1 00:00:45,470 --> 00:00:49,290 Robert: November 14th 2024. Welcome to the Women and Money Podcast. 2 00:00:49,299 --> 00:00:52,150 Robert: As well as everyone. Smart enough to listen. Hi, everybody. 3 00:00:52,159 --> 00:00:55,619 Robert: This is Robert, the producer. So, uh, I got a 4 00:00:55,630 --> 00:00:58,229 Robert: call from, uh, Suze and KT this morning and they 5 00:00:58,240 --> 00:01:00,650 Robert: said they were gonna take a break, uh, this week 6 00:01:00,659 --> 00:01:01,900 Robert: to do... 7 00:01:03,009 --> 00:01:03,979 Robert: Well, you know what? 8 00:01:05,239 --> 00:01:10,539 Robert: They both sounded, uh, so mysterious that, um, who knows 9 00:01:10,550 --> 00:01:14,660 Robert: where they are or, or what they're up to. Um, 10 00:01:14,769 --> 00:01:16,339 Robert: but you know what, I do know, I do know 11 00:01:16,349 --> 00:01:18,419 Robert: it's been a couple of weeks since we got to hear, uh, 12 00:01:18,430 --> 00:01:22,529 Robert: KT's voice, uh, on the podcast. Al although 13 00:01:22,779 --> 00:01:26,019 Robert: if you follow along in the women and Money community app, uh, 14 00:01:26,029 --> 00:01:29,319 Robert: you got to see, uh, the big fish, a picture 15 00:01:29,330 --> 00:01:31,940 Robert: of the big fish that KT caught the other day. So, 16 00:01:31,949 --> 00:01:34,800 Robert: that's cool. But you know what, for this episode? Um, 17 00:01:34,809 --> 00:01:38,119 Robert: and it, it's Thursday. So let's do parts of an 18 00:01:38,129 --> 00:01:42,220 Robert: Ask KT and Suze Anything episode from earlier this year. 19 00:01:42,599 --> 00:01:43,199 Robert: Enjoy. 20 00:01:43,669 --> 00:01:47,569 KT: Suze, sometimes I like to start my day with a 21 00:01:47,580 --> 00:01:50,680 KT: story or not a question, but a thank you. 22 00:01:50,919 --> 00:01:54,099 KT: And this is a great one. This is from Lindsay and... 23 00:01:54,120 --> 00:01:56,620 Suze: Wait, I say something. I think it's great to start 24 00:01:56,779 --> 00:02:01,339 Suze: a podcast or anything with gratitude for anybody. Anything. Why not? 25 00:02:01,349 --> 00:02:04,599 KT: Well, this is a great one. This is gratitude for you, Suze. 26 00:02:04,980 --> 00:02:05,919 Suze: I really love that. 27 00:02:06,160 --> 00:02:10,490 KT: This is from Lindsay. The subject said divorced mom, Millionaire 28 00:02:10,500 --> 00:02:14,880 KT: at 39. Thanks to Suze. Of course, I would pick 29 00:02:14,889 --> 00:02:15,460 KT: this one. 30 00:02:15,910 --> 00:02:19,889 KT: It says hi Suze and KT. Although I have many questions, 31 00:02:19,899 --> 00:02:22,929 KT: this is not a question but a thank you. At 32 00:02:22,940 --> 00:02:29,549 KT: 39 years old, I have a net worth of $1.2 million. 33 00:02:29,710 --> 00:02:33,949 KT: The primary person I have to thank for. This is Suze. 34 00:02:34,179 --> 00:02:36,728 KT: I grew up with a single mom who often did 35 00:02:36,740 --> 00:02:40,089 KT: not have enough money to buy groceries for the week. 36 00:02:40,210 --> 00:02:43,410 KT: And I promised to myself that would never be me. 37 00:02:44,008 --> 00:02:46,529 KT: So then she goes on to tell me her story. 38 00:02:46,538 --> 00:02:48,830 KT: She worked hard, went to a great school to get 39 00:02:48,839 --> 00:02:52,679 KT: a good job. Then said, but without Suze, I would 40 00:02:52,690 --> 00:02:56,449 KT: not have known how to save and invest my money 41 00:02:56,538 --> 00:03:01,829 KT: to accelerate my financial independence. I've been a federal government 42 00:03:01,839 --> 00:03:07,429 KT: employee for almost 20 years. So listen to that people. 43 00:03:07,820 --> 00:03:11,679 KT: She works for the government and she's now worth $1.2 44 00:03:11,690 --> 00:03:15,228 KT: million from investing in saving. So here's what she said. 45 00:03:15,559 --> 00:03:19,109 KT: I remember during multiple tours in the Middle East, I 46 00:03:19,119 --> 00:03:23,320 KT: used to walk in circles around my work location, listening 47 00:03:23,339 --> 00:03:27,359 KT: to the audio recordings of the Suze Orman show. She 48 00:03:27,369 --> 00:03:30,410 KT: said during the past 15 years I got married, had 49 00:03:30,419 --> 00:03:34,559 KT: a child, got divorced, got remarried. I also cared for 50 00:03:34,570 --> 00:03:35,440 KT: my mom 51 00:03:36,419 --> 00:03:40,320 KT: and financially supported her in the last years of her life. 52 00:03:40,529 --> 00:03:43,029 KT: Through all of that. I know that I would be 53 00:03:43,039 --> 00:03:45,880 KT: ok because I had my own wealth to fall back 54 00:03:45,889 --> 00:03:49,460 KT: on and I had the power to make my own decisions. 55 00:03:49,699 --> 00:03:54,160 KT: I had a power and independence. My mom never had. 56 00:03:54,509 --> 00:03:57,490 KT: And while that makes me very sad for my mom, 57 00:03:57,500 --> 00:04:01,960 KT: I'm happy I took her situation and the lessons of 58 00:04:01,970 --> 00:04:06,710 KT: Suze to create the life I want and deserve. Thank 59 00:04:06,720 --> 00:04:09,509 KT: you Suze and KT for all that you do. You've 60 00:04:09,520 --> 00:04:13,410 KT: truly changed my life and the life of my child. 61 00:04:13,600 --> 00:04:17,169 Suze: Now, KT, before we go on and thank you for 62 00:04:17,178 --> 00:04:21,079 Suze: that email, Lindsay, KT. Do you know the one word 63 00:04:21,089 --> 00:04:21,730 Suze: in there 64 00:04:22,279 --> 00:04:26,058 Suze: that made it? So Lindsay could create the life that 65 00:04:26,070 --> 00:04:31,140 Suze: she wanted. Read the one line in that email that 66 00:04:31,149 --> 00:04:33,959 Suze: has the word deserve in it. 67 00:04:34,010 --> 00:04:36,579 KT: I'm happy. I took her situation 68 00:04:36,928 --> 00:04:40,200 KT: and the lessons of Suze to create the life I 69 00:04:40,209 --> 00:04:41,790 KT: want and deserve. 70 00:04:41,799 --> 00:04:44,919 Suze: So the reason everybody that I point that out to 71 00:04:44,928 --> 00:04:51,479 Suze: all of you, including KT, is because you have to 72 00:04:51,488 --> 00:04:55,250 Suze: feel that you are worthy of having the life that 73 00:04:55,260 --> 00:04:55,869 Suze: you want. 74 00:04:56,380 --> 00:05:00,469 Suze: You have to feel that you deserve the life that 75 00:05:00,480 --> 00:05:05,969 Suze: you want. So many times, particularly women. We don't feel deserving. 76 00:05:05,980 --> 00:05:09,339 Suze: We feel everybody else should have everything. It's for them. 77 00:05:09,350 --> 00:05:11,368 Suze: It's not for me, it's for the kids, it's for 78 00:05:11,380 --> 00:05:15,290 Suze: the spouse. It's for everybody else. Every single one of 79 00:05:15,299 --> 00:05:19,700 Suze: you deserves to own the power to control your destiny, 80 00:05:19,709 --> 00:05:23,290 Suze: which is what the Women and Money podcast is all about. 81 00:05:23,299 --> 00:05:24,649 Suze: Next question. KT 82 00:05:25,178 --> 00:05:27,808 KT: OK. This next one is from Suzanne. 83 00:05:28,250 --> 00:05:33,089 KT: She said hi, Suze and KT. My employer recently. 84 00:05:33,100 --> 00:05:36,589 Suze: May I interrupt you for a second. Of course, I can. Right. 85 00:05:36,600 --> 00:05:39,299 Suze: I just, I wanted to say something else about Lindsay. 86 00:05:39,309 --> 00:05:41,309 Suze: I just realized as I was sitting here. 87 00:05:41,559 --> 00:05:42,589 KT: What's that Suze... 88 00:05:42,600 --> 00:05:47,119 Suze: Which is, we've been doing this, at least I've been 89 00:05:47,130 --> 00:05:51,909 Suze: doing this in this arena truthfully for almost 40 years now. 90 00:05:52,559 --> 00:05:55,260 Suze: So one has to ask the question. 91 00:05:55,760 --> 00:05:59,899 Suze: Why do I continue to do? So what is the 92 00:05:59,910 --> 00:06:03,670 Suze: purpose of me continuing to do the podcast? Other things 93 00:06:03,678 --> 00:06:05,790 Suze: that we're probably going to be doing and so on 94 00:06:05,799 --> 00:06:10,329 Suze: and so forth and letters or emails like Lindsay 95 00:06:11,440 --> 00:06:15,488 Suze: is the exact reason why I continue to do what 96 00:06:15,500 --> 00:06:16,299 Suze: I do. 97 00:06:17,079 --> 00:06:19,519 Suze: I just want you to know that your emails when 98 00:06:19,529 --> 00:06:23,179 Suze: you tell me how your life has been transformed, reside 99 00:06:23,190 --> 00:06:27,950 Suze: within my heart and I feel them every moment of 100 00:06:27,959 --> 00:06:28,899 Suze: every day. 101 00:06:29,029 --> 00:06:33,940 KT: That was sweet, Suze. She's getting very softy on us. 102 00:06:33,950 --> 00:06:34,719 Suze: I am not. 103 00:06:34,730 --> 00:06:38,049 KT: She is. Suze Softy I call her like a softy 104 00:06:38,059 --> 00:06:42,089 KT: ice cream cone. So this is from Suzanne. 105 00:06:42,510 --> 00:06:45,269 KT: She goes on to tell me about um that she 106 00:06:45,279 --> 00:06:48,970 KT: and her husband before they met, both had retirement accounts, 107 00:06:48,980 --> 00:06:51,880 KT: but she put much more money in hers. They've been 108 00:06:51,890 --> 00:06:55,690 KT: together 17 years married for 11. And here's what she, 109 00:06:55,700 --> 00:07:00,140 KT: her question is. My employer recently started offering a Roth 110 00:07:00,149 --> 00:07:04,549 KT: 403 B. So I changed my contribution from the pre-tax 111 00:07:04,559 --> 00:07:07,169 KT: 403 B to the Roth, good girl. 112 00:07:07,488 --> 00:07:12,619 KT: My husband's job offers a deferred compensation plan only no 113 00:07:12,630 --> 00:07:16,760 KT: options for a Roth. So she's asking, Suze, rather than 114 00:07:16,769 --> 00:07:21,059 KT: us contributing equally to each of our accounts, would it 115 00:07:21,070 --> 00:07:25,390 KT: make more sense to stop his contribution to his deferred 116 00:07:25,399 --> 00:07:29,239 KT: compensation plan and put as much money as we can 117 00:07:29,359 --> 00:07:31,910 KT: into my Roth 403 B. 118 00:07:32,170 --> 00:07:35,709 KT: That seems to make sense financially. But it makes me 119 00:07:35,720 --> 00:07:40,578 KT: feel selfish watching the balance of my accounts outplace his. 120 00:07:41,250 --> 00:07:43,549 KT: So here you go. What should she do? 121 00:07:43,559 --> 00:07:48,070 Suze: Absolutely do that. And Suzanne, here's the thing. Did you 122 00:07:48,079 --> 00:07:50,570 Suze: hear what you just said in this email? It makes 123 00:07:50,579 --> 00:07:54,630 Suze: me feel selfish. What are you talking about? Did you 124 00:07:54,790 --> 00:07:57,890 Suze: not just hear me say the word deserving? 125 00:07:58,470 --> 00:08:01,619 Suze: If you know you're in a great relationship, if you 126 00:08:01,630 --> 00:08:05,440 Suze: know everything really is how it's supposed to be financially 127 00:08:05,450 --> 00:08:09,380 Suze: emotionally and spiritually between the two of you, then your 128 00:08:09,390 --> 00:08:11,489 Suze: job is for the two of you to make the 129 00:08:11,500 --> 00:08:14,470 Suze: most out of the money that you have. So, in 130 00:08:14,480 --> 00:08:18,690 Suze: my opinion, you should absolutely do that because remember with 131 00:08:18,700 --> 00:08:19,279 Suze: the deferred 132 00:08:19,584 --> 00:08:24,204 Suze: compensation plan, you are just deferring his compensation. So he 133 00:08:24,214 --> 00:08:28,285 Suze: doesn't have to pay taxes on it currently. But eventually 134 00:08:28,295 --> 00:08:31,165 Suze: when he claims it and everything, you'll have to pay 135 00:08:31,174 --> 00:08:35,343 Suze: ordinary income taxes on it. So, actually you should do 136 00:08:35,354 --> 00:08:38,085 Suze: that without a shadow of a doubt. All right. 137 00:08:38,094 --> 00:08:40,684 KT: And I, I think he'll be happy Suzanne 138 00:08:41,109 --> 00:08:44,289 KT: that you're kind of taking charge here. I love that 139 00:08:44,299 --> 00:08:45,369 KT: for both of you. 140 00:08:45,448 --> 00:08:48,879 Suze: Well, I wouldn't say that she's taking charge. She is, 141 00:08:48,908 --> 00:08:53,119 Suze: it's just that she deserves it. She shouldn't feel guilty 142 00:08:53,129 --> 00:08:56,549 Suze: and it's the best financial decision in my opinion, for 143 00:08:56,559 --> 00:08:57,638 Suze: both of them. 144 00:08:57,979 --> 00:08:59,638 KT: Ok. This is from Melissa. 145 00:09:00,390 --> 00:09:03,569 KT: Hey, Suze and KT. Thanks for teaching us so much 146 00:09:03,580 --> 00:09:04,569 KT: over the years. 147 00:09:04,950 --> 00:09:09,598 KT: I learned a lot. I have a question unrelated to finance. 148 00:09:09,809 --> 00:09:13,900 KT: I found out recently that my personal data, address, phone 149 00:09:13,909 --> 00:09:18,080 KT: number age, et cetera are on people search sites and 150 00:09:18,090 --> 00:09:20,809 KT: I don't like it. Is there a way to remove 151 00:09:20,820 --> 00:09:24,359 KT: all personal data from these people search sites? 152 00:09:24,369 --> 00:09:27,400 Suze: It's very difficult because you'd probably have to contact each 153 00:09:27,409 --> 00:09:28,880 Suze: one of them and then it would just go to 154 00:09:28,890 --> 00:09:33,330 Suze: another search site once it's out there. It's truthfully almost 155 00:09:33,340 --> 00:09:34,320 Suze: impossible 156 00:09:34,505 --> 00:09:37,804 Suze: to get it out of being out there. So the 157 00:09:37,815 --> 00:09:41,614 Suze: best way to protect your information is to do a 158 00:09:41,625 --> 00:09:46,775 Suze: credit freeze. We have those, we have those for a 159 00:09:46,784 --> 00:09:51,085 Suze: long time and a credit freeze is nobody can check 160 00:09:51,094 --> 00:09:55,723 Suze: your credit reports or your FICO score including you unless 161 00:09:55,734 --> 00:10:00,444 Suze: you unfreeze your credit freeze. So you would call up 162 00:10:00,455 --> 00:10:03,945 Suze: your credit bureaus and put a credit freeze 163 00:10:04,419 --> 00:10:08,090 Suze: on every one of your credit reports. That would be 164 00:10:08,099 --> 00:10:10,799 Suze: the best way to cut that out. 165 00:10:10,809 --> 00:10:14,400 KT: It would certainly protect her financially speaking. Right, Suze? 166 00:10:14,429 --> 00:10:16,479 Suze: Well, as best as you can. 167 00:10:17,010 --> 00:10:21,319 KT: Next is from Ruth. Dear KT and Suze. I like that. 168 00:10:21,330 --> 00:10:24,059 KT: She starts with KT. I don't know if you... 169 00:10:24,489 --> 00:10:27,119 Suze: Now everybody's gonna write in putting your name first. 170 00:10:27,200 --> 00:10:28,729 KT: I mean, that's the key. 171 00:10:28,820 --> 00:10:32,200 Suze: I'm telling you, you should just write my name first 172 00:10:32,395 --> 00:10:34,645 Suze: and I'll make sure she picks it all ready. 173 00:10:34,655 --> 00:10:37,734 KT: I don't know if you can give me advice or not, 174 00:10:37,744 --> 00:10:38,934 KT: but here it goes. 175 00:10:38,945 --> 00:10:41,434 Suze: I've never had a situation. I couldn't give advice over. 176 00:10:41,445 --> 00:10:42,103 Suze: Go on. 177 00:10:42,114 --> 00:10:45,664 KT: I inherited a car from my parents when they died. 178 00:10:45,674 --> 00:10:47,445 KT: I drive it everywhere. 179 00:10:48,229 --> 00:10:52,539 KT: Ready, Suze. It's 20 years old. I keep up the 180 00:10:52,549 --> 00:10:56,369 KT: maintenance and it runs. Ok. It won't win a beauty contest, 181 00:10:56,599 --> 00:10:58,010 KT: but neither will I. 182 00:10:58,309 --> 00:11:00,849 Suze: I don't know. You might, you both might. 183 00:11:01,039 --> 00:11:04,510 KT: Nostalgia creeps in every time I think of buying a 184 00:11:04,520 --> 00:11:07,340 KT: new car, but I have money saved to buy a 185 00:11:07,349 --> 00:11:08,059 KT: new car. 186 00:11:08,690 --> 00:11:11,599 KT: It would have to be modest. No bells and whistles. So, 187 00:11:11,609 --> 00:11:14,539 KT: what do you think? Should I get over my nostalgia 188 00:11:14,549 --> 00:11:17,979 KT: or should I drive the Saturn into the ground? 189 00:11:17,989 --> 00:11:19,609 Suze: Drive the Saturn into the ground? 190 00:11:19,630 --> 00:11:21,218 KT: So, Sally, wait, 191 00:11:22,919 --> 00:11:27,468 KT: Sally, our car is 11 years old or 13 12 192 00:11:27,479 --> 00:11:30,559 KT: or 13 with like very low mileage. So we keep 193 00:11:30,570 --> 00:11:33,299 KT: it because it runs great and we also do maintenance 194 00:11:33,309 --> 00:11:39,380 KT: very regularly. So, what do you think, Suze run it 195 00:11:39,390 --> 00:11:40,179 KT: into the ground? 196 00:11:40,630 --> 00:11:43,200 Suze: Here's the thing, you have the money to buy a 197 00:11:43,210 --> 00:11:44,968 Suze: new one. Ok. 198 00:11:45,275 --> 00:11:48,664 Suze: If you buy a new one, your car insurance goes up, 199 00:11:48,674 --> 00:11:51,534 Suze: everything will go up. You're gonna have to maintain it 200 00:11:51,544 --> 00:11:54,135 Suze: just like the old one in a certain way. But 201 00:11:54,145 --> 00:11:57,715 Suze: the money that you have to buy the new car 202 00:11:57,864 --> 00:12:02,223 Suze: is where hopefully sitting in an account making you at 203 00:12:02,234 --> 00:12:06,054 Suze: least 4.5 5% interest that you can get at it 204 00:12:06,065 --> 00:12:07,494 Suze: any time you want, 205 00:12:08,059 --> 00:12:11,218 Suze: let that money grow for you while you continue to 206 00:12:11,229 --> 00:12:15,169 Suze: drive this car that really your heart is in. I 207 00:12:15,179 --> 00:12:17,289 Suze: just have to tell you something. We're coming to you 208 00:12:17,299 --> 00:12:20,880 Suze: from Florida right now. So we went somewhere, we parked 209 00:12:20,890 --> 00:12:23,789 Suze: the car, got out of the car and this guy 210 00:12:24,849 --> 00:12:27,169 Suze: and he says, you wanna sell that car? 211 00:12:27,289 --> 00:12:30,200 Suze: That's a beautiful car. Do you wanna sell it? What 212 00:12:30,210 --> 00:12:32,799 Suze: year is that? And we said, how old it was? 213 00:12:32,809 --> 00:12:34,718 Suze: He said, how many miles do you have on it? 214 00:12:34,940 --> 00:12:37,760 Suze: And I said 40 or 50,000. He said, I'll buy it. 215 00:12:38,229 --> 00:12:41,369 Suze: That car looks like it's brand new, which is the 216 00:12:41,380 --> 00:12:44,650 Suze: key everybody to keeping a car for a long time. 217 00:12:45,030 --> 00:12:47,299 Suze: And I said, no, I'm not selling it. He said, 218 00:12:47,309 --> 00:12:48,849 Suze: I'll give you any amount of money you want. 219 00:12:48,859 --> 00:12:51,809 KT: I told him I would sell it. I said how 220 00:12:51,820 --> 00:12:53,489 KT: much you want to pay me for this? 221 00:12:53,500 --> 00:12:57,940 Suze: And I said no, because I'm also nostalgic about that car. 222 00:12:57,960 --> 00:12:59,789 KT: She loves her boat and her car. 223 00:12:59,799 --> 00:13:03,949 Suze: I love them. So I'm gonna keep them until it's 224 00:13:03,960 --> 00:13:06,880 Suze: run into the ground. So 225 00:13:07,510 --> 00:13:08,739 Suze: I get it. Trust me. 226 00:13:08,750 --> 00:13:12,559 KT: All right, next is from Linda and this is a nice... 227 00:13:12,570 --> 00:13:14,330 Suze: Wait, I have to tell you one other thing. So 228 00:13:14,340 --> 00:13:17,640 Suze: he walks away. And what did you say to me, KT? 229 00:13:17,650 --> 00:13:18,719 Suze: Do you remember? 230 00:13:19,390 --> 00:13:20,169 KT: No, 231 00:13:21,150 --> 00:13:24,978 Suze: That's what happens when you get to be 71 or 72. 232 00:13:25,020 --> 00:13:25,909 KT: What did I say to you? 233 00:13:25,919 --> 00:13:28,119 Suze: You said, do you think that he was hitting on 234 00:13:28,130 --> 00:13:28,780 Suze: one of us? 235 00:13:29,390 --> 00:13:32,719 KT: He was flirting with one of us and I looked 236 00:13:32,729 --> 00:13:34,979 KT: at her. I said probably me because I was the 237 00:13:34,989 --> 00:13:37,049 KT: one that was ready to sell him the car. 238 00:13:37,109 --> 00:13:40,400 Suze: And probably KT, because I had a hat and sunglasses 239 00:13:40,409 --> 00:13:41,890 Suze: on and everything. 240 00:13:41,900 --> 00:13:44,770 KT: He was an older guy, good looking man. 241 00:13:44,799 --> 00:13:47,098 Suze: And of course she would have thought it was her. Anyway. 242 00:13:47,109 --> 00:13:47,939 Suze: Go on. 243 00:13:49,140 --> 00:13:51,760 KT: The next question from Linda. And I picked it because 244 00:13:51,770 --> 00:13:55,780 KT: she signed off tired teacher Linda and we love teachers. 245 00:13:55,789 --> 00:14:00,000 KT: But this question's been keeping her awake at night and 246 00:14:00,010 --> 00:14:02,359 KT: she and her husband are about to retire and they 247 00:14:02,369 --> 00:14:05,880 KT: have two main questions. Do we need one year of 248 00:14:05,890 --> 00:14:08,119 KT: an emergency fund or five? 249 00:14:08,510 --> 00:14:09,520 Suze: What's the next question? 250 00:14:09,530 --> 00:14:11,799 KT: And what do you recommend is the best way to 251 00:14:11,809 --> 00:14:14,280 KT: move funds when we need cash? 252 00:14:14,289 --> 00:14:18,039 Suze: All right. So here's what I would tell you, Linda, listen, 253 00:14:18,809 --> 00:14:23,789 Suze: when you go to retire for most of you, most 254 00:14:23,799 --> 00:14:27,989 Suze: of your money is in a retirement account, whether it's 255 00:14:28,000 --> 00:14:31,479 Suze: a Roth retirement account or a traditional retirement account, it 256 00:14:31,489 --> 00:14:35,760 Suze: does not matter. But that's usually where the bulk of 257 00:14:35,770 --> 00:14:40,640 Suze: your money happens to be. And that's also where you 258 00:14:40,650 --> 00:14:46,130 Suze: usually get your monthly income in order to live and 259 00:14:46,140 --> 00:14:47,830 Suze: stay retired. 260 00:14:48,390 --> 00:14:53,010 Suze: But the problem becomes if all of your money happens 261 00:14:53,020 --> 00:14:57,409 Suze: to be invested, whether it's in stocks bonds, whatever it 262 00:14:57,419 --> 00:15:01,659 Suze: may be, when you go to take money out every 263 00:15:01,669 --> 00:15:06,330 Suze: single year, you usually have to sell something to do so. 264 00:15:06,760 --> 00:15:10,340 Suze: But what if the market has crashed at the time 265 00:15:10,349 --> 00:15:13,460 Suze: that you want to do that because it's not always 266 00:15:13,469 --> 00:15:17,090 Suze: that stocks go down and bonds go up or bonds 267 00:15:17,099 --> 00:15:21,820 Suze: go down and therefore stocks go up, sometimes everything can 268 00:15:21,830 --> 00:15:25,979 Suze: go down. So there is a rule of thumb that 269 00:15:25,989 --> 00:15:30,119 Suze: says within a retirement account or even outside of a 270 00:15:30,130 --> 00:15:31,619 Suze: retirement account 271 00:15:32,070 --> 00:15:36,330 Suze: that you have at least 3 to 5 years of 272 00:15:36,340 --> 00:15:40,900 Suze: cash sitting somewhere that you can access. 273 00:16:00,359 --> 00:16:05,690 Suze: That, that money stays there safe and sound why. 274 00:16:06,609 --> 00:16:11,789 Suze: Because when you go to take money out at a time, 275 00:16:11,799 --> 00:16:16,750 Suze: when the markets have crashed, rather than touching stocks and 276 00:16:16,760 --> 00:16:19,770 Suze: mutual funds and ETFs and, or bonds that have gone 277 00:16:19,780 --> 00:16:27,070 Suze: down considerably, you go to your cash reserves to withdraw it. Why? 278 00:16:27,080 --> 00:16:28,500 Suze: 3 to 5 years? 279 00:16:28,770 --> 00:16:32,679 Suze: Because normally it will take from the top of the 280 00:16:32,690 --> 00:16:35,989 Suze: stock market to the bottom of the stock market, back 281 00:16:36,000 --> 00:16:38,700 Suze: up to the top of the stock market again, for 282 00:16:38,710 --> 00:16:44,909 Suze: things to return, usually anywhere from 3 to 5 years. 283 00:16:44,919 --> 00:16:45,630 Suze: So if you really, 284 00:16:45,715 --> 00:16:49,164 Suze: you wanna be on the safe side, it's five years. 285 00:16:49,195 --> 00:16:52,625 Suze: If you wanna just play it so that you have 286 00:16:52,635 --> 00:16:55,734 Suze: at least three years, ok, you can do that as well. 287 00:16:56,044 --> 00:16:59,255 Suze: Maybe you split it and you do four years. But 288 00:16:59,265 --> 00:17:02,034 Suze: that is the first thing I would tell all of 289 00:17:02,044 --> 00:17:05,254 Suze: you so that when you are having to take money 290 00:17:05,265 --> 00:17:08,694 Suze: out of a retirement account and the markets have crashed, 291 00:17:08,785 --> 00:17:11,135 Suze: you leave your stocks alone 292 00:17:11,780 --> 00:17:15,050 Suze: and you take it from the cash. In terms of 293 00:17:15,060 --> 00:17:18,510 Suze: how do you get that cash? Well, the markets are 294 00:17:18,520 --> 00:17:21,760 Suze: quite high right now with certain things and if you 295 00:17:21,770 --> 00:17:26,369 Suze: know that you're gonna be retiring shortly, then you would 296 00:17:26,380 --> 00:17:30,679 Suze: take it from the stocks that either have not performed, 297 00:17:30,689 --> 00:17:34,160 Suze: are not going to perform in your opinion or bad 298 00:17:34,170 --> 00:17:36,900 Suze: investment decisions and just do it from there 299 00:17:37,400 --> 00:17:41,719 Suze: and, or I would probably do it from, if I 300 00:17:41,729 --> 00:17:46,630 Suze: knew I had good investments. All of them have been performing. 301 00:17:46,750 --> 00:17:50,395 Suze: I would do a little bit from each one. All right, 302 00:17:50,395 --> 00:17:50,420 Suze: next KT. 303 00:17:50,430 --> 00:17:55,239 KT: Well, next question, Suze is from Josh. My husband and 304 00:17:55,250 --> 00:17:57,099 KT: I are long time fans. 305 00:17:57,589 --> 00:18:00,229 KT: There is just one place where we have not followed 306 00:18:00,239 --> 00:18:04,780 KT: your advice. We do not have living revocable trust. We 307 00:18:04,790 --> 00:18:08,040 KT: have named each other as beneficiaries on all of our 308 00:18:08,050 --> 00:18:12,310 KT: bank accounts and retirement accounts. We own our home in 309 00:18:12,319 --> 00:18:16,680 KT: joint tenancy with right of survivorship. We had a lawyer 310 00:18:16,689 --> 00:18:17,310 KT: draw up documents 311 00:18:17,895 --> 00:18:22,305 KT: to protect ourselves in case one of us is incapacitated. 312 00:18:22,405 --> 00:18:26,844 KT: We have living wills, health care proxies and powers of 313 00:18:26,854 --> 00:18:30,784 KT: attorney naming each other. Is there any reason left why 314 00:18:30,795 --> 00:18:34,375 KT: we would still want a living revocable trust? And they 315 00:18:34,385 --> 00:18:35,425 KT: don't have children. 316 00:18:35,435 --> 00:18:39,655 Suze: Josh, here's the reason why over all the years that 317 00:18:39,665 --> 00:18:43,625 Suze: I did personal financial planning for people, one on one, 318 00:18:44,260 --> 00:18:47,209 Suze: they would come, they would have the exact same set 319 00:18:47,219 --> 00:18:50,060 Suze: up as you. They would have the power of attorneys 320 00:18:50,069 --> 00:18:53,510 Suze: for finances and things like that. One of them would 321 00:18:53,520 --> 00:18:56,459 Suze: die or one of their parents would die or whatever 322 00:18:56,469 --> 00:18:58,708 Suze: it would be and when they would go to the 323 00:18:58,719 --> 00:19:02,439 Suze: bank or they would go somewhere where they needed that 324 00:19:02,660 --> 00:19:07,680 Suze: the financial institution didn't want to take it because there's 325 00:19:07,689 --> 00:19:11,959 Suze: no way for the financial institution to know if it's 326 00:19:11,969 --> 00:19:13,020 Suze: still valid. 327 00:19:13,339 --> 00:19:17,780 Suze: So maybe you gave your spouse the financial power of 328 00:19:17,790 --> 00:19:20,420 Suze: attorney and then you guys got in a fight and 329 00:19:20,430 --> 00:19:24,159 Suze: you revoked it and she has a piece of paper, 330 00:19:24,170 --> 00:19:26,760 Suze: he has a piece of paper that says this is 331 00:19:26,770 --> 00:19:30,579 Suze: my financial power of attorney. But again, there's no way 332 00:19:30,589 --> 00:19:35,379 Suze: to know in many cases for the financial institution that 333 00:19:35,390 --> 00:19:39,630 Suze: you didn't take it away. When you have a living 334 00:19:39,640 --> 00:19:41,000 Suze: revocable trust 335 00:19:41,410 --> 00:19:45,619 Suze: that assigns a person to be successor trustee in case 336 00:19:45,630 --> 00:19:48,938 Suze: of an incapacity or whatever it may be. When you 337 00:19:48,949 --> 00:19:52,319 Suze: open up an account, you have to give them a 338 00:19:52,329 --> 00:19:58,349 Suze: copy of your trust. So they actually have the copy. 339 00:19:58,359 --> 00:20:01,550 Suze: And if you made a change, you then would go 340 00:20:01,560 --> 00:20:03,670 Suze: and give them the new trust 341 00:20:04,140 --> 00:20:07,810 Suze: if you redid your trust. So for KT and I, 342 00:20:07,819 --> 00:20:10,359 Suze: for instance, when we go and we open up an 343 00:20:10,369 --> 00:20:13,709 Suze: account at a bank or wherever we're doing it, credit 344 00:20:13,719 --> 00:20:16,900 Suze: union or whatever it may be in the name of 345 00:20:16,910 --> 00:20:21,510 Suze: the trust, they need a copy of the trust on file. 346 00:20:21,989 --> 00:20:25,900 Suze: So all the times that I was doing financial planning, 347 00:20:26,140 --> 00:20:30,010 Suze: we ran into more problems with people who thought they 348 00:20:30,020 --> 00:20:33,469 Suze: had done it correctly with power of attorneys. 349 00:20:34,030 --> 00:20:38,390 Suze: The financial institution won't honor it, especially the brokerage firms 350 00:20:38,400 --> 00:20:40,050 Suze: didn't want to honor it. 351 00:20:40,709 --> 00:20:45,050 Suze: I never ran into a problem like this when somebody 352 00:20:45,060 --> 00:20:50,129 Suze: had a living revocable trust. So that's just something for 353 00:20:50,140 --> 00:20:53,869 Suze: you to think about all right up to you. You've 354 00:20:53,880 --> 00:20:57,250 Suze: set up everything as best as you can. Would I 355 00:20:57,260 --> 00:21:01,819 Suze: still do a trust? I have to tell you I would. 356 00:21:01,930 --> 00:21:02,968 Suze: All right, KT. 357 00:21:03,119 --> 00:21:05,369 KT: Ok, Suze. I have one more question. 358 00:21:06,020 --> 00:21:06,770 Suze: Just one? 359 00:21:06,900 --> 00:21:09,228 KT: Yeah. Well, I have lots of questions. 360 00:21:09,719 --> 00:21:12,175 Suze: I'm looking at you and there's a pile of questions. 361 00:21:12,175 --> 00:21:14,339 KT: But we, we don't have time to do all of 362 00:21:14,349 --> 00:21:17,419 KT: these now, we'll do another podcast. All right, dear Suze 363 00:21:17,430 --> 00:21:20,890 KT: and KT my dad passed away almost two months ago. 364 00:21:20,900 --> 00:21:25,389 KT: He was 91. He loved watching CNBC. He would buy 365 00:21:25,400 --> 00:21:27,449 KT: a couple of shares of this and a couple of 366 00:21:27,459 --> 00:21:31,129 KT: shares of that depending upon who was talking about what. 367 00:21:31,589 --> 00:21:36,290 KT: I now have various different kinds of mutual funds specifically 368 00:21:36,300 --> 00:21:40,410 KT: related to mid cap and small cap stock funds. How 369 00:21:40,420 --> 00:21:43,689 KT: do I evaluate how those funds are doing? 370 00:21:44,319 --> 00:21:48,329 KT: So he's asking what does he do and how does 371 00:21:48,339 --> 00:21:52,160 KT: he evaluate how they're doing? So, Angelo just needs some 372 00:21:52,170 --> 00:21:52,900 KT: advice on... his portfolio. 373 00:21:53,099 --> 00:21:58,139 Suze: Angelo. There's a service out there very seriously called Morningstar 374 00:21:58,390 --> 00:22:03,349 Suze: that I really, really love. And on Morningstar and I 375 00:22:03,359 --> 00:22:05,899 Suze: use Morningstar, by the way, you can 376 00:22:06,005 --> 00:22:09,225 Suze: go on it, put in the symbols of the mutual 377 00:22:09,234 --> 00:22:12,985 Suze: fund or the stock that you own and it will 378 00:22:12,994 --> 00:22:16,744 Suze: tell you everything that you need to know about it. 379 00:22:16,765 --> 00:22:19,066 Suze: It will give it a rating, it will tell you 380 00:22:19,076 --> 00:22:23,786 Suze: all the expenses and everything like that. So do yourself 381 00:22:23,796 --> 00:22:27,586 Suze: a favor and check out Morningstar also, you can 382 00:22:27,842 --> 00:22:32,352 Suze: on CNBC and there's a place there online where you 383 00:22:32,362 --> 00:22:34,891 Suze: can put in the symbol and everything will come up. 384 00:22:34,901 --> 00:22:39,370 Suze: There's also Yahoo finance that you can use as well. 385 00:22:39,381 --> 00:22:42,682 Suze: So they're all these services, some that you pay for 386 00:22:42,692 --> 00:22:45,432 Suze: some that are free that it will at least tell 387 00:22:45,442 --> 00:22:49,232 Suze: you and compare how your fund has done 388 00:22:49,699 --> 00:22:54,569 Suze: to the other funds in its category. Just so, you know, 389 00:22:54,660 --> 00:22:58,300 Suze: small cap funds have been one of my favorite for 390 00:22:58,310 --> 00:23:01,160 Suze: the past, oh, I'd say five or six months now, 391 00:23:01,170 --> 00:23:04,629 Suze: maybe even the past year in terms of what I 392 00:23:04,640 --> 00:23:07,560 Suze: think they will do in the future. But check them 393 00:23:07,569 --> 00:23:10,060 Suze: out and you'll get a good idea of what you 394 00:23:10,069 --> 00:23:10,859 Suze: should do. 395 00:23:11,489 --> 00:23:15,680 KT: It's time everybody. It's time, it's time. I love this time. 396 00:23:16,339 --> 00:23:16,719 KT: I do. 397 00:23:16,750 --> 00:23:18,380 Suze: Why would you lie to people? 398 00:23:18,390 --> 00:23:21,079 KT: No, I do love it because I know that one 399 00:23:21,089 --> 00:23:24,140 KT: day I'm just gonna keep getting ding, ding, ding, ding, ding. 400 00:23:24,699 --> 00:23:27,719 KT: Come on, ask me. It's quizzy time, everyone. 401 00:23:27,729 --> 00:23:29,310 Suze: Tell everybody about quizzy time. 402 00:23:29,349 --> 00:23:32,319 KT: Quizzy time is when Suze tries to stump me. 403 00:23:32,329 --> 00:23:34,448 Suze: I don't try to stump you. 404 00:23:34,930 --> 00:23:35,920 KT: You tell them what it is. 405 00:23:36,025 --> 00:23:39,905 Suze: It's not hard to stump you. I try to make 406 00:23:39,915 --> 00:23:43,685 Suze: sure that you understand how everything works so that if 407 00:23:43,694 --> 00:23:47,354 Suze: ever I'm not here and a question is asked or 408 00:23:47,364 --> 00:23:50,805 Suze: you are in a situation that you know how to 409 00:23:50,814 --> 00:23:54,255 Suze: answer it. But the quizzy is never just for KT, 410 00:23:54,265 --> 00:23:55,593 Suze: it's for all of you. 411 00:23:56,150 --> 00:23:58,530 Suze: Wouldn't you all love to get to a place in 412 00:23:58,540 --> 00:24:02,130 Suze: your life where every question that Katie is asking me 413 00:24:02,140 --> 00:24:05,569 Suze: or during quizzy time I'm asking her, you would know 414 00:24:05,579 --> 00:24:09,910 Suze: the answer to it. And that isn't an impossibility. That 415 00:24:09,920 --> 00:24:15,010 Suze: is totally a possibility. And over time it is actually 416 00:24:15,020 --> 00:24:17,989 Suze: a probability. So, there you go. 417 00:24:18,000 --> 00:24:19,130 KT: I'm working on it. 418 00:24:19,729 --> 00:24:23,810 Suze: She most certainly is. Hi, Suze and KT. This is 419 00:24:23,819 --> 00:24:25,170 Suze: from Nicole. 420 00:24:26,109 --> 00:24:30,569 Suze: I've been so enjoying discovering your podcasts and diving into 421 00:24:30,579 --> 00:24:34,819 Suze: the wealth of past episodes. It's like reconnecting with a 422 00:24:34,829 --> 00:24:37,729 Suze: beloved friend. Thank you, my dear Nicole. 423 00:24:38,160 --> 00:24:41,500 Suze: Your books and TV shows set me on a confident 424 00:24:41,510 --> 00:24:46,500 Suze: financial path 15 years ago and I'm thrilled to continue 425 00:24:46,510 --> 00:24:49,290 Suze: learning from you. I know that's not a question, but 426 00:24:49,300 --> 00:24:51,979 Suze: I just so loved that I loved it. Right. It 427 00:24:51,989 --> 00:24:54,869 Suze: was a little ego boost. No problem. Now, on to 428 00:24:54,880 --> 00:24:57,859 Suze: the question that keeps me up at night, 429 00:24:58,410 --> 00:25:02,189 Suze: I've worked my tail off in my career and now 430 00:25:02,199 --> 00:25:08,379 Suze: have vested RSUs at a major global corporation with a 431 00:25:08,390 --> 00:25:17,430 Suze: sizable amount vesting on February 4th, anticipating around $35,000. I 432 00:25:17,439 --> 00:25:19,790 Suze: am 40 years of age. 433 00:25:20,459 --> 00:25:25,739 Suze: So how should we use this $35,000? That is what 434 00:25:25,750 --> 00:25:29,030 Suze: Nicole wants to know KT. She has a mortgage on 435 00:25:29,040 --> 00:25:36,000 Suze: her home of about $467,000. She has $22,000 on an 436 00:25:36,010 --> 00:25:37,119 Suze: auto loan 437 00:25:37,449 --> 00:25:44,989 Suze: as well as 55,000 on a HELOC at 8.5%. She 438 00:25:45,000 --> 00:25:49,599 Suze: says her auto loan and her mortgage are both at 439 00:25:49,609 --> 00:25:54,500 Suze: low interest rates. Your first part of the quizzy is 440 00:25:55,969 --> 00:25:58,839 Suze: what is an RSU? 441 00:25:59,170 --> 00:26:00,920 KT: I don't know. I was trying to figure it out. 442 00:26:00,930 --> 00:26:02,640 KT: It must be a stock something. 443 00:26:03,229 --> 00:26:07,060 KT: It's, it's something that her employer gave her. So it shares. Right. 444 00:26:07,069 --> 00:26:12,458 Suze: So an RSU is a restricted stock unit. That's what 445 00:26:12,469 --> 00:26:16,439 Suze: that stands for. Now, a lot of times everybody, when 446 00:26:16,449 --> 00:26:20,500 Suze: you work for an employer, they will give you stock options, 447 00:26:20,689 --> 00:26:25,060 Suze: which means that you can then exercise those options and 448 00:26:25,069 --> 00:26:27,379 Suze: then convert them to stock, but you have to pay 449 00:26:27,390 --> 00:26:27,849 Suze: for it 450 00:26:28,089 --> 00:26:32,198 Suze: and a better way to get rewarded when you work 451 00:26:32,209 --> 00:26:37,188 Suze: for somebody is a restricted stock unit. While you're in 452 00:26:37,199 --> 00:26:42,229 Suze: your vesting period, meaning your employer has given you the RSU, 453 00:26:42,949 --> 00:26:45,550 Suze: but you haven't vested in it. Maybe it takes you 454 00:26:45,560 --> 00:26:49,689 Suze: one year or five years to vest. They're not worth anything. 455 00:26:49,930 --> 00:26:54,849 Suze: The day that you vest like what Nicole is doing here, 456 00:26:54,859 --> 00:26:57,688 Suze: that's the day that you get the money and they're 457 00:26:57,699 --> 00:27:01,869 Suze: worth something. So, RSUs, first of all are far better 458 00:27:01,880 --> 00:27:06,239 Suze: than stock options. So therefore, if you have a choice 459 00:27:06,250 --> 00:27:09,530 Suze: with your employer, you should do that. So 460 00:27:10,079 --> 00:27:15,129 Suze: now we know that Nicole as of February 4th is 461 00:27:15,140 --> 00:27:22,390 Suze: going to have $35,000 and the quizzy really is. Should 462 00:27:22,400 --> 00:27:25,619 Suze: she put that towards her home mortgage 463 00:27:26,819 --> 00:27:28,000 Suze: her car loan 464 00:27:28,770 --> 00:27:34,109 Suze: both are at low interest rates or a $55,000 HELOC 465 00:27:34,119 --> 00:27:37,949 Suze: home equity line of credit at 8.5%. 466 00:27:39,160 --> 00:27:42,619 KT: Personally, I think I would pay off that HELOC. 467 00:27:43,560 --> 00:27:44,459 Suze: You sure? 468 00:27:44,689 --> 00:27:48,869 KT: I think so. If she's paying 8.5 percent, that's high. 469 00:27:48,880 --> 00:27:49,859 KT: Get rid of it. 470 00:27:49,869 --> 00:27:50,819 Suze: Ding, ding, ding, ding, ding, ding, ding, 471 00:27:51,589 --> 00:27:55,739 KT: Get rid of it. That's a no brainer. Nicole who 472 00:27:55,750 --> 00:27:58,290 KT: wants to pay a HELOC loan for that much money. 473 00:27:58,300 --> 00:27:59,619 KT: Get rid of it, girl. 474 00:27:59,989 --> 00:28:05,000 Suze: And Nicole, that is the correct answer. So first of all, 475 00:28:05,329 --> 00:28:08,280 Suze: given that according to this, you say you're only 40 476 00:28:08,290 --> 00:28:12,630 Suze: years of age, you have time to pay off your mortgage, 477 00:28:12,640 --> 00:28:16,310 Suze: especially if it's at a low interest rates. So I'm 478 00:28:16,319 --> 00:28:18,959 Suze: sure that you will have it paid off within the 479 00:28:18,969 --> 00:28:22,909 Suze: next 25 years since you're only 40 which is usually 480 00:28:22,920 --> 00:28:25,869 Suze: around when people gear things towards retirement, 481 00:28:26,150 --> 00:28:31,170 Suze: your auto loan at a low interest rate 22,000, you 482 00:28:31,180 --> 00:28:34,050 Suze: could pay it all off. But why when you're paying 483 00:28:34,060 --> 00:28:37,688 Suze: a higher interest rate on your home equity line of credit? 484 00:28:37,989 --> 00:28:40,410 Suze: So as you all know, and I have told you 485 00:28:40,420 --> 00:28:43,109 Suze: now over the past year, if you have a home 486 00:28:43,119 --> 00:28:46,810 Suze: equity line of credit, make it your number one priority 487 00:28:46,869 --> 00:28:49,209 Suze: to pay that off 488 00:28:49,800 --> 00:28:54,040 Suze: after your credit cards, of course. So that brings us 489 00:28:54,050 --> 00:28:57,280 Suze: to the end of another what, KT? 490 00:28:57,459 --> 00:28:59,660 KT: Ask KT and Suze Anything podcast. 491 00:28:59,670 --> 00:29:02,349 Suze: What is it that we want People to know that 492 00:29:02,359 --> 00:29:04,790 Suze: there's only one thing that matters when it comes to 493 00:29:04,800 --> 00:29:06,869 Suze: their money and it is what, KT? 494 00:29:06,880 --> 00:29:08,219 KT: People first. 495 00:29:08,469 --> 00:29:09,319 Suze: Then money. 496 00:29:09,329 --> 00:29:10,380 KT: Then things, 497 00:29:10,390 --> 00:29:13,099 Suze: Now you stay safe and if you do that, everybody, 498 00:29:13,349 --> 00:29:17,219 Suze: you will be what? Unstoppable.