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Suze: July 11th, 2024. Welcome everybody to the Women and Money

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Suze: podcast as well as everybody smart enough to listen. This

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Suze: is the,

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Suze: what is it? KT?

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KT: Ask KT Anything with a bad cough and cold. I celebrated too

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KT: much on July 4th, Suze.

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Suze: You think?

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KT: Yes.

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Suze: Anyway, after July 4th, KT did catch a cold and

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Suze: let's just hope she doesn't give it to me.

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KT: That's why we're as far apart in the studio as

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KT: we can be, which is a very, really small studio.

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Suze: Anyway, wait, before we begin,

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Suze: I just want to thank all of you for the

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Suze: tremendous love sent my way for last Sunday's podcast, which

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Suze: was the loss of my good friend Judy Jacqueline Belushi.

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Suze: Thanks everybody. It totally touched my heart. But before we begin,

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Suze: we wanna wish somebody a happy birthday today.

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KT: Mila, Mila, Mila Feliz Cumpleaños. Mila is our incredible friend here

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KT: on the island and she's from Peru and she cooks

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KT: every day, the most amazing lunch. For Colo and her

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KT: husband Motto,

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KT: and Mila and Motto are Colo's best friends. And we

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KT: just want to wish our sweet Mila a very, very

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KT: happy and lucky day today.

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Suze: Sweet. Let's get to it, KT since we haven't been

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Suze: able to do this for a little bit.

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Suze: What's that that you're holding in your hand?

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KT: So, Suze, what I'm holding in my hand is a Fourth

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KT: of July story that actually came in from someone, you know,

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KT: by the name of Laurie Seligman.

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Suze: Laurie is who I lived with in Champagne Urbana. She

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Suze: was my girlfriend at the time.

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KT: Yes, she said it was July 4th and off, we

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KT: went in your car. It might have been the Volvo,

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KT: I'm not sure.

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Suze: It was a 510 Datsun.

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KT: Ok. She said we, so they were going to the

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KT: stadium in Champagne Urbana. She said there was...

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Suze: KT, it's Urbana.

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KT: Allright. They were going into the stadium at in Champagne Urbanna. Well,

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KT: that's because you're from the Midwest. Everyone says Urbanna, you got (imitates a Mid-west accent) "Kaathy," right?

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KT: And Laurie wrote, Suze said we aren't going and Laurie said,

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KT: I wondered, you said we don't need to go inside

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KT: and she said, Suze, you parked outside and told me

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KT: it was the same sky without a parking fee and

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KT: we weren't gonna be covered in ashes. Nor was the

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KT: car when we left. And then Laurie wrote: Suze, you're

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KT: so clever and you always were.

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Suze: Oh, sweet. Right. It's true, KT though, we went to

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Suze: this little field

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Suze: because in Champagne Urbana, there are fields everywhere. And I

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Suze: just parked the car. We got out, I took out

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Suze: a little blanket that I kept in the back of

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Suze: the car. Right. Just because I for picnics and things

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Suze: like that

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Suze: and we lay down, looked up and literally it was

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Suze: maybe one of the best fire work nights...

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KT: And you didn't get covered in ashes.

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Suze: And we didn't have to pay for it.

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KT: Clever, clever girl. Ok. So my first question, Suze is

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KT: from Linda.

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KT: Hi, KT and Suze. My husband and I have a

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KT: brokerage account where we pay a 0.7% fee while we

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KT: trust our financial advisor. I'm not sure it makes sense

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KT: for our children to pay a fee as they start

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KT: their investing careers. Any advice?

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Suze: Well, obviously their kids must be young still because they

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Suze: haven't even started anything. The true advice is before they

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Suze: invest any money anywhere. They should be investing in a

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Suze: Roth IRA. If they have earned income, they should be

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Suze: participating in their company Roth 401k or 403 B or TSP.

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Suze: And they should absolutely be investing that way. If they

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Suze: are maxing out those accounts,

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Suze: then should they be paying a fee? I don't think so.

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Suze: I think that they're better off just dollar cost averaging

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Suze: into the Vanguard Total Stock market index fund or something

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Suze: like that. Or even buying slices of stocks that they like.

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Suze: And you know, we all love still Palantir, Tesla, Microsoft NVIDIA.

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Suze: So I personally would be telling my kids how much

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Suze: do you want to invest, open up an account at

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Suze: a discount brokerage firm and buy slices every single month

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Suze: of those accounts, especially Apple and Palantir. All right.

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KT: And wait, I have one more message for Linda

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KT: for Linda and her twin brother Bob. Happy birthday. It's

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KT: my twin Lynn and I, our birthday is July 21st.

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KT: I don't know when your birthday is, but I know

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KT: it's in July.

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Suze: Oh, sweet KT.

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KT: All right. My next question is from Sandra.

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Suze: That was a twin win.

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KT: That was a twin win. Yeah, twin win. All right.

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KT: From Sandra

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KT: question is my husband opened a small business and makes

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KT: good money. We've opened a pre tax retirement account. We

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KT: wanted the tax deduction to offset the taxes of a

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KT: new business.

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KT: Should we continue with the pretax account? Which puts $3000

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KT: in our pocket instead of Uncle Sam's this year? Or

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KT: should we switch to a Roth? Thank you for your help.

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KT: You are both wonderful.

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Suze: Listen, Sandra, please listen to the podcast called Don't Be

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Suze: Partners with Uncle Sam.

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Suze: That's obviously on the Women and Money podcast and that

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Suze: will answer your question and for all of you that

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Suze: are writing me, should I convert? Should I do a raw,

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Suze: should I do a traditional, make sure you listen to

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Suze: that podcast. Don't be partners with Uncle Sam and you

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Suze: will have no doubt what to do after that.

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Suze: Also, one more thing, a lot of you are writing

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Suze: and you are asking, I have $200,000 I have X

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Suze: amount of money. Should I be converting it? I am

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Suze: not going to be answering any of those emails that

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Suze: you have written that are asking me that all of

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Suze: you need to go to see a CPA

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Suze: and let that person know everything about your financial situation

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Suze: and let them decide if financially it makes sense for

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Suze: you in your particular situation, if you should be converting

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Suze: to a Roth or not, especially when you are near retirement,

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Suze: some of you need money to live on from your

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Suze: retirement account. Maybe then it doesn't make sense to convert.

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Suze: Some of you are a lot younger

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Suze: and it will make sense to convert. But I would

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Suze: check with a CPA to know your tax situation if

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Suze: you convert and how much you should convert every single

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Suze: year or not. All right, KT.

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KT: Ok. Next question from Cheryl.

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KT: Thank you, Suze and KT for sharing all your financial

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KT: wisdom and challenges in the quizzes. That's, that's for me...

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Suze: Wait till you hear her quizzy today and for all of you.

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KT: Question for you, is there an investment opportunity for high

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KT: yield notes for a minimum of $10,000

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KT: for this investment? I believe they would pay 15 percent

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KT: interest per Annum sending a check monthly. My complete investment

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KT: will be returned at maturity. So is that, is that possible, Suze?

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Suze: Listen, here's what all of you need to understand, right.

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Suze: I'm gonna tell you just a little Suze Story, KT.

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Suze: If it's all right with you, we'll save your voice today.

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Suze: It was when I was seeing clients way, way, way

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Suze: back when and an opportunity came where if a client

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Suze: invested X amount of money,

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Suze: they would get almost twice the amount of interest that

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Suze: bonds and things were paying at that time. And I

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Suze: thought it was such a great idea, why not?

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Suze: And I did it with two people's money, KT, right?

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Suze: I'll never forget this and everything was good. And then

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Suze: all of a sudden I read in the paper how

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Suze: this company has gone belly up and all of these

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Suze: things and it was never a legit company to begin with.

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Suze: It wasn't registered, it wasn't on the stock exchange. And

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Suze: I learned a really, really big lesson at that time

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Suze: and the clients lost all of their money.

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Suze: I felt so bad about that because I hadn't done

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Suze: my homework. I went for a higher yield than what

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Suze: everybody was getting at the time thinking I was just

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Suze: so smart. Remember everybody's got to learn,

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Suze: you learn the hard way sometimes when you're kind of

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Suze: starting out. And I remember once I made money, I

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Suze: paid those clients back, everything that they had lost you

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Suze: bet I did. Right. Helen Winter was one of the

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Suze: women I paid back and obviously she died many years ago,

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Suze: but I paid her estate back

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Suze: and, um, I can't remember the name of the other woman,

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Suze: but I paid her back as well. Her estate because

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Suze: they both had died. By the time that I had

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Suze: made money, they're both very wealthy women and they didn't

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Suze: care because they could afford to lose the money. But

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Suze: I cared.

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Suze: So the answer to this question, Cheryl is you're asking,

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Suze: is this too good to be true? Even the fact

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Suze: that you are asking that question it is you say

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Suze: that they're gonna pay you back 15% a year, but

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Suze: they're going to pay you back monthly. Sounds like a

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Suze: Ponzi scheme to me. I don't care if it's

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Suze: legitimate. If it's not legitimate, you aren't to experiment on

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Suze: money that you have. Do you understand me? Either? The

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Suze: company is registered. It's on the stock exchange. It's a

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Suze: legitimate bond account or whatever. I wouldn't touch it with

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Suze: a 10 ft pole. Don't learn the lesson that my

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Suze: two clients happened to learn. But I'm sure if this

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Suze: went bad on you

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Suze: and that people aren't going to give you your money back.

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Suze: All right. Go on KT.

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KT: Suze. Next is from Moni. I love that name. You know,

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KT: I love that. Last week. I think last Thursday I

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KT: had a name Peachy and this week I have Moni.

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Suze: You know why I like the name Moni?

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KT: It's like money. How's your money doing, Moni? How your money?

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KT: You got money, money, money, money, money. Ok. Moni said, Suze...

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KT: If you and I had a kid? Do you think we would have

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KT: named them Bill or Penny

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Suze: or Buck?

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KT: No?

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Suze: All right.

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KT: God, that's the oldest joke you've been telling for way

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KT: too many years. All right, ready. This is for, this

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KT: is Moni's question. What are the top 3 to 5

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KT: things to do financially when getting married?

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KT: And where do we get the advice on these 3

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KT: to 5 things? So, Suze, you're gonna go for five?

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Suze: We'll see how many come out of my mouth as

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Suze: I see.

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KT: What are the top three?

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Suze: What advice do you get on these things? I think

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Suze: it's in the book, Courage To Be Rich. There is

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Suze: a whole chapter called For Love

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Suze: and Money that talks about everything that you should know

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Suze: about each other. The questions you should ask one another.

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Suze: All of those things before you say I do, you

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Suze: take vows when you get married, part of the ceremony

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Suze: sometimes ends with till death do us part. I have

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Suze: learned

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Suze: that's hopefully true. But usually that saying might be till

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Suze: debt do us part. Because when you have debt, the

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Suze: number one reason for divorce today and one out of

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Suze: two people that get married, get divorced is arguments over money.

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Suze: So therefore before you get married, what do you do financially?

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Suze: You become as financially intimate with each other, you know,

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Suze: the person's financial habits. So, what does that mean? You

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Suze: have to know, are they a spender or are they

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Suze: a saver?

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Suze: Are they a big tipper? Even though they don't have money?

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Suze: You have to know what are their FICO scores? You

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Suze: have to each look at each other's credit reports, you

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Suze: have to make sure that when you do get married,

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Suze: that you pay all the bills together, you make all

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Suze: the investment decisions together. You have to have three accounts, yours,

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Suze: theirs and a joint account. You really have to know,

229
00:14:16,710 --> 00:14:19,530
Suze: how do the families come into play?

230
00:14:20,130 --> 00:14:23,830
Suze: Do they have big families? Are you expected to buy

231
00:14:23,840 --> 00:14:26,390
Suze: gifts and do all these things for all the family

232
00:14:26,400 --> 00:14:30,750
Suze: members at, you know, holidays and things like that? Regardless

233
00:14:30,760 --> 00:14:32,909
Suze: of how much money you have, you have to know

234
00:14:33,080 --> 00:14:38,789
Suze: everything about them financially intimately speaking.

235
00:14:39,159 --> 00:14:43,969
Suze: And the number one thing for financial success is to

236
00:14:43,979 --> 00:14:48,140
Suze: stay out of debt. If all of a sudden you

237
00:14:48,150 --> 00:14:52,340
Suze: find that one of you is carrying a balance on

238
00:14:52,349 --> 00:14:55,940
Suze: your credit cards and only paying the minimum payment due,

239
00:14:56,179 --> 00:15:02,539
Suze: they have started going down the path of financial debt,

240
00:15:02,549 --> 00:15:07,179
Suze: credit card debt, which really can be the ruination of

241
00:15:07,190 --> 00:15:08,340
Suze: a relationship.

242
00:15:09,090 --> 00:15:11,440
Suze: There you go. Did I miss anything, KT?

243
00:15:11,450 --> 00:15:14,559
KT: No, you covered it, Suze makes you not want to

244
00:15:14,570 --> 00:15:15,210
KT: get married

245
00:15:15,909 --> 00:15:23,630
Suze: And do not make any large purchase without the spouse saying, ok,

246
00:15:23,640 --> 00:15:24,679
Suze: we can do that.

247
00:15:25,549 --> 00:15:30,210
KT: Financial intimacy is more difficult than personal intimacy. We both

248
00:15:30,219 --> 00:15:35,849
KT: learned that from years and years of listening to what husband, wives, partners,

249
00:15:35,859 --> 00:15:38,520
KT: spouses don't know about each other.

250
00:15:38,979 --> 00:15:44,640
Suze: And one last thing KT, don't spend a lot of

251
00:15:44,650 --> 00:15:49,090
Suze: money on a wedding. And if anybody has to finance

252
00:15:49,099 --> 00:15:51,890
Suze: the wedding by putting it on a credit card,

253
00:15:52,429 --> 00:15:57,460
Suze: you cannot afford it. You are denied, don't do it,

254
00:15:57,469 --> 00:15:59,940
Suze: don't do it, don't do it. Allright KT.

255
00:15:59,950 --> 00:16:04,429
KT: Ok. Next question is from John. Hi, Suze, my wife

256
00:16:04,440 --> 00:16:09,719
KT: and I recently got the trust completed. Yay John. Congratulations.

257
00:16:10,020 --> 00:16:13,640
KT: Do we put the trust as a primary beneficiary on

258
00:16:13,650 --> 00:16:17,809
KT: all accounts, brokerage, retirement savings, et cetera. I know you

259
00:16:17,820 --> 00:16:19,380
KT: have answered this before.

260
00:16:19,494 --> 00:16:22,195
KT: So if you wanna just direct me to the podcast,

261
00:16:22,205 --> 00:16:24,804
KT: I can try to find it. Thank you for all

262
00:16:24,815 --> 00:16:26,625
KT: you do. You are awesome.

263
00:16:26,645 --> 00:16:29,784
Suze: So John, the only advice I'm gonna tell you is yes,

264
00:16:29,794 --> 00:16:33,594
Suze: in my opinion, you should put everything, meaning things that

265
00:16:33,604 --> 00:16:37,664
Suze: have a title, not your car, not things like that,

266
00:16:37,924 --> 00:16:42,395
Suze: but your brokerage account, your bank accounts, all of those

267
00:16:42,405 --> 00:16:46,554
Suze: things in trust. The one account

268
00:16:47,020 --> 00:16:50,239
Suze: that you have to be very, very careful of is

269
00:16:50,250 --> 00:16:54,599
Suze: if you are married, you are not to put that

270
00:16:54,609 --> 00:16:56,679
Suze: or in hs a

271
00:16:57,140 --> 00:17:03,419
Suze: beneficiary as a revocable trust, especially the primary beneficiary needs

272
00:17:03,429 --> 00:17:07,760
Suze: to be the spouse and truthfully on a retirement account.

273
00:17:07,770 --> 00:17:11,500
Suze: If your kids are of age, meaning they are now

274
00:17:11,510 --> 00:17:16,939
Suze: no longer minors. They could be the secondary beneficiaries if

275
00:17:16,949 --> 00:17:20,479
Suze: you want on those accounts. But a trust

276
00:17:20,573 --> 00:17:25,713
Suze: should never be a primary beneficiary in my opinion of

277
00:17:25,723 --> 00:17:30,154
Suze: a retirement account of any kind or an HSA account

278
00:17:30,163 --> 00:17:32,994
Suze: which stands for a health savings account. All right, KT.

279
00:17:33,004 --> 00:17:35,913
KT: So just to follow up to that question and answer,

280
00:17:35,923 --> 00:17:38,923
KT: this is from Carol, pick me, pick me, pick me.

281
00:17:38,933 --> 00:17:41,904
KT: I'm so confused and just want to make sure I'm

282
00:17:41,913 --> 00:17:43,874
KT: handling our estate correctly.

283
00:17:44,280 --> 00:17:48,260
KT: My husband and I live in Ohio in 2016. We

284
00:17:48,270 --> 00:17:53,919
KT: had all the must have documents completed. Now, 2024 we

285
00:17:53,930 --> 00:17:56,968
KT: want to change our documents to turn over to our

286
00:17:56,979 --> 00:18:00,579
KT: daughters to handle as they are of sufficient age.

287
00:18:00,890 --> 00:18:05,389
KT: I updated all of our must have documents. We contacted

288
00:18:05,400 --> 00:18:09,270
KT: a lawyer and he said a trust was not required

289
00:18:09,290 --> 00:18:14,000
KT: that transfer on death is sufficient, but informed him what

290
00:18:14,010 --> 00:18:17,629
KT: if one of us becomes incapacitated, will we still be

291
00:18:17,640 --> 00:18:22,069
KT: able to sell our house? He said for $350 he

292
00:18:22,079 --> 00:18:25,510
KT: can come out and discuss the reason. A trust is

293
00:18:25,520 --> 00:18:26,629
KT: not required,

294
00:18:27,229 --> 00:18:29,770
KT: Suze, what do you have to say about that?

295
00:18:30,510 --> 00:18:36,079
Suze: Listen to me closely. Everybody. Now it is true. If

296
00:18:36,089 --> 00:18:41,020
Suze: all you simply want to do is avoid probate for

297
00:18:41,030 --> 00:18:45,569
Suze: your children or your beneficiaries and have your assets passed

298
00:18:45,579 --> 00:18:47,810
Suze: to them without probate

299
00:18:48,250 --> 00:18:51,419
Suze: just then do a transfer on death account or pay

300
00:18:51,430 --> 00:18:56,290
Suze: on death account, put them as beneficiaries of your retirement accounts,

301
00:18:56,300 --> 00:19:00,979
Suze: whatever it may be life insurance and it will avoid probate.

302
00:19:01,420 --> 00:19:06,390
Suze: But for me, avoiding probate is not the main reason

303
00:19:06,400 --> 00:19:11,619
Suze: that you want a living revocable trust. Many people become

304
00:19:11,630 --> 00:19:12,989
Suze: incapacitated

305
00:19:13,400 --> 00:19:17,129
Suze: and who's gonna pay your bills, who's going to write

306
00:19:17,140 --> 00:19:21,739
Suze: your checks for you, lot of decisions have to be made.

307
00:19:22,369 --> 00:19:26,339
Suze: And while it's true that many of you think you

308
00:19:26,349 --> 00:19:27,660
Suze: can avoid that

309
00:19:28,339 --> 00:19:30,560
Suze: and not need to have a trust that has an

310
00:19:30,569 --> 00:19:33,239
Suze: incapacity clause in it that says who will make the

311
00:19:33,250 --> 00:19:37,599
Suze: decisions if you can't do it yourself when you're still alive,

312
00:19:38,329 --> 00:19:42,469
Suze: that a general financial power of attorney or a durable

313
00:19:42,479 --> 00:19:45,489
Suze: power of attorney and all those things can come into

314
00:19:45,500 --> 00:19:47,680
Suze: place and that may be true.

315
00:19:48,339 --> 00:19:52,930
Suze: But there are many financial institutions and I have experienced

316
00:19:52,939 --> 00:19:57,859
Suze: this not 10 times, not 30 times, not even a

317
00:19:57,869 --> 00:20:01,599
Suze: few 100 times over my career.

318
00:20:02,550 --> 00:20:08,170
Suze: When there was an incapacity, the client's children had a

319
00:20:08,219 --> 00:20:13,199
Suze: durable power of attorney. They had a springing power of attorney,

320
00:20:13,290 --> 00:20:16,390
Suze: they took it to the bank, they did certain things

321
00:20:16,400 --> 00:20:20,199
Suze: like that and the bank or the financial brokerage firm

322
00:20:20,209 --> 00:20:24,930
Suze: did not want to accept it because they did not know,

323
00:20:24,939 --> 00:20:27,679
Suze: was it still in effect or not?

324
00:20:28,180 --> 00:20:32,969
Suze: Because it's possible that they could have given you power

325
00:20:32,979 --> 00:20:33,829
Suze: of attorney

326
00:20:34,520 --> 00:20:36,140
Suze: and taking it back

327
00:20:36,839 --> 00:20:40,979
Suze: and the financial institutions don't know, is it still valid

328
00:20:40,989 --> 00:20:45,400
Suze: or is it not? So they're very, very careful when

329
00:20:45,410 --> 00:20:47,140
Suze: they have a trust,

330
00:20:48,010 --> 00:20:51,599
Suze: the trust is dated and normally if there's been a

331
00:20:51,609 --> 00:20:55,599
Suze: change in the trust, a new trust is provided, whatever

332
00:20:55,609 --> 00:20:59,630
Suze: it may be, so they feel more secure in following

333
00:20:59,640 --> 00:21:04,149
Suze: the directions of a trust than a power of attorney,

334
00:21:04,160 --> 00:21:08,530
Suze: of any kind. So, Carol, what I would say to

335
00:21:08,540 --> 00:21:13,150
Suze: you is in my opinion, there is no downside of

336
00:21:13,160 --> 00:21:15,989
Suze: having a living revocable trust.

337
00:21:16,239 --> 00:21:20,780
Suze: There are many, many upsides to it. Many you say

338
00:21:20,930 --> 00:21:24,839
Suze: you have a power of attorney that allows your beneficiaries.

339
00:21:24,849 --> 00:21:30,069
Suze: If you become incapacitated to buy or sell real estate,

340
00:21:30,410 --> 00:21:32,420
Suze: who cares about the real estate?

341
00:21:33,280 --> 00:21:36,760
Suze: I care about who's going to manage your money, who's

342
00:21:36,770 --> 00:21:41,180
Suze: making those decisions, who is going to write your checks

343
00:21:41,189 --> 00:21:44,319
Suze: for you, who is going to pay your bills for

344
00:21:44,329 --> 00:21:50,369
Suze: you all of those things? And what happens if you

345
00:21:50,380 --> 00:21:53,739
Suze: happen to be in an accident and you have the

346
00:21:53,750 --> 00:21:57,300
Suze: pay on death account and the durable powers in everything

347
00:21:57,520 --> 00:22:01,579
Suze: and you're incapacitated and that person happens to have died.

348
00:22:02,109 --> 00:22:05,780
Suze: Then what happens? Have you thought it all the way

349
00:22:05,790 --> 00:22:10,919
Suze: through the mere fact that this attorney said for $350

350
00:22:10,930 --> 00:22:13,629
Suze: which is far more than you paid for. The must

351
00:22:13,640 --> 00:22:17,479
Suze: have documents to come out and do such a thing,

352
00:22:18,170 --> 00:22:21,589
Suze: tells the story there one last thing and I know

353
00:22:21,599 --> 00:22:24,919
Suze: I'm going along with this KT, but it's important for

354
00:22:24,930 --> 00:22:27,900
Suze: those of you who are being told that a living

355
00:22:27,910 --> 00:22:31,219
Suze: revocable trust is not necessary.

356
00:22:32,170 --> 00:22:35,589
Suze: What I would do is whatever lawyer is telling you

357
00:22:35,599 --> 00:22:40,040
Suze: that to simply say, ok, then here's what I want

358
00:22:40,050 --> 00:22:42,949
Suze: you to do on your letterhead

359
00:22:43,739 --> 00:22:47,530
Suze: with you signing it. I want you to tell me

360
00:22:47,540 --> 00:22:49,989
Suze: that if I were to die today,

361
00:22:51,349 --> 00:22:55,849
Suze: what would my beneficiaries have to pay in probate fees

362
00:22:55,859 --> 00:22:57,819
Suze: or for your services?

363
00:22:59,140 --> 00:23:03,359
Suze: So that I know that it makes sense and I

364
00:23:03,369 --> 00:23:07,419
Suze: am going to give that to my beneficiaries to make

365
00:23:07,430 --> 00:23:10,119
Suze: sure that they hold you to that.

366
00:23:11,239 --> 00:23:14,030
Suze: That's what I used to tell people when they would

367
00:23:14,040 --> 00:23:16,469
Suze: come see me when I was seeing them as a

368
00:23:16,479 --> 00:23:21,790
Suze: financial advisor and Janet, the trust lawyer at the time

369
00:23:21,800 --> 00:23:25,479
Suze: that I shared an office with, it would be all right,

370
00:23:25,489 --> 00:23:28,079
Suze: if you don't want to believe us, go to the attorney,

371
00:23:28,089 --> 00:23:32,380
Suze: that's telling you that and ask them that question, what

372
00:23:32,390 --> 00:23:35,819
Suze: would it cost if I become incapacitated?

373
00:23:36,609 --> 00:23:40,719
Suze: And these documents didn't hold up, what does it cost

374
00:23:40,729 --> 00:23:45,209
Suze: to go through probate to get a conservatorship and all

375
00:23:45,219 --> 00:23:48,579
Suze: of those things and see what they say. It's very

376
00:23:48,589 --> 00:23:50,349
Suze: easy to say you don't need one.

377
00:23:51,380 --> 00:23:56,349
Suze: But what would it actually cost today? Given how you

378
00:23:56,359 --> 00:24:00,239
Suze: have set everything up? And it's not just about going

379
00:24:00,250 --> 00:24:05,819
Suze: through probate, it's about incapacity as well. Check it out

380
00:24:05,829 --> 00:24:09,219
Suze: for those of you who are interested in the must

381
00:24:09,229 --> 00:24:13,569
Suze: have documents that Carol is asking about. Go to must

382
00:24:13,579 --> 00:24:17,958
Suze: have docs.com and that is where you will find the,

383
00:24:17,969 --> 00:24:19,699
Suze: must have docs

384
00:24:20,439 --> 00:24:25,250
Suze: $2500 worth of state of the art documents good in

385
00:24:25,260 --> 00:24:29,829
Suze: all 50 states. Currently, if you go there, I believe

386
00:24:29,839 --> 00:24:31,510
Suze: it's $99, right now.

387
00:24:31,520 --> 00:24:36,869
KT: It's an incredible, incredible investment and great value. Just do it.

388
00:24:37,579 --> 00:24:40,800
Suze: Right. But want to know why it's such a great investment, KT?

389
00:24:40,969 --> 00:24:41,900
KT: Because they need to.

390
00:24:41,910 --> 00:24:44,359
Suze: No, because they can share it with all their family

391
00:24:44,369 --> 00:24:47,479
Suze: members every time they make a change on it, they

392
00:24:47,489 --> 00:24:51,040
Suze: can come back and it doesn't cost anything, just something

393
00:24:51,050 --> 00:24:53,839
Suze: to think about. All right, KT, what else do you have?

394
00:24:53,849 --> 00:24:57,359
KT: So, Susie, I have a question from Susan. Hi, Suze.

395
00:24:57,369 --> 00:25:02,099
KT: I have a 20 year $100,000 term life policy. It

396
00:25:02,109 --> 00:25:04,839
KT: has come to an end and I can't afford the

397
00:25:04,849 --> 00:25:07,079
KT: monthly amount. Can I sell it?

398
00:25:07,400 --> 00:25:11,199
KT: I've been paying $50 a month now. It's going up

399
00:25:11,209 --> 00:25:15,698
KT: to $435 a month. So I'm in a grace period

400
00:25:15,709 --> 00:25:19,660
KT: of 30 days. What should I do? Any advice?

401
00:25:19,670 --> 00:25:23,180
Suze: I hope that this came June 14th. So you're still,

402
00:25:23,189 --> 00:25:25,739
Suze: you're still a good girlfriend. You have just a few

403
00:25:25,750 --> 00:25:29,250
Suze: days left, obviously. So here's the thing.

404
00:25:29,640 --> 00:25:34,560
Suze: The first question is why do you need insurance? I

405
00:25:34,569 --> 00:25:37,739
Suze: get that you needed it 20 years ago. But now

406
00:25:37,750 --> 00:25:40,579
Suze: do you still need it if you were to die?

407
00:25:40,609 --> 00:25:46,300
Suze: Is there somebody still financially dependent upon you? If the

408
00:25:46,310 --> 00:25:50,439
Suze: answer to that question is no, then you don't need

409
00:25:50,449 --> 00:25:55,540
Suze: any type of insurance anymore whatsoever. I don't think you

410
00:25:55,550 --> 00:25:56,698
Suze: can sell it

411
00:25:57,199 --> 00:26:02,380
Suze: because it's already come due. It's up. If let's say

412
00:26:02,390 --> 00:26:05,439
Suze: you had a 20 year level term policy, you were

413
00:26:05,449 --> 00:26:09,698
Suze: five years into it and maybe you wanted to sell it.

414
00:26:09,920 --> 00:26:13,939
Suze: There are places that you can sell it. Normally people

415
00:26:13,949 --> 00:26:16,170
Suze: can sell it when it's a whole life or a

416
00:26:16,180 --> 00:26:19,670
Suze: universal life or whenever it may be. But there are

417
00:26:19,680 --> 00:26:22,869
Suze: some companies that will purchase

418
00:26:23,155 --> 00:26:28,514
Suze: term life insurances through what's called life settlements, the best

419
00:26:28,525 --> 00:26:33,535
Suze: known companies. And one of the largest is Coventry Direct.

420
00:26:33,545 --> 00:26:37,224
Suze: There's Abacos Life and all kinds of ones like that.

421
00:26:37,344 --> 00:26:41,135
Suze: But those two really are the biggest. But at this point,

422
00:26:41,145 --> 00:26:45,094
Suze: I don't think you can, but hopefully you do not

423
00:26:45,104 --> 00:26:50,385
Suze: need life insurance any more. All right. Ready for your quizzy?

424
00:26:51,069 --> 00:26:54,989
KT: I think my voice is gone. Right. All right, I'll

425
00:26:55,000 --> 00:26:55,909
KT: give it a shot.

426
00:26:55,920 --> 00:26:59,680
Suze: All right, everybody. This is for KT and all of you.

427
00:26:59,689 --> 00:27:00,609
Suze: Very short.

428
00:27:01,689 --> 00:27:06,260
Suze: Hi KT and Suze, this is from Kathy. Is it

429
00:27:06,270 --> 00:27:12,969
Suze: ok to have taxable bonds in my Roth Ira. You

430
00:27:12,979 --> 00:27:17,869
Suze: should see her face. Think about it, KT. A Roth

431
00:27:17,880 --> 00:27:18,699
Suze: IRA

432
00:27:19,579 --> 00:27:23,560
Suze: is a tax free retirement account.

433
00:27:24,589 --> 00:27:28,540
Suze: You invest in it, you buy things in it and

434
00:27:28,550 --> 00:27:30,560
Suze: when you go to take it out, if you've had it,

435
00:27:30,569 --> 00:27:33,479
Suze: had it for at least five years and you're 59.5,

436
00:27:33,489 --> 00:27:37,139
Suze: everything in it is tax free. But can you put

437
00:27:37,150 --> 00:27:40,239
Suze: a taxable bond in a Roth?

438
00:27:41,910 --> 00:27:44,978
KT: Well, you know what, Suze? It sounds like. It's a no,

439
00:27:44,989 --> 00:27:48,770
KT: but I'm gonna say yes because it's a bond.

440
00:27:49,329 --> 00:27:51,329
Suze: No, not because it's a bond.

441
00:27:51,339 --> 00:27:53,020
KT: It's a taxable bond.

442
00:27:53,040 --> 00:27:55,780
Suze: All right. But you're gonna say yes. But you're not

443
00:27:55,790 --> 00:27:58,689
Suze: sure why you're saying yes. Come on. Just be honest.

444
00:27:58,699 --> 00:27:59,619
Suze: It's a yes or no?

445
00:27:59,630 --> 00:28:01,060
KT: I'm going for the yes.

446
00:28:01,569 --> 00:28:06,290
Suze: Ding, ding, ding, ding it. Right. But for the wrong

447
00:28:06,390 --> 00:28:06,969
Suze: reason.

448
00:28:07,109 --> 00:28:07,979
KT: Yeah, I guessed it.

449
00:28:07,989 --> 00:28:11,930
Suze: Listen, you guessed it. I need everybody to use their

450
00:28:11,939 --> 00:28:17,530
Suze: logic here who just guessed it?

451
00:28:17,739 --> 00:28:19,929
KT: And I'm not ashamed to tell you all that.

452
00:28:20,140 --> 00:28:23,369
Suze: They're not ashamed to hear it either. Which is

453
00:28:24,290 --> 00:28:29,420
Suze: everything outside of a Roth IRA is taxable. If you

454
00:28:29,430 --> 00:28:34,319
Suze: buy stock and you do whatever with it, KT you're

455
00:28:34,329 --> 00:28:37,129
Suze: gonna pay income tax on it. If you buy a

456
00:28:37,140 --> 00:28:39,380
Suze: bond within a

457
00:28:39,469 --> 00:28:43,790
Suze: additional IRA, a taxable bond, you don't pay taxes while

458
00:28:43,800 --> 00:28:45,469
Suze: it's in there. But when you go to take it

459
00:28:45,479 --> 00:28:49,060
Suze: out everything you take out, you pay tax on it

460
00:28:49,069 --> 00:28:53,119
Suze: as ordinary income, no matter what you put in a

461
00:28:53,130 --> 00:28:57,010
Suze: Roth Ira doesn't matter if it's taxable.

462
00:28:57,790 --> 00:29:00,089
Suze: It doesn't. Oh, now she's laughing.

463
00:29:02,160 --> 00:29:04,479
Suze: Oh my God.

464
00:29:05,719 --> 00:29:07,550
Suze: I.. tell everybody why you're laughing.

465
00:29:07,560 --> 00:29:08,520
KT: Don't make me laugh.

466
00:29:10,250 --> 00:29:14,189
KT: I can't, my, my laugh sounds horrible. Um I have

467
00:29:14,199 --> 00:29:16,520
KT: a cold. All right. Just get to the point.

468
00:29:16,709 --> 00:29:20,089
Suze: The point is because I brought is a tax free

469
00:29:20,099 --> 00:29:24,979
Suze: holding vehicle no matter what investments you put in there

470
00:29:24,989 --> 00:29:29,140
Suze: become tax free. The only investment you would not put

471
00:29:29,150 --> 00:29:32,930
Suze: in there is a municipal bond because it's already tax

472
00:29:32,939 --> 00:29:36,750
Suze: free and the interest rates are lower. So, yeah. Is

473
00:29:36,760 --> 00:29:38,859
Suze: it ok to put in a taxable bond?

474
00:29:39,260 --> 00:29:43,089
Suze: Yeah. And you pick this and it makes sense because

475
00:29:43,099 --> 00:29:44,589
Suze: her name is Kathy.

476
00:29:45,810 --> 00:29:50,170
KT: The reason I'm giggling here because Suze, Suze knows, I

477
00:29:50,180 --> 00:29:52,390
KT: would never know the answer to that one.

478
00:29:53,290 --> 00:29:56,560
Suze: Suze doesn't understand why you would not.

479
00:29:57,959 --> 00:30:00,939
KT: If any of you out there knew that answer. Let

480
00:30:00,949 --> 00:30:03,609
KT: me know. I want to know how many, what percentage

481
00:30:03,619 --> 00:30:05,920
KT: of listeners knew that answer.

482
00:30:05,930 --> 00:30:10,680
Suze: Maybe I'll put a poll on the Women and Money app.

483
00:30:10,689 --> 00:30:15,239
Suze: But KT there's no such thing as tax on a

484
00:30:15,250 --> 00:30:18,760
Suze: Roth IRA if you meet the guidelines. So, what difference

485
00:30:18,770 --> 00:30:19,739
Suze: would it have made?

486
00:30:20,640 --> 00:30:21,810
KT: Ok. You're right.

487
00:30:22,260 --> 00:30:27,020
Suze: Of course, I'm right. Oh God. See. And it's, what

488
00:30:27,030 --> 00:30:29,219
Suze: are you gonna say about it? It's my fault. Right.

489
00:30:30,959 --> 00:30:33,839
KT: I lost my voice. Now. I can't talk it. I

490
00:30:33,849 --> 00:30:36,849
KT: can't talk and you're not supposed to whisper when you

491
00:30:36,859 --> 00:30:38,689
KT: lose your voice. It's worse.

492
00:30:39,349 --> 00:30:40,369
KT: I can't talk.

493
00:30:40,380 --> 00:30:41,969
Suze: Don't whisper.

494
00:30:42,290 --> 00:30:45,469
KT: Let's tell them how I'm going to be unstoppable.

495
00:30:45,479 --> 00:30:51,770
Suze: All right, everybody. So until Sunday for another Susie school,

496
00:30:51,780 --> 00:30:54,089
Suze: I have to decide what that is going to be.

497
00:30:54,099 --> 00:30:55,689
Suze: I have no idea yet.

498
00:30:56,390 --> 00:30:58,810
Suze: There's only really one thing that we want. You to

499
00:30:58,819 --> 00:31:01,609
Suze: remember when it comes to your money and that is

500
00:31:01,619 --> 00:31:04,599
Suze: anything that you put in a Roth IRA if you

501
00:31:04,609 --> 00:31:08,729
Suze: follow the guidelines is tax free, so stop it everybody

502
00:31:08,739 --> 00:31:14,420
Suze: just understand that and just know it's people first then

503
00:31:15,119 --> 00:31:15,439
Suze: things

504
00:31:16,060 --> 00:31:18,430
KT: and if you follow those rules and listen to that

505
00:31:18,439 --> 00:31:19,420
KT: Roth business,

506
00:31:19,430 --> 00:31:22,489
KT: you will be unstoppable.