1 00:00:46,418 --> 00:00:50,400 Suze: August 15th, 2024. Welcome everybody to the Women and Money 2 00:00:50,409 --> 00:00:53,519 Suze: podcast as well as everybody smart enough to listen. 3 00:00:54,580 --> 00:00:56,939 Suze: I have the cutest little one right across from me 4 00:00:56,950 --> 00:00:59,330 Suze: giving me the biggest smile. 5 00:00:59,340 --> 00:01:00,279 KT: Do you know why? 6 00:01:00,439 --> 00:01:00,919 Suze: Why? 7 00:01:00,930 --> 00:01:04,679 KT: Today today is Saltwater Day. 8 00:01:04,989 --> 00:01:06,720 Suze: I know it's August 15th. 9 00:01:06,730 --> 00:01:08,919 KT: It's August 15th. It's Saltwater Day. 10 00:01:08,930 --> 00:01:11,500 Suze: Tell everybody what that is. Well, first of all, wait, KT, 11 00:01:11,510 --> 00:01:15,440 Suze: I know you're just so excited for today, but this is... 12 00:01:15,449 --> 00:01:16,959 KT: It's been a big week. 13 00:01:16,970 --> 00:01:19,400 Suze: It's been a big week, but this is the Ask 14 00:01:19,430 --> 00:01:22,199 Suze: KT and Suze Anything addition. 15 00:01:22,510 --> 00:01:25,430 Suze: So, Suze here, KT over there... 16 00:01:25,440 --> 00:01:28,160 KT: We missed, you, missed you. We missed you 17 00:01:30,150 --> 00:01:31,699 KT: and Sunday too, right? 18 00:01:31,970 --> 00:01:33,518 Suze: I did a podcast on Sunday. 19 00:01:33,589 --> 00:01:37,099 KT: We missed you last, I missed you. That's right. Yeah, 20 00:01:37,110 --> 00:01:41,160 KT: we had no power for like three days or something. 21 00:01:41,279 --> 00:01:46,290 KT: So today Saltwater Day is a very significant day from 22 00:01:46,300 --> 00:01:47,349 KT: my childhood. 23 00:01:47,510 --> 00:01:48,949 Suze: Tell everybody about it. 24 00:01:48,959 --> 00:01:49,639 KT: Well, I didn't, 25 00:01:49,860 --> 00:01:52,620 Suze: I've been having to do this every single year on 26 00:01:52,629 --> 00:01:54,230 Suze: August 15th, since the day, 27 00:01:54,722 --> 00:01:57,133 Suze: no matter where we were in the world, she's had 28 00:01:57,142 --> 00:01:57,652 Suze: to do this. 29 00:01:57,663 --> 00:02:02,822 KT: So August 15th Saltwater Day traditionally is an old ancient 30 00:02:02,833 --> 00:02:09,652 KT: Italian tradition, probably started by a bunch of fisherman. But 31 00:02:09,662 --> 00:02:11,852 KT: it was the feast of the Virgin Mary. And they 32 00:02:11,863 --> 00:02:16,253 KT: believed on August 15th, you would go into the sea, 33 00:02:16,263 --> 00:02:18,692 KT: the sea had healing waters 34 00:02:19,095 --> 00:02:23,424 KT: and especially on this day, which was, I suppose blessed 35 00:02:23,436 --> 00:02:26,966 KT: by the Virgin Mary long, long, long ago and is 36 00:02:26,975 --> 00:02:30,725 KT: still blessed. I think every day is blessed. But we, 37 00:02:30,735 --> 00:02:32,924 KT: we go and we traditionally had to put our feet 38 00:02:32,936 --> 00:02:36,255 KT: in the water as Children, little kids and even as babies, 39 00:02:36,266 --> 00:02:39,386 KT: they dunk you in the water and then you felt great. 40 00:02:39,395 --> 00:02:43,106 KT: You felt like you were healed of anything and blessed. 41 00:02:43,529 --> 00:02:46,940 KT: I remember one year that I couldn't go in the 42 00:02:46,949 --> 00:02:50,000 KT: water for whatever reason, I think I had a hip 43 00:02:50,008 --> 00:02:53,300 KT: surgery or something and my sister Lynn went and got 44 00:02:53,309 --> 00:02:56,039 KT: salt water and brought it up to the apartment and 45 00:02:56,050 --> 00:02:59,720 KT: poured it on my feet. Remember? So, in any event, 46 00:02:59,729 --> 00:03:04,800 KT: this whole week has been a very, very special week 47 00:03:04,809 --> 00:03:07,190 KT: with Suze connecting with water. 48 00:03:07,865 --> 00:03:11,125 Suze: All right. I mean, this is the KT podcast today, 49 00:03:11,133 --> 00:03:13,425 KT: But I'm gonna share a story with you. This all 50 00:03:13,434 --> 00:03:17,195 KT: happened this week. It's been a very blessed week. So 51 00:03:17,205 --> 00:03:19,975 KT: we live on an island as you all know. And 52 00:03:19,985 --> 00:03:22,445 KT: I've been wanting Suze to come with me onto the 53 00:03:22,455 --> 00:03:24,205 KT: ocean side of our land, 54 00:03:24,449 --> 00:03:26,869 KT: which is a little bit deeper and a little bit 55 00:03:27,038 --> 00:03:30,758 KT: more challenging to soak with me in the saltwater versus 56 00:03:30,880 --> 00:03:34,050 KT: the flats, which is the Bahama flats. It's very calm 57 00:03:34,119 --> 00:03:35,669 KT: and very shallow, 58 00:03:35,679 --> 00:03:37,199 Suze: Which I feel very safe. 59 00:03:37,399 --> 00:03:40,360 KT: It's very safe. It's, it's like a kiddie pool versus 60 00:03:40,369 --> 00:03:43,990 KT: the real pool. I wanted her to come with me into... 61 00:03:44,000 --> 00:03:46,110 Suze: It's the shallow end versus the deep end. 62 00:03:46,119 --> 00:03:49,309 KT: So for two years, Suze hasn't gone 63 00:03:49,585 --> 00:03:54,255 KT: into the ocean side, the Atlantic Ocean on our island 64 00:03:54,455 --> 00:03:58,455 KT: because it's where she also, you know, uh, unfortunately had 65 00:03:58,464 --> 00:04:02,654 KT: a setback after her surgery from trying to go into 66 00:04:02,835 --> 00:04:05,845 KT: deep water and getting out and it messed up her 67 00:04:05,854 --> 00:04:10,175 KT: nerves and surgery for two years time for that. 68 00:04:10,264 --> 00:04:13,095 Suze: So it's a traumatic event for me. Very traumatic. 69 00:04:13,104 --> 00:04:14,214 KT: So I go in 70 00:04:14,479 --> 00:04:17,669 KT: and I turn around and I see this very svelte 71 00:04:18,040 --> 00:04:20,470 KT: body coming towards me. 72 00:04:20,480 --> 00:04:23,100 Suze: Wait, wait, wait. You think I'm svelte do you? 73 00:04:23,109 --> 00:04:27,409 KT: I do. She's lost 25 pounds and looks fabulous in 74 00:04:27,420 --> 00:04:28,179 KT: a bathing suit. 75 00:04:28,190 --> 00:04:30,618 Suze: That took a long time to do everybody. 76 00:04:30,670 --> 00:04:33,579 KT: So she's, she's coming towards me and I'm in the 77 00:04:33,589 --> 00:04:36,899 KT: ocean and I'm like, oh my God, she's coming in. 78 00:04:36,928 --> 00:04:39,940 KT: She didn't say anything but she just walked straight in 79 00:04:40,470 --> 00:04:42,559 KT: and she got it and I said you did it. 80 00:04:42,570 --> 00:04:46,140 KT: I was so excited and we stayed in there, the 81 00:04:46,149 --> 00:04:49,429 KT: two of us soaking and talking and bobbing around in 82 00:04:49,440 --> 00:04:52,079 KT: the ocean for at least an hour and a half. 83 00:04:52,089 --> 00:04:54,890 Suze: Now, this is where it gets interesting because now I'm 84 00:04:54,899 --> 00:04:58,320 Suze: sitting here listening to KT tell you all of this. 85 00:04:59,089 --> 00:05:02,170 Suze: I'm curious, KT, are you going to tell them what 86 00:05:02,178 --> 00:05:04,950 Suze: happened again as I was coming out? 87 00:05:05,140 --> 00:05:05,700 KT: Yeah. 88 00:05:06,010 --> 00:05:07,779 Suze: Are you going to tell them the whole story? 89 00:05:08,420 --> 00:05:10,829 KT: So it's time to exit. And I said, let me 90 00:05:10,839 --> 00:05:13,670 KT: go out first and see how it feels. I said 91 00:05:13,678 --> 00:05:17,678 KT: we may have to crawl out like doggy paddle out 92 00:05:18,420 --> 00:05:21,079 KT: because the sand is soft and it was high tide. 93 00:05:21,350 --> 00:05:24,290 KT: So I'm, I go out, I kind of struggle climbing 94 00:05:24,299 --> 00:05:27,559 KT: up the beach to get to the hard sand. And 95 00:05:27,570 --> 00:05:31,119 KT: behind me, I see Suze flailing around in the waves 96 00:05:31,130 --> 00:05:34,519 KT: trying to get out. And finally she did, she held 97 00:05:34,529 --> 00:05:38,309 KT: on to my shoulders. We came back and got her, 98 00:05:38,320 --> 00:05:42,119 KT: walked her out. Soon as we got out, she beelines 99 00:05:42,130 --> 00:05:46,200 KT: for the house to the pool and sits down and 100 00:05:46,209 --> 00:05:46,488 KT: starts 101 00:05:47,200 --> 00:05:53,789 KT: sobbing and crying like a baby that you wouldn't believe 102 00:05:53,799 --> 00:05:57,229 KT: the tears and the crying. And it was very traumatic. 103 00:05:57,488 --> 00:05:59,459 KT: All I could do was wrap her up in a 104 00:05:59,470 --> 00:06:02,440 KT: towel and look at her and say it's all right. 105 00:06:02,450 --> 00:06:06,029 KT: Let it out. Are you crying now a little bit? 106 00:06:06,399 --> 00:06:10,220 KT: And it was a very, very big deal for her 107 00:06:10,230 --> 00:06:14,130 KT: to do this, a really big deal. People, if only 108 00:06:14,140 --> 00:06:14,750 KT: you knew 109 00:06:15,149 --> 00:06:19,979 KT: and she, she did it and she was releasing, I suppose, 110 00:06:20,220 --> 00:06:25,589 KT: two years of fear and frustration and pain all at 111 00:06:25,600 --> 00:06:26,329 KT: one go. 112 00:06:26,339 --> 00:06:29,058 Suze: Can we go off of this topic now? 113 00:06:29,339 --> 00:06:31,059 KT: She's a little teary right now. 114 00:06:31,410 --> 00:06:31,640 Suze: Do you know why? 115 00:06:34,070 --> 00:06:35,480 KT: I do Suze. 116 00:06:35,630 --> 00:06:39,459 Suze: Everybody to tell you. I had PTSD about this event. 117 00:06:40,779 --> 00:06:44,659 Suze: Is a traumatic understatement and 118 00:06:45,089 --> 00:06:48,940 Suze: it was almost as if I relived it when I 119 00:06:48,950 --> 00:06:50,309 Suze: was coming out. 120 00:06:50,339 --> 00:06:52,299 KT: But when, but how do you feel now? 121 00:06:52,309 --> 00:06:55,519 Suze: I can't wait because when today, when we're gonna put 122 00:06:55,529 --> 00:06:58,799 Suze: our little feet in salt water, I'm going to put 123 00:06:58,809 --> 00:07:03,519 Suze: my feet in the ocean side again today. 124 00:07:03,529 --> 00:07:05,269 KT: Maybe your body will follow. 125 00:07:06,779 --> 00:07:09,940 KT: So, so having said that we wish you all a 126 00:07:09,950 --> 00:07:10,679 KT: very happy August 15. 127 00:07:11,429 --> 00:07:12,950 Suze: Aren't you going to tell everyone about our Meteors? 128 00:07:12,959 --> 00:07:18,369 KT: So after the water event and connection with the sea, 129 00:07:18,380 --> 00:07:22,260 KT: she decides we need to connect with the stars. She said, KT, 130 00:07:22,269 --> 00:07:24,709 KT: I'm gonna set the alarm for four o'clock in the morning. 131 00:07:24,720 --> 00:07:27,910 KT: This was a few days ago. I said why? She 132 00:07:27,920 --> 00:07:32,380 KT: said because tonight is supposed to be a big meteor shower. 133 00:07:32,880 --> 00:07:36,260 KT: I said, ok, she, she said, are you OK with that? 134 00:07:36,269 --> 00:07:38,549 KT: I said, yeah, wake me up. We get up early 135 00:07:38,559 --> 00:07:40,820 KT: anyway to go fishing. So wake me up a little 136 00:07:40,829 --> 00:07:44,290 KT: bit earlier. Alarm goes off. We wake up, throw on 137 00:07:44,299 --> 00:07:47,299 KT: our bathrobes, go right outside in our backyard 138 00:07:47,700 --> 00:07:50,679 KT: and lay down on lounge chairs looking up at the 139 00:07:50,690 --> 00:07:55,570 KT: sky and we're counting bam, bam bing, bing boom, ba 140 00:07:55,579 --> 00:07:59,690 KT: ba all these stars streaking by and it was fun. 141 00:07:59,859 --> 00:08:01,380 KT: And then she looked at me, she said, have you 142 00:08:01,390 --> 00:08:03,670 KT: had enough? I said, yeah, let's go back to bed. 143 00:08:03,875 --> 00:08:06,894 Suze: We didn't get up till 830 after that. But anyway, 144 00:08:06,904 --> 00:08:11,434 Suze: let me start again. Welcome everybody to where KT tells 145 00:08:11,445 --> 00:08:17,375 Suze: you everything that's happened with Suze and KT this past week. 146 00:08:17,385 --> 00:08:21,135 Suze: You know, sometimes I think it's great that you hear 147 00:08:21,144 --> 00:08:23,755 Suze: stories like that and that you get to know a 148 00:08:23,765 --> 00:08:27,125 Suze: little bit more about both of us. The other day, 149 00:08:27,135 --> 00:08:31,135 Suze: I was listening to KT talk to her sister Lynn 150 00:08:31,609 --> 00:08:34,369 Suze: and I, because she was on speaker phone so I 151 00:08:34,380 --> 00:08:37,669 Suze: could hear her and I love to eavesdrop just so, 152 00:08:37,679 --> 00:08:40,590 Suze: you know. But anyway, I always wonder what are they 153 00:08:40,599 --> 00:08:45,099 Suze: talking about, however, and I hear her tell Lynn the 154 00:08:45,109 --> 00:08:48,729 Suze: story about me breaking down and me crying and then 155 00:08:48,739 --> 00:08:51,190 Suze: I hear Lynn say the following: 156 00:08:52,080 --> 00:08:56,219 Suze: That's so good. It's good for Suze to do that 157 00:08:56,229 --> 00:09:00,909 Suze: because she always seemed so strong and stoic and stoic 158 00:09:00,919 --> 00:09:03,710 Suze: and that she could do anything and it's good to 159 00:09:03,719 --> 00:09:08,090 Suze: show that other side of her as well. And was 160 00:09:08,099 --> 00:09:10,859 Suze: that partly why KT you decided to tell that? 161 00:09:11,070 --> 00:09:14,119 KT: Yeah, I think it's important for all of you. It's 162 00:09:14,130 --> 00:09:15,659 KT: interesting to hear 163 00:09:16,099 --> 00:09:17,570 KT: our day to day life. 164 00:09:17,659 --> 00:09:20,369 Suze: I hope it is for all of you. But anyway, 165 00:09:21,479 --> 00:09:27,010 Suze: so now what we can do is answer the emails 166 00:09:27,020 --> 00:09:29,090 Suze: many of you sent in if you want to send 167 00:09:29,099 --> 00:09:32,890 Suze: in an email and if KT chooses it, we'll ask 168 00:09:32,900 --> 00:09:36,750 Suze: it and answer it on this podcast. Do so to 169 00:09:36,760 --> 00:09:41,530 Suze: ask Suze Suze podcast at gmail.com. 170 00:09:41,969 --> 00:09:44,289 Suze: What do you have for me? 171 00:09:45,320 --> 00:09:49,479 KT: The first question it says Suze, recently my friend told 172 00:09:49,489 --> 00:09:54,569 KT: me she heard about an offer for 9.5% for a 173 00:09:54,580 --> 00:09:58,890 KT: five month CD with a max of $3000. How can 174 00:09:58,900 --> 00:09:59,880 KT: they do that? 175 00:10:00,330 --> 00:10:01,840 Suze: So, are you asking me how they can do 176 00:10:01,934 --> 00:10:03,034 Suze: that or is that the question? 177 00:10:03,065 --> 00:10:07,054 KT: The, the, the listeners asking Susie, how do they do that? 178 00:10:07,164 --> 00:10:09,445 Suze: Here's what I would say. I don't know if, if 179 00:10:09,455 --> 00:10:12,075 Suze: it's a bank or a credit union. I don't know 180 00:10:12,244 --> 00:10:15,564 Suze: where you heard. This. Is it good for everywhere in 181 00:10:15,575 --> 00:10:17,914 Suze: the United States or is it good for just a 182 00:10:17,924 --> 00:10:22,085 Suze: particular portion? Like for instance, if this was a credit union, 183 00:10:22,604 --> 00:10:24,974 Suze: I'm sure it's only good for where that credit union 184 00:10:24,984 --> 00:10:26,625 Suze: is located. However, 185 00:10:27,630 --> 00:10:32,890 Suze: when financial institutions, in my opinion, do something like that, 186 00:10:33,489 --> 00:10:38,770 Suze: there's also a reason why just let's look at the math, 187 00:10:39,530 --> 00:10:44,299 Suze: you put in a maximum of $3000 and they're gonna 188 00:10:44,309 --> 00:10:48,539 Suze: give you 9.5% interest. Is that what they said? KT right? 189 00:10:48,549 --> 00:10:56,900 Suze: For five months. So that will be approximately $115 of interest. 190 00:10:57,320 --> 00:11:01,260 Suze: Not that, that's bad, but ok, but there's got to 191 00:11:01,270 --> 00:11:05,989 Suze: be something else with that offer. Either you have to 192 00:11:06,000 --> 00:11:09,299 Suze: open up an additional account where you fund it every month, 193 00:11:09,440 --> 00:11:12,520 Suze: you have to make so many transactions, you have to 194 00:11:12,530 --> 00:11:13,819 Suze: do something 195 00:11:14,205 --> 00:11:18,914 Suze: to make that worth their while to do such a thing. 196 00:11:19,414 --> 00:11:24,875 Suze: Normally they do such a thing because truthfully $115 is 197 00:11:24,885 --> 00:11:29,234 Suze: a very little amount of money to pay to get 198 00:11:29,244 --> 00:11:30,434 Suze: a new client. 199 00:11:30,789 --> 00:11:35,239 Suze: Because chances are, once you are there with your money, 200 00:11:35,489 --> 00:11:38,960 Suze: you'll stay there. You're not gonna switch it every five 201 00:11:38,969 --> 00:11:42,829 Suze: months or whatever. So look at the fine print, I 202 00:11:42,840 --> 00:11:45,469 Suze: think you will find that you have to do other 203 00:11:45,479 --> 00:11:49,880 Suze: things just besides this and then you'll have to decide 204 00:11:49,890 --> 00:11:52,059 Suze: if it's worth it to you or not. 205 00:11:52,469 --> 00:11:55,640 Suze: I personally don't like commands like that. I like things that, 206 00:11:55,650 --> 00:11:58,789 Suze: you know, KT that are very straightforward. This is what 207 00:11:58,799 --> 00:12:01,010 Suze: you're gonna get for the year. This is what you're 208 00:12:01,020 --> 00:12:03,059 Suze: gonna do also. I just have to say something 209 00:12:04,099 --> 00:12:07,580 Suze: possibly five months from now. Interest rates could be a 210 00:12:07,590 --> 00:12:12,159 Suze: whole lot lower than they are right now. So you 211 00:12:12,169 --> 00:12:16,090 Suze: go over there, you lock in 9.5% for five months 212 00:12:16,099 --> 00:12:19,270 Suze: plus whatever else you have to do. And maybe you 213 00:12:19,280 --> 00:12:24,619 Suze: gave up locking in maybe 5% for a year in 214 00:12:24,630 --> 00:12:28,159 Suze: the long run. You may have made a big mistake 215 00:12:28,169 --> 00:12:30,479 Suze: up to you. I don't know where they heard about it, 216 00:12:31,130 --> 00:12:32,669 Suze: but that's what I think. 217 00:12:32,679 --> 00:12:38,390 KT: OK, my next question: Suze, I'm confused. We inherited an 218 00:12:38,400 --> 00:12:42,689 KT: IRA when my mom died this year. She was to 219 00:12:42,700 --> 00:12:48,589 KT: take out 25,000 this year in RMDs but only took 220 00:12:48,599 --> 00:12:50,859 KT: out 5000 so far. 221 00:12:51,289 --> 00:12:54,390 KT: So we have no idea how my brother and I, 222 00:12:54,440 --> 00:12:59,978 KT: who are equal beneficiaries split the remaining $20,000 this year. 223 00:12:59,989 --> 00:13:02,478 Suze: A lot of people do that. Well, you know, when 224 00:13:02,489 --> 00:13:07,030 Suze: you inherit KT and IRA from somebody, then you each 225 00:13:07,039 --> 00:13:10,280 Suze: get your own portion since they're equal, you know, they 226 00:13:10,289 --> 00:13:12,250 Suze: would each, whatever, I don't know what's in there, but 227 00:13:12,260 --> 00:13:15,809 Suze: they each get the same amount and sometimes they think 228 00:13:15,820 --> 00:13:19,690 Suze: they need to take out equal amounts in the year 229 00:13:20,039 --> 00:13:24,460 Suze: that mama died. If they still need to take out 230 00:13:24,469 --> 00:13:29,218 Suze: $20,000 of RMD, they can divide it any way they want. 231 00:13:29,669 --> 00:13:32,669 Suze: If the brother, for instance, is in a lower tax 232 00:13:32,679 --> 00:13:37,580 Suze: bracket than the sister, then the brother could take all 233 00:13:37,590 --> 00:13:41,299 Suze: $20,000 out if he wanted, they can divide it any 234 00:13:41,309 --> 00:13:45,659 Suze: way they want in the year of death. What's remaining 235 00:13:45,929 --> 00:13:49,390 Suze: Then obviously in the next years and all it will 236 00:13:49,400 --> 00:13:53,359 Suze: be based on their own single life expectancies. All right. 237 00:13:53,409 --> 00:13:57,609 KT: All right. Next question. Can you explain the social security 238 00:13:57,619 --> 00:14:01,750 KT: tax torpedo in simple terms? 239 00:14:02,135 --> 00:14:07,534 KT: So we can understand how to best strategize in retirement. 240 00:14:07,544 --> 00:14:11,635 Suze: I'll tell you how to best strategize in retirement. Roth IRAs, 241 00:14:11,674 --> 00:14:17,155 Suze: Roth 401k s Roth 403 BS, Roth TSPs. Why is 242 00:14:17,164 --> 00:14:20,914 Suze: that the torpedo? Which is why they referred to it? 243 00:14:20,924 --> 00:14:25,854 Suze: KT as that? Is that when you get older and 244 00:14:25,864 --> 00:14:28,164 Suze: now you are taking Social Security 245 00:14:28,729 --> 00:14:33,309 Suze: depending on your income from all kinds of things, your pension, 246 00:14:33,320 --> 00:14:38,979 Suze: your wages, dividend interest, even tax free interest on municipal bonds. 247 00:14:39,460 --> 00:14:44,299 Suze: If they add that to half of your social security benefit, 248 00:14:44,549 --> 00:14:49,140 Suze: if that amount is over a certain threshold, it just depends. 249 00:14:49,150 --> 00:14:52,219 Suze: Are you single? Are you married? Whatever? But 30 to 250 00:14:52,229 --> 00:14:57,280 Suze: $40,000 in that area around there, either 50% of your 251 00:14:57,289 --> 00:15:02,890 Suze: social security will be taxable, but above another threshold, 85% 252 00:15:02,900 --> 00:15:03,429 Suze: of your 253 00:15:03,594 --> 00:15:09,354 Suze: social security will be taxable. The torpedo is when people 254 00:15:09,364 --> 00:15:13,994 Suze: get older. Now they have to take money out of 255 00:15:14,005 --> 00:15:21,585 Suze: their traditional retirement accounts. Their RMDs, those RMDs count towards 256 00:15:21,594 --> 00:15:22,534 Suze: income 257 00:15:23,460 --> 00:15:26,809 Suze: to calculate if their social security is going to be 258 00:15:26,820 --> 00:15:32,369 Suze: taxable or not. If they had a Roth retirement account, 259 00:15:33,280 --> 00:15:37,299 Suze: there are no RMDs and any money you take out 260 00:15:37,400 --> 00:15:43,900 Suze: of a Roth doesn't go towards the taxation of social security. 261 00:15:43,909 --> 00:15:46,080 KT: So if you had a Roth, you don't get a torpedo. 262 00:15:46,090 --> 00:15:50,140 Suze: You don't get a torpedo. So the best solution since obviously, 263 00:15:50,150 --> 00:15:52,739 Suze: it sounds like this person has a lot of time 264 00:15:53,119 --> 00:15:56,059 Suze: before they take something out because they say, how do 265 00:15:56,070 --> 00:15:59,599 Suze: you prepare for the future? The best way to prepare 266 00:15:59,609 --> 00:16:06,039 Suze: for it is to only have Roth retirement accounts bar. None. 267 00:16:06,049 --> 00:16:06,380 Suze: All right. 268 00:16:06,390 --> 00:16:10,919 KT: Ok, Suze. Next question. Thank you for your time to 269 00:16:10,929 --> 00:16:12,210 KT: answer this email. 270 00:16:12,219 --> 00:16:14,099 Suze: How did they know I was gonna answer it? 271 00:16:14,210 --> 00:16:15,020 KT: I have been... 272 00:16:15,219 --> 00:16:16,340 Suze: Is that why you picked it? 273 00:16:16,989 --> 00:16:20,099 KT: Well, it's more the content is why you'll, you'll hear it. 274 00:16:20,469 --> 00:16:23,900 KT: I have been a fan of yours for years purchasing 275 00:16:23,909 --> 00:16:27,500 KT: many of your books. I have a son who suffers 276 00:16:27,510 --> 00:16:34,200 KT: from addiction and mental health issues. He is not receiving SSI Disability. 277 00:16:34,210 --> 00:16:38,450 KT: He refuses to apply with that being said I have 278 00:16:38,460 --> 00:16:42,619 KT: had a living trust written that will provide him with 279 00:16:42,630 --> 00:16:46,700 KT: monthly income distribution by my trustee, upon my death, 280 00:16:46,979 --> 00:16:50,080 KT: Most of my assets are in an Ira which I 281 00:16:50,090 --> 00:16:54,440 KT: was told my living trust could not be the beneficiary 282 00:16:54,450 --> 00:16:56,520 KT: because of tax implications. 283 00:16:57,289 --> 00:16:57,359 Suze: Who told her that? 284 00:16:57,369 --> 00:17:01,169 KT: I don't know... which defeats the whole purpose of providing for 285 00:17:01,179 --> 00:17:05,969 KT: my son after my death, my financial advisor showed my 286 00:17:05,979 --> 00:17:08,439 KT: living trust to a lawyer who said 287 00:17:08,698 --> 00:17:12,999 KT: as it is written, this living trust qualifies as a 288 00:17:13,009 --> 00:17:18,197 KT: pass through trust because it's there and therefore assets in 289 00:17:18,208 --> 00:17:21,898 KT: my IRA could feed my living trust. 290 00:17:22,640 --> 00:17:26,060 KT: I would most appreciate your knowledge on this matter before 291 00:17:26,069 --> 00:17:31,910 KT: transferring my IRA account to this new financial advisor. So 292 00:17:31,920 --> 00:17:33,650 KT: did he give her the right information? 293 00:17:34,030 --> 00:17:38,329 Suze: Yes, but I'm not sure just because a financial advisor knew 294 00:17:38,540 --> 00:17:42,140 Suze: that you could have a trust as a beneficiary to 295 00:17:42,150 --> 00:17:43,349 Suze: an Ira. 296 00:17:43,969 --> 00:17:46,609 Suze: That that's the reason you would transfer money to a 297 00:17:46,619 --> 00:17:51,219 Suze: financial advisor, you transfer money to a financial advisor when 298 00:17:51,229 --> 00:17:53,510 Suze: you feel comfortable with them, when they've given you a 299 00:17:53,520 --> 00:17:56,819 Suze: true plan of what they're doing with your money within 300 00:17:56,829 --> 00:18:02,329 Suze: the IRA. And the understanding, especially if your son doesn't 301 00:18:02,339 --> 00:18:05,389 Suze: want to go on SSI and everything like that, he's 302 00:18:05,400 --> 00:18:10,310 Suze: going to be a non eligible beneficiary upon your death. 303 00:18:10,910 --> 00:18:15,458 Suze: And so within 10 years, whatever you have in your 304 00:18:15,469 --> 00:18:19,750 Suze: IRA is going to have to be distributed if you 305 00:18:19,760 --> 00:18:25,369 Suze: haven't already started RMDs But either way, within 10 years 306 00:18:25,380 --> 00:18:29,489 Suze: that money has to be distributed. So the question becomes, 307 00:18:29,500 --> 00:18:32,688 Suze: if it's a big lump sum at the end of 308 00:18:32,699 --> 00:18:36,689 Suze: those 10 years, will he be able to manage it? 309 00:18:36,979 --> 00:18:40,880 Suze: You know, KT, so many people are getting this particular 310 00:18:40,890 --> 00:18:43,900 Suze: thing wrong. You hear a lot of people say, never 311 00:18:43,910 --> 00:18:47,119 Suze: make your trust a beneficiary or do those things. And 312 00:18:47,130 --> 00:18:49,170 Suze: it's true because you have to make sure that your 313 00:18:49,180 --> 00:18:51,790 Suze: trust is a see through trust, which I'll explain in 314 00:18:51,800 --> 00:18:55,869 Suze: a second. And if it's not, it can become very complicated, 315 00:18:55,880 --> 00:18:59,609 Suze: different tax brackets, things like that. But if you know 316 00:18:59,619 --> 00:19:02,319 Suze: that you have set it up correctly, 317 00:19:03,000 --> 00:19:08,060 Suze: and what does that mean? It means that your trust 318 00:19:08,069 --> 00:19:12,369 Suze: that you have created. First of all, is an irrevocable 319 00:19:12,380 --> 00:19:16,040 Suze: trust upon your death. Just so you know that nothing 320 00:19:16,050 --> 00:19:20,140 Suze: can be changed after the account owner has died. That's 321 00:19:20,150 --> 00:19:24,099 Suze: number one, number two, that you can look at the 322 00:19:24,109 --> 00:19:29,819 Suze: trust documents and you can actually identify the beneficiaries. You 323 00:19:29,829 --> 00:19:31,420 Suze: can see right through it 324 00:19:31,810 --> 00:19:35,609 Suze: as to who is going to inherit the money like 325 00:19:35,619 --> 00:19:37,780 Suze: a lot of times they'll say another trust is gonna 326 00:19:37,790 --> 00:19:40,400 Suze: inherit it or this is gonna, and they don't want 327 00:19:40,410 --> 00:19:43,869 Suze: you to know for whatever reason who's actually inheriting the 328 00:19:43,880 --> 00:19:44,430 Suze: money 329 00:19:44,760 --> 00:19:47,420 Suze: and then it's not a see through trust. So just 330 00:19:47,430 --> 00:19:52,089 Suze: as the name applies, see through means you can look 331 00:19:52,099 --> 00:19:55,540 Suze: at the trust documents and see right then and there 332 00:19:55,550 --> 00:20:00,880 Suze: who are going to be the beneficiaries of that trust 333 00:20:00,890 --> 00:20:03,859 Suze: and they do that KT so that RMDs can be 334 00:20:03,869 --> 00:20:08,060 Suze: calculated and things like that. That's basically a very simple 335 00:20:08,069 --> 00:20:11,339 Suze: explanation of what a see through trust is. 336 00:20:13,339 --> 00:20:17,739 KT: Can I ask you another question? Is it best to 337 00:20:17,750 --> 00:20:19,869 KT: set it up so you have a see-through trust? 338 00:20:19,880 --> 00:20:23,060 Suze: That's the only trust. If you're going to name a trust, 339 00:20:23,189 --> 00:20:27,180 Suze: the beneficiary of any retirement account. The only way to 340 00:20:27,189 --> 00:20:29,479 Suze: do that is to make sure in the majority of 341 00:20:29,489 --> 00:20:32,579 Suze: cases that it is a see through trust. 342 00:20:33,130 --> 00:20:35,760 KT: That's the advice you have to walk away with. Number one, 343 00:20:35,859 --> 00:20:38,880 KT: your new advisor was right. You can do this but 344 00:20:38,890 --> 00:20:40,849 KT: make sure it's a see through. 345 00:20:41,000 --> 00:20:44,270 Suze: And obviously it was and it's really easy to identify 346 00:20:44,280 --> 00:20:48,649 Suze: if it is by simply knowing that you've named individual beneficiaries. 347 00:20:48,839 --> 00:20:50,359 Suze: But there you go. 348 00:20:50,520 --> 00:20:52,000 KT: All right. Next question 349 00:20:52,339 --> 00:20:55,550 KT: ready for this one. I love this one, Susze years 350 00:20:55,560 --> 00:20:58,079 KT: ago against your advice. 351 00:20:58,619 --> 00:21:01,599 Suze: Now, what did they do? They bought an insurance policy, 352 00:21:01,609 --> 00:21:02,229 Suze: what they do? 353 00:21:02,239 --> 00:21:04,869 KT: No property. I bought a piece of property... 354 00:21:04,880 --> 00:21:06,379 Suze: I never advised against buying proper. 355 00:21:07,310 --> 00:21:09,989 KT: ...within a traditional IRA... 356 00:21:10,099 --> 00:21:13,359 Suze: Well that I advised against so advised against. 357 00:21:13,369 --> 00:21:14,719 KT: Now I'm of age 358 00:21:14,895 --> 00:21:18,916 KT: that I have to start taking out required minimum distribution. 359 00:21:18,926 --> 00:21:19,676 Suze: You're screwed.  Sorry. 360 00:21:20,705 --> 00:21:24,244 KT: The property needs a lot of work. When I have 361 00:21:24,255 --> 00:21:26,176 KT: to take the money out to fix the roof or 362 00:21:26,186 --> 00:21:30,234 KT: any of those things from the IRA, do they count 363 00:21:30,244 --> 00:21:32,635 KT: towards my required minimum? 364 00:21:32,715 --> 00:21:36,115 Suze: They do not, they do not, they do not. So 365 00:21:36,125 --> 00:21:37,355 Suze: you're gonna have to take money 366 00:21:37,612 --> 00:21:41,160 Suze: out of that IRA to fix whatever you need to 367 00:21:41,171 --> 00:21:45,021 Suze: fix for that property. And in addition to that, you 368 00:21:45,031 --> 00:21:49,291 Suze: are going to have to take out your required minimum distributions. So, 369 00:21:49,302 --> 00:21:52,472 Suze: are you so sure that this was the smart thing 370 00:21:52,482 --> 00:21:55,511 Suze: for you to do? I don't think so. Go on. 371 00:21:55,521 --> 00:21:58,541 KT: All right now, I have one called, I'm so confused. 372 00:21:58,552 --> 00:21:59,911 KT: I am 73. 373 00:22:00,579 --> 00:22:04,089 Suze: I'm so confused too because I'm 73 374 00:22:04,430 --> 00:22:10,089 KT: I have about $250,000 in my IRA that I have 375 00:22:10,099 --> 00:22:14,419 KT: to start taking RMDs from. I know I should have 376 00:22:14,430 --> 00:22:18,380 KT: listened and done a Roth. I have another IRA that 377 00:22:18,390 --> 00:22:21,938 KT: is in an annuity with a value of about 50,000 378 00:22:21,949 --> 00:22:23,050 KT: that I get a monthly 379 00:22:23,180 --> 00:22:27,729 KT: fixed income of 500 a month or 6000 a year. 380 00:22:27,810 --> 00:22:30,439 KT: So how do I figure out my RMD? 381 00:22:31,449 --> 00:22:39,000 Suze: So the Secure Act 2.0 recently made this very, very simple. Before, 382 00:22:39,010 --> 00:22:43,459 Suze: it was very, very confusing. So here's all you need 383 00:22:43,469 --> 00:22:45,839 Suze: to do in your particular situation. 384 00:22:46,579 --> 00:22:52,489 Suze: If you have $250,000 in your retirement account. Remember, it's 385 00:22:52,500 --> 00:22:56,890 Suze: based on the last year's ending balance. So you don't 386 00:22:56,900 --> 00:22:59,599 Suze: base it on what it's worth today. You base it 387 00:22:59,609 --> 00:23:02,459 Suze: on the December 31st balance 388 00:23:02,859 --> 00:23:07,188 Suze: and value of your annuity. So let's just say at 389 00:23:07,199 --> 00:23:10,530 Suze: the end of last year, your IRA that you have 390 00:23:10,540 --> 00:23:16,079 Suze: stocks and everything in I'm assuming was worth $250,000 at 391 00:23:16,089 --> 00:23:18,449 Suze: the end of last year, 392 00:23:19,119 --> 00:23:22,439 Suze: your IRA that you said has a value of about 393 00:23:22,449 --> 00:23:27,438 Suze: $50,000 was as of last year as well. You add 394 00:23:27,449 --> 00:23:35,540 Suze: the 250,000 plus the 50,000 and that's $300,000 at your 395 00:23:35,550 --> 00:23:38,020 Suze: age of 73 396 00:23:38,630 --> 00:23:44,030 Suze: you would divide that 300,000 by 26.5 which is, if 397 00:23:44,040 --> 00:23:48,619 Suze: you looked up your life expectancy, that's approximately what it is. 398 00:23:48,780 --> 00:23:51,550 Suze: And that would tell you, you have to take RMDs 399 00:23:52,010 --> 00:23:57,650 Suze: out of about $11,321 a year. I had to do 400 00:23:57,660 --> 00:24:04,609 Suze: the math. There you are already taking out $6000 a 401 00:24:04,619 --> 00:24:07,879 Suze: year from your annuity. 402 00:24:08,250 --> 00:24:15,510 Suze: So then you just would subtract the $6000 from the 11,321. 403 00:24:15,920 --> 00:24:18,229 Suze: And you would find out that you have to take 404 00:24:18,239 --> 00:24:26,060 Suze: out an additional $5321 from your account that has the 405 00:24:26,069 --> 00:24:30,489 Suze: $250,000 in it. KT what? 406 00:24:31,729 --> 00:24:34,560 KT: I'm just saying, she just said, oh, the new tax, 407 00:24:34,569 --> 00:24:37,500 KT: the new laws made this very easy for you. That 408 00:24:37,510 --> 00:24:40,449 KT: did not sound very easy to me. I don't know 409 00:24:40,459 --> 00:24:43,239 KT: about the rest of you listening, but that made my 410 00:24:43,250 --> 00:24:47,319 KT: head spin if I hope I, I, I'm, I'm lucky 411 00:24:47,329 --> 00:24:49,319 KT: I have a Suze Orman to figure out my RMD. 412 00:24:50,030 --> 00:24:51,919 Suze: We don't have an annuity. So you don't have to worry. 413 00:24:51,930 --> 00:24:54,739 KT: Oh, but I still have to do it. I still 414 00:24:54,750 --> 00:24:55,160 KT: have an RMD. 415 00:24:55,959 --> 00:24:59,069 Suze: You have, you start next year. My RMD 416 00:24:59,829 --> 00:25:03,649 Suze: is this year. So I have to take the amount 417 00:25:03,869 --> 00:25:07,780 Suze: that's in my IRA because I wasn't smart enough to 418 00:25:07,790 --> 00:25:11,849 Suze: listen to my own advice years ago and realize there 419 00:25:11,859 --> 00:25:14,069 Suze: was a way for me to get money into a 420 00:25:14,079 --> 00:25:14,790 Suze: Roth 421 00:25:15,260 --> 00:25:18,089 Suze: via the back door. So now I have all this 422 00:25:18,099 --> 00:25:22,650 Suze: money in my IRA, KT that I have to divide by. 423 00:25:22,660 --> 00:25:26,569 Suze: That's how I knew it was 26.5. That's what I 424 00:25:26,579 --> 00:25:29,839 Suze: have to do. And I have to take that money out. 425 00:25:30,040 --> 00:25:33,099 Suze: That's why I was telling you we were doing QCDs. 426 00:25:33,439 --> 00:25:35,270 Suze: Do you remember what a QCD was? 427 00:25:36,130 --> 00:25:39,319 KT: Charitable distribution. And you asked me, that's when you were 428 00:25:39,329 --> 00:25:41,770 KT: starting to ask me all my favorite charities. 429 00:25:42,050 --> 00:25:47,969 Suze: And so you're allowed $105,000 max or I am this year, 430 00:25:48,250 --> 00:25:52,189 Suze: to count towards my RMDs - to give it away to charity. 431 00:25:52,199 --> 00:25:54,619 Suze: So it doesn't count as our taxes and to help them, 432 00:25:54,630 --> 00:25:55,770 KT: You have a big RMD. 433 00:25:57,359 --> 00:25:58,430 Suze: Yeah. Well, 434 00:25:59,260 --> 00:26:04,209 Suze: I'm happy about that. Can't believe I was so stupid. 435 00:26:04,439 --> 00:26:07,040 Suze: So stupid. Don't be stupid. Like I was ok. 436 00:26:07,050 --> 00:26:11,199 KT: Ready? Next question. My dad died this year. He did 437 00:26:11,209 --> 00:26:14,829 KT: not take out his RMD at all last year. I'm gonna, 438 00:26:14,839 --> 00:26:18,060 KT: I'm on the RMD theme because I, I knew you 439 00:26:18,069 --> 00:26:20,270 KT: and I are, are of age to do this. I 440 00:26:20,280 --> 00:26:23,290 KT: was told I will owe a 50% penalty on the 441 00:26:23,300 --> 00:26:26,670 KT: amount he should have taken out, but he didn't, Suze. 442 00:26:26,680 --> 00:26:28,900 KT: Is this true? I could have sworn. 443 00:26:29,114 --> 00:26:31,415 KT: And I heard in one of your podcast that it's 444 00:26:31,425 --> 00:26:34,135 KT: no longer true. Is it Susie? 445 00:26:34,175 --> 00:26:36,935 Suze: Well, it's true that there is a penalty but it's 446 00:26:36,944 --> 00:26:43,534 Suze: no longer 50%. It's 25% that can be reduced to 10% 447 00:26:43,744 --> 00:26:46,535 Suze: if you just do certain things. So it's not that 448 00:26:46,545 --> 00:26:48,844 Suze: big of a deal. However, for you, 449 00:26:49,400 --> 00:26:53,609 Suze: what you need to know is that the beneficiaries of 450 00:26:53,709 --> 00:26:58,400 Suze: an IRA, which you are of somebody who didn't take 451 00:26:58,410 --> 00:27:03,739 Suze: out their RMDs last year that the penalty has automatically 452 00:27:03,750 --> 00:27:07,060 Suze: been like abated. That's the word I think they use 453 00:27:07,150 --> 00:27:11,339 Suze: by taking the distribution by December 31st of the year 454 00:27:11,349 --> 00:27:15,229 Suze: after death. So you have till the end of this 455 00:27:15,239 --> 00:27:15,979 Suze: year 456 00:27:16,569 --> 00:27:19,438 Suze: to take out the amount that he should have taken 457 00:27:19,449 --> 00:27:24,149 Suze: out without paying any penalty on it. What. So. Ever. 458 00:27:25,329 --> 00:27:25,899 Suze: All right. 459 00:27:26,739 --> 00:27:27,569 KT: I think it's very confusing. 460 00:27:28,530 --> 00:27:31,849 Suze: Hopefully you also know you have to take out the 461 00:27:31,859 --> 00:27:36,319 Suze: RMD based on your life expectancy now for the next 462 00:27:36,329 --> 00:27:40,458 Suze: nine years. Anyway, go on... in addition to what he 463 00:27:40,469 --> 00:27:42,510 Suze: should have taken out last year. 464 00:27:42,609 --> 00:27:46,839 KT: OK. My final question is not about RMDs. Everybody ready, 465 00:27:47,479 --> 00:27:50,859 KT: Suze... This, this was funny. It was from Teresa. She 466 00:27:50,869 --> 00:27:55,310 KT: said I'm so mad. I put money in SMH. What 467 00:27:55,319 --> 00:27:58,770 KT: a loser. And he thought... so I looked up SMH, 468 00:27:59,550 --> 00:28:01,969 KT: it's a semiconductor ETF. 469 00:28:02,489 --> 00:28:03,079 Suze: By who, KT? 470 00:28:03,540 --> 00:28:04,219 KT: Oh I don't know. 471 00:28:08,849 --> 00:28:13,869 Suze: VanEck. Teresa, Teresa, Teresa, listen to me, girlfriend. There was a 472 00:28:13,880 --> 00:28:19,189 Suze: time not so long ago that everybody wanted to own 473 00:28:19,270 --> 00:28:25,339 Suze: semiconductor stocks and what are semiconductor stocks? They were stocks 474 00:28:25,349 --> 00:28:33,188 Suze: like NVIDIA, Broadcom Advanced Micro Devices, Taiwan Semiconductors. Stocks that 475 00:28:33,199 --> 00:28:36,550 Suze: were going through the roof. And if 476 00:28:36,625 --> 00:28:40,515 Suze: you did not have the money to buy those individual 477 00:28:40,525 --> 00:28:46,854 Suze: stocks or you just wanted a basket of semiconductor stocks, 478 00:28:47,064 --> 00:28:49,045 Suze: the way that you should have done it. And I 479 00:28:49,055 --> 00:28:51,364 Suze: would have wanted you to do it and I possibly 480 00:28:51,375 --> 00:28:55,594 Suze: still want you to do it is through an exchange 481 00:28:55,645 --> 00:28:58,765 Suze: traded fund by the initials SMH. 482 00:29:01,390 --> 00:29:10,729 Suze: This ETF has 25 semiconductor stocks in it totally. And 483 00:29:10,979 --> 00:29:16,589 Suze: it's true that there was a time when everybody wanted semiconductors. 484 00:29:16,780 --> 00:29:22,489 Suze: Then what happened? Semiconductors started to go down 485 00:29:23,160 --> 00:29:27,719 Suze: and down and down and all of you started to 486 00:29:27,729 --> 00:29:32,119 Suze: freak out. Now, I don't know when you bought it. 487 00:29:32,790 --> 00:29:37,869 Suze: However what's important for you to understand. And remember is 488 00:29:37,880 --> 00:29:40,780 Suze: that SMH isn't such a loser. 489 00:29:41,709 --> 00:29:46,290 Suze: And I say this with the utmost of respect, you 490 00:29:46,300 --> 00:29:52,089 Suze: became the loser in this situation because you invested a 491 00:29:52,099 --> 00:29:56,010 Suze: lump sum and you did not follow my instructions of 492 00:29:56,020 --> 00:30:01,000 Suze: every single ETF or stock you should buy in your lifetime. 493 00:30:01,229 --> 00:30:07,489 Suze: And that's by dollar cost averaging. Listen to last Sunday's podcast. 494 00:30:07,640 --> 00:30:08,410 Suze: All right. 495 00:30:09,109 --> 00:30:13,709 Suze: So let's just say that you bought this when it 496 00:30:13,719 --> 00:30:16,089 Suze: was at, it's very high. And I think that was 497 00:30:16,099 --> 00:30:19,300 Suze: in July sometime just about a month ago. It was 498 00:30:19,310 --> 00:30:24,729 Suze: around $281 a share. As we're doing this podcast. It's 499 00:30:24,739 --> 00:30:30,489 Suze: right now about 236, 237 - I think, somewhere around there, 500 00:30:30,939 --> 00:30:36,380 Suze: if you had simply bought it at 281 it's now 501 00:30:36,390 --> 00:30:42,489 Suze: at around 236. Yeah, you're down 16% because you did 502 00:30:42,500 --> 00:30:47,239 Suze: not dollar cost average. But a month later, just a 503 00:30:47,250 --> 00:30:52,369 Suze: few days ago, it was down to like $211 a share. 504 00:30:52,390 --> 00:30:55,479 Suze: If you had dollar cost averaged in it, 505 00:30:56,160 --> 00:31:01,959 Suze: now, your cost basis would be 246 versus 281 and 506 00:31:01,969 --> 00:31:08,780 Suze: you'd only be down 4% versus 16%. So, if it's 507 00:31:08,790 --> 00:31:12,060 Suze: such a loser and that's how you feel about it. 508 00:31:12,119 --> 00:31:14,060 Suze: Sell it, period. 509 00:31:14,449 --> 00:31:18,589 Suze: Because why are you investing in such a loser? However, 510 00:31:18,599 --> 00:31:24,339 Suze: do I think that SMH will eventually come back? I do 511 00:31:24,500 --> 00:31:28,209 Suze: do I think however, that it could absolutely go down 512 00:31:28,219 --> 00:31:32,810 Suze: and down again over a considerable amount of time. It 513 00:31:32,819 --> 00:31:34,150 Suze: absolutely could. 514 00:31:34,709 --> 00:31:37,969 Suze: So you do not invest in something to immediately make 515 00:31:37,979 --> 00:31:40,630 Suze: money in it. You invest in something when you have 516 00:31:40,640 --> 00:31:43,349 Suze: at least five years that you can stick with it 517 00:31:43,589 --> 00:31:48,180 Suze: so that you could take advantage of the fluctuations. So 518 00:31:48,189 --> 00:31:54,250 Suze: would I say, SMH is a loser. I don't think so. 519 00:31:54,260 --> 00:31:58,130 Suze: So now you decide what you wanna do. Well, KT, 520 00:31:58,140 --> 00:32:00,400 Suze: I had a different quizzy for you. 521 00:32:02,819 --> 00:32:05,530 KT: Not a required minimum distribution quizzy. 522 00:32:05,819 --> 00:32:11,609 Suze: No, this quizzy, Teresa, is in honor of you, girlfriend. 523 00:32:12,689 --> 00:32:15,030 Suze: The quizzy is... KT 524 00:32:16,430 --> 00:32:20,089 Suze: and a while ago, I did a podcast on this 525 00:32:20,290 --> 00:32:24,050 Suze: with the explanation of what this is. So let's see 526 00:32:24,060 --> 00:32:30,729 Suze: if you've listened to my Suze School. What is a semiconductor? 527 00:32:30,739 --> 00:32:32,800 KT: It's a conduit of electricity. 528 00:32:33,959 --> 00:32:36,319 Suze: You didn't even have to think about that. Did you? 529 00:32:36,329 --> 00:32:37,770 KT: No, I went to school 530 00:32:39,060 --> 00:32:40,650 Suze: And what did that have to do with it? You went, you went to 531 00:32:40,660 --> 00:32:41,589 Suze: art school? 532 00:32:41,959 --> 00:32:46,489 KT: Well, we were pretty electric, we were electrified in art school. 533 00:32:46,709 --> 00:32:49,930 KT: So that's what it is a semiconductor. So I would, 534 00:32:49,939 --> 00:32:52,930 KT: I would assume that with all the digital 535 00:32:53,500 --> 00:32:57,750 KT: technologies around that things are changing up, Suze. 536 00:32:57,760 --> 00:33:02,410 Suze: Yeah. So what it is KT, a semiconductor is this little 537 00:33:02,420 --> 00:33:09,010 Suze: tiny piece that conducts the electricity. It's typically made from 538 00:33:09,020 --> 00:33:13,449 Suze: materials that are the building blocks really 539 00:33:13,536 --> 00:33:19,056 Suze: of all the electronic devices out there, including computers, smartphones 540 00:33:19,066 --> 00:33:24,225 Suze: and other gadgets. So it's the ability to control the 541 00:33:24,235 --> 00:33:30,875 Suze: flow of electricity that makes semiconductors. KT really crucial for 542 00:33:30,885 --> 00:33:33,576 Suze: processing and storing information in 543 00:33:33,682 --> 00:33:40,491 Suze: digital devices, which makes it incredibly important for artificial intelligence. 544 00:33:40,911 --> 00:33:42,332 Suze: But KT there's... 545 00:33:42,501 --> 00:33:43,031 KT: Wait, I got a ding for that! 546 00:33:43,472 --> 00:33:46,052 Suze: I was just about to say there's only one thing 547 00:33:46,062 --> 00:33:49,072 Suze: that I have to tell you now and that's a ding, ding, ding, ding, 548 00:33:49,112 --> 00:33:53,702 Suze: ding so good. Alright. 549 00:33:54,540 --> 00:33:55,800 Suze: Now, what are we gonna do, 550 00:33:56,810 --> 00:33:59,959 KT: Suze, look, I'm showing her my blue bathing suit. I 551 00:33:59,969 --> 00:34:02,380 KT: already have it on because as soon as we're done 552 00:34:02,390 --> 00:34:05,959 KT: and we wrap this podcast, we are going in the 553 00:34:05,969 --> 00:34:12,030 KT: ocean is calm today. Pretty calm, calm before the storm. 554 00:34:12,500 --> 00:34:14,639 Suze: That's the other thing... can we wait for the lights just come up a 555 00:34:14,649 --> 00:34:16,239 Suze: little bit more outside? 556 00:34:16,530 --> 00:34:19,330 KT: We just wait, but we'll, we'll have a nice, we'll 557 00:34:19,340 --> 00:34:20,959 KT: have another cup of coffee and I go 558 00:34:21,594 --> 00:34:25,225 Suze: All right, sweetheart. So until Sunday there's only one thing 559 00:34:25,235 --> 00:34:27,895 Suze: that we want you all to remember when it comes 560 00:34:27,905 --> 00:34:30,995 Suze: to your money. And that is what KT? 561 00:34:31,004 --> 00:34:35,245 KT: People first, then money, then things and add in a little salt 562 00:34:35,254 --> 00:34:36,554 KT: water in between. 563 00:34:36,564 --> 00:34:40,034 Suze: And if you do that, stay safe and healthy, you 564 00:34:40,044 --> 00:34:42,864 Suze: will be unstoppable.