1 00:00:29,309 --> 00:00:33,598 Robert: April 17, 2025. Welcome to the Women and Money podcast, 2 00:00:33,650 --> 00:00:36,979 Robert: as well as everyone smart enough to listen. Hello again, Robert, 3 00:00:37,049 --> 00:00:40,009 Robert: the producer here and while Suze and KT are taking 4 00:00:40,009 --> 00:00:43,150 Robert: some time off, we're presenting parts of episodes that are 5 00:00:43,150 --> 00:00:45,220 Robert: good to be at the top of your feet again. 6 00:00:46,080 --> 00:00:48,778 Robert: Today we'll hear part of an Ask KT and Suze 7 00:00:48,779 --> 00:00:51,830 Robert: anything from last fall, and well, let's just get right 8 00:00:51,830 --> 00:00:54,119 Robert: into it with KT reading a comment. 9 00:00:54,990 --> 00:00:59,229 KT: I have such a great, great selection of short emails 10 00:00:59,229 --> 00:01:01,590 KT: that I think this might be a rapid fire cause 11 00:01:01,590 --> 00:01:04,029 KT: I'd love to get through them, but the first one. 12 00:01:04,278 --> 00:01:07,588 KT: I'm starting with Suze is from Mike, and this isn't 13 00:01:07,587 --> 00:01:09,619 KT: a question. It's a thank you, but let me share 14 00:01:09,619 --> 00:01:10,148 KT: it with all.. 15 00:01:11,328 --> 00:01:11,647 Suze: You love to start with these thank you's. 16 00:01:12,759 --> 00:01:17,478 KT: So Mike said, Suze, I'm studying for my series 65 exam. 17 00:01:17,587 --> 00:01:18,109 KT: Tell everyone what that is. 18 00:01:18,109 --> 00:01:22,628 Suze: When you study to be a stockbroker or a financial adviser, 19 00:01:22,869 --> 00:01:24,947 Suze: there are certain exams you have to pass so you 20 00:01:24,947 --> 00:01:26,068 Suze: can do stocks and all of. 21 00:01:26,205 --> 00:01:30,235 Suze: That series 65, I believe, is for mutual funds, so 22 00:01:30,235 --> 00:01:31,753 Suze: you have to do all those 23 00:01:31,754 --> 00:01:32,415 KT: They're 24 00:01:32,415 --> 00:01:37,113 KT: not easy. They're very complicated. So he said, I'm reading 25 00:01:37,114 --> 00:01:41,394 KT: the book and listening to the on-demand classes and getting 26 00:01:41,394 --> 00:01:45,714 KT: so confused. Then Susie, I remembered you covered many of 27 00:01:45,714 --> 00:01:47,985 KT: these topics in Suze School. 28 00:01:48,319 --> 00:01:51,029 KT: So he went back and listened. He said things are 29 00:01:51,029 --> 00:01:53,949 KT: now clear. Thank you, thank you, thank you, thank you. 30 00:01:53,989 --> 00:01:57,239 KT: And then Mike said, You know, Suze, you could charge 31 00:01:57,239 --> 00:02:01,230 KT: for your school. It's far better than the online training 32 00:02:01,230 --> 00:02:05,589 KT: I actually paid for. So Mike, we hope you pass 33 00:02:05,589 --> 00:02:07,660 KT: and congrats on your studies. 34 00:02:08,350 --> 00:02:11,190 Suze: You know, I just want to tell everybody, KT about 35 00:02:11,190 --> 00:02:14,549 Suze: series 7 exam. When you first study for it, you 36 00:02:14,550 --> 00:02:17,309 Suze: study for months. It is so hard, I cannot even 37 00:02:17,309 --> 00:02:17,830 Suze: tell you. 38 00:02:18,139 --> 00:02:21,478 Suze: And the very first time I took it I failed. 39 00:02:22,320 --> 00:02:25,669 Suze: I failed, and there were only about 7 people out 40 00:02:25,669 --> 00:02:27,789 Suze: of the entire class. There were a lot of people 41 00:02:27,788 --> 00:02:29,940 Suze: that failed, and I was one of them. 42 00:02:30,410 --> 00:02:34,829 Suze: And that's when I decided I'll never forget saying to myself, 43 00:02:35,100 --> 00:02:37,600 Suze: all right, right, you want to see how much I 44 00:02:37,600 --> 00:02:40,570 Suze: really want to do this if this is a test 45 00:02:40,570 --> 00:02:43,440 Suze: because I always think everything's a test from above, right, 46 00:02:43,520 --> 00:02:45,839 Suze: that if you really want to see how much I 47 00:02:45,839 --> 00:02:48,559 Suze: want to do this and you're testing me, let's see 48 00:02:48,559 --> 00:02:51,000 Suze: what I can do, and I studied because you only 49 00:02:51,000 --> 00:02:55,039 Suze: had one week to study and try to take it again. 50 00:02:55,410 --> 00:02:59,449 Suze: And the second time I obviously passed, but sometimes in 51 00:02:59,449 --> 00:03:02,809 Suze: life when you fail, maybe it's a test to see, 52 00:03:02,899 --> 00:03:05,020 Suze: do you really want to do this or not? And 53 00:03:05,020 --> 00:03:08,728 Suze: if you do, go for it with everything you have. 54 00:03:08,779 --> 00:03:09,139 Suze: All right, 55 00:03:09,179 --> 00:03:13,619 KT: But and Orman never gives up. Yes, I remember that. OK, 56 00:03:13,699 --> 00:03:17,419 KT: my first question is from Karen. I have 3 children 57 00:03:17,419 --> 00:03:22,750 KT: that will inherit my 401k. How is the RMD completed? 58 00:03:23,220 --> 00:03:28,199 KT: Do each contribute a certain amount each year thereafter? How 59 00:03:28,199 --> 00:03:29,639 KT: is this calculated? 60 00:03:29,649 --> 00:03:33,800 Suze: You know, Karen, while that seems like a very simple question. 61 00:03:34,089 --> 00:03:40,679 Suze: It really depends on will the kids be eligible designated beneficiaries, 62 00:03:40,889 --> 00:03:46,024 Suze: or will they be non- eligible designated beneficiaries and it 63 00:03:46,024 --> 00:03:49,625 Suze: will also have to do with have you died on 64 00:03:49,625 --> 00:03:54,054 Suze: or after the RBD date. So all of that has 65 00:03:54,054 --> 00:03:58,024 Suze: to be taken into consideration. What I can tell you 66 00:03:58,024 --> 00:04:01,485 Suze: is this since it's in a 401k. 67 00:04:02,289 --> 00:04:06,130 Suze: You should instruct them that the second this happens, if 68 00:04:06,130 --> 00:04:12,570 Suze: it's still in the 401k to do individual inherited IRAs 69 00:04:12,570 --> 00:04:17,040 Suze: in a brokerage account, that's where you start. And then 70 00:04:17,040 --> 00:04:22,019 Suze: depending on what your situation is, it's really not that hard. 71 00:04:22,089 --> 00:04:24,250 Suze: Just make sure that if the money is still in 72 00:04:24,250 --> 00:04:29,029 Suze: a 401k when you die, that they do inherited IRAs 73 00:04:29,029 --> 00:04:30,409 Suze: at a brokerage firm. 74 00:04:30,988 --> 00:04:32,519 Suze: And by the way, I just want to say one 75 00:04:32,519 --> 00:04:35,489 Suze: other thing to everybody, you really want to save your 76 00:04:35,488 --> 00:04:40,609 Suze: beneficiaries a whole lot of trouble, just do a Roth 77 00:04:40,609 --> 00:04:44,570 Suze: retirement account, Roth Roth Roth, and if everything is in 78 00:04:44,570 --> 00:04:49,118 Suze: a Roth when you die, they're fine. All right, go on. 79 00:04:50,209 --> 00:04:53,899 KT: Zoe, this is long, but I want to read this 80 00:04:53,899 --> 00:04:54,450 KT: because I. 81 00:04:54,829 --> 00:04:58,049 KT: I, we know people in the same situation, so I'm 82 00:04:58,049 --> 00:05:02,700 KT: reading the whole email from Zoe. Hi, Suze, my life 83 00:05:02,700 --> 00:05:07,058 KT: partner and I have been together for 20 years. Remember that, everyone, 84 00:05:07,209 --> 00:05:10,169 KT: 20 years. We're not married, nor do we plan on 85 00:05:10,170 --> 00:05:13,880 KT: getting married. We're buying our first home, a co op 86 00:05:13,880 --> 00:05:18,289 KT: apartment in New York City. We're putting 20% down and 87 00:05:18,290 --> 00:05:21,089 KT: taking out a 30 year fixed mortgage. 88 00:05:21,609 --> 00:05:25,290 KT: While I will be contributing to the down payment, my 89 00:05:25,290 --> 00:05:28,529 KT: partner is putting down most of it and will be 90 00:05:28,529 --> 00:05:31,970 KT: paying the mortgage. He has a great job, and he 91 00:05:31,970 --> 00:05:36,328 KT: can easily handle the payments. We are buying below our 92 00:05:36,329 --> 00:05:40,850 KT: and his means. I recently switched careers and decided to 93 00:05:40,850 --> 00:05:44,489 KT: pursue my dream career as an artist. OK, we all 94 00:05:44,488 --> 00:05:45,970 KT: know what that means, everybody. 95 00:05:46,549 --> 00:05:47,799 Suze: What does it mean KT? 96 00:05:47,799 --> 00:05:50,109 KT: If you're an artist, you're never going to have like 97 00:05:50,109 --> 00:05:54,390 KT: a guaranteed income, so it's going to be very unstable 98 00:05:54,390 --> 00:05:58,549 KT: maybe in the beginning and obviously her partner supports this 99 00:05:58,549 --> 00:06:01,479 KT: now until my, but listen to this, I like how 100 00:06:01,480 --> 00:06:06,230 KT: Zoe is very positive. Until my career takes off, I 101 00:06:06,230 --> 00:06:09,779 KT: will not be able to contribute to the mortgage. Our 102 00:06:09,779 --> 00:06:14,669 KT: title will be a joint tenancy with the right of survivorship. 103 00:06:15,040 --> 00:06:19,099 KT: We have separate bank accounts. My concern is if something 104 00:06:19,100 --> 00:06:22,100 KT: happens to him, I will not be able to pay 105 00:06:22,100 --> 00:06:24,979 KT: the mortgage on my own. I also want to make 106 00:06:24,980 --> 00:06:28,099 KT: sure we have the right to the property if something 107 00:06:28,100 --> 00:06:31,099 KT: happens since we're not married, so. 108 00:06:31,720 --> 00:06:34,350 KT: if we do J T W R O S 109 00:06:34,350 --> 00:06:36,320 Suze: Joint tenancy with right of survivorship. 110 00:06:36,920 --> 00:06:40,510 KT: Do we still need to get a living revocable trust? 111 00:06:40,760 --> 00:06:42,279 Suze: So here's the thing, Zoe, 112 00:06:42,519 --> 00:06:44,230 KT: I just want to say one more thing for those 113 00:06:44,230 --> 00:06:47,119 KT: of you listening. He's in his mid-50s, she's in her 114 00:06:47,119 --> 00:06:48,250 KT: late 40s, so 115 00:06:48,295 --> 00:06:49,203 KT: they're not kids. 116 00:06:49,355 --> 00:06:51,795 Suze: Yeah, here's what I don't understand, Zoe. You have been 117 00:06:51,795 --> 00:06:55,714 Suze: with this person now for 20 years. Why do you 118 00:06:55,714 --> 00:07:01,714 Suze: not want to get married, especially given that you're about 119 00:07:01,714 --> 00:07:04,964 Suze: to become an artist in terms of your living? 120 00:07:05,480 --> 00:07:08,890 Suze: You probably already have already been an artist, but now 121 00:07:08,890 --> 00:07:12,329 Suze: your income is going to possibly drop at least for 122 00:07:12,329 --> 00:07:16,480 Suze: a while. He makes a lot more money than you, 123 00:07:16,730 --> 00:07:20,839 Suze: so later on in life, maybe if you were married, 124 00:07:20,970 --> 00:07:24,329 Suze: you would be able to claim either half of his 125 00:07:24,329 --> 00:07:26,049 Suze: Social Security or if he died. 126 00:07:26,252 --> 00:07:29,433 Suze: For you, because he is older than you, you would 127 00:07:29,433 --> 00:07:33,062 Suze: be able to take over his Social Security. There's also 128 00:07:33,062 --> 00:07:38,072 Suze: so many more benefits I can't even tell you. However, 129 00:07:38,412 --> 00:07:42,312 Suze: whatever that reason may be, so be it. Here's the 130 00:07:42,312 --> 00:07:46,713 Suze: thing with joint tenancy, with right of survivorship, yes, if 131 00:07:46,713 --> 00:07:47,032 Suze: he dies 132 00:07:47,665 --> 00:07:51,656 Suze: you automatically get the house and put in your name. 133 00:07:52,045 --> 00:07:57,175 Suze: Problem is you can't afford it. So therefore, if you're 134 00:07:57,175 --> 00:08:00,726 Suze: doing a 30 year mortgage as you say you are, 135 00:08:01,055 --> 00:08:05,135 Suze: maybe what you should do is get a 20 year 136 00:08:05,135 --> 00:08:10,415 Suze: term insurance policy on him. So if he were to die. 137 00:08:10,869 --> 00:08:13,869 Suze: Then you get enough money to pay off the mortgage 138 00:08:13,869 --> 00:08:17,109 Suze: and be able to keep it just that simple. Why 139 00:08:17,109 --> 00:08:21,709 Suze: 20 years instead of 30, cause most likely 20 years 140 00:08:21,709 --> 00:08:24,470 Suze: from now it still may be affordable for you. You 141 00:08:24,470 --> 00:08:27,579 Suze: have to make sure it's a fixed, a level term policy, 142 00:08:27,869 --> 00:08:31,779 Suze: but by then maybe you could put extra money towards 143 00:08:31,779 --> 00:08:34,830 Suze: the mortgage so that maybe in 20 years it would 144 00:08:34,830 --> 00:08:36,469 Suze: be paid off anyway. 145 00:08:36,890 --> 00:08:41,690 Suze: That's number one. Do you need a trust? No, not 146 00:08:41,690 --> 00:08:45,289 Suze: if he dies. You're fine. The question is, Zoe, what 147 00:08:45,289 --> 00:08:48,049 Suze: if he doesn't die? What if all of a sudden 148 00:08:48,049 --> 00:08:52,010 Suze: now he's in an accident, he is incapacitated. He doesn't 149 00:08:52,010 --> 00:08:55,250 Suze: recognize you. He can't work any more. There is no 150 00:08:55,250 --> 00:08:58,569 Suze: more income coming in from him. And now you have 151 00:08:58,570 --> 00:09:02,330 Suze: to sell the property, and the question is can you? 152 00:09:02,429 --> 00:09:06,739 Suze: Joint tenancy with right of survivorship means you both have 153 00:09:06,739 --> 00:09:10,890 Suze: to sign for it. Therefore, if he's incapacitated and he 154 00:09:10,890 --> 00:09:15,020 Suze: can't sign, you can't sell it. If you had a 155 00:09:15,020 --> 00:09:18,059 Suze: revocable trust with an incapacity clause in it. 156 00:09:18,750 --> 00:09:21,479 Suze: You could sign for him. He could sign for you. 157 00:09:21,770 --> 00:09:25,489 Suze: No problem. So that's one of the reasons you want 158 00:09:25,489 --> 00:09:30,478 Suze: to go to Musthavedocs.com and check it out. All right, KT. 159 00:09:30,770 --> 00:09:32,880 KT: Suze, next question from Bridget. 160 00:09:33,770 --> 00:09:37,940 KT: Is it better to leave a 401k to children or cash? 161 00:09:39,599 --> 00:09:42,590 KT: The kids would say cash. Then she said, I know 162 00:09:42,590 --> 00:09:46,919 KT: the new inheritance rules on 401ks are complicated. Should my 163 00:09:46,919 --> 00:09:51,219 KT: husband and I live off our cash in retirement or 164 00:09:51,219 --> 00:09:56,390 KT: spend down our 401k? And then she said with great joy, 165 00:09:56,719 --> 00:10:00,919 KT: all of their daughters opened Roth's at 21. Our youngest 166 00:10:00,919 --> 00:10:03,150 KT: now 20, opened hers at 18. 167 00:10:03,750 --> 00:10:07,059 Suze: So what happened to Bridget? Well, Bridget, why don't you 168 00:10:07,059 --> 00:10:09,819 Suze: have a Roth 401k? Why don't you convert? Why don't 169 00:10:09,820 --> 00:10:13,380 Suze: you do things like that so that when they do inherit, 170 00:10:13,409 --> 00:10:17,140 Suze: it's not that big of a deal? Absolutely not. You 171 00:10:17,140 --> 00:10:19,530 Suze: are to listen to me and listen to me closely. 172 00:10:20,119 --> 00:10:23,179 Suze: You say in here cause KT just gave this to 173 00:10:23,179 --> 00:10:26,700 Suze: me your email that they opened Roth's at 21 and 174 00:10:26,700 --> 00:10:31,489 Suze: your youngest is now 20. So now they're getting older 175 00:10:31,690 --> 00:10:35,739 Suze: and they'll be fine financially speaking. Why don't you care 176 00:10:35,739 --> 00:10:38,380 Suze: about you and your husband and what you're going to 177 00:10:38,380 --> 00:10:41,440 Suze: do when you get older and what is best for you? 178 00:10:41,502 --> 00:10:46,093 Suze: You and your husband, Bridget in terms of what should 179 00:10:46,093 --> 00:10:48,963 Suze: you do to make the most out of your money. 180 00:10:49,172 --> 00:10:52,163 Suze: So I'm not even going to answer this question other 181 00:10:52,163 --> 00:10:56,413 Suze: than Roth 401k, start doing that. Let it grow, let 182 00:10:56,413 --> 00:10:58,932 Suze: it grow, let it grow, and it depends on your 183 00:10:58,932 --> 00:11:02,682 Suze: tax bracket what you live off of at the time. 184 00:11:03,015 --> 00:11:07,926 Suze: Stop worrying about the kids, mama bear and start worrying 185 00:11:07,926 --> 00:11:09,765 Suze: about yourself. Typical mother, right? 186 00:11:09,445 --> 00:11:14,476 KT: Yeah, and 3 girls. All right, this is from Sheila. 187 00:11:14,684 --> 00:11:19,015 KT: Hi KT and Suze. Love your advice and I'm wondering 188 00:11:19,015 --> 00:11:24,375 KT: about capital gains from ETF dividends in a rollover IRA. 189 00:11:25,020 --> 00:11:29,020 KT: Should I set them to automatically reinvest the dividends into 190 00:11:29,020 --> 00:11:34,099 KT: the corresponding security or have them deposited to the core 191 00:11:34,099 --> 00:11:37,979 KT: account to pay the taxes later? It's hard to answer 192 00:11:37,979 --> 00:11:38,340 KT: this one, huh? 193 00:11:39,299 --> 00:11:42,489 Suze: This one couldn't be easier to answer if I tried. 194 00:11:42,700 --> 00:11:44,820 Suze: What are you talking about? 195 00:11:45,419 --> 00:11:48,329 KT: Well I'm just giving you the best questions I like. 196 00:11:48,989 --> 00:11:53,580 Suze: So Sheila, make it so you reinvest the dividends and 197 00:11:53,580 --> 00:11:56,819 Suze: you get the most growth out of your money. Obviously 198 00:11:57,059 --> 00:11:59,130 Suze: you're going to have to pay taxes on it later. 199 00:11:59,340 --> 00:12:01,419 Suze: The other thing you can start to do is start 200 00:12:01,419 --> 00:12:05,020 Suze: converting to a Roth. There you go. All right. 201 00:12:06,049 --> 00:12:08,239 KT: We better do another Roth podcast. 202 00:12:08,369 --> 00:12:09,919 Suze: Oh my God, are you crazy? 203 00:12:10,119 --> 00:12:13,080 KT: No, just to remind people how great it is. So... 204 00:12:13,080 --> 00:12:14,239 Suze: You hate those podcasts. 205 00:12:14,520 --> 00:12:18,239 KT: But I think it's just a good reminder, refresher, a 206 00:12:18,239 --> 00:12:21,520 KT: Roth refresher. That's a good. I wish you all could 207 00:12:21,520 --> 00:12:24,229 KT: see my face a Roth refresher. We should do that. 208 00:12:24,440 --> 00:12:29,479 KT: All right, everybody, from Susan. I enjoyed the Sunday podcast 209 00:12:29,479 --> 00:12:33,750 KT: about managing money successfully in marriage like you and KT... 210 00:12:35,520 --> 00:12:38,119 KT: I just added that part. My husband and I have 211 00:12:38,119 --> 00:12:42,510 KT: been married for 14 years. I manage all of our finances. 212 00:12:42,679 --> 00:12:46,159 KT: I'd like to get my husband more involved so he 213 00:12:46,159 --> 00:12:49,679 KT: understands what's going on, but he's not interested. He's never 214 00:12:49,679 --> 00:12:53,598 KT: been good about saving money, but I insure that we do. 215 00:12:53,919 --> 00:12:57,429 KT: We are debt free. We have an 8 month emergency fund, 216 00:12:57,479 --> 00:13:00,799 KT: and we're on track for retirement. We have about a 217 00:13:00,799 --> 00:13:02,440 KT: million dollars to date. 218 00:13:02,890 --> 00:13:07,090 KT: We are both 46. Good for them with kids 8 219 00:13:07,090 --> 00:13:10,609 KT: and 11 years old. Short of chasing him around with 220 00:13:10,609 --> 00:13:13,489 KT: a laptop, how do I get him more involved so 221 00:13:13,489 --> 00:13:16,280 KT: he can be part of our financial decisions. 222 00:13:17,169 --> 00:13:18,679 KT: Want me to tell you, Suze? 223 00:13:20,320 --> 00:13:22,030 Suze: We're gonna make this the Ask KT Anything today. 224 00:13:25,119 --> 00:13:28,419 KT: This is what I would do, Susan. Call your husband in, 225 00:13:28,799 --> 00:13:31,520 KT: pour a glass of wine, say, honey, I need to 226 00:13:31,520 --> 00:13:35,109 KT: tell you something really serious. He'll say, what? And then 227 00:13:35,109 --> 00:13:36,479 KT: give him that glass of wine. 228 00:13:37,340 --> 00:13:38,358 KT: We're broke 229 00:13:39,530 --> 00:13:44,119 KT: We're just broke. Then you'll get more involved in your money. 230 00:13:44,429 --> 00:13:46,718 Suze: All right, right, so here's what I would tell you 231 00:13:46,719 --> 00:13:47,210 Suze: to do. 232 00:13:47,940 --> 00:13:54,148 Suze: I would get very serious with him and I would play, ready? 233 00:13:54,148 --> 00:13:57,320 Suze: I would play incapacitated or 234 00:13:57,989 --> 00:13:59,770 Suze: death, I'm serious. 235 00:13:59,900 --> 00:14:01,020 KT: Yeah, they're 46. 236 00:14:01,140 --> 00:14:03,199 Suze: Right, and I would sit down and say, all right, 237 00:14:03,380 --> 00:14:05,090 Suze: we're gonna play a game right now. 238 00:14:05,750 --> 00:14:09,130 Suze: I've either been struck by a car and I'm totally incapacitated. 239 00:14:09,190 --> 00:14:11,330 Suze: I can't do anything or I've been killed in a 240 00:14:11,330 --> 00:14:12,609 Suze: car crash. Just play it. 241 00:14:13,359 --> 00:14:17,409 Suze: What would you do first, sweetheart, and then give him 242 00:14:17,409 --> 00:14:23,650 Suze: a quiz and write down questions. Where are our accounts? 243 00:14:23,890 --> 00:14:27,609 Suze: What are we invested in? Where would you get the 244 00:14:27,609 --> 00:14:31,440 Suze: money to pay the bills? Every question that you could 245 00:14:31,440 --> 00:14:35,090 Suze: possibly have. Is there enough money for you to continue 246 00:14:35,090 --> 00:14:38,849 Suze: to live without me bringing in any money, whatever it 247 00:14:38,849 --> 00:14:41,039 Suze: may be, and ask him. 248 00:14:41,500 --> 00:14:43,320 Suze: He's by himself now. 249 00:14:44,169 --> 00:14:47,450 Suze: Where would he go? What accounts are the bills paid from? 250 00:14:47,690 --> 00:14:51,739 Suze: How much is everything? Where is the emergency fund? What 251 00:14:51,739 --> 00:14:54,140 Suze: do you do for the kids? How do we hold 252 00:14:54,140 --> 00:14:58,210 Suze: title to the house? Everything is there an insurance policy, 253 00:14:58,340 --> 00:15:02,099 Suze: every possible question that you could think of? And when 254 00:15:02,099 --> 00:15:05,059 Suze: he's not able to answer one of them, and now 255 00:15:05,059 --> 00:15:08,359 Suze: you give him an F, you can then say to him, 256 00:15:08,460 --> 00:15:10,369 Suze: I am no longer joking with you. 257 00:15:11,010 --> 00:15:15,159 Suze: This isn't funny. If something happens to me, you have 258 00:15:15,159 --> 00:15:19,239 Suze: a responsibility to take care of our kids, to make 259 00:15:19,239 --> 00:15:22,559 Suze: sure that everything is OK, and you cannot be now 260 00:15:22,559 --> 00:15:26,630 Suze: more irresponsible if you tried. If you, something happens to you, 261 00:15:26,690 --> 00:15:30,619 Suze: we're fine. If something happens to me, oh, you are screwed. 262 00:15:30,880 --> 00:15:33,119 Suze: So what I want you to do right now is 263 00:15:33,119 --> 00:15:36,320 Suze: make a commitment to me that we're going to figure 264 00:15:36,320 --> 00:15:39,789 Suze: this out together as one and don't joke with him. 265 00:15:39,880 --> 00:15:40,760 Suze: It's not funny. 266 00:15:41,030 --> 00:15:46,450 Suze: It's not funny. Everybody, if you're in this situation with somebody, 267 00:15:46,739 --> 00:15:51,659 Suze: it's just plain stupid if they refuse to partake in 268 00:15:51,659 --> 00:15:56,099 Suze: something that is their lifeline if something happened to you. 269 00:15:56,140 --> 00:15:56,780 Suze: All right, go on, KT. 270 00:15:56,859 --> 00:15:59,859 KT: So I picked this because I want all of you 271 00:15:59,859 --> 00:16:04,700 KT: listening to know one thing. There's never a wrong question 272 00:16:04,700 --> 00:16:09,770 KT: when it comes to money ever. So this is from Carolyn. Suze, 273 00:16:09,780 --> 00:16:10,380 KT: you ready? 274 00:16:10,859 --> 00:16:14,570 KT: Carolyn said, Is it OK to purchase a home at 275 00:16:14,570 --> 00:16:17,109 KT: the age of 65 or 66? 276 00:16:18,380 --> 00:16:22,500 Suze: Of course, if you can afford it, girlfriend, so I 277 00:16:22,500 --> 00:16:26,119 Suze: want you to do something which is called Play house. 278 00:16:26,539 --> 00:16:29,929 Suze: So today's podcast is about playing all kinds of things 279 00:16:29,929 --> 00:16:32,780 Suze: to know what it's like when you really do the 280 00:16:32,780 --> 00:16:36,609 Suze: real thing, all right, or the real thing happens, you know, 281 00:16:36,619 --> 00:16:37,979 Suze: you want to purchase a home. 282 00:16:38,570 --> 00:16:42,210 Suze: So you're going to hopefully put at least 20% down. 283 00:16:42,500 --> 00:16:44,929 Suze: Besides the amount of money you're going to put down, 284 00:16:45,140 --> 00:16:49,739 Suze: you need to have an 8 to 12 month emergency fund. So. 285 00:16:50,099 --> 00:16:54,280 Suze: You put 20% down. Let's check that box off. Now. 286 00:16:54,450 --> 00:16:58,919 Suze: Let's decide at your age, truthfully, you should be doing 287 00:16:58,919 --> 00:17:02,929 Suze: a 15 year fixed rate mortgage because you don't still 288 00:17:02,929 --> 00:17:05,959 Suze: want to have a mortgage at the age of 95. 289 00:17:06,209 --> 00:17:08,329 Suze: You want to have it paid off, you know, by 290 00:17:08,329 --> 00:17:14,089 Suze: the time essentially that you're 80. So therefore look at 291 00:17:14,089 --> 00:17:16,089 Suze: what the mortgage payments would be. 292 00:17:16,619 --> 00:17:21,688 Suze: With a 15 year fixed rate mortgage just that simple, 293 00:17:22,300 --> 00:17:23,689 Suze: write that amount down. 294 00:17:24,500 --> 00:17:28,219 Suze: Then you also have to do what? Find out what 295 00:17:28,219 --> 00:17:32,688 Suze: would it cost you in insurance per month on that house. 296 00:17:32,890 --> 00:17:36,099 Suze: Write that amount down. What would it cost you in 297 00:17:36,099 --> 00:17:41,020 Suze: property taxes per month? Write that amount down. What would 298 00:17:41,020 --> 00:17:45,260 Suze: it need in maintenance? Probably another 200 or $300 a 299 00:17:45,260 --> 00:17:48,260 Suze: month in case something were to go wrong, write that 300 00:17:48,260 --> 00:17:52,810 Suze: amount down. Add up all of those amounts. 301 00:17:53,219 --> 00:17:56,849 Suze: And let's say they come to $4000 a month. Let's 302 00:17:56,849 --> 00:18:00,609 Suze: just say that's true. And let's say you're currently renting 303 00:18:00,609 --> 00:18:05,530 Suze: right now and your rent is $2000 a month. Subtract 304 00:18:05,530 --> 00:18:10,488 Suze: your rent from the $4000 that would leave you $2000 305 00:18:10,489 --> 00:18:12,670 Suze: that you're going to have to come up with. So 306 00:18:12,670 --> 00:18:16,520 Suze: at the beginning of every month for the next 6 months. 307 00:18:17,260 --> 00:18:21,140 Suze: Take that $2000 and put it in a money market 308 00:18:21,140 --> 00:18:24,910 Suze: account or some account paying you interest and see what 309 00:18:24,910 --> 00:18:28,060 Suze: that feels like. Are you late? Can you do it 310 00:18:28,060 --> 00:18:30,978 Suze: at the 1st of every month? And if you can, 311 00:18:30,989 --> 00:18:33,900 Suze: and it's easy, then I got news for you, and 312 00:18:33,900 --> 00:18:37,420 Suze: you know that your job is stable. You know that 313 00:18:37,420 --> 00:18:41,270 Suze: your income will remain for a long time. Then yeah, 314 00:18:41,500 --> 00:18:43,780 Suze: you can afford to buy a home. 315 00:18:44,089 --> 00:18:46,520 Suze: And guess what, at the end of those 6 months 316 00:18:46,520 --> 00:18:48,790 Suze: you'll have a whole lot of money. In this case, 317 00:18:48,800 --> 00:18:53,310 Suze: an additional 12,000 plus interest to put towards the down payment. 318 00:18:53,520 --> 00:18:56,410 Suze: If you find that you can't, it's too difficult. You 319 00:18:56,410 --> 00:18:59,159 Suze: still have money that you saved. All right, OK, next. 320 00:18:59,280 --> 00:19:03,000 KT: OK, next is from Penny. Penny said, my spouse and 321 00:19:03,000 --> 00:19:07,400 KT: I are 75 years old. We need to know more 322 00:19:07,400 --> 00:19:10,709 KT: information on different types of insurance policies. 323 00:19:11,050 --> 00:19:14,890 KT: Which is the best type of life insurance coverage? Is 324 00:19:14,890 --> 00:19:18,969 KT: it whole life or term? What are the pros and cons? 325 00:19:19,079 --> 00:19:23,629 Suze: So you know, Penny, that your email is Pennywise, right? 326 00:19:23,800 --> 00:19:27,948 Suze: That's how, that's what you're calling yourself for this email. 327 00:19:28,119 --> 00:19:29,919 Suze: Now I don't know if that's your real name. 328 00:19:30,530 --> 00:19:34,800 Suze: Or you know if that's just a name you made up, however, 329 00:19:35,130 --> 00:19:40,319 Suze: at the age of 75, actuarly speaking, you are closer 330 00:19:40,319 --> 00:19:45,410 Suze: to death when the insurance companies look at your age 331 00:19:45,410 --> 00:19:48,140 Suze: and probably health, so whole life 332 00:19:48,305 --> 00:19:52,564 Suze: insurance is going to be so expensive I can't tell you. 333 00:19:52,814 --> 00:19:57,125 Suze: I don't know why you actually need insurance. Hopefully at 334 00:19:57,125 --> 00:20:01,734 Suze: this point in your life nobody is financially dependent on 335 00:20:01,734 --> 00:20:05,094 Suze: either of you if you're dependent on your spouse or 336 00:20:05,094 --> 00:20:06,255 Suze: vice versa. 337 00:20:06,930 --> 00:20:09,208 Suze: Now maybe we're going to have a little bit of problems, 338 00:20:09,329 --> 00:20:12,729 Suze: but term insurance at this point would be the only 339 00:20:12,729 --> 00:20:13,520 Suze: way to go. 340 00:20:13,810 --> 00:20:17,300 KT: All right, Suze, next question is from Jennifer. Hi, Suze, 341 00:20:17,660 --> 00:20:21,760 KT: what do you think of paper trading so I can practice? 342 00:20:22,209 --> 00:20:24,089 KT: What's your opinion on this, Suze? 343 00:20:24,630 --> 00:20:27,968 Suze: I don't think it's a bad idea at all where 344 00:20:27,969 --> 00:20:31,959 Suze: what is she talking about everybody you pretend on paper 345 00:20:31,959 --> 00:20:36,530 Suze: that you bought stock or ETFs. You also should all 346 00:20:36,530 --> 00:20:38,959 Suze: pretend that you start with a certain amount of money. 347 00:20:39,170 --> 00:20:42,149 Suze: Let's just say $25,000 and 348 00:20:42,194 --> 00:20:44,905 Suze: What are the 5 or 10 or 12 stocks or 349 00:20:44,905 --> 00:20:47,704 Suze: ETFs that you're going to invest in? How much of 350 00:20:47,704 --> 00:20:51,935 Suze: that $25,000 did you invest the first month at what price? 351 00:20:52,224 --> 00:20:54,704 Suze: And then when do you dollar cost average again and 352 00:20:54,704 --> 00:20:57,375 Suze: just on paper track it. All right. 353 00:20:57,625 --> 00:20:59,785 KT: This is my last one from Hari. 354 00:21:00,140 --> 00:21:04,089 KT: Hello KT and Suze. Thank you for the very informative 355 00:21:04,089 --> 00:21:09,760 KT: podcast every week. You suggested adding kids as authorized users 356 00:21:09,760 --> 00:21:13,560 KT: to help their credit score. We both have excellent credit 357 00:21:13,560 --> 00:21:18,000 KT: scores above 800. Do both parents need to add the 358 00:21:18,000 --> 00:21:21,319 KT: kids in each of their credit card or one of 359 00:21:21,319 --> 00:21:23,689 KT: the parents' accounts is good enough? 360 00:21:24,880 --> 00:21:28,560 Suze: Probably 1 is good enough, but hey, KT and I 361 00:21:28,560 --> 00:21:31,438 Suze: would always tell you 2 is better than 1. And 362 00:21:31,439 --> 00:21:32,569 Suze: why do we say that KT? 363 00:21:33,079 --> 00:21:33,718 KT: I'm a twin. 364 00:21:34,079 --> 00:21:37,869 Suze: So we had little caps made. 2 are better than one. 365 00:21:38,119 --> 00:21:41,390 Suze: So truthfully, Hari, you could both do it if you want, 366 00:21:41,560 --> 00:21:44,280 Suze: but the truth of the matter is do it on 367 00:21:44,280 --> 00:21:47,399 Suze: all your credit cards, not just one. 368 00:21:47,900 --> 00:21:50,020 Suze: There's only really one thing that we want you to 369 00:21:50,020 --> 00:21:52,540 Suze: remember when it comes to your money, and that is 370 00:21:52,540 --> 00:21:53,260 Suze: what KT? 371 00:21:53,260 --> 00:21:54,250 KT: People first, 372 00:21:54,459 --> 00:21:55,140 Suze: Then money. 373 00:21:55,219 --> 00:21:56,060 KT: Then things 374 00:21:56,060 --> 00:22:00,930 Suze: You stay safe and healthy, and you will be what unstoppable.