1 00:00:28,969 --> 00:00:34,069 Suze: May 1st, 2025. Welcome everybody to the Women and Money podcast, 2 00:00:34,270 --> 00:00:38,208 Suze: as well as everybody smart enough to listen. Today is 3 00:00:38,209 --> 00:00:39,150 Suze: what KT? 4 00:00:39,689 --> 00:00:41,470 KT: Ask KT and Suze Anything Thursday. 5 00:00:41,470 --> 00:00:46,500 Suze: And she is so happy to be back in the studio. 6 00:00:46,790 --> 00:00:49,979 KT: No, I missed it. I missed I missed my microphone, 7 00:00:50,139 --> 00:00:51,860 Suze: Right? And all of you are just gonna have to 8 00:00:51,860 --> 00:00:55,619 Suze: be patient because my voice, as you can hear, it's 9 00:00:55,619 --> 00:00:59,979 Suze: been giving me trouble recently. So KT actually likes how 10 00:00:59,979 --> 00:01:01,069 Suze: low it is. Do you like it? 11 00:01:01,220 --> 00:01:02,259 KT: I do. It's sexy. 12 00:01:02,380 --> 00:01:07,039 Suze: It's sexy. But anyway, so get used to it until 13 00:01:07,040 --> 00:01:09,529 Suze: it changes again. All right, go on, KT. 14 00:01:09,660 --> 00:01:12,260 KT: OK, so we've got some great questions here. 15 00:01:12,690 --> 00:01:15,669 KT: And the first one is from Betsy. She said, You 16 00:01:15,669 --> 00:01:20,339 KT: rock KT and Suze. Love you and listen all the time. 17 00:01:20,550 --> 00:01:25,069 KT: I'm 76 years old and my hubby's 79. We both 18 00:01:25,069 --> 00:01:28,660 KT: have everything in place, including the must-have documents. 19 00:01:28,750 --> 00:01:29,459 Suze: Yeah, baby. 20 00:01:29,629 --> 00:01:31,149 KT: You want to tell them if they don't have a 21 00:01:31,150 --> 00:01:32,940 KT: must-have document what to do? 22 00:01:33,069 --> 00:01:33,360 Suze: No. 23 00:01:33,480 --> 00:01:33,910 KT: OK. 24 00:01:34,440 --> 00:01:38,779 KT: So I understand, I understand my spouse should be my 25 00:01:38,779 --> 00:01:43,099 KT: beneficiary of my retirement accounts. She has a Roth and 26 00:01:43,099 --> 00:01:47,300 KT: rollover IRA and vice versa. But if I want some 27 00:01:47,300 --> 00:01:50,169 KT: of that to go to other members in my family, 28 00:01:50,540 --> 00:01:53,580 KT: wouldn't my niece and nephew get taxed on it when 29 00:01:53,580 --> 00:01:55,849 KT: my husband gives it to them? 30 00:01:56,639 --> 00:01:59,559 KT: She goes on to say, I love you, your efforts 31 00:01:59,559 --> 00:02:01,319 KT: are working for all of us, and this is the 32 00:02:01,319 --> 00:02:02,959 KT: best part of the email, everyone. 33 00:02:03,370 --> 00:02:08,470 KT: She said, I took over my hubby's 401k when he retired, 34 00:02:08,479 --> 00:02:13,089 KT: and I have doubled it. So that's incredible, she said, 35 00:02:13,169 --> 00:02:16,168 KT: Thank you for giving me an education along with 36 00:02:16,169 --> 00:02:16,649 KT: confidence. 37 00:02:16,770 --> 00:02:19,919 Suze: Yeah, that's actually the goal of the Women and Money podcast, 38 00:02:20,130 --> 00:02:23,929 Suze: and everybody smart enough to listen is so that you 39 00:02:23,929 --> 00:02:29,728 Suze: can be your own best financial advisor. But Betsy, so 40 00:02:29,729 --> 00:02:31,049 Suze: I don't understand your question. 41 00:02:31,820 --> 00:02:36,339 Suze: I just don't, but I'm going to assume what you're 42 00:02:36,339 --> 00:02:40,660 Suze: asking me, which is obviously the reason that I want 43 00:02:40,660 --> 00:02:41,619 Suze: your husband 44 00:02:42,240 --> 00:02:47,800 Suze: to be the primary beneficiary of your retirement accounts more 45 00:02:47,800 --> 00:02:50,750 Suze: than the trust, because many of you, when you have 46 00:02:50,750 --> 00:02:55,470 Suze: the must-have docs, which happens to be a living revocable trust, 47 00:02:55,720 --> 00:02:58,490 Suze: a will, an advanced directive and durable power of attorney 48 00:02:58,490 --> 00:03:02,199 Suze: for health care, as well as a financial power, many 49 00:03:02,199 --> 00:03:06,949 Suze: of you have tended to make the primary beneficiary your trust. 50 00:03:07,449 --> 00:03:12,149 Suze: It's so much easier on your beneficiaries, especially if you 51 00:03:12,149 --> 00:03:18,459 Suze: are married, to make your spouse the primary beneficiary. Why? 52 00:03:18,669 --> 00:03:22,360 Suze: Because your spouse has all kinds of benefits that nobody 53 00:03:22,360 --> 00:03:26,179 Suze: else has, the main one being that he can take 54 00:03:26,179 --> 00:03:30,750 Suze: over your retirement account as if it was his own 55 00:03:30,750 --> 00:03:33,359 Suze: and on and on, however... 56 00:03:33,800 --> 00:03:37,869 Suze: You can have contingent beneficiaries cause what if something happens 57 00:03:38,080 --> 00:03:41,130 Suze: to you and your husband together and that's where you 58 00:03:41,130 --> 00:03:45,360 Suze: leave maybe your other family members there and that's how 59 00:03:45,360 --> 00:03:46,380 Suze: they get it but... 60 00:03:47,179 --> 00:03:52,860 Suze: If everything is left to your husband, you die, and 61 00:03:52,860 --> 00:03:56,970 Suze: now he's taking out some of that money. He's the 62 00:03:56,970 --> 00:04:00,130 Suze: one who's going to have to pay income taxes on it. 63 00:04:00,429 --> 00:04:03,449 Suze: And he can turn around and just give it if 64 00:04:03,449 --> 00:04:08,539 Suze: he wants to your other family members. Remember, with the 65 00:04:08,539 --> 00:04:12,539 Suze: new increase in the amount you can give, you now 66 00:04:12,539 --> 00:04:18,720 Suze: this year, 2025, can give $19,000 a year to as 67 00:04:18,720 --> 00:04:21,820 Suze: many people as you want. They do not have to 68 00:04:21,820 --> 00:04:25,890 Suze: be relatives anything, and they don't pay taxes on it. 69 00:04:26,059 --> 00:04:29,700 Suze: So therefore, that's probably what should happen. 70 00:04:30,769 --> 00:04:31,959 KT: 19,000 total? 71 00:04:32,959 --> 00:04:36,720 Suze: No, 19,000 per person total per person, but I could 72 00:04:36,720 --> 00:04:44,320 Suze: give Sophia 19,000, Travis 19,000. I could go down the street. 73 00:04:45,488 --> 00:04:47,959 Suze: In fact, I had the weirdest thing this morning, KT. 74 00:04:49,220 --> 00:04:49,369 KT: A dream? 75 00:04:49,369 --> 00:04:52,690 Suze: Not a dream, but I was looking at something, these 76 00:04:52,690 --> 00:04:55,690 Suze: things that I have, right, and I had this hit 77 00:04:55,690 --> 00:04:58,130 Suze: of I'm just going to walk down the street and 78 00:04:58,130 --> 00:05:00,479 Suze: hand people these things that are worth a lot of money. 79 00:05:00,928 --> 00:05:01,089 KT: Oh, 80 00:05:01,100 --> 00:05:02,700 KT: you mean objects. 81 00:05:02,890 --> 00:05:03,289 Suze: Objects 82 00:05:03,290 --> 00:05:03,850 Suze: like a watch... 83 00:05:04,010 --> 00:05:05,250 KT: A watch. Oh, I see things... 84 00:05:05,250 --> 00:05:07,920 Suze: Do I know my joke growing up? 85 00:05:08,329 --> 00:05:08,750 KT: No. 86 00:05:09,010 --> 00:05:09,719 Suze: Yes, you do. 87 00:05:09,779 --> 00:05:10,289 KT: What is it? 88 00:05:10,290 --> 00:05:11,440 Suze: The millionaire. 89 00:05:11,730 --> 00:05:12,029 KT: Oh. 90 00:05:12,609 --> 00:05:14,079 Suze: I had this dream. 91 00:05:15,119 --> 00:05:18,339 Suze: Uh, not dream fantasy dream, but this desire when I 92 00:05:18,339 --> 00:05:19,179 Suze: got older. 93 00:05:20,089 --> 00:05:22,609 Suze: To be able to go down the street and just 94 00:05:22,609 --> 00:05:25,320 Suze: give somebody a check for a million dollars and walk away. 95 00:05:26,170 --> 00:05:28,309 Suze: I wanted to do those things. 96 00:05:29,220 --> 00:05:32,190 Suze: I kind of still do and I do. But there 97 00:05:32,190 --> 00:05:35,839 Suze: is one story, KT that I just, it reminds me 98 00:05:35,839 --> 00:05:40,119 Suze: of is that I did give a $10,000 check to 99 00:05:40,119 --> 00:05:42,559 Suze: a little boy who was supporting his mom. 100 00:05:43,290 --> 00:05:45,950 Suze: And he went and he wanted to put it into 101 00:05:45,950 --> 00:05:50,470 Suze: his bank account and the bank literally thought that he 102 00:05:50,470 --> 00:05:53,669 Suze: had stolen my checks. There's no way Suze Orman would 103 00:05:53,670 --> 00:05:56,660 Suze: have given him $10,000 and it was just so very, 104 00:05:56,750 --> 00:06:01,750 Suze: very sad. So sometimes it's interesting when you give somebody 105 00:06:01,750 --> 00:06:04,428 Suze: money what can happen from it. All right, next question, girlfriend. 106 00:08:31,160 --> 00:08:34,199 KT: OK, this is from Will. I really like this one. 107 00:08:34,669 --> 00:08:39,148 KT: Will said, um, he misses us. He said, I'm 35. 108 00:08:39,189 --> 00:08:42,189 KT: I work full time as the director of nursing at 109 00:08:42,189 --> 00:08:45,789 KT: a nursing home. I'm about to start back to college 110 00:08:45,789 --> 00:08:49,028 KT: to get my master's in nursing, which I think will 111 00:08:49,028 --> 00:08:53,708 KT: increase my future earning potential. Will said, I currently have 112 00:08:53,708 --> 00:09:01,698 KT: about 100,000 in retirement, another 130,000 in Fidelity IRAs, home equity, cash, etc. 113 00:09:02,450 --> 00:09:06,190 KT: He, he's only anticipating one purchase in the next 1 114 00:09:06,190 --> 00:09:09,109 KT: to 3 years, which is a new car, but he 115 00:09:09,109 --> 00:09:12,270 KT: said the program he's looking into, Suze, will cost about 116 00:09:12,270 --> 00:09:17,710 KT: $30,000 over the next 3 years. I could afford to 117 00:09:17,710 --> 00:09:20,978 KT: pay the tuition out of pocket, but I'm wondering if 118 00:09:20,979 --> 00:09:23,429 KT: I might end up with more money in the long 119 00:09:23,429 --> 00:09:28,510 KT: run by taking out student loans. Now here's the catch, Suze. 120 00:09:28,840 --> 00:09:36,739 KT: He's 35. He already has $30,000 in student loans, and 121 00:09:36,739 --> 00:09:40,020 KT: Will says, I hate to add to that, as it 122 00:09:40,020 --> 00:09:44,260 KT: is my only debt outside of my home loan. So 123 00:09:44,260 --> 00:09:47,098 KT: he just gave you a key word. I hate to 124 00:09:47,099 --> 00:09:47,929 KT: add to that. 125 00:09:48,020 --> 00:09:49,819 Suze: All right, so you give him the advice. What would 126 00:09:49,820 --> 00:09:50,409 Suze: you do? 127 00:09:51,210 --> 00:09:52,460 Suze: Quzzy pop quizzy. 128 00:09:53,599 --> 00:09:55,858 KT: I wouldn't go back for my master's Will. 129 00:09:56,479 --> 00:09:57,119 Suze: Oh God, 130 00:09:57,640 --> 00:09:59,150 Suze: I wasn't expecting that. 131 00:10:00,320 --> 00:10:04,760 KT: No, seriously, you're 35. You're doing a great job. I'm 132 00:10:04,760 --> 00:10:06,989 KT: telling you something, boyfriend, I think. 133 00:10:07,809 --> 00:10:12,869 KT: The nursing industry so needs people like you that are 134 00:10:12,869 --> 00:10:15,340 KT: good at what you do, you love what you do, 135 00:10:15,549 --> 00:10:19,710 KT: and who cares about earning potential? You're great. Don't go 136 00:10:19,710 --> 00:10:21,030 KT: back for the masters. 137 00:10:21,109 --> 00:10:25,179 Suze: All right, but Will, before you go back for the masters, 138 00:10:25,190 --> 00:10:27,819 Suze: if you decide to go back and get a master's, 139 00:10:27,989 --> 00:10:32,109 Suze: you really need to check and see what would that 140 00:10:32,109 --> 00:10:36,469 Suze: do for you financially speaking if you had a masters. 141 00:10:37,080 --> 00:10:40,989 Suze: You need to find that out, especially if you have 142 00:10:40,989 --> 00:10:43,900 Suze: to take out a student loan or take money out 143 00:10:43,900 --> 00:10:48,348 Suze: of something else to finance it. What would that money 144 00:10:48,349 --> 00:10:52,580 Suze: have grown to versus how much really of an increase 145 00:10:52,869 --> 00:10:58,390 Suze: in your salary will you get? Just something to think 146 00:10:58,390 --> 00:11:02,669 Suze: about if, however, you decide that it's worth it and 147 00:11:02,669 --> 00:11:04,299 Suze: you have the money now 148 00:11:04,739 --> 00:11:07,719 Suze: to be able to pay 10,000 a year towards it, 149 00:11:07,969 --> 00:11:10,650 Suze: I would do that rather than going into debt to 150 00:11:10,650 --> 00:11:13,619 Suze: get it, cause why you hate that you have debt. Yes, 151 00:11:14,049 --> 00:11:18,349 Suze: you hate it. So therefore don't hate things in life. Will. 152 00:11:19,049 --> 00:11:21,409 Suze: When you hate something, it makes you negative and all 153 00:11:21,409 --> 00:11:23,650 Suze: these other things, and you'll never get a job or 154 00:11:23,650 --> 00:11:25,690 Suze: things in a raise that you want if you have 155 00:11:25,690 --> 00:11:28,729 Suze: anger in you because you're doing something you hate. so. 156 00:11:29,349 --> 00:11:32,409 Suze: I kind of would probably stick by KT suggested my dear, 157 00:11:34,299 --> 00:11:35,729 Suze: you know, KT, I have to say. 158 00:11:36,409 --> 00:11:40,079 Suze: Over the years now, if you go back and you 159 00:11:40,080 --> 00:11:44,719 Suze: listen everybody to podcasts, I've even been questioning, does it 160 00:11:44,719 --> 00:11:49,359 Suze: make sense to go to a university at all that 161 00:11:49,359 --> 00:11:53,739 Suze: costs you $40,000 or $60,000 a year? Why not at 162 00:11:53,739 --> 00:11:57,669 Suze: community college? Why not getting, you know, all kinds of things? 163 00:11:58,119 --> 00:12:00,319 Suze: Be careful, everybody. That's all I can say. All right, go on. 164 00:12:00,400 --> 00:12:04,640 KT: OK, so next question. This isn't actually a question. This 165 00:12:04,640 --> 00:12:05,559 KT: is a great. 166 00:12:06,349 --> 00:12:07,140 KT: Email. 167 00:12:07,510 --> 00:12:09,760 Suze: I'm so surprised you didn't start with a great email. 168 00:12:10,270 --> 00:12:13,229 KT: No...Hi KT and Suze. I recently visited a friend and 169 00:12:13,229 --> 00:12:17,718 KT: her husband. Somehow we got on the thrilling topic of taxes. 170 00:12:18,119 --> 00:12:22,228 KT: She mentioned that they decided to file separately this year 171 00:12:22,229 --> 00:12:26,369 KT: because it would supposedly save them money right away. My 172 00:12:26,369 --> 00:12:28,119 KT: gut said something was off, 173 00:12:28,710 --> 00:12:29,349 Suze: especially 174 00:12:29,349 --> 00:12:30,390 Suze: So, married filling and separately. 175 00:12:30,679 --> 00:12:30,760 KT: Yeah, 176 00:12:30,830 --> 00:12:31,049 Suze: wait, 177 00:12:31,380 --> 00:12:34,549 KT: especially since she told me before that she contributes to 178 00:12:34,549 --> 00:12:35,869 KT: a Roth IRA. 179 00:12:36,500 --> 00:12:39,359 KT: I told her my husband and I filed jointly because 180 00:12:39,359 --> 00:12:43,239 KT: I was pretty sure we couldn't contribute to our Roths 181 00:12:43,239 --> 00:12:45,309 KT: if we filed separately. 182 00:12:45,669 --> 00:12:46,750 Suze: And you live together. 183 00:12:47,320 --> 00:12:51,520 KT: She said, no, you can. Even our tax preparer had 184 00:12:51,520 --> 00:12:55,869 KT: suggested married filing separately to reduce... 185 00:12:55,869 --> 00:12:56,229 Suze: Do they live together? 186 00:12:56,320 --> 00:12:59,119 KT: ... to reduce the tax bill. Yeah, now listen, listen 187 00:12:59,119 --> 00:12:59,598 KT: to this. 188 00:12:59,960 --> 00:13:03,539 KT: I felt silly for not remembering why my husband and 189 00:13:03,539 --> 00:13:07,520 KT: I filed jointly and kind of embarrassed that I may 190 00:13:07,520 --> 00:13:11,330 KT: have been wrong, so I followed up on this topic. 191 00:13:11,580 --> 00:13:17,780 KT: I found a podcast from August 15, 2021 where you 192 00:13:17,780 --> 00:13:21,020 KT: went over the rules for married couples. The 193 00:13:21,072 --> 00:13:26,572 KT: income limit is up to 10,000 for married filing separately 194 00:13:26,862 --> 00:13:31,463 KT: and living together. My friend and I definitely earn way 195 00:13:31,463 --> 00:13:34,942 KT: above that and share the same residence with our spouses. 196 00:13:35,862 --> 00:13:40,703 KT: So I was right. And thankfully, I have not changed 197 00:13:40,703 --> 00:13:42,182 KT: my filing status. 198 00:13:42,505 --> 00:13:46,585 KT: I emailed our tax person and sent the IRS rules 199 00:13:46,585 --> 00:13:51,015 KT: to my friend as an FYI. Suze, you rock. Thank 200 00:13:51,015 --> 00:13:55,226 KT: you for taking the time to repeat the information over 201 00:13:55,226 --> 00:13:58,476 KT: and over so that it's drilled into my brain. 202 00:13:59,745 --> 00:14:01,176 Suze: What's interesting about this... 203 00:14:01,176 --> 00:14:02,695 KT: She said she loves you so much. 204 00:14:02,785 --> 00:14:07,966 Suze: Thank you. Thank you. Anyway, what's interesting about this is 205 00:14:07,966 --> 00:14:11,046 Suze: that I want all of you to start to take note. 206 00:14:11,650 --> 00:14:19,140 Suze: Just because a so-called professional, a CPA, a financial adviser says, no, 207 00:14:19,289 --> 00:14:23,330 Suze: you can do that. You better check it, recheck it 208 00:14:23,330 --> 00:14:26,400 Suze: and check it again. And when a friend says to you, 209 00:14:26,650 --> 00:14:29,320 Suze: I've been listening to the Suze Orman show, and I 210 00:14:29,320 --> 00:14:30,840 Suze: think she said that. 211 00:14:32,000 --> 00:14:35,119 Suze: They really should check it again. So it's not that 212 00:14:35,119 --> 00:14:38,280 Suze: I'm never wrong, of course I can be wrong, but 213 00:14:38,280 --> 00:14:41,679 Suze: that's just plain stupid. How we doing, KT? 214 00:14:41,909 --> 00:14:44,890 KT: I think, I think we're doing pretty good. How's your voice? How, 215 00:14:45,000 --> 00:14:45,799 KT: how do you, how do you feel? 216 00:14:46,159 --> 00:14:46,719 Suze: Are you back in the saddle. 217 00:14:47,359 --> 00:14:49,479 KT: I'm in the, I'm in the saddle, but how about 218 00:14:49,479 --> 00:14:52,150 KT: your little throat and voice? Is it in the saddle? 219 00:14:52,679 --> 00:14:57,080 Suze: Back in the saddle again. Go on. 220 00:14:58,390 --> 00:15:01,869 KT: All right. Hi KT and Suze. You both inspire me 221 00:15:01,869 --> 00:15:05,739 KT: and give me hope. I have just two short questions, 222 00:15:05,989 --> 00:15:07,510 KT: but I'm only gonna ask one. 223 00:15:08,630 --> 00:15:13,299 KT: With my new job, they offer a traditional 401k. They 224 00:15:13,299 --> 00:15:17,869 KT: will match 4%. Will I contribute only to the match 225 00:15:17,869 --> 00:15:23,549 KT: or maximize the 15%? I'm 49 turning 50 this May 226 00:15:23,549 --> 00:15:30,000 KT: with only 70,000 in a rollover IRA, 40,000 Roth IRA 227 00:15:30,000 --> 00:15:34,619 KT: and an emergency fund of 36,000, which is good for 228 00:15:34,619 --> 00:15:38,260 KT: about 5 months for me. So there you go. 229 00:15:39,349 --> 00:15:40,780 Suze: She said, so there you go. Are you saying it? 230 00:15:41,349 --> 00:15:43,190 KT: No, no, no, I, I'm saying so there you go. 231 00:15:43,190 --> 00:15:43,630 Suze: So there you go. 232 00:15:43,989 --> 00:15:45,219 KT: So, what's your advice? 233 00:15:45,669 --> 00:15:48,549 Suze: Are you telling me that the company that you work 234 00:15:48,549 --> 00:15:55,039 Suze: for doesn't offer a 401k Roth, that they only offer 235 00:15:55,039 --> 00:15:56,989 Suze: a traditional 401k? 236 00:15:57,799 --> 00:15:58,710 Suze: Is that true? 237 00:15:59,510 --> 00:16:04,880 Suze: Cause if that's true, where they only offer a traditional 401k, 238 00:16:04,950 --> 00:16:09,469 Suze: which is a pre-tax 401k, then yeah, you're only going 239 00:16:09,469 --> 00:16:12,940 Suze: to contribute up to the point of the match that 4%. 240 00:16:13,109 --> 00:16:16,380 Suze: I don't care that you know you can put in 241 00:16:16,380 --> 00:16:20,869 Suze: an extra 11%. doesn't matter to me. What matters to 242 00:16:20,869 --> 00:16:24,760 Suze: me is that you have the most efficient use of 243 00:16:24,760 --> 00:16:26,109 Suze: your retirement money. 244 00:16:26,690 --> 00:16:30,750 Suze: And the most efficient use would be after the 4% 245 00:16:30,750 --> 00:16:35,020 Suze: open up a Roth IRA and given... 246 00:16:35,869 --> 00:16:40,979 Suze: You're turning 50 this month. You can put $8000 in 247 00:16:40,979 --> 00:16:46,650 Suze: your Roth IRA after taxes, which also can be used 248 00:16:46,650 --> 00:16:51,679 Suze: as your emergency fund, period. The other money I don't 249 00:16:51,679 --> 00:16:56,049 Suze: care about now. If they do, why are you laughing? 250 00:16:56,820 --> 00:16:59,000 KT: People don't say I don't care about the other. 251 00:16:59,659 --> 00:17:02,219 Suze: Well, you know what I mean. You, you get it. 252 00:17:02,299 --> 00:17:05,619 Suze: You get it, but here's the scoop. It may be, 253 00:17:06,020 --> 00:17:10,409 Suze: that your company may offer a Roth 401k, but the 254 00:17:10,410 --> 00:17:14,829 Suze: match goes into a traditional 401k, and a lot of 255 00:17:14,829 --> 00:17:18,599 Suze: people think, oh, that means I have to only have 256 00:17:18,599 --> 00:17:22,930 Suze: a traditional 401k for them to match it. If they 257 00:17:22,930 --> 00:17:27,800 Suze: have a Roth 401k, then here's what you are to do. 258 00:17:28,329 --> 00:17:29,399 Suze: You are 259 00:17:29,900 --> 00:17:33,400 Suze: to put up to 15% if you want in your 260 00:17:33,400 --> 00:17:38,319 Suze: Roth 401k, they will put the 4% in your traditional 401k, 261 00:17:38,540 --> 00:17:43,800 Suze: and you can still have an $8000 Roth IRA if 262 00:17:43,800 --> 00:17:49,020 Suze: you want. Now you have hit the serious retirement jackpot. 263 00:17:49,119 --> 00:17:50,239 Suze: Next question, KT. 264 00:17:50,839 --> 00:17:53,069 KT: Ok, Suze, this last email. 265 00:17:53,545 --> 00:17:54,593 Suze: Why is it the last one? 266 00:17:54,594 --> 00:17:56,724 KT: Because it's really long and I want to have a 267 00:17:56,724 --> 00:17:59,005 KT: conversation about it. I think it's important. I'm gonna read 268 00:17:59,005 --> 00:17:59,515 KT: the whole thing. 269 00:17:59,614 --> 00:18:03,375 Suze: I know why it's the last one. Why, Mama KT, 270 00:18:03,714 --> 00:18:05,295 Suze: she's trying to protect my voice. 271 00:18:05,614 --> 00:18:07,734 KT: I am protecting it, otherwise none of you are gonna 272 00:18:07,734 --> 00:18:10,574 KT: get a Sunday. And if you want a Sunday real 273 00:18:10,574 --> 00:18:14,594 KT: deal authentic Suze Orman, this is my last email. 274 00:18:14,765 --> 00:18:17,135 Suze: Tell everybody I had a Sundae last night. 275 00:18:20,380 --> 00:18:24,790 KT: Oh, she did. I gave her a non-dairy, um, ice cream, 276 00:18:26,260 --> 00:18:27,630 KT: a non it was really good 277 00:18:27,630 --> 00:18:28,640 Suze: Because I can't have dairy. 278 00:18:28,640 --> 00:18:31,599 KT: And that little bit of a cold on her throat 279 00:18:31,599 --> 00:18:32,389 KT: was so nice. 280 00:18:33,390 --> 00:18:35,688 Suze: OK, wait, I just have to laugh, so I asked KT, 281 00:18:36,099 --> 00:18:39,439 Suze: Can you get me a little non-dairy ice cream? So 282 00:18:39,439 --> 00:18:40,109 Suze: she's out. 283 00:18:40,520 --> 00:18:42,640 KT: The one flavor she wanted, they didn't have, so I 284 00:18:42,640 --> 00:18:43,560 KT: brought back 4, 285 00:18:43,680 --> 00:18:45,479 Suze: And I'm like, I asked for just a little. 286 00:18:45,479 --> 00:18:47,679 KT: But then she wanted to taste all. 287 00:18:47,755 --> 00:18:50,265 KT: All of that so that was, that was her plan. 288 00:18:50,334 --> 00:18:53,944 KT: So this this is an interesting one, and I picked 289 00:18:53,944 --> 00:18:57,785 KT: it because I think many of you listening will go 290 00:18:57,785 --> 00:19:01,875 KT: through this or have already either for your family or yourselves. 291 00:19:02,194 --> 00:19:05,344 KT: Dear Suze and KT, first of all, thank you. My 292 00:19:05,344 --> 00:19:08,114 KT: wife and I have learned so much from you. Our 293 00:19:08,114 --> 00:19:11,905 KT: children learned more watching your shows back in the day. 294 00:19:12,280 --> 00:19:15,449 KT: And trying to predict your answer on the Can I 295 00:19:15,449 --> 00:19:19,369 KT: Afford it segment than they ever learned in school about 296 00:19:19,369 --> 00:19:20,410 KT: personal finance. 297 00:19:20,530 --> 00:19:23,890 Suze: So now have them go to my YouTube channel where 298 00:19:23,890 --> 00:19:26,089 Suze: they can actually play the Can I Afford it game. 299 00:19:26,829 --> 00:19:29,770 KT: Go to Suze's official YouTube channel, and there's a lot 300 00:19:29,770 --> 00:19:31,050 KT: of great stuff on that. 301 00:19:31,479 --> 00:19:35,819 KT: So here's my question. My father-in-law is currently in hospice 302 00:19:35,819 --> 00:19:39,500 KT: care and will be passing soon. He has asked us 303 00:19:39,500 --> 00:19:42,899 KT: to take care of his wife, and we fully intend 304 00:19:42,900 --> 00:19:47,099 KT: to do so. In fact, we already own the condo 305 00:19:47,099 --> 00:19:50,260 KT: where they live. As part of that, he has asked 306 00:19:50,260 --> 00:19:53,219 KT: me to take care of the bills which his wife 307 00:19:53,219 --> 00:19:55,050 KT: has never been involved with. 308 00:19:55,599 --> 00:19:59,770 KT: He then handed me a stack of bills that revealed 309 00:20:00,020 --> 00:20:06,260 KT: he has 13 credit cards with about $50,000 in debt. 310 00:20:06,660 --> 00:20:10,699 KT: He is currently paying $200 a month to each of 311 00:20:10,699 --> 00:20:14,660 KT: the cards, a bit over the minimum payments on each. 312 00:20:15,189 --> 00:20:20,910 KT: Now because we have followed your recommendations for 25+ years now, 313 00:20:21,119 --> 00:20:24,000 KT: we could easily write a check to each of the 314 00:20:24,000 --> 00:20:26,920 KT: credit cards, cut them up, and be done with it. 315 00:20:26,979 --> 00:20:28,229 Suze: Over my dead body. 316 00:20:28,439 --> 00:20:32,359 KT: However, I don't want to do that because I am angry. 317 00:20:32,959 --> 00:20:37,219 KT: Not at my in-laws but at the predatory credit card 318 00:20:37,219 --> 00:20:41,920 KT: companies they could have run a credit report. They would 319 00:20:41,920 --> 00:20:44,880 KT: have seen that he lived on a fixed income and 320 00:20:44,880 --> 00:20:49,069 KT: that he already had 6, 7, 8 credit cards he 321 00:20:49,069 --> 00:20:53,989 KT: was not paying off. I am furious that two new 322 00:20:53,989 --> 00:20:58,800 KT: significantly large companies wrote him and said, we see that 323 00:20:58,800 --> 00:20:59,000 KT: you have 324 00:20:59,135 --> 00:21:02,535 KT: 11 credit cards already. We would like to be your 325 00:21:02,535 --> 00:21:06,024 KT: 12th at a 29.99% interest. 326 00:21:06,025 --> 00:21:08,895 Suze: I would love to know the name of those companies. 327 00:21:09,464 --> 00:21:10,635 KT: Yeah, we don't have that. 328 00:21:11,104 --> 00:21:12,594 Suze: You write me and tell me. Go on. 329 00:21:12,905 --> 00:21:16,944 KT: That seems almost criminal to me. I do not judge 330 00:21:16,944 --> 00:21:22,064 KT: my father-in-law at all. They did not live extravagantly, but 331 00:21:22,064 --> 00:21:25,255 KT: I am angry at these credit card companies. 332 00:21:25,900 --> 00:21:29,979 KT: My question is this: should I pay these cards off 333 00:21:29,979 --> 00:21:31,319 KT: and be done with it... 334 00:21:31,319 --> 00:21:31,492 Suze: No. 335 00:21:31,492 --> 00:21:33,609 KT: ... which would not be a burden on us. 336 00:21:33,810 --> 00:21:34,367 Suze: No. 337 00:21:34,367 --> 00:21:37,699 KT: Or should I set up an autopay for the monthly 338 00:21:37,699 --> 00:21:41,260 KT: minimums and ride it out so that these predatory 339 00:21:41,349 --> 00:21:45,899 KT: credit card companies don't get an extra penny. 340 00:21:45,900 --> 00:21:46,116 Suze: No. 341 00:21:46,116 --> 00:21:48,579 KT: If we do pay it off, should we use our 342 00:21:48,579 --> 00:21:53,218 KT: funds or the $100,000 life insurance funds? 343 00:21:53,229 --> 00:21:53,680 Suze: No. 344 00:21:54,180 --> 00:21:57,930 KT: Suze, thank you so much for all that you do. Um... 345 00:21:58,380 --> 00:22:00,260 Suze: That's good because I'll tell you why it's good, KT. 346 00:22:00,500 --> 00:22:04,260 Suze: I wrote this person and here's the advice that I 347 00:22:04,260 --> 00:22:05,170 Suze: gave them. Now... 348 00:22:05,859 --> 00:22:08,819 Suze: Did you hear what I just said? I wrote this 349 00:22:08,819 --> 00:22:13,699 Suze: person back personally. Every once in a while when I'm 350 00:22:13,699 --> 00:22:18,510 Suze: reading these, something touches my heart, especially if something has 351 00:22:18,510 --> 00:22:20,900 Suze: gone wrong when it didn't have to be wrong. 352 00:22:22,329 --> 00:22:26,079 Suze: And I told him what to do. How can you 353 00:22:26,079 --> 00:22:29,849 Suze: possibly be somebody like that? Do you have a question? 354 00:22:30,150 --> 00:22:32,650 Suze: You should send it into the Ask Suze S U 355 00:22:32,650 --> 00:22:38,089 Suze: Z E podcast at gmail.com. And KT does look through them, 356 00:22:38,319 --> 00:22:42,550 Suze: but so do I. And depending on the situation, do 357 00:22:42,550 --> 00:22:47,459 Suze: not be surprised if you hear back from me. In fact, recently, KT, 358 00:22:47,709 --> 00:22:49,189 Suze: just yesterday morning. 359 00:22:49,630 --> 00:22:53,739 Suze: There's this woman and her mother had died and her 360 00:22:53,739 --> 00:22:57,140 Suze: father also had died and the adviser was telling all 361 00:22:57,140 --> 00:23:00,020 Suze: these things and blah blah blah and finally I said, 362 00:23:00,099 --> 00:23:04,050 Suze: you know, this deserves a one on one phone call. 363 00:23:04,380 --> 00:23:05,270 KT: Oh, you called her. 364 00:23:05,339 --> 00:23:09,250 Suze: I will, right, so anyway, I just want to say that, 365 00:23:09,739 --> 00:23:14,839 Suze: asked Suze Podcast at gmail.com. But here is the advice 366 00:23:15,099 --> 00:23:16,540 Suze: that I gave this person. 367 00:23:17,469 --> 00:23:22,550 Suze: All right, so now Daddy has died. Now, your job 368 00:23:22,550 --> 00:23:27,020 Suze: is to take care of mom. What's interesting is mom 369 00:23:27,020 --> 00:23:29,430 Suze: doesn't really have any assets in her name. 370 00:23:30,319 --> 00:23:33,629 Suze: Her house that she's living in is in your name. 371 00:23:34,079 --> 00:23:39,040 Suze: The $100,000 life insurance policy. She could absolutely just say, 372 00:23:39,079 --> 00:23:41,839 Suze: you know what, I don't want it or whatever, and 373 00:23:41,839 --> 00:23:45,869 Suze: let it go to you. So that $100,000 could absolutely 374 00:23:46,160 --> 00:23:50,839 Suze: go into your name as well. Now here's Mom. She 375 00:23:50,839 --> 00:23:54,609 Suze: doesn't have any assets at all, and all of a sudden, 376 00:23:55,390 --> 00:23:58,930 Suze: you let the credit card companies know that Dad died 377 00:23:59,140 --> 00:24:02,560 Suze: and let's see what they do. If they come after mom, 378 00:24:03,099 --> 00:24:05,540 Suze: here's the way that you're going to get back at them. 379 00:24:05,780 --> 00:24:08,899 Suze: You are going to claim bankruptcy for your mother because 380 00:24:08,900 --> 00:24:11,780 Suze: your mother doesn't really have any income. She doesn't really 381 00:24:11,780 --> 00:24:14,410 Suze: have any assets. You are not going to give them 382 00:24:14,410 --> 00:24:17,979 Suze: the pleasure of letting this money earn 29%. 383 00:24:18,076 --> 00:24:20,504 Suze: Interest you are going to become a warrior and you 384 00:24:20,505 --> 00:24:22,855 Suze: are not going to turn your back on this battlefield. 385 00:24:23,026 --> 00:24:25,156 Suze: You are going to protect your mother. You are going 386 00:24:25,156 --> 00:24:28,504 Suze: to protect her assets, and you are going to take 387 00:24:28,505 --> 00:24:32,465 Suze: these banks and let them lose the money. They never 388 00:24:32,465 --> 00:24:35,105 Suze: should have lent it. They don't deserve it back, and 389 00:24:35,105 --> 00:24:37,065 Suze: there you go. All right, KT. 390 00:24:37,145 --> 00:24:40,264 KT: So I thought that that would be your decision because 391 00:24:40,265 --> 00:24:40,625 KT: she's 392 00:24:40,771 --> 00:24:44,552 KT: 84 and really healthy and she has a long way 393 00:24:44,552 --> 00:24:47,661 KT: to go. So why have any debt? Just claim bankrupcy... 394 00:24:47,952 --> 00:24:49,232 Suze: She doesn't have debt, she never even knew it. And 395 00:24:49,552 --> 00:24:53,352 Suze: with that $100,000 from the life insurance policy that the 396 00:24:53,352 --> 00:24:54,501 Suze: kids now have... 397 00:24:55,071 --> 00:24:56,182 KT: They'll take care of her. 398 00:24:56,452 --> 00:24:59,901 Suze: They'll take care of her, you know, they own the house, everything, 399 00:25:00,071 --> 00:25:03,311 Suze: so believe it or not, the mere fact, 400 00:25:03,680 --> 00:25:06,989 Suze: that you own the house that she lives in is 401 00:25:06,989 --> 00:25:12,669 Suze: your father's saving grace. So therefore, and that's what I 402 00:25:12,670 --> 00:25:13,619 Suze: would do. 403 00:25:13,750 --> 00:25:16,430 KT: That was great advice. I love that because I was 404 00:25:16,430 --> 00:25:17,660 KT: thinking the same thing. 405 00:25:17,750 --> 00:25:18,890 Suze: You were thinking that... 406 00:25:18,890 --> 00:25:20,160 KT: Claim bankruptcy. 407 00:25:20,589 --> 00:25:23,930 Suze: All right. There we go, two great minds think alike. 408 00:25:24,030 --> 00:25:27,270 Suze: They think alike. All right, everybody, that brings us to 409 00:25:27,270 --> 00:25:28,060 Suze: the end 410 00:25:28,599 --> 00:25:31,119 Suze: of another Ask KT and Suze Anything podcast. 411 00:25:31,119 --> 00:25:33,109 KT: What are you gonna do Sunday? 412 00:25:33,239 --> 00:25:36,359 Suze: So Sunday will be Suze School and I'll be a 413 00:25:36,359 --> 00:25:41,020 Suze: little bit different is I am gonna talk about diversification 414 00:25:41,359 --> 00:25:45,160 Suze: because many of you are confused. I had diversification in 415 00:25:45,160 --> 00:25:48,119 Suze: my portfolio, you write me, but yet my money is down. 416 00:25:48,609 --> 00:25:53,050 Suze: You say you had diversification, but your money was up. Why? 417 00:25:53,219 --> 00:25:56,729 Suze: So I want to tell you about what my definition 418 00:25:56,729 --> 00:26:01,489 Suze: of true diversification is. I also want to address Pfizer's stock, 419 00:26:01,699 --> 00:26:03,420 Suze: you know, I've told many of you how much I 420 00:26:03,420 --> 00:26:06,410 Suze: love it, and it's currently at an 8% dividend. 421 00:26:06,719 --> 00:26:08,630 Suze: You're writing me and you're afraid they're going to cut 422 00:26:08,630 --> 00:26:12,978 Suze: the dividend, I will address that then. Also, I want 423 00:26:12,979 --> 00:26:15,709 Suze: to talk to you about why it's so important for 424 00:26:15,709 --> 00:26:19,709 Suze: you to listen every single week to the Women and 425 00:26:19,709 --> 00:26:24,829 Suze: Money podcast, especially if you follow a stock recommendation. 426 00:26:25,530 --> 00:26:28,020 Suze: Do you remember a while back? Well, in fact, I'm 427 00:26:28,020 --> 00:26:29,208 Suze: not going to tell you you're going to have to 428 00:26:29,209 --> 00:26:33,369 Suze: wait till Sunday, and if there's time, I want us 429 00:26:33,369 --> 00:26:36,810 Suze: to talk about student loans and the changes that have 430 00:26:36,810 --> 00:26:41,448 Suze: just come back in effect. So until Sunday. 431 00:26:42,699 --> 00:26:45,770 Suze: There's only one thing, isn't there, KT, that we want 432 00:26:45,770 --> 00:26:48,020 Suze: you to remember. What is that smile all about? 433 00:26:48,160 --> 00:26:48,569 KT: People 434 00:26:48,569 --> 00:26:53,119 KT: first, baby, then money, then things, and you stay healthy 435 00:26:53,119 --> 00:26:53,659 KT: and 436 00:26:53,660 --> 00:26:54,319 KT: safe. 437 00:26:54,569 --> 00:26:57,209 Suze: And so if you do that, KT, what will you be? 438 00:26:57,290 --> 00:26:58,839 KT: Unstoppable! 439 00:26:58,969 --> 00:27:01,479 Suze: All right, see you Sunday. bye bye.