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Suze: June 18th, 2026. Welcome everybody to the Women and Money

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Suze: podcast and everybody smart enough to listen. Today is the

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Suze: Ask KT and Suze Anything edition. But before we begin, KT,

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Suze: just wait, wait one second, I'll get to you in

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Suze: one second. I need to remind you of something that's very,

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Suze: very important.

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Suze: Remember, June 21st, just a few days from now, is

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Suze: the very last day that you can get the Must-Have

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Suze: Documents for $99. On June 22nd, they go up to $153.

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Suze: So if there was ever a time now, if you

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Suze: missed the birthday pricing.

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Suze: That you still want to do it, or you've been

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Suze: thinking about doing it, now is the time. Go to Musthavedocs.com.

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Suze: You can also go to SuzeOrman.com and click it there.

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Suze: But if you're gonna do it, now is the time. Remember,

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Suze: June 22nd, they go up to $153.

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Suze: Now, KT. Tell everybody what happened this week when you went

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Suze: into Costco.

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KT: I had to go to Costco to renew my membership,

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KT: and Suze's in the car with me. I said, Suze,

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KT: why don't you come in? It's fun to walk around

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KT: and look at things.

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Suze: I don't think so.

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KT: And she said, No, no, no, you go. And she said,

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KT: Bring me something fun. And I said, OK. So I

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KT: did something which I thought she would either get really

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KT: mad or really happy.

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KT: I have to tell you all she was over the

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KT: moon happy.

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Suze: Now can you all imagine what is it that she

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Suze: would have brought me that made me so happy I

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Suze: can't even tell you. Can you think about it? Think

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Suze: for a second. Costco, think about it. Cost $3. Think

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Suze: about it. All right, KT.

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KT: No, $1.50.

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Suze: But you got me two.

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KT: OK. I renewed my card and I bought some fruit,

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KT: and I'm leaving.

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KT: And I have this huge cart that's empty and it

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KT: wasn't busy and I walked by the little food stand.

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KT: I have never in my life ordered anything from that

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KT: food stand. I didn't even know how to do it

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KT: and I said, I'm gonna bring her a hot dog,

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KT: a Costco hot dog and a Diet Coke, so it's

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KT: $1.50 and I, I go up to, I said to

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KT: the ladies, how do I do this? And they said,

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KT: they pointed to the kiosk.

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KT: So I went to this kiosk, I pressed the menu,

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KT: I see the hot dog, I pressed the button and

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KT: two pictures came up. So I said, all right, and

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KT: I press it like finished my order.

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KT: And it was $3 and I said, no, no, no,

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KT: this is $1.50. Long story short, I pressed the wrong button.

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KT: I got two hot dogs, two Diet Cokes, and brought

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KT: them to Suze in the car and she thought she

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KT: died and went to heaven.

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Suze: But what all of you have to understand is this

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Suze: health person here loves hot dogs, and I have not

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Suze: had a hot dog in...

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KT: In 10 years, way over 10 years, maybe 20 years.

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Suze: A long, long time.

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Suze: And I was so happy I couldn't stand it.

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KT: She ate both of 'em.

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Suze: Now here's what else. I normally stay away from gluten,

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Suze: and guess what?

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KT: She ate the bun.

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Suze: I ate the bun and guess what? I always stay away

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Suze: usually from Diet Coke.

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KT: Drank it, the whole thing.

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Suze: I was so happy. Oh my God.

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KT: She was on the biggest she thought it was July 4th,

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KT: but

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Suze: KT, what, what do you think the point of that

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Suze: story is for somebody who's so strict? I am so

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Suze: strict about everything.

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KT: Discipline.

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Suze: I'm so disciplined. I'm don't do this. I don't do

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Suze: that when it comes to eating, but yet...

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KT: Sometimes it's fun to be naughty.

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Suze: So maybe that's true with money as well. Maybe just

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Suze: not all the time, but just once. Now chances of

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Suze: me doing that again for another 10 years, even though

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Suze: today I wish I could do it again, are nil,

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Suze: but it was fun anyway. What you got for me, girlfriend?

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KT: Ok, this first one, this is, it's also the month

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KT: of June, which is Pride Month. So I wanna start

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KT: today with a pride email. I love this.

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KT: This is from Larry and Bob, and the subject says

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KT: we're married, and they said, Dear Suze and KT, I

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KT: wrote you and you personally answered. I loved that. So

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KT: just one week after your 75th birthday on June 12th,

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KT: me and Bob got married. Yes, Suze, after 37 years together.

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KT: Yes, indeed. After drawing up our wills and trusts, it

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KT: all happened. There are benefits to being married, Suze, like

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KT: you've always told us. I cannot tell you how long

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KT: I've been listening to you... since 2003.

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KT: You've helped me build up my savings account. I turned

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KT: 66 at the end of June, and Bob is now 76.

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KT: Much happiness to you and KT, whom you adore, and

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KT: we adore you both. Much love, Larry and Bob.

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Suze: Larry and Bob, we wish you a very...

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KT: Very happy marriage!

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Suze: Happy life together, and I just have to say this

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Suze: is that for those of you out there,

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Suze: who have the ability to get married. This is Pride Month.

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Suze: This is the time that you should be proud, hopefully.

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Suze: I've always been proud that I'm a lesbian. However, many

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Suze: of you out there think, Oh, it's all right. I

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Suze: don't need to get married. It's not a big deal.

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Suze: Don't think rights can't be taken away. They most certainly can.

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Suze: And if you think that there aren't incredible rights to

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Suze: being married, I'm telling you you are wrong. There's like

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Suze: 1,100 financial advantages, yeah, so don't take this for granted, everybody.

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Suze: If you've been together, especially for 20 or 30 years,

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Suze: what are you waiting for? But, I know this whole

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Suze: podcast is gonna be you and me. You know what

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Suze: I realized? He got married on June 12th.

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Suze: Right, I forgot to write Kai, Karen Eckhammer, happy birthday.

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KT: Is that her birthday?

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Suze: It was her birthday, one of my oldest friends...

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KT: Kai, happy birthday.

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Suze: Kai. I am so sorry.

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KT: Forgive her, forgive her, forgive her.

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KT: Sorry. Oh my God. All right, that's what I was

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KT: thinking the whole time you were reading that like. How

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KT: could I forget?

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KT: Oh my goodness.

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Suze: That's what happens when you're 75, Kai. Anyway, KT, let's

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Suze: get to money.

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KT: OK, Suze, this first question is from Elizabeth. She said,

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KT: Dear Suze, I'm 78 years old, retired from my job

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KT: in May 2025, and find myself unexpectedly with money I

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KT: think I should invest.

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KT: There's a TV ad for one of the wealth management

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KT: companies in which the potential client says all my money

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KT: is in checking, which I laughed at when I first

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KT: heard it, and then I realized that describes me. Currently

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KT: I receive about $9,000 a month from my Social Security

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KT: plus a pension. Last December, sadly, one of my two

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KT: daughters passed.

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KT: I received $40,000 from her life insurance. My surviving daughter

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KT: has a disability though, and while she receives SSD, she

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KT: has a part-time job, a car, and a subsidized apartment.

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KT: At some point she won't have me to fall back on.

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KT: I only have $111,000 in savings.

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KT: But no major debt or anything other than a mortgage

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KT: on one of the two properties I own. So right

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KT: now I think I have enough to invest, but no

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KT: idea where to start. My question is, if you were me, Suze,

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KT: what would you do? I know I'm late to the party,

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KT: but I think you've said it's never too late to start,

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KT: and I'm desperate for advice.

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Suze: Oh, girlfriend.

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Suze: First of all, at 78, three years older than me,

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Suze: you bet it's not too late for the party, party, party.

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Suze: So here's what I want to say to you, Liz,

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Suze: which is this you say only $111,000 only $111,000 would

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Suze: not be enough if you didn't have $9,000 a month

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Suze: in a pension. Now, obviously,

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Suze: the pension and Social Security goes away most likely upon

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Suze: your death. So now your concern is, what else do

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Suze: you have for your daughter? Well, you just said you

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Suze: own two pieces of real estate. Now, I don't know

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Suze: what that real estate is worth.

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Suze: However, it is 2026. Don't tell me that it's not

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Suze: worth probably a whole lot of money, and you are

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Suze: thinking about selling one which will then probably give you

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Suze: maybe half a million, three quarters of a million dollars to do something with.

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Suze: While it's true you could invest it, while it's true

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Suze: you could do all these things, we don't know when

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Suze: your time

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Suze: will come and what do I mean by that? When

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Suze: you will no longer be here.

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Suze: At that point you don't want to, in my opinion,

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Suze: pass the burden of investments down to your daughter who

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Suze: may or may not be able to handle them. So therefore,

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Suze: what I would suggest, believe it or not, is to

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Suze: keep everything very, very simple for her.

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Suze: So meaning, put some of the money in treasuries, puts

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Suze: it somewhere like CDs that will earn interest for her,

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Suze: and that it's simple, and it won't go up, it

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Suze: won't go down, she'll be able to at least handle it. Now,

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Suze: I get that you think that the idea is, you know,

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Suze: you got to make it grow and grow and grow.

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Suze: Listen, maybe if you end up selling those two pieces

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Suze: of property, especially after you're gone, maybe now she has

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Suze: one million or something, because remember, she's gonna get a

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Suze: step up in basis on those assets, real estate, when

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Suze: you die, so she's not gonna owe any taxes on that.

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Suze: Make sure you yourself have a living revocable trust, actually

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Suze: the must have documents you should absolutely have those and

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Suze: in your situation right now, let's just keep everything safe

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Suze: and sound for now. Maybe we'll change that later on,

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Suze: but for now...

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Suze: Treasuries, CDs, money market accounts, can you just keep everything safe?

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Suze: All right, next question, KT.

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KT: Next is from Erin. She said, Hi, Suze and KT.

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KT: After watching, reading, and listening to you for many years,

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KT: I was fortunate enough to retire after 38 years. Suze,

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KT: I was able to accumulate $3 million in my IRAs

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KT: and Roths.

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KT: I would like to invest in FITZ and CVX, in

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KT: Chevron right, in my Fidelity account, but not sure if

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KT: it makes sense to pull extra money from my managed

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KT: IRA distribution, get taxed, invest it, and then when I

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KT: sell a stock, pay long term capital gains. Am I

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KT: robbing Peter to pay Paul?

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KT: I'm happy with how my financial advisor is investing my money.

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KT: I just like to invest on my own as a hobby.

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KT: I only withdraw enough money from my IRA for my

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KT: expenses each month, nothing extra. Does it make sense to

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KT: pull a little extra to invest for fun?

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KT: I don't know. What do you think, Suze?

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Suze: Oh boy...

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KT: You had a hot dog. Should she invest for fun?

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Suze: Here's the thing, Erin. You say that you have some

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Suze: money in a Roth IRA.

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Suze: There's no reason why you shouldn't ask your adviser, who you like. I

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Suze: love that you like him or her. They're making good

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Suze: money for you. Fabulous. But why not ask the adviser

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Suze: to set up another Roth IRA for you that has

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Suze: the amount of money that you want in it that

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Suze: you think you would like to invest on your own

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Suze: for fun.

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Suze: That way you don't owe any taxes on it. You

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Suze: can withdraw it when you want, the whole thing that

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Suze: just know that. And then it's not like you're robbing

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Suze: Peter to pay Paul. I would not be taking extra

229
00:13:00,429 --> 00:13:04,228
Suze: money out of the traditional IRAs where you do have

230
00:13:04,229 --> 00:13:07,630
Suze: to pay taxes on it and then invest it outside

231
00:13:07,630 --> 00:13:12,488
Suze: of the retirement account. Invest it in the Roth. Bottom line:

232
00:13:13,299 --> 00:13:17,080
Suze: Have your advisor set up another Roth IRA for you,

233
00:13:17,690 --> 00:13:20,299
Suze: separate from the money that he or she is managing,

234
00:13:20,570 --> 00:13:22,979
Suze: put the amount in it that you want to have

235
00:13:22,979 --> 00:13:27,289
Suze: fun with and invest it however you want. By dollar

236
00:13:27,289 --> 00:13:30,390
Suze: cost averaging though, just know that. All right, KT.

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00:13:30,690 --> 00:13:34,319
KT: OK, this is from Stephanie. She said, hello, Suze. I love...

238
00:13:34,320 --> 00:13:35,090
Suze: How old is this one, KT?

239
00:13:35,250 --> 00:13:36,929
KT: Oh, she's 70 years old.

240
00:13:37,330 --> 00:13:40,039
Suze: The reason I asked, I love that we're dealing with

241
00:13:40,039 --> 00:13:42,530
Suze: older women and men. I just love it so much

242
00:13:42,530 --> 00:13:44,559
Suze: I can't stand it. All right, go on.

243
00:13:45,809 --> 00:13:49,409
KT: She said, Stephanie said, Hi Suze. I live in Washington

244
00:13:49,409 --> 00:13:53,729
KT: state and own a duplex in Michigan. Due to impending

245
00:13:53,729 --> 00:13:58,729
KT: high cost to replacing the HVACs for both units and

246
00:13:58,729 --> 00:14:02,909
KT: the challenge of being so far away, I've decided to sell.

247
00:14:03,289 --> 00:14:06,929
KT: If my current living situation here in Washington should no

248
00:14:06,929 --> 00:14:10,409
KT: longer be available or if my health took a turn

249
00:14:10,409 --> 00:14:13,130
KT: for the worse, I would have no home in which

250
00:14:13,130 --> 00:14:13,689
KT: to live.

251
00:14:14,070 --> 00:14:17,829
KT: Should I return to Michigan because the rents are so

252
00:14:17,830 --> 00:14:20,979
KT: high nowadays I'm not sure I could afford an apartment.

253
00:14:21,190 --> 00:14:25,429
Suze: So what she's saying is she currently rents in Washington,

254
00:14:25,710 --> 00:14:30,070
Suze: and her costs in Michigan have gone up, so she's

255
00:14:30,125 --> 00:14:34,965
Suze: thinking about selling her home in Michigan, staying in Washington

256
00:14:34,965 --> 00:14:38,945
Suze: and renting, but if everything goes higher for her, the rents,

257
00:14:39,284 --> 00:14:42,275
Suze: she doesn't have a home to go back to in Michigan.

258
00:14:42,445 --> 00:14:45,195
KT: Yes, so what should she do?

259
00:14:45,325 --> 00:14:46,125
Suze: I have no idea.

260
00:14:48,239 --> 00:14:51,640
Suze: Well, I'll tell you why, because if she could get

261
00:14:51,640 --> 00:14:55,640
Suze: a whole lot of money for those homes or those...

262
00:14:55,640 --> 00:14:57,880
Suze: duplex in Michigan.

263
00:14:58,650 --> 00:15:03,049
Suze: And it just depends on her tax situation there. Like,

264
00:15:03,260 --> 00:15:05,979
Suze: has she lived in it as her primary residency for

265
00:15:05,979 --> 00:15:08,460
Suze: two out of the past five years? Would she not

266
00:15:08,460 --> 00:15:13,030
Suze: owe any capital gains tax on it? All of that.

267
00:15:13,580 --> 00:15:16,900
Suze: And if she could pocket all of that money, have

268
00:15:16,900 --> 00:15:23,099
Suze: no expenses, and then invest it and get 3, 4, 5%

269
00:15:23,099 --> 00:15:25,159
Suze: on it and possibly have it grow.

270
00:15:26,070 --> 00:15:31,809
Suze: That that would then subsidize possibly her rent in Washington

271
00:15:32,030 --> 00:15:38,150
Suze: and obviously she likes Washington better than Michigan so I

272
00:15:38,150 --> 00:15:41,440
Suze: still don't know what you should do except seriously, Steph,

273
00:15:41,830 --> 00:15:42,830
Suze: here's the thing.

274
00:15:43,669 --> 00:15:45,669
Suze: You only get to eat a hot dog every once

275
00:15:45,669 --> 00:15:50,770
Suze: in a while, and maybe renting in Washington is your

276
00:15:50,770 --> 00:15:55,969
Suze: hot dog that you enjoy every single day. It's your home,

277
00:15:56,510 --> 00:16:00,750
Suze: maybe it's where your friends are, yes, you rent, but listen...

278
00:16:01,539 --> 00:16:06,820
Suze: Why don't you sell Michigan? Take advantage of the taxes

279
00:16:06,820 --> 00:16:09,099
Suze: right now, because I have a feeling you won't owe

280
00:16:09,099 --> 00:16:14,020
Suze: any capital gains. Interest rates are still relatively high. Invest

281
00:16:14,020 --> 00:16:19,359
Suze: that money and just see what happens day to day.

282
00:16:19,859 --> 00:16:22,739
Suze: I always say you never ask a question that you

283
00:16:22,739 --> 00:16:24,950
Suze: don't really know the answer to.

284
00:16:25,340 --> 00:16:28,780
Suze: So if moving back to Michigan now would make you

285
00:16:28,780 --> 00:16:31,820
Suze: feel more secure, then go for it.

286
00:16:32,690 --> 00:16:37,219
Suze: However, you may decide that that's not really what you

287
00:16:37,219 --> 00:16:39,979
Suze: want to do. So again, I don't know what to

288
00:16:39,979 --> 00:16:40,460
Suze: tell you.

289
00:16:40,960 --> 00:16:42,830
Suze: What would you do seriously, KT, if you were her?

290
00:16:43,320 --> 00:16:46,500
KT: Sell in Michigan. It's too cold anyway in the winter.

291
00:16:46,799 --> 00:16:50,520
KT: Stay in Washington. She lives there. There's a reason you're

292
00:16:50,520 --> 00:16:51,659
KT: living there now,

293
00:16:51,679 --> 00:16:52,359
Suze: Washington State.

294
00:16:52,400 --> 00:16:53,659
KT: and don't worry about it.

295
00:16:53,760 --> 00:16:56,440
Suze: Yeah, all right. Well, all right, there you go. I

296
00:16:56,440 --> 00:16:59,039
Suze: would sell in Michigan. I have to tell you, KT, though,

297
00:16:59,200 --> 00:17:02,219
Suze: there's one more thing I wanna say about this, right,

298
00:17:02,270 --> 00:17:06,520
Suze: as Stephanie gets older and she mentions what happens if

299
00:17:06,520 --> 00:17:08,910
Suze: she has a health problem or something like that.

300
00:17:09,260 --> 00:17:13,260
Suze: I don't know if her place in Michigan has stairs

301
00:17:13,260 --> 00:17:16,420
Suze: or whatever, or is she going to need assisted living

302
00:17:16,420 --> 00:17:19,739
Suze: or whatever. So I'm gonna stick to the thing right now.

303
00:17:19,939 --> 00:17:21,020
Suze: Sell now, Steph.

304
00:17:21,640 --> 00:17:25,688
Suze: Invest that money. Keep it safe and sound, and if

305
00:17:25,689 --> 00:17:29,270
Suze: it comes that you can't afford rent or anything anymore,

306
00:17:29,609 --> 00:17:32,839
Suze: then guess what? You could move anywhere, but now you

307
00:17:32,839 --> 00:17:36,489
Suze: have money to move into an assisted living facility or

308
00:17:36,489 --> 00:17:40,129
Suze: somewhere so you can be taken care of. All right, KT.

309
00:17:40,329 --> 00:17:44,089
KT: OK, this next one is from Sandra who also lives

310
00:17:44,089 --> 00:17:45,050
KT: in Michigan.

311
00:17:46,069 --> 00:17:48,750
KT: She said, I'm 80 years old and my husband passed

312
00:17:48,750 --> 00:17:53,829
KT: four months ago. We're sorry, Sandra, she said. My question is,

313
00:17:53,949 --> 00:17:57,599
KT: I had to sell my house and move into assisted living.

314
00:17:57,770 --> 00:17:59,270
Suze: Well, there you go. Did you just hear that, Stephanie?

315
00:17:59,949 --> 00:18:00,949
KT: And she's from Michigan.

316
00:18:01,030 --> 00:18:03,069
Suze: Did you hear that? It happens.

317
00:18:03,189 --> 00:18:08,938
KT: I'll be making a profit of around $300,000. My question is,

318
00:18:09,270 --> 00:18:11,869
KT: how can I put my money in a safe place

319
00:18:11,869 --> 00:18:14,250
KT: that the IRS won't take my money.

320
00:18:14,760 --> 00:18:17,270
KT: We will be using some of the money to pay

321
00:18:17,270 --> 00:18:21,709
KT: for my assisted living. I'm getting nervous. My daughter is

322
00:18:21,709 --> 00:18:25,209
KT: in my trust and is on my bank account. We

323
00:18:25,209 --> 00:18:29,680
KT: have lived in our home for 43 years. So again,

324
00:18:29,800 --> 00:18:33,530
KT: here's a situation, Suze, where Sandra. you know, had to

325
00:18:33,530 --> 00:18:36,560
KT: make a decision, and she did, and she said she's

326
00:18:36,560 --> 00:18:37,719
KT: getting nervous.

327
00:18:38,010 --> 00:18:40,810
Suze: You know, I don't, I'll answer Sandra in a second.

328
00:18:41,040 --> 00:18:43,890
Suze: Another thing, Stephanie, because you're making me think about my

329
00:18:43,890 --> 00:18:48,619
Suze: mama who lived in Chicago, and she needed to, as

330
00:18:48,619 --> 00:18:52,569
Suze: she got older, to move from Chicago because it was

331
00:18:52,569 --> 00:18:53,989
Suze: too cold.

332
00:18:54,650 --> 00:18:57,459
Suze: So think about it. There's a big difference between the

333
00:18:57,459 --> 00:19:02,819
Suze: weather in Washington State and Michigan now on to Sandra. Boy,

334
00:19:03,099 --> 00:19:04,650
Suze: Stephanie got in my head, didn't she?

335
00:19:04,780 --> 00:19:05,140
KT: She did.

336
00:19:05,239 --> 00:19:10,810
Suze: She did. All right, Sandra, my little 80 year old, listen,

337
00:19:11,140 --> 00:19:13,640
Suze: you've moved into an assisted living facility.

338
00:19:14,339 --> 00:19:19,329
Suze: And you have about $300,000 and your question is how

339
00:19:19,329 --> 00:19:22,270
Suze: can I put my money in a safe place that

340
00:19:22,270 --> 00:19:26,869
Suze: the IRS won't take my money? How does the IRS

341
00:19:26,869 --> 00:19:30,609
Suze: take your money? It takes your money in two ways.

342
00:19:31,030 --> 00:19:35,619
Suze: It takes it with a federal tax, and Michigan takes

343
00:19:35,619 --> 00:19:39,829
Suze: it with a state income tax on all levels of

344
00:19:39,829 --> 00:19:43,750
Suze: about 4.25%. I believe that is correct.

345
00:19:44,420 --> 00:19:49,849
Suze: Therefore, the interest on $300,000 let's say you put that

346
00:19:49,849 --> 00:19:55,500
Suze: into United States Treasury bills, notes, maybe a bond, so

347
00:19:55,500 --> 00:19:59,439
Suze: that you have access to that money or a Treasury

348
00:19:59,739 --> 00:20:03,659
Suze: money market account, you won't have to pay any tax

349
00:20:03,660 --> 00:20:06,739
Suze: on that in the state of Michigan.

350
00:20:07,140 --> 00:20:11,099
Suze: So you would only be paying federal income tax. Now,

351
00:20:11,420 --> 00:20:14,420
Suze: I don't know if you have a pension, what your

352
00:20:14,420 --> 00:20:18,819
Suze: Social Security is, or anything like that, but that would

353
00:20:18,819 --> 00:20:23,379
Suze: be the best way to alleviate for a quarter percent that the

354
00:20:23,380 --> 00:20:28,020
Suze: government in Michigan will be taking from you. When you

355
00:20:28,020 --> 00:20:29,359
Suze: say that you're nervous,

356
00:20:30,849 --> 00:20:34,089
Suze: the way that you stop being nervous is to sit

357
00:20:34,089 --> 00:20:39,399
Suze: down seriously and figure out what does it cost you

358
00:20:39,400 --> 00:20:44,040
Suze: to be in the living facility per month, what is

359
00:20:44,040 --> 00:20:47,550
Suze: your income after taxes, all sources of your income.

360
00:20:48,400 --> 00:20:51,439
Suze: What kind of interest rate can you get on that

361
00:20:51,439 --> 00:20:56,400
Suze: 300,000 and do you have enough money to last you

362
00:20:56,400 --> 00:20:59,319
Suze: for x amount of years, even if that means that

363
00:20:59,319 --> 00:21:03,380
Suze: you're going into your principal? So the reason that you're

364
00:21:03,380 --> 00:21:07,179
Suze: nervous is that you don't know the answers to those questions.

365
00:21:07,439 --> 00:21:11,020
Suze: As soon as you know the answers to those questions,

366
00:21:11,719 --> 00:21:14,079
Suze: then you'll be able to make a plan and see

367
00:21:14,079 --> 00:21:16,500
Suze: how long this money will last you.

368
00:21:17,000 --> 00:21:20,319
Suze: And given that you're 80 right now, you never know.

369
00:21:20,520 --> 00:21:25,159
Suze: Most likely it will last you the rest of your life. So,

370
00:21:25,400 --> 00:21:28,698
Suze: you're nervous because you don't know the answers to those questions.

371
00:21:28,880 --> 00:21:33,069
Suze: My advice is find out the answers to those questions,

372
00:21:33,319 --> 00:21:36,438
Suze: have your daughter help you with this, because the two

373
00:21:36,439 --> 00:21:39,079
Suze: of you are a team now, and when a mother

374
00:21:39,079 --> 00:21:43,540
Suze: and a daughter team up, that is a winning team, KT.

375
00:21:44,089 --> 00:21:48,050
KT: I was gonna say that's unstoppable. All right, next question

376
00:21:48,050 --> 00:21:52,089
KT: is from David. I like this question. Hi Suze. I

377
00:21:52,089 --> 00:21:55,889
KT: hear a lot of media chatter about the SpaceX IPO

378
00:21:56,290 --> 00:22:00,569
KT: being overvalued. I saw that it is being fast tracked

379
00:22:00,569 --> 00:22:04,890
KT: to become part of VTI, which I've invested in through

380
00:22:04,890 --> 00:22:06,219
KT: my Roth IRA.

381
00:22:06,699 --> 00:22:13,140
KT: My work 403B and taxable brokerage account includes S&P 500

382
00:22:13,140 --> 00:22:16,420
KT: index funds, and I see that it will be a

383
00:22:16,420 --> 00:22:19,790
KT: while before SpaceX enters those.

384
00:22:20,310 --> 00:22:24,979
KT: I'm not invested in individual stocks in any format. Is

385
00:22:24,979 --> 00:22:29,670
KT: there any way to predict how much of VTI will

386
00:22:29,670 --> 00:22:34,290
KT: become SpaceX based on how the IPO was done?

387
00:22:34,510 --> 00:22:40,040
Suze: Good question, David. First of all, SpaceX will become part

388
00:22:40,040 --> 00:22:45,139
Suze: of VTI, the Vanguard Total Stock Market Index ETF, on

389
00:22:45,140 --> 00:22:53,939
Suze: June 19th, and it'll be approximately 0.12% of VTI, very

390
00:22:53,939 --> 00:22:57,920
Suze: small amount, just so you know. In terms of VOO,

391
00:22:58,170 --> 00:23:02,020
Suze: Standard and Poor's, anything like that, it's not going to

392
00:23:02,020 --> 00:23:04,339
Suze: be till mid '27,

393
00:23:04,859 --> 00:23:09,180
Suze: 2027, until they add it to the Standard and Poor's

394
00:23:09,180 --> 00:23:12,630
Suze: 500 index. They were trying to fast track it and

395
00:23:12,630 --> 00:23:14,729
Suze: it did not do so.

396
00:23:15,390 --> 00:23:19,109
Suze: Another way to possibly do it would be through QQQ.

397
00:23:19,709 --> 00:23:23,745
Suze: They're gonna add SpaceX to that on July 6th. ARK

398
00:23:23,745 --> 00:23:30,219
Suze: already ARKK already bought it. It's at 3.2% of their portfolio,

399
00:23:30,469 --> 00:23:33,030
Suze: but here is the bottom line.

400
00:23:33,729 --> 00:23:37,420
Suze: If you want to buy SpaceX, the best way to

401
00:23:37,420 --> 00:23:42,719
Suze: do it is absolutely how? By dollar cost averaging into

402
00:23:42,719 --> 00:23:49,660
Suze: the individual stock itself. Symbol is SPCX, and it's around

403
00:23:49,660 --> 00:23:52,420
Suze: $200 it goes up, it goes down, it's right in

404
00:23:52,420 --> 00:23:57,300
Suze: there somewhere. However, what you should know is that you

405
00:23:57,300 --> 00:23:59,369
Suze: could dollar cost average every month.

406
00:24:00,839 --> 00:24:06,000
Suze: Take an amount of money $50, $100. Dollar cost average

407
00:24:06,000 --> 00:24:09,150
Suze: into it and let's see what happens. I have no

408
00:24:09,150 --> 00:24:11,660
Suze: doubt that it will go up, it will go down,

409
00:24:11,880 --> 00:24:14,478
Suze: and it's something if you want to invest in you

410
00:24:14,479 --> 00:24:18,540
Suze: absolutely should remember, not profitable yet.

411
00:24:19,329 --> 00:24:25,010
Suze: Probably SpaceX will very shortly acquire everything, Tesla, everything that

412
00:24:25,010 --> 00:24:28,930
Suze: they own. So, eventually, it should be OK. A lot

413
00:24:28,930 --> 00:24:31,430
Suze: of people love it, a lot of people hate it.

414
00:24:31,729 --> 00:24:34,959
Suze: You're gonna have to decide on your own. If you noticed,

415
00:24:35,010 --> 00:24:39,369
Suze: I have refrained from saying anything about it, cause I

416
00:24:39,369 --> 00:24:39,500
Suze: want

417
00:24:39,709 --> 00:24:43,329
Suze: all of you to decide on your own what you

418
00:24:43,550 --> 00:24:45,829
Suze: want to do and what you don't want to do,

419
00:24:46,030 --> 00:24:50,140
Suze: but dollar cost average into it every month on your own.

420
00:24:50,430 --> 00:24:53,349
Suze: Forget about it being part of the Standard and Poor's,

421
00:24:53,420 --> 00:24:56,739
Suze: the VTI, the QQQ's. You get more bang for your

422
00:24:56,739 --> 00:25:01,349
Suze: buck if you just buy the stock itself. KT really

423
00:25:01,349 --> 00:25:02,979
Suze: loves SpaceX, don't you?

424
00:25:03,109 --> 00:25:04,260
KT: I love it.

425
00:25:04,430 --> 00:25:07,569
Suze: That's all you need to know about it. That means somehow...

426
00:25:08,520 --> 00:25:10,170
KT: I love everything with space.

427
00:25:10,270 --> 00:25:12,079
Suze: There you go. All right, next question, KT.

428
00:25:12,810 --> 00:25:16,339
KT: OK, this is from Brian. Now I picked this because

429
00:25:16,349 --> 00:25:19,920
KT: of his subject line was real caught my eye and

430
00:25:19,920 --> 00:25:23,020
KT: I said, Suze, we have got to talk about this.

431
00:25:23,439 --> 00:25:30,024
KT: Brian wrote, My 74-year-old mom lost $15,000 to an FBI

432
00:25:30,025 --> 00:25:36,145
KT: imposter via an online scam, she was a victim, everyone,

433
00:25:36,255 --> 00:25:42,145
KT: and here's why: Fraudsters posed as FBI agents. They contacted

434
00:25:42,145 --> 00:25:46,824
KT: her claiming someone was trying to take her house as

435
00:25:46,824 --> 00:25:48,984
KT: part of a serious investigation.

436
00:25:49,550 --> 00:25:53,599
KT: Over several days they made her afraid and instructed her

437
00:25:54,060 --> 00:25:58,979
KT: to withdraw cash, buy gift cards, and send photos of

438
00:25:58,979 --> 00:26:03,739
KT: the cards to them as documentation. She told me they

439
00:26:03,739 --> 00:26:06,839
KT: were acting as if they were really there to help her.

440
00:26:07,540 --> 00:26:10,979
KT: Because my mom has a great relationship with her local

441
00:26:10,979 --> 00:26:14,619
KT: bank tellers. They warned her to be careful when she

442
00:26:14,619 --> 00:26:17,770
KT: withdrew the money. She still did it.

443
00:26:18,130 --> 00:26:22,119
KT: The bank was able to reverse some debit charges. However,

444
00:26:22,859 --> 00:26:26,699
KT: because she bought most of the cards with cash, most

445
00:26:26,699 --> 00:26:30,060
KT: of the money is gone. When I first spoke to

446
00:26:30,060 --> 00:26:33,540
KT: the bank agent over the phone, the banker said that

447
00:26:33,540 --> 00:26:37,920
KT: this had happened to their own family member. Wow, wow.

448
00:26:38,579 --> 00:26:41,219
KT: So anyway, he goes on to say that they reported

449
00:26:41,219 --> 00:26:43,760
KT: this to police, blah blah blah, and then he said

450
00:26:43,760 --> 00:26:48,479
KT: to protect her moving forward, we also locked down her phone,

451
00:26:48,780 --> 00:26:53,780
KT: but I am incredibly frustrated to still see deceptive scam

452
00:26:53,780 --> 00:26:58,060
KT: ads targeting my mom on YouTube and Instagram.

453
00:26:58,619 --> 00:27:01,899
KT: Most of all, Suze, we want your listeners to know

454
00:27:02,180 --> 00:27:07,020
KT: the government or any legitimate business will never ask you

455
00:27:07,020 --> 00:27:12,419
KT: to buy gift cards. Please warn your listeners about these scams.

456
00:27:12,619 --> 00:27:16,060
Suze: Yeah, well, you know, everybody, first of all, I'm so

457
00:27:16,060 --> 00:27:19,619
Suze: sorry that happened. That is the reason

458
00:27:20,400 --> 00:27:24,979
Suze: we worked for two years on the Ultimate Scam Protection

459
00:27:25,599 --> 00:27:30,050
Suze: brought to you by now Coveron. Nord has changed its

460
00:27:30,050 --> 00:27:31,399
Suze: name to Coveron.

461
00:27:31,979 --> 00:27:34,819
Suze: I don't quite understand that name, but that's what they

462
00:27:34,819 --> 00:27:37,540
Suze: decided to change their name to, maybe because you're covered

463
00:27:37,540 --> 00:27:42,280
Suze: on everything that you do. So, that's what they have done.

464
00:27:42,619 --> 00:27:44,819
Suze: They recently, by the way, KT I don't know if

465
00:27:44,819 --> 00:27:47,920
Suze: you know this, but I just got an email saying

466
00:27:48,060 --> 00:27:50,939
Suze: they're increasing their identity theft

467
00:27:51,150 --> 00:27:59,719
Suze: protection to $2 million versus $1 million. However, the scam

468
00:27:59,719 --> 00:28:03,270
Suze: protection is what I really cared about because if something

469
00:28:03,270 --> 00:28:08,319
Suze: like this happens online or whatever to your mother, to

470
00:28:08,319 --> 00:28:10,199
Suze: your father, to you,

471
00:28:10,979 --> 00:28:17,680
Suze: could get back up to $100,000. It's like a $100,000

472
00:28:18,180 --> 00:28:24,099
Suze: insurance policy against online scams. So why aren't you all

473
00:28:24,099 --> 00:28:27,619
Suze: doing it? Really, it's $95.88

474
00:28:28,900 --> 00:28:29,130
KT: For each year.

475
00:28:29,739 --> 00:28:33,180
Suze: For each year, for each person. You can go to Suszeorman.com,

476
00:28:33,300 --> 00:28:37,459
Suze: look for it there, click and sign up. It is

477
00:28:37,459 --> 00:28:40,500
Suze: so important. You think it can't happen to you?

478
00:28:41,180 --> 00:28:44,099
Suze: It can. And in the same way, I just have

479
00:28:44,099 --> 00:28:47,500
Suze: to say this, you get car insurance. Do you hope

480
00:28:47,500 --> 00:28:50,140
Suze: that you're getting in a car accident? No, but you

481
00:28:50,140 --> 00:28:54,459
Suze: get it in case fire insurance, all of that. You

482
00:28:54,459 --> 00:28:59,579
Suze: want insurance in case something happens, and that's what the

483
00:28:59,640 --> 00:29:05,719
Suze: Ultimate Scam Protection account is all about good everywhere now

484
00:29:05,719 --> 00:29:09,719
Suze: except New York just so you know, eventually it'll be

485
00:29:09,719 --> 00:29:13,000
Suze: good in New York as well. I so hope you

486
00:29:13,000 --> 00:29:13,680
Suze: decide to do it.

487
00:29:13,800 --> 00:29:14,959
Suze: I can't even tell you.

488
00:29:15,119 --> 00:29:15,277
KT: Suze and I did it.

489
00:29:15,277 --> 00:29:16,599
Suze: Of course we did it.

490
00:29:17,079 --> 00:29:20,010
KT: And I'll tell you, when I, after I finished filling

491
00:29:20,010 --> 00:29:22,209
KT: it in, because it takes a little time, you have

492
00:29:22,209 --> 00:29:24,890
KT: to really, it's not easy, it's not easy, but man,

493
00:29:24,930 --> 00:29:26,729
KT: it's worth it. It didn't take that long.

494
00:29:26,890 --> 00:29:28,530
Suze: KT actually found how many things?

495
00:29:29,329 --> 00:29:30,869
KT: Oh, maybe about eight...

496
00:29:31,010 --> 00:29:32,119
Suze: That we had to correct.

497
00:29:33,000 --> 00:29:35,050
KT: Eight things had to be corrected, and some of them

498
00:29:35,050 --> 00:29:38,369
KT: were really old, but it made me feel so good

499
00:29:38,369 --> 00:29:41,849
KT: and so secure when I finished that sign up.

500
00:29:41,969 --> 00:29:44,410
Suze: Yeah, but don't think if all you have is identity

501
00:29:44,410 --> 00:29:47,689
Suze: theft protection that that's gonna take care of you. You

502
00:29:47,689 --> 00:29:51,130
Suze: need more than that, obviously that comes with it. A

503
00:29:51,130 --> 00:29:54,089
Suze: lot of things come with it, but go to suzeorman.com

504
00:29:54,089 --> 00:29:55,209
Suze: and check it out.

505
00:29:55,829 --> 00:29:57,900
Suze: Alright, KT, we have time for one more.

506
00:29:58,390 --> 00:30:01,449
KT: Ok, this is from Meredith. Meredith is 46 years old.

507
00:30:02,109 --> 00:30:05,550
KT: She said, first, Suze, I'm extremely blessed to be in

508
00:30:05,550 --> 00:30:09,670
KT: the situation where I need to ask this question, and

509
00:30:09,670 --> 00:30:13,270
KT: I don't take that for granted. Don't you love that?

510
00:30:13,349 --> 00:30:14,069
KT: I love that.

511
00:30:14,560 --> 00:30:18,060
KT: She said, What is the smarter move? Should I take

512
00:30:18,060 --> 00:30:21,079
KT: the money I have set aside for the year, which

513
00:30:21,079 --> 00:30:27,300
KT: is $35,000 and invest it into a mega backdoor Roth

514
00:30:27,680 --> 00:30:31,880
KT: through my employer as they offer that option up to

515
00:30:31,880 --> 00:30:34,099
KT: $72,000 or

516
00:30:34,500 --> 00:30:38,819
KT: should I use it to pay the taxes and convert

517
00:30:38,819 --> 00:30:44,180
KT: current money from my employer's traditional retirement account to the

518
00:30:44,180 --> 00:30:52,359
KT: Roth retirement, I calculated I could convert approximately $100,000 this year.

519
00:30:52,739 --> 00:30:55,609
KT: Then she said, I plan to switch careers in about

520
00:30:55,609 --> 00:30:59,859
KT: five years, so I might not have access to the

521
00:30:59,859 --> 00:31:02,560
KT: mega backdoor Roth option long term.

522
00:31:03,219 --> 00:31:06,290
KT: It could mean I only have the next five years

523
00:31:06,550 --> 00:31:10,949
KT: to super max out a Roth retirement account. Suze, what

524
00:31:10,949 --> 00:31:12,579
KT: is the smarter move?

525
00:31:12,729 --> 00:31:13,560
Suze: Do you want to answer it?

526
00:31:13,670 --> 00:31:18,869
KT: Yes, Meredith, listen up. This is KT, and this is

527
00:31:18,869 --> 00:31:21,510
KT: about your Roth. Go for it, girlfriend, convert!

528
00:31:21,709 --> 00:31:23,260
Suze: Convert?

529
00:31:23,349 --> 00:31:24,089
KT: Yes.

530
00:31:24,829 --> 00:31:24,989
Suze: (Suze makes the wrong answer sound)

531
00:31:25,150 --> 00:31:25,569
KT: Oh come on!

532
00:31:26,069 --> 00:31:28,780
Suze: KT. I know you tried so hard.

533
00:31:28,989 --> 00:31:31,270
KT: I really thought I had it right.

534
00:31:31,400 --> 00:31:32,199
Suze: Well, you really didn't.

535
00:31:32,550 --> 00:31:33,199
KT: How come I got it wrong?

536
00:31:33,199 --> 00:31:37,479
Suze: I'll tell you, a few months ago I did a podcast, everybody,

537
00:31:37,550 --> 00:31:40,520
Suze: and you should look this up. It was on mega

538
00:31:40,520 --> 00:31:44,229
Suze: backdoor Roths known as 415C plans.

539
00:31:45,849 --> 00:31:50,579
Suze: And not all corporations allow it, but essentially, to put

540
00:31:50,579 --> 00:31:55,489
Suze: it very briefly for you, you can contribute above your

541
00:31:55,489 --> 00:32:00,979
Suze: contribution limit with after-tax contributions, and if they allow you

542
00:32:00,979 --> 00:32:05,459
Suze: to do so, then transfer it to a Roth retirement

543
00:32:05,459 --> 00:32:11,189
Suze: account within your corporation and obviously Meredith's company allows her

544
00:32:11,189 --> 00:32:15,030
Suze: to do so. So Meredith, at the age of 46.

545
00:32:15,489 --> 00:32:18,689
Suze: You have years that you can convert what's in your

546
00:32:18,689 --> 00:32:24,390
Suze: traditional accounts, but you may only have five years left

547
00:32:24,609 --> 00:32:29,930
Suze: since you're thinking of leaving to do the mega backdoor Roth.

548
00:32:30,250 --> 00:32:34,369
Suze: So do the mega backdoor Roth, get it in there.

549
00:32:34,989 --> 00:32:38,380
Suze: And then as you go on, maybe you have more money.

550
00:32:38,510 --> 00:32:43,099
Suze: You could also convert some money obviously to a Roth

551
00:32:43,099 --> 00:32:46,839
Suze: from your traditional accounts as well. But first, make sure

552
00:32:46,839 --> 00:32:52,469
Suze: you max out the mega backdoor Roth every single year.

553
00:32:52,839 --> 00:32:56,449
Suze: That's what I would be telling you. Did that make sense, KT?

554
00:32:57,319 --> 00:32:57,880
KT: Yes...

555
00:32:58,020 --> 00:32:58,458
Suze: It didn't did it?

556
00:32:58,579 --> 00:33:00,800
KT: I still am so sad that I got it wrong.

557
00:33:00,800 --> 00:33:03,780
Suze: One day, I promise you.

558
00:33:05,599 --> 00:33:08,660
Suze: I promise you, sweetheart you will get it right, but

559
00:33:08,660 --> 00:33:11,790
Suze: I gotta tell you, chances are nine out of 10

560
00:33:11,790 --> 00:33:14,099
Suze: people would have gotten that one wrong.

561
00:33:14,260 --> 00:33:16,670
KT: Seriously, seriously, so I'm not that bad.

562
00:33:16,829 --> 00:33:20,930
Suze: You're never that bad. You are fabulous. All right, everybody,

563
00:33:21,979 --> 00:33:24,630
Suze: until Sunday, there's only one thing that we want you

564
00:33:24,630 --> 00:33:26,550
Suze: to remember when it comes to your money, and what

565
00:33:26,550 --> 00:33:26,979
Suze: is it?

566
00:33:27,310 --> 00:33:30,239
KT: People first, then money, then things. Now...

567
00:33:30,589 --> 00:33:33,729
Suze: You stay safe. Bye bye, bye.