1 00:00:32,040 --> 00:00:38,370 Suze: May 26, 2022. Hi everybody and welcome to 2 00:00:38,370 --> 00:00:40,950 KT: the K. T. And Suze 3 00:00:41,440 --> 00:00:44,650 Suze: Ask anything podcast Alright. 4 00:00:45,040 --> 00:00:47,819 Suze: Two things that I want to say before we begin, 5 00:00:47,830 --> 00:00:50,420 Suze: which is tonight at 10 pm 6 00:00:50,750 --> 00:00:55,370 Suze: Eastern time, I'm on Banfield, which is on the channel, 7 00:00:55,370 --> 00:00:58,740 Suze: Newsnation , the cable channel. So you might want to 8 00:00:58,740 --> 00:01:01,500 Suze: tune in and say yes, 9 00:01:01,500 --> 00:01:02,050 KT: That's Ashleigh Banfield, right? I like her 10 00:01:02,050 --> 00:01:05,560 Suze: I liker her so much. I like her, right. But also I want 11 00:01:05,560 --> 00:01:07,360 Suze: to say one other thing 12 00:01:07,540 --> 00:01:09,550 Suze: Yesterday May 25 13 00:01:10,040 --> 00:01:14,430 Suze: was the birthday of Carla Freed. And I just want 14 00:01:14,430 --> 00:01:18,209 Suze: to talk a little bit about Carla because you don't 15 00:01:18,209 --> 00:01:22,550 Suze: know Carla, but you know her in a very interesting way. 16 00:01:22,650 --> 00:01:23,560 Suze: Carla 17 00:01:23,940 --> 00:01:27,429 Suze: has been with me now, writing with me, co writing 18 00:01:27,430 --> 00:01:31,940 Suze: with me being my really total support for how many 19 00:01:31,940 --> 00:01:33,380 Suze: years now, KT? 20 00:01:33,630 --> 00:01:34,509 KT: I introduced you to Carla 21 00:01:35,440 --> 00:01:36,780 Suze: But how many years ago was that? 22 00:01:36,910 --> 00:01:38,710 KT: At least 18, 23 00:01:38,720 --> 00:01:42,959 Suze: 18, 20 years ago. A long time ago. 24 00:01:43,340 --> 00:01:46,500 Suze: And there has never been... and Carla. If you're listening 25 00:01:46,500 --> 00:01:47,259 Suze: to this, 26 00:01:47,640 --> 00:01:53,110 Suze: I wish you the happiest of happy birthdays, which again 27 00:01:53,110 --> 00:01:57,370 Suze: everybody was yesterday. You have been such a gem in 28 00:01:57,370 --> 00:02:00,910 Suze: my life (KT: and me too.) Yeah. In both of our lives and 29 00:02:00,910 --> 00:02:05,150 Suze: in everybody's lives, who has ever read anything that I've 30 00:02:05,150 --> 00:02:05,960 Suze: produced 31 00:02:06,340 --> 00:02:08,970 Suze: you in many ways, in my opinion, have been my 32 00:02:08,970 --> 00:02:09,810 Suze: backbone 33 00:02:10,540 --> 00:02:14,980 Suze: and just so reliable and so incredible. So all of 34 00:02:14,980 --> 00:02:19,120 Suze: you listening to this right now, wish Carla the happiest 35 00:02:19,120 --> 00:02:23,510 Suze: birthday in your heart. Wish her health and happiness and 36 00:02:23,510 --> 00:02:27,959 Suze: great good fortune because she is just the most magnificent 37 00:02:28,440 --> 00:02:30,980 Suze: a person that I know. What KT? What do you want to say? 38 00:02:33,620 --> 00:02:35,280 KT: she has the biggest smile on her face, Carla, you're 39 00:02:35,280 --> 00:02:39,080 KT: really you've been Suze's anchor for many, many years 40 00:02:39,080 --> 00:02:41,240 KT: and we just appreciate 41 00:02:41,250 --> 00:02:44,060 KT: everything about you. We love that you 42 00:02:44,060 --> 00:02:44,760 KT: have such a 43 00:02:44,840 --> 00:02:45,430 KT: brilliant 44 00:02:45,430 --> 00:02:47,240 KT: command of the english language 45 00:02:47,240 --> 00:02:48,459 KT: and makes Suze sound great all the time. 46 00:02:50,960 --> 00:02:55,290 Suze: (Suze laughs) And we wish you health, we wish Monica health, we 47 00:02:55,290 --> 00:02:59,140 Suze: wish everybody in your family health and most of all 48 00:02:59,139 --> 00:03:04,170 Suze: know we all love you and again wish you a happy, 49 00:03:04,169 --> 00:03:06,040 Suze: happy birthday. All 50 00:03:06,040 --> 00:03:07,980 Suze: right, KT, let's start. 51 00:03:07,990 --> 00:03:10,549 KT: Okay, so this podcast, Suze, I have 52 00:03:10,639 --> 00:03:11,359 KT: very, 53 00:03:11,940 --> 00:03:12,290 KT: very 54 00:03:12,300 --> 00:03:13,660 KT: short but 55 00:03:13,660 --> 00:03:17,480 KT: very important questions and the first one touched my 56 00:03:17,480 --> 00:03:20,489 KT: heart. I think that I want everyone to know if 57 00:03:20,490 --> 00:03:22,120 KT: you don't know what she's talking 58 00:03:22,120 --> 00:03:23,419 KT: about. Just ask her 59 00:03:23,430 --> 00:03:24,390 KT: because half the 60 00:03:24,389 --> 00:03:25,830 KT: time I don't either. 61 00:03:26,350 --> 00:03:27,260 Suze: They all know that. 62 00:03:28,510 --> 00:03:30,389 Suze: That's why they love you so much 63 00:03:30,620 --> 00:03:34,400 KT: Hi Susie, can you explain what a dividend paying stock 64 00:03:34,410 --> 00:03:35,280 KT: is and how 65 00:03:35,280 --> 00:03:37,120 KT: you make money on them? 66 00:03:37,130 --> 00:03:38,080 KT: And it says, 67 00:03:38,090 --> 00:03:39,290 KT: she says this is from 68 00:03:39,290 --> 00:03:40,210 KT: Irene, she says 69 00:03:40,210 --> 00:03:43,720 KT: sorry, I don't know much about stocks, but I'm learning 70 00:03:43,720 --> 00:03:44,040 KT: through you 71 00:03:44,650 --> 00:03:45,260 Suze: First of 72 00:03:45,260 --> 00:03:48,850 Suze: all, Irene, you should never say, you're sorry. 73 00:03:49,140 --> 00:03:52,280 Suze: That's almost as if that is a word that you 74 00:03:52,280 --> 00:03:55,960 Suze: should get out of your vocabulary when you are asking 75 00:03:55,960 --> 00:03:59,700 Suze: something that you don't know why should you know it? 76 00:03:59,710 --> 00:04:01,260 Suze: Whoever teaches it? 77 00:04:01,940 --> 00:04:03,860 Suze: so seriously, it's fine. 78 00:04:04,540 --> 00:04:07,860 Suze: Let's do a little mini school right now on dividend 79 00:04:07,860 --> 00:04:08,950 Suze: paying stocks. 80 00:04:09,440 --> 00:04:11,250 Suze: Some stocks decide 81 00:04:11,250 --> 00:04:12,270 Suze: to put all of their 82 00:04:12,280 --> 00:04:15,560 Suze: earnings back into the company so they can grow 83 00:04:15,940 --> 00:04:19,200 Suze: some stocks, decide you know what? We 84 00:04:19,200 --> 00:04:19,930 Suze: have enough 85 00:04:19,940 --> 00:04:23,690 Suze: earnings to not only continue to grow but to pay 86 00:04:23,690 --> 00:04:28,520 Suze: back some of those earnings to the shareholders, those people 87 00:04:28,520 --> 00:04:30,250 Suze: who own stocks 88 00:04:30,839 --> 00:04:35,660 Suze: that return of money to you is known as a dividend. 89 00:04:36,040 --> 00:04:36,830 Suze: It's the same 90 00:04:36,830 --> 00:04:39,550 Suze: way when you put money in a savings account 91 00:04:40,240 --> 00:04:44,850 Suze: and now you're making interest when you get money from 92 00:04:44,860 --> 00:04:47,670 Suze: a share of stock that you own, it's called a 93 00:04:47,670 --> 00:04:53,260 Suze: dividend dividends are paid every three months. Usually 94 00:04:53,940 --> 00:04:55,950 KT: The next question Suze is from Brenda. 95 00:04:56,339 --> 00:04:57,260 KT: She said Suze 96 00:04:57,260 --> 00:04:58,390 KT: we own a home and a 97 00:04:58,390 --> 00:04:59,980 KT: cabin. We can double 98 00:04:59,980 --> 00:05:00,750 KT: our money with the 99 00:05:00,750 --> 00:05:03,820 KT: prices of the cabin which have gone up so high. 100 00:05:03,890 --> 00:05:07,279 KT: My husband and I have investments in oil and stocks 101 00:05:07,279 --> 00:05:08,810 KT: that pay us dividends. There 102 00:05:08,810 --> 00:05:09,440 KT: you go. 103 00:05:09,450 --> 00:05:15,150 KT: Everybody dividends. The yearly cost of the cabin is about $15,000. 104 00:05:15,339 --> 00:05:16,190 KT: We would love your 105 00:05:16,200 --> 00:05:17,860 KT: input on selling it. 106 00:05:18,140 --> 00:05:20,909 KT: It would give us more money to travel, Save and 107 00:05:20,910 --> 00:05:25,190 KT: enjoy our retirement years. So Suze, what are your thoughts 108 00:05:25,190 --> 00:05:25,700 KT: on that? 109 00:05:25,710 --> 00:05:28,400 Suze: Girlfriend, y ou already know what you want to do with it. (KT: 110 00:05:28,400 --> 00:05:31,880 Suze: Just do it.) You already said. The key to what 111 00:05:31,880 --> 00:05:34,430 Suze: you just said there in your email question 112 00:05:34,430 --> 00:05:36,500 Suze: was it would give us more money to 113 00:05:36,500 --> 00:05:37,250 Suze: travel 114 00:05:37,339 --> 00:05:38,090 Suze: save and 115 00:05:38,089 --> 00:05:39,380 Suze: enjoy our retirement 116 00:05:39,380 --> 00:05:40,460 Suze: years. If 117 00:05:40,470 --> 00:05:41,860 Suze: owning this cabin 118 00:05:42,339 --> 00:05:45,659 Suze: doesn't give you that, you can double your money. 119 00:05:46,040 --> 00:05:47,330 Suze: What the heck go for 120 00:05:47,330 --> 00:05:48,520 KT: it. That's what I say. 121 00:05:48,529 --> 00:05:49,250 Suze: All right, 122 00:05:49,640 --> 00:05:50,919 KT: next question Suze 123 00:05:50,920 --> 00:05:51,970 KT: is from Mary. 124 00:05:51,980 --> 00:05:53,120 KT: Hi Suze, 125 00:05:53,120 --> 00:05:55,130 KT: thank you so much for everything 126 00:05:55,130 --> 00:05:57,020 KT: you do for so many people 127 00:05:57,029 --> 00:05:58,020 KT: over so many 128 00:05:58,020 --> 00:05:58,849 KT: decades. 129 00:05:59,240 --> 00:06:01,510 KT: You're getting old Suze when 130 00:06:01,510 --> 00:06:02,659 KT: they say decades. 131 00:06:03,040 --> 00:06:03,400 KT: Alright? 132 00:06:03,400 --> 00:06:04,860 KT: You are a true treasure. 133 00:06:05,240 --> 00:06:06,960 KT: My question is my 134 00:06:06,960 --> 00:06:07,460 KT: student 135 00:06:07,460 --> 00:06:12,710 KT: Loans Alright. They are in default and in the six figures. 136 00:06:12,720 --> 00:06:13,630 Suze: Oh 137 00:06:13,690 --> 00:06:14,900 KT: I've been afraid 138 00:06:14,900 --> 00:06:16,350 KT: to invest any money 139 00:06:16,350 --> 00:06:20,740 KT: anywhere in fear of it being confiscated toward my student loans. 140 00:06:20,810 --> 00:06:24,050 KT: Is that fear a reality? 141 00:06:24,740 --> 00:06:28,400 KT: Could they touch her Roth IRA, her stocks, her dividends, 142 00:06:28,400 --> 00:06:29,660 KT: her bonds etcetera. 143 00:06:30,140 --> 00:06:31,730 KT: Tell her the truth, Suze. 144 00:06:33,150 --> 00:06:33,859 Suze: Here's the thing, Mary. 145 00:06:34,240 --> 00:06:34,810 Suze: If you 146 00:06:34,810 --> 00:06:36,130 Suze: have money 147 00:06:36,339 --> 00:06:37,450 Suze: to invest 148 00:06:37,839 --> 00:06:40,270 Suze: in other things, why 149 00:06:40,270 --> 00:06:41,660 Suze: are you not getting 150 00:06:41,660 --> 00:06:42,789 Suze: your student loans 151 00:06:42,790 --> 00:06:43,750 Suze: out of default? 152 00:06:44,240 --> 00:06:48,820 Suze: Your student loans will continue to grow and grow and 153 00:06:48,820 --> 00:06:50,219 Suze: grow and follow you 154 00:06:50,230 --> 00:06:53,310 Suze: and follow you seriously to your grave. 155 00:06:53,320 --> 00:06:54,010 Suze: They will 156 00:06:54,010 --> 00:06:57,910 Suze: dock your Social Security checks, you cannot get out of 157 00:06:57,910 --> 00:07:01,010 Suze: it and in most cases you cannot claim 158 00:07:01,020 --> 00:07:02,060 Suze: bankruptcy. 159 00:07:02,339 --> 00:07:04,350 Suze: So it's really important that 160 00:07:04,440 --> 00:07:06,520 Suze: you face these loans 161 00:07:06,529 --> 00:07:07,349 Suze: now 162 00:07:08,010 --> 00:07:08,990 KT: How doe she do that? 163 00:07:09,000 --> 00:07:10,410 Suze: She contacts her lender 164 00:07:10,410 --> 00:07:13,250 Suze: KT. She gets them out of default. 165 00:07:13,260 --> 00:07:14,610 Suze: You would put them on 166 00:07:14,620 --> 00:07:15,830 Suze: an income based 167 00:07:15,830 --> 00:07:16,520 Suze: repayment 168 00:07:16,520 --> 00:07:18,230 Suze: program. That's what I 169 00:07:18,230 --> 00:07:19,210 Suze: would be doing if I 170 00:07:19,210 --> 00:07:20,650 Suze: were you and any 171 00:07:20,650 --> 00:07:22,260 Suze: money that you were looking to put 172 00:07:22,270 --> 00:07:22,890 Suze: towards 173 00:07:23,040 --> 00:07:23,930 Suze: retirement 174 00:07:23,930 --> 00:07:25,520 Suze: towards savings, you 175 00:07:25,530 --> 00:07:27,060 Suze: owe this money, 176 00:07:27,440 --> 00:07:28,450 Suze: you have 177 00:07:28,470 --> 00:07:31,440 Suze: to pay it. I have always said to all of you. 178 00:07:31,540 --> 00:07:35,660 Suze: Student loans are the most dangerous debt of all debt. 179 00:07:35,670 --> 00:07:37,550 Suze: Even more dangerous than I. R. S. Debt 180 00:07:38,040 --> 00:07:40,110 Suze: that you can have. So 181 00:07:40,110 --> 00:07:41,180 Suze: by simply 182 00:07:41,190 --> 00:07:44,850 Suze: letting them stay in default you have this serious monkey 183 00:07:44,850 --> 00:07:48,880 Suze: on your back and it's strangling you. So 184 00:07:48,880 --> 00:07:50,250 Suze: why do you want to do that to 185 00:07:50,250 --> 00:07:53,210 Suze: yourself? So yeah you're taking money and you're investing in 186 00:07:53,210 --> 00:07:54,500 Suze: and you're saving it. But 187 00:07:54,500 --> 00:07:55,650 Suze: you're afraid 188 00:07:56,140 --> 00:07:56,640 Suze: that they're going 189 00:07:56,640 --> 00:07:57,650 Suze: to be able to take that 190 00:07:57,650 --> 00:08:01,150 Suze: money. Fear is the main internal obstacle to wealth. 191 00:08:01,540 --> 00:08:04,690 Suze: How do you face your fear? By taking action? The 192 00:08:04,690 --> 00:08:07,880 Suze: action that I want you to take is contact your lenders, 193 00:08:07,890 --> 00:08:08,300 Suze: get 194 00:08:08,310 --> 00:08:11,610 Suze: these loans out of default. Go on the income based 195 00:08:11,610 --> 00:08:15,130 Suze: repayment method and start dealing with it. Now. 196 00:08:16,040 --> 00:08:17,180 KT: Next question is from 197 00:08:17,180 --> 00:08:19,140 KT: Carol. Suze this is the million 198 00:08:19,140 --> 00:08:20,260 KT: dollar question. 199 00:08:20,840 --> 00:08:21,580 KT: She said what 200 00:08:21,580 --> 00:08:22,990 KT: safe investments 201 00:08:22,990 --> 00:08:24,860 Suze: can I make now for 202 00:08:24,860 --> 00:08:25,850 KT: my Roth and 203 00:08:25,850 --> 00:08:26,430 KT: Ira 204 00:08:26,440 --> 00:08:27,350 KT: accounts 205 00:08:27,740 --> 00:08:28,800 KT: I've switched some of 206 00:08:28,800 --> 00:08:30,120 KT: them into "MM" 207 00:08:30,120 --> 00:08:31,820 KT: which is money market accounts 208 00:08:31,830 --> 00:08:34,960 KT: while investments were going down where 209 00:08:34,960 --> 00:08:37,550 KT: can I go to keep the principal safe 210 00:08:37,640 --> 00:08:38,320 KT: and make a little 211 00:08:38,320 --> 00:08:41,050 KT: interest or dividend oil stocks? 212 00:08:41,059 --> 00:08:44,250 Suze: All right. I want to this is like the million 213 00:08:44,250 --> 00:08:45,340 Suze: dollar question I want 214 00:08:45,340 --> 00:08:48,150 Suze: to address the oil stocks right now are the energy 215 00:08:48,150 --> 00:08:48,860 Suze: stocks 216 00:08:49,140 --> 00:08:52,370 Suze: that I've been recommending for almost two years at this 217 00:08:52,370 --> 00:08:53,359 Suze: point in time. 218 00:08:53,940 --> 00:08:58,070 Suze: You have to remember that while they're still performing very 219 00:08:58,070 --> 00:08:59,960 Suze: well right now 220 00:09:00,440 --> 00:09:04,209 Suze: if Russia all of a sudden stops going to war 221 00:09:04,210 --> 00:09:08,859 Suze: with Ukraine. If things change the oil stocks, 222 00:09:09,340 --> 00:09:13,300 Suze: E. T. F. S will absolutely go down in value. 223 00:09:13,309 --> 00:09:14,100 Suze: So you 224 00:09:14,100 --> 00:09:15,180 Suze: have got to watch 225 00:09:15,179 --> 00:09:19,040 Suze: them very carefully. I do think that there's more of 226 00:09:19,040 --> 00:09:22,100 Suze: a chance that oil in itself will continue to go 227 00:09:22,110 --> 00:09:25,030 Suze: up because we have a shortage of it. We don't 228 00:09:25,040 --> 00:09:28,170 Suze: make enough of it and it's just something that I 229 00:09:28,170 --> 00:09:28,960 Suze: still like, 230 00:09:29,240 --> 00:09:29,660 Suze: but 231 00:09:29,740 --> 00:09:33,230 Suze: it is not like a certificate of deposit, it is 232 00:09:33,230 --> 00:09:36,890 Suze: not like a Series I bonds. It is not like 233 00:09:36,890 --> 00:09:40,430 Suze: a Treasury Bill bond or note, it is not like 234 00:09:40,429 --> 00:09:43,150 Suze: money in the Alliant Credit Union. 235 00:09:43,540 --> 00:09:46,770 Suze: That is all money that is safe and sound. And 236 00:09:46,770 --> 00:09:50,020 Suze: no matter what happens in the United States, no matter 237 00:09:50,020 --> 00:09:50,319 Suze: what 238 00:09:50,320 --> 00:09:51,780 Suze: happens worldwide, 239 00:09:52,020 --> 00:09:52,470 Suze: that 240 00:09:52,480 --> 00:09:53,410 Suze: is money 241 00:09:53,480 --> 00:09:55,660 Suze: that nothing can happen to. 242 00:09:56,240 --> 00:09:57,630 Suze: So there's a big 243 00:09:57,640 --> 00:09:59,350 Suze: difference between that 244 00:09:59,360 --> 00:10:00,689 Suze: and investing 245 00:10:00,700 --> 00:10:02,020 Suze: in energy 246 00:10:02,030 --> 00:10:04,850 Suze: stocks, energy E T. F. S and things 247 00:10:04,850 --> 00:10:05,660 Suze: like that. 248 00:10:06,540 --> 00:10:08,079 Suze: So you have to keep that 249 00:10:08,090 --> 00:10:09,160 Suze: in mind. You 250 00:10:09,160 --> 00:10:10,290 Suze: have to watch 251 00:10:10,300 --> 00:10:11,550 Suze: investments 252 00:10:11,559 --> 00:10:12,660 Suze: closely 253 00:10:13,140 --> 00:10:14,380 Suze: investments that you 254 00:10:14,380 --> 00:10:15,530 Suze: invest in safe 255 00:10:15,530 --> 00:10:16,550 Suze: things. Like I just 256 00:10:16,550 --> 00:10:17,430 Suze: said, you don't 257 00:10:17,429 --> 00:10:20,020 Suze: have to watch because they do what they're supposed 258 00:10:20,020 --> 00:10:22,209 Suze: to do. So if you're really looking 259 00:10:22,210 --> 00:10:24,880 Suze: for safe investments within 260 00:10:24,880 --> 00:10:25,130 Suze: your 261 00:10:25,130 --> 00:10:26,620 Suze: retirement accounts, 262 00:10:26,870 --> 00:10:27,850 Suze: there's nothing wrong 263 00:10:27,850 --> 00:10:30,520 Suze: with getting certificates of deposits. 264 00:10:30,660 --> 00:10:33,020 Suze: There's nothing wrong with asking 265 00:10:33,020 --> 00:10:33,960 Suze: your broker 266 00:10:34,040 --> 00:10:34,900 Suze: do they have 267 00:10:34,900 --> 00:10:36,640 Suze: Treasury Bill bonds or notes? 268 00:10:36,640 --> 00:10:37,850 Suze: Most of them do. 269 00:10:38,240 --> 00:10:39,059 Suze: And you do 270 00:10:39,059 --> 00:10:41,309 Suze: those types of things within 271 00:10:41,320 --> 00:10:42,510 Suze: your retirement 272 00:10:42,520 --> 00:10:43,480 Suze: accounts. If 273 00:10:43,480 --> 00:10:46,729 Suze: You want to be 100% safe and 274 00:10:46,740 --> 00:10:47,360 Suze: sound. All right KT... 275 00:10:48,570 --> 00:10:50,390 KT: So everyone keep listening to 276 00:10:50,390 --> 00:10:53,349 KT: Suze's podcast because you'll give them a little heads up 277 00:10:53,740 --> 00:10:54,589 Suze: as much as I 278 00:10:54,590 --> 00:10:58,180 Suze: can, as much as I can because things can happen overnight. 279 00:10:58,179 --> 00:11:01,059 Suze: Things can turn quickly very quickly. Everyone 280 00:11:02,910 --> 00:11:03,800 KT: Okay. This is from Erin.  Hi Suze 281 00:11:03,800 --> 00:11:04,750 KT: and KT. 282 00:11:05,240 --> 00:11:06,189 KT: When you inherit 283 00:11:06,200 --> 00:11:06,900 KT: a home 284 00:11:06,900 --> 00:11:08,080 KT: and qualify for 285 00:11:08,080 --> 00:11:09,939 KT: a step up in cost basis. 286 00:11:09,950 --> 00:11:10,900 KT: How is 287 00:11:10,900 --> 00:11:13,250 KT: that new cost basis determined? 288 00:11:13,640 --> 00:11:14,939 KT: Is it an immediate 289 00:11:14,950 --> 00:11:18,690 KT: assessment? What if it's been years and you're not sure 290 00:11:18,700 --> 00:11:20,740 KT: what it was valued at the time 291 00:11:20,740 --> 00:11:21,929 KT: of inheritance? 292 00:11:22,400 --> 00:11:23,540 Suze: KT, what's a step up in cost basis? 293 00:11:25,340 --> 00:11:30,460 KT: Is this my quizzie? (Suze: No) 294 00:11:31,040 --> 00:11:32,660 KT: that's when you um 295 00:11:34,140 --> 00:11:35,910 KT: that's when you inherit a 296 00:11:35,910 --> 00:11:36,930 KT: home and it 297 00:11:36,929 --> 00:11:40,760 KT: qualifies for a step up in cost basis (Suze: you have no idea, right?) 298 00:11:42,010 --> 00:11:44,229 KT: I kind of get an idea. Want me to guess? 299 00:11:44,240 --> 00:11:44,850 Suze: Yes. 300 00:11:44,860 --> 00:11:47,559 KT: Alright. I step up in cost basis is 301 00:11:48,040 --> 00:11:49,960 KT: is when you inherit a home 302 00:11:51,240 --> 00:11:54,260 KT: and that and and you get to um 303 00:11:54,740 --> 00:11:55,439 Suze: All right, 304 00:11:55,450 --> 00:11:56,530 Suze: let me just do this 305 00:11:56,530 --> 00:11:57,780 Suze: everybody, KT 306 00:11:58,179 --> 00:12:01,530 Suze: Don't do it, KT. We only have a 30 minute podcast. 307 00:12:03,440 --> 00:12:06,760 Suze: You're lying. (KT: Oh, I know it. But go ahead.) Tell everybody. 308 00:12:07,440 --> 00:12:12,540 KT: (Suze: Don't lie on the podcast. What's the answer?) Okay, so 309 00:12:12,540 --> 00:12:15,170 KT: if his, let's say his mom bought the house for 310 00:12:15,170 --> 00:12:20,349 KT: 200,000 now, it's worth 500,000 on the market, but he 311 00:12:20,350 --> 00:12:24,979 KT: inherits it. His actual payment or the cost basis is 312 00:12:24,980 --> 00:12:25,860 KT: 200 313 00:12:26,540 --> 00:12:28,610 KT: something like that. (Suze indicates this is the wrong answer) That's not it? 314 00:12:29,290 --> 00:12:29,890 Suze: Okay. 315 00:12:29,910 --> 00:12:30,400 Suze: Do you see everybody? 316 00:12:30,960 --> 00:12:31,929 KT: I was close. 317 00:12:31,940 --> 00:12:33,160 Suze: You weren't even... alright. 318 00:12:35,840 --> 00:12:38,559 KT: What's the step up in cost basis? I'm not a realtor. 319 00:12:39,640 --> 00:12:41,199 KT: Go ahead and tell them, 320 00:12:43,840 --> 00:12:44,470 Suze: so 321 00:12:44,480 --> 00:12:45,390 Suze: a step up in 322 00:12:45,390 --> 00:12:48,199 Suze: cost basis is we'll take KT's example 323 00:12:48,200 --> 00:12:48,810 Suze: here. 324 00:12:48,830 --> 00:12:50,310 Suze: Mom owns a home. 325 00:12:50,309 --> 00:12:51,790 Suze: She paid 200,000 326 00:12:51,790 --> 00:12:52,980 Suze: four. It's now 327 00:12:52,980 --> 00:12:55,220 Suze: Worth 500,000. She 328 00:12:55,220 --> 00:12:56,859 Suze: dies. She leaves 329 00:12:56,860 --> 00:12:58,360 Suze: it to her son. 330 00:12:59,440 --> 00:12:59,880 Suze: His 331 00:12:59,880 --> 00:13:00,880 Suze: new step up in 332 00:13:00,880 --> 00:13:01,929 Suze: cost basis 333 00:13:01,940 --> 00:13:05,330 Suze: Is what it's worth the day that she dies. (KT: Which 334 00:13:05,330 --> 00:13:10,750 Suze: is why I know you said 200,000, it's now worth 500,000.) 335 00:13:10,760 --> 00:13:14,050 Suze: If he turns around and he sells it right now, 336 00:13:14,840 --> 00:13:17,790 Suze: he doesn't pay any income tax or capital gains tax 337 00:13:17,790 --> 00:13:19,470 Suze: on it because his basis 338 00:13:19,470 --> 00:13:20,660 Suze: Is 500,000. 339 00:13:20,670 --> 00:13:21,860 Suze: He sells it 340 00:13:21,870 --> 00:13:22,630 Suze: for 500,000. No tax 341 00:13:24,540 --> 00:13:26,630 KT: Okay. Knew it was an advantage. 342 00:13:29,140 --> 00:13:33,700 Suze: All right, but let me answer this question. Again, a step up in basis is valued usually on the 343 00:13:33,700 --> 00:13:35,450 Suze: day of death, 344 00:13:35,460 --> 00:13:36,360 Suze: Sometimes it could be 345 00:13:36,360 --> 00:13:39,760 Suze: six months before death, but usually it's on the day 346 00:13:39,770 --> 00:13:43,020 Suze: of death. What is your stock portfolio valued on the 347 00:13:43,020 --> 00:13:46,970 Suze: day of death that you're inheriting? What is the house 348 00:13:46,970 --> 00:13:49,430 Suze: worth On the day of death? Now if you haven't 349 00:13:49,429 --> 00:13:50,050 Suze: done that 350 00:13:50,530 --> 00:13:54,199 Suze: and it's years have gone by, you're going to have 351 00:13:54,200 --> 00:13:56,459 Suze: to find a way to go back to when 352 00:13:56,940 --> 00:14:00,660 Suze: the person died. That you inherited the house from 353 00:14:01,240 --> 00:14:03,550 Suze: and you're going to have to find an assessment of 354 00:14:03,550 --> 00:14:05,860 Suze: it or ask a realtor to help you. 355 00:14:06,240 --> 00:14:10,599 Suze: But normally it's done right away. So I'm sorry that 356 00:14:10,600 --> 00:14:13,429 Suze: you've let it go so far. But that's what you 357 00:14:13,429 --> 00:14:14,760 Suze: need to do. All right, 358 00:14:15,640 --> 00:14:16,890 KT: okay. Next question is 359 00:14:16,890 --> 00:14:19,570 KT: from Lisette. Suze, What type of 360 00:14:19,570 --> 00:14:20,880 KT: life insurance should 361 00:14:20,880 --> 00:14:22,220 KT: I get for myself? 362 00:14:22,230 --> 00:14:22,820 KT: I'm 54 363 00:14:23,460 --> 00:14:24,280 KT: divorced. 364 00:14:24,330 --> 00:14:26,320 KT: No Children. How much should 365 00:14:26,320 --> 00:14:27,460 KT: I invest? Wait, I'm gonna 366 00:14:27,460 --> 00:14:28,360 KT: answer this for 367 00:14:28,360 --> 00:14:29,070 KT: everybody. 368 00:14:29,930 --> 00:14:32,050 Suze: Hold on, Suze, do you have life insurance 369 00:14:32,050 --> 00:14:33,410 KT: on me? (Suze: No) Do I have 370 00:14:33,410 --> 00:14:35,910 KT: life insurance on you? (Suze: No) Okay, there's your 371 00:14:35,910 --> 00:14:36,850 KT: answer, Lisette 372 00:14:36,940 --> 00:14:39,070 KT: zero life insurance. 373 00:14:39,080 --> 00:14:41,140 KT: You don't need it. You don't 374 00:14:41,140 --> 00:14:42,280 KT: have Children. 375 00:14:42,470 --> 00:14:43,360 KT: Don't get it. 376 00:14:43,740 --> 00:14:48,220 Suze: All right now let me answer this question correctly. Alright... 377 00:14:48,580 --> 00:14:49,400 KT: But that was right to the point. 378 00:14:50,100 --> 00:14:51,960 Suze: No, it wasn't. Lisette. 379 00:14:52,440 --> 00:14:57,750 Suze: Do you have anybody that is financially dependent upon you? 380 00:14:58,340 --> 00:15:02,510 Suze: Is your mother still alive? Your father still alive? A 381 00:15:02,510 --> 00:15:07,550 Suze: friend that you're taking care of? Is anybody financially dependent 382 00:15:07,560 --> 00:15:11,450 Suze: upon you? It doesn't have to be Children. 383 00:15:12,140 --> 00:15:15,040 Suze: It can be anybody. If the answer to that question 384 00:15:15,050 --> 00:15:16,850 Suze: is no, I don't. 385 00:15:16,950 --> 00:15:17,780 Suze: You do not 386 00:15:17,780 --> 00:15:21,500 Suze: need life insurance and you all better get this. Life 387 00:15:21,510 --> 00:15:24,050 Suze: insurance is not an investment. 388 00:15:24,640 --> 00:15:27,360 Suze: So when you say, how much should I invest? 389 00:15:27,840 --> 00:15:31,620 Suze: You can't use the word invest and life insurance in 390 00:15:31,620 --> 00:15:35,479 Suze: the same sentence. You only buy life insurance and the 391 00:15:35,490 --> 00:15:38,410 Suze: only type of life insurance in most cases you should 392 00:15:38,410 --> 00:15:38,670 Suze: ever 393 00:15:38,670 --> 00:15:39,690 Suze: buy is 394 00:15:39,690 --> 00:15:43,460 Suze: term insurance. That's good for a specific period of time. 395 00:15:43,840 --> 00:15:48,300 Suze: Most people are not expected to die with life insurance 396 00:15:48,300 --> 00:15:51,930 Suze: because then it's too expensive. So whole life universal and 397 00:15:51,930 --> 00:15:57,430 Suze: variable life insurance, I do not like in almost 99.9% 398 00:15:57,440 --> 00:15:59,480 Suze: of the cases. So 399 00:15:59,740 --> 00:16:00,330 Suze: if you 400 00:16:00,330 --> 00:16:04,100 Suze: meet what I said, which is nobody is financially dependent on. 401 00:16:04,100 --> 00:16:04,360 Suze: You 402 00:16:04,440 --> 00:16:08,060 Suze: don't you dare buy life insurance. 403 00:16:09,740 --> 00:16:10,360 Suze: Do you understand the 404 00:16:10,360 --> 00:16:12,180 Suze: difference between your answer and mine? 405 00:16:12,940 --> 00:16:13,800 KT: Yea, yours was a little 406 00:16:13,800 --> 00:16:14,359 KT: more 407 00:16:14,940 --> 00:16:15,730 Suze: Boring. 408 00:16:17,890 --> 00:16:18,750 KT: No, yours was, yours was 409 00:16:19,240 --> 00:16:21,270 KT: a little more thorough, mine 410 00:16:22,220 --> 00:16:23,350 KT: Got to the point, 411 00:16:24,340 --> 00:16:25,660 KT: yours was thorough, 412 00:16:26,140 --> 00:16:28,850 KT: but you're right. I don't know if she has people 413 00:16:28,850 --> 00:16:29,370 KT: dependent 414 00:16:29,370 --> 00:16:33,250 KT: upon her. So if she does then take a, 415 00:16:33,640 --> 00:16:36,040 KT: you know, then consider what they need when you're gone. 416 00:16:40,310 --> 00:16:41,050 Suze: Next question, do you understand what today's podcast is going to be like 417 00:16:41,050 --> 00:16:42,600 Suze: all day? Can you believe 418 00:16:42,600 --> 00:16:43,650 Suze: this? Everybody? And 419 00:16:43,660 --> 00:16:46,720 KT: these are great questions and they're really short. This next 420 00:16:46,720 --> 00:16:48,460 KT: question is from Sheldon, 421 00:16:49,240 --> 00:16:53,580 KT: Suze, so glad you're not retired and still helping so many, 422 00:16:53,580 --> 00:16:58,400 KT: including me. I'm 88 years old. I just lost a 423 00:16:58,410 --> 00:17:01,200 KT: big chunk in the stock market. I was going to 424 00:17:01,200 --> 00:17:04,960 KT: say like everyone else did. Sheldon, including me too. 425 00:17:05,240 --> 00:17:08,790 KT: However, I own my home without a mortgage as per 426 00:17:08,790 --> 00:17:09,720 KT: your advice 427 00:17:09,940 --> 00:17:13,359 KT: and the value has significantly appreciated, 428 00:17:14,100 --> 00:17:17,050 KT: Suze. If I have to begin taking money out of 429 00:17:17,060 --> 00:17:17,850 KT: my home, 430 00:17:18,240 --> 00:17:18,780 KT: what are my 431 00:17:18,780 --> 00:17:21,270 KT: options? And what is the best one? 432 00:17:21,940 --> 00:17:23,250 Suze: Ah Sheldon? 433 00:17:23,260 --> 00:17:25,179 Suze: You know, First, I just want to 434 00:17:25,180 --> 00:17:26,300 Suze: say something about 435 00:17:26,300 --> 00:17:28,920 Suze: losing money in the stock market. All 436 00:17:28,920 --> 00:17:29,800 Suze: of us got so 437 00:17:29,800 --> 00:17:32,889 Suze: used to really over the past number of years to 438 00:17:32,890 --> 00:17:35,370 Suze: the market going up, up, up up, even if it 439 00:17:35,369 --> 00:17:39,630 Suze: went down like it did in 2018, it absolutely recovered 440 00:17:39,640 --> 00:17:43,560 Suze: when it went down in 2020. It seriously recovered 441 00:17:43,940 --> 00:17:47,730 Suze: markets go up, markets go down. That has happened for 442 00:17:47,730 --> 00:17:51,820 Suze: years and years and years. So you haven't lost a 443 00:17:51,820 --> 00:17:56,930 Suze: large chunk until you sell, you have to remember that 444 00:17:56,940 --> 00:18:00,359 Suze: and if you're in good quality stocks, E. T. F. S. 445 00:18:00,390 --> 00:18:02,960 Suze: Mutual funds, you're diversified. 446 00:18:03,140 --> 00:18:04,850 Suze: They will eventually come 447 00:18:04,940 --> 00:18:05,360 Suze: back 448 00:18:05,840 --> 00:18:10,520 Suze: now in your situation here though, really Sheldon, I don't 449 00:18:10,520 --> 00:18:12,770 Suze: want you to take money out of your house 450 00:18:13,140 --> 00:18:15,340 Suze: because the two ways to take money out of your 451 00:18:15,340 --> 00:18:19,270 Suze: house is number one with a reverse mortgage, which I 452 00:18:19,270 --> 00:18:22,370 Suze: do not want you to do or a home equity 453 00:18:22,369 --> 00:18:25,060 Suze: line of credit, which you do not want to do 454 00:18:25,070 --> 00:18:29,260 Suze: when interest rates are going up. I would much rather 455 00:18:29,260 --> 00:18:31,669 Suze: see you if you need money 456 00:18:32,040 --> 00:18:33,980 Suze: At the age of 88 457 00:18:34,070 --> 00:18:34,740 Suze: that maybe you 458 00:18:34,740 --> 00:18:38,600 Suze: do liquidate some of your stocks and that you use 459 00:18:38,600 --> 00:18:42,359 Suze: the money from there to actually start living on. 460 00:18:43,140 --> 00:18:43,390 Suze: The 461 00:18:43,400 --> 00:18:44,380 Suze: other thing that you 462 00:18:44,380 --> 00:18:45,960 Suze: might want to consider 463 00:18:46,440 --> 00:18:49,630 Suze: At the age of 88 with the utmost of respect 464 00:18:49,630 --> 00:18:52,889 Suze: to you is now is the time that you might 465 00:18:52,890 --> 00:18:55,170 Suze: want to consider to sell your home, 466 00:18:55,740 --> 00:18:59,520 Suze: you might want to consider selling your home depending on 467 00:18:59,520 --> 00:19:03,450 Suze: your situation because as you get older you may need help. 468 00:19:04,040 --> 00:19:06,660 Suze: You may need people to care for you. 469 00:19:06,700 --> 00:19:07,520 Suze: Is this the 470 00:19:07,520 --> 00:19:10,280 Suze: time when you are now healthy to go into an 471 00:19:10,280 --> 00:19:12,460 Suze: adult living facility. 472 00:19:12,840 --> 00:19:16,810 Suze: They're really pretty fabulous. My mom did it, KT's mom 473 00:19:16,810 --> 00:19:19,389 Suze: did it. So it's something that you might want to 474 00:19:19,390 --> 00:19:23,710 Suze: consider but I would not use your home at this 475 00:19:23,710 --> 00:19:28,030 Suze: point in time as a bank account. If anything, I 476 00:19:28,030 --> 00:19:31,770 Suze: would either liquidate some stocks here, believe it or not 477 00:19:32,040 --> 00:19:33,560 Suze: and use that cash 478 00:19:33,740 --> 00:19:36,410 Suze: because these markets are not going to be going up 479 00:19:36,420 --> 00:19:39,530 Suze: for long periods of time. They may go up in 480 00:19:39,530 --> 00:19:42,500 Suze: bounces like for a week to maybe for a month 481 00:19:42,500 --> 00:19:45,260 Suze: or two, but then they may retrace and go right 482 00:19:45,260 --> 00:19:48,230 Suze: back down again. So I'd rather see you take it 483 00:19:48,230 --> 00:19:51,949 Suze: from your stocks than out of your home. 484 00:19:52,540 --> 00:19:53,659 KT: Okay. Suze next 485 00:19:53,660 --> 00:19:54,540 KT: question is from 486 00:19:54,540 --> 00:19:56,050 Suze: KT. Before you go on. 487 00:19:56,540 --> 00:19:59,140 Suze: I don't have any regrets that my mom went into 488 00:19:59,140 --> 00:20:02,590 Suze: an independent living facility. She loved it. Did your mom 489 00:20:02,590 --> 00:20:02,810 Suze: love 490 00:20:02,810 --> 00:20:04,109 KT: it as well. Oh my 491 00:20:04,109 --> 00:20:05,199 KT: goodness! So 492 00:20:05,200 --> 00:20:06,899 KT: it's okay to sell your house. 493 00:20:06,910 --> 00:20:10,410 KT: Sheldon, you you might be ready for 494 00:20:10,420 --> 00:20:11,960 KT: some company 495 00:20:11,970 --> 00:20:14,350 Suze: anyway, go on. 496 00:20:14,730 --> 00:20:15,710 KT: Suze, the next question 497 00:20:15,710 --> 00:20:16,840 KT: is from Miriam 498 00:20:16,840 --> 00:20:17,669 KT: and the reason 499 00:20:17,670 --> 00:20:18,650 KT: I picked this 500 00:20:18,660 --> 00:20:19,500 KT: is not so 501 00:20:19,500 --> 00:20:21,090 KT: much for your question but her 502 00:20:21,090 --> 00:20:22,490 KT: email is retired 503 00:20:22,490 --> 00:20:23,170 KT: chef. 504 00:20:23,540 --> 00:20:24,619 Suze: So can you 505 00:20:24,630 --> 00:20:26,020 Suze: come cook for us. 506 00:20:26,030 --> 00:20:29,040 KT: So Miriam, I don't know if you're a retired chef 507 00:20:29,050 --> 00:20:29,250 KT: but 508 00:20:29,250 --> 00:20:30,190 KT: if you are, I 509 00:20:30,190 --> 00:20:33,000 KT: love cooking. Alright, ready. I am 510 00:20:33,000 --> 00:20:33,980 KT: retired with 511 00:20:33,980 --> 00:20:35,300 KT: very little savings. 512 00:20:35,300 --> 00:20:36,050 KT: My house is 513 00:20:36,050 --> 00:20:37,260 KT: paid off. I 514 00:20:37,260 --> 00:20:38,300 KT: live on my social 515 00:20:38,300 --> 00:20:40,000 KT: security check but 516 00:20:40,000 --> 00:20:42,730 KT: I have about $5,000. 517 00:20:42,940 --> 00:20:45,500 KT: It's gaining nothing in a savings 518 00:20:45,500 --> 00:20:46,170 KT: account. 519 00:20:46,640 --> 00:20:47,030 KT: I'm 520 00:20:47,030 --> 00:20:48,040 KT: wondering Suze 521 00:20:48,040 --> 00:20:49,199 KT: if I could get better 522 00:20:49,200 --> 00:20:50,030 KT: interest for the 523 00:20:50,030 --> 00:20:51,450 KT: $5000 524 00:20:51,450 --> 00:20:52,740 KT: somewhere else? 525 00:20:53,940 --> 00:20:54,740 Suze: Well, if I were 526 00:20:54,740 --> 00:20:58,370 Suze: You and I had $5,000, I would 527 00:20:58,380 --> 00:20:59,860 KT: absolutely 528 00:21:00,640 --> 00:21:05,090 Suze: go to my Alliant dot com and let me tell 529 00:21:05,090 --> 00:21:05,859 Suze: you why 530 00:21:06,340 --> 00:21:11,880 Suze: Because you very well could put in $3800 in one 531 00:21:11,880 --> 00:21:13,450 Suze: lump sum right now 532 00:21:14,140 --> 00:21:18,270 Suze: And also add then $100 a month 533 00:21:18,640 --> 00:21:23,090 Suze: For the next consecutive 12 months. And at the end 534 00:21:23,100 --> 00:21:28,609 Suze: of those 12 months you would get $100 bonus that 535 00:21:28,609 --> 00:21:31,670 Suze: would give you a higher interest rate than you are 536 00:21:31,670 --> 00:21:37,860 Suze: going to get anywhere. And currently Alliant is paying .60% 537 00:21:38,040 --> 00:21:38,230 Suze: but 538 00:21:38,230 --> 00:21:38,869 Suze: I have no 539 00:21:38,869 --> 00:21:40,090 Suze: doubt that 540 00:21:40,090 --> 00:21:40,910 Suze: shortly they 541 00:21:40,910 --> 00:21:42,959 Suze: will raise interest rates. 542 00:21:42,960 --> 00:21:44,389 Suze: Just stay tuned 543 00:21:44,500 --> 00:21:45,290 Suze: now listen 544 00:21:45,290 --> 00:21:47,460 Suze: to the end of this podcast 545 00:21:47,470 --> 00:21:50,720 Suze: for you to get all the details in terms of 546 00:21:50,720 --> 00:21:55,100 Suze: how it actually works. But it's a fabulous thing to 547 00:21:55,100 --> 00:21:57,440 Suze: do and that's what I would be doing if 548 00:21:57,450 --> 00:21:58,950 Suze: I were you again 549 00:21:59,140 --> 00:21:59,320 KT: go 550 00:21:59,320 --> 00:22:00,270 Suze: to my 551 00:22:00,340 --> 00:22:02,230 Suze: Alliant dot com. 552 00:22:02,240 --> 00:22:04,970 KT: Alright. Yeah, but wait, let's tell them it's the ultimate 553 00:22:04,970 --> 00:22:08,480 KT: opportunity savings account. Just look for Suze and you'll know 554 00:22:08,480 --> 00:22:10,180 KT: you're there, the $100 555 00:22:10,180 --> 00:22:11,130 Suze: bonus and you'll 556 00:22:11,130 --> 00:22:12,189 Suze: learn more about that at 557 00:22:12,190 --> 00:22:13,699 Suze: the end of this podcast 558 00:22:13,710 --> 00:22:15,420 Suze: when it ends there's a whole 559 00:22:15,420 --> 00:22:16,170 Suze: thing about 560 00:22:16,170 --> 00:22:17,810 Suze: it really, 561 00:22:17,820 --> 00:22:20,050 Suze: especially for amounts like 562 00:22:20,140 --> 00:22:20,860 Suze: years. 563 00:22:20,940 --> 00:22:22,080 Suze: Fabulous. 564 00:22:22,130 --> 00:22:22,940 Suze: Fabulous. 565 00:22:22,950 --> 00:22:24,960 Suze: Fabulous. Fabulous. Alright 566 00:22:25,540 --> 00:22:28,410 KT: okay. Next is from Gary. I like I have all 567 00:22:28,410 --> 00:22:32,430 KT: these men lined up. Do any mutual funds have series 568 00:22:32,430 --> 00:22:37,189 KT: I bonds end or Treasury notes and bills? If so, 569 00:22:37,190 --> 00:22:40,449 KT: what are the best funds Suze? If not, how do 570 00:22:40,450 --> 00:22:44,080 KT: you buy these without using a broker? I 571 00:22:44,090 --> 00:22:44,930 KT: thought you would like 572 00:22:44,930 --> 00:22:45,920 KT: that from Gary. 573 00:22:45,920 --> 00:22:47,050 Suze: First of all. 574 00:22:47,140 --> 00:22:50,280 Suze: No there are no mutual funds that you can buy 575 00:22:50,420 --> 00:22:52,860 Suze: that offer a series I bonds. 576 00:22:53,240 --> 00:22:53,830 Suze: There are 577 00:22:53,840 --> 00:22:57,979 Suze: other inflation investments known as tips. But I happen to 578 00:22:57,980 --> 00:22:58,800 Suze: tell you I don't 579 00:22:58,800 --> 00:23:00,610 Suze: like tips that much. So I'm not 580 00:23:00,609 --> 00:23:02,070 Suze: even going to talk about them 581 00:23:02,070 --> 00:23:02,859 Suze: truthfully 582 00:23:03,640 --> 00:23:06,560 Suze: if I were you, I would go to Treasury direct 583 00:23:06,570 --> 00:23:10,550 Suze: dot gov and you can buy your series I bonds 584 00:23:10,550 --> 00:23:11,770 Suze: right there. 585 00:23:11,790 --> 00:23:14,100 Suze: No commission, no broker. And they are fabulous. 586 00:23:16,000 --> 00:23:18,649 KT: So Suze, this is a question from James 587 00:23:19,240 --> 00:23:20,129 KT: Are short term 588 00:23:20,130 --> 00:23:23,220 KT: C. D. S paying around the same as a Treasury 589 00:23:23,220 --> 00:23:26,340 KT: and would one be beneficial over the other? 590 00:23:27,090 --> 00:23:28,160 Suze: No you can do either one. Which 591 00:23:28,160 --> 00:23:29,550 Suze: Either one is easier 592 00:23:29,550 --> 00:23:30,320 Suze: for you. 593 00:23:30,900 --> 00:23:32,880 Suze: CD. S are issued by bank 594 00:23:32,880 --> 00:23:33,550 Suze: certificates of 595 00:23:33,550 --> 00:23:35,600 Suze: deposits protected. F. D. 596 00:23:35,600 --> 00:23:36,780 Suze: I. C. insurance up to 597 00:23:36,960 --> 00:23:38,460 Suze: $250,000. 598 00:23:38,640 --> 00:23:39,080 Suze: I did a 599 00:23:39,080 --> 00:23:41,460 Suze: podcast on it not so long ago. How 600 00:23:41,460 --> 00:23:43,540 Suze: You could get more than 250,000 601 00:23:43,540 --> 00:23:44,560 Suze: dollars of 602 00:23:44,570 --> 00:23:46,090 Suze: F. D. I. C. Insurance. 603 00:23:46,109 --> 00:23:46,889 Suze: If it's with a 604 00:23:46,890 --> 00:23:48,170 Suze: bank or N. C. U. A. 605 00:23:48,170 --> 00:23:52,000 Suze: Insurance if it's with the credit union Treasuries are guaranteed 606 00:23:52,000 --> 00:23:55,070 Suze: by the taxing authority of the United States government. You 607 00:23:55,070 --> 00:23:58,169 Suze: can go either way which either one is simpler for you. 608 00:23:58,840 --> 00:23:59,159 KT: We have 609 00:23:59,160 --> 00:24:00,730 KT: another man lined up here. 610 00:24:00,730 --> 00:24:01,960 KT: This is from Mike. 611 00:24:01,970 --> 00:24:02,690 Suze: Did you choose all men? 612 00:24:03,180 --> 00:24:08,380 KT: No I didn't. I'm actually looking because you may have 613 00:24:08,470 --> 00:24:10,740 KT: I have Chris I have Mike I have quite a few. 614 00:24:11,160 --> 00:24:12,949 Suze: So you don't actually look at the names when you do it. You 615 00:24:13,420 --> 00:24:14,250 Suze: look at the 616 00:24:14,250 --> 00:24:16,670 Suze: subject. They look at the subject. 617 00:24:17,280 --> 00:24:18,159 KT: Okay so 618 00:24:18,170 --> 00:24:19,780 KT: Suze and KT 619 00:24:19,800 --> 00:24:20,399 KT: Suze, 620 00:24:20,400 --> 00:24:21,310 KT: you have said many 621 00:24:21,310 --> 00:24:23,790 KT: times that the money we have in the stock market 622 00:24:23,790 --> 00:24:26,310 KT: should be the money that we do not need for 623 00:24:26,310 --> 00:24:32,380 KT: at least five years. Does this also apply to retirement funds? 624 00:24:32,390 --> 00:24:35,940 KT: I have also heard that if you are in retirement 625 00:24:35,940 --> 00:24:37,960 KT: and living off of your investments, 626 00:24:38,240 --> 00:24:40,760 KT: you need to keep a portion of the funds in 627 00:24:40,760 --> 00:24:46,940 KT: stocks to protect against inflation. Alright so I'm a little confused. 628 00:24:46,940 --> 00:24:49,790 KT: Could you help clarify from me? This is Mike from 629 00:24:49,790 --> 00:24:53,610 KT: California (Suze: was that you saying you were a little confused?) No, Mike said. 630 00:24:53,609 --> 00:24:56,560 KT: I'm always confused but Mike's a little all right 631 00:24:57,040 --> 00:24:58,770 Suze: So mike, here's the thing 632 00:24:59,710 --> 00:25:02,170 Suze: you have money in a retirement account, 633 00:25:02,940 --> 00:25:06,600 Suze: Not all the money in your retirement account you're going 634 00:25:06,600 --> 00:25:08,939 Suze: to be using in the next five 635 00:25:08,950 --> 00:25:13,010 Suze: Years. So let's say you have 300,000 636 00:25:13,010 --> 00:25:14,760 Suze: dollars in a retirement account 637 00:25:15,440 --> 00:25:16,689 Suze: and let's. Say over 638 00:25:16,690 --> 00:25:18,470 Suze: the next five years, 639 00:25:18,480 --> 00:25:19,600 Suze: you really only 640 00:25:19,600 --> 00:25:20,310 Suze: need to take 641 00:25:20,320 --> 00:25:21,520 Suze: out $20,000 642 00:25:22,350 --> 00:25:23,169 Suze: a year 643 00:25:23,940 --> 00:25:25,860 Suze: from your retirement account? 644 00:25:26,440 --> 00:25:31,350 Suze: That $20,000 should probably be in cash. 645 00:25:31,840 --> 00:25:34,440 Suze: If you need it for the next five years then 646 00:25:34,440 --> 00:25:38,960 Suze: it would be $100,000 that you would want within your 647 00:25:38,960 --> 00:25:43,109 Suze: retirement account in cash or in a money-market fund. So 648 00:25:43,109 --> 00:25:44,770 Suze: at least it's earning interest, 649 00:25:45,140 --> 00:25:48,730 Suze: the rest of the money could absolutely be invested in 650 00:25:48,730 --> 00:25:54,440 Suze: stocks for growth. Now you have to remember that stocks 651 00:25:54,440 --> 00:25:57,859 Suze: go up and stocks go down. So if all let's 652 00:25:57,859 --> 00:26:01,580 Suze: say all of your money is invested in stocks that's 653 00:26:01,580 --> 00:26:03,350 Suze: paying you a dividend. 654 00:26:03,440 --> 00:26:06,200 Suze: And the dividend is actually more 655 00:26:06,340 --> 00:26:10,700 Suze: than the income that you need from your retirement account. 656 00:26:10,800 --> 00:26:13,480 Suze: Then I don't have a problem with that money being 657 00:26:13,490 --> 00:26:18,270 Suze: all invested in stocks. But you also have to remember 658 00:26:18,280 --> 00:26:23,050 Suze: that stocks can cut their dividends any time they want 659 00:26:23,740 --> 00:26:26,449 Suze: and you never know what can happen to you where 660 00:26:26,450 --> 00:26:30,230 Suze: you need more than the money that the stocks are 661 00:26:30,230 --> 00:26:31,860 Suze: paying you in dividends. 662 00:26:32,340 --> 00:26:32,959 Suze: So 663 00:26:33,340 --> 00:26:38,050 Suze: I would have a good cash reserve within my retirement 664 00:26:38,050 --> 00:26:38,560 Suze: account 665 00:26:39,140 --> 00:26:42,660 Suze: And beyond that cash reserve, I would have it invested 666 00:26:42,670 --> 00:26:46,930 Suze: in dividend. Pain stocks. All right, KT. Okay, 667 00:26:46,930 --> 00:26:47,930 KT: next question is 668 00:26:47,930 --> 00:26:49,870 KT: from Miriam Hi Suze 669 00:26:49,869 --> 00:26:53,840 KT: and KT, I inherited the property from a relative, it 670 00:26:53,840 --> 00:26:58,060 KT: was left jointly to me and to other family members. 671 00:26:58,140 --> 00:26:59,510 KT: What happens when 672 00:26:59,510 --> 00:27:00,699 KT: one of the other two 673 00:27:00,700 --> 00:27:01,860 KT: family members, 674 00:27:02,140 --> 00:27:02,739 KT: I own 675 00:27:02,740 --> 00:27:03,840 KT: it with passes 676 00:27:03,840 --> 00:27:04,560 KT: away. 677 00:27:04,730 --> 00:27:06,780 KT: Does their share automatically 678 00:27:06,780 --> 00:27:09,350 KT: Get split between the two surviving 679 00:27:09,350 --> 00:27:09,959 KT: owners? 680 00:27:10,340 --> 00:27:13,550 KT: Or do they need to say in their will, 681 00:27:13,940 --> 00:27:14,530 KT: Who their 682 00:27:14,530 --> 00:27:15,910 KT: share will go to 683 00:27:15,960 --> 00:27:16,710 KT: any thing 684 00:27:16,710 --> 00:27:17,670 KT: to be aware of in 685 00:27:17,670 --> 00:27:19,340 KT: terms of taxes or other 686 00:27:19,340 --> 00:27:20,409 KT: steps to protect 687 00:27:20,420 --> 00:27:21,619 KT: any surviving 688 00:27:21,619 --> 00:27:22,429 KT: owners. 689 00:27:22,440 --> 00:27:26,859 Suze: So Miriam, it depends on how you own title 690 00:27:27,340 --> 00:27:30,960 Suze: to the house or the property that you inherited. 691 00:27:31,440 --> 00:27:34,350 Suze: So all three of you inherited the property. 692 00:27:34,840 --> 00:27:39,420 Suze: You either own it in joint tennancy with right of survivorship. 693 00:27:39,430 --> 00:27:41,950 Suze: Which means when one of you dies, 694 00:27:42,340 --> 00:27:47,680 Suze: The surviving members of their joint tenancy inherits that property. 695 00:27:47,680 --> 00:27:51,470 Suze: It goes directly to them or you own it in 696 00:27:51,470 --> 00:27:52,960 Suze: tenants in common. 697 00:27:53,340 --> 00:27:57,210 Suze: Which means it's all in your individual names and when 698 00:27:57,210 --> 00:27:57,960 Suze: one of you 699 00:27:57,960 --> 00:27:59,160 Suze: dies, 700 00:27:59,619 --> 00:28:04,359 Suze: then your survivors get it according to your trust or will. 701 00:28:04,840 --> 00:28:07,359 Suze: And there's nothing anybody can do about that. 702 00:28:07,940 --> 00:28:12,300 Suze: So the real key here is how do you own 703 00:28:12,310 --> 00:28:15,430 Suze: the property? What is the title? How does it read? 704 00:28:15,430 --> 00:28:16,480 Suze: What do you want to say KT? 705 00:28:18,480 --> 00:28:19,140 KT: Which one would you recommend? 706 00:28:19,510 --> 00:28:20,480 Suze: It depends. 707 00:28:20,810 --> 00:28:22,590 KT: what is the easiest way? 708 00:28:22,930 --> 00:28:25,109 Suze: No KT, it's you own 709 00:28:25,109 --> 00:28:26,859 Suze: it. Let's say I leave you 710 00:28:27,040 --> 00:28:29,050 Suze: this condo, even though it's yours, 711 00:28:29,140 --> 00:28:30,480 Suze: alright? But let's just say I 712 00:28:30,480 --> 00:28:35,260 Suze: leave you and your sister Lynn this condo, alright? 713 00:28:35,840 --> 00:28:36,500 Suze: If 714 00:28:36,510 --> 00:28:37,220 Suze: the two of 715 00:28:37,220 --> 00:28:40,150 Suze: you want each other to own it outright, you 716 00:28:40,150 --> 00:28:43,200 Suze: Would own it in joint tenancy with right of survivorship. 717 00:28:43,210 --> 00:28:45,440 Suze: However, if Lynn 718 00:28:45,450 --> 00:28:46,080 Suze: wants 719 00:28:46,080 --> 00:28:50,660 Suze: her Children to inherit her half of the condo. 720 00:28:50,670 --> 00:28:51,430 Suze: She, you 721 00:28:51,430 --> 00:28:52,440 Suze: would own it with her 722 00:28:52,440 --> 00:28:53,270 Suze: in tenants in 723 00:28:53,270 --> 00:28:57,050 Suze: common. And then how your trust reads decides where your 724 00:28:57,050 --> 00:28:57,310 Suze: half 725 00:28:57,320 --> 00:28:58,380 Suze: goes when you 726 00:28:58,380 --> 00:29:03,300 Suze: die. Her trust decides where her half goes when she dies. 727 00:29:03,310 --> 00:29:04,370 Suze: It's just that 728 00:29:04,370 --> 00:29:05,600 Suze: simple KT. 729 00:29:05,600 --> 00:29:07,200 Suze: You have one more and then your quizzie. 730 00:29:10,940 --> 00:29:15,330 KT: This is pretty straightforward. This is from Evelyn. Good day, Suze. I have regular retail store credit cards 731 00:29:15,330 --> 00:29:19,750 KT: and there's no activity on them. If I decide to 732 00:29:19,750 --> 00:29:23,560 KT: close my cards, will this affect my credit score? 733 00:29:25,350 --> 00:29:25,700 Suze: No close them. Close them 734 00:29:26,990 --> 00:29:27,710 Suze: sometimes. 735 00:29:27,710 --> 00:29:28,760 Suze: Did you know 736 00:29:28,940 --> 00:29:31,850 Suze: that when you charge a lot on retail 737 00:29:31,940 --> 00:29:36,390 Suze: credit cards and you carry a balance on them. It 738 00:29:36,390 --> 00:29:40,720 Suze: actually hurts your Fico score more than a regular credit card. 739 00:29:40,730 --> 00:29:45,630 Suze: And why is that? It's because the interest rates normally 740 00:29:45,640 --> 00:29:47,810 Suze: on retail credit cards are 741 00:29:47,810 --> 00:29:49,360 Suze: so much higher 742 00:29:49,460 --> 00:29:50,960 Suze: than what you could get on a 743 00:29:50,970 --> 00:29:52,460 Suze: regular credit card. 744 00:29:52,740 --> 00:29:55,170 Suze: Sometimes it's like well why are they doing that? Why 745 00:29:55,170 --> 00:29:55,340 Suze: don't 746 00:29:55,340 --> 00:29:57,240 Suze: they have a regular credit card? So can 747 00:29:57,240 --> 00:30:00,360 Suze: you just get rid of your retail credit cards. 748 00:30:00,740 --> 00:30:05,570 Suze: Alright, are you ready? Miss Travis? Quizzie time is not 749 00:30:05,570 --> 00:30:08,990 Suze: only for KT. It is for all of you. And 750 00:30:08,990 --> 00:30:11,900 Suze: by the way, if you want to ask a question 751 00:30:11,900 --> 00:30:15,990 Suze: that hopefully KT will choose an answer on the podcast. 752 00:30:16,000 --> 00:30:19,220 Suze: Just write your question to ask Suze podcast at gmail 753 00:30:19,220 --> 00:30:22,790 Suze: dot com. Also, you can always go on to the 754 00:30:22,790 --> 00:30:26,070 Suze: women and money app. You can download it on apple 755 00:30:26,080 --> 00:30:30,000 Suze: apps or google play and ask your question there. Also, 756 00:30:30,000 --> 00:30:32,040 Suze: KT yesterday I 757 00:30:32,040 --> 00:30:34,300 Suze: posted pictures of 758 00:30:34,300 --> 00:30:38,110 Suze: you and me in your new garden planting. 759 00:30:39,600 --> 00:30:41,060 KT: Everyone. This this whole weekend coming up, Memorial 760 00:30:41,060 --> 00:30:42,170 KT: Day weekend. 761 00:30:42,340 --> 00:30:44,770 KT: I will be planting, planting, planting. 762 00:30:44,940 --> 00:30:46,720 Suze: And also we'll continue to 763 00:30:46,720 --> 00:30:48,360 Suze: send pictures. All right, 764 00:30:48,740 --> 00:30:50,820 Suze: the quizzie again is for everybody. 765 00:30:50,820 --> 00:30:51,680 Suze: So KT just 766 00:30:51,680 --> 00:30:56,400 Suze: take a second before you answer so everybody can think 767 00:30:56,400 --> 00:30:56,960 Suze: about it 768 00:30:57,340 --> 00:30:58,030 Suze: because you're just so 769 00:30:58,030 --> 00:30:59,350 Suze: quick on the draw. 770 00:30:59,840 --> 00:31:02,490 Suze: She's trying to look at what the question is. She's 771 00:31:02,500 --> 00:31:05,840 Suze: looking over at the paper in front of me. Alright, 772 00:31:05,850 --> 00:31:10,210 Suze: I converted... this is from Lynn. N ot your sister. 773 00:31:10,220 --> 00:31:10,730 KT: Right. 774 00:31:11,060 --> 00:31:16,460 Suze: I converted 25,000 to a Roth Ira in December 2021. 775 00:31:16,940 --> 00:31:21,930 Suze: Now that Roth IRA is down to 21,000. Should I 776 00:31:21,930 --> 00:31:24,460 Suze: withdraw $10,000 from it 777 00:31:24,840 --> 00:31:28,170 Suze: to put in a series I bonds. (KT: Why not?) 778 00:31:29,440 --> 00:31:29,710 Suze: Did 779 00:31:29,710 --> 00:31:31,000 Suze: I not tell you to wait 780 00:31:31,010 --> 00:31:32,820 Suze: with your answer? Did you not 781 00:31:32,820 --> 00:31:33,690 Suze: hear me say 782 00:31:33,700 --> 00:31:34,300 Suze: wait. 783 00:31:37,250 --> 00:31:39,140 KT: Everyone knows the answer. It's a good idea. 784 00:31:39,150 --> 00:31:39,960 KT: Why not? 785 00:31:40,840 --> 00:31:42,460 KT: It's a good idea. Suze 786 00:31:44,240 --> 00:31:45,420 KT: you love series 787 00:31:45,420 --> 00:31:46,270 KT: I bonds 788 00:31:47,340 --> 00:31:49,250 Suze: No, come on. Really? Is that your answer? 789 00:31:49,260 --> 00:31:50,950 KT: It's a good idea. 790 00:31:55,940 --> 00:31:56,170 Suze: (Gives the game show "wrong answer" sound) 791 00:31:57,040 --> 00:31:57,390 KT: Why 792 00:31:57,390 --> 00:31:59,140 KT: is that? What's wrong with that 793 00:31:59,170 --> 00:32:03,460 Suze: First of all, Lynn, you did not tell us your age. 794 00:32:03,940 --> 00:32:05,670 Suze: So if you withdraw money 795 00:32:06,040 --> 00:32:10,860 Suze: from your Roth ira that you converted a year ago. 796 00:32:11,240 --> 00:32:15,120 Suze: You very well May Owe a 10% penalty. You never 797 00:32:15,120 --> 00:32:16,540 Suze: know what can happen there. 798 00:32:17,580 --> 00:32:18,350 KT: What, what month was it in 799 00:32:18,350 --> 00:32:19,060 KT: 2021? 800 00:32:19,940 --> 00:32:20,860 Suze: December? 801 00:32:21,540 --> 00:32:22,860 KT: Yeah, you're right. 802 00:32:23,240 --> 00:32:23,870 Suze: Alright. 803 00:32:23,880 --> 00:32:27,750 Suze: So no. And here's the other thing. You do not 804 00:32:27,750 --> 00:32:28,050 Suze: take 805 00:32:28,050 --> 00:32:32,180 Suze: money Miss Travis out of the stock market. 806 00:32:32,190 --> 00:32:33,110 Suze: If the 807 00:32:33,110 --> 00:32:36,250 Suze: market is down, if it's in a good quality 808 00:32:36,260 --> 00:32:39,460 Suze: stock, E T. F. Or mutual funds 809 00:32:39,940 --> 00:32:45,340 Suze: to put anywhere else. So no, she should absolutely not 810 00:32:45,340 --> 00:32:47,880 Suze: do that. Lynn. Do not do it. Do not do it. 811 00:32:47,880 --> 00:32:53,240 Suze: Don't do it. Oh God. All 812 00:32:53,240 --> 00:32:53,890 Suze: of you should go 813 00:32:53,890 --> 00:32:55,490 Suze: back by the way and 814 00:32:55,490 --> 00:32:57,510 Suze: listen to the podcast on 815 00:32:57,510 --> 00:32:58,370 Suze: the five year 816 00:32:58,370 --> 00:32:59,140 Suze: rule to 817 00:32:59,140 --> 00:33:00,360 Suze: understand 818 00:33:00,440 --> 00:33:02,560 Suze: that when you convert money 819 00:33:03,340 --> 00:33:04,920 Suze: from a traditional 820 00:33:04,920 --> 00:33:06,110 Suze: Ira to a 821 00:33:06,110 --> 00:33:07,240 Suze: Roth IRA, 822 00:33:07,250 --> 00:33:08,530 Suze: Your time clock 823 00:33:08,530 --> 00:33:09,480 Suze: starts all 824 00:33:09,490 --> 00:33:10,930 Suze: over again 825 00:33:10,940 --> 00:33:11,700 Suze: and it has 826 00:33:11,700 --> 00:33:13,979 Suze: Not met the five year rule, 827 00:33:13,980 --> 00:33:16,270 Suze: KT. All right. So, what are you talking about? 828 00:33:17,470 --> 00:33:18,250 KT: Well, see, I 829 00:33:18,250 --> 00:33:19,130 KT: just jumped the 830 00:33:19,130 --> 00:33:20,640 KT: gun because I know how much 831 00:33:20,640 --> 00:33:22,290 KT: you like series I bonds. But 832 00:33:22,290 --> 00:33:24,060 KT: look at the consequences. 833 00:33:25,740 --> 00:33:26,080 KT: Don't 834 00:33:26,080 --> 00:33:27,670 KT: do it. Don't do it, Lynn. 835 00:33:30,140 --> 00:33:34,220 Suze: All right, everybody. Oh God. So KT, you're not done yet. What are 836 00:33:34,220 --> 00:33:36,260 Suze: you taking your earphones out for? 837 00:33:36,840 --> 00:33:37,920 KT: Because you're 838 00:33:37,920 --> 00:33:38,410 KT: talking so loud yelling at me. It's hurting my ears. 839 00:33:42,010 --> 00:33:47,940 KT: Alright, (KT: so whisper) KT, What do we want to tell 840 00:33:47,940 --> 00:33:49,160 KT: everybody to do? What 841 00:33:49,160 --> 00:33:49,960 Suze: tonight? 842 00:33:49,970 --> 00:33:52,960 KT: Oh, you're going to watch Suze on Ashley 843 00:33:52,970 --> 00:33:54,070 Suze: on Banfield on 844 00:33:54,070 --> 00:33:55,060 Suze: news nation at 845 00:33:55,060 --> 00:33:55,810 Suze: 10 p.m. 846 00:33:55,820 --> 00:33:58,170 Suze: East coast time. nine pm 847 00:33:58,340 --> 00:34:00,890 Suze: Central Time. (KT: I' ll be sleeping). 848 00:34:01,740 --> 00:34:02,310 Suze: I'll miss you. 849 00:34:03,570 --> 00:34:05,270 KT: No,  I'll be there. All right 850 00:34:07,780 --> 00:34:09,090 KT: Want me to come on and say hi to everybody. 851 00:34:12,640 --> 00:34:14,170 Suze: I don't think so, whatever. And we'll see what happens on 852 00:34:14,170 --> 00:34:16,840 Suze: Sunday for Suze School. 853 00:34:16,850 --> 00:34:18,069 Suze: Happy Memorial 854 00:34:18,070 --> 00:34:21,730 Suze: Day weekend, everybody. But until Sunday, 855 00:34:21,730 --> 00:34:22,969 Suze: there's only one thing that we 856 00:34:22,969 --> 00:34:23,960 Suze: want you to remember when it 857 00:34:23,960 --> 00:34:25,100 Suze: comes to your money. And what is it KT? 858 00:34:25,850 --> 00:34:26,970 KT: Be safe, 859 00:34:27,540 --> 00:34:30,649 KT: Strong, secure, everybody. 860 00:34:30,650 --> 00:34:31,620 Suze: See you soon. 861 00:34:31,620 --> 00:34:32,520 KT: Bye.