1 00:00:39,180 --> 00:00:40,040 Suze: January 29th 2023 Welcome everybody to the Women and Money podcast as well as everybody is smart enough to listen. Suze O here and today we will be going to Suze School but I just have to say before I start, 2 00:01:09,850 --> 00:01:10,169 Suze: how excited are you today? I'm so excited about today. And are you wondering why am I so excited? Because I love football and I can't wait to see the games for many of you who have written in, I am rooting for the San Francisco 49ers and that is because for so many years I lived there, but I'm also rooting for the Kansas City Chiefs because I just think Mahomes is the cat's meow 3 00:01:15,810 --> 00:01:16,960 Suze: and that's the scoop. So now you know what I am doing. Next... 4 00:01:23,250 --> 00:01:23,870 Suze: I have to tell you in all the time. I've been doing this for the Suze Orman show. 5 00:01:24,530 --> 00:01:30,510 Suze: I have never gotten as many emails or posts with 6 00:01:30,510 --> 00:01:37,580 Suze: questions that are asking the exact same question across the board. 7 00:01:41,200 --> 00:01:42,250 Suze: And that question is this: Suze, 8 00:02:05,320 --> 00:02:05,950 Suze: If they don't raise the debt ceiling and they default on the debt, does that mean I am going to lose all the money that I have in Treasuries? Series I bonds certificates of deposit? Suze, does that mean I'm going to lose all of my money if they do that? 9 00:02:20,139 --> 00:02:21,609 Suze: I want you to listen to me closely now. Alright, first of all now we're going to Suze School, I just want to talk to you about how much money is in Treasuries 10 00:02:22,669 --> 00:02:26,100 Suze: as of December of last year, 11 00:02:26,810 --> 00:02:32,470 Suze: Do you know that? There was $24 trillion dollars in 12 00:02:32,470 --> 00:02:34,570 Suze: Treasuries at that time. 13 00:02:35,290 --> 00:02:40,270 Suze: Now, who owns those treasuries? I'm going to say that 14 00:02:40,280 --> 00:02:47,470 Suze: amount again, $24 trillion. 15 00:02:48,240 --> 00:02:51,019 Suze: So the majority of it, a very large portion of 16 00:02:51,020 --> 00:02:54,410 Suze: it is held by the foreign governments. 17 00:02:55,460 --> 00:03:01,620 Suze: Foreign governments take their money because they think the money 18 00:03:01,630 --> 00:03:05,929 Suze: in the United States investing in the United States is 19 00:03:05,930 --> 00:03:11,660 Suze: far more stable than their own country. So think about 20 00:03:11,660 --> 00:03:13,070 Suze: that for a second 21 00:03:13,300 --> 00:03:17,820 Suze: and they think about that because Treasuries are backed by 22 00:03:17,820 --> 00:03:22,990 Suze: the full faith and credit of the United States. Those 23 00:03:22,990 --> 00:03:26,740 Suze: words are very strong words 24 00:03:27,470 --> 00:03:33,780 Suze: And so strong that other countries, foreign governments take their 25 00:03:33,780 --> 00:03:37,920 Suze: money and put it here. So a large portion of 26 00:03:37,920 --> 00:03:53,900 Suze: the $24 trillion Federal Reserve, 27 00:03:54,230 --> 00:04:03,460 Suze: State and local governments, mutual fund companies, pension funds, insurance 28 00:04:03,460 --> 00:04:09,309 Suze: companies and holders of savings bonds as well as the 29 00:04:09,310 --> 00:04:16,580 Suze: Social Security Trust fund owns a significant portion of this debt. 30 00:04:17,610 --> 00:04:21,660 Suze: So I just want you to really think about all 31 00:04:21,660 --> 00:04:25,710 Suze: the entities that I just named because it's not just 32 00:04:25,720 --> 00:04:31,110 Suze: will you lose your money, It's everybody in the United 33 00:04:31,110 --> 00:04:36,400 Suze: States of America, every major entity, the pension funds that 34 00:04:36,400 --> 00:04:41,660 Suze: pay all the pensions to all the Workers, Social Security, 35 00:04:41,670 --> 00:04:43,140 Suze: all of that. 36 00:04:43,690 --> 00:04:48,770 Suze: Everybody would go down. I just think about that for 37 00:04:48,770 --> 00:04:49,500 Suze: a second. 38 00:04:50,180 --> 00:04:55,859 Suze: Okay. Next you did ask about certificates of deposits, are 39 00:04:55,860 --> 00:05:03,360 Suze: they safer? There was $154 billion dollars in certificates of 40 00:05:03,360 --> 00:05:07,870 Suze: deposits that were deposited last year. 41 00:05:08,440 --> 00:05:12,600 Suze: Now that also is a whole lot of money and 42 00:05:12,600 --> 00:05:16,690 Suze: so many of you feel safe putting your money rightfully. 43 00:05:16,690 --> 00:05:20,230 Suze: So by the way in a certificate of deposit 44 00:05:38,770 --> 00:05:39,390 Suze: because the F. D. I. C. for banks, the N. C. U. A. for credit unions ensure your deposits up to $250,000 and that's per person. So there are many, many different ways that you can put large sums of money in 45 00:06:03,550 --> 00:06:04,700 Suze: to a certificate of deposit and still be covered with insurance. Now I did an entire Suze School on May 1st of last year. All about how to increase limits on F. D. I. C. and N. C. U. A. insurance. However, oh there's one other entity that happens to invest in Treasuries 46 00:06:18,470 --> 00:06:19,050 Suze: The F. D. I. C. and the N. C. U. A. where do they put the money that needs to be insured for you for your deposits? They buy treasuries with that. 47 00:06:19,560 --> 00:06:25,089 Suze: So now I'm expanding that if they didn't raise the 48 00:06:25,089 --> 00:06:32,230 Suze: debt ceiling, if they defaulted, Do you realize the ramifications 49 00:06:32,240 --> 00:06:33,140 Suze: of that? 50 00:06:33,770 --> 00:06:39,979 Suze: It is beyond anybody's ability to even fathom. So people 51 00:06:39,980 --> 00:06:44,000 Suze: can threaten the congressman that are doing this can say 52 00:06:44,010 --> 00:06:45,800 Suze: we're not gonna do it. We're not going to do. 53 00:06:45,800 --> 00:06:51,770 Suze: Oh give me a break. There is nobody in congress today... 54 00:06:52,470 --> 00:06:56,440 Suze: The majority of people anyway, that would ever ever let 55 00:06:56,450 --> 00:07:00,760 Suze: this happen. And the reason is because of everybody who 56 00:07:00,770 --> 00:07:06,640 Suze: owns this. However, I wanted to make sure. So I 57 00:07:06,640 --> 00:07:10,990 Suze: thought who could I ask? That would be honest with me. 58 00:07:11,060 --> 00:07:13,100 Suze: That would tell me for sure 59 00:07:14,030 --> 00:07:19,140 Suze: what they thought. And I realized, oh my God I 60 00:07:19,140 --> 00:07:21,440 Suze: have to get in touch with Sheila Bair. 61 00:07:47,960 --> 00:07:49,330 Suze: Sheila Bair was the chairman of the F. D. I. C. The Federal Deposit Insurance Corporation for years. And she was the one in charge of everything in 2007, 2008 when there was going to be a run on the banks. So nobody knew better, because remember F. D. I. C. insurance and see you a invested in Treasuries.  Nobody 62 00:08:16,500 --> 00:08:17,210 Suze: knows this area better than Sheila. And we happen to be very good friends. In 2008 when everybody thought there was going to be a run on the banks. Sheila came to me, we did a public service announcement that was blasted everywhere, as to why F. D. I. C. and N. C. U. A. are absolutely safe and sound 63 00:08:37,280 --> 00:08:39,170 Suze: so you don't have to take your money out of banks. You don't have to take your money out of credit unions. You're absolutely safe. Different situation then than what's being threatened now. But this woman knows her stuff. So I wrote her and here's what she wrote me back just yesterday. 64 00:08:59,840 --> 00:09:00,620 Suze: She said Suze. It would be June at the earliest before the treasury would run out of borrowing capacity to meet its debt obligations. I have a high level of confidence that this will be worked out before them. I really think the risk of default is nil. 65 00:09:15,760 --> 00:09:16,800 Suze: There will be a lot of drama. But at the end of the day, the rational people in Congress and they are still in the majority in both parties will make sure the debt limit is raised or suspended to avert a default. 66 00:09:17,170 --> 00:09:21,360 Suze: The short answer is there is no place to hide. 67 00:09:21,380 --> 00:09:25,770 Suze: If the US government defaults, it would be cataclysmic. Which 68 00:09:25,770 --> 00:09:29,290 Suze: is why I have a high level of confidence. It 69 00:09:29,300 --> 00:09:31,630 Suze: just won't happen. 70 00:09:32,490 --> 00:09:34,320 Suze: She then went on to say 71 00:09:55,940 --> 00:09:59,700 Suze: it's a childish idea to play daring games with the debt limit members of Congress doing so should read my book, Billy the Borrowing Blue Footed Booby about the high cost of not paying your debt. It's written for kids. So bottom line, here's what 72 00:10:00,000 --> 00:10:05,069 Suze: Sheila Bair and she is somebody who knows she knows 73 00:10:05,070 --> 00:10:08,370 Suze: what she's talking about. She's dealt with this for years 74 00:10:08,380 --> 00:10:09,360 Suze: in the past. 75 00:10:09,990 --> 00:10:14,429 Suze: The bottom line that Sheila is saying is do not 76 00:10:14,440 --> 00:10:19,819 Suze: let their idle threats scare you. This is something that 77 00:10:19,820 --> 00:10:24,940 Suze: cannot happen because if it happens, it will be in 78 00:10:24,940 --> 00:10:31,170 Suze: her words, cataclysmic meaning everything will go down and truthfully 79 00:10:31,179 --> 00:10:34,740 Suze: there is no place that anybody could put money that 80 00:10:34,740 --> 00:10:37,010 Suze: would not be affected by it. 81 00:10:37,760 --> 00:10:40,360 Suze: So I don't know if that makes you feel any 82 00:10:40,360 --> 00:10:44,209 Suze: better or not. But it just seems to me that 83 00:10:44,210 --> 00:10:48,110 Suze: it makes absolute sense. If you think about it, you 84 00:10:48,110 --> 00:10:52,900 Suze: think about the trillions of dollars, you know, 24 trillion 85 00:10:52,900 --> 00:10:57,540 Suze: and that was as of December last year. Probably more 86 00:10:57,540 --> 00:11:02,600 Suze: right now, people. It's just not going to happen. 87 00:11:03,380 --> 00:11:09,170 Suze: Now, let's talk about Alliant Credit Union and Treasury bills. 88 00:11:09,830 --> 00:11:12,809 Suze: Last week I told all of you that you were 89 00:11:12,809 --> 00:11:15,620 Suze: going to be able to buy Treasury bills through Alliant 90 00:11:15,620 --> 00:11:16,580 Suze: Credit Union 91 00:11:16,890 --> 00:11:20,190 Suze: this week. I'm telling you, No, you will not be 92 00:11:20,200 --> 00:11:20,959 Suze: able to. 93 00:11:20,970 --> 00:11:21,270 KT: Hi Suze! I'm coming to Suzy's school so that I can help everyone understand the real reason why you're not going to be buying Treasury bills through Alliant. 94 00:11:32,450 --> 00:11:34,880 Suze: You don't think I was capable of telling them? 95 00:11:34,880 --> 00:11:36,929 KT: No! It's so complicated everybody that Suze and I looked at each other and said, wait a minute. 96 00:11:51,070 --> 00:11:51,900 KT: The whole beauty of Alliant and Suze's advice is that it's straight up, it's easy to understand and you can just do it set and forget it. And when I try to look at what it's gonna take to open a Treasury bill. I said, Suze, forget it. I'm not going to do this. 97 00:12:12,850 --> 00:12:13,520 Suze: All of you can blame Miss Travis for the reason that we're not going to be doing this. 98 00:12:18,215 --> 00:12:18,765 KT: And you'll thank me because listen to what Suze and Alliant came up with. It's so much better. So much easier. And I can't wait to do it in a couple of weeks. Tell everyone. 99 00:12:35,470 --> 00:12:38,800 Suze: I can't believe this. Everybody alright? So listen to me. Right. We decided not to do it because when KT tried to do it, when we were looking at it, it was just too complicated. She went crazy. And I realized, oh my God, everybody was saying, please figure out how to do it 100 00:12:38,809 --> 00:12:45,400 Suze: at Alliant because everywhere else is just too complicated. All right, 101 00:12:45,400 --> 00:12:48,670 Suze: everybody can we just put a pin in what I 102 00:12:48,670 --> 00:12:52,850 Suze: was saying for one second because I understand very well 103 00:12:52,910 --> 00:12:55,450 Suze: that many of you. I know you, I know you 104 00:12:55,460 --> 00:12:58,990 Suze: you're thinking, what are you talking about? Susie wasn't complicated 105 00:12:58,990 --> 00:13:01,569 Suze: to open up an account of Treasury Direct dot Gov 106 00:13:01,580 --> 00:13:04,839 Suze: or buy Treasuries at my brokerage account. 107 00:13:05,700 --> 00:13:09,860 Suze: Well, you weren't the ones getting the thousands of emails 108 00:13:09,860 --> 00:13:13,650 Suze: that I was getting saying the following, 109 00:13:14,320 --> 00:13:17,689 Suze: Suze, I tried to open up an account to buy 110 00:13:17,690 --> 00:13:21,890 Suze: Treasuries at Treasury Direct dot Gov. But they want something 111 00:13:21,890 --> 00:13:25,770 Suze: called the medallion. I don't even know what a medallion is. 112 00:13:26,200 --> 00:13:31,400 Suze: And so can you help me? Or Suze, I don't 113 00:13:31,400 --> 00:13:34,480 Suze: have a brick and mortar bank 114 00:13:34,770 --> 00:13:40,550 Suze: and therefore I can't find anywhere and anyone that will 115 00:13:40,550 --> 00:13:44,600 Suze: give me a Medallion. So I cannot open up a 116 00:13:44,600 --> 00:13:48,450 Suze: Treasury Direct dot Gov account now for those of you 117 00:13:48,450 --> 00:13:52,270 Suze: who don't know a Medallion is a stamp that a 118 00:13:52,270 --> 00:13:54,439 Suze: bank will give you a brick 119 00:13:54,455 --> 00:13:57,295 Suze: and mortar bank will give you because they need to 120 00:13:57,295 --> 00:14:00,125 Suze: see you in person. You need to prove that you 121 00:14:00,125 --> 00:14:03,304 Suze: are who you are. And normally you also have to 122 00:14:03,304 --> 00:14:06,365 Suze: have an account with them. If you don't have the 123 00:14:06,365 --> 00:14:10,015 Suze: medallion and Treasury Direct dot Gov is asking for it, 124 00:14:10,025 --> 00:14:15,695 Suze: you cannot open up an account with Treasury Direct dot gov. Next, 125 00:14:15,705 --> 00:14:19,515 Suze: many of you are saying Suze, I opened up an 126 00:14:19,515 --> 00:14:22,975 Suze: account at Treasury direct dot gov and bought Series I 127 00:14:22,975 --> 00:14:23,850 Suze: bonds 128 00:14:24,000 --> 00:14:29,480 Suze: but I misplaced my password, my account number, whatever it is. 129 00:14:29,490 --> 00:14:32,010 Suze: And I've been on the phone with them for hours 130 00:14:32,010 --> 00:14:36,000 Suze: and they won't let me in. They won't answer me. So, 131 00:14:36,000 --> 00:14:38,609 Suze: can you help me? And the answer to that was no, 132 00:14:38,610 --> 00:14:42,630 Suze: I can't. Or many of you said to me, Suze, 133 00:14:43,320 --> 00:14:48,070 Suze: I tried to buy Treasury bills through my brokerage account online, 134 00:14:48,080 --> 00:14:52,130 Suze: but I just can't figure it out. And even though 135 00:14:52,130 --> 00:14:55,230 Suze: I would send you instructions, you would write back and go, 136 00:14:55,810 --> 00:15:00,520 Suze: it's just too complicated. I am not buying treasury bills 137 00:15:00,530 --> 00:15:04,950 Suze: or last but not least I have my money at 138 00:15:04,950 --> 00:15:09,210 Suze: Alliant Credit Union. I don't want to open up another 139 00:15:09,210 --> 00:15:13,700 Suze: account anywhere. Please figure out how I can do this 140 00:15:13,710 --> 00:15:18,720 Suze: through Alliant. So I wanted to make it easier for you. Well, 141 00:15:18,720 --> 00:15:19,510 Suze: guess what? 142 00:15:22,230 --> 00:15:22,460 Suze: It would not have been easier for you. So here's what we're doing instead. So much better. Instead of you being able to buy 3 to 6 month treasury bills at Alliant Credit Union. Well, you tell them KT. 143 00:15:48,320 --> 00:15:49,570 KT: So Suze got on the phone with the CEO. They talk all the time. Suze and Alliant are very, very tight. They talk a lot and they try to come up with things that are really great for all of us. So here's what they did. I'm so happy. I can't wait to do it. 144 00:16:08,110 --> 00:16:08,310 KT: Dennis Devine said Suze, I'm going to do something really special for your listeners. And for all of the ultimate opportunity, account holders, we are going to offer a three or six month CD certificate of deposit which will allow them to earn the 145 00:16:17,190 --> 00:16:18,770 KT: same rate at that particular time, they would have earned with a T bill. So bravo Alliant and bravo susie. So I'm so happy. 146 00:16:18,780 --> 00:16:22,170 Suze: Did you all understand what she just said? Easy. It's 147 00:16:22,180 --> 00:16:26,320 Suze: easy and that's all KT cares about. Just so you know. 148 00:16:26,510 --> 00:16:29,690 Suze: So we're not going to be offering Treasury bills but 149 00:16:29,700 --> 00:16:34,430 Suze: you can through your ultimate opportunity savings account starting in 150 00:16:34,430 --> 00:16:38,740 Suze: about a month or so. Be able to purchase what KT? 151 00:16:43,650 --> 00:16:46,000 KT: Certificates of Deposit C. D.s, baby for three or six months or even a year. But 3 to 6 months is 152 00:16:46,000 --> 00:16:47,310 KT: what she wants us all to do. 153 00:16:47,310 --> 00:16:49,570 Suze: Yeah you can purchase any length of time that they 154 00:16:49,570 --> 00:16:52,440 Suze: offer but I do as you know want you into 155 00:16:52,440 --> 00:16:53,120 Suze: short 156 00:16:53,150 --> 00:16:56,860 Suze: term certificates of deposit at Alliant. 157 00:16:56,860 --> 00:16:59,420 KT: She's really she she wants us all to pay attention 158 00:16:59,420 --> 00:17:03,720 KT: to the interest rate trends more than anything. So that's 159 00:17:03,720 --> 00:17:07,090 KT: why the 3-6 is probably the smarter way to go. 160 00:17:07,100 --> 00:17:08,379 KT: So I'm going to do that to. 161 00:17:08,390 --> 00:17:10,159 Suze: KT, are you educating them now? 162 00:17:10,170 --> 00:17:10,960 KT: Yes. 163 00:17:10,970 --> 00:17:12,609 Suze: This is not your role here on Suzy School. 164 00:17:14,580 --> 00:17:16,820 KT: I'll tell you all about it because I will be 165 00:17:16,820 --> 00:17:19,780 KT: one of the first people to buy a six month. 166 00:17:20,350 --> 00:17:22,719 KT: I'm gonna buy a three and a six. 167 00:17:23,369 --> 00:17:25,129 Suze: I'm just looking at her like... 168 00:17:25,140 --> 00:17:28,080 KT: and then and then I'll tell them how easy it is. 169 00:17:28,090 --> 00:17:30,129 KT: I will, I'll tell them how long it took me 170 00:17:30,130 --> 00:17:30,810 KT: to do it. 171 00:17:31,910 --> 00:17:37,580 Suze: Oh God. Anyway, what I really want you all to 172 00:17:37,580 --> 00:17:41,790 Suze: be aware of is that there is a difference between 173 00:17:41,800 --> 00:17:46,720 Suze: treasuries and certificates of deposits. And the main difference I 174 00:17:46,720 --> 00:17:50,520 Suze: want you to understand is this when you have a 175 00:17:50,520 --> 00:17:54,580 Suze: Treasury and it pays you interest. Yeah. You owe taxes 176 00:17:54,580 --> 00:17:57,869 Suze: on the federal level on that interest. But you do 177 00:17:57,869 --> 00:18:01,780 Suze: not have to pay taxes on the state level. 178 00:18:02,770 --> 00:18:07,590 Suze: Got that? For a certificate of deposit. You pay taxes 179 00:18:07,600 --> 00:18:11,850 Suze: on the federal level and the state level. So what 180 00:18:11,850 --> 00:18:15,520 Suze: does that mean? It means for those of you 181 00:18:15,820 --> 00:18:20,870 Suze: who are in a really low income tax bracket or 182 00:18:20,880 --> 00:18:25,090 Suze: you live in a state that doesn't have any state 183 00:18:25,100 --> 00:18:29,100 Suze: income tax like Florida like me and KT, which is 184 00:18:29,100 --> 00:18:32,760 Suze: why she's so anxious to buy three and six month 185 00:18:32,770 --> 00:18:38,380 Suze: certificates of deposits. So if that's your situation 186 00:18:39,280 --> 00:18:44,750 Suze: then all right... you don't have a problem with this. However, 187 00:18:44,790 --> 00:18:48,230 Suze: if you happen to live in a state like New York, 188 00:18:48,240 --> 00:18:52,899 Suze: California where state income tax is over the top, 189 00:18:53,720 --> 00:19:00,170 Suze: then treasury bills would be the way for you to go. 190 00:19:00,570 --> 00:19:04,890 Suze: The point of all of this really is you do 191 00:19:04,890 --> 00:19:07,850 Suze: have an alternative. Now, for many of you, that is 192 00:19:07,850 --> 00:19:10,030 Suze: the way you should go for many of you. You 193 00:19:10,030 --> 00:19:12,410 Suze: may just want to stick with treasuries, but it's no 194 00:19:12,410 --> 00:19:16,060 Suze: big deal. Either way. You have to do what's best 195 00:19:16,070 --> 00:19:17,360 Suze: for you. 196 00:19:17,600 --> 00:19:20,030 KT: Okay, Suze. I'm gonna leave class now. What do you 197 00:19:20,030 --> 00:19:20,830 KT: want to say? 198 00:19:20,840 --> 00:19:25,290 Suze: Goodbye! Alright. So that's what I wanted to tell you 199 00:19:25,300 --> 00:19:29,960 Suze: about The Alliant Credit Union. So now, you know. So 200 00:19:29,960 --> 00:19:32,619 Suze: the one other thing though I do want to tell everybody, 201 00:19:32,619 --> 00:19:36,780 Suze: KT is you've also been asking about when will the 202 00:19:36,780 --> 00:19:38,830 Suze: must have documents go back on, 203 00:19:39,070 --> 00:19:42,340 Suze: sale and they are going to be back on sale 204 00:19:42,350 --> 00:19:46,740 Suze: in approximately one month. So look for him there and 205 00:19:46,740 --> 00:19:52,080 Suze: they will be totally updated. Alright, KT, how do we 206 00:19:52,080 --> 00:19:53,210 Suze: end the podcast? 207 00:19:53,220 --> 00:19:57,650 KT: So we want everyone wherever you go today. Whatever team 208 00:19:57,650 --> 00:20:00,050 KT: is playing today. We're going to create 209 00:20:00,070 --> 00:20:04,139 KT: a peaceful, joyful and loving world. 210 00:20:04,150 --> 00:20:08,150 Suze: Oh God, Why me? I was doing so great. Anyway. 211 00:20:08,160 --> 00:20:09,940 KT: They like when I come into school. 212 00:20:09,940 --> 00:20:14,020 Suze: I'm sure they do. Alright. Everybody, you stay safe. And 213 00:20:14,020 --> 00:20:18,250 Suze: remember everybody don't ever stop yourself from doing something that 214 00:20:18,250 --> 00:20:21,310 Suze: you want to do. All right, bye bye.