1 00:00:33,280 --> 00:00:41,440 Suze: December 22nd 2022 look how many 2s. It's 2, 2, 2, 2, 2. There are five 2 00:00:41,440 --> 00:00:43,120 Suze: twos in what I just said, that's 3 00:00:43,120 --> 00:00:44,130 KT: besides the point, 4 00:00:44,820 --> 00:00:46,120 Suze: that's good. 5 00:00:46,130 --> 00:00:48,490 KT: It's 10, I know my numbers. 6 00:00:48,490 --> 00:00:51,860 Suze: You're so good with numbers. Wait, welcome everybody to 7 00:00:51,860 --> 00:00:58,290 KT: The Women and Money Podcast and everyone smart enough to listen. 8 00:00:58,300 --> 00:01:01,020 KT: This is the end of 2022. 9 00:01:01,960 --> 00:01:06,900 Suze: Ask Suze and KT segments. That's what it's the end of, 10 00:01:06,910 --> 00:01:07,770 Suze: its not the end of 2022, 11 00:01:08,603 --> 00:01:11,143 Suze: KT. This is our last 12 00:01:11,153 --> 00:01:13,572 KT: Ask KT and Suze Anything 13 00:01:13,572 --> 00:01:15,913 Suze: for 2022. 14 00:01:16,203 --> 00:01:18,033 KT: Can you believe how fast that year went? 15 00:01:18,043 --> 00:01:23,153 Suze: I know, but KT, can you believe that Argentina won 16 00:01:23,163 --> 00:01:25,913 Suze: the World Cup? We did it 17 00:01:25,923 --> 00:01:28,323 KT: Goal! Let's do it together. 18 00:01:28,333 --> 00:01:31,043 Suze: Goal! That's the one thing 19 00:01:31,066 --> 00:01:36,386 Suze: that KT seriously learned from watching the World Cup with 20 00:01:36,386 --> 00:01:40,716 Suze: me and Colo. Colo, where's Colo? 21 00:01:40,715 --> 00:01:44,616 KT: He's in Colombia with his wife in Colombia having a 22 00:01:44,616 --> 00:01:46,066 KT: great time. Right. 23 00:01:46,075 --> 00:01:49,616 Suze: And with his three kids. And now one thing that's 24 00:01:49,616 --> 00:01:52,906 Suze: important to know is Colo listens to every one of 25 00:01:52,906 --> 00:01:54,190 Suze: these podcasts. 26 00:01:54,590 --> 00:01:58,200 Suze: Even when he's here with us and he'll sit down 27 00:01:58,200 --> 00:02:00,850 Suze: with me and I'll say I learned something the other day. 28 00:02:00,850 --> 00:02:02,880 Suze: What was it that he said to us the other 29 00:02:02,880 --> 00:02:03,370 Suze: morning 30 00:02:03,380 --> 00:02:05,910 KT: Oh, about paying for funerals in advance. 31 00:02:06,100 --> 00:02:06,820 Suze: Right. 32 00:02:06,820 --> 00:02:10,030 KT: He said that he, he and his wife were somewhere in 33 00:02:10,030 --> 00:02:12,910 KT: Colombia and a neighbor came and knocked on the door 34 00:02:12,910 --> 00:02:16,139 KT: and tried to sell them, gave them an entire presentation 35 00:02:16,139 --> 00:02:17,740 KT: and he looked at his wife he said, 36 00:02:17,755 --> 00:02:18,765 KT: I'm not buying this. 37 00:02:18,835 --> 00:02:22,364 Suze: But now he feels validated for not having done so. 38 00:02:22,375 --> 00:02:27,734 Suze: But Colo since we know you are listening, Ani, since we 39 00:02:27,735 --> 00:02:31,905 Suze: know you are listening. Hello, we miss you. So we 40 00:02:31,905 --> 00:02:33,115 Suze: just hope you're having a really 41 00:02:34,745 --> 00:02:36,145 KT: Feliz Navidad Ani and Toby. 42 00:02:36,155 --> 00:02:40,995 Suze: Yeah Toby we all know Toby little doggy. Alright KT. 43 00:02:42,035 --> 00:02:44,090 KT: Ok, first question is from Regina. 44 00:02:44,320 --> 00:02:48,020 KT: I want to instill good money habits to my great 45 00:02:48,020 --> 00:02:53,630 KT: niece who is one year old. What toy or tool 46 00:02:53,630 --> 00:02:54,910 KT: can I buy her? 47 00:02:55,040 --> 00:02:58,669 Suze: So Regina, do you see how you even ask that 48 00:02:58,669 --> 00:03:03,940 Suze: question you wanted to know what toy or tool could 49 00:03:03,940 --> 00:03:09,450 Suze: you buy for her? And I'm underlining the word buy. 50 00:03:09,980 --> 00:03:13,200 Suze: I've noticed over all the years that I've been doing 51 00:03:13,200 --> 00:03:18,390 Suze: this many of the mothers with their young children, that 52 00:03:18,400 --> 00:03:23,690 Suze: kids learn about money at a very very very young 53 00:03:23,700 --> 00:03:26,870 Suze: age and they learn about it 54 00:03:27,139 --> 00:03:30,930 Suze: from you. You think a kid gets up and they're 55 00:03:30,930 --> 00:03:33,669 Suze: like you know one year old, three months old, whatever 56 00:03:33,669 --> 00:03:36,250 Suze: it is and they care about what they look like. 57 00:03:36,260 --> 00:03:38,339 Suze: Think they care about what they look like when they're 58 00:03:38,340 --> 00:03:41,380 Suze: one year old or two year old. But no, parents 59 00:03:41,380 --> 00:03:44,450 Suze: care what they look like, particularly the mother believe it 60 00:03:44,450 --> 00:03:48,560 Suze: or not. And we start to teach them 61 00:03:48,740 --> 00:03:53,610 Suze: in a very strange way how what they have around them, 62 00:03:53,610 --> 00:03:58,500 Suze: what they're surrounded with really is important more than any 63 00:03:58,500 --> 00:04:03,430 Suze: toy that you could buy for your great niece is 64 00:04:03,440 --> 00:04:09,050 Suze: kids do what you do. They will watch everything that 65 00:04:09,060 --> 00:04:12,310 Suze: anybody around them does with money 66 00:04:12,930 --> 00:04:16,190 Suze: So it's not about buying them a toy or a tool. 67 00:04:16,820 --> 00:04:21,919 Suze: It's about you being their tool, you being their example. 68 00:04:22,210 --> 00:04:25,810 Suze: And rather than giving them gifts every single birthday and 69 00:04:25,810 --> 00:04:31,200 Suze: every single holiday, love them. Have experiences with them. Keep 70 00:04:31,200 --> 00:04:32,980 Suze: them close that way. 71 00:04:33,560 --> 00:04:37,320 Suze: And it's it's a very fascinating thing that they might 72 00:04:37,330 --> 00:04:41,279 Suze: just turn out to be somebody that really does have 73 00:04:41,300 --> 00:04:45,800 Suze: good money habits. Remember what I've said. Everybody kids don't 74 00:04:45,810 --> 00:04:47,680 Suze: do what you tell them to do. 75 00:04:48,250 --> 00:04:52,180 Suze: They do what you do when it comes to money. 76 00:04:52,420 --> 00:04:54,870 Suze: So don't go buying or anything if you ask me, 77 00:04:54,880 --> 00:04:55,539 Suze: Go on. 78 00:04:55,600 --> 00:05:01,169 KT: Alright. Next email is from Lucy. Hi Suze and KT, thank 79 00:05:01,170 --> 00:05:03,760 KT: you so much for sharing your knowledge. 80 00:05:03,970 --> 00:05:06,510 KT: I heard you mention a couple of times in your 81 00:05:06,510 --> 00:05:11,890 KT: podcast about purchasing Treasury bills go to a brokerage rather 82 00:05:11,890 --> 00:05:16,250 KT: than Treasury Direct. So Suze, why is it better to 83 00:05:16,250 --> 00:05:21,440 KT: go to a brokerage to buy Treasury bills than Treasury Direct? 84 00:05:21,490 --> 00:05:25,320 Suze: The reason is truthfully, Treasury Direct is still such an 85 00:05:25,330 --> 00:05:27,640 Suze: archaic and old system. 86 00:05:28,180 --> 00:05:31,230 Suze: And you know once you open up a Treasury direct account, 87 00:05:31,240 --> 00:05:34,320 Suze: you have to have a bank and you can't change 88 00:05:34,320 --> 00:05:37,419 Suze: that bank because if then you liquidate the Treasury bills, 89 00:05:37,430 --> 00:05:39,580 Suze: they have to go to that bank. And if now 90 00:05:39,580 --> 00:05:41,110 Suze: all of a sudden you're at a different bank, they 91 00:05:41,110 --> 00:05:44,680 Suze: won't know where to send the money. It's just too 92 00:05:44,680 --> 00:05:46,260 Suze: old fashioned, truthfully 93 00:05:46,900 --> 00:05:50,260 Suze: And the only good thing about buying T bills at 94 00:05:50,260 --> 00:05:55,780 Suze: Treasury direct, is that the minimum is $100. Anywhere else, 95 00:05:55,779 --> 00:06:00,910 Suze: like a brokerage firm, it's $1000. But the truth of 96 00:06:00,910 --> 00:06:04,710 Suze: the matter is if you're gonna buy Treasury bills, you 97 00:06:04,710 --> 00:06:08,810 Suze: want to buy $1000 worth of $5000 worth or whatever 98 00:06:08,820 --> 00:06:12,210 Suze: for just $100 there might be something better that you 99 00:06:12,210 --> 00:06:15,219 Suze: can do with that money. That's number one. 100 00:06:15,529 --> 00:06:17,670 Suze: But I just want to say something. 101 00:06:18,589 --> 00:06:20,039 Suze: I don't know for sure. 102 00:06:20,710 --> 00:06:25,120 Suze: But if you just wait till next year, some time, 103 00:06:25,810 --> 00:06:28,730 Suze: I'm going to tell you a better way of how 104 00:06:28,730 --> 00:06:34,289 Suze: to buy Treasury bills. That doesn't exist yet. That's even 105 00:06:34,290 --> 00:06:39,430 Suze: better than a brokerage firm because the only downside of 106 00:06:39,440 --> 00:06:44,710 Suze: buying them at a brokerage firm is this: now the 107 00:06:44,710 --> 00:06:48,140 Suze: people who are watching over the accounts or they'll see 108 00:06:48,140 --> 00:06:50,159 Suze: that you have money in that account 109 00:06:50,890 --> 00:06:54,770 Suze: and they will eventually probably contact you and say, hey, 110 00:06:54,779 --> 00:06:57,210 Suze: your Treasury bill is going to mature. Would you like 111 00:06:57,210 --> 00:06:59,720 Suze: to go into an exchange traded fund or would you 112 00:06:59,720 --> 00:07:01,560 Suze: like to do this or would you like to invest 113 00:07:01,560 --> 00:07:02,140 Suze: in that? 114 00:07:02,740 --> 00:07:05,950 Suze: I want you safe and sound that if you are 115 00:07:05,950 --> 00:07:08,030 Suze: going to do Treasury bills, 116 00:07:08,650 --> 00:07:14,130 Suze: that nobody entices you to do anything else unless you 117 00:07:14,140 --> 00:07:16,050 Suze: want to. All right, KT. 118 00:07:16,060 --> 00:07:18,620 KT: Sit tight. Everyone. 2023 119 00:07:18,620 --> 00:07:19,900 Suze: Is our year. 120 00:07:19,910 --> 00:07:24,030 KT: Our year! Okay, next is from Valerie. Hi Suze, 121 00:07:24,040 --> 00:07:31,340 KT: season's greetings. About two years ago you suggested TSP investments 122 00:07:31,350 --> 00:07:38,810 KT: as 70% a C Fund, 25% an S Fund, and 5% an I Fund. 123 00:07:40,290 --> 00:07:44,580 KT: Since the economy has drastically changed, do you have an updated 124 00:07:44,580 --> 00:07:50,280 KT: suggestion for fund options for someone that will possibly retire 125 00:07:50,290 --> 00:07:54,720 KT: in four years? So Valerie is probably the person retiring, right? 126 00:07:55,350 --> 00:07:58,420 Suze: Let me see that Valerie, the reason that you hear 127 00:07:58,420 --> 00:08:05,620 Suze: me sighing is that two years ago, those were fabulous suggestions. 128 00:08:05,630 --> 00:08:08,330 Suze: But as things change 129 00:08:08,920 --> 00:08:12,180 Suze: and a lot changed in two years, if you think 130 00:08:12,180 --> 00:08:12,990 Suze: about it. 131 00:08:13,670 --> 00:08:17,230 Suze: As things change you have to kind of keep up 132 00:08:17,230 --> 00:08:20,360 Suze: with it. Like I wished you had written me this 133 00:08:20,370 --> 00:08:25,490 Suze: email as soon as everything started to go down within 134 00:08:25,490 --> 00:08:28,190 Suze: your TSP. And for those of you who don't know 135 00:08:28,200 --> 00:08:32,670 Suze: a TSP is a thrift savings plan which is identical 136 00:08:32,670 --> 00:08:38,240 Suze: to a 401(k) or a 403(b). It's just for federal employees as well as 137 00:08:38,240 --> 00:08:39,250 Suze: the military. 138 00:08:39,850 --> 00:08:42,920 Suze: The C Fund just so you know, KT as well, 139 00:08:43,000 --> 00:08:47,650 Suze: stands for common stock fund. So at that time I 140 00:08:47,650 --> 00:08:50,939 Suze: was like yeah two years ago you wanted to invest 141 00:08:50,940 --> 00:08:55,819 Suze: in that because it went up dramatically. The S Fund 142 00:08:55,820 --> 00:09:00,179 Suze: was for small cap and even that did really great 143 00:09:00,190 --> 00:09:05,170 Suze: a number of years ago and I Fund was for international. 144 00:09:05,470 --> 00:09:08,790 Suze: Now what's interesting is that if you look at it 145 00:09:08,800 --> 00:09:11,630 Suze: over three, let's say we go back three years because 146 00:09:11,630 --> 00:09:13,840 Suze: I've been saying this not just for two years. I 147 00:09:13,840 --> 00:09:17,510 Suze: said it for three years over a three year period 148 00:09:17,510 --> 00:09:19,760 Suze: of time you would still be up 8% on the 149 00:09:19,760 --> 00:09:23,840 Suze: C Fund. You would be up 3.59% on the small 150 00:09:23,840 --> 00:09:29,920 Suze: cap and you'd be up 11.45% on the International Fund. 151 00:09:30,559 --> 00:09:34,260 Suze: If however you look at this year, KT, and what 152 00:09:34,260 --> 00:09:40,790 Suze: those three funds did, you'd be down 16% on the 153 00:09:40,800 --> 00:09:45,319 Suze: C Fund, 23% on the S Fund and almost 16% 154 00:09:45,320 --> 00:09:49,010 Suze: on the I Fund. So the truth of the matter 155 00:09:49,010 --> 00:09:53,520 Suze: is now at this point just a few years, four 156 00:09:53,520 --> 00:09:55,630 Suze: years away from retirement, 157 00:09:55,800 --> 00:09:58,630 Suze: what I would be doing now is I would be 158 00:09:58,630 --> 00:10:01,980 Suze: coming out of the funds that you are in. And 159 00:10:01,980 --> 00:10:05,190 Suze: the two funds that I would go into are the 160 00:10:05,190 --> 00:10:09,300 Suze: G Fund which is a stable fund everybody. So this 161 00:10:09,300 --> 00:10:13,290 Suze: is for all of you that have TSPs. And you're 162 00:10:13,290 --> 00:10:18,130 Suze: just a few years away from retirement. The G Fund 163 00:10:18,130 --> 00:10:21,320 Suze: which is your stable fund, it's like a money market account. 164 00:10:21,450 --> 00:10:24,170 Suze: Currently paying about 2.82%. 165 00:10:24,350 --> 00:10:27,120 Suze: Put some of your money in there and then the 166 00:10:27,130 --> 00:10:31,370 Suze: L Income Fund is the bond index and all of 167 00:10:31,370 --> 00:10:34,740 Suze: you know that I am liking bonds big time and 168 00:10:34,740 --> 00:10:37,160 Suze: since that's the only choice you have in the TSP, 169 00:10:37,860 --> 00:10:40,880 Suze: I would be going into that as well. I mean 170 00:10:40,880 --> 00:10:46,589 Suze: this year alone the L Income Fund is up also 2.82% 171 00:10:46,590 --> 00:10:50,300 Suze: which I find fascinating since the G Fund is as well. 172 00:10:50,679 --> 00:10:54,210 Suze: So that's what I would do if I were you. 173 00:10:54,230 --> 00:10:59,570 KT: So next question is from Romana. Hi Suze and KT. First, 174 00:10:59,570 --> 00:11:03,079 KT: thank you for your podcast which has been a huge 175 00:11:03,080 --> 00:11:04,000 KT: comfort 176 00:11:04,230 --> 00:11:08,319 KT: as I learned to grow my knowledge since the shocking 177 00:11:08,320 --> 00:11:13,660 KT: death of my mother who died from COVID in 2021 178 00:11:13,720 --> 00:11:18,079 KT: at the age of 58. My mother died July third. 179 00:11:18,090 --> 00:11:22,590 KT: She had no trust will or even a list of assets. 180 00:11:22,600 --> 00:11:26,630 KT: We never had the financial conversations we should have 181 00:11:26,809 --> 00:11:29,930 KT: and the last year has been a terrible whirlwind Suze. 182 00:11:29,929 --> 00:11:31,870 Suze: I bet. When you die, everybody, I just have to 183 00:11:31,870 --> 00:11:36,719 Suze: say something. When you die without a will, a living 184 00:11:36,720 --> 00:11:39,800 Suze: revocable trust, an advanced directive, a durable power of attorney 185 00:11:39,800 --> 00:11:42,780 Suze: for healthcare as well as a durable power of attorney 186 00:11:42,780 --> 00:11:44,620 Suze: for finances. You 187 00:11:44,980 --> 00:11:47,860 Suze: are going to leave a mess behind you. 188 00:11:47,870 --> 00:11:51,360 KT: Listen to this. She said, I just finished probate in 189 00:11:51,360 --> 00:11:52,990 KT: February 2022. 190 00:11:52,990 --> 00:11:55,840 Suze: That was actually a quick probate, believe it or not, 191 00:11:55,850 --> 00:11:58,360 Suze: in the state of California. It could be one year, 192 00:11:58,360 --> 00:11:59,770 Suze: two years. Really sad. 193 00:11:59,770 --> 00:12:03,240 KT: From July 21 to February 22. That's still a considerable 194 00:12:03,240 --> 00:12:06,080 KT: amount of time and she said I was finally named 195 00:12:06,080 --> 00:12:07,650 KT: the sole heir. So 196 00:12:08,300 --> 00:12:13,390 KT: Romana has inherited from her mom her retirement fund, Suze. 197 00:12:13,390 --> 00:12:15,750 KT: And she said in a podcast, you talked about the 198 00:12:15,750 --> 00:12:20,080 KT: guidance if we have to cash out 10% a year 199 00:12:20,090 --> 00:12:24,190 KT: versus waiting and taking one big hit in year 10. 200 00:12:24,200 --> 00:12:28,010 KT: So then she said, I'm not clear, I'm scared I'm 201 00:12:28,010 --> 00:12:31,510 KT: going to mess up and have a 50% penalty. What 202 00:12:31,510 --> 00:12:32,630 KT: can you advise her. 203 00:12:34,380 --> 00:12:35,520 KT: How can you set her straight. 204 00:12:35,520 --> 00:12:37,640 Suze: Our hearts go out to you 205 00:12:38,090 --> 00:12:42,650 Suze: for having lost your mama at such a really young age, 206 00:12:42,960 --> 00:12:47,220 Suze: such a young age. But Romana, what you hopefully have 207 00:12:47,220 --> 00:12:48,610 Suze: learned from this 208 00:12:49,070 --> 00:12:51,930 Suze: is that... does she saying here she's a mommy or not? 209 00:12:52,410 --> 00:12:55,160 KT: She and her husband ready Suze. She and her husband 210 00:12:55,170 --> 00:12:59,079 KT: are still don't have their own will and trust in 211 00:12:59,080 --> 00:13:03,000 KT: place but they're doing it now because of this experience. 212 00:13:03,000 --> 00:13:07,450 Suze: So all of you, the greatest gift that Romana could 213 00:13:07,450 --> 00:13:11,069 Suze: give you by writing in this email is don't think 214 00:13:11,070 --> 00:13:13,489 Suze: that the only time you die is when you're older. 215 00:13:13,809 --> 00:13:18,150 Suze: It's not, can we just look really, at the news lately, 216 00:13:18,160 --> 00:13:22,420 Suze: of all these actors and musicians who are dying at 217 00:13:22,429 --> 00:13:26,420 Suze: 40 years of age are dying at 60 at 70. 218 00:13:26,429 --> 00:13:30,150 Suze: And you know it's like it can happen at any time. 219 00:13:30,160 --> 00:13:33,690 Suze: So Romana is not going to want to do this 220 00:13:33,690 --> 00:13:36,470 Suze: to her family now because of what she went through. 221 00:13:36,480 --> 00:13:37,150 Suze: Don't 222 00:13:37,350 --> 00:13:41,059 Suze: make your family go through it, get the must have 223 00:13:41,059 --> 00:13:44,070 Suze: documents or go to a lawyer do and will and 224 00:13:44,070 --> 00:13:49,719 Suze: trust whatever it is but get your affairs in order. Romana, 225 00:13:49,720 --> 00:13:51,300 Suze: here's what you need to know. 226 00:13:52,010 --> 00:13:56,339 Suze: It became very complicated at the end of 2019 there 227 00:13:56,340 --> 00:14:00,449 Suze: was the Secure Act was passed and it changed the 228 00:14:00,460 --> 00:14:05,569 Suze: guidelines of inherited IRAs, big time. 229 00:14:06,210 --> 00:14:10,270 Suze: What you need to know is that those guidelines are 230 00:14:10,270 --> 00:14:14,440 Suze: still not written into law. They're still trying to figure 231 00:14:14,440 --> 00:14:19,420 Suze: out exactly how it's going to work. Especially for people 232 00:14:20,110 --> 00:14:25,150 Suze: who died while they were taking required minimum distributions from 233 00:14:25,150 --> 00:14:29,610 Suze: their retirement account. Or they were supposed to take required 234 00:14:29,610 --> 00:14:33,420 Suze: minimum distributions because they were of age but hadn't started 235 00:14:33,420 --> 00:14:35,550 Suze: them as of yet. 236 00:14:36,190 --> 00:14:41,280 Suze: But you, your Mama died when she was 58 so 237 00:14:41,280 --> 00:14:46,580 Suze: she wasn't even close to having to take required minimum distributions. 238 00:14:46,590 --> 00:14:50,610 Suze: You now are guided by a whole different set of 239 00:14:50,610 --> 00:14:57,210 Suze: rules than if she had died also prior to 2020. 240 00:14:57,770 --> 00:15:06,270 Suze: You now have 10 years to wipe the inherited IRA clean. 241 00:15:06,280 --> 00:15:08,950 Suze: You can do it before that if you want but 242 00:15:08,950 --> 00:15:13,600 Suze: you have a maximum of 10 years if you happen 243 00:15:13,600 --> 00:15:17,510 Suze: to have a large sum of money that you inherited. 244 00:15:17,570 --> 00:15:20,670 Suze: And I'm looking down at your email because it was 245 00:15:20,670 --> 00:15:24,400 Suze: long KT kind of cut it and went right to 246 00:15:24,410 --> 00:15:25,670 Suze: your question. 247 00:15:25,890 --> 00:15:30,960 Suze: It says here that you've inherited roughly about $500,000 in 248 00:15:30,980 --> 00:15:34,900 Suze: an account managed by financial advisors in an IRA that's 249 00:15:34,900 --> 00:15:39,800 Suze: not a Roth you have additional accounts to like $50,000 250 00:15:39,800 --> 00:15:43,190 Suze: in a. 403 B. That should also be going into 251 00:15:43,190 --> 00:15:48,670 Suze: your inherited IRA. So think about it if you just 252 00:15:48,670 --> 00:15:54,390 Suze: left $550,000 in your inherited IRA. 253 00:15:54,930 --> 00:15:59,450 Suze: At you know approximately let's just be conservative 4%. Do 254 00:15:59,450 --> 00:16:03,600 Suze: you know in 10 years that will grow to $814,000. 255 00:16:03,640 --> 00:16:06,460 Suze: Now in 10 years you would have to take out 256 00:16:06,470 --> 00:16:12,630 Suze: in one lump sum, $814,000 possibly more, if you made 257 00:16:12,630 --> 00:16:14,370 Suze: more than 4% on it. 258 00:16:14,680 --> 00:16:18,250 Suze: You would lose a good half of that because that 259 00:16:18,250 --> 00:16:21,780 Suze: would be taxed as ordinary income and depending on what 260 00:16:21,780 --> 00:16:27,150 Suze: state you live in very easily between federal and state-income taxes, 261 00:16:27,210 --> 00:16:29,280 Suze: $400,000 could be gone. 262 00:16:29,800 --> 00:16:33,600 Suze: What you would be better off doing in my opinion 263 00:16:33,640 --> 00:16:39,670 Suze: is deciding how much money can you take out per year, 264 00:16:40,730 --> 00:16:45,360 Suze: figuring out if you do withdraw let's say $50,000 a 265 00:16:45,360 --> 00:16:47,680 Suze: year and then it's the rest of the money is 266 00:16:47,680 --> 00:16:50,740 Suze: making 4%. How much would you take out the first year, 267 00:16:50,740 --> 00:16:53,180 Suze: the second year, the third year. So that in the 268 00:16:53,180 --> 00:16:57,860 Suze: 10th year maybe you'll have 50 or $60,000 that you 269 00:16:57,870 --> 00:17:02,000 Suze: can take out. Also you never know you may very 270 00:17:02,000 --> 00:17:05,169 Suze: well want to change the amounts that you take out 271 00:17:05,180 --> 00:17:09,129 Suze: based on the income that you're making for that year. 272 00:17:09,359 --> 00:17:12,600 Suze: So in years between now and 10 years that maybe 273 00:17:12,600 --> 00:17:16,080 Suze: you're not working. Maybe something's happened. Maybe your income has 274 00:17:16,080 --> 00:17:19,330 Suze: dropped considerably, that would be the year that you took 275 00:17:19,330 --> 00:17:20,880 Suze: out even more money 276 00:17:21,460 --> 00:17:23,980 Suze: so that you didn't have to pay as much tax 277 00:17:23,980 --> 00:17:26,020 Suze: on it so that if you were in a high 278 00:17:26,030 --> 00:17:27,520 Suze: wage earning year 279 00:17:28,090 --> 00:17:30,760 Suze: you may be then wouldn't have to take out as much. 280 00:17:30,770 --> 00:17:34,880 Suze: I hope that made sense. But that is what you 281 00:17:34,880 --> 00:17:36,560 Suze: are to do. For anybody 282 00:17:37,210 --> 00:17:42,109 Suze: who doesn't have to take out a percentage every year 283 00:17:42,119 --> 00:17:47,240 Suze: because the inherited IRA was not already taking required minimum 284 00:17:47,240 --> 00:17:52,690 Suze: distributions or they weren't supposed to do not wait to 285 00:17:52,690 --> 00:17:57,660 Suze: the 10th year to take everything out unless you have 286 00:17:57,660 --> 00:18:00,150 Suze: inherited such a small amount, 287 00:18:00,550 --> 00:18:05,680 Suze: 10,000, 15,000 and maybe 10 years from now it would 288 00:18:05,680 --> 00:18:09,030 Suze: be worth 20 or 25,000 or whatever it would be 289 00:18:09,040 --> 00:18:11,960 Suze: and then you're withdrawing it and it's really not going 290 00:18:11,960 --> 00:18:13,580 Suze: to affect you because you're still not going to be 291 00:18:13,580 --> 00:18:16,910 Suze: in a high income tax bracket. Something for you to 292 00:18:16,910 --> 00:18:19,290 Suze: think about. Next question my dear KT. 293 00:18:20,080 --> 00:18:22,690 KT: OK. This is from Annie, ready? 294 00:18:22,910 --> 00:18:26,480 KT: I'm 60 years old. I'll be 61 in January next 295 00:18:26,480 --> 00:18:27,020 KT: year. 296 00:18:27,230 --> 00:18:33,100 KT: I have over $100,000 in student loan debt and approximately 297 00:18:33,100 --> 00:18:37,359 KT: 60,000 in debt. We make an income of 50,000 a 298 00:18:37,359 --> 00:18:40,360 KT: year together. I'm not sure how long I can work 299 00:18:40,369 --> 00:18:42,139 KT: due to many health issues. 300 00:18:42,340 --> 00:18:45,280 KT: We considered, I guess we as she and her husband, 301 00:18:45,290 --> 00:18:49,980 KT: considered filing bankruptcy, but it does not include my student 302 00:18:49,980 --> 00:18:54,410 KT: loan debt. Can you give us any suggestions? She said 303 00:18:54,410 --> 00:18:56,650 KT: we really want to pay our bills and do the 304 00:18:56,650 --> 00:19:00,920 KT: right thing. Thank you in advance for any suggestions that 305 00:19:00,920 --> 00:19:01,340 KT: you might have. 306 00:19:02,020 --> 00:19:05,200 Suze: You know, Annie, There's a rule of thumb and all 307 00:19:05,200 --> 00:19:07,449 Suze: of you... have you gotten out your Suze notebooks by 308 00:19:07,450 --> 00:19:07,840 Suze: the way, 309 00:19:08,090 --> 00:19:11,030 Suze: are you writing all of this down? All right, get 310 00:19:11,030 --> 00:19:13,909 Suze: them out, get them out right. You know, there's a 311 00:19:13,910 --> 00:19:17,970 Suze: rule of thumb that when you make less than what 312 00:19:17,980 --> 00:19:19,150 Suze: you owe, 313 00:19:19,670 --> 00:19:24,679 Suze: you're essentially bankrupt anyway. So I don't want you to 314 00:19:24,680 --> 00:19:30,040 Suze: feel like doing the wrong thing would be doing what? 315 00:19:30,050 --> 00:19:31,510 Suze: Claiming bankruptcy 316 00:19:31,680 --> 00:19:35,080 Suze: When something is legal and you can do it. There's 317 00:19:35,080 --> 00:19:39,800 Suze: nothing wrong with doing it if and only if you 318 00:19:39,800 --> 00:19:43,530 Suze: learn from it the other day, I was reading an 319 00:19:43,540 --> 00:19:47,750 Suze: email that came in and I do read these. Besides KT, 320 00:19:47,770 --> 00:19:50,410 Suze: I just never know which one she's going to choose. 321 00:19:50,420 --> 00:19:54,869 Suze: And this person had claimed bankruptcy 2.8 years ago 322 00:19:55,250 --> 00:19:58,460 Suze: and now they've gotten themselves into even worse trouble and 323 00:19:58,460 --> 00:20:01,040 Suze: I just skipped it. I was like, listen, if you 324 00:20:01,040 --> 00:20:04,350 Suze: didn't learn what you needed to learn from claiming bankruptcy 325 00:20:04,359 --> 00:20:07,300 Suze: almost three years ago, I don't have what it takes 326 00:20:07,300 --> 00:20:09,490 Suze: to teach you because you didn't learn. 327 00:20:10,090 --> 00:20:13,260 Suze: And then it's not right that all of us have 328 00:20:13,260 --> 00:20:17,500 Suze: to pay somehow for the fact that you know, you 329 00:20:17,500 --> 00:20:19,620 Suze: didn't pay for this, you didn't pay for that. It 330 00:20:19,619 --> 00:20:24,200 Suze: always comes back because why? Creditors just raise prices across 331 00:20:24,210 --> 00:20:28,790 Suze: the board. Here's what I want you to do. Currently, 332 00:20:28,790 --> 00:20:33,830 Suze: and I don't know if there's $100,000 is federal or 333 00:20:33,830 --> 00:20:35,470 Suze: private student loan, 334 00:20:36,070 --> 00:20:39,130 Suze: but there's still a moratorium. We'll see what happens on 335 00:20:39,130 --> 00:20:43,220 Suze: student loan payments. I have a feeling that you probably 336 00:20:43,220 --> 00:20:48,129 Suze: haven't been making payments on it even before everything went 337 00:20:48,140 --> 00:20:53,040 Suze: into a moratorium. So maybe you go into forbearance or 338 00:20:53,040 --> 00:20:56,440 Suze: deferment on this. And this is the reason why 339 00:20:57,480 --> 00:21:01,449 Suze: Even though in the past it was very difficult to 340 00:21:01,450 --> 00:21:05,690 Suze: claim bankruptcy on student loans. And in fact, I remember 341 00:21:05,700 --> 00:21:09,480 Suze: I had a while ago, a lawyer write in and 342 00:21:09,480 --> 00:21:14,160 Suze: she said Suze, please stop telling people that it's impossible 343 00:21:14,170 --> 00:21:17,270 Suze: to claim bankruptcy on student loans. I know a way 344 00:21:17,270 --> 00:21:20,080 Suze: to do it. So she wanted me to stop saying 345 00:21:20,080 --> 00:21:23,700 Suze: it that much. And God I wish I knew her more. 346 00:21:23,700 --> 00:21:25,890 Suze: I could recommend her because then I would just send 347 00:21:25,890 --> 00:21:27,180 Suze: everybody to her 348 00:21:27,310 --> 00:21:30,040 Suze: right, because of how many of you really needed your 349 00:21:30,040 --> 00:21:34,420 Suze: student loans dismissed. But because it was during the moratorium 350 00:21:34,430 --> 00:21:36,669 Suze: of the student loan payments, 351 00:21:37,240 --> 00:21:40,020 Suze: it was like, okay, let's just see what happens in 352 00:21:40,020 --> 00:21:42,590 Suze: case when we come out of this, the student loan 353 00:21:42,590 --> 00:21:45,340 Suze: payments are dismissed. Now we still don't know if that's 354 00:21:45,340 --> 00:21:48,820 Suze: going to happen. And again, it's only federal loans and 355 00:21:48,820 --> 00:21:52,250 Suze: it's only up to $20,000 if you have a pell 356 00:21:52,250 --> 00:21:56,840 Suze: grant or $10,000 if you don't, but here is new 357 00:21:56,840 --> 00:22:00,640 Suze: news that I think you will enjoy listening 358 00:22:01,220 --> 00:22:05,139 Suze: the student borrower, I can't say that name, say it 359 00:22:05,140 --> 00:22:06,380 Suze: for me, borrower 360 00:22:07,109 --> 00:22:09,320 Suze: Bauer. See I can't say it. 361 00:22:09,320 --> 00:22:09,619 KT: Borrower. 362 00:22:09,630 --> 00:22:11,100 KT: Borrow-er. 363 00:22:12,410 --> 00:22:13,580 Suze: Yeah you 364 00:22:13,580 --> 00:22:16,230 Suze: see everybody, I still have my speech impediment that I 365 00:22:16,230 --> 00:22:20,820 Suze: can't pronounce R's, S's or Ts. So those ours together, don't 366 00:22:20,820 --> 00:22:21,040 KT: Borrower 367 00:22:21,930 --> 00:22:30,480 Suze: The Student Borrower Act. That's good. So it's called the 368 00:22:30,480 --> 00:22:35,390 Suze: Student (KT Says: Borrower) Relief Act of 2022 369 00:22:35,690 --> 00:22:39,770 Suze: and it was introduced I believe in October, KT, of this 370 00:22:39,770 --> 00:22:40,240 Suze: year 371 00:22:40,920 --> 00:22:44,780 Suze: and it is a bill that is eliminating the section 372 00:22:44,790 --> 00:22:46,680 Suze: of the bankruptcy code 373 00:22:47,320 --> 00:22:52,270 Suze: that makes it possible for student loan debt, whether it 374 00:22:52,280 --> 00:22:58,399 Suze: is federal or private to be discharged in bankruptcy. Now 375 00:22:58,410 --> 00:23:01,330 Suze: I remember back, I have to tell you in 2005, 376 00:23:01,330 --> 00:23:04,340 Suze: I don't know if you remember I was doing many 377 00:23:04,340 --> 00:23:09,780 Suze: shows and I was so upset how dare they, the Congress, 378 00:23:09,780 --> 00:23:13,330 Suze: passed a bill that made it impossible 379 00:23:13,869 --> 00:23:17,860 Suze: to claim in most circumstances at the time any student 380 00:23:17,859 --> 00:23:21,290 Suze: loan debt. I was so mad. I was ranting and 381 00:23:21,290 --> 00:23:24,420 Suze: raving anywhere I could but it was too late, it 382 00:23:24,420 --> 00:23:29,680 Suze: was passed and now they're coming to their senses and 383 00:23:29,690 --> 00:23:32,170 Suze: they're trying to pass this bill. Now 384 00:23:32,500 --> 00:23:36,630 Suze: it was just introduced, it hasn't gone anywhere yet. The 385 00:23:36,630 --> 00:23:41,600 Suze: other good news is Elizabeth Warren, Senator Warren is also 386 00:23:41,609 --> 00:23:45,780 Suze: wanting to introduce a bill or maybe she already has 387 00:23:45,790 --> 00:23:49,930 Suze: that does the exact same thing. So I just think 388 00:23:49,940 --> 00:23:56,890 Suze: it's absolutely fabulous. So it goes and I think it might, 389 00:23:56,920 --> 00:24:00,030 Suze: I think it might because it needs to, because if 390 00:24:00,030 --> 00:24:02,010 Suze: we were to look at truthfully 391 00:24:02,150 --> 00:24:06,500 Suze: how much student loan debt makes up of all the 392 00:24:06,500 --> 00:24:10,240 Suze: debt besides mortgage debt, KT, do you know that student 393 00:24:10,240 --> 00:24:14,330 Suze: loan debt is the next highest amount of debt that 394 00:24:14,330 --> 00:24:17,800 Suze: is owed. And in most cases it's at a higher 395 00:24:17,810 --> 00:24:22,870 Suze: interest rate than almost anything else. When mortgages were low, 396 00:24:23,359 --> 00:24:27,310 Suze: student loan interest rate was higher than a mortgage. 397 00:24:27,710 --> 00:24:31,020 Suze: And so we're taxing our kids were like, are you 398 00:24:31,020 --> 00:24:34,450 Suze: kidding me? Why would we do that to them? So 399 00:24:34,460 --> 00:24:39,159 Suze: just wait and see what happens. As far as the 400 00:24:39,160 --> 00:24:42,800 Suze: $50,000 that you have in credit card debt, 401 00:24:43,359 --> 00:24:46,500 Suze: I did read other parts of your email. I've been 402 00:24:46,500 --> 00:24:49,280 Suze: scanning it as I've been telling you and you do 403 00:24:49,280 --> 00:24:53,419 Suze: have some serious health problems. Oh, KT just showed me you 404 00:24:53,420 --> 00:24:58,250 Suze: have $60,000 of debt. Sorry about that. So you have 405 00:24:58,250 --> 00:24:59,680 Suze: two choices here. 406 00:25:00,820 --> 00:25:05,280 Suze: You can claim bankruptcy if you want on that 60,000. 407 00:25:05,950 --> 00:25:10,109 Suze: Because you don't make 60,000. So you should feel fine 408 00:25:10,109 --> 00:25:14,170 Suze: about claiming bankruptcy on that 60,000 if you can and 409 00:25:14,170 --> 00:25:17,330 Suze: just wait to see what's happening with the bills that 410 00:25:17,330 --> 00:25:18,980 Suze: have been introduced. 411 00:25:20,170 --> 00:25:21,020 KT: On student loans. 412 00:25:21,020 --> 00:25:23,959 Suze: On student loans. The other thing you can do with the 60,000 413 00:25:23,960 --> 00:25:27,900 Suze: if you don't want to claim bankruptcy contact the NFCC 414 00:25:27,900 --> 00:25:28,869 Suze: dot org. 415 00:25:29,460 --> 00:25:33,050 Suze: It's a consumer credit counseling service for you that you 416 00:25:33,050 --> 00:25:35,649 Suze: go to them. They put you on a five-year plan, 417 00:25:35,670 --> 00:25:39,170 Suze: they lower your interest rates to 0% and you pay 418 00:25:39,170 --> 00:25:41,659 Suze: it if you can, you pay them they pay the 419 00:25:41,660 --> 00:25:42,530 Suze: credit cards. 420 00:25:42,720 --> 00:25:46,040 Suze: But I think in your particular case I have a 421 00:25:46,040 --> 00:25:49,650 Suze: feeling given what I've read bankruptcy is the way for 422 00:25:49,650 --> 00:25:53,160 Suze: you to go. Um And mainly because of your health. 423 00:25:53,170 --> 00:25:56,980 Suze: Everybody just know right that as I'm reading this Annie 424 00:25:57,100 --> 00:26:00,520 Suze: has some serious, serious health problems 425 00:26:00,869 --> 00:26:01,290 KT: and so 426 00:26:01,290 --> 00:26:05,000 Suze: does her husband. So they really need help and I 427 00:26:05,000 --> 00:26:07,650 Suze: wouldn't doubt it. That a lot of that debt is 428 00:26:07,650 --> 00:26:11,129 Suze: because of medical bills. Alright. 429 00:26:11,990 --> 00:26:13,030 Suze: It's it. This is it KT... 430 00:26:14,130 --> 00:26:18,590 KT: Okay, this is the last quizzie I get to answer 431 00:26:18,590 --> 00:26:21,680 KT: in 2022 all of you listening. 432 00:26:21,850 --> 00:26:24,159 Suze: But KT for the rest of the year can I just 433 00:26:24,160 --> 00:26:25,340 Suze: walk around going (Wrong answer noise)? 434 00:26:26,170 --> 00:26:29,570 KT: No. Should we continue quizzies or just get rid of 435 00:26:29,570 --> 00:26:33,050 KT: them next year? We should have a vote. Well let 436 00:26:33,050 --> 00:26:35,830 KT: let them right in. If you want to continue, 437 00:26:36,380 --> 00:26:38,870 Suze: Why don't you want me to continue? 438 00:26:38,880 --> 00:26:41,939 KT: Maybe not. Maybe we should do something different 439 00:26:41,950 --> 00:26:42,910 Suze: Like what? 440 00:26:43,140 --> 00:26:45,490 KT: I don't know. Maybe I should do something different. Maybe I 441 00:26:45,490 --> 00:26:46,619 KT: should ask you a quizzie. 442 00:26:47,600 --> 00:26:50,930 Suze: Like I would fail it. Oh my God, we're gonna do quizzies 443 00:26:50,930 --> 00:26:52,660 Suze: next year. Don't worry. Everybody. 444 00:26:53,770 --> 00:26:55,980 KT: Make it a good one, make it a good make 445 00:26:55,980 --> 00:26:57,060 KT: it a good exit. 446 00:26:57,070 --> 00:26:57,919 Suze: All right. 447 00:26:58,430 --> 00:27:01,950 Suze: Again, everybody this quizzie isn't just for KT. It's for 448 00:27:01,960 --> 00:27:05,679 Suze: all of you with the goal that you know how 449 00:27:05,680 --> 00:27:09,060 Suze: to answer these questions. I don't want you sitting there 450 00:27:09,060 --> 00:27:11,420 Suze: and just listening to me answer and it goes in 451 00:27:11,420 --> 00:27:13,300 Suze: one ear and out the other. Or maybe you've written 452 00:27:13,300 --> 00:27:15,550 Suze: it down and then maybe you forget about it. I 453 00:27:15,550 --> 00:27:19,710 Suze: want you to think how you as well as KT 454 00:27:19,720 --> 00:27:24,659 Suze: would answer this question. So let's pretend all of you 455 00:27:24,670 --> 00:27:25,669 Suze: are me. 456 00:27:26,210 --> 00:27:30,350 Suze: Oh God. Anyway, alright. Dear Suze, I have followed you 457 00:27:30,350 --> 00:27:33,340 Suze: and your advice for many years and as a result 458 00:27:33,450 --> 00:27:37,820 Suze: I was doing great financially. Recently though I had a 459 00:27:37,820 --> 00:27:42,670 Suze: true emergency I needed to drain my emergency fund down 460 00:27:42,760 --> 00:27:48,550 Suze: to $1500. Thank God that you had an emergency fund 461 00:27:48,920 --> 00:27:52,619 Suze: because really Catherine, otherwise whatever it is that you withdrew 462 00:27:52,619 --> 00:27:56,060 Suze: from that would be on credit card right now or 463 00:27:56,060 --> 00:27:57,890 Suze: possibly payday loans. 464 00:27:58,400 --> 00:28:03,710 Suze: Now Catherine goes on to say, I have about $150 465 00:28:03,710 --> 00:28:09,369 Suze: per month of discretionary money in my budget to do 466 00:28:09,369 --> 00:28:14,639 Suze: what with? That she can use to replenish her emergency 467 00:28:14,650 --> 00:28:17,909 Suze: savings account. Now all of you know my rule of 468 00:28:17,910 --> 00:28:18,550 Suze: thumb 469 00:28:18,830 --> 00:28:21,690 Suze: that I want all of you to have an 8 470 00:28:21,700 --> 00:28:27,200 Suze: to 12 month emergency savings account. So again Catherine has 471 00:28:27,740 --> 00:28:31,219 Suze: $150 a month that she can put in to her 472 00:28:31,230 --> 00:28:34,640 Suze: emergency fund. However here is the question: 473 00:28:35,400 --> 00:28:43,850 Suze: Catherine also puts $500 a month into her Roth IRA. The 474 00:28:43,850 --> 00:28:50,210 Suze: question is: should she stop contributing to her Roth IRA 475 00:28:51,250 --> 00:28:57,370 Suze: and add that $500 to the $150 that she's putting 476 00:28:57,380 --> 00:29:02,490 Suze: in to her emergency savings account to build it back up. 477 00:29:03,620 --> 00:29:04,690 Suze: Think about it. 478 00:29:05,570 --> 00:29:11,370 Suze: Think about a KT. She has $1,500 right now. If 479 00:29:11,380 --> 00:29:15,540 Suze: anything happens and she needs more than that. 480 00:29:16,490 --> 00:29:20,620 Suze: what is she going to do? Should she stop, everybody, 481 00:29:20,630 --> 00:29:25,660 Suze: putting that $500 into a contributory Roth. That would mean 482 00:29:25,670 --> 00:29:31,040 Suze: in six months she would have $6,000 483 00:29:31,680 --> 00:29:35,870 Suze: built back up in her emergency savings account plus the 484 00:29:35,880 --> 00:29:40,890 Suze: $1800 from her $150 a month. She'd have $7800 in 485 00:29:40,890 --> 00:29:44,920 Suze: one year. KT, what should she do? 486 00:29:45,150 --> 00:29:51,420 KT: Definitely continue on contributing to the Roth IRA. Definitely. 487 00:29:52,090 --> 00:29:52,420 Suze: Are you telling... 488 00:29:53,660 --> 00:29:54,280 KT: With the $500. 489 00:29:54,290 --> 00:29:56,800 Suze: So are you telling me that... 490 00:29:57,170 --> 00:30:02,350 Suze: Here we have Catherine who has only $1,500 in her 491 00:30:02,350 --> 00:30:09,060 Suze: emergency account. So that's 1800 that will give her after 492 00:30:09,060 --> 00:30:16,540 Suze: one year, $3,300. That's it. Better than nothing. But yet 493 00:30:16,550 --> 00:30:21,870 Suze: she will have $6,000 in a ROTH. And if she 494 00:30:21,870 --> 00:30:24,560 Suze: had put it in here with the other money, 495 00:30:25,010 --> 00:30:30,380 Suze: she would have $9300 as an emergency fund. So that 496 00:30:30,380 --> 00:30:32,580 Suze: if anything happened 497 00:30:33,870 --> 00:30:36,810 Suze: she would have a place to go to get that money. 498 00:30:36,810 --> 00:30:40,630 Suze: So once again, final answer is what should she do? 499 00:30:41,070 --> 00:30:44,500 KT: You don't stop contributing to the ROTH. She should do that 500 00:30:44,500 --> 00:30:47,540 KT: as a priority. I don't really know why, but my 501 00:30:47,540 --> 00:30:51,070 KT: gut tells me Suze, you just don't stop doing that. 502 00:30:51,080 --> 00:30:53,330 Suze: All right, so are you ready for your answer? 503 00:30:53,330 --> 00:30:54,420 KT: Yea. 504 00:30:54,430 --> 00:30:57,730 Suze: So you have a 50-50 here. It's 505 00:30:58,240 --> 00:31:03,410 Suze: It's Ding Ding. Ding Ding ding. However, the fact that 506 00:31:03,410 --> 00:31:07,470 Suze: you didn't know why. I'm sorry, my love. It's like (Suze makes the wrong answer noise). 507 00:31:08,130 --> 00:31:08,890 KT: Ok, so whats the reason? 508 00:31:10,430 --> 00:31:14,310 Suze: So here's the thing Catherine. What you have to remember 509 00:31:14,320 --> 00:31:18,550 Suze: about a Roth IRA, you can take out any money 510 00:31:18,550 --> 00:31:24,400 Suze: that you originally contributed without any taxes or penalties whatsoever. 511 00:31:25,380 --> 00:31:31,410 Suze: So Catherine, if you put $6000 into a Roth IRA 512 00:31:32,020 --> 00:31:36,590 Suze: and let's say you put it somewhere where it's making 513 00:31:36,590 --> 00:31:40,840 Suze: a high interest rates or it's in short term Treasuries. 514 00:31:40,850 --> 00:31:43,630 Suze: So you're only doing something for like three months or 515 00:31:43,630 --> 00:31:48,280 Suze: six months. So, relatively, it's always becoming available to you 516 00:31:48,290 --> 00:31:51,370 Suze: and you don't risk it in the market. 517 00:31:52,060 --> 00:31:55,160 Suze: Then you have taken advantage of being able to put 518 00:31:55,160 --> 00:31:59,840 Suze: $6000 this year in a Roth IRA and use that 519 00:31:59,840 --> 00:32:05,690 Suze: $6000 as what as your emergency fund as your emergency 520 00:32:05,690 --> 00:32:10,729 Suze: fund outside of your Roth IRA continues to grow and 521 00:32:10,730 --> 00:32:13,800 Suze: it goes back up there. Now, you will have all 522 00:32:13,800 --> 00:32:17,080 Suze: this money. Hopefully because you haven't come into an emergency. 523 00:32:17,080 --> 00:32:18,340 Suze: You didn't have to use it. 524 00:32:18,580 --> 00:32:23,580 Suze: That's in your Roth IRA, that you now can start investing. 525 00:32:23,590 --> 00:32:26,730 Suze: So that is the reason you don't want to stop. 526 00:32:26,740 --> 00:32:28,570 Suze: But you have to understand, 527 00:32:28,850 --> 00:32:32,270 Suze: you can take out this money that you originally contributed 528 00:32:32,280 --> 00:32:36,690 Suze: anytime you want without taxes or penalties whatsoever, regardless of 529 00:32:36,690 --> 00:32:39,750 Suze: your age or how long it has been in there. 530 00:32:39,830 --> 00:32:44,910 Suze: Got that. Just don't invest that money. Just put it 531 00:32:44,910 --> 00:32:48,580 Suze: to work like in a savings account or a short 532 00:32:48,590 --> 00:32:52,250 Suze: term treasury bill. And again, I just have to say 533 00:32:52,750 --> 00:32:57,310 Suze: next year, we're gonna have another surprise for you. That 534 00:32:57,310 --> 00:33:03,280 Suze: would have absolutely solved this problem. 100%. 535 00:33:03,290 --> 00:33:06,390 KT: So that was the end of 2022 Suze. 536 00:33:06,400 --> 00:33:10,990 Suze: That was a 50-50 ending. What's important everybody is that you, 537 00:33:11,000 --> 00:33:14,430 Suze: you have to not just guess as to what you 538 00:33:14,430 --> 00:33:17,670 Suze: should do. It's really important that you have to know 539 00:33:17,680 --> 00:33:22,170 Suze: why you are doing it. And that's the only reason, KT. 540 00:33:22,180 --> 00:33:25,750 KT: So let's go for dings next year. 2023 ding ding, 541 00:33:25,750 --> 00:33:26,800 KT: ding ding ding. 542 00:33:26,810 --> 00:33:28,180 Suze: And you have to listen 543 00:33:28,180 --> 00:33:29,240 Suze: better. 544 00:33:29,430 --> 00:33:30,520 Suze: Alright, 545 00:33:30,520 --> 00:33:31,740 KT: Do my homework better. 546 00:33:31,750 --> 00:33:32,840 Suze: Three days. 547 00:33:33,270 --> 00:33:37,990 KT: Three days. Three days for the big reveal. Actually, Christmas 548 00:33:37,990 --> 00:33:42,270 KT: Day is the best podcast. I hope you all enjoy it. 549 00:33:42,280 --> 00:33:43,560 KT: It's really great. 550 00:33:44,050 --> 00:33:44,350 Suze: It's different. 551 00:33:44,350 --> 00:33:47,700 KT: It's different. It's great. It's original. It's fun 552 00:33:48,050 --> 00:33:52,540 KT: and very revealing and someone so special to us. 553 00:33:52,550 --> 00:33:55,390 Suze: And to all of you, the majority of you, by 554 00:33:55,390 --> 00:33:57,230 Suze: the way, you know... 555 00:33:57,590 --> 00:34:00,530 KT: So don't give any more hints. Don't give anymore. Don't tease 556 00:34:00,530 --> 00:34:01,330 KT: it anymore. 557 00:34:01,340 --> 00:34:02,920 Suze: So tune in. 558 00:34:03,390 --> 00:34:05,740 KT: We have the best Christmas gift of all. 559 00:34:05,800 --> 00:34:07,650 Suze: At least we thought we did. 560 00:34:08,100 --> 00:34:08,279 KT: We do! 561 00:34:08,590 --> 00:34:14,570 Suze: Alright anyway, until next year, KT. 562 00:34:15,400 --> 00:34:18,710 Suze: Until next year because Robert does the 29th 563 00:34:18,719 --> 00:34:21,660 KT: Oh yeah, we don't know what he's gonna do. 564 00:34:21,670 --> 00:34:25,570 Suze: Listen everybody until next year. What do you want to 565 00:34:25,570 --> 00:34:26,290 Suze: say to them? 566 00:34:26,290 --> 00:34:29,100 KT: I want you all to not only stay smart strong 567 00:34:29,100 --> 00:34:33,620 KT: and secure, but please please, this is the season to 568 00:34:33,620 --> 00:34:39,630 KT: stay extra healthy. Really, take care of yourselves. Take care 569 00:34:39,630 --> 00:34:40,690 KT: of your health 570 00:34:40,940 --> 00:34:44,800 KT: and make the New Year one that makes a difference. 571 00:34:44,800 --> 00:34:47,180 Suze: You want to thank them at all for anything? 572 00:34:47,190 --> 00:34:49,310 KT: Yeah, thanks for listening 573 00:34:49,320 --> 00:34:54,190 Suze: and part of our family. Right? And for me, I 574 00:34:54,190 --> 00:34:57,850 Suze: just want to leave you with one final thought. 575 00:34:58,450 --> 00:35:00,930 Suze: The greatest greatest gift 576 00:35:01,650 --> 00:35:07,299 Suze: that you could give anybody including yourself is the gift 577 00:35:07,310 --> 00:35:11,969 Suze: of honesty, to stand in your truth and the gift 578 00:35:11,980 --> 00:35:15,630 Suze: of love. It is not a gift 579 00:35:15,890 --> 00:35:20,799 Suze: that money could buy at any price. Got that everybody. 580 00:35:20,870 --> 00:35:24,400 Suze: So we wish you all a very happy New Year, 581 00:35:24,410 --> 00:35:30,799 Suze: a very Merry Christmas and a very happy Hanukkah. Alright, 582 00:35:31,120 --> 00:35:33,410 Suze: there's only one thing that we want you to remember 583 00:35:33,410 --> 00:35:36,450 Suze: when it comes to your money and it is what KT? 584 00:35:36,580 --> 00:35:39,459 KT: Be smart, strong and secure. 585 00:35:39,460 --> 00:35:41,430 Suze: And now you stay safe. 586 00:35:41,430 --> 00:35:42,279 KT: Happy New Year. 587 00:35:42,280 --> 00:35:44,260 Suze: See you next year. Bye bye.