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Music: Music (In).

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KT: Good morning, Suze.

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Suze: Good morning KT. It is May 25th 2023. Welcome everybody

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Suze: to the Women and Money podcast as well as everybody

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Suze: smart enough to listen.

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Suze: This is the KT and Suze ask us anything.

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KT: How did you sleep last night?

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Suze: Why are you asking me that? 

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KT: You said ask us anything. How did you sleep last night?

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Suze: Well, you tell me, how did I sleep?

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KT: She slept pretty good.

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Suze: So, since we're at, ask me anything part already, how

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Suze: has it been with your family?

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KT: We had the best gathering and little reunion. It was

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KT: so much fun because it was just a tiny gathering

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KT: of Barbara and Don and Travis and Sophia. Suze and

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KT: I got to really spend quality time with Travis and

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KT: Sophia and catching up and learning all about their young

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KT: lives and careers. But for me,

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KT: I went fly fishing with my nephew. He gave me

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KT: a great lesson...

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Suze: Let's post pictures of that.

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KT: I caught my first Bonefish. So those of you that

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KT: are not big fishing fans, you'll love this bonefish, um,

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KT: are very hard to catch. They're very small. They're maybe

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KT: about 12 to 18 inches and they're skinny and silvery,

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KT: but they move like lightning. And if you catch one,

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KT: it's quite a thrill

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KT: to bring it in. And as soon as you bring

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KT: it in, you release it.

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Suze: But she did it, on a fly fish rod, which is very, very,

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Suze: very difficult then a spinning rod. But I'll post pictures.

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KT: She'll just, just one, just one of me and Travis

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KT: holding the fish.

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Suze: Oh, this is her little golden boy that she loves.

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KT: Ok. Everybody. Are you ready for your first question, Suze?

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Suze: Well, wait, I want to say something before we begin,

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Suze: which is

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Suze: obviously the debt ceiling, KT is on everybody's mind.

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Suze: And yesterday I listened to McCarthy give a little recap

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Suze: of the negotiation. So we'll see what happens. I don't know.

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Suze: It kind of sounds like they're going to solve this somehow.

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Suze: But let's just hope so, but we will keep you informed.

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Suze: All right, Miss Travis, what is your first question?

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KT: OK, I also want to say that it was my sister

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KT: Barbara's birthday

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KT: and we had the best birthday ever. This is the

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KT: family where we make things.

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Suze: It was so much fun.

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Suze: So I'll post a photo of what we made. So

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Suze: I'll post you the present that we made her Barbara. Right.

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Suze: Let's get to this ready.

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KT: Suze Orman. I just have to share this with you.

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KT: I am in the car a lot with my kids.

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KT: And that is when I listen to your podcast. I

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KT: figure at worse, they may learn something. But I never

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KT: really know if my kids are listening

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KT: this time. I was listening to the podcast and my

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KT: question came on, I sat quietly in the front seat

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KT: and continued listening. Then all of a sudden from the

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KT: back seat, my nine year old yells, hey mom, was

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KT: that you talking about us? So, Suze, they are listening.

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Suze: Now, why did you choose that?

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KT: I just wanted to share with everyone some fun, you know,

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KT: stories that we get in. This isn't a question. It

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KT: was just a mom

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KT: wanting to let Suze know that maybe her great advice

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KT: will sink in one day.

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Suze: But what's interesting for me, KT about that one is

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Suze: kids at all ages. They really listen and they do

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Suze: what you do. So you may not think that you're

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Suze: talking about money with them,

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Suze: when you're talking about money in front of them or

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Suze: whatever you may be doing, but they are taking it in.

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Suze: And that is an example of that because that little

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Suze: nine year old knew mommy's situation that I was answering. Now,

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Suze: how did he know that?

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Suze: Because obviously he's heard mommy talk about it anyway. Go on.

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KT: Ok. Next one is a question, Suze. I'm planning on

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KT: buying one month or two month treasury bills tomorrow since

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KT: they're paying way over 5% right now. And it's only

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KT: for a month or two. Suze, do you think they'll

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KT: be safe? Is this a good idea?

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Suze: Here's the thing. That's interesting. KT is that many, many

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Suze: people have been writing it in this exact same question

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Suze: and they've been posting it on the Suze wall. Remember

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Suze: everybody there is a women and money app. You simply

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Suze: download it by going to Google Play or Apple Apps

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Suze: and look for Women and Money and free obviously. And

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Suze: on the Suzie Wall where we keep you updated to

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Suze: all kinds of things, people have been posting this question

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Suze: and I see replies going, yeah, I'd like to know

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Suze: the answer to that. What have I said to all

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Suze: of you right now? Just wait and let's see what

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Suze: happens if I was going to be buying anything, I

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Suze: would absolutely lock in

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Suze: the 18 month certificate of deposit at 5.15% with Alliant

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Suze: Credit Union. In fact, remember when we introduced the three

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Suze: month and the six month certificate of deposit. Well, our

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Suze: certificates of deposits are coming due in June. You know,

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Suze: it's like, what should we do with that? And I

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Suze: sent in and I said, let's re-up for the 18

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Suze: month certificate of deposit.

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Suze: But I would just wait a little bit to see

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Suze: what happens here because the truth of the matter is

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Suze: if we do default, it is possible, interest rates are

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Suze: going to skyrocket if we don't default. I think they're

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Suze: gonna stay right approximately around here

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Suze: and possibly who knows, go down, go up whatever it

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Suze: may be. But that's when you might be looking for

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Suze: longer term than one or two months next KT. Ok.

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KT: Hi, Susie and KT. We are currently trying to figure

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KT: out a memory care facility for my 83 year old

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KT: mother-in-law after my father-in-law passed away a few weeks ago, Suze,

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KT: my mother-in-law now receives her husband's social security check.

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KT: She has laddered CDs investment accounts, traditional Iras and a

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KT: house that she shared with the love of her life

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KT: for over 60 years. I know makes you sad. My

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KT: question is, what is the smartest way to draw down

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KT: from these assets to pay for her rent

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KT: at a memory care facility which is about 12,000... $12,000

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KT: a month. The house was originally bought for $27,000. It

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KT: is now well worth over half a million dollars.

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Suze: So here's, here's what you need to understand, which is

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Suze: the very first thing that you should do is absolutely

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Suze: sell the house.

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Suze: Why should you sell the house? Because you have a

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Suze: tremendous capital gain, you say in this email, it's now

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Suze: worth over $500,000. You bought it for 27,000 or your

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Suze: parents bought it for 27,000. So that's like a $480,000

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Suze: capital gain.

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Suze: However, because your parents lived in it as their primary

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Suze: residency for two out of the past five years, your

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Suze: mother obviously gets a $250,000 exemption.

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Suze: Now, her husband has died. But guess what if she

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Suze: sells it now, he will also get that $250,000 exemption

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Suze: even though he has died. Yeah. So if you sell

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Suze: it now, she's not gonna have to pay anything in

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Suze: capital gains tax and that happens to be a big deal. However,

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Suze: I also just want to remind you of this

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Suze: if you have less than $44,000 a year of income

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Suze: and you have a long term capital gain, you pay 0%

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Suze: tax on it anyway. So that may be true with

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Suze: a lot of her stocks and things like that that

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Suze: she may have, but just know on the house, sell

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Suze: it now. Next KT.

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KT: Next questions from Jason.

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KT: Hi, Suze and KT. Hopefully an easy and quick question.

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KT: That's my man, Jason. My husband and I got married

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KT: less than a month ago. We're trying to figure out

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KT: what to do with our W4s. Should we be married

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KT: and filing separately or jointly? We own a house together combined.

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KT: We make just shy of $200,000

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KT: per year and we live in Florida. So there you go, Suze.

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KT: What should Jason do?

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Suze: I want every single one of you who are married

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Suze: to listen to this. Because I have said it over

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Suze: and over again.

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Suze: You do not want to file married fine separately. If

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Suze: you do and make over $10,000 a year, you won't

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Suze: be able to have an IRA, a ROTH IRA There

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Suze: are many things you will not be able to do.

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Suze: So unless you see a certified public accountant and you

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Suze: figure all of this out and how much it might

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Suze: save you, if you did file married fine separately, you

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Suze: are to file married fine jointly. And that's how you

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Suze: should do it for many, many reasons. Next KT.

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KT: OK, this is from Scott. Suze and KT, I may have mentioned

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KT: before that my mother, a 70 year old widow has

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KT: all of her assets, including her home, set up in

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KT: TODs to my sisters and I, since long term care insurance

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KT: will be so expensive. Should we convince her to move

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KT: most of her assets into a trust?

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KT: How do we convince her if it is the best option?

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Suze: First of all, everybody, you need to know T O

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Suze: D means transfer on death, which means that upon death,

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Suze: she has already designated where she wants the assets to go.

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Suze: Therefore, they are to go to Scott as well as

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Suze: his sisters. So because she has designated the beneficiaries and

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Suze: this would be true on a life insurance policy or

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Suze: an IRA or retirement account. Whenever you literally designate a beneficiary,

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Suze: it automatically bypasses probate.

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Suze: So, probate here is not going to be mama's problem

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Suze: at all or really, Scott and the sister's problem. Next,

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Suze: Scott says since long term care insurance will be so expensive.

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Suze: Should we convince her to move most of her assets

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Suze: into a trust? One has nothing to do with the other?

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Suze: The trust is not going to protect your mama

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Suze: from having to pay if she needs to go into

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Suze: a facility of any kind later on. All right. So

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Suze: just know that if you want long term care will

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Suze: help pay for those expenses, putting her money and trust

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Suze: again is not going to have her avoid that.

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Suze: So that's something that you should know. So when you say,

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Suze: how do we convince her what the best option is,

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Suze: is that you first have to know what the best

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Suze: option is and mommy, whether you know it or not

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Suze: did fabulous setting everything up as a T O D account.

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Suze: Here is the problem and the right reason if you

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Suze: should convince her to put everything in a revocable trust,

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Suze: everything is fine right now because mommy is fine. All

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Suze: of a sudden, mommy becomes incapacitated. Mommy falls and has

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Suze: a stroke or whatever it may be,

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Suze: who's going to pay her bills for her,

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Suze: who's going to take care of her money. For her,

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Suze: a transfer on death account only takes care of business

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Suze: after her death. Your question that has to be answered

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Suze: is who's going to take care of her business while

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Suze: she's still alive but not able to take care of

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Suze: her business. That's where a revocable trust that's set up

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Suze: while she is alive. When she transfers all of her

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Suze: assets into it

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Suze: will then simply designate a successor trustee.

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Suze: So when you set up a revocable trust, your mama

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Suze: would be the trustor, the person who sets it up,

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Suze: she would also be the trustee and she would make

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Suze: all decisions on it while she was alive. It would

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Suze: be held for her benefit while she's alive and your

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Suze: benefit and your sister's benefit on her death while she

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Suze: is the trustee,

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Suze: like I said, she makes all the decisions. Now all

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Suze: of a sudden she can't make decisions, she's become sick, whatever,

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Suze: then somebody that's named already in the trust will step

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Suze: in as the successor trustee

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Suze: and make all the decisions with the money. That is

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Suze: the reason you really want a trust. So that is

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Suze: what you need to explain to your mom.

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KT: You know, Suze, it's funny and a lot of emails

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KT: we get are from,

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KT: you know, adult kids that are now in that position

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KT: to take care of their, their parents or their single parent.

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KT: And going back to that question about the family that

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KT: has to put the mom in a memory care center.

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KT: I want to ask. I'm a little confused. I never

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KT: heard that question or the answer that you're allowed to

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KT: deduct

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KT: money for the sale of your home, for your husband

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KT: who's passed. Like, how long is that good for?

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Suze: Two years, KT. So, for instance, the two of us own

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Suze: a property in joint tenancy. Each one of us gets

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Suze: a $250,000 exemption

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Suze: when we go to sell it. So if we bought

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Suze: the house for $24,000 as they did in that example,

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Suze: they lived in that house for two out of the

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Suze: past five years as their primary residency, which they did. Ok,

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00:16:07,799 --> 00:16:08,229
Suze: then

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00:16:08,330 --> 00:16:12,619
Suze: we would be able to sell that house for at

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Suze: least $500,000 without having to pay one penny of capital

249
00:16:18,130 --> 00:16:23,890
Suze: gains tax because we each got a $250,000 exemption. You die.

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00:16:24,330 --> 00:16:26,539
Suze: I'm always killing you off.

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Suze: Please don't do that. Please don't do that. But you die, KT.

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Suze: And within two years of your death,

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00:16:35,869 --> 00:16:38,880
Suze: then I go to sell that home.

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00:16:39,530 --> 00:16:43,729
Suze: Now, all $500,000 gets to be written off still because

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00:16:43,739 --> 00:16:49,500
Suze: I still get to take my $250,000 exemption and your

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00:16:49,510 --> 00:16:55,179
Suze: $250,000 exemption right now, obviously, just so, you know, upon

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00:16:55,190 --> 00:16:59,289
Suze: your death, I would get a step up in basis

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00:16:59,390 --> 00:17:02,500
Suze: on that house because this is actually important for all

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00:17:02,510 --> 00:17:05,599
Suze: of you to know. So if the house is worth

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00:17:05,609 --> 00:17:08,478
Suze: $500,000

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00:17:08,920 --> 00:17:11,169
Suze: upon KT's death.

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00:17:12,050 --> 00:17:15,979
Suze: All right, I keep my cost basis in the house,

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00:17:15,989 --> 00:17:20,050
Suze: which would be half of the $24,000 that we bought

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Suze: it at. So my cost basis is 12,000. But now

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00:17:24,510 --> 00:17:27,920
Suze: I get a step up in basis on KT's half

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00:17:27,930 --> 00:17:33,199
Suze: to $250,000 which is half the value of what it's

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00:17:33,209 --> 00:17:39,680
Suze: currently worth. So that means my cost basis is $262,000.

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Suze: If I wanted to. And let's say all of a

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Suze: sudden real estate skyrocketed, I'd be able to sell that

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00:17:46,750 --> 00:17:51,280
Suze: house within two years of your death for $762,000 and

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00:17:51,290 --> 00:17:55,290
Suze: not pay any income tax on it what so ever.

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KT: How come the realtors don't ever really explain that?

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00:17:58,660 --> 00:18:01,770
Suze: Oh, no, many of them do, KT, we've just never

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00:18:01,780 --> 00:18:04,949
Suze: bought and sold houses like that or died yet.

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KT: All right. Next question, Suze. If I'm a long term

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KT: investor and I'm taking income from my retirement accounts, would

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KT: it make sense to take profits from a mutual fund

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00:18:19,310 --> 00:18:23,520
KT: that is up? And if you were my financial advisor

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KT: and I ask you that question, how would you reply

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KT: the reason is listen to this? She said, I'm wondering

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KT: because I was shocked at how my financial advisor replied

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KT: to me. Suze, thank you for taking the time to

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KT: read and hopefully answer this question. Then the, then, then

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KT: we go on to say, wishing you and KT a

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KT: great holiday weekend.

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Suze: Yeah baby. So, here's the thing about questions when you write them,

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Suze: there are so many things that go into answering a

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00:18:59,839 --> 00:19:03,829
Suze: question as to whether or not you should sell this

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00:19:03,839 --> 00:19:08,510
Suze: mutual fund just because it's up or not because I

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00:19:08,520 --> 00:19:12,589
Suze: don't know, the type of mutual fund you have, maybe

291
00:19:12,599 --> 00:19:15,280
Suze: you have a mutual fund that's known as a B

292
00:19:15,290 --> 00:19:18,569
Suze: share fund and that if you were to get out

293
00:19:18,579 --> 00:19:22,010
Suze: of that fund or sell it before the surrender charge

294
00:19:22,020 --> 00:19:22,810
Suze: is up,

295
00:19:23,619 --> 00:19:26,889
Suze: then you possibly could get rid of all the gains

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00:19:26,900 --> 00:19:31,129
Suze: that would be on that mutual fund. So again, I

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00:19:31,140 --> 00:19:35,760
Suze: will do a podcast on A shares, B shares and

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Suze: C share mutual funds. So I don't know what kind

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00:19:39,819 --> 00:19:44,599
Suze: of mutual fund that you have. And so that would

300
00:19:44,609 --> 00:19:48,869
Suze: go into it also. I don't know the type of

301
00:19:48,880 --> 00:19:50,650
Suze: mutual fund that you have.

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00:19:51,540 --> 00:19:53,859
KT: Ok. So here's what we're gonna do. This is a

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00:19:53,869 --> 00:19:58,849
KT: to be continued question and answer. So let's put this

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00:19:58,859 --> 00:20:03,198
KT: in the next round next Thursday. I'm gonna ask the

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00:20:03,209 --> 00:20:06,439
KT: question again, but we need to get more information.

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Suze: All right, Sosweet05...

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00:20:10,150 --> 00:20:13,448
KT: This is from the wall, the wall right in and

308
00:20:13,459 --> 00:20:17,129
KT: let us know answer more of Suze's questions and then

309
00:20:17,140 --> 00:20:20,609
KT: we'll get that down next. This is from

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00:20:22,310 --> 00:20:26,760
KT: Claudia. She said, dear Suze and my sweet KT...

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00:20:26,770 --> 00:20:33,719
Suze: Wait, KT. So hundreds of you wrote in on the wall,

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00:20:33,729 --> 00:20:37,270
Suze: thousands of you wrote in on the email at Suze

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Suze: podcast at gmail dot com.

314
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Suze: And everyone said, how much they loved you, how sweet

315
00:20:45,369 --> 00:20:49,329
Suze: you are, how much joy you bring to the podcast.

316
00:20:49,339 --> 00:20:54,180
Suze: But they also said, KT, they really love their Suze School,

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00:20:54,189 --> 00:20:56,599
Suze: even though they know for the next few weeks they're

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00:20:56,609 --> 00:20:59,750
Suze: not gonna have Suze School because Robert is going to

319
00:20:59,760 --> 00:21:00,489
Suze: see that... Deadheads or whatever.

320
00:21:01,170 --> 00:21:01,640
KT: The Grateful Dead.

321
00:21:02,849 --> 00:21:06,849
Suze: No, they've got a new name now. No, they're not

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00:21:06,859 --> 00:21:09,349
Suze: the Dead. They forgot what they are. He told me

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00:21:09,359 --> 00:21:11,879
Suze: what they were but I forget. Right. The Dead..., I

324
00:21:11,890 --> 00:21:15,839
Suze: don't know. And I don't care. Right. But anyway, so

325
00:21:15,849 --> 00:21:18,438
Suze: I just want you to know they all refer to...

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KT: As sweet KT,  but no one wants me to feel bad

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00:21:22,989 --> 00:21:27,119
Suze: Because you are sweet. But in all of those responses,

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00:21:27,130 --> 00:21:30,810
Suze: I'm the one now who feels bad. Not one? Not

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00:21:30,819 --> 00:21:34,409
Suze: one of the thousands said that I was sweet or

330
00:21:34,420 --> 00:21:36,989
Suze: that I was nice or all that. You know, all

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Suze: you do is learn from me but it's not as

332
00:21:39,420 --> 00:21:42,199
Suze: if they think I'm sweet. Tell them KT.

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00:21:44,689 --> 00:21:48,959
KT: Well. there's some truth to their assumption. Suze's a slap down

334
00:21:48,969 --> 00:21:52,319
KT: kind of gal. But not, no, not to me. She's

335
00:21:52,329 --> 00:21:54,920
KT: absolutely loving, sweet caring,

336
00:21:55,869 --> 00:21:58,829
KT: but still I get my slap to share. Slap down.

337
00:21:59,199 --> 00:22:01,579
KT: All right, let me do this. This is a great question...

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Suze: Did you all notice how she skipped over that

339
00:22:03,530 --> 00:22:07,979
KT: I did... Dear Suze and Sweet KT, is putting a freeze

340
00:22:07,989 --> 00:22:13,099
KT: on your Equifax Transunion and experience the same as locking

341
00:22:13,109 --> 00:22:16,619
KT: down your credit. Right. So Claudia, yes, it is. I

342
00:22:16,630 --> 00:22:19,979
KT: can answer that one without Suze school.

343
00:22:20,780 --> 00:22:26,439
KT: All right. So next question. Hello. My name is Erin.

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00:22:26,599 --> 00:22:30,250
KT: I have a question and concern regarding my father's lack

345
00:22:30,260 --> 00:22:35,810
KT: of legal documentation for his estate. See what I mean, Suze,

346
00:22:35,819 --> 00:22:41,329
KT: we're getting all these adult kids concerned about their parents. Wow,

347
00:22:42,280 --> 00:22:45,319
KT: he is in very fragile health. So my sense of

348
00:22:45,329 --> 00:22:49,400
KT: urgency has increased in recent months. He is married to

349
00:22:49,410 --> 00:22:53,550
KT: a second wife who is also not in great health.

350
00:22:53,560 --> 00:22:57,639
KT: The only document he has is a will I foresee

351
00:22:57,650 --> 00:23:03,329
KT: two scenarios neither are favorable for my two siblings and myself.

352
00:23:03,339 --> 00:23:08,139
KT: Scenario one is his wife survives him. She gets everything.

353
00:23:08,359 --> 00:23:12,609
KT: I'm... I'm concerned that she'll sell the house, leave town

354
00:23:12,619 --> 00:23:16,930
KT: and take everything with her. Scenario two is that he

355
00:23:16,939 --> 00:23:21,790
KT: survives her, but his estate will go to probate. He

356
00:23:21,800 --> 00:23:25,198
KT: still has a hefty mortgage on his home. And if

357
00:23:25,209 --> 00:23:30,170
KT: all his assets are inaccessible throughout the probate process, my

358
00:23:30,180 --> 00:23:34,639
KT: siblings and I will be responsible for covering his expenses.

359
00:23:34,839 --> 00:23:38,229
KT: I would be so grateful Suze to hear your input.

360
00:23:38,619 --> 00:23:41,709
KT: First of all, Suze is Erin correct on the second

361
00:23:41,719 --> 00:23:43,629
KT: part about her dad?

362
00:23:43,920 --> 00:23:47,469
Suze: Uh possibly it just depends what else he has. I

363
00:23:47,479 --> 00:23:50,479
Suze: don't know. Does he have any other assets, like where

364
00:23:50,489 --> 00:23:52,709
Suze: he set it up as transfer on death or pay

365
00:23:52,719 --> 00:23:56,800
Suze: on death to take care of that? We don't know, Erin,

366
00:23:56,810 --> 00:23:59,629
Suze: the first thing I want to say to you, is

367
00:24:00,099 --> 00:24:00,688
Suze: that

368
00:24:01,339 --> 00:24:05,969
Suze: what bothers me a little bit, tiny, tiny bit about

369
00:24:05,979 --> 00:24:10,629
Suze: this email is you're concerned more for the money and

370
00:24:10,640 --> 00:24:16,130
Suze: you and your siblings than possibly what your dad really

371
00:24:16,140 --> 00:24:18,188
Suze: wants to do with this money.

372
00:24:18,910 --> 00:24:22,709
Suze: So I think you now are old enough to sit

373
00:24:22,719 --> 00:24:26,319
Suze: down with him and his current wife

374
00:24:26,959 --> 00:24:30,969
Suze: and rather than pitching them and pitching her against you

375
00:24:30,979 --> 00:24:33,670
Suze: and upon his death, she's gonna take all of this

376
00:24:33,680 --> 00:24:37,899
Suze: money and sell it and run away. What is that about?

377
00:24:38,140 --> 00:24:42,410
Suze: So the only way to really, really deal with this

378
00:24:42,420 --> 00:24:46,790
Suze: is to make finances of family a fair and not

379
00:24:46,800 --> 00:24:52,129
Suze: to let money get in between the love that hopefully

380
00:24:52,140 --> 00:24:55,310
Suze: you and your siblings have for your dad.

381
00:24:55,560 --> 00:24:58,890
Suze: And I would like to think for his wife. Now,

382
00:24:58,900 --> 00:25:03,560
Suze: maybe there are reasons why you don't like her or

383
00:25:03,569 --> 00:25:08,329
Suze: things have happened. However, I think it is important that

384
00:25:08,339 --> 00:25:11,449
Suze: if you can't talk with all of them together

385
00:25:11,839 --> 00:25:14,770
Suze: and just talk to your father and say dad here

386
00:25:14,780 --> 00:25:19,089
Suze: are my concerns. Is this what you really want. If

387
00:25:19,099 --> 00:25:21,958
Suze: you were to die and everything goes to your wife,

388
00:25:21,969 --> 00:25:24,930
Suze: is it all right with you? Then if she just

389
00:25:24,939 --> 00:25:28,510
Suze: doesn't leave any of that to us. Is that what

390
00:25:28,520 --> 00:25:33,150
Suze: you want? And if he says yes, sweetheart, there is

391
00:25:33,160 --> 00:25:36,810
Suze: not a whole lot you can do about it. If

392
00:25:36,819 --> 00:25:40,290
Suze: in fact, he outlives her,

393
00:25:40,839 --> 00:25:45,280
Suze: you have a different concern than if he dies. All

394
00:25:45,290 --> 00:25:48,099
Suze: his assets then are gonna have to go through probate.

395
00:25:48,160 --> 00:25:53,180
Suze: Your concern is then if he gets sick, if he

396
00:25:53,189 --> 00:25:57,010
Suze: needs care, how are you going to be able to

397
00:25:57,020 --> 00:26:00,969
Suze: take care of him? Because his will isn't going to

398
00:26:00,979 --> 00:26:04,709
Suze: help you? A will is simply a document that says

399
00:26:04,719 --> 00:26:08,290
Suze: where the assets are to go upon his death.

400
00:26:09,099 --> 00:26:12,839
Suze: So you need to sit down with him and have

401
00:26:12,849 --> 00:26:14,930
Suze: a talk just like I said a little bit ago.

402
00:26:14,939 --> 00:26:17,430
Suze: And one of the answers that I gave, why a

403
00:26:17,439 --> 00:26:22,349
Suze: revocable trust is an essential part of what I believe

404
00:26:22,359 --> 00:26:26,349
Suze: are the must have documents that every single one of

405
00:26:26,359 --> 00:26:28,410
Suze: you should have. If you're

406
00:26:28,474 --> 00:26:33,063
Suze: interested in them, go to the Women and Money app,

407
00:26:33,084 --> 00:26:37,024
Suze: go to Suze's shop and you'll see where I have

408
00:26:37,035 --> 00:26:41,104
Suze: the must have documents learn about them and maybe you

409
00:26:41,114 --> 00:26:45,885
Suze: want to partake in them via that program that is

410
00:26:45,895 --> 00:26:47,795
Suze: offered there. All right.

411
00:26:48,275 --> 00:26:52,875
KT: Ok, Suze, one more question again on beneficiaries and trust

412
00:26:52,885 --> 00:26:53,704
KT: and wills.

413
00:26:53,989 --> 00:26:58,129
KT: Hello ladies, this is from Donna. Hello ladies. I was

414
00:26:58,140 --> 00:27:02,479
KT: once told that depending upon how you name your beneficiaries,

415
00:27:02,579 --> 00:27:06,679
KT: meaning individual names versus a trust or will this could

416
00:27:06,689 --> 00:27:11,150
KT: affect how the beneficiaries receive their money. An example I

417
00:27:11,160 --> 00:27:13,859
KT: was given is that one way they will all have

418
00:27:13,869 --> 00:27:16,619
KT: to take the money in the same way and in

419
00:27:16,630 --> 00:27:18,979
KT: another way they can take it differently.

420
00:27:19,280 --> 00:27:24,130
KT: My question is, how should beneficiaries be set up for

421
00:27:24,140 --> 00:27:30,339
KT: all the different types of accounts? Roth, traditional IRAs 401ks,

422
00:27:30,380 --> 00:27:34,729
KT: brokerage accounts, savings checkings, et cetera, et cetera. So Donna

423
00:27:34,739 --> 00:27:38,489
KT: needs to know Suzie how to set that all up.

424
00:27:38,500 --> 00:27:42,180
Suze: So Donna truthfully, it doesn't matter if it's a will

425
00:27:42,189 --> 00:27:44,550
Suze: or a trust, truthfully

426
00:27:44,829 --> 00:27:48,359
Suze: because when they receive the assets that you are leaving

427
00:27:48,369 --> 00:27:51,599
Suze: for them outside of a retirement account,

428
00:27:52,930 --> 00:27:56,310
Suze: usually they get a lump sum of money and they

429
00:27:56,319 --> 00:27:59,060
Suze: get to use it any way they want. If you

430
00:27:59,069 --> 00:28:04,589
Suze: have certain children that are beneficiaries that aren't quite responsible

431
00:28:04,599 --> 00:28:07,448
Suze: and you don't want them to get their percentage till x-date or whatever it is. Then you most likely need a revocable trust to do so. But there is no benefit whether it's a trust or will as to how

432
00:28:19,930 --> 00:28:27,209
Suze: beneficiaries have to take their money. However, for retirement accounts

433
00:28:27,219 --> 00:28:30,859
Suze: that are dictated by the names that you have left

434
00:28:30,869 --> 00:28:37,550
Suze: as beneficiaries and remember when you have a named beneficiary,

435
00:28:38,130 --> 00:28:42,989
Suze: it overrules the wishes of your trust or will just so,

436
00:28:43,000 --> 00:28:46,540
Suze: you know, when it comes to retirement accounts,

437
00:28:46,969 --> 00:28:52,969
Suze: remember you are the owner of that retirement account, you

438
00:28:52,979 --> 00:28:59,420
Suze: now have put beneficiaries names as beneficiaries on that retirement

439
00:28:59,430 --> 00:28:59,920
Suze: account

440
00:29:00,540 --> 00:29:04,400
Suze: upon your death, that money then will be divided and

441
00:29:04,410 --> 00:29:11,449
Suze: go into individual inherited retirement accounts and depending on how

442
00:29:11,459 --> 00:29:14,719
Suze: old you are, when this happens, did you already start

443
00:29:14,729 --> 00:29:16,790
Suze: requiring minimum distributions or what,

444
00:29:16,859 --> 00:29:21,449
Suze: whatever that will dictate how much each one of your

445
00:29:21,459 --> 00:29:27,469
Suze: beneficiaries will have to take out of that inherited retirement account.

446
00:29:27,689 --> 00:29:31,140
Suze: In most cases, they will have at least 10 years

447
00:29:31,150 --> 00:29:35,500
Suze: to wipe it clean. But hopefully they won't wait till

448
00:29:35,510 --> 00:29:38,459
Suze: the 10th year to wipe it clean because then they

449
00:29:38,469 --> 00:29:42,310
Suze: would be taxed if it's a traditional retirement account all

450
00:29:42,390 --> 00:29:45,089
Suze: at one time. So

451
00:29:45,410 --> 00:29:47,859
Suze: I know that was a little bit long there. But

452
00:29:47,869 --> 00:29:50,869
Suze: that is the answer to your question. But KT, I

453
00:29:50,880 --> 00:29:51,979
Suze: want to say something

454
00:29:52,660 --> 00:29:56,949
Suze: because I've been thinking this going back to everybody writing

455
00:29:56,959 --> 00:29:59,449
Suze: as to why they want Suze's school

456
00:30:00,300 --> 00:30:03,319
Suze: and that a lot of times we joke around too

457
00:30:03,329 --> 00:30:07,130
Suze: much or whatever it may be on the Thursday podcast.

458
00:30:07,550 --> 00:30:13,079
Suze: If you listen to today's podcast via questions and answers,

459
00:30:13,780 --> 00:30:19,020
Suze: you will have learned tremendous things, vital things that you

460
00:30:19,030 --> 00:30:23,369
Suze: need to know whether it's the $250,000 exemption that you

461
00:30:23,380 --> 00:30:26,599
Suze: get on a deceased spouse for a piece of real estate.

462
00:30:26,609 --> 00:30:32,329
Suze: Why you would want a revocable trust, whatever it may be. So,

463
00:30:32,339 --> 00:30:32,839
Suze: don't

464
00:30:32,910 --> 00:30:37,750
Suze: put down the Thursdays, Ask KT and Suze Anything as

465
00:30:37,760 --> 00:30:41,199
Suze: it's just trivial. It's light, it's not a deep dive.

466
00:30:41,209 --> 00:30:44,479
Suze: Doesn't have to be a deep dive for it to

467
00:30:44,489 --> 00:30:48,300
Suze: literally be vital and change your life. KT it is

468
00:30:48,310 --> 00:30:49,560
Suze: quizzie time, my friend.

469
00:30:49,569 --> 00:30:52,119
KT: Maybe we should call the podcast, Did you know,

470
00:30:54,310 --> 00:30:55,729
KT: Instead of Ask Suze.

471
00:30:55,869 --> 00:30:58,050
Suze: Did you know, did you, did you know?

472
00:30:58,219 --> 00:31:01,089
KT: All right, here's my quizzie coming up everybody.

473
00:31:03,439 --> 00:31:06,050
Suze: It's quizzie time. And what that means for those of

474
00:31:06,060 --> 00:31:09,030
Suze: you who are new to the podcast is that I

475
00:31:09,040 --> 00:31:11,489
Suze: ask KT a question,

476
00:31:12,020 --> 00:31:15,089
Suze: but really, I'm asking all of you as well. So

477
00:31:15,099 --> 00:31:19,520
Suze: KT do not answer right away. All right, because it

478
00:31:19,530 --> 00:31:24,089
Suze: is important that you know how to answer these questions

479
00:31:24,219 --> 00:31:27,209
Suze: because you never know when they might be a question

480
00:31:27,219 --> 00:31:29,530
Suze: that you need the answer to and wouldn't it

481
00:31:29,625 --> 00:31:33,994
Suze: be great. If you could answer it yourself. Hello, Suze, KT.

482
00:31:34,685 --> 00:31:40,824
Suze: Which should I max out first? My Roth 401k or

483
00:31:40,834 --> 00:31:47,324
Suze: my Roth IRA Thank you, Tracy. KT, you think about it?

484
00:31:47,564 --> 00:31:50,094
Suze: Everybody else think about it.

485
00:31:50,500 --> 00:31:55,989
Suze: A Roth 401k is an employer sponsored retirement account wherever

486
00:31:56,000 --> 00:32:00,010
Suze: it is that Tracy may work. A Roth IRA is

487
00:32:00,020 --> 00:32:04,989
Suze: an individual retirement account probably at a discount brokerage firm

488
00:32:05,000 --> 00:32:08,560
Suze: or a credit union or someplace like that. And Roth

489
00:32:08,569 --> 00:32:13,189
Suze: means it's been funded with money you have already paid taxes on.

490
00:32:13,849 --> 00:32:14,599
Suze: Which one, KT?

491
00:32:15,189 --> 00:32:16,680
KT: 401k baby!

492
00:32:18,430 --> 00:32:19,979
Suze: Why would you say that?

493
00:32:19,989 --> 00:32:23,550
Suze: Because the Roth 401k, because if my employer is going

494
00:32:23,560 --> 00:32:25,660
Suze: to be able to put in a percentage and you

495
00:32:25,670 --> 00:32:28,270
Suze: put in more, I'm gonna put, I'm gonna put in

496
00:32:28,280 --> 00:32:30,869
Suze: the match and I get more.

497
00:32:30,920 --> 00:32:32,239
Suze: And then what will you do?

498
00:32:33,439 --> 00:32:36,939
KT: I just have more money than in my individual.

499
00:32:37,630 --> 00:32:40,520
Suze: Is that your final answer? Are you positive?

500
00:32:41,359 --> 00:32:43,000
KT: Why wouldn't I want more?

501
00:32:43,709 --> 00:32:46,160
KT: Why wouldn't I want to max out the more?

502
00:32:46,790 --> 00:32:50,500
Suze: So you get both a ding, ding, ding, ding, ding

503
00:32:50,510 --> 00:32:51,000
Suze: and a (wrong answer noise). 

504
00:32:51,010 --> 00:32:53,900
KT: Wait a minute, you keep doing that. Why?

505
00:32:53,910 --> 00:32:55,760
Suze: Because you're partly right.

506
00:32:57,560 --> 00:32:58,699
KT: What's wrong?

507
00:32:59,010 --> 00:33:00,119
Suze: The second part.

508
00:33:00,130 --> 00:33:01,060
KT: Which was what?

509
00:33:01,390 --> 00:33:04,640
Suze: So do you see what I go through again? Everybody

510
00:33:04,650 --> 00:33:07,319
Suze: KT you just be quiet now and listen to the right

511
00:33:07,329 --> 00:33:11,060
Suze: answer because she's gonna try to convince me right. That

512
00:33:11,069 --> 00:33:15,680
Suze: she was right. Totally. Right. So the true answer to

513
00:33:15,689 --> 00:33:21,800
Suze: this question depends on if you have a Roth 401k

514
00:33:21,829 --> 00:33:27,500
Suze: and if your employer matches your contribution, not all do KT.

515
00:33:28,630 --> 00:33:33,619
Suze: So if your employer matches your contribution, meaning you put

516
00:33:33,630 --> 00:33:36,810
Suze: in a dollar, maybe they put in 50 cents or

517
00:33:36,819 --> 00:33:40,030
Suze: whatever it may be, sometimes they'll put in a dollar,

518
00:33:40,130 --> 00:33:45,239
Suze: but usually their match goes up to approximately 6% of

519
00:33:45,250 --> 00:33:49,920
Suze: your base pay. After that, they do not match anymore.

520
00:33:50,510 --> 00:33:55,290
Suze: So the answer is twofold. If you have a Roth

521
00:33:55,300 --> 00:34:00,979
Suze: 401k that matches your contribution, you cannot pass up free money.

522
00:34:01,150 --> 00:34:06,040
Suze: So you would first do the Roth 401k up to

523
00:34:06,050 --> 00:34:07,640
Suze: the point of the match.

524
00:34:08,330 --> 00:34:10,560
Suze: And then if you didn't have a whole lot more

525
00:34:10,570 --> 00:34:15,919
Suze: money after that, you would do a Roth IRA. If

526
00:34:15,929 --> 00:34:20,500
Suze: in fact, you had an employer that did not match,

527
00:34:21,360 --> 00:34:27,770
Suze: then you would absolutely do a Roth Ira first before

528
00:34:27,780 --> 00:34:33,639
Suze: the Roth 401k. If however, you have enough money to

529
00:34:33,649 --> 00:34:39,379
Suze: max out the Roth 401k and the Roth IRA. Now

530
00:34:39,389 --> 00:34:44,250
Suze: we are doing fabulous. Both. Absolutely do both.

531
00:34:45,310 --> 00:34:49,020
KT: And the most important part of that entire quizzie everybody

532
00:34:49,030 --> 00:34:52,699
KT: is that their Roth retirement accounts.

533
00:34:53,408 --> 00:34:56,618
Suze: Yeah, because I will say till the day that I

534
00:34:56,628 --> 00:35:03,058
Suze: am no longer here, the best possible retirement account, regardless

535
00:35:03,069 --> 00:35:06,668
Suze: of your tax bracket, I don't care what it is,

536
00:35:06,829 --> 00:35:11,418
Suze: is a Roth retirement account. Whether it's an IRA if,

537
00:35:11,428 --> 00:35:12,998
Suze: even if you have to do a back door one

538
00:35:13,379 --> 00:35:20,449
Suze: or because 401ks or 403bs TSPs do not have any

539
00:35:20,459 --> 00:35:25,830
Suze: adjusted gross income limitations. Boy, you should be taking advantage

540
00:35:25,840 --> 00:35:28,919
Suze: of that. All right. KT t hat brings us to

541
00:35:28,929 --> 00:35:32,790
Suze: another end of an Ask KT and Suze Anything. But

542
00:35:33,129 --> 00:35:38,189
Suze: before we go, we can't go without paying tribute

543
00:35:38,540 --> 00:35:44,340
Suze: to one of the greatest women of all times. And

544
00:35:44,350 --> 00:35:50,020
Suze: we lost her yesterday. Obviously, Tina Turner. Was she just...

545
00:35:50,030 --> 00:35:50,989
Suze: Oh my God, KT.

546
00:35:51,500 --> 00:35:56,030
KT: I loved when I saw her perform in Vegas. Wow,

547
00:35:56,280 --> 00:36:00,870
KT: those legs that dancing the music. But Suze, let's just say,

548
00:36:01,489 --> 00:36:04,959
KT: let's leave these words with everyone. Suze. What's love got

549
00:36:04,969 --> 00:36:05,979
KT: to do with it.

550
00:36:06,110 --> 00:36:12,299
Suze: Well, the truth is everything. So there's one woman who

551
00:36:12,310 --> 00:36:17,540
Suze: really did take this year's theme song and lived it

552
00:36:17,550 --> 00:36:23,110
Suze: to the fullest and that was Tina Turner. So without

553
00:36:23,120 --> 00:36:26,060
Suze: saying anything else, Tina,

554
00:36:26,620 --> 00:36:31,659
Suze: our theme song today is dedicated to you because you

555
00:36:31,669 --> 00:36:32,979
Suze: were truly what, KT?

556
00:36:36,820 --> 00:36:37,060
KT: Unstoppable!

557
00:36:41,399 --> 00:36:42,459
Music: Music (Out)