1 00:00:46,189 --> 00:00:52,200 Suze: March 17th, 2024. Welcome everybody to the Women and Money 2 00:00:52,209 --> 00:00:55,720 Suze: podcast as well as everybody smart enough to listen. Now, 3 00:00:55,729 --> 00:00:56,569 Suze: I know, I know... 4 00:00:56,580 --> 00:00:58,520 KT: KT's here. Tell them why. 5 00:00:58,529 --> 00:01:01,549 Suze: Well, first of all, KT, do you even know why? 6 00:01:01,889 --> 00:01:03,479 KT: Yeah, it's Saint Patrick's Day. 7 00:01:03,490 --> 00:01:04,000 Suze: That isn't why 8 00:01:04,194 --> 00:01:05,653 Suze: I asked you to do... 9 00:01:05,664 --> 00:01:11,694 KT: No. On Thursday we played the most incredible, amazing interview 10 00:01:11,813 --> 00:01:16,543 KT: with Suze and Mika at the 30/50 summit in Abu Dhabi. 11 00:01:16,984 --> 00:01:20,262 KT: Anyone that's missed that, go back and listen to it. 12 00:01:20,274 --> 00:01:23,424 KT: It was, it was so great that I didn't need 13 00:01:23,433 --> 00:01:24,223 KT: to be on it. 14 00:01:24,734 --> 00:01:27,524 Suze: No, that's not why you're here. Let me tell you 15 00:01:27,533 --> 00:01:31,572 Suze: why you're here. First of all, Happy Saint Patrick's Day, everybody. 16 00:01:32,379 --> 00:01:34,139 Suze: Today is a special day for KT. 17 00:01:34,459 --> 00:01:38,459 KT: So today was it 14 years ago, 14 years ago, 18 00:01:38,669 --> 00:01:42,690 KT: my mommy died and on Saint Patrick's Day. But you 19 00:01:42,699 --> 00:01:47,110 KT: know what? We really celebrated, we celebrated because we thought 20 00:01:47,120 --> 00:01:49,830 KT: it was pretty amusing that she picked the most, one 21 00:01:49,839 --> 00:01:53,879 KT: of the most festive and fun days of the year 22 00:01:54,290 --> 00:01:55,699 KT: to leave us. 23 00:01:56,629 --> 00:01:59,559 KT: And she went and decided I'm gonna pick this day 24 00:01:59,569 --> 00:02:01,860 KT: and go have a party up there in heaven and 25 00:02:02,349 --> 00:02:04,809 KT: I'm sure she still is. 26 00:02:04,819 --> 00:02:08,179 Suze: But let me tell you, KT, why I asked you to do 27 00:02:08,490 --> 00:02:12,779 Suze: Sunday with me ready for this, right? So a little 28 00:02:12,788 --> 00:02:16,339 Suze: bit ago before we went away, one of the quizzes 29 00:02:16,350 --> 00:02:19,570 Suze: from somebody by the name of Dennis was Suze. We 30 00:02:19,580 --> 00:02:23,210 Suze: know everything about you. Tell us something about KT and 31 00:02:23,220 --> 00:02:24,020 Suze: that was the quizz 32 00:02:24,410 --> 00:02:29,630 Suze: and KT told her story. Well, KT, the number of 33 00:02:29,639 --> 00:02:34,429 Suze: emails and comments that I got about how much everybody 34 00:02:34,440 --> 00:02:37,149 Suze: loves you and they love knowing your story and they 35 00:02:37,160 --> 00:02:41,529 Suze: found it so fascinating, so interesting and we miss her 36 00:02:41,630 --> 00:02:45,630 Suze: because really the last few podcasts you haven't been on 37 00:02:46,029 --> 00:02:47,850 Suze: everybody's been asking for. 38 00:02:47,860 --> 00:02:52,388 KT: So today's Sunday, it's a special treat. It's Saint Patty's Day, 39 00:02:52,399 --> 00:02:56,679 KT: it's Sunday and KT's in the house with Suze. 40 00:02:56,690 --> 00:03:00,339 Suze: So KT's gonna do an ask Katie and Susie anything 41 00:03:00,350 --> 00:03:02,860 Suze: since we didn't do it for you Thursday. 42 00:03:03,139 --> 00:03:05,959 Suze: But we're so very, very happy to be back. We're 43 00:03:05,970 --> 00:03:11,288 Suze: happy to be back on the island, right? And KT 44 00:03:11,300 --> 00:03:11,888 Suze: gets to go fishing.  45 00:03:12,500 --> 00:03:15,419 KT: As soon as we're done with this. I am jumping on that boat 46 00:03:15,429 --> 00:03:17,429 KT: and going fishing and I hope you join me. 47 00:03:18,740 --> 00:03:19,800 Suze: We'll see how I feel. What do have for me? 48 00:03:20,419 --> 00:03:25,029 KT: So, the first question we have is actually a comment. Hi, Suze. 49 00:03:25,038 --> 00:03:27,990 KT: I'm planning to retire this coming August. 50 00:03:28,330 --> 00:03:31,639 KT: I will be 68 years old in June. She's probably 51 00:03:31,649 --> 00:03:35,229 KT: a Gemini like you. Is it better to delay getting 52 00:03:35,240 --> 00:03:39,660 KT: my social security till I'm 70? I have some annuities 53 00:03:39,669 --> 00:03:42,779 KT: and pension that I can start getting. And I think 54 00:03:42,789 --> 00:03:45,190 KT: that would be enough for me for the next two 55 00:03:45,300 --> 00:03:48,229 KT: years. What do you think, Suze? This is from a 56 00:03:48,240 --> 00:03:50,039 KT: Susan to a Suze. 57 00:03:50,050 --> 00:03:52,619 Suze: That should have been your quizzy. So here is the 58 00:03:52,630 --> 00:03:56,309 Suze: bottom line answer here because you are single because we 59 00:03:56,320 --> 00:03:59,029 Suze: don't have a spouse to contend with in terms of 60 00:03:59,039 --> 00:04:02,119 Suze: what the spouse would be getting as social security. 61 00:04:02,509 --> 00:04:06,809 Suze: You absolutely should be waiting till you are 70 years 62 00:04:06,820 --> 00:04:11,210 Suze: of age. If you could wait till 70 I'm telling you, 63 00:04:11,320 --> 00:04:14,009 Suze: you're going to be so happy that you did. All right, 64 00:04:14,020 --> 00:04:15,130 Suze: next question, KT. 65 00:08:33,780 --> 00:08:37,359 KT: Ok. Next one's from Scott. This is interesting. Hi, KT 66 00:08:37,369 --> 00:08:43,369 KT: and Suze. My daughter is 16. Ok. Everyone remember she's 16, 67 00:08:43,500 --> 00:08:46,988 KT: she'll be going to Spain this summer with her school. 68 00:08:47,000 --> 00:08:49,969 KT: With regard to her method of spending, 69 00:08:50,250 --> 00:08:54,909 KT: bank debit cards typically have a foreign transaction fee while 70 00:08:54,919 --> 00:08:59,609 KT: many credit cards do not. Do you prefer building credit 71 00:08:59,650 --> 00:09:03,750 KT: for a minor with a parent who will ensure nothing 72 00:09:03,760 --> 00:09:07,090 KT: will go amiss? What is the best way for a 73 00:09:07,099 --> 00:09:10,659 KT: minor to get a credit card which then can be 74 00:09:10,669 --> 00:09:15,630 KT: used for daily expenses ongoing and paid off monthly of course. 75 00:09:15,909 --> 00:09:18,500 KT: So this is from Scott, but can a minor get 76 00:09:18,510 --> 00:09:19,169 KT: a credit card? 77 00:09:19,179 --> 00:09:22,489 Suze: Well, here's what this minor needs to know. And Scott, 78 00:09:22,500 --> 00:09:26,409 Suze: which is if you just simply add your daughter's name 79 00:09:26,419 --> 00:09:29,849 Suze: as an authorized user on one of your cards that 80 00:09:29,859 --> 00:09:33,650 Suze: does not have a foreign transaction fee attached to it, 81 00:09:34,179 --> 00:09:38,659 Suze: then she can start to hopefully build credit because your 82 00:09:38,809 --> 00:09:42,229 Suze: FICO score will then become her FICO score as well. 83 00:09:42,570 --> 00:09:45,400 Suze: So that would be a great way if no other 84 00:09:45,409 --> 00:09:48,619 Suze: reason to not have to pay that transaction fee because 85 00:09:48,630 --> 00:09:52,080 Suze: it can be expensive over there. Like KT and I 86 00:09:52,090 --> 00:09:56,369 Suze: were very careful about when we just recently were overseas, 87 00:09:56,380 --> 00:09:58,719 Suze: which credit card we used 88 00:09:58,932 --> 00:10:01,511 Suze: because we wanted to make sure that we didn't have 89 00:10:01,562 --> 00:10:05,271 Suze: that transaction fee. So if you know that your daughter 90 00:10:05,280 --> 00:10:08,671 Suze: is responsible, then give her a credit card that she 91 00:10:08,682 --> 00:10:12,021 Suze: can use as an authorized user. One of your credit 92 00:10:12,030 --> 00:10:14,461 Suze: cards that doesn't have a fee on it and just 93 00:10:14,471 --> 00:10:17,072 Suze: watch it closely. Next question, KT. 94 00:10:17,131 --> 00:10:20,322 KT: This is from Julie. Hi, Suze. I bought a home 95 00:10:20,331 --> 00:10:23,552 KT: at the age of 20. I'm 47 now. 96 00:10:23,684 --> 00:10:26,703 KT: I still have a mortgage, but I'm wanting to move 97 00:10:26,763 --> 00:10:30,573 KT: as my partner has their own home. Would you suggest 98 00:10:30,583 --> 00:10:35,223 KT: selling my home or using it for rental property? And 99 00:10:35,234 --> 00:10:38,823 KT: thus monthly income? By the way, I have a Secure 100 00:10:38,833 --> 00:10:43,103 KT: Save account at Humana. Wait before you answer this question, 101 00:10:43,114 --> 00:10:46,223 KT: tell everyone what the Secure Save Account is. 102 00:10:46,234 --> 00:10:48,304 Suze: The new love of my life. 103 00:10:48,434 --> 00:10:51,846 Suze: That is really great and good for you, Humana. Yeah. 104 00:10:52,075 --> 00:10:55,204 Suze: So if you don't know a few years ago, three 105 00:10:55,216 --> 00:10:59,656 Suze: years ago, now myself and two other men by the 106 00:10:59,666 --> 00:11:04,375 Suze: name of Devin Miller and Bassam Saliba co-founded a company 107 00:11:04,385 --> 00:11:07,966 Suze: by the name of Secure Save and all of you 108 00:11:07,976 --> 00:11:13,056 Suze: should absolutely check it out at Secure save.com 109 00:11:13,530 --> 00:11:17,799 Suze: and essentially what it is, it is an employer sponsored 110 00:11:17,809 --> 00:11:24,429 Suze: emergency savings account for the employees. And therefore you will 111 00:11:24,440 --> 00:11:28,229 Suze: decide if your company comes with us and does this 112 00:11:28,469 --> 00:11:31,390 Suze: that how much per paycheck you would like to be 113 00:11:31,400 --> 00:11:32,829 Suze: taken out of your paycheck? Most 114 00:11:32,909 --> 00:11:36,359 Suze: people only do $20 or $30 a paycheck and your 115 00:11:36,369 --> 00:11:43,530 Suze: employer will match it for Humana. They have 50,000 employees, 71% 116 00:11:43,539 --> 00:11:49,359 Suze: of their employees have signed up for Secure Save and Humana, 117 00:11:49,369 --> 00:11:52,159 Suze: like many companies that have signed up with us, 118 00:11:52,640 --> 00:11:57,460 Suze: they are offering $100 for their employees to simply sign 119 00:11:57,469 --> 00:12:01,020 Suze: up if they sign up for $20 and then every 120 00:12:01,030 --> 00:12:07,539 Suze: $20 that employee puts in Humana matches $20. And what's 121 00:12:07,549 --> 00:12:10,190 Suze: so fabulous about it is that the employee can get 122 00:12:10,200 --> 00:12:12,640 Suze: the money whenever they want with the push of a button. 123 00:12:12,840 --> 00:12:16,380 Suze: They don't have to ask their hr person if they leave, 124 00:12:16,390 --> 00:12:18,218 Suze: let's say in this case, Humana, 125 00:12:18,659 --> 00:12:22,319 Suze: then they get to take it with them. It's their account. 126 00:12:22,330 --> 00:12:27,580 Suze: Everything about it is fabulous. But given that 75% of 127 00:12:27,590 --> 00:12:30,280 Suze: the people in the United States of America do not 128 00:12:30,289 --> 00:12:30,869 Suze: have 129 00:12:31,340 --> 00:12:37,309 Suze: a $400 emergency savings account. That's why we started this 130 00:12:37,549 --> 00:12:39,900 Suze: and we didn't know if it would catch on if 131 00:12:39,909 --> 00:12:42,750 Suze: it wouldn't catch on. And let me just say it 132 00:12:42,760 --> 00:12:47,549 Suze: is caught on big time now with major, major corporations 133 00:12:47,630 --> 00:12:51,640 Suze: signing up with us. So if you're an employer listening 134 00:12:51,650 --> 00:12:55,520 Suze: to this, you should go to Secure save.com and check 135 00:12:55,530 --> 00:12:59,069 Suze: it out. If you're an employee that works for a 136 00:12:59,080 --> 00:13:00,809 Suze: corporation that has not done 137 00:13:00,914 --> 00:13:04,544 Suze: yet, talk to your hr person about it and have 138 00:13:04,554 --> 00:13:09,494 Suze: them go to Secure save.com or you go to Secure save.com, 139 00:13:09,505 --> 00:13:13,614 Suze: put in the name of your company and we'll contact them, 140 00:13:13,775 --> 00:13:18,044 Suze: but it's going to be a huge, huge thing. And 141 00:13:18,054 --> 00:13:19,655 Suze: I have to tell you one of the things that 142 00:13:19,664 --> 00:13:23,974 Suze: I'm most proud of, no fees at all to the employee, 143 00:13:23,984 --> 00:13:28,385 Suze: no cost to the employee. It's all your money. So, 144 00:13:28,395 --> 00:13:30,564 Suze: but let me go back to this one. 145 00:13:30,780 --> 00:13:32,659 Suze: So Julie, first of all, you're so lucky that you 146 00:13:32,669 --> 00:13:35,929 Suze: work for Humana. What a fabulous company that they're doing 147 00:13:35,940 --> 00:13:38,820 Suze: this with and the benefits that they offer all of 148 00:13:38,830 --> 00:13:45,000 Suze: you over the top. However you say in your question 149 00:13:45,299 --> 00:13:49,079 Suze: that you want to move in with your partner, you 150 00:13:49,090 --> 00:13:52,789 Suze: did not say that you wanna move in with your spouse. 151 00:13:53,409 --> 00:13:57,190 Suze: You said you wanna move in with your partner. Fine. 152 00:13:57,640 --> 00:14:00,599 Suze: But that's because they have their own home. 153 00:14:01,210 --> 00:14:05,700 Suze: What concerns me is if you weren't with this person 154 00:14:06,200 --> 00:14:09,489 Suze: and all of a sudden you break up with this person, 155 00:14:10,020 --> 00:14:13,960 Suze: where would you live? Where would you go? So for 156 00:14:13,969 --> 00:14:18,319 Suze: just now, I would be keeping your home and I 157 00:14:18,330 --> 00:14:21,440 Suze: would be renting it out. I don't want you to 158 00:14:21,450 --> 00:14:24,359 Suze: all of a sudden sell this house, take that money, 159 00:14:24,369 --> 00:14:26,820 Suze: maybe invest it with your partner in the house that 160 00:14:26,830 --> 00:14:29,469 Suze: they have. I don't want that at this point in time. 161 00:14:29,710 --> 00:14:33,289 Suze: I want you to be further along with living with 162 00:14:33,299 --> 00:14:37,219 Suze: this person in their house. So given that rents are 163 00:14:37,229 --> 00:14:41,190 Suze: still so great and everything, I want you to keep 164 00:14:41,200 --> 00:14:45,289 Suze: it as a rental property in your name only obviously 165 00:14:45,309 --> 00:14:48,070 Suze: and use it for the monthly income. All right, KT. 166 00:14:48,909 --> 00:14:51,150 KT: I picked this next one because it always makes me 167 00:14:51,159 --> 00:14:53,500 KT: chuckle ready. It's from Joy 168 00:14:54,190 --> 00:14:55,130 KT: Comments: 169 00:14:56,250 --> 00:15:01,640 KT: I just attended an investment strategy dinner seminar in which 170 00:15:01,650 --> 00:15:05,710 KT: LIRPs were discussed. What is, 171 00:15:06,840 --> 00:15:13,239 KT: what is an LIRP? And is it a recommended investment strategy? So, wait, 172 00:15:13,250 --> 00:15:15,840 KT: the reason It makes me chuckle, Suze. And I, as 173 00:15:15,849 --> 00:15:19,280 KT: you all know, are up there in numbers in terms 174 00:15:19,289 --> 00:15:23,030 KT: of our age and we get at least at least 175 00:15:23,039 --> 00:15:27,229 KT: once a month, an invitation for a free lunch or 176 00:15:27,333 --> 00:15:31,273 KT: a complimentary dinner at the Ruth Chris steakhouse here in 177 00:15:31,283 --> 00:15:36,252 KT: South Florida to listen to investment strategy. 178 00:15:38,463 --> 00:15:40,393 Suze: We should show, we were gonna show up one and 179 00:15:40,403 --> 00:15:43,822 Suze: scare the heck out of him because you know, we 180 00:15:43,833 --> 00:15:45,263 Suze: have to do that just to do it. 181 00:15:45,273 --> 00:15:47,913 KT: We should, we should tape it and you should 182 00:15:48,015 --> 00:15:49,395 KT: ask a question. 183 00:15:49,585 --> 00:15:52,705 Suze: Like, why are you selling people LIRPs, which are the 184 00:15:52,716 --> 00:15:56,406 Suze: worst investments out there. First of all, joy, here's what 185 00:15:56,416 --> 00:16:00,056 Suze: I wanna say, be very careful and this is for 186 00:16:00,065 --> 00:16:04,356 Suze: all of you when a company is offering a free 187 00:16:04,366 --> 00:16:07,835 Suze: meal to get you there, why do you think they're 188 00:16:07,846 --> 00:16:11,416 Suze: doing that? They're doing that so that they can sell 189 00:16:11,426 --> 00:16:12,635 Suze: you something 190 00:16:12,940 --> 00:16:15,400 Suze: and they know that all of you as you get older, 191 00:16:15,409 --> 00:16:17,799 Suze: you like a free meal. So fine if you wanna 192 00:16:17,809 --> 00:16:20,890 Suze: go and eat for free, I don't have a problem 193 00:16:20,900 --> 00:16:25,219 Suze: with that but you are not to on any level, 194 00:16:25,229 --> 00:16:29,130 Suze: do one thing that they talk to you about. Not 195 00:16:29,140 --> 00:16:33,169 Suze: one because I learned a long time ago that if 196 00:16:33,179 --> 00:16:37,219 Suze: a financial advisor has to entice you to come and 197 00:16:37,229 --> 00:16:38,919 Suze: listen to them speak, 198 00:16:39,239 --> 00:16:42,299 Suze: they're not a financial advisor, in my opinion that you 199 00:16:42,309 --> 00:16:46,539 Suze: really wanna be with because they need clients. A great 200 00:16:46,549 --> 00:16:51,179 Suze: financial advisor is so busy and so busy with referrals 201 00:16:51,190 --> 00:16:54,299 Suze: from the clients that they have, that they don't have 202 00:16:54,309 --> 00:16:58,820 Suze: time really to do anything other than what they're doing, 203 00:16:59,359 --> 00:17:02,900 Suze: which is taking care of business and taking care of 204 00:17:02,909 --> 00:17:06,060 Suze: your money, not going to give a talk somewhere and 205 00:17:06,069 --> 00:17:09,099 Suze: have dinner with all of you. So therefore you are 206 00:17:09,109 --> 00:17:14,060 Suze: to stay away from it, number one. LIRP stands for 207 00:17:14,069 --> 00:17:17,510 Suze: Life Insurance Retirement Plan. It, it is nothing more than 208 00:17:17,520 --> 00:17:19,420 Suze: an insurance policy that they, 209 00:17:19,869 --> 00:17:22,989 Suze: you to put your money into. So you can accumulate 210 00:17:23,000 --> 00:17:24,989 Suze: it and later on in life if you need it, 211 00:17:25,119 --> 00:17:27,430 Suze: you can take it out as a loan tax free. 212 00:17:27,439 --> 00:17:30,349 Suze: Here's what I would tell you. Stay as far away 213 00:17:30,359 --> 00:17:32,879 Suze: from it as possible. I don't like it. I don't 214 00:17:32,890 --> 00:17:35,488 Suze: like it. I don't like it and that is putting 215 00:17:35,500 --> 00:17:37,630 Suze: it mildly, KT next question. 216 00:17:40,979 --> 00:17:45,989 KT: And by the way, Ruth Chris steakhouse is a great restaurant. Yeah. No, 217 00:17:46,000 --> 00:17:48,569 KT: I mean nothing wrong with Ruth Chris. I love the 218 00:17:48,579 --> 00:17:49,439 KT: lamb chops. 219 00:17:49,449 --> 00:17:51,310 Suze: So you just go and get a doggy bag and 220 00:17:51,319 --> 00:17:52,149 Suze: take it home. 221 00:17:52,410 --> 00:17:56,420 KT: Ok. Ready from Cecilia. Hi. Suze. I just heard your 222 00:17:56,430 --> 00:18:01,800 KT: podcast on HSAs. Quick question. In 2012, I was working 223 00:18:01,810 --> 00:18:06,429 KT: for HP - Hewlett Packard. They had to downsize and 224 00:18:06,525 --> 00:18:10,145 KT: I was offered a package to leave. One benefit was 225 00:18:10,155 --> 00:18:14,864 KT: an HSA account. I'm 66 years old and retired. I'm 226 00:18:14,875 --> 00:18:19,165 KT: now on Medicare. Can I still use my HSA o 227 00:18:19,234 --> 00:18:23,064 KT: r do I lose it because I'm on Medicare? Thank 228 00:18:23,074 --> 00:18:26,864 KT: you in advance for all of your assistance. Then she writes, ready? 229 00:18:26,964 --> 00:18:28,464 KT: I love you, KT. 230 00:18:28,474 --> 00:18:31,364 Suze: See, do you know how many people love you more 231 00:18:31,375 --> 00:18:31,935 Suze: than me? 232 00:18:33,959 --> 00:18:37,420 Suze: Trust me. They say she's so sweet. She has an 233 00:18:37,430 --> 00:18:42,229 Suze: angelic voice. She's so kind. We love that. She cries. 234 00:18:42,239 --> 00:18:44,760 Suze: I'm like, I don't blame you. I love her for 235 00:18:44,770 --> 00:18:48,369 Suze: all those reasons too and she's absolutely 10 times sweeter 236 00:18:48,380 --> 00:18:50,430 Suze: than me. Maybe 20. 237 00:18:50,439 --> 00:18:51,319 KT: That could be true. 238 00:18:51,329 --> 00:18:51,899 Suze: Right? 239 00:18:52,354 --> 00:18:54,724 Suze: But I have the biggest heart in town, don't I? 240 00:18:55,265 --> 00:18:56,415 KT: Most generous? 241 00:18:56,525 --> 00:19:00,974 Suze: So we make a great couple that way here. Cecilia 242 00:19:00,984 --> 00:19:04,094 Suze: is what you need to know. You can no longer 243 00:19:04,104 --> 00:19:07,454 Suze: contribute to your HSA and for those of you who 244 00:19:07,464 --> 00:19:11,524 Suze: didn't listen to my brilliant podcast on health savings accounts, 245 00:19:11,535 --> 00:19:12,333 Suze: you should, 246 00:19:12,699 --> 00:19:17,889 Suze: but you can no longer contribute to it because once 247 00:19:17,900 --> 00:19:21,959 Suze: you are on Medicare, you no longer can have a 248 00:19:21,969 --> 00:19:25,989 Suze: high deductible health plan. You just can't 249 00:19:26,280 --> 00:19:31,739 Suze: because Medicare is covering you. However, that does not mean 250 00:19:31,869 --> 00:19:35,609 Suze: that you can't use your health savings account and the 251 00:19:35,619 --> 00:19:39,300 Suze: money that's in there to pay for medical needs that 252 00:19:39,310 --> 00:19:43,670 Suze: maybe Medicare doesn't cover so you can't contribute to it, 253 00:19:43,739 --> 00:19:47,339 Suze: but you can still use it. You do not lose it, 254 00:19:47,420 --> 00:19:50,739 Suze: but you can't increase it with contributions. Next question, KT. 255 00:19:52,714 --> 00:19:56,005 KT: I have a couple of HSA these are all following today. 256 00:19:56,564 --> 00:20:00,525 Suze: I was thinking about before I wanted you to join me. 257 00:20:00,625 --> 00:20:03,555 Suze: I was thinking about doing a Suze School on all 258 00:20:03,564 --> 00:20:07,584 Suze: the questions of HSAs and clearing up certain things because 259 00:20:07,594 --> 00:20:10,704 Suze: we got so many questions. But then I thought I 260 00:20:10,714 --> 00:20:12,724 Suze: was lonely and I wanted you with me. 261 00:20:13,244 --> 00:20:14,823 KT: But I picked three good ones. 262 00:20:15,599 --> 00:20:19,800 KT: This one says, hi, Suze, loved your Susie School on HSA. 263 00:20:21,630 --> 00:20:24,380 KT: And the question is pretty simple. What is the best 264 00:20:24,390 --> 00:20:26,510 KT: way to fund my HSA? 265 00:20:27,939 --> 00:20:30,310 KT: So that was the question and it was pretty straightforward. 266 00:20:30,479 --> 00:20:34,410 Suze: Well, you know, it's interesting because that in itself is 267 00:20:34,420 --> 00:20:37,010 Suze: one of the most brilliant questions that you just asked 268 00:20:37,199 --> 00:20:42,349 Suze: and I realized I didn't cover that in the podcast, right? 269 00:20:42,359 --> 00:20:46,719 Suze: Because there is a way. So let's just say you 270 00:20:46,729 --> 00:20:49,579 Suze: have a high deductible health plan at work 271 00:20:50,030 --> 00:20:52,649 Suze: and now you have to fund it, you have to 272 00:20:52,660 --> 00:20:54,900 Suze: put money into it and you want money to go 273 00:20:54,910 --> 00:20:59,239 Suze: into your health savings account. That is how you fund 274 00:20:59,270 --> 00:21:05,410 Suze: a high deductible health plan. But when you fund it 275 00:21:05,510 --> 00:21:10,709 Suze: through payroll deductions. So, rather than taking money from a 276 00:21:10,719 --> 00:21:14,739 Suze: savings account or somewhere and funding it, when you fund 277 00:21:14,750 --> 00:21:17,349 Suze: it through payroll deductions, 278 00:21:17,859 --> 00:21:22,750 Suze: then the contributions get set up as pre tax, but 279 00:21:22,760 --> 00:21:29,920 Suze: they also exclude your payroll taxes, which is a big deal. So, 280 00:21:29,930 --> 00:21:34,000 Suze: KT every time you fund an HSA, it's a tax deduction. 281 00:21:34,640 --> 00:21:38,089 Suze: However, if you're funding it with money that you've already 282 00:21:38,099 --> 00:21:40,839 Suze: gotten as a paycheck and now it's in a savings 283 00:21:40,849 --> 00:21:43,160 Suze: account and you fund it, ok, you get a tax 284 00:21:43,170 --> 00:21:46,369 Suze: write off for it. But if you fund it through 285 00:21:46,380 --> 00:21:52,419 Suze: a payroll deduction, it's also counted as pre tax income, 286 00:21:52,739 --> 00:21:58,000 Suze: but very possibly will avoid payroll taxes as well. Because 287 00:21:58,010 --> 00:22:00,979 Suze: when you get a paycheck, you get payroll taxes, 288 00:22:01,489 --> 00:22:05,780 Suze: that would be the most ideal way to fund it 289 00:22:06,089 --> 00:22:10,069 Suze: because in an HSA, even if you fund it with 290 00:22:10,079 --> 00:22:13,510 Suze: money from a savings account, you can't go back and 291 00:22:13,520 --> 00:22:16,989 Suze: retroactively get your payroll taxes back. 292 00:22:17,410 --> 00:22:21,099 KT: What do you, what's the average monthly funding? It just, 293 00:22:21,589 --> 00:22:23,129 KT: let's say it's $200. 294 00:22:23,140 --> 00:22:25,949 Suze: It can be whatever they want up to the maximum. Right? 295 00:22:25,959 --> 00:22:29,910 Suze: So it's, it's, it just depends on, are they an individual? 296 00:22:29,920 --> 00:22:31,989 KT: But it's better to take that money out of your 297 00:22:32,000 --> 00:22:32,949 KT: monthly paycheck. 298 00:22:33,040 --> 00:22:35,989 Suze: Yes. And fund it that way if you can, which 299 00:22:36,000 --> 00:22:39,119 Suze: you probably can. All right. And that was a great question. 300 00:22:39,709 --> 00:22:42,339 KT: Yeah, that was a simple question. But you didn't cover that. 301 00:22:42,349 --> 00:22:44,469 Suze: Well, I realized I didn't think about that. 302 00:22:45,270 --> 00:22:47,739 Suze: No, but it's better to get it from your paycheck 303 00:22:47,750 --> 00:22:53,010 Suze: directly into your HSA than outside money funding your HSA. 304 00:22:53,479 --> 00:22:57,459 KT: You won't forget to set it and forget it. Ok, Liz asks, 305 00:22:57,469 --> 00:23:00,989 KT: hope you and KT had a great trip, a trip 306 00:23:01,000 --> 00:23:02,458 KT: to Abu Dhabi. Did we? 307 00:23:02,790 --> 00:23:06,170 Suze: What was your highlight for? Not about the conference? Right? 308 00:23:06,180 --> 00:23:08,728 Suze: But about what you saw the Abraham House? 309 00:23:09,280 --> 00:23:16,410 KT: Oh, that probably was personally, I liked the oldest um structure, 310 00:23:16,420 --> 00:23:18,729 KT: the oldest building which was a palace 311 00:23:19,199 --> 00:23:21,859 KT: and it was the fortress to the mouth of the 312 00:23:21,869 --> 00:23:27,500 KT: river into Abu Dhabi because of the history as a safe, 313 00:23:27,510 --> 00:23:32,459 KT: you know, safe passage back in those days. But the 314 00:23:32,469 --> 00:23:37,300 KT: Abraham houses which are new were three houses built 315 00:23:37,385 --> 00:23:41,635 KT: perfect squares, same square footage and size. But they were, 316 00:23:42,444 --> 00:23:45,844 KT: they were three buildings of worship, 317 00:23:46,974 --> 00:23:51,204 Suze: A church, a synagogue and a mosque and they are stunning. 318 00:23:51,505 --> 00:23:54,454 KT: And the architect and the team that did this is 319 00:23:54,464 --> 00:23:58,734 KT: just brilliant. His name is David. I can't remember. I'll 320 00:23:58,744 --> 00:24:02,944 KT: have to look it up but unbelievable concept and it's 321 00:24:02,954 --> 00:24:03,504 KT: all 322 00:24:04,130 --> 00:24:09,790 KT: in one space. Within walking distance, these three squares, they're 323 00:24:09,800 --> 00:24:13,329 KT: all in extremely contemporary design. 324 00:24:14,699 --> 00:24:16,979 Suze: So if you're ever in Abu Dhabi, you should go 325 00:24:16,989 --> 00:24:18,329 Suze: there and take a look. 326 00:24:18,339 --> 00:24:22,410 KT: And the Louver is was just brilliant. The Louver Museum 327 00:24:22,420 --> 00:24:27,099 KT: stunning on the water as a big dome filled with moats. 328 00:24:27,109 --> 00:24:27,369 KT: And 329 00:24:27,770 --> 00:24:30,640 KT: I mean, it was just un unlike any museum I've 330 00:24:30,650 --> 00:24:33,469 KT: ever seen. So, so yeah, we had a great trip. 331 00:24:33,599 --> 00:24:37,149 KT: So quick question you mentioned about taking money out of 332 00:24:37,160 --> 00:24:42,180 KT: an HSA once you are 65 without penalties. But would 333 00:24:42,189 --> 00:24:45,209 KT: you have to pay taxes on it if it is 334 00:24:45,219 --> 00:24:49,989 KT: for non medical expenses? What if I shoe box receipts? 335 00:24:51,469 --> 00:24:53,780 Suze: Uh huh. Shoe box, there's a shoe box technique. 336 00:24:53,790 --> 00:24:56,650 KT: Oh, I didn't. I'm wondering what that means. What if 337 00:24:56,660 --> 00:24:59,989 KT: I shoe box receipts for qualified medical expenses that I 338 00:25:00,000 --> 00:25:04,300 KT: paid several years before out of my pocket? Are those 339 00:25:04,310 --> 00:25:07,439 KT: tax free if I take it out in a different 340 00:25:07,449 --> 00:25:10,739 KT: year than when I paid them? And how do I handle? 341 00:25:11,189 --> 00:25:13,649 KT: Well, there you go. Everyone keep those receipts. 342 00:25:14,790 --> 00:25:18,260 Suze: KT, here's the thing rather than using your money in an 343 00:25:18,270 --> 00:25:23,899 Suze: HSA to pay for qualified medical expenses. Sometimes people pay 344 00:25:23,910 --> 00:25:26,500 Suze: for them out of their own pocket and they let 345 00:25:26,510 --> 00:25:30,839 Suze: the money in the HSA grow and be invested. But 346 00:25:30,849 --> 00:25:34,680 Suze: if you keep all the receipts that you paid for, 347 00:25:35,550 --> 00:25:39,400 Suze: not with HSA money, but with your own money and 348 00:25:39,410 --> 00:25:41,520 Suze: you keep those receipts and they say if you keep 349 00:25:41,530 --> 00:25:45,020 Suze: it in a shoe box and you just save all 350 00:25:45,030 --> 00:25:49,739 Suze: of them, then later on in life, if you want to, 351 00:25:49,750 --> 00:25:52,790 Suze: as you're taking money out of the HSA for a 352 00:25:52,800 --> 00:25:58,619 Suze: non medical expense, a non-qualified medical expense, it should be, 353 00:25:58,670 --> 00:26:01,020 Suze: then you can use those receipts 354 00:26:01,760 --> 00:26:04,069 Suze: to make it. So you don't have to pay taxes 355 00:26:04,079 --> 00:26:04,750 Suze: on it. 356 00:26:05,260 --> 00:26:06,349 KT: That's great. 357 00:26:06,550 --> 00:26:11,619 Suze: Do you like that one? But yes, Liz, you absolutely 358 00:26:11,630 --> 00:26:13,290 Suze: can do that? Ok. 359 00:26:13,300 --> 00:26:17,630 KT: And my final question is, hello, KT and Suze. This 360 00:26:17,640 --> 00:26:18,619 KT: is from Jerry. 361 00:26:19,150 --> 00:26:26,449 KT: Are retirement account, distributions, pension, beneficiary, social security, distribution, et cetera, 362 00:26:26,660 --> 00:26:30,569 KT: tax based on the tax laws of the state where 363 00:26:30,579 --> 00:26:34,359 KT: you reside in at the time of distribution or the 364 00:26:34,369 --> 00:26:36,729 KT: state where the account was opened? 365 00:26:37,349 --> 00:26:39,660 KT: Now, that's a great question. I wouldn't have a clue 366 00:26:39,670 --> 00:26:42,409 KT: how to answer that. I have been a fan of 367 00:26:42,420 --> 00:26:45,410 KT: yours since I came upon your book of the Nine 368 00:26:45,420 --> 00:26:49,550 KT: Steps To Financial Freedom from the nineties. You have a 369 00:26:49,560 --> 00:26:55,530 KT: gift and you continue to inspire us all, most especially 370 00:26:55,540 --> 00:26:58,170 KT: women of a certain age. 371 00:26:59,140 --> 00:27:04,099 Suze: Thank you, my dear Jerry, that's so sweet. So what I would 372 00:27:04,109 --> 00:27:08,930 Suze: be telling you is this does not matter what was 373 00:27:08,939 --> 00:27:11,958 Suze: the name of that tax. I have to think about this. 374 00:27:12,170 --> 00:27:17,669 Suze: I think it was called the Source Tax, KT from 1996. 375 00:27:18,060 --> 00:27:20,030 Suze: The source tax bill 376 00:27:20,410 --> 00:27:26,459 Suze: eliminated the ability for states to come and tax you 377 00:27:26,510 --> 00:27:29,599 Suze: um money that you earn from them even if you 378 00:27:29,609 --> 00:27:32,910 Suze: move to another state. And it came about so that 379 00:27:32,920 --> 00:27:37,709 Suze: California and New York couldn't come after you if you 380 00:27:37,719 --> 00:27:41,550 Suze: moved to Florida to get taxes for their state. 381 00:27:41,819 --> 00:27:46,089 Suze: So Jerry, no, if you move to a different state 382 00:27:46,099 --> 00:27:48,489 Suze: than where you earn the money or where the pension 383 00:27:48,500 --> 00:27:53,829 Suze: is from, does not matter. You pay taxes according to 384 00:27:53,839 --> 00:27:56,560 Suze: the state that you are resident in. 385 00:27:57,040 --> 00:28:01,219 Suze: Now, there are some exceptions to this with restricted stock 386 00:28:01,229 --> 00:28:04,780 Suze: units and things like that. But that's a whole another story. 387 00:28:04,829 --> 00:28:08,550 Suze: But with the things that you're talking about, which are 388 00:28:08,560 --> 00:28:12,500 Suze: pensions and social security and things like that, you live 389 00:28:12,510 --> 00:28:15,260 Suze: in a state that's tax free and you earned it 390 00:28:15,270 --> 00:28:17,900 Suze: all when you were in New York. Guess what? New York? 391 00:28:17,910 --> 00:28:19,979 Suze: You are out of luck. 392 00:31:54,050 --> 00:31:56,349 Suze: All right. So there's only one thing we want you 393 00:31:56,359 --> 00:31:59,439 Suze: to remember when it comes to your money and it 394 00:31:59,449 --> 00:32:01,430 Suze: is this people first... 395 00:32:01,439 --> 00:32:02,079 Suze: Then leprechauns, 396 00:32:02,430 --> 00:32:03,709 Suze: then money 397 00:32:04,209 --> 00:32:05,869 KT: and you stay safe. 398 00:32:05,880 --> 00:32:10,020 Suze: No, you forgot things, KT, then things. All right. You 399 00:32:10,030 --> 00:32:10,520 Suze: got it 400 00:32:10,530 --> 00:32:11,880 KT: And Shamrocks. 401 00:32:11,890 --> 00:32:16,290 Suze: Shamrocks and of course, if you do that, then you 402 00:32:16,300 --> 00:32:19,170 Suze: will be unstoppable.