1
00:00:43,569 --> 00:00:50,279
Robert: October 10th 2024. Welcome to the Women and Money podcast.

2
00:00:50,290 --> 00:00:53,869
Robert: As well as everyone smart enough to listen. Hi, everybody.

3
00:00:53,880 --> 00:00:57,569
Robert: This is Robert, the producer here. Now, as you know,

4
00:00:57,580 --> 00:01:00,630
Robert: Hurricane Milton is bearing down on Florida.

5
00:01:01,319 --> 00:01:06,980
Robert: Suze and KT are safe, but unfortunately, the weather is making,

6
00:01:06,989 --> 00:01:10,899
Robert: producing a brand new podcast episode for you today a

7
00:01:11,190 --> 00:01:12,369
Robert: little bit difficult.

8
00:01:13,050 --> 00:01:16,470
Robert: Now we do want you to have your dose of

9
00:01:16,480 --> 00:01:20,050
Robert: KT and Suze love and education. So, what we're gonna

10
00:01:20,059 --> 00:01:23,269
Robert: do is here some portions of an Ask KT and

11
00:01:23,279 --> 00:01:27,360
Robert: Suze Anything episode from earlier this year. And this one

12
00:01:27,370 --> 00:01:32,039
Robert: features a really great "Can I Afford It?" quizzy. Suze

13
00:01:32,050 --> 00:01:34,830
Robert: will be back on Sunday. And in the meantime, if

14
00:01:34,839 --> 00:01:38,839
Robert: you are in Florida, we hope you're staying safe. We

15
00:01:38,849 --> 00:01:40,429
Robert: want you to know we're thinking about you.

16
00:01:41,580 --> 00:01:43,160
Robert: All right, here we go.

17
00:01:43,919 --> 00:01:47,300
KT: The first question I have is from Susie to Suze.

18
00:01:47,309 --> 00:01:50,269
KT: I'm in such a pickle. I have about 30,000 in

19
00:01:50,279 --> 00:01:53,940
KT: credit card debt and can't even make the minimum payments

20
00:01:53,949 --> 00:01:57,980
KT: monthly anymore. How can I get a grip on this debt,

21
00:01:58,000 --> 00:02:02,779
KT: a consolidation loan, a personal loan? Other? I'm overwhelmed with

22
00:02:02,790 --> 00:02:05,139
KT: the call. She's getting calls already

23
00:02:05,550 --> 00:02:11,059
KT: and she has no solution. What do you suggest, Susie does?

24
00:02:11,070 --> 00:02:12,539
Suze: Oh boy, you know...

25
00:02:12,550 --> 00:02:14,380
KT: Susie needs guidance.

26
00:02:14,389 --> 00:02:16,039
Suze: I think, you know,

27
00:02:16,800 --> 00:02:21,580
Suze: there's a rule of thumb when you owe more than

28
00:02:21,589 --> 00:02:26,220
Suze: what you're worth, you are essentially bankrupt. So let's just

29
00:02:26,229 --> 00:02:31,149
Suze: say you owe $30,000 in credit card debt and let's

30
00:02:31,160 --> 00:02:34,020
Suze: say you don't have any savings, you have no net worth.

31
00:02:34,029 --> 00:02:37,339
Suze: You don't own a home, you don't own anything.

32
00:02:38,550 --> 00:02:43,470
Suze: Essentially. It's very difficult then to get out of credit

33
00:02:43,479 --> 00:02:48,538
Suze: card debt even if you can't make the minimum payments

34
00:02:48,550 --> 00:02:50,360
Suze: due any more.

35
00:02:51,149 --> 00:02:56,970
Suze: You might wanna check with NFCC.org, which is an organization

36
00:02:56,979 --> 00:02:59,329
Suze: that will look at what you have, see if they

37
00:02:59,339 --> 00:03:02,490
Suze: can take over your debt where you pay them, they

38
00:03:02,500 --> 00:03:05,979
Suze: pay the credit card companies. Usually they take your interest

39
00:03:05,990 --> 00:03:09,380
Suze: down to zero and maybe it costs you $10 a

40
00:03:09,389 --> 00:03:11,259
Suze: month to have them do that and they put you

41
00:03:11,270 --> 00:03:13,559
Suze: on a five year plan. However,

42
00:03:14,339 --> 00:03:16,799
Suze: and I don't say this lightly.

43
00:03:17,830 --> 00:03:22,850
Suze: A lot of times in life we get into situations

44
00:03:23,179 --> 00:03:28,008
Suze: for whatever reason. Maybe you were sick, maybe something happened.

45
00:03:28,020 --> 00:03:28,970
Suze: I don't know.

46
00:03:29,729 --> 00:03:33,470
Suze: But if you really can't afford to even pay the

47
00:03:33,479 --> 00:03:35,830
Suze: minimum payment due anymore.

48
00:03:36,550 --> 00:03:43,509
Suze: It is possible that bankruptcy may be an option for you.

49
00:03:44,139 --> 00:03:46,589
Suze: And I know that a lot of you are like,

50
00:03:46,600 --> 00:03:52,729
Suze: wait a minute. But when it's legal, when it makes sense,

51
00:03:52,740 --> 00:03:55,800
Suze: when you've learned your lesson and you're not going to

52
00:03:55,809 --> 00:03:59,039
Suze: claim bankruptcy and then run up $30,000 of credit card

53
00:03:59,050 --> 00:04:03,330
Suze: debt again because most people who claim bankruptcy, claim it twice.

54
00:04:04,199 --> 00:04:07,509
Suze: But if it's legitimate that maybe you had a divorce,

55
00:04:07,520 --> 00:04:09,300
Suze: maybe who knows what happened.

56
00:04:10,029 --> 00:04:14,179
Suze: But bankruptcy in this particular case and I just have

57
00:04:14,190 --> 00:04:14,850
Suze: a feeling

58
00:04:15,520 --> 00:04:19,420
Suze: may be an option for you. It's something that you

59
00:04:19,428 --> 00:04:21,299
Suze: probably should look into.

60
00:04:21,838 --> 00:04:24,069
Suze: You know, KT, that's hard for me to say.

61
00:04:24,118 --> 00:04:26,337
KT: I know and you know how I feel about it.

62
00:04:26,419 --> 00:04:27,259
Suze: How do you feel about it?

63
00:04:27,269 --> 00:04:31,109
KT: I don't like bankruptcy on any level but there are

64
00:04:31,118 --> 00:04:34,758
KT: some situations where it's the last resort because look what

65
00:04:34,769 --> 00:04:36,897
KT: it does to credit, look what it does.

66
00:04:37,148 --> 00:04:40,218
Suze: KT, I got news for her if they're calling her

67
00:04:40,968 --> 00:04:45,658
Suze: credit is already ruined, therefore she can't do a balance transfer.

68
00:04:46,480 --> 00:04:49,519
Suze: I know you don't like it, but you really have

69
00:04:49,529 --> 00:04:53,220
Suze: to understand that there are some people for whatever reason,

70
00:04:54,040 --> 00:04:59,290
Suze: get into a situation and it just grows and really

71
00:04:59,299 --> 00:05:03,380
Suze: KT it's not a good thing because if you have

72
00:05:03,390 --> 00:05:07,019
Suze: debt and everything and you stop paying it and then

73
00:05:07,029 --> 00:05:09,058
Suze: all of a sudden it goes to a collector and

74
00:05:09,070 --> 00:05:12,279
Suze: it ends up with the marshal, they can actually garnish

75
00:05:12,290 --> 00:05:13,140
Suze: your wages.

76
00:05:13,540 --> 00:05:17,290
KT: Ok. Next questions from Sandy. Suze, I have a Roth

77
00:05:17,299 --> 00:05:20,940
KT: that I've had for many years. I want to transfer

78
00:05:20,950 --> 00:05:22,859
KT: it to a Schwab brokerage firm.

79
00:05:23,190 --> 00:05:27,570
KT: Do I start the five year limit over again? And

80
00:05:27,589 --> 00:05:30,455
KT: is any new money that I put into the Roth,

81
00:05:30,455 --> 00:05:34,299
KT: would that start its own five year limit? Thanks from

82
00:05:34,309 --> 00:05:36,329
KT: an enthusiastic listener.

83
00:05:36,339 --> 00:05:37,589
Suze: Oh, that should be your quizzy.

84
00:05:39,470 --> 00:05:40,940
KT: I'm not gonna do that quizzy.

85
00:05:41,140 --> 00:05:43,529
Suze: No, because you don't know the answer and because you

86
00:05:43,540 --> 00:05:47,940
Suze: have a can I afford it now as a quizzy. Listen, girlfriend,

87
00:05:47,950 --> 00:05:51,299
Suze: if you already have had a Roth for many years

88
00:05:51,329 --> 00:05:54,040
Suze: and you simply want to transfer it to a Roth

89
00:05:54,049 --> 00:05:58,260
Suze: at another company. No, the five year limit does not

90
00:05:58,269 --> 00:06:02,799
Suze: start over again and any new money you put into

91
00:06:02,809 --> 00:06:03,730
Suze: that Roth.

92
00:06:04,290 --> 00:06:08,690
Suze: It's a contributory Roth obviously does not start the five

93
00:06:08,700 --> 00:06:13,829
Suze: year limit over again. If however, you had a traditional

94
00:06:13,839 --> 00:06:18,609
Suze: IRA and you were converting it to a Roth, then

95
00:06:18,619 --> 00:06:22,209
Suze: the five year starts all over again, but not in

96
00:06:22,220 --> 00:06:25,709
Suze: this case, so good on you. All right.

97
00:06:25,720 --> 00:06:28,940
KT: Next question is from Deb, she said I am retired

98
00:06:28,950 --> 00:06:30,309
KT: and 65

99
00:06:30,880 --> 00:06:37,308
KT: I have 125,000 in my TSP pre-tax. Question, Should I

100
00:06:37,320 --> 00:06:40,320
KT: leave the money in the TSP or move to a

101
00:06:40,329 --> 00:06:45,868
KT: fidelity ira and slowly move to a Roth Ira or

102
00:06:45,880 --> 00:06:50,420
KT: ready for this one? Don't get crazy or buy an annuity,

103
00:06:50,589 --> 00:06:54,070
KT: which was suggested by her financial advisor.

104
00:06:54,570 --> 00:06:57,099
KT: The issue I have with the annuity is it would

105
00:06:57,109 --> 00:07:00,929
KT: be locked in for five or seven years. Wait, the

106
00:07:00,940 --> 00:07:05,609
KT: advisor says, wait until the RMD is required. I have

107
00:07:05,619 --> 00:07:07,799
KT: sufficient pension funds.

108
00:07:08,250 --> 00:07:10,859
Suze: Well, that is the stupidest thing I ever heard. Wait

109
00:07:10,869 --> 00:07:12,339
Suze: till the RMD is required.

110
00:07:12,589 --> 00:07:18,239
KT: That's the stupidest thing from the financial advisor, not from Deb.

111
00:07:18,829 --> 00:07:21,380
Suze: So, Deb, here's the thing.

112
00:07:21,899 --> 00:07:28,790
Suze: You have $125,000 in your TSP. If all of a

113
00:07:28,799 --> 00:07:32,679
Suze: sudden you do an IRA rollover with it to fidelity,

114
00:07:33,049 --> 00:07:37,799
Suze: what are you going to invest that $125,000 in? Who

115
00:07:37,809 --> 00:07:41,790
Suze: is going to advise you how to invest that money?

116
00:07:42,429 --> 00:07:46,130
Suze: Because what you've done over all the years in your

117
00:07:46,140 --> 00:07:49,670
Suze: thrift savings plan is every month or every two weeks,

118
00:07:49,679 --> 00:07:52,470
Suze: you put a little bit in from your paycheck and

119
00:07:52,480 --> 00:07:58,929
Suze: here now you have $125,000. Do I mind if you

120
00:07:58,940 --> 00:08:03,410
Suze: just leave it in the TSP where you're familiar with it?

121
00:08:03,420 --> 00:08:05,250
Suze: I have to tell you I don't,

122
00:08:05,940 --> 00:08:09,790
Suze: but if you feel confident with doing an IRA rollover

123
00:08:09,799 --> 00:08:14,109
Suze: with it and then little by little moving it to

124
00:08:14,119 --> 00:08:19,929
Suze: a Roth IRA. Ok. I don't have a problem with that. However,

125
00:08:19,940 --> 00:08:22,559
Suze: just make sure that you're gonna feel comfortable with what

126
00:08:22,570 --> 00:08:28,079
Suze: to do with $125,000 in terms of an annuity within

127
00:08:28,089 --> 00:08:32,080
Suze: a retirement account. Don't even get me started.

128
00:08:32,710 --> 00:08:37,710
Suze: That is just stupid, stupid, stupid. So, you're not going

129
00:08:37,719 --> 00:08:40,689
Suze: to be doing that? Remember a retirement account is a

130
00:08:40,700 --> 00:08:46,010
Suze: tax free or tax deferred account? And an annuity is

131
00:08:46,020 --> 00:08:50,359
Suze: a tax deferred account. What sense does it make to

132
00:08:50,369 --> 00:08:52,010
Suze: have a tax deferred account

133
00:08:52,380 --> 00:08:57,750
Suze: within a tax free or tax deferred account? Makes none whatsoever.

134
00:08:57,760 --> 00:09:00,039
Suze: You're not doing that. Do you hear me?

135
00:09:00,349 --> 00:09:03,679
KT: Makes sense to the financial advisor who gets a commission?

136
00:09:03,690 --> 00:09:07,549
Suze: Probably 5 to 7% 5 to 7%. I just want

137
00:09:07,559 --> 00:09:08,309
Suze: to say on a

138
00:09:08,359 --> 00:09:13,780
Suze: $125,000 where the money is locked up. We're talking about

139
00:09:13,789 --> 00:09:15,719
Suze: 7000 or more.

140
00:09:17,390 --> 00:09:21,059
KT: Ok. So Suze, this next question is like the million

141
00:09:21,070 --> 00:09:26,760
KT: dollar question for everyone. This is from Tanya. Tanya asks, Suze.

142
00:09:26,890 --> 00:09:30,940
KT: I love this question. Can you explain how people are

143
00:09:30,950 --> 00:09:33,140
KT: able to live off their interest?

144
00:09:33,739 --> 00:09:37,320
KT: Thank you for your purpose in this life. There's no

145
00:09:37,330 --> 00:09:39,849
KT: one I trust more than you when it comes to

146
00:09:39,859 --> 00:09:44,320
KT: my money, Tanya. Give Tanya a little guidance here and

147
00:09:44,330 --> 00:09:45,640
KT: everyone else listening,

148
00:09:45,650 --> 00:09:52,000
Suze: Tanya. That's such a sweet question. Tanya, here's what's interesting.

149
00:09:52,010 --> 00:09:56,000
Suze: You work and you work and you work and you

150
00:09:56,010 --> 00:10:01,210
Suze: make money and you save money and you invest money. Hopefully.

151
00:10:01,219 --> 00:10:02,718
Suze: So that one day

152
00:10:03,190 --> 00:10:08,969
Suze: when you no longer work for money, your money can

153
00:10:08,979 --> 00:10:10,809
Suze: work for you

154
00:10:11,500 --> 00:10:14,979
Suze: and you can save it either in retirement accounts, in

155
00:10:14,989 --> 00:10:19,789
Suze: savings accounts, investing it in the stock market, even investing

156
00:10:19,799 --> 00:10:23,479
Suze: it in a home where eventually you own it outright.

157
00:10:24,260 --> 00:10:28,719
Suze: So, the key, in my opinion, to a successful retirement

158
00:10:28,729 --> 00:10:32,739
Suze: where people can live off their interest is that during

159
00:10:32,750 --> 00:10:36,000
Suze: their working years, they pay down all of their debt,

160
00:10:36,010 --> 00:10:39,460
Suze: they own their car outright, they own their home outright.

161
00:10:39,539 --> 00:10:45,799
Suze: They don't have a lot of expenses. Therefore, they then

162
00:10:45,809 --> 00:10:50,750
Suze: have money that they've accumulated over the years

163
00:10:51,239 --> 00:10:54,400
Suze: and that money is invested in such a way, whether

164
00:10:54,409 --> 00:10:59,039
Suze: it's in treasuries or, you know, they're investing in stocks

165
00:10:59,049 --> 00:11:02,700
Suze: that are paying them dividends of maybe six or 7%

166
00:11:02,710 --> 00:11:03,599
Suze: or more.

167
00:11:04,380 --> 00:11:10,599
Suze: They have investments that generate interest for them and the

168
00:11:10,609 --> 00:11:15,429
Suze: interest that those investments are generating for them happen to

169
00:11:15,440 --> 00:11:21,869
Suze: be more than what their expenses are after taxes. Maybe

170
00:11:21,880 --> 00:11:25,799
Suze: they buy municipal bonds so that it's tax free. So

171
00:11:25,809 --> 00:11:29,770
Suze: that's how it's done over time. And actually I have

172
00:11:29,780 --> 00:11:33,280
Suze: to tell you that's what KT and I are planning

173
00:11:33,289 --> 00:11:33,919
Suze: to do.

174
00:11:34,369 --> 00:11:38,589
Suze: We've accumulated money, it's invested in such a way

175
00:11:38,919 --> 00:11:43,340
Suze: so that when we are no longer generating income from working,

176
00:11:43,599 --> 00:11:46,968
Suze: let's just say all of that stops the amount of

177
00:11:46,979 --> 00:11:51,880
Suze: money we have will generate enough interest, dividends and income

178
00:11:51,890 --> 00:11:57,159
Suze: for us to pay all of our expenses. So that's

179
00:11:57,169 --> 00:12:00,409
Suze: how people are able to live off of their interest.

180
00:12:00,700 --> 00:12:04,459
Suze: So that should be your goal as well. All right,

181
00:12:04,809 --> 00:12:09,169
KT: Suze, next question. KT and Suze. I have taxable bonds

182
00:12:09,179 --> 00:12:13,469
KT: in my Roth. Should I trade them for another investment

183
00:12:13,479 --> 00:12:17,309
KT: in my retirement account. So, I don't know, I don't

184
00:12:17,320 --> 00:12:19,260
KT: know what taxable bonds are.

185
00:12:19,400 --> 00:12:24,880
Suze: So, Kathy... O KT, she has your name. Whenever you

186
00:12:24,890 --> 00:12:27,500
Suze: have a Roth IRA.

187
00:12:28,570 --> 00:12:31,390
Suze: It does not matter. And this is true. Even if

188
00:12:31,400 --> 00:12:35,609
Suze: you had a traditional IRA, it does not matter if

189
00:12:35,619 --> 00:12:39,609
Suze: you have taxable bonds in your account. It does not

190
00:12:39,619 --> 00:12:45,890
Suze: matter because they're held within a tax free or tax

191
00:12:45,900 --> 00:12:51,590
Suze: deferred retirement account. So, no, you should not trade them

192
00:12:51,599 --> 00:12:56,549
Suze: for another investment simply because you think they're taxable

193
00:12:57,150 --> 00:13:01,609
Suze: because that's why you own them in a retirement account.

194
00:13:01,700 --> 00:13:04,530
Suze: So you don't have to pay taxes on them when

195
00:13:04,539 --> 00:13:09,289
Suze: you eventually withdraw the money. So the real question is,

196
00:13:09,299 --> 00:13:12,369
Suze: do you want to still own a bond or is

197
00:13:12,380 --> 00:13:16,010
Suze: there something better for you to be investing that money

198
00:13:16,020 --> 00:13:16,369
Suze: in

199
00:13:16,830 --> 00:13:19,710
Suze: because you could sell it, not pay any taxes on

200
00:13:19,719 --> 00:13:23,130
Suze: it at all and then buy something else that maybe

201
00:13:23,140 --> 00:13:27,520
Suze: fits you better. But no, you don't trade them for

202
00:13:27,530 --> 00:13:31,869
Suze: another investment just because they're taxable. There's no such thing

203
00:13:32,169 --> 00:13:35,929
Suze: in a Roth IRA while it's in there. And if

204
00:13:35,940 --> 00:13:38,309
Suze: you hold it for at least five years and until

205
00:13:38,320 --> 00:13:41,439
Suze: you're 59 and a half, don't worry, you're not gonna

206
00:13:41,450 --> 00:13:44,010
Suze: pay taxes on anything. Girlfriend,

207
00:13:44,659 --> 00:13:50,080
Suze: Right KT. Quizzy time. I'm leaving a little extra time

208
00:13:50,090 --> 00:13:53,809
Suze: for quizzies... the Can I Afford It ones.

209
00:13:54,210 --> 00:13:55,210
KT: I love these.

210
00:13:55,309 --> 00:13:58,200
Suze: Right. And this is where you write in, you ask

211
00:13:58,210 --> 00:14:01,650
Suze: a question and you tell me what it is that

212
00:14:01,659 --> 00:14:05,130
Suze: you wanna buy and I tell you if you can

213
00:14:05,140 --> 00:14:07,039
Suze: afford it or not

214
00:14:07,500 --> 00:14:13,450
Suze: and you write in to Ask Suze Podcast at gmail.com.

215
00:14:13,609 --> 00:14:19,250
Suze: And please, I need to know, write this down everybody,

216
00:14:19,260 --> 00:14:25,039
Suze: your expenses versus your take home income. Do you have

217
00:14:25,049 --> 00:14:29,530
Suze: any debt whatsoever? And what interest rate is it at?

218
00:14:29,890 --> 00:14:33,250
Suze: How much do you have in an emergency fund?

219
00:14:33,549 --> 00:14:36,729
Suze: Do you own money on a home? I need to

220
00:14:36,739 --> 00:14:41,530
Suze: know the specifics. Have you fully funded retirement accounts? What

221
00:14:41,539 --> 00:14:45,729
Suze: do you have really going? So, if you would leave

222
00:14:45,739 --> 00:14:49,890
Suze: out any of those really important things, I can't answer

223
00:14:49,900 --> 00:14:54,130
Suze: if you can afford it or not. All right, KT,

224
00:14:54,140 --> 00:14:58,090
Suze: once again before you answer, the can afford it or not.

225
00:14:58,500 --> 00:15:01,359
Suze: Give everybody a second to think about if they're going

226
00:15:01,369 --> 00:15:04,049
Suze: to approve or deny.

227
00:15:04,890 --> 00:15:09,669
Suze: This is from Lena and I chose it mainly because

228
00:15:09,679 --> 00:15:12,900
Suze: of your twin sister. We call, we nickname her Lena.

229
00:15:13,309 --> 00:15:14,070
Suze: All right.

230
00:15:15,010 --> 00:15:19,690
Suze: Hello? From the land of the midnight sun, from Sweden.

231
00:15:20,559 --> 00:15:21,190
Suze: All right.

232
00:15:21,900 --> 00:15:29,119
Suze: I have seen a diamond ring that costs about $900.

233
00:15:29,200 --> 00:15:30,919
Suze: Write it down. Everybody.

234
00:15:31,630 --> 00:15:35,429
Suze: Lena wants. Are you writing this down, KT? I don't

235
00:15:35,440 --> 00:15:38,270
Suze: see you writing it down right here.

236
00:15:38,280 --> 00:15:39,809
KT: This is my pen clicking.

237
00:15:42,299 --> 00:15:44,330
Suze: Lena wants to buy a ring,

238
00:15:45,070 --> 00:15:49,210
Suze: KT, a diamond ring for $900.

239
00:15:49,219 --> 00:15:49,979
Suze: Ok.

240
00:15:50,719 --> 00:15:53,890
Suze: And she wants to know if she can afford this

241
00:15:53,900 --> 00:15:56,700
Suze: ring to give it to herself.

242
00:15:57,599 --> 00:16:05,340
Suze: Here's her money. Besides my normal monthly expenses of approximately $2500.

243
00:16:05,590 --> 00:16:12,099
Suze: Those are her expenses. Her earnings are about $4200.

244
00:16:12,890 --> 00:16:18,679
Suze: She has absolutely no debt. She pays off her credit

245
00:16:18,690 --> 00:16:24,270
Suze: cards every month in full. She owns her car outright.

246
00:16:24,559 --> 00:16:29,140
Suze: She doesn't have any loans and she rents a small

247
00:16:29,150 --> 00:16:37,099
Suze: house besides that, she has approximately $17,000 in cash,

248
00:16:38,119 --> 00:16:43,900
Suze: $28,000 in stocks outside of a retirement account,

249
00:16:44,830 --> 00:16:51,239
Suze: she has $250,000 in an IRA, a 401k and a

250
00:16:51,250 --> 00:16:58,710
Suze: Roth IRA. That's in total. She has $20,000 in CDs

251
00:16:58,750 --> 00:17:04,060
Suze: at Alliant Credit Union. So that's the amount of money

252
00:17:04,069 --> 00:17:07,979
Suze: that she has. But she goes on to say something

253
00:17:08,130 --> 00:17:11,989
Suze: that I just want all of you to hear because

254
00:17:12,000 --> 00:17:14,569
Suze: it's like, why does she want to buy herself

255
00:17:14,968 --> 00:17:18,629
Suze: a $900 like wedding ring? All right.

256
00:17:19,348 --> 00:17:24,648
Suze: She says I love this ring. I dream of this ring.

257
00:17:25,468 --> 00:17:29,168
Suze: This ring would be my own wedding ring to me.

258
00:17:29,698 --> 00:17:34,708
Suze: Kind of like the wedding ring I never got. Now

259
00:17:34,718 --> 00:17:41,288
Suze: after an awfully long drawn out divorce, I'm completely on

260
00:17:41,298 --> 00:17:46,269
Suze: my own with no relatives or family members alive other

261
00:17:46,279 --> 00:17:49,458
Suze: than my daughter and I am saving and investing my

262
00:17:49,468 --> 00:17:53,769
Suze: money and I rarely shop or go get my hair done.

263
00:17:54,199 --> 00:17:58,130
Suze: My daughter feels I should buy it as she says,

264
00:17:58,140 --> 00:18:03,169
Suze: I never buy anything for myself. Then I think should

265
00:18:03,180 --> 00:18:07,969
Suze: I invest instead of buying a ring or just save

266
00:18:07,979 --> 00:18:10,930
Suze: the $900 for a rainy day.

267
00:18:12,300 --> 00:18:15,349
Suze: I hope you can give me advice on this.

268
00:18:16,060 --> 00:18:20,459
Suze: So can I afford it or not? She's obviously going

269
00:18:20,469 --> 00:18:23,270
Suze: to pay for it out of her cash.

270
00:18:24,359 --> 00:18:29,920
Suze: So can she afford it or not? 2500 in expenses,

271
00:18:29,930 --> 00:18:34,560
Suze: $4200 in income. No debt, credit card is paid in full.

272
00:18:34,569 --> 00:18:38,040
Suze: Owns her car outright, owns a small house for herself

273
00:18:38,050 --> 00:18:43,458
Suze: and her daughter has approximately 17,000 in cash, 28,000 in

274
00:18:43,469 --> 00:18:48,180
Suze: stocks that she can get at 250,000 in retirements, 20,000

275
00:18:48,189 --> 00:18:49,989
Suze: in Alliant on CDs.

276
00:18:50,660 --> 00:18:53,889
Suze: And so there you go. And it's the ring of

277
00:18:53,900 --> 00:18:55,439
Suze: her dreams.

278
00:18:58,020 --> 00:19:01,500
KT: The question is, can she afford it?

279
00:19:01,510 --> 00:19:02,199
Suze: Yes.

280
00:19:02,469 --> 00:19:03,599
KT: I think she can.

281
00:19:03,619 --> 00:19:05,880
Suze: So, do you approve or deny her?

282
00:19:05,890 --> 00:19:09,170
KT: Well, based on what she said, I have to approve

283
00:19:09,180 --> 00:19:13,560
KT: her positive. Yeah, I want to approve her. Absolutely.

284
00:19:13,569 --> 00:19:17,719
Suze: Lena Katie says she would approve you, but here is

285
00:19:17,729 --> 00:19:19,679
Suze: what I would say to you.

286
00:19:20,449 --> 00:19:24,859
Suze: You are approved. However,

287
00:19:25,560 --> 00:19:29,380
Suze: Lena, I just want you to think about something you

288
00:19:29,390 --> 00:19:35,699
Suze: obviously can afford it. An eight month emergency fund is $20,000.

289
00:19:35,709 --> 00:19:39,819
Suze: You're $3000 short of that. However, you have money in

290
00:19:39,829 --> 00:19:43,349
Suze: a Roth. If you spend $900 you're gonna be close

291
00:19:43,359 --> 00:19:47,500
Suze: to $4000 short of an emergency fund. But you have

292
00:19:47,510 --> 00:19:51,619
Suze: enough everywhere else that I'm not worried about that. Let me,

293
00:19:51,630 --> 00:19:54,739
Suze: tell you what I am worried about.

294
00:19:56,150 --> 00:19:59,930
Suze: You're still obviously young, you have a young daughter and

295
00:19:59,939 --> 00:20:03,329
Suze: you're gonna be wearing this ring on your finger.

296
00:20:04,180 --> 00:20:08,040
Suze: And I want you to think about, will this ring

297
00:20:08,050 --> 00:20:11,000
Suze: really make you feel powerful?

298
00:20:11,810 --> 00:20:16,510
Suze: Will this ring really do what you want to do

299
00:20:16,520 --> 00:20:21,569
Suze: for yourself? Emotionally speaking? Will you have a ring on

300
00:20:21,599 --> 00:20:24,389
Suze: and somebody's gonna see you and think, oh she's married

301
00:20:24,800 --> 00:20:26,910
Suze: and then you're gonna have to explain if you get

302
00:20:26,920 --> 00:20:30,310
Suze: interested in this person, why you have a ring on

303
00:20:30,319 --> 00:20:33,329
Suze: your wedding finger? If that's in fact, where you were

304
00:20:33,339 --> 00:20:34,390
Suze: going to wear it.

305
00:20:35,170 --> 00:20:37,579
Suze: So, you can afford it.

306
00:20:38,390 --> 00:20:43,329
Suze: But will it really give you what you feel like

307
00:20:43,339 --> 00:20:48,790
Suze: it will give you or will $900 invested that will

308
00:20:48,800 --> 00:20:51,479
Suze: grow and grow and grow for you

309
00:20:52,290 --> 00:20:56,968
Suze: in the end? Give you a whole lot more because

310
00:20:56,979 --> 00:21:01,000
Suze: a ring is never a symbol of strength, a piece

311
00:21:01,010 --> 00:21:05,410
Suze: of jewelry or anything outside of yourself is never a

312
00:21:05,420 --> 00:21:07,430
Suze: symbol of strength.

313
00:21:08,199 --> 00:21:15,300
Suze: How you feel inside without any earrings, rings, purses, clothes, anything.

314
00:21:16,550 --> 00:21:20,688
Suze: If you can feel strong with nothing,

315
00:21:21,780 --> 00:21:25,469
Suze: then you will feel strong with everything.

316
00:21:26,640 --> 00:21:29,739
Suze: Now, KT, what do you want to say? You can

317
00:21:29,750 --> 00:21:30,920
Suze: disagree with that.

318
00:21:31,560 --> 00:21:34,199
KT: Oh, it's not a matter of disagreeing. I think everything

319
00:21:34,209 --> 00:21:38,800
KT: you said is very true. It's very true. So she

320
00:21:38,810 --> 00:21:42,560
KT: has to weigh in on what decision she wishes to make.

321
00:21:42,569 --> 00:21:45,989
KT: But what was really interesting is being relatively young and

322
00:21:46,000 --> 00:21:48,650
KT: walking around with a ring on her finger. It's kind

323
00:21:48,660 --> 00:21:51,939
KT: of like a, a little bit of a yellow or

324
00:21:51,949 --> 00:21:54,020
KT: red light for any possible,

325
00:21:54,719 --> 00:21:56,380
KT: you know, suitors are interest.

326
00:21:56,390 --> 00:21:59,089
Suze: And that's not to say that like with the wedding

327
00:21:59,099 --> 00:22:02,550
Suze: ring that I wear and KT wears once in a while,

328
00:22:02,560 --> 00:22:06,219
Suze: not all the time, like, because she's too active, it

329
00:22:06,229 --> 00:22:09,399
Suze: means so much to me. I can't tell you the

330
00:22:09,410 --> 00:22:13,958
Suze: little gift around my neck that was given to me

331
00:22:14,010 --> 00:22:18,629
Suze: by somebody in India is probably truthfully the most important

332
00:22:18,640 --> 00:22:20,419
Suze: thing I have.

333
00:22:21,209 --> 00:22:26,869
Suze: But I can't think of anything that I myself bought myself.

334
00:22:27,699 --> 00:22:33,310
Suze: That really means anything to me, KT. Right? So when

335
00:22:33,319 --> 00:22:36,319
Suze: it's a gift from somebody else,

336
00:22:37,780 --> 00:22:40,680
Suze: that gift or that item reminds you of the love

337
00:22:40,689 --> 00:22:42,639
Suze: that was given to you with

338
00:22:43,699 --> 00:22:46,228
Suze: when you buy something for yourself.

339
00:22:47,280 --> 00:22:51,040
Suze: I don't know. Maybe I'm wrong. Maybe it can define you,

340
00:22:51,150 --> 00:22:57,900
Suze: but you still have a little anger over your the ring.

341
00:22:58,000 --> 00:23:00,530
Suze: So for those of you who have a piece of

342
00:23:00,540 --> 00:23:05,420
Suze: jewelry or something and it reminds you of something that precious.

343
00:23:05,540 --> 00:23:09,290
Suze: Usually it's from your mom who left it to you

344
00:23:09,300 --> 00:23:12,689
Suze: or something or your spouse who gave it to you

345
00:23:12,699 --> 00:23:14,170
Suze: and you're still married,

346
00:23:14,680 --> 00:23:18,540
Suze: but very seldom. I don't know when you buy something

347
00:23:18,550 --> 00:23:19,540
Suze: for yourself.

348
00:23:20,400 --> 00:23:24,060
Suze: I don't know. But the bottom line is here, you

349
00:23:24,069 --> 00:23:29,770
Suze: all have to decide that yourself and you absolutely can

350
00:23:29,800 --> 00:23:31,420
Suze: afford it.

351
00:23:32,170 --> 00:23:34,939
Suze: All right. I just don't have anything I've ever bought

352
00:23:34,949 --> 00:23:40,030
Suze: myself that I treasure that I really treasure. Can you

353
00:23:40,040 --> 00:23:40,869
Suze: think of anything?

354
00:23:40,880 --> 00:23:43,939
KT: Well, things in the jewelry category? I know that at

355
00:23:43,949 --> 00:23:47,379
KT: one point in your life and your career, you were

356
00:23:47,494 --> 00:23:53,185
KT: infatuated by watches, complex watches and now she never wears them.

357
00:23:53,194 --> 00:23:57,064
KT: She keeps them safe and sound, has no real interest anymore.

358
00:23:57,094 --> 00:24:00,514
Suze: But they've all quadrupled in value. So they were also

359
00:24:00,525 --> 00:24:02,675
Suze: an investment but it was never

360
00:24:03,150 --> 00:24:05,890
Suze: to make myself feel strong.

361
00:24:05,900 --> 00:24:08,140
KT: I think it was just something you appreciated.

362
00:24:08,290 --> 00:24:12,609
Suze: Right. It's like, I don't know. Anyway. All right, everybody,

363
00:24:12,780 --> 00:24:15,199
Suze: there's only one thing we want you to remember when

364
00:24:15,209 --> 00:24:17,569
Suze: it comes to your money and it is this:

365
00:24:17,680 --> 00:24:19,079
KT: People first.

366
00:24:19,160 --> 00:24:23,180
Suze: Then money, then things. That's a good one for today.

367
00:24:23,189 --> 00:24:29,468
Suze: For the quizz. Right. And anyway, you stay safe and

368
00:24:29,479 --> 00:24:30,650
Suze: if you do all that

369
00:24:31,130 --> 00:24:34,579
Suze: you will be unstoppable.