1 00:00:32,110 --> 00:00:37,370 Suze: August 4, 2022. She's already making me laugh. 2 00:00:37,370 --> 00:00:39,459 Suze: Everybody. 3 00:00:40,350 --> 00:00:43,210 KT: I just asked her a funny question. I didn't, it 4 00:00:43,210 --> 00:00:44,680 KT: didn't come out right, 5 00:00:44,690 --> 00:00:48,150 Suze: Well, it's all right since we're just starting. We don't 6 00:00:48,150 --> 00:00:50,350 Suze: have to tell them what that was. But anyway, it 7 00:00:50,350 --> 00:00:52,979 Suze: is August 4, 2022. 8 00:00:52,990 --> 00:00:56,100 KT: Do you believe the summer's almost over, Suze? I can't 9 00:00:56,100 --> 00:00:57,120 KT: believe that. 10 00:00:57,850 --> 00:01:01,010 KT: Remember we did a podcast not too long ago and 11 00:01:01,010 --> 00:01:03,140 KT: I told you it was the first day of summer 12 00:01:03,140 --> 00:01:06,510 KT: and how happy I was. Well, guess what? It's almost 13 00:01:06,510 --> 00:01:08,160 KT: the last day of summer. 14 00:01:08,890 --> 00:01:10,649 Suze: Do we want to welcome everybody 15 00:01:10,650 --> 00:01:17,910 KT: to the women and money podcast? Ask Katie and Susie. Really? 16 00:01:17,910 --> 00:01:23,120 KT: It's really ask anything. Anything that's on your mind. Go 17 00:01:23,120 --> 00:01:25,050 KT: for it, people. Anything. 18 00:01:25,980 --> 00:01:26,440 Suze: But KT, we're back! 19 00:01:27,550 --> 00:01:29,470 KT: Yeah, we had the best. 20 00:01:29,480 --> 00:01:32,450 Suze: Tell everybody. Yes, 21 00:01:32,459 --> 00:01:35,690 KT: Alright. We went. First of all, this was a very 22 00:01:35,690 --> 00:01:40,380 KT: touch and go little fishing adventure because we weren't sure 23 00:01:40,380 --> 00:01:42,350 KT: until really that morning 24 00:01:42,490 --> 00:01:44,940 KT: That Suze was going to be able to get on 25 00:01:44,940 --> 00:01:47,700 KT: the plane, get off the plane, get on the plane, 26 00:01:47,700 --> 00:01:50,530 KT: get off the plane. It took us three flights to 27 00:01:50,530 --> 00:01:55,000 KT: get to this little island in the northern section of 28 00:01:55,000 --> 00:02:01,610 KT: British Columbia, 20 miles south of Alaska, a pristine, beautiful island. 29 00:02:01,620 --> 00:02:06,690 KT: We got there and Suze just blossomed into... the I 30 00:02:06,690 --> 00:02:09,390 KT: think it was the cold. I think she was frozen 31 00:02:09,600 --> 00:02:13,250 KT: and it just got rid of like her pain any 32 00:02:13,250 --> 00:02:16,900 KT: kind of aches. And she was going for it, climbing 33 00:02:16,910 --> 00:02:21,179 KT: up and down these wooden steps, carved into the side 34 00:02:21,180 --> 00:02:25,859 KT: of hills and mountains and she was great, and she 35 00:02:25,860 --> 00:02:29,020 KT: got on the boat and the first day out, she 36 00:02:29,020 --> 00:02:32,070 KT: caught a £10 coho salmon, 37 00:02:32,400 --> 00:02:35,079 KT: they're very hard to catch and to see Suze bring 38 00:02:35,080 --> 00:02:39,440 KT: that in with such grace and ease and expertise it 39 00:02:39,440 --> 00:02:42,570 KT: made made me burst into tears. I'll show you a 40 00:02:42,570 --> 00:02:45,510 KT: picture on the, if you go to our women and 41 00:02:45,510 --> 00:02:48,230 KT: money app on the wall, she'll post a picture of 42 00:02:48,230 --> 00:02:49,940 KT: me hugging her crying, 43 00:02:50,150 --> 00:02:53,030 KT: I was crying. But we'll also post a picture of 44 00:02:53,030 --> 00:02:57,810 KT: Suze with Emily, the guide and her fish and waited 45 00:02:57,810 --> 00:03:00,530 KT: to see how big this thing is. It was awesome 46 00:03:00,540 --> 00:03:03,690 KT: and we'll post a picture of me with a halibut, 47 00:03:03,700 --> 00:03:06,000 Suze: see what it is. I did I not tell all 48 00:03:06,000 --> 00:03:08,360 Suze: of you today, this was going to be one of 49 00:03:08,360 --> 00:03:12,130 Suze: those days, but KaT, did you have a great birthday? 50 00:03:12,139 --> 00:03:15,870 KT: Oh yeah, it started out with the family and my 51 00:03:15,870 --> 00:03:19,809 KT: sister Barbara making me a big strawberry rhubarb pie 52 00:03:20,030 --> 00:03:24,430 KT: and we had the best time. All six of us 53 00:03:24,440 --> 00:03:30,820 KT: enjoyed every moment. It was spectacular, so much so that 54 00:03:30,820 --> 00:03:34,440 KT: we booked it again next year. Same time, same place, 55 00:03:34,440 --> 00:03:38,180 Suze: everybody. It was more than any of us had expected 56 00:03:38,190 --> 00:03:42,350 Suze: in terms of my participation and 57 00:03:42,590 --> 00:03:46,740 Suze: and really just going for it. So I'm thrilled I 58 00:03:46,740 --> 00:03:51,580 Suze: went for it and I did it, thank God, that's 59 00:03:51,580 --> 00:03:54,270 Suze: over with now. Right, KT? 60 00:03:54,970 --> 00:03:58,790 KT: It's a shame it's over. It went so fast. So 61 00:03:58,790 --> 00:04:02,820 KT: I have a lot of questions I probably have like 62 00:04:02,830 --> 00:04:04,780 KT: a month's worth of questions. 63 00:04:04,790 --> 00:04:09,390 Suze: Wait, wait, but before you start. Okay. Although she kind 64 00:04:09,390 --> 00:04:11,030 Suze: of started right, everybody, 65 00:04:11,370 --> 00:04:15,610 Suze: I want you to know that next Thursday. So that 66 00:04:15,610 --> 00:04:17,330 Suze: will be the 11th 67 00:04:17,600 --> 00:04:22,480 Suze: for the Ask KT and Suze anything all the questions 68 00:04:22,490 --> 00:04:27,700 Suze: will be on inherited I. R. A. S. Because the 69 00:04:27,710 --> 00:04:33,080 Suze: podcast that I did on Sunday spurred so many questions 70 00:04:33,089 --> 00:04:33,660 Suze: and you're 71 00:04:33,660 --> 00:04:35,120 Suze: asking, I'm gonna 72 00:04:35,120 --> 00:04:37,730 Suze: save them. And so we're going to do an entire 73 00:04:37,740 --> 00:04:41,740 Suze: podcast on the questions that you have because there's so 74 00:04:41,750 --> 00:04:44,910 Suze: so many exceptions to the rules and certain things. So 75 00:04:44,910 --> 00:04:47,380 Suze: I want you to know that if you want to 76 00:04:47,380 --> 00:04:51,230 Suze: send in a question and possibly be part of that 77 00:04:51,240 --> 00:04:55,410 Suze: for next Thursday you send in your questions to ask 78 00:04:55,420 --> 00:04:59,919 Suze: Suze S U Z E podcast at gmail dot com 79 00:04:59,930 --> 00:05:03,910 Suze: or go to the community app. Women and money. And 80 00:05:03,910 --> 00:05:05,900 Suze: you can ask them there. Now 81 00:05:06,680 --> 00:05:10,110 Suze: I want you to pay attention to the community app. 82 00:05:10,120 --> 00:05:12,560 Suze: I want you to download it, which you can do 83 00:05:12,560 --> 00:05:16,570 Suze: at google play or apple apps and I want you 84 00:05:16,570 --> 00:05:19,860 Suze: to start being part of that because when people are 85 00:05:19,870 --> 00:05:25,580 Suze: asking questions on the app on my wall, under the 86 00:05:25,580 --> 00:05:30,039 Suze: podcast that was posted, I'm usually answering the questions right 87 00:05:30,050 --> 00:05:34,969 Suze: then and there so you might want to participate that way. 88 00:05:35,250 --> 00:05:37,870 Suze: All right, KT, what do you got for us today? 89 00:05:37,870 --> 00:05:42,500 KT: Okay. First question is from Norma and she says Suze, what do 90 00:05:42,500 --> 00:05:45,950 KT: you say to those that say we should take social 91 00:05:45,950 --> 00:05:49,589 KT: security at 62 and invest it. 92 00:05:49,600 --> 00:05:51,630 Suze: That's the stupidest thing I've ever heard. 93 00:05:51,810 --> 00:05:54,080 KT: Don't say that. It's stupid. She's saying. What do you 94 00:05:54,080 --> 00:05:55,720 KT: say to those who say 95 00:05:55,940 --> 00:05:58,219 Suze: I would say to those that say that that is 96 00:05:58,220 --> 00:06:02,250 Suze: just totally stupid because imagine 97 00:06:02,600 --> 00:06:06,970 Suze: it was a year ago. It was January of this 98 00:06:06,970 --> 00:06:11,370 Suze: year and you took your social security at 62 which 99 00:06:11,370 --> 00:06:16,420 Suze: means you took a 30% reduction from what it would 100 00:06:16,420 --> 00:06:20,290 Suze: have been if you had just waited till 67. Okay 101 00:06:20,300 --> 00:06:23,380 Suze: and you started to invest it 102 00:06:23,650 --> 00:06:27,490 Suze: you would be down 30 40 50% right now. And 103 00:06:27,490 --> 00:06:31,400 Suze: if you think that these markets are going up up 104 00:06:31,410 --> 00:06:35,750 Suze: up over this next year two or three I have 105 00:06:35,750 --> 00:06:39,430 Suze: a bridge to sell you. You know maybe on Sunday 106 00:06:39,440 --> 00:06:43,140 Suze: I'll do a podcast in a Suze School on what 107 00:06:43,150 --> 00:06:47,700 Suze: is seriously worrying me about these markets why these are 108 00:06:47,700 --> 00:06:51,109 Suze: markets and times in my opinion that none of us 109 00:06:51,120 --> 00:06:53,549 Suze: have ever seen before 110 00:06:53,770 --> 00:06:57,920 Suze: In our lifetime. So I would not be taking a 111 00:06:57,920 --> 00:07:02,890 Suze: risk with my social security and immediately taking what a 30% 112 00:07:02,900 --> 00:07:06,969 Suze: reduction are you kidding me? Like I said it's just stupid. 113 00:07:07,640 --> 00:07:12,160 KT: Okay next that was a that was a pretty clear answer. 114 00:07:12,830 --> 00:07:18,530 KT: Next one's from Sarah. Hello That that was a stupid question. 115 00:07:18,530 --> 00:07:19,830 KT: That's my girl. 116 00:07:19,840 --> 00:07:20,490 Suze: That's my girl. 117 00:07:20,490 --> 00:07:24,210 KT: Okay. Hi Sarah Sarah says hello Suze 118 00:07:24,210 --> 00:07:25,100 Suze: Hello Sarah. 119 00:07:25,100 --> 00:07:28,730 KT: What is the difference between a bank C. D. And 120 00:07:28,730 --> 00:07:33,480 KT: a brokered C. D. Thanks for providing all your helpful info. 121 00:07:33,490 --> 00:07:35,120 Suze: I should have made that your quizzie. 122 00:07:35,920 --> 00:07:37,620 KT: There's no difference there. 123 00:07:37,620 --> 00:07:38,680 Suze: Most certainly is 124 00:07:39,240 --> 00:07:39,610 KT: what is it? 125 00:07:39,990 --> 00:07:43,810 Suze: Alright so a you do you always set me up 126 00:07:43,820 --> 00:07:47,460 Suze: a bank C. D. Or even a C. D. At 127 00:07:47,460 --> 00:07:52,470 Suze: a credit union. You go into that institution or online 128 00:07:52,480 --> 00:07:55,590 Suze: and you buy a certificate of deposit where they give 129 00:07:55,590 --> 00:07:58,840 Suze: you a specific interest rate for a specific period of 130 00:07:58,840 --> 00:07:59,440 Suze: time 131 00:08:00,300 --> 00:08:04,310 Suze: when you do a brokered C. D. You're buying a 132 00:08:04,310 --> 00:08:08,860 Suze: certificate of deposit through your financial advisor who works at 133 00:08:08,860 --> 00:08:13,780 Suze: a brokerage firm. Now they can buy and sell any 134 00:08:13,790 --> 00:08:16,610 Suze: brokered C. D. S they want. So if you want 135 00:08:16,610 --> 00:08:17,960 Suze: to get out of it 136 00:08:18,200 --> 00:08:21,700 Suze: you could sell it you could find all different types 137 00:08:21,700 --> 00:08:26,490 Suze: of offers through certificate of deposit at a broker versus 138 00:08:26,500 --> 00:08:30,410 Suze: just one kind of C. D. At the bank or 139 00:08:30,410 --> 00:08:33,650 Suze: credit union that you're using? Katie. Did that make sense 140 00:08:33,650 --> 00:08:34,179 Suze: to you? 141 00:08:34,910 --> 00:08:40,290 KT: No I mean the bank or credit union has one 142 00:08:40,290 --> 00:08:45,170 KT: way or the highway. The brokerage firm has a number 143 00:08:45,170 --> 00:08:50,610 KT: of options that you can liquidated, sell it traded in 144 00:08:50,710 --> 00:08:53,449 KT: up it down. Yeah. 145 00:08:53,929 --> 00:08:54,469 Suze: Okay. 146 00:08:54,470 --> 00:08:58,190 KT: I got it. That's my that's my answer. Everyone got 147 00:08:58,190 --> 00:09:01,070 KT: my answer. Which one's better. 148 00:09:02,610 --> 00:09:06,260 Suze: It just depends what your firm the firms are offering you. 149 00:09:06,270 --> 00:09:11,290 KT: Okay. Okay next question's from Lucy and Suze, let's just 150 00:09:11,290 --> 00:09:14,820 KT: help clarify for Lucy and everyone out there. That may 151 00:09:14,820 --> 00:09:20,870 KT: be a little confused. I'm not confused at all. I'll 152 00:09:20,870 --> 00:09:24,370 KT: tell you why. Here's the question. Hi Suze, can I 153 00:09:24,370 --> 00:09:28,220 KT: take money out of the trust that I funded? How 154 00:09:28,220 --> 00:09:29,689 KT: does that work? 155 00:09:30,470 --> 00:09:33,340 KT: So I think you have to explain to people what 156 00:09:33,350 --> 00:09:34,230 KT: a trust is 157 00:09:36,010 --> 00:09:36,910 Suze: Let me read thsi email. 158 00:09:37,450 --> 00:09:40,530 Suze: So it goes on to say she if she puts 159 00:09:40,530 --> 00:09:44,809 Suze: money into a trust and she wants to take money 160 00:09:44,809 --> 00:09:46,990 Suze: out years down the road to buy a house or 161 00:09:46,990 --> 00:09:50,510 Suze: some land, can she do that? Right everybody let's get 162 00:09:50,510 --> 00:09:54,530 Suze: this straight. Let's say you want to set up and 163 00:09:54,530 --> 00:09:58,930 Suze: all of you should want to a living revocable trust. 164 00:09:58,940 --> 00:10:03,520 Suze: All that means is that you change the title 165 00:10:03,880 --> 00:10:09,750 Suze: from your bank account from Suze Orman into Suze Orman 166 00:10:09,750 --> 00:10:16,500 Suze: trustee for the Suze Orman Living revocable trust. Nothing else changes. Okay. 167 00:10:16,980 --> 00:10:20,590 Suze: I can write checks, I can take money out, I 168 00:10:20,590 --> 00:10:24,890 Suze: can put money in. Nothing changes my taxes. Don't change 169 00:10:24,900 --> 00:10:28,179 Suze: property taxes don't change when I do it with my home, 170 00:10:28,280 --> 00:10:32,450 Suze: nothing changes. The only thing that changes is that it's 171 00:10:32,450 --> 00:10:34,250 Suze: now held in trust 172 00:10:34,450 --> 00:10:38,800 Suze: so that when you die it passes to your beneficiaries 173 00:10:38,800 --> 00:10:44,410 Suze: without probate. And if you become incapacitated, you have named 174 00:10:44,410 --> 00:10:47,980 Suze: within the trust a successor trustee 175 00:10:48,450 --> 00:10:51,979 Suze: that can take over all of your financial situation for 176 00:10:51,980 --> 00:10:53,130 Suze: you and take care of you. 177 00:10:53,140 --> 00:10:56,960 KT: So what you're telling everyone is a trust isn't a 178 00:10:56,960 --> 00:11:01,050 KT: financial bank account. It's just a title name for the 179 00:11:01,050 --> 00:11:02,550 KT: ones you already had. 180 00:11:02,550 --> 00:11:06,470 Suze: Yeah, you're just changing title, you're not changing how anything 181 00:11:06,480 --> 00:11:09,870 Suze: works period. So you can take your money out, you 182 00:11:09,870 --> 00:11:11,959 Suze: can do anything you want with it 183 00:11:11,970 --> 00:11:13,220 KT: whenever you want, 184 00:11:14,130 --> 00:11:15,990 Suze: whenever. Right, KT, 185 00:11:18,660 --> 00:11:20,410 KT: This is from johnny 186 00:11:21,010 --> 00:11:21,729 KT: makes me 187 00:11:21,730 --> 00:11:23,589 KT: miss my brother. We call him Johnny. 188 00:11:24,080 --> 00:11:24,570 Suze: Johnny 189 00:11:24,580 --> 00:11:27,860 KT: Johnny. He's in the U. K. Now. We all call 190 00:11:27,860 --> 00:11:28,949 KT: him Johnny Boy. 191 00:11:29,670 --> 00:11:31,310 Suze: Having the time of his life. 192 00:11:31,320 --> 00:11:34,670 KT: All right, Johnny. All right. This is from Johnny, Suze 193 00:11:34,670 --> 00:11:35,780 KT: and KT. What are 194 00:11:35,804 --> 00:11:39,425 KT: the best types of assets to put in a taxable 195 00:11:39,434 --> 00:11:43,745 KT: brokerage account? E. T. F. S. Mutual funds, individual stocks 196 00:11:43,755 --> 00:11:47,505 KT: or certain bonds. I'm trying to clean up my brokerage 197 00:11:47,505 --> 00:11:51,825 KT: account to grow, but with minimum tax hit. So I 198 00:11:51,825 --> 00:11:54,045 KT: don't even know what a taxable brokerage is, 199 00:11:55,345 --> 00:11:59,655 KT: I don't know what that means. Possible brokerage account. 200 00:11:59,965 --> 00:12:00,885 Suze: You have a few. 201 00:12:01,210 --> 00:12:04,079 KT: Okay, so tell everyone. And johnny 202 00:12:04,780 --> 00:12:07,939 Suze: and KT, wait, are you telling me you don't know 203 00:12:07,940 --> 00:12:08,650 Suze: what your 204 00:12:08,660 --> 00:12:12,090 Suze: taxable account, you 205 00:12:12,090 --> 00:12:18,720 Suze: have retirement accounts that are tax deferred or tax free 206 00:12:18,730 --> 00:12:21,339 Suze: if they're a Roth. Okay. 207 00:12:21,750 --> 00:12:27,430 Suze: When you have other investment accounts, when you go and 208 00:12:27,429 --> 00:12:30,860 Suze: you buy something and sell it? If you made money, 209 00:12:30,870 --> 00:12:36,210 Suze: it's taxable if you lost money, hopefully it's a tax loss. 210 00:12:36,220 --> 00:12:41,780 Suze: So you could offset it. That's right. So every single 211 00:12:41,790 --> 00:12:43,349 Suze: account that's just simply in a 212 00:12:43,360 --> 00:12:47,510 Suze: investment account where you open it up in your individual name. 213 00:12:47,520 --> 00:12:50,439 Suze: You open it up in your trust name, you open 214 00:12:50,440 --> 00:12:53,860 Suze: it up in joint tenancy with your spouse or whatever 215 00:12:53,870 --> 00:12:58,540 Suze: Johnny that is what a taxable account is. I did 216 00:12:58,540 --> 00:13:03,470 Suze: that for KT everybody but Johnny for you what you 217 00:13:03,470 --> 00:13:04,230 Suze: would want. 218 00:13:07,870 --> 00:13:09,660 KT: But that's not nice. 219 00:13:09,660 --> 00:13:10,699 KT: What is that? Just 220 00:13:10,700 --> 00:13:12,290 KT: tell johnny what it is. 221 00:13:12,410 --> 00:13:17,800 Suze: I just told you what it was. But anyway, so when 222 00:13:17,800 --> 00:13:22,000 Suze: you have an account like that, you want to invest 223 00:13:22,010 --> 00:13:25,730 Suze: in things that are not going to generate a lot 224 00:13:25,730 --> 00:13:30,579 Suze: of taxes for you. So you buy an individual stock 225 00:13:30,590 --> 00:13:33,910 Suze: as long as you keep that stock, it can grow 226 00:13:33,910 --> 00:13:35,740 Suze: and grow and grow or not. 227 00:13:36,160 --> 00:13:41,479 Suze: And until you sell it there's no taxable event. So 228 00:13:41,490 --> 00:13:46,780 Suze: when you have individual stocks you're more apt to buy 229 00:13:46,790 --> 00:13:51,850 Suze: and sell those as things change. Exchange traded funds as 230 00:13:51,850 --> 00:13:54,900 Suze: well as mutual funds that are index funds, 231 00:13:55,300 --> 00:13:58,829 Suze: those would be the perfect thing as well to hold 232 00:13:58,830 --> 00:14:04,210 Suze: where into a investment account because usually you don't have 233 00:14:04,220 --> 00:14:08,540 Suze: any capital gains on there until you sell them and 234 00:14:08,540 --> 00:14:11,910 Suze: with an exchange traded fund or a mutual fund and 235 00:14:11,920 --> 00:14:14,600 Suze: all mutual funds in my opinion should be no load 236 00:14:14,610 --> 00:14:17,260 Suze: ones that you do not pay commission on. 237 00:14:17,650 --> 00:14:22,150 Suze: You normally don't sell those those you keep because they're 238 00:14:22,150 --> 00:14:27,830 Suze: diversified for a long, long time if you want, you 239 00:14:27,830 --> 00:14:32,960 Suze: can have certain bonds within a brokerage account or an 240 00:14:32,960 --> 00:14:37,760 Suze: investment account, especially if they're municipal bonds because they generate 241 00:14:37,760 --> 00:14:39,940 Suze: tax free income for you. 242 00:14:40,100 --> 00:14:44,010 Suze: You just want to put in that account, things that 243 00:14:44,010 --> 00:14:47,860 Suze: you're not going to buy sell, buy sell, buy sell. 244 00:14:47,910 --> 00:14:50,870 Suze: Those are things that are better off in a retirement account. 245 00:14:51,010 --> 00:14:54,090 KT: Okay, everybody ready want to see Suze get hot under 246 00:14:54,090 --> 00:14:54,860 KT: the collar? 247 00:14:54,870 --> 00:14:56,350 Suze: That means it's about whole life. 248 00:14:57,550 --> 00:15:00,950 KT: Hey Suze and KT. This is from Lauren. We met 249 00:15:00,950 --> 00:15:04,360 KT: with a financial advisor today and asked what are good 250 00:15:04,370 --> 00:15:09,900 KT: savings investment options outside of a 5 29 plan for 251 00:15:09,900 --> 00:15:13,830 KT: our two Children five and six years old. Okay, remember 252 00:15:13,830 --> 00:15:18,620 KT: that everyone two kids five and six years old. The advisor, 253 00:15:18,620 --> 00:15:23,080 KT: he recommended a whole life policy that is paid up 254 00:15:23,090 --> 00:15:24,120 KT: at 20. 255 00:15:24,470 --> 00:15:27,430 KT: I know you dislike whole life policies, but how do 256 00:15:27,430 --> 00:15:30,670 KT: you feel about the one as an investment vehicle for 257 00:15:30,670 --> 00:15:34,200 KT: young Children? All right, you ready, Suze? You should see 258 00:15:34,200 --> 00:15:36,739 KT: your face. I can't even look that direction. 259 00:15:39,080 --> 00:15:42,230 KT: I cannot even look at her face. She has a 260 00:15:42,230 --> 00:15:47,210 KT: face and an expression of not only disgust but disbelief. 261 00:15:47,810 --> 00:15:48,880 KT: All right, go for it. 262 00:15:48,900 --> 00:15:50,030 Suze: I'm really speechless. 263 00:15:50,040 --> 00:15:52,170 KT: Alright? She's speechless. Can I answer it? 264 00:15:52,320 --> 00:15:53,030 Suze: No. 265 00:15:53,040 --> 00:15:54,290 KT: You better tell them. 266 00:15:54,290 --> 00:15:58,120 Suze: So, Lauren, I need you to seriously listen to me. 267 00:15:58,390 --> 00:16:02,370 Suze: You have two children that are five and six years 268 00:16:02,380 --> 00:16:08,050 Suze: of age now, do you and your spouse right have 269 00:16:08,060 --> 00:16:12,650 Suze: a term life insurance policy to protect them in case 270 00:16:12,650 --> 00:16:16,640 Suze: you and your spouse happen to die. Okay, I don't 271 00:16:16,640 --> 00:16:18,700 Suze: have a problem with that at all, 272 00:16:19,550 --> 00:16:26,190 Suze: but to waste money. how dare that financial advisor even 273 00:16:26,190 --> 00:16:30,200 Suze: suggest that when you could do what you could be 274 00:16:30,200 --> 00:16:33,780 Suze: putting money right now into series I bonds for them 275 00:16:33,790 --> 00:16:36,730 Suze: and depending on your income, when you go to take 276 00:16:36,730 --> 00:16:40,390 Suze: money out of series I bonds later on for higher 277 00:16:40,390 --> 00:16:43,690 Suze: education costs, you don't have to pay taxes on it, 278 00:16:43,700 --> 00:16:48,650 Suze: you're ahead of inflation, you're keeping it safe. Really? 279 00:16:49,180 --> 00:16:52,450 Suze: That could not be, I don't even 280 00:16:53,130 --> 00:16:58,300 KT: She's really mad because she knows that that advisor or 281 00:16:58,310 --> 00:17:04,740 KT: agent is making a huge income and they're making a 282 00:17:04,740 --> 00:17:06,150 KT: whole lot of money up front. 283 00:17:06,160 --> 00:17:08,780 Suze: So how do I feel about that as an investment 284 00:17:08,780 --> 00:17:10,419 Suze: for young Children? 285 00:17:10,430 --> 00:17:11,200 Suze: It's not 286 00:17:11,200 --> 00:17:13,500 Suze: really really. 287 00:17:14,450 --> 00:17:19,250 Suze: I hope you never go back into that person's office again. 288 00:17:19,359 --> 00:17:23,580 KT: Alright, this is from Karen, Suze. If you had to 289 00:17:23,580 --> 00:17:28,600 KT: choose between funding a Roth ira or getting a Series 290 00:17:28,600 --> 00:17:31,400 KT: I Bond, which do you recommend? 291 00:17:31,630 --> 00:17:35,199 KT: And this is for someone who's 55, I don't know 292 00:17:35,200 --> 00:17:39,180 KT: if that's for Karen or someone she knows who's 55 293 00:17:39,180 --> 00:17:42,730 Suze: Right now, Karen, the advice I'm gonna give you is 294 00:17:42,730 --> 00:17:46,170 Suze: for right now at this period of time. So for 295 00:17:46,170 --> 00:17:48,610 Suze: those of you who may be listening to this three 296 00:17:48,609 --> 00:17:50,190 Suze: or four years from now 297 00:17:50,359 --> 00:17:53,080 Suze: at the first time and you're hearing it, please pay 298 00:17:53,080 --> 00:17:57,450 Suze: attention to the dates that these podcasts are recorded because 299 00:17:57,460 --> 00:18:02,710 Suze: every date means something. This advice will not hold true 300 00:18:02,840 --> 00:18:07,870 Suze: in a few years from now. Currently Series I Bonds 301 00:18:07,970 --> 00:18:09,980 Suze: if you buy one right now 302 00:18:10,290 --> 00:18:15,200 Suze: are offering 9.62% for you for the next six months. 303 00:18:15,200 --> 00:18:17,980 Suze: Now obviously you only get half of that because you're 304 00:18:17,980 --> 00:18:22,740 Suze: holding it for six months after those six months it 305 00:18:22,740 --> 00:18:27,389 Suze: will be November. The new I bond rate will be established. 306 00:18:27,400 --> 00:18:32,270 Suze: You'll get whatever that is. It is very possible. It 307 00:18:32,270 --> 00:18:35,510 Suze: could be 10 11 12%. 308 00:18:35,980 --> 00:18:39,700 Suze: So right now if I were you, I would be 309 00:18:39,700 --> 00:18:43,800 Suze: taking advantage of the certainty of the interest rates that 310 00:18:43,810 --> 00:18:48,369 Suze: I bonds are giving you versus the uncertainty that a 311 00:18:48,369 --> 00:18:52,070 Suze: Roth I. R. A. Would be giving you because if 312 00:18:52,070 --> 00:18:55,360 Suze: you invested in a Roth right now I have to 313 00:18:55,359 --> 00:18:57,180 Suze: tell you, I'm not even sure what I would tell 314 00:18:57,180 --> 00:18:58,210 Suze: you to invest in 315 00:18:58,770 --> 00:19:02,619 Suze: so that you didn't suffer losses. And I'll talk about 316 00:19:02,619 --> 00:19:05,810 Suze: that more on Sunday. But I would go for the 317 00:19:05,810 --> 00:19:09,770 Suze: known versus the unknown and the known right now is 318 00:19:09,770 --> 00:19:15,170 Suze: series I bonds go for it girlfriend. Did that surprise you, KT? 319 00:19:15,170 --> 00:19:17,800 KT: It did a little bit. But I think the most 320 00:19:17,800 --> 00:19:22,500 KT: important information here is pay attention to the day Susie 321 00:19:22,500 --> 00:19:26,310 KT: gave you this advice. The timing is everything. Everyone. 322 00:19:26,670 --> 00:19:30,369 KT: Next question is from Camille. This is a very sweet question. 323 00:19:30,369 --> 00:19:35,340 KT: Suze says hi KT and Suze, I'm not married. When 324 00:19:35,340 --> 00:19:39,720 KT: I die, can I allocate my social security benefits to 325 00:19:39,720 --> 00:19:40,630 KT: my brother? 326 00:19:41,970 --> 00:19:44,280 KT: No, you can't Camille. But I thought that was 327 00:19:44,880 --> 00:19:46,260 Suze: so do you hear the difference 328 00:19:46,270 --> 00:19:47,030 KT: between 329 00:19:47,030 --> 00:19:48,940 Suze: KT's answer was so... 330 00:19:48,940 --> 00:19:52,710 KT: It's kind of you to think about your brother and I 331 00:19:52,710 --> 00:19:55,080 KT: hope he knows that you love him that much 332 00:19:55,090 --> 00:20:00,770 Suze: Actually you cannot allocate your Social Security benefits really to 333 00:20:00,780 --> 00:20:05,950 Suze: anybody other than a spouse. So if your Social security 334 00:20:05,950 --> 00:20:09,000 Suze: benefits for those of you listening who are married, 335 00:20:09,400 --> 00:20:14,410 Suze: so if your Social security benefit is higher than your 336 00:20:14,410 --> 00:20:20,570 Suze: spouse's upon your death, your spouse will start to collect yours. 337 00:20:20,580 --> 00:20:25,770 Suze: If your spouse's benefit is higher than yours when you die, 338 00:20:25,800 --> 00:20:30,880 Suze: they'll just keep collecting. There's so it's really just that simple. 339 00:20:31,359 --> 00:20:36,080 KT: Alright, next is from Tanya and Campbell. Our 18 year 340 00:20:36,080 --> 00:20:39,700 KT: old daughter, graduated from high school in May. She started 341 00:20:39,700 --> 00:20:42,940 KT: her first job. She will continue to work as she 342 00:20:42,940 --> 00:20:47,400 KT: goes to college. Having listened to you for years often 343 00:20:47,400 --> 00:20:51,810 KT: with my encouragement, she's opened a Roth ira at Vanguard. 344 00:20:51,820 --> 00:20:53,270 KT: Good for her. Right. Suze, 345 00:20:53,480 --> 00:20:57,899 KT: she has an initial investment of $1000. She now wants 346 00:20:57,900 --> 00:21:01,630 KT: to invest in V. T. I. The question which is 347 00:21:01,640 --> 00:21:06,560 KT: Vanguard total index fund. Right. Yeah. Our question is should 348 00:21:06,560 --> 00:21:10,770 KT: she dollar cost average the initial investment or just the 349 00:21:10,770 --> 00:21:16,410 KT: monthly amounts after the 1000 lump sum investment. So let's 350 00:21:16,410 --> 00:21:17,320 KT: give 351 00:21:17,510 --> 00:21:20,170 KT: Let's give their daughter, I don't have the daughter's name. 352 00:21:20,170 --> 00:21:22,540 KT: But let's give her some advice. She's 18. 353 00:21:22,550 --> 00:21:25,820 Suze: Alright, so this this is what I would tell you, 354 00:21:25,980 --> 00:21:29,859 Suze: is that at this point in time the market's really 355 00:21:29,859 --> 00:21:36,270 Suze: have had. Remember this is August 4th 2022. The market's 356 00:21:36,270 --> 00:21:40,970 Suze: really did extraordinarily well in the month of July, 357 00:21:41,930 --> 00:21:45,010 Suze: I don't think it's gonna hold everybody. I know a 358 00:21:45,010 --> 00:21:47,720 Suze: lot of you are writing and go the markets hit 359 00:21:47,720 --> 00:21:51,730 Suze: its bottom were there. It's going to go straight up. No, 360 00:21:51,740 --> 00:21:55,680 Suze: it is not in my opinion. Now. I hope I'm wrong. 361 00:21:55,690 --> 00:21:58,970 Suze: I just don't think I am. I think you'll see 362 00:21:58,970 --> 00:22:01,720 Suze: it go up, go down. I think you may even 363 00:22:01,720 --> 00:22:05,100 Suze: see it hit a high around the middle of September 364 00:22:05,109 --> 00:22:07,720 Suze: then go back down again. I think we're in a 365 00:22:07,720 --> 00:22:09,590 Suze: rough time overall. 366 00:22:09,890 --> 00:22:14,200 Suze: So I would be dollar cost averaging. So I would 367 00:22:14,200 --> 00:22:19,260 Suze: not be putting $1000 lump sum into the market right now. 368 00:22:19,270 --> 00:22:21,350 Suze: I would wait a little bit to tell you the 369 00:22:21,350 --> 00:22:25,689 Suze: truth and then I would be putting maybe $100 a 370 00:22:25,690 --> 00:22:29,200 Suze: month into the market by dollar cost averaging. So 371 00:22:29,200 --> 00:22:31,640 KT: ready. Next question is 372 00:22:31,890 --> 00:22:37,760 KT: hi ladies, I was wondering if I have both an L. L. C. 373 00:22:37,760 --> 00:22:41,170 KT: And an S corps? Am I allowed to purchase I 374 00:22:41,170 --> 00:22:44,710 KT: bonds under those entities? I'm gonna give them the answer: YEA BABY! 375 00:22:47,580 --> 00:22:48,600 Suze: Now let's tell them that story. 376 00:22:49,619 --> 00:22:53,830 KT: Okay, so we're on the boat fishing and every time 377 00:22:53,840 --> 00:22:58,690 KT: we caught a fish, we would scream and yeah, baby 378 00:22:58,700 --> 00:23:03,890 KT: and Emily are guide who's Canadian and rather conservative young 379 00:23:03,900 --> 00:23:07,880 KT: 30 year old woman thought that was the funniest thing 380 00:23:07,880 --> 00:23:12,100 KT: she ever heard all these old ladies screaming. Yeah, baby. Yeah, baby. 381 00:23:12,109 --> 00:23:15,000 KT: And she wrote to Suze and I 382 00:23:15,190 --> 00:23:18,859 KT: and she said never in her life has anyone pulled 383 00:23:18,859 --> 00:23:21,830 KT: her aside and said, okay, m we called you the 384 00:23:21,830 --> 00:23:28,080 KT: party boat. Yeah, baby. They heard us echoing throughout the entire, 385 00:23:28,090 --> 00:23:31,430 KT: I don't know what it's called, The island waters in 386 00:23:31,440 --> 00:23:32,859 KT: British Columbia. 387 00:23:33,200 --> 00:23:36,560 KT: And now Emily has this reputation of being Yeah, baby. 388 00:23:36,570 --> 00:23:39,710 KT: So it was fun. Suze, this is my last... 389 00:23:40,270 --> 00:23:43,830 Suze: Before you asked the last question, tell the sad story about 390 00:23:43,830 --> 00:23:44,550 Suze: Emily 391 00:23:44,560 --> 00:23:48,830 KT: Emily is 30 years old and she feel, and she's 392 00:23:48,840 --> 00:23:50,389 KT: unbelievably 393 00:23:50,400 --> 00:23:50,990 Suze: talented 394 00:23:51,000 --> 00:23:55,610 Suze: a beautiful writer. We'll put a picture of her, you 395 00:23:55,609 --> 00:23:56,830 KT: will put a photo of her with 396 00:23:56,830 --> 00:23:57,940 Suze: Suze, she 397 00:23:57,940 --> 00:24:01,760 KT: felt lost and she feels less than when it comes 398 00:24:01,760 --> 00:24:06,730 KT: to her financial accomplishments and we looked at each other 399 00:24:06,730 --> 00:24:10,550 KT: and said, are you kidding me? Um so she's 30 400 00:24:10,550 --> 00:24:13,619 KT: years old and she's in, in a job and a 401 00:24:13,619 --> 00:24:14,670 KT: world that 402 00:24:14,910 --> 00:24:18,630 KT: um is not that conducive for the... 403 00:24:18,640 --> 00:24:21,300 Suze: this is a great story was because she really didn't know who I was, 404 00:24:21,310 --> 00:24:23,850 Suze: because in Canada, I've never really been 405 00:24:24,320 --> 00:24:25,330 KT: ...young and she's 406 00:24:25,330 --> 00:24:29,180 Suze: young and I'm old, It's true, right? And and so 407 00:24:29,180 --> 00:24:30,990 Suze: when I said, Emily, 408 00:24:31,630 --> 00:24:36,159 Suze: I was a waitress at the age of 30, she 409 00:24:36,170 --> 00:24:37,179 Suze: lit up 410 00:24:37,180 --> 00:24:37,940 Suze: like 411 00:24:37,950 --> 00:24:42,750 Suze: there's hope and of course there's hope, but so for 412 00:24:42,820 --> 00:24:43,159 Suze: she 413 00:24:43,160 --> 00:24:45,570 KT: felt, she felt less than because she said, I don't 414 00:24:45,570 --> 00:24:46,649 KT: own a home, 415 00:24:46,830 --> 00:24:51,080 KT: I don't have a significant savings. I don't think she's 416 00:24:51,080 --> 00:24:53,680 KT: living paycheck to paycheck, but she's tight. 417 00:24:53,690 --> 00:24:58,910 Suze: Well, you know, the only fish first season. But the 418 00:24:58,910 --> 00:25:02,630 Suze: main reason I wanted KT to tell that story is 419 00:25:02,630 --> 00:25:04,950 Suze: that I know a lot on the Women and Money 420 00:25:04,950 --> 00:25:09,350 Suze: podcast and everyone's smart enough to listen. We hear things 421 00:25:09,359 --> 00:25:15,150 Suze: many times towards women and and others right? Who 422 00:25:15,670 --> 00:25:20,760 Suze: really are older because as you get older, it's as 423 00:25:20,760 --> 00:25:24,639 Suze: if nobody really cares anything towards you. They don't do 424 00:25:24,640 --> 00:25:29,159 Suze: podcasts like this. Everything is always for advertising dollars and 425 00:25:29,160 --> 00:25:31,200 Suze: the millennials and this and that. 426 00:25:31,350 --> 00:25:34,090 Suze: But I just want all of you to know this 427 00:25:34,090 --> 00:25:38,790 Suze: podcast really is for everybody. And there's always hope never 428 00:25:38,790 --> 00:25:43,570 Suze: forget that. Suze Orman was a waitress for seven years 429 00:25:43,690 --> 00:25:48,460 Suze: making $400 a month. So she was 30 years of age. 430 00:25:48,619 --> 00:25:53,190 Suze: Now look at me now, what's your last one? Okay, 431 00:25:53,190 --> 00:25:53,430 Suze: this 432 00:25:53,430 --> 00:25:54,750 KT: is from Steve. 433 00:25:54,930 --> 00:26:00,770 KT: Dear KT and Suze, you recommend to budget 40% over 434 00:26:00,770 --> 00:26:01,970 KT: the actual mortgage 435 00:26:01,970 --> 00:26:02,760 KT: payment. 436 00:26:03,380 --> 00:26:08,080 KT: What if your payment already has taxes and insurance added 437 00:26:08,080 --> 00:26:11,550 KT: to the total you pay through the escrow account. 438 00:26:11,720 --> 00:26:15,729 KT: Do you still use 40% I guess the 40% model 439 00:26:15,740 --> 00:26:18,550 KT: or does the percentage change? 440 00:26:19,550 --> 00:26:21,730 Suze: So let's explain that to everybody first 441 00:26:21,740 --> 00:26:24,719 KT: steve has a good question here. But you need to 442 00:26:24,720 --> 00:26:26,770 KT: know a little bit of the backstory. So Suze will 443 00:26:26,770 --> 00:26:27,200 KT: set it up. 444 00:26:27,510 --> 00:26:30,770 Suze: So normally when you go to buy a home, you 445 00:26:30,770 --> 00:26:33,050 Suze: write in and say Susie, how do I know how 446 00:26:33,050 --> 00:26:35,150 Suze: much of a home can I afford 447 00:26:35,450 --> 00:26:38,520 Suze: and I always tell you because the mistake that you 448 00:26:38,520 --> 00:26:41,300 Suze: make is that if you have a rent payment for 449 00:26:41,410 --> 00:26:44,670 Suze: $1000 a month, good luck. But let's just say you 450 00:26:44,670 --> 00:26:48,190 Suze: do and then you have a mortgage payment for $1000 451 00:26:48,190 --> 00:26:52,080 Suze: a month. You think you can afford to buy a home. 452 00:26:52,300 --> 00:26:56,629 Suze: And the truth of the matter is besides the mortgage payment, 453 00:26:56,640 --> 00:27:01,170 Suze: you have property taxes, you have insurance and you have 454 00:27:01,170 --> 00:27:03,970 Suze: maintenance costs. So I've always said 455 00:27:04,460 --> 00:27:09,939 Suze: Always budget 40% over the mortgage payment so that you 456 00:27:09,940 --> 00:27:12,070 Suze: know that you can afford it. So in that case 457 00:27:12,070 --> 00:27:15,879 Suze: it would be $400 more which is 1400 a month. 458 00:27:15,890 --> 00:27:21,060 Suze: And for six months playhouse, pay your rent of $1,000 459 00:27:21,070 --> 00:27:25,370 Suze: and put $400 a month away in the Alliant credit union. 460 00:27:25,720 --> 00:27:29,920 Suze: Make a good interest rate. Get that $100 bonus right 461 00:27:29,920 --> 00:27:32,520 Suze: at the end of 12 months. And if it wasn't 462 00:27:32,520 --> 00:27:35,609 Suze: a strain for you at the end of six months 463 00:27:35,619 --> 00:27:37,260 Suze: you'll know you can afford it. 464 00:27:37,840 --> 00:27:42,180 Suze: So Steve is asking. But if we are paying through 465 00:27:42,180 --> 00:27:47,560 Suze: an escrow account, do we still do 40%. And when 466 00:27:47,560 --> 00:27:53,070 Suze: you pay to your mortgage company, your property taxes and 467 00:27:53,070 --> 00:27:57,560 Suze: your insurance, they hold it in escrow for you. Now 468 00:27:57,560 --> 00:27:59,950 Suze: before I go on and answer this question, I know 469 00:27:59,950 --> 00:28:03,180 Suze: this is long. But Katie, it's important. None of you 470 00:28:03,180 --> 00:28:04,570 Suze: should have an escrow account 471 00:28:05,040 --> 00:28:08,620 Suze: Years ago or even a year ago when interest rates 472 00:28:08,619 --> 00:28:12,110 Suze: were so low. It really didn't make sense for you 473 00:28:12,119 --> 00:28:15,690 Suze: to keep your insurance and your property taxes in a 474 00:28:15,690 --> 00:28:18,600 Suze: savings account because you weren't making any interest. It was 475 00:28:18,600 --> 00:28:19,820 Suze: at 0%. 476 00:28:20,310 --> 00:28:24,880 Suze: Now why let the financial institution keep your money and 477 00:28:24,880 --> 00:28:28,459 Suze: make 1.4%? Which is the new interest rate by the 478 00:28:28,460 --> 00:28:32,310 Suze: way that Alliant credit union is paying as interest rates 479 00:28:32,310 --> 00:28:36,450 Suze: continue to go up, they will pay more. So put 480 00:28:36,460 --> 00:28:41,370 Suze: your own taxes and insurance in your own savings account. 481 00:28:41,380 --> 00:28:44,360 Suze: Do not do an escrow account. 482 00:28:44,660 --> 00:28:47,700 Suze: So that's what I would tell you Steve. But if 483 00:28:47,700 --> 00:28:50,710 Suze: you are doing that and you're playing house to see 484 00:28:50,710 --> 00:28:53,400 Suze: how much more you can afford, you would put about 485 00:28:53,400 --> 00:28:57,810 Suze: $200 a month away because that's usually what maintenance comes 486 00:28:57,810 --> 00:28:58,500 Suze: out to 487 00:28:58,510 --> 00:28:59,750 Suze: be. 488 00:29:00,060 --> 00:29:01,880 Suze: You look so bored 489 00:29:03,650 --> 00:29:04,830 Suze: people. 490 00:29:04,830 --> 00:29:08,040 Suze: What is wrong with her? Do you really want quick? 491 00:29:08,930 --> 00:29:09,440 Suze: You 492 00:29:09,440 --> 00:29:11,500 Suze: know what I think is wrong with KT. 493 00:29:11,780 --> 00:29:17,290 Suze: She now for over 20 years has sat in studios 494 00:29:17,300 --> 00:29:21,040 Suze: or on TV or whatever and listen to me answer 495 00:29:21,250 --> 00:29:24,750 Suze: these questions over and over again. And KT, I just 496 00:29:24,750 --> 00:29:26,330 Suze: think you're plumb board when I do 497 00:29:26,560 --> 00:29:30,800 KT: Sometimes. Only if the ROTH word comes up. 498 00:29:32,070 --> 00:29:34,570 Suze: Alright, well let's see how bored you are with this quizzie, 499 00:29:34,770 --> 00:29:38,440 Suze: my dear because this is now quizzie time where I 500 00:29:38,440 --> 00:29:42,370 Suze: ask KT and all of you a question and let's 501 00:29:42,370 --> 00:29:47,100 Suze: see if you can answer it? See KT is yawning here, 502 00:29:47,110 --> 00:29:48,290 KT: go ahead, do it. 503 00:29:48,300 --> 00:29:49,200 Suze: You're tired? 504 00:29:49,210 --> 00:29:49,880 KT: I am. 505 00:29:50,280 --> 00:29:52,540 Suze: Did you not sleep well last night? Why not? 506 00:29:52,540 --> 00:29:54,390 KT: I told you I had a nightmare 507 00:29:54,620 --> 00:29:55,990 KT: and we talked about it. 508 00:29:56,000 --> 00:29:57,890 Suze: I know every morning we wake up wake up 509 00:29:57,890 --> 00:30:01,050 KT: I said Suze every dream and she always says yes. 510 00:30:01,050 --> 00:30:02,970 KT: I said what was it? I don't remember and I 511 00:30:02,970 --> 00:30:04,860 KT: said I want to hear mine and I tell her 512 00:30:04,860 --> 00:30:05,310 KT: my dream 513 00:30:05,310 --> 00:30:09,190 Suze: An hour and a half later talk about being bored anyway. 514 00:30:09,200 --> 00:30:13,220 Suze: Hi Suze. I've become a loyal listener and look forward 515 00:30:13,220 --> 00:30:18,180 Suze: to your episodes each week. I am however overwhelmed with 516 00:30:18,180 --> 00:30:21,140 Suze: the best direction for my husband and I 517 00:30:22,370 --> 00:30:24,860 Suze: first of all it should be Michelle my husband and 518 00:30:24,860 --> 00:30:29,620 Suze: me but just saying alright, my first specific question is 519 00:30:29,620 --> 00:30:36,560 Suze: do I invest $10,000 in? I bonds KT, now or 520 00:30:36,560 --> 00:30:43,640 Suze: put $10,000 towards our $15,000 credit card debt. We do 521 00:30:43,640 --> 00:30:47,650 Suze: have a 12 month emergency fund intact and just came 522 00:30:47,660 --> 00:30:51,160 Suze: into this money. Thanks for considering 523 00:30:52,310 --> 00:30:55,550 KT: My gut feeling says you should get rid of the 524 00:30:55,550 --> 00:30:59,650 KT: debt because you'll feel better. But the smart answer would 525 00:30:59,650 --> 00:31:04,160 KT: probably be to take advantage of right now the benefit 526 00:31:04,170 --> 00:31:08,120 KT: of the I Bond investment, especially $10,000. 527 00:31:09,960 --> 00:31:10,230 Suze: What's 528 00:31:10,230 --> 00:31:11,380 Suze: your final answer? 529 00:31:11,710 --> 00:31:13,090 KT: It depends, 530 00:31:14,060 --> 00:31:22,590 Suze: Ccome on, don't be long winded. Alright, so I can't give 531 00:31:22,590 --> 00:31:26,880 Suze: you or a Ding Ding Ding. And the reason is 532 00:31:26,880 --> 00:31:30,600 Suze: this your answer of? It depends was correct. 533 00:31:31,140 --> 00:31:34,720 Suze: Now the real answer to this depends on what is 534 00:31:34,720 --> 00:31:38,950 Suze: the interest rate that's being offered on your credit card 535 00:31:38,950 --> 00:31:43,190 Suze: to you right now. Are you paying 15%? Are you 536 00:31:43,190 --> 00:31:46,700 Suze: paying 20%? Are you paying 23%? 537 00:31:47,290 --> 00:31:51,030 Suze: Are you in a credit card? Where as the feds 538 00:31:51,030 --> 00:31:53,860 Suze: continue to raise interest rates 539 00:31:54,620 --> 00:31:57,710 Suze: that your interest rate on this credit card is going 540 00:31:57,710 --> 00:32:02,470 Suze: to go up as well. So given that that is 541 00:32:02,470 --> 00:32:06,710 Suze: probably the situation I have to tell you. I would 542 00:32:06,710 --> 00:32:08,810 Suze: be paying off my credit card debt. 543 00:32:08,820 --> 00:32:10,530 KT: And don't you think she'll feel better? 544 00:32:10,540 --> 00:32:13,010 Suze: Of course she'll feel better. However, 545 00:32:13,550 --> 00:32:13,900 KT: I... 546 00:32:13,900 --> 00:32:21,080 Suze: Would do something else, KT? No. Alright. So 547 00:32:21,450 --> 00:32:24,670 Suze: You also have a 12-month emergency fund 548 00:32:25,380 --> 00:32:29,730 Suze: If I were you and I had a very high 549 00:32:29,740 --> 00:32:33,420 Suze: interest rate and high interest rate on a credit card 550 00:32:33,480 --> 00:32:39,630 Suze: in my opinion is anything over 5678% are up there. Yeah, 551 00:32:39,640 --> 00:32:43,040 Suze: because you're not making that on your money where in 552 00:32:43,050 --> 00:32:47,730 Suze: your savings account. So therefore your emergency fund is probably 553 00:32:47,730 --> 00:32:49,770 Suze: in a savings account somewhere. 554 00:32:50,110 --> 00:32:56,600 Suze: Therefore if you have $10,000 I would get rid of $10,000. 555 00:32:56,600 --> 00:32:59,990 Suze: A credit card debt. If my assumption is correct that 556 00:32:59,990 --> 00:33:03,660 Suze: your interest rate is really high and I would probably 557 00:33:03,660 --> 00:33:06,220 Suze: depending on what your 12-month emergency fund 558 00:33:06,610 --> 00:33:11,360 Suze: Is, how large I would take $5,000 from there. Get 559 00:33:11,370 --> 00:33:15,690 Suze: rid of my credit card debt altogether. If you get 560 00:33:15,700 --> 00:33:21,220 Suze: into trouble, you now have $15,000 on credit cards that 561 00:33:21,220 --> 00:33:24,140 Suze: you can start buying things with. If you really get 562 00:33:24,140 --> 00:33:28,510 Suze: into trouble somehow again then you would take the money 563 00:33:28,510 --> 00:33:32,210 Suze: that you were putting towards your credit card debt and 564 00:33:32,210 --> 00:33:34,750 Suze: replenish your emergency fund. 565 00:33:34,950 --> 00:33:38,870 Suze: Once your emergency fund has been replenished, I would then 566 00:33:38,870 --> 00:33:42,260 Suze: do what I would start to be putting money in 567 00:33:42,270 --> 00:33:46,180 Suze: to I bonds. You don't have to put $10,000 all 568 00:33:46,180 --> 00:33:50,160 Suze: at once in an I bond KT. What is the minimum? 569 00:33:50,850 --> 00:33:54,570 Suze: Come on. Yeah, come on, 570 00:33:55,020 --> 00:33:55,480 KT: $25 571 00:33:55,480 --> 00:34:00,560 Suze: Good, KT. Alright. Everybody that brings us to the end. 572 00:34:01,280 --> 00:34:02,470 Suze: Any other updates you want to give? 573 00:34:03,410 --> 00:34:07,860 KT: Go look at the fish. Yeah, we we actually we didn't 574 00:34:07,860 --> 00:34:12,850 KT: catch as much fish this season as we did before Covid. 575 00:34:12,860 --> 00:34:14,960 KT: But boy, we had fun. 576 00:34:15,820 --> 00:34:17,330 Suze: Didn't catch much fish 577 00:34:17,340 --> 00:34:22,730 KT: because you couldn't fish. Suze couldn't she only caught one. 578 00:34:22,739 --> 00:34:27,700 KT: Everyone's allowed eight fish. And Suze was only able to 579 00:34:27,710 --> 00:34:31,190 KT: bring in one with her, you know, arm in her condition. 580 00:34:31,400 --> 00:34:32,759 KT: But we tried 581 00:34:32,770 --> 00:34:33,810 Suze: but anyway, but 582 00:34:33,810 --> 00:34:35,550 KT: I I caught almost all of mine. 583 00:34:35,550 --> 00:34:39,310 Suze: But we had Barb and Sophia, KT's sister, my sister 584 00:34:39,310 --> 00:34:42,720 Suze: in law and our niece on the boat and I 585 00:34:42,719 --> 00:34:44,419 Suze: learned a big lesson, 586 00:34:44,680 --> 00:34:49,190 Suze: right? Which is having fun with everybody even though they 587 00:34:49,190 --> 00:34:51,469 Suze: lost almost every fish they tried to bring in. But 588 00:34:51,469 --> 00:34:52,930 Suze: that's besides the point 589 00:34:52,940 --> 00:34:54,160 KT: right then 590 00:34:54,160 --> 00:34:58,290 Suze: catching fish. Alright, so don't forget to look at the 591 00:34:58,290 --> 00:35:03,969 Suze: pictures on the women and money community app. And until 592 00:35:03,980 --> 00:35:06,879 Suze: Sunday KT, what do you want to tell everybody? 593 00:35:07,060 --> 00:35:09,060 KT: I want you all to stay safe. 594 00:35:09,070 --> 00:35:10,109 Suze: What else? 595 00:35:10,860 --> 00:35:11,600 KT: Strong. 596 00:35:11,600 --> 00:35:12,790 Suze: What else? And 597 00:35:12,790 --> 00:35:13,450 KT: Secure 598 00:35:14,040 --> 00:35:19,090 Suze: what else? One more, I added one more: Smart. I want 599 00:35:19,090 --> 00:35:21,520 Suze: everybody to be smart. Which means you're not going to 600 00:35:21,520 --> 00:35:22,080 Suze: buy whole, 601 00:35:22,400 --> 00:35:24,670 Suze: (KT says: They are smart!) Not if you buy whole life insurance policies, you're 602 00:35:24,670 --> 00:35:27,190 KT: not. All you have to do is be safe. Strong 603 00:35:27,190 --> 00:35:31,890 KT: and secure. Smart. You're smart. Just just be smart. You're 604 00:35:31,890 --> 00:35:32,830 KT: all smart. 605 00:35:32,840 --> 00:35:35,160 Suze: Not if they listen to certain people, 606 00:35:35,170 --> 00:35:36,310 KT: Okay? We love you. 607 00:35:36,320 --> 00:35:37,899 Suze: All right, everybody. Bye bye 608 00:35:37,900 --> 00:35:38,640 KT: Bye now!