze: take it at 73 or the year after up to you. 184 00:09:50,340 --> 00:09:56,419 Suze: However, in an inherited IRA, it is not based on 185 00:09:56,419 --> 00:10:02,250 Suze: your age when you turn 73. Now listen closely, girlfriend, 186 00:10:02,700 --> 00:10:09,439 Suze: because you are an eligible designated beneficiary. You have two choices. 187 00:10:09,780 --> 00:10:15,280 Suze: You can take the distributions based on your life expectancy. 188 00:10:16,489 --> 00:10:19,210 Suze: You do not have to wipe it clean in 10 189 00:10:19,210 --> 00:10:23,010 Suze: years unless you choose to. So you're going to have 190 00:10:23,010 --> 00:10:26,608 Suze: to talk to the custodian of this account wherever it's at. 191 00:10:27,020 --> 00:10:30,520 Suze: And you're going to have to tell them now how 192 00:10:30,520 --> 00:10:34,260 Suze: you expect to take this money again. You can do 193 00:10:34,260 --> 00:10:38,419 Suze: it over your entire life starting this year if the 194 00:10:38,419 --> 00:10:42,739 Suze: person died last year, or you can choose the 10 195 00:10:42,739 --> 00:10:46,260 Suze: year method where it has to be wiped clean in 196 00:10:46,260 --> 00:10:50,500 Suze: 10 years. Now, if you choose that method. 197 00:10:51,369 --> 00:10:54,900 Suze: Just be careful if you choose not to take any 198 00:10:54,900 --> 00:11:00,809 Suze: distributions whatsoever until 10 years from now when you will 199 00:11:00,809 --> 00:11:06,169 Suze: be 78. You have to be very careful because 100% 200 00:11:06,169 --> 00:11:08,289 Suze: of that account, I don't know how much is in it, 201 00:11:08,530 --> 00:11:12,380 Suze: will be taxed to you as ordinary income at that time. 202 00:11:12,679 --> 00:11:16,500 Suze: So if I were you, I would probably start taking 203 00:11:16,849 --> 00:11:21,959 Suze: distributions right now based on your life expectancy and stretch 204 00:11:21,960 --> 00:11:25,479 Suze: it for as long as you can. But again, I 205 00:11:25,479 --> 00:11:29,039 Suze: would say a CPA and which one works best for 206 00:11:29,039 --> 00:11:32,760 Suze: your income tax bracket. You know, it's funny, KT, I 207 00:11:32,760 --> 00:11:36,960 Suze: don't know why that question was so hard to answer. 208 00:11:37,479 --> 00:11:38,500 Suze: Like she kept... 209 00:11:38,500 --> 00:11:41,400 KT: She said she wasn't able to get a consistent answer 210 00:11:41,400 --> 00:11:41,609 KT: from anyone. 211 00:11:42,450 --> 00:11:44,119 Suze: Well, what does that tell you? Because this is actually... 212 00:11:44,119 --> 00:11:45,289 KT: That's why she wrote to Suze. 213 00:11:45,479 --> 00:11:50,580 Suze: That's a very simplistic question if you know the rules 214 00:11:50,799 --> 00:11:53,080 Suze: of retirement accounts. Next question, KT. 215 00:11:53,960 --> 00:11:56,429 KT: All right, Suze. Next question is from Ellen. 216 00:11:56,880 --> 00:11:59,069 Suze: Oh wait, tell me. Let me tell you, no, wait, 217 00:11:59,280 --> 00:12:01,640 Suze: just tell me it's about an IRA or a Roth. 218 00:12:01,979 --> 00:12:02,439 KT: It's about a Roth... 219 00:12:02,559 --> 00:12:04,709 Suze: Are you doing it because it's close to tax time? 220 00:12:05,159 --> 00:12:09,340 KT: No, I just got barraged with so many Roth emails again. 221 00:12:10,190 --> 00:12:10,439 Suze: All right, go on. 222 00:12:10,599 --> 00:12:13,919 KT: So good morning, KT and Suze. I have a Roth 223 00:12:13,919 --> 00:12:18,640 KT: IRA over 5 years now, but I don't qualify to 224 00:12:18,640 --> 00:12:22,599 KT: fund it because my income is over the limit. I 225 00:12:22,599 --> 00:12:27,619 KT: am funding my Roth 403b through my paycheck. After retirement, 226 00:12:27,830 --> 00:12:31,439 KT: when I roll over my Roth 403b to my Roth IRA, 227 00:12:31,989 --> 00:12:35,309 KT: does that money follow the five year rule? 228 00:12:35,549 --> 00:12:39,750 Suze: So here's the good news, girlfriend. You already met the 229 00:12:39,750 --> 00:12:44,228 Suze: five year rule because you've had a Roth IRA open 230 00:12:44,229 --> 00:12:48,549 Suze: for five years. Does not matter at all if you 231 00:12:48,549 --> 00:12:51,968 Suze: fund it anymore or not. You're fine no matter when 232 00:12:52,340 --> 00:12:56,250 Suze: you roll over your Roth 403B into that Roth IRA. 233 00:12:56,510 --> 00:12:59,929 Suze: It has met the five year rule. However, for those 234 00:12:59,929 --> 00:13:01,109 Suze: of you listening. 235 00:13:01,640 --> 00:13:04,770 Suze: If you didn't have a Roth IRA yet, and all 236 00:13:04,770 --> 00:13:08,239 Suze: you have is a Roth 401k or a Roth 403B 237 00:13:08,239 --> 00:13:11,929 Suze: or a Roth TSP and now you want to roll 238 00:13:11,929 --> 00:13:15,689 Suze: it over into a Roth IRA and you open a 239 00:13:15,690 --> 00:13:18,570 Suze: Roth IRA for the first time, thinking 240 00:13:18,890 --> 00:13:21,770 Suze: that the amount of time that you've had your retirement 241 00:13:21,770 --> 00:13:25,390 Suze: account open at your employer's meets the five year rule, 242 00:13:25,530 --> 00:13:29,760 Suze: it does not work that way. It does not follow 243 00:13:29,760 --> 00:13:33,729 Suze: you to an individual Roth IRA. So all of you 244 00:13:33,729 --> 00:13:37,729 Suze: out there, make sure that you have opened a Roth 245 00:13:37,729 --> 00:13:40,848 Suze: IRA right now if you have an employer sponsored plan, 246 00:13:42,075 --> 00:13:45,674 Suze: so that you can start the five year clock running 247 00:13:45,674 --> 00:13:48,034 Suze: right now. You could only fund it with $1 if 248 00:13:48,034 --> 00:13:51,655 Suze: you want, but fund it now. Next question, KT. 249 00:13:52,155 --> 00:13:54,215 KT: So next question is from Susan. 250 00:13:54,315 --> 00:13:56,804 Suze: Oh, let me... is it on a Roth, on an IRA? 251 00:13:57,275 --> 00:14:01,593 KT: No, no. Finally we have... this is divorce. I got 252 00:14:01,594 --> 00:14:02,914 KT: a lot of those too. 253 00:14:03,549 --> 00:14:07,400 KT: So I'm tormented, Suze, with making a real estate decision 254 00:14:07,989 --> 00:14:09,868 KT: in North Central Florida. 255 00:14:10,429 --> 00:14:14,549 Suze: Wait, can I say something since you just said that about divorce, right? 256 00:14:14,869 --> 00:14:17,539 Suze: And I wanna go back to A Place Called Home, that, 257 00:14:17,609 --> 00:14:21,989 Suze: that series that we're watching. What strikes me, KT, seriously, 258 00:14:22,070 --> 00:14:23,469 Suze: and this is really to you... 259 00:14:24,109 --> 00:14:28,349 Suze: Is how lucky we are, how very lucky the two 260 00:14:28,349 --> 00:14:33,479 Suze: of us are, because we don't have any of those problems. 261 00:14:33,750 --> 00:14:38,250 Suze: We have never lied to one another. We trust one another. 262 00:14:38,469 --> 00:14:44,090 Suze: We don't have jealousy problems. We don't. We're just so lucky, KT. 263 00:14:44,482 --> 00:14:46,963 Suze: So I just wanted to thank you for being in 264 00:14:46,963 --> 00:14:48,382 Suze: my life. Seriously. 265 00:14:48,562 --> 00:14:49,622 KT: That's so sweet. 266 00:14:49,763 --> 00:14:51,523 Suze: No, but I'm very serious, because... 267 00:14:51,723 --> 00:14:54,463 KT: I'm looking at her face and she's really serious. 268 00:14:54,893 --> 00:14:59,002 Suze: No, I am serious because not everybody is as lucky 269 00:14:59,002 --> 00:15:01,603 Suze: as we are. And so one of the reasons that 270 00:15:01,603 --> 00:15:04,763 Suze: I want to say that is, please don't ever settle 271 00:15:04,856 --> 00:15:09,416 Suze: in a relationship, please don't do that. Don't stay just 272 00:15:09,416 --> 00:15:13,255 Suze: because you're afraid to leave. I stayed in a relationship, seriously, 273 00:15:13,255 --> 00:15:16,656 Suze: for 8 years because I was afraid to leave. Biggest 274 00:15:16,656 --> 00:15:20,835 Suze: mistake I ever made, really. So always stand in your truth. 275 00:15:21,335 --> 00:15:25,135 Suze: Always do what's right for yourself, but don't stay. 276 00:15:25,820 --> 00:15:31,450 Suze: It does not pay when it isn't based in love, trust, integrity, 277 00:15:31,539 --> 00:15:32,500 Suze: and loyalty. 278 00:15:33,000 --> 00:15:33,820 Suze: Alright, KT. 279 00:15:33,989 --> 00:15:37,880 KT: Well, wait to hear the rest of this. So she said, 280 00:15:37,919 --> 00:15:44,039 KT: I'm 73 and a half, divorced five years. She stayed 281 00:15:44,039 --> 00:15:45,320 KT: for a long time. 282 00:15:45,429 --> 00:15:46,440 Suze: Is she still there? 283 00:15:46,880 --> 00:15:50,460 KT: Well, wait, I'm 73 and a half, divorced five years, 284 00:15:50,479 --> 00:15:54,099 KT: and we are still living at the home we built 285 00:15:54,280 --> 00:15:58,440 KT: 26 years ago due to a failed 286 00:15:58,684 --> 00:16:04,525 KT: sale and prolonged remodel. They've been probably miserable for a 287 00:16:04,525 --> 00:16:05,315 KT: long time... both of them. 288 00:16:05,315 --> 00:16:05,484 Suze: Or maybe they're ok. Them doing that. 289 00:16:07,325 --> 00:16:10,005 Suze: I mean there are things as amicable divorces. 290 00:16:11,405 --> 00:16:15,085 KT: So Susan said my decision is to buy or rent 291 00:16:15,085 --> 00:16:18,395 KT: after the sale. Buying would be in the neighborhood of 292 00:16:18,395 --> 00:16:24,054 KT: $315,000 which I can buy outright once we sell. 293 00:16:25,500 --> 00:16:30,979 KT: Renting would be $1,600 to $2,000 monthly. I have liquid 294 00:16:30,979 --> 00:16:34,289 KT: money for expenses from my Social Security and pension. 295 00:16:34,710 --> 00:16:37,780 KT: Suze, would I be better off buying in a planned 296 00:16:37,780 --> 00:16:41,890 KT: neighborhood or renting and keeping a large amount of money 297 00:16:42,229 --> 00:16:47,669 KT: in a secure interest bearing account? I'm tormented in knowing 298 00:16:47,669 --> 00:16:50,750 KT: what the best route is at this time in my life. She's 73. 299 00:16:51,270 --> 00:16:55,138 Suze: Where... in Florida, right? 300 00:16:55,138 --> 00:16:57,070 KT: I need.. in North Central Florida... 301 00:16:57,484 --> 00:17:00,525 KT: I need a financial expert to help pave my way. 302 00:17:00,604 --> 00:17:04,405 KT: My most sincere thanks, Suze. She's our age. What do 303 00:17:04,405 --> 00:17:05,185 KT: you recommend? 304 00:17:05,525 --> 00:17:06,405 Suze: What would you tell her? 305 00:17:06,805 --> 00:17:07,824 KT: Definitely rent. 306 00:17:08,084 --> 00:17:08,285 Suze: You betcha. 307 00:17:08,964 --> 00:17:13,405 KT: Rent, rent, and keep the, keep, keep a big nest 308 00:17:13,405 --> 00:17:17,324 KT: egg you can live on, feel secure. Don't worry about 309 00:17:17,324 --> 00:17:19,685 KT: money if you own a home again. 310 00:17:20,199 --> 00:17:22,359 KT: Someone's got it. You have, you have all these things 311 00:17:22,359 --> 00:17:23,040 KT: to go with it. 312 00:17:23,119 --> 00:17:25,478 Suze: So Susan, here's the lesson that I want you to 313 00:17:25,479 --> 00:17:29,859 Suze: have learned, all right? You have had to stay living 314 00:17:30,800 --> 00:17:37,930 Suze: with your ex-spouse now that you're divorced five years, five years! Why? 315 00:17:38,280 --> 00:17:41,560 Suze: Because the house did not sell. 316 00:17:41,930 --> 00:17:44,719 Suze: A piece of real estate is not like a stock 317 00:17:44,890 --> 00:17:46,739 Suze: that if you want to sell it, you pick up 318 00:17:46,739 --> 00:17:49,139 Suze: the phone or you push a little button and two 319 00:17:49,140 --> 00:17:52,699 Suze: seconds later it is sold. KT and I know this 320 00:17:52,699 --> 00:17:56,300 Suze: very well cause it took us one year to sell 321 00:17:56,300 --> 00:18:00,939 Suze: the island home, OK? One full year. 322 00:18:01,510 --> 00:18:05,300 Suze: So I would not buy again if I were you. 323 00:18:05,579 --> 00:18:07,989 Suze: KT and I have made a decision. We are never 324 00:18:07,989 --> 00:18:12,150 Suze: buying another home, and we went from five homes to 325 00:18:12,150 --> 00:18:15,229 Suze: now a little, , one little condo, and we are 326 00:18:15,229 --> 00:18:17,250 Suze: so happy. I can't tell you. 327 00:18:17,790 --> 00:18:17,866 KT: We might buy a boat. 328 00:18:17,866 --> 00:18:19,290 Suze: No, we're not buying a boat. 329 00:18:19,430 --> 00:18:19,610 KT: We might by a plane. 330 00:18:19,610 --> 00:18:23,270 Suze: We're not buying a plane. We're not buying anything again, 331 00:18:23,469 --> 00:18:24,709 Suze: so listen to me. 332 00:18:25,339 --> 00:18:29,660 Suze: Florida, I don't care where you are in Florida. Florida 333 00:18:29,660 --> 00:18:33,760 Suze: insurance is off the roof right now for property insurance, 334 00:18:33,859 --> 00:18:36,739 Suze: so you have to have insurance even though you're buying 335 00:18:36,739 --> 00:18:40,849 Suze: it outright because of hurricanes, floods, all kinds of things, 336 00:18:40,859 --> 00:18:45,339 Suze: you cannot chance it. That's one. Number two, there are 337 00:18:45,339 --> 00:18:48,459 Suze: all kinds of expenses when you buy a home. 338 00:18:48,930 --> 00:18:54,510 Suze: Not only do you have, as KT mentioned, property taxes, insurance, maintenance, 339 00:18:54,689 --> 00:19:00,599 Suze: all kinds of things, decorating, repair everything. Once you've bought 340 00:19:00,599 --> 00:19:04,290 Suze: a home, once you've done it, it is done. If 341 00:19:04,290 --> 00:19:08,229 Suze: I were you, can you just rent, rent a place 342 00:19:08,229 --> 00:19:09,948 Suze: that you really enjoy 343 00:19:10,439 --> 00:19:13,639 Suze: your money that you would have used to buy the 344 00:19:13,640 --> 00:19:17,198 Suze: house will generate more than enough interest to pay for 345 00:19:17,199 --> 00:19:22,119 Suze: a really great apartment. Just do that. And as you 346 00:19:22,119 --> 00:19:25,260 Suze: get older, I don't know if you have children or whatever, 347 00:19:25,439 --> 00:19:28,198 Suze: but do you have long term care insurance? Who's going 348 00:19:28,199 --> 00:19:30,619 Suze: to take care of you as you do get older, 349 00:19:30,829 --> 00:19:34,239 Suze: you may find that you want to move into an 350 00:19:34,239 --> 00:19:37,760 Suze: independent living facility where you're around other people. 351 00:19:38,074 --> 00:19:41,655 Suze: And there are different types of care there. So no, 352 00:19:41,895 --> 00:19:45,464 Suze: do not buy an individual home at this point in time. 353 00:19:45,744 --> 00:19:49,145 Suze: That's just my opinion. I can tell KT agrees with that. 354 00:19:49,425 --> 00:19:50,344 KT: Totally agree. 355 00:19:50,505 --> 00:19:53,064 Suze: You can always do it, but don't do it yet, 356 00:19:53,114 --> 00:19:55,264 Suze: and I just have to say one more thing. 357 00:19:56,170 --> 00:19:58,489 Suze: Even though you have been divorced five years, you've been 358 00:19:58,489 --> 00:20:02,410 Suze: living together one way or the other. You've been there, 359 00:20:02,890 --> 00:20:03,989 Suze: so therefore, 360 00:20:04,359 --> 00:20:07,800 Suze: you are to do absolutely nothing for at least six 361 00:20:07,800 --> 00:20:11,919 Suze: months to one year after suffering a loss. And even 362 00:20:11,920 --> 00:20:14,949 Suze: though this may not seem like a loss after five years, 363 00:20:15,180 --> 00:20:18,359 Suze: it's going to be a change because he's been there. 364 00:20:18,479 --> 00:20:20,639 Suze: Maybe he's on the property, who knows where he is 365 00:20:20,640 --> 00:20:22,680 Suze: when we're there. Maybe you have him a little cabin 366 00:20:22,880 --> 00:20:26,439 Suze: down the road. I don't know. Please go slow and 367 00:20:26,439 --> 00:20:28,060 Suze: don't do it. All right, go on, KT. 368 00:20:28,280 --> 00:20:29,760 KT: All right, from Clare. 369 00:20:30,510 --> 00:20:36,310 KT: Suze, I have several savings, 401ks and mutual funds totaling 370 00:20:36,310 --> 00:20:40,510 KT: 1.3 million. I want to set up a trust and 371 00:20:40,510 --> 00:20:43,189 KT: life estate for my son and grandson. 372 00:20:43,550 --> 00:20:46,389 KT: I have heard that each of us should have an 373 00:20:46,390 --> 00:20:50,010 KT: insurance policy that would go into the trust to assist 374 00:20:50,010 --> 00:20:54,389 KT: with funding the trust. What insurance agent sold her that story? 375 00:20:54,569 --> 00:20:57,069 Suze: Well, that's my girl KT. I'm like, where did you 376 00:20:57,069 --> 00:21:00,969 Suze: hear that? You wanna leave a legacy seriously for your kids? 377 00:21:01,885 --> 00:21:05,864 Suze: Don't bother with a life insurance policy. You're already gonna 378 00:21:05,864 --> 00:21:10,425 Suze: be leaving them $1.3 million. I don't know how old 379 00:21:10,425 --> 00:21:13,165 Suze: you are. I don't know when you're gonna die. You 380 00:21:13,165 --> 00:21:16,444 Suze: don't know when you're gonna die. Do not waste your 381 00:21:16,444 --> 00:21:18,694 Suze: money on life insurance. 382 00:21:19,540 --> 00:21:23,060 KT: So sad, so sad that people get advice like that. 383 00:21:23,349 --> 00:21:24,339 KT: Just not right. 384 00:21:24,589 --> 00:21:25,859 Suze: All right, you got any more? 385 00:21:25,979 --> 00:21:28,339 KT: Yes, I do. I have one last one, and it's 386 00:21:28,339 --> 00:21:31,979 KT: always important for very special people, and this is about 387 00:21:31,979 --> 00:21:36,050 KT: a special needs trust. Hi Suze and KT. My husband 388 00:21:36,050 --> 00:21:39,069 KT: and I are in our mid-seventies and retired. 389 00:21:39,729 --> 00:21:44,030 KT: We set up a living revocable trust in 2010 using 390 00:21:44,030 --> 00:21:49,839 KT: an elder law attorney. Since our younger adult daughter is disabled, 391 00:21:50,099 --> 00:21:53,849 KT: we want to set up and fund an SNT for 392 00:21:53,849 --> 00:21:57,890 KT: her at the same time. Instead, a provision in the 393 00:21:57,890 --> 00:22:00,489 KT: will and trust states that at the time of our death, 394 00:22:00,650 --> 00:22:01,030 KT: the SNT 395 00:22:01,464 --> 00:22:06,074 KT: will be set up to receive her portion in any inheritance. 396 00:22:06,505 --> 00:22:06,755 Suze: That's a mistake. 397 00:22:06,755 --> 00:22:09,464 KT: I've always had a nagging feeling that we should set 398 00:22:09,464 --> 00:22:13,504 KT: up and at least fund the SNT prior to our death. 399 00:22:13,625 --> 00:22:14,265 Suze: Good for her. 400 00:22:14,824 --> 00:22:17,974 KT: Our older daughter is single. She lives in Texas while 401 00:22:17,974 --> 00:22:21,905 KT: our younger daughter lives in a nonprofit group home in 402 00:22:21,905 --> 00:22:22,675 KT: New York. 403 00:22:23,660 --> 00:22:25,979 Suze: So, the reason I already knew it was a mistake 404 00:22:25,979 --> 00:22:29,060 Suze: is this is another situation, KT where I answered this 405 00:22:29,060 --> 00:22:31,879 Suze: person directly because again, everybody listen. 406 00:22:32,510 --> 00:22:36,180 Suze: When you write in, I peruse late at night at 407 00:22:36,180 --> 00:22:39,550 Suze: 1 or 2 in the morning, your questions, not knowing 408 00:22:39,560 --> 00:22:42,719 Suze: which one KT will pick and not being able to 409 00:22:42,719 --> 00:22:45,679 Suze: read all of them, trust me, but every once in 410 00:22:45,680 --> 00:22:48,319 Suze: a while when I catch a headline like the headline 411 00:22:48,319 --> 00:22:52,319 Suze: on this one was Special Needs Trust, I read it 412 00:22:52,640 --> 00:22:55,599 Suze: and if I think the person really needs to know 413 00:22:55,599 --> 00:23:00,520 Suze: the answer, I write them back directly, so I did. 414 00:23:00,959 --> 00:23:04,040 Suze: And I wrote her back in great detail, so I 415 00:23:04,040 --> 00:23:07,280 Suze: won't go into that much detail right now, but here's 416 00:23:07,280 --> 00:23:11,619 Suze: the news, everybody. If you have a special needs child, 417 00:23:12,099 --> 00:23:14,659 Suze: chances are they are on SSI. 418 00:23:15,359 --> 00:23:20,228 Suze: Social Security income, which means they get 600 a month 419 00:23:20,229 --> 00:23:23,589 Suze: or whatever it may be because they're special needs. If 420 00:23:23,589 --> 00:23:28,790 Suze: you leave them money directly, it will disqualify them for 421 00:23:28,790 --> 00:23:32,469 Suze: SSI and good luck for them to get back on it. 422 00:23:32,869 --> 00:23:35,939 Suze: So if you have a child that has special needs, 423 00:23:36,150 --> 00:23:39,629 Suze: you want to set up a special needs trust where 424 00:23:39,630 --> 00:23:42,079 Suze: all the money goes into that trust. 425 00:23:42,650 --> 00:23:46,819 Suze: And somebody, and in this case the older daughter will 426 00:23:46,819 --> 00:23:49,959 Suze: decide what is needed, how much money should go out, 427 00:23:50,180 --> 00:23:54,060 Suze: and the daughter that is a special needs person will 428 00:23:54,060 --> 00:23:58,060 Suze: still get SSI. You do not want to set it 429 00:23:58,060 --> 00:24:01,660 Suze: up though, the way that her lawyer had her set 430 00:24:01,660 --> 00:24:05,699 Suze: it up, because that will take time. It will be difficult. 431 00:24:05,780 --> 00:24:09,359 Suze: You just don't want to do it. So many families 432 00:24:09,994 --> 00:24:14,655 Suze: do choose to create a standalone special needs trust during 433 00:24:14,655 --> 00:24:18,545 Suze: their lifetime. So what that means is that the trust 434 00:24:18,545 --> 00:24:22,494 Suze: already exists, that the trustee has been named, meaning their 435 00:24:22,494 --> 00:24:26,935 Suze: older daughter. The structure is tested and the older daughter 436 00:24:26,935 --> 00:24:31,295 Suze: KT will know exactly what to do, and they can 437 00:24:31,295 --> 00:24:35,694 Suze: fund it with as little as $10, $100, or a 438 00:24:35,694 --> 00:24:36,895 Suze: small investment. 439 00:24:37,469 --> 00:24:40,228 Suze: So for the sister, I just want to say who 440 00:24:40,229 --> 00:24:43,849 Suze: will be managing everything, this is gonna be a huge 441 00:24:43,849 --> 00:24:50,069 Suze: gift of simplicity for their daughter. The sister, are you 442 00:24:50,069 --> 00:24:55,369 Suze: kidding me? But here's what's really important, all right? Two things: 443 00:24:55,790 --> 00:24:58,150 Suze: they should create a letter of intent. 444 00:24:58,859 --> 00:25:03,099 Suze: So the sister knows exactly what to do, describing the 445 00:25:03,099 --> 00:25:07,380 Suze: daughter's needs, establishing the relationships and all of that, how 446 00:25:07,380 --> 00:25:10,099 Suze: much money should be used so they also can have 447 00:25:10,099 --> 00:25:14,819 Suze: control from their grave. One last thing, since their older 448 00:25:14,819 --> 00:25:18,020 Suze: daughter who's gonna be responsible for everything, is single and 449 00:25:18,020 --> 00:25:22,380 Suze: lives in Texas, but their younger daughter lives in a 450 00:25:22,380 --> 00:25:25,199 Suze: nonprofit group home in New York. 451 00:25:25,780 --> 00:25:31,060 Suze: Just make sure that the special needs trust complies with 452 00:25:31,060 --> 00:25:36,459 Suze: New York Medicaid rules so that everything works really smoothly 453 00:25:36,459 --> 00:25:39,900 Suze: across states. So if I were you, here's the bottom 454 00:25:39,900 --> 00:25:42,458 Suze: line of advice. Since you set this all up in 455 00:25:42,459 --> 00:25:48,379 Suze: 2010 using an elder law attorney, that's what, 15 years ago, 456 00:25:48,439 --> 00:25:50,719 Suze: 16 years ago now, really. 457 00:25:51,270 --> 00:25:55,359 Suze: Let's do it all over again with a different elder 458 00:25:55,359 --> 00:25:58,069 Suze: law attorney. Is that really it, KT? 459 00:25:58,719 --> 00:26:02,569 KT: That's a wrap, Suze. Now tell everyone what we're doing tonight. 460 00:26:03,510 --> 00:26:05,109 KT: Tonight we have a girls' night out. 461 00:26:06,250 --> 00:26:07,899 KT: We have a girls' night out. It's gonna be a 462 00:26:07,900 --> 00:26:08,459 KT: lot of fun. 463 00:26:08,900 --> 00:26:13,180 Suze: We are going to see a comedian, Cristela Alonzo. She 464 00:26:13,180 --> 00:26:16,439 Suze: has three Netflix specials out. I told you about her before. 465 00:26:16,900 --> 00:26:22,660 Suze: She's very, very funny, and we're going tonight with KT's 466 00:26:22,660 --> 00:26:26,459 Suze: twin sister and Meryl, her very good friend, hopefully will 467 00:26:26,459 --> 00:26:29,109 Suze: be our friend because we just love her so much. 468 00:26:29,300 --> 00:26:33,500 Suze: And anyway, and that's where we're going. So KT, wanna 469 00:26:33,500 --> 00:26:34,359 Suze: say anything else? 470 00:26:35,550 --> 00:26:38,380 Suze: No, you don't. You're done. You've had it. 471 00:26:38,459 --> 00:26:38,839 KT: I'm done. 472 00:26:39,109 --> 00:26:42,650 Suze: You're done. All right, until Sunday. And again, I never 473 00:26:42,650 --> 00:26:45,739 Suze: know what I'm gonna do on Sunday, right? But until 474 00:26:45,739 --> 00:26:48,229 Suze: Sunday there's only one thing that we want you to remember. 475 00:26:48,349 --> 00:26:49,869 Suze: And what is it, Miss Travis? 476 00:26:50,430 --> 00:26:52,530 KT: People first, then money, then things. 477 00:26:52,709 --> 00:26:57,170 Suze: Now you stay safe, and I hope that this podcast 478 00:26:57,170 --> 00:27:00,900 Suze: is a place that you call home. 479 00:27:01,030 --> 00:27:01,869 KT: Oh, that's good. 480 00:27:02,489 --> 00:27:03,708 Suze: That was good. Bye-bye.