1 00:00:31,100 --> 00:00:35,190 Suze: February 12, 2023, Suze O here. Welcome everybody to the Women and 2 00:00:35,190 --> 00:00:39,890 Suze: Money podcast as well as everybody smart enough to listen. 3 00:00:39,890 --> 00:00:45,389 Suze: Super Bowl Sunday, Super Bowl Sunday. KT and I are 4 00:00:45,390 --> 00:00:48,890 Suze: both in Florida. We were supposed to go back to 5 00:00:48,890 --> 00:00:51,430 Suze: the island. But to tell you the truth, we were 6 00:00:51,430 --> 00:00:55,770 Suze: having such a great time in Florida. Going into stores. 7 00:00:55,770 --> 00:00:58,060 Suze: You know when you live on an island. I know 8 00:00:58,060 --> 00:00:59,990 Suze: it sounds strange. There's nothing to do 9 00:01:00,170 --> 00:01:03,000 Suze: except the things that we do not like. You have 10 00:01:03,000 --> 00:01:05,640 Suze: stores that you go into and you see many people, 11 00:01:05,650 --> 00:01:09,350 Suze: it's really very isolated. So here we are back in 12 00:01:09,350 --> 00:01:14,040 Suze: Florida and we're going all over the place and I'm 13 00:01:14,040 --> 00:01:15,880 Suze: just loving it. So we thought, 14 00:01:16,060 --> 00:01:21,110 Suze: okay, let's just stay here. So we're going to stay here. 15 00:01:21,120 --> 00:01:26,350 Suze: And yesterday was Tom, Lynn's husband, which is KT's twin sister. 16 00:01:26,350 --> 00:01:31,480 Suze: It was his 72nd birthday. So he stayed to celebrate 17 00:01:31,480 --> 00:01:36,120 Suze: with him. We love him so much. And now today, 18 00:01:36,130 --> 00:01:36,940 Suze: we're gonna go over to 19 00:01:36,959 --> 00:01:42,180 Suze: to their house and watch Super Bowl together. You know 20 00:01:42,190 --> 00:01:46,500 Suze: who I'm rooting for: the cat's meow, you know it, 21 00:01:46,510 --> 00:01:49,580 Suze: I just want Mahomes to win. I don't know why 22 00:01:49,580 --> 00:01:54,540 Suze: I do. I just do. So we'll see what happens. 23 00:01:54,550 --> 00:01:57,970 Suze: But I was thinking a lot about the Super Bowl 24 00:01:57,980 --> 00:02:01,710 Suze: and I was thinking a lot about Suze School and 25 00:02:01,710 --> 00:02:03,110 Suze: how really 26 00:02:03,820 --> 00:02:04,870 Suze: planning 27 00:02:05,540 --> 00:02:08,820 Suze: the moves for a football team, your football team. And 28 00:02:08,820 --> 00:02:11,480 Suze: you have all these people on your football team and 29 00:02:11,480 --> 00:02:14,430 Suze: you have to make the moves that get you over 30 00:02:14,430 --> 00:02:17,649 Suze: the goal line so that you win eventually. 31 00:02:18,220 --> 00:02:21,430 Suze: And the same is true, believe it or not with 32 00:02:21,440 --> 00:02:27,209 Suze: your money, your players, however is that you are the coach, 33 00:02:27,220 --> 00:02:32,100 Suze: you are the quarterback and all of your team members 34 00:02:32,110 --> 00:02:36,130 Suze: are your bills, bucks and pennies. All of the money 35 00:02:36,150 --> 00:02:37,230 Suze: that you have 36 00:02:38,090 --> 00:02:41,740 Suze: and each one kind of has a different function. 37 00:02:42,450 --> 00:02:45,320 Suze: So it's not like everybody on your team is just 38 00:02:45,320 --> 00:02:49,410 Suze: a quarterback. No, you have all different positions and all 39 00:02:49,410 --> 00:02:54,090 Suze: different goals for each section of your money. And I 40 00:02:54,090 --> 00:02:57,520 Suze: know that may sound silly a little bit, but truthfully 41 00:02:57,530 --> 00:02:58,430 Suze: it's not 42 00:02:59,130 --> 00:03:02,510 Suze: because a lot of you tend to be all or 43 00:03:02,510 --> 00:03:07,030 Suze: nothing investors and what I mean by that is you 44 00:03:07,030 --> 00:03:10,680 Suze: tend to do absolutely nothing with all of the members 45 00:03:10,680 --> 00:03:13,990 Suze: of your financial team. You just let it sit in 46 00:03:13,990 --> 00:03:17,520 Suze: maybe a savings account, you do nothing with it. You 47 00:03:17,520 --> 00:03:20,750 Suze: just let them sit there and if you do that, 48 00:03:20,860 --> 00:03:23,500 Suze: especially with inflation, 49 00:03:23,810 --> 00:03:27,160 Suze: you're never going to go over the goal line, which 50 00:03:27,160 --> 00:03:32,850 Suze: hopefully your goal line is your retirement one day. Or 51 00:03:32,850 --> 00:03:37,880 Suze: you just feeling secure one day. So you have to 52 00:03:37,880 --> 00:03:40,430 Suze: do something and then there are those of you who 53 00:03:40,430 --> 00:03:43,780 Suze: are just always taking risks with your money. You're always 54 00:03:43,780 --> 00:03:46,380 Suze: throwing it all the way down like you're a quarterback 55 00:03:46,380 --> 00:03:49,640 Suze: and you're going for a deep throw the entire time. 56 00:03:49,870 --> 00:03:52,110 Suze: You just, you don't want to go little by little, 57 00:03:52,110 --> 00:03:54,170 Suze: 10 yards by 10 yards, you just want to go 58 00:03:54,170 --> 00:03:57,980 Suze: the whole length of the field. And chances are 59 00:03:58,690 --> 00:04:01,850 Suze: the ball isn't caught and you don't get anywhere. 60 00:04:02,490 --> 00:04:06,100 Suze: So you have to have a combination of everything, you 61 00:04:06,100 --> 00:04:09,210 Suze: have to have your own game plan 62 00:04:10,160 --> 00:04:13,710 Suze: And hopefully that's what we're going to do over this 63 00:04:13,710 --> 00:04:16,850 Suze: year on the women and money podcast 64 00:04:17,830 --> 00:04:21,120 Suze: because there are so many things that you can be 65 00:04:21,120 --> 00:04:25,300 Suze: doing with your money, but you have to know, what 66 00:04:25,310 --> 00:04:28,770 Suze: is it that you want from your money? 67 00:04:29,900 --> 00:04:33,200 Suze: You just got an inheritance or you got a tax 68 00:04:33,200 --> 00:04:36,960 Suze: refund back maybe that you weren't expecting and now you 69 00:04:36,960 --> 00:04:41,800 Suze: have $10,000 in your hands. What is it that you 70 00:04:41,800 --> 00:04:44,589 Suze: want that money to do for you? 71 00:04:45,850 --> 00:04:48,490 Suze: Because typically what happens is you just put it in 72 00:04:48,490 --> 00:04:51,240 Suze: your savings account or checking account and you just let 73 00:04:51,240 --> 00:04:53,779 Suze: it sit there and before you know it's all gone 74 00:04:53,779 --> 00:04:56,190 Suze: because you've spent it on all things that you don't 75 00:04:56,190 --> 00:05:01,200 Suze: need and in the end don't even want. So that's 76 00:05:01,200 --> 00:05:05,420 Suze: what Suze School is about today. Because what I realized 77 00:05:05,430 --> 00:05:10,500 Suze: is last Sunday I started to give you a fabulous 78 00:05:10,500 --> 00:05:15,690 Suze: Suze School seriously as how to move your money around 79 00:05:16,000 --> 00:05:19,380 Suze: how to go from one stock that was doing very 80 00:05:19,380 --> 00:05:22,870 Suze: well for you, paying you a nice dividend. But how 81 00:05:22,870 --> 00:05:27,180 Suze: to change that and go into another stock that was 82 00:05:27,180 --> 00:05:29,929 Suze: paying you more of a dividend because what you wanted 83 00:05:29,930 --> 00:05:32,260 Suze: from that money was income. 84 00:05:32,890 --> 00:05:37,330 Suze: So how did that strategy work out? Take out your 85 00:05:37,330 --> 00:05:40,410 Suze: little Suze notebooks everybody 86 00:05:41,350 --> 00:05:44,480 Suze: because not only am I going to briefly go over 87 00:05:44,480 --> 00:05:47,310 Suze: what that strategy was. So those that didn't listen last 88 00:05:47,310 --> 00:05:50,859 Suze: Sunday can get a brief overview and you can see 89 00:05:50,870 --> 00:05:53,160 Suze: how did we do in one week. 90 00:05:54,089 --> 00:05:57,970 Suze: And I'm also going to talk about the second part 91 00:05:57,980 --> 00:06:01,760 Suze: to that strategy. What happens if you don't have a 92 00:06:01,760 --> 00:06:05,360 Suze: stock that's winning and you're up on it and you 93 00:06:05,360 --> 00:06:09,710 Suze: have a stock that you're actually down and you're losing 94 00:06:09,710 --> 00:06:13,810 Suze: the game here then what do you do? So just 95 00:06:13,820 --> 00:06:19,539 Suze: briefly what's interesting is that last week we talked about 96 00:06:19,550 --> 00:06:20,400 Suze: a couple 97 00:06:20,760 --> 00:06:27,860 Suze: who had purchased 1000 shares of Chevron at $69.50. And 98 00:06:27,870 --> 00:06:32,810 Suze: a week ago, Friday when the markets closed, Chevron closed 99 00:06:32,810 --> 00:06:35,420 Suze: at $169.50. 100 00:06:36,700 --> 00:06:43,020 Suze: And Chevron was paying them $6,040 a year in dividends 101 00:06:43,190 --> 00:06:47,350 Suze: but that was only a 3.56% yield on their money 102 00:06:47,360 --> 00:06:50,670 Suze: which really wasn't that good. Now even though they had 103 00:06:50,670 --> 00:06:51,340 Suze: made 104 00:06:52,150 --> 00:06:59,440 Suze: a nice profit $100,000 they still were only making 3.56% 105 00:06:59,450 --> 00:07:03,310 Suze: on all of it. So one of the suggestions was, 106 00:07:03,330 --> 00:07:07,719 Suze: why not sell because this money was in a retirement account, 107 00:07:07,850 --> 00:07:10,640 Suze: why not sell all of it 108 00:07:11,300 --> 00:07:17,040 Suze: and purchase an energy stock by the name of PXD, Pioneer. 109 00:07:17,870 --> 00:07:23,380 Suze: The symbol is PXD, and it was trading at $220 110 00:07:23,390 --> 00:07:27,770 Suze: a share a week ago, Friday. So they were able 111 00:07:27,770 --> 00:07:34,010 Suze: to if they did this by 768 shares. However, 112 00:07:34,390 --> 00:07:39,420 Suze: PXD pays an extraordinary dividend. We were very conservative and 113 00:07:39,420 --> 00:07:43,110 Suze: said it will only pay you $20 a year. The 114 00:07:43,110 --> 00:07:47,060 Suze: truth is it's paying almost $25 a year in dividends. 115 00:07:47,060 --> 00:07:52,590 Suze: But that's besides the point. And even at just $20 116 00:07:52,600 --> 00:07:54,880 Suze: a year in dividends 117 00:07:55,500 --> 00:08:01,980 Suze: they would have made $9,320 more in dividends than if 118 00:08:01,980 --> 00:08:05,170 Suze: they had left their money simply in Chevron. Are you 119 00:08:05,170 --> 00:08:08,270 Suze: all following me? So that's what we did. 120 00:08:09,160 --> 00:08:14,010 Suze: So this couple went from $6,040 a year in dividends 121 00:08:14,020 --> 00:08:19,660 Suze: to $15,360 a year in dividends. Which is how I 122 00:08:19,660 --> 00:08:22,560 Suze: got the $9,320 more. 123 00:08:23,400 --> 00:08:25,650 Suze: Now that was a week ago 124 00:08:26,330 --> 00:08:30,190 Suze: a lot of you heard that example and you wrote 125 00:08:30,190 --> 00:08:33,780 Suze: me and you all said we bought PXD. We bought PXD. 126 00:08:34,250 --> 00:08:36,520 Suze: Even though I said to all of you I'm not 127 00:08:36,520 --> 00:08:38,750 Suze: telling you to buy it. Although what can I tell you? 128 00:08:38,750 --> 00:08:40,800 Suze: I think it's a good buy here but you have 129 00:08:40,800 --> 00:08:42,320 Suze: to decide on your own 130 00:08:42,830 --> 00:08:46,699 Suze: as many of you know I'm still a tremendous bull 131 00:08:46,710 --> 00:08:50,890 Suze: on energy I think energy has a ways to go 132 00:08:50,900 --> 00:08:53,910 Suze: and if all of you were to follow me on 133 00:08:53,910 --> 00:08:57,880 Suze: my women and money community app you can download it 134 00:08:57,910 --> 00:09:01,380 Suze: by going to Google Play or Apple Apps you would 135 00:09:01,380 --> 00:09:02,000 Suze: have seen 136 00:09:02,315 --> 00:09:04,995 Suze: that I post what I think is going to happen 137 00:09:04,995 --> 00:09:07,245 Suze: in the market, what I think is going to happen 138 00:09:07,245 --> 00:09:10,315 Suze: in energy and I tell you little things like that 139 00:09:10,315 --> 00:09:13,245 Suze: to give you hints as to what I'm doing and 140 00:09:13,245 --> 00:09:18,575 Suze: what I'm thinking in between when Suze Schools drop which 141 00:09:18,575 --> 00:09:21,184 Suze: is a week and a lot can happen in a week. 142 00:09:21,780 --> 00:09:26,160 Suze: So here we are one week later 143 00:09:26,750 --> 00:09:33,910 Suze: And PXD that was at $220 a share a week ago Friday, 144 00:09:33,920 --> 00:09:42,770 Suze: a few days ago on Friday closed at $231.39 a share. 145 00:09:42,780 --> 00:09:48,949 Suze: It is up $11.39 a share 146 00:09:49,460 --> 00:10:00,920 Suze: or 5.16% it is increased 5.16% in just one week. 147 00:10:01,590 --> 00:10:06,220 Suze: So I would say that this was a really good 148 00:10:06,220 --> 00:10:07,949 Suze: thing that they had done 149 00:10:08,760 --> 00:10:13,240 Suze: Now, you also may be wondering but Suze, what happens 150 00:10:13,250 --> 00:10:17,640 Suze: if they had just left their money in Chevron? Would 151 00:10:17,640 --> 00:10:20,260 Suze: Chevron had gone up as much? 152 00:10:21,120 --> 00:10:25,480 Suze: Please remember I told you that you have to know 153 00:10:25,480 --> 00:10:28,920 Suze: the goal of your money. So did you want to 154 00:10:28,920 --> 00:10:32,470 Suze: invest money for the dividends so you could live on it? 155 00:10:32,570 --> 00:10:36,130 Suze: Or do you want to invest money for the growth 156 00:10:36,210 --> 00:10:39,830 Suze: of what you're doing and you don't care about the dividend? 157 00:10:41,400 --> 00:10:46,489 Suze: Just so you know if they had kept Chevron, Chevron 158 00:10:46,490 --> 00:10:51,360 Suze: was a week ago Friday at $169.50 159 00:10:52,440 --> 00:10:58,210 Suze: a few days ago on Friday, it closed at 171.97. 160 00:10:58,230 --> 00:11:04,740 Suze: So it was up only $2.47 a share. However, they 161 00:11:04,740 --> 00:11:12,880 Suze: did own 1000 shares of Chevron versus 768 shares that 162 00:11:12,880 --> 00:11:15,260 Suze: they bought of Pioneer. 163 00:11:15,990 --> 00:11:21,400 Suze: So they only would have been up $2,470 with Chevron 164 00:11:21,480 --> 00:11:32,160 Suze: versus $8,748 with Pioneer. Also remember they're making $9,000 more 165 00:11:32,170 --> 00:11:36,570 Suze: a year in Pioneer as well. Again, I am not 166 00:11:36,570 --> 00:11:40,200 Suze: saying you should be buying pioneer except especially since it 167 00:11:40,200 --> 00:11:42,150 Suze: just had a nice little run here. 168 00:11:42,510 --> 00:11:46,449 Suze: However, do you see how, when you take action with 169 00:11:46,450 --> 00:11:47,189 Suze: your money 170 00:11:48,420 --> 00:11:51,390 Suze: and you take action and go, you know what, I 171 00:11:51,390 --> 00:11:53,240 Suze: don't care if the stock's gonna go up or down 172 00:11:53,240 --> 00:11:55,890 Suze: or whatever. I'm doing it for the dividend 173 00:11:57,020 --> 00:12:00,820 Suze: and then the stock happens to go up as well. 174 00:12:02,260 --> 00:12:05,700 Suze: Now you really made a wise move, 175 00:12:06,440 --> 00:12:12,550 Suze: it's possible that the stock could absolutely go back down again. Absolutely, 176 00:12:12,550 --> 00:12:13,280 Suze: it could, 177 00:12:14,260 --> 00:12:18,990 Suze: but for one week it was a nice move 178 00:12:19,720 --> 00:12:21,900 Suze: But I want to talk about that. 179 00:12:22,540 --> 00:12:25,220 Suze: Too many of you are writing me now and saying, 180 00:12:25,220 --> 00:12:29,480 Suze: oh my God. Suze, Suze I bought PXD and it 181 00:12:29,480 --> 00:12:32,949 Suze: was at $218 a share because it went down a 182 00:12:32,950 --> 00:12:37,480 Suze: little from when I did this example. I bought it 183 00:12:37,510 --> 00:12:41,939 Suze: and now it's at $231 a share. Oh my God, 184 00:12:41,940 --> 00:12:44,610 Suze: Suze I made so much money, I can't even stand 185 00:12:44,610 --> 00:12:46,690 Suze: it in just a few days 186 00:12:47,650 --> 00:12:50,420 Suze: If you're feeling like that now what are you gonna do? 187 00:12:51,530 --> 00:12:53,200 Suze: Are you going to keep it, are you going to 188 00:12:53,200 --> 00:12:55,840 Suze: sell it? Are you going to freak out when all 189 00:12:55,840 --> 00:12:59,300 Suze: of a sudden it goes back down again to 220 190 00:12:59,300 --> 00:13:02,770 Suze: or 215 or lower which it absolutely could. 191 00:13:03,700 --> 00:13:07,620 Suze: So when you get that excited and you watch your 192 00:13:07,620 --> 00:13:11,580 Suze: stocks every single day and you watch the moves that 193 00:13:11,580 --> 00:13:16,719 Suze: they make every single day. You now are going to 194 00:13:16,720 --> 00:13:17,860 Suze: be benched. 195 00:13:18,590 --> 00:13:22,200 Suze: Am I taking this Super bowl thing too far? Because 196 00:13:22,210 --> 00:13:25,380 Suze: you're going to make the wrong moves. 197 00:13:26,210 --> 00:13:29,290 Suze: You're not going to get where you wanna go cause 198 00:13:29,300 --> 00:13:32,000 Suze: you're gonna get so happy when it goes up then 199 00:13:32,000 --> 00:13:34,910 Suze: it's gonna go down and you're gonna get so depressed 200 00:13:34,920 --> 00:13:38,670 Suze: and your emotions are gonna take over and you're going 201 00:13:38,670 --> 00:13:43,290 Suze: to get confused. If you bought like these people did 202 00:13:43,290 --> 00:13:49,030 Suze: in my example PXD, simply for the dividend, 203 00:13:50,070 --> 00:13:53,060 Suze: the dividends good, everything's pretty good. You don't need to 204 00:13:53,059 --> 00:13:55,120 Suze: watch it every day. You can if you want to 205 00:13:55,120 --> 00:13:58,060 Suze: but but not to get so excited about it and 206 00:13:58,059 --> 00:14:00,140 Suze: go oh my God look at how much money I made, 207 00:14:00,150 --> 00:14:03,970 Suze: you do not make money in the stock market until 208 00:14:03,970 --> 00:14:06,939 Suze: you sell the stocks that you own. 209 00:14:07,960 --> 00:14:11,809 Suze: And then if you don't reinvest them, okay then you've 210 00:14:11,809 --> 00:14:12,559 Suze: made money 211 00:14:13,630 --> 00:14:16,380 Suze: but just because the stock went up 212 00:14:17,130 --> 00:14:22,540 Suze: over 5% in a week doesn't mean that you made 213 00:14:22,540 --> 00:14:23,100 Suze: money 214 00:14:23,930 --> 00:14:28,400 Suze: because you haven't sold. But one thing for sure is 215 00:14:28,400 --> 00:14:31,440 Suze: you are going to make the dividend. 216 00:14:32,070 --> 00:14:32,730 Suze: So 217 00:14:33,370 --> 00:14:35,830 Suze: if your game plan is 218 00:14:36,690 --> 00:14:40,530 Suze: to simply invest to live off of the dividends, the 219 00:14:40,540 --> 00:14:45,600 Suze: income of your stocks then just focus on the dividends 220 00:14:45,600 --> 00:14:49,090 Suze: which is what that strategy last week was all about. 221 00:14:50,500 --> 00:14:54,340 Suze: If however you want to make money by investing in 222 00:14:54,340 --> 00:14:58,530 Suze: the stock market then okay you can do that but 223 00:14:58,530 --> 00:15:01,660 Suze: you have to be very careful. So 224 00:15:02,340 --> 00:15:05,910 Suze: that was a little recap of last week. 225 00:15:06,770 --> 00:15:11,040 Suze: This week however we need another game plan and we 226 00:15:11,040 --> 00:15:14,380 Suze: need another game plan because many of you wrote and 227 00:15:14,380 --> 00:15:20,410 Suze: said Suze I bought PXD at $288 a share 228 00:15:21,630 --> 00:15:26,030 Suze: and now it's at $231 a share. 229 00:15:26,660 --> 00:15:30,710 Suze: What do I do in my situation? You gave an 230 00:15:30,710 --> 00:15:34,390 Suze: example of somebody buying a stock that was down at 231 00:15:34,390 --> 00:15:39,290 Suze: $69 a share and then it went to 169.50 and 232 00:15:39,290 --> 00:15:42,290 Suze: they made all this money. So that was easy because 233 00:15:42,290 --> 00:15:46,610 Suze: they are up, but I am down. So what would 234 00:15:46,610 --> 00:15:48,830 Suze: my strategy be? 235 00:15:49,560 --> 00:15:53,010 Suze: Now, there may be many of you that are investing 236 00:15:53,010 --> 00:15:56,240 Suze: for income and dividends and that's what this Suze School 237 00:15:56,240 --> 00:15:57,060 Suze: is about 238 00:15:57,710 --> 00:16:01,740 Suze: And you did buy a stock like PXD (Pioneer) at 239 00:16:01,970 --> 00:16:06,690 Suze: 288 and here it is down at 231. So you 240 00:16:06,690 --> 00:16:15,410 Suze: have a $57 per share loss, $57 is a considerable loss, 241 00:16:15,420 --> 00:16:19,390 Suze: that's 20% on your money 242 00:16:20,150 --> 00:16:23,830 Suze: And you have to think about that. So what do 243 00:16:23,840 --> 00:16:27,550 Suze: you do? The first question, are you all writing this down? 244 00:16:28,490 --> 00:16:34,260 Suze: Is this money invested in a retirement account or outside 245 00:16:34,270 --> 00:16:35,750 Suze: of a retirement account? 246 00:16:36,280 --> 00:16:40,050 Suze: Because what you do with money inside a retirement account 247 00:16:40,200 --> 00:16:43,100 Suze: is very different than what you do with money that 248 00:16:43,100 --> 00:16:46,239 Suze: is outside of a retirement account. 249 00:16:46,770 --> 00:16:50,510 Suze: And the reason is inside a retirement account, 250 00:16:51,030 --> 00:16:54,210 Suze: you don't have any taxes. You can buy and sell 251 00:16:54,210 --> 00:16:57,460 Suze: and buy and sell and it doesn't matter, you don't 252 00:16:57,460 --> 00:17:00,260 Suze: have to pay tax on the gain, while it's in 253 00:17:00,260 --> 00:17:02,730 Suze: the retirement account and you don't get to take the 254 00:17:02,730 --> 00:17:07,830 Suze: losses off your taxes. Outside of a retirement account. 255 00:17:08,580 --> 00:17:12,610 Suze: when you sell, you have to pay taxes on your gain, 256 00:17:13,540 --> 00:17:17,110 Suze: Write down what I'm about to say if you haven't 257 00:17:17,109 --> 00:17:22,010 Suze: held the stock or the investment that you own for 258 00:17:22,010 --> 00:17:25,950 Suze: at least one year and one day you will pay 259 00:17:25,960 --> 00:17:30,879 Suze: ordinary income tax on that money. If you're in a 260 00:17:30,880 --> 00:17:32,710 Suze: high income tax bracket, 261 00:17:33,350 --> 00:17:37,220 Suze: let's say you're in the 37% tax bracket, you could 262 00:17:37,220 --> 00:17:41,740 Suze: lose 37% more when you sell because if you had 263 00:17:41,740 --> 00:17:42,679 Suze: a gain 264 00:17:43,450 --> 00:17:45,690 Suze: that's going to go to Uncle Sam. 265 00:17:46,550 --> 00:17:50,070 Suze: Also, you need to know that if you do hold 266 00:17:50,070 --> 00:17:54,639 Suze: a stock longer than one year, then you still have 267 00:17:54,640 --> 00:17:58,139 Suze: to pay tax on it. But that tax is known 268 00:17:58,150 --> 00:18:03,560 Suze: as the capital gains tax and capital gains tax runs 269 00:18:03,570 --> 00:18:07,300 Suze: from about 0% to about 20%. 270 00:18:15,660 --> 00:18:21,700 Suze: So capital gains tax is always less than ordinary income tax. 271 00:18:22,920 --> 00:18:28,060 Suze: Likewise, if you have a loss, you have a $57 272 00:18:28,060 --> 00:18:33,080 Suze: per share loss now that you would either get to 273 00:18:33,090 --> 00:18:37,640 Suze: offset the gains that you've taken in a year or 274 00:18:37,640 --> 00:18:39,889 Suze: if you don't have any gains 275 00:18:40,410 --> 00:18:45,060 Suze: or if you have too much of a loss versus a gain, 276 00:18:46,060 --> 00:18:50,300 Suze: then you could write off $3,000 a year every year 277 00:18:50,310 --> 00:18:53,380 Suze: until all of it has been written off. 278 00:18:54,500 --> 00:18:58,139 Suze: Now, if that was confusing to you, that is a 279 00:18:58,140 --> 00:19:02,140 Suze: sign that you have to rewind and listen to it again. 280 00:19:02,590 --> 00:19:05,690 Suze: If it's still confusing to you, you have to rewind 281 00:19:05,700 --> 00:19:07,430 Suze: and listen to it again 282 00:19:08,180 --> 00:19:12,130 Suze: Because if you have money outside of a retirement account, 283 00:19:12,330 --> 00:19:17,940 Suze: you have got to take taxes into consideration as much 284 00:19:17,950 --> 00:19:22,280 Suze: as what the stock itself or the investment you're in 285 00:19:22,290 --> 00:19:26,320 Suze: happens to be trading at. Do you understand that? 286 00:19:27,040 --> 00:19:30,479 Suze: Let's go back for a second now and assume 287 00:19:31,100 --> 00:19:35,830 Suze: that these people that I talked about last week, they 288 00:19:35,830 --> 00:19:43,199 Suze: had purchased 1000 shares of PXD at $288 a share. Now 289 00:19:43,200 --> 00:19:47,210 Suze: I get that's a whole lot of money in one stock. 290 00:19:47,280 --> 00:19:49,330 Suze: But let's just say they did it. 291 00:19:50,030 --> 00:19:54,199 Suze: And now they're seeing it all the way down at 292 00:19:54,200 --> 00:19:58,420 Suze: 231 or even down to 220 where it was a 293 00:19:58,420 --> 00:19:59,369 Suze: week ago. 294 00:20:00,000 --> 00:20:03,840 Suze: What when my advice had been to them, 295 00:20:04,560 --> 00:20:08,320 Suze: What I would have said to them, because it is 296 00:20:08,330 --> 00:20:10,350 Suze: in a retirement account 297 00:20:11,020 --> 00:20:13,990 Suze: and you are not going to be able to take 298 00:20:14,000 --> 00:20:19,020 Suze: that loss off your taxes. And the reason that you 299 00:20:19,020 --> 00:20:25,200 Suze: bought the stock was for the dividend even at $288 300 00:20:25,200 --> 00:20:28,930 Suze: a share which you bought it at, it was paying 301 00:20:28,940 --> 00:20:32,500 Suze: an 8.8% dividend 302 00:20:32,650 --> 00:20:36,450 Suze: which is still a fabulous dividend. So even though it 303 00:20:36,450 --> 00:20:41,800 Suze: went down in value you are still getting the dividend. 304 00:20:42,720 --> 00:20:47,120 Suze: And you're getting the dividend in a good quality stock. 305 00:20:47,869 --> 00:20:50,590 Suze: So if you looked at it and you knew that 306 00:20:50,590 --> 00:20:54,960 Suze: the dividend was pretty solid because the company had a 307 00:20:54,960 --> 00:20:58,120 Suze: lot of cash flow. They were making money they were 308 00:20:58,119 --> 00:21:03,760 Suze: doing really well with their profits. Which Pioneer, again symbol PXD is 309 00:21:03,770 --> 00:21:05,180 Suze: absolutely doing 310 00:21:05,750 --> 00:21:10,210 Suze: my advice to you would be do nothing, 311 00:21:11,760 --> 00:21:17,659 Suze: Do absolutely nothing. Maybe if you didn't own so many 312 00:21:17,660 --> 00:21:21,659 Suze: shares and you had cash in your account. 313 00:21:22,220 --> 00:21:24,930 Suze: I might say why not buy some more here? 314 00:21:25,790 --> 00:21:30,510 Suze: Because if you aren't willing to sell something, you should 315 00:21:30,510 --> 00:21:32,560 Suze: be willing to buy more 316 00:21:33,310 --> 00:21:34,669 Suze: Because otherwise 317 00:21:35,660 --> 00:21:38,080 Suze: you don't have any faith in that stock really. 318 00:21:38,840 --> 00:21:43,670 Suze: So if you owned it at 288, if you were 319 00:21:43,670 --> 00:21:46,450 Suze: able to buy more at 220 320 00:21:47,410 --> 00:21:49,550 Suze: and let's just say you were able to buy an 321 00:21:49,560 --> 00:21:53,320 Suze: equal amount, maybe you only had 100 shares of it. 322 00:21:53,330 --> 00:21:56,300 Suze: So now you're going to buy another 100 shares or 323 00:21:56,310 --> 00:21:58,480 Suze: you had 50 shares of it and now you're gonna 324 00:21:58,480 --> 00:22:00,180 Suze: buy another 50 shares. 325 00:22:00,960 --> 00:22:03,439 Suze: Just let's say you did do that. 326 00:22:04,710 --> 00:22:11,040 Suze: Then your cost basis would become $254 on this stock 327 00:22:12,460 --> 00:22:17,379 Suze: and your yield would be approximately 10%. 328 00:22:18,190 --> 00:22:22,869 Suze: So you would have lowered your cost basis from 288 329 00:22:23,270 --> 00:22:25,120 Suze: down to 254. 330 00:22:25,910 --> 00:22:29,109 Suze: Your yield because of the dividend it's paying which is about 331 00:22:29,109 --> 00:22:32,840 Suze: $25 a share in reality is almost 10%. 332 00:22:33,730 --> 00:22:39,879 Suze: And here you are today with the stock at $231 333 00:22:39,890 --> 00:22:40,700 Suze: a share. 334 00:22:41,340 --> 00:22:48,710 Suze: So now you're only down $23 a share versus 57. 335 00:22:49,869 --> 00:22:53,520 Suze: Did that just make sense to you? Which is why 336 00:22:54,369 --> 00:22:58,810 Suze: when stocks are high, I don't want you to put 337 00:22:58,820 --> 00:23:02,830 Suze: a lump sum of money in it. I want you 338 00:23:02,840 --> 00:23:07,020 Suze: to dollar cost average. Maybe what you do is you 339 00:23:07,020 --> 00:23:09,359 Suze: buy a specific amount 340 00:23:09,990 --> 00:23:14,280 Suze: and you keep enough money in cash within your retirement account, 341 00:23:14,290 --> 00:23:18,690 Suze: earning money either in a short term Treasury or whatever 342 00:23:18,690 --> 00:23:22,740 Suze: it may be. And if that stock happens to go 343 00:23:22,740 --> 00:23:23,450 Suze: down 344 00:23:24,119 --> 00:23:26,810 Suze: now you can buy an equal number of shares 345 00:23:27,570 --> 00:23:30,419 Suze: again and dollar cost average down 346 00:23:31,470 --> 00:23:34,350 Suze: And maybe that's how you do it over a year 347 00:23:34,350 --> 00:23:37,620 Suze: period of time when things are uncertain 348 00:23:38,800 --> 00:23:42,830 Suze: When a stock is really low however and paying an 349 00:23:42,830 --> 00:23:46,700 Suze: incredible dividend at that price 350 00:23:47,930 --> 00:23:51,360 Suze: then I don't have a problem with you putting in 351 00:23:51,369 --> 00:23:54,760 Suze: a lump sum and buying a large amount if that's 352 00:23:54,760 --> 00:23:56,140 Suze: what you want to do. 353 00:23:56,910 --> 00:24:00,420 Suze: So that would be my advice to you. If you 354 00:24:00,420 --> 00:24:03,730 Suze: were in a retirement account and you happen to own 355 00:24:03,740 --> 00:24:08,130 Suze: PXD or any stock that you bought, high 356 00:24:08,859 --> 00:24:12,250 Suze: paying you a dividend and now it's low. 357 00:24:13,730 --> 00:24:18,770 Suze: You're outside of a retirement account. You bought 1000 shares 358 00:24:18,780 --> 00:24:23,210 Suze: of PXD at $288 a share. 359 00:24:23,780 --> 00:24:30,210 Suze: Last Friday it was at $231 a share. That is 360 00:24:30,210 --> 00:24:39,170 Suze: a $57 per share loss or you are down $57,000 361 00:24:39,180 --> 00:24:41,050 Suze: on this investment. 362 00:24:42,010 --> 00:24:44,050 Suze: What should you do? 363 00:24:44,900 --> 00:24:49,440 Suze: Now, the truth is if you did nothing - okay you're still making, 364 00:24:49,440 --> 00:24:53,740 Suze: like I said about 8.8% on your money in terms 365 00:24:53,740 --> 00:24:59,490 Suze: of the yield the dividend. However, there is another strategy 366 00:24:59,600 --> 00:25:04,679 Suze: that you can do to increase your money to make 367 00:25:04,680 --> 00:25:09,470 Suze: more money out of less. What I would do in 368 00:25:09,470 --> 00:25:13,649 Suze: this situation, is it doesn't matter how long you've held it. 369 00:25:14,380 --> 00:25:17,020 Suze: All that matters is that it is outside of a 370 00:25:17,020 --> 00:25:18,209 Suze: retirement account. 371 00:25:18,940 --> 00:25:26,159 Suze: And I would sell it and take a $57,000 loss. 372 00:25:26,900 --> 00:25:29,940 Suze: Now if you took a $57,000 loss, 373 00:25:30,760 --> 00:25:34,270 Suze: again you can use that on many things like I 374 00:25:34,270 --> 00:25:38,110 Suze: said earlier to offset gains that maybe you've taken. 375 00:25:38,740 --> 00:25:43,550 Suze: Or at least $3,000 a year off of your income 376 00:25:43,550 --> 00:25:46,359 Suze: tax until it's all used up. 377 00:25:47,060 --> 00:25:51,980 Suze: Then you have to wait at least 30 days till 378 00:25:51,980 --> 00:25:55,190 Suze: you can buy PXD back. 379 00:25:55,869 --> 00:25:59,390 Suze: Now there is a rule that says when you have 380 00:25:59,390 --> 00:26:01,159 Suze: sold for a loss 381 00:26:01,869 --> 00:26:09,060 Suze: you cannot buy that stock back for at least 30 days. 382 00:26:09,080 --> 00:26:12,899 Suze: That's called the 30 day wash rule. If you buy 383 00:26:12,900 --> 00:26:16,430 Suze: it back within those 30 days you do not get 384 00:26:16,430 --> 00:26:18,490 Suze: to take the money off of your taxes. 385 00:26:19,460 --> 00:26:24,780 Suze: Alright so here you are, you now have a $57,000 386 00:26:24,780 --> 00:26:26,260 Suze: loss in your pocket 387 00:26:26,950 --> 00:26:29,630 Suze: that you can use in many different ways. 388 00:26:30,550 --> 00:26:34,379 Suze: And let's just assume over those next 30 days, two 389 00:26:34,380 --> 00:26:38,230 Suze: things are gonna happen. Actually three things; the stock will 390 00:26:38,230 --> 00:26:42,260 Suze: stay at about $231 a share, or the stock can 391 00:26:42,260 --> 00:26:48,070 Suze: go up dramatically or the stock could go back down. 392 00:26:48,820 --> 00:26:53,419 Suze: Now the chances within 30 days of this stock going 393 00:26:53,430 --> 00:26:58,790 Suze: up more than 10% is pretty nil. But let's just 394 00:26:58,790 --> 00:27:02,480 Suze: say it did that, let's just say it went up 395 00:27:02,490 --> 00:27:07,050 Suze: in the next 30 days to $254 a share 396 00:27:07,600 --> 00:27:10,170 Suze: And now you buy it back. 397 00:27:11,100 --> 00:27:14,159 Suze: At $254 a share, 398 00:27:15,080 --> 00:27:20,119 Suze: That's still a better price than $288 a share. 399 00:27:20,980 --> 00:27:24,880 Suze: And now what you've done, is you've now also increased 400 00:27:24,880 --> 00:27:29,890 Suze: your dividend. Because remember at $254 a share, 401 00:27:30,690 --> 00:27:33,340 Suze: with a $25 a year dividend, which is what they're 402 00:27:33,340 --> 00:27:39,630 Suze: currently paying this year, that's a 10% annualized yield for dividends, 403 00:27:39,630 --> 00:27:43,399 Suze: which is what you want. So you've increased your dividend 404 00:27:43,400 --> 00:27:51,820 Suze: yield by 1.2%. You gave yourself a $57,000 tax loss 405 00:27:53,500 --> 00:27:55,109 Suze: and you're back in the stock. 406 00:27:56,990 --> 00:28:01,220 Suze: So, really by just a little bit of thinking and 407 00:28:01,220 --> 00:28:05,869 Suze: doing that strategy, it would be very difficult for you 408 00:28:05,869 --> 00:28:09,750 Suze: to lose. Even if the stock went all the way 409 00:28:09,750 --> 00:28:15,180 Suze: back up to $288 in 30 days, which is really 410 00:28:15,220 --> 00:28:16,580 Suze: not going to happen. 411 00:28:17,740 --> 00:28:20,260 Suze: So you'd be at the same place, but you gave 412 00:28:20,260 --> 00:28:23,030 Suze: yourself a $57,000 tax loss. 413 00:28:24,420 --> 00:28:26,430 Suze: So do you understand, 414 00:28:27,640 --> 00:28:31,209 Suze: Am I making sense to you? How if you just 415 00:28:31,220 --> 00:28:33,290 Suze: start to play the game, 416 00:28:33,840 --> 00:28:36,710 Suze: you start to plan the moves that you want to 417 00:28:36,710 --> 00:28:40,870 Suze: make when things have gone in your direction? They've gone 418 00:28:40,880 --> 00:28:44,460 Suze: up dramatically, the question has to be asked, should I 419 00:28:44,460 --> 00:28:48,220 Suze: keep the stock, especially if I bought it for a dividend? 420 00:28:48,950 --> 00:28:52,590 Suze: Because what is it pain for you with that increase? 421 00:28:53,410 --> 00:28:58,900 Suze: Or if a stock goes way down, what should you do? 422 00:28:59,320 --> 00:29:02,710 Suze: I've just given you a strategy for inside a retirement account, 423 00:29:02,720 --> 00:29:04,840 Suze: outside of a retirement account. 424 00:29:05,830 --> 00:29:10,340 Suze: In all kinds of situations between last week Suze School 425 00:29:10,350 --> 00:29:14,020 Suze: and this week's Suze School. You are to mark these 426 00:29:14,020 --> 00:29:18,000 Suze: two Suze Schools to come back when you find that 427 00:29:18,000 --> 00:29:20,530 Suze: you may be in this situation one day and trust 428 00:29:20,530 --> 00:29:24,390 Suze: me you will be in this situation one day, then 429 00:29:24,400 --> 00:29:30,280 Suze: you will know exactly what you should do. Alright everybody, 430 00:29:30,430 --> 00:29:32,210 Suze: so what team are you rooting for? 431 00:29:32,460 --> 00:29:37,080 Suze: I hope whichever team you're rooting for, they win. 432 00:29:37,820 --> 00:29:40,210 Suze: Because there's got to be a winner and there's got 433 00:29:40,210 --> 00:29:42,070 Suze: to be a loser, but I don't know... if you 434 00:29:42,070 --> 00:29:43,940 Suze: make it to the Super Bowl. I'm not sure that 435 00:29:43,940 --> 00:29:46,810 Suze: you could ever even think of yourself as a loser. 436 00:29:46,910 --> 00:29:51,850 Suze: So until Thursday, when Miss Travis joins me again for 437 00:29:51,850 --> 00:29:54,500 Suze: Ask KT and Suze Anything, 438 00:29:55,310 --> 00:29:59,890 Suze: there's really one thing that we want you to say 439 00:29:59,970 --> 00:30:03,650 Suze: every single day before you get out of bed 440 00:30:03,930 --> 00:30:08,620 Suze: and that is as follows: today, wherever I go, I 441 00:30:08,620 --> 00:30:14,140 Suze: will create a more joyful, peaceful and loving world. Don't 442 00:30:14,150 --> 00:30:16,540 Suze: ever let anybody stop you from being who you are 443 00:30:16,540 --> 00:30:19,780 Suze: meant to be and don't you ever stop yourself from 444 00:30:19,780 --> 00:30:23,350 Suze: doing something that you want to do and why is that? 445 00:30:23,360 --> 00:30:28,590 Suze: Because I want all of you to be unstoppable.