1 00:00:31,190 --> 00:00:39,130 Suze: January 12 2023. Welcome everybody to another edition of the 2 00:00:39,130 --> 00:00:40,170 Suze: Ask Suze 3 00:00:40,170 --> 00:00:41,130 KT: and KT 4 00:00:41,140 --> 00:00:46,400 Suze: Anything podcast. Alright Miss Travis. How's it feel? 5 00:00:46,409 --> 00:00:49,470 KT: Pretty good? I like this new year Suze. 6 00:00:49,470 --> 00:00:52,129 Suze: I see that. Tell everybody why you like it. 7 00:00:52,200 --> 00:00:55,170 KT: Well one of the first reasons I really love it 8 00:00:55,180 --> 00:00:59,000 KT: is that we're walking together on the beach in the 9 00:00:59,000 --> 00:00:59,710 KT: sand 10 00:00:59,850 --> 00:01:02,840 KT: and we're able to get Suze out and about. Which 11 00:01:02,840 --> 00:01:05,490 KT: means I get to have a playmate again. 12 00:01:06,030 --> 00:01:10,360 Suze: I love that as well. All right shall we get 13 00:01:10,360 --> 00:01:10,779 Suze: right to it? 14 00:01:11,040 --> 00:01:14,959 KT: Yeah let's I have lots of questions but I think 15 00:01:14,959 --> 00:01:17,730 KT: this year is also going to be a better year 16 00:01:17,740 --> 00:01:19,070 KT: than last year. 17 00:01:19,080 --> 00:01:19,950 Suze: In what way? 18 00:01:20,130 --> 00:01:23,770 KT: In many ways it feels different. It feels like it's going 19 00:01:23,770 --> 00:01:26,730 KT: to be a more challenging year I think financially but 20 00:01:26,740 --> 00:01:27,589 KT: everything else... 21 00:01:27,810 --> 00:01:29,560 Suze: More challenging than last year? 22 00:01:29,569 --> 00:01:31,530 KT: Yeah I do think that 23 00:01:31,540 --> 00:01:32,730 Suze: Wow. I don't. 24 00:01:32,730 --> 00:01:34,590 KT: What do you think? (Laughs) 25 00:01:35,500 --> 00:01:37,850 KT: I think what matters is what you think. 26 00:01:37,980 --> 00:01:38,880 Suze: You know I think... 27 00:01:39,000 --> 00:01:39,770 KT: It feels like... 28 00:01:40,030 --> 00:01:42,700 Suze: I think last year was one of the more challenging 29 00:01:42,709 --> 00:01:48,060 Suze: investment years I've almost ever experienced in my career 30 00:01:48,060 --> 00:01:50,800 KT: Because you were in a roller coaster mode and people 31 00:01:50,800 --> 00:01:52,610 KT: like you look at it every day 32 00:01:52,620 --> 00:01:54,910 Suze: But nothing made sense if you want to know the 33 00:01:54,910 --> 00:01:58,150 Suze: truth in many ways. So I think this year it 34 00:01:58,150 --> 00:01:59,980 Suze: will be very different. 35 00:02:00,000 --> 00:02:01,930 Suze: More predictable. Believe it or not. 36 00:02:02,030 --> 00:02:03,940 KT: But not necessarily calmer. 37 00:02:04,100 --> 00:02:07,590 Suze: Well not necessarily the first quarter but maybe after that 38 00:02:07,590 --> 00:02:11,239 Suze: but I'll tell you all more about that Sunday on 39 00:02:11,240 --> 00:02:13,150 Suze: Suze School. All right. 40 00:02:13,160 --> 00:02:17,829 KT: Suze, First question is from Kyle. Hi Suze, with rising 41 00:02:17,830 --> 00:02:21,669 KT: interest rates. Do you think one should buy I bonds 42 00:02:21,669 --> 00:02:24,480 KT: for 2023 new year or look for other 43 00:02:24,500 --> 00:02:26,810 KT: CD or Treasury options? 44 00:02:26,820 --> 00:02:28,970 Suze: So Kyle, I have to tell you that's a great 45 00:02:28,970 --> 00:02:33,639 Suze: question because I myself am pondering, KT if we should 46 00:02:33,639 --> 00:02:38,090 Suze: be investing $30,000 each like we do almost every year 47 00:02:38,100 --> 00:02:42,780 Suze: into these I bonds, because interest rates on Treasury bills 48 00:02:42,780 --> 00:02:49,160 Suze: are so fabulous right now. Here is my answer to you, Kyle. 49 00:02:49,169 --> 00:02:53,000 Suze: If I were you, I would wait 50 00:02:53,250 --> 00:02:58,280 Suze: because around March or so we will know what inflation 51 00:02:58,280 --> 00:03:02,220 Suze: is doing. We will know what the renewal rates on 52 00:03:02,230 --> 00:03:04,470 Suze: I bonds will probably be. 53 00:03:04,900 --> 00:03:08,870 Suze: And is it good enough to just lock in another 6.8% 54 00:03:08,870 --> 00:03:11,990 Suze: for one year? Which you could do right now if 55 00:03:11,990 --> 00:03:15,109 Suze: you wanted to but then watch it go down and 56 00:03:15,110 --> 00:03:18,650 Suze: down and down. I'm not exactly sure. So if I 57 00:03:18,650 --> 00:03:22,310 Suze: were you, I would take whatever money you were going 58 00:03:22,310 --> 00:03:26,170 Suze: to put into an I bond and I would buy 59 00:03:26,180 --> 00:03:30,500 Suze: a three month Treasury bill with that money, lock in 60 00:03:30,500 --> 00:03:33,210 Suze: about 4.675%. 61 00:03:33,540 --> 00:03:37,400 Suze: And at that point we will know where I bonds 62 00:03:37,400 --> 00:03:40,640 Suze: and inflation are heading. And then we can make a 63 00:03:40,640 --> 00:03:43,920 Suze: decision if we still like I bonds, you can do 64 00:03:43,920 --> 00:03:44,700 Suze: it then. 65 00:03:45,300 --> 00:03:48,230 Suze: So let's wait till March. But in the meantime by 66 00:03:48,240 --> 00:03:50,900 Suze: a three month treasury bill. Next question, KT. 67 00:03:51,070 --> 00:03:55,460 KT: All right. Next is from Mandy. Hi Suze. Panic mode over here. 68 00:03:55,460 --> 00:03:59,180 KT: Panic mode. I like this one. It said are we 69 00:03:59,180 --> 00:04:03,330 KT: really going to lose another 60% of our investments over 70 00:04:03,330 --> 00:04:04,470 KT: the next year? 71 00:04:04,620 --> 00:04:09,110 KT: Should we withdraw everything we have. Right Mandy is truly 72 00:04:09,110 --> 00:04:10,440 KT: in panic mode. Mandy, 73 00:04:11,400 --> 00:04:15,320 Suze: Mandy. What the heck were you invested in, that you 74 00:04:15,320 --> 00:04:19,240 Suze: lost 60% of your investments? 75 00:04:19,890 --> 00:04:23,880 Suze: I mean really, you must have been invested in something 76 00:04:23,880 --> 00:04:27,550 Suze: so speculative and you just kept it and kept it 77 00:04:27,560 --> 00:04:30,710 Suze: and kept it. Like did you have Netflix and you 78 00:04:30,710 --> 00:04:33,490 Suze: rode it all the way down? Did you have things 79 00:04:33,490 --> 00:04:38,540 Suze: like that? Because that's a serious loss because most people 80 00:04:38,540 --> 00:04:43,720 Suze: really only lost if they were truly diversified they really 81 00:04:43,720 --> 00:04:47,810 Suze: only lost maybe 20 or 30% at most. 82 00:04:48,130 --> 00:04:52,200 Suze: So you need to really look at your investments. However, 83 00:04:52,290 --> 00:04:56,159 Suze: for those of you who are diversified, why are you smiling? 84 00:04:56,790 --> 00:05:00,790 KT: Because if that's a panic mode question I would just 85 00:05:00,790 --> 00:05:07,040 KT: say one answer: No you're not gonna lose everything for 60% 86 00:05:07,040 --> 00:05:08,940 KT: and you shouldn't withdraw everything. 87 00:05:08,940 --> 00:05:12,610 Suze: But we don't know what they're invested. And that should 88 00:05:12,610 --> 00:05:16,150 Suze: have been your quizzie KT. Because I would have been 89 00:05:16,150 --> 00:05:21,590 Suze: able to go (makes the wrong answer sound) Mandy, first you need to look at 90 00:05:21,589 --> 00:05:25,279 Suze: your investments and make sure they are diversified across the 91 00:05:25,279 --> 00:05:26,089 Suze: board 92 00:05:26,500 --> 00:05:30,070 Suze: so that you're not all in high tech or something 93 00:05:30,070 --> 00:05:33,650 Suze: like that because otherwise you could not be having a 94 00:05:33,650 --> 00:05:37,830 Suze: good year this year again. However for those of you 95 00:05:37,830 --> 00:05:42,210 Suze: who are diversified and you are invested in equities and 96 00:05:42,210 --> 00:05:44,670 Suze: things that are paying you dividends etcetera. 97 00:05:44,880 --> 00:05:47,190 Suze: I do not think you're going to have as bad 98 00:05:47,190 --> 00:05:51,460 Suze: of a year as we had last year again. I 99 00:05:51,460 --> 00:05:55,970 Suze: will go into that on Sunday on Suze School. So 100 00:05:55,970 --> 00:05:59,190 Suze: just make sure you tune in at that time. Alright, 101 00:05:59,200 --> 00:06:03,100 KT: Okay, next question is from Barbara. Suze, when do all 102 00:06:03,100 --> 00:06:08,060 KT: the updates for the new 2.0 Secure Act kick in? 103 00:06:08,070 --> 00:06:11,359 KT: And you all, everyone, Suze talked about this on the 104 00:06:11,360 --> 00:06:11,790 KT: last 105 00:06:12,450 --> 00:06:16,859 KT: School. So if you haven't heard that, listen to it 106 00:06:16,860 --> 00:06:19,010 KT: and then you'll understand her answer right now. 107 00:06:19,300 --> 00:06:23,450 Suze: Barbara I wish I could tell you that. Legally they're 108 00:06:23,460 --> 00:06:26,460 Suze: able to be done. It's in the hands of your 109 00:06:26,460 --> 00:06:31,310 Suze: corporations that you work for when they decide to implement it. 110 00:06:31,320 --> 00:06:35,870 Suze: So you need to ask your HR person. Next question, KT. 111 00:06:35,880 --> 00:06:38,740 KT: Okay. Next question is from Kat, 112 00:06:39,160 --> 00:06:41,220 KT: it's a K a T Cat. 113 00:06:41,230 --> 00:06:44,339 Suze: Aren't you going to compliment me on how short that 114 00:06:44,350 --> 00:06:45,100 Suze: answer was? 115 00:06:45,100 --> 00:06:49,200 KT: I love when Suze gives a short precise answer and 116 00:06:49,200 --> 00:06:52,170 KT: you know why everybody? Because then I can remember it. 117 00:06:52,180 --> 00:06:55,900 KT: All right. Ready. This is from Kat. Hi Suze and KT, 118 00:06:55,910 --> 00:06:56,890 KT: Are there any... 119 00:06:56,900 --> 00:06:59,330 Suze: What does that mean now that you can, that... 120 00:06:59,339 --> 00:07:02,250 KT: No, that you can remember like a single answer like a yes 121 00:07:02,250 --> 00:07:03,099 KT: or a no. 122 00:07:03,570 --> 00:07:05,659 KT: It's easy to remember what to do. 123 00:07:06,410 --> 00:07:07,640 Suze: But KT, what if the answer isn't yes or no? 124 00:07:08,450 --> 00:07:10,380 KT: Then you have to listen to it a few times 125 00:07:10,380 --> 00:07:12,040 KT: or listen really carefully. 126 00:07:16,580 --> 00:07:16,740 Suze: Can you tell what we have going on here? 127 00:07:16,740 --> 00:07:20,380 KT: Hi Suze and KT. Are there any rules to who is eligible for 128 00:07:20,380 --> 00:07:24,610 KT: doing catch up contributions, aside from having to be age 129 00:07:24,610 --> 00:07:25,940 KT: 50 or older? 130 00:07:26,120 --> 00:07:30,330 KT: Since age 25 I've always contributed the max to my 131 00:07:30,330 --> 00:07:34,820 KT: employer 403 B. Does that mean I'm not eligible to 132 00:07:34,820 --> 00:07:38,490 KT: do a catch up at age 50? Tell everyone what 133 00:07:38,490 --> 00:07:40,500 KT: a catch up is? I forgot. But I remember... 134 00:07:40,740 --> 00:07:43,960 Suze: A catch up is simply like this year you can put let's 135 00:07:43,960 --> 00:07:48,220 Suze: say $6500 a year into your ROTH. However 136 00:07:48,276 --> 00:07:53,816 Suze: if you are 50 or older you could put $7500 in. 137 00:07:53,876 --> 00:07:57,876 Suze: That means the catch up is $1000 now. They really 138 00:07:57,876 --> 00:08:01,026 Suze: shouldn't even call it a catch up because the truth 139 00:08:01,026 --> 00:08:04,666 Suze: of the matter is, Kat anybody can do it once 140 00:08:04,666 --> 00:08:07,906 Suze: you are 50 or older you just are allowed to 141 00:08:07,906 --> 00:08:10,096 Suze: put even more money into your 401k 142 00:08:11,322 --> 00:08:15,452 Suze: or into your ROTH or into your traditional IRA just 143 00:08:15,452 --> 00:08:16,252 Suze: that simple. 144 00:08:16,262 --> 00:08:20,432 KT: All right from Cynthia, Suze, could you please explain the 145 00:08:20,432 --> 00:08:25,132 KT: yield and dividend yield. For instance; B. T. I. is 146 00:08:25,132 --> 00:08:32,590 KT: showing a yield of 4.04 and a dividend yield of 2.13%. 147 00:08:32,760 --> 00:08:36,150 KT: I don't understand the two numbers or how they're calculated. 148 00:08:36,160 --> 00:08:39,179 Suze: Yeah. So Cynthia first of all V. T. I. is 149 00:08:39,179 --> 00:08:42,120 Suze: the symbol for the E. T. F. of the Vanguard 150 00:08:42,150 --> 00:08:46,780 Suze: Total Stock Market index fund. And the dividend, when you 151 00:08:46,780 --> 00:08:51,710 Suze: see it's showing a yield of 4.04. It's not showing 152 00:08:51,720 --> 00:08:55,209 Suze: a yield to that, that is the dividend that you 153 00:08:55,210 --> 00:08:57,840 Suze: are saying and I'm not exactly sure that's the correct 154 00:08:57,840 --> 00:09:01,230 Suze: number but that is the dividend that they pay out 155 00:09:01,230 --> 00:09:02,520 Suze: per year 156 00:09:02,770 --> 00:09:07,370 Suze: on the V. T. I. - E. T. F. that you own. 157 00:09:07,380 --> 00:09:14,670 Suze: And that dividend, that amount of money converts to a 2.13% yield, 158 00:09:14,679 --> 00:09:19,110 Suze: when you wrote this question. Again, those numbers have changed 159 00:09:19,120 --> 00:09:21,099 Suze: at this point in time because V. T. 160 00:09:21,120 --> 00:09:24,079 Suze: I. The price of E. T. I has changed but 161 00:09:24,080 --> 00:09:27,770 Suze: they're not both yields. One is the amount of the 162 00:09:27,770 --> 00:09:32,400 Suze: yearly dividend, the other is the amount that dividend actually 163 00:09:32,400 --> 00:09:37,569 Suze: yields you on the price that you paid for V. T. I. 164 00:09:37,580 --> 00:09:38,530 Suze: Did that make sense, KT? 165 00:09:38,530 --> 00:09:43,069 KT: Yea but it's always a little complicated. 166 00:09:43,080 --> 00:09:46,100 Suze: Well the truth of the matter is the price of 167 00:09:46,110 --> 00:09:50,490 Suze: any E. T. F. or stock changes every day. 168 00:09:50,760 --> 00:09:55,870 Suze: And depending on what you buy the stock for, the 169 00:09:55,870 --> 00:10:01,100 Suze: dividend is usually pretty stable. But the dividend will yield 170 00:10:01,100 --> 00:10:06,550 Suze: you more if you paid less for that stock or E. T. F. 171 00:10:06,559 --> 00:10:10,660 Suze: than if you paid more since the dividend is stable. 172 00:10:10,670 --> 00:10:14,520 Suze: So it all depends on what you paid for it. 173 00:10:15,010 --> 00:10:15,550 Suze: Do you want me 174 00:10:15,559 --> 00:10:16,580 KT: you want me to 175 00:10:16,580 --> 00:10:17,770 Suze: give you an example? 176 00:10:18,480 --> 00:10:19,960 KT: I think that was really clear. 177 00:10:20,630 --> 00:10:23,780 Suze: But let me give you an example. Seriously. You buy something 178 00:10:23,780 --> 00:10:28,270 Suze: for $10 and the dividend is a dollar, let's just 179 00:10:28,270 --> 00:10:32,810 Suze: say that's true, you have a 10% yield. You by 180 00:10:32,809 --> 00:10:38,230 Suze: that same stock for $5 and the dividend is a dollar. 181 00:10:38,280 --> 00:10:43,040 Suze: You now have a 20% yield. So depending on what 182 00:10:43,050 --> 00:10:44,980 Suze: you paid for it 183 00:10:45,600 --> 00:10:50,450 Suze: determines what your actual yield is. Now, even though that 184 00:10:50,450 --> 00:10:54,470 Suze: stock may go up and may go down what you 185 00:10:54,470 --> 00:10:58,270 Suze: paid for it still is... You're getting that 186 00:10:58,280 --> 00:11:00,420 Suze: yield. So 187 00:11:00,420 --> 00:11:01,090 Suze: now you get 188 00:11:01,090 --> 00:11:01,720 KT: Yea, I do! 189 00:11:02,400 --> 00:11:03,530 Suze: All right, so good. Go on. 190 00:11:03,540 --> 00:11:05,010 KT: So this next question. 191 00:11:05,320 --> 00:11:08,710 Suze: Usually when somebody answers the thing with. Yeah, I do... 192 00:11:08,720 --> 00:11:10,610 KT: Want me to explain it to everyone? 193 00:11:10,620 --> 00:11:12,540 Suze: No, it's alright, go on. 194 00:11:13,510 --> 00:11:14,800 KT: All right. Next question 195 00:11:14,920 --> 00:11:18,459 Suze: After this podcast. Trust me I'm going to ask her 196 00:11:18,460 --> 00:11:20,600 Suze: to explain it to me. Alright. 197 00:11:20,610 --> 00:11:24,880 KT: Alright Judy asks this question based on a podcast we 198 00:11:24,880 --> 00:11:27,380 KT: did a couple of weeks ago when we talked about 199 00:11:27,390 --> 00:11:29,900 KT: the adult Children that continue to live in a house 200 00:11:29,900 --> 00:11:31,569 KT: after their parents died 201 00:11:31,780 --> 00:11:37,590 KT: and you mentioned the 250,000 capital gains exemption on the 202 00:11:37,590 --> 00:11:41,670 KT: sale of an inherited property that they held greater than 203 00:11:41,670 --> 00:11:42,380 KT: one year. 204 00:11:42,380 --> 00:11:44,740 Suze: Well that's not exactly what I said but I'll explain. 205 00:11:45,140 --> 00:11:47,559 KT: So does this only apply to inherited 206 00:11:47,580 --> 00:11:53,329 KT: property or does that exemption allocate to all benefactors? 207 00:11:53,400 --> 00:11:57,270 Suze: Everybody I want you to listen to me very carefully 208 00:11:57,270 --> 00:12:01,980 Suze: Judy and everybody else, every single one of you who 209 00:12:01,980 --> 00:12:05,559 Suze: owns a home and you own that home and have 210 00:12:05,559 --> 00:12:09,940 Suze: lived in that home as your primary residency for two 211 00:12:09,940 --> 00:12:14,040 Suze: out of the past five years. If you were to 212 00:12:14,040 --> 00:12:16,020 Suze: sell that home, 213 00:12:16,300 --> 00:12:22,470 Suze: There is a $250,000 exemption, which means that when you 214 00:12:22,470 --> 00:12:28,800 Suze: sell that house, $250,000 of gains, you do not have 215 00:12:28,800 --> 00:12:32,410 Suze: to pay taxes on. If you own that house with 216 00:12:32,410 --> 00:12:32,829 Suze: somebody 217 00:12:32,840 --> 00:12:38,740 Suze: else, you each get a $250,000 exemption. As long as 218 00:12:38,740 --> 00:12:42,550 Suze: both of you lived in that house for two out 219 00:12:42,550 --> 00:12:47,380 Suze: of the past five years as your primary residency. Judy 220 00:12:47,380 --> 00:12:51,740 Suze: what you need to understand is that when you inherit 221 00:12:51,750 --> 00:12:56,800 Suze: a home from somebody who left it to you, you 222 00:12:56,809 --> 00:13:01,010 Suze: get a step up in cost basis on that home. 223 00:13:01,309 --> 00:13:06,700 Suze: So even if your parents paid $100,000 for that home 224 00:13:06,760 --> 00:13:09,940 Suze: and now they left you that home, you now have 225 00:13:09,940 --> 00:13:14,590 Suze: inherited that home and on the date when you inherited 226 00:13:14,620 --> 00:13:19,890 Suze: that house is worth $1 million. You never lived in 227 00:13:19,890 --> 00:13:22,699 Suze: that home, it was your parents home. 228 00:13:23,040 --> 00:13:29,280 Suze: Your cost basis on that home now is $1 million. 229 00:13:29,309 --> 00:13:33,309 Suze: So you could turn around and sell that home and 230 00:13:33,309 --> 00:13:38,600 Suze: not pay any tax on it whatsoever. To pay capital 231 00:13:38,600 --> 00:13:43,700 Suze: gains tax, you have to own the home for at 232 00:13:43,700 --> 00:13:45,980 Suze: least one year. 233 00:13:46,710 --> 00:13:50,600 Suze: And then if you sold it, you would only pay 234 00:13:50,600 --> 00:13:54,850 Suze: capital gains tax on whatever gain there was above that 235 00:13:54,850 --> 00:13:59,670 Suze: $1 million. If you moved into that home and lived 236 00:13:59,679 --> 00:14:02,470 Suze: in it for two out of the past five years 237 00:14:02,470 --> 00:14:04,490 Suze: as your primary residency, 238 00:14:04,809 --> 00:14:08,730 Suze: you would only have to pay taxes on anything above 239 00:14:08,740 --> 00:14:15,040 Suze: $1,250,000 because you get that exemption. If you sell that 240 00:14:15,040 --> 00:14:19,960 Suze: house before one year after you have inherited it, you 241 00:14:19,960 --> 00:14:26,250 Suze: will only pay ordinary income tax on everything above $1 million. 242 00:14:26,250 --> 00:14:27,500 Suze: Next question, KT. 243 00:14:27,870 --> 00:14:32,960 KT: Suze, next question is from Janice. Hi, Suze and KT, I devour 244 00:14:32,960 --> 00:14:37,460 KT: your podcast and follow your advice. So Janice is in 245 00:14:37,460 --> 00:14:39,850 KT: a little bit of a situation, Suze, she said over 246 00:14:39,850 --> 00:14:43,510 KT: the past two months, I'm not able to decide if 247 00:14:43,510 --> 00:14:48,080 KT: I should stop my dividend reinvestment in my IRA held 248 00:14:48,080 --> 00:14:52,280 KT: at a brokerage and let the money accumulate or buy 249 00:14:52,280 --> 00:14:55,420 KT: short term treasuries? So 250 00:14:55,620 --> 00:14:59,020 KT: she said that she's 60 years old, she's probably in 251 00:14:59,020 --> 00:15:02,820 KT: the last 10 years of full time working career and 252 00:15:02,820 --> 00:15:05,720 KT: not sure when she's either going to be, you know, 253 00:15:05,720 --> 00:15:09,640 KT: let go or whatever. So she's asking your thoughts should 254 00:15:09,640 --> 00:15:14,050 KT: she reinvest while the market's down or take the cash 255 00:15:14,050 --> 00:15:16,170 KT: and buy short term treasuries. 256 00:15:16,610 --> 00:15:20,270 Suze: So here's the problem. I don't know what you're invested in. 257 00:15:20,810 --> 00:15:25,030 Suze: And so Janice, is it possible that, you know, maybe 258 00:15:25,030 --> 00:15:28,570 Suze: you're invested in something that's actually giving you a higher 259 00:15:28,580 --> 00:15:31,640 Suze: interest rate than a Treasury? 260 00:15:32,170 --> 00:15:35,950 Suze: And if that's so then you're probably if it's a 261 00:15:35,950 --> 00:15:40,420 Suze: good quality stock or exchange traded fund, then you would 262 00:15:40,420 --> 00:15:44,990 Suze: probably be better off at this point in time reinvesting 263 00:15:45,000 --> 00:15:49,960 Suze: the dividends. If however you're in stocks and they're only 264 00:15:49,960 --> 00:15:53,570 Suze: paying you a half a percent in dividends or whatever 265 00:15:53,570 --> 00:15:57,820 Suze: it may be, then maybe you're better off not reinvesting it. However, 266 00:15:57,830 --> 00:16:03,560 Suze: remember in a brokerage account, the minimum you need to 267 00:16:03,560 --> 00:16:10,840 Suze: buy an individual Treasury bill is $1,000. So would you 268 00:16:10,840 --> 00:16:15,880 Suze: even have enough money if you didn't reinvest the dividends 269 00:16:16,210 --> 00:16:20,430 Suze: to do what? To buy a Treasury bill. That I 270 00:16:20,430 --> 00:16:23,720 Suze: don't know because I don't know also how much money 271 00:16:23,720 --> 00:16:27,460 Suze: you have in there. But assuming that you have good 272 00:16:27,460 --> 00:16:33,170 Suze: quality stocks, they're paying you a decent dividend of 2345% 273 00:16:33,170 --> 00:16:36,010 Suze: or even more. If you own things like Devon 274 00:16:36,460 --> 00:16:39,810 Suze: And you have 10 years until retirement, I have to 275 00:16:39,810 --> 00:16:43,980 Suze: tell you, I probably would stick with reinvesting my dividends 276 00:16:43,980 --> 00:16:46,240 Suze: at this point in time. 277 00:16:46,250 --> 00:16:47,380 KT: That's great 278 00:16:47,390 --> 00:16:48,510 Suze: Why? You're happy for her? 279 00:16:49,160 --> 00:16:53,290 KT: Well, I thought you would actually say to buy the Treasuries. But... 280 00:16:53,920 --> 00:16:54,410 Suze: Do you 281 00:16:54,410 --> 00:16:57,360 Suze: see though, KT why some of these questions and all 282 00:16:57,360 --> 00:16:58,630 Suze: of you listen to me 283 00:16:58,840 --> 00:16:59,780 KT: They are all very individual. 284 00:16:59,950 --> 00:17:03,510 Suze: They're all individual things. I wish I could talk to you. 285 00:17:03,510 --> 00:17:06,950 Suze: Maybe we need to change. They Ask Suze podcast and 286 00:17:06,950 --> 00:17:10,510 Suze: KT podcast where people can call in and ask, but 287 00:17:10,510 --> 00:17:12,420 Suze: then we would be having like a radio show. So 288 00:17:12,420 --> 00:17:17,689 Suze: I'm not sure that would actually work, don't go. You are, 289 00:17:17,700 --> 00:17:19,540 Suze: I can, I can tell... 290 00:17:19,619 --> 00:17:21,930 KT: Wait. If you all want to see Suze on TV 291 00:17:21,930 --> 00:17:23,050 KT: again vote 292 00:17:23,330 --> 00:17:26,320 KT: yay or nay as they did in the house. 293 00:17:26,320 --> 00:17:28,290 Suze: Well we have to put up a poll for them 294 00:17:28,290 --> 00:17:31,600 Suze: to do that. Maybe I will, right. B ut I know 295 00:17:31,600 --> 00:17:34,060 Suze: she has been working on something and I'm not 296 00:17:34,060 --> 00:17:36,560 KT: My secret. Everybody. My secret. 297 00:17:36,570 --> 00:17:39,650 Suze: Oh my goodness. Anyway, so when you write in 298 00:17:39,660 --> 00:17:41,920 Suze: and I just want to say to all of you 299 00:17:41,920 --> 00:17:44,659 Suze: that have been writing in and you write in a 300 00:17:44,660 --> 00:17:49,460 Suze: question to ask Suze podcast at gmail dot com or 301 00:17:49,470 --> 00:17:53,970 Suze: on the community app that you can download on Google 302 00:17:53,970 --> 00:17:55,859 Suze: play or Apple apps. 303 00:17:56,500 --> 00:18:02,500 Suze: You're writing such long ones and we're getting thousands now 304 00:18:02,510 --> 00:18:06,250 Suze: and I really can't get to them. So when you 305 00:18:06,250 --> 00:18:11,720 Suze: write in, just know that maybe they'll be chosen. Maybe not, 306 00:18:11,730 --> 00:18:16,960 Suze: but just be patient and hopefully will answer your question 307 00:18:16,970 --> 00:18:20,610 Suze: with somebody else's question if that made sense. Okay, go 308 00:18:20,609 --> 00:18:21,220 Suze: on KT. 309 00:18:21,220 --> 00:18:25,149 KT: Okay. Suze. I like this one because this is from Sarah. 310 00:18:25,340 --> 00:18:30,160 KT: Sarah's 21. Listen to this everybody, She's 21. I've been 311 00:18:30,160 --> 00:18:34,649 KT: contributing small amounts to a ROTH 401k 5% since I 312 00:18:34,650 --> 00:18:35,949 KT: was 18. 313 00:18:36,210 --> 00:18:40,080 KT: My mom listens to you and taught me well, then 314 00:18:40,080 --> 00:18:43,720 KT: Sarah wrote this past year. I got a full time 315 00:18:43,720 --> 00:18:49,290 KT: job as a flight instructor. Wait a minute but wait, 316 00:18:49,290 --> 00:18:53,270 KT: I'm kind of proud that she's 21 she's a flight 317 00:18:53,280 --> 00:18:54,210 KT: instructor 318 00:18:55,619 --> 00:18:56,020 Suze: Fabulous, but I think I know where this is going. 319 00:18:56,380 --> 00:19:00,439 KT: Sarah continues, I've begun contributing to a ROTH IRA as well. 320 00:19:00,440 --> 00:19:03,960 KT: I max out, I work at a community college and 321 00:19:03,960 --> 00:19:05,850 KT: I have to pay 15 322 00:19:05,990 --> 00:19:10,919 KT: into a P. E. R. A pira defined benefit. You 323 00:19:10,920 --> 00:19:12,710 KT: know what that is? It's a pension plan, 324 00:19:12,720 --> 00:19:17,150 Suze: A public employee retirement system, Yeah, it's going okay. 325 00:19:17,300 --> 00:19:22,590 KT: It's a pension plan. My retirement contributions and savings take up 60% 326 00:19:22,600 --> 00:19:23,830 KT: of my paycheck. 327 00:19:24,080 --> 00:19:27,830 KT: But my rent will be doubling in six months. Now 328 00:19:27,840 --> 00:19:31,389 KT: Sarah goes on like most 21 year olds to say 329 00:19:31,400 --> 00:19:33,880 KT: I also want to buy a house and a car 330 00:19:33,890 --> 00:19:38,510 KT: in the next five years. So let's start with, first 331 00:19:38,510 --> 00:19:43,080 KT: of all this is a goal oriented young woman, congratulations Sarah. 332 00:19:43,080 --> 00:19:44,200 KT: Just for that. 333 00:19:44,369 --> 00:19:46,990 KT: But Suze, what do you think she should be doing here? 334 00:19:47,000 --> 00:19:50,869 KT: So I love that she's investing in her retirement now. 335 00:19:51,150 --> 00:19:54,190 Suze: Alright, so girlfriend, first of all, I love that you are 336 00:19:54,200 --> 00:19:58,260 Suze: a flight instructor. Oh my God. If I could turn 337 00:19:58,260 --> 00:20:02,060 Suze: back the hands of time, KT, I so would have 338 00:20:02,060 --> 00:20:04,890 Suze: wanted to do that. We have a really great friend 339 00:20:04,900 --> 00:20:07,910 Suze: by the name of Rita Case and maybe a lot 340 00:20:07,910 --> 00:20:11,510 Suze: of you see her on television of Case Auto. Right. 341 00:20:11,510 --> 00:20:11,970 Suze: She's so 342 00:20:11,980 --> 00:20:13,310 Suze: so brilliant. I can't 343 00:20:13,310 --> 00:20:13,560 KT: even 344 00:20:14,570 --> 00:20:18,080 Suze: but she flies her own plane 345 00:20:18,080 --> 00:20:21,060 KT: and she's our age. She is younger than Suze and I but... 346 00:20:21,070 --> 00:20:22,960 Suze: I'm not even sure how old she is to tell 347 00:20:22,960 --> 00:20:24,270 Suze: you the truth, KT, but the 348 00:20:24,270 --> 00:20:26,990 KT: fact that she flies, these phantoms and 349 00:20:26,990 --> 00:20:29,580 Suze: these jets incredible, incredible. 350 00:20:29,590 --> 00:20:32,540 KT: And she looked at me, she said KT is easy. 351 00:20:32,550 --> 00:20:34,800 KT: It's actually kind of easier than driving 352 00:20:34,800 --> 00:20:37,720 Suze: and she's like but she's such a brilliant because 353 00:20:37,720 --> 00:20:39,219 KT: she's everything. 354 00:20:39,220 --> 00:20:39,580 Suze: But 355 00:20:39,890 --> 00:20:42,470 Suze: I wish I could do that but I can't anymore 356 00:20:42,480 --> 00:20:45,840 Suze: because I just can't maybe because I really don't want 357 00:20:45,840 --> 00:20:47,660 Suze: to because I guess there's nothing I can't do if 358 00:20:47,660 --> 00:20:49,220 Suze: I wanted to do it. But that's besides 359 00:20:49,220 --> 00:20:49,590 KT: the point. 360 00:20:50,500 --> 00:20:52,630 Suze: But anyway Sarah... 361 00:20:53,290 --> 00:20:56,770 Suze: When you are this goal oriented. The very first thing 362 00:20:56,770 --> 00:21:01,600 Suze: truthfully though I would cut back if your community college 363 00:21:01,609 --> 00:21:06,970 Suze: is not matching your ROTH 401K contribution is I would 364 00:21:06,970 --> 00:21:08,500 Suze: cut back there 365 00:21:09,170 --> 00:21:12,250 Suze: If I were going to cut back at all. I 366 00:21:12,250 --> 00:21:15,500 Suze: would not cut back on my ROTH IRA on any 367 00:21:15,500 --> 00:21:19,180 Suze: level because it's the money that you originally put in 368 00:21:19,220 --> 00:21:23,379 Suze: to your ROTH that you could access at any time 369 00:21:23,390 --> 00:21:28,470 Suze: without penalty or taxes. So years from now you could 370 00:21:28,470 --> 00:21:31,710 Suze: take money out of your ROTH that you originally put 371 00:21:31,720 --> 00:21:35,350 Suze: in for a down payment on a home or something 372 00:21:35,350 --> 00:21:36,650 Suze: like that. 373 00:21:37,060 --> 00:21:42,030 Suze: But here is my true advice to you, you're 21. 374 00:21:42,300 --> 00:21:46,560 Suze: Your rent is going to double either move back in 375 00:21:46,560 --> 00:21:49,850 Suze: with your mother. I am not kidding. If she will 376 00:21:49,859 --> 00:21:52,670 Suze: allow you to do so you could pay her rent. 377 00:21:52,730 --> 00:21:55,989 Suze: Maybe that would help her. But if rent is so 378 00:21:55,990 --> 00:21:57,640 Suze: exorbitant now, 379 00:21:58,090 --> 00:22:01,119 Suze: I rather see you cut back on rent or get 380 00:22:01,119 --> 00:22:05,160 Suze: four roommates or do what our niece does, where she 381 00:22:05,160 --> 00:22:08,040 Suze: lives in this tiny little apartment with two roommates. At 382 00:22:08,040 --> 00:22:10,700 Suze: one point she was living with four or five roommates 383 00:22:10,710 --> 00:22:14,479 Suze: so that they could afford it. But if you're living 384 00:22:14,480 --> 00:22:17,290 Suze: by yourself I kind of think that you are because 385 00:22:17,290 --> 00:22:20,619 Suze: you say your rent is going to double. 386 00:22:21,730 --> 00:22:25,850 Suze: That's how I would tackle this more than cutting back 387 00:22:25,859 --> 00:22:29,760 Suze: at this point in time at 21. Because these are 388 00:22:29,760 --> 00:22:35,320 Suze: your compounding years. These years are the years that you 389 00:22:35,330 --> 00:22:37,150 Suze: must not stop 390 00:22:37,420 --> 00:22:41,570 Suze: investing to the max in your retirement accounts. But if 391 00:22:41,570 --> 00:22:45,870 Suze: you have to choose one I would choose the ROTH 401k. 392 00:22:45,880 --> 00:22:50,950 Suze: Unless they match that contribution then you can't afford not 393 00:22:50,950 --> 00:22:51,869 Suze: to do that. 394 00:22:52,520 --> 00:22:56,370 Suze: So bottom line get yourself some room mates. Alright 395 00:22:56,369 --> 00:22:57,840 KT: And ride a bicycle. 396 00:22:57,850 --> 00:23:01,560 Suze: I'm sure she's riding a bicycle. But really talk to 397 00:23:01,560 --> 00:23:04,400 Suze: your mom and think about maybe moving back in with her. 398 00:23:04,400 --> 00:23:05,560 Suze: You never know. 399 00:23:05,570 --> 00:23:09,129 KT: All right, next question. This is actually my final question 400 00:23:09,130 --> 00:23:14,980 KT: from Susan. Hi Suze and KT. Please help my poor mom. 401 00:23:14,990 --> 00:23:19,550 KT: Oh ready this one. Everybody get ready. My mom was 402 00:23:19,550 --> 00:23:21,320 KT: convinced by her friend 403 00:23:21,460 --> 00:23:25,389 KT: to invest in a Cryptocurrency which she put in her 404 00:23:25,390 --> 00:23:31,109 KT: life savings. $30,000 into crypto.com 405 00:23:31,109 --> 00:23:34,580 Suze: Scam scam scam keep going. I can hear it. I 406 00:23:34,580 --> 00:23:35,510 Suze: can feel it. 407 00:23:35,520 --> 00:23:39,689 KT: This makes me sad. Then into an exchange called COMEX 408 00:23:39,700 --> 00:23:41,919 KT: to buy USDs . 409 00:23:42,250 --> 00:23:45,639 KT: Initially she made money that was able to take out 410 00:23:45,650 --> 00:23:52,050 KT: 15,000 before there was suspicious activity with money laundering when 411 00:23:52,050 --> 00:23:57,129 KT: 10BTC was put into her account. 10 Bitcoins. 412 00:23:57,540 --> 00:24:02,460 KT: Now her account is frozen. Unable to take out her funds. 413 00:24:02,700 --> 00:24:05,620 KT: She was asked to put an additional... ready for this. 414 00:24:05,619 --> 00:24:11,400 KT: Everyone 60,000 to repair the credit. So her account can 415 00:24:11,400 --> 00:24:14,690 KT: be unfrozen to take out the money she put in. 416 00:24:15,100 --> 00:24:18,780 KT: You tell everybody why we're sad we're getting more and 417 00:24:18,780 --> 00:24:21,220 KT: more of these and tell them this is 418 00:24:21,220 --> 00:24:25,530 Suze: We actually had a friend who was over and told 419 00:24:25,530 --> 00:24:27,850 Suze: us how her mother, 420 00:24:27,859 --> 00:24:28,710 KT: Her sister... 421 00:24:28,950 --> 00:24:32,080 Suze: Oh, it was her sister twice, twice, 422 00:24:32,080 --> 00:24:34,510 KT: Twice, two times smart girl too. 423 00:24:34,510 --> 00:24:39,240 Suze: Like 20,000 and then another 25,000 into this. And then 424 00:24:39,250 --> 00:24:41,250 Suze: obviously it was a scam. 425 00:24:41,550 --> 00:24:43,340 Suze: So Susan... 426 00:24:43,340 --> 00:24:45,630 KT: Wait, I have to tell everyone and it was exactly the 427 00:24:45,630 --> 00:24:49,630 KT: same model. They say it's frozen. But don't worry we're 428 00:24:49,630 --> 00:24:51,730 KT: going to secure this for you but we need some 429 00:24:51,730 --> 00:24:54,940 KT: money to be put in so that we can unfreeze it. 430 00:24:54,950 --> 00:24:59,100 KT: That's the big carrier, that's the scam everybody. 431 00:24:59,109 --> 00:25:00,560 Suze: Because mom is 432 00:25:00,560 --> 00:25:04,270 Suze: looking at how much 10 bitcoins are worth and 10 433 00:25:04,270 --> 00:25:10,810 Suze: bitcoins right now even at like 17,000 each is like 170,000. 434 00:25:10,820 --> 00:25:14,330 Suze: So yeah I'll do 60,000 so that my account could 435 00:25:14,330 --> 00:25:18,350 Suze: be unfrozen. It is a scam. It is a scam. 436 00:25:18,359 --> 00:25:19,580 Suze: It is a scam. 437 00:25:19,930 --> 00:25:24,340 Suze: At least your mother put in 30,000, her life savings 438 00:25:24,340 --> 00:25:29,710 Suze: at least she got back 15,000. And so if she 439 00:25:29,710 --> 00:25:34,220 Suze: loses 15,000 then it's lost. But do not do this. 440 00:25:34,230 --> 00:25:35,140 Suze: Do not do this. 441 00:25:35,150 --> 00:25:37,800 Suze: Do not let her do this. None of you should 442 00:25:37,800 --> 00:25:41,700 Suze: do this on any level and let alone make sure 443 00:25:41,700 --> 00:25:45,100 Suze: that you advise your parents and everybody else and this 444 00:25:45,100 --> 00:25:49,479 Suze: includes you. You do not invest in Cryptocurrency of any 445 00:25:49,480 --> 00:25:50,360 Suze: kind 446 00:25:50,790 --> 00:25:54,940 Suze: unless you can afford to lose it. Again on Sunday, 447 00:25:54,950 --> 00:25:59,250 Suze: I will update you on where I think Bitcoin and 448 00:25:59,260 --> 00:26:03,080 Suze: Ethereum is going do not get suckered in right now 449 00:26:03,080 --> 00:26:05,669 Suze: that you see it increasing at this point in time. 450 00:26:05,680 --> 00:26:07,990 Suze: I do not think that's what's going to happen to 451 00:26:07,990 --> 00:26:10,890 Suze: it in the long run. So do not touch it. 452 00:26:10,900 --> 00:26:12,400 Suze: If I were you. Go on. 453 00:26:12,530 --> 00:26:15,840 KT: All right, I have a big question, Suze. We've been getting 454 00:26:15,840 --> 00:26:18,679 KT: these emails, everyone and also friends calling 455 00:26:18,869 --> 00:26:22,500 KT: and Susie unfortunately says there's nothing that she can do. 456 00:26:22,510 --> 00:26:23,010 KT: But 457 00:26:23,260 --> 00:26:25,970 KT: is there a place people can report this? 458 00:26:25,980 --> 00:26:29,850 Suze: These are criminal acts. So they really need to be reported. 459 00:26:29,850 --> 00:26:33,699 Suze: I'm serious to the police, to law enforcement, to the 460 00:26:33,700 --> 00:26:37,030 Suze: better business bureaus. But most importantly, probably to the District 461 00:26:37,030 --> 00:26:42,020 Suze: Attorney to press charges the FBI whatever it is, this 462 00:26:42,030 --> 00:26:49,600 Suze: is a serious scam. KT, it is quizzie time for you. 463 00:26:49,980 --> 00:26:52,020 KT: We haven't done one of these in a while you did the 464 00:26:52,020 --> 00:26:52,790 KT: last quizzie. 465 00:26:53,680 --> 00:26:54,389 Suze: And I got it 466 00:26:54,390 --> 00:26:55,980 Suze: right. I was 467 00:26:55,980 --> 00:26:57,720 Suze: so proud of myself. 468 00:26:57,730 --> 00:26:58,520 Suze: So 469 00:26:58,520 --> 00:26:59,590 Suze: proud. 470 00:26:59,600 --> 00:27:01,450 KT: Now, you know how I feel. 471 00:27:02,210 --> 00:27:03,330 Suze: I don't know how you feel. 472 00:27:03,330 --> 00:27:04,980 KT: I never get it right. So 473 00:27:04,990 --> 00:27:07,050 Suze: I don't ever get it wrong. So how would I 474 00:27:07,050 --> 00:27:07,980 Suze: know how you feel? 475 00:27:07,980 --> 00:27:10,060 KT: That's what I mean. You felt so great that you 476 00:27:10,060 --> 00:27:11,000 KT: got it right? 477 00:27:11,609 --> 00:27:13,899 Suze: No, KT, you're not hearing me. 478 00:27:13,910 --> 00:27:16,260 KT: You never get all right. Go ahead. Ask me, 479 00:27:16,820 --> 00:27:17,970 Suze: I never get it wrong. 480 00:27:17,970 --> 00:27:20,550 KT: Get ready. Everybody. This is for you too. 481 00:27:22,500 --> 00:27:22,960 KT: This quizzie is for you too. 482 00:27:23,240 --> 00:27:26,780 Suze: And KT is right. I really want all of you to 483 00:27:26,780 --> 00:27:31,410 Suze: know how to answer almost every question that is asked 484 00:27:31,420 --> 00:27:36,310 Suze: on the Ask KT and Suze podcast. Because it's when 485 00:27:36,310 --> 00:27:37,790 Suze: you can do that, 486 00:27:38,330 --> 00:27:41,649 Suze: then you've learned and then you don't have to ask 487 00:27:41,650 --> 00:27:47,090 Suze: questions because you yourself know the answer. Hi Suze and KT, 488 00:27:47,260 --> 00:27:49,890 Suze: thank you for all you do. You are most certainly 489 00:27:49,890 --> 00:27:54,310 Suze: welcome my love. I am single and about 7 to 490 00:27:54,310 --> 00:27:56,479 Suze: 10 years away from retirement. 491 00:27:57,250 --> 00:28:05,080 Suze: I have two mortgages totaling approximately $200,000, write it down 492 00:28:05,080 --> 00:28:09,879 Suze: everybody so that you know right, this person is 7 493 00:28:09,880 --> 00:28:13,110 Suze: to 10 years away from retirement and they have mortgages 494 00:28:13,119 --> 00:28:18,180 Suze: of $200,000, the majority which is on an investment rental 495 00:28:18,180 --> 00:28:23,700 Suze: property at 6.7% interest. 496 00:28:24,060 --> 00:28:29,270 Suze: But she has been putting in the maximum every year 497 00:28:29,280 --> 00:28:36,480 Suze: in to her ROTH IRA and employee retirement account. Almost half 498 00:28:36,490 --> 00:28:41,600 Suze: of her income, KT goes in to these retirement accounts, 499 00:28:41,610 --> 00:28:48,800 Suze: which depressingly took a big hit in 2022. The question 500 00:28:48,810 --> 00:28:49,870 Suze: is this: 501 00:28:50,340 --> 00:28:57,090 Suze: Should she pay off her two mortgages or keep contributing 502 00:28:57,100 --> 00:29:01,310 Suze: to her retirement accounts? She says at the end, all 503 00:29:01,310 --> 00:29:06,990 Suze: the best in 2023 and she loves us. Let everybody 504 00:29:06,990 --> 00:29:07,850 Suze: think about it. 505 00:29:08,070 --> 00:29:14,520 Suze: $200,000 in mortgages. The majority is at 6.7%. She has 506 00:29:14,520 --> 00:29:20,000 Suze: money in her retirement accounts. However, 50% of her salary 507 00:29:20,010 --> 00:29:23,480 Suze: is what she puts into those retirement accounts. Should she 508 00:29:23,480 --> 00:29:28,950 Suze: stop doing that and pay off the two mortgages instead? 509 00:29:28,960 --> 00:29:33,710 Suze: What should she do? 10 years away from retirement. 510 00:29:35,370 --> 00:29:39,190 KT: I wish I knew of the 200,000 which one was 511 00:29:39,200 --> 00:29:43,060 KT: if they're equal mortgages because there's two properties. I'd pay 512 00:29:43,060 --> 00:29:46,520 KT: off one of them and keep putting my money in retirement, 513 00:29:46,530 --> 00:29:48,240 KT: I'd pay off that rental one. 514 00:29:48,250 --> 00:29:49,430 Suze: So she would pay off... 515 00:29:49,440 --> 00:29:53,170 KT: Then I would gain, you know, all that rental income 516 00:29:53,180 --> 00:29:55,900 KT: and also sell it. If I had to see what 517 00:29:55,900 --> 00:29:56,560 KT: I mean? 518 00:29:56,570 --> 00:29:58,170 Suze: You wouldn't pay off both? 519 00:29:58,180 --> 00:29:58,800 KT: No, 520 00:29:59,590 --> 00:30:02,030 KT: no, because I think if she pays off both, she 521 00:30:02,030 --> 00:30:05,850 KT: won't be able to keep putting money in her retirement. 522 00:30:05,860 --> 00:30:09,390 KT: So I would pay off that rental one first because 523 00:30:09,390 --> 00:30:13,730 KT: that's eating up the majority is it's a high interest rate, get rid of it. 524 00:30:14,970 --> 00:30:18,410 Suze: So are you ready for your answer? I hate to 525 00:30:18,410 --> 00:30:20,470 Suze: start this year off doing this to you. 526 00:30:20,850 --> 00:30:22,210 KT: Come on, give it to me 527 00:30:22,580 --> 00:30:24,270 Suze: Seriously, are you prepared for it? Ding Ding Ding!! 528 00:30:26,680 --> 00:30:28,750 KT: I knew I had a hunch that that would be 529 00:30:28,750 --> 00:30:29,570 KT: the way to go. 530 00:30:29,580 --> 00:30:31,660 Suze: Right. So what I really? 531 00:30:33,120 --> 00:30:35,710 KT: Are you kidding or is this a joke or... I got it? 532 00:30:36,080 --> 00:30:36,850 Suze: You got it. 533 00:30:37,290 --> 00:30:40,460 KT: Yes. Everybody see, all you have to do is think 534 00:30:40,470 --> 00:30:42,930 KT: what would you do? And that's what I would do. 535 00:30:42,940 --> 00:30:43,450 Suze: There you go! 536 00:30:44,180 --> 00:30:47,570 KT: Great. That's my first 2023 yea yea yea! 537 00:30:48,720 --> 00:30:55,010 Suze: Yeah. So anyway I really wish I knew were you 538 00:30:55,010 --> 00:30:58,340 Suze: going to keep your primary residency or not? 539 00:30:58,700 --> 00:31:02,030 Suze: But I also wish I knew how many years you 540 00:31:02,030 --> 00:31:06,500 Suze: had left and the interest rate on your primary mortgage 541 00:31:06,500 --> 00:31:09,790 Suze: for your home. Because are you going to have it 542 00:31:09,790 --> 00:31:12,910 Suze: paid off in 10 years if you keep paying it? 543 00:31:12,920 --> 00:31:18,150 Suze: And it is a tax deduction. Obviously the rental property 544 00:31:18,160 --> 00:31:23,980 Suze: is also a tax deduction. However, KT is absolutely right. 545 00:31:24,190 --> 00:31:29,000 Suze: At a 6.7% interest rate that is really high. 546 00:31:29,520 --> 00:31:32,910 Suze: So therefore one of the best ways for you to 547 00:31:32,910 --> 00:31:36,570 Suze: tackle your retirement 7 to 10 years from now is 548 00:31:36,570 --> 00:31:41,940 Suze: to have the highest interest rate mortgage paid off. Especially 549 00:31:41,950 --> 00:31:45,250 Suze: if you are going to keep that rental property for 550 00:31:45,260 --> 00:31:50,280 Suze: a long time. So that's what I would do if 551 00:31:50,290 --> 00:31:54,180 Suze: I were you. Alright everybody, what does that do? It 552 00:31:54,180 --> 00:31:55,910 Suze: brings us to the end 553 00:31:56,230 --> 00:32:04,040 Suze: of Ask KT and Suze Anything and Sunday I will do Suze School 554 00:32:04,050 --> 00:32:07,710 Suze: on what I really think is happening in these markets, 555 00:32:07,720 --> 00:32:10,590 Suze: how they could be going up here down here but 556 00:32:10,600 --> 00:32:14,010 Suze: I will give you really what I think and what 557 00:32:14,020 --> 00:32:17,680 Suze: you should be doing in terms of how to think 558 00:32:17,690 --> 00:32:23,140 Suze: about investing for 2023 not only in the 559 00:32:23,160 --> 00:32:27,420 Suze: stock market, not only in real estate, not only in 560 00:32:27,420 --> 00:32:34,680 Suze: possibly Series I bonds but in crypto currencies as well. Regardless. 561 00:32:34,680 --> 00:32:39,980 Suze: I can tell you. I still really, really love short 562 00:32:40,040 --> 00:32:44,900 Suze: term treasury bills. I love them, I love them. I 563 00:32:44,900 --> 00:32:45,800 Suze: love them. 564 00:32:46,220 --> 00:32:50,140 Suze: And I love you so much. My dear KT. 565 00:32:50,150 --> 00:32:52,840 KT: Thank you Suze. What do we want to tell everyone? 566 00:32:52,850 --> 00:32:55,730 Suze: So there's really only one thing that matters when it 567 00:32:55,730 --> 00:33:01,320 Suze: comes to your money and your life and that is this: today, 568 00:33:01,330 --> 00:33:06,820 Suze: wherever we go, we will create a more 569 00:33:06,830 --> 00:33:08,150 KT: joyful, 570 00:33:08,510 --> 00:33:09,690 KT: peaceful 571 00:33:09,700 --> 00:33:16,350 Suze: and loving world. Alright, everybody now you stay safe and secure. 572 00:33:16,970 --> 00:33:17,380 KT: Bye 573 00:33:17,380 --> 00:33:18,020 Suze: bye.