1 00:00:46,200 --> 00:00:51,708 Suze: September 26th, 2024. Welcome everybody to the Women and Money podcast. 2 00:00:51,720 --> 00:00:54,740 Suze: As well as everybody smart enough to listen. This is 3 00:00:54,750 --> 00:00:56,900 Suze: the KT and Suze episode. 4 00:00:58,979 --> 00:01:02,639 KT: Ask us anything. I'm a little jet lag. Still. 5 00:01:02,650 --> 00:01:04,400 Suze: You're a little something this morning. 6 00:01:04,410 --> 00:01:07,839 KT: You keep waking up at 330 in the morning. So 7 00:01:07,849 --> 00:01:11,639 KT: we got back from Spain. We had a great time. Everyone. 8 00:01:11,650 --> 00:01:14,099 KT: We both gained three pounds each 9 00:01:15,239 --> 00:01:17,839 Suze: and now we're in the end of September, which is 10 00:01:17,849 --> 00:01:21,000 Suze: also a big birthday month. We have lots of birthdays 11 00:01:21,010 --> 00:01:21,470 Suze: this month. 12 00:01:21,480 --> 00:01:23,809 KT: So everybody who has a birthday this month, we wish 13 00:01:23,819 --> 00:01:26,869 KT: you a happy, happy birthday. 14 00:01:27,230 --> 00:01:29,239 Suze: And what else do you want to tell them anything 15 00:01:29,250 --> 00:01:30,290 Suze: about Spain? 16 00:01:30,440 --> 00:01:34,589 KT: Yeah, we loved visiting with Mel. We loved seeing Sammy 17 00:01:34,599 --> 00:01:37,300 KT: in the hometown she grew up in. I just have 18 00:01:37,370 --> 00:01:39,239 KT: to tell you this. It was spectacular. 19 00:01:39,339 --> 00:01:42,519 Suze: So we've been friends with Sammy and her mother Lithia 20 00:01:42,529 --> 00:01:48,199 Suze: now for 10 years because it was in 2015 that 21 00:01:48,209 --> 00:01:51,809 Suze: the first time KT and I walked the Camino, 22 00:01:52,440 --> 00:01:58,110 Suze: it was Marley Camino, which is Lithia's company that hosted us. 23 00:01:58,120 --> 00:02:01,419 Suze: And since then, we have become such close friends. I 24 00:02:01,430 --> 00:02:02,309 Suze: can't tell you. 25 00:02:02,349 --> 00:02:05,069 KT: We did two more caminos thereafter. 26 00:02:05,110 --> 00:02:07,370 Suze: So however, but I just have to tell this story. 27 00:02:07,639 --> 00:02:11,229 Suze: So they've always told us, Sammy, her daughter who's just stunning, 28 00:02:11,240 --> 00:02:12,059 Suze: by the way, 29 00:02:12,538 --> 00:02:15,668 Suze: always told us about how she was raised. She grew 30 00:02:15,679 --> 00:02:19,320 Suze: up in Majorca in her grandma's home, grandma. And we 31 00:02:19,330 --> 00:02:23,690 Suze: pictured this home that she described on a cliff overlooking 32 00:02:23,699 --> 00:02:27,549 Suze: the Mediterranean, kind of like really elegant in its own 33 00:02:27,559 --> 00:02:30,800 Suze: way or that's how I pictured it. And 34 00:02:31,258 --> 00:02:33,660 Suze: we finally went and visited her there. 35 00:02:33,669 --> 00:02:37,470 KT: It was on a cliff. It was a 300 year 36 00:02:37,479 --> 00:02:42,570 KT: old home that her great, great, great grandmother and grandfather 37 00:02:42,580 --> 00:02:46,130 KT: actually built. It had a well 38 00:02:46,494 --> 00:02:50,304 KT: that you would get water from and it was everything 39 00:02:50,315 --> 00:02:52,154 KT: and more that we envisioned. 40 00:02:52,163 --> 00:02:57,095 Suze: And nothing had been changed over all these years, 41 00:02:57,404 --> 00:03:01,163 KT: Including the wait, including the little itty bitty tiny bed 42 00:03:01,470 --> 00:03:04,309 KT: that she had in her bedroom with her brother. These 43 00:03:04,320 --> 00:03:08,029 KT: two little skinny wooden beds and Sammy's like, you know, 44 00:03:08,038 --> 00:03:13,660 KT: 5 ft seven or eight. And she's gorgeous. And here 45 00:03:13,669 --> 00:03:15,690 KT: she was in, I should post a picture of her 46 00:03:15,699 --> 00:03:18,570 KT: sitting on the edge of this little bed that she 47 00:03:18,580 --> 00:03:20,779 KT: grew up in as a child. 48 00:03:20,899 --> 00:03:24,520 KT: The same sheets, kind of same Snoopy sheets sheets. 49 00:03:24,619 --> 00:03:30,449 Suze: But anyway, fabulous. So fabulous. Anyway, we're glad to be 50 00:03:30,460 --> 00:03:33,109 Suze: home and it was a great adventure for you. 51 00:03:33,119 --> 00:03:35,520 KT: Can't wait to go back to Spain. We just love 52 00:03:35,529 --> 00:03:36,000 KT: it there. 53 00:03:36,009 --> 00:03:40,160 Suze: So, KT, before we begin, where you're asking me questions 54 00:03:40,669 --> 00:03:43,089 Suze: is I want you all to know if you don't 55 00:03:43,100 --> 00:03:47,089 Suze: already know that Alliant Credit Union while we were gone 56 00:03:47,100 --> 00:03:52,940 Suze: did have a rate decrease on their one year CD. 57 00:03:53,229 --> 00:04:01,009 Suze: And it's now 4.60 for amounts under $75,000 and 4.65 58 00:04:01,104 --> 00:04:05,884 Suze: for amounts of $75,000 or more. If you compare that, 59 00:04:05,895 --> 00:04:08,925 Suze: by the way to the one year treasury, which is 60 00:04:08,934 --> 00:04:13,255 Suze: currently at about 3.92 depending on the state that you 61 00:04:13,264 --> 00:04:17,464 Suze: live in and your income tax bracket. That's still a great, 62 00:04:17,475 --> 00:04:21,394 Suze: great deal. Also, I just wanna say, remember 63 00:04:22,010 --> 00:04:27,350 Suze: that the 12 month CD at Alliant Credit Union is 64 00:04:27,359 --> 00:04:32,149 Suze: good for anywhere from 12 to 17 months and 30 days. 65 00:04:32,160 --> 00:04:35,049 Suze: You choose your maturity, you have to talk to them 66 00:04:35,059 --> 00:04:38,149 Suze: to make sure that you're able to do that. So 67 00:04:38,160 --> 00:04:42,790 Suze: if you compare that and you get it for 17 68 00:04:42,799 --> 00:04:46,829 Suze: months and 30 days, now we're talking because the two 69 00:04:46,850 --> 00:04:51,910 Suze: year treasury is at 3.5% right now, right around there. 70 00:04:52,109 --> 00:04:55,630 Suze: So you should still go to my alliant.com. If you 71 00:04:55,640 --> 00:04:58,269 Suze: want to lock in a good rate for that period 72 00:04:58,279 --> 00:05:01,308 Suze: of time, I would take advantage of it if I 73 00:05:01,320 --> 00:05:03,178 Suze: were you? What do you got for me, KT? 74 00:05:03,459 --> 00:05:06,910 KT: My first question, Suze is from Scott. 75 00:05:07,070 --> 00:05:07,570 Suze: Scott. 76 00:05:08,149 --> 00:05:12,200 KT: He said, Suze and KT when my dad passed away, 77 00:05:12,209 --> 00:05:16,329 KT: my mom put their home into a Tod to my 78 00:05:16,339 --> 00:05:19,089 KT: two sisters. And I, so that's a TOD KT. 79 00:05:19,100 --> 00:05:19,820 Suze: Tell everyone... 80 00:05:19,829 --> 00:05:21,558 KT: It's transfer on death account. 81 00:05:21,589 --> 00:05:23,059 Suze: Ding, ding, ding, ding, ding, ding, ding, ding, ding, ding, 82 00:05:24,660 --> 00:05:28,130 KT: Listen to this everyone. So Scott's oldest sister said to 83 00:05:28,140 --> 00:05:31,679 KT: him privately. I don't want anything to do with this house. 84 00:05:31,690 --> 00:05:35,040 KT: Pay me my third. The home in question is a 85 00:05:35,049 --> 00:05:41,980 KT: lake home with an assessed value exceeding $750,000. And, and 86 00:05:41,988 --> 00:05:45,118 KT: this is a little bit interesting. He said, Suze, I 87 00:05:45,130 --> 00:05:49,390 KT: feel immoral asking but can I open a term life 88 00:05:49,399 --> 00:05:51,079 KT: policy for my mom 89 00:05:51,329 --> 00:05:54,989 KT: so I can cover the cost to buy out my sisters? 90 00:05:55,250 --> 00:05:59,109 KT: I don't think that's immoral. So anyway, that's his question. 91 00:05:59,119 --> 00:06:02,159 Suze: Scott, here's what I would tell you. Now, it's not 92 00:06:02,170 --> 00:06:07,109 Suze: an immoral question, but I'm not sure it solves your problem. 93 00:06:07,209 --> 00:06:10,659 Suze: And let me tell you why a term life insurance 94 00:06:10,670 --> 00:06:14,659 Suze: policy is only good for a specific term. 95 00:06:14,980 --> 00:06:16,928 Suze: So let's say, I don't know how old you are 96 00:06:16,940 --> 00:06:20,700 Suze: right now, but let's say your mother is older. Let's 97 00:06:20,709 --> 00:06:23,899 Suze: say she's in her seventies and maybe she's gonna live 98 00:06:23,910 --> 00:06:26,399 Suze: to her nineties, possibly even 100. 99 00:06:27,279 --> 00:06:31,000 Suze: There's no way that a term policy at this point 100 00:06:31,010 --> 00:06:33,709 Suze: in time, if that's how old she is, is going 101 00:06:33,720 --> 00:06:37,859 Suze: to be cost effective. You may find that you pay 102 00:06:37,869 --> 00:06:41,029 Suze: more in premiums over a long period of time 103 00:06:41,738 --> 00:06:44,589 Suze: than you do if you were just to save that money, 104 00:06:44,600 --> 00:06:48,339 Suze: possibly to have the money to buy out your sister 105 00:06:48,428 --> 00:06:52,450 Suze: at the time. So I don't think a term policy 106 00:06:52,459 --> 00:06:56,260 Suze: is the way to go. Remember, term life insurance is 107 00:06:56,269 --> 00:06:57,959 Suze: meant to only be there during 108 00:06:58,119 --> 00:07:03,459 Suze: younger years before you've had time to accumulate assets and 109 00:07:03,470 --> 00:07:06,279 Suze: it allows you to do so at a very cost 110 00:07:06,290 --> 00:07:09,380 Suze: effective rate, it's not meant to be your whole life. 111 00:07:09,640 --> 00:07:12,739 Suze: So if I were you, that isn't how I would 112 00:07:12,750 --> 00:07:15,809 Suze: solve this problem. I mean, I could go on and 113 00:07:15,820 --> 00:07:18,809 Suze: on about ways that you could solve it, but that 114 00:07:18,820 --> 00:07:22,059 Suze: wasn't your question to me. So, no, I don't think 115 00:07:22,070 --> 00:07:25,980 Suze: your term life insurance policy will do it. I just don't. 116 00:07:25,989 --> 00:07:26,600 Suze: All right. 117 00:07:27,040 --> 00:07:31,179 KT: So Suze, the next question is from um a listener 118 00:07:31,190 --> 00:07:33,799 KT: that said, I just got my must have documents and 119 00:07:33,809 --> 00:07:38,649 KT: started filling them out. It's a little surreal thinking about passing. 120 00:07:38,880 --> 00:07:42,079 KT: I read that I may wanna make my trust the 121 00:07:42,089 --> 00:07:44,250 KT: beneficiary for all of my bank 122 00:07:44,570 --> 00:07:48,559 KT: and retirement accounts. Is this accurate or would it be 123 00:07:48,570 --> 00:07:53,350 KT: better to make some or all of them POD provided? 124 00:07:53,359 --> 00:07:55,839 KT: I have no debt or expenses after death? 125 00:07:55,850 --> 00:07:58,959 Suze: So here's my question, KT, does he say or she 126 00:07:58,970 --> 00:07:59,440 Suze: say 127 00:08:00,179 --> 00:08:02,890 Suze: how old they are? Do, do they say if they're 128 00:08:02,899 --> 00:08:04,200 Suze: married anything? 129 00:08:04,209 --> 00:08:07,000 KT: No, but they're just filling them out for the first time. 130 00:08:07,019 --> 00:08:10,160 Suze: So here's what I want everybody to know about. The 131 00:08:10,170 --> 00:08:13,799 Suze: must have documents and what are the must have documents. 132 00:08:13,959 --> 00:08:16,640 Suze: They are a living revocable trust, 133 00:08:17,045 --> 00:08:20,024 Suze: advance directive and durable power of attorney for health care, 134 00:08:20,035 --> 00:08:24,695 Suze: a will and a financial power of attorney. Those are 135 00:08:24,704 --> 00:08:29,195 Suze: four documents that you must have. And if you want 136 00:08:29,204 --> 00:08:31,714 Suze: those by the way, go to must have docs.com and 137 00:08:31,725 --> 00:08:33,844 Suze: take a look because that's where you can get them. 138 00:08:34,265 --> 00:08:39,224 Suze: What you have to understand is if you are married, 139 00:08:39,809 --> 00:08:43,010 Suze: you never ever, ever want the trust to be the 140 00:08:43,020 --> 00:08:49,770 Suze: beneficiary of any retirement account or any HSA account. Let's 141 00:08:49,780 --> 00:08:52,739 Suze: be clear on that. So when this person says that 142 00:08:52,750 --> 00:08:54,869 Suze: it should be my beneficiary for all my bank and 143 00:08:54,880 --> 00:08:58,869 Suze: retirement accounts, not if you are married 144 00:08:59,239 --> 00:09:02,510 Suze: again, I am underlining this. You do not want your 145 00:09:02,520 --> 00:09:06,460 Suze: trust account to be the primary beneficiary if you are 146 00:09:06,469 --> 00:09:12,739 Suze: married of any retirement accounts and or an HSA insurance account. 147 00:09:12,750 --> 00:09:16,979 Suze: So here's what you all need to know as well. Sure, 148 00:09:16,989 --> 00:09:20,099 Suze: you can make your accounts and everything pay on death. 149 00:09:20,510 --> 00:09:24,140 Suze: But as I've said, many times, what if you don't die? 150 00:09:24,489 --> 00:09:27,380 Suze: What if you become incapacitated, 151 00:09:27,979 --> 00:09:30,880 Suze: then the pay on death account isn't going to help 152 00:09:30,890 --> 00:09:33,539 Suze: you who's going to be able to access that money 153 00:09:33,549 --> 00:09:37,020 Suze: if you need it. A living trust with an incapacity 154 00:09:37,030 --> 00:09:40,880 Suze: clause in it, which the must have documents have is 155 00:09:40,890 --> 00:09:44,799 Suze: the way to go bar. None. Just telling you you 156 00:09:44,809 --> 00:09:49,500 Suze: want to avoid problems. Get the must have documents. All right, KT. 157 00:09:49,950 --> 00:09:51,919 KT: So the, the next questions from Nicole... 158 00:09:51,929 --> 00:09:53,479 Suze: Doesn't my voice sound deep today? 159 00:09:53,489 --> 00:09:56,760 KT: It sounds better. Yeah, it was a little bit hoarse 160 00:09:57,150 --> 00:10:00,169 KT: yesterday. So I'm glad today it's smoother. 161 00:10:00,179 --> 00:10:01,650 Suze: Tell them how I ran. 162 00:10:01,989 --> 00:10:05,479 KT: Oh my God, Suze. And I had a connection from 163 00:10:05,489 --> 00:10:10,450 KT: Majorca to Madrid. Madrid, Miami and the connection in Madrid 164 00:10:10,460 --> 00:10:13,109 KT: was less than 45 minutes. The plane got there a 165 00:10:13,119 --> 00:10:14,729 KT: little bit late but still. 166 00:10:15,039 --> 00:10:18,140 KT: So they changed the gate as soon as we comfortably 167 00:10:18,150 --> 00:10:21,900 KT: arrived to it, to the other side of the airport 168 00:10:21,909 --> 00:10:24,830 KT: with a train with a quarter of a mile of 169 00:10:24,840 --> 00:10:29,030 KT: walking and with all those floor escalators for another half 170 00:10:29,039 --> 00:10:34,219 KT: a mile. Suze was the marathon woman. Unbelievable. And we 171 00:10:34,229 --> 00:10:36,609 KT: were the last people there as their 172 00:10:36,729 --> 00:10:38,489 Suze: They held it. 173 00:10:38,630 --> 00:10:41,109 KT: Yeah, they held the plane and I said, please, please, 174 00:10:41,119 --> 00:10:43,260 KT: we need to make this flight and she looked at me. 175 00:10:43,270 --> 00:10:46,909 KT: She said, oh, Senora, follow me and we ran and 176 00:10:46,919 --> 00:10:50,239 KT: Suze was running like a bunny. Never saw her. I 177 00:10:50,250 --> 00:10:54,760 KT: never saw you run like that in the 24 years 178 00:10:54,770 --> 00:10:55,590 KT: we've been together. 179 00:10:55,599 --> 00:10:58,299 Suze: Because the thought of missing that flight 180 00:10:58,979 --> 00:11:01,570 Suze: was more than I could deal with. All right, go on. 181 00:11:01,650 --> 00:11:06,239 KT: My next question is from Nicole. She says, hi KT. 182 00:11:06,250 --> 00:11:09,429 KT: She wrote it to me. Do you know when Fitz 183 00:11:09,440 --> 00:11:11,819 KT: will have a plan to advise us. So Fitz is 184 00:11:11,830 --> 00:11:13,390 KT: Keith Fitzgerald everyone. 185 00:11:13,669 --> 00:11:16,789 KT: And she said, I've been waiting ever since Suze mentioned 186 00:11:16,799 --> 00:11:20,189 KT: that possibility. Money market is still good, but I have 187 00:11:20,200 --> 00:11:23,609 KT: a feeling it will tumble next week. I can't wait 188 00:11:23,619 --> 00:11:27,000 KT: for your answer. So I'm not gonna answer it, Suze. 189 00:11:27,010 --> 00:11:28,010 KT: You tell Nicole. 190 00:11:28,020 --> 00:11:31,449 Suze: So first of all Nicole money market rates are not 191 00:11:31,460 --> 00:11:36,409 Suze: going to tumble next week. So don't freak out about that. Now, 192 00:11:37,109 --> 00:11:41,130 Suze: hundreds of you are writing and asking that question. So 193 00:11:41,140 --> 00:11:44,569 Suze: what did I do? I sent them all to Keith 194 00:11:44,760 --> 00:11:47,010 Suze: and said, what do you want me to tell people, Keith? 195 00:11:47,020 --> 00:11:50,799 Suze: This is in your hands. This is your brilliant brainchild 196 00:11:50,809 --> 00:11:54,210 Suze: of how it works. And here is what he wrote 197 00:11:54,349 --> 00:11:57,968 Suze: the back. He said, tell them that we're down to 198 00:11:57,979 --> 00:12:02,130 Suze: brass tacks and on the home stretch, we are quadruple 199 00:12:02,140 --> 00:12:06,169 Suze: checking the math to be sure it's right. 200 00:12:06,609 --> 00:12:09,859 Suze: We need to make sure that every research point is 201 00:12:09,869 --> 00:12:14,630 Suze: backed up quantitatively and we are doing a final review 202 00:12:14,640 --> 00:12:19,520 Suze: legally to ensure the appropriate protections are in place and 203 00:12:19,530 --> 00:12:23,890 Suze: that the language is sufficient to clearly delineate what's happening 204 00:12:23,900 --> 00:12:27,960 Suze: and the boundaries associated with users who sign up. I 205 00:12:27,969 --> 00:12:28,829 Suze: am quoting 206 00:12:28,940 --> 00:12:34,789 Suze: Mr Keith Fitzgerald there. So I'm bugging him. KT is 207 00:12:34,799 --> 00:12:39,439 Suze: bugging him, right? Everybody's bugging him, but he is a 208 00:12:39,450 --> 00:12:44,960 Suze: man of perfection. And until he knows that every single 209 00:12:44,969 --> 00:12:49,919 Suze: thing works the way it's supposed to, it's not gonna happen. 210 00:12:49,929 --> 00:12:54,299 Suze: But I do think it is probable that in October 211 00:12:54,309 --> 00:12:55,309 Suze: you may see it 212 00:12:56,489 --> 00:12:59,059 Suze: and if not October, I would almost say for sure, 213 00:12:59,070 --> 00:13:02,609 Suze: by November, almost for sure, but we'll see what happens. 214 00:13:02,619 --> 00:13:03,109 Suze: All right. 215 00:13:03,479 --> 00:13:05,919 KT: Next is from Teresa or Teresa... 216 00:13:06,099 --> 00:13:08,929 Suze: Wait... I have to say, right. And partly it's my 217 00:13:08,940 --> 00:13:12,358 Suze: fault because when Keith talks to me about it, everybody 218 00:13:12,369 --> 00:13:13,039 Suze: I keep saying. 219 00:13:13,159 --> 00:13:16,659 Suze: But what if, but what if they want to do this? 220 00:13:16,669 --> 00:13:19,260 Suze: What if that, so he has to keep going back 221 00:13:19,270 --> 00:13:21,739 Suze: and redoing the math and everything to make sure that 222 00:13:21,750 --> 00:13:24,599 Suze: every single one of you will be taken care of. 223 00:13:24,609 --> 00:13:25,280 Suze: All right, go on. 224 00:13:25,289 --> 00:13:28,619 KT: OK. This, this is my favorite kind of question. Everyone 225 00:13:28,770 --> 00:13:29,820 KT: from Teresa. 226 00:13:30,109 --> 00:13:33,580 KT: You ladies rock. I heard I can do a one 227 00:13:33,590 --> 00:13:39,489 KT: time rollover from a traditional IRA to my HSA account 228 00:13:39,500 --> 00:13:42,130 KT: tax free if so how? 229 00:13:42,219 --> 00:13:46,289 Suze: You are absolutely right, My dear Teresa. One time 230 00:13:46,405 --> 00:13:50,104 Suze: and one time only if you wanna use the money 231 00:13:50,114 --> 00:13:53,973 Suze: in an IRA, a traditional IRA. So you've never paid 232 00:13:53,984 --> 00:13:57,544 Suze: taxes on it or even a pretext, IRA rollover that 233 00:13:57,554 --> 00:14:01,304 Suze: you may have, you can take that money and use 234 00:14:01,315 --> 00:14:02,585 Suze: it to fund 235 00:14:03,179 --> 00:14:07,210 Suze: up to the max if you want of the HSA 236 00:14:07,739 --> 00:14:12,099 Suze: that you have and it is absolutely tax free. So 237 00:14:12,109 --> 00:14:13,840 Suze: if you want to know how to do it in 238 00:14:13,849 --> 00:14:17,900 Suze: your particular company, I would ask your HR person how 239 00:14:17,909 --> 00:14:18,950 Suze: to do it. All right. 240 00:14:19,250 --> 00:14:23,869 KT: OK. So on the theme of 401ks, this is from Jenny. 241 00:14:23,960 --> 00:14:27,859 KT: My employer is being bought by another company. I have 242 00:14:27,869 --> 00:14:32,210 KT: a 401k with Fidelity. They're switching to a 403 B 243 00:14:32,219 --> 00:14:35,969 KT: with Empowered. I think that was formally prudential. Should I 244 00:14:35,979 --> 00:14:39,909 KT: roll over or start a new retirement account? I don't 245 00:14:39,919 --> 00:14:42,570 KT: know much about 403bs. Thank you. A 246 00:14:42,580 --> 00:14:47,190 Suze: 403 B works essentially the same way as a 401k, really... 247 00:14:47,679 --> 00:14:51,539 Suze: That's what you need to know. However, if it were 248 00:14:51,549 --> 00:14:52,330 Suze: me 249 00:14:53,140 --> 00:14:57,719 Suze: and I had a 401k with Fidelity and now they're 250 00:14:57,729 --> 00:15:01,340 Suze: switching it to a 403b within power. What I want 251 00:15:01,349 --> 00:15:05,010 Suze: you to think about, however, is if you did an 252 00:15:05,020 --> 00:15:09,890 Suze: IRA rollover with the 401k that you have at Fidelity 253 00:15:10,309 --> 00:15:14,039 Suze: and start a new retirement account there, you also have 254 00:15:14,049 --> 00:15:16,719 Suze: the ability if you want to start converting to a 255 00:15:16,729 --> 00:15:21,059 Suze: Roth IRA and your investment options will be far grander 256 00:15:21,070 --> 00:15:25,130 Suze: than any 403b with E hat they'll offer you. But 257 00:15:25,140 --> 00:15:27,369 Suze: if you make a lot of money 258 00:15:27,960 --> 00:15:32,909 Suze: and you want to do a backdoor Roth IRA one day, 259 00:15:32,989 --> 00:15:38,059 Suze: if you have a traditional IRA that you rolled over 260 00:15:38,070 --> 00:15:40,700 Suze: and you're not gonna be able to do a backdoor Roth. 261 00:15:40,780 --> 00:15:43,630 Suze: So therefore you might just wanna leave it with the 262 00:15:43,640 --> 00:15:47,590 Suze: 403b with Empower just depends how much money you make 263 00:15:47,599 --> 00:15:50,500 Suze: a year, how much money you think you're gonna make 264 00:15:50,510 --> 00:15:53,780 Suze: in the future. And if you like the investment options 265 00:15:53,789 --> 00:15:56,780 Suze: and the fees that empower is going to charge you 266 00:15:57,580 --> 00:16:00,840 Suze: other than, and, and actually the amount of money that 267 00:16:00,849 --> 00:16:03,429 Suze: you have in there because if there isn't a lot 268 00:16:03,440 --> 00:16:06,090 Suze: of money in there, then, oh, you bet I would 269 00:16:06,099 --> 00:16:08,989 Suze: do an IRA rollover and then convert it to a 270 00:16:09,000 --> 00:16:10,719 Suze: Roth IRA. All right. 271 00:16:11,239 --> 00:16:15,150 KT: Next question, Suze is from JJ. I've rolled over a 272 00:16:15,159 --> 00:16:18,919 KT: 401k to an IRA and the money is now sitting 273 00:16:18,929 --> 00:16:22,900 KT: in cash instead of the old mutual funds since they 274 00:16:22,909 --> 00:16:29,299 KT: were unavailable in the IRA. With it being several $100,000... 275 00:16:29,309 --> 00:16:31,619 KT: our listeners are getting so rich. It's not even 276 00:16:33,255 --> 00:16:38,476 KT: $100,000. Is it better to quickly reinvest it all or 277 00:16:38,486 --> 00:16:42,895 KT: try to do dollar cost averaging dollar cost. Averaging was 278 00:16:43,325 --> 00:16:48,486 KT: several $100,000. I, I mean, I'm shocked. Go ahead. 279 00:16:48,685 --> 00:16:49,585 Suze: What are you shocked about? 280 00:16:49,695 --> 00:16:52,926 KT: The amount of money all these questions I'm getting there. 281 00:16:52,935 --> 00:16:54,546 KT: They are getting wealthier and... 282 00:16:54,812 --> 00:16:57,921 Suze: That's happens when you listen to me for the past 20 years. 283 00:16:58,052 --> 00:17:01,012 Suze: And for those of you who are new to this podcast, 284 00:17:01,161 --> 00:17:04,491 Suze: you can also watch the Suze Orman show that all 285 00:17:04,501 --> 00:17:08,472 Suze: of these people most likely watched before the podcast and 286 00:17:08,482 --> 00:17:12,362 Suze: it's on Freevee so you might want to take advantage 287 00:17:12,371 --> 00:17:15,222 Suze: of that as well. But here's what I would tell 288 00:17:15,232 --> 00:17:16,472 Suze: you JJ. 289 00:17:17,020 --> 00:17:20,000 Suze: These markets are a little precarious right now. Do I 290 00:17:20,010 --> 00:17:22,920 Suze: think they're gonna continue up? Oh, you bet I do. 291 00:17:23,130 --> 00:17:28,290 Suze: But nothing goes straight up. So for you to take 292 00:17:28,300 --> 00:17:33,689 Suze: a few $100,000 and invest it. All right. Now, I 293 00:17:33,699 --> 00:17:37,040 Suze: think would be the biggest mistake you could ever make. 294 00:17:37,130 --> 00:17:39,469 Suze: Pick out a few things that you want 295 00:17:40,030 --> 00:17:43,550 Suze: and you can invest now and then just see what 296 00:17:43,560 --> 00:17:47,020 Suze: happens and then little by little dollar cost, average this 297 00:17:47,030 --> 00:17:51,869 Suze: money into the market. So, bottom line, my dear one, 298 00:17:52,000 --> 00:17:55,069 Suze: I would be dollar cost averaging slowly, by the way 299 00:17:55,079 --> 00:17:59,719 Suze: at this moment and not investing all at once. What 300 00:17:59,729 --> 00:18:00,880 Suze: do you got next, KT? 301 00:18:00,979 --> 00:18:04,650 KT: From Karen? Hi KT. Pick me, pick me, pick me. 302 00:18:05,849 --> 00:18:08,239 KT: I love when they write that to me. Over the 303 00:18:08,250 --> 00:18:12,770 KT: last several years, I've accumulated a 12 month prudent reserve 304 00:18:12,849 --> 00:18:16,560 KT: and that amounts to a lot of money. 75,000 in 305 00:18:16,569 --> 00:18:20,310 KT: one account and 30,000 in another. Good for you, Karen. 306 00:18:20,739 --> 00:18:23,790 KT: I've had the money in high yield savings accounts so 307 00:18:23,800 --> 00:18:28,869 KT: that money is made 5% interest. However, as the interest 308 00:18:28,880 --> 00:18:30,349 KT: rates are gonna come down, 309 00:18:30,609 --> 00:18:34,530 KT: I'm wondering what to do with that prudent reserve. I 310 00:18:34,540 --> 00:18:37,239 KT: know it's supposed to be readily available, but it seems 311 00:18:37,250 --> 00:18:40,530 KT: like such a waste not to make great interest on 312 00:18:40,540 --> 00:18:44,239 KT: that amount of money, Suze, what should I do? I 313 00:18:44,650 --> 00:18:47,319 KT: love you guys. She said I love you guys. 314 00:18:47,329 --> 00:18:50,739 Suze: Karen. First of all, I don't think you're going to 315 00:18:50,925 --> 00:18:54,583 Suze: see the 5% or the 4.5%. I doubt that you're 316 00:18:54,594 --> 00:18:58,984 Suze: really at 5% right now. Maybe you're at 4.5% go 317 00:18:58,994 --> 00:19:04,064 Suze: down immediately to nothing. So everybody needs to stop thinking 318 00:19:04,074 --> 00:19:08,224 Suze: that interest rates going down, it's gonna go down bam 319 00:19:08,244 --> 00:19:11,145 Suze: and in a month from now they're gonna be at 0% again. 320 00:19:11,400 --> 00:19:15,430 Suze: They're gonna go down little by little because this is 321 00:19:15,439 --> 00:19:19,938 Suze: money for an emergency fund. You cannot lock it up. 322 00:19:19,949 --> 00:19:22,530 Suze: You have to be able to get at it any 323 00:19:22,540 --> 00:19:26,699 Suze: time that you want. You might, if you want to 324 00:19:26,709 --> 00:19:30,250 Suze: make sure that you're getting 4% or close to 4% 325 00:19:30,489 --> 00:19:34,099 Suze: get the one year treasury bill right now, put the 326 00:19:34,109 --> 00:19:38,260 Suze: money in there, you can sell them at any time. 327 00:19:38,270 --> 00:19:40,939 Suze: If interest rates do go down, 328 00:19:41,449 --> 00:19:44,369 Suze: you'll probably get back at least what you put in 329 00:19:44,380 --> 00:19:48,310 Suze: when you sell it. But that way you've locked in 4% 330 00:19:48,479 --> 00:19:52,459 Suze: for the entire year and then we see what happens there. 331 00:19:52,489 --> 00:19:55,290 Suze: You really can't lock it in for longer than that. 332 00:19:55,359 --> 00:19:59,109 Suze: Only because it's an emergency fund and maybe one year 333 00:19:59,119 --> 00:20:02,069 Suze: from now the markets will be in such a place 334 00:20:02,079 --> 00:20:04,109 Suze: and you'll have more money that maybe you take that 335 00:20:04,119 --> 00:20:05,699 Suze: money and we start to invest it. 336 00:20:05,949 --> 00:20:10,020 Suze: But for right now, don't freak out about something going 337 00:20:10,030 --> 00:20:14,520 Suze: from 5% to 4% in your case. That's about a 338 00:20:14,530 --> 00:20:18,489 Suze: $1300 difference or $100 a month. 339 00:20:18,800 --> 00:20:21,130 Suze: And even though that's a lot of money, it is, 340 00:20:21,140 --> 00:20:25,280 Suze: the situation never forget just a while ago, not that 341 00:20:25,290 --> 00:20:31,469 Suze: long ago. Interest rates were at what? 0% 0.1% many 342 00:20:31,479 --> 00:20:34,619 Suze: of you, by the way are still in bank accounts 343 00:20:34,969 --> 00:20:40,579 Suze: where you're only getting 0.1% or that, what are you doing? 344 00:20:40,589 --> 00:20:43,119 Suze: That is just nuts. Anyway. Go on KT. 345 00:20:43,130 --> 00:20:45,060 KT: All right. Next is from Melissa. 346 00:20:45,369 --> 00:20:49,030 KT: Hi, Suze. I understand you're a big fan of dollar 347 00:20:49,040 --> 00:20:53,959 KT: cost averaging. I will be receiving about $10,000 for a 348 00:20:53,969 --> 00:20:58,989 KT: car accident settlement within the next few weeks and $30,000 349 00:20:59,000 --> 00:21:03,250 KT: next September, I'd like to invest all of this money 350 00:21:03,260 --> 00:21:08,119 KT: in dividend ETFs, because I have no debt. I'm contributing 12% 351 00:21:08,130 --> 00:21:12,560 KT: to my 401k and I have a six month emergency fund. 352 00:21:12,930 --> 00:21:16,270 KT: Do I put everything in a high yield savings account 353 00:21:16,280 --> 00:21:20,859 KT: and then invest maybe $1000 at a time every week 354 00:21:20,920 --> 00:21:23,839 KT: into a dividend ETF or what's the best way to 355 00:21:23,849 --> 00:21:28,510 KT: go about dollar cost averaging with large sums of money? 356 00:21:28,560 --> 00:21:29,750 Suze: Given that you only have 357 00:21:29,920 --> 00:21:33,938 Suze: a six month emergency fund when I have been telling 358 00:21:33,949 --> 00:21:37,310 Suze: you now for years that everybody should have an 8 359 00:21:37,319 --> 00:21:41,500 Suze: to 12 month emergency fund. Looks to me like girlfriend, 360 00:21:41,530 --> 00:21:43,790 Suze: you're gonna be taking this money and putting it in 361 00:21:43,800 --> 00:21:46,659 Suze: a high yield savings account or money market account 362 00:21:46,910 --> 00:21:50,180 Suze: and you're gonna add the $30,000 to it again when 363 00:21:50,189 --> 00:21:52,890 Suze: it comes in a year from now. And then you're 364 00:21:52,900 --> 00:21:56,280 Suze: gonna see, is that an eight or 12 month emergency fund? 365 00:21:56,420 --> 00:21:59,170 Suze: And if it is, and there's anything extra then we'll 366 00:21:59,180 --> 00:22:02,310 Suze: talk about dollar cost averaging into things at that time. 367 00:22:02,319 --> 00:22:03,319 Suze: All right, KT. 368 00:22:03,329 --> 00:22:07,579 KT: Ok. Next question is from Pat and Pat is asking 369 00:22:07,589 --> 00:22:09,050 KT: Suze and KT. 370 00:22:10,270 --> 00:22:13,849 KT: I have a question about IRMAA. So I have to 371 00:22:13,859 --> 00:22:16,800 KT: tell you all I didn't know what IRMAA was, so 372 00:22:16,810 --> 00:22:21,349 KT: I looked it up. It's an Income Related Monthly Adjusted 373 00:22:21,359 --> 00:22:25,000 KT: Amount from Medicare. Suze will tell you what that means. 374 00:22:25,229 --> 00:22:27,729 KT: But this is a question about IRMAA... 375 00:22:28,150 --> 00:22:28,729 Suze: You pay IRMAA. 376 00:22:28,890 --> 00:22:30,819 KT: My husband, my husband... 377 00:22:30,839 --> 00:22:33,979 Suze: Did you know that you pay IRMAA every single year? 378 00:22:35,099 --> 00:22:35,909 Suze: So do I. 379 00:22:37,069 --> 00:22:38,290 Suze: Alright. Go on, go on. 380 00:22:39,959 --> 00:22:42,800 KT: IRMAA Must be rich man. All right, my husband and I 381 00:22:42,810 --> 00:22:45,880 KT: are selling our rental property as we no longer want 382 00:22:45,890 --> 00:22:49,479 KT: to be landlords. Nor do we want to invest in 383 00:22:49,489 --> 00:22:54,589 KT: other options that said we are prepared to pay the taxes. No, 384 00:22:54,599 --> 00:22:56,819 KT: we will have to pay IRMMA for a year and 385 00:22:56,829 --> 00:22:58,550 KT: just wanna be totally done. 386 00:22:59,109 --> 00:23:02,609 KT: So then the question is, do I have to wait 387 00:23:02,619 --> 00:23:06,550 KT: for the two year Look back with Medicare to charge 388 00:23:06,560 --> 00:23:09,770 KT: the IRMAA fees? I don't know what that means. 389 00:23:09,780 --> 00:23:13,089 Suze: All right, let's see if I can explain this to you. 390 00:23:13,339 --> 00:23:17,939 Suze: As you know everybody when you turn 65 which is 391 00:23:17,949 --> 00:23:21,540 Suze: so fabulous. You qualify for Medicare 392 00:23:22,339 --> 00:23:25,949 Suze: and I can't tell you how incredible Medicare is when 393 00:23:25,959 --> 00:23:28,150 Suze: it comes to health needs. Do you know that that 394 00:23:28,160 --> 00:23:31,640 Suze: entire operation that I went through and everything I did 395 00:23:31,650 --> 00:23:34,958 Suze: not pay one penny for it. 396 00:23:34,969 --> 00:23:36,719 KT: What do you think that would have cost? 397 00:23:37,449 --> 00:23:38,919 KT: Well over a million bucks. 398 00:23:38,969 --> 00:23:41,599 Suze: Well over a million, over a million for what they 399 00:23:41,609 --> 00:23:43,510 Suze: had to do and how long they had to do it. 400 00:23:44,119 --> 00:23:48,208 Suze: I mean, I'm sure it was over a million dollars anyway. So, 401 00:23:48,219 --> 00:23:50,030 Suze: what is IRMAA? 402 00:23:50,040 --> 00:23:52,410 KT: Wait, so she paid 0. 403 00:23:52,420 --> 00:23:53,349 Suze: You know that. 404 00:23:53,599 --> 00:23:58,550 KT: I know I'm telling everyone listening. That's what Medicare is incredibly, 405 00:23:58,560 --> 00:24:01,989 KT: incredibly important every year. Let's hope it never goes away. 406 00:24:02,000 --> 00:24:04,319 Suze: So you turn 65 407 00:24:04,750 --> 00:24:09,199 Suze: and Medicare has a part A and a part B 408 00:24:09,760 --> 00:24:12,629 Suze: and when it comes to part B, you pay a 409 00:24:12,640 --> 00:24:17,290 Suze: monthly premium for it based on your income 410 00:24:17,939 --> 00:24:21,819 Suze: and your income depending on what it is, you could 411 00:24:21,829 --> 00:24:24,750 Suze: pay like up to $500 a month. I think we 412 00:24:24,760 --> 00:24:28,829 Suze: pay 526 a month. KT out of our social security 413 00:24:28,839 --> 00:24:31,199 Suze: check for Medicare. Part B 414 00:24:31,599 --> 00:24:38,660 Suze: but Irma is really, it's a monthly adjusted amount for Medicare, 415 00:24:39,000 --> 00:24:44,698 Suze: but IRMAA is based on your modified adjusted gross income 416 00:24:44,709 --> 00:24:52,020 Suze: from two years prior. So they're always looking back two years. 417 00:24:52,530 --> 00:24:55,790 Suze: And so therefore, uh you know, if you had an 418 00:24:55,800 --> 00:25:00,410 Suze: income sale from a piece of property in 2024 the 419 00:25:00,420 --> 00:25:04,910 Suze: income from that sale in this case would generally affect 420 00:25:04,920 --> 00:25:08,160 Suze: her 2026 Medicare premium. 421 00:25:09,520 --> 00:25:10,300 KT: I got it. 422 00:25:10,599 --> 00:25:12,889 Suze: Now, here's the thing. However, 423 00:25:13,709 --> 00:25:17,770 Suze: with social security, if you have what's called a life 424 00:25:17,780 --> 00:25:22,500 Suze: changing event and I think it's form. Oh God, are 425 00:25:22,510 --> 00:25:25,599 Suze: you gonna quote me on this social security at SS 426 00:25:25,609 --> 00:25:29,800 Suze: A dash 44. Ok. I think that's it. Right. 427 00:25:29,989 --> 00:25:32,698 KT: You're probably right because you memorize numbers. 428 00:25:32,849 --> 00:25:38,209 KT: Anyway, you can request that. Social security adjusts your IRMAA 429 00:25:38,270 --> 00:25:41,199 KT: based on your current income. 430 00:25:42,020 --> 00:25:47,760 Suze: Usually if there's a significant reduction to a qualifying event. So, 431 00:25:48,030 --> 00:25:50,150 Suze: and I have to tell you the sale of a 432 00:25:50,160 --> 00:25:56,199 Suze: property qualifies for that. So Patricia, if I were you, 433 00:25:56,209 --> 00:26:00,310 Suze: if you want the IRMAA increase to start in 2025 434 00:26:00,319 --> 00:26:03,119 Suze: and be done after that one year, just 435 00:26:03,204 --> 00:26:07,285 Suze: you need to contact them and see if in fact 436 00:26:07,354 --> 00:26:12,925 Suze: it qualifies or what happens with 2024 what, 2022 whatever 437 00:26:12,935 --> 00:26:16,784 Suze: it is you need to contact them and see if 438 00:26:16,795 --> 00:26:18,864 Suze: it will help you. All right. 439 00:26:19,045 --> 00:26:22,185 KT: Ok. This is my final question from... 440 00:26:22,194 --> 00:26:26,665 Suze: Do you wanna know something here? I wouldn't necessarily wanna 441 00:26:26,675 --> 00:26:29,545 Suze: get it done. Oh, I, you just handed me her 442 00:26:29,555 --> 00:26:31,694 Suze: income tax... her email. 443 00:26:32,119 --> 00:26:34,040 Suze: Did you see on the bottom? It says she wants 444 00:26:34,050 --> 00:26:37,170 Suze: to do it now because she thinks tax brackets are 445 00:26:37,180 --> 00:26:40,630 Suze: gonna go up over the next few years. That's why 446 00:26:40,640 --> 00:26:43,170 Suze: she wants to do it now. I got it. All right. 447 00:26:43,180 --> 00:26:46,579 Suze: See what you can do. Life changing event form. 448 00:26:48,339 --> 00:26:50,400 Suze: SSA dash 4444 you said? 449 00:26:50,939 --> 00:26:56,969 KT: Ok, so from Danette. Hello Suze and KT. Happy Travels, Suze. 450 00:26:56,979 --> 00:27:03,420 KT: I purchased the must have documents online in 2009. Yes. Yes. 451 00:27:03,430 --> 00:27:04,250 KT: She is smart. 452 00:27:04,329 --> 00:27:09,069 KT: I opened my revocable trust changed my house title. You 453 00:27:09,079 --> 00:27:13,680 KT: mentioned the incapacity clause. Is it available with my Docs 454 00:27:13,689 --> 00:27:17,270 KT: automatically or do I need to fill it in, you know, 455 00:27:17,280 --> 00:27:21,270 KT: all over again and have them co-signed and notarized again? 456 00:27:21,680 --> 00:27:24,800 KT: Then she says, do I have to buy the newest Docs? 457 00:27:24,810 --> 00:27:26,270 KT: This is from Danette. 458 00:27:26,319 --> 00:27:30,680 Suze: So Danette, here's the great thing about the must have docs. 459 00:27:31,219 --> 00:27:32,948 Suze: It's a one and done. 460 00:27:33,479 --> 00:27:38,599 Suze: That's it. Meaning what once you have purchased them, no 461 00:27:38,609 --> 00:27:43,520 Suze: matter what updates are made, you qualify for the updates 462 00:27:43,530 --> 00:27:46,810 Suze: and without any extra cost at all, 463 00:27:47,459 --> 00:27:50,589 Suze: you know, I would never talk to you about something 464 00:27:50,599 --> 00:27:52,760 Suze: that I want you to buy that you have to 465 00:27:52,770 --> 00:27:56,560 Suze: continue to buy and buy as it changes. So unlike 466 00:27:56,569 --> 00:27:59,550 Suze: many of the other companies, when something changes, you have 467 00:27:59,560 --> 00:28:02,579 Suze: to buy it again, that's not true with the must 468 00:28:02,589 --> 00:28:08,239 Suze: have docs, your 2009 ones that you did buy has 469 00:28:08,250 --> 00:28:10,640 Suze: the incapacity clause in it. However, 470 00:28:11,180 --> 00:28:15,229 Suze: given that that was so long ago, I think it's 471 00:28:15,239 --> 00:28:18,780 Suze: a really great idea if you re-did them so that 472 00:28:18,790 --> 00:28:22,729 Suze: you see, where is everything? How did you do it? 473 00:28:22,739 --> 00:28:26,780 Suze: Is there any changes that you wanna make and therefore 474 00:28:26,790 --> 00:28:29,270 Suze: on your documents. When you go back and you go 475 00:28:29,280 --> 00:28:33,089 Suze: to the program, there's a little help tab or whatever, 476 00:28:33,260 --> 00:28:35,199 Suze: just contact the company 477 00:28:35,560 --> 00:28:39,859 Suze: and you'll automatically be updated to the program as it 478 00:28:39,869 --> 00:28:44,380 Suze: is today and it's just been totally updated by the way. 479 00:28:44,390 --> 00:28:46,989 Suze: So if I were you, I would do that. I 480 00:28:47,010 --> 00:28:49,180 Suze: know another thing I love about the must have docs 481 00:28:49,189 --> 00:28:53,089 Suze: KT besides that. You can share it with as many 482 00:28:53,099 --> 00:28:55,060 Suze: people in your family as you want. 483 00:28:55,069 --> 00:28:55,959 KT: Or friends. 484 00:28:55,969 --> 00:28:58,780 Suze: Or friends or whatever. So it's like it just takes 485 00:28:58,790 --> 00:29:02,150 Suze: one of you to do it. $2500 worth of state 486 00:29:02,160 --> 00:29:03,410 Suze: of the art documents 487 00:29:03,739 --> 00:29:05,650 Suze: you have to go to, must have docs.com to see 488 00:29:05,660 --> 00:29:08,689 Suze: how much they're selling for now because I actually don't know. Right. 489 00:29:08,699 --> 00:29:11,819 Suze: But whatever it is, it is worth the price and 490 00:29:11,829 --> 00:29:16,160 Suze: you can share it with as many people as you want. 491 00:29:16,540 --> 00:29:18,800 Suze: Quizzie time. KT. 492 00:29:18,890 --> 00:29:20,439 KT: OK. What do you got for me? 493 00:29:20,900 --> 00:29:25,079 Suze: This is from MS. All right. 494 00:29:25,979 --> 00:29:29,849 Suze: And she says the following and I know it's a she, 495 00:29:29,859 --> 00:29:34,500 Suze: by the way, anyway, I'm 40 which means that I've 496 00:29:34,510 --> 00:29:38,619 Suze: gone by people first, then money, then things for half 497 00:29:38,630 --> 00:29:42,839 Suze: of my life. Thank you. I currently own my home 498 00:29:42,849 --> 00:29:43,630 Suze: outright 499 00:29:44,040 --> 00:29:49,060 Suze: but only have about 35% of total net worth invested 500 00:29:49,069 --> 00:29:53,099 Suze: in the markets. The rest are in cash. I have 501 00:29:53,109 --> 00:29:57,900 Suze: relatively low expenses for myself. Now, are all of you 502 00:29:57,910 --> 00:30:01,819 Suze: listening to these facts because this quizzie isn't just for 503 00:30:01,829 --> 00:30:06,099 Suze: KT to be able to answer, I give quizzies for 504 00:30:06,109 --> 00:30:09,449 Suze: all of you to be able to answer, to know 505 00:30:09,459 --> 00:30:12,170 Suze: if these things ever happened in your situation, 506 00:30:12,569 --> 00:30:16,390 Suze: what you should do. All right. Now, again, this person 507 00:30:16,400 --> 00:30:23,150 Suze: is single no kids. She says, however, my job is 508 00:30:23,160 --> 00:30:29,650 Suze: quite unstable. Hence, I must be prepared to be retired 509 00:30:29,660 --> 00:30:31,140 Suze: at any time. 510 00:30:31,849 --> 00:30:36,819 Suze: I am a citizen of a low cost of living country. Hence, 511 00:30:36,829 --> 00:30:42,810 Suze: plan on retiring there, should the need arise. She's 40. 512 00:30:43,060 --> 00:30:47,829 Suze: She plans to retire there if the need arises. All right, 513 00:30:48,550 --> 00:30:52,489 Suze: I am able to live at my parents' home indefinitely 514 00:30:52,760 --> 00:30:57,550 Suze: from my estimates. If I were to liquidate my assets 515 00:30:57,599 --> 00:31:01,810 Suze: and put the money in the bank with 3% interest, 516 00:31:02,119 --> 00:31:06,079 Suze: I should have two times the monthly expenses that my 517 00:31:06,089 --> 00:31:09,030 Suze: parents currently use. 518 00:31:09,739 --> 00:31:13,520 Suze: Has anybody ever heard of inflation? But anyway. All right. 519 00:31:13,780 --> 00:31:14,339 Suze: My question... 520 00:31:14,349 --> 00:31:16,359 KT: Sounds like a great place to go. 521 00:31:16,469 --> 00:31:22,170 Suze: My question is I have been thinking of upgrading my 522 00:31:22,180 --> 00:31:23,239 Suze: apartment 523 00:31:24,260 --> 00:31:29,439 Suze: to a swankier one in the city center, downtown vibes, 524 00:31:29,449 --> 00:31:34,199 Suze: better air. I plan to use all or most of 525 00:31:34,209 --> 00:31:38,239 Suze: the cash I have on hand for the upgrade or 526 00:31:38,250 --> 00:31:42,760 Suze: take a minimal loan. Now, I am assuming here 527 00:31:43,449 --> 00:31:47,430 Suze: that she has a home that she owns outright. She 528 00:31:47,439 --> 00:31:51,969 Suze: may be thinking about selling her home, moving to a 529 00:31:51,979 --> 00:31:55,829 Suze: bigger swankier apartment in the city, 530 00:31:56,520 --> 00:31:59,599 Suze: but she'd have to use all the cash from her 531 00:31:59,609 --> 00:32:00,300 Suze: home 532 00:32:01,209 --> 00:32:04,760 Suze: and to make an upgrade or make or have a 533 00:32:04,770 --> 00:32:09,349 Suze: minimal loan. Do I approve? Think about it. 534 00:32:10,839 --> 00:32:12,069 Suze: Oh, you're looking at me like... 535 00:32:12,079 --> 00:32:14,890 KT: There's nothing to think no brainer here, Suze. 536 00:32:15,099 --> 00:32:16,020 Suze: Is that no? 537 00:32:16,030 --> 00:32:19,959 KT: Why would you do that? I would never do that 538 00:32:19,969 --> 00:32:23,439 KT: if I had an unstable job and I'm 40 years old, 539 00:32:23,670 --> 00:32:28,459 KT: I'd want to accumulate as much cash as possible. So 540 00:32:28,469 --> 00:32:29,780 KT: then I'd feel free. 541 00:32:30,180 --> 00:32:31,380 Suze: So, you've denied her? 542 00:32:31,390 --> 00:32:33,099 KT: Yes. Totally. 543 00:32:33,109 --> 00:32:34,199 Suze: Say it, Kt. 544 00:32:34,209 --> 00:32:38,260 KT: You are de-nied. That's the way you say it. 545 00:32:38,810 --> 00:32:42,099 Suze: So, what's funny about this quizzie is I wrote her back. 546 00:32:42,199 --> 00:32:43,469 KT: What did you say? 547 00:32:44,040 --> 00:32:46,359 Suze: I sent her a little picture of myself with a 548 00:32:46,369 --> 00:32:50,709 Suze: stamp that said deny. They're ding, ding, ding, ding, ding. 549 00:32:50,719 --> 00:32:56,219 Suze: So you're right. But here's why MS that you're thinking 550 00:32:56,229 --> 00:33:00,189 Suze: in my opinion is not logical. You currently own your 551 00:33:00,199 --> 00:33:04,819 Suze: home outright, you don't have any bills, whatever. 552 00:33:05,199 --> 00:33:08,900 Suze: And what you're saying is that you want to move 553 00:33:08,910 --> 00:33:14,260 Suze: to a swankier place, which means more expenses, more taxes, 554 00:33:14,270 --> 00:33:18,939 Suze: more everything and you don't have a stable job. 555 00:33:19,670 --> 00:33:23,199 Suze: So you have to be prepared to retire at any time. No, 556 00:33:23,250 --> 00:33:26,209 Suze: at the age of 40 if you lose your job, 557 00:33:26,219 --> 00:33:31,770 Suze: you get another job, you stay where you want. Obviously 558 00:33:31,780 --> 00:33:34,109 Suze: you're liking wherever you live and you just want a 559 00:33:34,119 --> 00:33:37,579 Suze: little more life around you. So go to that place, 560 00:33:37,589 --> 00:33:40,689 Suze: the Swankier place and be entertained and then go home 561 00:33:40,699 --> 00:33:42,770 Suze: to a place that you own outright. 562 00:33:43,199 --> 00:33:46,339 Suze: So at 40 years of age, this is still your 563 00:33:46,349 --> 00:33:49,949 Suze: compounding years. These are not the years for you to 564 00:33:49,959 --> 00:33:53,489 Suze: be spending money and you need to be saving it 565 00:33:53,500 --> 00:33:56,920 Suze: and investing it and being wise with money. And then 566 00:33:56,930 --> 00:33:58,780 Suze: when you're old, like us, you can live on a 567 00:33:58,790 --> 00:34:02,099 Suze: private island, you could do whatever you want at that 568 00:34:02,109 --> 00:34:02,979 Suze: point in time. 569 00:34:02,989 --> 00:34:05,400 KT: Why doesn't she just rent something in the city and 570 00:34:05,410 --> 00:34:06,140 KT: see if she likes? 571 00:34:07,349 --> 00:34:07,380 Suze: No! 572 00:34:09,520 --> 00:34:11,739 Suze: She doesn't need to be paying more money. 573 00:34:11,750 --> 00:34:13,610 KT: I don't know why she wants to do that. 574 00:34:13,620 --> 00:34:18,870 Suze: That's not our problem. Here's the other thing you say 575 00:34:19,199 --> 00:34:21,500 Suze: that if you liquidate your assets and you put the 576 00:34:21,510 --> 00:34:24,589 Suze: money in the bank with a 3% interest, how do 577 00:34:24,600 --> 00:34:26,870 Suze: you know what interest rates are gonna be? How do 578 00:34:26,879 --> 00:34:29,459 Suze: you know what your assets are going to be? If 579 00:34:29,469 --> 00:34:31,830 Suze: you had done this plan years ago? 580 00:34:32,229 --> 00:34:36,409 Suze: And you were thinking, oh, it's 2007, you've now lost 581 00:34:36,419 --> 00:34:39,629 Suze: your job. You're gonna sell your home, you're gonna sell 582 00:34:39,639 --> 00:34:42,899 Suze: your assets. You wouldn't get anywhere close to what anything 583 00:34:42,909 --> 00:34:46,590 Suze: is currently worth today. And you say that you would 584 00:34:46,600 --> 00:34:50,379 Suze: have two times the monthly expenses that your parents currently use. 585 00:34:50,389 --> 00:34:53,000 Suze: Do you really wanna live the lifestyle that maybe your 586 00:34:53,010 --> 00:34:54,330 Suze: parents are living? 587 00:34:54,928 --> 00:34:59,029 Suze: So your thinking is wrong on this, you are to 588 00:34:59,039 --> 00:35:01,748 Suze: think that you are going to make the most out 589 00:35:01,759 --> 00:35:05,868 Suze: of your life here where you're obviously enjoying yourself or 590 00:35:05,878 --> 00:35:09,128 Suze: you would be back home already. You're gonna save it. 591 00:35:09,138 --> 00:35:12,538 Suze: You're gonna invest it. If you wanna swank your lifestyle, 592 00:35:12,549 --> 00:35:15,529 Suze: go there for the weekend and come back, do whatever 593 00:35:15,539 --> 00:35:19,948 Suze: but no, you are denied. All right, KT... 594 00:35:20,709 --> 00:35:22,020 KT: That's it. That's a wrap. 595 00:35:22,030 --> 00:35:24,389 Suze: That's a wrap. We may have gone too long today, 596 00:35:24,399 --> 00:35:27,739 Suze: but we'll see. Sunday is going to be a very 597 00:35:27,750 --> 00:35:30,580 Suze: interesting Suze School. Do you wanna know, why? 598 00:35:30,750 --> 00:35:31,810 KT: Do you know what you're doing? 599 00:35:32,439 --> 00:35:32,678 Suze: Yes. 600 00:35:33,899 --> 00:35:37,100 KT: What is it? Give us a hint. Tell us why it's gonna be interesting. 601 00:35:37,280 --> 00:35:41,638 Suze: It's gonna be interesting because for over a year now, have 602 00:35:41,649 --> 00:35:45,060 Suze: I not been saying to all of you to buy 603 00:35:45,189 --> 00:35:48,010 Suze: 20 or 30 years preferably 604 00:35:48,689 --> 00:35:53,389 Suze: of treasury bonds? Have I not been telling you that? Well, 605 00:35:53,399 --> 00:35:57,549 Suze: when interest rates went down a week ago, those bonds 606 00:35:57,560 --> 00:36:04,310 Suze: absolutely skyrocketed so much. I can't even tell you now, 607 00:36:04,320 --> 00:36:08,270 Suze: I have a new strategy for you and therefore for 608 00:36:08,280 --> 00:36:10,949 Suze: those of you who didn't do it back then, 609 00:36:11,469 --> 00:36:14,520 Suze: I'm gonna give you a new strategy of what I 610 00:36:14,530 --> 00:36:20,178 Suze: want you to be doing now. So until Sunday, there's 611 00:36:20,189 --> 00:36:22,500 Suze: only one thing that we really want you to remember 612 00:36:22,510 --> 00:36:25,000 Suze: when it comes to your money. And what is that KT? 613 00:36:25,010 --> 00:36:28,219 KT: People first, then money, then things. 614 00:36:28,239 --> 00:36:32,060 Suze: And if you do that, stay safe, don't wanna live 615 00:36:32,070 --> 00:36:38,500 Suze: in a swankier place and stay healthy. You will be unstoppable.