1 00:00:07,810 --> 00:00:08,360 Suze: (Music Intro) 2 00:00:32,670 --> 00:00:33,550 Suze: June 2nd 3 00:00:33,940 --> 00:00:37,370 Suze: 2022 Ms Travis 4 00:00:37,380 --> 00:00:39,610 KT: Suze. Do you know what this month is? 5 00:00:39,610 --> 00:00:41,380 Suze: Yeah, it's three days before my birthday. 6 00:00:41,870 --> 00:00:44,620 KT: It's the Gemini month. She can change your mind every day 7 00:00:45,320 --> 00:00:48,050 Suze: I change my mind every day. Anyway... 8 00:00:48,060 --> 00:00:53,410 KT: Her birthday is Sunday, everybody. We're going to have a little party. 9 00:00:53,420 --> 00:00:55,160 Suze: Are we going to do a podcast on that day? 10 00:00:55,160 --> 00:00:58,740 KT: We are. We're going to do a birthday podcast And 11 00:00:58,750 --> 00:01:02,820 KT: all of you should send in your wishes before then 12 00:01:02,830 --> 00:01:05,679 KT: because I'm going to select a couple of really great 13 00:01:05,680 --> 00:01:10,339 KT: birthday wishes for Suze. What do you wish for Suze everybody, 14 00:01:10,350 --> 00:01:13,179 Suze: KT... Why do you think that... by the way before 15 00:01:13,180 --> 00:01:16,290 Suze: we go into this? Welcome everybody to the Ask Suze 16 00:01:16,290 --> 00:01:17,460 Suze: and KT 17 00:01:17,640 --> 00:01:20,940 Suze: anything that's anything podcast. 18 00:01:20,940 --> 00:01:22,160 KT: Anything, 19 00:01:22,240 --> 00:01:24,890 KT: anything, anything you want. 20 00:01:24,900 --> 00:01:29,210 Suze: Except there's something that I have been wanting to tell everybody. 21 00:01:29,209 --> 00:01:30,720 KT: What is it Suze? 22 00:01:30,730 --> 00:01:31,800 Suze: Do you really not know? 23 00:01:31,810 --> 00:01:35,190 KT: No, I don't. I'm not going to guess. What is it? 24 00:01:35,200 --> 00:01:37,149 Suze: All right. Listen to me, everybody. 25 00:01:37,940 --> 00:01:40,250 Suze: The Alliant Credit Union 26 00:01:40,740 --> 00:01:42,660 Suze: has raised their interest rates 27 00:01:43,240 --> 00:01:45,850 Suze: From 0.60%,, 28 00:01:46,240 --> 00:01:49,260 Suze: To 0.75%. 29 00:01:49,740 --> 00:01:53,670 Suze: So all of you that have the ultimate opportunity savings account, 30 00:01:53,680 --> 00:01:57,970 Suze: you're now going to be earning 0.75%. And if you 31 00:01:57,970 --> 00:02:01,480 Suze: continue to put $100 a month every month in for 32 00:02:01,480 --> 00:02:06,000 Suze: 12 consecutive months, you're going to get $100 bonus as well. 33 00:02:06,000 --> 00:02:07,260 Suze: If you don't have it yet, 34 00:02:07,640 --> 00:02:12,450 Suze: please go to my M Y alliant dot com my 35 00:02:12,450 --> 00:02:16,000 Suze: alliant dot com and check it out. I promise you, 36 00:02:16,000 --> 00:02:18,850 Suze: you will be happy that you did. 37 00:02:18,860 --> 00:02:21,760 KT: That's great news. That's good. That's really great 38 00:02:21,760 --> 00:02:25,850 Suze: KT, I have two questions for you. Number one. 39 00:02:26,540 --> 00:02:28,959 Suze: Why do you think? I don't look forward to my birthdays? 40 00:02:29,540 --> 00:02:33,770 KT: You've never ever liked celebrating your birthday. And listen, I've 41 00:02:33,780 --> 00:02:38,890 KT: given her some really great parties real fun theme parties. 42 00:02:38,889 --> 00:02:41,970 KT: Remember that one in L. A. Yeah that was a 43 00:02:41,970 --> 00:02:44,100 KT: great one. Was a western. So 44 00:02:44,100 --> 00:02:45,459 Suze: So why do you think? 45 00:02:45,840 --> 00:02:46,250 KT: I don't know 46 00:02:46,250 --> 00:02:47,250 KT: know. I 47 00:02:47,250 --> 00:02:49,750 KT: don't know you, let's put it this way you don't 48 00:02:49,750 --> 00:02:56,579 KT: like celebrating any holiday birthday or special events and you 49 00:02:56,590 --> 00:03:00,399 KT: especially don't like being in the center of attention. But 50 00:03:00,400 --> 00:03:04,459 KT: does she like to give a party? Absolutely. 51 00:03:04,639 --> 00:03:08,150 KT: She gave me a 50th birthday party. I'll never forget. 52 00:03:08,240 --> 00:03:12,700 KT: She's about to give me a 70th birthday party in 53 00:03:12,700 --> 00:03:16,580 KT: July this summer which I know I'm looking forward to 54 00:03:16,590 --> 00:03:17,400 KT: every day. 55 00:03:17,400 --> 00:03:18,590 KT: I count 56 00:03:18,590 --> 00:03:19,840 KT: down the days 57 00:03:19,850 --> 00:03:21,780 KT: we're not gonna, I 58 00:03:21,780 --> 00:03:23,950 KT: was gonna say we're going to keep it a surprise. 59 00:03:23,960 --> 00:03:30,250 KT: And she also loves, loves, loves to prepare and entertain 60 00:03:30,250 --> 00:03:35,089 KT: just one day a year, thanksgiving for the family but 61 00:03:35,090 --> 00:03:37,930 KT: she doesn't like them. She just isn't into it. You 62 00:03:37,930 --> 00:03:38,600 KT: never were 63 00:03:38,600 --> 00:03:40,360 KT: never have been. Anyway. 64 00:03:40,940 --> 00:03:43,300 Suze: one other question are you as sore as I am 65 00:03:43,300 --> 00:03:43,950 Suze: today 66 00:03:43,960 --> 00:03:47,530 KT: a little We were fishing, we went fishing for how 67 00:03:47,530 --> 00:03:48,390 KT: many hours? 68 00:03:48,390 --> 00:03:53,310 Suze: 10 hours on Tuesday and yes I was on the 69 00:03:53,310 --> 00:03:57,690 Suze: boat and I was on the boat for all 10 hours. 70 00:03:57,690 --> 00:03:58,660 KT: She fished 71 00:03:58,670 --> 00:03:59,059 Suze: but 72 00:03:59,140 --> 00:04:01,150 Suze: that night on Tuesday. 73 00:04:01,340 --> 00:04:03,160 Suze: when did I go to sleep 74 00:04:03,170 --> 00:04:07,550 KT: 7:30. She came back, we got in at 6:15. 75 00:04:07,940 --> 00:04:12,070 KT: I always come back water my garden, say hello to 76 00:04:12,070 --> 00:04:16,520 KT: all the plants then get, because I'm really dirty and stinky. 77 00:04:16,520 --> 00:04:19,810 KT: I smell like a squid and I was really, really 78 00:04:19,810 --> 00:04:22,670 KT: dirty from fishing all day. Suze doesn't get dirty. She's 79 00:04:22,670 --> 00:04:25,060 KT: the captain. El Capitan 80 00:04:25,240 --> 00:04:28,870 KT: has the pleasure of sitting behind the wheel and not 81 00:04:28,870 --> 00:04:29,500 KT: getting dirty. 82 00:04:29,500 --> 00:04:31,340 Suze: But I did find the fish, 83 00:04:31,339 --> 00:04:34,480 KT: she finds him, but she fished a little anyway, we 84 00:04:34,480 --> 00:04:38,480 KT: caught quite a few nice yellow eyes snappers and that 85 00:04:38,480 --> 00:04:41,460 KT: was our supper or dinner. But she didn't even eat 86 00:04:41,460 --> 00:04:44,980 KT: dinner on Tuesday night. I came back and saw her 87 00:04:44,980 --> 00:04:46,560 KT: and she was in bed 88 00:04:46,640 --> 00:04:49,250 KT: and I said, and she was actually sleeping. 89 00:04:49,740 --> 00:04:50,090 KT: I said, 90 00:04:50,089 --> 00:04:53,790 KT: Suze, Suze, are you, are you sleeping? And she said, oh, 91 00:04:53,790 --> 00:04:54,350 KT: I just fell 92 00:04:54,350 --> 00:05:00,390 Suze: asleep Anyway, my body still to this day from that 93 00:05:00,400 --> 00:05:01,700 KT: because we're getting old. 94 00:05:01,700 --> 00:05:04,660 Suze: Getting old. But when you're on a boat you're constantly 95 00:05:04,660 --> 00:05:07,790 Suze: rocking And as you know, I'm freshly new back to 96 00:05:07,790 --> 00:05:08,360 Suze: the boat, 97 00:05:08,540 --> 00:05:09,529 Suze: right? So it's 98 00:05:09,529 --> 00:05:10,510 KT: been doing great. 99 00:05:10,510 --> 00:05:12,110 Suze: I've been doing great. 100 00:05:12,339 --> 00:05:14,270 Suze: That all right, let 101 00:05:14,270 --> 00:05:16,349 KT: me get to my questions. But first I have to 102 00:05:16,350 --> 00:05:17,130 KT: tell everyone 103 00:05:17,850 --> 00:05:18,040 Suze: so 104 00:05:18,040 --> 00:05:22,370 KT: much. So I wanted everyone to know this could be 105 00:05:22,370 --> 00:05:28,440 KT: a really short and precise podcast because what I did 106 00:05:28,440 --> 00:05:29,559 KT: was I went through 107 00:05:29,940 --> 00:05:33,830 KT: really quite a few 100 of the questions that came 108 00:05:33,830 --> 00:05:36,960 KT: in and lots of them were in the same category 109 00:05:36,960 --> 00:05:40,480 KT: or the same topic. So I kind of grouped seven 110 00:05:40,480 --> 00:05:44,460 KT: great questions together. I'm not putting the names in. 111 00:05:44,540 --> 00:05:47,300 KT: I'm just going to summerize and ask the question 112 00:05:47,480 --> 00:05:50,070 Suze: because like 34 or 35 people ask the same 113 00:05:50,070 --> 00:05:54,550 KT: thing pretty much the same. And the first one being 114 00:05:54,550 --> 00:05:56,650 KT: that it was Memorial Day. I want to start with 115 00:05:56,650 --> 00:06:00,790 KT: an army veteran. So the first question is Suze, thank 116 00:06:00,790 --> 00:06:04,130 KT: you from a 20 year army veteran and thank you 117 00:06:04,130 --> 00:06:07,049 KT: sir for serving and protecting us. 118 00:06:08,600 --> 00:06:09,400 Suze: and all the men and women who do so, 119 00:06:09,400 --> 00:06:11,440 KT: but but here's what he's asking: 120 00:06:11,640 --> 00:06:13,650 KT: I'm trying to get my wife 121 00:06:13,740 --> 00:06:18,799 KT: to purchase I bonds. She doesn't like the beneficiary setup, 122 00:06:18,810 --> 00:06:21,659 KT: not a fan of probate. Please help. 123 00:06:23,740 --> 00:06:27,290 KT: So what what advice can you give this great army veteran? 124 00:06:27,500 --> 00:06:30,060 Suze: Here's the thing, everybody, it is true 125 00:06:30,540 --> 00:06:34,390 Suze: that series I bonds which are inflation bonds that you 126 00:06:34,390 --> 00:06:37,350 Suze: purchased by going to Treasury direct dot Gov 127 00:06:38,140 --> 00:06:41,640 Suze: has two ways only really that if you buy it 128 00:06:41,650 --> 00:06:45,740 Suze: in your individual name, that you can have a beneficiary 129 00:06:45,740 --> 00:06:47,560 Suze: or you can have a secondary owner. 130 00:06:47,940 --> 00:06:50,229 Suze: But a lot of you are seriously concerned. What what 131 00:06:50,230 --> 00:06:55,669 Suze: happens if both of you die at once, KT and 132 00:06:55,670 --> 00:06:58,380 Suze: I have that problem because we have more of a 133 00:06:58,380 --> 00:07:02,270 Suze: chance of dying at once because we're always together whether it's, 134 00:07:02,279 --> 00:07:05,550 Suze: you know a plane or whatever it may be. So 135 00:07:05,940 --> 00:07:09,150 Suze: if you're really, really concerned about that. 136 00:07:09,940 --> 00:07:12,550 Suze: Then remember you can 137 00:07:12,940 --> 00:07:16,060 Suze: open up a series I bond account in the name 138 00:07:16,060 --> 00:07:16,960 Suze: of the trust 139 00:07:17,540 --> 00:07:19,160 Suze: where the trust owns it 140 00:07:19,740 --> 00:07:25,010 Suze: and therefore if anything happens a trust can't die. You 141 00:07:25,010 --> 00:07:26,460 Suze: don't have to go through probate. 142 00:07:26,940 --> 00:07:29,980 Suze: But if you want to get more than $10,000 in 143 00:07:29,990 --> 00:07:34,840 Suze: remember to listen to the April 17 version of the 144 00:07:34,840 --> 00:07:38,429 Suze: podcast here on women and money. Where I talk about 145 00:07:38,430 --> 00:07:43,200 Suze: how you can get up to possibly $30,000 into a 146 00:07:43,200 --> 00:07:44,550 Suze: series I bond 147 00:07:44,940 --> 00:07:48,750 Suze: But listen to give up 9.62% interest right now 148 00:07:49,140 --> 00:07:50,360 Suze: because of that. 149 00:07:50,840 --> 00:07:53,440 Suze: I don't know I would do it no matter what. 150 00:07:53,440 --> 00:07:54,720 Suze: But anyway. Okay go on. 151 00:07:54,740 --> 00:07:58,340 KT: So Suze that was great advice. His wife definitely should 152 00:07:58,340 --> 00:08:00,580 KT: consider getting the I bonds. 153 00:08:00,580 --> 00:08:03,250 Suze: Well you know how many millions of people since I've 154 00:08:03,250 --> 00:08:06,210 Suze: been talking about it have now gotten them 155 00:08:06,220 --> 00:08:07,000 KT: and they're happy 156 00:08:07,000 --> 00:08:08,230 Suze: and they're really happy 157 00:08:08,230 --> 00:08:09,920 KT: they feel secure and that's the whole 158 00:08:09,920 --> 00:08:11,740 Suze: purpose and so you know if you have to go 159 00:08:11,740 --> 00:08:12,760 Suze: through probate 160 00:08:12,940 --> 00:08:16,260 Suze: with the amount of money that's in I bonds. Okay. 161 00:08:16,270 --> 00:08:19,660 Suze: But the truth of the matter is depending on your state, 162 00:08:19,670 --> 00:08:22,470 Suze: you don't have much there. You might not have to 163 00:08:22,470 --> 00:08:24,140 Suze: go through probate at all. Alright, 164 00:08:24,140 --> 00:08:26,960 KT: So Suze, in keeping with the same theme of series 165 00:08:26,960 --> 00:08:29,790 KT: I bonds which so many people are asking questions 166 00:08:29,790 --> 00:08:32,610 Suze: about which by the way I just want to say something. 167 00:08:32,620 --> 00:08:36,750 Suze: So many of you are asking questions about series I bonds. 168 00:08:36,760 --> 00:08:40,260 Suze: Where if you just went to Treasury direct dot gov, 169 00:08:40,530 --> 00:08:44,890 Suze: they'll answer your questions there, you'll find the answers. So 170 00:08:44,890 --> 00:08:49,209 Suze: since now so many questions are coming in. Don't wait 171 00:08:49,210 --> 00:08:53,590 Suze: for me to get back to you be proactive. Everybody go, KT. 172 00:08:53,600 --> 00:08:55,360 KT: I think Suze's advices 173 00:08:55,440 --> 00:08:59,180 KT: Better. But here you go. So this question is Suze, 174 00:08:59,179 --> 00:09:01,900 KT: I invested in a series I bonds in November of 175 00:09:01,900 --> 00:09:09,939 KT: last year at 7.12%. My statement only shows $178 of interest. 176 00:09:10,240 --> 00:09:11,720 KT: Why isn't it more? 177 00:09:11,730 --> 00:09:14,449 Suze: See that's a question that I have answered in the past. 178 00:09:14,450 --> 00:09:15,660 Suze: You know the reason KT? 179 00:09:17,140 --> 00:09:20,449 KT: I think because it doesn't start accruing interest until after 180 00:09:20,450 --> 00:09:21,270 KT: a certain amount. 181 00:09:21,880 --> 00:09:25,360 Suze: So remember everybody 182 00:09:25,740 --> 00:09:29,859 Suze: Good try KT. Go go KT, go go KT. Oh, 183 00:09:29,860 --> 00:09:31,100 Suze: I have your quizzie honey. 184 00:09:31,110 --> 00:09:32,900 KT: Right here. Somebody 185 00:09:32,900 --> 00:09:35,319 Suze: by the name of Lisa wrote in and said, this 186 00:09:35,320 --> 00:09:38,059 Suze: is a quizzie for KT. And I said I'll ask 187 00:09:38,059 --> 00:09:39,070 Suze: her. All 188 00:09:39,070 --> 00:09:39,960 Suze: right. Anyway, 189 00:09:40,840 --> 00:09:42,359 Suze: everybody remember 190 00:09:42,940 --> 00:09:43,360 Suze: that 191 00:09:43,740 --> 00:09:45,450 Suze: in the very first year 192 00:09:45,940 --> 00:09:48,599 Suze: that you put money into an I bond, you cannot 193 00:09:48,600 --> 00:09:50,160 Suze: touch that money at all. 194 00:09:50,540 --> 00:09:54,660 Suze: But really years two through five, if you do take 195 00:09:54,670 --> 00:09:56,750 Suze: any amount out, you redeem it 196 00:09:57,140 --> 00:10:01,250 Suze: Any amount. It's a three month interest penalty. 197 00:10:01,640 --> 00:10:04,550 Suze: So when you look at your statements 198 00:10:04,940 --> 00:10:10,700 Suze: anywhere within the first five years of you owning an 199 00:10:10,710 --> 00:10:14,260 Suze: I bond, they automatically assume 200 00:10:15,240 --> 00:10:18,910 Suze: that three month interest penalty will apply if you're going 201 00:10:18,910 --> 00:10:20,360 Suze: to withdraw money. 202 00:10:20,840 --> 00:10:23,949 Suze: So they don't want to tell you, you have this 203 00:10:23,950 --> 00:10:25,359 Suze: much money in there. 204 00:10:26,140 --> 00:10:29,180 Suze: But if you withdraw it, you have less because of 205 00:10:29,179 --> 00:10:30,060 Suze: that penalty. 206 00:10:30,440 --> 00:10:35,390 Suze: So they automatically apply that three month interest penalty when 207 00:10:35,390 --> 00:10:38,560 Suze: you are looking at your statements, however, 208 00:10:38,940 --> 00:10:43,450 Suze: you still have all of the interest in there, making 209 00:10:43,460 --> 00:10:48,089 Suze: interest the next six months. Just know that it's compounding 210 00:10:48,090 --> 00:10:50,880 Suze: the way that it should, but they're showing it with 211 00:10:50,880 --> 00:10:53,360 Suze: the interest penalty. Let me just give you an example. 212 00:10:54,040 --> 00:10:57,550 Suze: You put in $10,000 which this person and many did 213 00:10:57,559 --> 00:10:58,449 Suze: last year 214 00:10:58,840 --> 00:11:05,490 Suze: And got a 7.12% annualized yield. Now remember everybody, an 215 00:11:05,490 --> 00:11:09,150 Suze: annualized yield is what it would have paid you if 216 00:11:09,420 --> 00:11:12,340 Suze: you had that money in there for the whole year 217 00:11:12,350 --> 00:11:14,860 Suze: and that was the interest rate for the whole year. 218 00:11:15,340 --> 00:11:21,250 Suze: But series I bonds the interest rate changes every six months. 219 00:11:22,140 --> 00:11:28,460 Suze: So truthfully, you're only going to get half of that 7.12% 220 00:11:28,470 --> 00:11:35,760 Suze: or 3.56% actually on your money for six months. 221 00:11:36,240 --> 00:11:39,260 Suze: And then the interest rate changes. 222 00:11:40,040 --> 00:11:42,900 Suze: Now this person or these people are lucky because the 223 00:11:42,900 --> 00:11:46,930 Suze: interest rate change to 9.62%. So they're going to get 224 00:11:46,929 --> 00:11:49,059 Suze: a whole lot more but 225 00:11:49,740 --> 00:12:01,050 Suze: 3.56%, on $10,000 is $356 for six months. Since you're 226 00:12:01,050 --> 00:12:05,500 Suze: getting assessed a three-month interest penalty. If you were able 227 00:12:05,500 --> 00:12:07,050 Suze: to take the money out, 228 00:12:08,140 --> 00:12:11,179 Suze: That would be half of that $356, 229 00:12:11,190 --> 00:12:12,430 KT: which is which 230 00:12:12,429 --> 00:12:13,850 Suze: Is $178. 231 00:12:13,850 --> 00:12:17,910 KT: But remind them, it doesn't mean you lost that money. Yeah, 232 00:12:17,910 --> 00:12:19,170 KT: you didn't lose it, lose it. 233 00:12:19,170 --> 00:12:22,260 Suze: You still have $356 in there. 234 00:12:22,640 --> 00:12:31,849 Suze: So now all $10,356 will be earning 9.62% annualized. 235 00:12:32,540 --> 00:12:35,450 Suze: But again, that's only half of that. So it's about 236 00:12:35,940 --> 00:12:38,990 Suze: 4.81%. There you go. 237 00:12:38,990 --> 00:12:41,030 KT: At the end of the day, you're still making out 238 00:12:41,040 --> 00:12:41,510 KT: great 239 00:12:41,520 --> 00:12:42,469 Suze: lots of money. 240 00:12:42,470 --> 00:12:42,870 KT: But 241 00:12:43,610 --> 00:12:46,480 Suze: and I got news for you after five years, you'll 242 00:12:46,480 --> 00:12:49,260 Suze: see the actual amount that you have in there, 243 00:12:50,040 --> 00:12:51,770 Suze: You know? And I went through that by the way 244 00:12:51,780 --> 00:12:54,950 Suze: because remember I've been buying I bonds since 2001 and 245 00:12:54,960 --> 00:12:58,390 Suze: it was always like wait a minute. But anyway, that's 246 00:12:58,390 --> 00:12:59,250 Suze: how it works. 247 00:12:59,260 --> 00:13:03,560 KT: So this next question is in again a category for 248 00:13:03,559 --> 00:13:06,600 KT: that Good old debt called student loan. The one we 249 00:13:06,600 --> 00:13:07,350 KT: all hate 250 00:13:07,540 --> 00:13:08,890 KT: that is necessary. 251 00:13:08,890 --> 00:13:10,199 Suze: You shouldn't hate it. 252 00:13:10,210 --> 00:13:12,360 KT: Alright, we don't hate it. We just know that it 253 00:13:12,440 --> 00:13:16,140 KT: It is never forgiven but ready for the question. If 254 00:13:16,140 --> 00:13:21,059 KT: the government forgives $10,000 of student loan debt, will I 255 00:13:21,059 --> 00:13:22,380 KT: owe taxes on it? 256 00:13:22,380 --> 00:13:23,689 Suze: fabulous question? 257 00:13:23,690 --> 00:13:24,720 KT: Good question. 258 00:13:24,730 --> 00:13:26,360 Suze: Okay, student loan debt. 259 00:13:27,140 --> 00:13:32,130 Suze: The good news is if President Biden decides that he 260 00:13:32,130 --> 00:13:34,849 Suze: is going to forgive $10,000. 261 00:13:35,340 --> 00:13:40,580 Suze: Hopefully across the board of student loan debt, that student 262 00:13:40,580 --> 00:13:45,380 Suze: loan debt will not be taxable. Now, KT, the reason 263 00:13:45,390 --> 00:13:50,450 Suze: that people are asking that question, fabulous question is because 264 00:13:50,460 --> 00:13:52,950 Suze: if you have debt that was forgiven 265 00:13:53,840 --> 00:13:57,719 Suze: student loan debt, any kind of debt that's forgiven except 266 00:13:57,720 --> 00:14:00,559 Suze: public student loan forgiveness debt. All right. 267 00:14:01,240 --> 00:14:04,880 Suze: You then because that debt was forgiven, you owe taxes 268 00:14:04,890 --> 00:14:06,060 Suze: on that debt 269 00:14:07,040 --> 00:14:11,520 Suze: And that's just the law, but a fabulous thing. And 270 00:14:11,520 --> 00:14:13,730 Suze: I want all of you. In fact, I should have 271 00:14:13,730 --> 00:14:18,000 Suze: done a Suzy School on this one in 2021. But anyway, 272 00:14:18,030 --> 00:14:20,450 Suze: there was in 2021 273 00:14:21,140 --> 00:14:24,650 Suze: American Rescue Plan act that was passed 274 00:14:25,040 --> 00:14:27,810 Suze: and that was the act with the stimulus and all 275 00:14:27,810 --> 00:14:31,360 Suze: of those things. All right. But in that act, KT, 276 00:14:32,140 --> 00:14:37,190 Suze: They said that student loans that are forgiven through the 277 00:14:37,190 --> 00:14:39,060 Suze: year of 2025, 278 00:14:39,840 --> 00:14:43,930 Suze: you would not owe taxes on. Now, the reason that's important. 279 00:14:43,930 --> 00:14:47,760 Suze: Everybody for those of you who are an income based 280 00:14:48,140 --> 00:14:53,260 Suze: repayment programs for your student loans or your children are 281 00:14:54,040 --> 00:14:56,050 Suze: Prior to 2021 282 00:14:56,640 --> 00:14:58,860 Suze: with this act having been signed, 283 00:14:59,440 --> 00:15:01,560 Suze: let's say you had 284 00:15:01,940 --> 00:15:04,490 Suze: A debt at the end of 20 or 30 years 285 00:15:04,490 --> 00:15:08,250 Suze: that you owed still on the student loan of possibly 286 00:15:08,250 --> 00:15:09,950 Suze: $100,000 or, so 287 00:15:11,340 --> 00:15:13,470 Suze: the debt would have been forgiven. But you would have 288 00:15:13,470 --> 00:15:17,320 Suze: owed income tax on it. And that's why over all 289 00:15:17,320 --> 00:15:20,480 Suze: the years I've been saying, be very careful if you 290 00:15:20,480 --> 00:15:25,150 Suze: have income based repayment programs pay as you go programs 291 00:15:25,150 --> 00:15:28,950 Suze: for student loans because in the end they get you. 292 00:15:29,440 --> 00:15:31,979 Suze: So if you have one of those kind of loans 293 00:15:31,990 --> 00:15:35,460 Suze: between now and 2025, 294 00:15:36,440 --> 00:15:38,859 Suze: if you're out of it, if they forgive it 295 00:15:39,940 --> 00:15:42,050 Suze: you do not owe taxes on it. 296 00:15:42,060 --> 00:15:47,010 KT: So Suze. Next question is this: can you explain why 297 00:15:47,010 --> 00:15:50,410 KT: we should open a Roth four oh one K. Rather 298 00:15:50,410 --> 00:15:53,790 KT: than a traditional four oh one K? My C. P. 299 00:15:53,790 --> 00:15:59,800 KT: A recommends we open a traditional because we make $350,000 300 00:15:59,800 --> 00:16:00,460 KT: a year. 301 00:16:02,540 --> 00:16:03,460 Suze: No I can't. 302 00:16:04,380 --> 00:16:05,760 Suze: How many times I've explained that. 303 00:16:06,540 --> 00:16:09,700 Suze: Look at your little face. Alright, just joking with you, KT. 304 00:16:09,700 --> 00:16:11,620 KT: I was going to say oh man if she doesn't 305 00:16:11,630 --> 00:16:14,440 KT: know the answer and asks me to explain that we're 306 00:16:14,440 --> 00:16:15,380 KT: all in trouble. 307 00:16:15,390 --> 00:16:18,960 Suze: All right, I'm going to try one more time. 308 00:16:20,140 --> 00:16:21,850 Suze: Here's the thing. Everybody, 309 00:16:23,340 --> 00:16:27,210 Suze: you make too much money to qualify for a contributory 310 00:16:27,220 --> 00:16:28,460 Suze: Roth IRA 311 00:16:29,340 --> 00:16:34,489 Suze: But there are no income limitations when it comes to 312 00:16:34,490 --> 00:16:36,960 Suze: a Roth 401K. 313 00:16:37,840 --> 00:16:40,660 Suze: You can make $10 million dollars a year 314 00:16:41,040 --> 00:16:46,650 Suze: And still qualify in most cases for a Roth 401k. 315 00:16:47,740 --> 00:16:51,550 Suze: So if you could take advantage of it, you could 316 00:16:51,550 --> 00:16:54,570 Suze: put a lot of money into it. 317 00:16:55,700 --> 00:16:59,490 Suze: That money then does what? It grows tax free 318 00:16:59,940 --> 00:17:05,400 Suze: Year after year, after year now. It well I don't 319 00:17:05,400 --> 00:17:09,080 Suze: know your age but now 10 years or 40 years 320 00:17:09,080 --> 00:17:13,020 Suze: from now or however long you will probably have millions 321 00:17:13,030 --> 00:17:14,159 Suze: of dollars 322 00:17:14,740 --> 00:17:19,040 Suze: in that Roth four oh one K. That you could access. 323 00:17:19,050 --> 00:17:21,850 Suze: Absolutely tax free. 324 00:17:22,540 --> 00:17:27,000 Suze: Your children or your beneficiaries. If you die we'll get 325 00:17:27,010 --> 00:17:31,060 Suze: the money they'll be able to take it out tax free. 326 00:17:32,240 --> 00:17:36,260 Suze: So why wouldn't you take advantage of that? 327 00:17:37,140 --> 00:17:40,700 Suze: Your C. P. A. Is looking at oh you could 328 00:17:40,700 --> 00:17:44,340 Suze: save a few $1000 on your taxes right now. If 329 00:17:44,340 --> 00:17:47,270 Suze: you did a traditional four oh one K. 330 00:17:47,840 --> 00:17:53,659 Suze: Because traditional Iras or 401 Ks are funded with what? 331 00:17:53,670 --> 00:17:56,960 Suze: Money you have never paid taxes on. 332 00:17:57,640 --> 00:18:00,920 Suze: So if you're not paying taxes on it so you're 333 00:18:00,920 --> 00:18:05,669 Suze: saving 2,000 3000 maybe $5,000 a year. 334 00:18:06,840 --> 00:18:10,060 Suze: The problem is what do you do with that $5,000 335 00:18:10,070 --> 00:18:14,050 Suze: or that $3,000? Do you take that money? And do 336 00:18:14,050 --> 00:18:15,270 Suze: you invest it? 337 00:18:15,840 --> 00:18:19,090 Suze: No you don't. You take that money and what do 338 00:18:19,090 --> 00:18:21,540 Suze: you do with it? You go out to eat, you 339 00:18:21,540 --> 00:18:24,770 Suze: spend it it just goes down the financial river 340 00:18:26,040 --> 00:18:26,670 Suze: so 341 00:18:27,940 --> 00:18:31,100 Suze: it doesn't really work for you. It's not like that 342 00:18:31,100 --> 00:18:33,360 Suze: money then it's going to be invested and it's going 343 00:18:33,359 --> 00:18:34,450 Suze: to grow as well. 344 00:18:35,140 --> 00:18:38,170 Suze: So pay the taxes now 345 00:18:39,240 --> 00:18:41,830 Suze: make it so that you never pay taxes on that 346 00:18:41,830 --> 00:18:43,170 Suze: money again 347 00:18:44,140 --> 00:18:49,030 Suze: because if you have a million dollars or more which 348 00:18:49,030 --> 00:18:54,270 Suze: many of you do in a traditional IRA or a 349 00:18:54,270 --> 00:18:56,170 Suze: traditional four oh one K. 350 00:18:56,740 --> 00:18:59,369 Suze: You are going to not only have to pay taxes 351 00:18:59,369 --> 00:19:02,820 Suze: on that money as you're taking it out in whatever 352 00:19:02,820 --> 00:19:06,460 Suze: tax brackets happened to be there later on in life. 353 00:19:07,640 --> 00:19:11,690 Suze: And if you die when it goes to your beneficiaries 354 00:19:11,700 --> 00:19:14,540 Suze: and let's say your beneficiaries are in a really high 355 00:19:14,540 --> 00:19:18,909 Suze: tax bracket, they're gonna have to pay ordinary income tax 356 00:19:18,920 --> 00:19:19,360 Suze: on it. 357 00:19:19,840 --> 00:19:22,660 Suze: It's just not worth it. 358 00:19:23,040 --> 00:19:25,840 Suze: You can do it and you can listen to your C. P. A. 359 00:19:25,850 --> 00:19:27,660 Suze: And I promise you 360 00:19:28,040 --> 00:19:30,350 Suze: years from now when you see 361 00:19:30,940 --> 00:19:34,860 Suze: what you've gotten yourself into oh you're gonna wish you 362 00:19:34,859 --> 00:19:37,060 Suze: had listened to me. And one last thing 363 00:19:37,540 --> 00:19:41,669 Suze: money that you withdraw from a traditional Ira or a 364 00:19:41,680 --> 00:19:46,109 Suze: traditional four oh one K. 403 B. T. S. P. 365 00:19:46,109 --> 00:19:46,859 Suze: Whatever 366 00:19:47,340 --> 00:19:51,260 Suze: that is money that counts towards income to calculate if 367 00:19:51,260 --> 00:19:53,910 Suze: you're going to pay tax on your Social Security or 368 00:19:53,910 --> 00:19:54,270 Suze: not 369 00:19:54,840 --> 00:19:58,050 Suze: that is money that is used to calculate what your 370 00:19:58,050 --> 00:20:02,480 Suze: Medicare B premiums are going to be and they will 371 00:20:02,480 --> 00:20:03,859 Suze: be higher because of that 372 00:20:04,340 --> 00:20:08,170 Suze: money that's withdrawn from a Roth does not count towards 373 00:20:08,170 --> 00:20:10,270 Suze: Social Security or 374 00:20:10,940 --> 00:20:15,170 Suze: Medicare B premiums. Okay just say in'. 375 00:20:15,540 --> 00:20:20,170 KT: Suze, ready next question. My spouse died last year and 376 00:20:20,170 --> 00:20:22,670 KT: I just sold our home which we lived in for 377 00:20:22,670 --> 00:20:24,770 KT: the past 36 years. 378 00:20:25,140 --> 00:20:25,290 KT: I 379 00:20:25,290 --> 00:20:27,710 Suze: bet we have a lot of gains in that house. 380 00:20:27,710 --> 00:20:28,160 Suze: Well 381 00:20:28,170 --> 00:20:30,740 KT: It says I'm in my late 80s and I need 382 00:20:30,750 --> 00:20:35,680 KT: every penny after taxes I was told I can only 383 00:20:35,680 --> 00:20:36,360 KT: deduct 384 00:20:36,740 --> 00:20:42,780 KT: 250,000 from the sale proceeds since my husband died. Is 385 00:20:42,780 --> 00:20:44,280 KT: this true, Suze? 386 00:20:44,440 --> 00:20:45,710 Suze: No it is not 387 00:20:45,710 --> 00:20:47,200 Suze: true. That 388 00:20:47,200 --> 00:20:49,550 Suze: should have been your quizzie what would you have said? 389 00:20:50,140 --> 00:20:51,060 KT: Ask 390 00:20:51,060 --> 00:20:52,060 KT: Suze. 391 00:20:53,340 --> 00:20:55,949 Suze: Alright. I have to tell you, I'm really aggravated all 392 00:20:55,950 --> 00:20:56,669 Suze: of a sudden. 393 00:20:57,040 --> 00:20:57,770 Suze: I'm sorry I'm 394 00:20:57,770 --> 00:20:59,780 KT: picking questions that are making her. 395 00:21:00,470 --> 00:21:03,310 Suze: A Lot of people have written how many people wrote 396 00:21:03,310 --> 00:21:04,710 Suze: in this one question? 397 00:21:04,710 --> 00:21:09,960 KT: Probably about seven around this category about spouse dying proceeds. 398 00:21:09,970 --> 00:21:12,720 KT: What you get what you can keep after you sell 399 00:21:12,720 --> 00:21:12,910 KT: your 400 00:21:12,910 --> 00:21:16,170 Suze: home? Here's what really upsets me 401 00:21:16,640 --> 00:21:21,000 Suze: is that I've just had two questions from you K. T. 402 00:21:21,010 --> 00:21:23,570 Suze: One where your C. P. A. Says it's better to 403 00:21:23,570 --> 00:21:29,260 Suze: do a traditional than a Roth. Next question. This person 404 00:21:29,270 --> 00:21:32,750 Suze: has been told by somebody who would that person be 405 00:21:32,760 --> 00:21:36,070 Suze: probably their C. P. A. That they can't do it. 406 00:21:36,070 --> 00:21:37,740 Suze: I don't know if it is or it isn't. But 407 00:21:37,740 --> 00:21:38,270 Suze: it's like 408 00:21:38,440 --> 00:21:41,879 Suze: people be careful who you are getting advice from. That's 409 00:21:41,890 --> 00:21:45,510 Suze: all I want to say. Because if you believe that 410 00:21:45,510 --> 00:21:49,070 Suze: person in this situation, you would have lost out on 411 00:21:49,070 --> 00:21:50,350 Suze: a lot of money 412 00:21:50,840 --> 00:21:52,669 Suze: when you sell a home. 413 00:21:53,160 --> 00:21:59,970 Suze: Every single one of us gets what's called a $250,000 exemption. 414 00:22:00,000 --> 00:22:03,560 Suze: As long as it was your primary residency 415 00:22:04,240 --> 00:22:07,100 Suze: and you lived in it for two out of the 416 00:22:07,100 --> 00:22:11,770 Suze: past five years as your primary residency. 417 00:22:12,640 --> 00:22:16,510 Suze: So if you own this house with your spouse or 418 00:22:16,510 --> 00:22:23,169 Suze: with anybody for that matter, you each get a $250,000 exemption. 419 00:22:23,540 --> 00:22:25,459 Suze: So in this case, KT, 420 00:22:25,940 --> 00:22:28,550 Suze: this woman, if her husband was still alive, 421 00:22:29,040 --> 00:22:31,900 Suze: They sold the house, they would have been able to 422 00:22:31,900 --> 00:22:37,420 Suze: take off $500,000 from the gain that they made on 423 00:22:37,420 --> 00:22:39,170 Suze: this house. Okay. 424 00:22:39,840 --> 00:22:41,850 Suze: However her husband 425 00:22:42,240 --> 00:22:46,889 Suze: died a year ago and somebody has told her she 426 00:22:46,890 --> 00:22:51,770 Suze: doesn't qualify for $500,000 now because she owns it by herself. 427 00:22:52,140 --> 00:22:53,270 Suze: Wrong. 428 00:22:53,640 --> 00:22:55,770 KT: Oh I didn't know that. 429 00:22:56,140 --> 00:22:59,460 Suze: And that is wrong because if your spouse 430 00:23:00,140 --> 00:23:03,260 Suze: died within the last two years 431 00:23:03,740 --> 00:23:08,850 Suze: and you said your spouse died a year ago. Last year, 432 00:23:08,859 --> 00:23:09,660 KT: one year 433 00:23:09,660 --> 00:23:10,060 KT: ago. 434 00:23:10,440 --> 00:23:14,280 Suze: So if it's within two years of death it was 435 00:23:14,280 --> 00:23:16,260 Suze: your primary residency. 436 00:23:16,640 --> 00:23:19,050 Suze: You lived in it for two out of the past 437 00:23:19,050 --> 00:23:23,169 Suze: five years at least as your primary residency, you've lived 438 00:23:23,170 --> 00:23:24,350 Suze: in it forever. 439 00:23:24,840 --> 00:23:26,459 Suze: Right? 30 some odd years 440 00:23:26,840 --> 00:23:31,830 Suze: You get to claim not only a $250,000 exemption for you, 441 00:23:31,859 --> 00:23:37,590 Suze: but you also get to claim a $250,000 exemption for 442 00:23:37,600 --> 00:23:39,710 Suze: your deceased spouse. 443 00:23:39,869 --> 00:23:43,060 KT: What other deductions can she make on the sale of 444 00:23:43,070 --> 00:23:43,390 KT: the house? 445 00:23:43,390 --> 00:23:45,669 Suze: Well obviously she can take off 446 00:23:45,740 --> 00:23:51,450 Suze: any amount of money, any amount of improvements that you made? 447 00:23:51,460 --> 00:23:55,430 Suze: And obviously over all of those years did you put 448 00:23:55,430 --> 00:23:58,450 Suze: on a new roof? Did you you know, adding a 449 00:23:58,450 --> 00:24:01,940 Suze: little addition? Did you renovate the bathrooms? What did you 450 00:24:01,940 --> 00:24:05,859 Suze: do where you added money to that house? 451 00:24:06,240 --> 00:24:09,810 Suze: Right? So hopefully you can go through the house and 452 00:24:09,810 --> 00:24:12,650 Suze: look at everything and write all of that down. You 453 00:24:12,660 --> 00:24:17,500 Suze: also get to deduct whatever sales commission you paid to 454 00:24:17,500 --> 00:24:22,540 Suze: sell the house. And really KT that and the $500,000 455 00:24:22,540 --> 00:24:26,720 Suze: exemption is what she gets to take off. Next question, girlfriend. 456 00:24:26,720 --> 00:24:30,010 KT: Okay. And keeping with real estate, lots of real estate questions. 457 00:24:30,010 --> 00:24:32,740 KT: I think people are are taking advantage of this crazy 458 00:24:32,740 --> 00:24:33,350 KT: real estate 459 00:24:33,350 --> 00:24:33,859 Suze: market. 460 00:24:34,140 --> 00:24:36,970 KT: So Suze. My mom told me that her house she 461 00:24:36,970 --> 00:24:40,690 KT: owns in J. T. W. R. O. S with my brother. 462 00:24:40,740 --> 00:24:46,070 KT: Joint tenancy with right of survivorship was left to me. 463 00:24:46,080 --> 00:24:48,659 KT: My sister and brother in her will. 464 00:24:49,140 --> 00:24:52,140 KT: My sister and I are estranged from my brother, which 465 00:24:52,140 --> 00:24:53,420 KT: means they do not 466 00:24:53,430 --> 00:24:53,970 KT: talk to 467 00:24:53,970 --> 00:24:57,959 KT: him. But mom says there's nothing to worry about. So 468 00:24:57,960 --> 00:25:00,140 KT: then why am I worried Suze? 469 00:25:00,150 --> 00:25:06,280 Suze: Because this person should seriously be worried. Joint tennancy with 470 00:25:06,280 --> 00:25:08,270 Suze: right of survivorship means 471 00:25:08,850 --> 00:25:11,960 Suze: that she now owns it with her son. 472 00:25:12,710 --> 00:25:16,560 Suze: If she dies, title passes immediately 473 00:25:17,340 --> 00:25:21,410 Suze: To her son. That is on that joint tenancy with 474 00:25:21,410 --> 00:25:25,170 Suze: right of survivorship because his title 475 00:25:25,640 --> 00:25:28,360 Suze: survives her passing. 476 00:25:28,940 --> 00:25:33,150 Suze: Did that make sense? KT? Right? That's how we own property. 477 00:25:33,160 --> 00:25:34,960 Suze: We own it within trust, 478 00:25:35,340 --> 00:25:39,360 Suze: but that's still the title to our properties. Okay, 479 00:25:39,940 --> 00:25:45,409 Suze: the problem is when you own property in joint tenancy 480 00:25:45,410 --> 00:25:51,740 Suze: with right of survivorship, it overrides the wishes of any 481 00:25:51,740 --> 00:25:54,850 Suze: will or trust. 482 00:25:55,240 --> 00:25:58,859 Suze: So, upon this person's mother's death. 483 00:25:59,440 --> 00:26:01,360 Suze: It will immediately go 484 00:26:01,740 --> 00:26:04,860 Suze: to her son. Their brother, 485 00:26:05,440 --> 00:26:09,669 Suze: he will own it totally in his name alone. 486 00:26:10,440 --> 00:26:12,659 Suze: There's no way for them to contest it. 487 00:26:13,040 --> 00:26:15,730 Suze: That's how it's going to be. And since they are 488 00:26:15,740 --> 00:26:23,490 Suze: estranged from him, good luck getting him to do anything 489 00:26:23,500 --> 00:26:25,120 Suze: fairly about it. 490 00:26:25,310 --> 00:26:28,480 KT: So what should they do? Could they have mom change it now? 491 00:26:28,480 --> 00:26:32,060 Suze: They need to have mama listen to this 492 00:26:32,340 --> 00:26:33,169 Suze: podcast 493 00:26:33,640 --> 00:26:35,560 Suze: and listen to me saying mama 494 00:26:36,040 --> 00:26:40,820 Suze: if you really love your three children totally the same. 495 00:26:40,960 --> 00:26:44,790 Suze: And if you really are wishing that all three of 496 00:26:44,790 --> 00:26:48,500 Suze: them get this house and then divide it and sell 497 00:26:48,500 --> 00:26:50,260 Suze: it or do whatever with it 498 00:26:51,140 --> 00:26:54,830 Suze: then you have got to take it out of the 499 00:26:54,830 --> 00:26:58,720 Suze: title where you own it as joint tenancy with right 500 00:26:58,720 --> 00:27:01,460 Suze: of survivorship to one son. 501 00:27:02,040 --> 00:27:05,060 Suze: What you could do is put the other two on 502 00:27:05,060 --> 00:27:09,820 Suze: there if you want. But better yet really is you 503 00:27:09,820 --> 00:27:12,270 Suze: should own it in a living revocable trust 504 00:27:12,740 --> 00:27:14,450 Suze: just held in your name 505 00:27:14,840 --> 00:27:18,860 Suze: For your benefit while you're alive and your three kids 506 00:27:19,340 --> 00:27:21,050 Suze: after you have died. 507 00:27:21,940 --> 00:27:25,270 Suze: The one danger that you have by owning it with 508 00:27:25,270 --> 00:27:26,170 Suze: your son 509 00:27:26,540 --> 00:27:30,119 Suze: is if your son is in a serious car accident, 510 00:27:30,240 --> 00:27:32,060 Suze: it was his fault 511 00:27:32,440 --> 00:27:35,050 Suze: he either killed somebody 512 00:27:35,540 --> 00:27:40,419 Suze: or seriously injured them. Don't think that an attorney isn't 513 00:27:40,420 --> 00:27:42,889 Suze: going to find out that he owns a piece of 514 00:27:42,890 --> 00:27:45,859 Suze: property and come after your house 515 00:27:46,400 --> 00:27:50,080 Suze: in a lawsuit. So one last thing, KT I know 516 00:27:50,080 --> 00:27:51,360 Suze: you want me to be quick here. 517 00:27:52,240 --> 00:27:56,900 Suze: Do not own your home with your kids names on it. 518 00:27:56,910 --> 00:28:01,200 Suze: Everybody there are more ramifications than you have any idea 519 00:28:01,210 --> 00:28:04,260 Suze: including step up in basis and all of these things 520 00:28:04,270 --> 00:28:07,359 Suze: own your home in a living revocable trust. 521 00:28:08,540 --> 00:28:10,690 Suze: And that is the best way to do it. It's 522 00:28:10,950 --> 00:28:13,780 Suze: for your benefit while you're alive and getting your kids 523 00:28:13,780 --> 00:28:14,359 Suze: benefit 524 00:28:14,940 --> 00:28:16,260 Suze: after you have passed. 525 00:28:16,640 --> 00:28:18,719 Suze: The best way to do it is to go to 526 00:28:18,720 --> 00:28:22,660 Suze: Suze Orman dot com slash offer and pick up our 527 00:28:22,660 --> 00:28:24,859 Suze: must have documents. Seriously. 528 00:28:25,240 --> 00:28:27,430 Suze: It's what you all should be doing. Okay go on. 529 00:28:27,440 --> 00:28:32,230 KT: Okay next question is simple. Our Treasuries insured up to 530 00:28:32,230 --> 00:28:36,159 KT: 250,000 like banks and credit unions are? 531 00:28:37,040 --> 00:28:38,660 Suze: That's cute. 532 00:28:39,250 --> 00:28:44,340 Suze: No they're not insured up to $250,000. Like banks and 533 00:28:44,340 --> 00:28:45,760 Suze: credit unions are 534 00:28:46,340 --> 00:28:47,960 Suze: but they are backed 535 00:28:48,740 --> 00:28:52,460 Suze: by the full faith and authority of the United States government. 536 00:28:53,240 --> 00:28:56,760 Suze: So you could put in $10 million dollars into a 537 00:28:56,760 --> 00:28:57,560 Suze: treasury 538 00:28:58,040 --> 00:29:02,140 Suze: and be absolutely guaranteed to get that money back no 539 00:29:02,140 --> 00:29:02,959 Suze: matter what. 540 00:29:03,740 --> 00:29:05,270 Suze: So Treasuries 541 00:29:06,140 --> 00:29:09,350 Suze: are guaranteed by the full faith 542 00:29:09,740 --> 00:29:14,290 Suze: and authority of the United States government. And money that 543 00:29:14,290 --> 00:29:16,850 Suze: you put in a bank or credit union 544 00:29:17,440 --> 00:29:20,930 Suze: are backed by F. D. I. C. Or N. C. U. A. 545 00:29:20,930 --> 00:29:25,650 Suze: For credit unions up to $250,000. But I did do 546 00:29:25,650 --> 00:29:28,920 Suze: a podcast on this where it showed you how you 547 00:29:28,920 --> 00:29:33,520 Suze: could get far more than $250,000 with F. D. I. C. 548 00:29:33,520 --> 00:29:35,350 Suze: Or N. C. U. A. 549 00:29:35,640 --> 00:29:37,860 Suze: Quizzie time KT, 550 00:29:38,240 --> 00:29:40,070 Suze: are you ready, KT for your quizzie? 551 00:29:40,190 --> 00:29:42,140 KT: I'm always ready for that quizzie Suze 552 00:29:42,180 --> 00:29:43,270 Suze: All right. Now, KT, 553 00:29:44,840 --> 00:29:47,740 Suze: I just want you to think before you answer right? 554 00:29:47,740 --> 00:29:52,250 Suze: Because I kind of answered it like 15 minutes ago. Okay, 555 00:29:52,260 --> 00:29:54,170 Suze: now this is from Lisa 556 00:29:54,540 --> 00:29:57,560 Suze: and Lisa says hi KT and Suze, 557 00:29:57,560 --> 00:29:57,820 KT: is it a Lisa we know? 558 00:29:58,900 --> 00:30:00,360 Suze: no it is not. 559 00:30:00,360 --> 00:30:01,940 KT: We have lots of "Lisa" friends. 560 00:30:01,950 --> 00:30:04,350 Suze: I listened to your podcast religiously. 561 00:30:05,040 --> 00:30:10,620 Suze: Now she listens to it every single time we have one. Alright, KT, 562 00:30:10,630 --> 00:30:13,260 Suze: but she's asking a question 563 00:30:13,740 --> 00:30:16,150 Suze: that I've answered so many times. It's not even funny. 564 00:30:16,150 --> 00:30:19,340 Suze: So this is a topic that's not easy to get. 565 00:30:19,710 --> 00:30:22,070 KT: Let's give it a shot together Lisa 566 00:30:22,400 --> 00:30:27,270 Suze: and she loves taking action on my advice. Alright, I've 567 00:30:27,270 --> 00:30:30,360 Suze: got a good quizzie for KT and her dreaded Roth. 568 00:30:30,940 --> 00:30:34,210 Suze: I'm 35 years old and I'm proud to say that 569 00:30:34,220 --> 00:30:37,310 Suze: as of this year I am maxing my Roth four 570 00:30:37,310 --> 00:30:40,970 Suze: oh one K. My question will there come a point 571 00:30:40,970 --> 00:30:45,080 Suze: when I'm older, say in my fifties or sixties when 572 00:30:45,080 --> 00:30:48,460 Suze: it would make more sense to switch my contributions 573 00:30:49,140 --> 00:30:53,540 Suze: To a traditional 401K. If I don't anticipate going to 574 00:30:53,540 --> 00:30:54,960 Suze: a higher tax bracket 575 00:30:55,440 --> 00:30:58,610 Suze: or should I always stay in a Roth? Now KT, 576 00:30:58,610 --> 00:30:59,550 Suze: Don't you don't answer yet, 577 00:31:00,140 --> 00:31:01,670 Suze: let everybody think about it. 578 00:31:02,640 --> 00:31:05,260 Suze: I want you to think about it because not only 579 00:31:05,270 --> 00:31:09,270 Suze: when you answer, I'm going to ask you why 580 00:31:10,140 --> 00:31:12,800 Suze: you answered that way. So I want you to just 581 00:31:12,800 --> 00:31:15,380 Suze: take a second. You tell me when you're ready. 582 00:31:15,390 --> 00:31:16,640 KT: I think I'm ready. 583 00:31:16,650 --> 00:31:20,210 Suze: Alright, I am rooting for you girl. I'm rooting for you. 584 00:31:20,210 --> 00:31:21,310 Suze: What's the answer? 585 00:31:21,320 --> 00:31:25,890 KT: Definitely keep your Roth. You don't need a traditional. Why 586 00:31:25,890 --> 00:31:29,210 KT: not let all that tax free money compound and enjoy 587 00:31:29,210 --> 00:31:29,760 KT: it 588 00:31:29,840 --> 00:31:30,620 KT: in your later years 589 00:31:30,760 --> 00:31:33,170 Suze: So your answer to this question is 590 00:31:33,640 --> 00:31:38,640 Suze: right, should she always stay with a Roth? Ding ding 591 00:31:38,640 --> 00:31:39,000 Suze: ding ding 592 00:31:39,000 --> 00:31:41,260 KT: ding ding ding ding ding ding, baby. 593 00:31:41,260 --> 00:31:42,710 Suze: And again. Why? 594 00:31:42,720 --> 00:31:44,860 KT: Because it's tax free 595 00:31:45,540 --> 00:31:46,560 Suze: and it grows 596 00:31:46,560 --> 00:31:48,560 KT: and it compounds and grows 597 00:31:48,940 --> 00:31:51,700 KT: until you're ready to use it and want it. 598 00:31:51,700 --> 00:31:53,130 Suze: And how does it grow? 599 00:31:53,150 --> 00:31:54,970 KT: Tax free, Suze. 600 00:31:54,980 --> 00:31:57,950 Suze: And what happens upon their death? And it goes to 601 00:31:57,950 --> 00:31:59,010 Suze: their beneficiary is 602 00:31:59,010 --> 00:32:02,300 KT: still tax free for whoever you want to leave it to. 603 00:32:02,310 --> 00:32:03,360 Suze: Alright, So 604 00:32:03,740 --> 00:32:04,810 Suze: the answer, 605 00:32:04,810 --> 00:32:07,700 KT: It's the best way to go. Go keep the raw, 606 00:32:07,710 --> 00:32:09,660 KT: enjoy it. And 607 00:32:09,670 --> 00:32:11,140 Suze: and no matter what? 608 00:32:11,150 --> 00:32:12,760 KT: No matter what, just keep it. 609 00:32:12,770 --> 00:32:16,100 Suze: There you go now. Did you get that? How does 610 00:32:16,100 --> 00:32:16,780 Suze: that feel? 611 00:32:16,780 --> 00:32:21,130 KT: Feels good Lisa You can do this. You know the answer. 612 00:32:21,140 --> 00:32:22,480 KT: Just keep the Roth. 613 00:32:22,490 --> 00:32:24,670 Suze: All right. So on that note, KT, we better 614 00:32:25,140 --> 00:32:27,530 Suze: sign off. That's a good note. 615 00:32:27,540 --> 00:32:29,760 KT: If you keep that Roth, you're going to be safe. 616 00:32:29,760 --> 00:32:32,160 KT: Strong and secure 617 00:32:32,540 --> 00:32:39,620 KT: Till next Sunday till this Sunday. Suze's birthday send in 618 00:32:39,620 --> 00:32:42,560 KT: the birthday wishes. I'm going to read a few of them. 619 00:32:42,560 --> 00:32:44,910 KT: I'm going to join her and wish I'm going to 620 00:32:44,910 --> 00:32:47,950 KT: join her all day for that celebration. But we're going 621 00:32:47,950 --> 00:32:50,460 KT: to start the morning with some of your wishes. 622 00:32:50,470 --> 00:32:51,260 Suze: All right. 623 00:32:51,440 --> 00:32:54,700 Suze: And so until then there's only one thing that we 624 00:32:54,700 --> 00:32:55,270 Suze: wish 625 00:32:55,640 --> 00:32:58,450 Suze: for all of you and that is for you to 626 00:32:58,450 --> 00:32:59,390 Suze: be safe, 627 00:32:59,400 --> 00:33:00,390 KT: Strong 628 00:33:00,400 --> 00:33:03,450 Suze: and secure. See you then. 629 00:33:03,450 --> 00:33:04,720 KT: Bye bye.