1 00:00:40,348 --> 00:00:45,330 Suze: June 2nd 2024. Welcome everybody to the Women and Money 2 00:00:45,340 --> 00:00:50,139 Suze: podcast as well as Everybody Smart Enough to Listen, Suze 3 00:00:50,150 --> 00:00:53,639 Suze: O here and today is Suze School. But before we 4 00:00:53,650 --> 00:00:58,330 Suze: go into Suze School, a few announcements that I want 5 00:00:58,340 --> 00:00:59,529 Suze: to make. 6 00:01:00,189 --> 00:01:06,169 Suze: Obviously, you probably have heard that June 5th is my birthday. 7 00:01:06,910 --> 00:01:11,410 Suze: So that also seems to be however an important date 8 00:01:11,550 --> 00:01:13,128 Suze: for all of you 9 00:01:13,839 --> 00:01:17,059 Suze: when it comes to Alliant Credit Union. And let me 10 00:01:17,069 --> 00:01:23,580 Suze: tell you why for the 18 month certificate of deposit 11 00:01:23,599 --> 00:01:25,580 Suze: at Alliant Credit Union, 12 00:01:26,639 --> 00:01:33,419 Suze: the interest rate is going to go down from 4.9% 4.95% 13 00:01:33,430 --> 00:01:42,809 Suze: for $75,000 or more down to 4.8% and 4.85% for 14 00:01:42,819 --> 00:01:48,540 Suze: amounts of $75,000 or more. So, you need to know that. 15 00:01:49,230 --> 00:01:52,779 Suze: Now if it were me, I would be looking at 16 00:01:52,790 --> 00:01:56,779 Suze: the 12 month, which is good all the way from 17 00:01:56,790 --> 00:02:02,250 Suze: 12 months, 13 months, 14 months and so on up 18 00:02:02,260 --> 00:02:05,930 Suze: to 17 months and 30 days. 19 00:02:06,510 --> 00:02:14,970 Suze: And for there, you can still get 5.15% or 5.20% 20 00:02:15,179 --> 00:02:18,970 Suze: for amounts of $75,000 or more. So, if you are 21 00:02:18,979 --> 00:02:24,288 Suze: tempted to get an 18 month certificate of deposit, 22 00:02:24,910 --> 00:02:28,649 Suze: I don't know, I would get the 17 month and 23 00:02:28,660 --> 00:02:29,770 Suze: 30 day one 24 00:02:31,008 --> 00:02:36,710 Suze: at Alliant Credit Union. You would go to my alliant.com again. 25 00:02:36,720 --> 00:02:41,369 Suze: They only advertise the 12 month, the 18 month and those, 26 00:02:41,380 --> 00:02:45,229 Suze: but you call and you can get the 17 month 27 00:02:45,240 --> 00:02:47,210 Suze: if you so choose 28 00:02:48,038 --> 00:02:54,020 Suze: Next, the Suze quiz. You have two days left till 29 00:02:54,029 --> 00:02:59,470 Suze: June 4th to go to my alliant.com and do what? 30 00:02:59,479 --> 00:03:03,149 Suze: Take the Suze quiz. All you have to do is 31 00:03:03,160 --> 00:03:07,009 Suze: answer five questions. Doesn't matter whether you get them right, 32 00:03:07,020 --> 00:03:10,149 Suze: you get them wrong. But after you've answered all five, 33 00:03:10,160 --> 00:03:12,850 Suze: you get to put in your email and somebody on 34 00:03:12,860 --> 00:03:13,910 Suze: my birthday, 35 00:03:14,410 --> 00:03:17,508 Suze: their email will be chosen and one of you will 36 00:03:17,520 --> 00:03:23,479 Suze: win $5,000. Now, I don't know if you haven't done 37 00:03:23,490 --> 00:03:26,619 Suze: that yet or not. I don't know if you haven't 38 00:03:26,630 --> 00:03:29,728 Suze: told all of your friends about it or not. I 39 00:03:29,740 --> 00:03:32,429 Suze: don't know if you haven't gone out on the streets 40 00:03:32,440 --> 00:03:36,750 Suze: and shouted it to everybody or not. But you should 41 00:03:37,169 --> 00:03:42,750 Suze: because there are no strings attached here. Everybody. It's my birthday. 42 00:03:43,039 --> 00:03:46,809 Suze: It's $5,000. And what have I been doing with you 43 00:03:46,820 --> 00:03:49,589 Suze: all these years on some level. I've been paying you 44 00:03:49,600 --> 00:03:52,270 Suze: to save or Alliant Credit Union has been paying you 45 00:03:52,279 --> 00:03:55,710 Suze: to save. I've been trying to get you involved with 46 00:03:55,720 --> 00:03:56,750 Suze: your money 47 00:03:57,800 --> 00:03:59,789 Suze: and I don't know, I don't think there's a better 48 00:03:59,800 --> 00:04:05,779 Suze: way to get involved with money than a free $5,000. 49 00:04:05,789 --> 00:04:08,779 Suze: Simply to see. Are you being smart with your money 50 00:04:08,789 --> 00:04:12,259 Suze: or are you not when you take the quiz? 51 00:04:13,179 --> 00:04:18,709 Suze: All right. That's number two again - go to my alliant.com. 52 00:04:18,988 --> 00:04:24,349 Suze: Number three and I'm really excited to announce this for 53 00:04:24,359 --> 00:04:28,269 Suze: a while. Now, you haven't been hearing me speak about 54 00:04:28,279 --> 00:04:31,869 Suze: what I call the must have documents 55 00:04:32,450 --> 00:04:37,359 Suze: and the must have documents happen to be a will 56 00:04:37,500 --> 00:04:41,399 Suze: a revocable trust, an advance directive and durable power of 57 00:04:41,410 --> 00:04:44,428 Suze: attorney for health care as well as a power of 58 00:04:44,440 --> 00:04:49,690 Suze: attorney for finances. And those are documents that I call 59 00:04:49,700 --> 00:04:54,549 Suze: the must have documents because in my opinion, you must 60 00:04:54,559 --> 00:04:57,690 Suze: have them and I used to talk about them all 61 00:04:57,700 --> 00:05:00,940 Suze: the time and all the time. You would see them everywhere. 62 00:05:01,640 --> 00:05:05,659 Suze: But then Hay House, who is the actual manufacturer of 63 00:05:05,670 --> 00:05:11,469 Suze: those documents, decided it was time to totally update them, 64 00:05:11,630 --> 00:05:15,979 Suze: do everything new on them, have new lawyers, everything, re 65 00:05:15,988 --> 00:05:21,019 Suze: evaluate them the whole thing and that took, believe it 66 00:05:21,029 --> 00:05:26,480 Suze: or not approximately, I wanna say eight months or longer 67 00:05:27,779 --> 00:05:31,760 Suze: that process now has been totally completed. 68 00:05:32,410 --> 00:05:37,839 Suze: So now, Hay House, once again, is offering them for sale, 69 00:05:38,178 --> 00:05:45,079 Suze: just simply go to must have Docs D-O-C-S docs.com and 70 00:05:45,089 --> 00:05:48,789 Suze: that's where you can purchase them currently. They are being 71 00:05:48,799 --> 00:05:51,659 Suze: offered for $99 72 00:05:52,190 --> 00:05:57,118 Suze: and eventually that will go to $199 because of all 73 00:05:57,130 --> 00:06:01,079 Suze: the work that went into them. For those of you 74 00:06:01,089 --> 00:06:05,880 Suze: who have already purchased the must have docs. Hey, you're 75 00:06:05,890 --> 00:06:08,558 Suze: happy you don't want to change anything. You don't have 76 00:06:08,570 --> 00:06:12,220 Suze: to your documents. I'm sure if you've done them correctly 77 00:06:12,230 --> 00:06:18,200 Suze: are valid just like they are. However, whenever you purchase 78 00:06:18,209 --> 00:06:21,289 Suze: the must have docs, you also get the right 79 00:06:21,589 --> 00:06:25,220 Suze: when there is an update to get that update for 80 00:06:25,230 --> 00:06:30,489 Suze: absolutely free. So if you want, why not just go 81 00:06:30,500 --> 00:06:35,859 Suze: to your docs, push update, update it, look at everything again. 82 00:06:35,869 --> 00:06:38,019 Suze: And so what if you have to notarize it and 83 00:06:38,029 --> 00:06:40,579 Suze: do everything again like that? It's not that big of 84 00:06:40,589 --> 00:06:44,290 Suze: a deal. Your information will automatically transfer for you. 85 00:06:44,950 --> 00:06:47,850 Suze: And just so you know that you have the latest 86 00:06:47,859 --> 00:06:52,089 Suze: and the greatest, but totally up to you. 87 00:06:52,950 --> 00:06:55,649 Suze: Now, the other thing I just want you to know 88 00:06:55,660 --> 00:07:01,519 Suze: about these must have documents is that unlike other programs 89 00:07:01,529 --> 00:07:05,529 Suze: that you are probably seeing advertised all the time on TV, 90 00:07:06,350 --> 00:07:10,660 Suze: usually you're seeing it for just one doc like a 91 00:07:10,670 --> 00:07:14,049 Suze: will or whatever it may be. No place else. Are 92 00:07:14,059 --> 00:07:18,250 Suze: you going to get all of the must have documents? 93 00:07:18,920 --> 00:07:22,609 Suze: Not only are you going to have the ability to 94 00:07:22,619 --> 00:07:25,989 Suze: update those must have documents as much as you want, 95 00:07:26,000 --> 00:07:30,679 Suze: change them as your situation changes for no more money, 96 00:07:30,690 --> 00:07:34,119 Suze: share them with your family members for no more money, 97 00:07:35,329 --> 00:07:39,029 Suze: but really have them be the state of the art 98 00:07:39,040 --> 00:07:44,230 Suze: documents for you. So up to you, but that's just 99 00:07:44,239 --> 00:07:50,109 Suze: something that's there that is $2,500 worth of state of 100 00:07:50,119 --> 00:07:55,190 Suze: the art documents that once again, Hay House is making available 101 00:07:55,200 --> 00:07:58,980 Suze: to all of you by just simply going to must 102 00:07:58,989 --> 00:08:00,190 Suze: have docs doc 103 00:08:00,375 --> 00:08:04,345 Suze: dot com. All right. Now, what else do I want 104 00:08:04,355 --> 00:08:07,475 Suze: to talk to you about? All right. On the women 105 00:08:07,484 --> 00:08:10,545 Suze: and money community app, you can see many of the 106 00:08:10,554 --> 00:08:14,295 Suze: pictures from our safari that we went on a week 107 00:08:14,304 --> 00:08:17,704 Suze: or so ago and you might want to take advantage 108 00:08:17,714 --> 00:08:18,334 Suze: of that. 109 00:08:18,690 --> 00:08:22,480 Suze: And if you want to ask a question that KT 110 00:08:22,489 --> 00:08:26,140 Suze: and I hopefully will be answering on the Ask Suze 111 00:08:26,149 --> 00:08:30,619 Suze: and KT Anything edition of this podcast, go to Ask 112 00:08:30,980 --> 00:08:36,570 Suze: Suze podcast at gmail.com and that is where you send 113 00:08:36,580 --> 00:08:40,330 Suze: them in. I mean, I guess that's enough for all 114 00:08:40,340 --> 00:08:42,760 Suze: of this podcast. I just use up all the time. 115 00:08:42,770 --> 00:08:43,919 Suze: I have not 116 00:08:44,729 --> 00:08:47,510 Suze: now, two things I want to talk to you about 117 00:08:47,700 --> 00:08:51,549 Suze: and it's about Suze School. So take out your notebooks 118 00:08:53,340 --> 00:08:56,640 Suze: just a day or two ago, the new inflation data 119 00:08:56,650 --> 00:09:00,489 Suze: came out and everything and what was expected, what was not. 120 00:09:00,500 --> 00:09:02,739 Suze: And here's the bottom line without going into a whole 121 00:09:02,750 --> 00:09:07,840 Suze: lot of numbers like who even cares, nothing is moving 122 00:09:07,849 --> 00:09:11,960 Suze: when it comes to inflation, maybe it's going up a little, 123 00:09:11,969 --> 00:09:15,940 Suze: but it's definitely not really coming down. So I think 124 00:09:15,950 --> 00:09:17,189 Suze: in the long run, 125 00:09:17,849 --> 00:09:20,260 Suze: what you probably are going to see is not a 126 00:09:20,270 --> 00:09:23,630 Suze: whole lot of movement with the fed funds rate. And 127 00:09:23,640 --> 00:09:25,469 Suze: you should just know that 128 00:09:26,169 --> 00:09:29,079 Suze: I do think in the long run, what we will 129 00:09:29,090 --> 00:09:31,880 Suze: probably see is that the feds are going to have 130 00:09:31,890 --> 00:09:38,468 Suze: to come off of their 2% inflation target and probably 131 00:09:38,479 --> 00:09:43,900 Suze: settle for something around 2.4% or so before they start 132 00:09:43,909 --> 00:09:49,218 Suze: moving the fed funds rate. But eventually interest rates have 133 00:09:49,229 --> 00:09:52,609 Suze: to start coming down. They just do 134 00:09:53,520 --> 00:09:58,488 Suze: so. Therefore, we'll see how long that takes. But until 135 00:09:58,500 --> 00:10:02,289 Suze: there is evidence that it's probable that the feds are 136 00:10:02,299 --> 00:10:04,179 Suze: going to start to lower interest rate. 137 00:10:04,510 --> 00:10:09,429 Suze: You're still ok. Going short term with treasuries or shorter 138 00:10:09,440 --> 00:10:12,959 Suze: term certificates of deposits or whatever it is that you 139 00:10:12,969 --> 00:10:16,699 Suze: may want or leaving the money in a money market account. Remember, 140 00:10:16,929 --> 00:10:21,940 Suze: we were expecting close to four, five or six fed funds 141 00:10:21,950 --> 00:10:26,580 Suze: cut this year. We haven't gotten any and chances are 142 00:10:26,590 --> 00:10:29,770 Suze: we may not get any this entire year. 143 00:10:30,549 --> 00:10:35,229 Suze: So we are where we are. However, a lot of 144 00:10:35,239 --> 00:10:37,939 Suze: you are writing me and you're saying, Suze, should I 145 00:10:37,950 --> 00:10:40,709 Suze: be buying 20 year bonds? Should I be buying 30 146 00:10:40,729 --> 00:10:43,799 Suze: year bonds? What should I be doing? You might want 147 00:10:43,809 --> 00:10:47,609 Suze: to be doing a little bit of everything. There is 148 00:10:47,619 --> 00:10:51,799 Suze: no way for me to know when something could happen 149 00:10:51,820 --> 00:10:56,280 Suze: when something could change the trajectory of interest rates. 150 00:10:56,859 --> 00:11:01,380 Suze: So therefore you do a little bit of it all, everyone. 151 00:11:01,390 --> 00:11:04,549 Suze: So stop Sam, especially you, you keep writing me and 152 00:11:04,559 --> 00:11:06,939 Suze: you're driving me crazy. I just want to tell you right? 153 00:11:06,950 --> 00:11:10,840 Suze: Is that not really but kind of Sam... There's no 154 00:11:10,859 --> 00:11:15,400 Suze: way for anybody to know given what's going on in 155 00:11:15,409 --> 00:11:20,010 Suze: the economy and everything that, yeah, stop buying short term 156 00:11:20,020 --> 00:11:23,449 Suze: now and just buy long term treasuries. No, don't buy 157 00:11:23,460 --> 00:11:26,739 Suze: long term just by short term. Nobody knows. 158 00:11:27,169 --> 00:11:30,030 Suze: So just do a little bit of it all and 159 00:11:30,039 --> 00:11:34,729 Suze: eventually you're gonna hit it right one way or the other. 160 00:11:34,849 --> 00:11:38,710 Suze: I personally thought that interest rates would already have started 161 00:11:38,719 --> 00:11:42,520 Suze: to come down, which is why I was purchasing 30 162 00:11:42,580 --> 00:11:46,190 Suze: year treasury bonds. I'm not upset that I purchased them. 163 00:11:46,880 --> 00:11:51,159 Suze: I don't care that our interest rates going up or down. 164 00:11:51,169 --> 00:11:54,179 Suze: I'm very happy with the interest rate. I locked in. 165 00:11:54,479 --> 00:11:57,179 Suze: I'm not worried about it. I plan to keep them 166 00:11:57,190 --> 00:12:00,559 Suze: long term or we'll see when interest rates do come down, 167 00:12:00,570 --> 00:12:05,539 Suze: what I'll do with them, but stop driving yourselves crazy. 168 00:12:06,609 --> 00:12:09,950 Suze: All right. There's one question that a lot of you 169 00:12:09,960 --> 00:12:12,390 Suze: seem to be asking me over and over again. And 170 00:12:12,400 --> 00:12:17,599 Suze: the question is, when are you and Keith Fitzgerald going 171 00:12:17,609 --> 00:12:20,939 Suze: to come out with an investment program to take care 172 00:12:20,950 --> 00:12:23,179 Suze: of all of our needs so that we know what 173 00:12:23,190 --> 00:12:26,969 Suze: to do. The answer to that question is I'm not 174 00:12:26,979 --> 00:12:28,500 Suze: exactly sure 175 00:12:29,190 --> 00:12:32,840 Suze: because when Keith and it will be Keith's program, because 176 00:12:32,849 --> 00:12:36,179 Suze: Keith is the expert on that. And I hope a 177 00:12:36,190 --> 00:12:39,849 Suze: lot of you listen to his Five with Fitz. They're 178 00:12:39,859 --> 00:12:44,369 Suze: absolutely free. And it's a nice little guide and obviously 179 00:12:44,380 --> 00:12:48,219 Suze: he refers everybody you want to know more by his 180 00:12:48,229 --> 00:12:51,700 Suze: one bar ahead newsletter, which I think is $1,500 a year. 181 00:12:51,710 --> 00:12:54,619 Suze: So that may be too expensive for you and whatever 182 00:12:54,630 --> 00:12:55,409 Suze: it may be. 183 00:12:55,929 --> 00:13:00,109 Suze: But the Five with Fitz is free. And I think it's educational, 184 00:13:01,020 --> 00:13:05,000 Suze: but when Keith comes out with the program, he's got 185 00:13:05,010 --> 00:13:09,079 Suze: to test it, retest it, do the math on it 186 00:13:09,409 --> 00:13:12,218 Suze: have to figure out what is it that all of 187 00:13:12,229 --> 00:13:15,419 Suze: you want? What is it that all of you need? 188 00:13:16,179 --> 00:13:20,200 Suze: And it can't be something like, oh, you have $3 189 00:13:20,210 --> 00:13:22,478 Suze: million to invest. So this is what you need to do. 190 00:13:22,489 --> 00:13:26,919 Suze: It's gotta be something that's kind of generic for everybody 191 00:13:27,460 --> 00:13:30,080 Suze: no matter what amount of money you are going to 192 00:13:30,090 --> 00:13:34,309 Suze: be investing. So you have to be patient number one 193 00:13:34,320 --> 00:13:37,840 Suze: and see if that even happens because Keith has to 194 00:13:37,849 --> 00:13:39,590 Suze: know without a shadow of a doubt that it's gonna 195 00:13:39,599 --> 00:13:41,679 Suze: work and it's gonna work great. 196 00:13:42,880 --> 00:13:47,650 Suze: But you can't wait until that happens because if you're 197 00:13:47,659 --> 00:13:53,299 Suze: just waiting and you're possibly missing a whole lot of opportunities, 198 00:13:53,799 --> 00:13:55,059 Suze: so therefore, 199 00:13:55,750 --> 00:13:58,289 Suze: a lot of you are saying, what should I do? 200 00:13:58,559 --> 00:14:00,849 Suze: I don't know what to do. I need to know. 201 00:14:01,070 --> 00:14:04,890 Suze: And a lot of times when you don't know what 202 00:14:04,900 --> 00:14:08,598 Suze: to do, then you do what the majority of people 203 00:14:08,609 --> 00:14:12,449 Suze: are doing. Even Warren Buffett came out a little while 204 00:14:12,460 --> 00:14:15,929 Suze: ago and said, hey, an exchange traded fund buying the 205 00:14:15,940 --> 00:14:19,609 Suze: entire index, he doesn't have a problem with that whatsoever. 206 00:14:20,250 --> 00:14:23,030 Suze: Now, there are people who have problems with that. 207 00:14:23,700 --> 00:14:26,520 Suze: But if you're just wanting to get involved with the 208 00:14:26,530 --> 00:14:30,880 Suze: overall markets right now and you don't want a whole 209 00:14:30,890 --> 00:14:35,969 Suze: lot of different things that you don't understand. Start there, 210 00:14:35,979 --> 00:14:43,320 Suze: the big question becomes many of you are confused between 211 00:14:43,650 --> 00:14:47,950 Suze: an ETF by the symbol VOO. 212 00:14:48,489 --> 00:14:54,090 Suze: VOO which is the Vanguard Standard and Poor's 500 index 213 00:14:54,099 --> 00:15:00,780 Suze: ETF versus the SPY, which is the symbol for the 214 00:15:00,789 --> 00:15:08,619 Suze: Spider S and P 500 unit investment trust. It's an 215 00:15:08,630 --> 00:15:11,750 Suze: ETF trust. All right. 216 00:15:12,809 --> 00:15:17,510 Suze: And you keep saying Suze, which one is better if 217 00:15:17,520 --> 00:15:20,659 Suze: I'm going to invest in one or the other, which 218 00:15:20,669 --> 00:15:24,340 Suze: one should I invest in? Can you just tell me 219 00:15:24,349 --> 00:15:26,909 Suze: the difference between those two? 220 00:15:28,090 --> 00:15:29,719 Suze: So for those of you, 221 00:15:30,479 --> 00:15:35,500 Suze: there is an index called the Standard and Poor's 500 222 00:15:35,510 --> 00:15:41,710 Suze: index which is basically almost the entire stock market. 500 223 00:15:41,719 --> 00:15:46,719 Suze: of the largest companies, good companies, dividend, paying companies, all 224 00:15:46,729 --> 00:15:50,039 Suze: kinds of things. So a lot of people feel if 225 00:15:50,049 --> 00:15:53,130 Suze: they just were to buy into that index, 226 00:15:54,200 --> 00:15:56,700 Suze: then they would be ok and they don't have to 227 00:15:56,710 --> 00:16:00,900 Suze: worry about it. So that's probably true for the majority 228 00:16:00,909 --> 00:16:01,380 Suze: of you. 229 00:16:02,169 --> 00:16:05,229 Suze: However, then you take it a step further and go, 230 00:16:05,239 --> 00:16:12,210 Suze: what is the difference between VOO and SPY? And is 231 00:16:12,219 --> 00:16:16,419 Suze: there a difference at all? And the truth of the 232 00:16:16,429 --> 00:16:22,900 Suze: matter is if I had to choose between one or 233 00:16:22,909 --> 00:16:24,390 Suze: the other, 234 00:16:25,729 --> 00:16:32,080 Suze: I would choose the Vanguard Standard and Poor's 500 index 235 00:16:32,090 --> 00:16:39,989 Suze: ETF over the Spider S and P 500 ETF trust. 236 00:16:40,710 --> 00:16:44,479 Suze: Did it just shock all of you? Now remember for years, 237 00:16:44,489 --> 00:16:46,729 Suze: I've been telling you, I still like the Vanguard total 238 00:16:46,739 --> 00:16:52,099 Suze: stock market index ETF the VTIS that invested even more. 239 00:16:52,130 --> 00:16:56,929 Suze: But your question to me has been between those two 240 00:16:57,419 --> 00:17:04,010 Suze: VOO and Spider. Which one do I favor and why? 241 00:17:05,208 --> 00:17:08,598 Suze: All right. So you better get out like I said 242 00:17:08,609 --> 00:17:12,068 Suze: a little bit ago, your Suze notebooks because this is 243 00:17:12,078 --> 00:17:14,389 Suze: going to be quite the Suze school. 244 00:17:15,680 --> 00:17:18,218 Suze: First of all, VOO 245 00:17:18,939 --> 00:17:25,479 Suze: has a lower expense ratio than the Spider 246 00:17:26,280 --> 00:17:27,410 Suze: SPY. 247 00:17:28,500 --> 00:17:34,760 Suze: The VOO expense ratio is only 0.03% 248 00:17:35,849 --> 00:17:41,910 Suze: and the expense ratio for SPY is 0.09% 249 00:17:42,979 --> 00:17:47,699 Suze: not a big difference, but enough of a difference to matter. 250 00:17:48,780 --> 00:17:54,479 Suze: Now VOO was originated in 2010. 251 00:17:55,369 --> 00:18:00,780 Suze: The Spider was introduced in 1993 and we'll get to 252 00:18:00,790 --> 00:18:02,030 Suze: that in one second. 253 00:18:02,750 --> 00:18:06,569 Suze: But if you go back and compare the actual return 254 00:18:07,189 --> 00:18:11,890 Suze: for the VOO from 2010 to 2023 255 00:18:12,880 --> 00:18:17,099 Suze: you would have averaged 13.91% on your money. 256 00:18:17,880 --> 00:18:25,979 Suze: The spider, you would have averaged 13.87%. Not a big difference, 257 00:18:26,420 --> 00:18:33,989 Suze: but still a difference. Now, what accounts for that difference? 258 00:18:34,410 --> 00:18:36,458 Suze: All right. Are you ready for this? 259 00:18:37,390 --> 00:18:43,270 Suze: When the spider? The spy was originally created again, January 260 00:18:43,280 --> 00:18:44,839 Suze: of 1993 261 00:18:46,130 --> 00:18:51,949 Suze: ETFs did not exist back then. Nobody even had a 262 00:18:51,959 --> 00:18:54,718 Suze: clue what they were. 263 00:18:55,430 --> 00:18:57,849 Suze: So when they first came out and they were the 264 00:18:57,859 --> 00:19:03,449 Suze: very first ones to create an investment vehicle that followed 265 00:19:03,459 --> 00:19:04,489 Suze: an index, 266 00:19:05,260 --> 00:19:10,688 Suze: it was what was called a unit investment trust, which 267 00:19:10,699 --> 00:19:13,879 Suze: is why when you look at the full name of 268 00:19:13,890 --> 00:19:20,198 Suze: the spider, it's the Spider SPDR S & P 500 ETF 269 00:19:20,209 --> 00:19:21,180 Suze: trust 270 00:19:22,300 --> 00:19:25,399 Suze: and the difference between a trust 271 00:19:26,170 --> 00:19:33,069 Suze: and a regular exchange traded fund that Vanguard created 272 00:19:34,160 --> 00:19:37,438 Suze: in 2010 with the VOO 273 00:19:38,319 --> 00:19:41,020 Suze: Standard and Poor's 500 ETF 274 00:19:41,849 --> 00:19:46,359 Suze: is that there are differences in what each one of 275 00:19:46,369 --> 00:19:48,829 Suze: them can and cannot do. 276 00:19:49,520 --> 00:19:58,020 Suze: For instance, VOO can automatically reinvest dividends. So if you 277 00:19:58,030 --> 00:20:03,819 Suze: happen to buy a share of the VOO ETF, even 278 00:20:03,829 --> 00:20:07,520 Suze: if you do not tell them that you want your 279 00:20:07,530 --> 00:20:16,609 Suze: dividends reinvested, they automatically reinvest the dividends in the spider, 280 00:20:16,619 --> 00:20:18,020 Suze: the SPY, 281 00:20:18,949 --> 00:20:26,699 Suze: they are not allowed to automatically reinvest dividends. So unless 282 00:20:26,709 --> 00:20:31,209 Suze: you have instructed them that you want to be part 283 00:20:31,219 --> 00:20:35,329 Suze: of the dividend reinvestment program, 284 00:20:36,300 --> 00:20:40,550 Suze: then they distribute the dividends to you in cash. 285 00:20:42,180 --> 00:20:47,199 Suze: So if you happen to own the spiders, the SPY 286 00:20:47,859 --> 00:20:50,760 Suze: and you want your dividends reinvested, 287 00:20:51,689 --> 00:20:56,119 Suze: you have to let them know and tell them because 288 00:20:56,130 --> 00:21:03,130 Suze: they cannot by law automatically reinvest dividends while the VOO 289 00:21:03,400 --> 00:21:09,979 Suze: ETF absolutely can. Now, whether you know it or not, 290 00:21:10,069 --> 00:21:16,959 Suze: that is a big difference because when stocks or ETFs 291 00:21:17,030 --> 00:21:20,218 Suze: are going up and you're reinvesting dividends, 292 00:21:20,609 --> 00:21:25,630 Suze: you're actually getting a little bit higher of a return. Now, 293 00:21:25,640 --> 00:21:27,589 Suze: if you were to look over 294 00:21:28,349 --> 00:21:31,040 Suze: the past 10 years, 295 00:21:31,719 --> 00:21:37,609 Suze: the truth of the matter is VOO typically has provided 296 00:21:37,619 --> 00:21:44,859 Suze: a slightly higher dividend yield than the spiders did not 297 00:21:44,869 --> 00:21:49,780 Suze: by a lot, you know, in 2022 for instance, VOO 298 00:21:49,790 --> 00:21:54,540 Suze: paid a dividend of 1.50% while the spider paid a 299 00:21:54,550 --> 00:21:57,900 Suze: dividend of 1.47%. 300 00:21:58,880 --> 00:22:05,060 Suze: But over the past 10 years or so, VOO has 301 00:22:05,069 --> 00:22:12,079 Suze: been far more tax efficient than a spider. Now, I 302 00:22:12,089 --> 00:22:18,260 Suze: could go on and on about the difference between the two. Obviously, 303 00:22:18,270 --> 00:22:23,699 Suze: the spider is one of the most largely traded ETF 304 00:22:23,709 --> 00:22:27,020 Suze: trusts that are out there bar none. 305 00:22:27,680 --> 00:22:33,479 Suze: So because it's so large, when it trades, it trades 306 00:22:33,489 --> 00:22:37,869 Suze: at smaller increments than the VOO. So if you happen 307 00:22:37,880 --> 00:22:39,500 Suze: to be a trader 308 00:22:40,459 --> 00:22:43,430 Suze: and where you buy, you sell, you buy and sell 309 00:22:43,439 --> 00:22:48,010 Suze: the spiders, then a spider may be better for you. 310 00:22:48,439 --> 00:22:52,560 Suze: If you are a long term investor, 311 00:22:53,589 --> 00:22:57,589 Suze: then the voo would be better for you. 312 00:22:58,250 --> 00:23:02,390 Suze: So that is a very simplistic 313 00:23:03,390 --> 00:23:10,609 Suze: explanation between the two and again, for the majority of you, 314 00:23:10,619 --> 00:23:13,959 Suze: if you can't make up your mind because the differences 315 00:23:13,969 --> 00:23:17,770 Suze: are so different, I can't tell you. But every penny 316 00:23:17,780 --> 00:23:21,750 Suze: counts and therefore you want to count every penny in 317 00:23:21,760 --> 00:23:23,770 Suze: the long run for the majority of you 318 00:23:24,680 --> 00:23:31,369 Suze: vvoo, the symbol for the Vanguard Standard and Poor's 500 319 00:23:31,380 --> 00:23:38,099 Suze: ETF in the long run would be better for you 320 00:23:38,109 --> 00:23:43,979 Suze: if history continues to repeat itself. So, how is that 321 00:23:44,119 --> 00:23:47,380 Suze: for a Suze school? All right. 322 00:23:47,920 --> 00:23:50,369 Suze: I have to scoot. I'm gonna end this just a 323 00:23:50,380 --> 00:23:54,379 Suze: little bit early because KT and I are on the 324 00:23:54,390 --> 00:23:58,879 Suze: way again to the plane to go back to the island. 325 00:23:58,890 --> 00:24:02,079 Suze: They had one plane this morning that we could jump 326 00:24:02,089 --> 00:24:03,510 Suze: on and go back there. 327 00:24:03,829 --> 00:24:08,089 Suze: And I'm telling you we're happy and anxious to go back. 328 00:24:08,359 --> 00:24:11,770 Suze: So I'm gonna end this and I'm just gonna say 329 00:24:11,780 --> 00:24:14,569 Suze: I'm happy to be back. I hope you found this 330 00:24:14,579 --> 00:24:18,040 Suze: interesting today. And there's really only one thing that I 331 00:24:18,050 --> 00:24:20,170 Suze: want you to remember when it comes to your money 332 00:24:20,180 --> 00:24:25,639 Suze: and it is this people first, then money, then things 333 00:24:25,650 --> 00:24:28,790 Suze: and if you do that and stay safe, you will 334 00:24:28,800 --> 00:24:31,310 Suze: be unstoppable.