1 00:00:28,969 --> 00:00:33,930 Suze: July 31st, can you believe it? July 31st. That means 2 00:00:33,930 --> 00:00:38,299 Suze: tomorrow is what lobster season opens 3 00:00:38,299 --> 00:00:39,740 KT: Lobster season. August 4 00:00:39,740 --> 00:00:40,240 KT: 1st, 5 00:00:40,569 --> 00:00:43,689 Suze: Right in the Bahamas here. But there is one more 6 00:00:43,689 --> 00:00:47,889 Suze: thing that is for everywhere in the United States, and 7 00:00:47,889 --> 00:00:52,559 Suze: that's as of today, that's Suze Special rate. 8 00:00:53,150 --> 00:00:57,270 Suze: For the 12 month certificate at Alliant Credit Union has 9 00:00:57,270 --> 00:01:02,139 Suze: gone away. Didn't I tell you that rates were going 10 00:01:02,139 --> 00:01:05,949 Suze: to go down? So the new rate for the 12 11 00:01:05,949 --> 00:01:14,190 Suze: month certificate is 4.0% APY 4.05% APY for amounts of 12 00:01:14,190 --> 00:01:19,190 Suze: $75,000 or more. But go to myalliant.com and 13 00:01:19,435 --> 00:01:26,014 Suze: check it out. But anyway, July 31st, 2025. Welcome everybody 14 00:01:26,015 --> 00:01:27,345 Suze: to the what KT? 15 00:01:27,346 --> 00:01:30,255 KT: Ask KT and Suze Anything podcast. 16 00:01:30,305 --> 00:01:34,496 Suze: Since when? I want to know, did KT in this 17 00:01:34,496 --> 00:01:36,055 Suze: announcement start 18 00:01:36,055 --> 00:01:36,596 Suze: coming... 19 00:01:36,596 --> 00:01:42,625 KT: Because I'm the one that actually runs this podcast on Thursdays. 20 00:01:42,935 --> 00:01:44,136 KT: Suze School is all yours. 21 00:01:44,136 --> 00:01:45,575 Suze: Run it right into the ground. 22 00:01:45,691 --> 00:01:47,311 Suze: What are you talking about? 23 00:01:47,641 --> 00:01:52,122 KT: I produced this Thursday podcast. I pick the questions. I 24 00:01:52,122 --> 00:01:55,952 KT: read them. I decide which ones are better than others. 25 00:01:56,281 --> 00:02:02,041 KT: It's my podcast on Thursday. Ask KT and Suze Anything, 26 00:02:02,281 --> 00:02:04,272 KT: and KT will ask Suze what she said. 27 00:02:04,882 --> 00:02:07,632 Suze: All right, sorry, I even brought this up. KT, what do you have for us? 28 00:02:08,522 --> 00:02:11,962 KT: OK, my first question's really great. It's from Stacy. 29 00:02:12,410 --> 00:02:15,119 KT: And it's a dilemma that she's in, and I, I'm, 30 00:02:15,330 --> 00:02:19,330 KT: I'm curious to see what your answer will be. She said, Hi, Suze, 31 00:02:19,610 --> 00:02:22,809 KT: I need your help with what to do. I am 32 00:02:22,809 --> 00:02:25,529 KT: one out of four girls in our family. My sisters 33 00:02:25,529 --> 00:02:30,020 KT: are all married and have their own homes. In 2022, 34 00:02:30,130 --> 00:02:32,609 KT: I moved back home with Mom in the house I 35 00:02:32,610 --> 00:02:35,809 KT: grew up in. She is 88 and my sisters felt it 36 00:02:35,945 --> 00:02:39,375 KT: best for Mom that I lived there since I'm not 37 00:02:39,375 --> 00:02:43,413 KT: married and I have more flexibility to help Mom. We cook, 38 00:02:43,494 --> 00:02:47,294 KT: we clean, we garden together. I appreciate every day the 39 00:02:47,294 --> 00:02:51,335 KT: Lord gives me with my mom. She's relatively healthy, but 40 00:02:51,335 --> 00:02:53,735 KT: at times her memory gets the best of her. 41 00:02:54,240 --> 00:02:56,889 KT: And then this is the part that she needs your help. 42 00:02:57,179 --> 00:03:00,699 KT: Mom shared with my siblings of her wish to leave 43 00:03:00,699 --> 00:03:04,460 KT: her home to me. I'm 60 years old, divorced, and 44 00:03:04,460 --> 00:03:06,500 KT: I do not own any properties. 45 00:03:06,788 --> 00:03:09,389 KT: I shared with Mom that I'd like to accept her 46 00:03:09,389 --> 00:03:12,740 KT: generous offer and would like to fix up the cabin 47 00:03:12,740 --> 00:03:16,460 KT: now and bring all the family together, but I feel 48 00:03:16,460 --> 00:03:21,139 KT: reluctant to invest money in fixing it up for fear 49 00:03:21,139 --> 00:03:24,860 KT: one of my sisters feels it's unfair that Mom wants 50 00:03:24,860 --> 00:03:28,619 KT: to give it to me and may cause a problem later. 51 00:03:28,979 --> 00:03:30,940 KT: Later she means after Mom's gone. 52 00:03:31,288 --> 00:03:34,119 KT: Is it unfair for me to accept from Mom should 53 00:03:34,119 --> 00:03:38,000 KT: I offer them some money so there isn't an uncomfortable 54 00:03:38,000 --> 00:03:39,149 KT: wedge between us? 55 00:03:39,320 --> 00:03:41,029 Suze: So Stacy, listen. 56 00:03:42,039 --> 00:03:46,130 Suze: Right now you're spinning. KT knows what that means. Every 57 00:03:46,130 --> 00:03:47,399 Suze: once in a while, what do I do with you? 58 00:03:47,800 --> 00:03:49,649 KT: Stop spinning, KT stop spinning. Stop spinning. 59 00:03:49,649 --> 00:03:53,479 Suze: Because I bring up a topic about something that may 60 00:03:53,479 --> 00:03:55,419 Suze: happen and KT goes, on and on. 61 00:03:55,440 --> 00:03:55,550 KT: I 62 00:03:55,550 --> 00:03:57,960 KT: elaborate. What if, what if, what if, what if. 63 00:03:59,095 --> 00:04:01,884 Suze: Not what if we don't care about what if we 64 00:04:01,884 --> 00:04:06,884 Suze: care about what is, what is the truth. So rather 65 00:04:06,884 --> 00:04:10,794 Suze: than investing money, so you can bring all the family together, 66 00:04:11,205 --> 00:04:14,324 Suze: you need to bring the family together now. 67 00:04:14,910 --> 00:04:19,940 Suze: You need to ask everybody how they feel now, but 68 00:04:19,940 --> 00:04:26,980 Suze: not just in words. If everybody agrees with yes, they 69 00:04:26,980 --> 00:04:30,820 Suze: want you to have the home. Yes, you can have 70 00:04:30,820 --> 00:04:34,969 Suze: the home under whatever conditions it is that it's established. 71 00:04:35,260 --> 00:04:37,368 Suze: You should do a contract. 72 00:04:37,928 --> 00:04:40,799 Suze: Where they all put it in writing because it's one 73 00:04:40,799 --> 00:04:45,690 Suze: thing to say, it's OK, not a big deal. And 74 00:04:45,690 --> 00:04:48,609 Suze: then five years later something happens to Mom and one 75 00:04:48,609 --> 00:04:51,410 Suze: of the sisters have fallen on hard times and now 76 00:04:51,410 --> 00:04:53,359 Suze: she doesn't feel that same way. 77 00:04:54,160 --> 00:04:56,779 Suze: And probably the trust says all of you are to 78 00:04:56,779 --> 00:05:01,820 Suze: get it, so I think what's really important is that 79 00:05:01,820 --> 00:05:06,540 Suze: you really commit everything to writing you find out how 80 00:05:06,540 --> 00:05:09,929 Suze: the sisters feel about it now, and don't be upset 81 00:05:09,928 --> 00:05:13,058 Suze: if one of them doesn't want that to happen because 82 00:05:13,059 --> 00:05:15,779 Suze: you know you may think they're all doing OK, but 83 00:05:15,779 --> 00:05:19,719 Suze: you never know what's really going on behind closed doors, 84 00:05:19,760 --> 00:05:21,299 Suze: all right, just so you know. 85 00:05:21,630 --> 00:05:24,570 Suze: So bring them all together while Mom is still here. 86 00:05:24,850 --> 00:05:28,290 Suze: Discuss it. Ask them if you could buy them out, 87 00:05:28,359 --> 00:05:31,820 Suze: whatever it may be. Maybe you know, you just have 88 00:05:31,820 --> 00:05:35,238 Suze: to think about that. So maybe mom does a quick 89 00:05:35,238 --> 00:05:39,140 Suze: claim deed to you that you wait till Mom actually 90 00:05:39,140 --> 00:05:40,769 Suze: dies to then file. 91 00:05:41,320 --> 00:05:45,230 Suze: It's just important that you get this all right, and 92 00:05:45,230 --> 00:05:48,140 Suze: you might even want to work with an attorney on this, 93 00:05:48,350 --> 00:05:54,058 Suze: believe it or not, just to make sure that it's 100% legal, clear, 94 00:05:54,269 --> 00:05:58,220 Suze: and nobody can dispute it later on. Next question, KT. 95 00:05:58,589 --> 00:06:02,230 KT: OK, next question is from Andrea. 96 00:06:02,670 --> 00:06:05,510 Suze: Was that hard KT? You had a little pause there. 97 00:06:06,829 --> 00:06:11,659 KT: She said, Dear Suze, and of course KT KT, we 98 00:06:11,660 --> 00:06:13,190 KT: know it's your podcast 99 00:06:13,190 --> 00:06:13,380 Suze: Because 100 00:06:13,380 --> 00:06:17,260 Suze: this podcast on Thursdays would not exist without KT. 101 00:06:18,350 --> 00:06:21,380 KT: I have a 403B with Lincoln Financial, and I took 102 00:06:21,380 --> 00:06:25,149 KT: my first RMD this year. Lincoln will only send a 103 00:06:25,149 --> 00:06:28,149 KT: check through the mail. I feel the mail's unreliable, so 104 00:06:28,149 --> 00:06:29,178 KT: I called Lincoln. 105 00:06:29,595 --> 00:06:32,505 KT: Find out if they could electronically send me the money 106 00:06:32,785 --> 00:06:35,475 KT: to my bank account, and they said no, they can't. 107 00:06:35,704 --> 00:06:38,385 KT: So I called the person I deal with at the university. 108 00:06:38,424 --> 00:06:41,144 KT: He spoke to the account manager at Lincoln who then 109 00:06:41,144 --> 00:06:44,295 KT: directed him to send me a form that is titled 110 00:06:44,545 --> 00:06:49,785 KT: Requesting a Distribution. On the form, it clearly says, do 111 00:06:49,785 --> 00:06:54,445 KT: not use this form for automatic RMD withdrawals. I called 112 00:06:54,445 --> 00:06:56,584 KT: Lincoln to question them about the form. 113 00:06:56,869 --> 00:07:00,640 KT: And I'm told not to use the form for RMDs, 114 00:07:00,649 --> 00:07:03,929 KT: and the account manager says to use it. Suze, is 115 00:07:03,928 --> 00:07:08,799 KT: there a difference between requesting a distribution versus an RMD? 116 00:07:09,049 --> 00:07:13,410 Suze: There is because remember your RMDs are going to change 117 00:07:13,410 --> 00:07:17,250 Suze: all the time every year. And so normally when you 118 00:07:17,250 --> 00:07:21,260 Suze: just request a distribution, it's like send me X amount 119 00:07:21,260 --> 00:07:24,369 Suze: of money every single month. That's easy. 120 00:07:24,890 --> 00:07:29,190 Suze: But with an RMD it's based on number one, your 121 00:07:29,190 --> 00:07:34,950 Suze: age and the account value at December 31st of the 122 00:07:34,950 --> 00:07:40,299 Suze: year prior to you taking your RMDs. It becomes very complicated, 123 00:07:40,510 --> 00:07:43,989 Suze: so they are figuring it as time goes on. So 124 00:07:43,989 --> 00:07:47,390 Suze: that's just how they need to do it. Now, you 125 00:07:47,390 --> 00:07:50,309 Suze: might want to call Lincoln and say you are more 126 00:07:50,309 --> 00:07:51,709 Suze: than happy to pay. 127 00:07:51,785 --> 00:07:54,375 Suze: For them to FedEx it to you or when they 128 00:07:54,375 --> 00:07:57,554 Suze: mail it to you, make it certified mail, but I 129 00:07:57,554 --> 00:08:00,575 Suze: think you're fine the way it is, you know, it's 130 00:08:00,575 --> 00:08:03,364 Suze: just if you live in a neighborhood where you're afraid 131 00:08:03,605 --> 00:08:06,484 Suze: that people are going to steal your mail or anything, 132 00:08:06,684 --> 00:08:10,285 Suze: get a post office box or something that somebody can't 133 00:08:10,285 --> 00:08:14,453 Suze: break into, but yeah, there is a difference just so 134 00:08:14,454 --> 00:08:15,165 Suze: you know. 135 00:08:15,779 --> 00:08:18,940 KT: Suze, next question is "to help or not to" 136 00:08:19,540 --> 00:08:21,619 Suze: Don't do it, don't do it, don't help, don't help, don't help. 137 00:08:21,700 --> 00:08:24,179 Suze: If you even have to ask the question, don't do it. 138 00:08:24,579 --> 00:08:25,489 KT: To help or not. 139 00:08:28,609 --> 00:08:32,130 KT: Hello ladies, is it appropriate to speak with a long 140 00:08:32,130 --> 00:08:36,640 KT: time friend about my concerns that she is spending too 141 00:08:36,640 --> 00:08:41,049 KT: much money and racking up debt? And then just to clarify, 142 00:08:41,210 --> 00:08:43,710 KT: she said, no, it's not me, because a lot of 143 00:08:43,710 --> 00:08:46,409 KT: people ask a question about their friend, and it's really them, 144 00:08:46,489 --> 00:08:48,650 KT: but this isn't, this is really her friend. 145 00:08:49,010 --> 00:08:52,270 KT: She said she's in a tremendous amount of debt and 146 00:08:52,270 --> 00:08:56,539 KT: is spending money like crazy. She seems to be thinking 147 00:08:56,539 --> 00:09:00,390 KT: of ways to spend more. She told me her only 148 00:09:00,390 --> 00:09:03,820 KT: child doesn't want her house, things, or money, so she 149 00:09:03,820 --> 00:09:07,978 KT: is going for it. I don't think she has emergency savings, 150 00:09:07,989 --> 00:09:12,750 KT: and I believe her home equity is maxed out by mortgages. 151 00:09:12,950 --> 00:09:17,359 KT: She does have two lifetime income streams, but I 152 00:09:17,474 --> 00:09:21,554 KT: think she's living paycheck to paycheck on those. I'm worried 153 00:09:21,554 --> 00:09:26,224 KT: she'll exhaust her resources and have nothing for her care 154 00:09:26,554 --> 00:09:29,824 KT: if she needs it. According to my friend, her daughter 155 00:09:29,825 --> 00:09:33,875 KT: is indifferent to her spending, likely because the daughter knows 156 00:09:33,875 --> 00:09:35,755 KT: she won't inherit Mom's debt. 157 00:09:36,530 --> 00:09:40,250 KT: Obviously there's a larger story to all of this, but 158 00:09:40,250 --> 00:09:44,929 KT: the simple short question is, is it taboo to broach 159 00:09:44,929 --> 00:09:48,289 KT: the subject, or should I just keep quiet and let 160 00:09:48,289 --> 00:09:52,650 KT: it go? So that's the question Rosa is asking an 161 00:09:52,650 --> 00:09:55,049 KT: important question. Do, do you want to know what I 162 00:09:55,049 --> 00:09:55,770 KT: would do? 163 00:09:55,929 --> 00:09:56,890 Suze: You know, I do. 164 00:09:57,010 --> 00:10:01,049 KT: OK, I absolutely would sit down with my friend, have 165 00:10:01,049 --> 00:10:03,000 KT: a cup of coffee, and say, listen. 166 00:10:03,799 --> 00:10:06,599 KT: Are you OK? You're spending an awful lot of money 167 00:10:06,599 --> 00:10:09,320 KT: and I'm worried about you. You're my friend and I 168 00:10:09,320 --> 00:10:11,929 KT: love you and I want you to be secure forever. 169 00:10:12,239 --> 00:10:14,039 KT: What's up with all this spending? 170 00:10:15,750 --> 00:10:19,210 Suze: And all right, let's role play. All right. Thank you. 171 00:10:19,369 --> 00:10:22,330 Suze: Thanks so much. I'm so appreciative that you care about me, 172 00:10:22,369 --> 00:10:24,760 Suze: but I'm fine. You don't need to worry about me. 173 00:10:26,609 --> 00:10:28,809 Suze: Now where do you go? Cause that's exactly what this 174 00:10:28,809 --> 00:10:29,880 Suze: woman's gonna say to her. 175 00:10:32,049 --> 00:10:34,929 KT: If your income streams stop, are you OK? Do you 176 00:10:34,929 --> 00:10:35,690 KT: have an emergency fund. 177 00:10:35,690 --> 00:10:37,969 Suze: They are not going to stop because they're like pensions 178 00:10:37,969 --> 00:10:41,929 Suze: and Social Security, and they're not gonna stop. Where do 179 00:10:41,929 --> 00:10:43,539 Suze: you go from there? 180 00:10:44,830 --> 00:10:48,929 KT: If something devastating were to happen to you and you 181 00:10:48,929 --> 00:10:53,010 KT: need like really serious care, do you have enough money 182 00:10:53,010 --> 00:10:53,640 KT: for that? 183 00:10:55,580 --> 00:10:58,059 Suze: Nothing's gonna happen to me. I'm gonna be fine forever. 184 00:10:58,140 --> 00:10:59,380 Suze: I'm asking you not to worry about me. 185 00:10:59,380 --> 00:11:03,319 KT: Don't say that. We're friends and remember what Susie Orman 186 00:11:03,320 --> 00:11:04,929 KT: always says, the what ifs of like. 187 00:11:05,809 --> 00:11:07,609 KT: Do you really have enough money? 188 00:11:07,729 --> 00:11:11,289 Suze: Yes, so I think, Rosa, what you really need to 189 00:11:11,289 --> 00:11:15,000 Suze: take into consideration and maybe role play it with yourself 190 00:11:15,000 --> 00:11:19,409 Suze: because you know your friend, you know her, what she 191 00:11:19,409 --> 00:11:24,609 Suze: is going to say. So somewhere you have to have 192 00:11:24,609 --> 00:11:27,590 Suze: something that you say back that isn't just a comeback, 193 00:11:28,169 --> 00:11:31,729 Suze: but it's to get her to go back to her 194 00:11:31,729 --> 00:11:35,449 Suze: senses because she's obviously not in her senses right now. 195 00:11:35,820 --> 00:11:39,059 Suze: So maybe you start by you telling her that you're 196 00:11:39,059 --> 00:11:43,340 Suze: worried about yourself, that maybe you're worried, you know, I 197 00:11:43,340 --> 00:11:45,000 Suze: don't know what's going to happen if I end up 198 00:11:45,000 --> 00:11:47,500 Suze: in a nursing home. I'm not sure I'm going to 199 00:11:47,500 --> 00:11:50,799 Suze: have enough money to pay for it. Like I'm starting 200 00:11:50,799 --> 00:11:55,280 Suze: to look at all the expenses, and I'm even worried 201 00:11:55,280 --> 00:11:58,119 Suze: about myself, so to speak. Now I don't know if 202 00:11:58,119 --> 00:12:00,599 Suze: you are or not, but you might be. 203 00:12:01,210 --> 00:12:04,390 Suze: But you have to relate it to yourself and not 204 00:12:04,390 --> 00:12:07,539 Suze: just sit down and put it all on her. 205 00:12:08,309 --> 00:12:09,218 Suze: Now what... 206 00:12:09,510 --> 00:12:10,789 KT: Don't be judgmental. 207 00:12:11,150 --> 00:12:13,630 Suze: Yeah, but what gets me is, which is why I'm 208 00:12:13,630 --> 00:12:16,228 Suze: having trouble answering this question. 209 00:12:16,940 --> 00:12:22,020 Suze: you say obviously there is a larger story to all 210 00:12:22,020 --> 00:12:26,840 Suze: of this, and unless I know what the larger story is, 211 00:12:27,119 --> 00:12:32,039 Suze: there is absolutely no way that I could give you 100% 212 00:12:32,039 --> 00:12:34,750 Suze: the correct answer as to how I feel about it, 213 00:12:34,919 --> 00:12:38,750 Suze: because there is a missing piece, but the mere fact 214 00:12:39,359 --> 00:12:43,250 Suze: that this is just a simple short question according to you, 215 00:12:43,320 --> 00:12:44,840 Suze: but there's a larger story. 216 00:12:45,400 --> 00:12:48,390 Suze: You better take that larger story into consideration. 217 00:12:48,750 --> 00:12:48,815 KT: I can guess. 218 00:12:48,815 --> 00:12:49,419 Suze: What do you guess. 219 00:12:49,419 --> 00:12:51,950 KT: I can guess it. There's a, there's a little signal 220 00:12:51,950 --> 00:12:54,949 KT: in there what you can guess. She says, I'm going 221 00:12:54,950 --> 00:13:00,589 KT: for it. That sounds like revenge spending, doesn't it? Come on, 222 00:13:00,630 --> 00:13:02,460 KT: you have to admit I'm going for it. 223 00:13:02,460 --> 00:13:05,849 Suze: So if in fact she's going for it because of 224 00:13:05,849 --> 00:13:07,260 Suze: either a divorce or 225 00:13:07,580 --> 00:13:11,460 Suze: whatever it's like then what you have to do, Rosa, 226 00:13:11,500 --> 00:13:14,039 Suze: is say, who do you think you're hurting by spending 227 00:13:14,039 --> 00:13:16,659 Suze: all your money? You think you're hurting this person, you're 228 00:13:16,659 --> 00:13:20,140 Suze: being an idiot and you know, just be straight with them, 229 00:13:20,179 --> 00:13:23,239 Suze: but take it very carefully. All right, go on. 230 00:13:23,239 --> 00:13:27,890 KT: OK, next is from Kristen. Hello, Suze. I'm a special 231 00:13:27,890 --> 00:13:31,770 KT: education teacher. I'm in the process of getting a divorce. 232 00:13:31,859 --> 00:13:35,739 KT: I have two teenage children, 11th and 9th grade. 233 00:13:36,140 --> 00:13:40,239 KT: I have credit card debt of $18,000 which I thought 234 00:13:40,239 --> 00:13:44,280 KT: my soon to be ex was paying while we were married. 235 00:13:44,530 --> 00:13:47,969 KT: The credit card, I know the credit card is in 236 00:13:47,969 --> 00:13:52,679 KT: my name, but it was used for family expenses and trips. 237 00:13:52,929 --> 00:13:55,599 KT: My mom passed away last year, and I just found 238 00:13:55,599 --> 00:13:59,929 KT: out I will receive $4000 from her estate. 239 00:14:00,349 --> 00:14:02,929 KT: I want to use the money wisely, begin to get 240 00:14:02,929 --> 00:14:06,890 KT: my life financially back on track. Please advise on what 241 00:14:06,890 --> 00:14:07,760 KT: I should do. 242 00:14:09,559 --> 00:14:12,729 Suze: See, this is a hard one, because 243 00:14:13,520 --> 00:14:16,939 Suze: she wants to probably close the credit card, but you 244 00:14:16,940 --> 00:14:21,380 Suze: can't close a credit card when you still owe money 245 00:14:21,380 --> 00:14:21,979 Suze: on it. 246 00:14:22,880 --> 00:14:24,270 KT: Can she stop him from... 247 00:14:24,599 --> 00:14:26,960 Suze: I would if I were you, if the credit card 248 00:14:26,960 --> 00:14:31,280 Suze: is just in your name you probably made him an 249 00:14:31,280 --> 00:14:34,880 Suze: authorized user on that card. You need to talk to 250 00:14:34,880 --> 00:14:39,719 Suze: that credit card company and if I were you, I 251 00:14:39,719 --> 00:14:43,200 Suze: would ask them to either stop his being able to 252 00:14:43,200 --> 00:14:47,559 Suze: use it. Number one, I'm not sure he's still using it, right, 253 00:14:47,599 --> 00:14:50,380 Suze: but to just make sure that his name is off 254 00:14:50,380 --> 00:14:51,119 Suze: of it. 255 00:14:51,719 --> 00:14:58,330 Suze: And or just transfer it to another credit card meaning 256 00:14:58,330 --> 00:15:01,409 Suze: either do a credit card balance transfer to just your 257 00:15:01,409 --> 00:15:04,609 Suze: name without him even knowing you've done that just to 258 00:15:04,609 --> 00:15:09,520 Suze: protect his use of it. However, this is your responsibility. 259 00:15:09,770 --> 00:15:13,219 Suze: He is your soon to be ex. Now I don't 260 00:15:13,219 --> 00:15:16,450 Suze: know how you are going to get divorced or not. 261 00:15:16,890 --> 00:15:20,549 Suze: But when you go to divorce court, maybe he can 262 00:15:20,549 --> 00:15:24,849 Suze: be responsible for a lot of that credit card debt 263 00:15:24,979 --> 00:15:28,030 Suze: just so you know. So don't just give up on 264 00:15:28,030 --> 00:15:31,460 Suze: it whatsoever. You're in the process of getting a divorce. 265 00:15:31,669 --> 00:15:35,270 Suze: That credit card debt needs to be part of the 266 00:15:35,270 --> 00:15:36,950 Suze: divorce settlement. 267 00:15:37,190 --> 00:15:40,890 Suze: Just that simple. For now, believe it or not, I 268 00:15:40,890 --> 00:15:45,830 Suze: would just keep that $4000 in an individual account in 269 00:15:45,830 --> 00:15:51,200 Suze: your name, making interest and just wait until your divorce 270 00:15:51,200 --> 00:15:55,559 Suze: is final to make decisions what you do with that money. 271 00:15:55,849 --> 00:15:57,359 Suze: That's what I would be doing. 272 00:15:57,909 --> 00:15:59,059 KT: OK, that's good advice. 273 00:15:59,450 --> 00:16:02,390 Suze: This is a hard one, but I would keep that 274 00:16:02,390 --> 00:16:03,890 Suze: credit card debt there. 275 00:16:04,260 --> 00:16:05,890 Suze: And make it part of the divorce. 276 00:16:06,159 --> 00:16:06,219 KT: I mean, it'd 277 00:16:06,219 --> 00:16:09,650 KT: be great if they were both 50/50 responsible that would 278 00:16:09,650 --> 00:16:13,090 KT: cut it right in half, and then the 4000 against 279 00:16:13,090 --> 00:16:17,409 KT: her half would even make it manageable, very manageable, right? 280 00:16:17,690 --> 00:16:20,489 Suze: But even though it's just in her name, so they 281 00:16:20,489 --> 00:16:23,130 Suze: may say, hey, wait a minute, but if it was 282 00:16:23,130 --> 00:16:26,440 Suze: used for family expenses and trips and she can prove it, 283 00:16:26,789 --> 00:16:28,250 Suze: they may make it half his as well. 284 00:16:28,729 --> 00:16:30,320 KT: She thought he was paying it off 285 00:16:30,489 --> 00:16:31,799 Suze: What are you crazy? 286 00:16:33,229 --> 00:16:35,349 KT: She should have known that it wasn't paid off. 287 00:16:36,280 --> 00:16:40,400 KT: Open the mail, everybody, like I do. All right, next 288 00:16:40,400 --> 00:16:44,070 KT: question from Joan. Hi, Suze, you're the best. 289 00:16:45,669 --> 00:16:48,400 KT: I tell her that all the time, Joan. I have 290 00:16:48,400 --> 00:16:51,760 KT: your ultimate. I tell her all the time. I have 291 00:16:51,760 --> 00:16:54,210 KT: your retirement guide in audio. 292 00:16:54,760 --> 00:16:54,916 Suze: What makes me the best? 293 00:16:54,916 --> 00:16:57,950 KT: Oh, there's too many things that make you the best. 294 00:16:58,080 --> 00:17:01,400 KT: One day I'll list it. I'll list all the best. 295 00:17:01,559 --> 00:17:02,320 Suze: Tell me one. 296 00:17:03,369 --> 00:17:07,130 KT: Your happiness and joy number is my number one. You're, 297 00:17:07,170 --> 00:17:10,889 KT: you're a happy and joyful person. You're not a depressed person. 298 00:17:10,930 --> 00:17:16,260 KT: You're very happy and you're very positive, and you always, always, 299 00:17:16,449 --> 00:17:19,209 KT: she has a great amount of faith, everybody always believe 300 00:17:19,209 --> 00:17:23,079 KT: that whatever happens, God does but for, for a reason. 301 00:17:23,449 --> 00:17:27,270 KT: So you're very happy. That's my one of my number ones. 302 00:17:27,369 --> 00:17:28,050 Suze: I'm just curious. 303 00:17:29,000 --> 00:17:32,800 KT: And she always says to me every morning, Hi KT, 304 00:17:33,130 --> 00:17:35,198 KT: like it's the first time she met me. 305 00:17:36,469 --> 00:17:39,939 KT: 25 years later, every morning, Hi KT when I wake up. 306 00:17:41,020 --> 00:17:43,229 Suze: I am staying in bed longer than KT. Have you 307 00:17:43,229 --> 00:17:43,900 Suze: noticed? 308 00:17:43,900 --> 00:17:46,900 KT: She sleeps in a little bit, that's a sign of, 309 00:17:46,910 --> 00:17:47,890 KT: you know what... 310 00:17:50,689 --> 00:17:52,859 Suze: That means I sleep in, 'till like 6:30 versus 5 o'clock. 311 00:17:54,119 --> 00:17:56,979 KT: This is from Joan. Hi, Suze. You are the best. 312 00:17:57,150 --> 00:18:00,948 KT: I have your ultimate retirement guide on audio and the 313 00:18:00,949 --> 00:18:06,188 KT: revised and updated and soft cover. Love the podcast. My 314 00:18:06,189 --> 00:18:10,140 KT: sister asked me why she would need a trust because 315 00:18:10,140 --> 00:18:13,670 KT: she doesn't have any children. She and her husband have 316 00:18:13,670 --> 00:18:18,430 KT: all the other must-have documents. I've reread the section on trust, 317 00:18:18,469 --> 00:18:20,739 KT: but I still don't have an answer for her. 318 00:18:21,229 --> 00:18:23,000 KT: Are you kidding, Joan? 319 00:18:23,380 --> 00:18:27,189 Suze: No, no. So I don't know what you mean when 320 00:18:27,189 --> 00:18:31,589 Suze: you say she has all the other must-have documents. So 321 00:18:31,589 --> 00:18:35,829 Suze: let's just say, Joan's sister, you own a home and 322 00:18:35,829 --> 00:18:39,469 Suze: you own it in joint tenancy with right of survivorship 323 00:18:39,469 --> 00:18:44,550 Suze: with your husband, thinking, oh, you've covered it. Everything is great. 324 00:18:45,449 --> 00:18:49,319 Suze: You die. It automatically goes to him. He dies. It 325 00:18:49,319 --> 00:18:52,680 Suze: automatically goes to you. But here is the question you 326 00:18:52,680 --> 00:18:56,198 Suze: all have to always ask yourself. What if you don't die? 327 00:18:57,079 --> 00:19:01,180 Suze: What if you become incapacitated? You're walking down the street. 328 00:19:01,229 --> 00:19:03,989 Suze: You slip on ice, you hit your head. You don't 329 00:19:03,989 --> 00:19:07,589 Suze: know who anybody is. You're in a car accident. Anything 330 00:19:07,589 --> 00:19:13,310 Suze: can happen at any time. Therefore, all right, your husband 331 00:19:13,310 --> 00:19:16,629 Suze: becomes incapacitated, and you live in a house that has 332 00:19:16,630 --> 00:19:19,869 Suze: two stories, and you need to make a move so 333 00:19:19,869 --> 00:19:23,419 Suze: it's easier on you and you have a one story house. 334 00:19:23,709 --> 00:19:26,069 Suze: The question is, can you sell it? 335 00:19:26,880 --> 00:19:27,479 Suze: Can you? 336 00:19:28,180 --> 00:19:31,680 Suze: You say you have everything in order, and the answer 337 00:19:31,680 --> 00:19:37,250 Suze: is no, you cannot because it takes two signatures of 338 00:19:37,250 --> 00:19:41,198 Suze: both of you to sell that home because it's owned 339 00:19:41,199 --> 00:19:44,010 Suze: in joint tenancy with right of survivorship. 340 00:19:44,969 --> 00:19:50,880 Suze: If your husband cannot sign because he's incapacitated, you then 341 00:19:50,880 --> 00:19:55,169 Suze: have to go down to what the court go through 342 00:19:55,170 --> 00:20:00,449 Suze: probate court, get a conservatorship assigned to him, and from 343 00:20:00,449 --> 00:20:03,500 Suze: that point on, now you have the ability to sign 344 00:20:03,500 --> 00:20:07,569 Suze: for him. Now you may think everything's great. You have 345 00:20:07,569 --> 00:20:10,479 Suze: power of attorney, however. 346 00:20:11,489 --> 00:20:14,689 Suze: Most power of attorneys become null and void the day 347 00:20:14,689 --> 00:20:20,930 Suze: that there's an incapacity. Number two, banks don't like dealing 348 00:20:20,930 --> 00:20:25,000 Suze: with power of attorneys because many of them are old. 349 00:20:25,209 --> 00:20:27,930 Suze: They don't know if they're still valid. They don't know 350 00:20:27,930 --> 00:20:31,770 Suze: if they've been updated or changed. They don't like that. 351 00:20:31,930 --> 00:20:34,729 Suze: But when you own something in trust. 352 00:20:35,260 --> 00:20:38,290 Suze: You have the right immediately if the trust has an 353 00:20:38,290 --> 00:20:42,640 Suze: incapacity clause in it which the must have documents do. 354 00:20:42,939 --> 00:20:46,169 Suze: All right, you can sign for him. He could sign 355 00:20:46,170 --> 00:20:51,040 Suze: for you, and if something happens to both of you 356 00:20:51,329 --> 00:20:55,170 Suze: at the same time, you're in a car accident and 357 00:20:55,170 --> 00:21:00,329 Suze: now neither of you are capable of doing anything, you 358 00:21:00,329 --> 00:21:03,280 Suze: can name friends or people that you trust or even 359 00:21:03,280 --> 00:21:04,770 Suze: a professional trustee 360 00:21:05,489 --> 00:21:08,438 Suze: to come in and make sure that you are OK. 361 00:21:08,810 --> 00:21:13,189 Suze: So that is the answer to the question. Next, KT. 362 00:21:13,209 --> 00:21:17,319 KT: OK, from Laura. Hi, Suze and KT, I love your show. 363 00:21:17,729 --> 00:21:21,250 KT: Quick question. I love this Laura. Quick question. I will 364 00:21:21,250 --> 00:21:24,409 KT: need a used car with low mileage in the next 365 00:21:24,410 --> 00:21:28,170 KT: year or two. Should I wait or buy now to 366 00:21:28,170 --> 00:21:33,250 KT: avoid potential increases in cost due to tariffs and other variables? 367 00:21:33,650 --> 00:21:36,250 KT: Thank you for all you do. Laura is a retired 368 00:21:36,250 --> 00:21:40,530 KT: teacher and now she said a student of Suze. 369 00:21:40,530 --> 00:21:42,050 Suze: So you have a look like you want to answer 370 00:21:42,050 --> 00:21:45,569 Suze: this question, KT. So since this is your show, you answer her. 371 00:21:45,800 --> 00:21:48,728 KT: No, Laura, I think what you're asking is if you 372 00:21:48,729 --> 00:21:51,810 KT: recall not too long ago there was a surge in 373 00:21:51,810 --> 00:21:51,969 KT: used 374 00:21:52,454 --> 00:21:56,535 KT: car prices. Suze and I were even considering selling our 375 00:21:56,535 --> 00:22:00,535 KT: 10 year plus car, yeah, because we knew we could 376 00:22:00,535 --> 00:22:03,724 KT: get a huge amount of money for it 13 years, 377 00:22:04,055 --> 00:22:07,004 KT: 13 years and, and Suze loves that little car, but 378 00:22:07,295 --> 00:22:09,454 KT: I said maybe we should sell it because we'd get 379 00:22:09,454 --> 00:22:10,535 KT: so much for it. 380 00:22:11,020 --> 00:22:14,619 KT: And now I don't know what the tariffs are gonna do. 381 00:22:14,699 --> 00:22:17,978 KT: I don't know. It looks like prices will continue to 382 00:22:17,979 --> 00:22:21,619 KT: go up in manufacturing because of all the parts and 383 00:22:21,619 --> 00:22:22,689 KT: everything they're bringing in. 384 00:22:23,099 --> 00:22:23,770 Suze: So maybe 385 00:22:23,770 --> 00:22:28,020 Suze: the answer is yes, do it now, and I agree 386 00:22:28,020 --> 00:22:28,938 Suze: with that. All right, go on. 387 00:22:28,939 --> 00:22:34,339 KT: OK, my final question, Suze. This is from Cynthia. I 388 00:22:34,339 --> 00:22:37,619 KT: will be 39 next month. My wife and I have 389 00:22:37,619 --> 00:22:40,419 KT: two small children, two and eight, 390 00:22:40,709 --> 00:22:44,180 KT: who we would like to create separate accounts for to 391 00:22:44,180 --> 00:22:49,229 KT: help them secure their financial futures. I'm not sure... I know. 392 00:22:49,540 --> 00:22:51,540 KT: I said the same thing when I read this. I went, 393 00:22:51,780 --> 00:22:54,339 KT: Why not you? I am not sure if we should 394 00:22:54,339 --> 00:22:57,540 KT: open a separate high yield savings account for them, a 395 00:22:57,540 --> 00:23:02,020 KT: brokerage account, or some type of other account. A brokerage 396 00:23:02,020 --> 00:23:06,329 KT: account may yield them the greatest amount over their lifetimes, 397 00:23:06,500 --> 00:23:07,420 KT: but they would need to 398 00:23:07,494 --> 00:23:11,964 KT: pay hefty taxes on the gift when they sell their positions. Wait, 399 00:23:12,005 --> 00:23:13,935 KT: we're talking about a two year old and an eight 400 00:23:13,935 --> 00:23:17,244 KT: year old, everybody. I want them to grow their money. 401 00:23:17,364 --> 00:23:21,785 KT: I don't want the unintended consequence of saddling them with 402 00:23:21,785 --> 00:23:25,395 KT: a tax nightmare. I'm eager to know what you recommend, 403 00:23:25,484 --> 00:23:27,515 KT: and I appreciate your guidance. 404 00:23:28,005 --> 00:23:31,004 Suze: Alright, well, if you don't want to saddle them with 405 00:23:31,005 --> 00:23:33,765 Suze: a tax nightmare, although I don't think you would. 406 00:23:34,160 --> 00:23:37,900 Suze: Right, you might as well saddle yourself with one. And 407 00:23:37,900 --> 00:23:41,659 Suze: what I mean by that is, listen, over all the 408 00:23:41,660 --> 00:23:44,939 Suze: years that I've been doing this, which is almost 40 409 00:23:45,109 --> 00:23:49,429 Suze: years now. In fact, it is 40 years, right. 410 00:23:49,969 --> 00:23:54,629 Suze: I have seen this situation way too many times. I'm 411 00:23:54,630 --> 00:24:00,260 Suze: so sorry to say, where little Johnny Angel was so sweet. 412 00:24:02,030 --> 00:24:04,300 Suze: I love you. I love you mommy, da da da da. 413 00:24:04,489 --> 00:24:06,099 Suze: Turns out to be Johnny Devil. 414 00:24:06,760 --> 00:24:10,119 Suze: In that they get older, you never know what will 415 00:24:10,119 --> 00:24:13,069 Suze: happen to them. They get involved with the wrong people. 416 00:24:13,250 --> 00:24:16,339 Suze: They now have money and they use that money for drugs, 417 00:24:16,400 --> 00:24:18,679 Suze: and you feel horrific because you were the ones who 418 00:24:18,680 --> 00:24:21,839 Suze: supplied them with that money. Remember, when you put it 419 00:24:21,839 --> 00:24:25,719 Suze: in their name, you have to create a uniform gift 420 00:24:25,719 --> 00:24:29,879 Suze: to minors act or trust account for them, which means 421 00:24:29,880 --> 00:24:33,560 Suze: at the age of 18 or 21, it is their money. 422 00:24:33,859 --> 00:24:36,810 Suze: And there is nothing you can do about it. So 423 00:24:36,810 --> 00:24:40,250 Suze: if all of a sudden they want that money to 424 00:24:40,250 --> 00:24:42,920 Suze: go buy a car, to do this, to do that, 425 00:24:42,969 --> 00:24:45,050 Suze: they don't want to go to school, they don't want 426 00:24:45,050 --> 00:24:48,050 Suze: anything because they have enough money right now. You're going 427 00:24:48,050 --> 00:24:51,609 Suze: to be so sad that you did that. Just put 428 00:24:51,609 --> 00:24:53,890 Suze: away an account in your name. 429 00:24:54,829 --> 00:24:58,189 Suze: Where you know it is for them, you pay the 430 00:24:58,189 --> 00:25:00,589 Suze: taxes on it since you don't want to saddle them 431 00:25:00,589 --> 00:25:04,260 Suze: with it. You make sure everything is OK that way. 432 00:25:04,569 --> 00:25:08,630 Suze: And as they get older, remember, like this year you 433 00:25:08,630 --> 00:25:13,709 Suze: could give them $19,000 totally tax free to them. So 434 00:25:13,709 --> 00:25:16,909 Suze: what might happen years from now if you get this 435 00:25:16,910 --> 00:25:20,829 Suze: money to grow and keep two separate accounts, one for 436 00:25:20,829 --> 00:25:23,310 Suze: one and one for the other, so you don't mix them. 437 00:25:23,900 --> 00:25:26,130 Suze: When it comes time and you want to give them 438 00:25:26,130 --> 00:25:28,929 Suze: the money for something that makes sense. 439 00:25:30,010 --> 00:25:33,089 Suze: Then, hey, you can cash out what you have. You 440 00:25:33,089 --> 00:25:35,169 Suze: can pay the taxes on it, and you could be 441 00:25:35,170 --> 00:25:38,250 Suze: gifting it to them over time, or you just gift 442 00:25:38,250 --> 00:25:40,639 Suze: it to them and take it off your unified credit. 443 00:25:40,930 --> 00:25:43,849 Suze: So that's how I would do it. Also remember when 444 00:25:43,849 --> 00:25:46,130 Suze: you put money in a child's name. 445 00:25:46,979 --> 00:25:51,790 Suze: It hurts them for financial aid because it counts for 446 00:25:51,790 --> 00:25:54,670 Suze: more in their name than it does when it's in 447 00:25:54,670 --> 00:25:58,030 Suze: your name when you want aid, so I wouldn't be 448 00:25:58,030 --> 00:26:01,849 Suze: putting it in their names right now unless you want 449 00:26:01,849 --> 00:26:05,540 Suze: to put it in a 529 plan for their college education, 450 00:26:05,709 --> 00:26:09,069 Suze: but somehow I feel like you want them to have 451 00:26:09,069 --> 00:26:12,310 Suze: money outside of college as well. 452 00:26:12,920 --> 00:26:15,180 Suze: All right, KT, that's it, huh? 453 00:26:15,920 --> 00:26:16,708 KT: That is a wrap, 454 00:26:16,800 --> 00:26:18,750 Suze: A wrap. All right, so... 455 00:26:19,000 --> 00:26:22,829 KT: End of July, you believe it's over already? The month. 456 00:26:23,270 --> 00:26:25,869 Suze: August is coming. 457 00:26:26,199 --> 00:26:27,910 KT: August is tomorrow. 458 00:26:28,449 --> 00:26:30,109 Suze: And then September. 459 00:26:32,280 --> 00:26:35,719 KT: We have an exciting date in September. Don't share it yet. Wait, 460 00:26:35,839 --> 00:26:38,869 KT: we'll keep it a surprise. We have a great date 461 00:26:38,869 --> 00:26:40,599 KT: we have planned for. 462 00:26:41,079 --> 00:26:43,750 KT: Labor Day weekend and she'll share it with you at 463 00:26:43,750 --> 00:26:48,469 KT: the end of August before it becomes September, and we 464 00:26:48,469 --> 00:26:51,180 KT: can't wait to, to do that. We can't wait for 465 00:26:51,180 --> 00:26:51,709 KT: that date. 466 00:26:51,910 --> 00:26:53,478 Suze: It's actually not that exciting. 467 00:26:53,989 --> 00:26:55,430 KT: It is exciting. Don't tell them. 468 00:26:56,140 --> 00:26:57,179 KT: It is exciting. 469 00:26:57,280 --> 00:26:57,819 Suze: It's not that big... 470 00:26:58,209 --> 00:27:00,680 KT: It's a bucket list. It's one of my bucket lists for 471 00:27:00,680 --> 00:27:02,020 KT: my whole life with you. 472 00:27:02,130 --> 00:27:05,130 Suze: Oh, so that's why it's exciting. Oh, all right, I'll 473 00:27:05,130 --> 00:27:10,400 Suze: wait till then to tell you right now this coming Sunday, 474 00:27:11,050 --> 00:27:13,770 Suze: you really have to make sure that you listen to 475 00:27:13,770 --> 00:27:19,198 Suze: the podcast because I'm going to continue on with things 476 00:27:19,199 --> 00:27:23,250 Suze: you need to know about the BBB, the Big Beautiful Bill. 477 00:27:23,910 --> 00:27:28,819 Suze: And this one's really gonna focus on student loans and 478 00:27:28,819 --> 00:27:34,020 Suze: what you need to know about them. So really don't 479 00:27:34,020 --> 00:27:38,479 Suze: miss it. KT, take us out, baby dolls... 480 00:27:38,479 --> 00:27:40,979 KT: There is one thing we want you to remember, and 481 00:27:40,979 --> 00:27:45,020 KT: that is this year is the year that you will 482 00:27:45,020 --> 00:27:47,900 KT: make your money, make more money. 483 00:27:47,900 --> 00:27:50,060 Suze: And the way that you do that, by the way. 484 00:27:50,680 --> 00:27:55,310 Suze: I always remember people first, then money, then things now 485 00:27:55,310 --> 00:27:56,859 Suze: you stay safe. 486 00:27:57,030 --> 00:27:57,180 KT: Love ya! 487 00:27:57,180 --> 00:27:58,270 Suze: Bye bye.