1 00:00:00,639 --> 00:00:01,080 Music: Music (In). 2 00:00:29,319 --> 00:00:34,099 Suze: June 4th 2023. Welcome everybody to the Women and Money 3 00:00:34,110 --> 00:00:37,979 Suze: podcast as well as everybody smart enough to listen. 4 00:00:38,759 --> 00:00:43,290 Suze: Well, are you feeling better now that you know that 5 00:00:43,299 --> 00:00:46,668 Suze: the United States government is not going to default on 6 00:00:46,680 --> 00:00:47,769 Suze: its debt? 7 00:00:48,619 --> 00:00:51,790 Suze: Why they have to do this is beyond me, but 8 00:00:51,799 --> 00:00:58,110 Suze: all right. So we're good for another two years at least. Obviously, 9 00:00:58,119 --> 00:01:02,319 Suze: they're gonna have to continue to offer treasuries probably at 10 00:01:02,330 --> 00:01:06,010 Suze: a higher interest rate to pay back the debt that 11 00:01:06,019 --> 00:01:09,050 Suze: they had to get into, to borrow the money to 12 00:01:09,059 --> 00:01:11,879 Suze: get us through to this point. So you might want 13 00:01:11,889 --> 00:01:16,029 Suze: to keep checking the interest rates that are being offered 14 00:01:16,430 --> 00:01:20,599 Suze: on treasuries because maybe they're gonna be a little bit 15 00:01:20,610 --> 00:01:26,800 Suze: higher just so, you know, but we'll see what happens. Ok. 16 00:01:27,830 --> 00:01:34,199 Suze: What isn't so great is that they also voted down 17 00:01:34,970 --> 00:01:39,690 Suze: the student loan forgiveness program where President Biden wanted to 18 00:01:39,699 --> 00:01:44,139 Suze: forgive up to $20,000 in many cases for those of 19 00:01:44,150 --> 00:01:48,540 Suze: you who qualified to forgive your student loan 20 00:01:48,910 --> 00:01:52,720 Suze: That now has been voted down, it will go to 21 00:01:52,730 --> 00:01:57,360 Suze: President Biden's desk. He will obviously veto it. So it 22 00:01:57,370 --> 00:02:00,730 Suze: is now up to the Supreme Court. It's been there anyway. 23 00:02:00,739 --> 00:02:03,419 Suze: So it's not a big deal, I guess, to see 24 00:02:03,430 --> 00:02:08,259 Suze: will they uphold it or will they not? However, I 25 00:02:08,270 --> 00:02:12,149 Suze: do think it's important that all of you really do 26 00:02:12,160 --> 00:02:15,690 Suze: understand that at the end of August of this year, 27 00:02:16,250 --> 00:02:19,800 Suze: for those of you who do have student loans, you 28 00:02:19,809 --> 00:02:23,889 Suze: are going to have to start paying them back. So 29 00:02:23,899 --> 00:02:29,119 Suze: hopefully you will absolutely be prepared for that. 30 00:02:29,758 --> 00:02:35,978 Suze: So the good news is they passed the bill raising 31 00:02:35,990 --> 00:02:41,240 Suze: the debt limit. All right, today Suze School, however, is 32 00:02:41,250 --> 00:02:46,109 Suze: going to be about two things. So get out your 33 00:02:46,119 --> 00:02:47,809 Suze: little notebooks 34 00:02:48,470 --> 00:02:52,889 Suze: because the first part of Suze School is on Series 35 00:02:52,899 --> 00:02:57,948 Suze: I Bonds. And should you or should you not cash 36 00:02:57,960 --> 00:02:59,940 Suze: in your I bonds 37 00:03:00,520 --> 00:03:06,770 Suze: that have a 0% fixed interest rate. Second part to 38 00:03:06,779 --> 00:03:13,839 Suze: the podcast today will be explaining how the CDs at 39 00:03:13,850 --> 00:03:19,589 Suze: Alliant Credit Union actually work. But I want to start 40 00:03:19,600 --> 00:03:23,758 Suze: with I Bonds because, you know, forever and ever and ever, 41 00:03:23,960 --> 00:03:27,910 Suze: I seriously loved I Bonds. 42 00:03:28,210 --> 00:03:33,839 Suze: However many of you now are writing me and asking 43 00:03:33,850 --> 00:03:40,100 Suze: me if you should cash in your I Bonds to 44 00:03:40,110 --> 00:03:47,020 Suze: either repurchase new I Bonds or to cash them in 45 00:03:47,029 --> 00:03:48,179 Suze: and buy 46 00:03:49,289 --> 00:03:54,619 Suze: the 18 month certificate of deposit at Alliant Credit Union. 47 00:03:55,279 --> 00:04:00,800 Suze: Let me just answer that second question right away, which 48 00:04:00,809 --> 00:04:04,910 Suze: is no, you are not to cash in, in I 49 00:04:04,979 --> 00:04:09,380 Suze: Bond to buy at this point in time, a certificate 50 00:04:09,389 --> 00:04:12,410 Suze: of deposit that is not what I want you to 51 00:04:12,419 --> 00:04:16,350 Suze: be doing because we need to see what happens with 52 00:04:16,359 --> 00:04:20,399 Suze: I Bonds. But what all of you need to know 53 00:04:20,649 --> 00:04:25,480 Suze: is that it may make sense for many of you, 54 00:04:25,988 --> 00:04:32,089 Suze: many of you, to cash out your I Bonds 55 00:04:32,970 --> 00:04:39,640 Suze: and purchase another I Bond with it before the end 56 00:04:39,649 --> 00:04:44,750 Suze: of October of this year. And why is that Suze Orman? 57 00:04:45,049 --> 00:04:48,890 Suze: It is because many of you, if you remember there 58 00:04:48,899 --> 00:04:54,510 Suze: are two parts to your Series I Bond. One part 59 00:04:54,519 --> 00:04:57,200 Suze: is the fixed interest rate 60 00:04:57,940 --> 00:05:02,549 Suze: and the fixed interest rate stays with that I Bond 61 00:05:02,809 --> 00:05:08,789 Suze: every single year. It does not fluctuate until the year 62 00:05:08,799 --> 00:05:11,190 Suze: your I Bond matures 63 00:05:12,160 --> 00:05:15,469 Suze: The other part as many of you know, is attached 64 00:05:15,480 --> 00:05:16,850 Suze: to inflation 65 00:05:17,488 --> 00:05:24,649 Suze: and therefore it is variable and it absolutely adjusts every 66 00:05:24,660 --> 00:05:30,459 Suze: six months when a new interest rate is declared in 67 00:05:30,470 --> 00:05:35,459 Suze: May and November of every single year. 68 00:05:36,459 --> 00:05:41,029 Suze: Now when I Bonds were first issued. Ok. And that 69 00:05:41,040 --> 00:05:43,589 Suze: was back in 1998 70 00:05:44,339 --> 00:05:48,279 Suze: you have to know and many of you purchased them 71 00:05:48,290 --> 00:05:49,230 Suze: back then, 72 00:05:49,950 --> 00:05:54,250 Suze: you have to know that the fixed interest rate all 73 00:05:54,260 --> 00:06:02,118 Suze: the way really until like 2001 went from 3.40% in 74 00:06:02,130 --> 00:06:10,399 Suze: 1998 to about 3.6%. Finished 2001, November of 2001. If 75 00:06:10,410 --> 00:06:14,609 Suze: you bought an I Bond, then the declared fixed interest 76 00:06:14,619 --> 00:06:16,868 Suze: rate was 3%. 77 00:06:17,589 --> 00:06:19,200 Suze: Now think about this 78 00:06:20,279 --> 00:06:23,789 Suze: on top of that, you also got the inflation rate, 79 00:06:23,799 --> 00:06:27,260 Suze: but forget the inflation, let's say there was no inflation 80 00:06:27,269 --> 00:06:28,049 Suze: at all. 81 00:06:28,899 --> 00:06:34,290 Suze: That was still a great fixed interest rate, especially if 82 00:06:34,299 --> 00:06:38,609 Suze: you think back the past few years when interest rates 83 00:06:38,619 --> 00:06:42,350 Suze: were really at 0%. But people who bought Series I 84 00:06:42,359 --> 00:06:50,049 Suze: Bonds during those years were making 3.43 point 6% or whatever. 85 00:06:50,320 --> 00:06:54,170 Suze: Now they're making a fabulous interest rate 86 00:06:54,470 --> 00:06:59,369 Suze: for the inflation that is on top of whatever their 87 00:06:59,380 --> 00:07:02,320 Suze: fixed interest rate happens to be. 88 00:07:03,299 --> 00:07:07,269 Suze: So the people who bought it way back when, when 89 00:07:07,279 --> 00:07:14,209 Suze: interest rates for the fixed part were high 3% - 2% 90 00:07:14,519 --> 00:07:20,269 Suze: whatever it may have been, you need to keep those 91 00:07:20,279 --> 00:07:24,450 Suze: I Bonds and you are not to sell them simply 92 00:07:24,459 --> 00:07:28,989 Suze: to do what? Get another I Bond or another investment. No, 93 00:07:29,000 --> 00:07:32,029 Suze: you are not. Do you hear me? 94 00:07:32,709 --> 00:07:38,019 Suze: That would make no sense whatsoever. In fact, in my opinion, 95 00:07:38,410 --> 00:07:43,019 Suze: from 1998 to 2008, approximately 96 00:07:43,709 --> 00:07:48,640 Suze: when the fixed interest rate was at 1.20%. I would 97 00:07:48,649 --> 00:07:52,260 Suze: be keeping those I bonds and I wouldn't even be 98 00:07:52,269 --> 00:07:56,880 Suze: thinking twice if I didn't need the money to, I 99 00:07:56,890 --> 00:08:00,940 Suze: wouldn't even think about cashing them out because remember your 100 00:08:00,950 --> 00:08:05,200 Suze: fixed interest rate is added on top of whatever the 101 00:08:05,209 --> 00:08:08,940 Suze: inflation rate happens to be. However, 102 00:08:09,790 --> 00:08:12,799 Suze: starting in about 2008, 103 00:08:13,480 --> 00:08:19,850 Suze: truthfully maybe all the way until 2018. 104 00:08:20,619 --> 00:08:23,440 Suze: When many of those years, the interest rate for the 105 00:08:23,450 --> 00:08:25,390 Suze: fixed part was at zero. 106 00:08:26,019 --> 00:08:30,709 Suze: There were years when it was at 0.20%, 0.10% whatever 107 00:08:30,720 --> 00:08:31,709 Suze: it may be. 108 00:08:32,669 --> 00:08:36,778 Suze: Those are all years with one exception and I'll get 109 00:08:36,789 --> 00:08:40,638 Suze: to that in a second. Those are all years 110 00:08:41,330 --> 00:08:45,619 Suze: where if you like the concept of an I Bond , 111 00:08:46,229 --> 00:08:51,380 Suze: I do not have a problem with you selling your I Bond. 112 00:08:51,770 --> 00:08:56,030 Suze: Number one, you are out of the five year period 113 00:08:56,039 --> 00:08:57,239 Suze: because remember 114 00:08:58,130 --> 00:09:00,919 Suze: when you buy an I Bond, you cannot sell it the 115 00:09:00,929 --> 00:09:02,020 Suze: first year 116 00:09:02,750 --> 00:09:07,239 Suze: and the next four years, you have a three month 117 00:09:07,250 --> 00:09:11,020 Suze: interest penalty. Well, if you bought your I Bonds in like 118 00:09:11,030 --> 00:09:17,250 Suze: 2018 or before that, you're out in most cases of what? 119 00:09:17,369 --> 00:09:20,679 Suze: Your three month interest penalty. 120 00:09:21,359 --> 00:09:26,020 Suze: So therefore, hey, if you want to cash in one 121 00:09:26,030 --> 00:09:29,690 Suze: of your I Bonds, you're in a low tax bracket, 122 00:09:29,799 --> 00:09:33,070 Suze: it's not going to affect you terribly. You want to 123 00:09:33,080 --> 00:09:34,609 Suze: cash it out 124 00:09:35,250 --> 00:09:40,210 Suze: and take $10,000 and buy a new I Bond and lock 125 00:09:40,219 --> 00:09:43,179 Suze: in the 0.9 oh percent rate. 126 00:09:43,780 --> 00:09:46,669 Suze: I don't have a problem with you doing that on 127 00:09:46,679 --> 00:09:52,309 Suze: any level. There was one year and that was with 128 00:09:52,320 --> 00:09:59,020 Suze: the I Bonds that were issued in November of 2008. 129 00:09:59,270 --> 00:10:05,250 Suze: They were issued with a .70% fixed interest rate. 130 00:10:05,830 --> 00:10:09,090 Suze: I don't know. I think if I had that type 131 00:10:09,099 --> 00:10:15,239 Suze: of a fixed rate in comparison to the 0.90% rate, 132 00:10:15,669 --> 00:10:19,280 Suze: I have to tell you, I most likely would stick 133 00:10:19,330 --> 00:10:23,719 Suze: with that. I Bond. I wouldn't cash it out just 134 00:10:23,729 --> 00:10:28,020 Suze: for a little bit of an increase. This is a 135 00:10:28,030 --> 00:10:30,239 Suze: guideline for you. 136 00:10:30,859 --> 00:10:34,469 Suze: The truth of the matter is you need to look 137 00:10:34,479 --> 00:10:36,799 Suze: at what your fixed rates are 138 00:10:37,429 --> 00:10:41,579 Suze: and I don't think I would truthfully make a change 139 00:10:41,590 --> 00:10:44,210 Suze: and have to pay taxes 140 00:10:44,909 --> 00:10:49,329 Suze: on the interest of the I Bond if my fixed rate 141 00:10:49,900 --> 00:10:57,799 Suze: was above 0.40% right in there. 0.30%, 0.40% if it's above 0.30%, 142 00:10:58,489 --> 00:11:02,559 Suze: I just don't think I would do it, but that's 143 00:11:02,570 --> 00:11:06,799 Suze: up to you where you are. Now, obviously 144 00:11:07,400 --> 00:11:14,059 Suze: starting in May of 2020. What started to happen was 145 00:11:14,070 --> 00:11:21,609 Suze: once again, the fixed interest rate went down to what, 0% again. 146 00:11:22,200 --> 00:11:27,090 Suze: Now, there are some of you that bought I Bonds 147 00:11:27,140 --> 00:11:34,510 Suze: starting in 2019 through like 2022 that you also have 148 00:11:34,520 --> 00:11:40,299 Suze: essentially a very low fixed interest rate or a 0% 149 00:11:40,309 --> 00:11:41,330 Suze: interest rate. 150 00:11:42,140 --> 00:11:47,070 Suze: And maybe you are enticed to cash out your bonds 151 00:11:47,080 --> 00:11:49,959 Suze: in order to do what? After your one year holding 152 00:11:49,969 --> 00:11:54,640 Suze: period is up to reinvest that money by another one 153 00:11:54,669 --> 00:12:03,109 Suze: to lock in the 0.90% interest rate. Ok, then it 154 00:12:03,119 --> 00:12:09,750 Suze: becomes really tricky because you're still within that four year period, 155 00:12:10,109 --> 00:12:13,710 Suze: you're in there somewhere where you will have to pay 156 00:12:13,719 --> 00:12:17,210 Suze: a three month interest penalty. 157 00:12:17,950 --> 00:12:22,520 Suze: And the question becomes, does that make sense for you 158 00:12:22,530 --> 00:12:26,700 Suze: or not? If you remember back to one of the 159 00:12:26,710 --> 00:12:31,640 Suze: very beginning podcasts when I was talking about I Bonds, 160 00:12:31,880 --> 00:12:34,459 Suze: I was telling you that the best way if you're 161 00:12:34,469 --> 00:12:37,819 Suze: gonna cash out after a year is to do so 162 00:12:37,830 --> 00:12:43,059 Suze: at least 15 months after your holding period began. 163 00:12:43,380 --> 00:12:47,539 Suze: So that hopefully the next three months, you held it 164 00:12:47,549 --> 00:12:48,390 Suze: for a year, 165 00:12:49,070 --> 00:12:54,299 Suze: the next three months would be at a lower interest rate. 166 00:12:54,799 --> 00:13:01,219 Suze: If you are now being credited on your I Bind. the 3.38% 167 00:13:01,229 --> 00:13:02,659 Suze: variable rate 168 00:13:03,260 --> 00:13:07,130 Suze: and now you wanna get out, you have to make 169 00:13:07,140 --> 00:13:09,799 Suze: sure that you hold it for the three months at 170 00:13:09,809 --> 00:13:15,729 Suze: that rate. Because why the three month true interest penalty 171 00:13:15,739 --> 00:13:22,349 Suze: at the 3.38% is only going to be 0.85%. 172 00:13:23,049 --> 00:13:27,789 Suze: So if you then took that money reinvested it at 173 00:13:27,799 --> 00:13:34,229 Suze: the fixed interest rate of 0.90%, it would take you 174 00:13:34,239 --> 00:13:37,900 Suze: one year and you would be absolutely even. 175 00:13:38,580 --> 00:13:41,789 Suze: And then what happens your one year period of where 176 00:13:41,799 --> 00:13:44,989 Suze: you cannot touch that money starts all over again 177 00:13:45,739 --> 00:13:49,079 Suze: and then you have another four years where you cannot 178 00:13:49,090 --> 00:13:52,989 Suze: touch that money without the three month interest penalty. I 179 00:13:53,000 --> 00:13:55,968 Suze: don't know if that's worth it to you and you 180 00:13:55,979 --> 00:13:58,190 Suze: want to make sure that you get every single penny 181 00:13:58,200 --> 00:14:00,530 Suze: out of it and you're not really in a high 182 00:14:00,539 --> 00:14:03,940 Suze: income tax bracket at all, or maybe you're not in 183 00:14:03,950 --> 00:14:06,839 Suze: a tax bracket at all. So, there are no tax 184 00:14:06,849 --> 00:14:09,829 Suze: ramifications to you for that. Ok. 185 00:14:10,530 --> 00:14:14,140 Suze: It's a whole lot to do, but it is just 186 00:14:14,150 --> 00:14:16,979 Suze: something I want you to think about. 187 00:14:17,650 --> 00:14:22,179 Suze: I Bonds have a limit of $10,000 per year 188 00:14:23,419 --> 00:14:28,309 Suze: for an individual. But you can buy another 10,000 in 189 00:14:28,320 --> 00:14:33,000 Suze: a trust, another 10,000 in a business. You can also 190 00:14:33,010 --> 00:14:37,320 Suze: gift $10,000 of an I bond to your spouse and 191 00:14:37,330 --> 00:14:38,309 Suze: vice versa. 192 00:14:38,549 --> 00:14:41,890 Suze: So if you have multiple I Bonds that you want 193 00:14:41,900 --> 00:14:44,419 Suze: to do this with, there is a way for you 194 00:14:44,429 --> 00:14:49,130 Suze: to get it in to the 0.90% fixed part of 195 00:14:49,140 --> 00:14:52,650 Suze: this I Bond series because who knows what it is 196 00:14:52,659 --> 00:14:56,000 Suze: going to be come November. 197 00:14:57,070 --> 00:15:00,659 Suze: So did that all confuse you? I hope it did not. 198 00:15:00,669 --> 00:15:04,299 Suze: But all of you should know and you can know 199 00:15:04,309 --> 00:15:08,520 Suze: by just going to Treasury direct dot gov, check your 200 00:15:08,679 --> 00:15:10,000 Suze: I Bonds out 201 00:15:10,719 --> 00:15:15,080 Suze: and look at what the fixed rate is on every 202 00:15:15,090 --> 00:15:19,900 Suze: I Bond that you have. All right. Next... 203 00:15:20,919 --> 00:15:25,770 Suze: I have been talking to you about certificates of deposit, 204 00:15:25,780 --> 00:15:28,729 Suze: especially the ones at Alliant Credit Union 205 00:15:29,380 --> 00:15:33,049 Suze: because it's like, why not when you can, go a 206 00:15:33,059 --> 00:15:36,119 Suze: little bit longer term right now until we see how 207 00:15:36,130 --> 00:15:41,179 Suze: the economy does. What happens with it, what happens with everything? 208 00:15:41,429 --> 00:15:45,750 Suze: Get a nice 5.15% on your money. 209 00:15:46,409 --> 00:15:51,669 Suze: And a little bit ago I was talking to Dennis Devine, 210 00:15:51,679 --> 00:15:57,250 Suze: the CEO of Alliant Credit Union and I knew that 211 00:15:57,260 --> 00:16:02,299 Suze: the three month and the six month certificates of deposits 212 00:16:02,789 --> 00:16:06,969 Suze: worked this way that you could get, let's say the 213 00:16:06,979 --> 00:16:10,859 Suze: current rate is 4.5 oh percent. On the three month. 214 00:16:10,869 --> 00:16:14,960 Suze: You could buy a three month certificate of deposit 215 00:16:15,409 --> 00:16:20,080 Suze: or a four month certificate or a five month certificate 216 00:16:20,090 --> 00:16:27,090 Suze: for 4.50%. You get to choose your maturity date at 217 00:16:27,099 --> 00:16:31,820 Suze: six months, it went to 4.75%. That was the current 218 00:16:31,830 --> 00:16:32,780 Suze: interest rate. 219 00:16:33,549 --> 00:16:38,460 Suze: And then you could have that 4.75% for six months, 220 00:16:38,679 --> 00:16:45,479 Suze: seven months, eight months, nine months, 10 months, 11 months. 221 00:16:45,489 --> 00:16:47,919 Suze: And then it went to the 12 months 222 00:16:48,849 --> 00:16:53,159 Suze: and on and on. And I thought that that was 223 00:16:53,169 --> 00:16:56,440 Suze: just something for the three and six month certificate of 224 00:16:56,450 --> 00:16:57,179 Suze: deposit 225 00:16:58,000 --> 00:17:01,320 Suze: After talking to Dennis Devine and many of you, by 226 00:17:01,330 --> 00:17:05,550 Suze: the way, laddered your certificates of deposits at Alliant Credit 227 00:17:05,560 --> 00:17:09,399 Suze: Union where you bought a three month, a four month, 228 00:17:09,410 --> 00:17:11,349 Suze: a five month, a six month, a seven month, an 229 00:17:11,359 --> 00:17:14,030 Suze: eight month, a nine month, a 10 month, 11 month and 230 00:17:14,040 --> 00:17:17,550 Suze: so on. You did it every month. So you had 231 00:17:17,560 --> 00:17:19,369 Suze: money coming due 232 00:17:20,430 --> 00:17:24,239 Suze: and that was like your emergency fund. Anyway, 233 00:17:25,390 --> 00:17:28,739 Suze: when I was telling all of you about the 18 234 00:17:28,750 --> 00:17:33,089 Suze: month certificate, of deposit, I just thought that was for 235 00:17:33,099 --> 00:17:35,729 Suze: 18 months. That was it. 236 00:17:36,640 --> 00:17:39,270 Suze: That's how it is that most other banks or credit 237 00:17:39,280 --> 00:17:42,060 Suze: unions or whatever. In fact, I don't know of any 238 00:17:42,069 --> 00:17:44,119 Suze: others that do this. Maybe they do. 239 00:17:44,540 --> 00:17:48,310 Suze: But when I was talking to Dennis a while ago 240 00:17:48,380 --> 00:17:50,569 Suze: because I always talk to him and I go, how 241 00:17:50,579 --> 00:17:54,750 Suze: safe is everything, how's everything going? He says Suze... and he explains 242 00:17:54,760 --> 00:17:57,619 Suze: all of that to me, how they're doing what they're 243 00:17:57,630 --> 00:18:00,449 Suze: doing and why we should not be worried on any 244 00:18:00,459 --> 00:18:04,250 Suze: level because it's my job to worry for you. So 245 00:18:04,260 --> 00:18:06,750 Suze: I check it out all the time. I can tell 246 00:18:06,760 --> 00:18:07,410 Suze: you that 247 00:18:08,489 --> 00:18:12,239 Suze: We were talking about the 18 month. And I said, 248 00:18:12,250 --> 00:18:15,949 Suze: don't you have anything that's like 5% for longer. And 249 00:18:15,959 --> 00:18:18,540 Suze: he said, well, yeah, you can get the 18 month, 250 00:18:18,550 --> 00:18:23,400 Suze: the 19 month, the 20 month, the 21st month, the 251 00:18:23,410 --> 00:18:27,530 Suze: 22nd month and the 23rd month. 252 00:18:28,599 --> 00:18:32,399 Suze: And I said, wait a minute, are you telling me 253 00:18:32,489 --> 00:18:35,579 Suze: that if I wanted to go out longer? And I 254 00:18:35,589 --> 00:18:38,880 Suze: want you to listen to me right now. If I 255 00:18:38,890 --> 00:18:44,489 Suze: wanted to go out 23 months, lock in my money 256 00:18:44,500 --> 00:18:51,959 Suze: for almost two years, I could lock in 5.15%. And 257 00:18:51,969 --> 00:18:53,819 Suze: he said yes. 258 00:18:54,239 --> 00:18:58,449 Suze: Then I said, but Dennis, the two year certificate of 259 00:18:58,459 --> 00:18:59,390 Suze: deposit 260 00:18:59,989 --> 00:19:03,718 Suze: is at 4.45%. 261 00:19:04,930 --> 00:19:08,079 Suze: And he was saying, yes, I know because that one 262 00:19:08,089 --> 00:19:12,419 Suze: you can lock in for 24 months, 25 months, 26 263 00:19:12,630 --> 00:19:16,280 Suze: so on. And he said we can't give that high 264 00:19:16,290 --> 00:19:20,879 Suze: of an interest rate for that long, Suze. That's why 265 00:19:21,359 --> 00:19:26,040 Suze: you need to now think about does it make more 266 00:19:26,050 --> 00:19:27,660 Suze: sense for you 267 00:19:28,310 --> 00:19:32,199 Suze: to not do the 18 month certificate of deposit with 268 00:19:32,209 --> 00:19:37,989 Suze: Alliant Credit Union, but do the 23 month certificate of 269 00:19:38,000 --> 00:19:46,260 Suze: deposit with Alliant Credit Union for 5.15%? I want you 270 00:19:46,270 --> 00:19:49,959 Suze: to think about that because even if you look at 271 00:19:49,969 --> 00:19:54,030 Suze: a two year treasury right now, the two year treasury 272 00:19:54,040 --> 00:19:56,520 Suze: is only at like 4.4% 273 00:19:58,150 --> 00:20:03,239 Suze: and so is three quarters of a percent almost worth 274 00:20:03,250 --> 00:20:08,199 Suze: it for you to do that versus a treasury? And 275 00:20:08,209 --> 00:20:13,219 Suze: it may very well be depending on your tax bracket. 276 00:20:14,020 --> 00:20:19,040 Suze: So you won't see it advertised when you look at 277 00:20:19,050 --> 00:20:22,920 Suze: their rates, you'll see three months, six months, 12 months, 278 00:20:22,930 --> 00:20:27,709 Suze: 18 months, two year, three year, four year, five year, 279 00:20:27,719 --> 00:20:29,229 Suze: you'll see all of that. 280 00:20:30,589 --> 00:20:35,699 Suze: You won't see though that you have the ability to 281 00:20:35,709 --> 00:20:38,140 Suze: go month by month 282 00:20:38,819 --> 00:20:41,969 Suze: and choose the month that you want. 283 00:20:43,180 --> 00:20:43,790 Suze: So 284 00:20:44,430 --> 00:20:50,020 Suze: I think that's an incredible thing. So my advice to 285 00:20:50,030 --> 00:20:58,040 Suze: all of you is why not lock in 5.15% which 286 00:20:58,050 --> 00:21:01,780 Suze: happens to be the highest interest rate for an 18 287 00:21:01,790 --> 00:21:02,319 Suze: month 288 00:21:03,050 --> 00:21:06,619 Suze: that you're going to find anywhere or longer by the way, 289 00:21:07,349 --> 00:21:15,020 Suze: why not lock in 5.15% for 23 months? I think 290 00:21:15,030 --> 00:21:21,339 Suze: that's great. No matter what. Besides that, obviously, I just 291 00:21:21,349 --> 00:21:24,569 Suze: want to talk a little bit about the financial markets. 292 00:21:25,569 --> 00:21:29,680 Suze: You have to, again, look at your money 293 00:21:30,280 --> 00:21:34,290 Suze: and you have to look at your money really over 294 00:21:34,300 --> 00:21:35,849 Suze: the long term. 295 00:21:36,609 --> 00:21:42,739 Suze: Everybody right now is talking about INVIDIA stock, Apple, all 296 00:21:42,750 --> 00:21:48,869 Suze: these technology stocks, stocks that had been obliterated just a 297 00:21:48,880 --> 00:21:53,280 Suze: few years ago. And now they are coming back and 298 00:21:53,290 --> 00:21:56,939 Suze: coming back and going up a lot every day. 299 00:21:57,619 --> 00:22:02,649 Suze: But people who owned those stocks when they own them, 300 00:22:02,750 --> 00:22:06,530 Suze: they watched them go all the way up, then all 301 00:22:06,540 --> 00:22:10,560 Suze: the way back down, seriously down and now they're going 302 00:22:10,569 --> 00:22:13,310 Suze: all the way back up again. 303 00:22:14,310 --> 00:22:18,660 Suze: When I say you cannot time the market, you cannot 304 00:22:18,670 --> 00:22:23,569 Suze: time the market, but you need to be in the 305 00:22:23,579 --> 00:22:29,709 Suze: market because otherwise you will miss the market. All right, everybody. 306 00:22:30,209 --> 00:22:33,250 Suze: So I have always said to you, I want you 307 00:22:33,260 --> 00:22:37,899 Suze: to continue to dollar cost average into this market 308 00:22:38,770 --> 00:22:44,660 Suze: mainly into the Vanguard total stock market index ETF for 309 00:22:44,670 --> 00:22:48,739 Suze: all the kinds of diversification that you need because right 310 00:22:48,750 --> 00:22:51,969 Suze: now if you had been dollar cost averaging into that, 311 00:22:52,079 --> 00:22:55,640 Suze: not only would you be diversified, but their top holdings 312 00:22:55,650 --> 00:22:59,660 Suze: happen to be all the stocks that are skyrocketing right now. 313 00:23:00,239 --> 00:23:04,349 Suze: So you get to participate that way. For those of 314 00:23:04,359 --> 00:23:08,489 Suze: you who want to participate in the energy sector, whether 315 00:23:08,500 --> 00:23:12,050 Suze: it was from the XLE ETF or you wanted a 316 00:23:12,060 --> 00:23:18,790 Suze: larger dividend with either pioneer or Devin. And now energy 317 00:23:18,800 --> 00:23:23,329 Suze: is absolutely being obliterated and it could absolutely go down 318 00:23:23,339 --> 00:23:24,290 Suze: even more. 319 00:23:24,989 --> 00:23:27,949 Suze: Right. There are many things that are causing that at 320 00:23:27,959 --> 00:23:29,699 Suze: this moment in time. 321 00:23:30,439 --> 00:23:34,530 Suze: But long term, you have to remember what happened to 322 00:23:34,540 --> 00:23:35,969 Suze: energy before 323 00:23:36,459 --> 00:23:41,030 Suze: Energy, when we first started to buy the energy stocks 324 00:23:41,040 --> 00:23:46,030 Suze: back in 2020 in March, they were all the way down, 325 00:23:46,040 --> 00:23:49,560 Suze: then they went all the way up. Chances are they 326 00:23:49,569 --> 00:23:53,310 Suze: will come all the way back down again. But why 327 00:23:53,319 --> 00:23:58,069 Suze: are we buying them mainly? We're buying them. Remember for 328 00:23:58,079 --> 00:24:01,300 Suze: the dividend and even if they cut the dividend, it's 329 00:24:01,310 --> 00:24:03,369 Suze: still a larger dividend, 330 00:24:03,910 --> 00:24:06,420 Suze: whatever they may cut to. And I'm not saying they're 331 00:24:06,430 --> 00:24:09,270 Suze: going to cut it by any means, then you could 332 00:24:09,280 --> 00:24:13,819 Suze: get anywhere else. So you have to feel good about 333 00:24:13,829 --> 00:24:16,229 Suze: that or as I said to you before, then you 334 00:24:16,239 --> 00:24:17,560 Suze: shouldn't be in them. 335 00:24:18,219 --> 00:24:21,280 Suze: If you can't stand them going up or down, that 336 00:24:21,290 --> 00:24:24,469 Suze: is not the correct investment for you. 337 00:24:25,260 --> 00:24:29,149 Suze: But just to remind you people who held on to 338 00:24:29,160 --> 00:24:32,229 Suze: Apple that went all the way up, then all the 339 00:24:32,239 --> 00:24:34,770 Suze: way back down and now it's coming back up again. 340 00:24:34,800 --> 00:24:38,989 Suze: Same thing with Microsoft, same thing with Meta, whatever it 341 00:24:39,000 --> 00:24:42,829 Suze: may be. Netflix, it's still not anywhere close to where 342 00:24:42,839 --> 00:24:45,989 Suze: it was, but coming back up again, 343 00:24:46,900 --> 00:24:51,989 Suze: you hold on to good quality stocks for the long 344 00:24:52,000 --> 00:24:56,650 Suze: run and you go through their cycles with them and 345 00:24:56,660 --> 00:25:00,410 Suze: it's easier to go through their cycles with them when 346 00:25:00,420 --> 00:25:05,089 Suze: they happen to be paying you a dividend. That's just 347 00:25:05,099 --> 00:25:11,270 Suze: something for you to think about. All right. So I 348 00:25:11,280 --> 00:25:14,569 Suze: hope you have the temperament to be doing that. 349 00:25:14,790 --> 00:25:20,040 Suze: But your personal financial life, everybody is not just about 350 00:25:20,050 --> 00:25:24,319 Suze: the money that you have invested. It's about the other 351 00:25:24,329 --> 00:25:26,680 Suze: things that you are doing with your life. 352 00:25:27,619 --> 00:25:31,280 Suze: Are you taking out home equity lines of credit? Are 353 00:25:31,290 --> 00:25:34,300 Suze: you getting yourself into credit card debt? Do you have 354 00:25:34,310 --> 00:25:36,589 Suze: a will? Do you have a trust? Do you have 355 00:25:36,599 --> 00:25:40,119 Suze: the must have documents? Do you possibly have long term 356 00:25:40,130 --> 00:25:43,209 Suze: care insurance or not? What is the title that you 357 00:25:43,219 --> 00:25:45,910 Suze: own your home in? What are you doing about your 358 00:25:45,920 --> 00:25:49,280 Suze: student loans? What are you doing about what kind of 359 00:25:49,290 --> 00:25:53,880 Suze: retirement account you have, regardless of what you have invested 360 00:25:53,890 --> 00:25:55,489 Suze: in the retirement account? 361 00:25:55,829 --> 00:26:01,319 Suze: It's like, what are you doing with your whole financial life? 362 00:26:01,329 --> 00:26:06,899 Suze: Which is far more than what? Just your 401k portfolios 363 00:26:06,910 --> 00:26:08,739 Suze: or your stock portfolios. 364 00:26:09,280 --> 00:26:13,869 Suze: The biggest mistakes people make is that they ignore everything 365 00:26:13,880 --> 00:26:17,989 Suze: else about their finances and they only concentrate on their 366 00:26:18,000 --> 00:26:21,290 Suze: money that's going up and down. If you do that, 367 00:26:21,300 --> 00:26:24,750 Suze: it will be one of the biggest mistakes you have 368 00:26:24,760 --> 00:26:28,920 Suze: ever made. All right. And maybe next week I'll give 369 00:26:28,930 --> 00:26:31,770 Suze: you an example of that. Anyway, 370 00:26:32,449 --> 00:26:36,459 Suze: those are the things that I wanted you to know about. 371 00:26:36,469 --> 00:26:39,910 Suze: Number one, Series I Bonds. And should you consider cashing 372 00:26:39,920 --> 00:26:44,569 Suze: them out or not, depending on your circumstance. on the 373 00:26:44,579 --> 00:26:47,979 Suze: certificates of deposit at Alliant Credit Union. By the way, 374 00:26:47,989 --> 00:26:51,500 Suze: if you're interested, you would go to my alliant A 375 00:26:51,510 --> 00:26:56,899 Suze: L L I A N T dot com slash ultimate. 376 00:26:57,099 --> 00:27:00,989 Suze: That's where you could find out about certificates of deposits 377 00:27:01,640 --> 00:27:04,889 Suze: and last but not least how I feel about the 378 00:27:04,900 --> 00:27:07,239 Suze: markets and things that are going on. 379 00:27:07,859 --> 00:27:12,869 Suze: So there you go. So until Thursday when Miss Travis 380 00:27:12,880 --> 00:27:16,900 Suze: is back with me for another Ask KT and Suze Anything, 381 00:27:17,109 --> 00:27:19,569 Suze: there's really only one thing that I want you to 382 00:27:19,579 --> 00:27:25,310 Suze: say every single day and that is today. Wherever I go, 383 00:27:25,459 --> 00:27:31,949 Suze: I will create a more loving, peaceful and joyful world. 384 00:27:32,630 --> 00:27:36,339 Suze: I sometimes like to switch them around anyway. And if 385 00:27:36,349 --> 00:27:43,239 Suze: you do that, I promise you you will be unstoppable. 386 00:27:43,250 --> 00:27:44,609 Suze: Bye bye everybody. 387 00:27:50,430 --> 00:27:50,729 Music: Music (Out).