1 00:00:01,490 --> 00:00:01,950 Music: Music In. 2 00:00:38,430 --> 00:00:42,860 Suze: May 4th 2023. Welcome everybody to the Women and Money Podcast and Everybody 3 00:00:42,900 --> 00:00:49,090 Suze: Smart Enough to Listen. And this is Ask KT and 4 00:00:49,098 --> 00:00:50,500 Suze: Suze Anything... 5 00:00:50,509 --> 00:00:53,580 KT: We have so many great questions here. This, this is 6 00:00:53,590 --> 00:00:56,520 KT: the best podcast question lineup 7 00:00:56,750 --> 00:00:59,090 KT: that I have put together for all of you in 8 00:00:59,099 --> 00:01:00,759 KT: a very long time. 9 00:01:00,770 --> 00:01:05,260 Suze: KT also told me because of the nature of these 10 00:01:05,269 --> 00:01:11,650 Suze: questions she's picked out the quizze for herself, right. So 11 00:01:11,660 --> 00:01:14,569 Suze: she's going to be asking it because she told me 12 00:01:14,580 --> 00:01:16,830 Suze: we sat down and I said, why are you smiling? 13 00:01:17,000 --> 00:01:18,099 Suze: And she said, let me tell a story. 14 00:01:18,184 --> 00:01:20,684 Suze: All right, because she wants to tell you. And she 15 00:01:20,694 --> 00:01:22,815 Suze: said these are really... 16 00:01:22,824 --> 00:01:24,544 KT: Want to start with the quizzie? 17 00:01:24,684 --> 00:01:28,535 Suze: No, these are really, really different questions that I have 18 00:01:28,544 --> 00:01:34,264 Suze: been saving because they're really more emotional in nature than 19 00:01:34,275 --> 00:01:39,514 Suze: anything else. So I have the quiz for you Suze, today. 20 00:01:39,750 --> 00:01:42,919 Suze: So, all right, here's your, that quizzie will be to me. 21 00:01:42,930 --> 00:01:45,330 Suze: All right. All right. I can't wait to hear why 22 00:01:45,339 --> 00:01:48,440 Suze: these questions are so different than all the others because 23 00:01:49,430 --> 00:01:50,860 Suze: I wait and see. Right. 24 00:01:51,029 --> 00:01:54,040 KT: It, it talks about a Roth once but in a 25 00:01:54,050 --> 00:01:58,550 KT: much more interesting way. All right. First one, Suze is, 26 00:01:58,800 --> 00:02:02,800 KT: it's called a strange question but she didn't sign it, 27 00:02:02,809 --> 00:02:05,760 KT: but it's called a strange question. 28 00:02:06,050 --> 00:02:09,570 KT: So, just that title got... caught my eye, but there's 29 00:02:09,580 --> 00:02:11,199 KT: no stranger... 30 00:02:11,339 --> 00:02:12,880 Suze: Did it catch your left or your right eye? 31 00:02:12,919 --> 00:02:18,589 KT: Both, both. A strange question: my ex-husband and then she 32 00:02:18,600 --> 00:02:22,520 KT: says we were married for 12 years who totally was 33 00:02:22,529 --> 00:02:28,820 KT: dishonest in every possible way with our divorce settlement, left 34 00:02:28,830 --> 00:02:31,079 KT: me penniless and powerless 35 00:02:31,309 --> 00:02:35,199 KT: after years of listening to you, Suze, I worked my 36 00:02:35,210 --> 00:02:41,300 KT: way back up. So, congratulations on that stranger. I own 37 00:02:41,309 --> 00:02:44,880 KT: a home outright. I have money in a Roth retirement 38 00:02:44,889 --> 00:02:51,179 KT: account and will be collecting Social Security. However, my ex's 39 00:02:51,190 --> 00:02:54,038 KT: Social Security is more than mine. 40 00:02:54,500 --> 00:02:57,309 KT: But I feel, and I guess it's half, right. 41 00:02:57,320 --> 00:03:00,460 Suze: She would, I think what she's saying is half of 42 00:03:00,470 --> 00:03:03,429 Suze: his is more than her total hers. 43 00:03:03,440 --> 00:03:07,309 KT: But I feel like if I collect half of his, 44 00:03:07,460 --> 00:03:11,339 KT: he will be back in my life. Suze, what should 45 00:03:11,350 --> 00:03:12,038 KT: I do? 46 00:03:12,050 --> 00:03:15,070 Suze: Collect half of his? Right. If you could collect all 47 00:03:15,080 --> 00:03:16,429 Suze: of his, listen to me, 48 00:03:16,788 --> 00:03:20,459 Suze: he will not be back in your life. He will 49 00:03:20,470 --> 00:03:24,910 Suze: not even know that you are collecting half of his 50 00:03:24,919 --> 00:03:28,720 Suze: on any level. That's just something that you do directly 51 00:03:28,729 --> 00:03:34,759 Suze: with the Social Security administration. So, girlfriend don't punish yourself 52 00:03:34,770 --> 00:03:37,460 Suze: and get less money because you think he's gonna be 53 00:03:37,470 --> 00:03:38,600 Suze: back in your life. 54 00:03:38,979 --> 00:03:42,960 Suze: Maybe at this point you can think, oh, well, this 55 00:03:42,970 --> 00:03:45,660 Suze: is one good thing I got from him at least. 56 00:03:45,669 --> 00:03:47,470 Suze: And then just smile sometimes... 57 00:03:48,039 --> 00:03:49,509 KT: It's easy, she just goes online, right? 58 00:03:49,820 --> 00:03:53,960 Suze: Yeah. Just go online. You do it. He'll never ever. No. 59 00:03:53,990 --> 00:03:54,720 Suze: All right, great. 60 00:03:55,740 --> 00:03:57,690 KT: So the next one is from Johnny. 61 00:03:57,960 --> 00:04:01,789 KT: When I read the words risk on and risk off, 62 00:04:01,800 --> 00:04:05,330 KT: what do they mean? This is investing... He said that 63 00:04:05,339 --> 00:04:08,550 KT: when he reads this, when he invest in the stock market, 64 00:04:08,559 --> 00:04:10,410 KT: I have no idea what that means. 65 00:04:10,419 --> 00:04:14,369 Suze: A lot of time analysts will tell you all right, 66 00:04:14,380 --> 00:04:17,510 Suze: the risk is on or they'll say the risk is 67 00:04:17,519 --> 00:04:21,769 Suze: off and what that means is when risk is on, 68 00:04:22,079 --> 00:04:25,670 Suze: they think the stock market is looking good. 69 00:04:26,119 --> 00:04:30,469 Suze: And therefore it's really wise to be investing in the 70 00:04:30,480 --> 00:04:34,869 Suze: stock market and to take that risk. When they say 71 00:04:34,880 --> 00:04:38,769 Suze: the risk is off, that means they do not like 72 00:04:38,779 --> 00:04:42,510 Suze: what they see in the stock market and therefore don't 73 00:04:42,519 --> 00:04:45,940 Suze: take a risk and invest. It's usually for like day 74 00:04:45,950 --> 00:04:50,029 Suze: traders and things like that. So Johnny must be a 75 00:04:50,040 --> 00:04:53,600 Suze: day trader. So when risk off 76 00:04:53,910 --> 00:04:57,640 Suze: is something that is said in regards to the stock market, 77 00:04:57,738 --> 00:05:00,719 Suze: they don't want you to be buying. When risk is on, 78 00:05:00,730 --> 00:05:03,559 Suze: it's like, come on, let's take this risk, let's put 79 00:05:03,570 --> 00:05:05,640 Suze: it on. We'll probably make some money. 80 00:05:06,320 --> 00:05:07,719 KT: And where do you see that? 81 00:05:07,820 --> 00:05:10,130 Suze: Usually I see it all the time and some of 82 00:05:10,140 --> 00:05:13,589 Suze: the reports I get, especially the ones I get from 83 00:05:13,600 --> 00:05:17,079 Suze: Katie Stockton. She'll say the risk is on, the risk 84 00:05:17,089 --> 00:05:19,040 Suze: is off. She'll say it all the time. Yeah. 85 00:05:19,049 --> 00:05:23,329 KT: I didn't know that. Ok. Next question is from Marcia. I 86 00:05:23,339 --> 00:05:27,709 KT: have a dilemma. Ok. Well, this is an interesting one 87 00:05:28,000 --> 00:05:30,549 KT: and I bet it happens to people often ready? 88 00:05:30,760 --> 00:05:34,738 KT: I have a dilemma. My husband's parents want to give 89 00:05:34,750 --> 00:05:39,380 KT: us money to buy a home outright, but only if 90 00:05:39,390 --> 00:05:42,070 KT: the home is in the name of my husband 91 00:05:42,369 --> 00:05:47,890 KT: and... ready for this, Suze, this is... if he dies, 92 00:05:47,899 --> 00:05:52,410 KT: the home goes back to them. And then Marcia said, Suze, 93 00:05:52,420 --> 00:05:56,709 KT: that makes me feel horrible. But yet my husband wants 94 00:05:56,720 --> 00:05:59,730 KT: to do it anyway. What are your thoughts? 95 00:06:00,089 --> 00:06:05,269 Suze: You know, so many times, especially with kids who have 96 00:06:05,279 --> 00:06:09,390 Suze: trusts that are set up that they're to get money, 97 00:06:09,970 --> 00:06:13,458 Suze: the trusts are actually controlled and the trust will say 98 00:06:13,709 --> 00:06:16,920 Suze: you cannot leave this money to anybody that you marry. 99 00:06:16,928 --> 00:06:19,369 Suze: If you use this money to buy a home and 100 00:06:19,380 --> 00:06:22,880 Suze: something happens, the money comes back to the trust and 101 00:06:22,890 --> 00:06:25,760 Suze: it's like they just get you and they won't let 102 00:06:25,769 --> 00:06:29,440 Suze: you go. And I can see why your husband would 103 00:06:29,450 --> 00:06:33,320 Suze: want to do that. Obviously, he comes from a wealthy family. 104 00:06:34,279 --> 00:06:36,929 Suze: Or a family that's been really good with money. 105 00:06:37,149 --> 00:06:37,170 KT: Or they don't like Marcia. 106 00:06:38,269 --> 00:06:41,029 Suze: No, no, they like... this has nothing to do with Marcia. 107 00:06:41,040 --> 00:06:43,700 Suze: This has to do with, they are going to give 108 00:06:43,709 --> 00:06:46,989 Suze: enough money to buy, to buy house out right. That 109 00:06:47,000 --> 00:06:50,339 Suze: is a lot of money to do so that their 110 00:06:50,350 --> 00:06:52,929 Suze: son can be secure. 111 00:06:53,649 --> 00:06:57,809 Suze: But what they're not understanding is it's going to cause trouble. 112 00:06:57,820 --> 00:07:02,119 Suze: In my opinion, it already does. Which is why Marcia wrote. 113 00:07:02,839 --> 00:07:05,769 Suze: I have to tell you the times that I have 114 00:07:05,779 --> 00:07:08,649 Suze: been actually asked this question 115 00:07:09,320 --> 00:07:12,450 Suze: where we had to really make a decision because they 116 00:07:12,459 --> 00:07:14,570 Suze: were my clients or whatever. 117 00:07:15,320 --> 00:07:18,600 Suze: I asked the husband or the wife because sometimes it's 118 00:07:18,609 --> 00:07:23,239 Suze: the wife, to pass up this offer, your husband will 119 00:07:23,250 --> 00:07:27,140 Suze: inherit this money one day anyway, if they're going to 120 00:07:27,149 --> 00:07:30,910 Suze: leave it to him and you need to feel like 121 00:07:30,920 --> 00:07:34,690 Suze: you and your husband are equal in this relationship 122 00:07:35,410 --> 00:07:40,339 Suze: And you will never feel equal living in his home. 123 00:07:40,940 --> 00:07:44,079 Suze: Knowing that if the price of that home goes up 124 00:07:44,089 --> 00:07:48,309 Suze: from 500,000 to a million and a half, you don't 125 00:07:48,320 --> 00:07:54,119 Suze: participate in it. So your wealth isn't building. So I 126 00:07:54,130 --> 00:07:58,619 Suze: would probably pass on it and see what you and 127 00:07:58,630 --> 00:08:02,609 Suze: your husband can do together as one. That means you 128 00:08:02,619 --> 00:08:04,399 Suze: have to rent. So rent 129 00:08:05,019 --> 00:08:07,709 Suze: That means you have to save together to buy a 130 00:08:07,720 --> 00:08:12,239 Suze: home together. Then wait and do that. If this had 131 00:08:12,250 --> 00:08:14,739 Suze: just been an outright gift where, of course your name 132 00:08:14,750 --> 00:08:18,029 Suze: would be on it and of course, if something happened, 133 00:08:18,040 --> 00:08:21,019 Suze: it would go to you. But think about it, you'd 134 00:08:21,029 --> 00:08:25,149 Suze: be living in this house. Something happens. He dies and 135 00:08:25,160 --> 00:08:27,149 Suze: now you're gonna lose your husband and you're gonna lose 136 00:08:27,160 --> 00:08:30,170 Suze: the home because it's gonna go back to his parents. 137 00:08:30,529 --> 00:08:32,880 Suze: I have to tell you I wouldn't be doing it. 138 00:08:32,890 --> 00:08:36,599 Suze: Money's not worth it if you ask me. All right KT. 139 00:08:37,450 --> 00:08:39,140 KT: I don't think you would answer that way. 140 00:08:39,150 --> 00:08:40,780 Suze: What did you think? I would say. 141 00:08:41,020 --> 00:08:42,539 KT: Have grandchildren and see what they do. 142 00:08:47,109 --> 00:08:49,320 Suze: You're so funny. So Funny. 143 00:08:49,539 --> 00:08:50,960 KT: Next question is from Minnesota. 144 00:08:51,719 --> 00:08:54,820 Suze: You know what? I want to say something else. Sometimes when 145 00:08:54,830 --> 00:08:59,299 Suze: the parents do something like that, it's also their way 146 00:08:59,309 --> 00:09:04,549 Suze: of continuing to control their son because think about what 147 00:09:04,559 --> 00:09:06,880 Suze: that would do to the wife, 148 00:09:07,669 --> 00:09:17,809 Suze: you know, so I just remember people first then then things. 149 00:09:17,820 --> 00:09:18,880 Suze: don't do it. 150 00:09:18,890 --> 00:09:20,859 KT: Ok. The next question is from Minnesota. 151 00:09:22,940 --> 00:09:25,599 KT: You know, Suze, I was thinking about Minnesota and how 152 00:09:25,609 --> 00:09:30,030 KT: we used to love to go to Saint Paul. And 153 00:09:30,080 --> 00:09:30,799 KT: it was fun. 154 00:09:30,809 --> 00:09:35,409 Suze: Especially in January. Everybody. That's where I did all nine 155 00:09:35,419 --> 00:09:39,210 Suze: PB PBS specials. Can you believe it's still running everybody? 156 00:09:39,239 --> 00:09:42,799 KT: We used to stay in the, like the presidential suite 157 00:09:42,809 --> 00:09:45,919 KT: of the Saint Paul Hotel is a little hotel in 158 00:09:45,929 --> 00:09:49,630 KT: this square in Saint Paul, in Minnesota. And, 159 00:09:49,969 --> 00:09:53,010 KT: and, and that particular week when we were there was 160 00:09:53,020 --> 00:09:56,098 KT: the first or second week of January, they would have 161 00:09:56,109 --> 00:10:01,799 KT: the ice queen parade and the ice sculpting um exhibition 162 00:10:01,809 --> 00:10:06,049 KT: and contest and it was just magical for us to 163 00:10:06,059 --> 00:10:07,169 KT: be in snow. 164 00:10:07,210 --> 00:10:10,799 Suze: My favorite KT, is when we went on that ice 165 00:10:10,809 --> 00:10:12,609 Suze: drive with the police. 166 00:10:13,349 --> 00:10:18,098 KT: That was fun. Ice fishing. So, I live in Minnesota and 167 00:10:18,109 --> 00:10:19,419 KT: one month ago 168 00:10:19,840 --> 00:10:24,929 KT: I bought a lottery ticket and won $50,000. 169 00:10:25,099 --> 00:10:25,909 Suze: Yea baby! 170 00:10:25,919 --> 00:10:30,189 KT: Oh, wait, this is complicated, Suze. I did not tell 171 00:10:30,200 --> 00:10:35,228 KT: my husband my friends or anyone. In fact, I have 172 00:10:35,239 --> 00:10:41,010 KT: not even cashed in the ticket. Suze, here's why ready. 173 00:10:41,020 --> 00:10:42,390 KT: There's a big, uh oh.. 174 00:10:42,729 --> 00:10:44,070 Suze: Should I guess it? 175 00:10:44,909 --> 00:10:47,989 KT: No, let me tell you my husband and I are 176 00:10:48,000 --> 00:10:49,679 KT: in the middle of a divorce... 177 00:10:49,719 --> 00:10:51,150 Suze: I could have guessed that! 178 00:10:51,450 --> 00:10:55,299 KT: and this is all the money we have. He has 179 00:10:55,309 --> 00:11:00,200 KT: gambled everything away. And when I found out about his gambling, 180 00:11:00,210 --> 00:11:04,880 KT: our marriage was over. Suze, what should I do? 181 00:11:05,260 --> 00:11:08,179 KT: So, basically how does she protect the 50 grand and 182 00:11:08,190 --> 00:11:09,348 KT: keep it in her name? 183 00:11:09,359 --> 00:11:12,309 Suze: So, what I would do if I were you number one, 184 00:11:12,320 --> 00:11:16,400 Suze: make sure you sign the back of that ticket, right? 185 00:11:16,409 --> 00:11:19,479 Suze: Because if you happen to lose that ticket and it's 186 00:11:19,489 --> 00:11:23,789 Suze: not signed, anybody can cash it in. 187 00:11:23,799 --> 00:11:26,109 KT: Put it in a safety deposit box too. 188 00:11:26,159 --> 00:11:29,848 Suze: Now, what's important, and I don't know this for a fact, 189 00:11:29,859 --> 00:11:35,150 Suze: but every single state has an amount of time 190 00:11:35,380 --> 00:11:40,049 Suze: that you have to cash in that ticket until it's 191 00:11:40,059 --> 00:11:43,739 Suze: null and void and it can be 60 days, I think in 192 00:11:43,750 --> 00:11:48,579 Suze: Florida it's 60 days KT, right? Or 90 days in 193 00:11:48,590 --> 00:11:52,799 Suze: many places and a year. But you said that you 194 00:11:52,809 --> 00:11:55,320 Suze: did it one month ago. So no matter what, I'm 195 00:11:55,330 --> 00:11:59,989 Suze: sure you're in the time limit. Look up what is 196 00:12:00,000 --> 00:12:03,250 Suze: the time limit for Minnesota. 197 00:12:03,590 --> 00:12:04,218 Suze: Actually KT... 198 00:12:04,919 --> 00:12:05,549 KT: Wait, I'm gonna look it up. 199 00:12:05,960 --> 00:12:08,579 Suze: Right. So KT T s looking it up and it 200 00:12:08,590 --> 00:12:12,869 Suze: is one year she's showing me. All right. So you 201 00:12:12,880 --> 00:12:19,020 Suze: have one year, to cash this in and just 202 00:12:19,155 --> 00:12:21,655 Suze: keep it in a safety deposit box, make sure that 203 00:12:21,664 --> 00:12:23,905 Suze: it's good. Everything's good about it and again that you 204 00:12:23,914 --> 00:12:28,164 Suze: signed it, do not feel bad about not telling him 205 00:12:28,174 --> 00:12:32,705 Suze: because or anybody because he gambled away all of your money. Ok. 206 00:12:32,914 --> 00:12:37,284 Suze: Get the divorce, you know, take a little time for 207 00:12:37,294 --> 00:12:41,424 Suze: the divorce to settle and go your separate ways, cash 208 00:12:41,434 --> 00:12:45,184 Suze: it in at that time and for a while 209 00:12:45,479 --> 00:12:50,609 Suze: for maybe ever don't tell anybody because the last thing 210 00:12:50,619 --> 00:12:52,729 Suze: you want to do is have it get back to 211 00:12:52,739 --> 00:12:56,330 Suze: him and who knows what he would do. So just 212 00:12:56,890 --> 00:12:58,369 Suze: do that 213 00:12:58,380 --> 00:13:02,699 KT: Safety deposit box, forget it and set the alarm of 214 00:13:02,710 --> 00:13:03,619 KT: when to cash it in. 215 00:13:04,710 --> 00:13:06,369 Suze: The way I would view this 216 00:13:07,010 --> 00:13:09,699 Suze: is that it's God's way of taking care of you 217 00:13:09,710 --> 00:13:11,599 Suze: just so you know. Ok. 218 00:13:11,609 --> 00:13:15,530 KT: All right. Next question is really fun and, and one 219 00:13:15,539 --> 00:13:20,659 KT: that I'm gonna take, I'm gonna take this one very seriously, Suze. 220 00:13:20,830 --> 00:13:21,579 KT: This is, 221 00:13:22,409 --> 00:13:26,770 KT: this is from a dog lover. It said dog lover. 222 00:13:26,940 --> 00:13:31,580 KT: How can I leave $20,000 to my dog, Maggie? 223 00:13:33,200 --> 00:13:40,750 Suze: Oh, sweet dog lover. So number one, you can't leave 224 00:13:40,859 --> 00:13:45,570 Suze: money to a dog or cat. But, uh, let's say 225 00:13:45,580 --> 00:13:51,619 Suze: Maggie is actually considered a possession like your dishes, like 226 00:13:51,630 --> 00:13:53,830 Suze: your silverware... KTs looking at me. 227 00:13:53,840 --> 00:13:56,150 KT: Don't tell her that. No, no, no. 228 00:13:56,340 --> 00:14:01,030 Suze: So you can leave your possessions to somebody, 229 00:14:01,590 --> 00:14:06,609 Suze: but you can't leave money to Maggie. So the way 230 00:14:06,619 --> 00:14:09,819 Suze: that you would do it, however, is either through a 231 00:14:09,830 --> 00:14:14,319 Suze: living revocable trust or a will. That first, let's say, 232 00:14:14,330 --> 00:14:16,949 Suze: let's say all you had is a will. You would 233 00:14:16,960 --> 00:14:19,739 Suze: do what's called, you would name a pet guardian 234 00:14:20,349 --> 00:14:24,140 Suze: and leave that money to that person to take care 235 00:14:24,150 --> 00:14:28,320 Suze: of Maggie. So you can listen to this over and 236 00:14:28,330 --> 00:14:32,020 Suze: over again. But it, you would write something like this 237 00:14:32,030 --> 00:14:36,090 Suze: or create this in a will where you say something like. 238 00:14:36,260 --> 00:14:38,750 Suze: I leave my and let's say, I don't know what 239 00:14:38,760 --> 00:14:41,599 Suze: kind of dog she is, but let's just say Maggie 240 00:14:41,609 --> 00:14:45,640 Suze: is a golden retriever. You would say I leave my 241 00:14:45,650 --> 00:14:47,419 Suze: golden retriever, 242 00:14:47,750 --> 00:14:53,989 Suze: Maggie and $20,000 to KT. Let's just say it was 243 00:14:54,000 --> 00:14:57,669 Suze: to KT because you, she would take such great care 244 00:14:57,679 --> 00:15:02,719 Suze: of her. With the hope that the money be used 245 00:15:02,729 --> 00:15:05,340 Suze: for Maggie's care and maintenance, 246 00:15:05,780 --> 00:15:08,890 Suze: but you also have to make sure because you don't 247 00:15:08,900 --> 00:15:14,150 Suze: know that KT is going to survive Maggie. So then 248 00:15:14,159 --> 00:15:16,150 Suze: you have to have a second part and you need 249 00:15:16,159 --> 00:15:23,309 Suze: to say if KT does not survive me. Right. And Maggie, right. 250 00:15:23,400 --> 00:15:26,570 Suze: I leave Maggie to X, let's say you leave it 251 00:15:26,580 --> 00:15:28,049 Suze: to KT's sister Lynn 252 00:15:28,440 --> 00:15:31,419 Suze: with the hope the money will be used for Maggie's 253 00:15:31,429 --> 00:15:37,489 Suze: care and maintenance in many online programs and things like that. 254 00:15:37,500 --> 00:15:42,159 Suze: There are pet bequests. So just look it up and 255 00:15:42,179 --> 00:15:45,260 Suze: that's how you could do it, but you can absolutely 256 00:15:45,270 --> 00:15:45,830 Suze: do it. There 257 00:15:45,914 --> 00:15:51,445 Suze: are people who leave millions to their animals and boy, 258 00:15:51,455 --> 00:15:54,075 Suze: we so understand that. All right. Next. 259 00:15:54,085 --> 00:15:57,945 KT: Ok. This is from Jasmine. Hi, Suze. And, and listen 260 00:15:57,955 --> 00:16:00,145 KT: to the subject. This is why I picked this one 261 00:16:00,155 --> 00:16:02,114 KT: and it's a little bit sad. It says we're in 262 00:16:02,125 --> 00:16:03,244 KT: a pickle help. 263 00:16:04,229 --> 00:16:08,140 KT: Oh, so Jasmine said my 83 year old in-laws live 264 00:16:08,150 --> 00:16:12,349 KT: by themselves. This is very recent, over Easter weekend my 265 00:16:12,359 --> 00:16:17,789 KT: husband found his dad unconscious in the tub. Long story short, 266 00:16:17,799 --> 00:16:20,440 KT: dad is now in a nursing home after a week 267 00:16:20,450 --> 00:16:25,090 KT: of being treated in the hospital, he's incapacitated and my 268 00:16:25,099 --> 00:16:28,000 KT: mother-in-law has progressive dementia. 269 00:16:28,479 --> 00:16:32,669 KT: Suze, my in-laws do not have a trust. We managed 270 00:16:32,679 --> 00:16:36,760 KT: to set up a will, financial power of attorney and 271 00:16:36,770 --> 00:16:40,830 KT: durable power of attorney for health care for my mother-in-law. 272 00:16:41,039 --> 00:16:43,799 KT: She's lucid in the morning but goes downhill as the 273 00:16:43,809 --> 00:16:49,770 KT: day progresses. My father-in-law has nothing. No trust, no will. 274 00:16:49,780 --> 00:16:51,950 KT: And we're not sure if he'll ever be back in 275 00:16:51,960 --> 00:16:55,169 KT: shape to be able to draft a trust for him 276 00:16:55,179 --> 00:16:56,090 KT: to sign. 277 00:16:56,380 --> 00:17:00,630 KT: The house is in both of their names, bank accounts 278 00:17:00,640 --> 00:17:04,649 KT: and IRAs are also in their names with the two 279 00:17:04,660 --> 00:17:09,079 KT: sons as beneficiaries. Suze, at this point, what can we 280 00:17:09,089 --> 00:17:11,229 KT: do to protect their assets? 281 00:17:11,540 --> 00:17:13,650 Suze: Yeah. You know, it's funny you don't know this KT 282 00:17:13,890 --> 00:17:18,589 Suze: but I actually wrote back, Jasmine and Jasmine's been writing 283 00:17:18,599 --> 00:17:23,160 Suze: me back and forth. And the last correspondence that I 284 00:17:23,170 --> 00:17:24,688 Suze: got from Jasmine 285 00:17:25,189 --> 00:17:27,609 Suze: because there's really not a lot they can do at 286 00:17:27,619 --> 00:17:31,750 Suze: this point. But the last correspondence I got from Jasmine 287 00:17:31,760 --> 00:17:36,910 Suze: was that Suze, please tell everybody how important it is 288 00:17:37,060 --> 00:17:39,880 Suze: to have a will to have a trust to do 289 00:17:39,890 --> 00:17:42,688 Suze: these things that you've been telling everybody about, put it 290 00:17:42,699 --> 00:17:46,619 Suze: in place. But essentially what I did tell Jasmine 291 00:17:46,969 --> 00:17:51,160 Suze: is the good news is since the house is in 292 00:17:51,170 --> 00:17:56,829 Suze: both of their names, right? Chances are daddy is going 293 00:17:56,839 --> 00:17:58,420 Suze: to die before mommy 294 00:17:59,180 --> 00:18:02,790 Suze: and mommy does have a will now. So if daddy 295 00:18:02,800 --> 00:18:07,420 Suze: dies before mommy, the house will go to mommy. When 296 00:18:07,430 --> 00:18:11,489 Suze: mommy dies, then it will be dictated by her will. 297 00:18:11,500 --> 00:18:17,359 Suze: So that's good. Their retirement accounts do have beneficiaries. So 298 00:18:17,369 --> 00:18:22,030 Suze: the two sons, so that money when they die will 299 00:18:22,040 --> 00:18:26,380 Suze: go to the two sons, right. Unless you know the 300 00:18:26,390 --> 00:18:28,889 Suze: primary beneficiary was mommy. 301 00:18:29,339 --> 00:18:33,729 Suze: Now that becomes a little difficult because mommy is also incapacitated. 302 00:18:33,819 --> 00:18:37,349 Suze: So who makes those decisions? But the good news is 303 00:18:37,359 --> 00:18:41,989 Suze: that's why they have a financial power of attorney and everything. So 304 00:18:42,000 --> 00:18:46,969 Suze: that's good. So Jasmine really has taken care of it. 305 00:18:47,650 --> 00:18:50,879 Suze: Right. The bad thing will be if mommy dies before 306 00:18:50,890 --> 00:18:56,579 Suze: daddy and then daddy's totally incapacitated. If that happens, then 307 00:18:56,589 --> 00:18:59,780 Suze: they're going to have to go down to court, probate court, 308 00:19:00,219 --> 00:19:03,839 Suze: get a conservatorship for daddy. He has to be declared 309 00:19:03,849 --> 00:19:07,520 Suze: incapacitated and then they'll be able to sign and take 310 00:19:07,530 --> 00:19:09,438 Suze: care of everything 311 00:19:09,849 --> 00:19:14,218 Suze: But that's why it's so important to do this now. 312 00:19:14,339 --> 00:19:15,169 Suze: All right. 313 00:19:15,339 --> 00:19:19,959 KT: Ok. Next question, Suze is from Robert. Suze, you keep 314 00:19:19,969 --> 00:19:23,219 KT: saying over and over again that I should pay my 315 00:19:23,229 --> 00:19:26,839 KT: home off by retirement and then he says I don't 316 00:19:26,849 --> 00:19:27,719 KT: get it. 317 00:19:28,520 --> 00:19:34,390 KT: I'm 50 years old. I paid $400,000 for a condo. 318 00:19:34,729 --> 00:19:39,579 KT: I put 200,000 down. It's 50%. That's a lot. I 319 00:19:39,589 --> 00:19:40,629 KT: did a third.. 320 00:19:40,640 --> 00:19:43,579 Suze: He probably had a house. He sold it and put 321 00:19:43,589 --> 00:19:44,849 Suze: all the money into it. 322 00:19:45,260 --> 00:19:48,599 KT: Well, and we don't know for the payment. Ok. So 323 00:19:48,609 --> 00:19:52,089 KT: let's just hear his story. So he said I, 324 00:19:52,459 --> 00:19:56,359 KT: I took out a 30 year mortgage at 6%. Payments... 325 00:19:56,479 --> 00:19:59,030 Suze: He's recently done this if it's at 6%. 326 00:19:59,040 --> 00:20:03,180 KT: Yeah. Payments for my mortgage are just $1200 a month 327 00:20:03,189 --> 00:20:07,239 KT: that I can easily afford from the interest I earn 328 00:20:07,250 --> 00:20:10,670 KT: on my money. So why would I want to pay 329 00:20:10,680 --> 00:20:16,060 KT: it off and lose the tax rate off. He's 50. Yeah. 330 00:20:16,069 --> 00:20:22,010 Suze: So, Robert, right now you're making interest on that money 331 00:20:22,520 --> 00:20:27,589 Suze: Right now because interest rates have gone up, you're making four, 332 00:20:27,599 --> 00:20:33,390 Suze: maybe 5%. Can you just remember a few years ago, 333 00:20:33,699 --> 00:20:38,629 Suze: two years ago when interest rates were at 0% you 334 00:20:38,640 --> 00:20:43,459 Suze: couldn't get an interest rate for, for anything. You know, 335 00:20:43,469 --> 00:20:46,810 Suze: I remember when we first started with Alliant Credit Union 336 00:20:47,130 --> 00:20:50,660 Suze: and the interest rate they were given was 0.6%. And 337 00:20:50,670 --> 00:20:54,489 Suze: all of you went gaga over it because it was 338 00:20:54,500 --> 00:21:00,530 Suze: the highest interest rate out there. But there were, there 339 00:21:00,540 --> 00:21:03,790 Suze: were times in life when interest rates were really high, 340 00:21:04,199 --> 00:21:06,959 Suze: then they went all the way down, then they went 341 00:21:06,969 --> 00:21:11,579 Suze: high again and now they're high again. But don't think 342 00:21:11,589 --> 00:21:15,239 Suze: that they're always gonna stay up here because they might, 343 00:21:15,550 --> 00:21:21,160 Suze: but they also might not. That's number one. When you say, 344 00:21:21,170 --> 00:21:23,379 Suze: why would you want to pay it off and lose 345 00:21:23,390 --> 00:21:29,160 Suze: the tax write off? Do you know that after 20 346 00:21:29,170 --> 00:21:33,680 Suze: years of paying this when you will be 70 347 00:21:34,339 --> 00:21:43,069 Suze: on a $200,000 mortgage, you will still owe $100,000 on it. 348 00:21:43,239 --> 00:21:50,079 Suze: Why is that? In 20 years, you only paid 50% 349 00:21:50,160 --> 00:21:53,949 Suze: of what you owed. But then in the next 10 350 00:21:53,959 --> 00:21:57,489 Suze: years remaining, you'll pay the other 50%. 351 00:21:58,050 --> 00:22:03,130 Suze: And that is because the tax write off is only 352 00:22:03,140 --> 00:22:09,400 Suze: in the beginning years, if you are paying essentially $1200 353 00:22:09,410 --> 00:22:14,958 Suze: a month right now, probably $1000 a month of that 354 00:22:15,150 --> 00:22:20,260 Suze: is interest and will give you a tax write off. Absolutely. 355 00:22:21,030 --> 00:22:25,439 Suze: But if you look at your amortization schedule, you will 356 00:22:25,449 --> 00:22:30,160 Suze: find that, all right, for the first eight years, maybe 357 00:22:30,170 --> 00:22:33,660 Suze: you have 1000 or $900 of a tax write off 358 00:22:33,670 --> 00:22:38,359 Suze: per month. But then it starts to go down. Why 359 00:22:38,369 --> 00:22:42,900 Suze: is it so high in the beginning months there? Because, 360 00:22:42,910 --> 00:22:44,929 Suze: and I've said this before to all of you, but 361 00:22:44,939 --> 00:22:49,300 Suze: I'm gonna say it again because Robert obviously didn't hear it. 362 00:22:49,839 --> 00:22:54,660 Suze: Is that chances are the bank thinks that there's a 363 00:22:54,670 --> 00:22:57,770 Suze: good possibility in seven or eight years, you will sell 364 00:22:57,780 --> 00:23:01,589 Suze: this condo or your home if you have it 365 00:23:02,250 --> 00:23:06,560 Suze: And they want the majority of their interest up front 366 00:23:07,270 --> 00:23:09,219 Suze: while you still own it. 367 00:23:10,170 --> 00:23:13,589 Suze: So that if you do decide to sell it, they 368 00:23:13,599 --> 00:23:17,810 Suze: actually made more money on you interest wise because your 369 00:23:17,819 --> 00:23:19,849 Suze: principle will still be high. 370 00:23:20,500 --> 00:23:23,889 Suze: Then if you kept it the entire time, I'm sure 371 00:23:23,900 --> 00:23:28,869 Suze: if you looked at your amortization schedule that after 20 years, 372 00:23:29,239 --> 00:23:33,609 Suze: your interest payments will only be $500 a month after 373 00:23:33,619 --> 00:23:38,150 Suze: 30 years, maybe they're gonna be $200 a month. And 374 00:23:38,160 --> 00:23:41,369 Suze: towards the ending years of your mortgage, it will be 375 00:23:41,380 --> 00:23:45,189 Suze: $20 a month, $50 a month, there will not be 376 00:23:45,199 --> 00:23:49,319 Suze: any tax write off any more. That's number one, that's 377 00:23:49,329 --> 00:23:50,290 Suze: a big one. 378 00:23:50,930 --> 00:23:52,250 Suze: Number two, 379 00:23:53,020 --> 00:23:57,680 Suze: how much money do you need in a bank account, 380 00:23:57,689 --> 00:23:59,069 Suze: in a credit union 381 00:24:00,079 --> 00:24:05,160 Suze: to generate $1200 a month of a mortgage payment? 382 00:24:06,180 --> 00:24:10,329 Suze: 1200 a month is $14,400 a year. 383 00:24:11,030 --> 00:24:14,359 Suze: Even at 4% 384 00:24:15,160 --> 00:24:21,250 Suze: you would need about 400 to 500,000 at 4% is 385 00:24:21,260 --> 00:24:29,310 Suze: $20,000 a year after taxes that gives you your $14,400 386 00:24:29,319 --> 00:24:34,719 Suze: a year or $1200 a month. You need 2 to 387 00:24:34,729 --> 00:24:38,800 Suze: 2.5 times what you owe. 388 00:24:39,969 --> 00:24:44,339 Suze: So don't you think you would be better off just 389 00:24:44,349 --> 00:24:46,540 Suze: paying off the mortgage, 390 00:24:47,170 --> 00:24:52,739 Suze: taking $1200 a month is what you would save on 391 00:24:52,750 --> 00:24:57,859 Suze: your mortgage payments and start saving that money up again 392 00:24:58,140 --> 00:25:02,300 Suze: at these high interest rates. Because whether you know it 393 00:25:02,310 --> 00:25:07,339 Suze: or not, 6% is still a very, very different interest 394 00:25:07,349 --> 00:25:12,079 Suze: rate than if you were at 2%. And again, you 395 00:25:12,089 --> 00:25:15,459 Suze: never know what can happen. 396 00:25:15,939 --> 00:25:21,079 Suze: That is why I tell everybody if they plan on 397 00:25:21,089 --> 00:25:24,629 Suze: staying in their home, whether it's a co-op, a condo, 398 00:25:24,670 --> 00:25:28,660 Suze: a duplex, a single family, whatever it is. If they 399 00:25:28,670 --> 00:25:31,329 Suze: plan on taying in that home for the rest of 400 00:25:31,339 --> 00:25:34,819 Suze: their life, their number one goal is to have it 401 00:25:34,829 --> 00:25:39,250 Suze: paid off by the time they retire. If you don't 402 00:25:39,260 --> 00:25:41,349 Suze: get what I just said now, 403 00:25:41,810 --> 00:25:45,300 Suze: I don't know what to do. All right, next question KT. 404 00:25:46,680 --> 00:25:50,569 KT: Ok. So, Suze, it's quizzie time and, and this quizze... 405 00:25:51,489 --> 00:25:55,050 KT: I resonated with because it's on the news every day. 406 00:25:55,060 --> 00:25:57,989 KT: This is a, this is a serious issue going on. 407 00:25:58,280 --> 00:26:05,329 KT: It's from Angie. I didn't listen to you, Suze. I 408 00:26:05,339 --> 00:26:09,449 KT: didn't listen to you. And I cosigned a loan for 409 00:26:09,459 --> 00:26:10,469 KT: my son 410 00:26:10,800 --> 00:26:19,839 KT: on an $80,000 truck. 8% interest for seven years. Oh 411 00:26:20,400 --> 00:26:25,979 KT: my God. His payments were $1300 a month and he 412 00:26:25,989 --> 00:26:29,719 KT: was making the payments. At least I thought he was. 413 00:26:29,729 --> 00:26:30,409 KT: You ready? 414 00:26:31,750 --> 00:26:35,930 KT: Suze, he called me and said I went outside and 415 00:26:35,939 --> 00:26:39,800 KT: my truck was gone. I of course thought it was stolen, 416 00:26:39,880 --> 00:26:43,948 KT: but it turns out it was repossessed. He said the 417 00:26:43,959 --> 00:26:47,550 KT: good part, mom is that we no longer owe that 418 00:26:47,560 --> 00:26:52,439 KT: money since the truck is gone. Is that true? So, 419 00:26:52,449 --> 00:26:57,609 KT: Angie's asking you, Suze, is that true? No, Angie. 420 00:26:59,369 --> 00:27:01,780 Suze: Angie. Listen to me, sweetheart. 421 00:27:01,790 --> 00:27:04,319 KT: It ain't that easy. It's not true. 422 00:27:04,329 --> 00:27:10,619 Suze: Angie, obviously, I don't know what made you cosign a 423 00:27:10,630 --> 00:27:12,239 Suze: loan for your son, 424 00:27:13,229 --> 00:27:16,229 Suze: when you knew, obviously, because you didn't listen to me 425 00:27:16,239 --> 00:27:20,169 Suze: and I used to say, don't cosign, don't cosign for 426 00:27:20,180 --> 00:27:25,170 Suze: anybody ever no matter what. So obviously you have a really 427 00:27:25,180 --> 00:27:28,728 Suze: soft spot in your heart for your son or he's 428 00:27:28,739 --> 00:27:32,640 Suze: an incredible guilt tripper, right? I don't know what made 429 00:27:32,650 --> 00:27:33,859 Suze: you do it, but you did it. 430 00:27:34,510 --> 00:27:38,478 Suze: But if you ever believe him again when it comes 431 00:27:38,489 --> 00:27:42,489 Suze: to money, then you should be really, really angry at 432 00:27:42,500 --> 00:27:49,040 Suze: yourself because what he told you is absolutely not true. 433 00:27:49,050 --> 00:27:52,469 Suze: Which is why you wrote in to the Women and 434 00:27:52,479 --> 00:27:56,619 Suze: Money Podcast because you knew in your gut that it 435 00:27:56,630 --> 00:27:57,959 Suze: wasn't true. 436 00:27:58,469 --> 00:28:02,599 Suze: However, there's not a lot you can do about it. So, 437 00:28:02,609 --> 00:28:04,479 Suze: here's how it works. 438 00:28:05,390 --> 00:28:09,479 Suze: He probably financed it with the car company that he 439 00:28:09,489 --> 00:28:10,680 Suze: bought the truck from. 440 00:28:11,310 --> 00:28:16,869 Suze: Now, they repossessed it. All car companies usually have a 441 00:28:16,880 --> 00:28:20,359 Suze: used car lot as well. Have you ever noticed you 442 00:28:20,369 --> 00:28:23,050 Suze: drive on and they have new cars, but then they 443 00:28:23,060 --> 00:28:27,020 Suze: have a whole lot of used cars as well. This 444 00:28:27,030 --> 00:28:29,339 Suze: car now will go to auction 445 00:28:29,979 --> 00:28:34,500 Suze: and somebody will bid on it a low bid. So 446 00:28:34,510 --> 00:28:39,619 Suze: let's say that he still owed $70,000 although I doubt 447 00:28:39,630 --> 00:28:42,069 Suze: highly you put down 10. Ok. 448 00:28:43,040 --> 00:28:45,729 Suze: Now the truck goes to auction 449 00:28:46,859 --> 00:28:51,390 Suze: and it sold for $50,000. 450 00:28:52,189 --> 00:28:57,989 Suze: You are going to still owe the difference between $50,000 451 00:28:58,000 --> 00:29:02,699 Suze: what it was sold for and the $80,000 that you 452 00:29:02,709 --> 00:29:04,000 Suze: signed for. 453 00:29:04,920 --> 00:29:07,609 Suze: So then what they're gonna do just so, you know, 454 00:29:07,619 --> 00:29:10,770 Suze: is they're gonna take that truck that they paid 50,000 455 00:29:10,780 --> 00:29:13,339 Suze: for and put it on their used car lot and 456 00:29:13,349 --> 00:29:18,209 Suze: probably sell it for 70. That's how car companies make money, 457 00:29:18,250 --> 00:29:23,319 Suze: but you are going to be responsible for whatever amount 458 00:29:23,329 --> 00:29:26,410 Suze: of money they sold that truck for 459 00:29:27,209 --> 00:29:30,959 Suze: and what you owe, the difference between the two. It's 460 00:29:30,969 --> 00:29:37,890 Suze: gonna be probably at least 30 or $40,000 of difference 461 00:29:37,900 --> 00:29:39,979 Suze: at that 8%. 462 00:29:40,680 --> 00:29:45,000 Suze: So, you're gonna have to pay that until it is 463 00:29:45,010 --> 00:29:46,609 Suze: paid off. 464 00:29:46,619 --> 00:29:47,930 KT: What if you don't pay it? 465 00:29:48,479 --> 00:29:51,969 Suze: Oh, no, she's gonna pay it or they'll come after her. 466 00:29:52,689 --> 00:29:55,859 Suze: Right. They'll either come after and put a lien against her. 467 00:29:56,099 --> 00:30:00,140 Suze: They'll take her, they can, they can garnish her wages. No, 468 00:30:00,150 --> 00:30:01,060 Suze: they're brutal. 469 00:30:01,790 --> 00:30:03,719 Suze: The car, people are brutal. 470 00:30:03,729 --> 00:30:06,880 KT: Yeah, this is becoming a dilemma. That's happening. More and more. 471 00:30:06,890 --> 00:30:09,160 KT: People don't have the money to make the payment. 472 00:30:09,170 --> 00:30:11,959 Suze: If you remember everybody, I told you 473 00:30:12,489 --> 00:30:17,310 Suze: a few months ago that repossessions of cars were higher 474 00:30:17,319 --> 00:30:20,949 Suze: than they have ever been. And that's still true to 475 00:30:20,959 --> 00:30:25,300 Suze: this day. So with the number of repossessions that are 476 00:30:25,310 --> 00:30:28,589 Suze: out there when they do go to auction, they go 477 00:30:28,599 --> 00:30:32,729 Suze: for a lot less than they normally would have gone for. 478 00:30:32,969 --> 00:30:36,550 Suze: And there you go. Angie. I'm so, so sorry. I mean, 479 00:30:37,180 --> 00:30:39,949 Suze: I don't know your finances but a lot of times 480 00:30:39,959 --> 00:30:43,329 Suze: when this happens, people claim bankruptcy, believe it or not. 481 00:30:44,150 --> 00:30:44,689 Suze: Oh KT... 482 00:30:45,949 --> 00:30:47,229 KT: That comes to an end. 483 00:30:47,239 --> 00:30:49,000 Suze: These were all kind of sad. 484 00:30:49,349 --> 00:30:51,739 KT: They weren't that sad. They were interesting. They were a 485 00:30:51,750 --> 00:30:56,060 KT: little bit different. They were slices of life. So, since 486 00:30:56,069 --> 00:31:01,439 KT: it's Cinco de Mayo tomorrow, everybody go have a margarita 487 00:31:03,180 --> 00:31:08,140 Suze: Or you can do what we do every single day. 488 00:31:08,250 --> 00:31:12,349 Suze: And that is to say... Angie, this is for you. Angie, 489 00:31:12,359 --> 00:31:14,930 Suze: you got to say it because you got to feel 490 00:31:14,939 --> 00:31:19,270 Suze: this way. You got to get over this today. Wherever 491 00:31:19,280 --> 00:31:22,239 Suze: I go, I will create KT take it! 492 00:31:22,250 --> 00:31:26,050 KT: A more peaceful, joyful and loving world. 493 00:31:26,060 --> 00:31:30,930 Suze: And if you do that, you will be unstoppable. Bye 494 00:31:30,939 --> 00:31:31,930 Suze: bye everybody. 495 00:31:37,030 --> 00:31:38,369 Music: Music Out.