1 00:00:33,940 --> 00:00:36,570 Suze: May Fifth, 2022 2 00:00:37,260 --> 00:00:39,739 KT: Good morning Suze. Do you know what today is? 3 00:00:39,750 --> 00:00:42,250 Suze: Well, first you have to welcome everybody, KT. 4 00:00:42,260 --> 00:00:48,250 KT: Welcome everybody to the ask Suze and KT, anything, anything podcast, 5 00:00:48,260 --> 00:00:51,849 KT: you should ask about some of my recipes for Cinco 6 00:00:51,850 --> 00:00:52,560 KT: de Mayo. 7 00:00:53,340 --> 00:00:54,260 Suze: You have recipes? 8 00:00:54,260 --> 00:00:55,260 KT: Yes, I do. 9 00:00:56,040 --> 00:00:57,250 Suze: What are we eating today? 10 00:00:57,260 --> 00:00:59,070 KT: We're going to have, well we're going to try to 11 00:00:59,070 --> 00:01:03,060 KT: do some really delicious fish tacos, maybe a little bit 12 00:01:03,060 --> 00:01:05,760 KT: of beans, rice and beans. 13 00:01:06,140 --> 00:01:10,050 KT: And I have an idea to do my tuna tartare 14 00:01:10,050 --> 00:01:12,520 KT: with avocado delicious. 15 00:01:12,530 --> 00:01:16,709 Suze: You know, KT people are writing in and they are asking, 16 00:01:16,720 --> 00:01:20,450 Suze: what do we do with all the fish that we catch? 17 00:01:21,240 --> 00:01:22,300 Suze: So tell them, 18 00:01:22,310 --> 00:01:25,630 KT: Well, the first thing we do is we share it 19 00:01:25,640 --> 00:01:29,420 KT: and that's the most important thing. The second thing we 20 00:01:29,420 --> 00:01:33,500 KT: do is we consume it. And the third thing we 21 00:01:33,500 --> 00:01:38,539 KT: do is we try to save and freeze certain types 22 00:01:38,540 --> 00:01:41,250 KT: of fish that come only at seasonal. 23 00:01:41,540 --> 00:01:42,950 KT: You know like the wahoo, 24 00:01:43,040 --> 00:01:46,940 KT: you can't catch wahoo now until October if you're lucky. 25 00:01:46,950 --> 00:01:50,600 KT: So things like that, we kind of, you know put 26 00:01:50,600 --> 00:01:51,059 KT: aside 27 00:01:51,060 --> 00:01:53,520 Suze: but all of you should know that we do not 28 00:01:53,520 --> 00:01:56,430 Suze: do any sport fishing on any, 29 00:01:56,440 --> 00:01:59,250 KT: no, no, no, we are not catch and release girls, 30 00:01:59,260 --> 00:02:02,059 Suze: we don't catch a fish just for the sport of it. 31 00:02:02,240 --> 00:02:04,500 Suze: And you have to remember that we live on this 32 00:02:04,500 --> 00:02:08,610 Suze: tiny little island where most of the Islanders do not 33 00:02:08,610 --> 00:02:13,010 Suze: have the type of equipment needed to catch certain fish 34 00:02:13,010 --> 00:02:16,210 Suze: like wahoo. So when we go out there or to 35 00:02:16,210 --> 00:02:17,880 Suze: even catch tuna, 36 00:02:18,330 --> 00:02:22,549 KT: we share everything with them. A lot of our catch with 37 00:02:22,940 --> 00:02:28,139 KT: our family, with friends with the Islanders. Everybody loves, we 38 00:02:28,139 --> 00:02:31,060 KT: catch barracudas, which Suze and I don't eat, 39 00:02:31,440 --> 00:02:36,440 KT: but boy barracuda meat is really sweet and white and delicious. 40 00:02:36,450 --> 00:02:37,649 KT: We just don't 41 00:02:38,040 --> 00:02:41,070 KT: care for it, we don't like it. So I, we 42 00:02:41,070 --> 00:02:44,680 KT: get that to the Islanders and they love it. What Suze. 43 00:02:44,690 --> 00:02:47,209 Suze: There's a morning show that I love to watch every 44 00:02:47,210 --> 00:02:47,760 Suze: morning 45 00:02:48,139 --> 00:02:51,179 Suze: And it's about what's happening in the world and things 46 00:02:51,180 --> 00:02:54,519 Suze: you need to know and two of the hosts, sometimes 47 00:02:54,520 --> 00:02:57,650 Suze: when they open up, spend 10 minutes talking about baseball 48 00:02:58,040 --> 00:03:01,070 Suze: or talking about some sporting event and I'm sitting there 49 00:03:01,070 --> 00:03:04,090 Suze: thinking to myself, I don't care about the sporting events. 50 00:03:04,090 --> 00:03:07,220 Suze: Tell me what's going on in the world. So for 51 00:03:07,230 --> 00:03:09,840 Suze: all of you tuning in to this podcast, 52 00:03:09,840 --> 00:03:13,530 KT: sorry, we bored you with our machine stories, so let's 53 00:03:13,530 --> 00:03:17,030 KT: get right to it, Suze. Okay, so first question is 54 00:03:17,030 --> 00:03:18,350 KT: from Mayanne, 55 00:03:18,900 --> 00:03:23,390 KT: Suze, my son is having a destination wedding. Everyone at 56 00:03:23,400 --> 00:03:27,280 KT: obvious obvious that Maryanne needs to travel far to attend 57 00:03:27,280 --> 00:03:31,230 KT: this wedding and here's the story, I'm semi retired but 58 00:03:31,230 --> 00:03:36,960 KT: I work part time, I have $10,000 in credit card debt, 59 00:03:38,140 --> 00:03:40,860 KT: $2,000 in savings. 60 00:03:41,740 --> 00:03:44,870 KT: I'm only 54, but I understand that at this age 61 00:03:44,870 --> 00:03:48,470 KT: I should be far more financially responsible. I need to 62 00:03:48,470 --> 00:03:52,760 KT: secure my financial future. She just got a tax bill 63 00:03:52,770 --> 00:03:57,720 KT: of $3,000 and she now needs to survive on her 64 00:03:57,720 --> 00:04:02,930 KT: credit cards and that will cost her at least another $5,000. 65 00:04:02,930 --> 00:04:03,150 KT: So 66 00:04:03,160 --> 00:04:04,560 Suze: she goes to the wedding. 67 00:04:04,640 --> 00:04:07,970 KT: Yeah. I don't want to miss my son's wedding. I 68 00:04:07,970 --> 00:04:10,450 KT: feel like there will be some resentment if I do 69 00:04:10,450 --> 00:04:15,540 KT: not go. This is a really heartbreaking decision. What do 70 00:04:15,540 --> 00:04:17,060 KT: I do? Please help? 71 00:04:17,740 --> 00:04:19,980 KT: Well, we know the answer to that. Everyone. 72 00:04:20,010 --> 00:04:23,300 Suze: Not necessarily. You think KT, I'm just going to say, 73 00:04:23,300 --> 00:04:23,860 Suze: don't go. 74 00:04:24,839 --> 00:04:25,810 Suze: Right. You think that 75 00:04:25,810 --> 00:04:27,050 KT: right? All 76 00:04:27,050 --> 00:04:31,820 Suze: right. Here's what I really think Maryanne. One of two 77 00:04:31,820 --> 00:04:33,750 Suze: things are happening here. 78 00:04:35,040 --> 00:04:41,190 Suze: Either. Your son has absolutely no idea about the severity 79 00:04:41,190 --> 00:04:44,060 Suze: of your financial situation. 80 00:04:44,640 --> 00:04:50,360 Suze: You really don't have $2,000 in savings. You have 81 00:04:50,740 --> 00:04:55,260 Suze: $13,000 of money that you owe before this wedding. 82 00:04:55,640 --> 00:04:59,859 Suze: $10,000 in credit card debt. $3,000 to this tax bill. 83 00:04:59,930 --> 00:05:02,060 Suze: So the truth of the matter is 84 00:05:02,540 --> 00:05:06,490 Suze: You are if you use up your savings, you owe 85 00:05:06,500 --> 00:05:11,990 Suze: $11,000 and you have no savings whatsoever. If you look 86 00:05:11,990 --> 00:05:15,610 Suze: at it that way, but you're thinking about possibly adding 87 00:05:15,620 --> 00:05:20,860 Suze: $5,000 onto your credit cards. Plus 88 00:05:21,839 --> 00:05:26,469 Suze: that reduces your credit limit. Why? Because you only have 89 00:05:26,470 --> 00:05:28,580 Suze: so much of a credit limit. But you're still using 90 00:05:28,580 --> 00:05:32,700 Suze: your credit cards simply to live on. You cannot afford 91 00:05:32,700 --> 00:05:36,480 Suze: this on any level on your own. That's number one. 92 00:05:36,480 --> 00:05:38,849 Suze: So back to what I was saying. 93 00:05:39,040 --> 00:05:43,050 Suze: Either your son has absolutely no idea about the severity 94 00:05:43,060 --> 00:05:45,760 Suze: of your financial situation 95 00:05:46,339 --> 00:05:48,950 Suze: or if he does, 96 00:05:49,640 --> 00:05:52,849 Suze: I'm just going to say this. How dare he, 97 00:05:53,640 --> 00:05:56,660 Suze: how dare he without talking to you about it? 98 00:05:57,240 --> 00:06:02,529 Suze: Plan a destination wedding. Knowing that you can't afford to 99 00:06:02,529 --> 00:06:05,930 Suze: go without offering to pay for you. 100 00:06:05,940 --> 00:06:07,260 KT: I don't think he knows. 101 00:06:07,270 --> 00:06:09,559 Suze: We don't know. If he knows or not 102 00:06:09,740 --> 00:06:13,589 KT: then if he doesn't know, he should pay for his mom. 103 00:06:13,600 --> 00:06:14,690 KT: If he wants her there. 104 00:06:14,700 --> 00:06:16,900 Suze: If he wants her there. So I was getting there, KT. 105 00:06:16,900 --> 00:06:18,460 Suze: But if he knows 106 00:06:19,040 --> 00:06:25,160 Suze: and he has planned this destination wedding. Knowing your circumstances, 107 00:06:25,940 --> 00:06:28,960 Suze: the hard feelings of resentment 108 00:06:29,339 --> 00:06:31,860 Suze: shouldn't be from him to you. 109 00:06:32,540 --> 00:06:35,800 Suze: It should be from you to him for not wanting 110 00:06:35,800 --> 00:06:39,130 Suze: his mother there enough that he would have planned a 111 00:06:39,130 --> 00:06:42,610 Suze: wedding that you could attend without having it cost you 112 00:06:42,610 --> 00:06:44,659 Suze: a penny. If on the other hand, 113 00:06:45,240 --> 00:06:48,010 Suze: and I hope the other hand is what's true. He 114 00:06:48,010 --> 00:06:52,159 Suze: doesn't know anything about the severity of your financial situation. 115 00:06:52,740 --> 00:06:53,850 Suze: You are to tell him 116 00:06:54,540 --> 00:06:56,760 Suze: and you are to say, sweetheart, I love you more 117 00:06:56,760 --> 00:06:58,779 Suze: than life itself. But let me tell you a little 118 00:06:58,779 --> 00:07:03,180 Suze: bit about what's going on with me financially. So, if 119 00:07:03,180 --> 00:07:06,020 Suze: you want me to come and I want to come 120 00:07:06,020 --> 00:07:08,060 Suze: more than you have any idea. 121 00:07:08,740 --> 00:07:11,190 Suze: two things. Either you're going to have to pay for 122 00:07:11,190 --> 00:07:14,650 Suze: me or if you can't pay for me 123 00:07:15,340 --> 00:07:18,320 Suze: then how about if we at least have a zoom 124 00:07:18,320 --> 00:07:22,630 Suze: wedding where you zoom me in so I can participate 125 00:07:22,630 --> 00:07:23,460 Suze: that way. 126 00:07:24,040 --> 00:07:28,200 Suze: Those are your choices. But the possibility of you paying 127 00:07:28,200 --> 00:07:31,130 Suze: for this by putting it on your credit cards is 128 00:07:31,130 --> 00:07:35,160 Suze: not happening on my watch. No way. 129 00:07:35,640 --> 00:07:38,680 KT: Well there you go, Maryanne call your son. 130 00:07:38,690 --> 00:07:40,500 Suze: You know what I would like all of you to 131 00:07:40,500 --> 00:07:43,350 Suze: do that. We're just listening to that. Can you go 132 00:07:43,350 --> 00:07:46,160 Suze: on to the Women and Money app 133 00:07:46,540 --> 00:07:50,650 Suze: and under this podcast that released today, 134 00:07:51,040 --> 00:07:53,830 Suze: it's up there for a while on my wall. Can 135 00:07:53,830 --> 00:07:57,550 Suze: you tell me and send in an email that says 136 00:07:57,550 --> 00:07:59,590 Suze: or you can do it on ask Suze podcast at 137 00:07:59,590 --> 00:08:04,100 Suze: gmail dot com. Do you think her son knows about 138 00:08:04,100 --> 00:08:07,060 Suze: her financial situation or does not 139 00:08:07,140 --> 00:08:09,610 Suze: just curious if you think he does or he doesn't. 140 00:08:09,610 --> 00:08:10,930 Suze: Alright sorry KT, go on. 141 00:08:12,640 --> 00:08:14,460 KT: My vote is he does not know 142 00:08:15,040 --> 00:08:17,860 KT: or he would have never assumed his mom should just 143 00:08:17,870 --> 00:08:20,360 KT: fly to wherever that destination is. 144 00:08:20,370 --> 00:08:22,310 Suze: And I'm going to tell you, I think he knows. 145 00:08:22,840 --> 00:08:26,810 KT: Okay, let's say it if he does anyway, this next 146 00:08:26,810 --> 00:08:28,900 KT: one's from Kate. I think I know the answer. This 147 00:08:28,900 --> 00:08:32,650 KT: has to do with my friend Roth. Hello KT and Suze. 148 00:08:32,660 --> 00:08:35,010 Suze: Wait, I know I keep interrupting you. I just have 149 00:08:35,010 --> 00:08:37,260 Suze: to say something that's so hysterical. 150 00:08:37,640 --> 00:08:40,800 Suze: Somebody wrote in a 27 year old who is doing 151 00:08:40,800 --> 00:08:47,830 Suze: so incredible. All this money saved the perfect situation. You 152 00:08:47,830 --> 00:08:49,760 Suze: know what his mother named him 153 00:08:50,240 --> 00:08:54,030 Suze: because she watched the Suze Orman show for all these years. 154 00:08:54,040 --> 00:09:00,560 Suze: She named him Ira after I. R. A. Is that funny? 155 00:09:01,340 --> 00:09:03,680 KT: I told you if I had we had a baby 156 00:09:03,690 --> 00:09:05,900 KT: our first son would be called Roth 157 00:09:05,910 --> 00:09:07,660 Suze: or our first daughter. 158 00:09:08,130 --> 00:09:11,020 KT: Now that Roth is a man's name. It's not a girl. 159 00:09:11,030 --> 00:09:13,309 Suze: So it doesn't matter today. 160 00:09:13,320 --> 00:09:14,189 KT: Okay ready. 161 00:09:14,940 --> 00:09:17,670 KT: I am leaving my current job where I have a 162 00:09:17,670 --> 00:09:20,920 KT: Roth 401(k) . I'm trying to figure out what to 163 00:09:20,920 --> 00:09:24,110 KT: do with this account. Once I leave we make about 164 00:09:24,110 --> 00:09:28,760 KT: 300,000 year. So don't we don't qualify for a Roth 165 00:09:28,760 --> 00:09:29,460 KT: IRA 166 00:09:30,040 --> 00:09:33,060 KT: what options do I have? Many thanks Kate. 167 00:09:34,340 --> 00:09:35,750 KT: I have. I know the answer. 168 00:09:36,540 --> 00:09:38,940 Suze: Let me see this email just so I can read 169 00:09:38,940 --> 00:09:41,160 Suze: it just so I can make sure I heard it correctly. 170 00:09:42,140 --> 00:09:43,500 Suze: She has a Roth 401 171 00:09:43,500 --> 00:09:44,780 KT: K. Right 172 00:09:44,780 --> 00:09:47,200 Suze: so she wants to know what are her options that 173 00:09:47,200 --> 00:09:48,260 Suze: she has 174 00:09:48,640 --> 00:09:50,860 Suze: because she's leaving her current job 175 00:09:52,140 --> 00:09:54,260 Suze: but she doesn't say her age. 176 00:09:55,440 --> 00:09:55,910 Suze: Alright. 177 00:09:55,920 --> 00:09:58,900 KT: She's assuming that she's young but she and her husband 178 00:09:58,900 --> 00:10:00,830 KT: combined make over 300. 179 00:10:00,840 --> 00:10:02,760 Suze: Yeah but she's leaving her 180 00:10:03,140 --> 00:10:04,069 Suze: right job so it 181 00:10:04,070 --> 00:10:05,420 KT: can't she roll it over? 182 00:10:05,429 --> 00:10:09,670 Suze: so what she can do everybody and this is important 183 00:10:09,670 --> 00:10:11,260 Suze: for all of you to know 184 00:10:11,640 --> 00:10:15,640 Suze: Is that she can if she's leaving she has a 185 00:10:15,640 --> 00:10:16,950 Suze: Roth 401k. 186 00:10:17,640 --> 00:10:21,150 Suze: She can roll that over into 187 00:10:21,540 --> 00:10:22,849 Suze: a Roth IRA 188 00:10:24,350 --> 00:10:27,460 Suze: At any discount brokerage firm she wants. Even though it 189 00:10:27,460 --> 00:10:29,850 Suze: doesn't matter KT how much money she's making, 190 00:10:30,440 --> 00:10:35,170 Suze: doesn't matter. Her income income has nothing to do with 191 00:10:35,170 --> 00:10:40,070 Suze: converting an account or rolling over accounts. It only has 192 00:10:40,070 --> 00:10:43,800 Suze: to do with if you're going to contribute yearly to 193 00:10:43,809 --> 00:10:45,350 Suze: an Roth IRA, 194 00:10:45,740 --> 00:10:46,550 Suze: that's it. 195 00:10:47,140 --> 00:10:47,350 KT: I 196 00:10:47,350 --> 00:10:51,660 Suze: want all of you listening to this to get this right, 197 00:10:52,440 --> 00:10:56,660 Suze: When you go from a Roth 401K. 198 00:10:57,340 --> 00:11:02,949 Suze: To a Roth IRA. Even if you had the Roth 199 00:11:02,960 --> 00:11:05,860 Suze: 401K . For 15 years, 200 00:11:06,340 --> 00:11:10,100 Suze: your time period does not transfer with you. 201 00:11:10,840 --> 00:11:15,240 Suze: So you all want to have a Roth IRA, even 202 00:11:15,240 --> 00:11:17,280 Suze: if all of it has in, there is 50 bucks 203 00:11:17,480 --> 00:11:19,660 Suze: that you start right now 204 00:11:20,040 --> 00:11:23,240 Suze: so that when you do end up retiring and you 205 00:11:23,240 --> 00:11:27,030 Suze: want to take money from a Roth 401K . And put 206 00:11:27,030 --> 00:11:31,160 Suze: it into a Roth ira by rolling it over. 207 00:11:31,840 --> 00:11:35,860 Suze: If your Roth IRA has already been opened for five years, 208 00:11:36,340 --> 00:11:40,370 Suze: Then you meet the five year time clock. And for 209 00:11:40,370 --> 00:11:42,850 Suze: those of you who don't know what I'm talking about, 210 00:11:42,860 --> 00:11:47,079 Suze: I did an amazing podcast on the five year rule 211 00:11:47,080 --> 00:11:49,929 Suze: that all of you should know about. And if you 212 00:11:49,929 --> 00:11:53,260 Suze: look up the podcast on February 6 213 00:11:53,640 --> 00:11:56,329 Suze: and you should really mark that podcast because you will 214 00:11:56,330 --> 00:11:58,609 Suze: need to go back to a time and time again 215 00:11:58,620 --> 00:12:01,530 Suze: to make sure that you don't forget anything about the 216 00:12:01,530 --> 00:12:05,120 Suze: five year rule that podcast will teach you everything you 217 00:12:05,120 --> 00:12:06,150 Suze: need to know. 218 00:12:06,840 --> 00:12:07,449 KT: So it does 219 00:12:07,450 --> 00:12:10,870 Suze: not matter if you don't qualify for a Roth IRA 220 00:12:12,340 --> 00:12:15,360 Suze: Right now. What you will do 221 00:12:15,740 --> 00:12:18,260 Suze: is when you roll it over 222 00:12:18,840 --> 00:12:22,429 Suze: you can roll it over into a Roth IRA 223 00:12:24,240 --> 00:12:27,570 Suze: Then it will be a Roth IRA. Rollover. Not contingent 224 00:12:27,570 --> 00:12:31,429 Suze: on income and the time clock will start the day 225 00:12:31,440 --> 00:12:34,630 Suze: that you do that. So that is your option and 226 00:12:34,630 --> 00:12:37,560 Suze: that is probably exactly what you should do. All right, 227 00:12:38,040 --> 00:12:42,220 KT: okay. Next question Suze is from Sharon. Hi Suze. I 228 00:12:42,220 --> 00:12:46,140 KT: opened a personal account using my social security number to 229 00:12:46,140 --> 00:12:47,460 KT: purchase an I bond. 230 00:12:47,460 --> 00:12:48,570 Suze: Yeah. Yeah. Yeah. 231 00:12:48,580 --> 00:12:52,260 KT: I also want to purchase other I bonds under my 232 00:12:52,260 --> 00:12:56,699 KT: business smart. Do I need to separate accounts? 233 00:12:57,640 --> 00:12:58,140 Suze: Yes.  Next. 234 00:12:58,150 --> 00:13:00,280 KT: Okay that's good. 235 00:13:00,290 --> 00:13:03,910 Suze: Everybody. You need to get this right. You can only 236 00:13:03,910 --> 00:13:06,880 Suze: have one account under your name. If you're going to 237 00:13:06,880 --> 00:13:11,090 Suze: open up another account as a trust account, a business account, 238 00:13:11,090 --> 00:13:14,880 Suze: your spouse has to be a separate account. So you 239 00:13:14,880 --> 00:13:17,300 Suze: have to open up a whole new account. 240 00:13:17,309 --> 00:13:20,859 KT: Ok, good. Next question is from Suzy. 241 00:13:21,240 --> 00:13:23,900 KT: Hi Suze and KT. I got your will and trust 242 00:13:23,900 --> 00:13:25,880 KT: kit to get my affairs in order. 243 00:13:25,890 --> 00:13:27,550 Suze: Good on you. 244 00:13:27,559 --> 00:13:31,650 KT: Yes. As I complete the trust portion and proceed with 245 00:13:31,650 --> 00:13:36,179 KT: funding the trust. I wasn't sure if I should include 246 00:13:36,210 --> 00:13:38,459 KT: my regular banking accounts 247 00:13:38,640 --> 00:13:42,060 KT: which I had already added beneficiaries to. 248 00:13:42,140 --> 00:13:46,239 KT: Should I include that in the revocable trust I recall 249 00:13:46,240 --> 00:13:51,469 KT: you stated in previous podcast that the beneficiaries would trump 250 00:13:51,480 --> 00:13:55,750 KT: the trust. So if I have a power of attorney, 251 00:13:55,760 --> 00:14:00,860 KT: should that be sufficient with beneficiaries to the banking account 252 00:14:01,040 --> 00:14:04,110 KT: in the event that I am incapacitated? 253 00:14:04,140 --> 00:14:07,660 Suze: The reason why I really want all of you 254 00:14:08,240 --> 00:14:10,360 Suze: and I've said this before and I'm going to say 255 00:14:10,360 --> 00:14:14,420 Suze: it again that if you're doing a revocable living trust 256 00:14:14,429 --> 00:14:17,660 Suze: and my opinion is most of you should have one 257 00:14:18,340 --> 00:14:22,260 Suze: is that you want your bank accounts to be owned 258 00:14:22,270 --> 00:14:23,860 Suze: by the trust. 259 00:14:24,640 --> 00:14:30,240 Suze: You also want the beneficiaries to be the trust. And 260 00:14:30,240 --> 00:14:34,210 Suze: the reason is this all of us think that everything's 261 00:14:34,210 --> 00:14:37,260 Suze: gonna go exactly like we think it's going to go 262 00:14:37,940 --> 00:14:42,210 Suze: and a beneficiary or a pay on death account for 263 00:14:42,210 --> 00:14:47,070 Suze: a bank account only allows your beneficiaries to get that 264 00:14:47,070 --> 00:14:49,250 Suze: money if you die. 265 00:14:49,840 --> 00:14:53,640 Suze: If you don't die, it doesn't help them at all. 266 00:14:53,650 --> 00:14:57,470 Suze: If you become incapacitated, they cannot pay your bills or 267 00:14:57,470 --> 00:15:00,770 Suze: write your checks for you. Now you say you have 268 00:15:00,770 --> 00:15:05,390 Suze: a power of attorney, so that should be sufficient enough 269 00:15:05,400 --> 00:15:08,720 Suze: that in case you become incapacitated, they can step in 270 00:15:08,720 --> 00:15:13,630 Suze: for you. I don't think so. And the reason is this: 271 00:15:13,650 --> 00:15:20,370 Suze: many financial institutions do not trust. Power of attorneys when 272 00:15:20,380 --> 00:15:25,260 Suze: the person who granted the power is already incapacitated. 273 00:15:25,740 --> 00:15:29,520 Suze: And the reason is this, you could have revoked that 274 00:15:29,520 --> 00:15:32,920 Suze: power of attorney, You could have done another one and 275 00:15:32,920 --> 00:15:35,650 Suze: that was just an old one and the bank has 276 00:15:35,650 --> 00:15:36,960 Suze: no idea 277 00:15:37,440 --> 00:15:41,850 Suze: if it's valid or not. When you have an incapacity 278 00:15:41,850 --> 00:15:46,160 Suze: clause within the trust as my must have documents do. 279 00:15:46,810 --> 00:15:48,750 Suze: If there is an incapacity 280 00:15:49,340 --> 00:15:53,900 Suze: and you named somebody to be your successor trustee, they 281 00:15:53,900 --> 00:15:56,940 Suze: then just simply take that trust into the bank. In fact, 282 00:15:56,940 --> 00:15:58,360 Suze: the bank already has it. 283 00:15:58,840 --> 00:16:02,970 Suze: They see the date on it and they absolutely trust 284 00:16:02,970 --> 00:16:03,660 Suze: that 285 00:16:04,340 --> 00:16:08,960 Suze: because it's been signed and notarized and they believe that. 286 00:16:09,740 --> 00:16:14,420 Suze: So I would rather see you truthfully do. What do 287 00:16:14,420 --> 00:16:18,220 Suze: a bank account that's owned by the living revocable trust? 288 00:16:18,220 --> 00:16:19,160 Suze: One more thing. 289 00:16:19,840 --> 00:16:23,160 Suze: What happens if you 290 00:16:23,540 --> 00:16:26,060 Suze: and your beneficiaries? Maybe it's your son, 291 00:16:26,540 --> 00:16:27,350 Suze: your daughter, 292 00:16:28,040 --> 00:16:28,760 Suze: your kid, 293 00:16:29,140 --> 00:16:31,260 Suze: you're all in a car crash together 294 00:16:32,240 --> 00:16:34,850 Suze: and you die. 295 00:16:35,240 --> 00:16:38,970 Suze: But now your beneficiaries are incapacitated and they can't really 296 00:16:38,980 --> 00:16:41,960 Suze: inherit anything because they're not capable 297 00:16:42,340 --> 00:16:47,430 Suze: or you're in a car crash, you become incapacitated and 298 00:16:47,430 --> 00:16:52,170 Suze: your beneficiaries die. Now, who's going to take care of you? 299 00:16:52,180 --> 00:16:57,390 Suze: Or maybe your power of attorney for finances became incapacitated? 300 00:16:57,400 --> 00:17:01,010 Suze: Who's gonna take care of you? These are things that 301 00:17:01,020 --> 00:17:01,859 Suze: a trust 302 00:17:02,040 --> 00:17:04,740 Suze: thinks about for you because you don't like to think 303 00:17:04,740 --> 00:17:06,000 Suze: about him yourself. 304 00:17:07,840 --> 00:17:10,250 KT: All right, Next question is from Lori. 305 00:17:10,660 --> 00:17:12,359 Suze: You seem very low key today. 306 00:17:12,740 --> 00:17:13,370 KT: I do? 307 00:17:13,380 --> 00:17:13,980 Suze: Yes. 308 00:17:14,840 --> 00:17:18,570 KT: Why? That was a really low. That was a very 309 00:17:18,570 --> 00:17:23,510 KT: sad scenario. Why would I be upbeat after listening to 310 00:17:23,510 --> 00:17:26,909 KT: that scenario of everybody dying or getting incapacitated. 311 00:17:27,950 --> 00:17:28,510 Suze: I know, but 312 00:17:28,510 --> 00:17:30,859 KT: it's not something I'm going to be upbeat about 313 00:17:30,940 --> 00:17:32,200 KT: on any level. You should 314 00:17:32,200 --> 00:17:35,929 Suze: see KT, KT cries at everything, 315 00:17:36,100 --> 00:17:36,990 KT: everything 316 00:17:37,000 --> 00:17:38,260 Suze: will be watching 317 00:17:38,340 --> 00:17:40,180 Suze: a news report And all of a sudden I look 318 00:17:40,180 --> 00:17:42,170 Suze: over and she is crying. 319 00:17:42,640 --> 00:17:44,459 Suze: Her and Colo both 320 00:17:46,840 --> 00:17:49,439 KT: Colo sits with me. He goes turn it, turn it, turn 321 00:17:49,440 --> 00:17:51,350 KT: the channel, turn it, turn it. 322 00:17:51,350 --> 00:17:54,150 Suze: The two of them are such cry babies. Alright, go on. 323 00:17:54,160 --> 00:17:57,170 KT: Okay, so this one upbeat. Upbeat about this one. This 324 00:17:57,170 --> 00:18:00,669 KT: is from Lori. Yeah baby. 325 00:18:01,140 --> 00:18:05,720 KT: I'm 57 Suze. I have a 401K . With Fidelity 326 00:18:05,720 --> 00:18:12,190 KT: valued at roughly $850,000. Yeah baby. I plan to work 327 00:18:12,190 --> 00:18:16,270 KT: another 10 years. Is it wise to roll that over 328 00:18:16,280 --> 00:18:17,020 KT: into an IRA? 329 00:18:20,890 --> 00:18:21,220 KT: Well 330 00:18:21,220 --> 00:18:23,439 Suze: She wouldn't want to roll it to a Roth IRA 331 00:18:23,450 --> 00:18:26,340 Suze: because all 850,000 would become taxable to her 332 00:18:26,710 --> 00:18:27,679 KT: at that point. 333 00:18:27,690 --> 00:18:31,260 Suze: So you could probably, the place where you work would 334 00:18:31,260 --> 00:18:34,530 Suze: allow you to do a partial rollover at this point. 335 00:18:34,540 --> 00:18:37,460 Suze: But with 10 years left to work I would just 336 00:18:37,460 --> 00:18:40,350 Suze: leave it exactly where I had it. But 337 00:18:40,740 --> 00:18:42,270 Suze: I would really think about 338 00:18:42,640 --> 00:18:47,820 Suze: making contributions to the Roth 401 K versus the traditional 339 00:18:47,820 --> 00:18:49,210 Suze: 401 K. Alright. 340 00:18:49,450 --> 00:18:49,850 KT: Oh 341 00:18:49,859 --> 00:18:51,670 Suze: but wait I have something more to say 342 00:18:52,040 --> 00:18:54,169 Suze: one thing Lori is this, 343 00:18:54,740 --> 00:18:58,670 Suze: if you have money in a Roth 401 K. That 344 00:18:58,670 --> 00:19:01,619 Suze: you're going to start contributing. Like I said a little 345 00:19:01,619 --> 00:19:05,179 Suze: bit ago, make sure you open up a Roth IRA 346 00:19:05,180 --> 00:19:09,350 Suze: now if you don't have one to start the time clock, 347 00:19:10,040 --> 00:19:12,740 Suze: even if that means you don't qualify for a Roth 348 00:19:12,740 --> 00:19:16,320 Suze: contributory run right now. Open up a little traditional one, 349 00:19:16,320 --> 00:19:19,860 Suze: 50 bucks and convert it to a Roth. So the 350 00:19:19,859 --> 00:19:24,419 Suze: time clock starts now. So 10 years from now, if 351 00:19:24,420 --> 00:19:28,389 Suze: you're contributing to a Roth 401 K. At your place 352 00:19:28,390 --> 00:19:29,359 Suze: of employment, 353 00:19:29,700 --> 00:19:32,420 Suze: that when the time comes, you can roll over into 354 00:19:32,540 --> 00:19:36,040 Suze: a Roth IRA tax free and you've already met the 355 00:19:36,040 --> 00:19:38,520 Suze: five year time clock rule. Alright, 356 00:19:38,520 --> 00:19:41,450 KT: great. Next question is from Loretta, 357 00:19:41,940 --> 00:19:45,840 KT: This is for her 95 year old mom. She has 358 00:19:45,840 --> 00:19:49,960 KT: a good portfolio and has been wisely investing since she 359 00:19:49,960 --> 00:19:54,260 KT: married in the 1940s. She is in good health and 360 00:19:54,260 --> 00:19:58,420 KT: still interested in looking after her assets which are in 361 00:19:58,420 --> 00:20:02,770 KT: a trust. She recently had a long term bond mature 362 00:20:02,770 --> 00:20:04,630 KT: for $100,000. 363 00:20:04,940 --> 00:20:08,619 KT: We were wondering Suze, if you think mom is better 364 00:20:08,619 --> 00:20:12,869 KT: off keeping in keeping it in cash or putting some 365 00:20:12,880 --> 00:20:16,550 KT: in a two or three year treasury or I bonds. 366 00:20:17,140 --> 00:20:19,830 KT: I love this question. I loved that her mother is 367 00:20:19,830 --> 00:20:24,340 KT: 95 and still very engaged in her finances. 368 00:20:24,340 --> 00:20:27,270 Suze: Yeah. You know, at 95. Um 369 00:20:27,640 --> 00:20:29,859 Suze: obviously if you wanted to put some in the stock 370 00:20:29,859 --> 00:20:34,270 Suze: market in high yielding dividend stocks and everything you could, however, 371 00:20:34,640 --> 00:20:39,230 Suze: I think why put any stress on yourself and or 372 00:20:39,240 --> 00:20:40,159 Suze: your mom 373 00:20:40,740 --> 00:20:44,389 Suze: because she doesn't need the $100,000. So why not just 374 00:20:44,390 --> 00:20:48,560 Suze: keep it safe and sound which means put $10,000 obviously 375 00:20:48,560 --> 00:20:50,490 Suze: into a series I bond, you know how much I 376 00:20:50,490 --> 00:20:54,139 Suze: love them. But there's nothing wrong with purchasing two or 377 00:20:54,140 --> 00:20:56,460 Suze: three year treasury notes 378 00:20:56,540 --> 00:21:00,130 Suze: at a nice interest rate here 2.5, 2.7. They keep 379 00:21:00,130 --> 00:21:01,320 Suze: going up and down 380 00:21:01,640 --> 00:21:04,540 Suze: and just have it safe and sound and and just 381 00:21:04,540 --> 00:21:07,080 Suze: have it there and where you can sell it if 382 00:21:07,080 --> 00:21:08,660 Suze: you need it. All right, 383 00:21:09,040 --> 00:21:10,660 KT: okay. Suze. 384 00:21:11,040 --> 00:21:13,689 KT: I think this is going to make you a little feisty. 385 00:21:13,700 --> 00:21:17,860 KT: I don't know if I don't think there's a name 386 00:21:17,859 --> 00:21:19,460 KT: on this. Actually. 387 00:21:19,940 --> 00:21:22,710 KT: I think she just wants to get your advice ready 388 00:21:22,710 --> 00:21:26,540 KT: for this. Meanwhile. Hi. Good morning. This is the first 389 00:21:26,540 --> 00:21:30,680 KT: time I'm writing in. I'm 62 years old. I'm an 390 00:21:30,690 --> 00:21:35,030 KT: only child and my father is 81 years old. My 391 00:21:35,030 --> 00:21:36,500 KT: mom has passed. 392 00:21:37,040 --> 00:21:39,260 KT: So this is a father daughter question. 393 00:21:39,260 --> 00:21:39,930 Suze: She's 62. 394 00:21:40,230 --> 00:21:45,720 KT: She's 62, daddy is 81. Alright, ready. My father has some 395 00:21:45,720 --> 00:21:51,840 KT: money in a bank account about $66,000. He doesn't know that. 396 00:21:51,840 --> 00:21:52,790 KT: I know this. 397 00:21:53,180 --> 00:21:55,150 Suze: We have problems right there. 398 00:21:55,150 --> 00:21:57,649 KT: Wait this is already starting to give us a clue 399 00:21:57,650 --> 00:22:00,410 KT: of where this is going. Ready. And he also has 400 00:22:00,410 --> 00:22:00,879 KT: some CDs 401 00:22:01,640 --> 00:22:05,330 KT: Which we have discussed years ago. I have some money 402 00:22:05,330 --> 00:22:09,000 KT: difficulties right now. So I asked my dad for a 403 00:22:09,000 --> 00:22:13,190 KT: small portion of my inheritance to pay off some of 404 00:22:13,200 --> 00:22:18,490 KT: my bills like $10,000. That's a lot of money. I 405 00:22:18,490 --> 00:22:22,280 KT: asked him if he could cash in his CDs He 406 00:22:22,280 --> 00:22:25,540 KT: said no I'll have to pay taxes. And I said 407 00:22:25,550 --> 00:22:29,230 KT: well if you're over 59 a half you won't have 408 00:22:29,230 --> 00:22:34,699 KT: to pay any penalties to withdraw. He said absolutely not. 409 00:22:34,710 --> 00:22:37,930 KT: I am not touching it. I won't touch it. The 410 00:22:37,940 --> 00:22:41,360 KT: answer is no don't ask me again. 411 00:22:41,910 --> 00:22:43,970 KT: Now her question to you is 412 00:22:44,240 --> 00:22:46,419 KT: is this the truth? 413 00:22:46,430 --> 00:22:50,500 Suze: Yeah it's the truth not to ask him again. No way. 414 00:22:50,510 --> 00:22:53,650 Suze: I think what you're asking me is it the truth 415 00:22:53,660 --> 00:22:55,960 Suze: about the 59 a half 416 00:22:56,440 --> 00:23:00,060 Suze: that he won't have to pay any penalties to withdraw. 417 00:23:00,940 --> 00:23:07,290 Suze: That's not the truth. 59.5 only pertains to what? To 418 00:23:07,290 --> 00:23:09,359 Suze: retirement accounts. 419 00:23:09,840 --> 00:23:14,010 Suze: It does not pertain to certificates of deposits that are 420 00:23:14,020 --> 00:23:19,500 Suze: owned outside of retirement accounts. And yes there is a penalty. 421 00:23:19,500 --> 00:23:20,760 Suze: He's telling you the truth. 422 00:23:21,440 --> 00:23:24,780 Suze: If in fact he bought let's just say he did 423 00:23:24,790 --> 00:23:28,960 Suze: five years ago a five year certificate of deposit 424 00:23:29,540 --> 00:23:31,160 Suze: or he bought a few of them 425 00:23:31,840 --> 00:23:34,120 Suze: and it was guaranteeing him in interest rate at that 426 00:23:34,119 --> 00:23:38,410 Suze: time for five years if he breaks it and he 427 00:23:38,410 --> 00:23:42,670 Suze: withdraws his money before five years is up for that 428 00:23:42,670 --> 00:23:46,740 Suze: CD matures. Yeah there can be a three month interest penalty. 429 00:23:46,840 --> 00:23:49,740 Suze: There can be a six month interest penalty. You never 430 00:23:49,740 --> 00:23:51,669 Suze: know how it works. However 431 00:23:51,740 --> 00:23:54,260 Suze: here's what you're not thinking about. 432 00:23:55,040 --> 00:23:57,790 Suze: I get that at the age of 62 you have 433 00:23:57,790 --> 00:24:00,570 Suze: $10,000 a debt and you're scared and you don't know 434 00:24:00,570 --> 00:24:01,670 Suze: what to do about it. 435 00:24:02,040 --> 00:24:05,359 Suze: But I want you to think about your father 436 00:24:06,240 --> 00:24:08,960 Suze: Who is 81 years of age 437 00:24:09,440 --> 00:24:12,179 Suze: and the truth of the matter is who's going to 438 00:24:12,180 --> 00:24:13,669 Suze: take care of him 439 00:24:14,340 --> 00:24:17,160 Suze: since mama, his wife now is gone. 440 00:24:18,040 --> 00:24:21,760 Suze: And you see that he has $65,000 441 00:24:22,140 --> 00:24:25,000 Suze: In a bank account. And you think that's a lot. 442 00:24:25,280 --> 00:24:30,169 Suze: That's nothing when you are 81, years of age. 443 00:24:30,540 --> 00:24:33,660 Suze: And if you do have money in certificates of deposit, 444 00:24:34,140 --> 00:24:37,120 Suze: that means he needs to feel safe and sound because 445 00:24:37,119 --> 00:24:39,859 Suze: it's not invested where in the stock market. 446 00:24:40,340 --> 00:24:43,520 Suze: So it tells you something about your father that he's 447 00:24:43,520 --> 00:24:46,190 Suze: trying to make sure that he can take care of 448 00:24:46,190 --> 00:24:49,160 Suze: himself when he gets older. 449 00:24:49,640 --> 00:24:53,270 Suze: So you shouldn't be mad at him. You should understand that. 450 00:24:53,640 --> 00:24:56,090 Suze: And the truth of the matter is you need to 451 00:24:56,090 --> 00:24:59,460 Suze: come to grips with the reality. If he goes through 452 00:24:59,460 --> 00:25:03,359 Suze: all of this money and he doesn't have any money, 453 00:25:03,940 --> 00:25:07,420 Suze: he's going to come to you hopefully to ask you 454 00:25:07,420 --> 00:25:08,350 Suze: to help him. 455 00:25:08,940 --> 00:25:11,179 Suze: So you guys better get on the same side of 456 00:25:11,180 --> 00:25:14,060 Suze: the table here and support one another. 457 00:25:14,440 --> 00:25:16,370 Suze: Now there are ways for you to deal with your 458 00:25:16,369 --> 00:25:20,350 Suze: $10,000 of debt. Go to NFCC dot org 459 00:25:20,940 --> 00:25:25,280 Suze: And negotiate with them to take over your credit card debt, 460 00:25:25,280 --> 00:25:27,620 Suze: reduce it to 0% and put you on a five-year 461 00:25:27,619 --> 00:25:31,930 Suze: payment program. But there's nothing your father can do as 462 00:25:31,930 --> 00:25:34,980 Suze: he's getting older if he needs money and he doesn't 463 00:25:34,980 --> 00:25:35,300 Suze: have 464 00:25:35,300 --> 00:25:35,550 KT: it. 465 00:25:36,140 --> 00:25:36,860 Suze: So 466 00:25:37,340 --> 00:25:39,950 Suze: no, he should never give you this money 467 00:25:40,440 --> 00:25:43,900 Suze: while he's alive. And number two you need to be 468 00:25:43,900 --> 00:25:48,389 Suze: really loving and understanding about what he's going through 469 00:25:48,930 --> 00:25:49,680 KT: because 470 00:25:49,680 --> 00:25:53,280 Suze: She will be 82 one day as well and without money 471 00:25:53,290 --> 00:25:54,169 Suze: she'll know. 472 00:25:54,640 --> 00:25:55,750 Suze: So you 473 00:25:55,750 --> 00:25:59,359 KT: don't assume that he's lying to you? He just is 474 00:25:59,359 --> 00:26:02,330 KT: being very firm and doesn't and wants you to be 475 00:26:02,330 --> 00:26:03,850 KT: more responsible. That's all. 476 00:26:04,340 --> 00:26:08,350 KT: Okay. Next question. In the same light, this is an 477 00:26:08,350 --> 00:26:09,560 KT: opposite before 478 00:26:09,560 --> 00:26:12,810 Suze: I keep interrupting you today. You know, it's interesting about 479 00:26:12,810 --> 00:26:16,960 Suze: that one. What if he had been lying if he 480 00:26:16,960 --> 00:26:19,219 Suze: had been line, what would you have done? What if 481 00:26:19,220 --> 00:26:20,650 Suze: my answer would have been? Yeah, 482 00:26:21,040 --> 00:26:23,830 Suze: he's lying. No penalties. Nothing he can get at that 483 00:26:23,830 --> 00:26:25,119 Suze: money anytime he wants. 484 00:26:25,640 --> 00:26:29,020 Suze: That would have changed my answer whatsoever. 485 00:26:29,030 --> 00:26:32,620 KT: Okay, that's a good point. This next question, Suze from 486 00:26:32,619 --> 00:26:35,110 KT: Tammy is in the same light of what we just read. 487 00:26:35,109 --> 00:26:38,010 KT: But on the other side of the table, Dear, Suze 488 00:26:38,010 --> 00:26:41,669 KT: and KT, I am inheriting a large sum of money. 489 00:26:41,680 --> 00:26:44,959 KT: Is it okay to put some in my child's name? 490 00:26:45,040 --> 00:26:49,330 KT: Will it hurt his chance for a scholarship towards college? 491 00:26:49,350 --> 00:26:49,570 KT: You 492 00:26:49,570 --> 00:26:51,859 Suze: know, a lot of you lately have been writing this 493 00:26:51,869 --> 00:26:54,770 Suze: into me, especially about if you buy I bonds in 494 00:26:54,770 --> 00:26:58,859 Suze: your kid's name. Is it gonna hurt them for a scholarship? 495 00:26:59,740 --> 00:27:02,710 Suze: In most cases there's a really big difference between a 496 00:27:02,710 --> 00:27:08,629 Suze: scholarship and financial aid. A scholarship is based on the 497 00:27:08,630 --> 00:27:10,060 Suze: student's merits, 498 00:27:10,440 --> 00:27:16,610 Suze: their grades, their extracurricular activities. Do they deserve a scholarship 499 00:27:16,619 --> 00:27:19,870 Suze: based on who they are and what they have done 500 00:27:19,920 --> 00:27:21,169 Suze: in high school 501 00:27:21,740 --> 00:27:24,770 Suze: financial aid is based on 502 00:27:25,440 --> 00:27:28,370 Suze: how much do the kids have in their individual names 503 00:27:28,369 --> 00:27:30,960 Suze: or in a uniform gift to minors act account 504 00:27:31,540 --> 00:27:35,280 Suze: versus what you have in your name. So money that 505 00:27:35,280 --> 00:27:39,450 Suze: is in the kid's name or custodial account absolutely can 506 00:27:39,450 --> 00:27:44,190 Suze: hurt them for financial aid. So, but there is a difference, 507 00:27:44,200 --> 00:27:48,830 Suze: it does not hurt in most cases for scholarships. All right, KT, 508 00:27:48,900 --> 00:27:50,770 KT: So this is my final 509 00:27:51,240 --> 00:27:55,380 KT: email, but it's not a question. It's a statement and 510 00:27:55,380 --> 00:27:56,980 KT: something I want to share 511 00:27:56,980 --> 00:27:58,449 Suze: with you 512 00:27:58,450 --> 00:28:02,710 KT: didn't I? You did everything right, Suze. But this is 513 00:28:02,710 --> 00:28:06,010 KT: a great, great, great email from Cheryl and Cheryl. Thank you. 514 00:28:06,680 --> 00:28:08,990 Suze: Sorry KT, I don't always do everything right. There are people who 515 00:28:08,990 --> 00:28:09,770 Suze: write in 516 00:28:10,140 --> 00:28:14,260 Suze: who say I disagree with what you said and that's fine. 517 00:28:14,260 --> 00:28:16,869 Suze: You can disagree with what I said, I hear you 518 00:28:16,880 --> 00:28:19,430 Suze: and I'll write you back and I'll say I hear you, 519 00:28:19,430 --> 00:28:20,270 Suze: which means 520 00:28:20,640 --> 00:28:21,480 KT: I understand 521 00:28:21,480 --> 00:28:23,790 Suze: where you're coming from and I get that doesn't mean 522 00:28:23,790 --> 00:28:24,960 Suze: that I think I'm wrong, 523 00:28:25,640 --> 00:28:25,890 KT: but 524 00:28:25,890 --> 00:28:28,310 Suze: you never know. Sometimes I do think I'm wrong and 525 00:28:28,310 --> 00:28:29,600 Suze: then I'll correct it okay. 526 00:28:29,600 --> 00:28:33,030 KT: Everyone this from Cheryl is going to justify that. You're 527 00:28:33,030 --> 00:28:38,110 KT: definitely right on this particular topic. So Cheryl writes this 528 00:28:38,110 --> 00:28:39,950 KT: and shared it and I want all of you to 529 00:28:39,950 --> 00:28:40,850 KT: listen to this. 530 00:28:41,140 --> 00:28:43,900 KT: Hi Suze and KT, I love your show and always 531 00:28:43,900 --> 00:28:45,850 KT: learn something new and listening. 532 00:28:46,040 --> 00:28:48,800 KT: I wanted to share with you that I don't have 533 00:28:48,800 --> 00:28:53,450 KT: a living revocable trust and I know I need one fast. 534 00:28:53,940 --> 00:28:56,780 KT: I was in the car with my son last night 535 00:28:56,790 --> 00:29:01,760 KT: he was turning towards our street and 18 wheeler came 536 00:29:01,760 --> 00:29:04,860 KT: barreling up the hill toward us and I said, oh 537 00:29:04,860 --> 00:29:08,750 KT: my God, my son instantly looked in the rear view mirror. 538 00:29:08,760 --> 00:29:12,350 KT: He yanked the car over, allowing the truck to barely 539 00:29:12,350 --> 00:29:16,440 KT: squeaked by. All I can see when I close my eyes. 540 00:29:16,560 --> 00:29:21,450 KT: Is this scenario had I been incapacitated, we could have 541 00:29:21,450 --> 00:29:24,990 KT: lost our home because I'm the breadwinner in the family 542 00:29:24,990 --> 00:29:29,500 KT: and in an instant life can change Suze. You've impressed 543 00:29:29,500 --> 00:29:33,660 KT: this upon me and this situation really brought it home? 544 00:29:34,040 --> 00:29:36,520 KT: Thank God for my son's quick thinking 545 00:29:37,040 --> 00:29:40,500 KT: and at this point I'll be doing my living revocable 546 00:29:40,500 --> 00:29:42,070 KT: trust today. 547 00:29:42,080 --> 00:29:43,860 Suze: Why did you choose that one to read? 548 00:29:43,870 --> 00:29:48,670 KT: Because I think that Cheryl finally got a real life 549 00:29:48,670 --> 00:29:52,240 KT: wake up call and sadly none of you should have 550 00:29:52,240 --> 00:29:54,700 KT: a wake up call, you should just do 551 00:29:54,700 --> 00:29:55,570 Suze: wake up 552 00:29:55,580 --> 00:29:56,050 KT: Yeah, 553 00:29:56,140 --> 00:29:58,850 KT: just do it and put this in place, 554 00:29:59,140 --> 00:30:03,760 KT: but Cheryl's you know near death situation really opened her 555 00:30:03,760 --> 00:30:06,350 KT: eyes and the only thing she thought of was oh 556 00:30:06,350 --> 00:30:09,080 KT: my God if I don't have my will and trust 557 00:30:09,080 --> 00:30:10,930 KT: in place I would lose everything 558 00:30:11,090 --> 00:30:14,870 Suze: but somewhere that touched you inside to read that. So 559 00:30:14,880 --> 00:30:19,270 Suze: Cheryl if you're listening thank God nothing happened. But I 560 00:30:19,270 --> 00:30:21,420 Suze: do want to say to all of you that this 561 00:30:21,420 --> 00:30:23,560 Suze: is a great email because nothing happened. 562 00:30:23,940 --> 00:30:26,960 Suze: But too many times I'm reading too many emails 563 00:30:27,540 --> 00:30:31,690 Suze: after. It's too late. So all of you, the reason 564 00:30:31,690 --> 00:30:34,170 Suze: that we created the must have documents 565 00:30:34,640 --> 00:30:37,550 Suze: is that our documents. You must have. 566 00:30:37,940 --> 00:30:41,890 Suze: I have so many podcasts on why they're so important. 567 00:30:41,900 --> 00:30:44,430 Suze: But again if you want to check them out, go 568 00:30:44,430 --> 00:30:48,459 Suze: to Suze Orman dot com slash offer and that's where 569 00:30:48,460 --> 00:30:50,940 Suze: you can get $2500 worth of state of the art 570 00:30:50,940 --> 00:30:53,560 Suze: documents for 99 571 00:30:53,740 --> 00:30:56,320 Suze: dollars. You know what time it is? KT 572 00:30:57,010 --> 00:30:58,290 KT: Quizzie Time. 573 00:30:58,300 --> 00:31:03,550 Suze: Now this is an interesting quizzie and quizzie time everybody 574 00:31:04,140 --> 00:31:07,860 Suze: is where I get to ask KT a question 575 00:31:08,340 --> 00:31:11,040 Suze: and at the same time ask all of you that 576 00:31:11,040 --> 00:31:12,360 Suze: same question 577 00:31:12,840 --> 00:31:15,710 Suze: KT, you have to wait before you answer so people 578 00:31:15,710 --> 00:31:18,230 Suze: can think about it. You like to jump in there, 579 00:31:18,230 --> 00:31:21,310 Suze: you little rabbit you and we see how much is 580 00:31:21,310 --> 00:31:22,390 Suze: KT learned 581 00:31:23,240 --> 00:31:25,010 Suze: over all the years. That 582 00:31:25,010 --> 00:31:28,610 KT: dosen't sound nice Suze. Alright. Read it, Read me the, let 583 00:31:28,610 --> 00:31:29,020 KT: me read 584 00:31:29,020 --> 00:31:30,330 Suze: that we're gonna be 585 00:31:30,330 --> 00:31:31,930 KT: able to know. 586 00:31:31,930 --> 00:31:33,050 Suze: Alright anyway 587 00:31:33,440 --> 00:31:34,060 Suze: so 588 00:31:34,640 --> 00:31:35,660 Suze: are we ready? 589 00:31:36,740 --> 00:31:39,260 Suze: My husband and I retired 590 00:31:39,740 --> 00:31:41,770 Suze: Ages 58 and 60 591 00:31:42,340 --> 00:31:46,060 Suze: our home is paid for and we have no debt. 592 00:31:46,540 --> 00:31:50,930 Suze: We both have defined benefits from our former employers that 593 00:31:50,930 --> 00:31:53,950 Suze: cover all of our expenses and travel. 594 00:31:54,640 --> 00:32:01,520 Suze: We invest every month about $1,000 into a retirement account 595 00:32:01,530 --> 00:32:02,770 Suze: into stocks. 596 00:32:04,540 --> 00:32:09,630 Suze: One of us wants to stop investing and instead deposit 597 00:32:09,840 --> 00:32:12,580 Suze: the amount of money KT that they're putting into stocks 598 00:32:12,580 --> 00:32:13,170 Suze: every month 599 00:32:13,740 --> 00:32:19,220 Suze: to increase their savings for the eventual home renovation that 600 00:32:19,220 --> 00:32:20,270 Suze: they want to do. 601 00:32:20,840 --> 00:32:22,459 Suze: Now here's the question. 602 00:32:23,240 --> 00:32:26,060 Suze: One of us wants to keep investing the money. 603 00:32:26,440 --> 00:32:29,970 Suze: The other one again wants to keep it safe and 604 00:32:29,970 --> 00:32:31,959 Suze: sound in a savings account. 605 00:32:32,340 --> 00:32:35,390 Suze: So rather than taking the $1,000 which it is every 606 00:32:35,390 --> 00:32:38,530 Suze: month that they're investing in the market right now. One 607 00:32:38,530 --> 00:32:41,390 Suze: of them wants to continue doing that, the other wants 608 00:32:41,390 --> 00:32:44,550 Suze: to put it in a savings account and just keep 609 00:32:44,550 --> 00:32:48,660 Suze: it safe and sound for a renovation that they're doing. 610 00:32:48,940 --> 00:32:52,860 Suze: They currently have $72,000 liquid in a bank account. 611 00:32:53,340 --> 00:32:57,430 Suze: 10,000 of that is for the home renovation. They do 612 00:32:57,430 --> 00:33:01,230 Suze: not say how much the home renovation is going to be. 613 00:33:01,240 --> 00:33:02,670 Suze: Should they 614 00:33:03,440 --> 00:33:05,910 Suze: given the markets are down here probably going to go 615 00:33:05,910 --> 00:33:07,060 Suze: down some more. 616 00:33:07,640 --> 00:33:11,660 Suze: Should they continue to invest or should they put this 617 00:33:11,660 --> 00:33:15,459 Suze: money in savings simply to do the home renovation. 618 00:33:15,940 --> 00:33:17,560 KT: Can they do a 50/ 50, 619 00:33:17,570 --> 00:33:20,220 Suze: They can do anything. You tell them. Think about it. 620 00:33:20,230 --> 00:33:23,260 Suze: Think about it. Everybody. What would you tell them? 621 00:33:24,680 --> 00:33:25,760 KT: Do a 50 50 622 00:33:26,510 --> 00:33:30,050 KT: half of it and continue to invest in the stock market, 623 00:33:30,050 --> 00:33:33,459 KT: which is going down. It may not recoup for quite 624 00:33:33,460 --> 00:33:37,060 KT: a few years. The other half put it towards the renovation. 625 00:33:37,620 --> 00:33:39,470 KT: Everybody's happy. 626 00:33:41,140 --> 00:33:44,350 Suze: Obviously, if they want to do a renovation once you 627 00:33:44,350 --> 00:33:46,730 Suze: want to do a renovation sooner than later, you wouldn't 628 00:33:46,730 --> 00:33:50,060 Suze: really want to have to wait five or six  or seven years 629 00:33:50,060 --> 00:33:50,450 Suze: to do. 630 00:33:50,450 --> 00:33:54,080 KT: I've got news for you. If what they have now 631 00:33:54,090 --> 00:33:55,890 KT: is $10,000 632 00:33:55,890 --> 00:33:58,940 Suze: Towards the renovation, but maybe the renovation is 20,000 KT. 633 00:33:58,940 --> 00:34:00,120 Suze: We don't know that. 634 00:34:00,480 --> 00:34:02,050 KT: I was going to say there's not a lot. You're 635 00:34:02,050 --> 00:34:04,290 KT: going to renovate for 10 grand and this is the 636 00:34:04,290 --> 00:34:05,730 KT: prices these days. Right. 637 00:34:05,730 --> 00:34:07,500 Suze: So you would have them do 50 50 638 00:34:07,500 --> 00:34:11,419 KT: 50. Keep my my goal is keep them both happy. 639 00:34:11,570 --> 00:34:12,370 KT: Let them 640 00:34:12,370 --> 00:34:14,820 Suze: both be. They do say neither of us feels the 641 00:34:14,820 --> 00:34:17,520 Suze: need to be right or cares if we are wrong. 642 00:34:17,530 --> 00:34:20,950 Suze: We are just overwhelmed with the decision and need some direction. 643 00:34:20,960 --> 00:34:25,200 KT: Do a 50 50. Everybody. There's your there's the answer, Suze. 644 00:34:25,210 --> 00:34:27,160 KT: He's happy. She's happy 645 00:34:27,340 --> 00:34:28,359 KT: 50 50. 646 00:34:29,340 --> 00:34:30,549 KT: Put 500 on. 647 00:34:30,560 --> 00:34:32,670 Suze: I hear you. I hear you. I got it. 648 00:34:33,140 --> 00:34:33,310 Suze: (Wrong answer sound) 649 00:34:33,320 --> 00:34:35,730 KT: you going to do? All right. She's going to tell 650 00:34:35,730 --> 00:34:38,930 KT: him to put it in the stock market. You want 651 00:34:38,930 --> 00:34:42,220 KT: them to put all that money in the savings? How 652 00:34:42,219 --> 00:34:42,900 KT: come a 653 00:34:42,900 --> 00:34:44,560 Suze: Few reasons? # one 654 00:34:44,940 --> 00:34:49,290 Suze: money that you need within a five year period of 655 00:34:49,290 --> 00:34:49,759 Suze: time 656 00:34:49,770 --> 00:34:51,149 KT: should never be 657 00:34:51,160 --> 00:34:55,859 Suze: In the stock market. So even if it's $500 a month, 658 00:34:56,440 --> 00:34:59,170 Suze: That's $6,000 a year, 659 00:34:59,940 --> 00:35:04,770 Suze: That's over five year, $30,000 that very well could go 660 00:35:04,770 --> 00:35:07,859 Suze: to 15 or less, anything can happen. 661 00:35:08,340 --> 00:35:11,460 Suze: So, if you know that you need money for a 662 00:35:11,460 --> 00:35:12,260 Suze: project 663 00:35:13,040 --> 00:35:16,280 Suze: and you know that project is needed to be done 664 00:35:16,290 --> 00:35:21,060 Suze: or wanted to be done within five years and you 665 00:35:21,060 --> 00:35:24,450 Suze: have money sitting in other stocks and other things and 666 00:35:24,450 --> 00:35:26,750 Suze: you have a pension and everything is great. 667 00:35:27,340 --> 00:35:29,550 Suze: I would just make it so that it was safe 668 00:35:29,550 --> 00:35:30,250 Suze: and sound 669 00:35:30,739 --> 00:35:33,970 Suze: and that's what I would do and put it in savings. 670 00:35:34,440 --> 00:35:35,250 KT: All right, 671 00:35:35,840 --> 00:35:37,940 Suze: You still don't agree with that, Do you know? 672 00:35:37,940 --> 00:35:40,180 KT: I was just trying to make them both happy the 673 00:35:40,180 --> 00:35:43,069 KT: same way. They don't like people to feel secure. I 674 00:35:43,070 --> 00:35:44,440 KT: like them to be happy. 675 00:35:44,480 --> 00:35:47,960 Suze: Happy. Doesn't necessarily mean that it's right. 676 00:35:48,540 --> 00:35:50,780 Suze: I mean, that's when you tell people like that woman 677 00:35:50,790 --> 00:35:53,649 Suze: who wants to go to her son's destination wedding, 678 00:35:53,660 --> 00:35:54,600 KT: She could be 679 00:35:54,600 --> 00:35:56,669 Suze: happy if she goes. 680 00:35:57,040 --> 00:35:58,799 Suze: So you tell her, Okay, go 681 00:35:58,810 --> 00:35:59,719 KT: that's why people 682 00:35:59,719 --> 00:36:02,000 Suze: get into credit card debt because they want to feel 683 00:36:02,000 --> 00:36:03,850 Suze: happy when they make a purchase 684 00:36:05,230 --> 00:36:07,239 Suze: and she's yawning here 685 00:36:07,730 --> 00:36:12,740 Suze: and she's yawning? Are you kidding me? All right, that's it. 686 00:36:12,750 --> 00:36:15,420 Suze: I've had it. That brings us to the end. Let's 687 00:36:15,420 --> 00:36:17,420 KT: go Suze, make me a coffee. 688 00:36:17,430 --> 00:36:21,719 Suze: I'm not making you anything when you're yawning while I'm talking. 689 00:36:22,030 --> 00:36:24,130 Suze: It reminds me of my radio show that used to 690 00:36:24,130 --> 00:36:26,000 Suze: come to every day and fall asleep. Was 691 00:36:26,000 --> 00:36:27,340 KT: at the wrong hour 692 00:36:27,350 --> 00:36:29,020 Suze: four o'clock in the afternoon. Every 693 00:36:29,020 --> 00:36:31,090 KT: 4:00 need a little nap 694 00:36:31,100 --> 00:36:34,240 Suze: during my radio show that I could see her 695 00:36:34,330 --> 00:36:39,610 Suze: sleeping anyway. Alright until next Sunday or this coming Sunday. 696 00:36:39,620 --> 00:36:41,630 Suze: There's only one thing we want people to know when 697 00:36:41,630 --> 00:36:43,650 Suze: it comes to their money and what is it, KT? 698 00:36:43,650 --> 00:36:46,800 KT: Okay, You all need to be safe. Strong and 699 00:36:46,810 --> 00:36:51,040 Suze: secure. Alright everybody see you Sunday, Bye bye.