1 00:00:46,770 --> 00:00:50,040 Suze: May 30th. Hi KT. 2 00:00:50,080 --> 00:00:52,080 KT: Hi, Suze. Are you still jet lagged? 3 00:00:52,159 --> 00:00:57,950 Suze: A little bit... but 2020 everybody. Welcome to the Women 4 00:00:57,959 --> 00:01:01,220 Suze: and Money podcast and everyone's smart enough to listen. This 5 00:01:01,360 --> 00:01:06,139 Suze: is the KT and Suze Anything addition. Now, I know 6 00:01:06,150 --> 00:01:09,650 Suze: you all want to know about it. So, and what 7 00:01:09,660 --> 00:01:10,949 Suze: is it, KT? 8 00:01:10,959 --> 00:01:13,029 KT: Our trip, our safari. 9 00:01:13,779 --> 00:01:17,080 KT: Wait, are we gonna reveal what animals we saw? 10 00:01:17,309 --> 00:01:20,029 Suze: We're gonna reveal everything but you know what... 11 00:01:20,900 --> 00:01:22,919 KT: I've a mountain of questions in front of me. 12 00:01:22,930 --> 00:01:26,039 Suze: I know you do. But KT everybody wants to know. 13 00:01:26,129 --> 00:01:31,800 Suze: So tell everybody briefly about our trip. 14 00:01:31,809 --> 00:01:36,800 KT: OK. Here we go, everybody. First and most important. We need 15 00:01:36,809 --> 00:01:39,000 KT: you all to go to the Women and Money community app 16 00:01:39,208 --> 00:01:41,976 KT: because that's where you're gonna see the photos of what 17 00:01:41,987 --> 00:01:45,547 KT: I'm about to mention. We were able to see the 18 00:01:45,557 --> 00:01:49,597 KT: big five and the big five were the five most 19 00:01:49,608 --> 00:01:54,977 KT: sought after animals on every safari. We saw an elephant, 20 00:01:55,087 --> 00:01:58,188 KT: we saw the leopard, we saw a lion, we saw 21 00:01:58,197 --> 00:02:02,017 KT: an African buffalo and the fifth and most elusive is 22 00:02:02,027 --> 00:02:04,318 KT: the white rhino, which we were 23 00:02:04,416 --> 00:02:09,345 KT: able to find on our departing day as we left 24 00:02:09,356 --> 00:02:11,035 KT: the Kruger camp. 25 00:02:11,046 --> 00:02:13,675 Suze: And we just didn't see one of each. We saw 26 00:02:13,686 --> 00:02:18,115 Suze: herds of them. So it was really extraordinary. Go on. Sorry. 27 00:02:18,126 --> 00:02:21,704 KT: So we, we started in Zimbabwe and that's where we 28 00:02:21,716 --> 00:02:26,436 KT: actually encountered the Victoria Falls. Suze and I have been 29 00:02:26,445 --> 00:02:29,614 KT: trying to get to the Victoria Falls for almost 30 00:02:29,733 --> 00:02:33,633 KT: 20 years. And for many reasons, we were never able 31 00:02:33,643 --> 00:02:36,953 KT: to make that trip until now. And we're so happy 32 00:02:36,964 --> 00:02:39,723 KT: we did. It was a big bucket list for us. 33 00:02:39,934 --> 00:02:44,333 KT: And in the Victoria Falls in Zimbabwe, we actually went 34 00:02:44,343 --> 00:02:47,813 KT: to an elephant orphanage, which is where my little sister's 35 00:02:47,824 --> 00:02:52,393 KT: birthday dream came true and she was able to interact 36 00:02:52,404 --> 00:02:54,953 KT: with elephants. And this isn't like 37 00:02:55,052 --> 00:02:58,951 Suze: the zoo. This was in the wild in massive massive 38 00:02:58,962 --> 00:03:03,712 Suze: amounts of acreage where a small family of elephants roam, 39 00:03:03,832 --> 00:03:08,061 Suze: but they're friendly and they become um I guess accustomed 40 00:03:08,072 --> 00:03:12,691 Suze: to people and they allow you to embrace them, literally, 41 00:03:12,701 --> 00:03:16,962 Suze: hug them, scratch them, come up personal and you know, 42 00:03:16,972 --> 00:03:20,231 Suze: close and personal with them, feed them. 43 00:03:20,570 --> 00:03:24,739 KT: But it's very um it's an awesome experience because we 44 00:03:24,750 --> 00:03:29,570 KT: were in their habitat following them. They're, they're not like 45 00:03:29,580 --> 00:03:33,330 KT: chained to anything. They just live in the wild and 46 00:03:33,339 --> 00:03:39,149 KT: we became part of their environment extraordinary. And then we 47 00:03:39,160 --> 00:03:42,440 KT: went on to Tintswalo in the Kruger National Park. A 48 00:03:42,449 --> 00:03:44,270 KT: must for anyone 49 00:03:44,520 --> 00:03:50,419 KT: looking to have a very authentic colonial safari experience. It 50 00:03:50,429 --> 00:03:55,100 KT: was established by a family, this beautiful Tintswalo camp and 51 00:03:55,110 --> 00:03:58,559 KT: it was so much fun and our guide, Mike was 52 00:03:58,570 --> 00:04:03,309 KT: beyond the beyond. Probably the best experience for all of 53 00:04:03,320 --> 00:04:07,690 KT: us was to have such a knowledgeable and passionate guide 54 00:04:08,009 --> 00:04:11,750 KT: who taught us so much more than we would ever 55 00:04:11,759 --> 00:04:18,250 KT: imagine about the wildlife, about being people among animals, being 56 00:04:18,260 --> 00:04:20,589 KT: one of them. It was great. 57 00:04:21,678 --> 00:04:24,909 Suze: But I think the best way to experience it with 58 00:04:24,920 --> 00:04:29,459 Suze: us is really go to the women and money community app. 59 00:04:29,470 --> 00:04:32,159 Suze: Take a look at just some of the pictures. The 60 00:04:32,170 --> 00:04:36,409 Suze: hippos are what we really encountered in Zimbabwe on the rivers. 61 00:04:37,630 --> 00:04:42,589 Suze: Where our little huts were right there where the hippos 62 00:04:42,600 --> 00:04:46,320 Suze: came out of the water and they were really pretty 63 00:04:46,329 --> 00:04:46,769 Suze: close 64 00:04:46,869 --> 00:04:49,869 Suze: to us and we were like, oh my God, look 65 00:04:49,880 --> 00:04:55,290 Suze: at this. And so, you know, it's, it's impossible to 66 00:04:55,488 --> 00:05:00,868 Suze: really encapsulate what we've experienced in the past week or so. 67 00:05:00,928 --> 00:05:05,739 Suze: But the main thing we experienced was we fulfilled a 68 00:05:05,769 --> 00:05:11,850 Suze: promise that was made over 20 years ago 69 00:05:12,220 --> 00:05:17,649 Suze: to Sophia and Travis, our niece and nephew that one 70 00:05:17,660 --> 00:05:20,640 Suze: day we would take them on a safari and guess 71 00:05:20,649 --> 00:05:26,179 Suze: what we did. And for us, that was the greatest 72 00:05:26,190 --> 00:05:28,989 Suze: experience of all. 73 00:05:30,040 --> 00:05:34,738 Suze: So now that you've heard about our adventure, we want 74 00:05:34,750 --> 00:05:42,599 Suze: all of you to just venture to my alliant.com. You 75 00:05:42,609 --> 00:05:46,428 Suze: have approximately five days left 76 00:05:46,959 --> 00:05:54,019 Suze: to take the stay smart quiz for 2024. Only five questions. 77 00:05:54,260 --> 00:05:58,750 Suze: Don't you want to know how you're doing with your money? Easy, easy, 78 00:05:59,309 --> 00:06:02,040 Suze: easy questions. But the real reason I want you to 79 00:06:02,049 --> 00:06:04,829 Suze: do it is after you've done that up will come 80 00:06:04,839 --> 00:06:07,410 Suze: a place for you to enter your email if you 81 00:06:07,420 --> 00:06:10,820 Suze: enter your email and this is only good now till 82 00:06:10,829 --> 00:06:12,820 Suze: June 5th. Everybody 83 00:06:13,428 --> 00:06:17,769 Suze: after that date, one of your emails will be selected 84 00:06:17,779 --> 00:06:24,529 Suze: and guess what? You will win $5000. So don't pass 85 00:06:24,540 --> 00:06:26,709 Suze: that up. All right, KT, what do you have for 86 00:06:26,720 --> 00:06:27,078 Suze: me today? 87 00:06:27,140 --> 00:06:32,309 KT: My first question is, hi KT and Suze, KT is 88 00:06:32,320 --> 00:06:33,250 KT: the best. 89 00:06:33,609 --> 00:06:37,130 Suze: I know that you don't have to tell me that, KT. 90 00:06:37,140 --> 00:06:40,609 Suze: Wait, this is, this is it before you go on, 91 00:06:40,959 --> 00:06:42,049 Suze: tell them 92 00:06:43,260 --> 00:06:46,410 Suze: what happened this morning. I was in bed. It was 93 00:06:46,420 --> 00:06:49,089 Suze: very early. You were sitting in the chair looking at 94 00:06:49,100 --> 00:06:52,329 Suze: the questions that you were going to ask and I 95 00:06:52,339 --> 00:06:54,529 Suze: looked over at you and what happened? What did I 96 00:06:54,540 --> 00:06:55,420 Suze: say to you? 97 00:06:55,488 --> 00:06:56,760 KT: You started crying. 98 00:06:56,769 --> 00:06:57,950 Suze: Tell everybody... 99 00:06:58,339 --> 00:07:00,809 KT: She told me she was in love with me and 100 00:07:00,820 --> 00:07:03,480 KT: never loved anyone as much as me in her life. 101 00:07:03,488 --> 00:07:05,200 KT: Why do you want me to tell them that? 102 00:07:05,209 --> 00:07:07,890 KT: Because because it was so sweet. 103 00:07:07,899 --> 00:07:11,359 Suze: No, because I get how lucky I am. Everybody I 104 00:07:11,369 --> 00:07:15,440 Suze: get that KT is the best and I get that. 105 00:07:15,450 --> 00:07:19,380 Suze: I am far luckier having her, believe it or not 106 00:07:19,510 --> 00:07:22,959 Suze: than she is having me in my opinion. All right. 107 00:07:22,970 --> 00:07:24,519 Suze: Continue KT. 108 00:07:24,529 --> 00:07:27,250 KT: See what you did, Ed, this question from Ed, see 109 00:07:27,260 --> 00:07:27,899 KT: what you did. 110 00:07:28,410 --> 00:07:30,880 KT: And then he, he writes, hopefully she will pick my 111 00:07:30,890 --> 00:07:35,200 KT: question while I sure did. I'll keep it short. I'm 51. 112 00:07:35,209 --> 00:07:39,480 KT: I have 10,000 in a bank account. Would Suze suggest 113 00:07:39,489 --> 00:07:43,619 KT: investing it in a low cost brokerage account or using 114 00:07:43,630 --> 00:07:47,049 KT: it to pay the taxes on converting some of my 115 00:07:47,059 --> 00:07:55,450 KT: somewhat hefty balance $600,000 in a traditional 403b to a Roth 403b. 116 00:07:56,899 --> 00:07:59,170 KT: Now, Suze, remember Ed's 51. 117 00:07:59,179 --> 00:08:02,600 Suze: If it were me, Ed, I would absolutely take that 118 00:08:02,609 --> 00:08:07,190 Suze: $10,000 since you want to take it and invest it 119 00:08:07,200 --> 00:08:11,920 Suze: anyway in a brokerage account. I think that your money 120 00:08:11,929 --> 00:08:16,089 Suze: would be far better converting money to a Roth 403b 121 00:08:16,390 --> 00:08:18,609 Suze: where you will be also investing it, 122 00:08:18,850 --> 00:08:22,950 Suze: but you're going to be investing it tax free. So yes, 123 00:08:22,959 --> 00:08:25,290 Suze: I would be doing that if I were you, but 124 00:08:25,299 --> 00:08:28,920 Suze: I would be checking it with my CPA KT. 125 00:08:28,929 --> 00:08:32,270 KT: So next question, another man, Mike. 126 00:08:32,820 --> 00:08:36,309 KT: I love, we get all these mixed up questions because 127 00:08:36,320 --> 00:08:38,390 KT: it's a women and money podcast. But I love when 128 00:08:38,400 --> 00:08:39,159 KT: men come on. 129 00:08:39,169 --> 00:08:42,359 Suze: I thought she was going to say, I love answering 130 00:08:42,369 --> 00:08:44,539 Suze: questions from all these mixed up men. 131 00:08:44,549 --> 00:08:48,179 KT: They're not, no, they're not mixed up. They're, they're listening. So, 132 00:08:48,190 --> 00:08:51,919 KT: Mike says I'm 61 years old and my wife is 59. 133 00:08:51,960 --> 00:08:56,780 KT: We are fortunate to have about $6 million in retirement 134 00:08:56,789 --> 00:08:59,479 KT: savings currently. Good for them. 135 00:09:00,109 --> 00:09:01,299 KT: Good for them. Right, Suze? 136 00:09:01,309 --> 00:09:02,968 Suze: Can I just butt in for one second? 137 00:09:03,080 --> 00:09:03,330 KT: Yeah. 138 00:09:03,940 --> 00:09:05,580 Suze: So, here's what's interesting 139 00:09:06,530 --> 00:09:10,239 Suze: a while ago, I was being interviewed by someone and 140 00:09:10,250 --> 00:09:14,510 Suze: they wanted to know how the questions that are coming 141 00:09:14,520 --> 00:09:20,109 Suze: into this podcast differed from the questions that came in 142 00:09:20,119 --> 00:09:25,000 Suze: for the Suze Orman Show in 2001 all the way 143 00:09:25,010 --> 00:09:27,590 Suze: up that I did, I think to 2015. 144 00:09:28,640 --> 00:09:32,099 Suze: And I said, well, I'll tell you something, everybody when 145 00:09:32,109 --> 00:09:34,580 Suze: I was on the Suze Orman show, which you all 146 00:09:34,590 --> 00:09:38,859 Suze: should be watching, by the way on FreeVee, because they're 147 00:09:38,869 --> 00:09:42,569 Suze: really fun and still important to watch. But anyway, 148 00:09:43,080 --> 00:09:46,579 Suze: when I was doing the Suze Orman Show, almost all 149 00:09:46,590 --> 00:09:49,940 Suze: the questions were, I'm in debt. I don't know what 150 00:09:49,950 --> 00:09:52,859 Suze: to do. I don't have any retirement. I need to 151 00:09:52,869 --> 00:09:58,659 Suze: claim bankruptcy and on and on and on. Very few. Seriously. 152 00:09:58,669 --> 00:10:02,739 Suze: Very few were about, I have a million dollars here, 153 00:10:02,750 --> 00:10:07,869 Suze: $6 million there and on and on today, the majority 154 00:10:07,880 --> 00:10:11,250 Suze: of the questions because most of those people now that 155 00:10:11,260 --> 00:10:12,489 Suze: are writing in, 156 00:10:13,000 --> 00:10:17,978 Suze: listened to me from all of my books, watched me 157 00:10:17,989 --> 00:10:21,169 Suze: on TV, all those years 158 00:10:21,929 --> 00:10:27,140 Suze: and now they're all multimillionaires. The majority of them, they 159 00:10:27,150 --> 00:10:31,340 Suze: all own one or two homes outright. They are all 160 00:10:31,349 --> 00:10:35,699 Suze: doing so great. I cannot even stand it. I'm so 161 00:10:35,710 --> 00:10:36,699 Suze: happy for them. 162 00:10:36,710 --> 00:10:38,580 KT: That's a tribute to your work. 163 00:10:38,590 --> 00:10:43,280 Suze: So, but that's a tribute. Everybody to you can go 164 00:10:43,309 --> 00:10:48,979 Suze: from less to more. You can have money in your life. 165 00:10:49,719 --> 00:10:53,900 Suze: There is nobody out there that is excluded from being 166 00:10:53,909 --> 00:10:57,539 Suze: able to do that. The only person that excludes you 167 00:10:57,549 --> 00:11:01,819 Suze: from doing that is yourself. Alright KT, go on. 168 00:11:02,090 --> 00:11:04,729 KT: So, Mike is saying that he and his wife are very, 169 00:11:04,739 --> 00:11:08,349 KT: very fortunate and they plan on working until they're 170 00:11:08,424 --> 00:11:13,844 KT: 62. So he's 61. She's 59 perhaps late and, and 171 00:11:13,854 --> 00:11:18,335 KT: continue to work. My question is regarding RMDs. Have you 172 00:11:18,344 --> 00:11:20,924 KT: done an episode or do you plan on doing an 173 00:11:20,934 --> 00:11:24,695 KT: episode on what type of planning you should do? Three 174 00:11:24,705 --> 00:11:29,604 KT: years prior to retirement? I find it all a bit confusing. 175 00:11:29,614 --> 00:11:31,385 KT: I'm not sure how to prepare. 176 00:11:31,799 --> 00:11:35,340 KT: If not, can you direct me to some resources on RMDS? 177 00:11:36,849 --> 00:11:41,199 KT: I love you, Suze. I love your podcast and the 178 00:11:41,210 --> 00:11:43,150 KT: community that's from Mike. 179 00:11:43,159 --> 00:11:46,069 Suze: We love you too, Mike. And the community that Mike 180 00:11:46,080 --> 00:11:51,000 Suze: is talking about is the women and money community. And 181 00:11:51,010 --> 00:11:53,880 Suze: if you simply go on Apple apps or Google Play, 182 00:11:53,989 --> 00:11:56,939 Suze: you get to download the app for free 183 00:11:57,510 --> 00:12:00,210 Suze: and it's on that app that I say a lot 184 00:12:00,219 --> 00:12:03,729 Suze: of things that I do not say or do on 185 00:12:03,739 --> 00:12:08,250 Suze: the podcast. You know, KT, I think I answered him. 186 00:12:08,719 --> 00:12:13,968 Suze: But let me just tell you, Mike, the most important thing. 187 00:12:14,549 --> 00:12:18,689 Suze: I think you should do. Most important thing. 188 00:12:19,349 --> 00:12:24,400 Suze: You asked three years before RMDs start, what should you do? 189 00:12:24,729 --> 00:12:29,919 Suze: Why in the world would you wait for three years 190 00:12:29,929 --> 00:12:34,750 Suze: before you take RMDs? Because you have to remember 191 00:12:35,599 --> 00:12:39,718 Suze: that they changed the RMD laws. I think it was 192 00:12:39,729 --> 00:12:42,609 Suze: the Secure Act 2.0 and I think KT it was 193 00:12:42,619 --> 00:12:49,429 Suze: December of 2022. They changed the rules. Why are you laughing? 194 00:12:49,770 --> 00:12:55,080 KT: Because I can't remember what they did in December 2022. 195 00:12:55,539 --> 00:12:58,409 KT: How do you remember all these dates? Oh my God. 196 00:12:58,419 --> 00:12:59,349 KT: She's a genius. 197 00:12:59,359 --> 00:13:01,619 Suze: No. Don't say that. I don't like when you say 198 00:13:01,630 --> 00:13:03,750 Suze: that anyway. Anyway, 199 00:13:04,190 --> 00:13:08,549 Suze: so they changed the rules and these rules really apply 200 00:13:08,559 --> 00:13:12,549 Suze: to you, Mike even more than me. Obviously, they changed 201 00:13:12,559 --> 00:13:15,929 Suze: the rule from RMD starting at the age of 72 202 00:13:15,940 --> 00:13:23,520 Suze: to 73. But the big change is that starting in 2033. 203 00:13:24,190 --> 00:13:31,489 Suze: if you were born 1960 or later, RMDs don't start 204 00:13:31,880 --> 00:13:38,640 Suze: until you are 75. Now, think about that here, you 205 00:13:38,650 --> 00:13:46,119 Suze: are only 61. So that's 14 years from now. I 206 00:13:46,130 --> 00:13:49,090 Suze: don't care about three years before your RMDs. And now 207 00:13:49,099 --> 00:13:50,880 Suze: we have a really big problem. 208 00:13:51,309 --> 00:13:57,169 Suze: Why don't you, now if you can start to convert 209 00:13:57,179 --> 00:14:01,760 Suze: money from a traditional IRA or a traditional 401k or 210 00:14:01,770 --> 00:14:08,289 Suze: wherever it is to a Roth IRA, a Roth 401k. 211 00:14:08,349 --> 00:14:11,809 Suze: Why don't you make sure that you're doing backdoor roths 212 00:14:11,820 --> 00:14:12,989 Suze: or whatever? 213 00:14:13,710 --> 00:14:17,010 Suze: Because if you were to do that, then you wouldn't 214 00:14:17,020 --> 00:14:21,049 Suze: be building on the money that you have in these 215 00:14:21,059 --> 00:14:25,809 Suze: retirement accounts right now, you would actually be building your 216 00:14:25,820 --> 00:14:30,140 Suze: Roth retirement accounts. So when the time comes, guess what, 217 00:14:30,599 --> 00:14:36,710 Suze: your RMDs won't be that big anyway. Just so, you know, 218 00:14:36,739 --> 00:14:39,789 Suze: so that's really what I would be doing. 219 00:14:40,119 --> 00:14:42,590 Suze: There's all kinds of things that I could tell you 220 00:14:42,599 --> 00:14:45,150 Suze: to do that. I'm sure I wrote you about. But 221 00:14:45,159 --> 00:14:49,090 Suze: that is the most important thing I want you to consider. 222 00:14:49,219 --> 00:14:54,179 Suze: All right, because if you start planning now, you'll be 223 00:14:54,190 --> 00:15:00,580 Suze: very happy that you did 15 or 14 years from now. 224 00:15:01,599 --> 00:15:02,400 Suze: All right, KT. 225 00:15:03,380 --> 00:15:04,049 KT: You don't like RMDs. 226 00:15:04,590 --> 00:15:08,119 Suze: I just think I'm mad at myself that we have 227 00:15:08,130 --> 00:15:10,049 Suze: to take them. I told you before. 228 00:15:10,059 --> 00:15:13,020 KT: You told us a couple podcasts that you made a mistake. 229 00:15:13,030 --> 00:15:15,799 Suze: I made a serious mistake and I was yelling at 230 00:15:15,809 --> 00:15:18,909 Suze: the person I do all my money with. I was like, 231 00:15:19,070 --> 00:15:22,919 Suze: why we were discussing what my RMDs are going to be? 232 00:15:22,929 --> 00:15:25,780 Suze: When should we take them? Should we take them in 233 00:15:25,789 --> 00:15:28,190 Suze: like kind, what should we do with them and things 234 00:15:28,200 --> 00:15:28,780 Suze: like that? 235 00:15:29,070 --> 00:15:33,219 Suze: And I said, and why the heck didn't we convert 236 00:15:33,229 --> 00:15:37,330 Suze: in 2010 when we were able to convert all of it? 237 00:15:37,580 --> 00:15:40,150 Suze: Who cares if I would have paid taxes. I was 238 00:15:40,159 --> 00:15:45,890 Suze: allowed to pay taxes over 2011 and 2012. Not 2010. 239 00:15:46,239 --> 00:15:49,320 Suze: And for all these years, I would have had all 240 00:15:49,330 --> 00:15:53,500 Suze: this growth because I did magnificently truthfully, KT for us 241 00:15:53,650 --> 00:15:58,419 Suze: during all those years. And I'm like, what was wrong 242 00:15:58,429 --> 00:16:02,380 Suze: with me? What were you thinking? I was not thinking. 243 00:16:03,219 --> 00:16:07,619 KT: I, I love this question, Suze. This is a need 244 00:16:07,630 --> 00:16:10,619 KT: or a want question from Eric. 245 00:16:11,059 --> 00:16:12,570 KT: Curious on your thoughts. 246 00:16:12,580 --> 00:16:13,469 Suze: Another man. 247 00:16:13,599 --> 00:16:17,630 KT: Yeah, I, I picked a lot of guys, Suze, curious 248 00:16:17,640 --> 00:16:21,869 KT: on your thoughts on investing in art and wine, both 249 00:16:21,880 --> 00:16:27,659 KT: solo and I love this question and actively managed with 250 00:16:27,669 --> 00:16:31,030 KT: a company or through an app. So Eric said, 251 00:16:31,153 --> 00:16:34,893 KT: asking your thoughts on investing in art and wine. I 252 00:16:34,903 --> 00:16:37,343 KT: love this question. I like it. 253 00:16:37,353 --> 00:16:38,872 Suze: Then why don't you answer it? 254 00:16:38,942 --> 00:16:42,973 KT: Yes, yes, yes. However, I'm gonna answer if you can 255 00:16:42,982 --> 00:16:46,552 KT: afford it because it's, if this is a need or 256 00:16:46,562 --> 00:16:49,552 KT: a want, it's really a want. And if you can 257 00:16:49,562 --> 00:16:51,252 KT: afford to invest in 258 00:16:51,356 --> 00:16:56,176 KT: art and wine boyfriend, as Suze would say do it however... 259 00:16:56,195 --> 00:16:57,786 Suze: But you don't know I would say that. 260 00:16:58,026 --> 00:17:02,306 KT: So, KT would say boyfriend do it. Now, wait. KT 261 00:17:02,315 --> 00:17:06,776 KT: has another bit of advice. I'd be very careful in 262 00:17:06,786 --> 00:17:10,615 KT: who I invested with in terms of a company or 263 00:17:10,625 --> 00:17:11,416 KT: an app. 264 00:17:11,880 --> 00:17:15,130 KT: I think it's really important that maybe you start some 265 00:17:15,140 --> 00:17:19,939 KT: direct investing either with a small gallery that you know, 266 00:17:19,949 --> 00:17:25,219 KT: or with the wineries themselves, every great winery here, just 267 00:17:25,229 --> 00:17:27,380 KT: here in our own country in California 268 00:17:28,109 --> 00:17:32,239 KT: has fabulous programs and investigate what you wanna do before 269 00:17:32,250 --> 00:17:33,170 KT: your investment. 270 00:17:34,040 --> 00:17:37,739 Suze: Oh, she's so proud of her answer everybody. You, you 271 00:17:37,750 --> 00:17:39,300 Suze: know how she always says, oh, you should see her 272 00:17:39,310 --> 00:17:42,939 Suze: face when she's talking about me. When an insurance question 273 00:17:42,949 --> 00:17:47,329 Suze: comes up, you should see her face. She's so, so (laughs)... 274 00:17:48,750 --> 00:17:51,709 Suze: Here's what I would tell you, Eric. There are more 275 00:17:51,719 --> 00:17:55,438 Suze: things than you realize when it comes to investing in 276 00:17:55,449 --> 00:17:57,079 Suze: art or wine. 277 00:17:57,900 --> 00:18:02,209 Suze: It's storing the wine. We have a very big wine collection. 278 00:18:02,219 --> 00:18:06,530 KT: We do, we do, Suze doesn't drink by the way, everybody, 279 00:18:06,719 --> 00:18:08,050 KT: but she has a sip. 280 00:18:08,060 --> 00:18:12,859 Suze: Maybe when KT met me, I had already started to 281 00:18:12,869 --> 00:18:14,209 Suze: invest in wine 282 00:18:14,630 --> 00:18:17,369 Suze: and I took her to a cellar that I had 283 00:18:17,859 --> 00:18:20,839 Suze: and she was very impressed with it. And of course, 284 00:18:20,900 --> 00:18:25,209 Suze: that investment went into her stomach. But that is, besides 285 00:18:25,219 --> 00:18:25,780 Suze: the point... 286 00:18:25,790 --> 00:18:29,839 KT: It went into a fabulous fine glass. That's right with a 287 00:18:29,859 --> 00:18:31,010 KT: great dinner. 288 00:18:31,229 --> 00:18:34,889 Suze: But it cost me a lot of money 289 00:18:35,550 --> 00:18:40,369 Suze: to store those wines just so, you know, it costs 290 00:18:40,380 --> 00:18:46,479 Suze: us money today to store all the wines and insure them. 291 00:18:46,489 --> 00:18:49,510 Suze: All right. Now, let's move on to art. 292 00:18:50,420 --> 00:18:52,550 Suze: We invested in some art 293 00:18:53,349 --> 00:18:56,569 Suze: and we thought we were gonna do great with it. 294 00:18:56,839 --> 00:18:59,409 Suze: And one of the pieces that we had evaluated the 295 00:18:59,420 --> 00:19:05,170 Suze: other day actually has gone down in value rather than up. 296 00:19:05,989 --> 00:19:09,910 Suze: And so when it also comes to art, you have 297 00:19:09,920 --> 00:19:13,810 Suze: to ensure your art. So there is a cost to 298 00:19:13,819 --> 00:19:23,369 Suze: protecting these investments and therefore you better take that into consideration. So, Eric, 299 00:19:23,380 --> 00:19:26,699 Suze: you better know what you're doing because chances are 300 00:19:27,640 --> 00:19:31,379 Suze: it might not be as great as an investment as 301 00:19:31,390 --> 00:19:35,859 Suze: you think after all the costs, especially if you don't 302 00:19:35,939 --> 00:19:41,639 Suze: have a reputable person to guide you start with the wine. 303 00:19:44,020 --> 00:19:47,079 Suze: I have to say one other thing, most people who 304 00:19:47,089 --> 00:19:49,780 Suze: invest in serious pieces of art, 305 00:19:50,439 --> 00:19:53,319 Suze: they invest because they love the art, 306 00:19:54,119 --> 00:19:57,310 Suze: they love it, they love looking at it. They want 307 00:19:57,319 --> 00:20:01,938 Suze: it around them. They don't necessarily care about selling it ever. 308 00:20:02,550 --> 00:20:05,339 Suze: They just kind of want it. But KT, I know 309 00:20:05,349 --> 00:20:07,109 Suze: we can go on here. Why don't you tell them 310 00:20:07,119 --> 00:20:11,109 Suze: about the art that you missed investing in? Come on 311 00:20:11,119 --> 00:20:13,739 Suze: a quick story. Come on, KT. 312 00:20:14,150 --> 00:20:18,609 KT: I was very, very good friends with Andy Warhol, everybody. 313 00:20:18,949 --> 00:20:20,770 Suze: And tell him what you passed up. 314 00:20:21,339 --> 00:20:23,619 KT: And I remember and I was young, I was a 315 00:20:23,630 --> 00:20:25,869 KT: young art director in New York at the time. And 316 00:20:25,880 --> 00:20:29,180 KT: I remember and Andy loved me. He would, he would take... 317 00:20:29,239 --> 00:20:30,339 Suze: Everybody loves you! 318 00:20:30,500 --> 00:20:33,349 KT: ...take me to studio 54 and all those great night 319 00:20:33,359 --> 00:20:36,439 KT: spots in New York. So anyway, I remember one day 320 00:20:36,449 --> 00:20:39,469 KT: we were in his factory um in New York City and, 321 00:20:39,650 --> 00:20:42,479 KT: and he was doing all these silk screens of Chairman 322 00:20:42,489 --> 00:20:45,679 KT: Mao and different portraits, his famous portraits. 323 00:20:45,890 --> 00:20:48,270 KT: And he asked me if I wanted one. And I said, 324 00:20:48,280 --> 00:20:54,448 KT: how much is it? He said, for you, $350 dollars. Everybody. 325 00:20:55,359 --> 00:20:57,750 KT: I said, well, let me think about it. Maybe, maybe 326 00:20:57,760 --> 00:21:00,380 KT: I'll get one next month or so. I didn't think 327 00:21:00,390 --> 00:21:01,469 KT: at all about it 328 00:21:02,319 --> 00:21:04,750 Suze: And you didn't ever really afford it at that time. 329 00:21:04,760 --> 00:21:07,439 KT: No, no, no, no. I, I could afford it but 330 00:21:07,449 --> 00:21:09,349 KT: you didn't do it. I didn't do it. 331 00:21:09,359 --> 00:21:09,790 Suze: Why? 332 00:21:09,800 --> 00:21:12,050 KT: Because I thought I could just do this any time. 333 00:21:12,060 --> 00:21:12,969 KT: We're friends now. 334 00:21:12,979 --> 00:21:15,469 Suze: Just tell everybody what that sells for today. 335 00:21:16,550 --> 00:21:19,400 Suze: I don't really know the exact price of his prints 336 00:21:19,410 --> 00:21:24,179 Suze: to get many millions, millions, many millions. He had the 337 00:21:24,189 --> 00:21:29,379 Suze: Marilyn Monroe. He had quite a few famous, great, great portraits. 338 00:21:29,900 --> 00:21:33,800 Suze: Grace Kelly. Grace Kelly was a beautiful one. Yeah. All right. 339 00:21:33,810 --> 00:21:36,130 Suze: So anyway, you, you probably 340 00:21:36,420 --> 00:21:39,510 Suze: shouldn't listen to KT. All right. Go on. 341 00:21:39,930 --> 00:21:43,829 KT: Ok. So next question, stick with the wine. 342 00:21:43,839 --> 00:21:45,709 Suze: There was another thing she passed up that would have 343 00:21:45,719 --> 00:21:48,479 Suze: made her so wealthy. It's not even funny, but we 344 00:21:48,489 --> 00:21:49,959 Suze: can talk about that another time. 345 00:21:51,479 --> 00:21:56,099 KT: Coffee, right. The coffee story. Oh God, it kills me. 346 00:21:57,300 --> 00:22:00,410 KT: All right. Next question. Let's get into my questions. I 347 00:22:00,420 --> 00:22:03,599 KT: have a mountain of questions. Hi, Suze. Let me start 348 00:22:03,609 --> 00:22:07,359 KT: by acknowledging you as a Trailblazer and beacon of light 349 00:22:07,369 --> 00:22:10,560 KT: for all of us women who want to take charge 350 00:22:10,569 --> 00:22:14,359 KT: of our lives. And finances. Thank you. And I am. 351 00:22:14,369 --> 00:22:15,520 KT: This is from Darchase. 352 00:22:16,839 --> 00:22:21,329 KT: She said I am a recently widowed retired veteran spouse 353 00:22:21,550 --> 00:22:25,900 KT: equity in the home that we purchased is in 2005 354 00:22:26,050 --> 00:22:30,770 KT: has doubled. The present mortgage rate is 3.5% with a 355 00:22:30,780 --> 00:22:36,599 KT: balance of 100 and 16,000. The home was built in 1986. 356 00:22:36,760 --> 00:22:40,099 KT: It's presently worth about 270,000. 357 00:22:40,560 --> 00:22:43,260 KT: Suze. I would like to do some renovations and I've 358 00:22:43,270 --> 00:22:47,260 KT: been thinking about using the equity to acquire upfront cash, 359 00:22:47,579 --> 00:22:52,239 KT: a 30 year refinance loan, especially with rates in excess 360 00:22:52,250 --> 00:22:54,979 KT: of 7% is out of the question. 361 00:22:55,410 --> 00:22:59,959 KT: What would you suggest as an alternative to acquire cash 362 00:23:00,069 --> 00:23:04,198 KT: without losing my current rate of 3.5%? 363 00:23:04,209 --> 00:23:08,359 Suze: Here's the scoop girlfriend you didn't list in this email. 364 00:23:08,369 --> 00:23:10,560 Suze: And first of all, both KT and I are very, 365 00:23:10,569 --> 00:23:12,469 Suze: very sorry for your loss. 366 00:23:13,185 --> 00:23:16,554 Suze: And the truth of the matter is that if you 367 00:23:16,564 --> 00:23:19,814 Suze: want to do some renovations, you didn't tell us any 368 00:23:19,824 --> 00:23:24,854 Suze: other alternatives that you have for cash, meaning a retirement account, 369 00:23:24,864 --> 00:23:28,474 Suze: an investment account, anything else? So I'm gonna assume this 370 00:23:28,484 --> 00:23:31,564 Suze: is the only way that you can do it. So 371 00:23:31,574 --> 00:23:35,114 Suze: if I were you, I would simply do even though 372 00:23:35,125 --> 00:23:37,795 Suze: I don't suggest it right now because interest rates are 373 00:23:37,805 --> 00:23:38,583 Suze: so high, 374 00:23:38,890 --> 00:23:43,669 Suze: but I would seriously simply not refinance my home. I 375 00:23:43,680 --> 00:23:47,919 Suze: would try to do a home equity line of credit 376 00:23:48,290 --> 00:23:50,510 Suze: in the hope that they see that you have enough 377 00:23:50,520 --> 00:23:55,650 Suze: income and everything to qualify for that. When interest rates 378 00:23:55,660 --> 00:23:59,430 Suze: go back down again. If you want, you could then 379 00:23:59,439 --> 00:24:03,389 Suze: possibly refinance all of it back to maybe 3.5% or 380 00:24:03,400 --> 00:24:05,389 Suze: who knows what. But 381 00:24:05,790 --> 00:24:08,569 Suze: here's something that I just want to say for all 382 00:24:08,579 --> 00:24:14,089 Suze: of you. If you ever do refinance in any situation, 383 00:24:14,550 --> 00:24:18,930 Suze: if you have, let's say a 30 year mortgage, 384 00:24:19,530 --> 00:24:23,389 Suze: you have been paying on it now for seven years, 385 00:24:23,800 --> 00:24:28,689 Suze: you have 23 years left. Now, interest rates have come 386 00:24:28,699 --> 00:24:32,430 Suze: down and you've decided. All right, I want to refinance 387 00:24:32,810 --> 00:24:38,198 Suze: and if you refinance for another 30 years now, you 388 00:24:38,209 --> 00:24:44,188 Suze: have totally obliterated the reason that you should really be refinancing. 389 00:24:44,410 --> 00:24:47,500 Suze: So if interest rates come down 390 00:24:48,369 --> 00:24:53,520 Suze: and you do refinance, and let's say you owe 23 391 00:24:53,530 --> 00:24:58,429 Suze: years still on your mortgage, then you would refinance for 392 00:24:58,439 --> 00:25:05,089 Suze: 20 years, never refinance for longer than the period of 393 00:25:05,099 --> 00:25:09,589 Suze: time you currently have left on your mortgage. 394 00:25:09,910 --> 00:25:11,239 Suze: All right, KT. 395 00:25:11,260 --> 00:25:14,219 KT: Ok. This is from Lynn. Hi Suze. I want to 396 00:25:14,229 --> 00:25:19,069 KT: open a 12 month CD with $3000 and I also 397 00:25:19,079 --> 00:25:23,430 KT: want to add more money in every month, like $1000. 398 00:25:23,439 --> 00:25:26,250 KT: Is it possible for this type of account? 399 00:25:28,689 --> 00:25:30,849 Suze: It's actually it's not. 400 00:25:31,479 --> 00:25:34,140 Suze: And let me tell you why, let's say you decide 401 00:25:34,150 --> 00:25:36,430 Suze: you want to take advantage of the high rates of 402 00:25:36,439 --> 00:25:40,208 Suze: the CDs right now at Alliant Credit Union, which you 403 00:25:40,219 --> 00:25:42,699 Suze: probably should do if you want a 12 month. Just so, 404 00:25:42,709 --> 00:25:46,420 Suze: you know, and you lock in that rate 405 00:25:47,829 --> 00:25:52,050 Suze: the next month, the you cannot add to that account 406 00:25:52,060 --> 00:25:56,599 Suze: and get that rate. The minimum is $1000 to get 407 00:25:56,609 --> 00:26:02,089 Suze: a CD at a bank or a credit union. So therefore, 408 00:26:02,099 --> 00:26:06,689 Suze: every month you would open up another CD. 409 00:26:07,420 --> 00:26:10,959 Suze: And by doing that, you would get the rate that 410 00:26:10,969 --> 00:26:14,839 Suze: was in effect that month. So I don't want you 411 00:26:14,849 --> 00:26:17,639 Suze: to think that you can open a CD that's giving 412 00:26:17,650 --> 00:26:20,969 Suze: you a great rate today and eight months from now, 413 00:26:20,979 --> 00:26:23,339 Suze: if rates have gone down, you're gonna get the rate 414 00:26:23,349 --> 00:26:27,609 Suze: that you got when you invested your $3000. So a 415 00:26:27,619 --> 00:26:31,899 Suze: certificate of deposit is exactly, that is a certificate of 416 00:26:31,910 --> 00:26:33,359 Suze: that deposit. 417 00:26:34,479 --> 00:26:38,119 Suze: If you add $1000 it will be a certificate for 418 00:26:38,130 --> 00:26:40,890 Suze: one year or whatever you do of that 1000. 419 00:26:41,709 --> 00:26:44,150 Suze: Otherwise you always have the ability 420 00:26:44,910 --> 00:26:50,099 Suze: to do a money market account for $3000. Get maybe 421 00:26:50,109 --> 00:26:53,209 Suze: a higher interest rate, who knows? And just add the 422 00:26:53,219 --> 00:26:56,560 Suze: $1000 a month into that up to you. The danger 423 00:26:56,569 --> 00:27:00,410 Suze: with that is if interest rates go down, 424 00:27:01,229 --> 00:27:04,739 Suze: you are going to get a lower interest rate with 425 00:27:04,750 --> 00:27:09,069 Suze: a certificate of deposit. You lock it in. All right, KT. Ok. 426 00:27:09,079 --> 00:27:13,188 KT: Next question. All right, next question 427 00:27:13,910 --> 00:27:18,050 KT: ready. All right. Hi, Suze. In your podcast. Don't be 428 00:27:18,060 --> 00:27:19,899 KT: partners with Uncle Sam. 429 00:27:22,550 --> 00:27:23,139 Suze: That was a great podcast.  Did you listen to it KT? 430 00:27:23,150 --> 00:27:28,859 KT: Not all of it. But I know you underline the 431 00:27:28,869 --> 00:27:33,639 KT: superiority of Roth retirement accounts. I agree with you. But 432 00:27:33,650 --> 00:27:37,520 KT: there is a glitch. This is from Lana, but here 433 00:27:37,530 --> 00:27:38,420 KT: is the glitch... 434 00:27:39,770 --> 00:27:40,270 Suze: There is no glitch. 435 00:27:41,010 --> 00:27:42,359 KT: She thinks she has a glitch, 436 00:27:43,329 --> 00:27:43,859 Suze: No glitch. 437 00:27:44,160 --> 00:27:50,390 KT: She thinks she has a glitch. My job only offers a 403b traditional, not a Roth traditional. 438 00:27:50,400 --> 00:27:55,520 KT: Everyone is when it's invested with pre-tax dollars. So 439 00:27:55,530 --> 00:28:00,629 Suze: So smart. OK. You pretty, you're smart. OK. All right. 440 00:28:00,680 --> 00:28:03,930 KT: Let's get through the question. Anyway, 441 00:28:04,359 --> 00:28:07,390 KT: I opened a Roth IRA with Vanguard and I've been 442 00:28:07,400 --> 00:28:13,790 KT: contributing to the max since 2021 Suze. I'm 38 years old. 443 00:28:13,800 --> 00:28:17,989 KT: It seems like contributing up to the max of 23,000 444 00:28:18,250 --> 00:28:22,510 KT: in a traditional 403 is better for my future. 445 00:28:23,300 --> 00:28:26,349 Suze: So why can't you do both? Number one. 446 00:28:26,359 --> 00:28:29,280 KT: So here's what should she do? 447 00:28:29,290 --> 00:28:33,930 Suze: Of course, here, if you say contributing the max which 448 00:28:33,939 --> 00:28:39,959 Suze: is 23,000 in 2024. If you're under 50 it's 30,500. 449 00:28:39,969 --> 00:28:44,569 Suze: By the way, if you're 50 or older for a 403b, 450 00:28:45,920 --> 00:28:49,619 Suze: I don't know if they match your contribution or not. 451 00:28:50,569 --> 00:28:51,410 Suze: However, 452 00:28:52,209 --> 00:28:55,780 Suze: you could absolutely do both. If you don't have the 453 00:28:55,790 --> 00:29:01,390 Suze: money to do both, then put the max of $7000 454 00:29:01,400 --> 00:29:07,459 Suze: this year into your Roth and the remainder of 16,000 455 00:29:07,869 --> 00:29:11,459 Suze: into your 403 b just that easy. If you could 456 00:29:11,469 --> 00:29:16,060 Suze: max out both. Great. That's what you should do. It's 457 00:29:16,069 --> 00:29:19,949 Suze: better to do something than to do nothing. However, one 458 00:29:19,959 --> 00:29:20,729 Suze: last thing, 459 00:29:21,089 --> 00:29:25,880 Suze: remember, go back in the podcast where I do a 460 00:29:25,890 --> 00:29:31,750 Suze: whole session on how possibly investing in an investment account 461 00:29:32,010 --> 00:29:37,550 Suze: is better than a pre-tax retirement account after the point 462 00:29:37,560 --> 00:29:41,969 Suze: of the match. Just listen to that and then decide. All right, 463 00:29:41,979 --> 00:29:44,250 Suze: KT got any more for me or is that it? 464 00:29:44,260 --> 00:29:48,150 Suze: That was it? Are you sure? All right, because guess 465 00:29:48,160 --> 00:29:49,589 Suze: what I have for you, 466 00:29:49,880 --> 00:29:50,839 KT: A Quizzy! 467 00:29:51,589 --> 00:29:55,489 Suze: And everybody. This is a great quizzy. I love this quizzy, 468 00:29:55,849 --> 00:29:58,739 Suze: but it's not just for KT, as I say, every week, 469 00:29:58,750 --> 00:30:03,150 Suze: it's for you as well. How would you answer this question? 470 00:30:03,250 --> 00:30:05,530 Suze: Because there will be many of you out there who 471 00:30:05,540 --> 00:30:10,459 Suze: happen to be in this exact situation. Are you ready, KT? 472 00:30:10,469 --> 00:30:11,060 KT: I'm ready. 473 00:30:11,839 --> 00:30:16,739 Suze: This is from Ashley and I picked it because I 474 00:30:16,750 --> 00:30:21,290 Suze: bet there's a lot of our younger listeners that are 475 00:30:21,300 --> 00:30:23,699 Suze: in this exact situation. 476 00:30:24,959 --> 00:30:28,790 Suze: Hi, Suze and KT. You two are the best all 477 00:30:28,800 --> 00:30:32,930 Suze: in capitals. You help me fund my first Roth, buy 478 00:30:32,939 --> 00:30:37,119 Suze: our first place in New York City and start investing 479 00:30:37,130 --> 00:30:41,859 Suze: on my own. I fired my financial advisor whom I 480 00:30:41,869 --> 00:30:47,640 Suze: never heard from dollar cost averaging. Yeah, baby. So here 481 00:30:47,650 --> 00:30:51,380 Suze: I am at another big life step. 482 00:30:51,930 --> 00:30:57,790 Suze: Having a baby. Yay. It's so easy to calculate the 483 00:30:57,800 --> 00:31:02,400 Suze: cost of affording a home but it's so hard all 484 00:31:02,410 --> 00:31:07,170 Suze: in capitals to find info on whether you're financially secure 485 00:31:07,180 --> 00:31:13,800 Suze: enough to take care of another tiny human, so sweet Ashley. 486 00:31:14,239 --> 00:31:18,619 Suze: And she says I'm, this is all not only some 487 00:31:18,630 --> 00:31:20,829 Suze: of it in capitals but bolded. 488 00:31:21,250 --> 00:31:28,089 Suze: I'm very worried about the financial stress of this step, 489 00:31:28,280 --> 00:31:30,510 Suze: even if it's an amazing one. 490 00:31:31,839 --> 00:31:36,300 Suze: Just the cost of daycare in our area, write it down. 491 00:31:36,310 --> 00:31:40,250 Suze: KT is $3500 a month 492 00:31:40,930 --> 00:31:45,189 Suze: and my husband and I are willing to postpone kids 493 00:31:45,199 --> 00:31:50,750 Suze: till it makes sense. Financially, adoption is always an option 494 00:31:51,420 --> 00:31:55,099 Suze: for her for you, Ashley. I have to tell you that, 495 00:31:55,280 --> 00:31:58,859 Suze: but here is Ashley's situation. Now, everybody that you have 496 00:31:58,869 --> 00:32:04,540 Suze: to write down the monthly income is about $10,000 after 497 00:32:04,550 --> 00:32:06,989 Suze: taxes plus bonuses. 498 00:32:07,550 --> 00:32:11,410 Suze: And so therefore it's about in my estimation and I'm 499 00:32:11,420 --> 00:32:16,609 Suze: the one doing this about $15,000 a month after taxes, 500 00:32:17,880 --> 00:32:23,640 Suze: they have $86,000 in an emergency fund. 501 00:32:24,469 --> 00:32:31,569 Suze: Their retirement investments are about 100 and $38,000. 502 00:32:33,089 --> 00:32:42,949 Suze: Their monthly expenses are $6000 including mortgage insurance, food and transport. Now, 503 00:32:42,959 --> 00:32:48,150 Suze: what I'm not exactly clear about with all this, everybody is, 504 00:32:48,160 --> 00:32:52,089 Suze: does that include the savings into retirement accounts and things 505 00:32:52,099 --> 00:32:55,550 Suze: like that? I'm not sure, but we will just take 506 00:32:55,560 --> 00:32:59,589 Suze: her word for it that it's $6000. 507 00:33:00,010 --> 00:33:04,910 Suze: So the question is KT with all of that, 508 00:33:05,790 --> 00:33:07,089 Suze: do you think 509 00:33:08,329 --> 00:33:13,300 Suze: that she has enough money at this point in time 510 00:33:13,369 --> 00:33:19,170 Suze: to have a baby. Everybody think about it. Please add 511 00:33:19,180 --> 00:33:23,170 Suze: in at least the cost of daycare 512 00:33:25,780 --> 00:33:28,819 Suze: and she does not say how old she is just so, 513 00:33:28,829 --> 00:33:30,760 Suze: you know. Ok, 514 00:33:31,420 --> 00:33:32,920 KT: I, I have my answer. 515 00:33:34,030 --> 00:33:36,510 Suze: That was quick. I can't wait to hear this. 516 00:33:36,579 --> 00:33:41,650 KT: So her expenses right now including daycare with the baby 517 00:33:42,369 --> 00:33:47,069 KT: is about $9500 a month. Let's say those bonuses don't 518 00:33:47,079 --> 00:33:49,949 KT: really come to fruition as much as we want them to. 519 00:33:49,959 --> 00:33:54,510 KT: So you're, you're estimating 15,000 a month of income. 520 00:33:54,520 --> 00:33:56,989 Suze: And I'm the reason I'm doing that, KT is, she 521 00:33:57,000 --> 00:34:01,079 Suze: also says on her, her annual income, their annual income 522 00:34:01,089 --> 00:34:05,229 Suze: before taxes is $237,000. 523 00:34:05,635 --> 00:34:08,574 Suze: So in the state of New York, you have cities. 524 00:34:08,685 --> 00:34:10,455 Suze: All right. All right. All right. So, so let me 525 00:34:10,465 --> 00:34:13,804 Suze: just get to my point. I feel comfortable with that $15,000. 526 00:34:13,834 --> 00:34:16,504 KT: Ok. So let me just get to the point here. 527 00:34:16,514 --> 00:34:18,844 KT: I would wait a little bit before I had the 528 00:34:18,854 --> 00:34:21,875 KT: baby and I'll tell you why. I think if you 529 00:34:21,885 --> 00:34:25,504 KT: have a little bit of a, I would put another 530 00:34:25,514 --> 00:34:29,024 KT: bucket in your list here called Baby Fund. I would 531 00:34:29,034 --> 00:34:31,185 KT: build a little more of a cushion 532 00:34:31,549 --> 00:34:34,888 KT: just for the what ifs of having a baby? And 533 00:34:34,898 --> 00:34:37,378 KT: I would eliminate the most important thing you put in 534 00:34:37,388 --> 00:34:41,299 KT: this email, which is the word stress. You cannot get 535 00:34:41,309 --> 00:34:45,979 KT: pregnant and enjoy nine months before your little tiny human 536 00:34:45,989 --> 00:34:51,979 KT: arrives and have any stress. So just wait maybe two years. 537 00:34:51,989 --> 00:34:54,378 KT: If you can, we do again, we don't know how 538 00:34:54,388 --> 00:34:55,349 KT: old you are. 539 00:34:55,739 --> 00:34:59,489 Suze: But if you could wait two years, you could probably 540 00:34:59,500 --> 00:35:03,529 Suze: acquire a great deal of money in just a baby fund. 541 00:35:03,540 --> 00:35:06,939 Suze: So that's your answer. There is no right or wrong 542 00:35:06,949 --> 00:35:07,610 Suze: answer here. 543 00:35:07,620 --> 00:35:10,989 KT: No, because we love babies and we think it's great. 544 00:35:11,000 --> 00:35:14,219 Suze: So let me tell you how I think about this 545 00:35:14,229 --> 00:35:17,350 Suze: and what I would tell you to do, Ashley. Right. 546 00:35:17,360 --> 00:35:20,479 Suze: And again, I'm not going to approve or deny because 547 00:35:20,489 --> 00:35:22,090 Suze: you're the one once again, 548 00:35:22,489 --> 00:35:25,030 Suze: that has to make this decision. But I just want 549 00:35:25,040 --> 00:35:28,989 Suze: to give you a little bit more information about how 550 00:35:29,000 --> 00:35:30,909 Suze: to make this decision, 551 00:35:31,600 --> 00:35:37,120 Suze: your income and bonuses again, after tax 15,000, we all 552 00:35:37,129 --> 00:35:41,948 Suze: know that 86,000 in emergency savings expenses and things like that. 553 00:35:41,959 --> 00:35:44,949 Suze: All right, we all know your money. What is not 554 00:35:44,959 --> 00:35:49,060 Suze: in this equation is the cost of a child today. 555 00:35:49,070 --> 00:35:54,540 Suze: Forget daycare, forget that there are costs to having a 556 00:35:54,550 --> 00:35:59,179 Suze: child and it comes out to be approximately 557 00:35:59,719 --> 00:36:07,428 Suze: $25,000 a year till about the age of 17 or 18. 558 00:36:07,790 --> 00:36:13,870 Suze: And that does not include, by the way, saving for college. 559 00:36:14,209 --> 00:36:16,350 Suze: So what we have to do is we have to 560 00:36:16,360 --> 00:36:17,110 Suze: add 561 00:36:17,629 --> 00:36:23,370 Suze: $2000 to your actual cost, not just 3500 a month, 562 00:36:23,379 --> 00:36:28,879 Suze: but another 2000 a month. So that's $5500 added to 563 00:36:28,889 --> 00:36:32,330 Suze: what you say of 6000. So let's just say your 564 00:36:32,340 --> 00:36:38,250 Suze: monthly expenses now are $12,000 a month. 565 00:36:38,959 --> 00:36:41,870 Suze: So here's what I would like you to do to 566 00:36:41,879 --> 00:36:44,340 Suze: see if you're figuring things correctly, 567 00:36:45,679 --> 00:36:47,350 Suze: if it is true 568 00:36:48,139 --> 00:36:54,310 Suze: that your expenses are $12,000 a month. And now you 569 00:36:54,320 --> 00:37:01,069 Suze: have approximately $15,000 a month of income. 570 00:37:01,989 --> 00:37:08,969 Suze: The difference there is $3000 a month. Correct, Ashley for 571 00:37:08,979 --> 00:37:12,830 Suze: you to just get by with this child. Therefore, for 572 00:37:12,840 --> 00:37:18,000 Suze: the next six months, I want you to play having 573 00:37:18,010 --> 00:37:18,810 Suze: a child. 574 00:37:19,600 --> 00:37:23,340 Suze: In fact, what you should do is put away anywhere 575 00:37:23,350 --> 00:37:30,439 Suze: from 3 to $6000 a month into a high yield 576 00:37:30,449 --> 00:37:36,090 Suze: money market account and see how it feels that you 577 00:37:36,100 --> 00:37:39,590 Suze: have this child and you have an additional, let's just 578 00:37:39,600 --> 00:37:45,500 Suze: say $6000 of expenses from what you have right now 579 00:37:45,979 --> 00:37:49,529 Suze: because I'm just going to assume that the difference between 580 00:37:49,540 --> 00:37:53,310 Suze: what your expenses are now and your income, you're putting 581 00:37:53,320 --> 00:37:58,679 Suze: away in savings. So let's just say you do increase 582 00:37:58,689 --> 00:38:01,469 Suze: by $6000 a month, 583 00:38:02,629 --> 00:38:07,929 Suze: you put $6000 a month away for one year and 584 00:38:07,939 --> 00:38:12,239 Suze: see how it feels. Now, you have to ask yourself 585 00:38:12,250 --> 00:38:16,448 Suze: the question. Was that easy for you to do? You 586 00:38:16,459 --> 00:38:20,009 Suze: should set a date at the first of every month 587 00:38:20,020 --> 00:38:23,000 Suze: that you put that money away. Can you put it 588 00:38:23,010 --> 00:38:26,250 Suze: away on the first of every month or is it 589 00:38:26,260 --> 00:38:29,290 Suze: too hard for you to do that. Can you not 590 00:38:29,300 --> 00:38:30,209 Suze: afford it? 591 00:38:30,540 --> 00:38:33,320 Suze: Was there a month that you could not do it? 592 00:38:33,739 --> 00:38:39,120 Suze: Was your lifestyle changed dramatically because you had to do that. 593 00:38:39,570 --> 00:38:43,719 Suze: And if it was changed, how did it change? Now, obviously, 594 00:38:44,209 --> 00:38:47,959 Suze: your life's gonna change when you have a baby and 595 00:38:47,969 --> 00:38:51,719 Suze: you're going to be just like everybody else, you're gonna 596 00:38:51,729 --> 00:38:54,870 Suze: experience love. At least this is what everybody else says 597 00:38:54,969 --> 00:38:58,120 Suze: more than you've ever experienced love in your life. So 598 00:38:58,129 --> 00:38:59,909 Suze: it's gonna be fabulous. 599 00:39:00,520 --> 00:39:08,830 Suze: However, can you easily afford it before the baby comes? Now, 600 00:39:08,840 --> 00:39:12,290 Suze: here's the good news. If you're able to do that, 601 00:39:12,300 --> 00:39:16,189 Suze: let's say, put $6000 a month away for a year. 602 00:39:16,949 --> 00:39:23,070 Suze: Now you have an additional $72,000 my love to add 603 00:39:23,080 --> 00:39:27,009 Suze: to your emergency fund, which will then bring you to 604 00:39:27,020 --> 00:39:33,770 Suze: a total of $158,000 and that's one year 605 00:39:34,149 --> 00:39:38,908 Suze: of living expenses if something goes wrong so that you 606 00:39:38,919 --> 00:39:42,129 Suze: can maintain everything, even if you can't work or whatever 607 00:39:42,139 --> 00:39:46,699 Suze: it may be. That is how I would decide if 608 00:39:46,709 --> 00:39:51,810 Suze: I were you. If you could easily afford a child 609 00:39:51,820 --> 00:39:53,889 Suze: without stress, 610 00:39:54,620 --> 00:39:56,239 Suze: KT, how was my answer? 611 00:39:56,250 --> 00:39:57,340 KT: Ding, ding, ding, ding, ding. 612 00:39:57,459 --> 00:40:00,919 Suze: Thank you, girlfriend. All right, everybody. I hope we didn't 613 00:40:00,929 --> 00:40:03,800 Suze: go too long in this podcast for you. I hope 614 00:40:03,810 --> 00:40:06,760 Suze: you are very happy to have us back. Don't forget 615 00:40:06,770 --> 00:40:10,719 Suze: to go to my alliant.com to sign up for that 616 00:40:10,729 --> 00:40:16,560 Suze: Quiz and possibly win $5000. And what does everybody need 617 00:40:16,570 --> 00:40:17,929 Suze: to remember KT? 618 00:40:18,260 --> 00:40:20,620 KT: People first, then, then things 619 00:40:22,610 --> 00:40:26,949 Suze: and if you do that and you stay safe, you will be what? Unstoppable?