1 00:00:07,389 --> 00:00:11,060 Robert: November 13th, 2025. Welcome to the Women in Money podcast 2 00:00:11,060 --> 00:00:14,020 Robert: as well as everyone smart enough to listen. Hi, everybody, 3 00:00:14,079 --> 00:00:16,420 Robert: this is Robert, the producer here. 4 00:00:17,190 --> 00:00:19,870 Robert: You know how sometimes you need to take a day 5 00:00:19,870 --> 00:00:22,629 Robert: off of work to handle an important thing happening in 6 00:00:22,629 --> 00:00:26,069 Robert: your life. Everything's OK, but, you know, when these things 7 00:00:26,069 --> 00:00:27,670 Robert: pop up, you have got to deal with them in 8 00:00:27,670 --> 00:00:31,309 Robert: the moment. And that is the case for today. Suze 9 00:00:31,309 --> 00:00:34,189 Robert: and KT are fine. They just need to handle a 10 00:00:34,189 --> 00:00:37,549 Robert: logistics thing. And, you know, we still like you to 11 00:00:37,549 --> 00:00:40,490 Robert: be able to hear both KT and Suze on a Thursday. 12 00:00:40,668 --> 00:00:43,909 Robert: So we have some cool bits from an Ask KT 13 00:00:43,909 --> 00:00:46,318 Robert: and Suze Anything previously released. 14 00:00:46,779 --> 00:00:49,778 Robert: And we're gonna jump right into the first question. Take 15 00:00:49,779 --> 00:00:50,818 Robert: it away, KT. 16 00:00:52,069 --> 00:00:57,310 KT: Sometimes I like to start with sharing what people have 17 00:00:57,310 --> 00:01:00,549 KT: achieved by just listening to Suze Orman's great advice, and 18 00:01:00,549 --> 00:01:04,509 KT: this is from Gina, and she said, after following your 19 00:01:04,510 --> 00:01:09,029 KT: rules for over 25 years, I was able to, now 20 00:01:09,029 --> 00:01:11,949 KT: get ready everybody, this is a list of 10 great 21 00:01:11,949 --> 00:01:15,470 KT: things that Gina has done. Number one, get out of 22 00:01:15,470 --> 00:01:17,750 KT: credit card debt for the third time. 23 00:01:18,220 --> 00:01:22,260 KT: Survive a painful divorce. The reason it was painful, Suze, 24 00:01:22,300 --> 00:01:26,660 KT: is because she paid her husband $100,000 almost 10 years 25 00:01:26,660 --> 00:01:30,379 KT: ago because she made more than him, but she survived that. 26 00:01:31,129 --> 00:01:33,459 Suze: KT, That's not why it was painful. 27 00:01:34,470 --> 00:01:39,910 Suze: When you are married and you get divorced, any divorce 28 00:01:39,910 --> 00:01:44,430 Suze: is painful because you originally entered that relationship in the 29 00:01:44,430 --> 00:01:46,110 Suze: hopes that it was going to be as great as 30 00:01:46,110 --> 00:01:51,220 Suze: ours or whatever. So that's what truly makes a divorce painful. 31 00:01:51,510 --> 00:01:55,620 Suze: Money isn't what makes a divorce painful, truthfully, but it 32 00:01:55,676 --> 00:01:57,636 Suze: still stings. All right, go on. 33 00:01:57,676 --> 00:02:01,916 KT: A hundred grand is a big sting. So number three, she paid off her 34 00:02:01,916 --> 00:02:05,555 KT: house at the age of 53, and now it's worth 35 00:02:05,555 --> 00:02:09,995 KT: almost a million dollars. Suze, She paid cash for a 36 00:02:09,996 --> 00:02:13,144 KT: car and she kept it for what's your favorite number? 37 00:02:13,606 --> 00:02:16,955 Suze: Well, my favorite number is 9 years. However, I would 38 00:02:17,042 --> 00:02:18,721 Suze: like all of you to keep your cars for at 39 00:02:18,722 --> 00:02:19,921 Suze: least 10. All right, go on. 40 00:02:20,561 --> 00:02:24,150 KT: And then she opened a Roth and saved 200,000. She 41 00:02:24,151 --> 00:02:31,981 KT: accumulated 1.8 million in her work 401k Roth. She has 42 00:02:32,162 --> 00:02:37,151 KT: 250,000 in liquid savings, which I suppose could be her 43 00:02:37,151 --> 00:02:41,722 KT: emergency fund. And then she said she retired from a 44 00:02:41,722 --> 00:02:46,281 KT: job she hated at the age of 56 with a pension. 45 00:02:46,758 --> 00:02:50,960 KT: And since that retirement she can afford ready everyone, keyword 46 00:02:51,240 --> 00:02:55,758 KT: I can afford to exercise with a personal trainer. I 47 00:02:55,758 --> 00:03:00,269 KT: lost 35 pounds. I no longer have high cholesterol. I'm 48 00:03:00,270 --> 00:03:03,720 KT: working on getting off my high blood pressure medication. 49 00:03:04,360 --> 00:03:08,460 KT: And I did this all on my own, Susie, because 50 00:03:08,470 --> 00:03:13,639 KT: you taught me how to enjoy saving more than spending. 51 00:03:14,699 --> 00:03:20,660 KT: So Suze, Gina's 56. Congratulations, Gina. I love everything she 52 00:03:20,660 --> 00:03:21,160 KT: did 53 00:03:21,820 --> 00:03:23,059 KT: and continues to do. 54 00:03:23,220 --> 00:03:26,320 Suze: The thing I love most about you doing this, KT. 55 00:03:26,809 --> 00:03:31,050 Suze: Is that so many times people feel so hopeless they 56 00:03:31,050 --> 00:03:34,410 Suze: feel like no they can't do this they'll never get 57 00:03:34,410 --> 00:03:36,919 Suze: out of debt they'll never be able to save they'll 58 00:03:36,919 --> 00:03:40,410 Suze: never be able to recover from a divorce all of 59 00:03:40,410 --> 00:03:44,970 Suze: these things and you can and you will... 60 00:03:44,970 --> 00:03:46,050 KT: Baby steps. 61 00:03:46,050 --> 00:03:51,149 Suze: ...but the main thing that Gina said in that email, 62 00:03:51,690 --> 00:03:55,369 Suze: is she gets more pleasure out of saving than she 63 00:03:55,369 --> 00:03:59,449 Suze: does spending. When you feel less than everybody, you spend 64 00:03:59,449 --> 00:04:03,110 Suze: more than you want to be more, you wanna have more, 65 00:04:03,330 --> 00:04:07,089 Suze: you wanna feel like Gina and have security, cause that 66 00:04:07,089 --> 00:04:11,130 Suze: is the goal of money. Then learn how to define 67 00:04:11,130 --> 00:04:14,169 Suze: yourself by how you feel and who you are, and 68 00:04:14,169 --> 00:04:17,089 Suze: not the things around you. All right. 69 00:04:17,899 --> 00:04:23,690 KT: OK, so now my first question is from Marietta. She said, hello, 70 00:04:23,760 --> 00:04:27,849 KT: Miss Orman. Marietta is being very proper. I have just 71 00:04:27,850 --> 00:04:33,369 KT: finished reading the transcript of your podcast Suze School Understanding Annuities, 72 00:04:33,690 --> 00:04:38,130 KT: which was on April 9, 2023. See, everyone, you can 73 00:04:38,130 --> 00:04:41,920 KT: go back and find exactly what you need. Marietta goes 74 00:04:41,920 --> 00:04:42,779 KT: on to say. 75 00:04:43,690 --> 00:04:48,159 KT: I am new to investing and recently started looking into annuities. 76 00:04:48,529 --> 00:04:52,010 KT: One thing puzzles me though, I was reading the advice 77 00:04:52,010 --> 00:04:54,649 KT: where you say that I should get an annuity with 78 00:04:54,649 --> 00:04:58,429 KT: an interest rate guaranteed for the entire surrender period. 79 00:04:59,070 --> 00:05:02,589 KT: I have noticed that some annuities offer a bonus rate 80 00:05:02,589 --> 00:05:06,320 KT: for one year, then they drop off to a lower rate. 81 00:05:06,720 --> 00:05:10,099 KT: How would I go about securing this higher bonus rate 82 00:05:10,279 --> 00:05:13,000 KT: for the length, I guess, for the duration of the 83 00:05:13,000 --> 00:05:14,479 KT: surrender period? 84 00:05:14,640 --> 00:05:19,719 Suze: Yeah, first of all, Marietta, if you heard me say 85 00:05:19,959 --> 00:05:22,579 Suze: that I want you to get an annuity. 86 00:05:23,779 --> 00:05:26,440 Suze: I don't want you to get annuities. Actually, I find 87 00:05:26,440 --> 00:05:29,670 Suze: it very difficult to find a situation where an annuity 88 00:05:29,670 --> 00:05:34,549 Suze: in any place now makes sense. However, if you want 89 00:05:34,549 --> 00:05:39,789 Suze: to get an annuity for whatever reason, because all annuities 90 00:05:39,790 --> 00:05:43,808 Suze: have what's called a surrender period where you cannot come 91 00:05:43,809 --> 00:05:49,950 Suze: out of that annuity without a penalty, usually 7% the 92 00:05:49,950 --> 00:05:52,609 Suze: first year, 6, 5, 4%, whatever it may be. 93 00:05:53,149 --> 00:05:57,750 Suze: So if you're going to for whatever reason get an annuity, 94 00:05:58,149 --> 00:06:02,149 Suze: get an annuity where the surrender period and the interest 95 00:06:02,149 --> 00:06:05,269 Suze: rate that they are offering you is for the exact 96 00:06:05,269 --> 00:06:09,229 Suze: same period of time. Now companies may not do that anymore. 97 00:06:09,309 --> 00:06:12,910 Suze: It used to be called a CD annuity, so they 98 00:06:12,910 --> 00:06:16,769 Suze: sucker you in, however, in your example here in this email. 99 00:06:17,609 --> 00:06:20,329 Suze: Of offering you a bonus rate for the first year, 100 00:06:20,619 --> 00:06:23,899 Suze: then they drop you down all the other years during 101 00:06:23,899 --> 00:06:27,700 Suze: the surrender period to make up for that bonus rate 102 00:06:27,700 --> 00:06:31,420 Suze: that got you to go with them to begin with. 103 00:06:31,738 --> 00:06:34,130 Suze: My best advice I could give you is, since you're 104 00:06:34,130 --> 00:06:38,019 Suze: probably very new to investing, stay away from annuities. I 105 00:06:38,019 --> 00:06:40,618 Suze: doubt there's any reason that you really need one. That's 106 00:06:40,619 --> 00:06:41,320 Suze: number one. 107 00:06:41,738 --> 00:06:45,070 Suze: Number two, if for whatever reason you do get an annuity, 108 00:06:45,428 --> 00:06:49,549 Suze: only get an annuity, which is a fixed annuity where 109 00:06:49,549 --> 00:06:52,869 Suze: the interest rate is fixed for the entire length of 110 00:06:52,869 --> 00:06:56,570 Suze: the surrender period. If you can't find one like that, 111 00:06:56,988 --> 00:06:59,630 Suze: don't buy it at all. 112 00:07:00,079 --> 00:07:01,849 Suze: All right, next, KT, 113 00:07:02,010 --> 00:07:05,209 KT: So the next email is from Kim. Hi Suze, I 114 00:07:05,209 --> 00:07:09,700 KT: recently started listening to your podcast after discovering my parents, 115 00:07:09,929 --> 00:07:16,350 KT: who are 80 and 81, bought a $200,000 deferred annuity 116 00:07:16,600 --> 00:07:22,089 KT: upon recommendation from the financial advisor. My mom asked me 117 00:07:22,089 --> 00:07:24,970 KT: what I knew about annuities, and I don't think she 118 00:07:24,970 --> 00:07:26,809 KT: realized it was already purchased. 119 00:07:27,380 --> 00:07:32,260 KT: Ready, Suze. My parents are extremely secretive about all of 120 00:07:32,260 --> 00:07:36,260 KT: their finances. They have five children, and I am the 121 00:07:36,260 --> 00:07:40,390 KT: financial power of attorney, but they don't tell me anything. 122 00:07:40,619 --> 00:07:44,899 KT: I've never met their financial adviser, who is the grandson 123 00:07:44,899 --> 00:07:49,000 KT: of an old family attorney who passed a few years ago. 124 00:07:49,339 --> 00:07:51,579 KT: They put all of their trust in him. 125 00:07:52,000 --> 00:07:55,799 KT: So Kim's question is on behalf of herself and siblings, 126 00:07:56,160 --> 00:07:59,600 KT: what can we do to help my parents realize they 127 00:07:59,600 --> 00:08:03,950 KT: need to trust their family to be involved in their finances? 128 00:08:04,820 --> 00:08:04,829 Suze: Mhm. 129 00:08:05,519 --> 00:08:10,720 Suze: So Kim, what's interesting is that no matter how old 130 00:08:10,720 --> 00:08:15,339 Suze: we get or our parents get, we tend to act 131 00:08:15,339 --> 00:08:17,220 Suze: like we're still kids. 132 00:08:17,750 --> 00:08:23,019 Suze: We tend to act that we cannot question their authority, 133 00:08:23,190 --> 00:08:25,589 Suze: that we have to do anything that they say. We 134 00:08:25,589 --> 00:08:28,670 Suze: act like we're 10 years old, 12 years old, 18 135 00:08:28,670 --> 00:08:31,309 Suze: years old, when we really were kids. 136 00:08:31,950 --> 00:08:37,270 Suze: You now and all your siblings are mature adults. If 137 00:08:37,270 --> 00:08:40,530 Suze: your parents are in their 80s, then you are probably 138 00:08:40,530 --> 00:08:44,390 Suze: in your 50s, maybe even in your 60s. You are 139 00:08:44,390 --> 00:08:49,590 Suze: no longer kids. Therefore, you have to stop acting like 140 00:08:49,590 --> 00:08:54,010 Suze: one and just being around them and doing whatever they say. 141 00:08:54,510 --> 00:08:57,909 Suze: What I suggest to you and everybody listening to this 142 00:08:57,909 --> 00:09:01,390 Suze: right now, your parents are in danger. 143 00:09:02,070 --> 00:09:06,409 Suze: They're in danger. Therefore, you have got to go to them, 144 00:09:06,609 --> 00:09:09,909 Suze: sit them down, all of you at once, and say, 145 00:09:10,299 --> 00:09:16,590 Suze: Let's play getting older. Mom, what would you do if 146 00:09:16,590 --> 00:09:20,229 Suze: Dad dies? Cause it's not an if, Mom, it's a when. 147 00:09:20,950 --> 00:09:24,189 Suze: Do you know where your money is going to come from? 148 00:09:24,429 --> 00:09:27,030 Suze: Do you know how much it costs you to live 149 00:09:27,030 --> 00:09:30,869 Suze: every single month? Do you know about the titles to 150 00:09:30,869 --> 00:09:35,549 Suze: all your accounts and retirement accounts, Mom, will you be OK? 151 00:09:35,590 --> 00:09:36,369 Suze: And Mom? 152 00:09:37,190 --> 00:09:41,150 Suze: Let's just say Dad is gone, or Dad, let's just 153 00:09:41,150 --> 00:09:46,150 Suze: say mom is gone or has become incapacitated. Who's going 154 00:09:46,150 --> 00:09:49,070 Suze: to write your checks for you? Who is going to 155 00:09:49,070 --> 00:09:52,349 Suze: pay your bills for you, Mom and Dad, this is 156 00:09:52,349 --> 00:09:55,150 Suze: not about how much money you have and how much 157 00:09:55,150 --> 00:09:57,689 Suze: money you are going to leave to us. 158 00:09:58,260 --> 00:10:02,260 Suze: This is about your children being able to take care 159 00:10:02,260 --> 00:10:06,080 Suze: of you as you age, and the two of you 160 00:10:06,190 --> 00:10:13,020 Suze: are putting yourself in danger. Kim, ask your parents to 161 00:10:13,020 --> 00:10:14,799 Suze: listen to this podcast. 162 00:10:15,690 --> 00:10:20,849 Suze: Ask them to listen to Suze Orman saying to them, 163 00:10:21,289 --> 00:10:24,880 Suze: Mom and Dad, please don't do this to your kids. 164 00:10:25,150 --> 00:10:28,968 Suze: How many thousands of kids have come to me when 165 00:10:28,969 --> 00:10:32,010 Suze: their parents had gotten sick or had a stroke or 166 00:10:32,010 --> 00:10:35,510 Suze: had whatever it may be, and they can't pay the bills, 167 00:10:35,650 --> 00:10:41,069 Suze: they can't do anything for them. Everybody now is in danger. 168 00:10:42,109 --> 00:10:48,030 Suze: Please, Mom and Dad, stop acting so immature that you 169 00:10:48,030 --> 00:10:50,609 Suze: just don't want to deal with this cause I know 170 00:10:51,030 --> 00:10:54,390 Suze: that you're afraid to deal with your death. I know 171 00:10:54,510 --> 00:10:58,229 Suze: that you are afraid to make decisions cause it's hard 172 00:10:58,229 --> 00:11:03,030 Suze: to get old. I know that KT and I both 173 00:11:03,030 --> 00:11:08,429 Suze: experienced that, but you don't have a choice anymore, so 174 00:11:08,429 --> 00:11:11,530 Suze: I am not asking you. I am begging you. 175 00:11:12,150 --> 00:11:17,450 Suze: To bring your five kids in who love you, especially Kim, 176 00:11:17,469 --> 00:11:22,640 Suze: who has power of attorney. Introduce Kim to your financial advisor. 177 00:11:23,219 --> 00:11:26,059 Suze: And make sure that the decisions that you are making 178 00:11:26,059 --> 00:11:30,238 Suze: or this person is making for you are wise for you, 179 00:11:30,380 --> 00:11:33,979 Suze: because on no level is it wise that you have 180 00:11:33,979 --> 00:11:39,210 Suze: a $200,000 annuity. On no level is it wise for 181 00:11:39,210 --> 00:11:44,460 Suze: you to have any annuities at all. And just because 182 00:11:44,739 --> 00:11:50,750 Suze: his grandfather was your attorney doesn't mean that the grandson 183 00:11:51,460 --> 00:11:57,039 Suze: is just like his grandfather. Please, I am begging you 184 00:11:57,179 --> 00:12:02,460 Suze: and all parents that are listening to this right now. 185 00:12:02,619 --> 00:12:03,869 Suze: Next question, KT. 186 00:12:04,299 --> 00:12:08,030 KT: So next is from Emily, Suze. Love, love, love, love 187 00:12:08,030 --> 00:12:09,750 KT: your podcast, Suze. 188 00:12:10,140 --> 00:12:11,460 Suze: I love it too, Emily, 189 00:12:11,570 --> 00:12:12,260 KT: And this is 190 00:12:12,489 --> 00:12:15,820 KT: a really good question because I'm curious too. Suze, how 191 00:12:15,820 --> 00:12:19,570 KT: did I miss that CDs can be called back? Was 192 00:12:19,570 --> 00:12:23,780 KT: this ever discussed on your podcast? I have received a 193 00:12:23,780 --> 00:12:27,539 KT: notice from Chase that my CD was being recalled and 194 00:12:27,539 --> 00:12:30,978 KT: money to be cashed out at 9 months instead of 195 00:12:30,979 --> 00:12:33,440 KT: my 12 month expiration date. 196 00:12:34,000 --> 00:12:36,929 KT: So Suze, Emily says, why didn't I know this? 197 00:12:36,929 --> 00:12:40,010 Suze: You didn't know it, Emily, because you don't listen to 198 00:12:40,010 --> 00:12:44,049 Suze: the podcast every Thursday and Sunday or any time in 199 00:12:44,049 --> 00:12:47,969 Suze: between then. So just so you know, I have addressed 200 00:12:47,969 --> 00:12:49,390 Suze: this in the past. 201 00:12:49,625 --> 00:12:55,214 Suze: And basically, the reason a financial institution has what's called 202 00:12:55,215 --> 00:12:59,965 Suze: a callable CD is because when interest rates go down, 203 00:13:00,465 --> 00:13:02,945 Suze: they want to know that they don't have to continue 204 00:13:02,945 --> 00:13:06,505 Suze: paying you that high interest rate because they want to 205 00:13:06,505 --> 00:13:10,164 Suze: be able to recall it, so that if you do 206 00:13:10,164 --> 00:13:13,744 Suze: get another CD it's at a lower interest rate and 207 00:13:13,744 --> 00:13:16,205 Suze: that's how they make more money. 208 00:13:16,799 --> 00:13:22,239 Suze: Now, most financial institutions such as banks and even brokerage 209 00:13:22,239 --> 00:13:28,799 Suze: firms offer callable CDs, and sometimes to sucker you in, 210 00:13:29,000 --> 00:13:32,559 Suze: they offer a little tiny higher interest rate than a 211 00:13:32,559 --> 00:13:37,330 Suze: CD that is not callable, and you fall for that trick. 212 00:13:37,679 --> 00:13:42,380 Suze: You should never, ever, ever get a callable CD. 213 00:13:43,270 --> 00:13:47,239 Suze: But they are plentiful out there, so you just have 214 00:13:47,239 --> 00:13:50,880 Suze: to ask the question before you buy a CD. Is 215 00:13:50,880 --> 00:13:53,700 Suze: this callable or not? 216 00:13:54,200 --> 00:13:55,200 KT: Does Alliant do that? 217 00:13:55,559 --> 00:14:00,080 Suze: No, Alliant would not offer callable CDs because really they're 218 00:14:00,080 --> 00:14:04,199 Suze: for the advantage of the financial institution. There is no 219 00:14:04,200 --> 00:14:08,205 Suze: advantage really for a consumer to buy one, and Alliant 220 00:14:08,205 --> 00:14:12,679 Suze: Credit Union, in my opinion, would never do anything, 221 00:14:13,330 --> 00:14:21,859 Suze: anything that wasn't for the advantage of their members. Go to my alliant.com. 222 00:14:22,039 --> 00:14:26,039 KT: All right. All right. Next is from Sylvia. Suze, I 223 00:14:26,039 --> 00:14:30,599 KT: have a traditional IRA and a Roth IRA with Charles Schwab. 224 00:14:30,960 --> 00:14:33,380 KT: The traditionals doing really bad. 225 00:14:35,000 --> 00:14:39,239 KT: She said, I would like to choose investments myself following 226 00:14:39,239 --> 00:14:41,760 KT: the advice of your podcast, but I don't know how 227 00:14:41,760 --> 00:14:45,719 KT: to take control of my account. How, you know, help her? 228 00:14:45,799 --> 00:14:46,080 KT: How does she do that? 229 00:14:46,080 --> 00:14:51,440 Suze: Sylvia, do you have control over your Roth IRA? This 230 00:14:51,440 --> 00:14:54,840 Suze: has nothing to do with Charles Schwab. This has to 231 00:14:54,840 --> 00:14:59,909 Suze: do with who is making the decisions over your retirement accounts. 232 00:15:00,239 --> 00:15:03,359 Suze: So if your Roth IRA is doing well. 233 00:15:03,940 --> 00:15:08,090 Suze: And your traditional IRA is not. I have a feeling 234 00:15:08,469 --> 00:15:11,950 Suze: that probably you just recently started a Roth IRA and 235 00:15:11,950 --> 00:15:14,549 Suze: there isn't a lot of money in there, but there's 236 00:15:14,549 --> 00:15:19,770 Suze: probably a whole lot more in your traditional IRA. So, 237 00:15:20,390 --> 00:15:23,429 Suze: how do you take that over? You just tell whoever 238 00:15:23,429 --> 00:15:26,590 Suze: is in charge of that account that you no longer 239 00:15:26,590 --> 00:15:29,510 Suze: want them to be so. So, therefore, you pick up 240 00:15:29,510 --> 00:15:30,109 Suze: the phone. 241 00:15:30,599 --> 00:15:34,039 Suze: You gather your courage and you say you no longer 242 00:15:34,039 --> 00:15:39,400 Suze: want the traditional IRA under an investment advisor. However, I 243 00:15:39,400 --> 00:15:42,940 Suze: do just want to say, if it's really doing bad, 244 00:15:43,239 --> 00:15:45,520 Suze: now might be the time to take some of the 245 00:15:45,520 --> 00:15:49,479 Suze: money that's in the traditional IRA and convert it to 246 00:15:49,479 --> 00:15:53,390 Suze: a Roth every single year. Now, I just also have 247 00:15:53,390 --> 00:15:54,090 Suze: to say this, 248 00:15:59,270 --> 00:16:01,989 Suze: it wouldn't kill you possibly, I don't know enough about 249 00:16:01,989 --> 00:16:06,270 Suze: your circumstance, but to take small amounts of money at 250 00:16:06,270 --> 00:16:08,789 Suze: the end of this year in the things that are 251 00:16:08,789 --> 00:16:13,070 Suze: especially down and you're losing on and convert them to 252 00:16:13,070 --> 00:16:15,750 Suze: your wrath and then do the same thing at the 253 00:16:15,750 --> 00:16:20,700 Suze: beginning of January next year. So that's what I would 254 00:16:20,700 --> 00:16:24,349 Suze: be doing if I were you, KT. Why do you 255 00:16:24,349 --> 00:16:27,309 Suze: think it's so hard for women, 256 00:16:28,150 --> 00:16:32,289 Suze: to take power like, did, did she really need to 257 00:16:32,289 --> 00:16:34,799 Suze: me to say that how does she do that? 258 00:16:35,640 --> 00:16:38,469 KT: A lot of people, men and women are afraid to 259 00:16:38,469 --> 00:16:42,679 KT: ask questions or to question anything that has to do 260 00:16:42,679 --> 00:16:46,440 KT: with finances and don't ask me why. I don't know. 261 00:16:46,520 --> 00:16:49,919 KT: I mean, for me, I love to ask questions about 262 00:16:49,919 --> 00:16:52,830 KT: money and I have no fear, but most people do. 263 00:16:52,960 --> 00:16:57,039 Suze: So listen, here's the bottom line for all of you. 264 00:16:57,659 --> 00:17:01,070 Suze: It is your money. What happens to your money directly 265 00:17:01,070 --> 00:17:03,789 Suze: affects the quality of your life. How many times have 266 00:17:03,789 --> 00:17:07,550 Suze: I said this? Not your financial advisor's life, your insurance 267 00:17:07,550 --> 00:17:12,750 Suze: agent's life, your banker's life, your life. So, if you 268 00:17:12,750 --> 00:17:16,510 Suze: don't like what's happening to your money, do not be 269 00:17:16,510 --> 00:17:20,229 Suze: afraid to pick up the phone and talk to whoever 270 00:17:20,229 --> 00:17:22,849 Suze: is in charge of that money. 271 00:17:23,329 --> 00:17:26,139 Suze: If you don't like what's happening to your money and 272 00:17:26,140 --> 00:17:29,079 Suze: you're the one who's in control of it, then maybe 273 00:17:29,079 --> 00:17:33,599 Suze: you do need to find somebody who could help you. 274 00:17:33,849 --> 00:17:34,130 Suze: All right, KT. 275 00:17:34,800 --> 00:17:40,089 KT: OK. Next is from Cecilia. She said, Suze, your podcast 276 00:17:40,089 --> 00:17:44,410 KT: has been a true gift. Love that. She said, When 277 00:17:44,410 --> 00:17:47,449 KT: I left my company, I had a 90 day window 278 00:17:47,449 --> 00:17:50,430 KT: to exercise my vested stock options. 279 00:17:50,869 --> 00:17:55,500 KT: Just before they expired, an acquisition was announced, but I 280 00:17:55,500 --> 00:17:59,589 KT: had no guarantees about the deal closing or a written 281 00:17:59,589 --> 00:18:04,709 KT: confirmation on the equity payout. The cost to exercise was 282 00:18:04,709 --> 00:18:11,989 KT: $193,000 with a net gain of $122,000. 283 00:18:12,390 --> 00:18:15,149 KT: I could have used my home equity line of credit 284 00:18:15,150 --> 00:18:19,109 KT: to fund it, but I decided against it to avoid 285 00:18:19,109 --> 00:18:24,619 KT: potential financial stress on my family. So now, now she's 286 00:18:24,619 --> 00:18:27,510 KT: regretting it. She said, I can't help but feel unlucky 287 00:18:27,510 --> 00:18:30,910 KT: for not seizing that upside. So Suze, how do I 288 00:18:30,910 --> 00:18:34,229 KT: move past this and stop dwelling on what could have been? 289 00:18:34,469 --> 00:18:36,869 KT: Another could have, should have, would have email. 290 00:18:37,670 --> 00:18:39,469 Suze: Yeah, so basically, Cecilia. 291 00:18:40,489 --> 00:18:43,540 Suze: There is a law of money that I have which 292 00:18:43,540 --> 00:18:47,260 Suze: is look at what you have, not at what you 293 00:18:47,260 --> 00:18:49,849 Suze: had or you could have had. 294 00:18:50,579 --> 00:18:54,670 Suze: If you spend all of your life buying a stock, 295 00:18:54,910 --> 00:18:57,530 Suze: you then sell it cause you made maybe some money 296 00:18:57,530 --> 00:18:59,829 Suze: on it, or you lost money on it, and then 297 00:18:59,829 --> 00:19:04,069 Suze: it skyrockets, and if you had simply held it, you 298 00:19:04,069 --> 00:19:08,669 Suze: would have made $100,000 200,000 dollars. I did an entire 299 00:19:08,670 --> 00:19:11,629 Suze: podcast on, if only. 300 00:19:12,219 --> 00:19:16,640 Suze: Try to find that podcast. If only I had done 301 00:19:16,640 --> 00:19:21,448 Suze: this and not that. If only I had exercised those options, 302 00:19:21,579 --> 00:19:28,000 Suze: I would be $122,000 richer. If only, if only. Now, 303 00:19:28,500 --> 00:19:30,520 Suze: what you could have done. 304 00:19:31,060 --> 00:19:35,750 Suze: But you didn't even ask the questions to your HR 305 00:19:35,750 --> 00:19:39,469 Suze: person because you were coming from a place of fear. 306 00:19:39,739 --> 00:19:42,869 Suze: You wanted to make sure that you stayed secure. You 307 00:19:42,869 --> 00:19:45,589 Suze: didn't want to take equity out of your home, but 308 00:19:45,589 --> 00:19:50,550 Suze: you didn't ask the company questions such as how can 309 00:19:50,550 --> 00:19:54,349 Suze: I do this if I don't have any money. There 310 00:19:54,349 --> 00:19:56,229 Suze: are many companies out there, 311 00:19:56,660 --> 00:20:03,239 Suze: that have what's called a cashless transaction to help you 312 00:20:03,930 --> 00:20:06,500 Suze: exercise when you don't have the cash to do so. 313 00:20:06,859 --> 00:20:11,349 Suze: Did you even ask that question of your company? So 314 00:20:11,349 --> 00:20:14,020 Suze: for all of you again listening to this and maybe 315 00:20:14,020 --> 00:20:18,500 Suze: you're in a situation like Cecilia is in or was in. 316 00:20:18,859 --> 00:20:22,149 Suze: And maybe you will be in is, can you ask 317 00:20:22,150 --> 00:20:26,359 Suze: your company now that if they ever do something like that, 318 00:20:26,589 --> 00:20:31,939 Suze: you have stock options? Do they offer something that's a 319 00:20:31,939 --> 00:20:39,989 Suze: cashless transaction? Can you do that? But Cecilia, why waste 320 00:20:39,989 --> 00:20:42,729 Suze: time on what could have been, 321 00:20:43,349 --> 00:20:48,359 Suze: versus what is? You didn't do it because you didn't 322 00:20:48,359 --> 00:20:54,479 Suze: want to cause any financial stress on your family, and 323 00:20:54,479 --> 00:20:59,680 Suze: now it's causing stress on you. No, girlfriend, look at 324 00:20:59,680 --> 00:21:01,140 Suze: what you have. 325 00:21:01,670 --> 00:21:06,389 Suze: Which should be a life of no stress. So, therefore, 326 00:21:06,670 --> 00:21:10,530 Suze: just stop it, but again, listen to the podcast on 327 00:21:10,589 --> 00:21:12,188 Suze: If Only. All right, KT. 328 00:21:13,270 --> 00:21:15,430 KT: Next question. This is from Susan. 329 00:21:16,250 --> 00:21:19,409 KT: I am 45 years old and I've been with Walmart 330 00:21:19,410 --> 00:21:23,969 KT: for nine years. We love Walmart. Wonder if she's been 331 00:21:23,969 --> 00:21:24,969 KT: to Bentonville. 332 00:21:25,930 --> 00:21:26,530 Suze: We have. 333 00:21:26,530 --> 00:21:30,050 KT: Suze and I've been to Bentonville. There's some great barbecue 334 00:21:30,050 --> 00:21:35,489 KT: places there. So I'm leaving Walmart and I have $45,000 335 00:21:35,489 --> 00:21:39,170 KT: in the 401k and I have stocks with them, and 336 00:21:39,170 --> 00:21:43,089 KT: the new job I'm going to has a 401k also. 337 00:21:43,410 --> 00:21:47,770 KT: Do I have to transfer my Walmart 401k to the 338 00:21:47,770 --> 00:21:53,010 KT: new job, or can I open a Roth IRA with Fidelity? 339 00:21:53,589 --> 00:21:58,630 Suze: So, first of all, Susan, right, if you choose to 340 00:21:58,630 --> 00:22:05,489 Suze: roll over your 401k to your new company, that's fine, right? 341 00:22:05,579 --> 00:22:09,109 Suze: But the problem is, chances are, they're not going to 342 00:22:09,109 --> 00:22:12,119 Suze: be able to take the Walmart stock that you have 343 00:22:12,119 --> 00:22:19,449 Suze: within your 401k. I would suggest doing an IRA rollover 344 00:22:19,750 --> 00:22:21,989 Suze: to Fidelity with all of it. 345 00:22:22,810 --> 00:22:26,660 Suze: And then, if you want, start to convert little by 346 00:22:26,660 --> 00:22:30,300 Suze: little to a Roth IRA cause if you roll it 347 00:22:30,300 --> 00:22:36,420 Suze: all over to a Roth IRA then all $45,000 is 348 00:22:36,420 --> 00:22:40,859 Suze: gonna be taxable to you that year as ordinary income. 349 00:22:41,270 --> 00:22:44,589 Suze: You also, by the way, have the ability to leave 350 00:22:44,589 --> 00:22:48,260 Suze: it right at Walmart if that is what you would 351 00:22:48,260 --> 00:22:50,780 Suze: like to do. Next question, my dear KT. 352 00:22:51,709 --> 00:22:54,909 KT: OK, this question was on the wall, and it's to KT. 353 00:22:54,910 --> 00:22:57,150 Suze: And it is the last one. 354 00:22:57,219 --> 00:23:01,300 KT: It says, KT, if you still have money in an 355 00:23:01,300 --> 00:23:06,188 KT: HSA account when you start receiving Medicare, do you lose it? 356 00:23:13,760 --> 00:23:16,160 KT: I'm gonna answer this for you, for them. Is that 357 00:23:16,160 --> 00:23:19,900 KT: all right, Suze? The answer is no. You don't lose it. 358 00:23:20,000 --> 00:23:22,199 KT: You just add to it. You don't lose it. 359 00:23:24,900 --> 00:23:28,199 KT: There you go. I know a lot about HSAs 360 00:23:28,520 --> 00:23:31,369 Suze: Ding ding ding, but you're still getting a... 361 00:23:31,380 --> 00:23:34,698 Suze: girlfriend. But wait, wait, wait, I'm not there yet. Let 362 00:23:34,699 --> 00:23:38,439 Suze: me answer Miss Speedy today. So it is true. 363 00:23:39,199 --> 00:23:43,160 Suze: That you can use your HSA money for anything that 364 00:23:43,160 --> 00:23:47,160 Suze: you want, but did you also know that you can 365 00:23:47,160 --> 00:23:53,260 Suze: use your health savings account funds to pay for Medicare premiums, everybody, 366 00:23:53,959 --> 00:23:58,479 Suze: including those for Part B, Part D, and Medicare Advantage 367 00:23:58,479 --> 00:24:00,079 Suze: plans Part C. 368 00:24:00,760 --> 00:24:03,479 Suze: Right, but you need to know, KT, this should have 369 00:24:03,479 --> 00:24:07,859 Suze: been your quizzy. Can you use HSA funds to pay 370 00:24:07,859 --> 00:24:12,599 Suze: for Medicare supplements or Mediagap policies since you know so 371 00:24:12,599 --> 00:24:13,760 Suze: much about these funds? 372 00:24:13,829 --> 00:24:15,300 KT: Oh, I don't know that much. 373 00:24:16,550 --> 00:24:18,959 Suze: And the answer to that is no, you cannot. 374 00:24:19,359 --> 00:24:20,079 KT: Sounds like a no, right? 375 00:24:20,160 --> 00:24:22,839 Suze: So just remember that when you have money in an 376 00:24:22,839 --> 00:24:26,660 Suze: HSA you can use it for so many things including 377 00:24:27,119 --> 00:24:33,160 Suze: long term care, premiums, everybody. All right, quizzy time, you 378 00:24:33,160 --> 00:24:37,520 Suze: need to get out of your quizzy, you little manipulator. Right, 379 00:24:37,609 --> 00:24:40,160 Suze: which is this from Darlene. 380 00:24:40,839 --> 00:24:44,359 Suze: And by now, all of you know what quizzy time means. 381 00:24:44,439 --> 00:24:46,958 Suze: If not, that means you have not been listening to 382 00:24:46,959 --> 00:24:50,599 Suze: the podcast and go back and listen to a lot 383 00:24:50,599 --> 00:24:55,469 Suze: of them. Anyway, all right. If I do a Roth 384 00:24:55,469 --> 00:25:02,680 Suze: conversion from a traditional IRA even though I'm 67, 385 00:25:03,780 --> 00:25:07,859 Suze: would I have to pay income taxes on the withdrawal 386 00:25:07,859 --> 00:25:12,400 Suze: amount if I took it out before the five year 387 00:25:12,400 --> 00:25:16,380 Suze: rule since I paid income taxes on it when I 388 00:25:16,380 --> 00:25:21,780 Suze: converted it to a Roth? Don't answer yet, KT. What 389 00:25:21,780 --> 00:25:25,660 Suze: Darlene is asking is: she has a Roth. 390 00:25:26,280 --> 00:25:29,649 Suze: But the Roth has not been open for at least 391 00:25:29,650 --> 00:25:37,829 Suze: 5 years. She has converted money to it. She is 67. 392 00:25:38,290 --> 00:25:42,930 Suze: If she converts and then takes the money out, let's 393 00:25:42,930 --> 00:25:45,849 Suze: say she leaves it in there for a year from now. 394 00:25:45,930 --> 00:25:50,030 Suze: It grows, but it's still under the five years. 395 00:25:51,680 --> 00:25:56,040 Suze: Will she owe income tax on that money and will 396 00:25:56,040 --> 00:25:59,880 Suze: she owe a 10% penalty on that money? 397 00:25:59,979 --> 00:26:00,550 KT: Do you mean both or... 398 00:26:00,550 --> 00:26:02,500 Suze: I'm asking you both. 399 00:26:05,030 --> 00:26:07,459 KT: Well, I don't know. All I know is that if 400 00:26:07,459 --> 00:26:09,849 KT: taxes are involved, usually you have to pay it. 401 00:26:10,020 --> 00:26:13,069 Suze: So she will have paid the taxes when she converted. 402 00:26:13,939 --> 00:26:16,939 Suze: She already pay them again. You have to answer the questions. 403 00:26:16,949 --> 00:26:21,670 Suze: If she withdraws the money prior to when the five 404 00:26:21,670 --> 00:26:25,630 Suze: years are up and that money has grown, let's just 405 00:26:25,630 --> 00:26:29,030 Suze: say it's grown and she withdraws it prior to the 406 00:26:29,030 --> 00:26:33,270 Suze: time the five years are up, she's 67. 407 00:26:34,479 --> 00:26:38,119 Suze: Will she owe a 10% penalty? Will she owe income 408 00:26:38,119 --> 00:26:39,750 Suze: tax on that money? 409 00:26:39,910 --> 00:26:44,859 KT: She's 67, so I think she won't owe income tax, 410 00:26:44,949 --> 00:26:48,089 KT: but she might have the penalty. I don't know. 411 00:26:48,739 --> 00:26:50,438 KT: Is that a good, is that a good answer? 412 00:26:50,619 --> 00:26:52,699 Suze: It's that it's only good if it's good for you. 413 00:26:52,819 --> 00:26:53,660 KT: Is it, uh, is 414 00:26:53,939 --> 00:26:55,979 Suze: I have to tell you whether you're right or wrong. 415 00:26:56,329 --> 00:26:58,670 Suze: Do not try to get out of this. 416 00:27:00,689 --> 00:27:00,790 KT: I don't think, I don't think you pay... 417 00:27:00,979 --> 00:27:04,900 KT: I don't think you pay taxes twice, but you definitely 418 00:27:04,900 --> 00:27:08,420 KT: have a penalty. But she's 67, so I don't think 419 00:27:08,420 --> 00:27:10,160 KT: she's penalty exempt either. 420 00:27:11,880 --> 00:27:13,479 Suze: All right, that's your answer. (Suze makes the wrong answer sound) 421 00:27:15,449 --> 00:27:19,319 KT: OK, I, I don't know. It was Roth, right? 422 00:27:20,219 --> 00:27:20,688 KT: All right, 423 00:27:21,209 --> 00:27:23,839 Suze: We should just know that any Roth question, it's gonna be a (Suze makes the wrong answer sound again). 424 00:27:25,310 --> 00:27:26,560 KT: You can bet on that, everybody. 425 00:27:28,030 --> 00:27:31,619 Suze: It doesn't have to be though, KT. So Darlene, here's 426 00:27:31,619 --> 00:27:34,449 Suze: what you have to get. Once you are over the 427 00:27:34,449 --> 00:27:36,530 Suze: age of 59 and a half. 428 00:27:37,280 --> 00:27:41,510 Suze: Even though your Roth IRAs have not been open for 429 00:27:41,510 --> 00:27:45,459 Suze: at least five years, everybody, so this applies to everybody, 430 00:27:45,760 --> 00:27:50,359 Suze: you will no longer ever, ever, ever pay a 10% 431 00:27:50,359 --> 00:27:55,359 Suze: penalty cause you're already over the age of 59 and a half. However, 432 00:27:56,099 --> 00:28:00,139 Suze: what you have to remember is that when you convert 433 00:28:00,140 --> 00:28:05,500 Suze: money to a Roth IRA you pay 100% tax on 434 00:28:05,500 --> 00:28:09,280 Suze: the amount that you converted, but now the money's in 435 00:28:09,280 --> 00:28:14,319 Suze: that account and it is growing, so it is earning money. 436 00:28:14,859 --> 00:28:19,540 Suze: If you take out the earnings before the account has 437 00:28:19,540 --> 00:28:22,239 Suze: been open for five years. 438 00:28:22,729 --> 00:28:26,609 Suze: Then you are going to pay tax on the earnings 439 00:28:26,609 --> 00:28:31,050 Suze: that you have never paid tax on yet. So that's 440 00:28:31,050 --> 00:28:35,369 Suze: just what you have to take into consideration. It's just 441 00:28:35,369 --> 00:28:37,739 Suze: that easy. Now, did that make sense to you, KT? 442 00:28:38,530 --> 00:28:39,949 KT: Yeah, that made a lot of sense. 443 00:28:40,939 --> 00:28:42,339 Suze: Really, I just made sense to you. 444 00:28:42,650 --> 00:28:45,260 KT: What made sense, I think my, the thing, and I 445 00:28:45,260 --> 00:28:46,800 KT: knew I couldn't remember... 446 00:28:48,209 --> 00:28:48,660 Suze: There she goes defending herself again. 447 00:28:49,079 --> 00:28:52,260 KT: No, I knew that 67 was a good thing, but 448 00:28:52,260 --> 00:28:53,780 KT: I didn't remember how it all worked. 449 00:28:53,780 --> 00:28:56,260 Suze: We, we get that because I went (Suze makes the wrong answer sound... again) 450 00:28:57,790 --> 00:29:00,000 Suze: Do you see everybody now? I just want... 451 00:29:00,000 --> 00:29:02,000 KT: I'm not defending myself. I'm just trying to... 452 00:29:02,000 --> 00:29:03,079 Suze: Well, what would you call 453 00:29:03,079 --> 00:29:03,579 Suze: that? 454 00:29:03,750 --> 00:29:04,699 KT: Recall. 455 00:29:04,869 --> 00:29:08,680 Suze: Uh-huh. Now, can you just imagine what our relationship is 456 00:29:08,680 --> 00:29:12,040 Suze: really like? Do you think this just happens when we're 457 00:29:12,040 --> 00:29:14,079 Suze: talking about Roth IRAs? 458 00:29:14,180 --> 00:29:16,699 Suze: Or maybe do you think it could happen about other 459 00:29:16,699 --> 00:29:19,209 Suze: things you, you think KT never 460 00:29:19,209 --> 00:29:19,900 KT: Ding ding 461 00:29:19,900 --> 00:29:21,219 KT: ding ding ding 462 00:29:21,219 --> 00:29:23,979 KT: ding ding ding. Suze got that right ding ding ding 463 00:29:23,979 --> 00:29:24,209 KT: ding 464 00:29:24,900 --> 00:29:29,560 Suze: All right, but I still love her and more importantly, 465 00:29:29,780 --> 00:29:31,260 Suze: I like her. 466 00:29:32,010 --> 00:29:32,530 Suze: Take us out, KT. 467 00:29:32,689 --> 00:29:35,709 KT: All right, these three things, what do they have to remember? 468 00:29:35,709 --> 00:29:40,439 Suze: People first, then money, then things. And when you're wrong, 469 00:29:40,689 --> 00:29:44,729 Suze: just admit it. It's not a big deal. What are 470 00:29:44,729 --> 00:29:47,290 Suze: the six greatest words in life, KT? 471 00:29:47,719 --> 00:29:48,890 KT: I admit that I was wrong. 472 00:29:49,089 --> 00:29:55,140 Suze: Ding ding ding. And if you do that, stay safe, healthy. 473 00:29:55,369 --> 00:29:58,949 Suze: You will be unstoppable.