1 00:00:08,029 --> 00:00:11,488 KT: Welcome everyone to the Women in Money podcast and everyone 2 00:00:12,510 --> 00:00:16,069 KT: smart enough to listen. This is the Ask Suze and 3 00:00:16,069 --> 00:00:18,430 KT: KT Anything edition. 4 00:00:18,879 --> 00:00:23,690 KT: And today's a special day. It's June 25th, 2026. 5 00:00:24,219 --> 00:00:28,290 Suze: All right, now, everybody, why do you think today is 6 00:00:28,290 --> 00:00:31,010 Suze: a special day? Tell everybody, KT. 7 00:00:31,010 --> 00:00:35,490 KT: It's Travis's birthday, and Travis, I can't believe how old 8 00:00:35,490 --> 00:00:37,729 KT: you are, and I can't believe you're getting married this year. 9 00:00:38,409 --> 00:00:40,810 Suze: In September. Who is Travis? Tell everybody. 10 00:00:40,810 --> 00:00:45,008 KT: Travis is our nephew, and Travis is very special 11 00:00:45,439 --> 00:00:49,278 KT: to me for many, many reasons, but he is our 12 00:00:49,279 --> 00:00:52,778 KT: nephew that lives in Colorado, and we just love him 13 00:00:52,779 --> 00:00:53,830 KT: up dearly. 14 00:00:54,040 --> 00:00:58,869 Suze: Wait, nobody loves him more than his aunt Kathy. They 15 00:00:58,869 --> 00:01:01,119 Suze: have this special relationship, and I just sit there I go... 16 00:01:01,680 --> 00:01:03,840 KT: He's my angel boy, and he knows why. 17 00:01:04,040 --> 00:01:08,009 Suze: I go, OK, now, but anyway, happy birthday, big boy. 18 00:01:08,120 --> 00:01:09,279 Suze: How old is he, KT? 19 00:01:09,440 --> 00:01:11,399 KT: He's gonna be 29, Suze. 20 00:01:11,930 --> 00:01:14,169 Suze: I have to tell you, everybody, he is the only 21 00:01:14,169 --> 00:01:16,610 Suze: man in my life who has traumatized me. 22 00:01:17,830 --> 00:01:19,930 KT: Why, why? 23 00:01:19,989 --> 00:01:24,669 Suze: Do you rememember, so listen, I know, I know. So this, I, I, we, 24 00:01:24,790 --> 00:01:27,430 Suze: we always tell stories now when we start, but it's 25 00:01:27,430 --> 00:01:30,150 Suze: because we like to, so we're going to. So when 26 00:01:30,150 --> 00:01:35,230 Suze: the kids were growing up, they stayed with us every 27 00:01:35,230 --> 00:01:40,019 Suze: single summer here at our condo where we still live now, 28 00:01:40,309 --> 00:01:43,709 Suze: and it's a small two bedroom condo, and there's four 29 00:01:43,709 --> 00:01:44,229 Suze: of them. 30 00:01:44,879 --> 00:01:51,650 Suze: And we always stayed together and Travis must have been three, four, five... 31 00:01:52,089 --> 00:01:52,870 Suze: really tiny... 32 00:01:52,919 --> 00:01:53,559 KT: About three years old... 33 00:01:54,250 --> 00:01:56,910 Suze: And he was into Pokemon 34 00:01:57,709 --> 00:02:00,370 KT: I know he was so excited about those Pokemon cards. 35 00:02:01,129 --> 00:02:03,089 Suze: So I'm in the bathroom. 36 00:02:03,709 --> 00:02:05,271 KT: She's doing her morning business... 37 00:02:05,271 --> 00:02:06,129 Suze: All right, everybody... 38 00:02:06,410 --> 00:02:06,569 KT: And she's naked. 39 00:02:07,129 --> 00:02:09,978 Suze: All right, everybody, and he walks right in... 40 00:02:10,649 --> 00:02:11,690 Suze: In his little pajamas... 41 00:02:11,690 --> 00:02:14,369 Suze: And leans on me to show me 42 00:02:14,574 --> 00:02:17,455 Suze: his Pokemon cards and this is the first time really 43 00:02:17,455 --> 00:02:20,315 Suze: my introduction to kids, so to speak, and I'm like, 44 00:02:20,574 --> 00:02:21,484 Suze: are you kidding me? 45 00:02:21,895 --> 00:02:24,494 KT: And she's completely naked and it didn't faze him at 46 00:02:24,494 --> 00:02:27,654 KT: all and he couldn't wait to show his Aunt Suze 47 00:02:27,815 --> 00:02:33,335 KT: and I hear her saying, KT, KT, help me. 48 00:02:33,335 --> 00:02:37,014 Suze: So anyway, but Trav, I don't know if you remember that, 49 00:02:37,133 --> 00:02:40,335 Suze: but I sure do. All right, KT, now we wait 50 00:02:40,335 --> 00:02:43,315 Suze: before you begin, if you have questions, everybody. 51 00:02:44,419 --> 00:02:49,169 Suze: All you have to do is send them into podcast@ 52 00:02:49,169 --> 00:02:54,600 Suze: ask Suze.com. That is our new email address, so just 53 00:02:54,600 --> 00:02:58,190 Suze: send them there, and if KT chooses it, oh, we 54 00:02:58,190 --> 00:03:01,585 Suze: will answer it on this podcast. Go on, KT. 55 00:03:01,794 --> 00:03:05,764 KT: OK. My first question is from Ellen. Hi, Suze and KT. 56 00:03:06,044 --> 00:03:10,445 KT: I'm 54 years old and I've been divorced for seven years. 57 00:03:10,725 --> 00:03:13,684 KT: When I got divorced, my husband said, 'Good luck with 58 00:03:13,684 --> 00:03:17,804 KT: the money that you took from me.' Typical, right? 'I'm 59 00:03:17,804 --> 00:03:19,744 KT: sure you will lose it all.' 60 00:03:20,365 --> 00:03:22,294 Suze: All right, tell me, how much money does she have? 61 00:03:22,404 --> 00:03:22,804 Suze: She must have done great. 62 00:03:23,404 --> 00:03:27,404 KT: I now realize that after 22 years of marriage, he 63 00:03:27,404 --> 00:03:29,484 KT: never saw me as his partner. 64 00:03:30,149 --> 00:03:33,940 KT: I have been working diligently with my financial advisor to 65 00:03:33,940 --> 00:03:36,910 KT: make sure I do not lose the money I walked 66 00:03:36,910 --> 00:03:37,580 KT: away with. 67 00:03:38,300 --> 00:03:42,100 KT: I've been growing it over the years. However, my biggest 68 00:03:42,100 --> 00:03:46,080 KT: fear is that being single and not having that second income, 69 00:03:46,460 --> 00:03:49,970 KT: that I may not have enough money saved for retirement. 70 00:03:50,300 --> 00:03:53,610 KT: When I asked my financial advisor about this, he said, 71 00:03:53,899 --> 00:03:57,449 KT: 'Don't worry, you have enough to retire comfortably.' But he 72 00:03:57,449 --> 00:04:02,580 KT: never takes the time to explain to me how. Sounds like, 73 00:04:02,699 --> 00:04:05,639 KT: sounds familiar, right? Her husband didn't either. 74 00:04:06,210 --> 00:04:10,289 KT: So she said, I have accumulated $1.8 million in my 75 00:04:10,289 --> 00:04:15,490 KT: stock brokerage account, and of that only $100,000 is in 76 00:04:15,490 --> 00:04:20,609 KT: a Roth. I make $150,000 a year and I continue 77 00:04:20,609 --> 00:04:23,570 KT: to contribute to my Roth 401k. 78 00:04:24,010 --> 00:04:29,250 KT: I also have an annuity for $400,000 which my financial 79 00:04:29,250 --> 00:04:32,649 KT: advisor set up for me to give me security and 80 00:04:32,649 --> 00:04:33,609 KT: peace of mind... 81 00:04:33,609 --> 00:04:35,570 Suze: And to give him a $20,000 commission. 82 00:04:35,850 --> 00:04:39,690 KT: Exactly. After the divorce, I did purchase a house in 83 00:04:39,690 --> 00:04:42,890 KT: Southern California for $740,000. 84 00:04:43,290 --> 00:04:48,410 KT: I still owe $400,000 on that mortgage. That is really 85 00:04:48,410 --> 00:04:51,609 KT: my only debt. I own my car outright, but it 86 00:04:51,609 --> 00:04:54,170 KT: is older and acting up, so I may need to 87 00:04:54,170 --> 00:04:58,269 KT: purchase a new car in the future. So Suze, Ellen's asking, 88 00:04:58,600 --> 00:04:59,440 KT: is she OK? Does she... 89 00:04:59,809 --> 00:05:00,670 Suze: Is she still working? 90 00:05:01,250 --> 00:05:05,690 KT: Yeah, $150,000 a year. Ellen's young. She's only 54. 91 00:05:06,549 --> 00:05:12,350 Suze: Ellen, there's one line in your email that seriously gets me, 92 00:05:12,470 --> 00:05:13,690 Suze: and it is this. 93 00:05:14,559 --> 00:05:18,640 Suze: You say when it comes to your financial adviser, he says, 94 00:05:18,678 --> 00:05:22,988 Suze: don't worry, you have enough to retire comfortably, but he 95 00:05:22,988 --> 00:05:27,519 Suze: never takes the time to explain to me how. Why 96 00:05:27,630 --> 00:05:30,739 Suze: do you settle for that? You are this powerful woman. 97 00:05:30,799 --> 00:05:35,000 Suze: You're making $150,000 a year. You're still only 54 years 98 00:05:35,000 --> 00:05:38,880 Suze: of age, yet you once again have gotten yourself into 99 00:05:38,880 --> 00:05:43,519 Suze: a relationship with a male financial adviser... 100 00:05:44,029 --> 00:05:47,440 Suze: Who doesn't explain to you and consider you an equal 101 00:05:47,440 --> 00:05:51,719 Suze: partner in this given that it's your money? I don't 102 00:05:51,720 --> 00:05:54,679 Suze: care how well he's doing for you financially. There are 103 00:05:54,678 --> 00:05:58,678 Suze: a lot of great financial advisers out there, but when 104 00:05:58,678 --> 00:06:02,760 Suze: a financial adviser does not give you what you need 105 00:06:02,760 --> 00:06:07,058 Suze: from him or her, that is not a great financial adviser. 106 00:06:07,480 --> 00:06:09,339 Suze: Now we can put it on him. 107 00:06:10,119 --> 00:06:13,049 Suze: Or we can put it on you for not standing 108 00:06:13,049 --> 00:06:16,190 Suze: in your power. I want you to explain to me 109 00:06:16,329 --> 00:06:18,690 Suze: why you think I'm going to be OK and what 110 00:06:18,690 --> 00:06:22,390 Suze: my numbers are actually going to be. That's on you 111 00:06:22,570 --> 00:06:23,969 Suze: to ask him. 112 00:06:24,290 --> 00:06:27,959 KT: Suze, if you were the financial advisor, what would those 113 00:06:27,959 --> 00:06:29,909 KT: numbers be? What would you say to her? 114 00:06:30,609 --> 00:06:33,890 Suze: So Ellen, here you are sitting across the desk from me. 115 00:06:34,600 --> 00:06:37,089 Suze: And I'd be so happy to say to you, you're 116 00:06:37,089 --> 00:06:40,488 Suze: gonna be more than OK in my opinion, but let 117 00:06:40,488 --> 00:06:45,469 Suze: me tell you why. You currently have $1.8 million invested now. 118 00:06:45,950 --> 00:06:48,969 Suze: But Ellen, let's just say you don't need that money 119 00:06:48,970 --> 00:06:52,329 Suze: for 10 years, and we're just gonna have a conservative 120 00:06:52,329 --> 00:06:56,179 Suze: growth rate of that of let's just say 5%. That 121 00:06:56,178 --> 00:07:00,970 Suze: should give you about $2.9 million because most of it's 122 00:07:00,970 --> 00:07:02,390 Suze: in retirement accounts there. 123 00:07:03,178 --> 00:07:06,829 Suze: And so, even if it were all taxable, let's just 124 00:07:06,829 --> 00:07:09,209 Suze: assume that it is, even though a lot of it 125 00:07:09,390 --> 00:07:12,350 Suze: will not be cause you're doing a Roth 401k. All right. 126 00:07:13,010 --> 00:07:17,649 Suze: That would give you at a 4% withdrawal rate approximately 127 00:07:17,649 --> 00:07:22,649 Suze: $116,000 a year. I don't know how much of that 128 00:07:22,649 --> 00:07:25,290 Suze: will be taxable or not, but Ellen, it will depend 129 00:07:25,290 --> 00:07:28,910 Suze: how much we get into a Roth before you retire. 130 00:07:29,209 --> 00:07:30,630 Suze: But you know that annuity 131 00:07:30,899 --> 00:07:34,029 Suze: that I had you do all right, even if we 132 00:07:34,029 --> 00:07:39,019 Suze: just kept that annuity, if it made 5%, that should 133 00:07:39,019 --> 00:07:42,779 Suze: add about another $20,000 a year if you decide to 134 00:07:42,779 --> 00:07:49,339 Suze: keep it, Ellen, anyway, right? $20,000 a year in 10 years. 135 00:07:49,700 --> 00:07:52,179 Suze: So now you're also going to be eligible 136 00:07:53,013 --> 00:07:55,643 Suze: for Social Security, you may wait a few years or 137 00:07:55,643 --> 00:08:00,523 Suze: until you're 70 to take it up to you. Or remember, 138 00:08:00,842 --> 00:08:06,183 Suze: you do also qualify once your full retirement age for 50% 139 00:08:06,403 --> 00:08:10,643 Suze: of your ex-husband's Social Security. So Ellen, we'll just have 140 00:08:10,643 --> 00:08:13,643 Suze: to figure out what that is. So it is 141 00:08:13,786 --> 00:08:17,864 Suze: very possible for getting Social Security that you could have 142 00:08:17,865 --> 00:08:24,026 Suze: $136,000 a year of income gross. Now, here's what I 143 00:08:24,026 --> 00:08:28,265 Suze: don't know, Ellen. What are your expenses going to be then? 144 00:08:28,506 --> 00:08:32,026 Suze: You say that you bought a house seven years ago. 145 00:08:32,145 --> 00:08:36,145 Suze: All right, you owe $400,000 on it. That kind of 146 00:08:36,145 --> 00:08:40,505 Suze: tells me that you probably had a 15 year mortgage. 147 00:08:41,059 --> 00:08:44,309 Suze: And really that means in eight years from now that 148 00:08:44,309 --> 00:08:48,229 Suze: mortgage payment will be gone. So Ellen, I'm assuming if 149 00:08:48,229 --> 00:08:51,468 Suze: this is all true, you're paying about $4,000 a month 150 00:08:51,468 --> 00:08:55,669 Suze: for that mortgage. So now when it's gone, you've reduced 151 00:08:55,669 --> 00:08:59,629 Suze: your expenses by $4,000 a month. And Ellen, 152 00:09:00,669 --> 00:09:05,709 Suze: your home is probably worth at least $1.2 million or 153 00:09:05,710 --> 00:09:11,010 Suze: more right now. So, everything is dependent on you, Ellen. 154 00:09:11,429 --> 00:09:15,510 Suze: That looks like what your income is going to be, 155 00:09:15,750 --> 00:09:20,710 Suze: assuming that you don't put anything more towards your 401k, 156 00:09:20,830 --> 00:09:23,030 Suze: so you can count on even more than that. 157 00:09:23,450 --> 00:09:27,169 Suze: Now the question is, what are your expenses going to be, 158 00:09:27,409 --> 00:09:30,650 Suze: and that is up to you. So, let's go over 159 00:09:30,650 --> 00:09:34,169 Suze: what your current expenses are now. Let's see what they 160 00:09:34,169 --> 00:09:37,169 Suze: are projected to be 10 years from now, and then 161 00:09:37,169 --> 00:09:40,520 Suze: we'll know how comfortable you can really be. Now, Ellen, 162 00:09:40,570 --> 00:09:43,250 Suze: you're not really sitting across the desk from me, and 163 00:09:43,250 --> 00:09:46,520 Suze: I don't know your expenses, but that's what should have happened. 164 00:09:46,729 --> 00:09:49,929 Suze: But in my estimation, given that you're gonna continue to 165 00:09:49,929 --> 00:09:52,650 Suze: contribute to the Roth 401k. 166 00:09:53,239 --> 00:09:56,598 Suze: You should be pretty good if you ask me. That's 167 00:09:56,599 --> 00:09:58,700 Suze: what I would do, KT. That's what I would have done. 168 00:09:58,840 --> 00:10:02,010 KT: So that's what Ellen's looking for an explanation. 169 00:10:02,200 --> 00:10:03,039 Suze: Well, I just gave it to her. 170 00:10:03,359 --> 00:10:04,030 KT: You gave it to her, great. 171 00:10:04,549 --> 00:10:08,799 Suze: All right, but that everybody is what her advisor, something 172 00:10:08,799 --> 00:10:12,340 Suze: like that, because I'm assuming these numbers are correct that 173 00:10:12,614 --> 00:10:15,924 Suze: I'm working with here, right? That's what an advisor should 174 00:10:15,924 --> 00:10:19,455 Suze: do and show her. And then Ellen, who's making 150,000 175 00:10:19,455 --> 00:10:22,694 Suze: a year and was smart enough to become a partner 176 00:10:22,695 --> 00:10:26,054 Suze: in her own life to herself and her money. Oh, 177 00:10:26,215 --> 00:10:29,414 Suze: she's gonna have a great time. All right, KT, next. 178 00:10:29,494 --> 00:10:31,854 KT: OK, this is from Ray. 179 00:10:32,369 --> 00:10:35,169 KT: And Ray said, Hi Suze and KT. Maybe this is 180 00:10:35,169 --> 00:10:39,909 KT: a quizzy for KT. This is a Roth conversion question. 181 00:10:40,010 --> 00:10:45,330 KT: All right, I'm 73, retired last year. My income is 182 00:10:45,330 --> 00:10:51,869 KT: $34,000 a year, and that's her combined Social Security and RMD. 183 00:10:52,130 --> 00:10:52,479 Suze: Great. All right. 184 00:10:53,130 --> 00:10:55,916 KT: So about a year ago I bought a few shares 185 00:10:55,916 --> 00:11:01,539 KT: of Dell at $99 and I've been DCAing ever since. 186 00:11:01,619 --> 00:11:03,419 Suze: What is DCAing KT? 187 00:11:03,780 --> 00:11:04,419 KT: Dollar cost average. 188 00:11:04,570 --> 00:11:06,020 Suze: That's my girl. Go on. 189 00:11:06,229 --> 00:11:09,780 KT: Would it be smart to do a Roth conversion here? 190 00:11:09,900 --> 00:11:14,739 KT: Remember she's 73. There will be ordinary income tax on 191 00:11:14,739 --> 00:11:19,039 KT: the contribution and capital gains on 8,000 plus. 192 00:11:20,900 --> 00:11:23,199 KT: So that's her question. That's from Ray. 193 00:11:23,770 --> 00:11:28,590 Suze: Ray-Ray, that was a great investment, but you have something wrong. 194 00:11:29,130 --> 00:11:32,770 Suze: When you have money in a traditional IRA. 195 00:11:33,719 --> 00:11:37,000 Suze: It doesn't matter what you paid for the stock, doesn't 196 00:11:37,000 --> 00:11:40,919 Suze: matter what it's worth now, whatever amount of money that 197 00:11:40,919 --> 00:11:41,659 Suze: you take out, 198 00:11:43,080 --> 00:11:47,239 Suze: is taxed to you as ordinary income. There is no 199 00:11:47,239 --> 00:11:52,039 Suze: such thing as a capital gain in an IRA. It's 200 00:11:52,039 --> 00:11:56,799 Suze: all just ordinary income tax, period, because you never paid 201 00:11:56,799 --> 00:12:00,880 Suze: tax on your original amount that you invested to begin with. 202 00:12:01,820 --> 00:12:06,579 Suze: However, at your age you are required to take required 203 00:12:06,580 --> 00:12:11,689 Suze: minimum distributions, and that plus your Social Security only adds 204 00:12:11,690 --> 00:12:16,679 Suze: up to 34,000 annually. So I don't see an advantage 205 00:12:17,150 --> 00:12:19,979 Suze: for you to take money out truthfully and put it 206 00:12:19,979 --> 00:12:24,039 Suze: in a Roth IRA at all and convert it. 207 00:12:24,679 --> 00:12:28,039 Suze: Leave it exactly where it is. When you need it, 208 00:12:28,159 --> 00:12:31,159 Suze: just take it out at that time, and you should 209 00:12:31,159 --> 00:12:35,739 Suze: be absolutely fine. But a Roth conversion, in my opinion, 210 00:12:36,200 --> 00:12:39,859 Suze: is not for you in your particular situation. But obviously, 211 00:12:40,320 --> 00:12:43,599 Suze: make sure you check with your CPA next, KT, 212 00:12:43,719 --> 00:12:46,679 KT: OK, this next question is from Karen. 213 00:12:47,190 --> 00:12:50,869 KT: Hi Suze. In one of your recent podcast or webinars, 214 00:12:50,950 --> 00:12:54,070 KT: I thought I heard you say that you do not 215 00:12:54,070 --> 00:13:00,190 KT: currently recommend bonds or that investors should focus on treasuries, 216 00:13:00,309 --> 00:13:06,510 KT: possibly long term treasuries instead. However, in the ultimate retirement 217 00:13:06,510 --> 00:13:10,369 KT: guide for 50+, this is the '24 edition, you write, 218 00:13:10,710 --> 00:13:14,189 KT: if you want a solid bond strategy that will work 219 00:13:14,190 --> 00:13:14,530 KT: over 220 00:13:14,669 --> 00:13:19,369 KT: long term intermediate term treasury bonds that mature 5 to 221 00:13:19,369 --> 00:13:23,549 KT: 10 years remain a smart way to go. Has your 222 00:13:23,549 --> 00:13:28,619 KT: thinking changed since the book was published? As of June '26, 223 00:13:28,950 --> 00:13:32,630 KT: what is your current recommendation for the bond portion of 224 00:13:32,630 --> 00:13:34,460 KT: a retirement portfolio? 225 00:13:34,630 --> 00:13:39,069 Suze: Actually, my advice has not changed it, believe it or not. 226 00:13:39,450 --> 00:13:42,169 Suze: According to the book, remember, when I write a book... 227 00:13:42,890 --> 00:13:46,690 Suze: I don't know when we're gonna reprint an update. I 228 00:13:46,690 --> 00:13:50,530 Suze: don't know when somebody is reading a book like that 229 00:13:50,530 --> 00:13:55,809 Suze: was in 2024, it is now 2026. It originally came out, 230 00:13:55,849 --> 00:14:00,770 Suze: the book in 2020, so, I have to kind of 231 00:14:00,770 --> 00:14:05,849 Suze: do a middle of the road strategy for everybody. However, 232 00:14:06,010 --> 00:14:10,409 Suze: with that said, on the webinar and on the podcast 233 00:14:10,409 --> 00:14:12,049 Suze: that I've been giving lately, 234 00:14:12,659 --> 00:14:16,539 Suze: I don't like bonds as much as I used to 235 00:14:16,539 --> 00:14:20,659 Suze: even a few years ago. All kinds of reasons, because 236 00:14:20,659 --> 00:14:24,760 Suze: of the structuring of bonds, our debt, and everything like that. However, 237 00:14:25,179 --> 00:14:27,739 Suze: when interest rates are high. 238 00:14:28,359 --> 00:14:31,770 Suze: And when interest rates on a 30 year bond happens 239 00:14:31,770 --> 00:14:35,450 Suze: to be at 5, 5.5%, whatever they were at during 240 00:14:35,450 --> 00:14:38,570 Suze: that week, I think people should have taken advantage of 241 00:14:38,570 --> 00:14:41,890 Suze: it because number one, it's a treasury very different than 242 00:14:41,890 --> 00:14:45,369 Suze: a corporate or any other type of bond, and it's 243 00:14:45,369 --> 00:14:48,210 Suze: not a bad idea to lock in a high interest 244 00:14:48,210 --> 00:14:51,989 Suze: rate like that because if interest rates ever go down, 245 00:14:52,690 --> 00:14:56,789 Suze: remember Karen, the fact is this when interest rates go down. 246 00:14:57,330 --> 00:15:00,570 Suze: The value of bonds go up, and the longer the 247 00:15:00,570 --> 00:15:04,289 Suze: term of the bond, the more it will fluctuate. Now 248 00:15:04,729 --> 00:15:07,809 Suze: I put money in, as you know, in a 30 249 00:15:07,809 --> 00:15:13,049 Suze: year bond back then, and I'm up kind of considerably 250 00:15:13,049 --> 00:15:15,049 Suze: on it right now. Now, does that mean I'm going 251 00:15:15,049 --> 00:15:17,809 Suze: to sell it? No, because interest rates have come down 252 00:15:17,809 --> 00:15:20,409 Suze: a little from when I went in a month or 253 00:15:20,409 --> 00:15:24,739 Suze: so ago, but I like that it's at 5% or 5.1%, 254 00:15:24,809 --> 00:15:25,849 Suze: whatever it's at. 255 00:15:26,250 --> 00:15:29,679 Suze: But I also know that if interest rates do come down, 256 00:15:30,260 --> 00:15:32,770 Suze: I have the ability to sell if I want, and 257 00:15:32,770 --> 00:15:36,409 Suze: if not, I'm happy with that rate, but they are 258 00:15:36,409 --> 00:15:40,659 Suze: very risky long term bonds because remember interest rates could 259 00:15:40,659 --> 00:15:44,619 Suze: go higher and then you can see that principal seriously 260 00:15:44,619 --> 00:15:47,539 Suze: go down if you need the money. So only put 261 00:15:47,539 --> 00:15:50,500 Suze: money in there that you don't need, but, 262 00:15:51,010 --> 00:15:56,030 Suze: I don't love bonds as much as I like dividend 263 00:15:56,210 --> 00:16:00,590 Suze: paying stocks. I just don't. I think you need growth 264 00:16:00,760 --> 00:16:06,630 Suze: plus income in today's inflationary environment, and bonds don't present 265 00:16:06,630 --> 00:16:11,289 Suze: that same opportunity. However, every one of us needs money 266 00:16:11,289 --> 00:16:15,450 Suze: that we know is safe and sound. For me and KT, 267 00:16:15,690 --> 00:16:17,989 Suze: that money really is in treasuries. 268 00:16:18,530 --> 00:16:22,750 Suze: But we have a lot of other investments obviously as well. So, 269 00:16:22,969 --> 00:16:26,729 Suze: if you don't know which term to do, a 5 year, 270 00:16:26,809 --> 00:16:27,950 Suze: a medium term. 271 00:16:29,020 --> 00:16:32,429 Suze: 10 years at most. Now you're playing it safe, cause 272 00:16:32,429 --> 00:16:35,250 Suze: maybe you're getting a little bit higher interest rate than 273 00:16:35,250 --> 00:16:39,030 Suze: a short-term one. If interest rates go down, you've locked in. 274 00:16:39,520 --> 00:16:42,599 Suze: If interest rates go up, you're still fine because you're 275 00:16:42,599 --> 00:16:45,440 Suze: not gonna get that much of a decrease, because they're 276 00:16:45,440 --> 00:16:50,039 Suze: not long term bonds. So, I hope that explains it 277 00:16:50,039 --> 00:16:53,559 Suze: to you, but honestly, I wouldn't be changing what I 278 00:16:53,559 --> 00:16:56,599 Suze: wrote in that book for the majority of people that 279 00:16:56,599 --> 00:16:57,260 Suze: are reading it. 280 00:16:57,359 --> 00:17:00,299 KT: OK, my next question, Suze, I want to answer. 281 00:17:01,250 --> 00:17:03,169 KT: Your next question I wanna answer. 282 00:17:03,479 --> 00:17:06,170 Suze: Well, KT, it's actually our next question because they write 283 00:17:06,170 --> 00:17:07,010 Suze: into KT and Suze. 284 00:17:07,579 --> 00:17:10,250 KT: So I'd like to answer this one if you don't mind. 285 00:17:10,349 --> 00:17:17,199 KT: It says, when should personal values influence your investment decisions? Hi, 286 00:17:17,209 --> 00:17:21,649 KT: Suze and KT. If a stock remains a strong investment 287 00:17:21,650 --> 00:17:25,790 KT: but you no longer feel good about owning the company 288 00:17:26,130 --> 00:17:30,010 KT: because its values don't align with your own, would you 289 00:17:30,010 --> 00:17:30,530 KT: sell it? 290 00:17:31,050 --> 00:17:36,968 KT: How should investors balance financial returns with personal values? Can 291 00:17:36,969 --> 00:17:37,579 KT: I answer that? 292 00:17:37,650 --> 00:17:39,369 Suze: You can, but I just want to say something before 293 00:17:39,369 --> 00:17:41,879 Suze: you do, because I actually know what you're gonna say 294 00:17:41,880 --> 00:17:44,849 Suze: because I went through this with you. But wait a minute, 295 00:17:45,130 --> 00:17:48,069 Suze: is that every single one of us has to decide 296 00:17:48,540 --> 00:17:51,900 Suze: what our goals are, what we feel is right, and 297 00:17:51,900 --> 00:17:58,300 Suze: we can't condemn or praise or whatever anybody else's investment decisions. 298 00:17:58,489 --> 00:18:01,739 Suze: But you are responsible for what you do with your 299 00:18:01,739 --> 00:18:04,540 Suze: own money. You know, it's funny, KT, and I don't 300 00:18:04,540 --> 00:18:07,790 Suze: know why, as I'm sitting here, we have that saying. 301 00:18:08,099 --> 00:18:12,640 Suze: Do you remember my saying, "Grace is above praise and blame." 302 00:18:13,140 --> 00:18:15,349 Suze: Do you remember me? Because so many times people have 303 00:18:15,349 --> 00:18:17,760 Suze: blamed me for this and that and whatever. 304 00:18:18,579 --> 00:18:22,939 Suze: "Grace is above praise and blame." So all of us 305 00:18:22,939 --> 00:18:25,938 Suze: should just live our own lives, so to speak, when 306 00:18:25,939 --> 00:18:28,739 Suze: it comes to what other people do with their money. 307 00:18:28,819 --> 00:18:30,359 Suze: But KT, answer. 308 00:18:30,880 --> 00:18:34,400 KT: So my answer is yes, I would sell it if 309 00:18:34,400 --> 00:18:38,119 KT: it doesn't align with your own values and doesn't make 310 00:18:38,119 --> 00:18:38,790 KT: you feel good. 311 00:18:39,050 --> 00:18:41,619 Suze: Now tell everybody why you said that because she did that. 312 00:18:42,000 --> 00:18:45,239 KT: I did that. I opened my statements and this was 313 00:18:45,239 --> 00:18:48,359 KT: quite some time ago, maybe 10 years ago. 314 00:18:49,189 --> 00:18:53,160 KT: I noticed that we owned a tobacco stock and it's, 315 00:18:53,359 --> 00:18:56,150 KT: it was paying it was doing really well. 316 00:18:56,199 --> 00:18:57,439 Suze: And paying a great dividend. 317 00:18:58,400 --> 00:19:01,500 KT: Great dividend, one of the highest of them all, and 318 00:19:01,500 --> 00:19:04,790 KT: I said, Suze, I wanna sell this. She said, KT, why? 319 00:19:05,060 --> 00:19:07,900 KT: And I said, because it's tobacco, and that was my 320 00:19:07,900 --> 00:19:11,619 KT: answer and she didn't fight me on it. She thought 321 00:19:11,619 --> 00:19:14,699 KT: about it and she said, you know, you're making a very, 322 00:19:14,819 --> 00:19:17,659 KT: very handsome return. I said, I don't care. 323 00:19:18,239 --> 00:19:23,020 KT: I don't want to be associated with tobacco and cigarettes. 324 00:19:23,119 --> 00:19:26,880 Suze: I said, fine. We called up John, who is our 325 00:19:26,880 --> 00:19:28,859 Suze: partner in crime when it comes to our... 326 00:19:29,040 --> 00:19:32,020 KT: And he kept saying, Are you sure? He, he doing 327 00:19:32,020 --> 00:19:36,958 KT: his job was looking at the return and the investment 328 00:19:36,959 --> 00:19:38,599 KT: value was excellent. 329 00:19:39,280 --> 00:19:43,640 Suze: But what was more important to KT was that she 330 00:19:43,640 --> 00:19:46,079 Suze: didn't want it. Now, you can be 331 00:19:46,155 --> 00:19:49,435 Suze: disappointed in me if you want or not, but as 332 00:19:49,435 --> 00:19:52,755 Suze: a finance person, I looked at the return, I looked 333 00:19:52,755 --> 00:19:56,344 Suze: at the growth, and I said, no, I want to 334 00:19:56,344 --> 00:19:59,755 Suze: keep mine. KT sold hers because we usually own the 335 00:19:59,755 --> 00:20:03,515 Suze: same stocks, but in each of our own accounts, and 336 00:20:03,795 --> 00:20:07,194 Suze: that's what happened. It continued to go up. I did 337 00:20:07,194 --> 00:20:07,915 Suze: great with it. 338 00:20:08,250 --> 00:20:11,770 Suze: I did eventually end up selling it, but I honored 339 00:20:11,770 --> 00:20:17,229 Suze: KT because your values and what means something to you 340 00:20:17,449 --> 00:20:21,969 Suze: is more important than money. And so those of you 341 00:20:21,969 --> 00:20:24,449 Suze: who are out there and maybe you think bad of 342 00:20:24,449 --> 00:20:27,280 Suze: me because I own a few stocks that are against 343 00:20:27,280 --> 00:20:29,379 Suze: your political beliefs and everything. 344 00:20:29,949 --> 00:20:32,869 Suze: Just it is what it is. I'm looking at it 345 00:20:32,869 --> 00:20:38,188 Suze: totally seriously from a financial return and what that money 346 00:20:38,189 --> 00:20:42,560 Suze: can do for people when they sell just that simple. 347 00:20:42,630 --> 00:20:44,589 Suze: But there you go. Next question, KT. 348 00:20:45,339 --> 00:20:48,069 KT: OK, I like this. It's from Pastor Duncan. 349 00:20:49,500 --> 00:20:50,349 KT: This is very simple. 350 00:20:50,459 --> 00:20:52,369 Suze: Oh, is that why I said "grace is above praise 351 00:20:52,369 --> 00:20:54,430 Suze: and blame?" We knew it was in the air. 352 00:20:54,630 --> 00:20:59,670 KT: Pastor Mark Duncan. Mark, here you go. Pastor Mark, is 353 00:20:59,670 --> 00:21:03,349 KT: there any way, Suze, to have your revocable trust read 354 00:21:03,349 --> 00:21:05,310 KT: as a Georgia document? 355 00:21:07,000 --> 00:21:09,879 Suze: You, well, you can go to Georgia and read your trust, but, 356 00:21:10,119 --> 00:21:14,780 Suze: but very seriously, everybody, let's get clear on the must-have documents. 357 00:21:15,199 --> 00:21:18,939 Suze: Do you know in life when you do a corporation, 358 00:21:19,199 --> 00:21:22,199 Suze: you decide you want to be incorporated, you get to 359 00:21:22,199 --> 00:21:27,599 Suze: choose where you want to be incorporated based on the 360 00:21:27,599 --> 00:21:31,270 Suze: rules and the regulations of what you need. Believe it 361 00:21:31,270 --> 00:21:35,099 Suze: or not, the same is true with a revocable trust. 362 00:21:35,920 --> 00:21:42,510 Suze: The trust of the must-have documents is guided under California 363 00:21:42,510 --> 00:21:47,430 Suze: trust regulations, and the reason that that was chosen is 364 00:21:47,430 --> 00:21:53,069 Suze: because California has the most liberal regulations of all trusts. 365 00:21:53,400 --> 00:21:58,239 Suze: So KT and I are residents in Florida, but we 366 00:21:58,239 --> 00:22:03,359 Suze: have a trust that was regulated by California. 367 00:22:03,910 --> 00:22:07,310 Suze: Even though we don't own any property there or whatever, 368 00:22:07,469 --> 00:22:11,349 Suze: so if you choose to do the must-have documents and 369 00:22:11,349 --> 00:22:15,790 Suze: that confuses you, hopefully that explains it. It is good 370 00:22:15,790 --> 00:22:20,609 Suze: in all 50 states. Please know over the 20 years 371 00:22:20,829 --> 00:22:24,139 Suze: that this has been offered to all of you, millions 372 00:22:24,140 --> 00:22:26,709 Suze: and millions have been sold. 373 00:22:27,214 --> 00:22:30,334 Suze: Many of those people are no longer with us. Their 374 00:22:30,334 --> 00:22:34,175 Suze: trust had to be used, and it's always been fine, 375 00:22:34,415 --> 00:22:37,295 Suze: but you have to feel comfortable with it. You have 376 00:22:37,295 --> 00:22:40,694 Suze: to know it's what makes you feel secure and make 377 00:22:40,694 --> 00:22:44,314 Suze: your decision from there. If you're interested, go to must 378 00:22:44,314 --> 00:22:47,584 Suze: have docs.com and check them out. Yes, KT. 379 00:22:47,814 --> 00:22:51,694 KT: So, all right, this next question, it's the subject said 380 00:22:51,694 --> 00:22:56,155 KT: keeping inheritance separate in California but allowing husband access. 381 00:22:56,920 --> 00:23:00,089 KT: And here's the question. My mother died last year, and 382 00:23:00,089 --> 00:23:05,290 KT: I am both the executor and beneficiary. I'm 52. My 383 00:23:05,290 --> 00:23:10,589 KT: husband is 42. We've been together nine years, married five, 384 00:23:10,890 --> 00:23:14,649 KT: no children, and we live in California. I want to 385 00:23:14,650 --> 00:23:19,010 KT: keep this inheritance as my separate property, but I also 386 00:23:19,010 --> 00:23:22,670 KT: want my husband to be able to access it easily 387 00:23:22,670 --> 00:23:25,290 KT: if I become incapacitated. 388 00:23:25,770 --> 00:23:29,890 KT: I know a durable financial power of attorney is one answer, 389 00:23:30,219 --> 00:23:34,698 KT: and we have one, but when my mother became incapacitated, 390 00:23:35,020 --> 00:23:38,819 KT: her bank refused to honor her POA, and it was 391 00:23:38,819 --> 00:23:43,760 KT: a nightmare. So I'm nervous about relying on a POA alone. 392 00:23:44,390 --> 00:23:47,349 KT: My question is, Suze, what is the smartest way to 393 00:23:47,349 --> 00:23:53,389 KT: keep this inheritance clearly separate under California community property law 394 00:23:53,390 --> 00:23:58,010 KT: while still making it straightforward for my husband to access 395 00:23:58,229 --> 00:24:01,150 KT: and manage if I become incapacitated. 396 00:24:01,910 --> 00:24:03,329 KT: Warmly, Gregg. 397 00:24:03,829 --> 00:24:06,910 Suze: So Gregg, here's the thing, and it's funny because this 398 00:24:06,910 --> 00:24:12,150 Suze: just follows the question of before with the Reverend about 399 00:24:12,150 --> 00:24:16,339 Suze: the must-have documents. I've been telling all of you for 400 00:24:16,339 --> 00:24:20,989 Suze: years that you may think that in case of an incapacity, 401 00:24:21,189 --> 00:24:24,819 Suze: a power of attorney, a durable power of attorney for finances, 402 00:24:25,069 --> 00:24:28,709 Suze: and all is all that you need, but it's not true. 403 00:24:29,140 --> 00:24:34,609 Suze: Because you just heard Gregg say that his mother had one. 404 00:24:35,400 --> 00:24:39,069 Suze: She died and it was still a nightmare. Why is that? 405 00:24:39,719 --> 00:24:44,150 Suze: Because the bank or the financial institution didn't know. Did 406 00:24:44,150 --> 00:24:47,750 Suze: she revoke it? She, they didn't know. Was it still valid, 407 00:24:47,760 --> 00:24:51,218 Suze: because it could be changed in two seconds. Just that easy. 408 00:24:51,680 --> 00:24:56,500 Suze: That is why a revocable trust, must have documents, 409 00:24:57,180 --> 00:25:02,060 Suze: has an incapacity clause that says if Gregg, for instance 410 00:25:02,060 --> 00:25:06,939 Suze: in this case if you become incapacitated then your husband 411 00:25:06,939 --> 00:25:11,939 Suze: can sign for you in any capacity that you've designated 412 00:25:11,939 --> 00:25:15,619 Suze: in the trust and the banks will not challenge that 413 00:25:16,020 --> 00:25:19,400 Suze: because they will actually have a copy of the trust, 414 00:25:19,660 --> 00:25:23,270 Suze: the date of it, and they'll be fine with that. 415 00:25:23,739 --> 00:25:26,319 Suze: So to keep things separate, number one. 416 00:25:26,660 --> 00:25:31,390 Suze: The money that you inherited should be in your individual account, 417 00:25:31,869 --> 00:25:36,869 Suze: but your individual account should be a revocable trust for Gregg. 418 00:25:37,890 --> 00:25:41,140 Suze: That's it. Just for you. If your husband wants, he 419 00:25:41,140 --> 00:25:44,260 Suze: can have one as well, and it should have the 420 00:25:44,260 --> 00:25:47,459 Suze: incapacity clause in it, giving him right to be able 421 00:25:47,459 --> 00:25:50,920 Suze: to access the money whenever he needs it. So he 422 00:25:51,030 --> 00:25:53,939 Suze: would be there. He also would be what's known as 423 00:25:53,939 --> 00:25:58,139 Suze: a successor beneficiary. So it's in trust held for your 424 00:25:58,140 --> 00:25:59,839 Suze: benefit while you're alive. 425 00:26:00,489 --> 00:26:05,550 Suze: His benefit while you've died goes to him immediately what 426 00:26:05,550 --> 00:26:11,109 Suze: without probate, and probate in the state of California is statutory. 427 00:26:11,489 --> 00:26:15,889 Suze: It is expensive and you want to avoid probate at 428 00:26:15,890 --> 00:26:19,520 Suze: all costs, and a durable power of attorney for finances 429 00:26:19,520 --> 00:26:23,939 Suze: will not do that. Now, obviously you can put him 430 00:26:23,939 --> 00:26:26,930 Suze: on your accounts as a pay on death that if 431 00:26:26,930 --> 00:26:30,988 Suze: you die it goes to him. Great, that avoids probate, 432 00:26:31,050 --> 00:26:34,069 Suze: but it does not help you or him in case 433 00:26:34,329 --> 00:26:36,069 Suze: of an incapacity. 434 00:26:36,579 --> 00:26:39,619 Suze: That is why I have been on it and on 435 00:26:39,619 --> 00:26:44,989 Suze: it and on it for almost now 31 years, everybody, 436 00:26:45,369 --> 00:26:50,030 Suze: while every single one of you needs a living revocable trust, 437 00:26:50,199 --> 00:26:53,890 Suze: and again they're expensive. You go to a lawyer, it's 438 00:26:53,890 --> 00:26:58,339 Suze: gonna be $2,500, $5,000 every time you change it, whatever. 439 00:26:58,569 --> 00:27:02,969 Suze: That's why the must-have documents were created again, and I 440 00:27:02,969 --> 00:27:05,930 Suze: don't want this to sound like a sales pitch for them. 441 00:27:06,349 --> 00:27:10,130 Suze: But to check them out, go to must have docs.com. 442 00:27:10,510 --> 00:27:15,489 Suze: They are $153 now and just see what you think, 443 00:27:15,510 --> 00:27:18,189 Suze: and they're worth every single penny if you ask me. 444 00:27:18,390 --> 00:27:18,930 Suze: Go on. 445 00:27:19,550 --> 00:27:22,510 KT: So Suze, this next question is from Annukin. 446 00:27:22,579 --> 00:27:23,229 Suze: Oh, good, good, 447 00:27:24,270 --> 00:27:26,750 Suze: Why am I saying good? Annukin, you know why I'm 448 00:27:26,750 --> 00:27:30,810 Suze: saying good. KT, right? I answered her. 449 00:27:31,280 --> 00:27:35,349 Suze: And I said I can only hope that KT picks this, 450 00:27:35,569 --> 00:27:38,030 Suze: and she said, me too, and you did, go girl. 451 00:27:39,000 --> 00:27:43,010 KT: I did. So, here's the question if your 401k balance 452 00:27:43,010 --> 00:27:49,630 KT: crosses 900,000, up to 85% of your Social Security benefits 453 00:27:49,890 --> 00:27:52,329 KT: could become taxable income. 454 00:27:53,400 --> 00:27:58,339 KT: This is called the provisional income threshold, and it silently 455 00:27:58,339 --> 00:28:04,199 KT: kicks in when your retirement account distributions push your combined 456 00:28:04,199 --> 00:28:07,160 KT: income over the IRS limits. 457 00:28:07,750 --> 00:28:09,339 KT: So there you go. Is this a trap? 458 00:28:10,349 --> 00:28:13,630 Suze: So, Annukin, as I've told you, listen, everybody, there is 459 00:28:13,630 --> 00:28:20,300 Suze: no IRS rule that says, once your 401k reaches $900,000 460 00:28:20,630 --> 00:28:25,629 Suze: that 85% of your Social Security automatically becomes taxable. 461 00:28:26,089 --> 00:28:30,189 Suze: It doesn't matter what the size of your retirement account is. 462 00:28:30,489 --> 00:28:35,208 Suze: What matters is your annual income, specifically, by the way, 463 00:28:35,329 --> 00:28:37,140 Suze: what the IRS does call provisional income. 464 00:28:39,959 --> 00:28:43,670 Suze: So what you all have to know, provisional income is 465 00:28:43,670 --> 00:28:47,699 Suze: calculated as your adjusted gross income, and by the way, 466 00:28:47,719 --> 00:28:53,859 Suze: that includes IRA and 401k withdrawals. Any tax exempt interest, 467 00:28:54,400 --> 00:28:57,300 Suze: what else does it include? Let me think here, 50% 468 00:28:57,300 --> 00:29:02,520 Suze: of your Social Security benefits. So for a single filer, 469 00:29:03,229 --> 00:29:10,829 Suze: if provisional income is over $25,000 KT, then up to 50% 470 00:29:10,829 --> 00:29:15,910 Suze: of your Social Security may become taxable. If provisional income 471 00:29:15,910 --> 00:29:22,069 Suze: is over $34,000 then up to 85% of your Social 472 00:29:22,069 --> 00:29:22,390 Suze: Security 473 00:29:23,145 --> 00:29:27,744 Suze: may become taxable. That's always been the rules. Yeah. So 474 00:29:27,744 --> 00:29:32,025 Suze: what if you're married? If you're married, then over 32,000 475 00:29:32,025 --> 00:29:35,724 Suze: may trigger taxation on up to 50% of the benefits, 476 00:29:35,905 --> 00:29:41,844 Suze: and over 44,000 KT may trigger it up to 85%. 477 00:29:42,145 --> 00:29:46,905 Suze: But here's the key point that I think many people misunderstand. 478 00:29:47,479 --> 00:29:52,640 Suze: Up to 85% taxable does not mean that you lose 85% 479 00:29:52,640 --> 00:29:57,040 Suze: of your Social Security. It means that up to 85% 480 00:29:57,040 --> 00:30:02,550 Suze: of your Social Security benefit is included in your taxable 481 00:30:02,560 --> 00:30:06,739 Suze: income calculation, and then you pay tax on that amount 482 00:30:07,040 --> 00:30:12,849 Suze: at your ordinary income tax bracket. Just that simple. So 483 00:30:13,239 --> 00:30:15,250 Suze: there you go. That's the answer. All right. 484 00:30:15,609 --> 00:30:18,589 KT: All right, so it's not... It's not a trap. 485 00:30:19,670 --> 00:30:22,829 Suze: No, it's not a trap. She, she, she thought... 486 00:30:22,829 --> 00:30:23,630 KT: She thought it was a trap. 487 00:30:23,869 --> 00:30:26,109 Suze: No, it's not a trap. It's always been the law. 488 00:30:26,390 --> 00:30:28,060 Suze: So KT, you and I both pay. 489 00:30:29,530 --> 00:30:36,020 Suze: Right? Our tax, up to the 85% of our Social Security, 85% 490 00:30:36,020 --> 00:30:38,859 Suze: of that is added into our income. 491 00:30:39,239 --> 00:30:42,770 Suze: And we pay tax on that amount. All right, OK, 492 00:30:42,849 --> 00:30:45,140 Suze: we have time for one more, so make it great. 493 00:30:45,439 --> 00:30:47,930 KT: OK, so this is one more, and I think it's 494 00:30:47,930 --> 00:30:51,369 KT: a really good one, but it's very confusing. It's from Susan. 495 00:30:51,449 --> 00:30:55,770 KT: She said, Suze, I'm close to applying for Social Security, 496 00:30:56,130 --> 00:31:01,689 KT: about to be 67. I qualify under my own work record, 497 00:31:01,969 --> 00:31:05,770 KT: but I was married for 27 years, and my ex 498 00:31:05,770 --> 00:31:07,969 KT: made zillions more than I did. 499 00:31:08,420 --> 00:31:11,229 KT: I called Social Security to see if I would be 500 00:31:11,229 --> 00:31:15,709 KT: better off filing under his work record. They told me 501 00:31:15,709 --> 00:31:19,310 KT: I can't do that until he's dead or he files 502 00:31:19,310 --> 00:31:23,430 KT: for Social Security himself, and they cannot tell me whether 503 00:31:23,430 --> 00:31:27,430 KT: his amount would be more than twice what mine is 504 00:31:27,869 --> 00:31:31,849 KT: because I would only get half. Is this true? He 505 00:31:31,849 --> 00:31:35,589 KT: is remarried, and I have no contact with him. I 506 00:31:35,589 --> 00:31:39,920 KT: don't expect I'll ever learn from him, that whether he's applied 507 00:31:39,920 --> 00:31:42,400 KT: for Social Security, this seems crazy. 508 00:31:42,479 --> 00:31:43,219 Suze: It is crazy. 509 00:31:43,439 --> 00:31:45,520 KT: So, so we, I have a question. 510 00:31:46,270 --> 00:31:49,750 KT: Even if her ex is remarried and she waits until 511 00:31:49,750 --> 00:31:52,069 KT: he dies, is she entitled to anything? 512 00:31:52,189 --> 00:31:57,229 Suze: All right, so listen, everything that the Social Security agent 513 00:31:57,229 --> 00:32:02,410 Suze: told her was 100 million percent wrong. 514 00:32:02,510 --> 00:32:03,719 KT: Yeah, it sounds that way. 515 00:32:05,410 --> 00:32:09,535 Suze: Wrong. KT doesn't matter if he's remarried. Doesn't matter if 516 00:32:09,535 --> 00:32:12,944 Suze: he started to collect Social Security or not. All that 517 00:32:12,944 --> 00:32:15,545 Suze: matters is that he's 62 years of age and older, 518 00:32:15,584 --> 00:32:17,984 Suze: and I'm sure that he is, and that they were 519 00:32:17,984 --> 00:32:22,265 Suze: married 10 years, which they were divorced for at least two, 520 00:32:22,425 --> 00:32:26,525 Suze: which they were. Susan, listen, here's the truth. 521 00:32:27,199 --> 00:32:31,479 Suze: It doesn't matter what he's doing. This is your money, 522 00:32:31,640 --> 00:32:34,520 Suze: whether you know it or not. So, if you want, 523 00:32:34,680 --> 00:32:36,160 Suze: you just apply. 524 00:32:36,910 --> 00:32:39,839 Suze: And they will tell you what your benefit should be. 525 00:32:39,959 --> 00:32:44,280 Suze: It will be 50% because you're 67. If you were younger, 526 00:32:44,359 --> 00:32:47,599 Suze: let's say you were only 62, it might be reduced 527 00:32:47,599 --> 00:32:51,520 Suze: to like 35%, but since you're full retirement age, 528 00:32:52,310 --> 00:32:57,310 Suze: when you apply for Social Security at 67, they will 529 00:32:57,310 --> 00:33:02,510 Suze: calculate for you what 50% of his benefit would have 530 00:33:02,510 --> 00:33:05,310 Suze: been when he was 67 531 00:33:06,510 --> 00:33:10,920 Suze: versus what your 100% benefit would be, and then they 532 00:33:10,920 --> 00:33:13,920 Suze: might do a combination of both so that you get 533 00:33:13,920 --> 00:33:18,719 Suze: the highest amount possible. So don't listen to them. You 534 00:33:18,719 --> 00:33:20,959 Suze: don't have to talk to him. You don't have to 535 00:33:20,959 --> 00:33:26,199 Suze: make a choice. It will be automatically calculated for you. However, 536 00:33:26,560 --> 00:33:29,540 Suze: there's something that I want to tell all of you 537 00:33:29,819 --> 00:33:34,479 Suze: that you may not know because nobody ever asked me 538 00:33:34,479 --> 00:33:35,520 Suze: this question. 539 00:33:36,760 --> 00:33:42,880 Suze: When you apply for divorced benefits and now you're collecting 540 00:33:42,880 --> 00:33:48,880 Suze: divorce benefits, let's say that's true, and he dies, you 541 00:33:48,880 --> 00:33:54,900 Suze: now can actually switch to 100% of his survivor benefit. 542 00:33:55,199 --> 00:33:58,260 Suze: So whatever amount of money he would have been getting 543 00:33:58,479 --> 00:34:02,020 Suze: at the age of 67 or his full retirement age, 544 00:34:02,359 --> 00:34:03,280 Suze: you now 545 00:34:03,479 --> 00:34:09,340 Suze: can qualify for that and you can switch just that simple. 546 00:34:09,560 --> 00:34:13,279 Suze: And KT you want to hear something so crazy and 547 00:34:13,280 --> 00:34:16,120 Suze: this is a story that somebody wrote in and they 548 00:34:16,120 --> 00:34:18,399 Suze: just couldn't believe it was true, all right. 549 00:34:19,750 --> 00:34:23,389 Suze: Her brother married at the age of 20. 550 00:34:24,129 --> 00:34:27,409 Suze: Right, was married for 10 years, divorced at like 30 551 00:34:27,409 --> 00:34:32,080 Suze: or 31, right? He got married right away because that's 552 00:34:32,080 --> 00:34:36,330 Suze: why he left his first wife, OK. And some people 553 00:34:36,330 --> 00:34:40,850 Suze: never change their behavior. So what happened? He stayed married 554 00:34:40,850 --> 00:34:47,020 Suze: for 15 years and then divorced his second wife at 45. 555 00:34:47,250 --> 00:34:50,870 Suze: All right, he's now 45. They were married for 15 years. 556 00:34:51,250 --> 00:34:52,209 Suze: Does it again. 557 00:34:53,820 --> 00:34:58,290 Suze: At 45, he's divorced, right? And now what does he do? 558 00:34:58,379 --> 00:35:02,360 Suze: He marries somebody again and stays married till he is 60. 559 00:35:02,989 --> 00:35:07,429 Suze: And now he's divorced again and now he's just by himself, 560 00:35:07,830 --> 00:35:12,010 Suze: but all of a sudden two years later he marries again, right? 561 00:35:12,290 --> 00:35:17,709 Suze: But this time he's still married. He's now 75 and 562 00:35:17,709 --> 00:35:22,969 Suze: he just died so the sister writes and says, 563 00:35:23,689 --> 00:35:26,810 Suze: you know, what is his wife entitled to? What are all, 564 00:35:26,929 --> 00:35:29,888 Suze: because I'm friends with all of his exes, and they 565 00:35:29,889 --> 00:35:33,629 Suze: all want to know what they're entitled to. Well, guess what? 566 00:35:34,060 --> 00:35:42,909 Suze: All four of them are entitled to 100% of his 567 00:35:42,919 --> 00:35:47,709 Suze: full retirement age, his primary insurance amount, whatever he was 568 00:35:47,709 --> 00:35:53,629 Suze: qualified for at the age of 67, they each get 569 00:35:53,629 --> 00:35:56,310 Suze: to claim that if they want to. 570 00:35:56,790 --> 00:35:59,029 KT: Suze, that's the craziest thing I ever heard. 571 00:35:59,189 --> 00:36:01,149 Suze: Now you know why Social Security is going broke, but 572 00:36:01,149 --> 00:36:04,350 Suze: that's besides the point. Wanna hear something else? You all 573 00:36:04,350 --> 00:36:05,449 Suze: should know, everybody... 574 00:36:06,429 --> 00:36:11,600 Suze: If in this situation, she claimed 100% of her own 575 00:36:11,600 --> 00:36:15,719 Suze: Social Security at 67, because it was higher than 50% 576 00:36:15,719 --> 00:36:16,739 Suze: of his. 577 00:36:17,360 --> 00:36:22,638 Suze: When he dies, she can then claim as a divorce 578 00:36:22,639 --> 00:36:28,239 Suze: survivor 100% of what his would have been at his 579 00:36:28,239 --> 00:36:32,560 Suze: full retirement age of 67, which obviously because she said 580 00:36:32,560 --> 00:36:38,320 Suze: he made gazillions is more than 100% of what she's collecting. 581 00:36:39,179 --> 00:36:42,469 Suze: So you have to know these rules because a lot 582 00:36:42,469 --> 00:36:43,909 Suze: is left on the table. 583 00:36:44,189 --> 00:36:45,830 KT: So what if she remarries? 584 00:36:45,989 --> 00:36:51,709 Suze: If she remarries after the age of 60, doesn't matter. 585 00:36:52,540 --> 00:36:56,620 Suze: Right? If she remarries before the age of 60, she 586 00:36:56,620 --> 00:37:00,259 Suze: no longer qualifies for everything I just said, unless she 587 00:37:00,260 --> 00:37:02,520 Suze: divorces later on. 588 00:37:03,879 --> 00:37:05,989 KT: So let me ask this question. Where do you find 589 00:37:05,989 --> 00:37:07,250 KT: all this information? 590 00:37:07,770 --> 00:37:09,649 Suze: Oh well, you just go to Social Security and it's all 591 00:37:09,649 --> 00:37:12,729 Suze: part of it, or you call in to the Women 592 00:37:12,729 --> 00:37:17,929 Suze: and Money podcast. But very seriously, everybody, did you know that? 593 00:37:18,290 --> 00:37:21,448 Suze: So when you have a situation of an ex-spouse, 594 00:37:22,399 --> 00:37:25,500 Suze: just know if you never made a lot of money, 595 00:37:25,919 --> 00:37:29,800 Suze: he did or she did, and now they've died and 596 00:37:29,800 --> 00:37:32,919 Suze: you were married at least 10 years and you did 597 00:37:32,919 --> 00:37:36,879 Suze: not remarry before the age of 60 or you did 598 00:37:36,879 --> 00:37:40,120 Suze: get remarried and then you got divorced after the age 599 00:37:40,120 --> 00:37:49,120 Suze: of 60, you can get 100% of your ex-spouse's survivor benefit, 600 00:37:49,560 --> 00:37:51,199 Suze: which is 100% 601 00:37:51,409 --> 00:37:56,149 Suze: of his principal insurance amount at the age of 67, 602 00:37:56,649 --> 00:38:01,989 Suze: just remember that. You should see KT's face. 603 00:38:02,639 --> 00:38:06,679 KT: I'm like my mind's spinning with all of these people 604 00:38:06,679 --> 00:38:10,120 KT: that don't know what they're entitled to and it's not 605 00:38:10,120 --> 00:38:12,509 KT: like Social Security's gonna brag about it. 606 00:38:12,560 --> 00:38:15,279 Suze: Yeah, but I'll never forget that woman writing in the 607 00:38:15,280 --> 00:38:19,509 Suze: sister and saying there are four women here asking me 608 00:38:19,879 --> 00:38:21,919 Suze: and I'm like, well, guess what, you have good news 609 00:38:21,919 --> 00:38:25,439 Suze: for all of them anyway, KT, I think that's a wrap. 610 00:38:25,510 --> 00:38:29,689 KT: That is a wrap, Suze, until Sunday, and Sunday, everyone, 611 00:38:30,110 --> 00:38:31,780 KT: we have a great announcement. 612 00:38:31,830 --> 00:38:35,500 Suze: We do. We have a great announcement, a summer announcement. 613 00:38:35,909 --> 00:38:39,379 Suze: So tune in Sunday. So there's only one thing that 614 00:38:39,379 --> 00:38:41,540 Suze: we want you to remember when it comes to your money, 615 00:38:41,750 --> 00:38:42,830 Suze: and what is that, my love? 616 00:38:43,429 --> 00:38:46,489 KT: People first, then money, then things. 617 00:38:46,669 --> 00:38:49,649 Suze: Now you stay safe. Bye bye.