1 00:00:08,159 --> 00:00:13,069 Suze: September 11, 2025. Welcome everybody to the Women and Money podcast, 2 00:00:13,148 --> 00:00:14,680 KT: and Everyone Smart Enough to Listen. 3 00:00:14,680 --> 00:00:19,919 Suze: Today is KT and Ask Suzie anything. And so for 4 00:00:19,920 --> 00:00:22,520 Suze: those of you who want to write in and ask 5 00:00:22,520 --> 00:00:26,360 Suze: a question, and if KT chooses it, it will be 6 00:00:26,360 --> 00:00:31,049 Suze: on the podcast, please send those questions to ask Suze 7 00:00:31,049 --> 00:00:35,200 Suze: SUZE podcast at gmail.com. 8 00:00:35,729 --> 00:00:38,750 Suze: September 11th, 24 years ago today, KT, 9 00:00:39,029 --> 00:00:41,580 KT: we never, ever, ever will forget, 10 00:00:41,939 --> 00:00:46,589 Suze: nor will anybody else ever forget. So to all of 11 00:00:46,590 --> 00:00:52,180 Suze: us who will never forget, we always send blessings, prayers, 12 00:00:52,470 --> 00:00:56,549 Suze: and hope for all. All right. Any anything else you 13 00:00:56,549 --> 00:00:57,270 Suze: want to say there? 14 00:00:57,750 --> 00:00:59,189 KT: No, I think that's good, Suze. 15 00:00:59,310 --> 00:00:59,549 Suze: That's 16 00:00:59,549 --> 00:01:02,310 Suze: good. All right, sweetheart, so. 17 00:01:02,840 --> 00:01:03,759 Suze: What do you got? 18 00:01:04,059 --> 00:01:04,389 KT: OK... 19 00:01:04,620 --> 00:01:05,980 Suze: Did you have a good anniversary with me. 20 00:01:08,029 --> 00:01:13,089 KT: Yeah, we had, um, we had our wedding anniversary, not 21 00:01:13,089 --> 00:01:15,099 KT: our meeting anniversary. 22 00:01:15,199 --> 00:01:17,290 Suze: I actually like celebrating KT, 23 00:01:17,730 --> 00:01:18,690 KT: The meeting anniversary 24 00:01:18,690 --> 00:01:22,639 Suze: 25 years ago because 15 just doesn't sound like long enough. 25 00:01:22,940 --> 00:01:25,120 Suze: And I remember, I just want to tell you this. 26 00:01:25,370 --> 00:01:27,720 Suze: I remember when I first met you, I always thought, 27 00:01:28,010 --> 00:01:30,279 Suze: please let me get to double digits. 28 00:01:30,870 --> 00:01:31,269 KT: You did? 29 00:01:31,330 --> 00:01:33,690 Suze: I did. Let me get to double digits. Then we 30 00:01:33,690 --> 00:01:36,089 Suze: got to 10 years and I was like, yeah. Then 31 00:01:36,089 --> 00:01:39,489 Suze: at 15 years we got married. Then here we are 32 00:01:39,489 --> 00:01:42,610 Suze: about 25 years from when we were... 33 00:01:42,889 --> 00:01:44,730 KT: What are we going to do to celebrate that? 34 00:01:45,599 --> 00:01:50,260 Suze: Our 25th, yeah, yeah, probably nothing. All right, go on. 35 00:01:50,839 --> 00:01:53,000 KT: OK, here's my first question, Suze. 36 00:01:53,379 --> 00:01:57,629 KT: I love listening to your show in part because even 37 00:01:57,629 --> 00:02:00,699 KT: when I think the topic doesn't apply to me, I 38 00:02:00,699 --> 00:02:03,870 KT: find that I gained so much from it anyway. I've 39 00:02:03,870 --> 00:02:06,860 KT: got a question about a problem that's a good problem, 40 00:02:07,110 --> 00:02:12,589 KT: but it's causing great anxiety and indecision. OK, remember those 41 00:02:12,589 --> 00:02:16,070 KT: two words, everybody, anxiety, indecision. 42 00:02:16,839 --> 00:02:20,050 KT: Now here's the question. My father recently died and left 43 00:02:20,050 --> 00:02:22,679 KT: me with $1.2 million 44 00:02:22,919 --> 00:02:24,600 Suze: That can cause anxiety, believe it or 45 00:02:24,600 --> 00:02:24,989 Suze: not. 46 00:02:25,199 --> 00:02:29,880 KT: In mostly non-taxable funds. This was never and not expected. 47 00:02:30,240 --> 00:02:34,770 KT: My wife and I are 76 and 67 respectively, with 48 00:02:34,770 --> 00:02:38,579 KT: two adult children adopted who each have disabilities. 49 00:02:39,380 --> 00:02:43,258 KT: Before this inheritance, we planned to downsize and sell the 50 00:02:43,258 --> 00:02:46,299 KT: house and move into a condo that would cost no 51 00:02:46,300 --> 00:02:50,300 KT: more than about half a million dollars. This price range 52 00:02:50,300 --> 00:02:54,258 KT: in Minneapolis area would limit us slightly. There are some 53 00:02:54,258 --> 00:02:58,860 KT: amazing options in the $700,000 to $850,000 range that we 54 00:02:58,860 --> 00:03:00,059 KT: did not consider. 55 00:03:00,460 --> 00:03:03,520 KT: I'm wondering if at this point we can afford the 56 00:03:03,520 --> 00:03:07,918 KT: more expensive condo options. The HOA fees are similar to 57 00:03:07,919 --> 00:03:09,679 KT: the less expensive option. 58 00:03:10,029 --> 00:03:14,989 KT: But I'm extremely anxious about somehow losing what seems like 59 00:03:14,990 --> 00:03:18,270 KT: a huge amount of money that was just plopped in 60 00:03:18,270 --> 00:03:21,990 KT: our laps. We have no debt, but I worry that 61 00:03:21,990 --> 00:03:26,549 KT: now I suddenly have this unexpected inheritance. I'm feeling like 62 00:03:26,550 --> 00:03:28,710 KT: I don't want to spend any of it, and it 63 00:03:28,710 --> 00:03:33,179 KT: scares me to consider a more expensive downsized condo... 64 00:03:33,179 --> 00:03:33,535 Suze: What was the word? 65 00:03:34,169 --> 00:03:39,089 KT: It scares me. Which would not really be downsizing at 66 00:03:39,089 --> 00:03:42,009 KT: all because it might cost close to what we would 67 00:03:42,009 --> 00:03:45,160 KT: sell our house for. On the one hand, I think 68 00:03:45,160 --> 00:03:48,690 KT: we should go ahead and buy the nicer condo and 69 00:03:48,690 --> 00:03:52,320 KT: we would still be no worse off than we were 70 00:03:52,320 --> 00:03:54,539 KT: before this sudden influx of money. 71 00:03:54,929 --> 00:03:57,619 Suze: But the question is, on the other hand... 72 00:03:58,259 --> 00:04:01,539 Suze: Right. Should she keep, what should she do? Essentially, that's 73 00:04:01,539 --> 00:04:02,279 Suze: what she wants to. 74 00:04:02,619 --> 00:04:02,820 KT: What should she do Suze? 75 00:04:02,820 --> 00:04:06,960 Suze: What hand should she look at? Here's the answer to 76 00:04:06,960 --> 00:04:07,889 Suze: this dilemma. 77 00:04:09,130 --> 00:04:12,119 Suze: I've always told all of you the following. 78 00:04:13,080 --> 00:04:16,440 Suze: When do you buy what you need versus what you 79 00:04:16,440 --> 00:04:17,309 Suze: can afford? 80 00:04:18,119 --> 00:04:22,130 Suze: When you can afford more than what you need. 81 00:04:23,140 --> 00:04:27,019 Suze: Cause the key to creating more and more wealth, to 82 00:04:27,019 --> 00:04:31,140 Suze: making more money out of your money is not to 83 00:04:31,140 --> 00:04:35,570 Suze: buy what you can afford, but to buy what you need. 84 00:04:35,820 --> 00:04:39,859 Suze: And in this case, what's sad about this is that 85 00:04:39,859 --> 00:04:44,700 Suze: with Sharon what's happening here is they were fine. They 86 00:04:44,700 --> 00:04:47,859 Suze: were going to downsize. Everything was perfect. 87 00:04:48,190 --> 00:04:53,868 Suze: Until they got this $1.2 million unexpectedly, and now she's 88 00:04:53,869 --> 00:04:55,178 Suze: full of anxiety. 89 00:04:55,428 --> 00:04:56,140 KT: She's scared. 90 00:04:56,750 --> 00:05:00,419 Suze: She's scared. She doesn't know what to do. Well, I'll 91 00:05:00,420 --> 00:05:03,070 Suze: tell you what to do. It's not, oh, now you 92 00:05:03,070 --> 00:05:06,619 Suze: have this extra money so you can buy something more. No, 93 00:05:07,149 --> 00:05:11,390 Suze: you're going to continue according to plan. You're going to 94 00:05:11,390 --> 00:05:16,390 Suze: continue to buy the one in the $500,000 arena. That's 95 00:05:16,390 --> 00:05:17,269 Suze: what you wanted. 96 00:05:17,519 --> 00:05:20,850 Suze: And you're just going to either save this money, invest 97 00:05:20,850 --> 00:05:23,450 Suze: this money, give some away to charity. I don't know 98 00:05:23,450 --> 00:05:25,690 Suze: what you're going to do with it, but you're not 99 00:05:25,690 --> 00:05:29,409 Suze: going to spend a gift and have it create an 100 00:05:29,410 --> 00:05:33,019 Suze: intense situation for you where you have anxiety and you 101 00:05:33,019 --> 00:05:34,000 Suze: are scared. 102 00:05:35,089 --> 00:05:37,329 Suze: Remember what is the goal of money? It is for 103 00:05:37,329 --> 00:05:40,450 Suze: you to be secure. You were secure before you got 104 00:05:40,450 --> 00:05:43,969 Suze: this money. Now you don't know what to do. Well, 105 00:05:44,010 --> 00:05:47,570 Suze: I'll tell you what not to do. Don't buy more 106 00:05:47,570 --> 00:05:51,209 Suze: just because you can afford it. Buy what you need 107 00:05:51,209 --> 00:05:55,149 Suze: versus what you can afford, no matter how wealthy you get. 108 00:05:55,488 --> 00:05:58,890 Suze: And believe it or not, everybody, that is still to 109 00:05:58,890 --> 00:06:00,700 Suze: this day exactly 110 00:06:01,260 --> 00:06:05,850 Suze: how KT and I live our lives. All right, KT, next. 111 00:06:06,000 --> 00:06:07,868 KT: That's for sure. 112 00:06:10,700 --> 00:06:13,450 KT: Sometimes I say to Suze, let's spend a little money. 113 00:06:13,720 --> 00:06:17,579 KT: She said, Why? And I can never answer. All right, 114 00:06:17,790 --> 00:06:20,750 KT: so next is from Linda. She said, Hi, Suze and KT. 115 00:06:21,140 --> 00:06:24,109 KT: I'm 74 years old and have been listening to your 116 00:06:24,109 --> 00:06:28,690 KT: podcast for almost two years now. I'm a retired teacher 117 00:06:28,940 --> 00:06:33,700 KT: and my net income is about $4,500 a month through 118 00:06:33,700 --> 00:06:37,700 KT: my pension program and a little bit of Social Security. 119 00:06:38,309 --> 00:06:42,910 KT: We love teachers, don't we have. My question is, should 120 00:06:42,910 --> 00:06:48,989 KT: I try investing in the stock market? My goal is 121 00:06:48,988 --> 00:06:51,669 KT: to save enough money in case I need more money 122 00:06:51,670 --> 00:06:54,589 KT: for long-term care in another 10 years or so. 123 00:06:55,359 --> 00:06:58,950 KT: At my age, long term care insurance is too expensive, 124 00:06:59,160 --> 00:07:01,440 KT: so I think I'd be better off saving... 125 00:07:01,440 --> 00:07:02,263 Suze: How old is she? 126 00:07:02,263 --> 00:07:02,320 KT: 74. 127 00:07:02,559 --> 00:07:04,869 Suze: Right, so she's talking about 84 now go on. 128 00:07:05,839 --> 00:07:09,559 KT: She said at my age long term care insurance is 129 00:07:09,559 --> 00:07:12,500 KT: too expensive, so I think I'd be better off saving 130 00:07:12,720 --> 00:07:14,640 KT: than pouring that money into an insurance 131 00:07:15,114 --> 00:07:18,674 KT: policy. I own my home. It may not be paid 132 00:07:18,674 --> 00:07:24,904 KT: off in my lifetime. I do have approximately $175,000 equity 133 00:07:25,315 --> 00:07:30,924 KT: in my home, and I owe about $150,000 more. Also, 134 00:07:30,994 --> 00:07:35,904 KT: my interest rate is only 2.75%. Should I try putting 135 00:07:35,904 --> 00:07:38,924 KT: $1,000 in the Vanguard VOO, 136 00:07:39,850 --> 00:07:42,929 KT: now just to get familiar with it or just stay 137 00:07:42,929 --> 00:07:44,260 KT: with CDs? 138 00:07:44,269 --> 00:07:44,529 Suze: Let 139 00:07:44,529 --> 00:07:45,679 Suze: me see that. 140 00:07:45,850 --> 00:07:46,329 KT: Go with the Voo. 141 00:07:46,329 --> 00:07:47,529 Suze: Go with 142 00:07:47,529 --> 00:07:50,410 KT: the with the voo. Let her try it. 143 00:07:50,410 --> 00:07:53,649 Suze: Is that what you would tell her? Yeah, so this 144 00:07:53,649 --> 00:07:57,089 Suze: is your quizzy. You would say, cause she's fine, she 145 00:07:57,089 --> 00:07:59,570 Suze: has good income and all. She has about 48... I'm 146 00:07:59,570 --> 00:08:03,079 Suze: reading this now, she has about 48,000 CDs and checking. 147 00:08:03,130 --> 00:08:06,200 Suze: All right. She is 74. 148 00:08:07,010 --> 00:08:10,790 Suze: And you would say, take that $1,000 extra dollars and 149 00:08:10,790 --> 00:08:11,899 Suze: see what you can do with it.. 150 00:08:11,899 --> 00:08:11,908 KT: With the VOO... 151 00:08:11,908 --> 00:08:16,630 Suze: You would, would you, why not? Because I'm going to 152 00:08:16,630 --> 00:08:23,230 Suze: show you how a great financial advisor, I'm very serious, 153 00:08:23,309 --> 00:08:26,950 Suze: which I am, would look at this problem here. 154 00:08:27,649 --> 00:08:31,420 Suze: And tell her how to solve it. You know, it's funny, everybody, 155 00:08:31,709 --> 00:08:33,669 Suze: I look at all of your money like it's a 156 00:08:33,669 --> 00:08:37,829 Suze: chess game. If I make one move, how does that 157 00:08:37,830 --> 00:08:41,510 Suze: affect everything else? And what is the smartest move that 158 00:08:41,510 --> 00:08:42,669 Suze: I can make? 159 00:08:43,500 --> 00:08:46,460 Suze: So that you can have checkmate. You can always win 160 00:08:46,460 --> 00:08:50,539 Suze: no matter what. So here, my dear Linda, is what 161 00:08:50,539 --> 00:08:53,530 Suze: I want you to think about. You say... 162 00:08:53,619 --> 00:08:56,179 KT: Wait, you'd have to just, I just want to say something. 163 00:08:57,080 --> 00:09:00,200 KT: So there's nothing wrong with VOO. It's just not right 164 00:09:00,200 --> 00:09:02,359 KT: for Linda at this time. 165 00:09:02,799 --> 00:09:03,000 Suze: Well, it 166 00:09:03,000 --> 00:09:06,799 Suze: wouldn't be necessarily wrong for Linda, but there's a better way. 167 00:09:06,919 --> 00:09:07,650 KT: OK, OK. 168 00:09:07,840 --> 00:09:08,250 Suze: There's an absolutely better. 169 00:09:09,869 --> 00:09:10,229 KT: Let's hear it. 170 00:09:10,320 --> 00:09:14,830 Suze: First of all, she says she has $175,000 of equity 171 00:09:15,200 --> 00:09:20,679 Suze: in her home, and she owes still about $150,000 and 172 00:09:20,679 --> 00:09:24,959 Suze: she has a 2.75% interest rate. That means she bought 173 00:09:24,960 --> 00:09:26,590 Suze: it a few years ago. 174 00:09:27,140 --> 00:09:31,280 Suze: And she's still her her mortgage payments with that KT 175 00:09:31,280 --> 00:09:38,789 Suze: are probably about $612 right around there, a month. OK, great. 176 00:09:39,159 --> 00:09:44,880 Suze: What if, because obviously she has a 30 year mortgage, right? 177 00:09:45,020 --> 00:09:47,599 Suze: It's obvious that that's what she has. All right, so 178 00:09:47,599 --> 00:09:52,239 Suze: listen to me closely, Linda. You have a $612 a 179 00:09:52,239 --> 00:09:53,429 Suze: month mortgage. 180 00:09:53,830 --> 00:09:58,419 Suze: But you still probably owe about 27 years on this 181 00:09:58,419 --> 00:10:03,530 Suze: mortgage and you're already 74 years of age, so you're 182 00:10:03,530 --> 00:10:06,039 Suze: probably never going to have it paid off in your lifetime. 183 00:10:06,390 --> 00:10:12,840 Suze: All right, however, what if you were to take that $1,000? 184 00:10:13,489 --> 00:10:18,098 Suze: And put it towards your mortgage so that rather than 185 00:10:18,099 --> 00:10:25,150 Suze: $612 a month, you're now paying $1,612 a month towards 186 00:10:25,150 --> 00:10:29,348 Suze: this mortgage. Do you know if you did that, you 187 00:10:29,349 --> 00:10:33,830 Suze: would own this house outright in seven years and about 188 00:10:33,830 --> 00:10:34,960 Suze: four months. 189 00:10:35,650 --> 00:10:36,650 Suze: Do you like that, KT? 190 00:10:36,750 --> 00:10:37,719 KT: I love that. 191 00:10:37,809 --> 00:10:41,669 Suze: All right, so now you have a home that's worth 192 00:10:41,669 --> 00:10:47,119 Suze: $325,000 maybe $350,000 at that time or more that you 193 00:10:47,119 --> 00:10:50,239 Suze: could either sell, do a reverse mortgage on, but you 194 00:10:50,239 --> 00:10:56,580 Suze: now have also lowered your expenses by $1,600 a month 195 00:10:57,400 --> 00:10:59,690 Suze: because you were able to pay it for a mortgage. 196 00:10:59,760 --> 00:11:01,669 Suze: Now you don't have that anymore. 197 00:11:02,450 --> 00:11:07,229 Suze: Now what would happen if you took that $1,000 and 198 00:11:07,229 --> 00:11:11,150 Suze: you invested it, let's say in V oo. Now, even 199 00:11:11,150 --> 00:11:14,909 Suze: though I know VOO has averaged about 15% over the 200 00:11:14,909 --> 00:11:19,830 Suze: past five years or so, let's just be conservative where 201 00:11:19,830 --> 00:11:23,989 Suze: it averages about 10% because that's on average what it 202 00:11:23,989 --> 00:11:27,349 Suze: should make. So what that would mean is that in 203 00:11:27,349 --> 00:11:29,109 Suze: 7.4 years. 204 00:11:29,679 --> 00:11:33,319 Suze: At about a 10% average annual rate of return, you 205 00:11:33,320 --> 00:11:36,709 Suze: would have $124,000. 206 00:11:37,489 --> 00:11:46,270 Suze: But you would still owe $118,000 on your mortgage. Now 207 00:11:46,270 --> 00:11:49,820 Suze: I have a lot of money invest in the known 208 00:11:49,820 --> 00:11:51,580 Suze: versus the unknown. 209 00:11:52,429 --> 00:11:56,760 Suze: If you put $1,000 a month into the house, we 210 00:11:56,760 --> 00:12:01,359 Suze: know in 7.4 years you're going to get rid of 211 00:12:01,359 --> 00:12:07,280 Suze: $150,000 and own your home outright. We actually don't know 212 00:12:07,280 --> 00:12:10,119 Suze: what's going to happen in the stock market. We don't 213 00:12:10,119 --> 00:12:13,070 Suze: know that we could say that $1,000 over the next 214 00:12:13,070 --> 00:12:18,718 Suze: 7.4 years is going to make 10%. It could lose 10%. 215 00:12:19,309 --> 00:12:24,289 Suze: We have no idea. Therefore, what you are going to 216 00:12:24,289 --> 00:12:28,689 Suze: do is you're going to invest in yourself, in your security, 217 00:12:28,809 --> 00:12:32,330 Suze: and the known versus the unknown, and you are going 218 00:12:32,330 --> 00:12:36,539 Suze: to put that extra $1,000 towards the principal payment of 219 00:12:36,539 --> 00:12:40,250 Suze: your mortgage, and that's exactly what you are going to 220 00:12:40,250 --> 00:12:43,580 Suze: do with it. You are not going to invest it. 221 00:12:43,809 --> 00:12:44,460 Suze: There you go, KT. 222 00:12:45,840 --> 00:12:46,510 Suze: How was that? 223 00:12:46,650 --> 00:12:48,909 KT: That's why you're Suze Orman. I'm not. 224 00:12:49,260 --> 00:12:51,319 Suze: Pretty good. I can pull numbers like that.. 225 00:12:51,929 --> 00:12:57,000 KT: You always could. OK, my next question is from a man. 226 00:12:57,080 --> 00:13:01,189 KT: I love these from Randy. He said, Hi, Suze and KT, 227 00:13:01,320 --> 00:13:04,280 KT: thanks for taking my question. I'm one of the guys 228 00:13:04,280 --> 00:13:06,520 KT: from Ohio that is smart enough to listen. 229 00:13:06,520 --> 00:13:10,349 Suze: There's a clue for all of you men out there. 230 00:13:10,599 --> 00:13:11,949 Suze: That's all you have to say. 231 00:13:12,250 --> 00:13:14,359 Suze: I'm one of the men smart enough to listen, and 232 00:13:14,359 --> 00:13:15,400 Suze: I have a feeling, Ms. Travis will pick it. 233 00:13:15,479 --> 00:13:17,950 KT: I will always pick it, always put you on top 234 00:13:17,950 --> 00:13:23,169 KT: of the list. My question concerns maximizing my HSA contribution 235 00:13:23,400 --> 00:13:27,440 KT: as I approach age 70. I'm a June baby. He's 236 00:13:27,440 --> 00:13:30,840 KT: like you, Suze. Yeah, little Gemini baby. 237 00:13:31,099 --> 00:13:34,090 KT: I'm a June baby. I'm a June baby and trying 238 00:13:34,090 --> 00:13:39,010 KT: to maximize my annual contribution in my 70th year before 239 00:13:39,010 --> 00:13:44,210 KT: I draw SSA checks and still avoid a federal six 240 00:13:44,210 --> 00:13:48,489 KT: month look back penalty. Does it make any sense for 241 00:13:48,489 --> 00:13:52,689 KT: me in my 70th year to make a January HSA 242 00:13:52,690 --> 00:13:58,409 KT: contribution and then delay SSA checks by a month? I 243 00:13:58,409 --> 00:13:59,569 KT: appreciate your feedback. 244 00:14:00,159 --> 00:14:01,830 KT: This is way out of my league. 245 00:14:02,000 --> 00:14:03,080 Suze: Do you even know what we're talking about? 246 00:14:03,299 --> 00:14:06,650 KT: No, I do not, way out of my league, Randy. 247 00:14:06,960 --> 00:14:11,960 Suze: Randy has a health savings account which is attached to 248 00:14:11,960 --> 00:14:17,858 Suze: a high deductible health insurance plan, and he's allowed to 249 00:14:18,200 --> 00:14:22,429 Suze: put money in every single year up to a max, 250 00:14:22,719 --> 00:14:25,359 Suze: and he can take that money and invest it in 251 00:14:25,359 --> 00:14:28,390 Suze: the HSA mutual fund that they offer. 252 00:14:28,909 --> 00:14:33,770 Suze: And once he turns 65 or older, he can use 253 00:14:33,770 --> 00:14:39,210 Suze: that money for any qualified medical expense that he may have, 254 00:14:39,500 --> 00:14:42,559 Suze: and he doesn't pay taxes on it when he takes 255 00:14:42,559 --> 00:14:46,260 Suze: it out and it was a tax deduction when he 256 00:14:46,260 --> 00:14:50,900 Suze: put it in. So big deal if you ask me. 257 00:14:50,900 --> 00:14:53,580 Suze: When you file for Social Security, 258 00:14:54,320 --> 00:15:00,049 Suze: you're automatically once you're 65 or older, you're automatically enrolled 259 00:15:00,049 --> 00:15:05,489 Suze: in Medicare Part A, but it's retroactive for up to 260 00:15:05,489 --> 00:15:14,479 Suze: six months, so that retroactive Medicare coverage makes HSA contributions 261 00:15:14,750 --> 00:15:19,719 Suze: for those months ineligible, and if they're ineligible and Randy 262 00:15:19,719 --> 00:15:22,409 Suze: works to put money in during that period, 263 00:15:22,820 --> 00:15:28,039 Suze: he could face tax penalties if he contributed during that period. 264 00:15:28,440 --> 00:15:32,510 Suze: So I know this sounds complicated, but in essence he's saying, 265 00:15:32,719 --> 00:15:37,760 Suze: can he postpone it for a month because if Randy's birthday, 266 00:15:37,880 --> 00:15:42,719 Suze: his 70th birthday is in June. Social Security. Now listen 267 00:15:42,719 --> 00:15:46,390 Suze: to this, everybody. Social Security is going to consider him 268 00:15:46,719 --> 00:15:49,760 Suze: to have reached age 70 in May. 269 00:15:50,359 --> 00:15:54,909 Suze: They use the month before your birth month, Randy. 270 00:15:55,669 --> 00:15:59,969 Suze: So if you file to start benefits in May, Medicare 271 00:15:59,969 --> 00:16:03,489 Suze: Part A would be retroactive back to November of the 272 00:16:03,489 --> 00:16:09,250 Suze: prior year, which wipes out HSA eligibility for contributions to 273 00:16:09,250 --> 00:16:15,080 Suze: that point. Here's the bottom line, sweetheart. Is it worth it? 274 00:16:15,409 --> 00:16:19,450 Suze: I just don't think it is worth for you to 275 00:16:19,450 --> 00:16:23,729 Suze: contribute one month extra of an HSA contribution, 276 00:16:24,140 --> 00:16:29,090 Suze: and give up one month of Social Security income. 277 00:16:30,070 --> 00:16:35,200 Suze: I just can't see it making sense. So therefore, don't 278 00:16:35,200 --> 00:16:37,909 Suze: do it, don't do it, don't do it. 279 00:16:38,479 --> 00:16:40,960 KT: So this is my next question, Suze. I have a 280 00:16:40,960 --> 00:16:45,590 KT: Roth quizzy. This is from Liz. Liz is 58 years old. 281 00:16:45,799 --> 00:16:49,330 KT: She has a $90,000 IRA 282 00:16:49,900 --> 00:16:54,419 KT: from previous employment she would like to gradually convert that 283 00:16:54,419 --> 00:16:58,940 KT: to a Roth. I understand the five year timeline, so 284 00:16:58,940 --> 00:17:02,659 KT: she's asking if she starts to convert with a small 285 00:17:02,659 --> 00:17:06,899 KT: amount when she converts more money, does the five year 286 00:17:06,900 --> 00:17:10,739 KT: rule kick in for each conversion? Does it start a 287 00:17:10,739 --> 00:17:13,410 KT: new timeline for every conversion? 288 00:17:14,329 --> 00:17:16,670 KT: She has conflicting information. 289 00:17:18,958 --> 00:17:19,258 Suze: You should see KT's face. 290 00:17:21,058 --> 00:17:23,779 KT: I think, I think that the five year rule, the 291 00:17:23,779 --> 00:17:26,418 KT: number is 59 and a half, and that's when the 292 00:17:26,417 --> 00:17:32,509 KT: penalty goes away. I'm, no, I, I know my stuff. 293 00:17:32,519 --> 00:17:34,259 KT: So I think that's all you need to worry about. 294 00:17:34,578 --> 00:17:34,779 Suze: That's 295 00:17:34,779 --> 00:17:36,369 Suze: not all you need to worry about. 296 00:17:36,458 --> 00:17:36,629 KT: OK, ok. 297 00:17:36,739 --> 00:17:42,129 Suze: Liz, there is a lot of conflicting information out there. 298 00:17:42,520 --> 00:17:45,609 Suze: And the answer has a lot to do with, do 299 00:17:45,609 --> 00:17:49,619 Suze: you already have a Roth that met the five year rule, 300 00:17:49,790 --> 00:17:53,660 Suze: or do you not? The age, all kinds of things. 301 00:17:53,709 --> 00:17:58,500 Suze: So therefore this Sunday in honor of you, Ms. Travis, 302 00:17:58,829 --> 00:18:02,589 Suze: I'm going to give a Suze school once again on 303 00:18:02,589 --> 00:18:04,569 Suze: this particular topic. 304 00:18:04,569 --> 00:18:07,660 KT: And I'm joining her. I'm going to join you. I'm 305 00:18:07,660 --> 00:18:08,839 KT: going to help everybody. 306 00:18:09,619 --> 00:18:11,739 KT: Because I... wait till they hear how much I learned 307 00:18:11,739 --> 00:18:12,530 KT: about Roth. 308 00:18:12,819 --> 00:18:15,819 Suze: KT, they don't care what you've learned about Roth. They 309 00:18:15,819 --> 00:18:17,389 Suze: care about what they need to learn about a Roth. 310 00:18:17,760 --> 00:18:19,979 KT: I'll be there, everybody. I'll be there Sunday. 311 00:18:20,099 --> 00:18:22,449 Suze: You are not going to be at my Suze School 312 00:18:22,449 --> 00:18:22,660 Suze: with me. 313 00:18:22,939 --> 00:18:23,930 KT: I'm gonna be there. 314 00:18:24,979 --> 00:18:27,739 Suze: All right, anyway, so that's what we're gonna do. So Liz, 315 00:18:28,140 --> 00:18:31,859 Suze: make sure you tune in because I think my answer's 316 00:18:31,859 --> 00:18:34,649 Suze: going to surprise a lot of you because you're really 317 00:18:35,020 --> 00:18:36,930 Suze: getting it wrong. All right, go on, OK. 318 00:18:37,260 --> 00:18:37,589 KT: OK, next 319 00:18:37,589 --> 00:18:39,119 KT: question is from Judy. 320 00:18:39,579 --> 00:18:43,859 KT: Judy said, I'm 64-year-old single woman who has been retired 321 00:18:43,859 --> 00:18:49,060 KT: three years thanks partly to your advice. Thank you, Susie, 322 00:18:49,739 --> 00:18:53,219 KT: she said. I have a quick question about AI. I 323 00:18:53,219 --> 00:18:57,130 KT: want to dabble with some of the money I can risk, 324 00:18:57,380 --> 00:19:01,140 KT: and I wanted to know what ETFs and or stocks 325 00:19:01,140 --> 00:19:05,579 KT: you suggest that I can start with for my AI investment. 326 00:19:06,089 --> 00:19:10,449 KT: Thanks for everything, and she said hello to KT. So Judy, 327 00:19:10,869 --> 00:19:13,349 KT: this is the first time I read this where people 328 00:19:13,349 --> 00:19:17,079 KT: have money to risk that doesn't sit well with Suze. 329 00:19:17,270 --> 00:19:20,910 Suze: KT, what did you hear me do the other day 330 00:19:20,910 --> 00:19:24,349 Suze: on the phone? I said, this is risk money, buy this. 331 00:19:24,839 --> 00:19:25,729 Suze: You absolutely... 332 00:19:25,910 --> 00:19:26,669 KT: Not with my money. 333 00:19:26,869 --> 00:19:27,650 Suze: No, you don't like risk. 334 00:19:28,180 --> 00:19:28,709 KT: I never... 335 00:19:29,420 --> 00:19:31,229 Suze: I don't care if you have money to risk. I 336 00:19:31,229 --> 00:19:33,589 Suze: want you to have money to risk. Why would I 337 00:19:33,589 --> 00:19:33,780 Suze: want 338 00:19:33,780 --> 00:19:33,979 Suze: that> 339 00:19:33,979 --> 00:19:36,550 KT: So answer her question. What does she do? What does 340 00:19:36,550 --> 00:19:37,810 KT: she invest in with AI? 341 00:19:38,020 --> 00:19:41,229 Suze: What you didn't tell me is how much money 342 00:19:41,645 --> 00:19:47,464 Suze: you have to risk. Therefore, the number one ETF that 343 00:19:47,464 --> 00:19:50,425 Suze: I would be telling you to buy if you're really 344 00:19:50,425 --> 00:19:57,625 Suze: interested in artificial intelligence is the ETF with the letters SMH. 345 00:19:58,359 --> 00:20:00,729 Suze: So that's what I would tell you to buy. That's 346 00:20:00,729 --> 00:20:04,209 Suze: what I've been telling everybody to buy for a long 347 00:20:04,209 --> 00:20:08,489 Suze: time right now because it actually has all of the 348 00:20:08,489 --> 00:20:14,290 Suze: AI stocks and the stocks in that category. Obviously my 349 00:20:14,290 --> 00:20:17,530 Suze: favorite AI stocks are Microsoft, 350 00:20:18,050 --> 00:20:24,010 Suze: Nvidia, AMD, and I can go on and on like that. However, 351 00:20:24,410 --> 00:20:27,569 Suze: I think the best way to start to dabble would 352 00:20:27,569 --> 00:20:32,609 Suze: be with SMH. And by the way, Apple, you've got 353 00:20:32,609 --> 00:20:35,839 Suze: to be invested in Apple. All right, KT, next question. 354 00:20:35,930 --> 00:20:37,969 KT: I'm invested in Apple, everybody. 355 00:20:38,050 --> 00:20:41,729 Suze: You've been invested in Apple a long, long since I've 356 00:20:41,729 --> 00:20:42,520 Suze: known you. 357 00:20:44,349 --> 00:20:47,630 KT: I got lots of apples. OK, ready. Next question is 358 00:20:47,630 --> 00:20:52,380 KT: from Betty. Hi, Suze and KT. My brother-in-law recently passed 359 00:20:52,380 --> 00:20:58,099 KT: and left my sister-in-law a million dollars life insurance benefit. 360 00:20:58,349 --> 00:20:58,899 Suze: Love that. 361 00:20:59,709 --> 00:21:04,659 KT: After making a budget, she'll be short $3,300 a month. 362 00:21:04,949 --> 00:21:09,349 KT: Her CPA and financial advisor recommend she takes out a 363 00:21:09,349 --> 00:21:12,079 KT: $518,000 lump sum 364 00:21:13,353 --> 00:21:18,012 KT: immediate annuity that will provide the income for life if, 365 00:21:18,071 --> 00:21:21,272 KT: and if she dies, ready for this, it'll pay her 366 00:21:21,272 --> 00:21:25,782 KT: beneficiaries for up to 10 years from starting the annuity. 367 00:21:26,593 --> 00:21:30,753 KT: She's 73 years old, in good health does not own 368 00:21:30,753 --> 00:21:35,233 KT: a home. The million dollars is all she has. The 369 00:21:35,233 --> 00:21:36,072 KT: advisor said 370 00:21:36,186 --> 00:21:40,916 KT: there's no fees, surrender charges, and everything is built in. 371 00:21:41,296 --> 00:21:44,895 KT: Whatever that means. She also wants to take out a 372 00:21:44,895 --> 00:21:50,086 KT: life insurance policy with a long-term care benefit for $150,000 373 00:21:50,336 --> 00:21:56,086 KT: that would provide $370,000 in long-term care for up to 374 00:21:56,086 --> 00:22:02,906 KT: four years. The commission on investments is about 1.05%, which 375 00:22:02,906 --> 00:22:04,816 KT: sounds reasonable to me. 376 00:22:05,319 --> 00:22:07,869 KT: I'm nervous for her to spend half of what she 377 00:22:07,869 --> 00:22:14,030 KT: has in a lump sum to provide only $3,300 in income, 378 00:22:14,280 --> 00:22:17,920 KT: but I know my sister-in-law would also feel secured with 379 00:22:17,920 --> 00:22:22,390 KT: guaranteed income. Betty wants to know, Suze, what do you think? 380 00:22:25,359 --> 00:22:27,000 KT: Can I tell everyone what your face looks 381 00:22:27,000 --> 00:22:27,099 KT: like? 382 00:22:27,270 --> 00:22:31,060 Suze: Yeah. Like always. I'll tell you what upsets 383 00:22:31,060 --> 00:22:31,319 Suze: me. 384 00:22:31,719 --> 00:22:34,899 KT: These CPAs and financial advisors. 385 00:22:36,010 --> 00:22:37,930 Suze: How old is Betty? How old is... 386 00:22:38,449 --> 00:22:41,050 KT: She's in good health. She's um 7, 387 00:22:41,530 --> 00:22:41,649 Suze: 73, 388 00:22:41,810 --> 00:22:43,729 KT: she's in good health. She doesn't own 389 00:22:43,729 --> 00:22:43,859 KT: a 390 00:22:43,859 --> 00:22:44,239 KT: home. 391 00:22:44,449 --> 00:22:44,729 Suze: Here's 392 00:22:44,729 --> 00:22:49,599 Suze: the scoop, everybody. I think this is horrific advice, horrific advice. 393 00:22:49,849 --> 00:22:53,849 Suze: When somebody says there's no fees, there's no commissions, there's 394 00:22:53,849 --> 00:22:54,810 Suze: no anything in it. 395 00:22:54,810 --> 00:22:55,810 KT: It's built in 396 00:22:55,810 --> 00:22:57,609 Suze: And it's built in. Well, why the hell would they 397 00:22:57,609 --> 00:22:58,439 Suze: want to do it then? 398 00:22:59,400 --> 00:23:04,400 Suze: Who's paying them to do that? They get 1.05% for 399 00:23:04,400 --> 00:23:07,880 Suze: other investment advice they're gonna give this person, but they 400 00:23:07,880 --> 00:23:10,709 Suze: don't make any money on this. Are you kidding me? 401 00:23:11,040 --> 00:23:14,800 Suze: They're probably going to get on an immediate annuity. 402 00:23:15,630 --> 00:23:18,910 Suze: Could be anywhere from 25,000 to 30 or 40,000 they're 403 00:23:18,910 --> 00:23:21,819 Suze: going to get a lot of money if she does this. 404 00:23:22,030 --> 00:23:23,349 Suze: That's number one. 405 00:23:24,239 --> 00:23:27,010 Suze: Number two, just let me explain to everybody how this 406 00:23:27,010 --> 00:23:31,319 Suze: annuity works. It's what's known as a 10 year certain annuity. 407 00:23:31,689 --> 00:23:35,359 Suze: So KT, she's the same age as you. She's 73 408 00:23:35,359 --> 00:23:37,709 Suze: and she's in good health, like she's in good health. 409 00:23:38,000 --> 00:23:41,680 Suze: So if anything were to happen between the day that 410 00:23:41,680 --> 00:23:46,520 Suze: she buys it and 10 years from now, what's left 411 00:23:46,520 --> 00:23:49,079 Suze: in that 10 year time period, so if in five 412 00:23:49,079 --> 00:23:52,589 Suze: years from now she's killed in a car crash, her 413 00:23:52,589 --> 00:23:55,890 Suze: beneficiaries get that $3300 a 414 00:23:55,964 --> 00:23:59,764 Suze: month for another five years. Once she lives past 10 415 00:23:59,765 --> 00:24:05,284 Suze: years and she dies, her beneficiaries don't get anything. So 416 00:24:05,285 --> 00:24:08,564 Suze: the first question has to be, does she have any 417 00:24:08,564 --> 00:24:12,165 Suze: beneficiaries that she cares about, because the truth of the 418 00:24:12,165 --> 00:24:16,354 Suze: matter is she could get the exact same income right now, 419 00:24:16,614 --> 00:24:20,044 Suze: not touch her principal. She could actually get more income 420 00:24:20,530 --> 00:24:26,939 Suze: and still have $518,000 to leave to her loved ones. 421 00:24:27,359 --> 00:24:30,389 Suze: I mean, I want you all to think about this, 422 00:24:30,660 --> 00:24:34,119 Suze: so it's just not something that she should be doing 423 00:24:34,119 --> 00:24:37,849 Suze: at this period in time in terms of the long 424 00:24:37,849 --> 00:24:41,619 Suze: term care, all right, but if I were all of 425 00:24:41,619 --> 00:24:44,560 Suze: you and I want you to listen to me closely, 426 00:24:44,839 --> 00:24:48,079 Suze: I do not get a penny for saying this, never 427 00:24:48,079 --> 00:24:49,550 Suze: have and never will. 428 00:24:50,640 --> 00:24:54,439 Suze: If you are interested in buying a long term care 429 00:24:54,439 --> 00:24:58,680 Suze: insurance policy of any kind, that's fine, but I would 430 00:24:58,680 --> 00:25:03,550 Suze: not buy it before I consulted with Phyllis Shelton, who, 431 00:25:03,560 --> 00:25:07,579 Suze: in my opinion, is one of the experts in long-term 432 00:25:07,579 --> 00:25:12,438 Suze: care in the entire United States. She has a whole 433 00:25:12,439 --> 00:25:17,219 Suze: staff that is so knowledgeable I cannot tell you if 434 00:25:17,219 --> 00:25:20,280 Suze: you went to the Women and Money community app. 435 00:25:20,780 --> 00:25:23,800 Suze: And you look where all those little boxes are when 436 00:25:23,800 --> 00:25:28,229 Suze: you first sign on, you will see long term care insurance, 437 00:25:28,380 --> 00:25:31,829 Suze: click there and it will tell you how you contact her. 438 00:25:32,530 --> 00:25:35,829 Suze: Right, I would do that, Betty. I would have your 439 00:25:35,829 --> 00:25:41,479 Suze: sister-in-law do this before she purchases anything from these people. 440 00:25:42,010 --> 00:25:45,770 Suze: The other thing here that I don't like is that 441 00:25:45,770 --> 00:25:51,319 Suze: you have both a financial adviser and an accountant, a CPA, 442 00:25:51,689 --> 00:25:56,750 Suze: both saying to do this. Now I'd like to know, 443 00:25:57,130 --> 00:26:00,170 Suze: does that CPA get a referral fee 444 00:26:00,890 --> 00:26:04,649 Suze: for referring it to a financial adviser and therefore they 445 00:26:04,650 --> 00:26:08,369 Suze: both are going to benefit. I would never ever ever 446 00:26:08,369 --> 00:26:09,439 Suze: do business 447 00:26:10,069 --> 00:26:14,250 Suze: with somebody who gets a referral fee when I used, 448 00:26:14,349 --> 00:26:16,988 Suze: like I just said right now with Phyllis Shelton, I 449 00:26:16,989 --> 00:26:19,829 Suze: don't get a referral fee. There is no way she 450 00:26:19,829 --> 00:26:23,430 Suze: can benefit me in any possible way. The only thing 451 00:26:23,430 --> 00:26:27,310 Suze: she can do is help you when you need help 452 00:26:27,310 --> 00:26:30,709 Suze: in picking out the right solution for you. You don't 453 00:26:30,709 --> 00:26:32,790 Suze: have to go with her if you don't want, but 454 00:26:32,790 --> 00:26:35,219 Suze: there's no fees to do so. 455 00:26:35,780 --> 00:26:39,429 Suze: So there you go, that's my answer, but Betty, I 456 00:26:39,430 --> 00:26:44,419 Suze: won't touch this annuity with a 10 ft pole. 457 00:26:45,500 --> 00:26:48,180 Suze: What I would touch, however, with a 10 ft pole. 458 00:26:48,890 --> 00:26:52,160 Suze: Is the podcast on Sunday where all of you are 459 00:26:52,160 --> 00:26:55,689 Suze: going to learn something you all need to know? I'll 460 00:26:55,689 --> 00:27:00,839 Suze: be there. Don't you hate that saying be there, be square. Anyway, 461 00:27:00,959 --> 00:27:03,880 Suze: that's besides the point. There's only one thing we want 462 00:27:03,880 --> 00:27:06,030 Suze: you all to remember when it comes to your money. 463 00:27:06,280 --> 00:27:07,510 Suze: And what is that, Ms. Travis? 464 00:27:07,920 --> 00:27:12,310 KT: It is people first, then money, then things, and you stay safe, 465 00:27:12,359 --> 00:27:13,750 KT: and I'll see you Sunday. 466 00:27:13,839 --> 00:27:15,670 Suze: There we go. Bye bye, everybody.