1 00:00:45,810 --> 00:00:50,979 Suze: March 7th 2024. Welcome everybody to the Women and Money 2 00:00:50,990 --> 00:00:52,299 Suze: podcast as well as... 3 00:00:52,380 --> 00:00:53,830 KT: Everyone smart enough to listen. 4 00:00:55,790 --> 00:01:01,090 Suze: Good you did it! Ding Ding Ding! Good on you KT. And this is Suze O and KT here 5 00:01:01,099 --> 00:01:06,199 Suze: and this is the Ask KT and Suze Anything podcast, however, 6 00:01:06,720 --> 00:01:08,680 Suze: we're here, but we're not really here. 7 00:01:08,919 --> 00:01:12,720 KT: Yeah, we're not here. We're in Abu Dhabi. 8 00:01:13,319 --> 00:01:17,260 Suze: But we're here until we're in Abu Dhabi because we're 9 00:01:17,269 --> 00:01:21,349 Suze: trying to pre-record podcasts for you so that you don't 10 00:01:21,360 --> 00:01:26,190 Suze: miss us. You don't miss a when we are gone. 11 00:01:26,550 --> 00:01:29,319 Suze: All right, Miss Travis, let's get to it because I'm 12 00:01:29,330 --> 00:01:33,680 Suze: looking over there and has a big stack. But let 13 00:01:33,690 --> 00:01:37,099 Suze: me just say for any of you who would like 14 00:01:37,110 --> 00:01:40,410 Suze: to send in a question, you need to keep them short. 15 00:01:40,669 --> 00:01:43,739 Suze: They should be like no more than 100 words. You 16 00:01:43,750 --> 00:01:47,730 Suze: go on beyond that, it's almost impossible for us to 17 00:01:47,739 --> 00:01:50,080 Suze: answer it. But if you would like to write in 18 00:01:50,089 --> 00:01:50,529 Suze: a question 19 00:01:50,620 --> 00:01:55,919 Suze: and send it to ask Suze Suze podcast at gmail.com. 20 00:01:55,970 --> 00:01:59,819 Suze: If KT chooses it, then we will answer it on 21 00:01:59,830 --> 00:02:04,819 Suze: the one and only KT and Suze podcast. 22 00:02:05,930 --> 00:02:09,649 KT: My first question I love, it's from an 11 year 23 00:02:09,679 --> 00:02:14,520 KT: old girl who wants to start investing for her future. 24 00:02:14,929 --> 00:02:18,549 KT: She said, Suze, I really wanna open a brokerage account 25 00:02:18,559 --> 00:02:21,699 KT: so I can make money and use it for my future. 26 00:02:21,720 --> 00:02:25,039 KT: I make $24 a month by doing chores and I 27 00:02:25,050 --> 00:02:29,429 KT: plan to start babysitting soon. In my savings account I 28 00:02:29,440 --> 00:02:34,888 KT: have $4000 but my parents want me to open a 29 00:02:34,899 --> 00:02:37,149 KT: custodial Roth IRA. 30 00:02:37,490 --> 00:02:40,850 KT: I don't wanna open a custodial Roth IRA because I 31 00:02:40,860 --> 00:02:44,309 KT: wanna be able to use the money when I'm younger 32 00:02:44,330 --> 00:02:47,429 KT: and invest in a house. What do you think? 33 00:02:48,589 --> 00:02:52,889 KT: She's 11. I love this question. It's from Hazel Suze. 34 00:02:52,899 --> 00:02:53,889 KT: What should she do? 35 00:02:53,899 --> 00:02:56,809 Suze: Hazel. Hazel Hazel. All right. Listen to me. You're making 36 00:02:56,820 --> 00:03:01,039 Suze: $24 a month. That's $288 a year. Yeah, you could 37 00:03:01,050 --> 00:03:03,779 Suze: put that into a Roth IRA like your parents want 38 00:03:03,788 --> 00:03:07,669 Suze: you to. However, I like your idea. I have to 39 00:03:07,679 --> 00:03:10,990 Suze: tell you I would open up a uniform gift to 40 00:03:11,000 --> 00:03:13,149 Suze: Minors Act account. Your parents are gonna have to do 41 00:03:13,160 --> 00:03:15,250 Suze: that for you as well because you're only 11 42 00:03:15,710 --> 00:03:19,759 Suze: and invest that $24 a month. Open it up at 43 00:03:19,770 --> 00:03:22,630 Suze: a discount brokerage firm like Fidelity or Schwab and buy 44 00:03:22,639 --> 00:03:26,728 Suze: slices of great quality stocks. You can do that or 45 00:03:26,740 --> 00:03:30,649 Suze: great quality exchange traded funds and let that money grow. 46 00:03:31,059 --> 00:03:33,050 Suze: Then when you get older and you can take it 47 00:03:33,059 --> 00:03:36,279 Suze: all out if you want to buy a house, go 48 00:03:36,289 --> 00:03:41,279 Suze: for it. So, all right. I happen to agree with you. 49 00:03:41,800 --> 00:03:44,860 KT: There you go Hazel. My next question is from Maria. I love 50 00:03:44,869 --> 00:03:45,729 KT: this one too. 51 00:03:46,410 --> 00:03:51,220 KT: Is it financially beneficial to get married when both parties 52 00:03:51,229 --> 00:03:55,309 KT: are in the mid to late fifties? One person makes 53 00:03:55,320 --> 00:03:59,740 KT: 90,000 a year while the other makes 200,000. I just 54 00:03:59,750 --> 00:04:03,550 KT: want us to receive all of our Social security benefits 55 00:04:03,690 --> 00:04:07,309 KT: that we are allotted. So I guess I'm asking, will 56 00:04:07,320 --> 00:04:10,399 KT: we receive less or more if married. 57 00:04:10,500 --> 00:04:11,729 Suze: It has nothing to do with... 58 00:04:11,740 --> 00:04:14,270 KT: I was gonna say, Suze and I got married in 59 00:04:14,279 --> 00:04:14,839 KT: our mid fifties. 60 00:04:16,028 --> 00:04:20,678 Suze: It has absolutely nothing to do at all with how much you 61 00:04:20,688 --> 00:04:23,859 Suze: get to get for social security if you are married 62 00:04:23,868 --> 00:04:27,868 Suze: or not. The only way it becomes beneficial is if 63 00:04:27,878 --> 00:04:32,199 Suze: your spouse's social security happens to be greater than your 64 00:04:32,209 --> 00:04:36,128 Suze: own and your spouse dies and you're able to take 65 00:04:36,139 --> 00:04:38,368 Suze: over your spouse's social security 66 00:04:38,649 --> 00:04:41,988 Suze: as if it were yours and vice versa. So there's 67 00:04:42,000 --> 00:04:46,630 Suze: absolutely some benefits in getting married. But what you really 68 00:04:46,640 --> 00:04:50,950 Suze: have to think about is all the other things that 69 00:04:50,959 --> 00:04:54,589 Suze: it means to get married. There's no estate tax for 70 00:04:54,600 --> 00:04:57,469 Suze: you to inherit any kind of money. There's all kinds 71 00:04:57,480 --> 00:04:58,339 Suze: of benefits... 72 00:04:59,890 --> 00:05:01,179 KT: You get to have an anniversary every year. 73 00:05:02,488 --> 00:05:07,899 Suze: It's like it's called, it's called Love In Love. So 74 00:05:07,910 --> 00:05:11,779 Suze: I wouldn't be worried about your social security. I would 75 00:05:11,790 --> 00:05:14,510 Suze: want you to know that you liked and loved whoever 76 00:05:14,519 --> 00:05:16,679 Suze: this person was and wanted to spend the rest of 77 00:05:16,690 --> 00:05:20,600 Suze: your life with them. Ok. Otherwise don't get married. Go on. 78 00:05:22,130 --> 00:05:24,320 Suze: You picked some interesting questions. 79 00:05:24,329 --> 00:05:29,190 KT: The next question is from Tania. Can I catch up with my Roth IRA? Hi, 80 00:05:29,200 --> 00:05:32,779 KT: Suze and KT Love listening to both of you on 81 00:05:32,790 --> 00:05:34,820 KT: the podcast. Here's my question. 82 00:05:35,140 --> 00:05:39,320 KT: My husband lost his job last December if it takes 83 00:05:39,329 --> 00:05:41,880 KT: too long for him to find a job and we 84 00:05:41,890 --> 00:05:45,118 KT: end up running out of our emergency fund. Would we 85 00:05:45,130 --> 00:05:47,909 KT: be able to take out from our Roth IRA, which 86 00:05:47,920 --> 00:05:52,440 KT: we fully funded for several years now. My employer offers 87 00:05:52,450 --> 00:05:57,079 KT: a voluntary Roth 403b. Once we're back on our feet, 88 00:05:57,119 --> 00:06:00,109 KT: can we replace what we took out of the Roth 89 00:06:00,119 --> 00:06:02,890 KT: IRA into my Roth 403b? So that's the question. 90 00:06:05,540 --> 00:06:10,769 Suze: All right. And there's the answer. Tania listen. You can 91 00:06:10,779 --> 00:06:14,428 Suze: take out any money that you originally put into your 92 00:06:14,440 --> 00:06:18,820 Suze: Roth IRA. Those are known as your original contributions. You 93 00:06:18,829 --> 00:06:24,769 Suze: can take those out without any taxes or penalties whatsoever, 94 00:06:24,779 --> 00:06:28,130 Suze: regardless how long it has been in there. All right? 95 00:06:28,809 --> 00:06:32,890 Suze: Iit's just the earnings on those original contributions that you 96 00:06:32,899 --> 00:06:36,779 Suze: can't take out until you're 59 and a half. And the account's been 97 00:06:36,790 --> 00:06:40,130 Suze: open for five years. All Right. So you take out 98 00:06:40,140 --> 00:06:46,089 Suze: $10,000 chances are, however, if you take out $10,000 it's 99 00:06:46,100 --> 00:06:50,309 Suze: because you need to spend that $10,000 you need to 100 00:06:50,320 --> 00:06:54,859 Suze: live on that $10,000. Later on in life. Forget that 101 00:06:54,869 --> 00:06:56,750 Suze: $10,000 now because it's gone. 102 00:06:57,049 --> 00:06:59,309 Suze: If you now have other money and you want to 103 00:06:59,320 --> 00:07:04,859 Suze: contribute to the Roth 403b at your employers. Ok. But 104 00:07:04,869 --> 00:07:08,868 Suze: I got news for you ain't gonna be with that $10,000. 105 00:07:08,880 --> 00:07:11,910 Suze: One has nothing to do with the other. 106 00:07:12,519 --> 00:07:16,630 KT: Ok. Next question, Suze is from Maria. Hi, Suze. And 107 00:07:16,640 --> 00:07:17,079 KT: KT 108 00:07:17,089 --> 00:07:19,429 Suze: Wait, what does that, what does that make you think of? 109 00:07:19,910 --> 00:07:24,790 Suze: (Suze and KT sing a bit of "Maria" from West Side Story) I knew it. I knew it. You see how 110 00:07:24,799 --> 00:07:26,429 Suze: well we are? Ok? 111 00:07:27,709 --> 00:07:29,429 KT: We can both sing together too. 112 00:07:29,959 --> 00:07:32,540 Suze: Hopefully nobody can hear it when we do. 113 00:07:33,380 --> 00:07:35,359 KT: Oh, I was telling some, I, I have to go 114 00:07:35,369 --> 00:07:38,420 KT: off track. I was telling someone the other day, um, 115 00:07:38,429 --> 00:07:42,239 KT: about you and that you have won pretty much every 116 00:07:42,250 --> 00:07:46,600 KT: possible award out there except we can never call you 117 00:07:46,609 --> 00:07:49,109 KT: an ECOT. Is that what it's called ECOT? And they 118 00:07:49,119 --> 00:07:52,720 KT: said why? And I said she's never gonna get the grammy. She can't sing. 119 00:07:54,929 --> 00:07:55,208 Suze: Its EGOT. 120 00:07:55,640 --> 00:07:59,769 KT: EGOT. She can't sing. All right, ready. This is from Maria. Hi, 121 00:07:59,779 --> 00:08:03,720 KT: Suze and KT help. She said help. I'm so confused 122 00:08:03,730 --> 00:08:04,649 KT: about my trust. 123 00:08:04,679 --> 00:08:06,399 Suze: Does that mean you think one day I could get 124 00:08:06,410 --> 00:08:07,109 Suze: an Oscar? 125 00:08:08,160 --> 00:08:09,070 KT: Possibly. 126 00:08:09,339 --> 00:08:10,309 Suze: A Tony? 127 00:08:11,220 --> 00:08:11,950 KT: For sure. 128 00:08:12,000 --> 00:08:13,630 Suze: All I have is an Emmy. 129 00:08:13,929 --> 00:08:16,549 KT: And you have, you have an Emmy. You have two Emmys. 130 00:08:16,829 --> 00:08:18,570 Suze: Well, that's it. So you can get up there with 131 00:08:18,730 --> 00:08:19,829 Suze: one out of three. 132 00:08:19,880 --> 00:08:22,429 KT: You could do an Oscar, do a cameo role. 133 00:08:22,589 --> 00:08:25,630 Suze: And win an Oscar? Alright now, KT. 134 00:08:27,859 --> 00:08:30,910 KT: Maria says help. I'm so confused about trust, 135 00:08:31,239 --> 00:08:33,579 KT: how to find a trust where to go to set 136 00:08:33,590 --> 00:08:36,859 KT: up a trust and what exactly I can put into 137 00:08:36,869 --> 00:08:40,520 KT: a trust. Will you please ready for this? Will you 138 00:08:40,530 --> 00:08:44,500 KT: please consider doing a Suze school on this topic? 139 00:08:45,109 --> 00:08:48,330 KT: So she said, since listening to you, I have saved 140 00:08:48,340 --> 00:08:54,238 KT: over $15,000 in my Alliant savings over the past year 141 00:08:54,250 --> 00:08:57,809 KT: and a half. Hear that everybody year and a half. 142 00:08:57,820 --> 00:09:00,369 KT: And then she said, I look forward to every Thursday 143 00:09:00,380 --> 00:09:04,059 KT: and Sunday. Thank you ladies. Can you enlighten Maria about 144 00:09:04,070 --> 00:09:06,090 KT: her trust and why everyone needs one. 145 00:09:06,099 --> 00:09:09,609 Suze: Maria go to the women and Money community app 146 00:09:10,090 --> 00:09:12,780 Suze: and you'll see on one of the little squares that 147 00:09:12,789 --> 00:09:17,429 Suze: comes up, you can search the podcast for past content, 148 00:09:17,440 --> 00:09:20,219 Suze: put in living revocable trust and hopefully, 149 00:09:20,659 --> 00:09:24,510 Suze: um articles or blogs or podcasts will come up on 150 00:09:24,520 --> 00:09:28,609 Suze: that topic. I have done many, many, many. If you 151 00:09:28,619 --> 00:09:33,500 Suze: happen to have my ultimate retirement guide for 50 plus, 152 00:09:33,710 --> 00:09:38,289 Suze: I do an extraordinary job explaining them in that book 153 00:09:38,299 --> 00:09:41,369 Suze: as well as far as almost every book I've ever 154 00:09:41,460 --> 00:09:45,460 Suze: written. I have delved in to how a living revocable 155 00:09:45,469 --> 00:09:49,169 Suze: trust works, how you fund it and all of those things. 156 00:09:50,010 --> 00:09:54,039 KT: Suze. Next questions from Cherry. Hi, Suze and KT. I 157 00:09:54,049 --> 00:09:57,880 KT: love your podcast. My question is in regards to leaving 158 00:09:57,890 --> 00:10:02,239 KT: your 401k employer's plan after you retire. 159 00:10:02,770 --> 00:10:05,880 KT: I've been retired for four years and I've not done 160 00:10:05,890 --> 00:10:09,669 KT: a roll over to an IRA for a couple of reasons. One, 161 00:10:09,679 --> 00:10:14,549 KT: I don't feel comfortable with financial planners. It's a good reason. Two, 162 00:10:14,559 --> 00:10:17,840 KT: low administration fees. I've heard that this is not the 163 00:10:17,849 --> 00:10:23,190 KT: most effective way to maintain my retirement savings. Please advise. 164 00:10:23,200 --> 00:10:26,989 KT: So here's what I've always said. What is the goal of, 165 00:10:27,075 --> 00:10:29,494 Suze: of money. Drum roll KT, what is it? 166 00:10:29,505 --> 00:10:30,934 KT: To be secure. 167 00:10:30,945 --> 00:10:35,434 Suze: That's right, girlfriend. So Cherry, listen, if you feel comfortable 168 00:10:35,484 --> 00:10:40,335 Suze: with your 401k employer's plan, stay there. What do you care? 169 00:10:40,434 --> 00:10:44,314 Suze: A lot of people do an IRA rollover to diversify 170 00:10:44,325 --> 00:10:47,335 Suze: their investments, they want more than maybe the few mutual 171 00:10:47,344 --> 00:10:51,233 Suze: funds that your employer's plan happens to offer. 172 00:10:51,590 --> 00:10:54,289 Suze: However, if you're comfortable there and that's where you wanna 173 00:10:54,299 --> 00:10:57,330 Suze: keep it. I don't have a problem with that. All right, KT. 174 00:10:57,820 --> 00:11:02,450 KT: Ok, Suze, I have a question here about divorce. All right. 175 00:11:02,460 --> 00:11:07,119 KT: I'm getting divorced in our retirement assets of 401k. Roth 176 00:11:07,130 --> 00:11:12,239 KT: IRA are getting divided 50-50. I'm gonna retire in two 177 00:11:12,250 --> 00:11:16,630 KT: years and we'll use social security and my retirement accounts. 178 00:11:16,840 --> 00:11:19,690 KT: How is all of this roll over transfer 179 00:11:19,869 --> 00:11:24,359 KT: conversion different for me?. I will get social security through 180 00:11:24,369 --> 00:11:28,010 KT: my husband's account, he had a better income and we 181 00:11:28,020 --> 00:11:30,049 KT: were married over 10 years. 182 00:11:30,059 --> 00:11:33,330 Suze: So in answering this, you know, we never use people's 183 00:11:33,340 --> 00:11:36,719 Suze: names who are going through a divorce until it's final 184 00:11:36,900 --> 00:11:40,340 Suze: because you just never know who's listening to this podcast, 185 00:11:40,349 --> 00:11:41,978 Suze: but you have nothing to worry 186 00:11:42,059 --> 00:11:47,150 Suze: about. It's transfer conversion roll over. That doesn't really matter here. 187 00:11:47,159 --> 00:11:51,390 Suze: What's going to happen is half of his assets are 188 00:11:51,400 --> 00:11:55,799 Suze: going to end up in your retirement account with your 189 00:11:55,809 --> 00:11:59,789 Suze: individual name on it and then it will be yours. 190 00:11:59,799 --> 00:12:04,199 Suze: Just that simple. So don't worry on any level. All right, KT. 191 00:12:04,489 --> 00:12:06,789 KT: All right, this is from Lisa. 192 00:12:07,760 --> 00:12:11,179 KT: Hi, Suze. I'm 55 years old. My home is paid 193 00:12:11,190 --> 00:12:16,900 KT: for and is valued between 400 to 430,000. I have 194 00:12:16,909 --> 00:12:21,059 KT: zero debt except for two vehicle loans that are for 195 00:12:21,070 --> 00:12:25,299 KT: my company, vehicles and my company makes the payments each month. 196 00:12:25,559 --> 00:12:28,640 KT: I am a small business owner. I have a very 197 00:12:28,650 --> 00:12:33,380 KT: small traditional IRA valued at about 25,000 198 00:12:33,659 --> 00:12:37,709 KT: and I have a savings account for emergencies also valued 199 00:12:37,719 --> 00:12:42,419 KT: at about 25,000. My question is, should I tap into 200 00:12:42,429 --> 00:12:47,289 KT: my home equity to make an investment in another property 201 00:12:47,340 --> 00:12:51,459 KT: or any other kind of investment or should I sit 202 00:12:51,469 --> 00:12:52,289 KT: on my property 203 00:12:52,614 --> 00:12:57,484 KT: and continue to have no mortgage payments to make? Now, 204 00:12:57,494 --> 00:13:01,005 KT: here's something interesting. She said, I know I need to 205 00:13:01,015 --> 00:13:03,934 KT: be contributing more to the IRA each month. And I 206 00:13:03,945 --> 00:13:08,905 KT: also need to look into long term care insurance. So 207 00:13:08,914 --> 00:13:11,005 KT: now remember she's only 55. 208 00:13:12,710 --> 00:13:16,090 Suze: I wish you could see my face right now because 209 00:13:16,099 --> 00:13:18,929 Suze: my face would tell you, oh, you are so denied. 210 00:13:18,940 --> 00:13:23,799 Suze: Just no way. Listen, when you take out a home 211 00:13:23,809 --> 00:13:26,090 Suze: equity line of credit, you have to look at what 212 00:13:26,099 --> 00:13:29,729 Suze: the current interest rates are on home equity lines of 213 00:13:29,739 --> 00:13:33,689 Suze: credit and they are very, very high. That's number one, 214 00:13:34,020 --> 00:13:37,710 Suze: you have to look at the price of real estate today, 215 00:13:37,919 --> 00:13:41,609 Suze: the price of the interest rate on a mortgage today. 216 00:13:41,969 --> 00:13:44,900 Suze: And the main thing you have to look at is 217 00:13:44,909 --> 00:13:51,130 Suze: your emergency fund. You have $25,000 in an emergency fund. 218 00:13:51,349 --> 00:13:53,489 Suze: And I have a feeling that if you were to 219 00:13:53,500 --> 00:13:58,020 Suze: look at everything that is not eight months of expenses 220 00:13:58,030 --> 00:14:01,570 Suze: for you to be safe and sound. So no, you 221 00:14:01,580 --> 00:14:04,819 Suze: are not to do this. You are to contribute more 222 00:14:04,830 --> 00:14:07,659 Suze: to your retirement accounts. You are to make sure that 223 00:14:07,669 --> 00:14:10,559 Suze: your cars, there's no debt on it. You are to 224 00:14:10,570 --> 00:14:10,979 Suze: make sure 225 00:14:11,465 --> 00:14:14,974 Suze: that you have long term care insurance, take care of 226 00:14:14,984 --> 00:14:20,065 Suze: your tomorrows today by investing in yourself people first then money, 227 00:14:20,075 --> 00:14:26,784 Suze: then things absolutely not under any circumstance denied, denied. 228 00:14:27,025 --> 00:14:30,195 KT: This is from Kathy. This is very dear to my heart, 229 00:14:30,205 --> 00:14:33,525 KT: this one. Dear Suze and KT thank you for sharing 230 00:14:33,534 --> 00:14:37,414 KT: the recent emails related to caring for ill family members, 231 00:14:37,679 --> 00:14:40,929 KT: my twin and I are helping out our out of 232 00:14:40,940 --> 00:14:45,200 KT: state sister serving as her medical and financial power of 233 00:14:45,210 --> 00:14:49,679 KT: attorney respectively. She's taken a turn for the worse and 234 00:14:49,690 --> 00:14:53,450 KT: has really bad cancer. So we're so sorry for your 235 00:14:53,460 --> 00:14:54,530 KT: sister's illness. 236 00:14:54,989 --> 00:14:59,390 KT: My sister suggested adding me to her bank accounts to 237 00:14:59,400 --> 00:15:03,450 KT: assist with paying her bills. My question is if my 238 00:15:03,460 --> 00:15:08,690 KT: sister dies, am I liable for her unpaid expenses at death? 239 00:15:09,099 --> 00:15:13,239 KT: Her medical and living expenses are greater than her social 240 00:15:13,250 --> 00:15:14,719 KT: security income. 241 00:15:14,729 --> 00:15:17,880 Suze: Yeah. No, you will not be responsible for any debt 242 00:15:17,890 --> 00:15:22,270 Suze: that is in her individual name. That debt will essentially 243 00:15:22,280 --> 00:15:27,380 Suze: either die with her or they will come back against 244 00:15:27,390 --> 00:15:30,219 Suze: the state and ask for money and the estate will 245 00:15:30,229 --> 00:15:31,510 Suze: have to pay for it. 246 00:15:31,940 --> 00:15:34,890 Suze: But let's say your sister had absolutely no money at 247 00:15:34,900 --> 00:15:37,969 Suze: all just enough to pay her monthly bills from her 248 00:15:37,979 --> 00:15:41,780 Suze: social security, they won't be able to get anything. But 249 00:15:41,789 --> 00:15:46,090 Suze: if your sister dies, you will not be liable for 250 00:15:46,099 --> 00:15:51,799 Suze: her unpaid expenses at death. But her estate will be. 251 00:15:52,150 --> 00:15:56,590 Suze: But that isn't you personally. So whatever money she has 252 00:15:56,599 --> 00:16:00,200 Suze: in her name or in the account 253 00:16:00,700 --> 00:16:04,400 Suze: that isn't your liability. It's cash in that account may 254 00:16:04,409 --> 00:16:06,239 Suze: have to go to some of her debt. 255 00:16:06,409 --> 00:16:09,380 KT: So it's ok that she puts her name. The sister 256 00:16:09,390 --> 00:16:10,880 KT: puts her name on the bank account. 257 00:16:11,020 --> 00:16:14,200 Suze: Yes, because then it will make it easy for her truthfully 258 00:16:14,409 --> 00:16:17,260 Suze: to use the money to access to access the money 259 00:16:17,270 --> 00:16:18,919 Suze: and pay her bills and things like that. 260 00:16:19,020 --> 00:16:23,320 KT: There you go. So Carol is the next question we have. 261 00:16:23,460 --> 00:16:26,260 KT: And it said dear Suze and KT, thank you for all 262 00:16:26,270 --> 00:16:29,039 KT: you do for so many. You're welcome, Carol. 263 00:16:29,719 --> 00:16:32,000 KT: And she said I have a sister in law who 264 00:16:32,010 --> 00:16:37,219 KT: is $12,000 in debt on five credit cards. She's 82 265 00:16:37,229 --> 00:16:40,780 KT: years old and in very good health. Wait, this gets 266 00:16:40,789 --> 00:16:44,890 KT: really better. She even teaches yoga classes to try to 267 00:16:44,900 --> 00:16:49,260 KT: make ends meet earning about $600 a month. Her social 268 00:16:49,270 --> 00:16:54,150 KT: security and small pension yield is 1900 a month. Her 269 00:16:54,159 --> 00:16:59,340 KT: rent is $1000 a month and her utilities are around 150. 270 00:16:59,760 --> 00:17:02,419 KT: She has some car insurance payments but the car is 271 00:17:02,429 --> 00:17:05,939 KT: paid off and getting old and needs repairs on occasion. 272 00:17:06,109 --> 00:17:10,150 KT: 82 years old ready. She's moved her credit cards from 273 00:17:10,160 --> 00:17:12,859 KT: one to the other time and time again to stretch 274 00:17:12,869 --> 00:17:16,579 KT: out the zero interest. But now I'm interested in getting 275 00:17:16,589 --> 00:17:20,380 KT: all of those cards paid off and ensuring she does 276 00:17:20,390 --> 00:17:23,300 KT: not add any more debt to the credit cards. 277 00:17:23,848 --> 00:17:27,229 KT: The question is, am I able to legally prevent her 278 00:17:27,239 --> 00:17:29,058 KT: from opening other credit cards? 279 00:17:29,458 --> 00:17:29,698 Suze: No you are not. 280 00:17:29,718 --> 00:17:33,269 KT: B) do you think I have a chance of negotiating 281 00:17:33,279 --> 00:17:37,629 KT: the balances down with a credit card company or should 282 00:17:37,638 --> 00:17:42,078 KT: both of us go to consumer credit counseling type of 283 00:17:42,088 --> 00:17:44,348 KT: an agency? Which one would you recommend? 284 00:17:44,359 --> 00:17:46,548 Suze: So let me just tell you about your little sister 285 00:17:46,568 --> 00:17:47,149 Suze: in law. 286 00:17:47,640 --> 00:17:53,109 Suze: She teaches yoga classes at 82. I can't even take 287 00:17:53,119 --> 00:17:57,540 Suze: a yoga class, let alone teach a yoga class. But 288 00:17:57,599 --> 00:18:02,300 Suze: for her to move her credit cards from one to 289 00:18:02,310 --> 00:18:07,349 Suze: another at a 0% interest rate, that means your sister 290 00:18:07,449 --> 00:18:10,969 Suze: in law has a high FICO score 291 00:18:11,810 --> 00:18:17,040 Suze: and therefore she's doing ok. She hasn't gotten herself in 292 00:18:17,050 --> 00:18:20,160 Suze: to credit card trouble in terms of being late with 293 00:18:20,170 --> 00:18:24,899 Suze: her payments. If you are gonna negotiate the balances down 294 00:18:24,910 --> 00:18:28,439 Suze: with the credit card companies, they're only going to do 295 00:18:28,449 --> 00:18:32,260 Suze: that if she's been missing payments and has a poor 296 00:18:32,510 --> 00:18:35,569 Suze: FICO score, she's delinquent and she's delinquent and you don't 297 00:18:35,579 --> 00:18:38,229 Suze: want that for her. So, no, you can't do that. 298 00:18:38,400 --> 00:18:40,760 Suze: As I just said a few seconds ago. No, you're 299 00:18:40,770 --> 00:18:41,429 Suze: not able 300 00:18:41,540 --> 00:18:45,089 Suze: to legally prevent her from opening other credit cards, nor 301 00:18:45,099 --> 00:18:49,119 Suze: should you because she's doing pretty good transferring them from 302 00:18:49,130 --> 00:18:53,109 Suze: one 0% to another. She's doing great that way. And 303 00:18:53,119 --> 00:18:56,599 Suze: should she go through consumer credit counseling? I don't think 304 00:18:56,609 --> 00:18:59,079 Suze: so because you're gonna have to pay them 10 or 305 00:18:59,089 --> 00:19:02,599 Suze: $15 a month to do what? To get her credit 306 00:19:02,609 --> 00:19:06,550 Suze: card interest rate down to zero, which she's already done. So, no, 307 00:19:06,560 --> 00:19:10,550 Suze: that's not gonna help. So, truthfully, my dear Carol, 308 00:19:11,010 --> 00:19:13,780 Suze: you really need to let your sister in law continue 309 00:19:13,790 --> 00:19:18,010 Suze: to do exactly what she's doing. She's obviously has a 310 00:19:18,020 --> 00:19:21,770 Suze: body that's very flexible and can stretch and she's being 311 00:19:21,780 --> 00:19:25,329 Suze: very flexible in stretching the money that she has to 312 00:19:25,339 --> 00:19:29,479 Suze: make it go even further than you have any idea. So, 313 00:19:29,489 --> 00:19:31,679 Suze: for now, if it were me, 314 00:19:31,989 --> 00:19:33,150 Suze: I would leave it alone. 315 00:19:33,160 --> 00:19:37,139 KT: Next question, Suze is from Mary Ellen. My husband wants 316 00:19:37,150 --> 00:19:41,829 KT: to open a second. Roth IRA. He's 74 and I 317 00:19:41,839 --> 00:19:46,530 KT: am 65. We already have separate ones and we both 318 00:19:46,540 --> 00:19:51,310 KT: have earned income besides our social security. I'm leaning against 319 00:19:51,319 --> 00:19:54,430 KT: this because we would have to wait five years before 320 00:19:54,439 --> 00:19:55,449 KT: we can withdraw. 321 00:19:56,079 --> 00:20:00,079 KT: So, basically, she's asking what are the pros and cons. 322 00:20:00,599 --> 00:20:04,540 Suze: There's all kinds of pros. Are you kidding me? First of all, 323 00:20:04,550 --> 00:20:07,060 Suze: you need to understand that any money you were originally 324 00:20:07,069 --> 00:20:10,708 Suze: put into your Roth IRA, you can take out at 325 00:20:10,719 --> 00:20:11,819 Suze: any time you 326 00:20:11,915 --> 00:20:16,175 Suze: want to, regardless of how old you are or how 327 00:20:16,185 --> 00:20:19,794 Suze: long it has been in there. That's not a problem. 328 00:20:19,864 --> 00:20:22,535 Suze: So if you combine that with your other Roth IRAs, 329 00:20:22,614 --> 00:20:26,103 Suze: I'm sure you'll have enough money. It's only the earnings 330 00:20:26,114 --> 00:20:31,334 Suze: that you cannot touch for at least five years. But 331 00:20:31,344 --> 00:20:34,094 Suze: because you're already over 59 and a half, 332 00:20:34,660 --> 00:20:37,899 Suze: then there's no 10% penalty. So it doesn't even matter 333 00:20:37,910 --> 00:20:41,160 Suze: if you touch the earnings, you're not gonna be penalized 10%. 334 00:20:41,329 --> 00:20:44,810 Suze: You're only gonna have to pay ordinary income on it anyway. 335 00:20:44,900 --> 00:20:48,619 Suze: Which would be true if you took this money, you 336 00:20:48,630 --> 00:20:51,829 Suze: invested it, let's say, in a CD. And now you're 337 00:20:51,839 --> 00:20:55,069 Suze: getting interest, you'd be paying ordinary income tax on that 338 00:20:55,079 --> 00:21:01,040 Suze: interest So, in my opinion, there are no cons whatsoever. 339 00:21:01,280 --> 00:21:05,159 Suze: The pros also are if you don't need to access 340 00:21:05,170 --> 00:21:08,270 Suze: this money and now it grows and grows and grows 341 00:21:08,729 --> 00:21:11,339 Suze: and you die and it goes to your beneficiaries, it's 342 00:21:11,349 --> 00:21:19,219 Suze: all tax free. So in this case, listen to your husband. KT, 343 00:21:19,229 --> 00:21:21,699 Suze: do you realize what you did in this podcast? 344 00:21:22,589 --> 00:21:25,500 KT: No. What did, what did you do? Did I do 345 00:21:25,510 --> 00:21:26,290 KT: something wrong? 346 00:21:26,300 --> 00:21:32,239 Suze: No. Every single question that you asked 347 00:21:32,689 --> 00:21:37,520 Suze: was what? From a woman? That's great. Did you do 348 00:21:37,530 --> 00:21:39,310 Suze: that unconsciously or on purpose? 349 00:21:39,599 --> 00:21:41,069 KT: Just unconsciously. I didn't think about it. 350 00:21:43,069 --> 00:21:45,339 Suze: You didnt, did you? All right. And I was just 351 00:21:45,349 --> 00:21:49,359 Suze: sitting here everybody going, another woman, another woman. Because there 352 00:21:49,369 --> 00:21:52,380 Suze: are sometimes when she chooses a lot of men and 353 00:21:52,390 --> 00:21:54,609 Suze: you write me and you go, what about the women? 354 00:21:54,810 --> 00:21:57,739 Suze: This is a Woman and Money podcast. And Everyone smart enough 355 00:21:57,750 --> 00:22:00,270 Suze: to listen. So don't worry about it. 356 00:22:00,729 --> 00:22:02,550 Suze: KT, are you ready for your quizzy? 357 00:22:03,250 --> 00:22:06,228 KT: I'm always ready for a quizzy. Is everyone else ready? 358 00:22:06,459 --> 00:22:08,280 KT: That's the question you wanna ask. 359 00:22:08,430 --> 00:22:11,699 Suze: This is going to be a little bit different of 360 00:22:11,709 --> 00:22:14,729 Suze: a quizzy for you. So I want you to answer 361 00:22:14,739 --> 00:22:14,969 Suze: it 362 00:22:15,959 --> 00:22:20,129 Suze: in the best way and actually shortest way, you know, possible. 363 00:22:20,810 --> 00:22:24,510 Suze: Hi, Suze. I have been an avid listener of your 364 00:22:24,520 --> 00:22:28,770 Suze: podcast for two years now and I just love the 365 00:22:28,780 --> 00:22:31,349 Suze: KT and Suze podcast. 366 00:22:32,540 --> 00:22:37,319 Suze: Could you have a KT interview? We know about you, Suze. 367 00:22:37,329 --> 00:22:41,619 Suze: Your rags to riches story. But what about KT? She 368 00:22:41,630 --> 00:22:45,849 Suze: is such a sweetheart, very caring and will giggle at 369 00:22:45,859 --> 00:22:49,180 Suze: the drop of a hat. She is also so caring 370 00:22:49,189 --> 00:22:51,800 Suze: and will also cry at the drop of a hat. 371 00:22:52,270 --> 00:22:55,160 Suze: All we know is that KT has a twin sister 372 00:22:55,170 --> 00:22:59,129 Suze: named Lynn. I mean, what does KT stand for? What 373 00:22:59,140 --> 00:23:01,520 Suze: is KTs background? 374 00:23:02,040 --> 00:23:07,909 Suze: So that is your quizzy, this one man on this 375 00:23:07,920 --> 00:23:12,589 Suze: podcast by the name of Dennis. Dennis. Dennis. 376 00:23:13,650 --> 00:23:16,410 KT: Ok. Let me give everyone a thirty second commercial of who 377 00:23:16,420 --> 00:23:19,900 KT: I am. I'm not shy about this at all. KT 378 00:23:19,910 --> 00:23:23,260 KT: stands for Kathy Travis. I was born and raised in 379 00:23:23,270 --> 00:23:26,349 KT: New Jersey, right on the ocean on the shore with 380 00:23:26,359 --> 00:23:29,760 KT: a fabulous Italian mother and father and I have five 381 00:23:29,770 --> 00:23:30,459 KT: siblings 382 00:23:30,800 --> 00:23:34,660 KT: and with myself is six kids and my twin sister 383 00:23:34,670 --> 00:23:37,179 KT: is the eldest. She's three minutes older than me. 384 00:23:37,189 --> 00:23:38,939 Suze: How many bathrooms were in your house? 385 00:23:39,270 --> 00:23:40,459 KT: One and a half. 386 00:23:40,760 --> 00:23:45,879 Suze: So there were eight people in a house with one and a half bathrooms. 387 00:23:45,890 --> 00:23:47,939 KT: You don't even wanna know those stories. But, 388 00:23:49,520 --> 00:23:53,149 KT: but anyway, shortly thereafter I went, was fortunate enough to 389 00:23:53,160 --> 00:23:55,680 KT: go to school and then I made my way to 390 00:23:55,689 --> 00:23:59,280 KT: Hong Kong to visit a friend and I fell in 391 00:23:59,290 --> 00:24:01,349 KT: love with the far east so much so... 392 00:24:02,209 --> 00:24:02,839 Suze: How old were you? 393 00:24:02,849 --> 00:24:05,500 KT: Um 27... about 27. 394 00:24:08,250 --> 00:24:10,339 Suze: Before 27 KT, tell everybody what you did. 395 00:24:11,290 --> 00:24:15,198 KT: In New York? Ok. So I left college, left school, 396 00:24:15,209 --> 00:24:16,339 KT: went right to New York. 397 00:24:16,760 --> 00:24:17,510 Suze: What school did you go to? 398 00:24:17,699 --> 00:24:18,839 KT: Rhode Island School of Design. 399 00:24:21,000 --> 00:24:21,150 Suze: What was your degree in? 400 00:24:21,449 --> 00:24:24,770 KT: It was in illustration at the time. So I graduated 401 00:24:24,780 --> 00:24:29,239 KT: in '74 but I graduated earlier than my class by 402 00:24:29,250 --> 00:24:31,239 KT: a semester. So I got to New York 403 00:24:31,319 --> 00:24:35,839 KT: in January. Everyone else got there later in the summer. 404 00:24:35,959 --> 00:24:38,380 KT: So I go to New York. I start working and 405 00:24:38,390 --> 00:24:42,119 KT: I eventually opened a really great little hot shop and 406 00:24:42,130 --> 00:24:46,489 KT: had an advertising company that was fabulous and got involved 407 00:24:46,500 --> 00:24:48,709 KT: with fashion and all kinds of. 408 00:24:48,790 --> 00:24:49,699 Suze: How old were you now? 409 00:24:52,400 --> 00:24:56,579 KT: I'm 21... So I had a, a very, very um interesting and 410 00:24:56,589 --> 00:25:01,369 KT: very exciting beginning in New York City and was friends 411 00:25:01,380 --> 00:25:05,030 KT: with people of the likes of Andy Warhol and, you know, 412 00:25:05,040 --> 00:25:08,560 KT: quite a few very famous fashion designers. I worked for 413 00:25:08,569 --> 00:25:11,780 KT: Liz Claiborne in the very early days and lots of, 414 00:25:11,790 --> 00:25:14,520 KT: you know, Ralph Lauren people that I knew... 415 00:25:14,530 --> 00:25:16,619 Suze: And did you do studio 54? 416 00:25:17,510 --> 00:25:18,500 KT: Yes, I was hot. 417 00:25:19,959 --> 00:25:23,180 KT: No, I had a very, very exciting New York life. 418 00:25:23,349 --> 00:25:26,479 KT: So one thing leads to another. I then go to 419 00:25:26,489 --> 00:25:29,280 KT: Hong Kong to visit a friend and end up making 420 00:25:29,290 --> 00:25:34,619 KT: six trips in 1980 back and forth to Hong Kong. 421 00:25:34,989 --> 00:25:38,989 KT: And eventually I was in love and eventually I got 422 00:25:39,000 --> 00:25:43,670 KT: a job with Ogilvy, Ogilvy & Mather advertising. But my job was 423 00:25:43,680 --> 00:25:46,290 KT: a start up. It was a start up and I 424 00:25:46,300 --> 00:25:47,379 KT: was hired 425 00:25:47,520 --> 00:25:51,599 KT: and given a very small amount of money, 1200 square 426 00:25:51,609 --> 00:25:54,560 KT: feet and a secretary by the name of Kelly Chua. 427 00:25:55,329 --> 00:25:58,829 KT: And I started that business and grew it to be 428 00:25:58,839 --> 00:26:04,020 KT: a rather large multimillion dollar agency for Ogilvy. But it 429 00:26:04,030 --> 00:26:09,020 KT: was a special agency. We did brand development, brand management. 430 00:26:09,189 --> 00:26:14,050 KT: We were the first computerized design firm in the far east. 431 00:26:14,229 --> 00:26:14,939 KT: I then grew that. 432 00:26:15,849 --> 00:26:17,699 Suze: What was your position there? 433 00:26:17,709 --> 00:26:18,819 KT: I was the president. 434 00:26:19,180 --> 00:26:22,040 Suze: Uh huh. So, did you hear that everybody of one 435 00:26:22,050 --> 00:26:26,188 Suze: of the fifth, five divisions at that time, only women, 436 00:26:26,199 --> 00:26:27,420 Suze: only woman... 437 00:26:27,719 --> 00:26:32,229 KT: Five companies under Ogilvy's umbrella. And I was the only woman, 438 00:26:32,239 --> 00:26:34,199 KT: the youngest president of them. 439 00:26:34,209 --> 00:26:35,739 Suze: And the most profitable. 440 00:26:35,750 --> 00:26:38,829 KT: They called me the cash cow. I didn't know what 441 00:26:38,839 --> 00:26:40,650 KT: that meant but everyone was, you know, Britsh, 442 00:26:41,010 --> 00:26:44,968 KT: all my other bosses were British. Oh, she's a cash cow. 443 00:26:45,170 --> 00:26:47,479 KT: And I was always wondering what did that mean? And 444 00:26:47,489 --> 00:26:50,989 KT: it meant that I was the most profitable for the 445 00:26:51,000 --> 00:26:54,030 KT: investment or for the size of the company than all 446 00:26:54,040 --> 00:26:57,739 KT: of the other four. In any event, what I really 447 00:26:57,750 --> 00:27:01,189 KT: love about my story in my 20 years in the 448 00:27:01,199 --> 00:27:04,639 KT: Far East is that I opened seven more offices in 449 00:27:04,650 --> 00:27:06,359 KT: seven countries and 450 00:27:06,650 --> 00:27:11,750 KT: had the most incredible portfolio of clients in the world. 451 00:27:12,089 --> 00:27:15,810 KT: I worked with very, very high fashion. I worked when 452 00:27:15,819 --> 00:27:21,069 KT: I say high fashion, all of the couture designers from Europe, Japan, 453 00:27:21,079 --> 00:27:24,310 KT: even America - Donna Karen. We opened her first store. 454 00:27:24,699 --> 00:27:28,989 KT: I worked with Joyce Ma, Joyce boutiques, which was unbelievable. 455 00:27:29,300 --> 00:27:32,800 Suze: Who brought Every designer to the far east. 456 00:27:32,810 --> 00:27:37,040 KT: I worked with all of the five star hotels and properties. 457 00:27:37,050 --> 00:27:40,270 KT: I was able to open for Eric Hilton, the first 458 00:27:40,280 --> 00:27:45,430 KT: Conrad in the world in Hong Kong. I opened for 459 00:27:45,439 --> 00:27:49,750 KT: Bill Marriott, the first uh Marriott hotel that was a 460 00:27:49,760 --> 00:27:52,319 KT: five star in the Ritz Carlton and everything else that 461 00:27:52,329 --> 00:27:53,050 KT: he bought. 462 00:27:53,359 --> 00:27:55,319 KT: And I had the time of my life and I 463 00:27:55,329 --> 00:27:59,819 KT: opened for the Sheraton Group, the first hotel in Kathmandu. 464 00:28:00,050 --> 00:28:03,170 KT: So we had a extremely 465 00:28:03,520 --> 00:28:06,810 KT: um you know, very, very exciting and for Issy Sharp, 466 00:28:06,819 --> 00:28:08,979 KT: the four seasons, we don't want to forget him in 467 00:28:08,989 --> 00:28:13,400 KT: the Almond resorts. Those were the real lux properties. So 468 00:28:13,410 --> 00:28:18,420 KT: here I am this relatively young president traveling all over 469 00:28:18,430 --> 00:28:23,978 KT: Asia living the high life, working with unbelievable creme de 470 00:28:23,989 --> 00:28:27,459 KT: la creme brands. And then I meet Suze. 471 00:28:29,369 --> 00:28:34,170 KT: 20 years after a very illustrious life in the far east. 472 00:28:34,180 --> 00:28:37,468 KT: And I still, and I brought Suze to Hong Kong 473 00:28:37,479 --> 00:28:38,430 KT: and China and 474 00:28:38,689 --> 00:28:43,520 KT: Malaysia and Thailand, you name it. We went everywhere. So 475 00:28:43,569 --> 00:28:48,390 KT: my background is in advertising. I was always behind the camera. 476 00:28:48,400 --> 00:28:51,449 KT: Suze was always in front of the camera. And when 477 00:28:51,459 --> 00:28:54,479 KT: we met each other, which was in San Francisco where 478 00:28:54,489 --> 00:28:58,089 KT: I had purchased property. I remember I was very successful 479 00:28:58,099 --> 00:29:01,439 KT: in making quite a lot of money in my late 480 00:29:01,449 --> 00:29:04,310 KT: thirties and forties, a lot of money and I needed 481 00:29:04,319 --> 00:29:07,589 KT: to invest it. So I bought fabulous property and, 482 00:29:07,880 --> 00:29:10,420 KT: and I didn't even live in it. And then I 483 00:29:10,430 --> 00:29:13,660 KT: met Suze in San Francisco when I finally moved into 484 00:29:13,670 --> 00:29:15,599 KT: one of my homes and there. 485 00:29:15,609 --> 00:29:18,020 Suze: But was still going back and forth all the time, 486 00:29:19,150 --> 00:29:22,619 Suze: go back and forth. Like every weekend it was the 487 00:29:22,630 --> 00:29:27,839 Suze: craziest thing I'd ever seen. But that is a small glimpse, really, 488 00:29:27,849 --> 00:29:29,859 Suze: a small glimpse of the, 489 00:29:30,439 --> 00:29:32,449 KT: The life of KT and Suze. 490 00:29:32,800 --> 00:29:35,770 Suze: And so now Dennis, you know 491 00:29:36,140 --> 00:29:38,800 Suze: And there's only one thing we want all of you 492 00:29:38,810 --> 00:29:42,020 Suze: to know and to remember when it comes to your 493 00:29:42,030 --> 00:29:46,290 Suze: money and it is this people first, then money, then 494 00:29:46,300 --> 00:29:49,959 Suze: things now you stay safe and you absolutely. Do you 495 00:29:49,969 --> 00:29:54,270 Suze: hear us... stay unstoppable.