1 00:00:08,600 --> 00:00:14,430 KT: April 2nd, 2026. Welcome to the Women and Money podcast 2 00:00:15,090 --> 00:00:17,239 KT: and everyone smart enough to listen. 3 00:00:17,370 --> 00:00:19,909 Suze: Who did you play an April Fool's joke on yesterday? 4 00:00:20,010 --> 00:00:20,020 KT: You. 5 00:00:24,110 --> 00:00:24,860 Suze: Should we tell everybody 6 00:00:25,159 --> 00:00:25,979 Suze: what you did or no? 7 00:00:27,120 --> 00:00:30,940 KT: No way. 8 00:00:31,000 --> 00:00:34,000 KT: April Fools is between you and I, and it was April Fools. 9 00:00:34,400 --> 00:00:37,119 Suze: It wasn't very nice, and I fell for it. 10 00:00:37,200 --> 00:00:37,720 KT: It was funny. 11 00:00:38,580 --> 00:00:42,818 KT: So this is the Ask Suze and KT Anything podcast, 12 00:00:43,560 --> 00:00:45,119 KT: the favorite one of the two we do. 13 00:00:45,119 --> 00:00:48,240 Suze: And what a great time did we have in New 14 00:00:48,240 --> 00:00:48,909 Suze: York City. 15 00:00:49,110 --> 00:00:52,199 KT: Oh my God. Well, I'll tell you, Suze said to 16 00:00:52,200 --> 00:00:52,959 KT: me something 17 00:00:53,400 --> 00:00:56,040 KT: over our coffee this morning she said I'm looking at 18 00:00:56,040 --> 00:01:01,200 KT: apartments in New York. I said no, we did that already. Next. 19 00:01:02,279 --> 00:01:04,360 Suze: I don't know. All of a sudden I've been thinking... 20 00:01:04,360 --> 00:01:07,720 KT: I wouldn't mind going more often, but I don't think 21 00:01:07,720 --> 00:01:09,660 KT: I want another home in New York. 22 00:01:09,910 --> 00:01:10,959 Suze: Just a little tiny. 23 00:01:11,069 --> 00:01:13,599 KT: No, no, no, we had a little tiny, we had 24 00:01:13,599 --> 00:01:18,199 KT: two relatively small, I wouldn't say tinies, we had two 25 00:01:18,199 --> 00:01:22,180 KT: relatively small apartments once at the same time, remember that? 26 00:01:22,519 --> 00:01:22,930 Suze: Yeah. 27 00:01:23,160 --> 00:01:27,279 KT: So been there, done that. Next, OK, are we ready? 28 00:01:27,389 --> 00:01:28,339 KT: So I put together 29 00:01:29,000 --> 00:01:32,760 KT: A very interesting podcast today, Susie. I hope you like 30 00:01:32,760 --> 00:01:34,629 KT: it called Who's Right? 31 00:01:35,449 --> 00:01:36,289 Suze: Why would you do that? 32 00:01:36,290 --> 00:01:43,029 Suze: Well, I know exactly why you did that, because part 33 00:01:43,150 --> 00:01:49,680 Suze: of the April Fool's Day joke boiled down to who's 34 00:01:49,690 --> 00:01:53,519 Suze: right between the two of us, and it was, uh, 35 00:01:53,610 --> 00:01:56,370 Suze: and because we have a saying, what's our saying, KT. 36 00:01:57,010 --> 00:01:57,599 KT: KT's always right. 37 00:01:57,599 --> 00:02:01,809 Suze: But this time she was purposely wrong, and I was like, 38 00:02:01,930 --> 00:02:04,209 Suze: but no, you're always right, and that's why you did this, 39 00:02:04,290 --> 00:02:04,889 Suze: isn't it? 40 00:02:05,129 --> 00:02:07,209 KT: Yes, and it's right, but it's a good one, I 41 00:02:07,209 --> 00:02:08,330 KT: think you'll enjoy it. 42 00:02:08,690 --> 00:02:11,850 KT: So we're gonna kind of, we're not stumping Suze. Larry 43 00:02:11,850 --> 00:02:15,490 KT: King used to try to trick Suze with his call-in 44 00:02:15,490 --> 00:02:18,399 KT: questions and stump her all the time, and she was 45 00:02:18,399 --> 00:02:22,449 KT: on that show almost what, 30 times, and he could 46 00:02:22,449 --> 00:02:26,009 KT: never ever find a question she did not know the 47 00:02:26,008 --> 00:02:28,049 KT: answer to, and I believe you'll know 48 00:02:28,279 --> 00:02:30,809 KT: the answer to all of these, but I'm curious to 49 00:02:30,809 --> 00:02:31,668 KT: see who you. 50 00:02:31,710 --> 00:02:34,359 Suze: But think he sure stumped me with his jokes that 51 00:02:34,360 --> 00:02:38,130 Suze: he told me. So it was live. Larry King Live 52 00:02:38,130 --> 00:02:43,000 Suze: was live TV, and when they went to commercials, Larry 53 00:02:43,000 --> 00:02:46,239 Suze: would love to tell me dirty jokes. He just would, 54 00:02:46,479 --> 00:02:47,639 Suze: and I would laugh. 55 00:02:48,210 --> 00:02:49,038 KT: But she didn't know what they meant. 56 00:02:49,729 --> 00:02:52,690 Suze: I had no idea. So back then my mama was 57 00:02:52,690 --> 00:02:55,169 Suze: still alive, and we would come back and I would 58 00:02:55,169 --> 00:02:59,529 Suze: call my mom. I'd say, Mom, during the commercial, Larry 59 00:02:59,529 --> 00:03:02,330 Suze: King told me this joke, and I told her the joke. 60 00:03:02,380 --> 00:03:05,770 Suze: I said, But I didn't get it. And my, my 61 00:03:05,770 --> 00:03:09,490 Suze: mom did, and she explained it to me every single time. 62 00:03:09,610 --> 00:03:13,429 Suze: All right, KT, ready? Let's do the podcast. 63 00:03:13,649 --> 00:03:15,630 KT: OK, my first, who's right, 64 00:03:15,899 --> 00:03:19,479 KT: is about margin account madness. 65 00:03:20,199 --> 00:03:23,279 KT: I saw someone in the community app say that buying 66 00:03:23,279 --> 00:03:28,429 KT: on margin is dangerous, and Suze, you agreed, saying it 67 00:03:28,429 --> 00:03:33,000 KT: was just plain stupid, but I just opened an account 68 00:03:33,000 --> 00:03:36,839 KT: at my brokerage firm and my adviser told me I 69 00:03:36,839 --> 00:03:39,559 KT: should absolutely sign up for margin. 70 00:03:40,050 --> 00:03:42,649 KT: Even if I don't plan to use it right away, 71 00:03:43,009 --> 00:03:48,270 KT: so now I'm confused. Is having margin access smart financial flexibility, 72 00:03:48,619 --> 00:03:54,039 KT: or am I just setting myself up for trouble? Who's right, Suze, 73 00:03:54,130 --> 00:03:55,850 KT: my advisor or you? 74 00:03:55,970 --> 00:03:59,199 Suze: Here's the problem, KT. The mere fact that he's even 75 00:03:59,199 --> 00:04:00,449 Suze: asking that question, 76 00:04:00,723 --> 00:04:03,322 Suze: shows he doesn't have a clue about margin because if 77 00:04:03,322 --> 00:04:06,843 Suze: you are a sophisticated investor you would absolutely know what 78 00:04:06,843 --> 00:04:08,822 Suze: margin is and how dangerous it is. 79 00:04:08,822 --> 00:04:09,221 KT: I don't know what it is. 80 00:04:09,221 --> 00:04:13,483 Suze: Because you're not a sophisticated investor. However, wait, KT, the 81 00:04:13,483 --> 00:04:17,442 Suze: mere fact that this person is asking that question says 82 00:04:17,442 --> 00:04:21,263 Suze: to me you absolutely should not do it and 83 00:04:21,395 --> 00:04:25,196 Suze: why your broker would be even telling you to do 84 00:04:25,196 --> 00:04:29,156 Suze: it is beyond me. So KT just said she doesn't know what... 85 00:04:29,156 --> 00:04:31,914 KT: Tell us what is a margin account. 86 00:04:32,315 --> 00:04:36,395 Suze: So, a margin is very simple. You're borrowing money from 87 00:04:36,395 --> 00:04:40,555 Suze: the brokerage firm to give you the ability to buy 88 00:04:40,555 --> 00:04:41,695 Suze: more stock, 89 00:04:42,549 --> 00:04:46,630 Suze: then probably money you have to buy on your own 90 00:04:46,869 --> 00:04:50,149 Suze: and for that loan they charge you an interest rate. 91 00:04:50,230 --> 00:04:53,230 Suze: Now that sounds like a great deal. Let's just say 92 00:04:53,230 --> 00:04:57,950 Suze: you have $10,000 that you want to invest in XYZ 93 00:04:57,950 --> 00:05:01,570 Suze: stock and the stock is at $10 a share. 94 00:05:02,529 --> 00:05:07,950 Suze: Now, normally, you'd only be able to buy 1,000 shares, 95 00:05:08,488 --> 00:05:12,988 Suze: but your brokerage firm, because you signed up for margin, says, hey, 96 00:05:13,250 --> 00:05:16,969 Suze: I'll lend you $10,000. 97 00:05:17,519 --> 00:05:22,709 Suze: And guess what? That means you can buy 2,000 shares, 98 00:05:22,959 --> 00:05:25,570 Suze: and you really think that this stock is gonna go 99 00:05:25,570 --> 00:05:29,380 Suze: up and you think, yeah, if I have 2,000 shares, 100 00:05:29,470 --> 00:05:32,808 Suze: I can make twice the amount of money. So let's 101 00:05:32,809 --> 00:05:33,609 Suze: say that's true. 102 00:05:34,480 --> 00:05:39,200 Suze: Let's say it goes from 10 to 15, it's now 103 00:05:39,200 --> 00:05:43,479 Suze: gone up $5 a share and you decide to sell. 104 00:05:44,459 --> 00:05:49,190 Suze: If you had just purchased 1,000 shares, KT, you would 105 00:05:49,190 --> 00:05:54,690 Suze: have $15,000 after you sold, or you would have made 106 00:05:54,690 --> 00:06:00,390 Suze: $5,000 on your $10,000 investment, maybe a short period of time, 107 00:06:00,470 --> 00:06:03,750 Suze: that's a 50% return on your money, not bad. 108 00:06:04,769 --> 00:06:12,308 Suze: But what you did instead is you bought 2,000 shares, 109 00:06:13,170 --> 00:06:16,510 Suze: because they gave you the 10,000 to do so. So, 110 00:06:16,529 --> 00:06:19,589 Suze: 2,000 shares at 15 111 00:06:20,100 --> 00:06:27,820 Suze: is $30,000. You sell, you pay back the broker $10,000 112 00:06:27,899 --> 00:06:35,339 Suze: now you have $20,000. So rather than making just $5,000 113 00:06:35,339 --> 00:06:40,058 Suze: on your money, you now made $10,000 on a $10,000 114 00:06:40,070 --> 00:06:40,678 Suze: really 115 00:06:41,488 --> 00:06:46,299 Suze: investment of your own money, which is almost 100% return 116 00:06:46,299 --> 00:06:49,260 Suze: on your money after, of course, you've paid interest on 117 00:06:49,260 --> 00:06:53,880 Suze: the $10,000 that you borrowed. That's why people do margin. However, 118 00:06:55,250 --> 00:07:01,250 Suze: Ready, everyone? Stocks just don't go up. Have we not 119 00:07:01,250 --> 00:07:04,010 Suze: seen what happened to the stock market and what's gone 120 00:07:04,010 --> 00:07:06,750 Suze: up and down and all over the place and really 121 00:07:06,750 --> 00:07:09,368 Suze: obliterated in many areas? 122 00:07:10,140 --> 00:07:12,910 Suze: Let's say it doesn't go up, it goes from 10 123 00:07:12,910 --> 00:07:15,989 Suze: to 5. Let's say that's true. 124 00:07:16,630 --> 00:07:19,869 Suze: If you had 1,000 shares and now you sold at 5, 125 00:07:20,470 --> 00:07:26,609 Suze: you'd have $5,000 you lost half of your money. OK. However, 126 00:07:26,910 --> 00:07:32,029 Suze: if you borrow $10,000 and now what happens is you 127 00:07:32,029 --> 00:07:36,309 Suze: have 2,000 shares, and it goes to 5. 128 00:07:37,640 --> 00:07:42,500 Suze: Now what do you have? You have $10,000 that you sold, 129 00:07:42,679 --> 00:07:48,190 Suze: but guess what? You have $10,000 after you've sold 2,000 shares. 130 00:07:48,279 --> 00:07:51,839 Suze: KT at $5 a share is $10,000 but you owe 131 00:07:51,839 --> 00:07:57,940 Suze: the broker $10,000 and some and interest. Now you lost 132 00:07:58,239 --> 00:08:01,399 Suze: all of your money. But here's the thing. 133 00:08:02,299 --> 00:08:06,149 Suze: The brokerage firm is not going to allow you to 134 00:08:06,149 --> 00:08:10,929 Suze: get that low. There's something called a margin call that 135 00:08:10,929 --> 00:08:14,750 Suze: if the stock starts to go down and they think 136 00:08:14,750 --> 00:08:18,899 Suze: that there isn't enough money in your account after you 137 00:08:18,899 --> 00:08:23,829 Suze: sell to get back their $10,000 they're gonna call, they're 138 00:08:23,829 --> 00:08:25,049 Suze: gonna want more money 139 00:08:25,679 --> 00:08:27,750 Suze: for you to be able to stay on margin, you 140 00:08:27,750 --> 00:08:29,910 Suze: can't come up with that, or if it continues to 141 00:08:29,910 --> 00:08:32,070 Suze: go down, or they're gonna sell the stock, and you're 142 00:08:32,070 --> 00:08:33,909 Suze: not gonna have any money, it's gonna be gone. 143 00:08:34,979 --> 00:08:35,700 Suze: Margin... 144 00:08:35,700 --> 00:08:37,270 KT: Is high risk... 145 00:08:37,739 --> 00:08:41,900 Suze: The highest risk that is out there and the most 146 00:08:41,900 --> 00:08:47,460 Suze: stupid thing in my opinion anybody can do. Have I 147 00:08:47,460 --> 00:08:52,940 Suze: ever in my entire career invested on margin? I have not, 148 00:08:52,979 --> 00:08:55,159 Suze: and I never would, which is why, 149 00:08:55,349 --> 00:08:59,390 Suze: you don't know about it because we've never done it. 150 00:08:59,510 --> 00:09:01,020 Suze: All right, KT, next question. 151 00:09:01,349 --> 00:09:07,179 KT: The title is Gas Prices versus Moving Out. OK, listen up, Suze. 152 00:09:07,520 --> 00:09:11,309 KT: Oil prices have been all over the place, but gas 153 00:09:11,309 --> 00:09:15,960 KT: prices where I live are definitely not going down. 154 00:09:16,409 --> 00:09:20,549 KT: I drive two hours a day for work, 120 miles 155 00:09:20,549 --> 00:09:25,619 KT: each way. Gas is costing me $5.60 a gallon. 156 00:09:26,489 --> 00:09:26,890 Suze: Oh, he must live in California. 157 00:09:27,150 --> 00:09:31,330 KT: He's from California. I get 22 miles a gallon. It 158 00:09:31,330 --> 00:09:34,530 KT: is costing me about $60 159 00:09:34,625 --> 00:09:38,164 KT: a day and oh yeah Suze, my car has almost 160 00:09:38,215 --> 00:09:41,034 KT: 200,000 miles on it. 161 00:09:42,364 --> 00:09:42,803 Suze: Wait, did he say $60 a day? 162 00:09:42,804 --> 00:09:47,554 KT: Yeah, for him to drive to and from work. 163 00:09:47,625 --> 00:09:49,544 Suze: Is it even worth it for him to work? All right, go on. 164 00:09:49,544 --> 00:09:52,994 KT: All right, so he said, my mom says just wait, 165 00:09:53,375 --> 00:09:56,984 KT: gas prices will come down soon and that I should 166 00:09:56,984 --> 00:09:59,585 KT: look at how much money I'm saving on rent. 167 00:10:00,250 --> 00:10:02,489 KT: He lives with his mom, all right, I don't know 168 00:10:02,489 --> 00:10:04,829 KT: if um if I said that yet, but he's living 169 00:10:04,830 --> 00:10:07,869 KT: with his mom. They share utilities and food. 170 00:10:08,520 --> 00:10:10,839 KT: So who's right? Do I stick it out and wait 171 00:10:10,840 --> 00:10:14,830 KT: for gas prices to drop, or is it smarter, Suze, 172 00:10:14,919 --> 00:10:18,479 KT: for me to move now closer to my job and 173 00:10:18,479 --> 00:10:22,539 KT: cut my daily costs? My mom listens to your podcast 174 00:10:22,559 --> 00:10:26,460 KT: every week, and I know she will listen to you. 175 00:10:26,919 --> 00:10:34,440 Suze: Mama, listen to me, sweetheart. Your son is paying $60 176 00:10:34,440 --> 00:10:36,640 Suze: a day for gasoline. 177 00:10:37,330 --> 00:10:44,368 Suze: That is $300 a week. That is $1,200 a month. 178 00:10:45,190 --> 00:10:48,099 Suze: That is depending on how long he's gonna be doing 179 00:10:48,099 --> 00:10:50,659 Suze: this or gas prices are up there, even if they 180 00:10:50,659 --> 00:10:55,839 Suze: came down to $3. Are you kidding me? He's spending 181 00:10:56,099 --> 00:11:01,979 Suze: close to, with oil maintenance and everything, probably close to 182 00:11:01,979 --> 00:11:08,140 Suze: $16,000 or $17,000 a year to spend 183 00:11:09,030 --> 00:11:13,229 Suze: four hours a day in his car. 184 00:11:13,530 --> 00:11:14,289 KT: He could get a part-time job. 185 00:11:14,429 --> 00:11:20,829 Suze: Now wait a minute. Also 200,000 miles on his car. 186 00:11:20,830 --> 00:11:22,630 KT: How long is that car gonna last? 187 00:11:22,789 --> 00:11:27,150 Suze: What are you going to do, Mama, when his car 188 00:11:27,159 --> 00:11:28,510 Suze: breaks down? 189 00:11:29,210 --> 00:11:35,419 Suze: Also, he could easily just move closer to work somewhere, 190 00:11:35,679 --> 00:11:39,199 Suze: get himself a little studio, or maybe, I don't know 191 00:11:39,200 --> 00:11:41,559 Suze: how young he will share it with lots of people, 192 00:11:41,640 --> 00:11:47,200 Suze: whatever it may be, but I would absolutely stop this 193 00:11:47,200 --> 00:11:53,119 Suze: right now, especially because he probably at that kind of 194 00:11:53,119 --> 00:11:56,500 Suze: money could find something somewhere 195 00:11:57,250 --> 00:12:01,119 Suze: to live, but he's still paying utilities. He's still buying, 196 00:12:01,169 --> 00:12:03,569 Suze: he's still doing all the stuff that he's doing, living 197 00:12:03,570 --> 00:12:07,770 Suze: with you. Now, is it possible, mama, you just wanna 198 00:12:07,770 --> 00:12:09,010 Suze: keep him at home with you? 199 00:12:10,359 --> 00:12:11,979 Suze: Do you think that's true, KT? 200 00:12:12,559 --> 00:12:16,789 KT: Probably right. He sounds like a young man. He's obviously 201 00:12:16,789 --> 00:12:21,000 KT: single and his mom knows he's, she wants him to 202 00:12:21,000 --> 00:12:22,789 KT: know I'm saving you money... 203 00:12:22,840 --> 00:12:25,840 Suze: And I'm sure you are, but guess what? You're not 204 00:12:25,840 --> 00:12:29,880 Suze: saving his back. You're not saving really any money for 205 00:12:29,880 --> 00:12:34,159 Suze: him because that's a lot of money. So Mama, let 206 00:12:34,159 --> 00:12:37,109 Suze: your little baby boy go. Let him see 207 00:12:38,250 --> 00:12:41,979 Suze: if in fact he can find something closer to work, 208 00:12:42,219 --> 00:12:44,780 Suze: how much it would be, and then figure it out 209 00:12:44,780 --> 00:12:47,840 Suze: from there. But bottom line, number one, thank you very 210 00:12:47,840 --> 00:12:50,539 Suze: much for listening to me every week. Don't stop now 211 00:12:50,539 --> 00:12:52,559 Suze: that I said this to you, by the way, right? 212 00:12:52,659 --> 00:12:56,098 Suze: But if it were me and my son, I would 213 00:12:56,099 --> 00:12:59,880 Suze: want him to move closer to work because 214 00:13:00,409 --> 00:13:03,849 Suze: I don't know. Being on the road that much isn't good. Uh, 215 00:13:03,929 --> 00:13:06,130 Suze: it's just not good. All right, next, KT. 216 00:13:06,359 --> 00:13:08,309 KT: And the price of gas out there is crazy. 217 00:13:08,960 --> 00:13:10,349 Suze: Even like it's crazy now... 218 00:13:10,349 --> 00:13:11,119 KT: It's crazy everywhere, but California... 219 00:13:12,359 --> 00:13:16,559 Suze: KT, here's the thing that he has to learn about this, 220 00:13:16,609 --> 00:13:21,689 Suze: and so do you, Mama. There's a saying that gasoline 221 00:13:21,690 --> 00:13:24,010 Suze: prices at the tank, like when you go in at 222 00:13:24,010 --> 00:13:27,549 Suze: the station, right, go up like a rocket but come 223 00:13:27,549 --> 00:13:27,650 Suze: down 224 00:13:27,950 --> 00:13:32,559 Suze: like a feather, and what that means is they shoot 225 00:13:32,559 --> 00:13:36,960 Suze: up way up even faster than the price of oil 226 00:13:36,960 --> 00:13:41,669 Suze: is going up. But when oil comes down, they don't 227 00:13:41,679 --> 00:13:44,830 Suze: come down as fast. They come down like a feather, 228 00:13:45,119 --> 00:13:49,718 Suze: so it can be months before you see it, yeah, 229 00:13:49,869 --> 00:13:52,760 Suze: you see it correcting itself, right? So go on, KT next. 230 00:13:53,030 --> 00:13:55,830 KT: OK, so my next who's right is... 231 00:13:55,840 --> 00:13:57,130 Suze: That's kind of like me. 232 00:14:00,330 --> 00:14:02,169 Suze: I can, I can get mad and I can like 233 00:14:02,169 --> 00:14:04,289 Suze: just shoot up like a rocket, can't I? 234 00:14:04,419 --> 00:14:05,539 KT: Yes, you do. 235 00:14:06,159 --> 00:14:08,869 Suze: But I tend not to come down like a feather either. 236 00:14:09,250 --> 00:14:10,890 Suze: I kind of go anyway. Go on. 237 00:14:10,890 --> 00:14:15,530 KT: So my next who's right question is about Roth's Roth 238 00:14:15,530 --> 00:14:17,858 KT: IRA emergency strategies. 239 00:14:18,919 --> 00:14:18,996 Suze: Pop quizzy. 240 00:14:18,996 --> 00:14:20,530 KT: All right, I'll give it a shot. I'll give it 241 00:14:20,530 --> 00:14:23,530 KT: a shot. All right, so the question is from our 242 00:14:23,530 --> 00:14:27,710 KT: good old TSA workers. I am a TSA worker. 243 00:14:28,145 --> 00:14:31,325 KT: And when I get a paycheck, I take home about 244 00:14:31,325 --> 00:14:34,284 KT: $1,800 every two weeks. 245 00:14:34,445 --> 00:14:35,445 Suze: That's all they make? 246 00:14:35,604 --> 00:14:39,325 KT: Well, it depends probably where they're working, but it's, I 247 00:14:39,325 --> 00:14:41,325 KT: don't think they make a lot, and they have such 248 00:14:41,325 --> 00:14:42,364 KT: an important job, 249 00:14:42,525 --> 00:14:46,005 Suze: You know, that's like a $50,000 a year job. But anyway, go on. 250 00:14:46,005 --> 00:14:49,445 KT: It's an important job. Last time when this happened, I 251 00:14:49,445 --> 00:14:53,405 KT: took cash advances on all my credit cards. They are 252 00:14:53,405 --> 00:14:55,765 KT: still maxed out to this day. 253 00:14:56,349 --> 00:14:59,869 KT: So I decided rather than taking money to pay down 254 00:14:59,869 --> 00:15:02,789 KT: the credit card debt I should save as much as 255 00:15:02,789 --> 00:15:05,429 KT: I could so I'll have money to pay the bills 256 00:15:05,429 --> 00:15:07,059 KT: if it ever happened again, 257 00:15:08,070 --> 00:15:09,270 Suze: It did. All right, so go on. 258 00:15:09,270 --> 00:15:12,760 KT: And then, then he said, I get that we are 259 00:15:12,760 --> 00:15:15,789 KT: going to get back pay, but last time it took 260 00:15:15,789 --> 00:15:16,989 KT: a month to get it. 261 00:15:17,190 --> 00:15:20,659 Suze: Are you kidding me? Are you telling me this last time, 262 00:15:20,750 --> 00:15:23,710 Suze: a long time ago, they didn't get their money for one month? 263 00:15:24,453 --> 00:15:27,002 KT: Some of them even longer, yes. 264 00:15:28,172 --> 00:15:32,732 KT: Now, the good news is I have $35,000 sitting in 265 00:15:32,732 --> 00:15:37,773 KT: a Roth IRA as you suggested all in cash as 266 00:15:37,773 --> 00:15:41,612 KT: my emergency fund. I don't think you suggested in cash. 267 00:15:41,692 --> 00:15:45,132 KT: I know you definitely said use it as an emergency fund. 268 00:15:45,132 --> 00:15:47,375 Suze: But have it in a money market account making interest 269 00:15:47,375 --> 00:15:49,116 Suze: but it's fine and it's in cash. He listened. 270 00:15:49,116 --> 00:15:52,135 KT: He just has it for an emergency fund. 271 00:15:52,286 --> 00:15:52,906 Suze: Good on you. 272 00:15:53,176 --> 00:15:56,176 KT: So he said, I've been told from my coworkers I 273 00:15:56,176 --> 00:16:00,926 KT: can withdraw monthly any amount I need to cover my bills. 274 00:16:01,306 --> 00:16:04,616 KT: Then when I receive my back pay, I can put 275 00:16:04,616 --> 00:16:08,515 KT: it all back within 60 days from my first withdrawal. 276 00:16:09,030 --> 00:16:13,469 KT: Is that actually how Roth IRA rules work, or am 277 00:16:13,469 --> 00:16:19,190 KT: I setting myself up for penalties and taxes? Who's right, Suze? 278 00:16:19,469 --> 00:16:24,669 KT: My coworkers or my gut telling me something sounds off? 279 00:16:24,950 --> 00:16:28,400 Suze: You know what's so great about this person, KT, right, 280 00:16:28,510 --> 00:16:29,710 Suze: is that I have a saying. 281 00:16:30,375 --> 00:16:34,215 Suze: Trust yourself more than you trust others, and forever I 282 00:16:34,215 --> 00:16:36,854 Suze: would say, listen, if you have that little feeling in 283 00:16:36,854 --> 00:16:39,534 Suze: your gut, listen to it, listen to it. That's the 284 00:16:39,534 --> 00:16:43,494 Suze: voice of God, in my opinion. Seriously, I'm not kidding, KT. 285 00:16:44,025 --> 00:16:48,895 Suze: Speaking to you to protect you, so you should absolutely 286 00:16:48,895 --> 00:16:54,015 Suze: listen to your gut. Now, here are the rules, and 287 00:16:54,015 --> 00:16:55,275 Suze: this is how it works. 288 00:16:55,969 --> 00:16:59,010 Suze: Given that all you have in there is the amount 289 00:16:59,010 --> 00:17:02,250 Suze: of money you originally contributed, cause it's been in cash, 290 00:17:02,520 --> 00:17:05,989 Suze: so it's not earning any money, you don't have any interest, anything. 291 00:17:06,849 --> 00:17:14,949 Suze: You can take out anything you originally contributed,regardless, listen closely. 292 00:17:15,180 --> 00:17:19,089 Suze: Regardless of your age or how long the account has 293 00:17:19,089 --> 00:17:24,890 Suze: been open without penalties or taxes whatsoever. That's true. You 294 00:17:24,890 --> 00:17:27,649 Suze: could take all that money out right now if you 295 00:17:27,650 --> 00:17:30,849 Suze: wanted to and you needed to. However, 296 00:17:31,790 --> 00:17:37,790 Suze: Roth IRAs and traditional IRAs can also do something known 297 00:17:37,790 --> 00:17:42,829 Suze: as an IRA rollover where you are allowed to once 298 00:17:42,829 --> 00:17:48,579 Suze: every 12 months, just once every 12 months, you can 299 00:17:48,579 --> 00:17:51,599 Suze: withdraw any money you're allowed to do from a Roth 300 00:17:51,599 --> 00:17:55,579 Suze: or an IRA, but you have to have it back, 301 00:17:55,670 --> 00:17:58,589 Suze: the exact amount back, 302 00:17:59,400 --> 00:18:05,640 Suze: within 60 days that's good, KT. Now the reason that 303 00:18:05,640 --> 00:18:10,959 Suze: your coworkers are wrong is if you withdraw, let's just 304 00:18:10,959 --> 00:18:13,839 Suze: say $3,600 one month. 305 00:18:14,219 --> 00:18:19,040 Suze: The clock now has begun and 60 days from there, 306 00:18:19,619 --> 00:18:25,500 Suze: you have to put that $3,600 back. Month two, you 307 00:18:25,500 --> 00:18:29,179 Suze: take out another $3,600. That's fine. 308 00:18:29,780 --> 00:18:33,209 Suze: Because it's still part of your original contribution, but you 309 00:18:33,209 --> 00:18:38,329 Suze: cannot pay that back. So that is money that you 310 00:18:38,329 --> 00:18:42,208 Suze: will have taken out of your Roth that can't get 311 00:18:42,209 --> 00:18:46,930 Suze: back into your Roth. So if I were you, I 312 00:18:46,930 --> 00:18:50,930 Suze: would take all of the money out at once, put 313 00:18:50,930 --> 00:18:54,069 Suze: it in a money market or somewhere that's earning interest. 314 00:18:55,189 --> 00:18:58,790 Suze: Pay your bills till you get your back pay and 315 00:18:58,790 --> 00:19:04,170 Suze: then put all of it back within the 60 days. 316 00:19:04,469 --> 00:19:07,989 Suze: That's how you do it. And hey, you can trust 317 00:19:07,989 --> 00:19:11,089 Suze: my gut on that one. KT next question. 318 00:19:12,209 --> 00:19:15,660 KT: All right, who's right? Credit card debt versus a HELOC. 319 00:19:16,410 --> 00:19:17,890 KT: This is a good one, Suze. 320 00:19:18,199 --> 00:19:19,729 Suze: They're all good, KT. 321 00:19:20,160 --> 00:19:20,250 KT: This is, really good. 322 00:19:20,609 --> 00:19:23,810 Suze: You can't hurt people's feelings and say this one's good. That one is... 323 00:19:24,000 --> 00:19:28,209 KT: No, I like this one a lot. I have $12,000 324 00:19:28,209 --> 00:19:32,930 KT: in credit card debt at 18% interest, but here's the 325 00:19:32,930 --> 00:19:33,819 KT: good news. 326 00:19:35,069 --> 00:19:40,170 KT: I also have about $100,000 of equity in my home. 327 00:19:40,469 --> 00:19:42,829 KT: I listened to you a few Sundays ago and I 328 00:19:42,829 --> 00:19:47,109 KT: thought I would take advantage of the ultimate Alliant HELLOC 329 00:19:47,790 --> 00:19:52,750 KT: at 3.99% fixed for six months and pay as much 330 00:19:52,750 --> 00:19:56,229 KT: as I can to get it paid off, but you 331 00:19:56,229 --> 00:20:00,469 KT: said don't do that. So who's right? Cutting my interest 332 00:20:00,469 --> 00:20:03,409 KT: big time, allowing me to get out of credit card debt, 333 00:20:03,430 --> 00:20:04,369 KT: or you? 334 00:20:04,750 --> 00:20:07,670 KT: There has to be exceptions to your advice, Suze. I'm 335 00:20:07,670 --> 00:20:08,989 KT: hoping I'm one of them. 336 00:20:09,229 --> 00:20:10,630 Suze: You are so not one of them, 337 00:20:10,729 --> 00:20:11,680 KT: Not one of them. Not, not, not. 338 00:20:11,790 --> 00:20:16,390 Suze: Let me tell you why, OK? Obviously you've heard me 339 00:20:16,390 --> 00:20:21,939 Suze: say it before. You never ever trade, uh, unsecured debt, 340 00:20:21,989 --> 00:20:25,260 Suze: which is credit card debt. Like if you can't pay, really, 341 00:20:25,349 --> 00:20:27,979 Suze: what are they gonna do to you? Really? All right, 342 00:20:28,270 --> 00:20:32,708 Suze: for secured debt, that's number one. Number two, you have 343 00:20:32,709 --> 00:20:34,250 Suze: a really high interest rate. 344 00:20:35,010 --> 00:20:37,329 Suze: Why do you have such a high interest rate? Does 345 00:20:37,329 --> 00:20:39,719 Suze: that mean that you have a really low credit score? 346 00:20:39,890 --> 00:20:43,530 Suze: Because if you had a really great credit score rather 347 00:20:43,530 --> 00:20:46,410 Suze: than have an 18% interest rate, you would have just 348 00:20:46,410 --> 00:20:51,310 Suze: done a balance transfer on a card that's paying 0% 349 00:20:52,290 --> 00:20:55,449 Suze: for like 21 months, and you absolutely could have had 350 00:20:55,449 --> 00:20:59,810 Suze: that paid off the entire time. But no, you think 351 00:20:59,810 --> 00:21:02,629 Suze: you want to have a home equity line of credit. 352 00:21:03,280 --> 00:21:04,270 Suze: Number two. 353 00:21:04,880 --> 00:21:09,010 Suze: If you don't have a good credit score, you're not 354 00:21:09,010 --> 00:21:14,930 Suze: gonna get the 3.99%. You're not gonna get possibly the 355 00:21:14,930 --> 00:21:21,069 Suze: prime plus 0%. It's all based on your credit score. 356 00:21:21,890 --> 00:21:26,790 Suze: Number three, why do you have that credit card debt? 357 00:21:27,010 --> 00:21:29,569 Suze: What did you spend that money on? Because I'm telling 358 00:21:29,569 --> 00:21:30,670 Suze: you what's gonna happen. 359 00:21:31,270 --> 00:21:34,079 Suze: If you do this, you're gonna go and get a 360 00:21:34,079 --> 00:21:37,760 Suze: home equity line of credit. OK, now you're gonna have 361 00:21:37,760 --> 00:21:41,239 Suze: a credit card that has a lot of available credit 362 00:21:41,239 --> 00:21:43,800 Suze: on it. And before you know it, do you know 363 00:21:43,800 --> 00:21:47,739 Suze: what you're going to do? You're gonna max it out again. 364 00:21:47,920 --> 00:21:50,520 Suze: And then what are you gonna do? You're gonna transfer 365 00:21:50,520 --> 00:21:53,079 Suze: it again over to your home equity line of credit. 366 00:21:53,189 --> 00:21:57,430 Suze: Are you crazy? You are not an exception to this rule. 367 00:21:57,640 --> 00:21:59,079 Suze: You wanna be smart? 368 00:21:59,719 --> 00:22:03,160 Suze: Then take the ultimate opportunity and do what? Check to 369 00:22:03,160 --> 00:22:06,438 Suze: see what your credit score is. If it's a really 370 00:22:06,439 --> 00:22:10,560 Suze: good credit score, then shop around for a balance transfer 371 00:22:10,569 --> 00:22:14,719 Suze: card at a 0% interest rate, and that is how 372 00:22:14,719 --> 00:22:17,729 Suze: you deal with credit card debt. KT... 373 00:22:17,739 --> 00:22:23,680 KT: I have another HELOC question. Who's right, Suze? Renovation, cash, 374 00:22:23,760 --> 00:22:24,609 KT: or HELOC? 375 00:22:25,469 --> 00:22:29,010 Suze: I bet it's a married couple. 376 00:22:29,300 --> 00:22:32,040 KT: It's the wife here. She, it's the wife and husband. 377 00:22:32,410 --> 00:22:36,550 KT: They say we have a $600,000 mortgage on a home 378 00:22:37,010 --> 00:22:39,180 KT: worth about $1.7 million. 379 00:22:39,329 --> 00:22:40,129 Suze: That's fabulous. 380 00:22:40,609 --> 00:22:45,728 KT: I want to take out a $300,000 renovation HELOC using 381 00:22:45,729 --> 00:22:49,810 KT: the ultimate opportunity HELOC at Alliantr Credit Union. They have 382 00:22:49,810 --> 00:22:52,609 KT: the best package I could find, so thank you. 383 00:22:53,359 --> 00:22:55,270 Suze: No, don't thank me. Thank Alliant. 384 00:22:55,680 --> 00:22:55,869 KT: Yea, thank Alliant. 385 00:22:56,000 --> 00:22:58,680 Suze: Go to my alliant.com and check it out, everybody. OK, 386 00:22:58,760 --> 00:22:58,979 Suze: go on. 387 00:22:59,069 --> 00:23:01,000 KT: It is really good. So check it out if you 388 00:23:01,000 --> 00:23:05,300 KT: need a HELOC. So or wanna use one. My thinking 389 00:23:05,300 --> 00:23:09,060 KT: is keep our cash invested in our money market account, 390 00:23:09,069 --> 00:23:15,079 KT: earning 3.5%, and take advantage of a tax deductible loan. 391 00:23:16,000 --> 00:23:20,760 KT: My wife says absolutely not just pay the cash and 392 00:23:20,760 --> 00:23:25,160 KT: stay out of debt. Who's right, Suze, me or my wife? 393 00:23:26,319 --> 00:23:27,339 Suze: Who's right, KT? 394 00:23:28,319 --> 00:23:29,839 KT: I think um the wife is. 395 00:23:29,839 --> 00:23:30,719 Suze: Why? 396 00:23:31,619 --> 00:23:34,800 KT: Well, number one, she just wants to pay off the... 397 00:23:35,920 --> 00:23:37,800 Suze: Yeah, but maybe he could make more money with it. 398 00:23:37,920 --> 00:23:40,560 Suze: Maybe he could invest it, da da da da. 399 00:23:40,800 --> 00:23:45,439 KT: Maybe they do. Maybe they split it. Maybe they split it. Take, 400 00:23:45,560 --> 00:23:49,719 KT: don't take 300. Take 150, and then use cash for 401 00:23:49,719 --> 00:23:53,119 KT: the rest, kind of share it. Then they're both in, 402 00:23:53,239 --> 00:23:55,419 KT: then they, they both, you know, they're satisfied. 403 00:23:55,839 --> 00:24:00,680 Suze: Ao ding a ding a ding... but for more reasons 404 00:24:00,680 --> 00:24:02,160 Suze: and then just sharing it. 405 00:24:02,900 --> 00:24:09,310 Suze: He currently has a $600,000 mortgage. I'm sure he just 406 00:24:09,310 --> 00:24:10,500 Suze: bought the house probably recently. 407 00:24:11,099 --> 00:24:12,579 KT: It's only a few years, they've owned it. 408 00:24:12,579 --> 00:24:16,800 Suze: All right, so therefore, the most he can take off 409 00:24:16,800 --> 00:24:22,079 Suze: of his interest on a mortgage and a home equity 410 00:24:22,079 --> 00:24:25,260 Suze: line of credit is the interest on an amount up 411 00:24:25,260 --> 00:24:29,119 Suze: to $750,000. 412 00:24:29,729 --> 00:24:34,099 Suze: If he has a $600,000 mortgage, which he does, he 413 00:24:34,099 --> 00:24:44,560 Suze: takes out a $300,000 HELOC that's $900,000 or $150,000 over 414 00:24:45,500 --> 00:24:50,479 Suze: his tax deductible amount. So if he only took out 415 00:24:50,479 --> 00:24:55,540 Suze: a $150,000 HELOC, now he's at the 750 amount as 416 00:24:55,540 --> 00:24:58,439 Suze: long as it's for renovation or something with his home, 417 00:24:59,140 --> 00:25:03,900 Suze: and he still has $150,000 dollars making interest which may 418 00:25:03,900 --> 00:25:08,129 Suze: make his wife feel better. So I would think about that, 419 00:25:08,390 --> 00:25:12,859 Suze: talk about it, but here's the bottom line truthfully when 420 00:25:12,859 --> 00:25:14,959 Suze: somebody doesn't feel secure... 421 00:25:16,189 --> 00:25:19,609 Suze: You lose far more than just the amount of money 422 00:25:19,609 --> 00:25:23,469 Suze: that you could have made. Now it will be possible 423 00:25:23,469 --> 00:25:26,869 Suze: that she is upset. She is worried every time interest 424 00:25:26,869 --> 00:25:29,109 Suze: rates go up, she's going to say this or she's 425 00:25:29,109 --> 00:25:32,089 Suze: going to say that. Who knows what it will be. 426 00:25:32,829 --> 00:25:38,209 Suze: So if she really, really feels strongly about it, then 427 00:25:38,209 --> 00:25:40,609 Suze: I'm here to tell you, just 428 00:25:41,180 --> 00:25:46,219 Suze: do the cash or again just adopt my attitude which 429 00:25:46,219 --> 00:25:52,339 Suze: I did yesterday. KT is always right, even though she 430 00:25:53,339 --> 00:25:56,739 Suze: was wrong. She was purposely wrong and she tricked me anyway. 431 00:25:56,849 --> 00:25:57,839 Suze: All right, go on. 432 00:25:58,500 --> 00:25:59,199 KT: All right. 433 00:26:00,089 --> 00:26:05,209 KT: Who's right, HSA beneficiaries. I named my two kids as 434 00:26:05,209 --> 00:26:09,939 KT: beneficiaries on my HSA, but I recently read an article 435 00:26:09,939 --> 00:26:15,069 KT: that kids cannot inherit an HSA. So Suze, I'm wondering, 436 00:26:15,209 --> 00:26:19,209 KT: did I set this up wrong? Can my kids benefit 437 00:26:19,209 --> 00:26:23,810 KT: from this account the way I intended, or the article 438 00:26:23,810 --> 00:26:27,109 KT: that said the kids cannot inherit HSAs? 439 00:26:27,449 --> 00:26:28,550 Suze: Who is right? 440 00:26:29,489 --> 00:26:31,438 Suze: Do you have an idea to that one, KT? 441 00:26:31,589 --> 00:26:34,109 KT: Yeah, your kids can't inherit an HSA. 442 00:26:34,300 --> 00:26:34,859 Suze: Why not? 443 00:26:34,979 --> 00:26:35,500 KT: Can they? 444 00:26:37,060 --> 00:26:40,060 Suze: Don't ask me. Can they? What's your answer? 445 00:26:40,810 --> 00:26:44,469 KT: I don't. I think that no, HSA is really your medical. 446 00:26:44,630 --> 00:26:45,550 KT: You use it for like... 447 00:26:45,670 --> 00:26:46,780 Suze: All right, never mind. 448 00:26:47,040 --> 00:26:48,680 KT: Can they, can they? 449 00:26:49,244 --> 00:26:49,869 Suze: (Suze makes the wrong answer noise) You're wrong. 450 00:26:50,489 --> 00:26:50,910 KT: Can they? 451 00:26:50,910 --> 00:26:55,400 Suze: Listen to the answer. All right, so. 452 00:26:56,380 --> 00:27:03,469 Suze: The article is wrong. Kids absolutely can inherit an HSA, 453 00:27:03,630 --> 00:27:07,569 Suze: but is it a wise thing for them to inherit? 454 00:27:07,790 --> 00:27:11,910 Suze: An HSA is a health savings account. 455 00:27:12,349 --> 00:27:16,839 Suze: And it's attached obviously to a high deductible health insurance policy, 456 00:27:17,630 --> 00:27:21,560 Suze: but within that HSA you have the ability to invest 457 00:27:21,560 --> 00:27:25,310 Suze: that money and if used properly and for certain things, 458 00:27:25,719 --> 00:27:27,599 Suze: when you go to take it out 459 00:27:28,430 --> 00:27:32,030 Suze: it's tax-free. So you got a tax deduction when you 460 00:27:32,030 --> 00:27:35,229 Suze: put it in. It has been in there growing, and 461 00:27:35,229 --> 00:27:37,790 Suze: then when you go to take it out, it is 462 00:27:37,790 --> 00:27:41,969 Suze: tax-free if it's for a medical qualified expense. 463 00:27:42,890 --> 00:27:48,438 Suze: As a spouse you could pass that tax freedom to 464 00:27:48,439 --> 00:27:52,689 Suze: a spouse, but you cannot pass it down to your 465 00:27:52,689 --> 00:27:56,569 Suze: children and whatever all of you do, never make a 466 00:27:56,569 --> 00:28:02,239 Suze: trust the beneficiary of your HSA because a trust is 467 00:28:02,239 --> 00:28:03,229 Suze: not a person. 468 00:28:03,849 --> 00:28:09,849 Suze: Therefore, a trust or anybody other than your spouse, and 469 00:28:09,849 --> 00:28:12,810 Suze: when they get the money, they will have to pay 470 00:28:12,810 --> 00:28:15,409 Suze: ordinary income tax on it. 471 00:28:15,859 --> 00:28:18,699 Suze: So, yep, you can leave it to your kids, but 472 00:28:18,699 --> 00:28:22,619 Suze: you do not want to. You wanna spend all that 473 00:28:22,619 --> 00:28:26,339 Suze: money while you can or do whatever and find other 474 00:28:26,339 --> 00:28:30,500 Suze: money that you leave them in a more tax efficient way. 475 00:28:30,660 --> 00:28:31,939 Suze: Next question, KT. 476 00:28:32,219 --> 00:28:35,540 KT: So Suze, my next one is who's Right. Paying the 477 00:28:35,540 --> 00:28:38,050 KT: IRS versus investing. 478 00:28:38,260 --> 00:28:40,060 Suze: Well, that's easy. Pay the IRS. 479 00:28:40,300 --> 00:28:41,699 KT: I was gonna say pay the tax. 480 00:28:42,180 --> 00:28:43,550 Suze: Well, let's hear the question. You never know. 481 00:28:43,660 --> 00:28:47,939 KT: We owe $36,000 to the IRS, and that is due 482 00:28:47,939 --> 00:28:50,060 KT: April 15th, literally around the corner. 483 00:28:50,060 --> 00:28:52,560 Suze: I wish we only owed $36,000. 484 00:28:53,640 --> 00:28:54,339 Suze: Actually that's not true. 485 00:28:54,339 --> 00:28:56,180 KT: No, don't say that. 486 00:28:56,219 --> 00:28:57,310 Suze: I don't say say that. 487 00:28:57,410 --> 00:28:58,270 KT: Take it back. Take it back, 488 00:28:58,770 --> 00:29:00,540 Suze: Sorry. Cancel, cancel, cancel, cancel. 489 00:29:01,910 --> 00:29:04,229 KT: She owes a ton of money, a mountain of money 490 00:29:04,229 --> 00:29:07,550 KT: to the IRS, thankfully because you make a lot of money... 491 00:29:07,910 --> 00:29:09,680 Suze: I make a lot of money. I do. 492 00:29:09,680 --> 00:29:10,430 KT: So then, rightfully pay... 493 00:29:10,430 --> 00:29:13,910 Suze: But wait, I have to tell you a story, everybody, KT. 494 00:29:14,540 --> 00:29:18,819 Suze: So KT was saying something. We were doing something a 495 00:29:18,819 --> 00:29:21,819 Suze: few days ago, and KT said, Well, I'll just take 496 00:29:21,819 --> 00:29:24,290 Suze: it on my taxes, and I'll write it off, something 497 00:29:24,290 --> 00:29:25,260 Suze: we were talking about. 498 00:29:26,400 --> 00:29:27,500 KT: Oh, a charitable donation. 499 00:29:27,500 --> 00:29:31,579 Suze: I said, KT, what are you talking about? 500 00:29:32,459 --> 00:29:37,260 Suze: Right, I said we are married. We file a joint 501 00:29:37,260 --> 00:29:42,300 Suze: tax return. My taxes are your taxes, so you can't 502 00:29:42,300 --> 00:29:45,300 Suze: do things the way as that as if we're not married. What is wrong with you? 503 00:29:45,300 --> 00:29:48,180 KT: I looked at her and I said, what was I thinking? 504 00:29:48,180 --> 00:29:49,900 Suze: Yeah, what were you thinking? 505 00:29:50,069 --> 00:29:51,869 Suze: Anyway, all right, so go on. 506 00:29:51,959 --> 00:29:55,160 KT: Oh my God, I married like a, I didn't marry 507 00:29:55,160 --> 00:29:58,619 KT: a tax haven. I married a tax. I don't know what. 508 00:29:59,119 --> 00:30:01,040 KT: Oh my goodness. So who's right... 509 00:30:01,040 --> 00:30:04,119 Suze: Yeah, you married somebody who's taxing. I can tell you that much. 510 00:30:04,119 --> 00:30:09,619 KT: ...paying the IRS versus investing. We have the money sitting 511 00:30:09,619 --> 00:30:13,199 KT: in a Fidelity account earning about 3.5% interest. 512 00:30:14,359 --> 00:30:18,359 KT: My husband and the financial advisor say just leave the 513 00:30:18,359 --> 00:30:22,020 KT: money invested and pay the IRS when it's due. 514 00:30:22,680 --> 00:30:26,880 KT: I hate, the wife says, I hate owing money, especially 515 00:30:26,880 --> 00:30:30,560 KT: to the IRS. I want to just pay it off 516 00:30:30,560 --> 00:30:34,280 KT: now and be done with it. Who's right? Should we 517 00:30:34,280 --> 00:30:37,760 KT: hold on to the cash and earn interest or pay 518 00:30:37,760 --> 00:30:40,079 KT: the IRS immediately? 519 00:30:40,239 --> 00:30:44,040 Suze: Let's just talk about how much money we're actually talking 520 00:30:44,040 --> 00:30:48,680 Suze: about here. 36,000 they owe. All right, 36,000 for 521 00:30:48,792 --> 00:30:52,191 Suze: the next like 13 days at 3.5%. What are we 522 00:30:52,192 --> 00:30:56,822 Suze: talking about? $45 dollars that's taxable to you. So you're 523 00:30:56,822 --> 00:31:00,113 Suze: only gonna owe more taxes next year because of that 524 00:31:00,113 --> 00:31:01,911 Suze: interest or whatever. So when it's all said and done, 525 00:31:01,993 --> 00:31:08,833 Suze: we're talking about like $25 maybe and for $25 you 526 00:31:08,833 --> 00:31:12,753 Suze: wanna upset your wife? Are you kidding me? You pay 527 00:31:12,753 --> 00:31:14,363 Suze: it right now. 528 00:31:15,056 --> 00:31:18,706 Suze: She's right. This isn't a financial question. This is an 529 00:31:18,706 --> 00:31:21,745 Suze: emotional question. What is the goal of money? The goal 530 00:31:21,745 --> 00:31:24,666 Suze: of money is to feel secure, to be secure... 531 00:31:24,666 --> 00:31:25,306 KT: And be happy. 532 00:31:25,306 --> 00:31:29,536 Suze: And be happy. So $25 do me a favor. Give 533 00:31:29,536 --> 00:31:32,186 Suze: your husband $25 and tell him to go out and 534 00:31:32,186 --> 00:31:34,816 Suze: have a good time and add it to go have 535 00:31:34,816 --> 00:31:37,345 Suze: dinner with his friend, whatever. I don't care, and that 536 00:31:37,345 --> 00:31:40,105 Suze: you're even now. Just give him $25 and have him 537 00:31:40,105 --> 00:31:41,206 Suze: pay it right away. 538 00:31:41,985 --> 00:31:43,946 KT: All right, this is my last question. 539 00:31:44,550 --> 00:31:47,469 KT: Missing trust documents, ha ha. 540 00:31:49,280 --> 00:31:55,089 KT: This one, this is really important. Everyone listen carefully so 541 00:31:55,670 --> 00:31:58,329 KT: we get a question it said my mom passed away 542 00:31:58,329 --> 00:32:03,709 KT: and had a revocable living trust. The only document we 543 00:32:03,709 --> 00:32:06,349 KT: can find is a copy of the trust and my 544 00:32:06,349 --> 00:32:08,170 KT: brother says it's all we need. 545 00:32:08,660 --> 00:32:12,390 KT: The bank is refusing to accept it. Says they need 546 00:32:12,390 --> 00:32:18,500 KT: the original or a certified copy. We don't have anything else. 547 00:32:18,829 --> 00:32:21,530 KT: Who's right, my brother or the bank? 548 00:32:22,689 --> 00:32:23,530 KT: The bank, right, Suze? 549 00:32:23,719 --> 00:32:28,290 Suze: Yeah, the bank is right. Listen, everybody, you don't want 550 00:32:28,290 --> 00:32:31,650 Suze: to have your money somewhere that if somebody just comes 551 00:32:31,650 --> 00:32:35,849 Suze: in with a copy of something, they could have forged it. 552 00:32:35,930 --> 00:32:39,969 Suze: Who knows, whatever. There's no real marks on it. Maybe 553 00:32:39,969 --> 00:32:42,650 Suze: there's a notary stamp, but that even could have been faked. 554 00:32:42,839 --> 00:32:46,209 Suze: Everything could be faked today, right? All right. You don't 555 00:32:46,209 --> 00:32:49,430 Suze: want a bank to say, oh, OK, here's all the money, 556 00:32:49,770 --> 00:32:52,050 Suze: and just sign it over for you. 557 00:32:52,469 --> 00:32:57,520 Suze: But here's the thing, everybody, is that a plain copy 558 00:32:57,520 --> 00:33:01,560 Suze: of a trust means nothing to a bank. It simply 559 00:33:01,560 --> 00:33:05,400 Suze: proves the document existed at some point. It does not 560 00:33:05,400 --> 00:33:09,400 Suze: prove everybody that it's the final version now. It doesn't 561 00:33:09,400 --> 00:33:12,400 Suze: prove that it wasn't amended. It doesn't prove that it 562 00:33:12,400 --> 00:33:13,079 Suze: wasn't revoked. 563 00:33:13,500 --> 00:33:17,739 Suze: And it doesn't prove that it's legally valid. That is 564 00:33:17,739 --> 00:33:20,780 Suze: why they are asking for either one of these the 565 00:33:20,780 --> 00:33:24,780 Suze: original trust document that has a stamp on it has 566 00:33:24,780 --> 00:33:29,180 Suze: the signatures on it, a certified copy from the attorney 567 00:33:29,180 --> 00:33:33,719 Suze: or sometimes a court if you don't have the original, 568 00:33:34,339 --> 00:33:40,260 Suze: and really a certification of trust is simply a summary document. 569 00:33:40,589 --> 00:33:46,060 Suze: That legally confirms the trust terms and trustees. Now, right now, 570 00:33:46,270 --> 00:33:48,390 Suze: you're kind of saying in this email, you don't have 571 00:33:48,390 --> 00:33:49,189 Suze: any of that. 572 00:33:49,660 --> 00:33:52,300 Suze: So if your brother thinks that you can just walk 573 00:33:52,300 --> 00:33:55,979 Suze: in with a copy and access the money, that's not 574 00:33:55,979 --> 00:34:00,939 Suze: just wrong, it's stupid. It's just stupid. We started this 575 00:34:00,939 --> 00:34:03,829 Suze: KT with me calling somebody stupid who was on margin. 576 00:34:04,020 --> 00:34:06,839 Suze: This is equally just as stupid. So here's the thing, 577 00:34:06,859 --> 00:34:09,540 Suze: number one that you should learn from this, and I'm 578 00:34:09,540 --> 00:34:11,060 Suze: gonna tell you what I want you to do to 579 00:34:11,060 --> 00:34:14,840 Suze: hopefully fix it. Don't listen to your brother. 580 00:34:15,719 --> 00:34:19,739 Suze: Your brother absolutely acts like he knows what he's talking 581 00:34:19,739 --> 00:34:23,479 Suze: about and that he knows he's probably the big brother 582 00:34:23,479 --> 00:34:27,158 Suze: and you need to listen. Thank God you wrote in. 583 00:34:27,320 --> 00:34:30,600 Suze: So here's what I really want you to do. I 584 00:34:30,600 --> 00:34:34,060 Suze: want you to track down the attorney who drafted the trust, 585 00:34:34,370 --> 00:34:37,679 Suze: all right? 'Cause most attorneys, believe it or not, if 586 00:34:37,679 --> 00:34:42,239 Suze: she used an attorney, keeps either the original or a 587 00:34:42,239 --> 00:34:44,959 Suze: certified copy on file. 588 00:34:45,449 --> 00:34:51,689 Suze: So that's your fastest path. Second, have you checked everywhere, really? 589 00:34:52,050 --> 00:34:55,250 Suze: Your mommy wouldn't have gone to the trouble of creating 590 00:34:55,250 --> 00:34:57,969 Suze: a trust, making a copy of it and giving it 591 00:34:57,969 --> 00:35:02,049 Suze: to you, and didn't put the original somewhere that was 592 00:35:02,050 --> 00:35:03,949 Suze: probably safe and sound. 593 00:35:04,429 --> 00:35:07,070 Suze: Did she have a safety deposit box? Did she have 594 00:35:07,070 --> 00:35:10,819 Suze: a home safe? Does she have filing cabinets, you know, 595 00:35:11,030 --> 00:35:14,110 Suze: does she have maybe a financial advisor or a CPA 596 00:35:14,110 --> 00:35:17,750 Suze: that she asked to hold it for her or even 597 00:35:17,750 --> 00:35:19,709 Suze: a really good friend? 598 00:35:20,439 --> 00:35:23,989 Suze: Third, all you have to do is ask the attorney 599 00:35:23,989 --> 00:35:28,790 Suze: for a certification of trust, and truthfully, banks often accept 600 00:35:28,790 --> 00:35:34,089 Suze: this instead of the full document, and it avoids privacy issues. 601 00:35:34,459 --> 00:35:40,110 Suze: If you can't do any of that. Everybody listen closely 602 00:35:40,110 --> 00:35:44,649 Suze: to me, cause you may find yourself in this situation 603 00:35:45,270 --> 00:35:46,169 Suze: one day. 604 00:35:46,889 --> 00:35:49,610 Suze: Then the last thing that's gonna happen is you're gonna 605 00:35:49,610 --> 00:35:52,729 Suze: have to head to probate probate court, and then that 606 00:35:52,729 --> 00:35:56,209 Suze: will be a very lengthy procedure depending on where you are. 607 00:35:56,449 --> 00:36:01,449 Suze: It could be an expensive procedure. So always make sure 608 00:36:01,689 --> 00:36:05,049 Suze: that you have the original, and I just have to 609 00:36:05,050 --> 00:36:08,070 Suze: say this, Katie, because hey house. 610 00:36:08,370 --> 00:36:14,239 Suze: The publisher of the must-have documents, everybody thinks that, oh, 611 00:36:14,570 --> 00:36:17,169 Suze: they probably have a copy of it on the computer 612 00:36:17,169 --> 00:36:23,030 Suze: system or whatever. Nothing that you put in those documents 613 00:36:23,479 --> 00:36:28,090 Suze: are able to be accessed by anybody other than you. 614 00:36:28,520 --> 00:36:32,549 Suze: So the copy of it or whatever lives on your computer, 615 00:36:32,639 --> 00:36:37,179 Suze: on your phone, possibly in the cloud, but don't think 616 00:36:37,360 --> 00:36:42,179 Suze: that Hay House or anybody associated with the must-have documents 617 00:36:42,439 --> 00:36:48,959 Suze: has a copy of your trust. No information is stored 618 00:36:48,959 --> 00:36:50,750 Suze: whatsoever with them. 619 00:36:51,070 --> 00:36:53,840 Suze: So just know that everybody. So KT, is that really it? 620 00:36:53,840 --> 00:36:54,959 KT: That's what I've got. 621 00:36:55,439 --> 00:36:56,000 KT: Who is right, 622 00:36:56,159 --> 00:37:00,638 Suze: KT, me or you most of the time, KT. She's never, 623 00:37:00,709 --> 00:37:03,489 Suze: I'm still right. You're still right. All right, everybody, 624 00:37:03,879 --> 00:37:07,290 KT: until when it comes to money, Suze's always right. 625 00:37:07,719 --> 00:37:08,840 Suze: That's not necessarily true... 626 00:37:08,989 --> 00:37:11,689 KT: When it comes to money with between you and I, 627 00:37:12,000 --> 00:37:14,959 KT: you are always right, yes. 628 00:37:15,439 --> 00:37:18,810 Suze: OK, I'll take it. I'll take it. All right, so 629 00:37:18,820 --> 00:37:21,979 Suze: until Sunday when we'll have another Suze School, there's only 630 00:37:21,979 --> 00:37:24,580 Suze: one thing that we want you to remember when it 631 00:37:24,580 --> 00:37:26,120 Suze: comes to your money, and what is it, 632 00:37:26,260 --> 00:37:29,159 KT: KT? It is people first, then money, then things. 633 00:37:29,699 --> 00:37:33,979 Suze: And remember, trust your gut more than you trust others. 634 00:37:34,090 --> 00:37:35,759 Suze: Now you stay safe. 635 00:37:36,260 --> 00:37:37,320 KT: Bye bye, bye.