1 00:00:07,640 --> 00:00:08,560 Suze: we can't get 2 00:00:34,340 --> 00:00:36,820 Suze: April 28, 2022 3 00:00:37,810 --> 00:00:39,920 Suze: to Today's a great day for you, isn't it? 4 00:00:41,110 --> 00:00:41,250 KT: it? I'm so excited, everybody. I can't wait for this. 5 00:00:46,030 --> 00:00:49,180 KT: Ok, so after we're done with the podcast and I have 6 00:00:49,190 --> 00:00:53,440 KT: my breakfast, we're going to be starting the building of 7 00:00:53,450 --> 00:00:55,360 KT: our garden on the island. 8 00:00:55,540 --> 00:00:57,920 KT: It's going to be a full enclosure because we have... 9 00:00:57,920 --> 00:01:00,750 Suze: We're finishing the building that you started. 10 00:01:01,690 --> 00:01:05,340 KT: Yeah, I so excited, it's a huge garden. I'm growing all kinds of 11 00:01:05,340 --> 00:01:09,850 KT: vegetables and hopefully some fruits and we're just, I'm thrilled 12 00:01:10,180 --> 00:01:10,560 KT: Yeah, I'm so excited. It's a huge garden. I'm growing all kinds of vegetables and hopefully some fruits and we're just I'm thrilled. I have to enclose it because of the iguanas. Iguanas come in at night. They eat everything, everything down to sticks. So you have to put like a screen enclosure over anything you don't want them to eat. 13 00:01:16,040 --> 00:01:19,080 KT: everything down to sticks. So you have to put like 14 00:01:19,080 --> 00:01:22,440 KT: a screen enclosure over anything you don't want them to do. 15 00:01:22,440 --> 00:01:25,190 Suze: So we started building this garden in 16 00:01:25,190 --> 00:01:26,300 KT: two months ago. 17 00:01:26,300 --> 00:01:29,020 Suze: No, in january, Katie in january 18 00:01:29,020 --> 00:01:29,840 KT: more than that. 19 00:01:29,840 --> 00:01:30,460 Suze: Right. And 20 00:01:30,640 --> 00:01:33,140 Suze: it's gonna be something. And in the next two days 21 00:01:33,150 --> 00:01:34,970 Suze: it will be completely 22 00:01:35,740 --> 00:01:36,619 KT: welcome 23 00:01:36,620 --> 00:01:42,300 Suze: everybody to ask Susie an anything. And this is where 24 00:01:42,300 --> 00:01:44,670 Suze: you write in, you ask a question and you write 25 00:01:44,670 --> 00:01:48,160 Suze: in to ask Susie podcast at gmail dot com 26 00:01:48,540 --> 00:01:52,000 Suze: or you go to the women and money app at 27 00:01:52,010 --> 00:01:55,580 Suze: either google play or apple apps download it. You can 28 00:01:55,580 --> 00:01:58,660 Suze: ask their the app has all kinds of things on 29 00:01:58,660 --> 00:02:01,680 Suze: it now that I don't do on the podcast when 30 00:02:01,680 --> 00:02:03,920 Suze: I need to tell you something, so you might want 31 00:02:03,920 --> 00:02:04,650 Suze: to do that 32 00:02:04,740 --> 00:02:08,660 Suze: then if your email is chosen by Miss Travis, 33 00:02:08,940 --> 00:02:11,860 Suze: it will be answered here on the podcast, Katie, I 34 00:02:11,860 --> 00:02:14,139 Suze: want to say something though, about the emails that are 35 00:02:14,139 --> 00:02:14,760 Suze: coming in. 36 00:02:15,240 --> 00:02:15,740 KT: Okay, 37 00:02:15,750 --> 00:02:18,150 Suze: alright and maybe you've noticed this as well. 38 00:02:19,040 --> 00:02:21,460 Suze: I love all of you so much 39 00:02:21,840 --> 00:02:25,430 Suze: and I get that these times are very confusing, I 40 00:02:25,430 --> 00:02:26,060 Suze: get that. 41 00:02:26,740 --> 00:02:30,160 Suze: But as much as I love you I cannot be 42 00:02:30,169 --> 00:02:33,550 Suze: your own personal financial advisor. 43 00:02:34,340 --> 00:02:38,190 Suze: All I can do is advise you in generic terms 44 00:02:38,190 --> 00:02:41,519 Suze: on this podcast as to what I think you should 45 00:02:41,520 --> 00:02:45,230 Suze: do and what's going on in the economy and with 46 00:02:45,240 --> 00:02:48,460 Suze: your own personal finance possible situations 47 00:02:48,940 --> 00:02:52,299 Suze: but it can't be directly for each one of you 48 00:02:52,310 --> 00:02:54,490 Suze: and so many of you now and I when I 49 00:02:54,490 --> 00:02:57,880 Suze: say so many, I mean thousands of you are writing 50 00:02:57,889 --> 00:03:03,180 Suze: really long emails with every bit of your financial information 51 00:03:03,180 --> 00:03:07,290 Suze: on it, every exchange traded fund that you own mutual funds, 52 00:03:07,290 --> 00:03:08,790 Suze: what's in your retirement accounts? 53 00:03:09,040 --> 00:03:10,670 Suze: And then you end it with, can you tell me 54 00:03:10,669 --> 00:03:11,460 Suze: what to do? 55 00:03:12,040 --> 00:03:15,200 KT: Which makes her crazy because she knows what to tell 56 00:03:15,200 --> 00:03:17,970 KT: you what to do but we don't have enough hours 57 00:03:17,970 --> 00:03:21,280 KT: and days and Suzie Orman's to answer. But the 58 00:03:21,280 --> 00:03:23,840 Suze: truth is Katie, I can't tell them what to do 59 00:03:23,840 --> 00:03:28,150 Suze: because I don't know enough about their personal situation. So 60 00:03:28,150 --> 00:03:31,060 KT: that's why this stack in front of me 61 00:03:31,240 --> 00:03:35,560 KT: is really short and sweet and it's single focused meaning 62 00:03:35,740 --> 00:03:39,630 KT: there's one question many of you say, oh wait and 63 00:03:39,630 --> 00:03:44,260 KT: now after that, can I do this. So one question please. 64 00:03:44,260 --> 00:03:46,840 Suze: And I just want to say that when I do 65 00:03:46,840 --> 00:03:52,190 Suze: choose to personally answer your question and I send you 66 00:03:52,190 --> 00:03:53,350 Suze: an answer 67 00:03:53,840 --> 00:03:54,460 Suze: then 68 00:03:54,840 --> 00:03:58,680 Suze: be happy that I answered one of your questions that's 69 00:03:58,680 --> 00:04:01,030 Suze: not for you. Then to write back and say I 70 00:04:01,030 --> 00:04:03,059 Suze: have three more questions to ask you. 71 00:04:03,440 --> 00:04:06,600 Suze: So I want to spread it around to everybody that's 72 00:04:06,600 --> 00:04:09,110 Suze: writing in, but I just ask you to take that 73 00:04:09,120 --> 00:04:10,760 Suze: into consideration. All right 74 00:04:10,760 --> 00:04:14,650 KT: There the love. The first question is from William. My 75 00:04:14,650 --> 00:04:18,080 KT: daughter is a stay at home mom. She isn't married 76 00:04:18,210 --> 00:04:21,570 KT: but they have a house together and have been together 77 00:04:21,570 --> 00:04:23,060 KT: for about 10 years. 78 00:04:23,240 --> 00:04:26,360 KT: Susie, can she contribute to an ira? 79 00:04:26,540 --> 00:04:28,320 Suze: Oh I should have made that your quiz. E 80 00:04:28,330 --> 00:04:30,490 KT: so you want me to try to answer it? 81 00:04:30,500 --> 00:04:35,219 Suze: Yeah. Alright. This will be your beginning of the podcast cuisine. 82 00:04:35,230 --> 00:04:40,370 KT: Everybody. As far as I recall, an individual retirement account 83 00:04:40,380 --> 00:04:42,260 KT: is contributed with 84 00:04:42,990 --> 00:04:44,760 KT: um money that you earn, 85 00:04:45,140 --> 00:04:46,099 KT: is that correct? 86 00:04:46,110 --> 00:04:47,099 Suze: It's true. And 87 00:04:47,150 --> 00:04:49,730 KT: so she's a stay at home mom which means she 88 00:04:49,740 --> 00:04:51,430 KT: isn't wait, you said unless 89 00:04:51,430 --> 00:04:52,660 Suze: what? 90 00:04:53,040 --> 00:04:57,969 Suze: Remember there are also non working spousal ira but 91 00:04:57,970 --> 00:05:01,710 KT: spousal does that mean married or what 92 00:05:01,720 --> 00:05:03,420 Suze: what does a spouse mean? 93 00:05:03,430 --> 00:05:07,659 KT: A spouse is considered someone that you're married to? 94 00:05:07,670 --> 00:05:10,460 Suze: So in this particular situation 95 00:05:11,040 --> 00:05:11,290 Suze: can 96 00:05:11,290 --> 00:05:12,180 KT: they cannot, she 97 00:05:12,180 --> 00:05:14,420 Suze: cannot because she has no earned income as that 98 00:05:14,420 --> 00:05:15,969 KT: and she's not married 99 00:05:16,440 --> 00:05:17,390 Suze: to this person 100 00:05:17,390 --> 00:05:21,250 KT: to her partner. Yeah, I got it. Right. So you 101 00:05:21,250 --> 00:05:22,070 Suze: got it. Right. 102 00:05:22,080 --> 00:05:24,359 KT: Good. I knew that I remembered that. 103 00:05:24,370 --> 00:05:25,529 Suze: Alright, so however 104 00:05:25,529 --> 00:05:27,650 KT: Williams, she cannot contribute 105 00:05:27,650 --> 00:05:32,020 Suze: to William, she can't however, if she were ever to 106 00:05:32,020 --> 00:05:34,950 Suze: get married to him, there is something known as a 107 00:05:34,950 --> 00:05:37,460 Suze: nonworking spousal ira a 108 00:05:37,640 --> 00:05:41,840 Suze: which allows the spouse who is not working to open 109 00:05:41,850 --> 00:05:46,360 Suze: up an ira a Roth ira based on the income 110 00:05:46,370 --> 00:05:49,430 Suze: of her or his spouse. 111 00:05:49,440 --> 00:05:52,460 KT: Okay, next question is from Latisha 112 00:05:52,740 --> 00:05:57,849 KT: Susie series. I bonds. Are there any considerations or watch 113 00:05:57,850 --> 00:06:01,710 KT: outs when getting one for a minor or opening one 114 00:06:01,710 --> 00:06:05,330 KT: for a minor child so or gifting it? 115 00:06:05,339 --> 00:06:08,850 Suze: Nope. There's no downside Katie. No, downside at all. Go 116 00:06:08,850 --> 00:06:10,250 Suze: ahead and do it girlfriend. Alright, 117 00:06:10,250 --> 00:06:13,600 KT: great. Next question is from Polly, 118 00:06:13,940 --> 00:06:17,530 KT: I love this question because so many people are still 119 00:06:17,529 --> 00:06:19,960 KT: stuck in this rut. As I say, 120 00:06:20,040 --> 00:06:23,870 KT: Hi Susie. I made a stupid mistake of buying a 121 00:06:23,870 --> 00:06:29,630 KT: timeshare in Florida. The maintenance fee is getting higher each year. 122 00:06:29,640 --> 00:06:32,400 KT: I want to get out of the timeshare but it 123 00:06:32,400 --> 00:06:36,580 KT: would cost me about $5,000 to get out through an 124 00:06:36,589 --> 00:06:37,760 KT: exit company. 125 00:06:38,140 --> 00:06:41,210 KT: If I do not pay the maintenance fee, would my 126 00:06:41,210 --> 00:06:44,920 KT: kids be liable for this debt when I die? I 127 00:06:44,920 --> 00:06:47,860 KT: do not care if it affects my credit. 128 00:06:48,339 --> 00:06:52,119 KT: Thank you for answering this question. She's mad. Polly wants 129 00:06:52,130 --> 00:06:53,159 KT: out 130 00:06:54,040 --> 00:06:59,870 Suze: Polly, if you want out of this debt to a timeshare, 131 00:06:59,880 --> 00:07:04,070 Suze: which was obviously not the wisest move that any of 132 00:07:04,070 --> 00:07:06,120 Suze: you could ever make by the way, but that you 133 00:07:06,120 --> 00:07:07,450 Suze: made Polly, 134 00:07:07,940 --> 00:07:11,560 Suze: The problem is if you just stop paying one thing 135 00:07:11,560 --> 00:07:14,470 Suze: you're not going to ever get out of is a 136 00:07:14,480 --> 00:07:16,970 Suze: bad Fico score. She 137 00:07:16,970 --> 00:07:18,220 KT: said she didn't care 138 00:07:18,230 --> 00:07:20,800 Suze: and well I'm telling you you better care because in 139 00:07:20,800 --> 00:07:22,650 Suze: the same way you didn't care when you got a 140 00:07:22,650 --> 00:07:24,860 Suze: time share that you never could have gotten out of. 141 00:07:25,240 --> 00:07:27,820 Suze: If you have done your research on it, you might 142 00:07:27,820 --> 00:07:30,850 Suze: want to do a little research on how everything might 143 00:07:30,850 --> 00:07:34,050 Suze: get more expensive for you when you have a low 144 00:07:34,050 --> 00:07:39,429 Suze: Fico score. So first of all that is just ridiculous. However, 145 00:07:39,430 --> 00:07:44,660 Suze: what you need to know everybody, including Polly timeshares usually 146 00:07:44,660 --> 00:07:46,660 Suze: include when you sign for them 147 00:07:47,040 --> 00:07:53,160 Suze: and in perpetuity clause which means they will go on forever. 148 00:07:53,640 --> 00:07:55,830 Suze: So you can be on the hook for this for 149 00:07:55,830 --> 00:07:59,160 Suze: the rest of your life. Just so you know 150 00:07:59,740 --> 00:07:59,880 KT: a 151 00:07:59,880 --> 00:08:02,560 Suze: lot of times when you buy a timeshare 152 00:08:02,940 --> 00:08:05,640 Suze: they want to say to you, why don't you put 153 00:08:05,650 --> 00:08:09,030 Suze: your kid's name on the timeshare as well so that 154 00:08:09,040 --> 00:08:10,350 Suze: they could use it 155 00:08:10,740 --> 00:08:13,050 Suze: and they do that not to be generous 156 00:08:13,440 --> 00:08:16,440 Suze: to you and your Children, but to make it so 157 00:08:16,440 --> 00:08:19,770 Suze: that if you die, your kids are on the hook 158 00:08:19,780 --> 00:08:23,420 Suze: as well. So if you're going to be ridiculous enough 159 00:08:23,420 --> 00:08:25,050 Suze: to buy a timeshare, 160 00:08:25,640 --> 00:08:28,250 Suze: that was a nice word I used there by the way, Katie, 161 00:08:28,260 --> 00:08:31,570 Suze: you know the word I wanted to use, you know 162 00:08:31,580 --> 00:08:35,380 Suze: right anyway. Whatever you do do not put your kids 163 00:08:35,380 --> 00:08:39,650 Suze: names on the D. Now your question to me was 164 00:08:40,040 --> 00:08:41,960 Suze: if you do this, 165 00:08:43,040 --> 00:08:45,900 Suze: will it pass down meaning you stop paying, will it 166 00:08:45,900 --> 00:08:48,050 Suze: pass down to your kids? 167 00:08:48,740 --> 00:08:49,550 Suze: Well 168 00:08:49,940 --> 00:08:53,750 Suze: the thing is if your kids inherit the contract 169 00:08:54,240 --> 00:08:57,390 Suze: then they will be responsible. So if you left it 170 00:08:57,390 --> 00:09:00,739 Suze: to them and they decide they want it they're gonna 171 00:09:00,740 --> 00:09:05,110 Suze: be responsible just so you know, but remember they don't 172 00:09:05,110 --> 00:09:06,960 Suze: have to inherit something, 173 00:09:07,940 --> 00:09:11,220 Suze: they can disclaim it. So even if the courts say 174 00:09:11,220 --> 00:09:13,920 Suze: this is your kids just tell them to disclaim it 175 00:09:13,920 --> 00:09:16,670 Suze: you they don't want it and then they won't be 176 00:09:16,679 --> 00:09:20,190 Suze: responsible for it. But can we all just learn not 177 00:09:20,190 --> 00:09:22,829 Suze: to do timeshares? Everybody don't do them, don't do them, 178 00:09:22,830 --> 00:09:23,230 Suze: don't do 179 00:09:23,230 --> 00:09:26,450 KT: them. So Susie. Next question is from Maria, 180 00:09:27,040 --> 00:09:31,160 KT: is there anything I can do to delay Rmds that's 181 00:09:31,160 --> 00:09:35,449 KT: required minimum distributions. Everybody how can I protect 182 00:09:35,450 --> 00:09:37,360 Suze: And at what age do they start, Katie? 183 00:09:38,440 --> 00:09:42,770 KT: Um 72 I think 72. How can I protect my 184 00:09:42,770 --> 00:09:45,850 KT: IRA savings from high taxes. 185 00:09:46,440 --> 00:09:51,260 Suze: The only thing Maria you can do to delay Rmds 186 00:09:51,840 --> 00:09:53,160 Suze: is to convert 187 00:09:53,540 --> 00:09:56,450 Suze: your retirement account over to a Roth 188 00:09:57,040 --> 00:10:01,150 Suze: because in a Roth there are no R. M. D. S. 189 00:10:01,160 --> 00:10:05,520 Suze: Ever which is why I've told all of you forever, 190 00:10:05,530 --> 00:10:07,740 Suze: can you just do a Roth four oh one K. 191 00:10:07,740 --> 00:10:10,960 Suze: A Roth 403 B. Forget the tax that you're going 192 00:10:10,960 --> 00:10:15,020 Suze: to pay now forget it. Everybody just get into a Roth? 193 00:10:15,030 --> 00:10:15,960 Suze: If you can. 194 00:10:16,540 --> 00:10:20,820 Suze: That is the best way to get rid of R. M. D. S. 195 00:10:20,830 --> 00:10:22,360 Suze: Can you delay them? 196 00:10:22,740 --> 00:10:25,640 Suze: The only way that you delay them by the way 197 00:10:25,679 --> 00:10:28,590 Suze: is if you're working let's say full time and you 198 00:10:28,590 --> 00:10:30,450 Suze: have a 401K. Plan 199 00:10:31,040 --> 00:10:35,120 Suze: Your RMds don't start while you're working full time even 200 00:10:35,120 --> 00:10:36,949 Suze: if it's after the age of 72. 201 00:10:37,540 --> 00:10:41,460 Suze: But besides those things not a lot that you can do. 202 00:10:41,470 --> 00:10:41,950 Suze: All right 203 00:10:42,540 --> 00:10:47,240 KT: okay next is from Christine. Hi Susie and Katie. I'm 204 00:10:47,240 --> 00:10:51,450 KT: so happy to hear Susie strong voice back. 205 00:10:51,460 --> 00:10:53,479 Suze: It's still a little weak don't you think? 206 00:10:53,480 --> 00:10:57,150 KT: No it's great. It's good meat to Christine. I'm happy. 207 00:10:57,160 --> 00:11:00,420 KT: So here's her question about a year ago 208 00:11:00,470 --> 00:11:01,859 Suze: I asked me if I'm happy. 209 00:11:02,140 --> 00:11:03,010 KT: Are you happy? 210 00:11:03,020 --> 00:11:03,950 Suze: Not quite 211 00:11:03,960 --> 00:11:08,589 KT: alright. She's getting there everybody. So Susie, I purchased $1000 212 00:11:08,590 --> 00:11:11,809 KT: of arc in my Roth ira about a year ago 213 00:11:11,820 --> 00:11:14,120 KT: I believe it was a tech fund that you liked 214 00:11:14,120 --> 00:11:20,400 KT: at the time. It's down less than $500 now. 215 00:11:20,450 --> 00:11:21,980 Suze: It's down almost 50%. 216 00:11:21,980 --> 00:11:22,860 KT: Yeah. 217 00:11:23,550 --> 00:11:23,709 KT: So 218 00:11:23,710 --> 00:11:25,929 Suze: wait you don't even have to go on because really 219 00:11:25,929 --> 00:11:28,560 Suze: she wants to know what to do should she sell 220 00:11:28,559 --> 00:11:28,959 Suze: or what 221 00:11:29,040 --> 00:11:29,460 Suze: to do 222 00:11:29,460 --> 00:11:30,969 KT: or will it go away? 223 00:11:31,550 --> 00:11:34,260 Suze: It's not going to dwindle to nothing. Here's what you 224 00:11:34,260 --> 00:11:39,960 Suze: need to understand Christine and everybody else who purchased a. R. K. K. 225 00:11:40,640 --> 00:11:40,850 KT: Is 226 00:11:40,850 --> 00:11:44,660 Suze: that Kathy would I still think Kathy is absolutely brilliant. 227 00:11:45,340 --> 00:11:49,530 Suze: And the truth of the matter is her method is 228 00:11:49,540 --> 00:11:52,059 Suze: a five year hold 229 00:11:52,740 --> 00:11:55,770 Suze: it is not something that you purchase to go up 230 00:11:55,780 --> 00:11:59,140 Suze: in the next year or down or whatever. It's over 231 00:11:59,140 --> 00:12:01,950 Suze: a five year period of time. 232 00:12:02,340 --> 00:12:04,890 Suze: There are a lot of people who disagree with the 233 00:12:04,890 --> 00:12:08,209 Suze: stocks that she's buying. They were all on her bandwagon 234 00:12:08,210 --> 00:12:10,430 Suze: when when it was the number one E. T. F. 235 00:12:10,440 --> 00:12:14,579 Suze: Out there that just skyrocketed a year ago and now 236 00:12:14,580 --> 00:12:18,140 Suze: that it's down so much they're all abandoning her. Which 237 00:12:18,140 --> 00:12:19,460 Suze: is what people do 238 00:12:19,940 --> 00:12:23,960 Suze: in this industry. I on the other hand I'm sticking 239 00:12:23,970 --> 00:12:24,650 Suze: with her. 240 00:12:25,040 --> 00:12:28,860 Suze: I like her. I like her thought process. I've listened 241 00:12:28,860 --> 00:12:32,000 Suze: to every talk that she has given do I think 242 00:12:32,010 --> 00:12:35,730 Suze: it's going to take a long time for a. R. K. K. 243 00:12:35,730 --> 00:12:39,950 Suze: To return and for you to eventually make money. I do. 244 00:12:40,540 --> 00:12:41,349 Suze: However 245 00:12:41,740 --> 00:12:45,270 Suze: I would hold on to it at this point in time. 246 00:12:45,300 --> 00:12:49,000 Suze: If interest rates continue to go up and certain things 247 00:12:49,000 --> 00:12:52,210 Suze: continue to happen in the United States like it seems 248 00:12:52,210 --> 00:12:55,840 Suze: like it's happening recession may happen whatever it may be 249 00:12:55,850 --> 00:12:59,080 Suze: it's gonna be awhile. But if you can hold on 250 00:12:59,080 --> 00:13:03,809 Suze: for at least five years or longer I think you'll 251 00:13:03,809 --> 00:13:06,360 Suze: be happy that you did. We'll have to see 252 00:13:06,940 --> 00:13:09,100 Suze: I just want to say have I not always said 253 00:13:09,270 --> 00:13:10,150 Suze: money 254 00:13:10,640 --> 00:13:13,510 Suze: that you need within a five year period of time 255 00:13:13,510 --> 00:13:15,700 Suze: less than that is not money that belongs in the 256 00:13:15,700 --> 00:13:19,760 Suze: stock market. Especially into speculative E. T. F. 257 00:13:20,140 --> 00:13:21,160 Suze: Such as arc, 258 00:13:21,540 --> 00:13:24,850 Suze: but I would hold it out of all the things 259 00:13:24,850 --> 00:13:27,480 Suze: that I've told all of you to purchase if you 260 00:13:27,480 --> 00:13:31,800 Suze: averaged that in with Excel E and the other stuff 261 00:13:31,809 --> 00:13:32,850 Suze: that we've done, 262 00:13:33,440 --> 00:13:38,280 Suze: you would overall be okay. Really? You wouldn't be devastated. 263 00:13:38,290 --> 00:13:40,840 Suze: But I still like it and I'm holding on to 264 00:13:40,840 --> 00:13:44,069 Suze: it and that is a totally contrarian viewpoint just so 265 00:13:44,070 --> 00:13:44,550 Suze: you know, 266 00:13:44,550 --> 00:13:44,630 KT: I 267 00:13:45,210 --> 00:13:49,370 Suze: know, but Katie, the truth is, you don't have any E. T. F. 268 00:13:49,380 --> 00:13:53,240 Suze: Do you have many of the stocks that are in 269 00:13:53,240 --> 00:13:55,060 Suze: Kathy woods E. T. F. 270 00:13:55,140 --> 00:13:55,859 Suze: You do? 271 00:13:56,220 --> 00:13:57,230 KT: Okay. 272 00:13:57,240 --> 00:13:59,000 Suze: Alright. Just have 273 00:13:59,000 --> 00:14:03,140 KT: individual stocks. So susie this next email, I'd like you 274 00:14:03,140 --> 00:14:07,270 KT: to really summarize for everybody because it's like three pages 275 00:14:07,270 --> 00:14:10,710 KT: long from Natalie and it has to do with a 276 00:14:10,710 --> 00:14:13,540 KT: car loan. So I'm going to let you take this 277 00:14:13,540 --> 00:14:15,660 KT: over and give everyone a little short. 278 00:14:16,140 --> 00:14:17,430 KT: This is what it's about 279 00:14:17,440 --> 00:14:19,070 Suze: too much for you to handle their cases 280 00:14:19,070 --> 00:14:21,810 KT: way too much. It's like three pages. Everybody, it's her 281 00:14:21,810 --> 00:14:23,560 KT: whole history on this car loan. 282 00:14:23,560 --> 00:14:25,940 Suze: But then why did you choose it? Just out of curiosity? 283 00:14:25,940 --> 00:14:28,800 KT: Because I think you need to give people advice that 284 00:14:28,800 --> 00:14:30,560 KT: are going to get in the same trouble. 285 00:14:30,940 --> 00:14:31,500 Suze: Everyone 286 00:14:31,500 --> 00:14:33,550 KT: gets into this trouble to tell them 287 00:14:33,940 --> 00:14:35,100 KT: what they need to do. 288 00:14:35,110 --> 00:14:39,360 Suze: Okay, so basically this email question is from Natalie 289 00:14:39,740 --> 00:14:43,610 Suze: right? Who at the time in 2000 and 18 was 290 00:14:43,610 --> 00:14:47,570 Suze: 27 years of age and said she was very naive 291 00:14:47,580 --> 00:14:50,420 Suze: and even though she only had a minimum wage job, 292 00:14:50,430 --> 00:14:53,720 Suze: what she did was she went out and bought a 293 00:14:53,720 --> 00:14:58,210 Suze: car that she really couldn't afford. But the car company, 294 00:14:58,210 --> 00:15:01,160 Suze: the loan company said, here you go, 295 00:15:01,340 --> 00:15:04,220 Suze: you can afford it sign on the dotted line and 296 00:15:04,220 --> 00:15:05,060 Suze: she did 297 00:15:05,640 --> 00:15:09,550 Suze: a few years later actually one year later she couldn't 298 00:15:09,550 --> 00:15:14,090 Suze: afford it anymore. And so she turned it in now 299 00:15:14,090 --> 00:15:16,800 Suze: when you buy a car and the car company has 300 00:15:16,800 --> 00:15:19,620 Suze: financed it and you turn it in so I'm going 301 00:15:19,620 --> 00:15:22,430 Suze: to educate all of you right now as well what 302 00:15:22,430 --> 00:15:25,930 Suze: the car company does because you still owe them money 303 00:15:26,240 --> 00:15:29,660 Suze: is they turn around and they sell it 304 00:15:30,540 --> 00:15:34,420 Suze: And it's really sad because normally let's say the car 305 00:15:34,420 --> 00:15:38,650 Suze: was worth $8,000 at the time they sell it usually 306 00:15:38,650 --> 00:15:41,060 Suze: to their used car lot people 307 00:15:41,640 --> 00:15:45,830 Suze: And they'll sell it for $4,000 knowing they can turn 308 00:15:45,830 --> 00:15:49,530 Suze: around and sell it for eight, but then you're responsible 309 00:15:49,540 --> 00:15:52,250 Suze: for the difference between what they sold it for and 310 00:15:52,250 --> 00:15:55,700 Suze: what you owed. And so it's a really horrible way 311 00:15:55,700 --> 00:15:58,640 Suze: to do it just so you know everybody what happened 312 00:15:58,640 --> 00:16:03,840 Suze: to Natalee is that she ended up owing them approximately 313 00:16:03,850 --> 00:16:06,560 Suze: $4,000 after this 314 00:16:07,240 --> 00:16:10,840 Suze: They said pay me $70 a month until it's paid off, 315 00:16:10,850 --> 00:16:13,260 Suze: she made two payments and then stopped, 316 00:16:13,980 --> 00:16:17,920 Suze: then they were harassing her and then what happened is 317 00:16:17,920 --> 00:16:19,550 Suze: she made a deal with them 318 00:16:20,040 --> 00:16:24,690 Suze: To pay them $20 a month, which would take about 319 00:16:24,700 --> 00:16:26,460 Suze: 10 or so years 320 00:16:27,040 --> 00:16:30,260 Suze: for it to be paid off. So here's the bottom 321 00:16:30,260 --> 00:16:31,860 Suze: line in Natalie's question, 322 00:16:32,440 --> 00:16:37,360 Suze: Right. She currently owes them $3,257. 323 00:16:38,040 --> 00:16:38,550 Suze: And 324 00:16:38,940 --> 00:16:43,920 Suze: obviously again heard me speak on the podcast about the 325 00:16:43,920 --> 00:16:47,780 Suze: statute of limitations. And how if she just didn't pay 326 00:16:47,780 --> 00:16:51,050 Suze: for this in four years because she lives in Oregon 327 00:16:51,050 --> 00:16:52,350 Suze: for all auto loans, 328 00:16:52,740 --> 00:16:56,570 Suze: it would be essentially dismissed and nobody could come after her. 329 00:16:57,240 --> 00:17:00,470 Suze: So she knows that since she's been paying it, she 330 00:17:00,470 --> 00:17:02,330 Suze: restarted the time clock. 331 00:17:02,340 --> 00:17:03,100 KT: So the statute 332 00:17:03,100 --> 00:17:07,560 Suze: of limitations is not applying to her. So she's wondering 333 00:17:08,840 --> 00:17:11,859 Suze: should she stop paying for this loan? 334 00:17:12,940 --> 00:17:16,890 Suze: Let it go into default, wait for four years and 335 00:17:16,890 --> 00:17:18,360 Suze: then have it dismissed. 336 00:17:19,440 --> 00:17:23,060 Suze: She does say though she hates not playing by the 337 00:17:23,060 --> 00:17:27,449 Suze: rules because I took responsibility for this. But I also 338 00:17:27,450 --> 00:17:29,669 Suze: just want to blow them off 339 00:17:30,140 --> 00:17:34,000 Suze: forever because she felt that they were praying on her 340 00:17:34,010 --> 00:17:37,270 Suze: when she originally took a loan that she could not afford. 341 00:17:37,640 --> 00:17:42,460 Suze: So the question becomes susie, what should I do? 342 00:17:44,140 --> 00:17:46,960 Suze: So here's what I'm going to tell you Natalie. There 343 00:17:46,970 --> 00:17:48,359 Suze: are times 344 00:17:48,740 --> 00:17:52,459 Suze: when I will tell people to claim bankruptcy, 345 00:17:53,040 --> 00:17:57,470 Suze: there are times when I will tell people to absolutely, 346 00:17:57,480 --> 00:18:01,350 Suze: you know, don't pay it your past, the statute of limitations. 347 00:18:01,740 --> 00:18:05,130 Suze: But these are people that are usually in a situation 348 00:18:05,130 --> 00:18:08,270 Suze: where they don't have the money to pay it or 349 00:18:08,740 --> 00:18:12,320 Suze: it is past the statute of limitations. It's not going 350 00:18:12,320 --> 00:18:14,560 Suze: to go to the original debtor 351 00:18:15,240 --> 00:18:18,740 Suze: because the debtor wants something is charged off. A collection 352 00:18:18,750 --> 00:18:22,300 Suze: agency pays for like two cents on the dollar in 353 00:18:22,300 --> 00:18:25,080 Suze: the hopes that they can get you to pay them something. 354 00:18:25,090 --> 00:18:27,950 Suze: But the original people that you owe the money to 355 00:18:27,960 --> 00:18:28,680 Suze: never get 356 00:18:28,680 --> 00:18:29,899 KT: it, they're 357 00:18:29,900 --> 00:18:34,190 Suze: out. So depending on the situation, I may say don't 358 00:18:34,190 --> 00:18:37,450 Suze: do it, claim bankruptcy. You past the statue of limitations. 359 00:18:37,460 --> 00:18:38,669 Suze: It doesn't matter 360 00:18:39,430 --> 00:18:42,270 Suze: in this situation. Natalie, 361 00:18:43,040 --> 00:18:44,270 Suze: you have been paying it, 362 00:18:44,640 --> 00:18:48,639 Suze: You owe it. You also have a job and you 363 00:18:48,640 --> 00:18:52,879 Suze: are making money. You are able to save money. You 364 00:18:52,880 --> 00:18:56,110 Suze: have money in a Roth ira according to everything that 365 00:18:56,109 --> 00:18:58,810 Suze: you sent in, you have money and starting in a 366 00:18:58,810 --> 00:19:03,129 Suze: savings account and you can do this. So girlfriend, you 367 00:19:03,130 --> 00:19:06,170 Suze: are absolutely to continue to pay this until 368 00:19:06,240 --> 00:19:08,780 Suze: it is paid in full 369 00:19:08,810 --> 00:19:11,370 KT: and you'll be able to sleep at night. Natalie 370 00:19:11,380 --> 00:19:12,450 Suze: Well, this 371 00:19:12,450 --> 00:19:14,580 KT: is playing by the rules. She's doing the right thing 372 00:19:14,580 --> 00:19:14,679 KT: in 373 00:19:15,570 --> 00:19:19,320 Suze: this situation. You're doing the right thing. It doesn't matter 374 00:19:19,330 --> 00:19:22,820 Suze: what they did to you. You are not a victim 375 00:19:22,820 --> 00:19:28,170 Suze: to your circumstances. You created this situation with them voluntarily 376 00:19:28,840 --> 00:19:32,679 Suze: And therefore I don't care if you were 27, I 377 00:19:32,680 --> 00:19:34,060 Suze: don't care your age, 378 00:19:34,750 --> 00:19:37,660 Suze: you knew what you were doing, you couldn't afford 379 00:19:38,340 --> 00:19:39,859 Suze: and you just wanted a new car 380 00:19:40,340 --> 00:19:42,600 Suze: And you got it and now you're going to pay 381 00:19:42,600 --> 00:19:46,540 Suze: for it $20 a month. You can handle it. You 382 00:19:46,540 --> 00:19:47,680 Suze: can handle it, Natalie 383 00:19:47,690 --> 00:19:49,160 KT: and do 384 00:19:49,160 --> 00:19:52,290 Suze: not use this thing as a way to get rid 385 00:19:52,290 --> 00:19:53,860 Suze: of this debt. It's not 386 00:19:53,859 --> 00:19:57,270 KT: it's not a revenge. It's really, it's just not 387 00:19:57,290 --> 00:20:00,640 Suze: right. It's not right on any level. Natalie don't do 388 00:20:00,640 --> 00:20:01,550 Suze: it in this 389 00:20:01,640 --> 00:20:06,740 Suze: particular situation. But again, there are situations where it makes sense. Alright, 390 00:20:06,750 --> 00:20:07,190 Suze: go on. 391 00:20:07,200 --> 00:20:11,450 KT: Okay. Next is from mary. Hi Susie. I have enough 392 00:20:11,460 --> 00:20:13,960 KT: cash to purchase a home outright 393 00:20:14,340 --> 00:20:18,570 KT: Without having to sell my current home immediately. And I 394 00:20:18,570 --> 00:20:22,680 KT: have enough for the remaining year of expenses. I have 395 00:20:22,680 --> 00:20:26,159 KT: a Fico score of 765 script. 396 00:20:26,940 --> 00:20:29,770 KT: Is there any reason it would be wise for me 397 00:20:29,770 --> 00:20:33,320 KT: to take out a mortgage versus paying in cash? I 398 00:20:33,320 --> 00:20:36,629 KT: would pay off the mortgage once I sell my current house. 399 00:20:36,840 --> 00:20:40,250 KT: If paying in cash, then the sale of my current 400 00:20:40,250 --> 00:20:44,760 KT: home would replenish my emergency fund. I have no debt. 401 00:20:45,040 --> 00:20:48,270 KT: I pay off my credit cards in full each month. 402 00:20:48,340 --> 00:20:52,680 KT: I have investments equal to the value of the home. 403 00:20:52,680 --> 00:20:56,900 KT: I wish to purchase those would not be touched at all. 404 00:20:56,970 --> 00:21:00,270 KT: Thanks for your great advice mary, what 405 00:21:00,270 --> 00:21:01,070 Suze: would you tell her? 406 00:21:01,350 --> 00:21:03,990 KT: I'd say just by the home mary, don't get them 407 00:21:03,990 --> 00:21:06,060 KT: or don't do anything. Just buy it, 408 00:21:06,140 --> 00:21:07,630 KT: pay for it out. Right? 409 00:21:07,640 --> 00:21:09,380 Suze: You have to tell her why? All right? 410 00:21:09,380 --> 00:21:10,560 KT: Because you can 411 00:21:10,560 --> 00:21:12,260 Suze: know because mary, 412 00:21:12,740 --> 00:21:14,770 Suze: you already have exposure 413 00:21:15,440 --> 00:21:17,590 Suze: equal to the value of your home. You just said 414 00:21:17,590 --> 00:21:20,450 Suze: so invested in the stock market 415 00:21:20,840 --> 00:21:24,820 Suze: that obviously is going all over the place and could 416 00:21:24,820 --> 00:21:26,859 Suze: seriously continue down here. 417 00:21:27,540 --> 00:21:28,770 Suze: And therefore, 418 00:21:29,240 --> 00:21:34,070 Suze: if I were you, I would buy the house outright. 419 00:21:34,080 --> 00:21:36,400 Suze: Especially because interest rates 420 00:21:36,940 --> 00:21:41,340 Suze: to to finance it are what, 5, 5.5, maybe 6% 421 00:21:41,340 --> 00:21:42,760 Suze: by the time you do this, 422 00:21:43,740 --> 00:21:46,330 Suze: Even after a tax write off, let's say you were 423 00:21:46,330 --> 00:21:51,440 Suze: in the 50% tax bracket, that would still be like 3% 424 00:21:51,450 --> 00:21:56,360 Suze: after taxes. So that's still a high interest rate that 425 00:21:56,359 --> 00:21:57,560 Suze: you would be paying. 426 00:21:58,240 --> 00:22:02,010 Suze: So why not just go into it right now, pay 427 00:22:02,010 --> 00:22:05,159 Suze: it for cash. We do not know what's going to happen. 428 00:22:05,170 --> 00:22:08,020 Suze: Will you be able to sell your other home? Well, 429 00:22:08,020 --> 00:22:09,740 Suze: you know, we don't know what's going to happen in 430 00:22:09,740 --> 00:22:12,940 Suze: the future. And here's the one thing everybody that we 431 00:22:12,940 --> 00:22:15,160 Suze: don't know when we take out a mortgage. 432 00:22:15,840 --> 00:22:18,270 Suze: Do we have the ability to continue to pay it? 433 00:22:19,140 --> 00:22:21,960 Suze: Just because you have the ability to pay it today 434 00:22:22,540 --> 00:22:23,770 Suze: does not mean 435 00:22:24,260 --> 00:22:27,270 Suze: that you necessarily have the ability to pay it for 436 00:22:27,280 --> 00:22:28,550 Suze: a long time. 437 00:22:29,140 --> 00:22:31,990 Suze: Things can happen? You can get sick, You can get 438 00:22:31,990 --> 00:22:36,010 Suze: in an accident, you lose a job, things can happen 439 00:22:36,010 --> 00:22:39,480 Suze: and your income stops and even though you have an 440 00:22:39,480 --> 00:22:40,859 Suze: emergency fund. 441 00:22:41,840 --> 00:22:44,770 Suze: What if it lasted longer than a year or so? 442 00:22:44,780 --> 00:22:48,859 Suze: So do me a favor, Do yourself a favor. 443 00:22:49,440 --> 00:22:51,810 Suze: Just pay for it outright, write a check, 444 00:22:51,820 --> 00:22:52,270 KT: check, 445 00:22:52,730 --> 00:22:56,610 Suze: check. It feels so good to do that. So make 446 00:22:56,609 --> 00:23:01,130 Suze: your life easy and just pay cash and consider what 447 00:23:01,130 --> 00:23:04,560 Suze: a blessing it is that you can do that 448 00:23:05,040 --> 00:23:08,270 Suze: because there's very few people that can do that. 449 00:23:09,040 --> 00:23:12,860 Suze: You know 95% of the people, I'm sure always have 450 00:23:12,859 --> 00:23:15,710 Suze: to take out a mortgage. So you're one of the 451 00:23:15,710 --> 00:23:18,840 Suze: lucky ones. Stay. Lucky Mary 452 00:23:18,850 --> 00:23:24,490 KT: good. This is from Susan Hi Susie. I recently started 453 00:23:24,490 --> 00:23:27,619 KT: following you and I listened to one of your podcast 454 00:23:27,619 --> 00:23:28,659 KT: podcast 455 00:23:28,840 --> 00:23:31,270 KT: regarding the benefits of a trust 456 00:23:31,440 --> 00:23:36,010 KT: versus a joint tenant. Many years ago my parents refinanced 457 00:23:36,010 --> 00:23:39,490 KT: their home and in order to help them finance. I 458 00:23:39,490 --> 00:23:43,030 KT: was added on the loan. I was also added to 459 00:23:43,030 --> 00:23:46,950 KT: the title as a joint tenant. What are the consequences 460 00:23:46,950 --> 00:23:50,960 KT: if we now change the title back to my parents 461 00:23:51,140 --> 00:23:54,170 KT: Revocable Trust which they just created 462 00:23:54,340 --> 00:23:57,300 KT: and they list me as a beneficiary. 463 00:23:57,500 --> 00:24:01,730 Suze: Susan. The first thing you need to understand is just 464 00:24:01,740 --> 00:24:06,160 Suze: because your parents created a living revocable trust 465 00:24:07,240 --> 00:24:09,850 Suze: that then listed you as a beneficiary. 466 00:24:10,240 --> 00:24:14,260 Suze: If they have not changed the title of the home 467 00:24:14,840 --> 00:24:18,949 Suze: from your names into the title of the Trust, 468 00:24:19,840 --> 00:24:21,760 Suze: it's not in the trust 469 00:24:22,840 --> 00:24:26,770 Suze: and it would be very dangerous to change it into 470 00:24:26,770 --> 00:24:30,389 Suze: the title of the trust. If the trust doesn't include 471 00:24:30,400 --> 00:24:33,850 Suze: your name on it. And the reason being 472 00:24:34,510 --> 00:24:38,459 Suze: the bank refinance this house for your parents 473 00:24:38,840 --> 00:24:39,859 Suze: because of you 474 00:24:40,840 --> 00:24:44,169 Suze: they couldn't qualify for it on their own. 475 00:24:44,740 --> 00:24:49,359 Suze: So they needed you on the loan to guarantee the loan. 476 00:24:50,140 --> 00:24:55,060 Suze: They also obviously wanted you on the title of the house. 477 00:24:55,640 --> 00:24:59,359 Suze: If there is still a mortgage on that house, 478 00:25:00,340 --> 00:25:02,950 Suze: then you have to be very careful here 479 00:25:03,340 --> 00:25:08,170 Suze: because before you take your name off of the title, 480 00:25:08,640 --> 00:25:12,520 Suze: you've got to contact your bank and ask them if 481 00:25:12,520 --> 00:25:13,560 Suze: it's okay 482 00:25:14,040 --> 00:25:17,010 Suze: because if it's not okay with them and you go 483 00:25:17,010 --> 00:25:18,449 Suze: ahead and you do it, 484 00:25:18,840 --> 00:25:20,460 Suze: they have the right 485 00:25:21,140 --> 00:25:26,280 Suze: to absolutely call the loan so that it's due immediately. 486 00:25:26,510 --> 00:25:28,960 Suze: If there wasn't a mortgage on the home 487 00:25:29,840 --> 00:25:33,119 Suze: then it's not that big of a deal. Truthfully then 488 00:25:33,119 --> 00:25:36,990 Suze: you would simply go down to the county recorder's office 489 00:25:37,000 --> 00:25:39,859 Suze: and file a quick claim deed. But 490 00:25:40,340 --> 00:25:43,750 Suze: if that's not the situation and there is a mortgage, 491 00:25:43,760 --> 00:25:47,470 Suze: you first have to do what you have to contact 492 00:25:47,470 --> 00:25:49,460 Suze: your lender and get their permission. 493 00:25:50,540 --> 00:25:53,169 Suze: Let's say there's not a mortgage on it. 494 00:25:53,770 --> 00:25:56,020 Suze: Then all you do is you do the quick claim 495 00:25:56,020 --> 00:25:56,460 Suze: deed 496 00:25:56,840 --> 00:26:00,050 Suze: and then your parents take that deed 497 00:26:00,540 --> 00:26:04,450 Suze: down wear to a title company and change the title 498 00:26:04,450 --> 00:26:09,170 Suze: from their individual names into the title of the trust. 499 00:26:09,180 --> 00:26:10,910 Suze: Just that simple 500 00:26:11,109 --> 00:26:12,810 KT: and make you the beneficiary. 501 00:26:12,810 --> 00:26:15,980 Suze: Well she already is the beneficiary. But you just have 502 00:26:15,980 --> 00:26:18,449 Suze: to be careful. Everybody when 503 00:26:18,640 --> 00:26:20,530 Suze: you do a trust you want to make sure that 504 00:26:20,530 --> 00:26:22,359 Suze: it's funded that you transfer 505 00:26:22,440 --> 00:26:27,210 Suze: the asset into the trust. Otherwise it's an empty trust. 506 00:26:27,220 --> 00:26:29,920 Suze: And you also want to be careful with putting your 507 00:26:29,920 --> 00:26:34,050 Suze: kids names on your homes as joint tenancy. 508 00:26:34,640 --> 00:26:36,820 Suze: There's all kinds of ramifications, 509 00:26:36,830 --> 00:26:38,230 KT: rules and regulations. 510 00:26:38,230 --> 00:26:40,570 Suze: Rules and regulations. Katie 511 00:26:40,580 --> 00:26:41,930 KT: that wraps in Susan. 512 00:26:41,930 --> 00:26:43,910 Suze: Are you ready to garden? 513 00:26:43,920 --> 00:26:44,959 KT: I am. 514 00:26:45,440 --> 00:26:45,690 Suze: I'm 515 00:26:45,690 --> 00:26:46,550 KT: excited. 516 00:26:47,340 --> 00:26:48,719 Suze: I am very 517 00:26:48,720 --> 00:26:49,470 KT: excited. 518 00:26:49,470 --> 00:26:52,649 Suze: You guys. You have no idea how Katie talks about 519 00:26:52,660 --> 00:26:57,270 Suze: what she's going to plant her soil. Everything. 520 00:26:57,640 --> 00:27:00,310 Suze: She talks about it at least four hours a day. 521 00:27:00,310 --> 00:27:00,470 Suze: I'm 522 00:27:00,470 --> 00:27:01,810 KT: becoming a farmer. 523 00:27:01,820 --> 00:27:03,310 Suze: You are a little farmer. 524 00:27:03,320 --> 00:27:04,190 KT: I love it. But 525 00:27:04,190 --> 00:27:08,070 Suze: it's also so good to eat what she grows. Alright, everybody. 526 00:27:08,080 --> 00:27:10,270 Suze: Until sunday. 527 00:27:10,740 --> 00:27:13,230 Suze: There's really only one thing that we want them to remember. 528 00:27:13,230 --> 00:27:14,320 Suze: What is it, Katie? 529 00:27:14,330 --> 00:27:18,419 KT: We want you all to be safe. Super strong and 530 00:27:18,420 --> 00:27:19,370 KT: very 531 00:27:19,369 --> 00:27:23,190 Suze: secure. Alright, See you sunday by 532 00:27:37,640 --> 00:27:38,240 Suze: all right.