1 00:00:28,510 --> 00:00:32,540 Robert: April 24th, 2025. Welcome to the Women and Money podcast, 2 00:00:32,668 --> 00:00:36,470 Robert: as well as everyone smart enough to listen. Hi everybody. Robert, 3 00:00:36,509 --> 00:00:39,458 Robert: the producer here. I know, I know, I can hear 4 00:00:39,459 --> 00:00:43,269 Robert: you saying, but you and Suze said she'd do a 5 00:00:43,270 --> 00:00:48,559 Robert: new podcast today. Well, given that these markets are crazy, Suze, 6 00:00:48,668 --> 00:00:53,630 Robert: as is her prerogative, has decided to wait until this Sunday, 7 00:00:54,279 --> 00:00:56,520 Robert: to do a brand new Suzie school that will be 8 00:00:56,520 --> 00:01:00,200 Robert: more beneficial to what's happening right now than try and 9 00:01:00,200 --> 00:01:04,069 Robert: do it inside of an Ask KT and Suze Anying episode. 10 00:01:04,120 --> 00:01:06,199 Robert: And for those of you who've been listening for a 11 00:01:06,199 --> 00:01:08,680 Robert: while to this podcast, you know that we still like 12 00:01:08,680 --> 00:01:12,000 Robert: to give you something wonderful to hear on podcast day. 13 00:01:12,519 --> 00:01:15,839 Robert: And of course today is no exception. So we'll hear 14 00:01:15,839 --> 00:01:18,800 Robert: bits of an Ask KT and Suze Anyting show from 15 00:01:18,800 --> 00:01:19,750 Robert: last fall. 16 00:01:20,300 --> 00:01:24,349 Robert: And let's jump in with KT setting up the first question. 17 00:01:24,650 --> 00:01:30,029 KT: OK, my first question, Suze, is from Scott. he said, 18 00:01:30,120 --> 00:01:34,080 KT: Suze and KT, when my dad passed away, my mom 19 00:01:34,080 --> 00:01:38,279 KT: put their home into a TOD to my two sisters 20 00:01:38,279 --> 00:01:39,239 KT: and I. So that's... 21 00:01:39,239 --> 00:01:40,480 Suze: What's a TOD KT? 22 00:01:40,480 --> 00:01:42,580 KT: I'll tell everyone it's transfer on death account. 23 00:01:42,580 --> 00:01:45,489 Suze: Ding ding ding ding ding ding ding ding ding ding. 24 00:01:45,974 --> 00:01:49,485 KT: Listen to this, everyone. So Scott's oldest sister said to 25 00:01:49,485 --> 00:01:52,974 KT: him privately, I don't want anything to do with this house. 26 00:01:53,125 --> 00:01:56,444 KT: Pay me my third. The home in question is a 27 00:01:56,444 --> 00:02:03,324 KT: lake home with an assessed value exceeding $750,000 and, and 28 00:02:03,324 --> 00:02:06,644 KT: this is a little bit interesting. He said, Suze, I 29 00:02:06,644 --> 00:02:10,845 KT: feel immoral asking, but can I open a term life 30 00:02:10,845 --> 00:02:12,365 KT: policy for my mom. 31 00:02:12,660 --> 00:02:16,380 KT: So I can cover the cost to buy out my sisters. 32 00:02:16,669 --> 00:02:20,429 KT: I don't think that's immoral. So anyway, that's his question. 33 00:02:20,669 --> 00:02:23,470 Suze: Scott, here's what I would tell you. Now it's not 34 00:02:23,470 --> 00:02:28,380 Suze: an immoral question, but I'm not sure it solves your problem. 35 00:02:28,630 --> 00:02:32,029 Suze: And let me tell you why. A term life insurance 36 00:02:32,029 --> 00:02:35,910 Suze: policy is only good for a specific term. 37 00:02:36,380 --> 00:02:38,320 Suze: So let's say I don't know how old you are 38 00:02:38,320 --> 00:02:42,000 Suze: right now, but let's say your mother is older, let's 39 00:02:42,000 --> 00:02:45,229 Suze: say she's in her 70s, and maybe she's gonna live 40 00:02:45,229 --> 00:02:47,720 Suze: to her 90s, possibly even 100. 41 00:02:48,589 --> 00:02:52,299 Suze: There's no way that a term policy at this point 42 00:02:52,300 --> 00:02:55,059 Suze: in time, if that's how old she is, is going 43 00:02:55,059 --> 00:02:59,270 Suze: to be cost effective. You may find that you pay 44 00:02:59,270 --> 00:03:02,350 Suze: more in premiums over a long period of time 45 00:03:03,149 --> 00:03:05,589 Suze: than you do if you were just to save that 46 00:03:05,589 --> 00:03:08,948 Suze: money possibly to have the money to buy out your 47 00:03:08,949 --> 00:03:13,350 Suze: sister at the time. So I don't think a term 48 00:03:13,350 --> 00:03:17,020 Suze: policy is the way to go. Remember, term life insurance 49 00:03:17,350 --> 00:03:19,350 Suze: is meant to only be there during your 50 00:03:19,425 --> 00:03:24,735 Suze: younger years before you've had time to accumulate assets and 51 00:03:24,735 --> 00:03:27,774 Suze: it allows you to do so at a very cost 52 00:03:27,774 --> 00:03:30,763 Suze: effective rate. It's not meant to be your whole life. 53 00:03:31,104 --> 00:03:34,133 Suze: So if I were you, that isn't how I would 54 00:03:34,133 --> 00:03:37,134 Suze: solve this problem. I mean, I could go on and 55 00:03:37,134 --> 00:03:40,134 Suze: on about ways that you could solve it, but that 56 00:03:40,134 --> 00:03:43,455 Suze: wasn't your question to me. So no, I don't think 57 00:03:43,455 --> 00:03:46,695 Suze: your term and life insurance policy will do it. I 58 00:03:46,695 --> 00:03:47,895 Suze: just don't. All right. 59 00:03:48,470 --> 00:03:52,490 KT: So Suze, the next question is from um a listener 60 00:03:52,490 --> 00:03:55,250 KT: that said I just got my must have documents and 61 00:03:55,250 --> 00:04:00,000 KT: started filling them out. It's a little surreal thinking about passing. 62 00:04:00,250 --> 00:04:02,979 KT: I read that I may want to make my trust 63 00:04:03,250 --> 00:04:05,570 KT: the beneficiary for all of my bank. 64 00:04:05,875 --> 00:04:09,994 KT: and retirement accounts, is this accurate, or would it be 65 00:04:09,994 --> 00:04:14,634 KT: better to make some or all of them POD provided 66 00:04:14,634 --> 00:04:17,105 KT: I have no debt or expenses after death? 67 00:04:17,195 --> 00:04:20,785 Suze: So here's my question, KT, does he say or she say? 68 00:04:21,488 --> 00:04:25,480 Suze: How old they are, do they say if they're married anything? 69 00:04:25,559 --> 00:04:28,359 KT: No, but they're just filling them out for the first time. 70 00:04:28,369 --> 00:04:31,359 Suze: Right, so here's what I want everybody to know about 71 00:04:31,359 --> 00:04:35,239 Suze: the must-have documents and what are the must have documents. 72 00:04:35,359 --> 00:04:38,239 Suze: They are a living revocable trust. It. 73 00:04:38,355 --> 00:04:41,214 Suze: Advanced directive and durable power of attorney for health care, 74 00:04:41,464 --> 00:04:46,045 Suze: a will, and a financial power of attorney. Those are 75 00:04:46,045 --> 00:04:50,704 Suze: 4 documents that you must have. And if you want those, 76 00:04:50,795 --> 00:04:53,704 Suze: by the way, go to musthavedocs.com and take a look 77 00:04:53,704 --> 00:04:56,424 Suze: because that's where you can get them. What you have 78 00:04:56,424 --> 00:05:00,545 Suze: to understand is if you are married. 79 00:05:01,220 --> 00:05:04,419 Suze: You never ever ever want the trust to be the 80 00:05:04,420 --> 00:05:11,140 Suze: beneficiary of any retirement account or any HSA account. Let's 81 00:05:11,140 --> 00:05:14,019 Suze: be clear on that. So when this person says that 82 00:05:14,019 --> 00:05:16,149 Suze: it should be my beneficiary for all my bank and 83 00:05:16,149 --> 00:05:20,179 Suze: retirement accounts, not if you are married. 84 00:05:20,549 --> 00:05:23,940 Suze: Again, I am underlining this you do not want your 85 00:05:23,940 --> 00:05:27,859 Suze: trust account to be the primary beneficiary if you are 86 00:05:27,859 --> 00:05:34,049 Suze: married of any retirement accounts and or an HSA insurance account. 87 00:05:34,140 --> 00:05:38,238 Suze: So here's what you all need to know as well. Sure, 88 00:05:38,279 --> 00:05:41,489 Suze: you can make your accounts and everything pay on death, 89 00:05:41,940 --> 00:05:45,488 Suze: but as I've said many times, what if you don't die? 90 00:05:45,950 --> 00:05:48,700 Suze: What if you become incapacitated? 91 00:05:49,399 --> 00:05:52,469 Suze: Then the pay on death account isn't going to help you. 92 00:05:52,678 --> 00:05:55,040 Suze: Who's going to be able to access that money if 93 00:05:55,040 --> 00:05:58,678 Suze: you need it? A living trust with an incapacity clause 94 00:05:58,678 --> 00:06:02,799 Suze: in it which the must-have documents have, is the way 95 00:06:02,799 --> 00:06:06,558 Suze: to go bar none. Just telling you you want to 96 00:06:06,559 --> 00:06:10,609 Suze: avoid problems, get the must have documents. All right, KT. 97 00:06:10,920 --> 00:06:14,190 KT: OK, this, this is my favorite kind of question, everyone 98 00:06:14,190 --> 00:06:15,399 KT: from Teresa. 99 00:06:15,670 --> 00:06:19,488 KT: You ladies rock, I heard I can do a one-time 100 00:06:19,488 --> 00:06:26,040 KT: rollover from a traditional IRA to my HSA account tax free. 101 00:06:26,290 --> 00:06:27,720 KT: If so, how? 102 00:06:27,850 --> 00:06:31,890 Suze: You are absolutely right, my dear Teresa. One time. 103 00:06:31,950 --> 00:06:35,220 Suze: And one time only. If you want to use the 104 00:06:35,220 --> 00:06:39,380 Suze: money in an IRA, a traditional IRA, so you've never 105 00:06:39,380 --> 00:06:42,940 Suze: paid taxes on it, or even a pre-tax IRA rollover 106 00:06:42,940 --> 00:06:46,540 Suze: that you may have, you can take that money and 107 00:06:46,540 --> 00:06:48,100 Suze: use it to fund 108 00:06:48,920 --> 00:06:53,328 Suze: up to the max if you want of the HSA 109 00:06:53,329 --> 00:06:57,720 Suze: that you have and it is absolutely tax free. So 110 00:06:57,720 --> 00:06:59,480 Suze: if you want to know how to do it in 111 00:06:59,480 --> 00:07:03,440 Suze: your particular company, I would ask your HR person how 112 00:07:03,440 --> 00:07:04,409 Suze: to do it all right. 113 00:07:04,420 --> 00:07:04,720 KT: OK. 114 00:07:05,165 --> 00:07:09,445 KT: So on the theme of 401ks, this is from Jenny. 115 00:07:09,674 --> 00:07:13,274 KT: My employer is being bought by another company. I have 116 00:07:13,274 --> 00:07:18,545 KT: a 401k with Fidelity. They're switching to a 403B with Empower. 117 00:07:18,674 --> 00:07:22,345 KT: I think that was formerly Prudential. Should I roll over 118 00:07:22,345 --> 00:07:25,894 KT: or start a new retirement account? I don't know much 119 00:07:25,894 --> 00:07:28,065 KT: about 403Bs. Thank you. 120 00:07:28,154 --> 00:07:32,674 Suze: A 403B works essentially the same way as a 401k really. 121 00:07:33,250 --> 00:07:37,920 Suze: That's what you need to know. However, if it were me, 122 00:07:38,709 --> 00:07:43,480 Suze: And I had a 401k with Fidelity, and now they're 123 00:07:43,480 --> 00:07:46,869 Suze: switching it to a 403B with Empower. What I want 124 00:07:46,869 --> 00:07:50,640 Suze: you to think about, however, is if you did an 125 00:07:50,640 --> 00:07:55,470 Suze: IRA rollover with the 401k that you have at Fidelity 126 00:07:55,859 --> 00:07:59,570 Suze: and start a new retirement account there. You also have 127 00:07:59,570 --> 00:08:02,290 Suze: the ability if you want to start converting to a 128 00:08:02,290 --> 00:08:06,480 Suze: Roth IRA, and your investment options will be far grander 129 00:08:06,730 --> 00:08:10,730 Suze: than any 403B with Empower that they'll offer you. But 130 00:08:10,730 --> 00:08:12,929 Suze: if you make a lot of money. 131 00:08:13,519 --> 00:08:17,899 Suze: And you want to do a backdoor Roth IRA one 132 00:08:17,899 --> 00:08:22,899 Suze: day if you have a traditional IRA that you rolled 133 00:08:22,899 --> 00:08:25,040 Suze: over and you're not going to be able to do 134 00:08:25,040 --> 00:08:28,459 Suze: a backdoor Roth. So therefore you might just want to 135 00:08:28,459 --> 00:08:32,340 Suze: leave it with the 403B withinower just depends how much 136 00:08:32,340 --> 00:08:35,020 Suze: money you make a year, how much money you think 137 00:08:35,020 --> 00:08:38,119 Suze: you're gonna make in the future, and if you like 138 00:08:38,119 --> 00:08:41,450 Suze: the investment options and the fees that Empower is going 139 00:08:41,450 --> 00:08:42,329 Suze: to charge you. 140 00:08:43,229 --> 00:08:46,549 Suze: Other than and actually the amount of money that you 141 00:08:46,549 --> 00:08:49,190 Suze: have in there because if there isn't a lot of 142 00:08:49,190 --> 00:08:51,710 Suze: money in there then oh you bet I would do 143 00:08:51,710 --> 00:08:55,789 Suze: an IRA rollover and then convert it to a Roth IRA. 144 00:08:55,869 --> 00:08:56,340 Suze: All right. 145 00:08:56,979 --> 00:08:58,669 KT: All right, next is from Melissa. 146 00:08:59,150 --> 00:09:02,829 KT: Hi Suze, I understand you're a big fan of dollar 147 00:09:02,830 --> 00:09:03,799 KT: cost averaging. 148 00:09:03,849 --> 00:09:04,340 Suze: I am. 149 00:09:04,340 --> 00:09:08,619 KT: I will be receiving about $10,000 for a car accident 150 00:09:08,619 --> 00:09:14,020 KT: settlement within the next few weeks and $30,000 next September. 151 00:09:14,429 --> 00:09:17,669 KT: I'd like to invest all of this money in dividend 152 00:09:17,669 --> 00:09:21,988 KT: ETFs because I have no debt. I'm contributing 12% to 153 00:09:21,989 --> 00:09:26,189 KT: my 401k, and I have a 6 month emergency fund. 154 00:09:26,580 --> 00:09:29,909 KT: Do I put everything in a high yield savings account 155 00:09:29,909 --> 00:09:34,390 KT: and then invest maybe $1000 at a time every week 156 00:09:34,679 --> 00:09:37,559 KT: into a dividend ETF or what's the best way to 157 00:09:37,559 --> 00:09:42,108 KT: go about dollar cost averaging with large sums of money. 158 00:09:42,359 --> 00:09:43,429 Suze: Given that you only have 159 00:09:43,479 --> 00:09:47,590 Suze: A 6 month emergency fund when I have been telling 160 00:09:47,590 --> 00:09:51,069 Suze: you now for years that everybody should have an 8 161 00:09:51,070 --> 00:09:55,098 Suze: to 12 month emergency fund looks to me like girlfriend, 162 00:09:55,270 --> 00:09:57,460 Suze: you're gonna be taking this money and putting it in 163 00:09:57,460 --> 00:10:00,299 Suze: a high yield savings account or money market account. 164 00:10:00,549 --> 00:10:03,780 Suze: And you're gonna add the $30,000 to it again when 165 00:10:03,780 --> 00:10:06,539 Suze: it comes in a year from now and then you're 166 00:10:06,539 --> 00:10:09,929 Suze: gonna see is that an 8 or 12 month emergency fund? 167 00:10:10,179 --> 00:10:12,859 Suze: And if it is and there's anything extra, then we'll 168 00:10:12,859 --> 00:10:15,849 Suze: talk about dollar cost averaging into things at that time. 169 00:10:16,020 --> 00:10:16,819 Suze: All right, KT. 170 00:10:16,969 --> 00:10:21,419 KT: OK, next question is from Pat, and Pat is asking 171 00:10:21,419 --> 00:10:22,709 KT: Suze and KT, 172 00:10:23,859 --> 00:10:27,580 KT: I have a question about IRMA, so I have to 173 00:10:27,580 --> 00:10:30,419 KT: tell you all I didn't know what IRMA was, so 174 00:10:30,419 --> 00:10:35,289 KT: I looked it up. It's an income related monthly adjusted 175 00:10:35,289 --> 00:10:38,770 KT: amount from Medicare. Suze will tell you what that means, 176 00:10:38,940 --> 00:10:41,299 KT: but this is a question about IRMA. 177 00:10:41,380 --> 00:10:42,419 Suze: You pay IRMA. 178 00:10:42,659 --> 00:10:44,358 KT: My husband, my husband... 179 00:10:44,380 --> 00:10:45,848 Suze: You know that you pay Irma. 180 00:10:46,010 --> 00:10:46,619 KT: I do? 181 00:10:46,619 --> 00:10:47,619 Suze: Every single year. 182 00:10:48,830 --> 00:10:49,530 Suze: So do I. 183 00:10:50,710 --> 00:10:51,929 Suze: All right, go on, go on. 184 00:10:53,780 --> 00:10:56,340 KT: IRMA must be rich, man. All right, my husband and 185 00:10:56,340 --> 00:10:59,320 KT: I are selling our rental property as we no longer 186 00:10:59,320 --> 00:11:02,969 KT: want to be landlords, nor do we want to invest 187 00:11:02,969 --> 00:11:06,739 KT: in other options. That said, we are prepared to pay 188 00:11:06,739 --> 00:11:09,820 KT: the taxes. Know we will have to pay Irma for 189 00:11:09,820 --> 00:11:12,179 KT: a year and just want to be totally done. 190 00:11:12,849 --> 00:11:16,289 KT: So then the question is, do I have to wait 191 00:11:16,289 --> 00:11:20,169 KT: for the 2 year look back with Medicare to charge 192 00:11:20,169 --> 00:11:23,409 KT: the IRMA fees? I don't know what that means. 193 00:11:23,669 --> 00:11:26,819 Suze: All right, let's see if I can explain this to you. 194 00:11:27,090 --> 00:11:31,650 Suze: As you know, everybody, when you turn 65, which is 195 00:11:31,650 --> 00:11:35,179 Suze: so fabulous, you qualify for Medicare. 196 00:11:35,979 --> 00:11:39,530 Suze: And I can't tell you how incredible Medicare is when 197 00:11:39,530 --> 00:11:42,049 Suze: it comes to health needs. Do you know that that 198 00:11:42,049 --> 00:11:45,329 Suze: entire operation that I went through and everything, I did 199 00:11:45,330 --> 00:11:48,650 Suze: not pay one penny for it. 200 00:11:48,659 --> 00:11:50,340 KT: What do you think that would have cost? 201 00:11:51,090 --> 00:11:52,479 Suze: Well over a million bucks. 202 00:11:52,559 --> 00:11:54,890 Suze: Well over a million dollars over a million dollars for 203 00:11:54,890 --> 00:11:56,559 Suze: what they had to do and how long they had 204 00:11:56,559 --> 00:11:59,359 Suze: to do it. I mean, I'm sure it was over 205 00:11:59,359 --> 00:12:03,650 Suze: a million dollars anyway. So what is IRMA? 206 00:12:03,789 --> 00:12:06,049 KT: Wait, so she paid 0 $0. 207 00:12:06,140 --> 00:12:07,099 Suze: You know that. 208 00:12:07,320 --> 00:12:12,200 KT: I know. I'm telling everyone listening that's what Medicare's incredibly 209 00:12:12,200 --> 00:12:15,669 KT: so incredibly important. I hope it never goes away. 210 00:12:15,799 --> 00:12:18,000 Suze: So you turn 65. 211 00:12:18,400 --> 00:12:22,919 Suze: And Medicare has a Part A and a Part B. 212 00:12:23,460 --> 00:12:26,460 Suze: And when it comes to Part B, you pay a 213 00:12:26,460 --> 00:12:30,969 Suze: monthly premium for it based on your income. 214 00:12:31,580 --> 00:12:35,520 Suze: And your income, depending on what it is, you could 215 00:12:35,520 --> 00:12:38,478 Suze: pay like up to $500 a month. I think we 216 00:12:38,479 --> 00:12:42,598 Suze: pay $526 a month, KT out of our Social Security 217 00:12:42,599 --> 00:12:44,839 Suze: check for Medicare Part B. 218 00:12:45,330 --> 00:12:52,339 Suze: But IRMA is really it's a monthly adjusted amount for Medicare, 219 00:12:52,750 --> 00:12:58,419 Suze: but IRMA is based on your modified adjusted gross income 220 00:12:58,419 --> 00:13:05,669 Suze: from 2 years prior, so they're always looking back 2 years. 221 00:13:06,159 --> 00:13:09,710 Suze: And so therefore, uh, you know, if you had an 222 00:13:09,710 --> 00:13:14,429 Suze: income sale from a piece of property in 2024, the 223 00:13:14,429 --> 00:13:18,500 Suze: income from that sale in this case would generally affect 224 00:13:18,500 --> 00:13:21,738 Suze: her 2026 Medicare premium. 225 00:13:21,869 --> 00:13:23,858 KT: I get it now I understand I got it, the question. 226 00:13:24,900 --> 00:13:26,510 Suze: Now here's the thing, however. 227 00:13:27,489 --> 00:13:31,650 Suze: With Social Security, if you have what's called a life 228 00:13:31,650 --> 00:13:36,079 Suze: changing event, and I think it's form, oh God, are 229 00:13:36,080 --> 00:13:42,039 Suze: you gonna quote me on this? Social Security at SSA-44. OK, 230 00:13:42,169 --> 00:13:43,650 Suze: I think that's it, right? 231 00:13:43,739 --> 00:13:46,669 KT: You're probably right because you memorize numbers. 232 00:13:46,669 --> 00:13:51,830 Suze: Anyway, you can request that Social Security adjust your IRA 233 00:13:52,250 --> 00:13:54,859 Suze: based on your current income. 234 00:13:55,780 --> 00:14:00,739 Suze: Usually if there's a significant reduction to a qualifying event, 235 00:14:01,039 --> 00:14:03,719 Suze: so and I have to tell you the sale of 236 00:14:03,719 --> 00:14:09,789 Suze: a property qualifies for that. So Patricia, if I were you, 237 00:14:10,000 --> 00:14:13,960 Suze: if you want the IRMA increase to start in 2025 238 00:14:13,960 --> 00:14:16,719 Suze: and be done after that one year, just... 239 00:14:16,969 --> 00:14:21,059 Suze: You need to contact them and see if in fact 240 00:14:21,059 --> 00:14:26,630 Suze: it qualifies or what happens with 2024, 2022, whatever it 241 00:14:26,630 --> 00:14:30,950 Suze: is you need to contact them and see if it 242 00:14:30,950 --> 00:14:32,669 Suze: will help you all right, 243 00:14:32,789 --> 00:14:35,960 KT: OK, this is my final question from... 244 00:14:35,960 --> 00:14:40,309 Suze: Wanna know something here where I wouldn't necessarily want to 245 00:14:40,309 --> 00:14:44,219 Suze: get it done. Oh, I, you just handed me her email. 246 00:14:44,799 --> 00:14:46,640 Suze: Did you see on the bottom it says she wants 247 00:14:46,640 --> 00:14:49,719 Suze: to do it now because she thinks tax brackets are 248 00:14:49,719 --> 00:14:53,200 Suze: gonna go up over the next few years? That's why 249 00:14:53,200 --> 00:14:55,750 Suze: she wants to do it now. I got it. All right, 250 00:14:55,840 --> 00:14:59,080 Suze: see what you can do life changing event form 251 00:14:59,969 --> 00:15:04,200 Suze: SSA 4444 I hope. OK. 252 00:15:04,530 --> 00:15:09,450 KT: So from Danette, hello, Suze and KT. Happy travels. Suze, 253 00:15:09,570 --> 00:15:14,359 KT: I purchased the must-have documents online in 2009. 254 00:15:14,599 --> 00:15:14,969 Suze: Smart. 255 00:15:15,190 --> 00:15:16,609 KT: Yes, yes, she is smart. 256 00:15:16,849 --> 00:15:22,039 KT: Opened my revocable trust, changed my house title. You mentioned 257 00:15:22,039 --> 00:15:27,390 KT: the incapacity clause. Is it available with my docs automatically, 258 00:15:27,559 --> 00:15:29,799 KT: or do I need to fill it in, you know, 259 00:15:29,919 --> 00:15:33,909 KT: all over again and have them co-signed and notarized again? 260 00:15:34,359 --> 00:15:37,320 KT: Then she says, do I have to buy the newest docs? 261 00:15:37,440 --> 00:15:38,770 KT: This is from Danette. 262 00:15:39,000 --> 00:15:43,679 Suze: So Danette, here's the great thing about the must-have docs. 263 00:15:43,840 --> 00:15:45,479 Suze: It's a one and done. 264 00:15:46,000 --> 00:15:51,190 Suze: That's it meaning what? Once you have purchased them, no 265 00:15:51,190 --> 00:15:56,109 Suze: matter what updates are made, you qualify for the updates 266 00:15:56,109 --> 00:15:59,380 Suze: and without any extra cost at all. 267 00:16:00,020 --> 00:16:03,119 Suze: You know, I would never talk to you about something 268 00:16:03,119 --> 00:16:05,599 Suze: that I want you to buy that you have to 269 00:16:05,599 --> 00:16:09,309 Suze: continue to buy and buy as it changes. So unlike 270 00:16:09,309 --> 00:16:12,080 Suze: many of the other companies, when something changes, you have 271 00:16:12,080 --> 00:16:15,109 Suze: to buy it again. That's not true with the must 272 00:16:15,109 --> 00:16:20,760 Suze: have docs. Your 2009 ones that you did buy has 273 00:16:20,760 --> 00:16:23,119 Suze: the incapacity clause in it. However, 274 00:16:23,820 --> 00:16:27,739 Suze: given that that was so long ago, I think it's 275 00:16:27,739 --> 00:16:31,380 Suze: a really great idea if you redid them so that 276 00:16:31,380 --> 00:16:35,299 Suze: you see where is everything, how did you do it? 277 00:16:35,340 --> 00:16:38,619 Suze: Is there any changes that you want to make? And 278 00:16:38,619 --> 00:16:41,619 Suze: therefore on your documents when you go back and you 279 00:16:41,619 --> 00:16:44,700 Suze: go to the program, there's a little help tab or 280 00:16:44,700 --> 00:16:47,729 Suze: whatever just contact the company. 281 00:16:48,070 --> 00:16:52,440 Suze: And you'll automatically be updated to the program as it 282 00:16:52,440 --> 00:16:56,799 Suze: is today, and it's just been totally updated, by the way. 283 00:16:56,989 --> 00:17:00,169 Suze: So if I were you, I would do that. Another 284 00:17:00,169 --> 00:17:03,049 Suze: thing I love about the must have docs, KT, besides that. 285 00:17:03,169 --> 00:17:03,739 KT: What's that? 286 00:17:03,940 --> 00:17:06,369 Suze: You can share it with as many people in your 287 00:17:06,369 --> 00:17:07,599 Suze: family as you want. 288 00:17:07,599 --> 00:17:08,520 KT: Or friends. 289 00:17:08,520 --> 00:17:11,329 Suze: Or friends or whatever, so it's like it just takes 290 00:17:11,329 --> 00:17:15,219 Suze: one of you to do it. Quizzy time, KT. 291 00:17:15,369 --> 00:17:16,810 KT: OK, what do you got for me? 292 00:17:17,579 --> 00:17:21,540 Suze: This is from MS. All right. 293 00:17:22,420 --> 00:17:26,369 Suze: And she says the following, and I know it's a she, 294 00:17:26,380 --> 00:17:31,050 Suze: by the way. Anyway, I'm 40, which means that I've 295 00:17:31,050 --> 00:17:35,040 Suze: gone by people first, then money, then things for half 296 00:17:35,040 --> 00:17:40,050 Suze: of my life. Thank you. I currently own my home outright. 297 00:17:40,479 --> 00:17:45,349 Suze: But only have about 35% of total net worth invested 298 00:17:45,349 --> 00:17:49,669 Suze: in the markets. The rest are in cash. I have 299 00:17:49,670 --> 00:17:54,469 Suze: relatively low expenses for myself. Now, are all of you 300 00:17:54,469 --> 00:17:58,349 Suze: listening to these facts, because this quizzy isn't just for 301 00:17:58,349 --> 00:18:02,708 Suze: KT to be able to answer. I give quizzes for 302 00:18:02,709 --> 00:18:05,948 Suze: all of you to be able to answer, to know 303 00:18:05,949 --> 00:18:08,589 Suze: if these things ever happened in your situation. 304 00:18:09,160 --> 00:18:12,880 Suze: What you should do all right now again, this person 305 00:18:12,880 --> 00:18:19,810 Suze: is single, no kids, she says, however, my job is 306 00:18:19,810 --> 00:18:26,050 Suze: quite unstable. Hence I must be prepared to be retired 307 00:18:26,050 --> 00:18:27,619 Suze: at any time. 308 00:18:28,310 --> 00:18:33,379 Suze: I am a citizen of a low cost of living country. Hence, 309 00:18:33,569 --> 00:18:39,079 Suze: plan on retiring there should the need arise. She's 40. 310 00:18:39,939 --> 00:18:44,229 Suze: She plans to retire there if the need arises. All right. 311 00:18:44,989 --> 00:18:48,929 Suze: I am able to live at my parents' home indefinitely. 312 00:18:49,500 --> 00:18:54,140 Suze: From my estimates. If I were to liquidate my assets 313 00:18:54,140 --> 00:18:58,310 Suze: and put the money in the bank with 3% interest, 314 00:18:58,630 --> 00:19:02,698 Suze: I should have 2 times the monthly expenses that my 315 00:19:02,699 --> 00:19:05,500 Suze: parents currently use. 316 00:19:06,300 --> 00:19:09,969 Suze: Has anybody ever heard of inflation? But anyway, all right, 317 00:19:10,339 --> 00:19:10,790 Suze: my question... 318 00:19:10,790 --> 00:19:12,780 KT: Sounds like a great place to go. 319 00:19:13,420 --> 00:19:18,649 Suze: My question is I have been thinking of upgrading my 320 00:19:18,650 --> 00:19:19,660 Suze: apartment 321 00:19:20,819 --> 00:19:26,250 Suze: to a swankier one in the city center downtown vibes, 322 00:19:26,260 --> 00:19:30,660 Suze: better air. I plan to use all or most of 323 00:19:30,660 --> 00:19:34,819 Suze: the cash I have on hand for the upgrade or 324 00:19:34,819 --> 00:19:39,250 Suze: take a minimal loan. Now I am assuming here 325 00:19:40,010 --> 00:19:43,930 Suze: that she has a home that she owns outright, she 326 00:19:43,930 --> 00:19:48,649 Suze: may be thinking about selling her home, moving to a 327 00:19:48,650 --> 00:19:52,319 Suze: bigger swankier apartment in the city. 328 00:19:52,959 --> 00:19:56,780 Suze: But she'd have to use all the cash from her home. 329 00:19:57,670 --> 00:20:01,369 Suze: And to make an upgrade or make or have a 330 00:20:01,369 --> 00:20:05,800 Suze: minimal loan, do I approve? Think about it. 331 00:20:07,300 --> 00:20:09,280 Suze: Oh, you're looking at me like there's nothing to think about. 332 00:20:09,280 --> 00:20:11,130 KT: This is a no brainer here, Suze. 333 00:20:11,359 --> 00:20:12,109 Suze: What is that? 334 00:20:12,280 --> 00:20:16,160 KT: No. Why would you do that? I would never do 335 00:20:16,160 --> 00:20:19,119 KT: that if I had an unstable job and I'm 40 336 00:20:19,119 --> 00:20:24,510 KT: years old, I'd want to accumulate as much cash as possible, 337 00:20:24,800 --> 00:20:26,339 KT: so then I'd feel free. 338 00:20:26,680 --> 00:20:27,829 Suze: So you've denied her. 339 00:20:27,959 --> 00:20:29,479 KT: Yes, totally. 340 00:20:29,680 --> 00:20:30,260 Suze: Say it KT. 341 00:20:30,800 --> 00:20:34,679 KT: You are denied. That's the way you say it. 342 00:20:35,369 --> 00:20:38,930 Suze: So what's funny about this quizzy is I wrote her back. Oh, 343 00:20:39,030 --> 00:20:42,369 Suze: what'd you say? I sent her a little picture of 344 00:20:42,369 --> 00:20:44,959 Suze: myself with a stamp that said Denied there 345 00:20:44,959 --> 00:20:47,199 KT: Ding ding ding ding ding. 346 00:20:47,250 --> 00:20:52,520 Suze: So you're right, but here's why MS that you're thinking, 347 00:20:52,569 --> 00:20:56,689 Suze: in my opinion is not logical. You currently own your 348 00:20:56,689 --> 00:21:01,290 Suze: home outright. You don't have any bills whatever. 349 00:21:01,660 --> 00:21:05,339 Suze: And what you're saying is that you want to move 350 00:21:05,339 --> 00:21:10,670 Suze: to a swankier place, which means more expenses, more taxes, 351 00:21:10,969 --> 00:21:15,430 Suze: more everything, and you don't have a stable job. 352 00:21:16,109 --> 00:21:19,530 Suze: So you have to be prepared to retire at any time. No, 353 00:21:19,739 --> 00:21:22,569 Suze: at the age of 40, if you lose your job, 354 00:21:22,660 --> 00:21:28,218 Suze: you get another job. You stay where you want. Obviously 355 00:21:28,219 --> 00:21:30,619 Suze: you're liking wherever you live and you just want a 356 00:21:30,619 --> 00:21:33,930 Suze: little more life around you. So go to that place, 357 00:21:33,979 --> 00:21:37,180 Suze: the swankier place, and be entertained and then go home 358 00:21:37,180 --> 00:21:39,219 Suze: to a place that you own outright. 359 00:21:39,810 --> 00:21:42,899 Suze: So at 40 years of age this is still your 360 00:21:42,900 --> 00:21:46,419 Suze: compounding years. These are not the years for you to 361 00:21:46,420 --> 00:21:49,930 Suze: be spending money and you need to be saving it 362 00:21:49,930 --> 00:21:53,379 Suze: and investing it and being wise with money. And then 363 00:21:53,380 --> 00:21:55,339 Suze: when you're old like us, you can live on a 364 00:21:55,339 --> 00:21:58,699 Suze: private island. You could do whatever you want at that 365 00:21:58,699 --> 00:21:59,310 Suze: point in time. 366 00:21:59,459 --> 00:22:01,859 KT: Why isn't she just rent something in the city and 367 00:22:01,859 --> 00:22:02,688 KT: see if she likes? 368 00:22:02,699 --> 00:22:03,540 Suze: No, that's... (Suze makes the wrong answer noise). 369 00:22:06,199 --> 00:22:08,479 Suze: She doesn't need to be paying more money. I don't 370 00:22:08,479 --> 00:22:11,589 Suze: know why she wants to do that. That's not our problem. 371 00:22:11,880 --> 00:22:16,708 Suze: Here's the other thing you say that if you liquidate 372 00:22:16,709 --> 00:22:19,040 Suze: your assets and you put the money in the bank 373 00:22:19,040 --> 00:22:21,679 Suze: with a 3% interest, how do you know what interest 374 00:22:21,680 --> 00:22:23,839 Suze: rates are going to be? How do you know what 375 00:22:23,839 --> 00:22:26,479 Suze: your assets are going to be if you had done 376 00:22:26,479 --> 00:22:28,208 Suze: this plan years ago? 377 00:22:28,680 --> 00:22:32,869 Suze: And you were thinking, oh, it's 2007. You've now lost 378 00:22:32,869 --> 00:22:35,869 Suze: your job. You're going to sell your home, you're gonna 379 00:22:35,869 --> 00:22:39,189 Suze: sell your assets. You wouldn't get anywhere close to what 380 00:22:39,189 --> 00:22:42,869 Suze: anything is currently worth today. And you say that you 381 00:22:42,869 --> 00:22:45,869 Suze: would have two times the monthly expenses that your parents 382 00:22:45,869 --> 00:22:48,869 Suze: currently use. Do you really want to live the lifestyle 383 00:22:48,869 --> 00:22:50,819 Suze: that maybe your parents are living? 384 00:22:51,479 --> 00:22:55,560 Suze: So your thinking is wrong on this. You are to 385 00:22:55,560 --> 00:22:58,199 Suze: think that you are going to make the most out 386 00:22:58,199 --> 00:23:02,319 Suze: of your life here, where you're obviously enjoying yourself, or 387 00:23:02,319 --> 00:23:05,520 Suze: you would be back home already. You're going to save it. 388 00:23:05,599 --> 00:23:08,050 Suze: You're going to invest it. If you want to swank 389 00:23:08,050 --> 00:23:10,989 Suze: your lifestyle, go there for the weekend and come back. 390 00:23:11,079 --> 00:23:16,229 Suze: Do whatever. But no, you are denied. All right, KT. 391 00:23:17,229 --> 00:23:18,389 KT: That's it. That's a wrap. 392 00:23:18,530 --> 00:23:23,260 Suze: That's a wrap. So until Sunday, there's only one thing 393 00:23:23,260 --> 00:23:25,229 Suze: that we really want you to remember when it comes 394 00:23:25,229 --> 00:23:27,229 Suze: to your money. And what is that, KT? 395 00:23:27,229 --> 00:23:28,637 KT: People first. 396 00:23:28,637 --> 00:23:29,459 Suze: Then money. 397 00:23:29,630 --> 00:23:30,459 KT: Then things. 398 00:23:30,550 --> 00:23:34,089 Suze: And if you do that, stay safe, don't want to 399 00:23:34,089 --> 00:23:38,189 Suze: live in a swankier place and stay healthy. You will 400 00:23:38,189 --> 00:23:40,739 Suze: be unstoppable.