1 00:00:40,459 --> 00:00:44,939 Suze: May 19th 2024. Welcome everybody to the Women and Money 2 00:00:44,950 --> 00:00:48,290 Suze: podcast as well as everybody smart enough to listen. 3 00:00:48,569 --> 00:00:52,069 Suze: Now, as many of you may know KT and I 4 00:00:52,080 --> 00:00:56,549 Suze: and some of our family members are in South Africa 5 00:00:56,560 --> 00:01:00,209 Suze: as you are listening to this. But I just wanted 6 00:01:00,220 --> 00:01:05,389 Suze: you to have a new podcast. So, KT and I 7 00:01:05,400 --> 00:01:10,309 Suze: spent our time before we left prerecording a few of them. 8 00:01:10,319 --> 00:01:12,429 Suze: So I hope you enjoy them. 9 00:01:12,839 --> 00:01:17,099 Suze: But I have to say today's podcast is also just 10 00:01:17,110 --> 00:01:20,620 Suze: a little bit different, like last week's was, but it 11 00:01:20,629 --> 00:01:25,470 Suze: is a Suze School, but it stems from an email 12 00:01:25,480 --> 00:01:29,900 Suze: that I recently received that I just want to read 13 00:01:29,910 --> 00:01:34,839 Suze: to you because I think it's really touching in many ways. 14 00:01:35,330 --> 00:01:36,769 Suze: This is from Ed. 15 00:01:38,040 --> 00:01:40,089 Suze: I owe this to my wife. 16 00:01:41,000 --> 00:01:44,919 Suze: I never realized how much pressure my wife endures in 17 00:01:44,940 --> 00:01:50,260 Suze: regards of me retiring. I am 62 and she is 54. 18 00:01:50,849 --> 00:01:55,120 Suze: I have chosen to retire this year, although she doesn't 19 00:01:55,129 --> 00:01:56,059 Suze: want me to, 20 00:01:56,870 --> 00:02:00,889 Suze: I've explained numerous times to her that I just can't 21 00:02:00,900 --> 00:02:04,489 Suze: do it any longer. I am writing to you for 22 00:02:04,500 --> 00:02:10,020 Suze: some much needed advice. My wife handles everything. She pays 23 00:02:10,029 --> 00:02:16,380 Suze: all the bills, does the accounting, the medical, everything. I 24 00:02:16,389 --> 00:02:21,690 Suze: trust her with all the finances. I never realize the 25 00:02:21,699 --> 00:02:24,440 Suze: effort and time that it requires. 26 00:02:24,979 --> 00:02:30,570 Suze: She arranged a zoom call with my employer's financial consultant. 27 00:02:31,110 --> 00:02:35,029 Suze: She attempted to have all her questions ready but was 28 00:02:35,038 --> 00:02:40,198 Suze: disappointed because every question she attempted to clarify. The advisor 29 00:02:40,210 --> 00:02:44,478 Suze: basically told her, don't worry about this or that and 30 00:02:44,490 --> 00:02:46,520 Suze: we can fill out the paperwork for you. 31 00:02:47,000 --> 00:02:50,809 Suze: She was not happy about this being that she is 32 00:02:50,820 --> 00:02:55,770 Suze: very detailed and organized and is very passionate about educating 33 00:02:55,779 --> 00:03:00,329 Suze: herself with these issues. Of course, I just brushed it 34 00:03:00,339 --> 00:03:03,809 Suze: off and told her not to stress it, but she 35 00:03:03,820 --> 00:03:09,630 Suze: was frantic explaining that once I sign or commit to anything, 36 00:03:09,639 --> 00:03:13,210 Suze: it cannot be changed and this is my money and 37 00:03:13,220 --> 00:03:15,649 Suze: we should know how it gets handled. 38 00:03:16,240 --> 00:03:19,740 Suze: Suze, I am ashamed to say that she is right. 39 00:03:20,229 --> 00:03:23,758 Suze: I should know what's going on with my finances. So 40 00:03:23,770 --> 00:03:26,699 Suze: I am writing to you with the hopes that you 41 00:03:26,710 --> 00:03:29,339 Suze: can help me or give me the best advice on 42 00:03:29,350 --> 00:03:33,139 Suze: my next step. And also I want to show her 43 00:03:33,149 --> 00:03:36,139 Suze: that I care enough for us to write to you together. 44 00:03:36,710 --> 00:03:38,940 Suze: So here is my situation. 45 00:03:39,589 --> 00:03:45,460 Suze: I will be 62 in August of 2024. I have 46 00:03:45,470 --> 00:03:50,570 Suze: about 200,000 in my annuity fund. I was told I 47 00:03:50,580 --> 00:03:55,130 Suze: had three choices. The first one would be take the 48 00:03:55,139 --> 00:04:02,789 Suze: monthly lifetime payments at $1211 a month with a 50% 49 00:04:02,800 --> 00:04:04,479 Suze: survival spouse. 50 00:04:05,020 --> 00:04:08,820 Suze: The second option would be to choose a payout either 51 00:04:08,830 --> 00:04:13,880 Suze: within five years, 10 years, 15 20 25 or 30 all 52 00:04:13,889 --> 00:04:17,799 Suze: spread out. The third would be for me to roll 53 00:04:17,809 --> 00:04:20,890 Suze: over my annuity into an IRA. 54 00:04:21,498 --> 00:04:25,158 Suze: Sure, I want total control over my money. My wife 55 00:04:25,169 --> 00:04:29,359 Suze: suggested I open up a traditional IRA and roll over 56 00:04:29,368 --> 00:04:32,878 Suze: the annuity into this. But to make sure to request 57 00:04:32,889 --> 00:04:37,558 Suze: a custodian to custodian transfer or if my employer doesn't 58 00:04:37,569 --> 00:04:40,688 Suze: do this, then ask them to make a check directly 59 00:04:40,699 --> 00:04:46,269 Suze: out to the financial institution to avoid that 20% penalty. 60 00:04:46,769 --> 00:04:48,198 Suze: Is this correct? 61 00:04:48,720 --> 00:04:51,100 Suze: Well, before I even go on, of course, it's correct. 62 00:04:51,109 --> 00:04:55,849 Suze: Your wife listens to me seriously and has totally gotten 63 00:04:55,859 --> 00:04:59,559 Suze: it down. She is a little Suze student to the max. 64 00:04:59,959 --> 00:05:03,190 Suze: He goes on to say, can I open up a 65 00:05:03,200 --> 00:05:06,600 Suze: Roth IRA instead? The answer to that is no, but 66 00:05:06,609 --> 00:05:09,849 Suze: that's besides the point. And if I do, do I 67 00:05:09,859 --> 00:05:13,040 Suze: have to wait five years before I can take out 68 00:05:13,049 --> 00:05:18,119 Suze: any withdrawals, I will be needing this money monthly for income. 69 00:05:18,809 --> 00:05:22,589 Suze: And my last question is my wife told me that 70 00:05:22,600 --> 00:05:25,959 Suze: the money that I will put into an IRA is 71 00:05:25,970 --> 00:05:31,329 Suze: not FDIC insured. Is this correct? How can I secure 72 00:05:31,339 --> 00:05:35,630 Suze: my money if it's not secured? Then I might have 73 00:05:35,640 --> 00:05:38,700 Suze: to take the first option, which is to take the 74 00:05:38,709 --> 00:05:42,309 Suze: lifetime payments. First of all, what makes you feel that 75 00:05:42,320 --> 00:05:47,510 Suze: secured that? Besides the point, any constructive advice would be appreciative. 76 00:05:48,109 --> 00:05:50,539 Suze: I should have listened to my wife for all the 77 00:05:50,549 --> 00:05:54,209 Suze: times that she spoke about this. Maybe I would have 78 00:05:54,220 --> 00:05:59,149 Suze: been better prepared and not waiting at the edge. May 79 00:05:59,160 --> 00:06:02,959 Suze: my mistake be a lesson to other husbands who also 80 00:06:02,970 --> 00:06:06,190 Suze: choose to not worry about it. Thank you. 81 00:06:07,178 --> 00:06:13,799 Suze: Well, that email totally got to me. Not in a 82 00:06:13,809 --> 00:06:18,250 Suze: bad way. I was so proud of Ed only because 83 00:06:18,690 --> 00:06:23,000 Suze: it's better to realizing something later on in life than 84 00:06:23,010 --> 00:06:26,109 Suze: not realizing it at all. 85 00:06:27,309 --> 00:06:31,079 Suze: I want us to all go over this together 86 00:06:31,890 --> 00:06:36,769 Suze: to understand how I decipher the answer that I'm going 87 00:06:36,779 --> 00:06:40,190 Suze: to be giving to Ed and the things that I 88 00:06:40,200 --> 00:06:44,339 Suze: think about. So get out your Suze notebooks just because 89 00:06:44,350 --> 00:06:47,549 Suze: I'm in South Africa doesn't mean that you don't open 90 00:06:47,559 --> 00:06:50,820 Suze: up your Suze notebooks. You absolutely do 91 00:06:51,480 --> 00:06:55,760 Suze: because I want you to see all the things that 92 00:06:55,769 --> 00:07:00,440 Suze: I went through to come up with the right solution 93 00:07:00,450 --> 00:07:03,779 Suze: for Ed because Ed's not the only one in this situation. 94 00:07:04,070 --> 00:07:07,738 Suze: So many people out there do retire. They do get 95 00:07:07,750 --> 00:07:11,570 Suze: offered a joint and Survivor benefit. They don't know which 96 00:07:11,579 --> 00:07:15,420 Suze: one to take and they get all confused about all 97 00:07:15,429 --> 00:07:18,500 Suze: the things that Ed talked about 98 00:07:19,899 --> 00:07:25,209 Suze: and to Ed's wife, he got it, girlfriend. Good for you. Truthfully, 99 00:07:25,220 --> 00:07:26,720 Suze: if I was just going to put an end to 100 00:07:26,730 --> 00:07:28,950 Suze: all of this, I would say Ed, you are not 101 00:07:28,959 --> 00:07:32,079 Suze: to retire, you are to stay there another eight years. 102 00:07:32,089 --> 00:07:35,690 Suze: However you say you have to, you can't do it 103 00:07:35,700 --> 00:07:41,179 Suze: any longer. Ok. Let's just see where we go from 104 00:07:41,190 --> 00:07:46,390 Suze: this email. So, first of all, I look at the problems, 105 00:07:47,070 --> 00:07:54,410 Suze: what are the problems with a 50% joint and Survivor annuity? 106 00:07:55,160 --> 00:08:00,809 Suze: All of you have to remember that actuarily speaking women 107 00:08:00,820 --> 00:08:05,369 Suze: live longer than men, especially in most cases when the 108 00:08:05,380 --> 00:08:11,769 Suze: man is eight years older to begin with, than his wife. 109 00:08:12,519 --> 00:08:17,399 Suze: And as we get older, we usually depend on the 110 00:08:17,410 --> 00:08:23,239 Suze: income from our investments, possibly a pension like this as 111 00:08:23,250 --> 00:08:27,339 Suze: well as both of our social security checks. 112 00:08:28,420 --> 00:08:32,109 Suze: Upon the death of Ed. I want you to think 113 00:08:32,119 --> 00:08:36,098 Suze: about this because it's most likely that is what is 114 00:08:36,109 --> 00:08:37,229 Suze: going to happen 115 00:08:38,568 --> 00:08:43,049 Suze: at that point in time when his wife may be 116 00:08:43,059 --> 00:08:46,848 Suze: needing more money than ever. Because as you get older, 117 00:08:46,859 --> 00:08:50,059 Suze: you tend to need more money, you tend to spend 118 00:08:50,068 --> 00:08:54,129 Suze: more money on prescriptions, you might need help. All of 119 00:08:54,138 --> 00:08:58,778 Suze: these things are possible. All right. So at the time 120 00:08:58,979 --> 00:09:03,379 Suze: when Ed dies, when his wife may be needing every 121 00:09:03,388 --> 00:09:04,848 Suze: cent that they have 122 00:09:05,989 --> 00:09:07,909 Suze: upon Ed's death, 123 00:09:09,159 --> 00:09:14,549 Suze: his wife is going to lose one social security check 124 00:09:14,750 --> 00:09:18,460 Suze: because remember even if they are both getting a social 125 00:09:18,469 --> 00:09:20,809 Suze: security check, forget about the amounts 126 00:09:22,169 --> 00:09:27,340 Suze: upon death. One of those social security checks go away 127 00:09:27,809 --> 00:09:32,098 Suze: and the surviving spouse will take over the higher of 128 00:09:32,109 --> 00:09:32,780 Suze: the two 129 00:09:33,659 --> 00:09:36,900 Suze: Ed's wife will keep hers if hers would be higher 130 00:09:36,909 --> 00:09:42,159 Suze: than his. But if his is higher than hers, then 131 00:09:42,169 --> 00:09:45,919 Suze: she will take over his. That's very important. But she 132 00:09:45,929 --> 00:09:48,159 Suze: still lost that income 133 00:09:49,099 --> 00:09:55,520 Suze: when you take a 50% joint and survivor benefit 134 00:09:56,650 --> 00:10:01,520 Suze: you may get. And in Ed's case, this is true, 135 00:10:02,099 --> 00:10:08,760 Suze: you may get $14,532 a year, that's guaranteed to you. 136 00:10:09,469 --> 00:10:11,640 Suze: But upon Ed's death, 137 00:10:12,619 --> 00:10:17,630 Suze: his wife will only get 50% of that, which is 138 00:10:17,640 --> 00:10:26,150 Suze: only $7266 in a year. Obviously, she gets that monthly. 139 00:10:26,159 --> 00:10:29,959 Suze: So she would go from like $1211 a month down 140 00:10:29,969 --> 00:10:35,829 Suze: to $605 a month. So what Ed have you just done? 141 00:10:37,049 --> 00:10:41,969 Suze: Your wife now has lost one social security check, $600 142 00:10:42,130 --> 00:10:44,669 Suze: a month of income from this pension. 143 00:10:45,919 --> 00:10:52,940 Suze: And that may hurt her tremendously financially. Also, when you 144 00:10:52,950 --> 00:10:56,579 Suze: take a joint and Survivor benefit, 145 00:10:57,539 --> 00:11:01,789 Suze: normally, unless your place has where they have a cost 146 00:11:01,799 --> 00:11:05,289 Suze: of living increase where I don't think they do, but 147 00:11:05,299 --> 00:11:09,900 Suze: you are stuck at $1211 a month while you are 148 00:11:09,909 --> 00:11:14,330 Suze: alive for 20 years, maybe 30 years 149 00:11:15,309 --> 00:11:19,130 Suze: or maybe you live another 10 years or 20 years 150 00:11:19,140 --> 00:11:23,250 Suze: and then you die and Susan is stuck at $605 151 00:11:23,260 --> 00:11:26,819 Suze: a month. It has not grown at all. 152 00:11:27,890 --> 00:11:31,640 Suze: That is something you need to think about. 153 00:11:32,520 --> 00:11:36,859 Suze: So, if I were you, first of all, no way 154 00:11:36,869 --> 00:11:43,119 Suze: would I be taking a 50% joint and Survivor benefit. 155 00:11:44,330 --> 00:11:49,390 Suze: Also, let's talk about social security because this is also 156 00:11:49,400 --> 00:11:54,950 Suze: a problem because your wife is eight years younger than you. 157 00:11:55,760 --> 00:12:00,699 Suze: First of all, you collecting social security at 62 is 158 00:12:00,710 --> 00:12:02,580 Suze: just off the table. So I'm not even going to 159 00:12:02,590 --> 00:12:05,780 Suze: go there with you, forget about it. But let's say 160 00:12:05,789 --> 00:12:11,380 Suze: you wait till you are 67 years of age. 161 00:12:12,250 --> 00:12:15,340 Suze: But at 67 years of age, which is just in 162 00:12:15,349 --> 00:12:22,250 Suze: five years from now. Ed, your wife is still only 59. 163 00:12:22,260 --> 00:12:25,590 Suze: So what does that mean? She is too young. She's 164 00:12:25,599 --> 00:12:30,429 Suze: under 62. So she can't claim her social security and 165 00:12:30,440 --> 00:12:34,989 Suze: she can't even get half of your social security at all. 166 00:12:35,400 --> 00:12:39,210 Suze: If she claimed it at 62 she would only get 167 00:12:39,219 --> 00:12:43,210 Suze: a portion of it. Not her full half of the 168 00:12:43,219 --> 00:12:44,859 Suze: social security. 169 00:12:45,700 --> 00:12:48,559 Suze: She would have to wait till she was at least 170 00:12:48,570 --> 00:12:51,359 Suze: 67 years of age 171 00:12:52,320 --> 00:12:57,669 Suze: to claim 50% of your social security. If that happened 172 00:12:57,679 --> 00:13:02,140 Suze: to be higher than 100% of her social security. 173 00:13:02,830 --> 00:13:05,369 Suze: I want you to think about that. 174 00:13:06,080 --> 00:13:11,799 Suze: So it will be at least another eight years until 175 00:13:11,809 --> 00:13:16,650 Suze: your wife can collect social security at all until she 176 00:13:16,659 --> 00:13:17,940 Suze: is 62. 177 00:13:19,179 --> 00:13:21,960 Suze: Then when you look at that, she still has to 178 00:13:21,969 --> 00:13:26,479 Suze: wait another five more years. So she is 67 179 00:13:27,210 --> 00:13:30,900 Suze: to collect 50% of what your benefit would have been 180 00:13:30,909 --> 00:13:34,468 Suze: at 67. If that was a plan that you happen 181 00:13:34,479 --> 00:13:35,429 Suze: to have, 182 00:13:36,049 --> 00:13:39,229 Suze: you two are just gonna have to decide when do 183 00:13:39,239 --> 00:13:43,549 Suze: you collect social security? What is her social security? And 184 00:13:43,559 --> 00:13:47,228 Suze: you have to work on it as a team. My advice, 185 00:13:47,239 --> 00:13:49,190 Suze: given the age difference here 186 00:13:49,969 --> 00:13:53,429 Suze: and given when she is going to be old enough 187 00:13:53,440 --> 00:13:57,409 Suze: to collect social security and old enough to collect 50% 188 00:13:57,440 --> 00:14:01,959 Suze: of your social security is you should not be collecting 189 00:14:01,969 --> 00:14:07,710 Suze: social security until you are 70 years of age 190 00:14:08,309 --> 00:14:12,219 Suze: and you just figure it out from there. But do 191 00:14:12,229 --> 00:14:17,469 Suze: you understand how you retiring early with a spouse that 192 00:14:17,479 --> 00:14:20,169 Suze: is eight years younger than you? 193 00:14:21,049 --> 00:14:29,570 Suze: Really? Your retirement has screwed up a fabulous possible financial plan, 194 00:14:29,640 --> 00:14:33,190 Suze: which is why your spouse was so stressed out that 195 00:14:33,200 --> 00:14:37,469 Suze: you were going to retire. You should have listened to her. 196 00:14:37,479 --> 00:14:41,750 Suze: But all right, you didn't. But here we are, let's 197 00:14:41,760 --> 00:14:43,859 Suze: continue on with this. 198 00:14:44,200 --> 00:14:48,510 Suze: What should you be doing? What you should be doing 199 00:14:48,520 --> 00:14:52,859 Suze: if you ask me is you, even though you are retiring, 200 00:14:53,200 --> 00:14:58,229 Suze: you need to go back to work number one, just 201 00:14:58,239 --> 00:15:01,210 Suze: because you can't stand working at the job that you 202 00:15:01,219 --> 00:15:05,280 Suze: are working at does not mean that you cannot work 203 00:15:05,289 --> 00:15:08,140 Suze: somewhere else. So, if I were you, 204 00:15:08,460 --> 00:15:12,340 Suze: I would go back and find another job, go somewhere, 205 00:15:12,349 --> 00:15:17,510 Suze: do whatever and you need to work until you are 206 00:15:17,520 --> 00:15:22,690 Suze: 70 years of age. Do you hear me, Ed? Because 207 00:15:22,700 --> 00:15:26,000 Suze: that would be optimum? Now, obviously, I don't know what 208 00:15:26,010 --> 00:15:29,080 Suze: other assets you have. I don't know, whatever. But your 209 00:15:29,090 --> 00:15:30,960 Suze: wife is really, really smart 210 00:15:31,640 --> 00:15:36,179 Suze: and there must have been a financial reason why she 211 00:15:36,190 --> 00:15:40,460 Suze: wanted you not to retire. And I am assuming, since 212 00:15:40,469 --> 00:15:42,049 Suze: she does all the money 213 00:15:42,700 --> 00:15:46,530 Suze: that she knows there isn't enough money for you to 214 00:15:46,539 --> 00:15:52,000 Suze: have retired right now. That's my opinion if I'm wrong 215 00:15:52,010 --> 00:15:56,169 Suze: about that. Ok. But let's just assume I'm not. 216 00:15:56,840 --> 00:16:00,099 Suze: So you are gonna go back to work hopefully for 217 00:16:00,109 --> 00:16:07,260 Suze: another eight years. Now, let's talk about the $200,000 218 00:16:07,960 --> 00:16:12,640 Suze: that you have in an annuity where you work. First 219 00:16:12,650 --> 00:16:14,960 Suze: of all, you are not going to take the joint 220 00:16:14,969 --> 00:16:17,679 Suze: and survivor option. You are not going to take it 221 00:16:17,690 --> 00:16:21,090 Suze: out over 5, 1015 years or whatever. What you are 222 00:16:21,099 --> 00:16:25,739 Suze: going to do is exactly what your spouse told you. 223 00:16:25,750 --> 00:16:28,820 Suze: You should do. You are going to 224 00:16:29,005 --> 00:16:33,924 Suze: roll it over to an IRA rollover and invest it 225 00:16:33,934 --> 00:16:38,505 Suze: and let it grow for eight years to answer two 226 00:16:38,515 --> 00:16:41,984 Suze: of your questions. No, you cannot put it into a 227 00:16:41,994 --> 00:16:46,205 Suze: Roth Ira because if you did, you would be converting 228 00:16:46,215 --> 00:16:48,864 Suze: it and in the year that you did that, which 229 00:16:48,875 --> 00:16:52,614 Suze: would be now, you've already worked a whole part of 230 00:16:52,625 --> 00:16:56,744 Suze: this year already. So, your income probably is up there. 231 00:16:57,080 --> 00:17:02,099 Suze: You would owe probably $100,000 of income tax depending if 232 00:17:02,109 --> 00:17:04,489 Suze: you live in a state that has a high tax, 233 00:17:04,500 --> 00:17:05,780 Suze: state bracket or not 234 00:17:06,198 --> 00:17:11,229 Suze: to taxes. So, no, you cannot do that. Number one, 235 00:17:11,259 --> 00:17:15,499 Suze: number two, you should do it exactly as your spouse 236 00:17:15,509 --> 00:17:20,438 Suze: told you to do so, do a custodian to custodian transfer, 237 00:17:20,448 --> 00:17:24,249 Suze: which means with the aid of your wife, you are 238 00:17:24,259 --> 00:17:29,159 Suze: going to open up an IRA rollover at either fidelity 239 00:17:29,198 --> 00:17:31,937 Suze: at Schwab wherever you want to do it. 240 00:17:32,569 --> 00:17:36,569 Suze: And then you're going to have your custodian where you 241 00:17:36,579 --> 00:17:40,709 Suze: work right now transfer it to your new custodian. It 242 00:17:40,719 --> 00:17:44,250 Suze: is not going to come to you as a check. 243 00:17:44,469 --> 00:17:48,709 Suze: If your employer will not do that, simply have them 244 00:17:48,719 --> 00:17:54,709 Suze: make the $200,000 check out to your new custodian. Not 245 00:17:54,719 --> 00:17:57,979 Suze: to you. Ed. Do you hear me? 246 00:17:58,449 --> 00:18:02,550 Suze: Then you have 60 days from getting that check to 247 00:18:02,560 --> 00:18:07,270 Suze: putting it in to your new Ira rollover account. 248 00:18:07,910 --> 00:18:11,569 Suze: So now you have $200,000 in that account. 249 00:18:12,380 --> 00:18:17,139 Suze: Now you have this fear. It's not FDIC insured. Well, 250 00:18:17,150 --> 00:18:21,880 Suze: if you invested all of it in a certificate of deposit, 251 00:18:22,550 --> 00:18:27,760 Suze: then it would be FDIC insured because certificates of deposits 252 00:18:27,770 --> 00:18:31,569 Suze: are insured. If you put it all in treasury bills, 253 00:18:31,579 --> 00:18:35,409 Suze: bonds or notes, then it's guaranteed by the full faith 254 00:18:35,680 --> 00:18:38,900 Suze: of the United States government. If you decide, let's say 255 00:18:38,910 --> 00:18:42,449 Suze: to put it in Alliant Credit Union, then it's insured 256 00:18:42,459 --> 00:18:45,329 Suze: by NCUA and you're fine there. 257 00:18:45,619 --> 00:18:50,329 Suze: It's insured up to $250,000. So you don't have to 258 00:18:50,339 --> 00:18:54,969 Suze: worry about it if you have a beneficiary on the IRA, 259 00:18:54,979 --> 00:18:58,680 Suze: which you should and it should absolutely be your spouse 260 00:18:59,479 --> 00:19:03,939 Suze: and maybe contingent beneficiaries being maybe one child or somebody 261 00:19:03,949 --> 00:19:07,290 Suze: else in case you and your spouse are killed in 262 00:19:07,300 --> 00:19:11,389 Suze: a car crash together, then you're insured up to $500,000. 263 00:19:11,400 --> 00:19:15,000 Suze: So I would not be worrying about that on any level. 264 00:19:15,010 --> 00:19:18,619 Suze: And that sir would not be the reason 265 00:19:19,060 --> 00:19:21,359 Suze: is this kind of like a Suze slap down maybe 266 00:19:21,369 --> 00:19:23,639 Suze: a little bit. I don't mean it to be Ed 267 00:19:23,650 --> 00:19:26,550 Suze: but I need to be firm with everybody and with 268 00:19:26,560 --> 00:19:29,319 Suze: you on all of this because what I am telling 269 00:19:29,329 --> 00:19:32,170 Suze: all of you right now is so important. It's not 270 00:19:32,180 --> 00:19:33,040 Suze: even funny. 271 00:19:33,859 --> 00:19:37,250 Suze: Right. But you sir should not be using the fact 272 00:19:37,260 --> 00:19:38,880 Suze: that it's not insured 273 00:19:39,910 --> 00:19:43,579 Suze: to have to choose the very first choice of the 274 00:19:43,589 --> 00:19:46,829 Suze: joint and Survivor annuity. And by the way, if you 275 00:19:46,839 --> 00:19:49,930 Suze: put it into a brokerage firm, 276 00:19:50,560 --> 00:19:54,520 Suze: it's gonna be insured under SIC there, you'll be fine. 277 00:19:54,530 --> 00:19:59,290 Suze: All right. So stop it and don't be ridiculous about this. Ok? 278 00:20:00,010 --> 00:20:05,969 Suze: Now you have this $200,000 in an IRA rollover and 279 00:20:05,979 --> 00:20:08,569 Suze: you will decide what it is that you want to 280 00:20:08,579 --> 00:20:13,199 Suze: do with it. If you need to be 100% secure, 281 00:20:13,560 --> 00:20:19,510 Suze: then fine, put it all in different treasury maturities, short term, 282 00:20:19,520 --> 00:20:23,010 Suze: long term, whatever it is that makes you feel ok 283 00:20:23,020 --> 00:20:25,270 Suze: or do a laddered CD 284 00:20:25,739 --> 00:20:29,280 Suze: for one year, three years, five years, whatever it may 285 00:20:29,290 --> 00:20:31,400 Suze: be that makes you feel secure 286 00:20:32,219 --> 00:20:36,619 Suze: or if you wanna also be smart with the money, 287 00:20:36,650 --> 00:20:39,359 Suze: maybe you do some of that and maybe you buy 288 00:20:39,369 --> 00:20:42,429 Suze: some dividend paying stocks that are at six or 7% 289 00:20:42,439 --> 00:20:45,119 Suze: right now or whatever it may be. 290 00:20:45,839 --> 00:20:48,099 Suze: But there are things that you can do with it 291 00:20:48,140 --> 00:20:54,040 Suze: so that nothing happens to this money, but probably eight 292 00:20:54,050 --> 00:21:00,569 Suze: years from now, even at 4% 5% you're going to 293 00:21:00,579 --> 00:21:05,420 Suze: have approximately $300,000 in there. 294 00:21:06,109 --> 00:21:11,889 Suze: And even if you invested that at just a 4 4.5% rate, 295 00:21:12,380 --> 00:21:17,260 Suze: that would equate exactly to what you are going to 296 00:21:17,270 --> 00:21:21,849 Suze: get from the 50% joint and Survivor annuity. And if 297 00:21:21,859 --> 00:21:26,159 Suze: you die, your spouse will continue to get that as well. 298 00:21:26,890 --> 00:21:31,670 Suze: So it is really, really important that you understand 299 00:21:32,329 --> 00:21:38,949 Suze: exactly how it works. Now, what's really important about this 300 00:21:38,959 --> 00:21:44,270 Suze: podcast is at this point in your life where you 301 00:21:44,280 --> 00:21:48,709 Suze: apologize to your wife, where you want to show her 302 00:21:48,729 --> 00:21:52,750 Suze: that you really care and you wanna show the other 303 00:21:52,760 --> 00:21:57,949 Suze: husbands out there or spouses that the mistake that you 304 00:21:57,959 --> 00:22:00,589 Suze: made should be a lesson to others 305 00:22:01,219 --> 00:22:03,719 Suze: and then live your life. So you don't have to 306 00:22:03,729 --> 00:22:07,869 Suze: worry about it. The two of you need to sit 307 00:22:07,880 --> 00:22:13,719 Suze: down and decide what you should do, but you need 308 00:22:13,729 --> 00:22:18,680 Suze: to listen to your wife. You really need to take 309 00:22:18,689 --> 00:22:22,520 Suze: her suggestions. So with the utmost of respect to you, Ed, 310 00:22:23,010 --> 00:22:27,218 Suze: the mere fact of and I say this with love really, 311 00:22:27,250 --> 00:22:28,170 Suze: of the naivete, 312 00:22:30,310 --> 00:22:34,369 Suze: the bare fact that you ask certain questions, like, can 313 00:22:34,380 --> 00:22:37,020 Suze: I open up a Roth IRA? Can I do this? 314 00:22:37,030 --> 00:22:42,410 Suze: Can I do? That shows that innocently really your knowledge 315 00:22:42,420 --> 00:22:46,780 Suze: of money and how it works is nil is nil 316 00:22:46,790 --> 00:22:48,129 Suze: at this point in time, 317 00:22:48,640 --> 00:22:54,579 Suze: but the knowledge of your spouse is absolutely extraordinary. So 318 00:22:54,589 --> 00:22:59,770 Suze: your spouse needs to become the lead in what you do. 319 00:22:59,780 --> 00:23:03,089 Suze: She obviously has been listening to the Women and Money 320 00:23:03,099 --> 00:23:06,869 Suze: podcast for a long time or possibly reading my books 321 00:23:06,880 --> 00:23:10,219 Suze: or watching the Suze Orman show or has another 322 00:23:10,829 --> 00:23:14,650 Suze: person that she listens to. But whoever she's listening to, 323 00:23:14,880 --> 00:23:21,530 Suze: she has become sophisticated with money. She has become knowledgeable 324 00:23:21,540 --> 00:23:23,760 Suze: with what to do with money. 325 00:23:24,520 --> 00:23:29,839 Suze: So therefore, don't try to exert your power. Now, in 326 00:23:29,849 --> 00:23:32,859 Suze: terms of what you wanna do with this, I do 327 00:23:32,869 --> 00:23:36,899 Suze: not like when you say you wanna control this money, 328 00:23:37,390 --> 00:23:43,030 Suze: this is not your money, this is the both of 329 00:23:43,040 --> 00:23:47,109 Suze: your money. And I'm telling you if she divorced you, 330 00:23:47,209 --> 00:23:51,300 Suze: you would lose, I'm sure half of it to her 331 00:23:51,890 --> 00:23:55,489 Suze: and she probably would make more out of the $100,000 332 00:23:55,500 --> 00:23:57,949 Suze: that she got than you would make out of the 333 00:23:57,959 --> 00:24:02,069 Suze: $100,000 that you would be left with. So when you say, 334 00:24:02,079 --> 00:24:04,790 Suze: and you said it, I think twice in your email 335 00:24:05,219 --> 00:24:08,099 Suze: that you want control over this money, 336 00:24:08,979 --> 00:24:12,520 Suze: you did not say I want us all to have 337 00:24:12,530 --> 00:24:15,879 Suze: control over the money. You said the word I, 338 00:24:16,949 --> 00:24:20,729 Suze: so you have to do this so that it is 339 00:24:20,739 --> 00:24:23,890 Suze: an equal thing because your wife is correct. This is 340 00:24:23,900 --> 00:24:29,109 Suze: both of your money, but more importantly than what you 341 00:24:29,119 --> 00:24:30,609 Suze: do with this money. 342 00:24:31,300 --> 00:24:35,839 Suze: It's at this point in time when you show your 343 00:24:35,849 --> 00:24:36,479 Suze: wife 344 00:24:37,180 --> 00:24:38,469 Suze: the respect 345 00:24:39,709 --> 00:24:44,530 Suze: that she deserves. Number one, the lessons that you have learned. 346 00:24:44,540 --> 00:24:45,688 Suze: Number two 347 00:24:46,550 --> 00:24:51,459 Suze: and how really sorry you are for all the years 348 00:24:51,810 --> 00:24:54,129 Suze: that you have put her through this. 349 00:24:54,959 --> 00:24:58,649 Suze: All right, everybody at this point in time, we are 350 00:24:58,660 --> 00:25:04,869 Suze: actually in Zimbabwe where by Victoria Falls, we're at a 351 00:25:04,880 --> 00:25:08,719 Suze: place called the River something Lodge. I can't remember even 352 00:25:08,729 --> 00:25:13,689 Suze: where we're going to be. But right now tonight, we're 353 00:25:13,699 --> 00:25:20,380 Suze: probably going down the river on a boat looking for animals. 354 00:25:20,869 --> 00:25:22,729 Suze: And then tomorrow 355 00:25:23,140 --> 00:25:26,599 Suze: is my sister in law Barbara's birthday 356 00:25:27,319 --> 00:25:31,020 Suze: and we will be outside of our little house there 357 00:25:31,439 --> 00:25:34,698 Suze: and we will be having a bonfire and we will 358 00:25:34,709 --> 00:25:40,020 Suze: be having hopefully drummers drumming to her and we each 359 00:25:40,030 --> 00:25:45,300 Suze: have written something for her and we have already gone. 360 00:25:45,310 --> 00:25:47,920 Suze: Now at this point in time to see the elephants 361 00:25:47,930 --> 00:25:50,859 Suze: and to go to elephant school because she loves elephants. 362 00:25:51,040 --> 00:25:54,270 Suze: And we all will have dressed up as an elephant 363 00:25:54,280 --> 00:25:55,208 Suze: for her 364 00:25:55,449 --> 00:25:59,709 Suze: and we will be eating around a big bonfire and 365 00:25:59,719 --> 00:26:03,069 Suze: we will be telling her how much we love her, 366 00:26:03,739 --> 00:26:09,229 Suze: adore her and have incredible gratitude that she is in 367 00:26:09,239 --> 00:26:14,319 Suze: our lives and wishing her, of course the most happiest 368 00:26:14,329 --> 00:26:16,239 Suze: birthday of all. 369 00:26:16,869 --> 00:26:21,290 Suze: So until the next podcast, there's only one thing that 370 00:26:21,300 --> 00:26:23,099 Suze: I want you to remember when it comes to your 371 00:26:23,109 --> 00:26:27,770 Suze: money and it is this people first ed. You remember that, 372 00:26:27,780 --> 00:26:33,810 Suze: that means your wife, people first, then money, then things 373 00:26:34,339 --> 00:26:39,218 Suze: now you stay safe and stay unstoppable.