1 00:00:33,689 --> 00:00:37,279 Suze: November 16th, 2023. 2 00:00:37,659 --> 00:00:41,299 KT: It's almost Thanksgiving. I'm going to say that for the 3 00:00:41,310 --> 00:00:45,279 KT: rest of November. I love Thanksgiving. So do you 4 00:00:45,348 --> 00:00:48,459 Suze: I know but want to know something. Everybody, first of all, 5 00:00:48,470 --> 00:00:51,060 Suze: welcome to the Women and Money podcast as well as 6 00:00:51,069 --> 00:00:53,099 Suze: everybody smart enough to listen. 7 00:00:53,389 --> 00:00:56,950 Suze: This is KT and Suze here for the ask KT 8 00:00:56,959 --> 00:00:57,860 Suze: and Suze, 9 00:00:57,869 --> 00:01:00,540 KT: anything, anything, anything. 10 00:01:00,630 --> 00:01:04,569 Suze: And also we're gonna tell you anything, anything, anything. This 11 00:01:04,580 --> 00:01:09,169 Suze: is one of the very first Thanksgiving that we are 12 00:01:09,180 --> 00:01:15,889 Suze: not having on the island with the entire family coming. 13 00:01:16,569 --> 00:01:17,980 Suze: How do you feel about that, KT? 14 00:01:17,989 --> 00:01:24,910 KT: Terrible, terrible. I love that Thanksgiving. But listen, everyone, our 15 00:01:24,919 --> 00:01:27,848 KT: family as well as your families all have to tighten 16 00:01:27,860 --> 00:01:33,720 KT: the belt sometimes and it's become extremely expensive, extremely difficult 17 00:01:33,730 --> 00:01:35,150 KT: to find space 18 00:01:35,434 --> 00:01:39,385 KT: for everyone. So everyone this year decided to take a 19 00:01:39,394 --> 00:01:43,114 KT: little break and have their own little family Thanksgiving. 20 00:01:43,205 --> 00:01:46,884 Suze: And also what's happened is as, the kids have gotten older, 21 00:01:46,894 --> 00:01:50,785 Suze: the boyfriend, the girl, they have Children, the 22 00:01:50,845 --> 00:01:51,974 KT: grandchildren, 23 00:01:52,194 --> 00:01:54,004 Suze: the whole thing. So 24 00:01:54,440 --> 00:01:56,260 Suze: alright we're just going to have to figure out 25 00:01:56,269 --> 00:02:00,199 KT: what we're waiting for one of them to invite us. 26 00:02:00,569 --> 00:02:02,860 Suze: So it's just going to be you me and Colo. 27 00:02:03,419 --> 00:02:04,139 Suze: Yeah baby 28 00:02:04,599 --> 00:02:06,290 KT: And my brother Johnny maybe. 29 00:02:07,000 --> 00:02:09,100 Suze: No he's gonna come for Christmas, 30 00:02:09,288 --> 00:02:11,100 KT: he's gonna come Thanksgiving too 31 00:02:12,538 --> 00:02:13,059 Suze: for both. 32 00:02:14,788 --> 00:02:17,740 KT: So here we go. So Suze, the first email I 33 00:02:17,750 --> 00:02:22,940 KT: have is a sad one, but one that happens in life. Hi, Suze. 34 00:02:22,949 --> 00:02:26,809 KT: I'm trying to help a family friend who recently tragically 35 00:02:26,820 --> 00:02:30,750 KT: lost her son in a car accident. He was only 36 00:02:30,758 --> 00:02:32,698 KT: 26 years old. 37 00:02:33,589 --> 00:02:36,889 KT: Is there a way to know if he had life insurance? 38 00:02:36,899 --> 00:02:39,460 KT: He was talking to his mom a few weeks before 39 00:02:39,470 --> 00:02:43,079 KT: the accident and he said, mom, do you have any 40 00:02:43,089 --> 00:02:46,860 KT: life insurance? And she said, no, we don't. And he said, oh, 41 00:02:46,869 --> 00:02:50,038 KT: I took care of you guys. So the mom thinks 42 00:02:50,050 --> 00:02:54,050 KT: that he purchased an insurance policy on himself. 43 00:02:54,500 --> 00:02:57,519 KT: And when we asked at his work, since he just 44 00:02:57,529 --> 00:03:00,940 KT: joined the company less than a month ago, he wasn't 45 00:03:00,949 --> 00:03:05,638 KT: el eligible for any benefits yet. So the family's trying 46 00:03:05,649 --> 00:03:09,300 KT: to find out if he purchased a private short term 47 00:03:09,309 --> 00:03:12,440 KT: life insurance. And they're asking you, Suze, where do they 48 00:03:12,449 --> 00:03:13,809 KT: go to find out? 49 00:03:13,850 --> 00:03:15,299 Suze: Sadly, I know 50 00:03:15,660 --> 00:03:18,470 Suze: and the reason that I know is that so many 51 00:03:18,479 --> 00:03:22,960 Suze: people over the past years have written in this exact 52 00:03:22,970 --> 00:03:27,470 Suze: same question. There's so many ways that you can try 53 00:03:27,479 --> 00:03:31,869 Suze: to find out, go through his bank records, go through 54 00:03:31,880 --> 00:03:35,559 Suze: his charges on credit cards or whatever it may be 55 00:03:35,570 --> 00:03:37,779 Suze: that you probably have access to 56 00:03:38,320 --> 00:03:42,729 Suze: and c are there any charges or payments to any 57 00:03:42,740 --> 00:03:45,779 Suze: insurance company? That's number one. However, 58 00:03:46,429 --> 00:03:51,009 Suze: the best way truthfully to do it is to contact 59 00:03:51,029 --> 00:03:55,800 Suze: the National Association of Insurance Commissioners NAIC. 60 00:03:58,179 --> 00:04:05,880 Suze: and they offer what's called a free life policy locator tool. 61 00:04:07,449 --> 00:04:11,539 Suze: So given that you've written in, I have sent you 62 00:04:11,550 --> 00:04:15,750 Suze: a link directly to them for those of you who 63 00:04:15,759 --> 00:04:19,200 Suze: aren't lucky enough to get an email directly from me. 64 00:04:19,279 --> 00:04:23,480 Suze: It's E-A-P-P-S dot 65 00:04:25,670 --> 00:04:31,238 Suze: N A IC dot org. So you might want to 66 00:04:31,250 --> 00:04:36,730 Suze: check that, but it's the National Association of Insurance Commissioners. 67 00:04:37,160 --> 00:04:43,179 Suze: You would always contact the insurance commissioner office in your state. 68 00:04:43,260 --> 00:04:46,419 Suze: But the easiest way to do it is how I 69 00:04:46,428 --> 00:04:48,459 Suze: just said to do so. 70 00:04:48,899 --> 00:04:52,149 KT: Remember you found, um, a policy on my dad a 71 00:04:52,160 --> 00:04:55,760 KT: few little ones that he had bought years ago too. 72 00:04:56,130 --> 00:04:58,559 KT: And my mother was like, she hit the jackpot. She 73 00:04:58,570 --> 00:05:02,920 KT: couldn't believe it. Suze found so many things that my 74 00:05:02,928 --> 00:05:07,040 KT: dad did on behalf of his family that he just 75 00:05:07,049 --> 00:05:10,399 KT: probably put in files and never really, they didn't have 76 00:05:10,410 --> 00:05:13,959 KT: computers and everything organized very well back then. 77 00:05:14,220 --> 00:05:16,808 KT: But Suze found quite a bit of money. 78 00:05:17,170 --> 00:05:19,969 Suze: Well what was interesting about that? Everybody, which is why it 79 00:05:19,980 --> 00:05:23,920 Suze: is so important that you stay organized and you don't 80 00:05:23,928 --> 00:05:27,899 Suze: keep what you're doing or your money a secret is 81 00:05:27,910 --> 00:05:30,000 Suze: that KT lost her papa. 82 00:05:30,809 --> 00:05:33,359 Suze: And then we would go visit her mother and her 83 00:05:33,369 --> 00:05:38,118 Suze: mother was depressed because her mother really only thought she had, 84 00:05:38,410 --> 00:05:39,600 Suze: what was it? A few 85 00:05:40,420 --> 00:05:40,690 KT: A thousand dollars to live on. 86 00:05:42,579 --> 00:05:44,640 Suze: And you can tell that she didn't want to be 87 00:05:44,649 --> 00:05:48,459 Suze: dependent on us or anybody else. And she was very 88 00:05:48,470 --> 00:05:49,579 Suze: sad about it. 89 00:05:49,880 --> 00:05:54,589 Suze: So I spent the night going through boxes and boxes 90 00:05:54,600 --> 00:05:57,929 Suze: because one good thing her mother did was she kept, 91 00:05:57,940 --> 00:06:02,380 Suze: kept everything, everything from God knows how many years back. 92 00:06:03,040 --> 00:06:07,599 Suze: And as I was going through these boxes, I found 93 00:06:07,609 --> 00:06:11,160 Suze: clues of certain things that led me from one thing 94 00:06:11,170 --> 00:06:14,040 Suze: to another to make a very long story short. 95 00:06:15,130 --> 00:06:24,559 Suze: I found $120,000 of money that her mama didn't even 96 00:06:24,570 --> 00:06:29,019 Suze: know that she had, that papa had left for her. 97 00:06:29,428 --> 00:06:32,190 Suze: And all of a sudden when we found that and 98 00:06:32,200 --> 00:06:36,208 Suze: she had that kind of money, which was a fortune 99 00:06:36,299 --> 00:06:37,169 Suze: for her, 100 00:06:37,839 --> 00:06:43,260 Suze: her whole demeanor, her whole outlook on life changed. She 101 00:06:43,269 --> 00:06:46,570 Suze: was happy. She was able to write $50 checks to 102 00:06:46,579 --> 00:06:51,549 Suze: her grandkids. She was just so happy. So it makes 103 00:06:51,559 --> 00:06:56,130 Suze: sense to save records or at least know where your 104 00:06:56,140 --> 00:06:57,880 Suze: money is. All right, KT. 105 00:06:58,309 --> 00:07:01,058 KT: Ok. Next question is from Chris. 106 00:07:01,540 --> 00:07:05,519 KT: Hi, Suze. So grateful for all you do. We're in 107 00:07:05,529 --> 00:07:12,579 KT: our sixties and we've inherited a diversified portfolio worth around $300,000. 108 00:07:12,820 --> 00:07:17,359 KT: We've put about 20% in a 4% yield savings account. 109 00:07:17,720 --> 00:07:21,109 KT: Much of the rest is in stocks and some bonds. 110 00:07:21,290 --> 00:07:25,079 KT: Given all you've been saying about treasuries and being able 111 00:07:25,089 --> 00:07:29,179 KT: to get 5% plus yields. Why should we have stocks 112 00:07:29,190 --> 00:07:32,589 KT: that don't do as well? Why not put everything in 113 00:07:32,600 --> 00:07:38,399 KT: T bills, notes and bonds? Do you agree? Ok. Let's 114 00:07:38,410 --> 00:07:39,579 KT: tell Chris why. 115 00:07:39,730 --> 00:07:42,579 Suze: Here's the thing, Chris over time. 116 00:07:43,040 --> 00:07:46,980 Suze: it is possible for you right now, especially if the 117 00:07:46,989 --> 00:07:50,220 Suze: market goes down for you to be able to get 118 00:07:50,230 --> 00:07:56,940 Suze: really great quality stocks that are paying 5,6, 7 or 8% 119 00:07:56,950 --> 00:08:01,459 Suze: or more, believe it or not, in terms of dividends. 120 00:08:01,970 --> 00:08:05,619 Suze: I don't know how old you are but you never 121 00:08:05,630 --> 00:08:11,730 Suze: want all of your money in one type of an investment. 122 00:08:11,920 --> 00:08:16,570 Suze: You want a mix between bills, notes and bonds. You 123 00:08:16,579 --> 00:08:20,059 Suze: want a mix between the types of stocks or exchange 124 00:08:20,070 --> 00:08:22,220 Suze: traded funds that you have 125 00:08:22,450 --> 00:08:26,119 Suze: so that you have true diversification. That doesn't mean that 126 00:08:26,130 --> 00:08:28,670 Suze: you can't have a lot of your money, let's say 127 00:08:28,679 --> 00:08:32,630 Suze: in the technology area, but in different stocks or whatever 128 00:08:32,640 --> 00:08:37,549 Suze: it may be. But I want you to be diversified, 129 00:08:37,559 --> 00:08:43,070 Suze: especially if you're younger because over time, you will make 130 00:08:43,080 --> 00:08:46,169 Suze: more money in the stock market, 131 00:08:46,539 --> 00:08:50,830 Suze: especially in stocks that pay dividends. If you reinvest the 132 00:08:50,840 --> 00:08:55,960 Suze: dividends over time, that will be most likely a better 133 00:08:55,969 --> 00:09:01,460 Suze: investment than treasury bills because once interest rates start to 134 00:09:01,469 --> 00:09:03,679 Suze: go down, it is possible 135 00:09:03,780 --> 00:09:07,030 Suze: and those bills mature. In fact, it's not possible. It's 136 00:09:07,039 --> 00:09:11,440 Suze: probable there will come a time when those interest rates 137 00:09:11,450 --> 00:09:14,489 Suze: could go way back down again. Remember there was a 138 00:09:14,500 --> 00:09:18,250 Suze: time when savings accounts as well as treasury bills short 139 00:09:18,260 --> 00:09:20,869 Suze: term were paying nothing. 140 00:09:21,599 --> 00:09:26,039 Suze: Obviously, when I tell you, if you were to put 141 00:09:26,049 --> 00:09:30,260 Suze: a little bit into 30 year treasury bonds, once they 142 00:09:30,270 --> 00:09:34,380 Suze: go above 5% they could even go higher. So just 143 00:09:34,390 --> 00:09:38,320 Suze: little amounts, if interest rates start to go down, then 144 00:09:38,330 --> 00:09:41,939 Suze: the value of those bonds will go up and probably 145 00:09:41,950 --> 00:09:44,780 Suze: you'll be able to sell those for a nice capital gain. 146 00:09:45,150 --> 00:09:49,150 Suze: So, diversification is the key here. All right, KT. 147 00:09:49,539 --> 00:09:53,000 KT: Ok. Next question is from Beth. Hi, Suze and KT. 148 00:09:53,010 --> 00:09:57,108 KT: Am I missing something? I'm trying to open an Alliant 149 00:09:57,119 --> 00:10:01,210 KT: Savings Account, but I'm not eligible due to not belonging 150 00:10:01,219 --> 00:10:05,770 KT: to an affiliate partnership. I clicked on your link provided 151 00:10:05,780 --> 00:10:10,760 KT: all of my personal information, including my social security, but 152 00:10:10,770 --> 00:10:13,909 KT: I cannot go any further as you must 153 00:10:14,219 --> 00:10:17,849 KT: answer how you are eligible to open an account with Alliant. 154 00:10:19,169 --> 00:10:23,140 KT: Did I miss something you did? Yes you did Beth. Suze's gonna tell 155 00:10:23,150 --> 00:10:25,358 KT: you it's super easy, Beth. 156 00:10:26,150 --> 00:10:30,770 Suze: So Beth, I would never talk about an investment or 157 00:10:30,780 --> 00:10:33,059 Suze: a savings account or a place for you to put 158 00:10:33,070 --> 00:10:37,419 Suze: your money where some of you would be eligible and 159 00:10:37,429 --> 00:10:39,199 Suze: some of you would not be 160 00:10:39,700 --> 00:10:44,919 Suze: every single person in the United States of America is 161 00:10:44,929 --> 00:10:51,598 Suze: eligible for an Alliant Ultimate Opportunity savings account or anything, 162 00:10:51,609 --> 00:10:54,770 Suze: the CDs that they're being offered there, which are fabulous 163 00:10:54,780 --> 00:10:58,609 Suze: rates right now. Right, especially for the 12 month and 164 00:10:58,619 --> 00:11:02,000 Suze: the 18 month one. But here's how you do it. 165 00:11:02,510 --> 00:11:07,489 Suze: If you don't belong to any of those affiliates or partnerships, 166 00:11:07,500 --> 00:11:13,209 Suze: keep reading carefully because then what happens is you're allowed 167 00:11:13,219 --> 00:11:16,150 Suze: to be a member of Alliant Credit Union 168 00:11:16,570 --> 00:11:22,049 Suze: by simply joining... I think it's Foster To Success, something 169 00:11:22,059 --> 00:11:25,799 Suze: like that, right? It's right there for you. And Alliant 170 00:11:25,960 --> 00:11:31,960 Suze: will pay the $5 to that organization for you then 171 00:11:31,969 --> 00:11:33,968 Suze: to be a member of Alliant 172 00:11:34,229 --> 00:11:38,689 Suze: Credit Union. So it doesn't cost you anything and then 173 00:11:38,700 --> 00:11:42,049 Suze: you are a member and then you could take advantage 174 00:11:42,059 --> 00:11:45,599 Suze: of the accounts there. And since I'm talking about it 175 00:11:45,609 --> 00:11:49,690 Suze: right now, everybody, please remember you only have 'till the 176 00:11:49,700 --> 00:11:51,770 Suze: end of this year 177 00:11:52,460 --> 00:11:56,348 Suze: to open up an ultimate opportunity savings account for your 178 00:11:56,359 --> 00:12:01,098 Suze: kids and teens where they put in $100 a month 179 00:12:01,250 --> 00:12:04,849 Suze: every month for 12 consecutive months and then they get 180 00:12:05,039 --> 00:12:09,358 Suze: $100 plus whatever interest rate it is that Alliant happens 181 00:12:09,369 --> 00:12:10,880 Suze: to be paying at that time, 182 00:12:11,140 --> 00:12:17,319 Suze: that's approximately a 16% return on their money. You can 183 00:12:17,330 --> 00:12:21,780 Suze: only do that. However, if you yourself have an Ultimate 184 00:12:21,789 --> 00:12:26,580 Suze: Opportunity savings account, if you don't, you should have one 185 00:12:26,590 --> 00:12:31,010 Suze: as well and make finances a family affair. And again, 186 00:12:31,020 --> 00:12:31,280 Suze: for the 187 00:12:31,369 --> 00:12:35,080 Suze: those of you who it's too complicated to do treasuries 188 00:12:35,090 --> 00:12:39,549 Suze: or whatever that may be, they're 12 and 18 month 189 00:12:39,559 --> 00:12:45,830 Suze: certificates of deposits are fabulous. So take a look at those. 190 00:12:45,840 --> 00:12:51,479 Suze: You do. So by going to my, Alliant A L L I A N T 191 00:12:53,690 --> 00:12:58,289 Suze: dot com, my Alliant com. And you'll see my little 192 00:12:58,299 --> 00:13:02,099 Suze: face right there. And the choices that you can make. 193 00:13:02,619 --> 00:13:06,820 KT: This  next question is from Sally. She's about 70 odd years old. 194 00:13:07,049 --> 00:13:12,590 KT: She owes approximately 31,000 in credit card debt and she's 195 00:13:12,599 --> 00:13:16,539 KT: working part time. She said which physically is about all 196 00:13:16,549 --> 00:13:17,460 KT: I can manage. 197 00:13:17,969 --> 00:13:22,228 KT: She also gets a small social security check, but Sally 198 00:13:22,239 --> 00:13:26,489 KT: wants to stop working because she's got a grandchild that 199 00:13:26,500 --> 00:13:29,510 KT: she would like to take care of so the parents 200 00:13:29,520 --> 00:13:33,969 KT: can continue working. A brand new grandchild. Is there any hope... 201 00:13:34,219 --> 00:13:37,070 KT: so Suze, think about this. What do you think she 202 00:13:37,080 --> 00:13:40,950 KT: should do? I think this is a brilliant, brilliant idea 203 00:13:41,659 --> 00:13:42,609 Suze: That you have? 204 00:13:43,200 --> 00:13:44,569 KT: Want me to tell you my idea? 205 00:13:44,669 --> 00:13:45,500 Suze: It's gonna be the same as mine. 206 00:13:46,109 --> 00:13:53,289 KT: So the parents should be paying Sally for childcare. If listen, everyone, 207 00:13:53,460 --> 00:13:57,590 KT: all of our friends that have kids or grandchildren, it's 208 00:13:57,599 --> 00:13:59,890 KT: a fortune for childcare. 209 00:14:00,270 --> 00:14:03,789 KT: And if they pay Sally even a little less than 210 00:14:03,799 --> 00:14:07,099 KT: they would be paying out on the open market. Guess what? 211 00:14:07,260 --> 00:14:10,419 KT: That credit card debt could go away before she blinks. 212 00:14:10,570 --> 00:14:15,770 KT: Sally can stop working. Enjoy the grandchild, parents will feel 213 00:14:15,780 --> 00:14:19,869 KT: safe because they know who the baby's with. Right? 214 00:14:19,880 --> 00:14:21,049 Suze: However, 215 00:14:21,479 --> 00:14:24,750 Suze: the only thing I disagree there with you, KT is, 216 00:14:24,780 --> 00:14:29,679 Suze: Sally also has to take care of herself and she 217 00:14:29,690 --> 00:14:34,929 Suze: has credit card debt, which means even with her working, 218 00:14:35,039 --> 00:14:40,570 Suze: she's living beyond her means. So that's... Sally, you have 219 00:14:40,580 --> 00:14:45,039 Suze: to think about that. Why do you have credit card debt? 220 00:14:45,049 --> 00:14:47,859 Suze: What have you been spending money on? 221 00:14:48,119 --> 00:14:51,619 Suze: So the real key here is you have to understand 222 00:14:51,690 --> 00:14:54,700 Suze: because we're the exact same age essentially as you. 223 00:14:55,520 --> 00:15:00,469 Suze: And if your income stops, even though you're working part 224 00:15:00,479 --> 00:15:04,619 Suze: time because that's all you can physically handle here. It's 225 00:15:04,630 --> 00:15:08,270 Suze: how are you going to really get by? So we 226 00:15:08,280 --> 00:15:11,619 Suze: have to have a plan because eventually there will come 227 00:15:11,630 --> 00:15:16,260 Suze: a time and you're going to get older, that your 228 00:15:16,270 --> 00:15:22,500 Suze: children won't need somebody to take care of their kid 229 00:15:23,190 --> 00:15:26,890 Suze: and then they'll stop paying you. And then what happens 230 00:15:26,900 --> 00:15:28,130 Suze: to you? 231 00:15:29,190 --> 00:15:35,039 Suze: Now, you could be in financial trouble, KT. Because let's say... 232 00:15:35,400 --> 00:15:38,900 KT: Let's say five years though, she'll take care of the... 233 00:15:39,030 --> 00:15:42,979 Suze: yes, but then she'll be 75 or 76 and then what? 234 00:15:43,520 --> 00:15:45,340 Suze: And then she might get ill more. 235 00:15:45,619 --> 00:15:50,849 Suze: So here's the thing, it is a privilege to have 236 00:15:50,859 --> 00:15:54,559 Suze: a family member and somebody that you know that you 237 00:15:54,570 --> 00:15:58,960 Suze: can trust and take care of your child. So, KT, 238 00:15:58,969 --> 00:16:02,719 Suze: rather than paying her a little bit less, they should 239 00:16:02,729 --> 00:16:06,320 Suze: pay her actual more money I'm not kidding. 240 00:16:08,309 --> 00:16:09,260 KT: Pay off the debt, right? They should assume... 241 00:16:10,200 --> 00:16:12,440 Suze: Granny can take care of their kid. 242 00:16:12,849 --> 00:16:17,270 Suze: But kids have to take care of mommy and they 243 00:16:17,280 --> 00:16:19,809 Suze: have to take care of mommy by helping her get 244 00:16:19,820 --> 00:16:23,270 Suze: rid of her debt, paying her and helping her save 245 00:16:23,630 --> 00:16:28,390 Suze: and making a plan so that they always take care 246 00:16:28,539 --> 00:16:30,979 Suze: of mommy as well. All right. Ok. 247 00:16:31,020 --> 00:16:33,390 KT: So ready everyone listen to this one. 248 00:16:33,669 --> 00:16:38,719 KT: This one follows that one. Ready? Is it smart to 249 00:16:38,729 --> 00:16:43,929 KT: turn over all of my finances to my children's name 250 00:16:44,080 --> 00:16:49,510 KT: now that I'm in my mid seventies. Ready Suze. 123. 251 00:16:49,520 --> 00:16:52,169 KT: No way. Right. 252 00:16:52,530 --> 00:16:58,750 KT: So it's like us handing over our whole life to kids. 253 00:16:59,010 --> 00:17:02,580 Suze: So here's, here's the thing. You may think that you're 254 00:17:02,590 --> 00:17:07,119 Suze: doing them a favor, but you are not. When you 255 00:17:07,130 --> 00:17:13,540 Suze: hand over your finances to your children, you're then really 256 00:17:13,550 --> 00:17:17,198 Suze: making the assumption that your children know what they're doing 257 00:17:17,219 --> 00:17:19,359 Suze: more than you. That's number one. 258 00:17:19,958 --> 00:17:24,489 Suze: Chances are they probably don't. But even if they do 259 00:17:24,999 --> 00:17:29,828 Suze: what happens, then if something happens to your children, you 260 00:17:29,838 --> 00:17:33,619 Suze: never know what can happen in life. Do not give 261 00:17:33,629 --> 00:17:38,739 Suze: up your power. This is your money. This is something 262 00:17:38,749 --> 00:17:41,798 Suze: that you need to know about. If your Children are 263 00:17:41,808 --> 00:17:46,139 Suze: so wise with money, have them teach you what you 264 00:17:46,148 --> 00:17:48,499 Suze: need to know about your money. 265 00:17:48,979 --> 00:17:52,719 Suze: The biggest mistake however you could ever make is if 266 00:17:52,729 --> 00:17:57,000 Suze: what you say, turn over if you change the title 267 00:17:57,339 --> 00:18:01,839 Suze: from your stock portfolio, whatever it may be your home 268 00:18:01,849 --> 00:18:07,369 Suze: into their name, you will be making the biggest mistake ever. 269 00:18:07,489 --> 00:18:09,469 Suze: So without explaining why 270 00:18:09,780 --> 00:18:12,949 Suze: don't do it, don't do it, don't do it. You 271 00:18:12,959 --> 00:18:16,719 Suze: keep everything in your name and the only way that 272 00:18:16,729 --> 00:18:22,239 Suze: your beneficiaries get what you have is upon your death. 273 00:18:22,250 --> 00:18:24,920 Suze: Do you hear me? All right. Ok. 274 00:18:24,930 --> 00:18:28,430 KT: Next question, Suze is from VJ who in my opinion 275 00:18:28,489 --> 00:18:30,079 KT: is a really good son. 276 00:18:30,640 --> 00:18:35,458 KT: He says hi, Suze, your financial wisdom not only helped me, 277 00:18:35,469 --> 00:18:38,670 KT: but it also helped me to set myself in a 278 00:18:38,680 --> 00:18:42,430 KT: way that I could take care of my parents. I'm 279 00:18:42,439 --> 00:18:46,399 KT: 38 years old. I lost my father last week to 280 00:18:46,410 --> 00:18:50,349 KT: stage four cancer and I spent the year supporting him 281 00:18:50,359 --> 00:18:53,920 KT: where I could on care, cost rent on the house, 282 00:18:53,930 --> 00:18:57,589 KT: et cetera. I do have guilt that I could not 283 00:18:57,599 --> 00:18:59,380 KT: do more than I could. 284 00:18:59,790 --> 00:19:02,140 KT: But on the back of my mind I knew I 285 00:19:02,150 --> 00:19:06,969 KT: could not jeopardize my own financial future. Is that a 286 00:19:06,979 --> 00:19:11,130 KT: common guilt you've heard Suze? How do I overcome that? 287 00:19:12,560 --> 00:19:14,270 Suze: Mm. Don't cry. 288 00:19:14,339 --> 00:19:15,930 KT: This makes me sad. 289 00:19:16,719 --> 00:19:18,060 Suze: Why KT? 290 00:19:19,500 --> 00:19:20,469 KT: He shouldn't have guilt. 291 00:19:21,130 --> 00:19:22,079 Suze: All ight. Go on. 292 00:19:23,030 --> 00:19:26,089 KT: I am now working on making sure I have enough 293 00:19:26,099 --> 00:19:28,449 KT: set aside to take care of my mom. 294 00:19:29,329 --> 00:19:31,198 Suze: Yeah. Give it to me and let me finish it 295 00:19:31,209 --> 00:19:33,260 Suze: for you, KT. Oh 296 00:19:34,290 --> 00:19:36,949 Suze: Yeah, because it reminds you of your mom. Right? Yeah. 297 00:19:37,489 --> 00:19:40,930 Suze: KT misses her mama so much. It says I am 298 00:19:40,939 --> 00:19:44,219 Suze: now working on making sure I have enough aside to 299 00:19:44,229 --> 00:19:47,438 Suze: take care of mom by paying her rent and sending 300 00:19:47,449 --> 00:19:53,079 Suze: her some money to compliment her widow pension allowance. Your 301 00:19:53,089 --> 00:19:58,159 Suze: guidance on this emotional rational dilemma keeps me wondering. 302 00:19:59,280 --> 00:20:02,060 Suze: Alright. You ok KT? Yeah. 303 00:20:02,069 --> 00:20:05,089 KT: Alright but tell him not to be guilty. 304 00:20:05,119 --> 00:20:05,949 Suze: I will. 305 00:20:06,599 --> 00:20:11,050 Suze: VJ. It's just one of the facts of life 306 00:20:11,800 --> 00:20:16,540 Suze: that as a child obviously when you have such love 307 00:20:16,550 --> 00:20:20,819 Suze: for your parents, you always want to take care of them, 308 00:20:21,530 --> 00:20:27,229 Suze: but you can't forsake everything just to do so because 309 00:20:27,239 --> 00:20:31,390 Suze: you have a responsibility not only to yourself but to 310 00:20:31,400 --> 00:20:34,869 Suze: your family as well. I don't know if you have 311 00:20:34,880 --> 00:20:38,948 Suze: children or the situation that you're in, but the truth 312 00:20:38,959 --> 00:20:42,810 Suze: of the matter is do you want your children to 313 00:20:42,819 --> 00:20:46,859 Suze: have to take care of you? And the chances are 314 00:20:46,890 --> 00:20:50,979 Suze: you don't and if you don't have children, 315 00:20:51,209 --> 00:20:54,188 Suze: then who's going to take care of you if you 316 00:20:54,199 --> 00:20:58,469 Suze: can't take care of yourself. You know, I have that 317 00:20:58,479 --> 00:21:01,790 Suze: thing when you're in an airplane, you always hear them 318 00:21:01,800 --> 00:21:06,430 Suze: say put the oxygen mask on your face first before 319 00:21:06,439 --> 00:21:11,050 Suze: your children. The same is true when parents start to 320 00:21:11,060 --> 00:21:14,890 Suze: get older and they can't take care of themselves, they 321 00:21:14,900 --> 00:21:19,380 Suze: kind of become like your children at that point as well. 322 00:21:19,920 --> 00:21:23,359 Suze: So you have to put the financial oxygen mask on 323 00:21:23,369 --> 00:21:28,739 Suze: your face first. Guilt. You should have no guilt, my love. 324 00:21:29,229 --> 00:21:34,439 Suze: Don't think that your parents don't know your sacrifice. Don't 325 00:21:34,449 --> 00:21:38,020 Suze: think that your father and I'm so sorry for your loss, 326 00:21:38,030 --> 00:21:40,219 Suze: didn't feel your love? 327 00:21:41,089 --> 00:21:45,709 Suze: Don't think that your mother doesn't feel your love. And 328 00:21:45,719 --> 00:21:49,510 Suze: whether you have enough money or not to help them, 329 00:21:50,040 --> 00:21:53,790 Suze: what you have that is worth more than all the 330 00:21:53,800 --> 00:21:58,619 Suze: money in the world is your devotion to them. The 331 00:21:58,630 --> 00:22:02,920 Suze: time that you spend with them, the care that you 332 00:22:02,930 --> 00:22:06,949 Suze: show them, the conversations that you have with them 333 00:22:07,739 --> 00:22:13,920 Suze: and the absolute adoration that you have. That is something 334 00:22:13,930 --> 00:22:17,880 Suze: that more than all the money in the world could 335 00:22:17,890 --> 00:22:25,589 Suze: ever ever buy. So don't feel guilty. VJ, feel privileged 336 00:22:26,150 --> 00:22:29,810 Suze: that you have parents that were able to raise you 337 00:22:29,819 --> 00:22:34,589 Suze: in such a way that instilled such love for them 338 00:22:34,599 --> 00:22:35,719 Suze: in you. Next question... 339 00:22:38,709 --> 00:22:40,218 KT: Suze is getting teary. 340 00:22:40,229 --> 00:22:45,199 Suze: I'm not, read that question. There is only room for one emotional person around 341 00:22:45,209 --> 00:22:46,369 Suze: this place is enough. 342 00:22:47,310 --> 00:22:51,060 KT: That was a great, great uh answer. But here's, here's 343 00:22:51,069 --> 00:22:55,050 KT: one that'll make you both make us both laugh. Hi, Suze. 344 00:22:55,060 --> 00:22:58,829 KT: I'm asking a question for my husband who is too 345 00:22:58,839 --> 00:23:00,319 KT: shy to ask you. 346 00:23:00,920 --> 00:23:04,379 KT: My husband Joe says we have a home equity line 347 00:23:04,390 --> 00:23:09,389 KT: that's costing us 7% in interest. He wants to know, 348 00:23:09,439 --> 00:23:11,979 KT: does it make sense for him to take a loan 349 00:23:11,989 --> 00:23:18,040 KT: from his 401k? Pay himself the 7% interest back? Thank 350 00:23:18,050 --> 00:23:21,060 KT: you so much for helping out my husband who is 351 00:23:21,069 --> 00:23:25,010 KT: too shy to ask you and me. Of course, send 352 00:23:25,020 --> 00:23:27,250 KT: my love to KT, you want me to answer that? 353 00:23:28,630 --> 00:23:29,739 KT: No way. 354 00:23:30,329 --> 00:23:31,159 Suze: Tell me why. 355 00:23:31,180 --> 00:23:34,140 KT: Because you don't like anyone to dip into their 401. 356 00:23:34,189 --> 00:23:34,949 Suze: Do you know the reason why? 357 00:23:35,689 --> 00:23:38,948 KT: I think because you pay double tax or something? I 358 00:23:38,959 --> 00:23:40,159 KT: don't know, exactly.  I'm not that smart. 359 00:23:42,410 --> 00:23:44,829 Suze: But KT here's what's important. It's good that, you know, 360 00:23:44,839 --> 00:23:45,228 Suze: not to 361 00:23:45,334 --> 00:23:48,035 Suze: do that. It would be even better if you knew 362 00:23:48,045 --> 00:23:49,645 Suze: why not. 363 00:23:49,655 --> 00:23:50,425 KT: Well tell everyone why. 364 00:23:50,685 --> 00:23:53,155 Suze: So I want you to listen closely because one day 365 00:23:53,165 --> 00:23:54,724 Suze: I'm going to give this to you as a quizzie. 366 00:23:55,074 --> 00:23:55,915 KT: Ok, do it. 367 00:23:55,925 --> 00:23:56,734 Suze: You promise me? 368 00:23:57,255 --> 00:23:58,224 KT: I promise. I'm listening up. 369 00:23:58,234 --> 00:24:02,875 Suze: All right. So, Susan, the answer to that is no, 370 00:24:02,885 --> 00:24:07,034 Suze: number one, if God forbid your husband were to lose 371 00:24:07,045 --> 00:24:08,224 Suze: his job. 372 00:24:08,819 --> 00:24:11,780 Suze: All right, while he's still working, he loses it. It's 373 00:24:11,819 --> 00:24:15,010 Suze: very possible. We still could go in recession six months 374 00:24:15,020 --> 00:24:16,209 Suze: from now or so. 375 00:24:16,910 --> 00:24:22,849 Suze: All the money that he took out is due and payable. 376 00:24:22,890 --> 00:24:27,389 Suze: Usually within one month of him losing the job. If 377 00:24:27,400 --> 00:24:31,699 Suze: he doesn't have that money and he's not 55 years 378 00:24:31,709 --> 00:24:35,569 Suze: of age or older. When he loses his job, he 379 00:24:35,579 --> 00:24:40,890 Suze: will owe a federal tax penalty of 10% and possibly 380 00:24:40,900 --> 00:24:45,050 Suze: a state tax penalty as well depending on what state 381 00:24:45,060 --> 00:24:46,129 Suze: you live in. 382 00:24:46,689 --> 00:24:51,589 Suze: He also will, no matter how old he is, will 383 00:24:51,599 --> 00:24:55,790 Suze: owe ordinary income tax on that amount of money that 384 00:24:55,800 --> 00:24:57,589 Suze: has yet been repaid 385 00:24:59,300 --> 00:25:03,150 Suze: and that could be a lot. All right. So you 386 00:25:03,160 --> 00:25:05,688 Suze: don't want to do that. You also don't want to 387 00:25:05,699 --> 00:25:09,239 Suze: do that because if you take money out right now, 388 00:25:09,619 --> 00:25:12,640 Suze: you may think that you're paying yourself back that interest 389 00:25:12,650 --> 00:25:15,919 Suze: and it's a great thing. Oh, please, you're also 390 00:25:16,030 --> 00:25:19,770 Suze: possibly going to miss out on the growth of that 391 00:25:19,780 --> 00:25:24,409 Suze: money over the years that it hopefully will still be 392 00:25:24,420 --> 00:25:28,050 Suze: in there. So, bottom line, there's so many reasons why 393 00:25:28,060 --> 00:25:31,089 Suze: not to do it. Don't do it, don't do it, 394 00:25:31,189 --> 00:25:34,719 Suze: don't do it. All right, KT, what else you got 395 00:25:34,729 --> 00:25:34,869 Suze: for me? 396 00:25:35,109 --> 00:25:36,890 KT: This one, this one I like. 397 00:25:37,400 --> 00:25:41,579 KT: So this is from Sherry. Can any attorney make changes 398 00:25:41,589 --> 00:25:44,260 KT: to a trust or do I need to go back 399 00:25:44,270 --> 00:25:46,229 KT: to the attorney who drew it up? 400 00:25:46,310 --> 00:25:47,760 Suze: Any attorney can do it? 401 00:25:47,770 --> 00:25:51,310 KT: Ok. There you go. So this is from Ruth. Hi, 402 00:25:51,319 --> 00:25:54,979 KT: Suze and KT. First, I cannot tell you how much I 403 00:25:54,989 --> 00:25:57,560 KT: love you both for what you do for us and 404 00:25:57,569 --> 00:25:58,819 KT: how grateful I am 405 00:25:58,900 --> 00:26:02,949 KT: for everything I've learned listening to the podcast. I was 406 00:26:02,959 --> 00:26:08,879 KT: re-listening to the Alliant Ask Suzie Orman anything webinar from 407 00:26:08,890 --> 00:26:12,410 KT: last month and Suze mentioned a step up in cost 408 00:26:12,420 --> 00:26:16,750 KT: base on an inherited stock, having a spouse with a 409 00:26:16,760 --> 00:26:20,319 KT: lot of health issues. I'm wondering if I had 410 00:26:20,400 --> 00:26:24,390 KT: my own brokerage account that my husband's name isn't on. 411 00:26:24,550 --> 00:26:27,939 KT: If that would be wise to add his name as 412 00:26:27,949 --> 00:26:31,239 KT: a joint owner on the account to be eligible for 413 00:26:31,250 --> 00:26:35,390 KT: a step up in case something happens or would I 414 00:26:35,400 --> 00:26:38,819 KT: still get the step up, even if my spouse's name 415 00:26:38,829 --> 00:26:40,829 KT: isn't on my account? 416 00:26:42,430 --> 00:26:43,099 Suze: So, 417 00:26:43,719 --> 00:26:46,709 Suze: for those of you who don't know a step up 418 00:26:46,719 --> 00:26:52,229 Suze: in basis is that, let's just say your spouse or 419 00:26:52,239 --> 00:26:56,020 Suze: anybody for that matter who leaves you an inheritance, 420 00:26:56,810 --> 00:27:01,079 Suze: bought a stock at $10 a share, they still own 421 00:27:01,089 --> 00:27:04,680 Suze: that stock and now it's worth $200 a share. Let's 422 00:27:04,689 --> 00:27:05,989 Suze: just say that's true. 423 00:27:06,949 --> 00:27:11,369 Suze: If they die and they leave that to you, your 424 00:27:11,380 --> 00:27:15,489 Suze: new cost basis is $200 a share. 425 00:27:16,520 --> 00:27:18,979 Suze: So if you were to turn around and sell it 426 00:27:18,989 --> 00:27:23,020 Suze: for $200 a share, you wouldn't owe any income tax 427 00:27:23,030 --> 00:27:27,420 Suze: or capital gains tax on it whatsoever. If they gifted 428 00:27:27,430 --> 00:27:31,020 Suze: it to you, they would also be gifting you their 429 00:27:31,030 --> 00:27:33,699 Suze: cost basis of $10 a share 430 00:27:34,530 --> 00:27:38,609 Suze: and then they die and it's yours anyway. But you 431 00:27:38,619 --> 00:27:42,339 Suze: turn around and sell it for $200. Now you owe 432 00:27:42,349 --> 00:27:46,909 Suze: income tax. So when a person gives you something, they 433 00:27:46,920 --> 00:27:51,270 Suze: leave you something in their will or trust or even 434 00:27:51,280 --> 00:27:54,189 Suze: if you are a direct beneficiary of something, because it's 435 00:27:54,199 --> 00:27:57,229 Suze: a pay on death account or transfer on death account, 436 00:27:57,449 --> 00:28:01,939 Suze: you get a step up in basis on whatever it 437 00:28:01,949 --> 00:28:03,988 Suze: is that they are leaving you 438 00:28:04,550 --> 00:28:08,010 Suze: as to what it is the day that they died 439 00:28:08,489 --> 00:28:10,910 Suze: or within six months, there's a way they figure it out, 440 00:28:10,920 --> 00:28:15,550 Suze: but that's how it works. So, ruth, the answer to 441 00:28:15,560 --> 00:28:21,409 Suze: this question is if something is in your individual name 442 00:28:22,199 --> 00:28:25,599 Suze: and your husband dies, you do not get a step 443 00:28:25,609 --> 00:28:27,099 Suze: up in basis on it. 444 00:28:27,770 --> 00:28:32,869 Suze: If his name is on the account and you own 445 00:28:32,880 --> 00:28:37,129 Suze: it in joint tenancy with right of survivorship, which means 446 00:28:37,140 --> 00:28:42,000 Suze: you equally own 50% of what's in there. You will 447 00:28:42,010 --> 00:28:46,500 Suze: only get a step up in basis on his half 448 00:28:46,510 --> 00:28:51,339 Suze: of it. If however you live in a community property state, 449 00:28:51,349 --> 00:28:53,349 Suze: let's say California 450 00:28:54,390 --> 00:29:00,040 Suze: and you own it in community property with your husband 451 00:29:00,459 --> 00:29:05,910 Suze: or your spouse and they happen to die, then you 452 00:29:05,920 --> 00:29:10,479 Suze: get a step up in basis on 100% of it. 453 00:29:11,030 --> 00:29:13,839 Suze: So for all of you that live in a community 454 00:29:13,849 --> 00:29:17,989 Suze: property state and you have somebody that you own something 455 00:29:18,000 --> 00:29:19,479 Suze: with or you want to 456 00:29:19,849 --> 00:29:24,089 Suze: and you're married, especially if you're married, hold it in 457 00:29:24,099 --> 00:29:28,630 Suze: community property. That is the correct way to hold it 458 00:29:29,459 --> 00:29:32,569 Suze: in joint tenancy. You would put his name or her 459 00:29:32,579 --> 00:29:35,369 Suze: name on it and that way you would get a 460 00:29:35,380 --> 00:29:38,599 Suze: step up in basis on half. But again, you do 461 00:29:38,609 --> 00:29:41,859 Suze: not get it if it's just in your name and 462 00:29:41,869 --> 00:29:43,930 Suze: a spouse dies. 463 00:29:45,089 --> 00:29:48,160 Suze: All right. KT, you know what time it is? 464 00:29:48,780 --> 00:29:49,959 Suze: Quizzie, quizzie time. 465 00:29:50,189 --> 00:29:52,150 Suze: This one's very short. 466 00:29:53,670 --> 00:29:53,829 KT: Is it easy? 467 00:29:54,670 --> 00:29:59,140 Suze: Yes, it is. Ok. Everybody listen to the quizzie. You 468 00:29:59,150 --> 00:30:03,630 Suze: should know the answer to this. My question is regarding 469 00:30:03,640 --> 00:30:09,949 Suze: buying stocks. Let's say I buy a stock at $10 470 00:30:09,959 --> 00:30:14,550 Suze: a share. Ok. Write it down $10 a share. 471 00:30:15,030 --> 00:30:18,670 Suze: Then the stock dips 50% and the stock is now 472 00:30:18,680 --> 00:30:22,130 Suze: worth $5 a share. 473 00:30:23,040 --> 00:30:27,069 Suze: Now I buy one share of the same stock at 474 00:30:27,079 --> 00:30:28,650 Suze: $5 a share. 475 00:30:29,410 --> 00:30:33,510 Suze: So now I own two shares 476 00:30:34,390 --> 00:30:37,050 Suze: because I own two shares. 477 00:30:37,729 --> 00:30:42,839 Suze: My cost basis now is 750 a share. Just so 478 00:30:42,849 --> 00:30:46,130 Suze: you know how they got that, everybody is that if 479 00:30:46,140 --> 00:30:47,630 Suze: you buy something at 10 480 00:30:48,630 --> 00:30:52,060 Suze: and then you buy something at 5 - 1 share each, that's 481 00:30:52,069 --> 00:30:58,119 Suze: $15 you invested. Now you have two shares. So your 482 00:30:58,130 --> 00:31:04,760 Suze: cost basis is 750 a share. Ok. That company, however, 483 00:31:04,770 --> 00:31:08,229 Suze: now is only worth $5 a share. 484 00:31:08,949 --> 00:31:14,420 Suze: So you're still down $2.50 a share, but that is 485 00:31:14,430 --> 00:31:19,739 Suze: far better than being down $5 a share. All right. 486 00:31:20,150 --> 00:31:25,290 Suze: So the question is, does this mean that I own 487 00:31:25,300 --> 00:31:27,699 Suze: two shares at 750 a share? 488 00:31:28,260 --> 00:31:29,099 KT: Yeah, so far that's true. 489 00:31:30,719 --> 00:31:34,670 Suze: Right. But if I decide to sell one share, do 490 00:31:34,680 --> 00:31:37,550 Suze: I get $7.50? 491 00:31:38,930 --> 00:31:39,449 KT: No, five. 492 00:31:39,589 --> 00:31:44,010 Suze: That's right. Ding, ding, ding, ding, ding. So you have 493 00:31:44,020 --> 00:31:49,290 Suze: to understand that when you dollar cost average everybody, you 494 00:31:49,300 --> 00:31:53,420 Suze: dollar cost average your price of what it cost you, 495 00:31:53,430 --> 00:31:57,339 Suze: your basis down like in this situation. 496 00:31:57,609 --> 00:32:01,910 Suze: But if you sell, you still only get the price 497 00:32:01,920 --> 00:32:06,069 Suze: of what the stock is trading at, at that time. 498 00:32:06,380 --> 00:32:10,609 Suze: And it's a lot easier to recoup when a stock 499 00:32:10,619 --> 00:32:14,160 Suze: goes from 5 to 750 than when a stock would 500 00:32:14,170 --> 00:32:17,369 Suze: go from five back up to 10. That's one of 501 00:32:17,380 --> 00:32:22,319 Suze: the reasons that you do what you dollar cost average. 502 00:32:22,430 --> 00:32:23,000 Suze: All right, Miss Travis 503 00:32:23,890 --> 00:32:26,339 KT: It is the end of the week and I just 504 00:32:26,349 --> 00:32:29,609 KT: want to do a shout out to my twin sister 505 00:32:29,619 --> 00:32:30,000 KT: Lynn 506 00:32:31,459 --> 00:32:35,030 KT: Last Friday, my sister Lynn was honored with a number 507 00:32:35,040 --> 00:32:39,989 KT: of other great, great volunteers at the Volunteer of the 508 00:32:40,000 --> 00:32:43,520 KT: Year Awards here in South Florida. And I just want 509 00:32:43,530 --> 00:32:48,199 KT: to tell my sister Lynn Travis Stender that in my book, 510 00:32:48,209 --> 00:32:50,680 KT: she's a winner every single day. 511 00:32:51,219 --> 00:32:56,400 Suze: And I second that my dear sister, congrats. Congrats, sweetheart. 512 00:32:56,890 --> 00:33:00,550 Suze: What do we want everybody to do every single day? 513 00:33:00,619 --> 00:33:05,199 KT: Today, wherever I go, I will create a more peaceful, 514 00:33:05,209 --> 00:33:07,150 KT: joyful and loving world. 515 00:33:07,579 --> 00:33:10,790 Suze: And we want you to say that every single day 516 00:33:10,829 --> 00:33:15,680 Suze: because if you do, I promise you, you will be 517 00:33:15,689 --> 00:33:17,030 KT: unstoppable. 518 00:33:17,040 --> 00:33:19,390 Suze: All right. See you soon. Bye bye.