1 00:00:33,050 --> 00:00:39,100 Suze: December 15th 2022 welcome everybody to the Women and Money 2 00:00:39,100 --> 00:00:40,990 Suze: Podcast as well as 3 00:00:40,990 --> 00:00:42,540 KT: everyone smart enough to listen. 4 00:00:42,920 --> 00:00:45,879 Suze: She got her que. That was good. I didn't know she 5 00:00:45,880 --> 00:00:46,920 Suze: was going to pick that up or not. 6 00:00:46,920 --> 00:00:47,870 KT: I'm on it, I'm on it. 7 00:00:49,640 --> 00:00:55,170 Suze: This is the Ask KT and Suze Anything edition. So this 8 00:00:55,170 --> 00:00:59,440 Suze: morning was early, early this morning I walk into our 9 00:00:59,450 --> 00:01:00,350 Suze: closet 10 00:01:00,950 --> 00:01:04,350 Suze: and in our closet room we have little things set 11 00:01:04,350 --> 00:01:07,010 Suze: up or at least I do. And I look at 12 00:01:07,010 --> 00:01:11,430 Suze: it and I go, oh look how sweet, KT put 13 00:01:11,430 --> 00:01:14,600 Suze: a flower on my like little altar. I had like 14 00:01:14,600 --> 00:01:15,150 Suze: this little... 15 00:01:15,160 --> 00:01:19,310 KT: She has this little puja in her walk in closet on her side, 16 00:01:19,319 --> 00:01:22,250 KT: which has some of her favorite things in it. So 17 00:01:22,630 --> 00:01:24,550 KT: a while ago. 18 00:01:24,560 --> 00:01:25,630 Suze: So wait, wait, wait, wait. 19 00:01:25,640 --> 00:01:26,520 KT: So so 20 00:01:26,530 --> 00:01:30,250 Suze: then I see KT and I go KT, how sweet 21 00:01:30,250 --> 00:01:31,890 Suze: of you to put the flower, 22 00:01:31,900 --> 00:01:34,140 KT: Beautiful bright orange flower. 23 00:01:34,150 --> 00:01:37,790 Suze: And she looks at me like I am crazy and 24 00:01:37,790 --> 00:01:39,000 Suze: she says Suze, 25 00:01:39,015 --> 00:01:43,605 Suze: do you know when I put that flower there? And 26 00:01:43,605 --> 00:01:45,944 Suze: I went yesterday, today when? 27 00:01:45,955 --> 00:01:47,825 Suze: And I said, Thanksgiving. 28 00:01:47,835 --> 00:01:51,965 KT: So on Thanksgiving on her little puja to I put 29 00:01:51,965 --> 00:01:56,895 KT: a really beautiful bright orange chrysanthemum and they last for 30 00:01:56,895 --> 00:01:59,985 KT: quite a long time. And we have a little crystal 31 00:01:59,985 --> 00:02:01,965 KT: vase and it was in the vase with water and 32 00:02:01,965 --> 00:02:04,725 KT: the water was almost gone. And 33 00:02:04,900 --> 00:02:07,380 KT: and I looked at her like Suze that's been there 34 00:02:07,380 --> 00:02:11,119 KT: since Thanksgiving. But she did notice it today. So we're 35 00:02:11,120 --> 00:02:12,730 KT: working on it, everybody. 36 00:02:12,740 --> 00:02:16,750 Suze: But here's the moral to that story you set up 37 00:02:16,750 --> 00:02:19,850 Suze: this place or at least I set up this place 38 00:02:19,950 --> 00:02:24,260 Suze: that I look at that reminds me of many things 39 00:02:24,260 --> 00:02:26,110 Suze: that I love in my life and people who have 40 00:02:26,110 --> 00:02:30,910 Suze: been fabulous. And obviously I haven't even looked at it. 41 00:02:31,330 --> 00:02:34,660 Suze: I haven't even really looked at that, which I put 42 00:02:34,660 --> 00:02:40,040 Suze: there to remind me of really the great things in life. 43 00:02:40,050 --> 00:02:43,430 Suze: And what does that say about me? 44 00:02:46,850 --> 00:02:47,269 KT: You gotta open your eyes baby! 45 00:02:47,270 --> 00:02:50,329 Suze: Yea, I have to open my eyes... it's like, oh my God, So it taught me a 46 00:02:50,330 --> 00:02:51,910 Suze: good lesson. All right, 47 00:02:52,350 --> 00:02:57,919 Suze: MS Travis, it's almost over, December 15. You still have 48 00:02:57,930 --> 00:03:01,250 Suze: maybe a few hours left if you're listening this morning 49 00:03:01,260 --> 00:03:05,800 Suze: to open up your Ultimate Opportunity. Savings account with Alliant 50 00:03:05,800 --> 00:03:12,660 Suze: credit union and win a possible $10,000 to do. so 51 00:03:12,660 --> 00:03:14,370 Suze: you just go to what? 52 00:03:14,889 --> 00:03:18,220 Suze: My Alliant dot com. 53 00:03:18,389 --> 00:03:21,640 Suze: That's A L L I A N T dot com. 54 00:03:21,700 --> 00:03:27,120 Suze: Open up an account there and you're registered automatically for 55 00:03:27,130 --> 00:03:30,410 Suze: the Suze holiday sweepstakes where two of you will win 56 00:03:30,630 --> 00:03:36,000 Suze: $10,000 each. It's over after two day. Okay, KT. 57 00:03:36,010 --> 00:03:38,530 KT: Suze, we have a great lineup today. I have a 58 00:03:38,530 --> 00:03:42,560 KT: real variety. A big variety of questions. So I'm happy 59 00:03:42,560 --> 00:03:44,970 KT: about this podcast. Are we ready? 60 00:03:44,980 --> 00:03:45,510 Suze: No. 61 00:03:45,750 --> 00:03:49,260 KT: What what, what what did I do wrong? 62 00:03:50,280 --> 00:03:50,460 Suze: Oh! KT! 63 00:03:50,920 --> 00:03:53,280 KT: What did I do wrong? I said I'm ready. Are you ready? 64 00:03:53,290 --> 00:03:55,640 Suze: No, it had nothing to do with you. 65 00:03:55,640 --> 00:03:56,690 KT: Are you ready? 66 00:03:56,700 --> 00:03:59,350 Suze: Did you just see everybody? What just happened there? 67 00:03:59,350 --> 00:04:00,460 KT: I said I'm ready? 68 00:04:00,460 --> 00:04:02,650 Suze: No, you said what did I do wrong? 69 00:04:02,660 --> 00:04:03,320 KT: Yeah. 70 00:04:03,330 --> 00:04:05,380 Suze: Why do you feel that way or think that way? 71 00:04:05,560 --> 00:04:09,540 KT: I said, are we ready? Said no like that. No. 72 00:04:10,250 --> 00:04:12,070 KT: Okay, tell everybody... 73 00:04:12,080 --> 00:04:15,060 Suze: All right because I'm not quite ready to answer questions 74 00:04:15,070 --> 00:04:16,409 Suze: yet this morning. 75 00:04:16,410 --> 00:04:17,470 KT: She's not in the mood. 76 00:04:17,480 --> 00:04:20,430 Suze: No, I am in the mood. There's just so much 77 00:04:20,430 --> 00:04:23,520 Suze: that I have on my mind that I really want 78 00:04:23,520 --> 00:04:25,390 Suze: to just talk to you about KT. We should do 79 00:04:25,390 --> 00:04:27,860 Suze: like a three hour podcast where I just get to 80 00:04:27,860 --> 00:04:31,040 Suze: tell everybody what's on my mind because it would take 81 00:04:31,040 --> 00:04:34,099 Suze: about that long actually would probably take longer. But I 82 00:04:34,100 --> 00:04:36,159 Suze: wanted to let all of you know 83 00:04:36,670 --> 00:04:38,860 Suze: that three days ago 84 00:04:39,820 --> 00:04:42,320 Suze: Mr Dennis Devine 85 00:04:42,330 --> 00:04:42,909 Suze: the 86 00:04:42,910 --> 00:04:50,000 Suze: CEO of Alliant Credit union and Simit Grover who really 87 00:04:50,000 --> 00:04:55,200 Suze: is in charge of all marketing and a brilliant man. Right. I 88 00:04:55,200 --> 00:04:57,460 Suze: don't know if he's the CMO or his title but 89 00:04:57,460 --> 00:05:01,830 Suze: it doesn't even matter. They came all the way from 90 00:05:01,839 --> 00:05:07,029 Suze: Chicago and New York here to us on our private 91 00:05:07,029 --> 00:05:08,020 Suze: little island 92 00:05:08,500 --> 00:05:13,039 Suze: and we spent an entire day talking about what can 93 00:05:13,040 --> 00:05:15,830 Suze: Alliant do for all of you 94 00:05:16,520 --> 00:05:19,520 Suze: to make this really the place that you bring your 95 00:05:19,520 --> 00:05:24,710 Suze: money home to. And we talked about so many brilliant ideas. 96 00:05:24,710 --> 00:05:29,020 Suze: I can't even tell you. And so I really hope 97 00:05:29,040 --> 00:05:34,070 Suze: next year that I and KT can talk to you 98 00:05:34,570 --> 00:05:36,960 Suze: and say this is what you can do at Alliant, 99 00:05:36,970 --> 00:05:39,040 Suze: this is it. You can do this, you can do 100 00:05:39,040 --> 00:05:41,930 Suze: that and I want you to so that you have 101 00:05:41,930 --> 00:05:46,030 Suze: more of a variety than just truthfully the Ultimate Opportunity 102 00:05:46,029 --> 00:05:49,290 Suze: Savings Account. So I am so excited about it. It's 103 00:05:49,290 --> 00:05:52,110 Suze: not even funny but what I want to say to 104 00:05:52,110 --> 00:05:56,890 Suze: all of you is what CEO of a bank of 105 00:05:56,900 --> 00:06:00,159 Suze: any place really of really any other credit union 106 00:06:00,770 --> 00:06:05,490 Suze: would come all this way to really find out. What 107 00:06:05,500 --> 00:06:10,729 Suze: is it Suze, that the people who listen to your podcast, 108 00:06:10,740 --> 00:06:14,539 Suze: what do they really need? What do they want? We 109 00:06:14,540 --> 00:06:17,470 Suze: want to give it to them. Who would do that? 110 00:06:18,339 --> 00:06:20,400 Suze: So let's see what happens. 111 00:06:20,410 --> 00:06:25,610 KT: Yes they really honored Suze as well. Everybody they really 112 00:06:25,610 --> 00:06:30,190 KT: really said Suze we would like to work with you 113 00:06:30,190 --> 00:06:33,610 KT: to make your dreams come true. Your dreams for the 114 00:06:33,610 --> 00:06:35,500 KT: people that you know you're 115 00:06:35,500 --> 00:06:36,830 KT: helping. It was 116 00:06:36,830 --> 00:06:41,550 KT: really very very inspiring day, incredibly inspired. 117 00:06:41,550 --> 00:06:43,529 Suze: And they were here maybe for five hours and then 118 00:06:43,529 --> 00:06:46,410 Suze: they flew out right and so I just want all 119 00:06:46,410 --> 00:06:47,470 Suze: of you to know 120 00:06:47,839 --> 00:06:53,080 Suze: next year. Right let's look forward to what Alliant can 121 00:06:53,080 --> 00:06:54,370 Suze: do for all of you. 122 00:06:54,380 --> 00:06:55,380 KT: Lots of surprises! 123 00:06:55,700 --> 00:06:58,600 Suze: All right now I'm ready. 124 00:06:58,600 --> 00:07:03,040 KT: Okay Suze. First question is from Lori. She said Suze 125 00:07:03,050 --> 00:07:07,179 KT: I'm at a loss regarding what to do. Unfortunately I 126 00:07:07,180 --> 00:07:12,500 KT: have about $25,000 in credit card debt. I am doing 127 00:07:12,500 --> 00:07:14,560 KT: my best to still contribute to my 401k. 128 00:07:16,040 --> 00:07:19,610 KT: To receive her employer match but I don't have any 129 00:07:19,620 --> 00:07:24,570 KT: extra money to pay down debt. I have about $35,000 130 00:07:24,570 --> 00:07:29,050 KT: in the 401k. Should I either loan or cash out 131 00:07:29,050 --> 00:07:33,390 KT: that fund to pay off my debt. I'm paying way 132 00:07:33,390 --> 00:07:37,460 KT: more in interest than I'm earning. Doing this would free 133 00:07:37,460 --> 00:07:42,750 KT: up about $1000 a month. I feel so confused and stuck. 134 00:07:42,780 --> 00:07:45,980 KT: Thank you for taking the time to read my question. 135 00:07:46,540 --> 00:07:49,820 KT: Suze, the only problem I have with Laurie's question here, 136 00:07:49,830 --> 00:07:52,680 KT: she doesn't tell us how old she is at all. 137 00:07:52,680 --> 00:07:55,580 Suze: That doesn't even matter KT, how old she is. That 138 00:07:55,590 --> 00:07:58,910 Suze: that wouldn't come to play in a question like this. 139 00:07:58,920 --> 00:08:02,650 Suze: So Laurie, first of all, what you need to know 140 00:08:02,650 --> 00:08:07,470 Suze: is if you have $35,000 in your 401k. You absolutely 141 00:08:07,470 --> 00:08:10,360 Suze: could take a loan out if you wanted to. But 142 00:08:10,360 --> 00:08:15,060 Suze: the maximum they're gonna let you take out is $17,500. 143 00:08:15,080 --> 00:08:16,270 Suze: That's number one. 144 00:08:16,590 --> 00:08:19,330 Suze: So that's going to pay off the majority of the 145 00:08:19,330 --> 00:08:24,450 Suze: $25,000 of credit card debt but not all of it. 146 00:08:24,460 --> 00:08:28,140 Suze: However you need to know if you take a loan 147 00:08:28,140 --> 00:08:34,400 Suze: from your 401k plan and for whatever reason then you 148 00:08:34,400 --> 00:08:38,829 Suze: lose your job. They do a downsizing anything like that 149 00:08:38,830 --> 00:08:45,030 Suze: happens then that $17,500 will be due and payable back 150 00:08:45,040 --> 00:08:46,020 Suze: to them 151 00:08:46,390 --> 00:08:50,550 Suze: within a very short period of time. Usually within that month. 152 00:08:50,580 --> 00:08:53,330 Suze: If you do not have the money to pay them back, 153 00:08:53,380 --> 00:08:57,170 Suze: you will owe ordinary income tax on that money plus 154 00:08:57,179 --> 00:09:01,190 Suze: a 10% penalty if you're not 55 years of age 155 00:09:01,190 --> 00:09:05,760 Suze: or older in the year that you lost service. Alright. 156 00:09:06,470 --> 00:09:10,040 Suze: So I wouldn't do that if I were you. What 157 00:09:10,040 --> 00:09:17,280 Suze: I would do however, is to please contact N. F. C. C. 158 00:09:17,290 --> 00:09:21,900 Suze: dot org. That's the National Foundation of either consumer credit 159 00:09:21,900 --> 00:09:24,090 Suze: or credit counseling. One of the two, I can't remember 160 00:09:24,090 --> 00:09:27,080 Suze: what those letters actually stand for. That's what happens when 161 00:09:27,080 --> 00:09:30,890 Suze: you become 71. But that's besides the point... and contact 162 00:09:30,890 --> 00:09:34,790 Suze: them and set up a program with them 163 00:09:35,050 --> 00:09:39,990 Suze: where you go on a payment schedule where they take 164 00:09:39,990 --> 00:09:43,080 Suze: over the payments to this credit card or credit cards 165 00:09:43,090 --> 00:09:46,730 Suze: for you. And because they're paying it to the credit 166 00:09:46,730 --> 00:09:50,410 Suze: cards they actually usually have a deal with all credit 167 00:09:50,410 --> 00:09:53,929 Suze: cards that will lower the interest rate from whatever you're 168 00:09:53,929 --> 00:09:56,890 Suze: paying down to usually 0%. 169 00:09:57,410 --> 00:10:01,040 Suze: And the reason that the credit cards and NFCC do 170 00:10:01,040 --> 00:10:03,800 Suze: that deal is that the credit cards rather be paid 171 00:10:03,800 --> 00:10:10,320 Suze: back something than nothing at all. So you pay NFCC, 172 00:10:10,330 --> 00:10:13,689 Suze: they pay the credit cards, they will put you on 173 00:10:13,700 --> 00:10:17,890 Suze: a five year payment program. Maybe that will cost you 174 00:10:17,890 --> 00:10:20,260 Suze: a few dollars a month to do that with them. 175 00:10:20,270 --> 00:10:23,870 Suze: But that is a way that you can lower your payments. 176 00:10:24,220 --> 00:10:27,130 Suze: Where you say it would free up $1,000 a month. 177 00:10:27,130 --> 00:10:33,060 Suze: It most certainly would and therefore you would be okay. 178 00:10:33,110 --> 00:10:38,189 Suze: I just think $1000 a month on only $25,000 of 179 00:10:38,190 --> 00:10:41,440 Suze: credit card debt is a whole lot for that to 180 00:10:41,440 --> 00:10:43,270 Suze: be the minimum payment due. 181 00:10:44,050 --> 00:10:46,880 Suze: And KT, I'm going a little bit more in detail 182 00:10:46,880 --> 00:10:50,040 Suze: on this question, only because there are so many people 183 00:10:50,040 --> 00:10:54,920 Suze: right now in Laurie's situation. if you have a high 184 00:10:54,920 --> 00:10:56,610 Suze: FICO score, 185 00:10:57,500 --> 00:11:01,770 Suze: which is your credit score, you could check to see, 186 00:11:01,910 --> 00:11:08,820 Suze: do you qualify for a balance transfer card at 0% 187 00:11:08,830 --> 00:11:14,460 Suze: for 21 months there out there everybody. You could just 188 00:11:14,460 --> 00:11:19,130 Suze: go to bankrate.com or any of those places and see 189 00:11:19,130 --> 00:11:23,690 Suze: what is the best balance transfer card out there. 190 00:11:24,300 --> 00:11:29,230 Suze: Then you wouldn't be paying any interest on that $25,000. 191 00:11:29,620 --> 00:11:31,689 Suze: And for 21 months, 192 00:11:32,080 --> 00:11:36,660 Suze: if you put $1000 a month into there, you would 193 00:11:36,670 --> 00:11:41,480 Suze: almost be paid off because that would be almost, you know, 194 00:11:41,490 --> 00:11:46,860 Suze: $21,000 towards the $25,000 debt. That is another way you 195 00:11:46,860 --> 00:11:49,400 Suze: could handle it. But for some reason I have this 196 00:11:49,400 --> 00:11:53,090 Suze: gut feeling, you don't have a very high FICO score 197 00:11:53,100 --> 00:11:54,429 Suze: because it seems like your interest 198 00:11:54,559 --> 00:11:58,740 Suze: rate to be paying $1000 a month and only $25,000 199 00:11:58,740 --> 00:12:02,100 Suze: of credit card debt is a lot. That's why it 200 00:12:02,100 --> 00:12:05,580 Suze: is really, really important. Everybody that you do whatever you 201 00:12:05,580 --> 00:12:09,920 Suze: can do to get a high FICO score, which is 202 00:12:09,929 --> 00:12:14,650 Suze: your credit score. Next question, my dear KT who puts 203 00:12:14,650 --> 00:12:16,790 Suze: a flower on my puja 204 00:12:16,800 --> 00:12:20,590 Suze: that I don't even notice in almost a month. What 205 00:12:20,600 --> 00:12:22,020 Suze: is wrong with me? 206 00:12:22,030 --> 00:12:24,350 KT: It's romantic. All right. This is from Kitty. 207 00:12:24,750 --> 00:12:28,280 Suze: That was romantic. Wait KT. Were you hurt that I 208 00:12:28,280 --> 00:12:29,719 Suze: never said anything about it? 209 00:12:29,730 --> 00:12:32,330 KT: No, because it didn't matter to me whether you noticed it 210 00:12:32,330 --> 00:12:35,670 KT: or not. I just wanted to also honor your little 211 00:12:35,670 --> 00:12:39,150 KT: favorite things. So this is from Kitty. 212 00:12:39,570 --> 00:12:42,030 KT: Suze. Can you please help? 213 00:12:42,570 --> 00:12:45,130 Suze: I thought she was going to say from Kitty, do you 214 00:12:45,130 --> 00:12:46,679 Suze: think I can afford to buy a kitty cat? 215 00:12:47,740 --> 00:12:51,560 KT: Kitty said Suze, can you please help? I can't find 216 00:12:51,570 --> 00:12:55,010 KT: any answers online. This is why I'm reading this. I'm 217 00:12:55,010 --> 00:12:58,410 KT: thinking whoa If she can't find the answer to this online, 218 00:12:58,410 --> 00:13:01,060 KT: I don't I don't know what what the question was. 219 00:13:01,070 --> 00:13:06,480 KT: I'm 37. I just surrendered my annuity that my father 220 00:13:06,490 --> 00:13:09,840 KT: got for me at the age of nine. Can you 221 00:13:09,840 --> 00:13:11,190 KT: imagine? I'm 222 00:13:11,190 --> 00:13:16,530 KT: sure I'll qualify for the 10% penalty. I'm only 37. 223 00:13:16,660 --> 00:13:20,219 KT: But after I received the distribution to my bank, can 224 00:13:20,220 --> 00:13:23,820 KT: I still roll it over to another annuity if it's 225 00:13:23,820 --> 00:13:29,780 KT: been less than 60 days or should I take the 10% hit? 226 00:13:30,110 --> 00:13:33,680 KT: Not rolling it over and continue contributing 227 00:13:34,480 --> 00:13:37,760 KT: into a Roth IRA for my husband and I since 228 00:13:37,760 --> 00:13:42,120 KT: we're still so young? Any help is appreciated. The amount 229 00:13:42,120 --> 00:13:47,699 KT: was 32,000 overall 22,000 was the gains. 230 00:13:47,740 --> 00:13:51,610 Suze: So Kitty. The answer to this question depends on what 231 00:13:51,620 --> 00:13:53,890 Suze: is the goal of this money. 232 00:13:54,550 --> 00:13:58,300 Suze: So it looks like you did really great. Obviously if 233 00:13:58,300 --> 00:14:02,429 Suze: you have $32,000 in there, the gain was 22,000. That 234 00:14:02,429 --> 00:14:07,740 Suze: means your father put in $10,000 28 years ago. So 235 00:14:07,740 --> 00:14:11,589 Suze: what return did you get on this money over the 236 00:14:11,590 --> 00:14:18,230 Suze: 28 years? You got approximately a 4% return on your money. Now. 237 00:14:18,240 --> 00:14:19,690 Suze: That's not bad. 238 00:14:20,190 --> 00:14:24,920 Suze: But Kitty. If your father had simply put this $10,000 239 00:14:24,920 --> 00:14:27,700 Suze: in a Standard and Poor's 500 index fund or whatever 240 00:14:27,700 --> 00:14:29,670 Suze: it may have been at that time. 241 00:14:30,230 --> 00:14:33,690 Suze: And you averaged an annual average rate of return of 10% 242 00:14:33,690 --> 00:14:36,400 Suze: which is what they did over 28 years. You'd have 243 00:14:36,960 --> 00:14:43,450 Suze: $144,000 today. And not only would you have $144,000 today, 244 00:14:43,460 --> 00:14:46,590 Suze: you would pay capital gains tax on that money. If 245 00:14:46,590 --> 00:14:49,160 Suze: you wanted to take it out, there would not be 246 00:14:49,160 --> 00:14:52,900 Suze: a surrender charge but because your money was in an 247 00:14:52,900 --> 00:14:57,470 Suze: annuity and you are not 59 a half years of age. 248 00:14:57,630 --> 00:15:01,850 Suze: When you take any money out, when you surrender the policy, 249 00:15:01,960 --> 00:15:06,960 Suze: you will pay not only ordinary income tax on this 250 00:15:06,960 --> 00:15:12,400 Suze: $22,000 of gain, but you also have a 10% penalty 251 00:15:12,400 --> 00:15:19,500 Suze: tax on anything above the $10,000 that your father put in. 252 00:15:20,270 --> 00:15:24,070 Suze: So that's why I don't love annuities when you are 253 00:15:24,070 --> 00:15:28,480 Suze: younger and you want to build money for the long term. 254 00:15:28,490 --> 00:15:32,989 Suze: Sometimes they are fabulous. Sometimes they are not. At the 255 00:15:33,000 --> 00:15:37,490 Suze: age of 37 would I still want you to have 256 00:15:37,490 --> 00:15:40,670 Suze: your money in an annuity? I would not. 257 00:15:40,990 --> 00:15:45,860 Suze: I would rather see you truthfully take advantage of Treasury 258 00:15:45,860 --> 00:15:49,930 Suze: bills and investing this money dollar cost, averaging it for 259 00:15:49,930 --> 00:15:54,120 Suze: the long run in dividend paying stocks or dividend paying E. T. 260 00:15:54,120 --> 00:15:59,110 Suze: F.s or things like that. Your question, however, was you 261 00:15:59,110 --> 00:16:05,140 Suze: already surrendered it And now the bank is waiting to 262 00:16:05,140 --> 00:16:07,320 Suze: receive this distribution. 263 00:16:07,620 --> 00:16:10,320 Suze: And your question is can you roll it over to 264 00:16:10,320 --> 00:16:16,970 Suze: another annuity? Annuities don't roll over like I. R. A.s do, 265 00:16:16,980 --> 00:16:21,010 Suze: where you're going from a 401k. to an IRA rollover. 266 00:16:21,020 --> 00:16:24,760 Suze: What you should have done if you wanted to keep 267 00:16:24,770 --> 00:16:28,940 Suze: this annuity or another annuity, but why you would give 268 00:16:28,940 --> 00:16:31,440 Suze: up this annuity when you were out of the surrender 269 00:16:31,440 --> 00:16:34,740 Suze: period to go into a new annuity is beyond me. 270 00:16:34,740 --> 00:16:36,480 Suze: But that's besides the point. 271 00:16:36,750 --> 00:16:43,370 Suze: Is this. Right... you would have done a 1035 exchange. 272 00:16:43,910 --> 00:16:46,400 Suze: That is how it is done where you go from 273 00:16:46,400 --> 00:16:51,100 Suze: one annuity directly to a new annuity. You exchange them 274 00:16:51,110 --> 00:16:54,780 Suze: and the form is known as a 1035 exchange. So 275 00:16:54,780 --> 00:16:57,630 Suze: in my opinion, you are too late to do that. 276 00:16:57,640 --> 00:17:00,350 Suze: Plus I wouldn't want you to do that. I'd rather 277 00:17:00,350 --> 00:17:00,650 Suze: see you 278 00:17:00,670 --> 00:17:05,550 Suze: pay the tax on $22,000 now, when you're only 37 279 00:17:05,660 --> 00:17:08,280 Suze: maybe not in that high of an income tax bracket 280 00:17:08,290 --> 00:17:13,360 Suze: and invest by doing what? Funding your Roth I. R. 281 00:17:13,369 --> 00:17:15,430 Suze: A s. KT next question. 282 00:17:15,440 --> 00:17:19,160 KT: Next question is from Lisa. Suze, this one is just 283 00:17:19,160 --> 00:17:21,760 KT: not even a question. Just set Lisa straight. 284 00:17:21,920 --> 00:17:25,950 KT: I attempted to open an Alliant account but do not 285 00:17:25,950 --> 00:17:30,780 KT: qualify under the membership type. Please confirm there is no 286 00:17:30,780 --> 00:17:37,020 KT: alternative to opening an ultimate savings account. Membership eligibility was 287 00:17:37,020 --> 00:17:39,250 KT: not clear on the podcast. 288 00:17:39,260 --> 00:17:43,230 Suze: Lisa not your fault. You don't understand if I didn't 289 00:17:43,230 --> 00:17:47,100 Suze: make it clear, bad on me. Listen this is all 290 00:17:47,100 --> 00:17:50,210 Suze: you have to do is understand 291 00:17:50,359 --> 00:17:53,300 Suze: that, yes it's true that all credit unions you have 292 00:17:53,300 --> 00:17:56,050 Suze: to have certain qualifications to become a member of that 293 00:17:56,050 --> 00:18:00,830 Suze: credit union because credit unions are far better in every 294 00:18:00,830 --> 00:18:03,930 Suze: way than banks. So they set it up so that 295 00:18:03,930 --> 00:18:09,310 Suze: they really gear everything towards their members. And all you 296 00:18:09,310 --> 00:18:13,169 Suze: have to do is go to my alliant dot com 297 00:18:13,180 --> 00:18:17,170 Suze: and then go just scroll down and go to where 298 00:18:17,170 --> 00:18:20,000 Suze: it says frequently asked questions 299 00:18:20,170 --> 00:18:24,240 Suze: and you'll see a question that says, am I eligible 300 00:18:24,240 --> 00:18:29,840 Suze: for Aliant membership? And the answer there reads exactly like 301 00:18:29,840 --> 00:18:32,490 Suze: this because I'm looking at it as I'm reading this 302 00:18:32,490 --> 00:18:37,159 Suze: to you. Almost anyone can become an Alliant member. You 303 00:18:37,160 --> 00:18:41,380 Suze: can be eligible for membership through your employer by where 304 00:18:41,380 --> 00:18:45,129 Suze: you live or by becoming a member of ... And 305 00:18:45,130 --> 00:18:47,490 Suze: this is what applies to you... 306 00:18:47,790 --> 00:18:53,600 Suze: by becoming a member of Foster Care to Success, which 307 00:18:53,609 --> 00:18:59,480 Suze: is Alliant's partner charity. They will pay the $5 membership 308 00:18:59,490 --> 00:19:01,109 Suze: for you that it costs 309 00:19:01,810 --> 00:19:04,650 Suze: for you to be able to be a member of 310 00:19:04,660 --> 00:19:08,970 Suze: Alliant Credit Union. So there isn't one of you, if 311 00:19:08,970 --> 00:19:12,060 Suze: they can verify your identity and things like that, that 312 00:19:12,060 --> 00:19:15,920 Suze: cannot be a member of Alliant Credit Union. It will 313 00:19:15,920 --> 00:19:19,169 Suze: not cost you anything and in the meantime... 314 00:19:20,520 --> 00:19:20,790 KT: You're donating to... 315 00:19:22,350 --> 00:19:25,780 Suze: ...to Foster Care to Success, which takes care of people 316 00:19:25,780 --> 00:19:29,730 Suze: as they get older and come out of the foster 317 00:19:29,730 --> 00:19:34,740 Suze: care system. So it's fabulous. We've raised so much money 318 00:19:34,740 --> 00:19:37,820 Suze: for them. It's not even funny. So you can do 319 00:19:37,820 --> 00:19:42,899 Suze: good by being good with your money. Alright, 320 00:19:43,750 --> 00:19:46,390 KT: so the next question following 321 00:19:46,900 --> 00:19:47,560 Suze: laugh 322 00:19:47,650 --> 00:19:52,710 KT: because this next question is like, whoa So Suzie, this 323 00:19:52,710 --> 00:19:56,859 KT: is how do you feel about how do you feel 324 00:19:56,859 --> 00:20:01,640 KT: about prepaid funeral arrangements? What are your thoughts on this 325 00:20:01,890 --> 00:20:03,860 Suze: is such a waste of money? And I was going 326 00:20:03,859 --> 00:20:08,389 KT: to say the same thing because no, I agree. I 327 00:20:08,390 --> 00:20:10,750 KT: would not. I would not ever 328 00:20:10,920 --> 00:20:14,149 KT: recommend a prepaid funeral arrangement. 329 00:20:14,160 --> 00:20:16,810 Suze: Now I if we weren't running out of time 330 00:20:16,820 --> 00:20:18,160 KT: already, I 331 00:20:18,160 --> 00:20:21,040 Suze: know that's why we have to. All right. So I 332 00:20:21,040 --> 00:20:24,390 Suze: would ask you why but Fran here is the reason 333 00:20:24,400 --> 00:20:29,290 Suze: so many reasons is number one. If you pay money 334 00:20:29,290 --> 00:20:34,310 Suze: today for your funeral arrangement and now you live another 335 00:20:34,320 --> 00:20:39,060 Suze: 10 2030 years, which is possible. Maybe you're in your sixties, 336 00:20:39,060 --> 00:20:40,170 Suze: you didn't say 337 00:20:40,550 --> 00:20:43,810 Suze: You are paying so much for that funeral. It's not 338 00:20:43,810 --> 00:20:47,320 Suze: even funny because that money that it would cost you 339 00:20:47,320 --> 00:20:50,919 Suze: for your funeral today. If you just put into a 340 00:20:50,920 --> 00:20:54,169 Suze: Treasury bill or something like that, even the Alliant credit 341 00:20:54,170 --> 00:20:57,550 Suze: union because they're paying 2.6% right now and I'm sure 342 00:20:57,550 --> 00:21:01,550 Suze: we'll be going higher. Think about how much money you 343 00:21:01,550 --> 00:21:04,300 Suze: would have there at that period of time. 344 00:21:04,770 --> 00:21:09,580 Suze: Also, what if you want a different type of burial 345 00:21:09,580 --> 00:21:12,440 Suze: meaning you don't want to be buried at the place 346 00:21:12,440 --> 00:21:15,410 Suze: that you paid for a pre paid funeral? Maybe you 347 00:21:15,410 --> 00:21:18,030 Suze: moved in these years and you went somewhere else and 348 00:21:18,040 --> 00:21:24,000 Suze: on and on. And there are many things within that arrangement, 349 00:21:24,000 --> 00:21:27,150 Suze: that contract that you have to read very carefully. It 350 00:21:27,150 --> 00:21:29,570 Suze: doesn't quite work the way that you think 351 00:21:29,780 --> 00:21:33,620 Suze: I wouldn't do it if I were you. Alright. 352 00:21:33,680 --> 00:21:38,190 KT: Okay. So Suze. This next question is from Jeff. He said, hey, 353 00:21:38,190 --> 00:21:43,429 KT: KT and Suze. It sounds like you both have separate trust. 354 00:21:43,440 --> 00:21:47,100 KT: Me and my husband have a combined trust. Is there 355 00:21:47,100 --> 00:21:49,260 KT: any advantage to having them 356 00:21:49,260 --> 00:21:50,639 KT: separate? If 357 00:21:50,640 --> 00:21:53,520 KT: so, how do you treat joint assets like the house 358 00:21:53,530 --> 00:21:55,240 KT: or joint bank accounts. 359 00:21:55,250 --> 00:21:58,340 Suze: So here's the thing you need to understand. When KT 360 00:21:58,340 --> 00:21:59,460 Suze: and I first 361 00:21:59,520 --> 00:22:03,330 Suze: created our trust, we legally could not be married. Remember 362 00:22:03,330 --> 00:22:08,280 Suze: that didn't happen until 2015 here in the United States. 363 00:22:08,290 --> 00:22:12,590 Suze: And so we had to have separate trusts at that time. 364 00:22:12,600 --> 00:22:16,410 Suze: If however I was going to do it all over again, 365 00:22:16,420 --> 00:22:19,469 Suze: I have to tell you for us, I would do 366 00:22:19,470 --> 00:22:22,430 Suze: it the exact same way and... 367 00:22:22,680 --> 00:22:23,280 KT: Meaning separate? 368 00:22:23,280 --> 00:22:28,500 Suze: Separate. And the reason is this we don't have children. 369 00:22:28,690 --> 00:22:33,420 Suze: We don't have to really worry about estate taxes because why? 370 00:22:33,420 --> 00:22:37,030 Suze: The majority of our money is going to non profits 371 00:22:37,030 --> 00:22:41,389 Suze: to charity. So we don't have to worry about estate taxes. 372 00:22:41,700 --> 00:22:43,030 Suze: That's number one. 373 00:22:43,220 --> 00:22:47,290 Suze: If in our situation, I was worried about estate taxes, 374 00:22:47,310 --> 00:22:52,000 Suze: then we would have a marital tax planning trust where 375 00:22:52,000 --> 00:22:55,540 Suze: we could essentially give at this point in time, $24 376 00:22:55,540 --> 00:22:58,689 Suze: million dollars tax free via the trust. If we died 377 00:22:58,700 --> 00:23:02,240 Suze: to our beneficiaries that were not charities. But that's not 378 00:23:02,240 --> 00:23:03,260 Suze: our situation. 379 00:23:03,880 --> 00:23:08,410 Suze: So a single trust. A separate trust works very well 380 00:23:08,410 --> 00:23:12,980 Suze: for us. The way that all our assets are titled 381 00:23:12,990 --> 00:23:15,640 Suze: is that they're titled in 382 00:23:16,369 --> 00:23:21,300 Suze: Kathy Travis trustee for the Kathy Travis trust. Suze Orman 383 00:23:21,310 --> 00:23:26,950 Suze: trustee for the Suze Orman Trust as joint tenancy. It's 384 00:23:26,950 --> 00:23:31,390 Suze: just that simple. Rather than our individual names being on 385 00:23:31,400 --> 00:23:35,770 Suze: it or being held in a marital trust. That's how 386 00:23:35,770 --> 00:23:39,730 Suze: we hold it. It's not a big deal on any level. 387 00:23:40,119 --> 00:23:43,950 Suze: But you have a marital trust, you can keep a 388 00:23:43,950 --> 00:23:47,379 Suze: marital trust if you want no big deal. Most people 389 00:23:47,380 --> 00:23:52,200 Suze: who are married have marital trusts. And so really you 390 00:23:52,200 --> 00:23:55,820 Suze: can keep it exactly like it is, There's really no 391 00:23:55,820 --> 00:23:58,810 Suze: advantage except for one. 392 00:23:59,910 --> 00:24:05,710 Suze: Let's just say you have your individual trust and now 393 00:24:05,710 --> 00:24:10,150 Suze: you have a parent or somebody who dies and leaves 394 00:24:10,150 --> 00:24:12,690 Suze: you a substantial sum of money. 395 00:24:13,520 --> 00:24:17,450 Suze: And you want to make sure that it's always yours. 396 00:24:18,470 --> 00:24:21,699 Suze: And you want to make sure that it's always yours. 397 00:24:21,710 --> 00:24:26,830 Suze: Because if you ever put it in a joint account 398 00:24:26,840 --> 00:24:31,850 Suze: with your spouse, for instance, that inheritance now becomes 50 - 399 00:24:31,850 --> 00:24:35,750 Suze: 50 there's and maybe you want to make sure that 400 00:24:35,750 --> 00:24:40,500 Suze: it's always yours because just maybe your relationship isn't as 401 00:24:40,500 --> 00:24:44,159 Suze: great as you wished it could be or it's a 402 00:24:44,160 --> 00:24:45,770 Suze: second marriage 403 00:24:46,010 --> 00:24:49,139 Suze: and you want to make sure that that money, that 404 00:24:49,140 --> 00:24:55,379 Suze: inheritance goes to your Children and isn't part of anything else. 405 00:24:55,560 --> 00:25:00,150 Suze: That's another reason why you might want a separate trust. 406 00:25:00,160 --> 00:25:02,960 Suze: Just saying. KT, was that clear? 407 00:25:03,170 --> 00:25:05,030 KT: Yeah, I think that was very clear. 408 00:25:05,030 --> 00:25:05,859 Suze: Alright, good. Alright. 409 00:25:06,859 --> 00:25:10,300 KT: This is from Karen Suze, Hi Suze, thank you for 410 00:25:10,300 --> 00:25:13,430 KT: all the laughs that you and KT bring while educating 411 00:25:13,430 --> 00:25:13,960 KT: us 412 00:25:13,970 --> 00:25:15,090 Suze: Now, all of you. 413 00:25:16,270 --> 00:25:19,840 Suze: Wait, I just have to say, remember the very last 414 00:25:19,840 --> 00:25:21,340 Suze: podcast of the year 415 00:25:21,890 --> 00:25:25,930 Suze: is a podcast that Robert surprises all of us with, 416 00:25:25,940 --> 00:25:32,000 Suze: including me and KT of all the times we cracked 417 00:25:32,010 --> 00:25:34,620 Suze: up and we couldn't, you know, 418 00:25:34,930 --> 00:25:35,560 KT: Bloopers... 419 00:25:35,570 --> 00:25:37,790 Suze: or whatever it may be and then he edited them 420 00:25:37,810 --> 00:25:41,260 Suze: out. So I hope that that end of the year 421 00:25:41,260 --> 00:25:44,710 Suze: podcast makes us all laugh because that really is the 422 00:25:44,710 --> 00:25:46,490 Suze: intention of it. All right, okay. 423 00:25:46,490 --> 00:25:49,830 KT: She says wondering if you could please advise us on 424 00:25:49,830 --> 00:25:52,699 KT: some general things to do if we have come into 425 00:25:52,700 --> 00:25:57,640 KT: an inheritance. My mother passed away during the pandemic. I 426 00:25:57,640 --> 00:26:01,940 KT: am married with a preteen child. I would appreciate some 427 00:26:01,940 --> 00:26:05,660 KT: much needed direction in this time of loss and feeling 428 00:26:05,660 --> 00:26:06,610 KT: overwhelmed 429 00:26:06,910 --> 00:26:10,370 KT: And she said my mom was my everything and this 430 00:26:10,369 --> 00:26:11,510 KT: is from Karen. 431 00:26:11,890 --> 00:26:13,980 Suze: Oh God, here we go. They mentioned the mom and then 432 00:26:13,980 --> 00:26:17,429 Suze: here we both get teary eyed. Right? It's like stop it. 433 00:26:17,430 --> 00:26:20,600 Suze: Suze don't get teary eyed. Alright, so why do you 434 00:26:20,600 --> 00:26:22,100 Suze: think I'm so emotional about my mother? 435 00:26:22,320 --> 00:26:25,959 KT: Because we're getting old? It's true. The older you get, the 436 00:26:25,960 --> 00:26:26,830 KT: more emotional you get. 437 00:26:26,840 --> 00:26:29,109 Suze: It dawned on me is that I'm 71... 438 00:26:30,100 --> 00:26:32,879 Suze: I'm old and that I'm not the exact same age 439 00:26:32,880 --> 00:26:34,250 Suze: that my dad died. 440 00:26:34,830 --> 00:26:36,070 KT: I thought he died earlier. 441 00:26:36,070 --> 00:26:39,760 Suze: No, he died at 71. My Mama was 66 when 442 00:26:39,760 --> 00:26:44,190 Suze: he died and that it is getting old is so 443 00:26:44,190 --> 00:26:46,530 Suze: interesting everybody, but that's besides the point. 444 00:26:46,540 --> 00:26:48,850 KT: Okay, so what should she do with the inheritance? 445 00:26:50,510 --> 00:26:52,470 Suze: It's a very funny thing. And it's funny because I just touched on this 446 00:26:52,480 --> 00:26:54,550 Suze: in my last answer, 447 00:26:54,730 --> 00:26:59,080 Suze: which is first of all, hopefully you have taken that 448 00:26:59,080 --> 00:27:02,860 Suze: inheritance and it's just in your name. 449 00:27:03,590 --> 00:27:07,810 Suze: Because you never want to put an inheritance in to 450 00:27:07,810 --> 00:27:11,690 Suze: a joint account. You never know what the future will 451 00:27:11,690 --> 00:27:16,940 Suze: bring in many, many ways. That's number one, number two, 452 00:27:16,950 --> 00:27:21,660 Suze: you're married with a preteen child. And the real thing 453 00:27:21,670 --> 00:27:27,359 Suze: that I'm keying in on is that you're feeling overwhelmed 454 00:27:27,369 --> 00:27:29,719 Suze: and really in total grief. 455 00:27:29,850 --> 00:27:32,909 Suze: And what do I always say you should do nothing 456 00:27:32,920 --> 00:27:36,400 Suze: other but to keep this money safe and sound for 457 00:27:36,400 --> 00:27:39,080 Suze: at least six months to one year after suffering the 458 00:27:39,080 --> 00:27:43,280 Suze: loss of a loved one. Sometimes it's two years, sometimes 459 00:27:43,280 --> 00:27:48,060 Suze: it's three years. So at this particular point in time, 460 00:27:48,720 --> 00:27:52,420 Suze: what I would be doing with this inheritance, I would 461 00:27:52,420 --> 00:27:57,550 Suze: really be putting it in to short term Treasury bills, 462 00:27:57,560 --> 00:28:00,870 Suze: which you can do at any brokerage firm or at 463 00:28:00,869 --> 00:28:04,450 Suze: Treasury direct dot gov. My suggestion is you're better off 464 00:28:04,460 --> 00:28:07,700 Suze: doing it at a brokerage firm 465 00:28:07,960 --> 00:28:11,090 Suze: And I would simply do it every three months, six 466 00:28:11,090 --> 00:28:14,850 Suze: month treasury bills. And as time goes on and those 467 00:28:14,850 --> 00:28:19,080 Suze: bills continue to roll over or mature, then you can 468 00:28:19,080 --> 00:28:21,930 Suze: make decisions. Do you want to take some of this 469 00:28:21,930 --> 00:28:25,390 Suze: money and pay off maybe your joint debt? If you 470 00:28:25,390 --> 00:28:28,080 Suze: know that your relationship is really great. 471 00:28:28,570 --> 00:28:30,940 Suze: You know, maybe you want to use some of this 472 00:28:30,940 --> 00:28:33,649 Suze: money if you already don't have it as a down 473 00:28:33,650 --> 00:28:36,460 Suze: payment on a home. But then maybe that home would 474 00:28:36,460 --> 00:28:39,960 Suze: just be in your name. Maybe you want to take 475 00:28:39,960 --> 00:28:44,490 Suze: some of this money and for your preteen child fund 476 00:28:44,500 --> 00:28:49,230 Suze: their 529 account so that it can go to college 477 00:28:49,230 --> 00:28:52,340 Suze: for them. It's hard for me to tell you because 478 00:28:52,340 --> 00:28:56,140 Suze: I don't know your financial situation totally. 479 00:28:56,890 --> 00:29:00,970 Suze: So therefore my main recommendation would be 480 00:29:01,630 --> 00:29:05,760 Suze: put it in three month to six month Treasury bills 481 00:29:05,770 --> 00:29:10,070 Suze: earn about 4.5% on it right now. Where nothing can 482 00:29:10,070 --> 00:29:13,020 Suze: happen to it until you become 483 00:29:13,200 --> 00:29:16,660 Suze: more settled with the loss, you know 484 00:29:16,670 --> 00:29:17,400 KT: of your, 485 00:29:17,550 --> 00:29:21,460 Suze: of your everything. That's what I would be telling you. KT, 486 00:29:21,460 --> 00:29:22,750 Suze: we are out of time. 487 00:29:23,480 --> 00:29:23,630 KT: What about my quizzie? 488 00:29:31,810 --> 00:29:32,480 Suze: I know. So I was gonna say other questions in front of you. Therefore we're going right to your quizzie 489 00:29:34,470 --> 00:29:37,940 Suze: but really I just want to tell you one other thing. 490 00:29:37,950 --> 00:29:38,610 Suze: All right. 491 00:29:38,840 --> 00:29:42,470 Suze: I want you all to make sure that on Christmas 492 00:29:42,470 --> 00:29:43,270 Suze: Day 493 00:29:44,120 --> 00:29:50,630 Suze: you or whenever you can, you listen to the podcast. 494 00:29:50,640 --> 00:29:53,270 Suze: So I have a surprise... KT and I have a 495 00:29:53,270 --> 00:29:57,150 Suze: surprise for all of you on that podcast that I 496 00:29:57,150 --> 00:30:01,420 Suze: have to tell you. You're gonna hopefully love we have 497 00:30:01,420 --> 00:30:04,920 Suze: a guest and I just know that you will love 498 00:30:04,940 --> 00:30:06,200 Suze: this guest. Alright. 499 00:30:07,000 --> 00:30:07,740 KT: It's Santa Claus. 500 00:30:07,740 --> 00:30:11,270 Suze: Santa Claus is coming. Maybe you never know. 501 00:30:11,590 --> 00:30:16,070 Suze: KT this is and all of you. This isn't just 502 00:30:16,070 --> 00:30:20,150 Suze: for KT, this is for all of you. I really 503 00:30:20,150 --> 00:30:22,490 Suze: want all of you to get to the point in 504 00:30:22,490 --> 00:30:26,960 Suze: your life where you know how to answer every single 505 00:30:26,960 --> 00:30:27,880 Suze: question 506 00:30:28,510 --> 00:30:33,320 Suze: that is asked on the Ask Suze and KT Podcast 507 00:30:33,330 --> 00:30:39,560 Suze: wouldn't that be an incredible goal for 2023. This is 508 00:30:39,560 --> 00:30:43,030 Suze: from Amy where she says Hi Suze. 509 00:30:43,230 --> 00:30:46,830 Suze: I've listened to your most recent podcast about investing in 510 00:30:46,830 --> 00:30:51,710 Suze: short term Treasury bills. I'm wondering if I should get 511 00:30:51,720 --> 00:30:56,560 Suze: rid of my mutual funds and move the money to 512 00:30:56,560 --> 00:31:01,760 Suze: T bills? I'm recently retired by the way and I 513 00:31:01,760 --> 00:31:07,260 Suze: want the money to grow. I'm stressed by the market's volatility. 514 00:31:07,270 --> 00:31:11,990 Suze: What would you recommend? Thank you so very much. KT 515 00:31:11,990 --> 00:31:12,930 Suze: think about it. 516 00:31:13,330 --> 00:31:18,000 Suze: Let everybody else think about it. The keys to this 517 00:31:18,040 --> 00:31:22,480 Suze: quizzie for all of you is she is retired 518 00:31:23,040 --> 00:31:27,230 Suze: right? She is stressed by the market volatility. 519 00:31:28,440 --> 00:31:32,460 Suze: So what should she do? KT, are you ready for 520 00:31:32,460 --> 00:31:32,940 Suze: the answer? 521 00:31:33,770 --> 00:31:34,170 KT: I am really ready. 522 00:31:34,170 --> 00:31:38,900 Suze: Are you sure? I just have to tell everybody. She just 523 00:31:38,900 --> 00:31:42,420 Suze: set up so straight. She has a look in her 524 00:31:42,420 --> 00:31:49,190 Suze: face that she has determined just see look that she 525 00:31:49,190 --> 00:31:50,400 Suze: knows the answer to this. 526 00:31:50,400 --> 00:31:50,840 KT: I do. 527 00:31:51,710 --> 00:31:52,370 Suze: What is it? 528 00:31:52,380 --> 00:31:56,310 KT: Absolutely go for the short term Treasury bills. 529 00:31:57,380 --> 00:31:59,610 KT: Wait, Suze is giving me a look or maybe you 530 00:31:59,610 --> 00:32:02,220 KT: don't do that. Maybe you don't do either one of these. 531 00:32:02,460 --> 00:32:04,780 Suze: Now KT, you are not to base your answer based on my expression. 532 00:32:06,650 --> 00:32:09,370 KT: First of all, if you're stressed, get rid of the 533 00:32:09,370 --> 00:32:13,330 KT: mutual funds because they're gonna be reacting to the market 534 00:32:13,330 --> 00:32:14,300 KT: going up and down like 535 00:32:14,320 --> 00:32:18,650 KT: roller coaster. But the short term T bills can be 536 00:32:18,650 --> 00:32:23,000 KT: three months, six months up to a year, maybe more. 537 00:32:23,010 --> 00:32:25,700 KT: Go for the three months. Just kind of watch everything. 538 00:32:25,700 --> 00:32:28,040 Suze: She's saying that because she knows that's what we're buying right now. Go on. 539 00:32:28,380 --> 00:32:31,890 KT: Yeah. And Suze talking a lot about it. So if 540 00:32:31,890 --> 00:32:35,860 KT: I have to choose, then go to the short term 541 00:32:36,050 --> 00:32:36,550 Suze: Alright 542 00:32:36,570 --> 00:32:39,620 KT: T Bills. Is that a yes or a no. Is that 543 00:32:39,620 --> 00:32:39,920 KT: a 544 00:32:39,930 --> 00:32:44,380 Suze: Ding Ding Ding Ding. But notice the volume of my 545 00:32:44,380 --> 00:32:45,390 Suze: Ding Ding Ding. 546 00:32:45,590 --> 00:32:49,000 KT: It's not high because she could do a third option. Right. 547 00:32:49,000 --> 00:32:49,900 KT: Is that what you're going to say? 548 00:32:49,900 --> 00:32:51,570 Suze: No, that is not what I'm going to say, you 549 00:32:51,570 --> 00:32:55,430 Suze: little cutie pie. She knows what I'm going to say. 550 00:32:55,430 --> 00:32:57,030 KT: Short term treasury bills. 551 00:32:57,460 --> 00:32:59,710 Suze: So, Ding Ding Ding Ding, 552 00:33:00,180 --> 00:33:02,380 KT: Come on, give me like a real Ding Ding Ding 553 00:33:02,380 --> 00:33:02,940 KT: Ding Ding. 554 00:33:02,950 --> 00:33:05,060 Suze: You're not getting a Ding Ding Ding Ding Ding. No, 555 00:33:05,060 --> 00:33:07,520 Suze: you're not getting that. And here's the reason why: 556 00:33:07,800 --> 00:33:14,150 Suze: We don't have enough information and why don't we? Because Amy, 557 00:33:14,160 --> 00:33:18,750 Suze: we don't know is this money, the mutual funds that 558 00:33:18,750 --> 00:33:23,150 Suze: you have inside a retirement account or outside of a 559 00:33:23,150 --> 00:33:27,110 Suze: retirement account because if it's outside of a retirement account 560 00:33:27,120 --> 00:33:30,760 Suze: and all of a sudden you just sell right now, 561 00:33:30,770 --> 00:33:32,960 Suze: you're going to owe possibly 562 00:33:33,140 --> 00:33:37,880 Suze: ordinary income tax or capital gains tax on that money, 563 00:33:38,710 --> 00:33:45,490 Suze: which is a big deal. So if however, your capital 564 00:33:45,490 --> 00:33:49,780 Suze: gains tax or your ordinary income tax on these mutual 565 00:33:49,780 --> 00:33:53,550 Suze: funds is not that large and or this is money 566 00:33:53,550 --> 00:33:55,300 Suze: within a retirement account, 567 00:33:55,900 --> 00:33:58,480 Suze: then I would be giving KT a Ding Ding Ding 568 00:33:58,480 --> 00:34:02,560 Suze: Ding Ding Ding Ding. But you always, when you sell 569 00:34:02,570 --> 00:34:07,240 Suze: any mutual fund any E T F any stock, you 570 00:34:07,240 --> 00:34:12,250 Suze: have to take the taxation of that equity into consideration. 571 00:34:12,260 --> 00:34:18,560 Suze: However the market is stressing you out. So if it 572 00:34:18,560 --> 00:34:21,190 Suze: makes sense, tax wise, 573 00:34:21,660 --> 00:34:25,969 Suze: you're already in retirement. I do not have a problem 574 00:34:25,980 --> 00:34:30,300 Suze: with you liquidating and going into treasuries where you're going 575 00:34:30,300 --> 00:34:38,270 Suze: to earn currently now about 4.5% or so. However, I 576 00:34:38,270 --> 00:34:41,480 Suze: do have to make a statement here. Even if that 577 00:34:41,480 --> 00:34:45,930 Suze: means we go really long, KT on this podcast. 578 00:34:46,450 --> 00:34:51,030 Suze: Too many of you who are young, you're 20 you're 579 00:34:51,030 --> 00:34:55,850 Suze: 30 you're 40 even 50 years of age. You are 580 00:34:55,850 --> 00:34:58,920 Suze: thinking that my message to all of you right now 581 00:34:58,930 --> 00:35:02,310 Suze: is get out of the stock market and go into 582 00:35:02,310 --> 00:35:07,500 Suze: T bills. That is not my message on any level. 583 00:35:07,500 --> 00:35:08,850 Suze: Just so you know. 584 00:35:09,570 --> 00:35:13,000 Suze: Haven't I always said to you that if you have 585 00:35:13,010 --> 00:35:16,109 Suze: a lot of time on your side you should be 586 00:35:16,110 --> 00:35:19,860 Suze: wishing a praying and are hoping that these markets go 587 00:35:19,860 --> 00:35:25,609 Suze: down where you continue to dollar cost average into the 588 00:35:25,610 --> 00:35:28,870 Suze: markets however you are investing in them as long as 589 00:35:28,870 --> 00:35:32,560 Suze: they are good quality, no load mutual funds, E. T. 590 00:35:32,560 --> 00:35:35,660 Suze: F.s and dividend pain stocks. 591 00:35:36,020 --> 00:35:40,919 Suze: I do think your investment exposure now should obviously be 592 00:35:40,920 --> 00:35:47,200 Suze: diversified but somewhere where it is giving you good dividends. Alright? 593 00:35:47,210 --> 00:35:51,029 Suze: You do not want to be in Treasury bills with 594 00:35:51,030 --> 00:35:55,230 Suze: money that you want for your future. Do you hear 595 00:35:55,230 --> 00:35:59,629 Suze: me unless you are older. You want this money safe 596 00:35:59,640 --> 00:36:03,279 Suze: and sound and you don't want to be in the 597 00:36:03,280 --> 00:36:05,710 Suze: market at all for whatever reason. 598 00:36:06,520 --> 00:36:07,610 Suze: However, 599 00:36:07,730 --> 00:36:09,120 KT: You don't want to be stressed 600 00:36:09,130 --> 00:36:14,410 Suze: And you don't want to be stressed. That's your keyword there. However, 601 00:36:14,420 --> 00:36:18,710 Suze: I just wanted to be clear and answer for all 602 00:36:18,710 --> 00:36:22,590 Suze: of you that are thinking that are 35, 40, 50, you have 603 00:36:22,590 --> 00:36:28,210 Suze: years on your side. Do not stop right. Do not 604 00:36:28,219 --> 00:36:34,170 Suze: stop investing on a dollar cost average basis into the market. 605 00:36:34,750 --> 00:36:37,270 Suze: Well, what do you think? 606 00:36:37,410 --> 00:36:38,170 KT: It's over 607 00:36:38,170 --> 00:36:40,250 KT: two more weeks and we have a new year. What do you think of that? 608 00:36:41,170 --> 00:36:45,970 Suze: What I think is great is that we have France 609 00:36:45,969 --> 00:36:51,520 Suze: and Argentina in the World Cup baby. So, I am 610 00:36:51,520 --> 00:36:54,440 Suze: rooting for Argentina. 611 00:36:55,760 --> 00:36:57,260 KT: We want Messi to go out on the top of the... 612 00:36:58,530 --> 00:37:04,719 Suze: Yea, even against France. I do want Argentina to win because 613 00:37:04,719 --> 00:37:05,390 Suze: I want Messi 614 00:37:05,800 --> 00:37:10,710 Suze: to have his first World Cup. I would like that for him. 615 00:37:10,900 --> 00:37:11,790 KT: Yea, he deserves it. 616 00:37:11,790 --> 00:37:16,350 Suze: He deserves it. All right, everybody. Until Sunday when we 617 00:37:16,350 --> 00:37:20,259 Suze: have Suze School, there's only one thing that we want 618 00:37:20,260 --> 00:37:22,480 Suze: you to remember when it comes to your money and 619 00:37:22,480 --> 00:37:23,840 Suze: it is what KT? 620 00:37:23,850 --> 00:37:27,200 KT: We want you to be smart, strong and 621 00:37:27,210 --> 00:37:31,580 Suze: secure. All right, Everybody now you stay safe. 622 00:37:31,590 --> 00:37:32,990 KT: Bye bye.