1 00:00:08,000 --> 00:00:12,079 Suze: October 19, 2025. Welcome everybody.. 2 00:00:12,689 --> 00:00:13,850 KT: To the Women and Money podcast, 3 00:00:13,859 --> 00:00:17,040 Suze: and everybody's smart enough to listen. This is... 4 00:00:17,930 --> 00:00:19,690 KT: Ask...no, this is Sunday. 5 00:00:20,840 --> 00:00:23,719 KT: It's, I was about to say this is Ask Suze anything, 6 00:00:23,799 --> 00:00:27,399 KT: but it's Sunday, and on Sunday, guess what, you can 7 00:00:27,399 --> 00:00:31,360 KT: still ask Suze anything. I'm doing the show with her 8 00:00:31,360 --> 00:00:32,159 KT: on Sunday. 9 00:00:32,360 --> 00:00:35,759 Suze: So here's the thing, everybody, as you know, if you've 10 00:00:35,759 --> 00:00:39,360 Suze: listened to the Women and Money podcast and everybody smart 11 00:00:39,360 --> 00:00:40,189 Suze: enough to listen. 12 00:00:40,869 --> 00:00:45,520 Suze: We are in Italy as you are listening to this, 13 00:00:45,810 --> 00:00:49,848 Suze: but we pre-recorded it, so you wouldn't have to just 14 00:00:49,848 --> 00:00:54,279 Suze: listen to best of the whole time we're gone. However, 15 00:00:55,090 --> 00:00:57,209 Suze: because I don't really know what's happening out there in 16 00:00:57,209 --> 00:01:00,090 Suze: the economy and things like that, it's just better that 17 00:01:00,090 --> 00:01:03,479 Suze: KT and I do for the whole time we're gone, 18 00:01:03,729 --> 00:01:06,190 Suze: Ask KT and Suze Anything and 19 00:01:06,519 --> 00:01:09,300 Suze: I'm starting to like it. Maybe KT, what do you think? 20 00:01:09,370 --> 00:01:11,730 Suze: Should we just go to once a week with just us? 21 00:01:12,099 --> 00:01:12,339 KT: Why not? 22 00:01:12,339 --> 00:01:14,259 Suze: Maybe twice a week with just us? 23 00:01:14,449 --> 00:01:15,009 KT: Why not? 24 00:01:15,620 --> 00:01:16,500 Suze: Yeah, maybe we'll do... 25 00:01:16,500 --> 00:01:18,150 KT: And how about YouTube and us. 26 00:01:18,339 --> 00:01:22,569 Suze: Oh, here we go. All right, so she wants me 27 00:01:22,569 --> 00:01:26,500 Suze: to tell all of you, you should definitely subscribe to 28 00:01:26,500 --> 00:01:31,580 Suze: my YouTube channel. Go to youtube.com/ Suzeorman. 29 00:01:32,279 --> 00:01:34,819 Suze: And just subscribe. Just do it. You won't regret it. 30 00:01:35,110 --> 00:01:40,069 Suze: So that's why it's KT and me today. All right, KT, 31 00:01:40,269 --> 00:01:40,789 Suze: school me. 32 00:01:41,209 --> 00:01:44,830 KT: All right, my first question is from Maria. She said, Hi, 33 00:01:44,949 --> 00:01:47,430 KT: KT and Suze, I've been listening to you for a 34 00:01:47,430 --> 00:01:51,750 KT: couple of years now, and I'm so afraid of losing 35 00:01:51,750 --> 00:01:54,989 KT: any money. I just can't afford it. 36 00:01:55,319 --> 00:01:58,589 KT: So Maria said, I do have a Roth IRA, but 37 00:01:58,589 --> 00:02:01,750 KT: I would like to do more. I know you've spoken 38 00:02:01,750 --> 00:02:05,430 KT: about having a Roth IRA in VOO, but I'm not 39 00:02:05,430 --> 00:02:09,448 KT: sure how to go about that. Please help. So sweet, 40 00:02:09,949 --> 00:02:12,059 KT: very sweet. So let's help Maria. 41 00:02:12,389 --> 00:02:16,990 Suze: But first, Maria, I have a question. You say that 42 00:02:16,990 --> 00:02:20,449 Suze: you have been listening to me now for a couple 43 00:02:20,449 --> 00:02:21,508 Suze: of years. 44 00:02:22,059 --> 00:02:26,709 Suze: And you're so afraid of losing any money. KT, that 45 00:02:26,710 --> 00:02:28,899 Suze: kind of means we haven't really done a very good 46 00:02:28,899 --> 00:02:31,750 Suze: job for those two years that she's been listening. 47 00:02:32,610 --> 00:02:35,690 Suze: Because one of the main objectives of the Women and 48 00:02:35,690 --> 00:02:40,250 Suze: Money podcast, and everybody smart enough to listen is to 49 00:02:40,250 --> 00:02:46,399 Suze: diminish your fear, to take it away, to instill courage 50 00:02:46,399 --> 00:02:51,008 Suze: and bravery in you to just try. So Maria, what 51 00:02:51,008 --> 00:02:53,089 Suze: I would say to you is. 52 00:02:53,570 --> 00:02:55,710 Suze: And I think about this all the time, and I've 53 00:02:55,710 --> 00:02:58,978 Suze: given this example and we still do it here when 54 00:02:58,979 --> 00:03:01,589 Suze: we go in the ocean. Sometimes when we go in 55 00:03:01,589 --> 00:03:06,258 Suze: the ocean, it's really cold, especially during the winter months. 56 00:03:06,550 --> 00:03:09,339 Suze: We just don't go in and jump in, and that's it. 57 00:03:09,589 --> 00:03:12,990 Suze: We go a little bit, especially me, then a little 58 00:03:12,990 --> 00:03:13,850 Suze: bit KT just jumps in. 59 00:03:13,949 --> 00:03:15,410 KT: I was gonna say speak for yourself. 60 00:03:15,630 --> 00:03:18,589 Suze: I know who you are, right? So but a little 61 00:03:18,589 --> 00:03:20,729 Suze: by little and as soon as I get used to it, 62 00:03:20,740 --> 00:03:23,429 Suze: then I take the final dip in. 63 00:03:24,300 --> 00:03:27,940 Suze: So how would you go about it? You would go 64 00:03:27,940 --> 00:03:31,940 Suze: about it little by little. Decide on an amount of 65 00:03:31,940 --> 00:03:36,179 Suze: money every single month that you feel comfortable with putting 66 00:03:36,179 --> 00:03:40,779 Suze: it into an ETF like VOO. You say you already 67 00:03:40,779 --> 00:03:42,059 Suze: have a Roth IRA. 68 00:03:42,449 --> 00:03:47,259 Suze: So within the Roth IRA just do exactly what I 69 00:03:47,259 --> 00:03:51,009 Suze: just told you to do with VOO, and I promise 70 00:03:51,380 --> 00:03:54,619 Suze: one day somebody's going to be happy and that will 71 00:03:54,619 --> 00:03:56,910 Suze: be you. Get it, KT? 72 00:03:57,279 --> 00:03:58,100 KT: You and VOO 73 00:03:58,100 --> 00:04:00,820 Suze: You and VOO all right, doll. 74 00:04:00,979 --> 00:04:05,089 KT: OK, my next question is from Jude, and Jude said, 75 00:04:05,179 --> 00:04:05,600 KT: I am... 76 00:04:09,820 --> 00:04:11,059 Suze: Hey Jude, (singing) that should have been Maria. 77 00:04:12,059 --> 00:04:16,019 Suze: Don't be, isn't it? Don't be afraid. Yeah, so hey Maria, 78 00:04:16,260 --> 00:04:16,459 Suze: don't 79 00:04:16,459 --> 00:04:16,809 Suze: be afraid. 80 00:04:17,178 --> 00:04:20,540 KT: All right, so hello Suze and KT. I'm a 70 81 00:04:20,540 --> 00:04:25,149 KT: year old retired female. I have a whole life insurance 82 00:04:25,149 --> 00:04:29,019 KT: policy I bought two years ago just so my two 83 00:04:29,019 --> 00:04:33,859 KT: children will have a little something upon my passing along 84 00:04:33,859 --> 00:04:35,488 KT: with a small 401k. 85 00:04:36,220 --> 00:04:45,738 KT: My annual premium is $2,569 for a $50,000 insurance policy 86 00:04:45,738 --> 00:04:50,019 KT: with Mutual of Omaha. There are no paid dividends. Is 87 00:04:50,019 --> 00:04:54,899 KT: there something better or is this a good policy? So she's... 88 00:04:54,899 --> 00:04:58,619 KT: listen to this again. I keep doubting if this is 89 00:04:58,619 --> 00:05:01,700 KT: the best thing for the money. She said I could 90 00:05:01,700 --> 00:05:05,489 KT: put the premium into my 401k if that makes more sense. 91 00:05:06,130 --> 00:05:08,109 KT: So you should see Suze's face. 92 00:05:08,109 --> 00:05:11,910 Suze: Well, I, my face looks like this because I answered 93 00:05:11,910 --> 00:05:12,700 Suze: her directly. 94 00:05:12,790 --> 00:05:15,039 KT: Oh, so would you tell her to do? 95 00:05:15,799 --> 00:05:21,109 Suze: I told Jude, let's not worry about the kids. You're 96 00:05:21,109 --> 00:05:27,950 Suze: 70 years of age. You are four years younger than me, OK? 97 00:05:28,019 --> 00:05:32,670 Suze: You are still young. Hopefully you have vitality and you 98 00:05:32,670 --> 00:05:35,019 Suze: have a lot of living to do yet. 99 00:05:35,549 --> 00:05:40,579 Suze: So can we just start thinking about ourselves versus our kids? 100 00:05:40,579 --> 00:05:44,970 Suze: Really everybody, if you pass something along to them, OK, 101 00:05:45,220 --> 00:05:48,690 Suze: but the greatest thing you can pass along to them, Jude, 102 00:05:48,940 --> 00:05:54,419 Suze: is them seeing that their mother is living life. Not, oh, look, 103 00:05:54,500 --> 00:05:58,049 Suze: we got this money, but my mom didn't do anything. 104 00:05:58,299 --> 00:06:00,609 Suze: She was miserable or whatever it may be. 105 00:06:01,170 --> 00:06:04,849 Suze: So can we just change how you think? What I 106 00:06:04,850 --> 00:06:08,238 Suze: showed her was you can keep this if you want, 107 00:06:08,649 --> 00:06:12,769 Suze: or if you simply took the 2,569 and you invested 108 00:06:12,769 --> 00:06:15,170 Suze: it for 10 years at an average rate of like 109 00:06:15,170 --> 00:06:19,118 Suze: 8 or 10%, you'd have about $45,000 for 20 years, 110 00:06:19,130 --> 00:06:22,209 Suze: you'd have about 160 some odd thousand. You'd have far 111 00:06:22,209 --> 00:06:23,769 Suze: more to leave them, 112 00:06:24,730 --> 00:06:29,489 Suze: if you live your normal lifespan than if you just 113 00:06:29,488 --> 00:06:33,118 Suze: have this policy, so yeah, you can do better things 114 00:06:33,119 --> 00:06:37,850 Suze: with it than that. However, never cancel an insurance policy 115 00:06:37,850 --> 00:06:43,549 Suze: unless you know you are perfectly healthy, period. All right. 116 00:06:44,450 --> 00:06:47,690 Suze: You see, everybody, wait, let me just say something here. 117 00:06:48,790 --> 00:06:51,109 KT: She sneaks in and sees all my selections. 118 00:06:51,390 --> 00:06:54,070 Suze: This last week I went a little crazy as KT 119 00:06:54,070 --> 00:06:57,469 Suze: will tell you right before we left, which is I 120 00:06:57,470 --> 00:07:01,839 Suze: answered so many of your questions personally and all of 121 00:07:01,839 --> 00:07:04,950 Suze: you know that I did when you got them. 122 00:07:05,529 --> 00:07:08,399 Suze: And so I also, by the way, said thank you 123 00:07:08,869 --> 00:07:12,269 Suze: to hopefully all of you that sent in what the 124 00:07:12,269 --> 00:07:15,429 Suze: name or the subtitle of the Women and Money podcast 125 00:07:15,429 --> 00:07:17,989 Suze: should be. There are a few that we like a 126 00:07:17,989 --> 00:07:19,470 Suze: whole lot, right KT? 127 00:07:19,630 --> 00:07:21,549 KT: Uh, again, there's many that we like. 128 00:07:21,549 --> 00:07:25,019 Suze: So we'll pick one. We'll see, right? But you know, 129 00:07:25,070 --> 00:07:27,160 Suze: I sent every one of them back a little thank 130 00:07:27,160 --> 00:07:28,350 Suze: you note, and they went. 131 00:07:28,799 --> 00:07:29,649 KT: Whoa. 132 00:07:30,160 --> 00:07:33,709 Suze: So anyway, there you go. So if you have a question, 133 00:07:33,920 --> 00:07:39,679 Suze: write in to ask Suzi podcast@gmail.com. You never know when 134 00:07:39,679 --> 00:07:42,829 Suze: KT will choose it, but you never know when I'll 135 00:07:42,829 --> 00:07:47,559 Suze: ask you directly. However, keep it short. Go on, KT. 136 00:07:47,720 --> 00:07:50,880 KT: OK, this next question is from Leslie, and I think 137 00:07:50,880 --> 00:07:51,559 KT: Leslie needs 138 00:07:51,619 --> 00:07:55,809 KT: to have a little talk with the in-laws ready? Loyal 139 00:07:55,809 --> 00:08:00,130 KT: listener for over a year here. My brother-in-law is in 140 00:08:00,130 --> 00:08:07,239 KT: money trouble. He owes $200,000 with a 12% annual interest 141 00:08:07,239 --> 00:08:11,809 KT: in an unconventional loan that can be paid in as 142 00:08:11,809 --> 00:08:17,170 KT: little or as long as possible, and then she wrote, sketchy, 143 00:08:17,209 --> 00:08:17,920 KT: I know. 144 00:08:19,029 --> 00:08:22,179 KT: He's not good with money. When it says unconventional loans. 145 00:08:22,190 --> 00:08:26,809 KT: Something's a little awry. Suze, I originally thought a HELOC 146 00:08:26,809 --> 00:08:30,549 KT: loan was a good idea, but they're at 18% where 147 00:08:30,549 --> 00:08:33,709 KT: he is. I believe he should sell his house, which 148 00:08:33,710 --> 00:08:37,989 KT: is worth about 5 or $600,000. Get out of this 149 00:08:37,989 --> 00:08:41,510 KT: mess once and for all and start fresh. He has 150 00:08:41,510 --> 00:08:45,228 KT: a family. They could rent or live with relatives to 151 00:08:45,229 --> 00:08:48,700 KT: truly save up and get ahead. What do you think? 152 00:08:49,429 --> 00:08:52,830 KT: So she wants, she wants some tips on how to 153 00:08:52,830 --> 00:08:53,900 KT: talk to him. 154 00:08:54,309 --> 00:08:57,099 Suze: No, she wants a tip on what he should do. 155 00:08:57,869 --> 00:09:02,478 Suze: And then hopefully she'll say, you know what, brother-in-law, you 156 00:09:02,479 --> 00:09:05,429 Suze: need to listen to Suze on the Women and Money 157 00:09:05,429 --> 00:09:08,108 Suze: podcast and listen to what she thinks you should do. 158 00:09:08,989 --> 00:09:12,380 Suze: Leslie and brother-in-law in case he's listening. 159 00:09:13,539 --> 00:09:16,409 Suze: All right, I get you owe 200,000. 160 00:09:17,219 --> 00:09:20,478 Suze: But the goal is not to just get out of 161 00:09:20,479 --> 00:09:21,239 Suze: this debt. 162 00:09:22,010 --> 00:09:26,419 Suze: Because if we can't figure out why you got into 163 00:09:26,419 --> 00:09:30,280 Suze: this debt to begin with, you're just going to get 164 00:09:30,280 --> 00:09:35,190 Suze: into it all over again. Was it a gambling problem? 165 00:09:35,820 --> 00:09:39,500 Suze: What did it come from and why did you accumulate 166 00:09:39,500 --> 00:09:44,059 Suze: it and why is it at such a high interest rate? 167 00:09:44,630 --> 00:09:47,530 Suze: Now Leslie, you say that you think that a HELOC would 168 00:09:47,530 --> 00:09:50,729 Suze: have been a good idea, but they're at 18% where 169 00:09:50,729 --> 00:09:54,849 Suze: he is. No, they're at 18% because his FICO score 170 00:09:54,849 --> 00:09:58,929 Suze: is so low that for anybody to even lend money 171 00:09:58,929 --> 00:10:02,450 Suze: on a house that has equity to somebody who is 172 00:10:02,450 --> 00:10:06,890 Suze: irresponsible with paying money back, that's when they raise the 173 00:10:06,890 --> 00:10:11,329 Suze: interest rate. So another danger sign. So no, I would 174 00:10:11,330 --> 00:10:13,929 Suze: not number one, take out a HELOC. 175 00:10:14,229 --> 00:10:19,299 Suze: And number two, I would not sell the house to 176 00:10:19,299 --> 00:10:24,700 Suze: pay off this debt. Why? Because this debt, even though 177 00:10:24,700 --> 00:10:29,939 Suze: it may be sketchy, may be an unsecured debt, which 178 00:10:29,940 --> 00:10:33,849 Suze: means he can't pay it. He can't do whatever. They 179 00:10:33,849 --> 00:10:36,859 Suze: can't take his house. They can't take something. 180 00:10:37,669 --> 00:10:41,869 Suze: Like what kind of debt is this? If you sell 181 00:10:41,869 --> 00:10:46,520 Suze: the house, you pay off the debt now they rent 182 00:10:46,520 --> 00:10:49,830 Suze: or do whatever they have, you know, 300,000 or whatever 183 00:10:49,830 --> 00:10:53,719 Suze: they have in equity in that house. He's going to 184 00:10:53,719 --> 00:10:56,309 Suze: blow it before you know it. Then they won't even 185 00:10:56,309 --> 00:10:59,030 Suze: have a home to live in. So therefore. 186 00:10:59,479 --> 00:11:01,780 Suze: We got to figure out how did he get into 187 00:11:01,780 --> 00:11:05,130 Suze: this debt. Why hasn't he been able to pay it off? 188 00:11:05,380 --> 00:11:09,390 Suze: What's really going on with him? So rather than giving 189 00:11:09,390 --> 00:11:14,250 Suze: him financial advice, you need to start talking with him 190 00:11:14,820 --> 00:11:18,460 Suze: in terms of personal advice as to what the hell 191 00:11:18,460 --> 00:11:20,530 Suze: is going on with you and why. 192 00:11:21,210 --> 00:11:25,559 Suze: 'Cause until you figure that out, you cannot solve this. 193 00:11:25,809 --> 00:11:29,359 Suze: How many times have I said you can never solve 194 00:11:29,359 --> 00:11:34,929 Suze: a financial problem with money, and this man has a 195 00:11:34,929 --> 00:11:39,280 Suze: problem with money, period. KT, next question. 196 00:11:39,330 --> 00:11:39,968 KT: All right. 197 00:11:40,309 --> 00:11:41,169 KT: So next question... 198 00:11:41,500 --> 00:11:43,059 Suze: you weren't expecting that, were you? 199 00:11:43,299 --> 00:11:45,299 KT: No, I actually thought you were going to say to 200 00:11:45,299 --> 00:11:48,339 KT: sell the house, but it is true. First of all, 201 00:11:48,460 --> 00:11:54,380 KT: an unconventional loan, hmm. That to me was the big 202 00:11:54,380 --> 00:11:58,900 KT: red flag, unconventional loan. He better fess up and tell 203 00:11:58,900 --> 00:11:59,380 KT: the truth. 204 00:11:59,455 --> 00:12:04,465 KT: Yeah, first to himself. All right, next question is from Bryant, 205 00:12:04,505 --> 00:12:06,964 KT: and Bryant says, Hi, Suze, my wife and I are 206 00:12:06,965 --> 00:12:11,723 KT: both 45 with two kids, nine and five. We have 207 00:12:11,724 --> 00:12:15,924 KT: some questions about getting an estate plan together. I'm currently 208 00:12:15,924 --> 00:12:18,444 KT: working in the New York City school system. 209 00:12:18,750 --> 00:12:23,150 KT: And my wife is a homemaker. Should something happen to us, 210 00:12:23,400 --> 00:12:25,599 KT: how can we set up our kids so that they 211 00:12:25,599 --> 00:12:29,559 KT: can be financially stable? What type of trusts are out 212 00:12:29,559 --> 00:12:33,349 KT: there so that we can provide them with income? Mhm. 213 00:12:34,000 --> 00:12:37,619 KT: So there you go. I think they don't have a 214 00:12:37,619 --> 00:12:39,358 KT: real trust... they need must have documents end of story. 215 00:12:39,820 --> 00:12:39,828 Suze: No they don't. 216 00:12:39,828 --> 00:12:39,830 KT: Why? 217 00:12:42,799 --> 00:12:45,200 Suze: They do, but they need something more than that, KT (Suze makes the wrong answer sound). 218 00:12:47,770 --> 00:12:48,530 KT: All right, sorry, I got that quizzy wrong. 219 00:12:49,090 --> 00:12:50,159 Suze: Got that quizzy wrong 220 00:12:51,809 --> 00:12:56,859 Suze: Listen, Bryant, you're both 45 and you have two minor children, 221 00:12:57,210 --> 00:13:01,089 Suze: so it's true that you need to protect them. Now 222 00:13:01,090 --> 00:13:04,840 Suze: you do not say in here that you own a home. 223 00:13:05,049 --> 00:13:08,960 Suze: It doesn't really say that you own anything, except these kids. 224 00:13:09,559 --> 00:13:12,429 Suze: And what you want to know is how do you 225 00:13:12,429 --> 00:13:15,789 Suze: protect these kids? So the very first thing that you 226 00:13:15,789 --> 00:13:20,549 Suze: should do is get a term life insurance policy on 227 00:13:20,549 --> 00:13:24,299 Suze: both you and your wife because even though you may 228 00:13:24,299 --> 00:13:27,190 Suze: have some insurance with where you work. 229 00:13:27,919 --> 00:13:31,479 Suze: It's probably one year's salary, so it's not enough to 230 00:13:31,479 --> 00:13:35,000 Suze: really set them up, and at 45, if you got 231 00:13:35,000 --> 00:13:38,280 Suze: a 20 year level term policy, assuming that you are 232 00:13:38,280 --> 00:13:41,640 Suze: both healthy, you could get 1 million, 2 million on 233 00:13:41,640 --> 00:13:42,989 Suze: each of you or more. 234 00:13:44,080 --> 00:13:47,939 Suze: And then if something happened to one of you, the 235 00:13:47,940 --> 00:13:51,049 Suze: other would actually be protected. If something happened to both 236 00:13:51,049 --> 00:13:56,140 Suze: of you, then your kids would be protected, especially if 237 00:13:56,140 --> 00:13:58,539 Suze: you left that policy to a trust. Now this is 238 00:13:58,539 --> 00:14:00,929 Suze: where KT is correct. 239 00:14:01,760 --> 00:14:05,919 Suze: Ding ding ding ding. You should have, forget about the 240 00:14:05,919 --> 00:14:10,119 Suze: kids for a second. You should have for yourselves a 241 00:14:10,119 --> 00:14:13,479 Suze: living revocable trust, an advanced directive, a durable power of 242 00:14:13,479 --> 00:14:16,559 Suze: attorney for health care, as well as a financial power 243 00:14:16,559 --> 00:14:21,789 Suze: of attorney. You really need to look into the must-have docs. 244 00:14:21,960 --> 00:14:24,119 Suze: Go to musthavedocs.com 245 00:14:24,840 --> 00:14:29,950 Suze: and check them out. They're $99 for $2,500 worth of 246 00:14:29,950 --> 00:14:31,789 Suze: state of the art documents that are good in all 247 00:14:31,789 --> 00:14:34,950 Suze: 50 states. You can update them whenever you want. You 248 00:14:34,950 --> 00:14:37,349 Suze: can share them with your other members of the family, 249 00:14:37,429 --> 00:14:41,510 Suze: whatever it may be. Anyway, you need to do that 250 00:14:41,510 --> 00:14:45,429 Suze: to number one, protect yourselves in case something happens. You 251 00:14:45,429 --> 00:14:49,049 Suze: never know what can happen, but really, if you have 252 00:14:49,049 --> 00:14:50,340 Suze: that in place. 253 00:14:51,099 --> 00:14:56,500 Suze: Then maybe the trust could be the secondary beneficiary on 254 00:14:56,500 --> 00:15:00,679 Suze: your retirement accounts. Remember, your spouse is always the primary 255 00:15:00,679 --> 00:15:05,539 Suze: beneficiary on your retirement accounts, but the trust could be 256 00:15:05,539 --> 00:15:09,739 Suze: the secondary beneficiary where it would say how the kids 257 00:15:09,739 --> 00:15:13,500 Suze: are taken care of because kids can't inherit money. 258 00:15:14,659 --> 00:15:19,400 Suze: They're minors. So therefore, if you want to make sure 259 00:15:19,400 --> 00:15:23,989 Suze: that they're set up financially in case something happens to you, 260 00:15:24,130 --> 00:15:28,229 Suze: but somebody is in charge of it until they're adults 261 00:15:28,229 --> 00:15:30,650 Suze: and maybe you'll even set it up depending on how 262 00:15:30,650 --> 00:15:33,890 Suze: much insurance or whatever you have in there, maybe it 263 00:15:33,890 --> 00:15:37,130 Suze: is set up so that they don't get this money 264 00:15:37,130 --> 00:15:42,890 Suze: until they're 25, 35, 45 because you need to be 265 00:15:42,890 --> 00:15:43,840 Suze: an adult, 266 00:15:44,239 --> 00:15:48,380 Suze: in every possible way to handle money. All right, KT. 267 00:15:49,440 --> 00:15:52,940 KT: OK, next question is from Robert. Hi, Suze. We're in 268 00:15:52,940 --> 00:15:56,229 KT: retirement with some new income from an apartment we are 269 00:15:56,229 --> 00:16:00,989 KT: renting out. Besides that, our income is Social Security and 270 00:16:00,989 --> 00:16:04,950 KT: our investments. We do have an emergency fund enough for 271 00:16:04,950 --> 00:16:09,150 KT: about 10 months of expenses, but we're concerned about the 272 00:16:09,150 --> 00:16:10,590 KT: possibility of a real 273 00:16:10,974 --> 00:16:15,494 KT: crash and are wondering if we should take 50% of 274 00:16:15,494 --> 00:16:20,885 KT: our retirement investments and put it somewhere able to withstand, ready? 275 00:16:20,885 --> 00:16:26,965 KT: A 1929 or a 2008 level crash, Robert and Liz, 276 00:16:27,174 --> 00:16:30,205 KT: this is not the first time I've received emails like this. 277 00:16:30,375 --> 00:16:32,335 KT: People are getting a little nervous. 278 00:16:32,775 --> 00:16:37,375 Suze: So first, Robert and Liz, let me say this about 2008. 279 00:16:37,974 --> 00:16:40,125 Suze: That crash happened, 280 00:16:40,460 --> 00:16:46,609 Suze: because banks were lending on homes that were under water, 281 00:16:46,890 --> 00:16:50,969 Suze: no money down, it was so crooked how money was 282 00:16:50,969 --> 00:16:55,969 Suze: being used back then by the financial institutions, and one 283 00:16:55,969 --> 00:16:59,330 Suze: bank was selling a loan to another bank. They didn't 284 00:16:59,330 --> 00:17:02,330 Suze: care if you qualified. It was no money down. It 285 00:17:02,330 --> 00:17:03,500 Suze: was horrific. 286 00:17:04,439 --> 00:17:08,180 Suze: And that led to the crash. That's not where we 287 00:17:08,180 --> 00:17:12,770 Suze: are right now. Nobody's doing that anymore, so we're solid 288 00:17:12,770 --> 00:17:16,968 Suze: on that level, all right, so stop thinking that way. 289 00:17:17,140 --> 00:17:22,169 Suze: 1929 was a whole other story that's not gonna happen 290 00:17:22,170 --> 00:17:25,579 Suze: at this point in time again. So just get that 291 00:17:25,579 --> 00:17:29,050 Suze: out of your head. I don't think we're ever going 292 00:17:29,050 --> 00:17:33,300 Suze: to have a crash like those crashes. However, 293 00:17:33,719 --> 00:17:37,750 Suze: that doesn't mean that the market can't go down significantly 294 00:17:38,119 --> 00:17:42,599 Suze: because something else happens and we don't know what that 295 00:17:42,599 --> 00:17:46,599 Suze: could be, but that could happen no matter what. So 296 00:17:46,599 --> 00:17:49,050 Suze: if you are afraid. 297 00:17:49,640 --> 00:17:55,819 Suze: You're concerned for whatever reason. Nothing I say should make 298 00:17:55,819 --> 00:18:00,069 Suze: you necessarily feel better because the truth is I don't know. 299 00:18:00,339 --> 00:18:03,579 Suze: Do we have another September 11th? Do we have a 300 00:18:03,579 --> 00:18:08,540 Suze: cyber attack? What can happen of the unknown that could 301 00:18:08,540 --> 00:18:13,119 Suze: really cause everything to freeze up or do whatever? Therefore, 302 00:18:13,380 --> 00:18:16,089 Suze: you need to do what you need to do to 303 00:18:16,089 --> 00:18:18,699 Suze: make yourself feel safe and sound. 304 00:18:19,239 --> 00:18:22,569 Suze: Because the goal of money is for you to be secure, 305 00:18:22,859 --> 00:18:25,619 Suze: even though I still think these markets and everything have 306 00:18:25,619 --> 00:18:29,500 Suze: a long way to go. Another year or so, especially 307 00:18:29,500 --> 00:18:32,420 Suze: in certain areas, I do not think that we are 308 00:18:32,420 --> 00:18:36,260 Suze: in an AI bubble by any means, and I could 309 00:18:36,260 --> 00:18:40,339 Suze: go on and on, but what's important here is you 310 00:18:40,339 --> 00:18:43,579 Suze: have to honor your own thoughts. 311 00:18:44,060 --> 00:18:48,839 Suze: You have to listen to your own fear about things 312 00:18:49,209 --> 00:18:54,379 Suze: so only you know what's right for you and whatever 313 00:18:54,380 --> 00:18:59,770 Suze: decision you make, don't ever spend time thinking about, did 314 00:18:59,770 --> 00:19:05,849 Suze: I make the right decision, make the decision you made right, period. 315 00:19:06,599 --> 00:19:09,869 Suze: KT, tell everybody where we got that from my last line. 316 00:19:10,239 --> 00:19:14,399 KT: So Suze just quoted a Dr. Ellen Langer, who was 317 00:19:14,400 --> 00:19:18,079 KT: a guest on the Mel Robbins podcast. And we were 318 00:19:18,079 --> 00:19:21,438 KT: listening to it. We like to take our infrared saunas 319 00:19:21,439 --> 00:19:24,800 KT: at night and we listen to books or podcasts 320 00:19:24,854 --> 00:19:27,805 KT: or whatever we think we could learn from. It's very 321 00:19:27,805 --> 00:19:32,563 KT: relaxing and we just love the thinking of this doctor. 322 00:19:32,604 --> 00:19:36,125 KT: It's called the Mindful Body. So listen to it if 323 00:19:36,125 --> 00:19:36,925 KT: you can. It's great. 324 00:19:36,925 --> 00:19:43,145 Suze: Actually, KT, we learned two really important things from the doctor. 325 00:19:43,719 --> 00:19:46,619 Suze: The first one was what I just quoted you, everybody, 326 00:19:46,699 --> 00:19:51,889 Suze: which is don't question whether you made the right decision. 327 00:19:52,140 --> 00:19:56,319 Suze: Make every decision you make right. We thought that was brilliant. 328 00:19:56,579 --> 00:20:01,099 Suze: And the second one that we loved among others, was 329 00:20:01,099 --> 00:20:05,260 Suze: rather than adding more years in your life, add more 330 00:20:05,260 --> 00:20:07,810 Suze: life to your years. 331 00:20:08,250 --> 00:20:11,209 Suze: And KT and I especially at our age right now, 332 00:20:11,550 --> 00:20:16,030 Suze: really love that one that one. So that's where that 333 00:20:16,030 --> 00:20:16,150 Suze: came from. 334 00:20:16,380 --> 00:20:20,410 KT: Yeah, Doctor Langer, that's our favorite, and we live by that. 335 00:20:20,500 --> 00:20:22,510 KT: We add life to our years. 336 00:20:22,790 --> 00:20:23,649 Suze: All right, go on. 337 00:20:24,010 --> 00:20:24,780 KT: All right, so. 338 00:20:25,469 --> 00:20:31,339 KT: This next question, I currently have $515,000 invested in a 339 00:20:31,339 --> 00:20:35,650 KT: taxable brokerage account all in the Fidelity Total Stock market 340 00:20:35,650 --> 00:20:39,579 KT: index fund. I'm 59 years old, and I think it's 341 00:20:39,579 --> 00:20:43,089 KT: time to cash this position out and put the money 342 00:20:43,089 --> 00:20:44,859 KT: in a safer investment. 343 00:20:45,380 --> 00:20:48,930 KT: See, Suze, people are getting skittish, John said. I spoke 344 00:20:48,930 --> 00:20:52,938 KT: to my accountant. He advised me, ready? To cash half 345 00:20:52,939 --> 00:20:57,219 KT: of the fund out this December and the balance right 346 00:20:57,219 --> 00:21:00,738 KT: after the first of January. My question is, do you 347 00:21:00,739 --> 00:21:05,420 KT: have any suggestions on safer investments other than equities? 348 00:21:06,150 --> 00:21:09,739 KT: And there you go. So John gave you a summary 349 00:21:09,739 --> 00:21:14,579 KT: of what he's got, but I think again people are nervous, Suze. 350 00:21:15,449 --> 00:21:18,079 KT: A lot of um jittery people out there. 351 00:21:18,530 --> 00:21:20,680 Suze: Well, John, I have to tell you. 352 00:21:21,339 --> 00:21:23,359 Suze: I don't think the advice that you got from your 353 00:21:23,359 --> 00:21:27,119 Suze: accountant is the best advice at all. And here is 354 00:21:27,119 --> 00:21:31,430 Suze: the reason why, KT just gave me your email. 355 00:21:32,160 --> 00:21:36,670 Suze: The $515,000 everybody, listen to me closely. 356 00:21:37,449 --> 00:21:44,520 Suze: The $515,000 that John has invested is in a taxable 357 00:21:44,520 --> 00:21:50,680 Suze: brokerage account in the total stock market index. OK. Over 358 00:21:50,680 --> 00:21:54,829 Suze: the past year, two or three that has gone up considerably. 359 00:21:55,439 --> 00:22:00,400 Suze: Even if he sells half this year and half next year, 360 00:22:01,199 --> 00:22:07,939 Suze: he's gonna owe taxes on that money. That means his 361 00:22:07,939 --> 00:22:12,819 Suze: taxes that he paid is no longer available for him 362 00:22:12,819 --> 00:22:16,979 Suze: to compound or invest. It's out because he's paid taxes 363 00:22:16,979 --> 00:22:17,449 Suze: on it. 364 00:22:17,930 --> 00:22:21,530 Suze: Now he's reinvesting that money in something that's also going 365 00:22:21,530 --> 00:22:27,609 Suze: to be taxable. What could he do instead? John, you 366 00:22:27,609 --> 00:22:33,290 Suze: have in your 401k, not a Roth 401k, in your 367 00:22:33,290 --> 00:22:40,050 Suze: traditional 401k, $450,000. 368 00:22:40,619 --> 00:22:45,150 Suze: If it were me advising you, I would have told you, listen, 369 00:22:45,239 --> 00:22:49,400 Suze: if you want to become more conservative, you have to 370 00:22:49,400 --> 00:22:51,630 Suze: look at your money as a whole. 371 00:22:52,750 --> 00:22:55,829 Suze: Where can you take money out that you don't have 372 00:22:55,829 --> 00:22:57,310 Suze: to pay taxes on? 373 00:22:58,050 --> 00:23:00,718 Suze: And in the future it would even help you more 374 00:23:00,719 --> 00:23:04,829 Suze: if it didn't grow that much, and that would be 375 00:23:04,829 --> 00:23:08,589 Suze: your 401k because when you go to take money out 376 00:23:08,589 --> 00:23:12,270 Suze: of your 401k, number one, it's going to be ordinary 377 00:23:12,270 --> 00:23:19,010 Suze: income taxed. Next you're going to owe RMDs on that money. Therefore, 378 00:23:19,069 --> 00:23:21,989 Suze: if I were you, I would come out of the 379 00:23:21,989 --> 00:23:24,819 Suze: market with the 401k. 380 00:23:25,709 --> 00:23:28,660 Suze: If you're going to quit your job, OK, or whatever, 381 00:23:28,790 --> 00:23:32,180 Suze: you can then do an IRA roll over with that money, 382 00:23:32,270 --> 00:23:35,859 Suze: no taxes. Put it in treasuries, do whatever you want 383 00:23:35,859 --> 00:23:38,630 Suze: with it to keep it safe and sound, so that 384 00:23:38,630 --> 00:23:41,619 Suze: it's good, but guess what? You never pay taxes on it. 385 00:23:42,520 --> 00:23:47,609 Suze: And there you go, you accomplished the diversification but didn't 386 00:23:47,609 --> 00:23:51,530 Suze: have to pay taxes and therefore you could just let 387 00:23:51,530 --> 00:23:57,280 Suze: the 515,000 in the total stock market index ride because 388 00:23:57,280 --> 00:23:59,929 Suze: it's going to go up most likely. It's a great 389 00:23:59,930 --> 00:24:04,040 Suze: place to be diversified. You're doing exactly what you should do. 390 00:24:04,040 --> 00:24:08,280 Suze: The rest of your money, the Roth IRA, fabulous. 391 00:24:09,060 --> 00:24:11,650 Suze: You don't have to worry about taxes there, but if 392 00:24:11,650 --> 00:24:14,169 Suze: it were me, I would use the money in the 393 00:24:14,170 --> 00:24:18,689 Suze: 401k plan and not do what your accountant told you 394 00:24:18,689 --> 00:24:20,000 Suze: to do. All right. 395 00:24:20,290 --> 00:24:24,680 KT: So this next question is from Orhan. It's an interesting name, 396 00:24:24,729 --> 00:24:25,930 KT: isn't it? Orhan. 397 00:24:26,599 --> 00:24:29,479 KT: Been a listener for years and thank you both for 398 00:24:29,479 --> 00:24:33,599 KT: all the knowledge you give us. I turned 73 on 399 00:24:33,599 --> 00:24:39,550 KT: the last day of 2026, December 31st. Wow, that's a new... 400 00:24:39,640 --> 00:24:40,400 Suze: This is going to be your 401 00:24:40,400 --> 00:24:41,150 Suze: pop quizzy. 402 00:24:41,599 --> 00:24:48,280 KT: All right. Is my RMD calculated on the total traditional 403 00:24:48,280 --> 00:24:54,728 KT: IRA's value as of December 31, 2025 and 404 00:24:55,329 --> 00:24:59,409 KT: can I or must I access my RMD throughout the 405 00:24:59,410 --> 00:25:05,770 KT: entire 2026 year even though I don't turn 73 until 406 00:25:05,770 --> 00:25:08,729 KT: the last day of the year? I don't know what 407 00:25:08,729 --> 00:25:13,680 KT: to take out. Two RMDs in 2027. Thank you. 408 00:25:14,449 --> 00:25:15,489 Suze: Pop quizzy. 409 00:25:17,839 --> 00:25:22,688 KT: All right, so, he's turning 73 on the last day of December. 410 00:25:23,219 --> 00:25:25,380 KT: I think he only needs to take one RMD. 411 00:25:25,380 --> 00:25:31,729 Suze: But he's not turning 73 to the last day of 2026. 412 00:25:32,540 --> 00:25:38,530 Suze: Can he? The first question, can he before he turns 413 00:25:38,530 --> 00:25:41,419 Suze: 73 anytime in that year, 414 00:25:42,790 --> 00:25:47,430 Suze: can he take out his RMD before he turns 73 415 00:25:47,430 --> 00:25:53,739 Suze: to satisfy the RMD for 2026? Yes or no? 416 00:25:55,239 --> 00:25:57,939 KT: Ohh. 417 00:25:59,849 --> 00:26:03,689 KT: All right, KT, this is gonna be a guess. I'm guessing. 418 00:26:04,459 --> 00:26:06,659 KT: I think that he had, he can pass. I think 419 00:26:06,660 --> 00:26:08,619 KT: you get a little grace period and he can do 420 00:26:08,619 --> 00:26:09,760 KT: it in 27. 421 00:26:10,219 --> 00:26:16,030 Suze: If he does it in '27, however, because he turned 73 422 00:26:16,030 --> 00:26:17,530 Suze: in '26... 423 00:26:17,530 --> 00:26:19,219 KT: On December 31st on the 424 00:26:19,219 --> 00:26:19,839 KT: last day. 425 00:26:19,839 --> 00:26:23,689 Suze: If he takes it out in '27, he's gonna have 426 00:26:23,689 --> 00:26:25,060 Suze: to take out two, 427 00:26:25,680 --> 00:26:30,359 Suze: in '27, one for 26 and one for '27. So 428 00:26:30,359 --> 00:26:38,119 Suze: now he subjected himself to two RMDs in 2027. Is 429 00:26:38,119 --> 00:26:40,589 Suze: that his only alternative? Yes or no? 430 00:26:41,709 --> 00:26:43,540 KT: I don't think it's his only alternative. 431 00:26:43,750 --> 00:26:45,589 Suze: So what else could he do? He has to take 432 00:26:45,589 --> 00:26:46,329 Suze: two out. 433 00:26:46,699 --> 00:26:47,140 KT: Yeah, 434 00:26:47,900 --> 00:26:48,250 Suze: So... (Suze makes the wrong answer sound) 435 00:26:49,099 --> 00:26:51,379 KT: I think, no, I said you get a grace period. 436 00:26:51,660 --> 00:26:53,030 Suze: You don't get a grace period. 437 00:26:53,770 --> 00:26:54,452 Suze: You don't? 438 00:26:54,452 --> 00:26:54,589 Suze: No. 439 00:26:55,140 --> 00:26:57,290 KT: So, so what did I do wrong? 440 00:26:57,780 --> 00:27:00,099 Suze: You don't know the rules, and I'm gonna tell you 441 00:27:00,099 --> 00:27:03,339 Suze: the rules. That's all you did wrong, my love. So 442 00:27:03,339 --> 00:27:04,849 Suze: listen to me, everybody. 443 00:27:06,229 --> 00:27:12,550 Suze: Your RMDs are based on the value of your account 444 00:27:12,550 --> 00:27:17,189 Suze: on December 31st, the year before 445 00:27:17,920 --> 00:27:21,800 Suze: you turn 73, so in this case it will be 446 00:27:21,800 --> 00:27:28,760 Suze: based on December 31st, 2025. Since it's based on that 447 00:27:28,760 --> 00:27:32,959 Suze: amount and that's not going to change because that is 448 00:27:32,959 --> 00:27:37,089 Suze: the amount he is allowed to take out an RMD 449 00:27:37,734 --> 00:27:44,395 Suze: any time during 2026, even though when he takes it out, 450 00:27:44,604 --> 00:27:48,284 Suze: he may not be 73 yet, but because he's going 451 00:27:48,285 --> 00:27:53,405 Suze: to be 73 in 2026, the last day, he can 452 00:27:53,405 --> 00:27:57,604 Suze: take one RMD out in 2026. 453 00:27:58,569 --> 00:28:03,109 Suze: And another one then when he wants to in 2027 454 00:28:03,310 --> 00:28:07,659 Suze: and that one will be based on the ending value 455 00:28:07,660 --> 00:28:13,909 Suze: of his account on December 31, 2026. That's how he 456 00:28:13,910 --> 00:28:16,469 Suze: would do it just so you know, you never want 457 00:28:16,469 --> 00:28:21,329 Suze: to subject yourself, KT, to two RMDs. You do not 458 00:28:21,329 --> 00:28:24,829 Suze: listen closely to me, KT, when you take out a 459 00:28:24,829 --> 00:28:26,630 Suze: required minimum distribution. 460 00:28:27,250 --> 00:28:32,159 Suze: You have to take it out by April 1st after 461 00:28:32,160 --> 00:28:37,969 Suze: the year you turn 73, OK? If you do that. 462 00:28:39,030 --> 00:28:42,069 Suze: Doesn't mean that you're postponing the next one, you'll have 463 00:28:42,069 --> 00:28:45,270 Suze: to take out two that year, the one you should 464 00:28:45,270 --> 00:28:48,939 Suze: have taken out for '26 that you postponed till '27. 465 00:28:49,709 --> 00:28:52,089 Suze: And the one that you should have taken out as 466 00:28:52,089 --> 00:28:55,890 Suze: well in '27, so you never ever want to postpone. 467 00:28:56,650 --> 00:28:59,329 Suze: Unless you know you're going to be in a really 0% 468 00:28:59,329 --> 00:29:04,329 Suze: tax bracket, you want to take your RMD in the 469 00:29:04,329 --> 00:29:09,170 Suze: year you turn RMD age. And for those of you 470 00:29:09,170 --> 00:29:12,250 Suze: born 1960 or later, you're not going to have to 471 00:29:12,250 --> 00:29:14,479 Suze: do it till you're 75. 472 00:29:17,349 --> 00:29:19,619 KT: All right, that is a wrap. 473 00:29:19,819 --> 00:29:21,930 Suze: So we hope you enjoyed 474 00:29:22,520 --> 00:29:27,069 Suze: our Ask KT and Suze, anything vacation edition. 475 00:29:27,239 --> 00:29:28,989 KT: Let's go eat some pasta. 476 00:29:29,319 --> 00:29:32,859 Suze: I'm sure we will be at this point in time, right? 477 00:29:33,020 --> 00:29:36,920 Suze: But anyway, there's only one thing that we want you 478 00:29:36,920 --> 00:29:38,359 Suze: to remember when it comes to your. 479 00:29:38,435 --> 00:29:40,265 Suze: Money and what is that KT? 480 00:29:40,364 --> 00:29:43,685 KT: People first, then money, then things. 481 00:29:45,464 --> 00:29:51,454 Suze: Now you stay safe and go to youtube.com/ Suze Orman and subscribe. 482 00:29:51,824 --> 00:29:53,415 Suze: See you soon. Bye-bye.