1 00:00:34,750 --> 00:00:39,759 KT: Everybody. Good morning. Good morning on this beautiful autumn October 2 00:00:39,770 --> 00:00:40,939 KT: 5th morning. 3 00:00:40,950 --> 00:00:41,819 Suze: Of what year? 4 00:00:41,830 --> 00:00:43,339 KT: 2023 baby. 5 00:00:43,348 --> 00:00:44,659 Suze: And what makes it so beautiful? 6 00:00:44,668 --> 00:00:46,130 KT: Because it's October. 7 00:00:46,509 --> 00:00:48,139 Suze: What does that have to do with anything? 8 00:00:48,150 --> 00:00:49,939 KT: The leaves are changing, 9 00:00:50,770 --> 00:00:52,569 Suze: Not changing on the island. 10 00:00:52,630 --> 00:00:55,500 KT: I know we only have palm trees but the palm, 11 00:00:55,509 --> 00:01:00,270 KT: nothing changes there, but the leaves are changing wherever you are. 12 00:01:00,419 --> 00:01:03,389 KT: Enjoy those leaves. I used to like anyway. 13 00:01:03,590 --> 00:01:08,239 Suze: So this is the Women and Money podcast and everybody's 14 00:01:08,250 --> 00:01:13,839 Suze: smart enough to listen. This is the ask KT and Suze. 15 00:01:15,550 --> 00:01:18,330 Suze: All right. Well, you're a little go getter ... feisty... 16 00:01:18,790 --> 00:01:23,059 KT: I'm a little feisty. I'm opening with an incredibly great letter or 17 00:01:23,069 --> 00:01:27,720 KT: email ready for this one. Everyone. I love this one. Hi, Suze. 18 00:01:27,790 --> 00:01:31,139 KT: I wanted to say thank you and tell you how one, 19 00:01:31,250 --> 00:01:35,389 KT: your episodes changed my life during the peak of the 20 00:01:35,400 --> 00:01:39,379 KT: pandemic 2020. I used to go on long walks and 21 00:01:39,389 --> 00:01:42,750 KT: listen to your podcast. I heard you say something in 22 00:01:42,760 --> 00:01:46,429 KT: one of your episodes at the Apollo that changed everything 23 00:01:46,440 --> 00:01:47,110 KT: for me. 24 00:01:47,529 --> 00:01:51,239 KT: You talked to a woman about how she settled where 25 00:01:51,250 --> 00:01:53,790 KT: she is now and how she needed to create a 26 00:01:53,800 --> 00:01:57,660 KT: new truth for herself. You talked about facing our fears 27 00:01:57,669 --> 00:02:01,430 KT: and creating our new truths as if they already happened. 28 00:02:01,839 --> 00:02:05,099 KT: I cannot explain to you what an impact that had 29 00:02:05,110 --> 00:02:07,949 KT: on me. See, Suze, they listen, 30 00:02:08,350 --> 00:02:12,520 KT: following that episode every single morning, I started telling myself 31 00:02:12,529 --> 00:02:15,490 KT: things ranging from I have more money than I will 32 00:02:15,500 --> 00:02:18,889 KT: ever need my family and I are in perfect health. 33 00:02:18,899 --> 00:02:23,169 KT: Everything is always working out for me. I am powerful, healthy, 34 00:02:23,179 --> 00:02:28,649 KT: happy and successful. So she says, Suze, within a year, Suze, 35 00:02:28,660 --> 00:02:34,369 KT: I paid off my debt. I've saved $67,000 since that episode. 36 00:02:34,380 --> 00:02:37,330 KT: And now I started investing. 37 00:02:37,639 --> 00:02:40,740 KT: I have changed the way I talk to myself all 38 00:02:40,750 --> 00:02:45,380 KT: because of you. And that specific episode, I have big 39 00:02:45,389 --> 00:02:48,850 KT: dreams and goals for my life and I have started 40 00:02:48,860 --> 00:02:53,600 KT: telling myself new things every day. Listen to this one, Suze, 41 00:02:53,679 --> 00:02:56,788 KT: I have a three bedroom, three bathroom house with a 42 00:02:56,800 --> 00:03:01,380 KT: big backyard that is my new mantra. And then she said, 43 00:03:01,699 --> 00:03:04,199 KT: Suze, how am I gonna own a house one day 44 00:03:04,210 --> 00:03:07,369 KT: with these interest rates and this real estate market? I 45 00:03:07,380 --> 00:03:11,339 KT: really don't know, but I know that I will thank 46 00:03:11,350 --> 00:03:14,429 KT: you so so much for your powerful words that got 47 00:03:14,440 --> 00:03:17,589 KT: me out of debt gave me the biggest savings account 48 00:03:17,600 --> 00:03:22,918 KT: I have ever had investment and most importantly to change 49 00:03:22,929 --> 00:03:26,600 KT: and be aware of how I talk to myself. 50 00:03:26,619 --> 00:03:28,289 KT: What is the name of this person, KT? 51 00:03:28,940 --> 00:03:29,750 KT: Mercia. 52 00:03:30,490 --> 00:03:35,339 Suze: All right. So you listen to me, girlfriend, I love that. 53 00:03:35,350 --> 00:03:39,080 Suze: You listened and that you did your truth and you 54 00:03:39,089 --> 00:03:41,210 Suze: said it over and over again as if it had 55 00:03:41,220 --> 00:03:44,639 Suze: already happened and then look what happened to your life. However, 56 00:03:45,050 --> 00:03:49,770 Suze: if you listen closely to my podcast or even my 57 00:03:49,820 --> 00:03:51,690 Suze: work at the Apollo Theater, 58 00:03:52,270 --> 00:03:56,929 Suze: another thing has to be your thoughts, words and actions 59 00:03:56,940 --> 00:04:00,889 Suze: have got to be one. You just can't say over 60 00:04:00,899 --> 00:04:04,660 Suze: and over to yourself. I'm have a three bedroom house 61 00:04:04,669 --> 00:04:07,210 Suze: and da da da da. And yet think how are 62 00:04:07,220 --> 00:04:09,729 Suze: you ever going to do this with real estate prices 63 00:04:09,740 --> 00:04:10,919 Suze: being so high? 64 00:04:11,710 --> 00:04:16,339 Suze: So you're saying one thing yet you're thinking another, you 65 00:04:16,350 --> 00:04:20,649 Suze: have to keep both feet in one boat where your 66 00:04:20,660 --> 00:04:25,320 Suze: thoughts and your words are one. You can't have your 67 00:04:25,329 --> 00:04:29,409 Suze: thoughts in one boat, your words in another boat. Because 68 00:04:29,420 --> 00:04:31,959 Suze: if those boats start to go in different directions, you're 69 00:04:31,970 --> 00:04:32,890 Suze: gonna fall in. 70 00:04:33,359 --> 00:04:36,160 Suze: So if you really want to be powerful in life 71 00:04:36,170 --> 00:04:41,380 Suze: and manifest what you want in the future, your words, 72 00:04:41,549 --> 00:04:45,559 Suze: your thoughts and your actions have got to be one 73 00:04:45,570 --> 00:04:46,989 Suze: next question, KT! 74 00:04:48,178 --> 00:04:50,480 KT: But congratulations Mercia. 75 00:04:51,369 --> 00:04:55,170 KT: So next question says, hi, Suze. Please help me. I 76 00:04:55,178 --> 00:05:00,019 KT: just got a huge promotion from a job making 65,000 77 00:05:00,029 --> 00:05:05,869 KT: in New York City to 150,000 in Washington DC. It's 78 00:05:05,880 --> 00:05:09,609 KT: huge for a teacher like me. But now I don't 79 00:05:09,619 --> 00:05:12,829 KT: know what to do with my 60,000 in my 403b 80 00:05:13,369 --> 00:05:16,429 KT: at TIAA, should I leave it there? 81 00:05:16,825 --> 00:05:20,975 KT: Should I roll it into my traditional TSP? My brother 82 00:05:20,984 --> 00:05:25,244 KT: says to move it into my Roth IRA little by little, 83 00:05:25,255 --> 00:05:28,855 KT: but now my tax bracket is higher. Does it make 84 00:05:28,863 --> 00:05:31,464 KT: sense to do that when I plan to do my 85 00:05:31,475 --> 00:05:36,933 KT: payroll contribution to the Roth TSP from here on out? 86 00:05:37,154 --> 00:05:40,144 KT: Is there any benefit to have some pre tax money 87 00:05:40,394 --> 00:05:41,304 KT: in an account? 88 00:05:41,899 --> 00:05:44,079 Suze: So here's what I would say to you. Let me 89 00:05:44,089 --> 00:05:47,089 Suze: have that KT. So I can just see again a 90 00:05:47,100 --> 00:05:50,440 Suze: few things that I want to see about this email. 91 00:05:50,450 --> 00:05:53,010 Suze: So here's what I would be doing if I were you, 92 00:05:53,019 --> 00:05:59,320 Suze: first of all, congratulations on your incredible raise. The first 93 00:05:59,329 --> 00:06:02,919 Suze: thing you should do is continue to live and spend 94 00:06:02,928 --> 00:06:07,190 Suze: money as if you were only making $65,000 a year. 95 00:06:07,678 --> 00:06:10,779 Suze: One of the things that happens to people is that 96 00:06:10,790 --> 00:06:13,450 Suze: the more money they make, the more money they spend. 97 00:06:13,869 --> 00:06:17,029 Suze: If you were able to make it on $65,000 a 98 00:06:17,040 --> 00:06:20,000 Suze: year in New York City, you could easily make it 99 00:06:20,010 --> 00:06:24,940 Suze: on $65,000 a year in DC. So that extra almost 100 00:06:24,950 --> 00:06:27,410 Suze: $90,000 a year 101 00:06:28,109 --> 00:06:32,500 Suze: or whatever it's going to be after taxes start saving 102 00:06:32,510 --> 00:06:35,609 Suze: that money. Put it away, do not increase your living 103 00:06:35,619 --> 00:06:40,160 Suze: expenses just because you're making more money. That is number one, 104 00:06:40,178 --> 00:06:43,440 Suze: number two, I would take the money that you have 105 00:06:43,450 --> 00:06:44,339 Suze: in your 403 106 00:06:45,184 --> 00:06:49,234 Suze: at Tia A which is a mutual fund company where 107 00:06:49,244 --> 00:06:53,364 Suze: teachers normally invest and I would do an IRA rollover 108 00:06:53,375 --> 00:06:58,114 Suze: with it into an IRA rollover at a discount brokerage firm. 109 00:06:58,204 --> 00:07:01,595 Suze: Not within a TSP. All right. 110 00:07:02,160 --> 00:07:05,969 Suze: Number one, number two, I personally think you could see 111 00:07:05,980 --> 00:07:09,739 Suze: these markets continue down maybe next year or whatever it 112 00:07:09,750 --> 00:07:13,260 Suze: may be. But yes, little by little, I would be 113 00:07:13,269 --> 00:07:18,790 Suze: converting to a Roth IRA in whatever fashion you want 114 00:07:18,799 --> 00:07:22,220 Suze: as long as it doesn't increase your new tax bracket. 115 00:07:22,320 --> 00:07:25,380 Suze: And is there any benefit you ask for having some 116 00:07:25,390 --> 00:07:26,859 Suze: pre tax money in an account? 117 00:07:27,282 --> 00:07:32,213 Suze: I don't think so. So forget, pretext money, forget all 118 00:07:32,222 --> 00:07:35,422 Suze: of that. Just do a Roth and then your money 119 00:07:35,433 --> 00:07:37,463 Suze: will Roth and Roll. 120 00:07:37,713 --> 00:07:41,083 KT: Roth and roll. I like that. Let's do a song. 121 00:07:41,092 --> 00:07:43,273 KT: Roth and roll. I bet you could. 122 00:07:43,763 --> 00:07:47,062 Suze: So, all morning this morning before we do this KT 123 00:07:47,072 --> 00:07:50,002 Suze: is singing to me and then the two of us 124 00:07:50,013 --> 00:07:51,653 Suze: break out in song. Right. 125 00:07:52,115 --> 00:07:55,946 Suze: And make up the words to this tune. Right. And 126 00:07:56,075 --> 00:07:56,895 Suze: that was kind of fun, KT. 127 00:07:57,096 --> 00:07:59,506 KT: It was fun. We were both having our coffee and 128 00:07:59,515 --> 00:08:02,545 KT: it started raining and I started singing to her and 129 00:08:02,555 --> 00:08:04,585 KT: then she was singing back and then we kind of 130 00:08:04,596 --> 00:08:07,006 KT: messed it up. We didn't know where to go because 131 00:08:07,015 --> 00:08:11,446 KT: it stopped raining. So this next question from Gilda is 132 00:08:11,455 --> 00:08:13,465 KT: a sad reminder of what we all need to be 133 00:08:13,476 --> 00:08:16,425 KT: careful of. Now that it's autumn again. 134 00:08:16,730 --> 00:08:20,529 KT: She said my mom died from COVID in 2020. 135 00:08:20,540 --> 00:08:22,799 Suze: What is dying and COVID from 2020 have to do 136 00:08:22,809 --> 00:08:23,450 Suze: with autumn? 137 00:08:23,459 --> 00:08:27,019 KT: Oh, because COVID could be rampant again. It's coming back 138 00:08:27,470 --> 00:08:31,309 KT: in the winter. So she was 74 years of age 139 00:08:31,320 --> 00:08:35,030 KT: and she left me her inheritance. Now, the question that 140 00:08:35,039 --> 00:08:38,289 KT: Gilda has for you, Suze is, can I just leave 141 00:08:38,299 --> 00:08:42,960 KT: that money in an inherited Ira to grow tax deferred 142 00:08:42,969 --> 00:08:45,619 KT: and withdraw it all in the 10th year? 143 00:08:46,849 --> 00:08:48,119 Suze: Should that have been your quizzie? 144 00:08:48,479 --> 00:08:51,189 KT: No, because I still get confused about that. 145 00:08:51,880 --> 00:08:53,750 Suze: That's why I think it should be your quizze. So 146 00:08:53,760 --> 00:08:54,829 Suze: you get it wrong. 147 00:08:56,539 --> 00:08:58,189 KT: No, you tell her what to do. 148 00:08:58,559 --> 00:09:02,030 Suze: So, Gilda. No, no, no, you cannot. 149 00:09:02,349 --> 00:09:07,580 Suze: The new laws state that since mama was 74 she 150 00:09:07,590 --> 00:09:13,440 Suze: was of age to do required minimum distributions. RMDs probably 151 00:09:13,450 --> 00:09:16,929 Suze: was already withdrawing them or should have been withdrawing them. 152 00:09:17,239 --> 00:09:22,520 Suze: So you have got to take out required minimum distributions 153 00:09:22,530 --> 00:09:28,130 Suze: from that account based on your life expectancy, not on 154 00:09:28,140 --> 00:09:31,559 Suze: what your mother was taking out based on her life expectancy, 155 00:09:31,640 --> 00:09:34,098 Suze: but on your life expectancy. 156 00:09:34,770 --> 00:09:35,150 KT: How does she find out? 157 00:09:35,239 --> 00:09:37,559 Suze: Oh, it's easy. You can go online or just talk 158 00:09:37,570 --> 00:09:40,669 Suze: to a CPA or anybody like that. Really, KT it's 159 00:09:40,679 --> 00:09:43,520 Suze: not that complicated. Right. But you have to withdraw that 160 00:09:43,530 --> 00:09:46,400 Suze: money every year. Years, one through nine. 161 00:09:46,830 --> 00:09:49,989 Suze: Right? And then in the 10th year, whatever is left, 162 00:09:50,219 --> 00:09:53,799 Suze: you just then will automatically take what's left out. 163 00:09:54,250 --> 00:09:58,109 Suze: You don't ever wanna wait just to the 10th year. 164 00:09:58,119 --> 00:10:00,608 Suze: Even if you could have, by the way, because why 165 00:10:00,619 --> 00:10:02,750 Suze: in the world would you want to be taxed in 166 00:10:02,760 --> 00:10:06,960 Suze: one year on all that money? So always, even if 167 00:10:06,969 --> 00:10:10,330 Suze: you didn't have to spread out the withdrawals of an 168 00:10:10,340 --> 00:10:15,119 Suze: inherited retirement account over years rather than just waiting for 169 00:10:15,130 --> 00:10:18,520 Suze: the 10th year. Unless of course it was a Roth 170 00:10:18,530 --> 00:10:21,489 Suze: IRA inherited. All right. Go on KT ok. 171 00:10:23,119 --> 00:10:26,020 KT: Next question, Suze. If I own my own home and I know 172 00:10:26,030 --> 00:10:29,069 KT: my children will not stay in the home, should I 173 00:10:29,080 --> 00:10:33,939 KT: consider a reverse mortgage in the near future if needed? 174 00:10:34,119 --> 00:10:37,500 KT: Instead of purchasing long term care insurance? 175 00:10:37,669 --> 00:10:38,940 Suze: No, you should not. Listen, 176 00:10:39,309 --> 00:10:42,650 Suze: I know all of you think reverse mortgages are the 177 00:10:42,659 --> 00:10:47,010 Suze: key to your financial salvation. They will allow you to 178 00:10:47,020 --> 00:10:50,969 Suze: stay in a house that you love in your head. 179 00:10:51,119 --> 00:10:52,849 Suze: And the only reason you would need to do a 180 00:10:52,859 --> 00:10:56,890 Suze: reverse mortgage is because you don't have the money to do. So. 181 00:10:57,390 --> 00:10:59,489 Suze: If you really 182 00:10:59,849 --> 00:11:05,210 Suze: care about your money, about your children, about your beneficiaries, 183 00:11:05,380 --> 00:11:08,710 Suze: please don't do a reverse mortgage. I would rather see 184 00:11:08,719 --> 00:11:12,150 Suze: you if you can afford it to purchase long term 185 00:11:12,159 --> 00:11:15,830 Suze: care insurance. And again, the place you should go to 186 00:11:15,840 --> 00:11:19,789 Suze: talk to somebody about it is to Phyllis Shelton. So 187 00:11:19,799 --> 00:11:24,900 Suze: write Phyllis at got LTC I dot com. All right. 188 00:11:24,909 --> 00:11:25,590 Suze: Go on. KT 189 00:11:26,130 --> 00:11:30,539 KT: This question is from Elizabeth. Hi, Suze and KT. I opened 190 00:11:30,549 --> 00:11:33,989 KT: a child savings account at Alliant for my daughter who 191 00:11:34,000 --> 00:11:35,478 KT: is eight months old. 192 00:11:35,760 --> 00:11:39,979 Suze: Good for you. Remember, you can only do that until December 193 00:11:39,989 --> 00:11:43,169 Suze: 31st of this year. So do not miss it. Go 194 00:11:43,190 --> 00:11:45,869 Suze: to my alliant dot com and take a look. Go on. 195 00:11:46,070 --> 00:11:48,609 KT: So she said first, thank you to both of you 196 00:11:48,619 --> 00:11:51,320 KT: for everything you've done to set things up at Alliant 197 00:11:51,330 --> 00:11:52,270 KT: for all of us. 198 00:11:52,659 --> 00:11:57,199 KT: I already earned $200 from the savings and the checking 199 00:11:57,210 --> 00:11:59,169 KT: account deals you put together. 200 00:11:59,429 --> 00:12:02,700 KT: My question is this, is there any thought towards a 201 00:12:02,710 --> 00:12:07,770 KT: strategy of funding the child savings account or opening CDs 202 00:12:07,780 --> 00:12:12,260 KT: inside my daughter's account to try to earn a maximum 203 00:12:12,299 --> 00:12:17,770 KT: of $1250 in interest so she can earn this interest 204 00:12:17,780 --> 00:12:22,329 KT: with kitty tax rules as opposed to funding straight to 205 00:12:22,739 --> 00:12:26,919 KT: 529 accounts. Just wondering if doing one before the other 206 00:12:26,929 --> 00:12:27,359 KT: has a 207 00:12:27,405 --> 00:12:30,745 KT: better earnings and tax strategy advantage. 208 00:12:30,755 --> 00:12:34,075 Suze: I think your better tax strategy advantage truthfully would be 209 00:12:34,085 --> 00:12:38,346 Suze: the 529 account because remember when you open up an 210 00:12:38,356 --> 00:12:41,205 Suze: account for a child, it's usually a uniform gift to 211 00:12:41,216 --> 00:12:44,825 Suze: Minors Act account or uniform Trust to Minors Act account, 212 00:12:44,835 --> 00:12:49,645 Suze: which counts more against financial aid for college as one 213 00:12:49,655 --> 00:12:53,796 Suze: gets older. Also, once the child turns 18 years of 214 00:12:53,806 --> 00:12:55,305 Suze: age in most states, 215 00:12:55,910 --> 00:12:58,262 Suze: let's say they don't want to go to college. Let's 216 00:12:58,271 --> 00:13:02,062 Suze: say they little Johnny or Jane Angel turns out to 217 00:13:02,072 --> 00:13:05,502 Suze: be Johnny or Jane Devil. I've seen it happen. Everybody 218 00:13:05,651 --> 00:13:08,471 Suze: and now they have all of this money that's theirs 219 00:13:08,481 --> 00:13:11,081 Suze: and you can't do anything about it to a 529 220 00:13:11,091 --> 00:13:14,761 Suze: plan for the college savings programs. Go on. 221 00:13:14,771 --> 00:13:18,111 KT: All right. Next is from Rachel. She said, first off, 222 00:13:18,122 --> 00:13:21,101 KT: I love the podcast. I've learned so much and you 223 00:13:21,111 --> 00:13:23,242 KT: give great advice. However, 224 00:13:23,510 --> 00:13:27,809 KT: something on your latest episode, what to do with an inheritance, 225 00:13:27,830 --> 00:13:32,590 KT: has me confused and a little upset you state that you... 226 00:13:32,630 --> 00:13:35,719 Suze: You chose that because somebody, we've got, got somebody upset 227 00:13:35,729 --> 00:13:36,590 Suze: that you chose it. 228 00:13:36,940 --> 00:13:39,829 KT: You have to kind of help people understand where you're 229 00:13:39,840 --> 00:13:43,169 KT: coming from, Suze. You said that in situations where your 230 00:13:43,179 --> 00:13:46,169 KT: parents are not in a good place for retirement 231 00:13:46,570 --> 00:13:49,799 KT: that you should put, helping them ahead of saving for 232 00:13:49,809 --> 00:13:54,669 KT: your own children. I really don't understand saving for your 233 00:13:54,679 --> 00:13:58,770 KT: kids college. I really don't understand this. So Rachel goes 234 00:13:58,780 --> 00:14:00,609 KT: on in a fairly long, 235 00:14:00,669 --> 00:14:01,609 Suze: She must be a new mommy. 236 00:14:01,849 --> 00:14:05,119 KT: Yes. But wait, she wrote something funny. She said I'm 237 00:14:05,130 --> 00:14:10,090 KT: a new mommy, postpartum hormones, but I cannot accept putting 238 00:14:10,099 --> 00:14:12,909 KT: my child in a worse financial position 239 00:14:13,210 --> 00:14:15,989 KT: from the get go in order to help my parents 240 00:14:16,000 --> 00:14:19,510 KT: and now she absolutely loves her parents, but she's a 241 00:14:19,520 --> 00:14:22,789 KT: little bit confused about the order in which you made 242 00:14:22,799 --> 00:14:24,090 KT: these priorities. 243 00:14:24,169 --> 00:14:27,270 Suze: So, Rachel, listen to me, which is, I don't know 244 00:14:27,280 --> 00:14:30,830 Suze: how old you are, but it's an interesting thing that, 245 00:14:30,840 --> 00:14:36,789 Suze: as you get older, sometimes your parents may have sacrificed 246 00:14:36,799 --> 00:14:37,630 Suze: for you. 247 00:14:38,489 --> 00:14:41,940 Suze: And now they're in a situation, Rachel where maybe one 248 00:14:41,950 --> 00:14:44,140 Suze: of them got sick, maybe they were in an accident, 249 00:14:44,150 --> 00:14:47,150 Suze: maybe something happened to them, they lost their jobs, who 250 00:14:47,159 --> 00:14:53,150 Suze: knows what happened and they maybe have been responsible with money. 251 00:14:53,159 --> 00:14:58,200 Suze: They've been great parents, but now they're in financial trouble. 252 00:14:58,770 --> 00:15:02,309 Suze: Not because they're in debt, not because of anything other 253 00:15:02,320 --> 00:15:05,710 Suze: than maybe they didn't buy long term care insurance may 254 00:15:05,719 --> 00:15:07,210 Suze: whatever it may be. 255 00:15:07,609 --> 00:15:11,880 Suze: And now they are suffering and they need a little help. 256 00:15:12,039 --> 00:15:13,690 Suze: They need a little help just to be able to 257 00:15:13,700 --> 00:15:17,390 Suze: stay in their home or in their apartment or have 258 00:15:17,400 --> 00:15:20,270 Suze: money just to put gas in the car or whatever 259 00:15:20,280 --> 00:15:21,289 Suze: it may be. 260 00:15:22,270 --> 00:15:26,419 Suze: So, at that point, you have to maybe make a 261 00:15:26,429 --> 00:15:31,669 Suze: choice between helping them when they're in their eighties. Their nineties, 262 00:15:31,679 --> 00:15:35,250 Suze: they no longer can work. Social security isn't doing it 263 00:15:35,260 --> 00:15:38,250 Suze: for them. Maybe one of your parents died and then 264 00:15:38,260 --> 00:15:41,070 Suze: one Social Security and a pension check is gone and 265 00:15:41,080 --> 00:15:44,690 Suze: now only one parent is left and they can't make 266 00:15:44,700 --> 00:15:46,969 Suze: it for whatever reason. 267 00:15:47,820 --> 00:15:51,059 Suze: Do you really think you're gonna be able to look 268 00:15:51,070 --> 00:15:54,239 Suze: at yourself and say, you know what funding my child's 269 00:15:54,250 --> 00:15:58,080 Suze: college education fund is more important mom or dad 270 00:15:58,780 --> 00:16:02,239 Suze: than making sure that you have money to eat or 271 00:16:02,250 --> 00:16:05,750 Suze: making sure that you can have electricity or your water 272 00:16:05,760 --> 00:16:09,200 Suze: bill or whatever it is. Do you really think if 273 00:16:09,210 --> 00:16:13,109 Suze: you were really in that position, you would choose your 274 00:16:13,119 --> 00:16:19,159 Suze: child's future college education over them? Now, why do I 275 00:16:19,169 --> 00:16:20,520 Suze: give you that example? 276 00:16:21,099 --> 00:16:25,320 Suze: Because of the thousands and I mean, thousands, maybe even 277 00:16:25,330 --> 00:16:29,760 Suze: tens of thousands of people that have written me over 278 00:16:29,770 --> 00:16:34,000 Suze: the years that have been in that exact situation 279 00:16:35,010 --> 00:16:40,270 Suze: and they have never regretted helping their parents just think 280 00:16:40,280 --> 00:16:45,250 Suze: about everything your parents may have done for you. So 281 00:16:45,260 --> 00:16:48,349 Suze: that you are in the financial position that you're in, 282 00:16:48,359 --> 00:16:51,809 Suze: which may be why they're in a financial position one day. 283 00:16:51,820 --> 00:16:55,419 Suze: Maybe they won't be, but maybe that's why they don't 284 00:16:55,429 --> 00:16:57,789 Suze: have the money. I could go on. 285 00:16:58,059 --> 00:17:00,229 KT: I, I would also share it with 286 00:17:00,640 --> 00:17:03,820 KT: the kids, I'd say, you know, grandma and grandpa need 287 00:17:03,830 --> 00:17:06,959 KT: help or grandma needs help. She might have to come 288 00:17:06,969 --> 00:17:09,698 KT: live with us, but we need to help her. So 289 00:17:09,709 --> 00:17:13,239 KT: your college funding is going to be put on hold. 290 00:17:13,550 --> 00:17:15,139 KT: I mean, I think that's, that's... 291 00:17:15,150 --> 00:17:17,900 Suze: So, so it's just something to think about. But here's 292 00:17:17,910 --> 00:17:21,140 Suze: the thing that struck me about what you said that 293 00:17:21,150 --> 00:17:24,579 Suze: this would put your child in a worse financial position 294 00:17:24,589 --> 00:17:29,099 Suze: from the get go in order to help my parents. 295 00:17:29,540 --> 00:17:32,839 Suze: Do you really think that your Children having to pay 296 00:17:32,849 --> 00:17:36,520 Suze: for a college education if they choose to go is 297 00:17:36,530 --> 00:17:41,719 Suze: putting them in a horrific financial position. The people that 298 00:17:41,729 --> 00:17:45,839 Suze: I know that are the most successful today in life, 299 00:17:46,829 --> 00:17:50,979 Suze: graduated college with student loan debt, they dealt with it 300 00:17:51,069 --> 00:17:56,069 Suze: that gave them more drive. They were absolutely successful because 301 00:17:56,079 --> 00:18:00,109 Suze: of their own ability to know that they had to 302 00:18:00,119 --> 00:18:03,459 Suze: do what they needed to do to put themselves on 303 00:18:03,469 --> 00:18:07,139 Suze: sound financial footing. I wrote a book called The Young 304 00:18:07,150 --> 00:18:11,540 Suze: Fabulous and broke in that book, I interviewed over 1000 305 00:18:11,550 --> 00:18:16,219 Suze: kids whose parents paid for their college education 306 00:18:16,780 --> 00:18:20,000 Suze: and it came out in a year when it was 307 00:18:20,010 --> 00:18:22,688 Suze: very rough for kids to get a job. Everything was 308 00:18:22,699 --> 00:18:27,500 Suze: expensive for them. And the kids all said to me 309 00:18:27,599 --> 00:18:31,619 Suze: that they wished their parents had not gone into debt, 310 00:18:31,630 --> 00:18:35,109 Suze: had not made it so that they didn't have any 311 00:18:35,119 --> 00:18:35,718 Suze: debt 312 00:18:36,300 --> 00:18:39,839 Suze: now that they were watching their parents not be able 313 00:18:39,849 --> 00:18:42,660 Suze: to live the life that they deserve to live. And 314 00:18:42,670 --> 00:18:46,969 Suze: then came the year 2008 when everybody lost their jobs. 315 00:18:47,130 --> 00:18:50,020 Suze: And then again, I interviewed kids and they felt so 316 00:18:50,030 --> 00:18:54,119 Suze: horrific that their parents were losing their homes 317 00:18:54,510 --> 00:18:58,089 Suze: because they lost their jobs. They didn't have any money yet. 318 00:18:58,189 --> 00:19:02,250 Suze: They all went to school totally free because their parents 319 00:19:02,260 --> 00:19:07,639 Suze: sacrificed for them. Just, just think about that new mama. So, 320 00:19:07,670 --> 00:19:09,609 Suze: and put it in perspective. 321 00:19:10,219 --> 00:19:14,239 Suze: But I really believe that if your parents have been responsible. 322 00:19:14,250 --> 00:19:18,000 Suze: They weren't gamblers, they weren't drinkers, they weren't, you know, 323 00:19:18,079 --> 00:19:22,000 Suze: irre they don't have credit card debt and they come 324 00:19:22,170 --> 00:19:27,050 Suze: upon a hard time, help, help them before you fund 325 00:19:27,060 --> 00:19:30,599 Suze: your kids'. College education. Great. There you go. 326 00:19:31,180 --> 00:19:34,319 KT: Let me... on that point about college education. 327 00:19:34,530 --> 00:19:37,619 KT: My next emails from Gabriella. Listen to this one. 328 00:19:37,989 --> 00:19:44,680 KT: Hi, Suze. I owe $8150 in federal student loans at 329 00:19:44,689 --> 00:19:50,839 KT: a 5.75% interest. Then I stopped payment. When the pandemic hit, 330 00:19:51,150 --> 00:19:54,489 KT: I have the full amount saved in a separate account 331 00:19:54,699 --> 00:20:02,139 KT: currently making 4.4% interest. I don't qualify for save, reduced 332 00:20:02,150 --> 00:20:04,560 KT: payment plan for the save, reduced payment. You have to 333 00:20:04,569 --> 00:20:05,699 KT: explain what that is. 334 00:20:05,739 --> 00:20:07,180 Suze: Everybody knows that that is. 335 00:20:07,199 --> 00:20:07,359 KT: Now, 336 00:20:07,484 --> 00:20:11,864 KT: I would start paying about $310 a month. So the 337 00:20:11,875 --> 00:20:15,035 KT: question is, should I pay this already or should I 338 00:20:15,045 --> 00:20:19,083 KT: start repayments and wait to see if by any chance 339 00:20:19,094 --> 00:20:24,494 KT: a $10,000 forgiveness goes through via the alternate methods that 340 00:20:24,505 --> 00:20:28,055 KT: the Biden administration is trying now, which they say... 341 00:20:28,064 --> 00:20:31,275 Suze: Just, just stop here, just pay it off Gabriela. 342 00:20:31,285 --> 00:20:32,015 KT: Really? 343 00:20:32,420 --> 00:20:36,060 Suze: You may think you know that if you don't qualify 344 00:20:36,069 --> 00:20:41,760 Suze: for save, you probably don't also qualify for the 5.75% 345 00:20:41,900 --> 00:20:46,930 Suze: interest to be tax deductible on your taxes. Yet the 4.4% 346 00:20:46,939 --> 00:20:51,949 Suze: interest is taxable to you. So possibly after taxes, maybe 347 00:20:51,959 --> 00:20:56,300 Suze: you're only making 3% or maybe 2.5% or something like 348 00:20:56,310 --> 00:20:57,599 Suze: that still costs 349 00:20:57,699 --> 00:21:00,209 Suze: giving you five and three quarters percent for the loan. 350 00:21:00,290 --> 00:21:04,329 Suze: Plus it bothers you, oh, just pay it off because 351 00:21:04,339 --> 00:21:08,359 Suze: it just doesn't seem like anything's gonna pass anymore with 352 00:21:08,369 --> 00:21:12,579 Suze: the Congress that we have. So given that that's what 353 00:21:12,589 --> 00:21:15,619 Suze: I would do and if by chance they forgive it, 354 00:21:15,630 --> 00:21:18,719 Suze: chances are maybe you could go back and get it 355 00:21:18,729 --> 00:21:21,739 Suze: back from the student loan companies, but I would just 356 00:21:21,750 --> 00:21:22,800 Suze: pay it off. Yeah. 357 00:21:23,180 --> 00:21:27,560 KT: Ok. Next is Maria. Hi, KT and Suze. Thank you 358 00:21:27,569 --> 00:21:30,479 KT: for your support. I wouldn't know how to move forward 359 00:21:30,489 --> 00:21:34,520 KT: financially without listening to your podcast and your shows. 360 00:21:34,890 --> 00:21:38,349 KT: I do. There's talking about your show on Amazon 361 00:21:38,359 --> 00:21:42,680 Suze: Freevee, Freevee. Everybody listen, one of the highlights of my 362 00:21:42,689 --> 00:21:47,819 Suze: life was the Suze Orman show. And for whatever reason, 363 00:21:47,829 --> 00:21:51,569 Suze: I was smart enough to own all 600 of those 364 00:21:51,579 --> 00:21:56,599 Suze: shows episodes which was unheard of by the way back then. Anyway, 365 00:21:56,750 --> 00:22:01,020 Suze: they are now all showing on Amazon's Freevee 366 00:22:01,890 --> 00:22:04,889 Suze: So if you go to Freevee you can watch them 367 00:22:04,900 --> 00:22:09,349 Suze: and really so so much to learn. Watch the Can 368 00:22:09,359 --> 00:22:14,020 Suze: I afford it segment? Fabulous. So watch them. All right. Anyway, 369 00:22:14,030 --> 00:22:15,109 Suze: go on. Ok. 370 00:22:15,119 --> 00:22:18,670 KT: So I have a very elementary question with all that 371 00:22:18,680 --> 00:22:22,510 KT: I've learned from you. I'm thinking about investing into the 372 00:22:22,520 --> 00:22:26,449 KT: stock market to receive dividends. What do you mean by 373 00:22:26,459 --> 00:22:28,629 KT: dollar cost averaging? 374 00:22:29,040 --> 00:22:32,280 KT: So there you go. Maria, Suze's gonna tell you. And 375 00:22:32,290 --> 00:22:37,619 KT: that's never, never an elementary question. No question is elementary 376 00:22:37,630 --> 00:22:39,219 KT: when it comes to your money, ever. 377 00:22:39,989 --> 00:22:43,300 Suze: Let me say something to all of you, which is, 378 00:22:43,390 --> 00:22:45,670 Suze: I've been doing this as, you know, for about 40 379 00:22:45,680 --> 00:22:50,300 Suze: years now and I've been asked the same questions over 380 00:22:50,410 --> 00:22:53,140 Suze: and over and over again. 381 00:22:53,550 --> 00:22:57,409 Suze: And I never, and I mean, this, I never ever 382 00:22:57,420 --> 00:23:02,489 Suze: get tired of answering any question from the most simplistic 383 00:23:02,500 --> 00:23:06,770 Suze: to the most complicated because if you don't know something, 384 00:23:07,089 --> 00:23:10,040 Suze: you deserve to know it. And I love that you 385 00:23:10,050 --> 00:23:12,688 Suze: have the freedom Maria to ask 386 00:23:12,829 --> 00:23:16,149 Suze: that question and not be afraid to ask one of 387 00:23:16,160 --> 00:23:20,319 Suze: the downfalls for many people when it comes to investing 388 00:23:20,339 --> 00:23:24,859 Suze: is they're just afraid to ask, they get embarrassed. And 389 00:23:24,869 --> 00:23:27,810 Suze: the truth of the matter is there is no question 390 00:23:27,819 --> 00:23:30,650 Suze: when it comes to money that you should ever be 391 00:23:30,660 --> 00:23:31,969 Suze: embarrassed about. 392 00:23:32,630 --> 00:23:35,099 Suze: First of all the same thing. So first of all, 393 00:23:35,119 --> 00:23:39,500 Suze: when they all know that, I think when it comes 394 00:23:39,510 --> 00:23:44,339 Suze: to investing in the stock market and receiving dividends, if 395 00:23:44,349 --> 00:23:47,640 Suze: you don't need the income from the dividends, number one, 396 00:23:47,750 --> 00:23:52,099 Suze: please make sure that you reinvest the dividends in the 397 00:23:52,109 --> 00:23:55,939 Suze: stocks that are paying you those dividends and that will 398 00:23:55,949 --> 00:23:58,420 Suze: enhance your return. Number one, 399 00:23:58,939 --> 00:24:04,469 Suze: number two, dollar cost averaging. And the reason that I'm glad 400 00:24:04,479 --> 00:24:08,670 Suze: KT chose this question is in my opinion, this is 401 00:24:08,680 --> 00:24:11,729 Suze: the only way if you are investing in the stock 402 00:24:11,739 --> 00:24:16,069 Suze: market today. You should be investing in the stock market. 403 00:24:16,250 --> 00:24:20,560 Suze: Dollar cost averaging is where you decide on a lump 404 00:24:20,569 --> 00:24:21,689 Suze: sum of money 405 00:24:22,260 --> 00:24:25,680 Suze: that you want to invest in the stock market. Let's 406 00:24:25,689 --> 00:24:31,239 Suze: just say it's $24,000. Let's just say it's that amount. 407 00:24:31,739 --> 00:24:37,910 Suze: Then I would have you take that $24,000 and divide 408 00:24:37,920 --> 00:24:43,629 Suze: it by either 12 or 24 12 months in one year, 409 00:24:43,640 --> 00:24:47,479 Suze: 24 months in two years. And let's say you wanted 410 00:24:47,489 --> 00:24:50,880 Suze: to do it over a two year period of time. 411 00:24:51,489 --> 00:24:56,129 Suze: At that point, you would then take $1000 a month 412 00:24:56,640 --> 00:24:59,510 Suze: and you would invest it in whatever it is that 413 00:24:59,520 --> 00:25:01,609 Suze: you want to invest it in. 414 00:25:02,469 --> 00:25:03,150 Suze: Now, 415 00:25:03,510 --> 00:25:06,650 Suze: given the fact that most discount brokerage firms now have 416 00:25:06,660 --> 00:25:10,670 Suze: slices of stocks where you can buy very small amounts 417 00:25:10,680 --> 00:25:14,849 Suze: of money in any stock or exchange traded funds and 418 00:25:14,859 --> 00:25:18,280 Suze: you can do it for no commission. Dollar cost averaging 419 00:25:18,290 --> 00:25:22,369 Suze: can be very cost effective commission wise. Since if you 420 00:25:22,380 --> 00:25:26,300 Suze: do it online, there are no commissions, but you would 421 00:25:26,310 --> 00:25:30,209 Suze: take that amount of money and every month invest it 422 00:25:30,569 --> 00:25:33,209 Suze: when the market goes down. 423 00:25:33,770 --> 00:25:37,510 Suze: Usually the price of your stocks or ETFs that you've 424 00:25:37,520 --> 00:25:41,969 Suze: purchased also go down when the price of your investments 425 00:25:41,979 --> 00:25:48,469 Suze: go down your dollars, buy more shares when the cost 426 00:25:48,479 --> 00:25:51,869 Suze: of those investments go up because the markets are going 427 00:25:51,880 --> 00:25:55,629 Suze: up your dollars, buy less shares. 428 00:25:56,109 --> 00:26:03,560 Suze: Therefore, over time your dollars have averaged the cost of 429 00:26:03,569 --> 00:26:08,688 Suze: the investments that you are buying. And if you do 430 00:26:08,699 --> 00:26:12,129 Suze: it that way you then kind of average out everything 431 00:26:12,140 --> 00:26:16,938 Suze: and you usually come out further ahead, especially in markets 432 00:26:17,050 --> 00:26:20,199 Suze: that go up, down, up, down, up, down, up down. 433 00:26:20,209 --> 00:26:21,000 Suze: All right. 434 00:26:21,349 --> 00:26:26,089 Suze: So that is what dollar cost averaging happens to be. 435 00:26:26,099 --> 00:26:27,459 Suze: Next question, KT. 436 00:26:27,469 --> 00:26:32,900 KT: One last question, Suze. Hi, Suze. I'm looking at buying 437 00:26:32,910 --> 00:26:35,020 KT: tax free Muni Bond 438 00:26:36,060 --> 00:26:42,329 KT: at 4.0 interest. The bond is trading at 0.90. So 439 00:26:42,339 --> 00:26:47,579 KT: the net is 4.77. Is this better than buying a 440 00:26:47,589 --> 00:26:52,139 KT: 20 or 30 year bond you've been talking about, appreciate 441 00:26:52,150 --> 00:26:56,218 KT: any insights. This is from David. 442 00:26:56,290 --> 00:27:00,130 Suze: You listen to me David on last Sunday's podcast. 443 00:27:00,189 --> 00:27:05,688 Suze: I talked about my opinion about municipal bonds. The difference 444 00:27:05,699 --> 00:27:11,530 Suze: between municipal bonds, everybody and a treasury is that uni 445 00:27:11,540 --> 00:27:16,969 Suze: bonds are issued by state and local governments either to 446 00:27:16,979 --> 00:27:21,459 Suze: fund their deficits sometimes or their spending, their projects like 447 00:27:21,469 --> 00:27:24,329 Suze: schools and bridges and things like that. 448 00:27:25,060 --> 00:27:29,800 Suze: There are many states now who are in really bad 449 00:27:29,810 --> 00:27:36,709 Suze: financial shape and therefore there is no guarantee on will 450 00:27:36,719 --> 00:27:41,319 Suze: a Muni bond ever really pay off? Will it mature? 451 00:27:41,329 --> 00:27:44,679 Suze: There have been many times when municipal bonds have gone 452 00:27:44,689 --> 00:27:49,359 Suze: under Orange County bonds, the Puerto Rico Bonds, you name it, 453 00:27:49,380 --> 00:27:51,760 Suze: they have gone under. 454 00:27:52,130 --> 00:27:55,630 Suze: So do you think David that it is worth the 455 00:27:55,640 --> 00:27:59,910 Suze: risk to get this interest rate? Number one 456 00:28:00,280 --> 00:28:02,839 Suze: and you have to be in a high tax bracket 457 00:28:02,849 --> 00:28:06,979 Suze: to really make it work. But where, you know, what 458 00:28:06,989 --> 00:28:10,670 Suze: is the ratings of these bonds is the state that 459 00:28:10,680 --> 00:28:15,699 Suze: you're buying these bonds from solid in terms of their finances. 460 00:28:15,750 --> 00:28:20,819 Suze: Because again, there have been many municipal bond bankruptcies, however, 461 00:28:20,829 --> 00:28:25,290 Suze: there have never to date been a treasury bill bond 462 00:28:25,300 --> 00:28:28,260 Suze: or note that has not paid back. 463 00:28:28,780 --> 00:28:32,909 Suze: Therefore, just depending on your situation and what you think 464 00:28:32,920 --> 00:28:36,880 Suze: you'll have to make the decision. You want 100% safety. 465 00:28:37,040 --> 00:28:40,270 Suze: I would go with treasuries if you really, really know 466 00:28:40,280 --> 00:28:43,630 Suze: what you're doing. You're in a high tax bracket. It's 467 00:28:43,640 --> 00:28:46,349 Suze: a Muni Bond in the same state that you happen 468 00:28:46,359 --> 00:28:50,829 Suze: to live in or you live in a tax free state. So, therefore, 469 00:28:50,839 --> 00:28:53,238 Suze: it doesn't matter again if you don't know what I'm 470 00:28:53,250 --> 00:28:56,369 Suze: talking about, listen to last Sunday's podcast. 471 00:28:56,770 --> 00:29:01,079 Suze: Ok. But you best know what you're doing. It's quizz time, 472 00:29:01,089 --> 00:29:02,310 Suze: my dear Katie. 473 00:29:02,640 --> 00:29:03,859 KT: What do you got for me? 474 00:29:03,969 --> 00:29:07,680 Suze: Well, it's funny because I have two that are essentially 475 00:29:07,689 --> 00:29:12,540 Suze: the same, one was from Robin and one was from Anna. 476 00:29:12,839 --> 00:29:18,339 Suze: And both of them are asking me about making a trust, 477 00:29:18,349 --> 00:29:23,949 Suze: the primary beneficiary of an IRA or a 401k plan, 478 00:29:24,260 --> 00:29:28,579 Suze: right? So I'll read you on this question and that 479 00:29:28,589 --> 00:29:32,910 Suze: will represent your as well. Robin. So here it goes: 480 00:29:33,250 --> 00:29:38,229 Suze: On the 9/28 podcast, Suze mentioned that the beneficiary for 481 00:29:38,239 --> 00:29:42,949 Suze: a 401k account always needs to be the spouse and 482 00:29:42,959 --> 00:29:47,560 Suze: the trust should be the contingent beneficiary. I wonder why 483 00:29:47,569 --> 00:29:48,520 Suze: the distinction 484 00:29:48,979 --> 00:29:54,010 Suze: I have my revocable trust as the beneficiary for everything. 485 00:29:54,079 --> 00:29:58,329 Suze: And my spouse is the trustee right after me, followed 486 00:29:58,339 --> 00:30:02,390 Suze: by my sister. Is there any issue that my spouse 487 00:30:02,400 --> 00:30:06,849 Suze: will face if he's not named personally as a beneficiary 488 00:30:06,859 --> 00:30:11,890 Suze: of my 401k? And does this advice apply to an 489 00:30:11,900 --> 00:30:14,489 Suze: IRA as well? 490 00:30:15,060 --> 00:30:16,439 KT: So what's the question? 491 00:30:16,500 --> 00:30:21,349 Suze: The question is KT, I have been advising that everybody 492 00:30:21,359 --> 00:30:24,339 Suze: and this is what Robin wants to know as well. 493 00:30:24,349 --> 00:30:29,589 Suze: She just doesn't understand why. Right. The beneficiary should be 494 00:30:29,599 --> 00:30:33,880 Suze: a spouse. If you're married versus a trust, they don't 495 00:30:33,890 --> 00:30:37,300 Suze: think that there's any difference from it, especially if the trust, 496 00:30:37,310 --> 00:30:42,229 Suze: the trustee is the spouse. So they don't see why 497 00:30:42,300 --> 00:30:43,589 Suze: am I stating 498 00:30:44,069 --> 00:30:47,140 Suze: that if you are married and it's a retirement account 499 00:30:47,750 --> 00:30:51,859 Suze: that the beneficiary should first be your spouse and then 500 00:30:51,869 --> 00:30:56,839 Suze: the trust. So the question is, is there any really 501 00:30:56,849 --> 00:31:01,800 Suze: difference if the trust was the primary beneficiary rather than 502 00:31:01,810 --> 00:31:03,699 Suze: the spouse if you are married? 503 00:31:04,540 --> 00:31:06,609 Suze: Oh, here we go. 504 00:31:08,869 --> 00:31:09,770 Suze: Why you laughing? 505 00:31:11,910 --> 00:31:13,760 KT: How am I supposed to know that? 506 00:31:14,689 --> 00:31:20,709 KT: Well, first of all, the trust and the, and the IRA, 507 00:31:20,719 --> 00:31:23,030 KT: the other accounts are separate and there's a little bit 508 00:31:23,040 --> 00:31:25,060 KT: of confusion. It's not like they're all. 509 00:31:25,079 --> 00:31:26,050 Suze: You don't know the answer. 510 00:31:26,160 --> 00:31:29,869 KT: I don't know the answer but, but no, wait, wait, wait, wait, 511 00:31:30,369 --> 00:31:33,390 KT: the answer to Robin is no, you shouldn't do that. 512 00:31:33,739 --> 00:31:36,430 Suze: The answer to everybody is no, you shouldn't do that. 513 00:31:36,510 --> 00:31:42,180 Suze: Let me tell you, they're two different, they're two different animals. However, 514 00:31:42,640 --> 00:31:47,209 Suze: when you have a retirement account, I don't care if 515 00:31:47,219 --> 00:31:52,189 Suze: it's a 401k. A SEP IRA, a 403B TSP, Roth. 516 00:31:52,359 --> 00:31:56,349 Suze: I don't care what type of retirement account it is. 517 00:31:56,939 --> 00:32:03,729 Suze: A spouse has different benefits in every single situation than 518 00:32:03,739 --> 00:32:05,630 Suze: in most cases a trust. 519 00:32:06,229 --> 00:32:10,729 Suze: You have to know for your trust to have the 520 00:32:10,739 --> 00:32:14,530 Suze: same benefits. If the spouse will be the trustee of 521 00:32:14,540 --> 00:32:17,800 Suze: that trust, you have to know that your trust is 522 00:32:17,810 --> 00:32:22,699 Suze: a see through trust for it to have the same 523 00:32:22,709 --> 00:32:27,900 Suze: benefits as if you just simply named your spouse and 524 00:32:27,910 --> 00:32:31,369 Suze: the benefits KT that you can do 525 00:32:31,849 --> 00:32:35,550 Suze: would be, you could take over my retirement account as 526 00:32:35,560 --> 00:32:36,589 Suze: if it were yours. 527 00:32:37,449 --> 00:32:40,630 Suze: You could take up, you could do so many things 528 00:32:40,640 --> 00:32:44,369 Suze: that anybody else cannot do. So there are special benefits 529 00:32:44,380 --> 00:32:48,189 Suze: for a spouse. So the reason why everybody that I 530 00:32:48,199 --> 00:32:51,130 Suze: tell you to do it that way versus having a 531 00:32:51,140 --> 00:32:54,270 Suze: trust be the primary beneficiary 532 00:32:54,750 --> 00:32:59,530 Suze: is because I do not know for sure that you know, 533 00:32:59,540 --> 00:33:03,709 Suze: if your trust is a see through trust, do you 534 00:33:03,719 --> 00:33:06,650 Suze: even know what I'm talking about? So just to make 535 00:33:06,660 --> 00:33:09,430 Suze: sure that you're ok and she's like, what are you 536 00:33:09,439 --> 00:33:10,900 Suze: laughing at? 537 00:33:11,849 --> 00:33:13,270 KT: See through trust? 538 00:33:13,280 --> 00:33:13,439 Suze: Yeah. 539 00:33:14,920 --> 00:33:19,579 KT: What does that mean? It's transparent, it's transparent. All right, 540 00:33:19,829 --> 00:33:22,880 KT: I got that right. Ding ding, ding, ding, ding, ding, ding, ding. 541 00:33:22,890 --> 00:33:26,180 Suze: So, but that is why you guys remember this is 542 00:33:26,189 --> 00:33:31,060 Suze: a podcast that talks to millions of people all throughout 543 00:33:31,069 --> 00:33:35,459 Suze: the world actually. So I have to give you advice 544 00:33:35,469 --> 00:33:38,699 Suze: that I know will absolutely protect you. 545 00:33:39,170 --> 00:33:41,739 Suze: Now, if you know that your trust is a see through 546 00:33:41,750 --> 00:33:44,239 Suze: trust and you know that without of a shadow of 547 00:33:44,250 --> 00:33:47,650 Suze: a doubt, all right, the trust can be your primary beneficiary, 548 00:33:47,760 --> 00:33:51,709 Suze: but you have nothing to lose if the primary beneficiary 549 00:33:51,719 --> 00:33:56,829 Suze: happens to be your spouse and the contingent beneficiary happens 550 00:33:56,839 --> 00:34:00,619 Suze: to be your trust. All right, because if you and 551 00:34:00,630 --> 00:34:03,270 Suze: your spouse are killed in a car crash together, right? 552 00:34:03,280 --> 00:34:04,430 Suze: The trust takes over. 553 00:34:05,270 --> 00:34:08,449 Suze: But I'm just telling you to play safe. That is 554 00:34:08,459 --> 00:34:10,689 Suze: why I tell you to do that. 555 00:34:10,919 --> 00:34:14,350 KT: So, Suze, it's also important. What about we have many 556 00:34:14,360 --> 00:34:15,159 KT: friends that 557 00:34:15,510 --> 00:34:18,330 KT: have never married? They never got married, 558 00:34:19,419 --> 00:34:26,729 Suze: Then the primary beneficiary. This is only for married couples, period KT. Now, 559 00:34:26,739 --> 00:34:29,689 Suze: for all of you, if you want, you can write 560 00:34:29,699 --> 00:34:35,250 Suze: in your question to ask Suze Suze podcast at gmail 561 00:34:35,260 --> 00:34:38,969 Suze: dot com. And if KT picks it, guess what? 562 00:34:39,360 --> 00:34:40,859 KT: You're one lucky dog. 563 00:34:43,569 --> 00:34:45,648 KT: You're just one lucky person. 564 00:34:46,118 --> 00:34:48,627 Suze: I like that. You said you're one lucky dog. Do 565 00:34:49,208 --> 00:34:53,368 Suze: you remember when I would give seminars and talks? And 566 00:34:53,378 --> 00:34:56,589 Suze: I would ask the audience a question to stand up 567 00:34:56,599 --> 00:34:58,688 Suze: if they had debt and da da, da da. And 568 00:34:58,698 --> 00:35:00,408 Suze: then I would say to them and don't lie to 569 00:35:00,418 --> 00:35:02,178 Suze: me because if you lie to me, I'm 570 00:35:02,334 --> 00:35:03,944 Suze: to come out there and hunt you down like the 571 00:35:03,955 --> 00:35:07,264 Suze: dog that you are. I remember me always saying that anyway, 572 00:35:08,185 --> 00:35:10,915 Suze: there's really only one thing that we want you to 573 00:35:10,925 --> 00:35:14,024 Suze: do every single day. And what is that? Why do 574 00:35:14,034 --> 00:35:16,225 Suze: we want them to say today: 575 00:35:16,235 --> 00:35:22,294 KT: Today, wherever I go, I will create a more peaceful, 576 00:35:22,475 --> 00:35:25,435 KT: joyful and loving world. 577 00:35:25,445 --> 00:35:27,625 Suze: And if you say that every day, 578 00:35:28,129 --> 00:35:33,750 Suze: we promise you, you will be unstoppable.