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Suze: July 18th, 2024 welcome everybody to the Women and Money

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Suze: podcast

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KT: And everyone's smart enough to listen.

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Suze: This is the...

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KT: KT and Suze...

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Suze: Ask us anything podcast, right? So, what should we talk

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Suze: about today?

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KT: Well, I have a really nice email that came in.

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KT: That kind of sums up what we do.

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KT: Can I start by reading that?

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Suze: Since when? Have you ever had to ask me permission

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Suze: to do anything?

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KT: It's not a question, everybody, but it's, it's just a

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KT: comment and I really like it. It seems very appropriate

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KT: for the times we're in right now. So let me

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KT: read it, KT and Suze, your wisdom in finance and

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KT: life is admirable

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KT: first. This is from Dee. Dee, I need to make a

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KT: little correction here, Suze's wisdom in finance and KT's Zest

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KT: for life is that. the way you explain topics of

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KT: finance is easy to understand one phrase that just clicked

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KT: with me that Suze always said when she was on

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KT: the Suze Orman show was hope for the best, but

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KT: plan for the worst.

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KT: I have lived by these words ever since I had

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KT: considered myself a negative person, always expecting the worst to happen.

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KT: But after hearing that phrase, I changed my mindset. Now

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KT: I live by it. Not only with my finances, but

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KT: in other areas of my life as well. I can

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KT: hope for the best and still have a plan just

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KT: in case something unexpected happens.

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KT: That truly gives me peace of mind.

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Suze: Why did you choose that one? I just, I think

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Suze: I know why you chose it. But let me see.

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KT: I think, I think what popped out for me and

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KT: what kind of connected was the unexpected? We just experienced

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KT: a terribly unexpected, tragic event,

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Suze: Tragic for all. And our hearts go out to everybody

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Suze: that was affected by it, which is probably every single

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Suze: person in the United States, possibly the world. But especially

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Suze: to those who lost their life, the families of those

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Suze: who lost their life and who are critically injured. Such

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Suze: a shame for everybody. All right. But you have a

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Suze: question for me.

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KT: I do. So I'm going to start with the easiest question

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KT: of all time. Everybody. This is from Paula.

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KT: And she said, Suze, where should you keep important papers?

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KT: You need to get to your family in case you

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KT: get sick?

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KT: Well, there you go. Must have documents baby.

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Suze: Yeah. But where do you keep them KT.

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KT: Uh we keep them in our protection portfolio.

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Suze: Which is a waterproof fireproof box that we keep.

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KT: Actually we have two.

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Suze: So Paula is who wrote in. Here's what I would

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Suze: tell you. Many people suggest that you keep it in

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Suze: a safety

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Suze: deposit box and that is where you store documents and

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Suze: usually that is at a bank. So you need to however,

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Suze: have a family member that you trust, they need to

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Suze: have access and know the location of that box, the

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Suze: key or the code. And that's one place, not my

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Suze: favorite place to do it. Just so you know,

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Suze: but many people, that's where they do it. You also

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Suze: could have a home safe, it could be waterproof and

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Suze: fireproof safe at your home. It has to be both

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Suze: because you never know when a flood can happen or

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Suze: fire can happen. So provide also wherever you keep it.

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Suze: If it's a safe, the combination or the key as

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Suze: well to that trusted family member. Now, personally, I don't

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Suze: think it has to be in a locked safe.

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Suze: I think if you simply had a fireproof waterproof box

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Suze: like KT and I have, we call it the protection

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Suze: portfolio because it protects our portfolio of items that our

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Suze: family needs to have, they can just grab it, they

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Suze: know where it's kept, they can get it any time

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Suze: they want. And there's really nothing in there that people

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Suze: can't see, like who cares?

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Suze: Right. So it's not like it has to be locked up.

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Suze: Usually I would suggest to you can you share that

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Suze: information with your family members unless you're doing something with

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Suze: the money that you don't want your family members to

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Suze: know about because they'll disagree with you or whatever,

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Suze: share copies with them. So at least they have copies

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Suze: of what you have, but you have to have the

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Suze: originals just so, you know, you also can have digital copies.

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Suze: So with the must have documents that we've always

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Suze: talked about, they're stored online for you as well. So

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Suze: you can give the passcode or whatever to your family members,

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Suze: you can store it online. At least you've gathered the

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Suze: documents that you need to have. So therefore there's all

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Suze: different ways to keep them safe and sound. Just let

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Suze: your family members know and where they can go to

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Suze: get access to that immediately if they need to.

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Suze: All right, also, wait, I just have to say one

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Suze: more thing. The reason that we keep it in a

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Suze: protection portfolio that we can grab and go is that

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Suze: in case of a hurricane, in case of  a fire in

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Suze: case of anything, you can just grab it

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Suze: and go and take it with you if you like

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Suze: a little like a little suitcase. So that's just something

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Suze: that you might want to look into. All right. That was,

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Suze: that was an easy question, but a long answer. Right.

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KT: Yeah. All right. Next is Maureen. Hi, Suze. I need

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KT: help and guidance. I am 60 years old and left

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KT: a relationship 1.5 years ago that afforded me a financially

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KT: comfortable lifestyle.

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KT: I'm employed but live paycheck to paycheck. Unfortunately, I used

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KT: credit cards to supplement my income and frankly to bury

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KT: my head in the sand. I am now drowning in

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KT: $28,000 of credit card debt with no way out.

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KT: I've added additional work to my schedule for extra income,

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KT: but I continue to sink due to the accumulating interest.

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KT: I'm exploring filing for bankruptcy or a debt relief program.

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KT: I feel ashamed. Stressed and hopeless. Suze, what do you recommend?

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Suze: Maureen, Maureen, Maureen... The reason I say that in that tone, Maureen, Maureen, Maureen

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Suze: isn't because you have $28,000 of credit card debt. It's

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Suze: because you choose to feel so horrible about this credit

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Suze: card debt. You choose to use words such as I

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Suze: feel ashamed,

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Suze: I feel stressed and hopeless. It is those three words

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Suze: that keep you under water in your own self esteem,

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Suze: in your own self worth. When you feel less than

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Suze: it's very hard to get your strength up and be

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Suze: as powerful as you were born to be and get

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Suze: yourself out of this situation a year and a half

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Suze: ago

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Suze: when you were 58.5 years of age because you're now

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Suze: 60 you left a relationship, you had the strength to

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Suze: leave a relationship that had afforded you a very comfortable lifestyle.

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Suze: You chose self power, you chose self freedom over money.

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Suze: Now you're allowing debt

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Suze: to take away your strength, how you feel and what

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Suze: you should do about it. You can obviously look into

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Suze: bankruptcy because they say when you owe more than what

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Suze: you make, you are essentially bankrupt. But with $28,000 of

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Suze: credit card debt, I have a feeling that this amount

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Suze: of debt is something that you can get rid of

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Suze: on your own without claiming bankruptcy.

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Suze: What I want you to do is I want you

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Suze: to contact the NFCC.org - That is their site that

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Suze: stands for the National Foundation of Credit Counselors. I want

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Suze: you to go online, contact them and they will help

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Suze: you work out a program that is manageable for you

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Suze: to hopefully get out of debt within a five year

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Suze: period of time. But the most important thing

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Suze: that I can leave you with is you are to

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Suze: stop feeling ashamed. Shame is one of the major internal

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Suze: obstacles to wealth, fear, shame and anger and you kind

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Suze: of have all of them. So therefore, don't feel hopeless.

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Suze: Did you hear the first email that KT started this

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Suze: podcast with plan for the worst? But hope for the

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Suze: best

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Suze: and now she doesn't feel hopeless anymore even in her

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Suze: own life, you have got to stop feeling hopeless. If

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Suze: I were you, I would create a new truth for myself.

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Suze: I am a powerful woman with no credit card debt.

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Suze: Every time you get afraid every time you feel like

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Suze: you are drowning. What are you gonna say, Maureen? I

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Suze: am a powerful woman

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Suze: with no credit card debt.

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KT: I am a powerful woman with no credit card.

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Suze: And you are to say that 25 times a day.

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KT: I'm a powerful woman with no credit card debt.

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Suze: You are to scream it!

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KT: I am powerful woman with no credit card debt.

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Suze: You are to say it silently in front of a mirror before

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Suze: you go to bed.

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KT: (Whispers) I'm a powerful woman with no credit card debt.

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Suze: And you are to write it 25 times a day

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Suze: every single day.

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KT: I have I have a sore hand.

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Suze: Until you have a sore hand. Can you try that

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Suze: for me? Alright, KT. Next.

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KT: Ok, this is from Angelo. I love when I get

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KT: an email from a man I like this Angelo.

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KT: Hi KT and Suze. I had invested in the portfolio

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KT: that you had suggested a while back. I was wondering

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KT: if you were going to update it again. Much love Angelo.

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KT: So what was in that portfolio?

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Suze: So everybody right? If you go back to I believe

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Suze: it was the January 7th podcast.

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Suze: You will see that. I answered a question for somebody

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Suze: who wanted to know if all I had was $1000. Actually,

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Suze: it would have worked if you had 10,000 whatever. But

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Suze: if all I had was $1000. What are some ETFs

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Suze: that you would invest in? And I gave seven ETFs

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Suze: at that time.

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Suze: Now, if you looked at them today, they are up

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Suze: approximately 13%

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Suze: since January 7th. But I'm going to make you do

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Suze: your homework and go back and look them up. So Angelou, no,

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Suze: I'm not going to change those at this point in

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Suze: time because they give such diversification

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Suze: in every area. It was really at that point in time,

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Suze: one of the perfect portfolios. But for those of you

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Suze: who did not buy that portfolio back all the way,

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Suze: January 7th,

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Suze: I don't know, it's had a very nice run all

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Suze: very good. So you're gonna have to decide on your

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Suze: own now if you want to do it. But those

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Suze: were recommendations for the first week of January. All right.

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Suze: Go on.

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KT: I like this next question a lot. It's from Cheryl.

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KT: She said, Suze and KT, I'm looking for advice on how

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KT: to open a brokerage account for my four grandkids,

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KT: ages 7,5, 2 and two months so that we can start

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KT: putting money in for their futures, hopefully retirement futures. And Suze,

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KT: the reason I really like this, she said, my husband

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KT: and I are both retired and want to help secure

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KT: their futures instead of wasting money on junk. Now, that

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KT: is a smart set of grandparents instead of spending money

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KT: on things that are silly to

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KT: or whatever they want to help secure their future.

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Suze: So it depends really how much you're thinking Cheryl of

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Suze: putting in the account for these Youngins. Right? 7, 5, 2 and

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Suze: two months, here's what you have to think about.

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Suze: If you open up a uniform gift to minors act

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Suze: account or uniform trust to minors act account, that's money

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Suze: that is theirs. And once they turn of age, they

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Suze: can do anything they want with this money. So why

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Suze: you want to secure their future when you put money

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Suze: in an account in their name, when they are minors,

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Suze: you are custodian on that account why they are minors.

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Suze: But as they turn of age, it is now their

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Suze: money and they can do anything. Like I just said

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Suze: a second ago with it. Why did I repeat that?

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Suze: That isn't necessarily securing their future

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Suze: because you do not know that little Johnny or Jane

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Suze: Angel doesn't turn in to little Johnny or Jane Devil

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Suze: when they get older. And the reason that I say

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Suze: that is that when I was actually seeing clients and

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Suze: they had done that a lot of people would come

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Suze: to see me and they would say Suze,

235
00:15:13,179 --> 00:15:17,039
Suze: we put a lot of money in a UGMA account

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00:15:17,049 --> 00:15:20,299
Suze: for our kids thinking that they would like to have

237
00:15:20,309 --> 00:15:22,919
Suze: that account. Number one, it hurt them for financial aid,

238
00:15:22,929 --> 00:15:26,500
Suze: which is something you should know. But more important than that.

239
00:15:26,770 --> 00:15:30,780
Suze: They now want that money. One has a drug problem

240
00:15:31,330 --> 00:15:35,599
Suze: and he is now using that money for drugs. Another

241
00:15:35,609 --> 00:15:38,609
Suze: wanted to take the money out and buy a car

242
00:15:38,619 --> 00:15:42,960
Suze: and absolutely refuses to listen to me.

243
00:15:43,630 --> 00:15:47,419
Suze: So you lose control over that money, whether you know

244
00:15:47,429 --> 00:15:51,049
Suze: it or not, is there a way not to? So

245
00:15:51,059 --> 00:15:54,409
Suze: what I would be doing is not giving them the money. Now,

246
00:15:55,150 --> 00:15:57,679
Suze: I would open up a side account and keep it

247
00:15:57,690 --> 00:16:01,979
Suze: in your own name knowing that that amount of money

248
00:16:01,989 --> 00:16:06,679
Suze: is for those kids. I would then create a trust

249
00:16:07,309 --> 00:16:11,340
Suze: where there are instructions in the trust as to when

250
00:16:11,349 --> 00:16:14,460
Suze: those kids can get the money. Who is gonna be

251
00:16:14,469 --> 00:16:18,880
Suze: the trustee for that money if something happens to you,

252
00:16:18,890 --> 00:16:21,320
Suze: but then you could control that money

253
00:16:22,270 --> 00:16:26,010
Suze: up until a certain age. You're not limited by the

254
00:16:26,020 --> 00:16:30,580
Suze: UG MA rules doesn't hurt for financial aid. And so

255
00:16:30,590 --> 00:16:36,859
Suze: I would just think twice about what you want to do, Katie.

256
00:16:36,869 --> 00:16:39,940
Suze: If we had kids, I would and in fact, we

257
00:16:39,950 --> 00:16:44,739
Suze: do our nieces and nephews. We would never allow that

258
00:16:44,750 --> 00:16:47,380
Suze: to happen. You want to set up a 529 account?

259
00:16:47,400 --> 00:16:50,210
Suze: We are the owner, they're the beneficiaries, ok?

260
00:16:50,830 --> 00:16:55,159
Suze: But not a UG MA account. No way. Given what

261
00:16:55,169 --> 00:16:56,719
Suze: I've seen. All right, go on.

262
00:16:57,760 --> 00:16:59,549
KT: Next question is from Jean

263
00:17:00,280 --> 00:17:03,770
KT: and her comment and question is about giving money to

264
00:17:03,780 --> 00:17:09,219
KT: her beneficiaries now versus leaving it after she passes. The

265
00:17:09,229 --> 00:17:14,459
KT: financial advisor suggested I start reducing my IRA above the RMD,

266
00:17:15,510 --> 00:17:18,819
KT: putting it in an account to be inherited after death.

267
00:17:19,300 --> 00:17:22,429
KT: So then the question is, I think I should start

268
00:17:22,439 --> 00:17:26,489
KT: with drawing beyond the RMD and gifting small amounts. Now,

269
00:17:26,500 --> 00:17:30,640
KT: what would be your advice? I seldom need my entire RMD.

270
00:17:31,400 --> 00:17:35,719
KT: So Jean financially is very comfortable and wants to start

271
00:17:35,729 --> 00:17:39,900
KT: giving money to her beneficiaries before they're in their fifties

272
00:17:39,910 --> 00:17:40,839
KT: and seventies

273
00:17:42,260 --> 00:17:42,939
Suze: Pop quizzy.

274
00:17:43,800 --> 00:17:45,050
KT: Oh, what is it?

275
00:17:45,060 --> 00:17:45,790
Suze: This is your quizzy.

276
00:17:45,849 --> 00:17:47,239
KT: Ask me the question.

277
00:17:47,250 --> 00:17:52,969
Suze: Should Jean start gifting money above the required minimum distribution

278
00:17:52,979 --> 00:17:57,739
Suze: from her IRA, like her financial advisor, I think, suggested.

279
00:17:57,750 --> 00:18:00,869
Suze: Not sure if that's actually the suggestion. But would you

280
00:18:00,880 --> 00:18:03,639
Suze: start doing that now, given

281
00:18:03,910 --> 00:18:08,978
Suze: that she has approximately if she's taking RMDs anywhere from

282
00:18:08,989 --> 00:18:13,010
Suze: 17 to 20 more years left on her life?

283
00:18:14,489 --> 00:18:17,339
KT: So the question is, do I agree with her and

284
00:18:17,349 --> 00:18:18,630
KT: the financial advisor?

285
00:18:19,359 --> 00:18:23,680
Suze: Would you be gifting money above the amount that she's

286
00:18:23,689 --> 00:18:24,660
Suze: required to take?

287
00:18:24,699 --> 00:18:29,510
KT: No, I would actually gift money from the RMD amount

288
00:18:29,640 --> 00:18:32,629
KT: because at the end of her email, she said she

289
00:18:32,640 --> 00:18:34,510
KT: rarely even needs

290
00:18:34,885 --> 00:18:37,675
KT: the RMD at this point in her life.

291
00:18:37,824 --> 00:18:40,525
Suze: But she's thinking about gifting far more than that.

292
00:18:41,204 --> 00:18:44,234
KT: My answer is I wouldn't take money out over and

293
00:18:44,244 --> 00:18:45,834
KT: above my R MD.

294
00:18:45,864 --> 00:18:46,854
Suze: You would not.

295
00:18:47,885 --> 00:18:48,795
KT: No, no.

296
00:18:48,805 --> 00:18:49,795
Suze: All right. So

297
00:18:50,540 --> 00:18:53,619
Suze: I would use the RMD money to gift. All right.

298
00:18:53,630 --> 00:18:56,899
Suze: So I don't know whether to approve you or deny you.

299
00:18:56,910 --> 00:18:59,959
KT: You have to approve me. That's smart. She's not using it.

300
00:18:59,969 --> 00:19:01,599
KT: She has to take it out.

301
00:19:01,609 --> 00:19:02,560
Suze: All right, so...

302
00:19:02,630 --> 00:19:05,319
KT: Use it, gift it, gift it.

303
00:19:05,430 --> 00:19:08,150
Suze: But all right, I'll give you a ding, ding, ding (bell rings)

304
00:19:08,160 --> 00:19:11,739
Suze: only because Sunday is your birthday and I want her

305
00:19:11,750 --> 00:19:14,630
Suze: to be in a good mood for her birthday. However,

306
00:19:15,479 --> 00:19:20,099
Suze: the financial advisor suggesting this should have made an even

307
00:19:20,109 --> 00:19:25,379
Suze: better suggestion to you, which is, which is if you're

308
00:19:25,390 --> 00:19:31,250
Suze: taking money out as a required minimum distribution, it means

309
00:19:31,260 --> 00:19:35,339
Suze: that this is a traditional IRA and not a Roth

310
00:19:35,390 --> 00:19:39,420
Suze: because there are no RMDs for a Roth number one.

311
00:19:39,829 --> 00:19:43,020
Suze: So any money that you take out as a required

312
00:19:43,030 --> 00:19:44,380
Suze: minimum distribution,

313
00:19:44,699 --> 00:19:47,719
Suze: obviously, you pay ordinary income tax on

314
00:19:49,329 --> 00:19:53,150
Suze: your advisor wants you to take out even more above

315
00:19:53,160 --> 00:19:55,760
Suze: that amount, which means you would have to pay taxes

316
00:19:55,770 --> 00:19:56,429
Suze: on it

317
00:19:57,069 --> 00:20:02,040
Suze: and either give it to your kids grandkids now or

318
00:20:02,050 --> 00:20:04,569
Suze: put it in an account for them.

319
00:20:05,469 --> 00:20:08,218
Suze: What I would tell you to do if that is

320
00:20:08,229 --> 00:20:11,669
Suze: what you want to do, you should take additional money

321
00:20:11,680 --> 00:20:16,130
Suze: out above the RMD . No problem. But you should

322
00:20:16,140 --> 00:20:20,520
Suze: convert it to a Roth IRA in your name. You

323
00:20:20,530 --> 00:20:26,089
Suze: should let it grow tax-free because at that point then

324
00:20:26,099 --> 00:20:30,188
Suze: if anything happens, you have access to that money. If

325
00:20:30,199 --> 00:20:32,698
Suze: you don't need it, it gets to grow and grow

326
00:20:32,709 --> 00:20:34,688
Suze: and grow tax free

327
00:20:35,359 --> 00:20:39,319
Suze: and later on if you need more money because you

328
00:20:39,329 --> 00:20:45,380
Suze: say here. I seldom need my entire RMD. Seldom isn't,

329
00:20:45,390 --> 00:20:49,209
Suze: I never use my entire RMD .

330
00:20:50,030 --> 00:20:53,939
Suze: So it's close there. What I want you to do

331
00:20:53,949 --> 00:20:57,099
Suze: is not gift any money to your kids and grandkids

332
00:20:57,109 --> 00:21:02,469
Suze: right now, what so ever. What? Katie is shaking her head.

333
00:21:02,479 --> 00:21:03,290
KT: I totally disagree. 

334
00:21:03,579 --> 00:21:06,390
Suze: I don't care. What you need to do, which is

335
00:21:06,400 --> 00:21:07,250
Suze: smart

336
00:21:07,819 --> 00:21:12,750
Suze: because you now, right. Are obviously 73. Do you have

337
00:21:12,760 --> 00:21:15,780
Suze: long term care insurance? Do you have the ability to

338
00:21:15,790 --> 00:21:18,550
Suze: hire a private nurse as you get older? If you

339
00:21:18,560 --> 00:21:22,399
Suze: want one, you do not know what your life is

340
00:21:22,410 --> 00:21:23,010
Suze: going to be

341
00:21:23,114 --> 00:21:28,334
Suze: at 83 at 93 at 97 which is when my

342
00:21:28,344 --> 00:21:32,094
Suze: mom died. You don't know what your expenses are gonna be,

343
00:21:32,104 --> 00:21:36,895
Suze: Miss Travis. So therefore your kids can get this money

344
00:21:36,905 --> 00:21:42,255
Suze: when you die in my opinion and that I wanna

345
00:21:42,265 --> 00:21:44,454
Suze: know that you are ok.

346
00:21:44,910 --> 00:21:49,030
Suze: So I would be taking extra money out of my

347
00:21:49,040 --> 00:21:55,250
Suze: IRA after you've withdrawn your RMD from this IRA and whatever

348
00:21:55,260 --> 00:21:57,640
Suze: amount of money isn't gonna put you in a really

349
00:21:57,650 --> 00:22:02,790
Suze: lot larger tax bracket, convert that money to a Roth,

350
00:22:03,500 --> 00:22:07,099
Suze: keep it there and then make the grandkids and the kids,

351
00:22:07,109 --> 00:22:13,069
Suze: the beneficiaries of that upon your death. That's what I

352
00:22:13,079 --> 00:22:15,718
Suze: would do. Now, what is wrong with you that you

353
00:22:15,729 --> 00:22:19,410
Suze: are disagreeing with me now that you heard my total explanation...

354
00:22:19,420 --> 00:22:22,130
KT: Well, it makes sense what you just said. So I agree

355
00:22:22,140 --> 00:22:22,770
KT: with that.

356
00:22:23,410 --> 00:22:26,468
KT: But sometimes it's nice to give the kids a little something.

357
00:22:26,479 --> 00:22:29,379
Suze: She can give them a little something. But if she

358
00:22:29,390 --> 00:22:32,180
Suze: has to take money out of her IRA to pay

359
00:22:32,189 --> 00:22:35,560
Suze: taxes on it, then why should she be paying taxes

360
00:22:35,569 --> 00:22:38,010
Suze: on it to give to her kids? When, if she's

361
00:22:38,020 --> 00:22:40,709
Suze: paying taxes on it, she could put it

362
00:22:40,800 --> 00:22:47,250
Suze: by converting it to a Roth IRA. Let that money

363
00:22:47,260 --> 00:22:50,979
Suze: grow and grow and grow for the next 17 years.

364
00:22:51,030 --> 00:22:54,099
Suze: And then upon her death, there's gonna be a tremendous

365
00:22:54,109 --> 00:22:58,050
Suze: amount of money to leave to the kids tax free.

366
00:22:58,969 --> 00:23:01,629
Suze: Far better idea than giving it to them. Now, are

367
00:23:01,640 --> 00:23:02,280
Suze: you kidding?

368
00:23:02,680 --> 00:23:05,189
KT: Give them a little money. Give them a little something.

369
00:23:05,900 --> 00:23:06,520
Suze: Alright, go on.

370
00:23:09,989 --> 00:23:12,170
Suze: Wrong answer on the quizzy.

371
00:23:13,199 --> 00:23:19,270
KT: Pop quizzy. This is from Sabrina, Suze. Hello. My husband

372
00:23:19,280 --> 00:23:23,469
KT: rolled his 401k over to a brokerage firm seven months

373
00:23:23,479 --> 00:23:27,189
KT: ago when he left his job. Can he move this

374
00:23:27,199 --> 00:23:32,310
KT: money back to his new employer 401k or is there

375
00:23:32,319 --> 00:23:35,530
KT: a waiting period? It's traditional.

376
00:23:35,540 --> 00:23:36,369
Suze: Pop quizzy.

377
00:23:37,300 --> 00:23:38,520
KT: The answer is yes.

378
00:23:39,670 --> 00:23:42,010
Suze: Oh, you're so good. How do you know that?

379
00:23:42,020 --> 00:23:47,030
KT: Because you can always roll over Beethoven. Roll over Beethoven. (sings)

380
00:23:47,750 --> 00:23:50,719
KT: Remember that? You can always roll over.

381
00:23:52,280 --> 00:23:53,550
KT: Remember that song?

382
00:23:53,560 --> 00:23:57,810
Suze: Do you remember Uncle Nady and Aunt Thelma birthday last Sunday?

383
00:23:58,099 --> 00:24:01,379
Suze: What would Uncle Nady's  thing be? I had a

384
00:24:02,229 --> 00:24:07,139
Suze: honey. I had a roll with honey in bed last

385
00:24:07,150 --> 00:24:12,510
Suze: night anyway, forget everybody. But my uncle loved my Aunt Thelma.

386
00:24:13,000 --> 00:24:16,790
KT: Oh my gosh... flirted with her till the day he took his last breath.

387
00:24:17,170 --> 00:24:19,339
KT: He was madly in love with Thelma.

388
00:24:19,890 --> 00:24:22,489
Suze: It was such a great saying. He would love to

389
00:24:22,500 --> 00:24:24,569
Suze: say it and Aunt Thelma would give him a look like, oh,

390
00:24:24,579 --> 00:24:28,109
Suze: here we go again. Last night in bed I had

391
00:24:28,119 --> 00:24:29,219
Suze: a roll with honey.

392
00:24:30,280 --> 00:24:35,329
Suze: I had a roll with honey. Ok. What else you got?

393
00:24:35,339 --> 00:24:38,170
KT: All right. I have one more. This next question is

394
00:24:38,180 --> 00:24:41,890
KT: from Chewy. Hi, KT and Suze. My husband and I

395
00:24:41,900 --> 00:24:45,280
KT: have been long time watchers of your show through our

396
00:24:45,290 --> 00:24:48,650
KT: twenties and thirties and now in our forties we're happy

397
00:24:48,660 --> 00:24:49,688
KT: to find your podcast.

398
00:24:49,824 --> 00:24:51,994
Suze: Yes. For all of those that weren't lucky enough to

399
00:24:52,005 --> 00:24:56,114
Suze: see the Suze Orman show. Go to Freevee and you

400
00:24:56,125 --> 00:24:59,145
Suze: can see all the episodes there for free.

401
00:24:59,155 --> 00:25:03,604
KT: Hundreds of episodes. They're great. They said I listen every week.

402
00:25:03,614 --> 00:25:05,524
KT: It helps me get my steps in,

403
00:25:06,160 --> 00:25:11,140
KT: unfortunately, early in my career. Despite maxing out my 401k match,

404
00:25:11,349 --> 00:25:13,959
KT: I was given the poor advice from our head of

405
00:25:13,969 --> 00:25:18,040
KT: HR not to do a Roth because I'd be in

406
00:25:18,050 --> 00:25:26,170
KT: a lower tax bracket when I retired. Now. We had such,

407
00:25:27,780 --> 00:25:32,750
KT: now we each have close to $2 million saved thanks

408
00:25:32,760 --> 00:25:35,910
KT: to you, Suze. But a lot of mine is still

409
00:25:35,920 --> 00:25:40,189
KT: in a traditional 401k given we're in a high tax

410
00:25:40,199 --> 00:25:43,010
KT: bracket and we'd be taxed at that high bracket. On

411
00:25:43,020 --> 00:25:45,909
KT: the money converted, is it better to leave it in

412
00:25:45,920 --> 00:25:51,339
KT: the traditional 401k versus converting my husband and I are

413
00:25:51,349 --> 00:25:55,780
KT: 45 and hope to retire in 10 years. That's from Chewy.

414
00:25:56,380 --> 00:26:02,560
Suze: chewy, chewy, chewy, chewy. Chewy. I will always tell you,

415
00:26:02,609 --> 00:26:03,130
Suze: what are you singing?

416
00:26:07,300 --> 00:26:10,369
KT: Chewy, Chewy, (singing to the tune of 'Sugar Sugar' by the Archies) Chewy chewy? I feel like singing today.

417
00:26:10,380 --> 00:26:12,560
Suze: What, what else do you want to sing to everybody?

418
00:26:14,000 --> 00:26:15,469
KT: That's good. That's all.

419
00:26:15,500 --> 00:26:19,969
Suze: Come on. Come on. Do you know everybody that I'll

420
00:26:19,979 --> 00:26:25,900
Suze: walk out some mornings and there's KT and Colo possibly

421
00:26:25,910 --> 00:26:29,819
Suze: making breakfast together, whatever it is that they're doing and

422
00:26:29,829 --> 00:26:33,310
Suze: they're singing together. What's a favorite song you sing?

423
00:26:33,319 --> 00:26:36,469
KT: The favorite song Colo and I sing is from Bruno Mars.

424
00:26:36,479 --> 00:26:41,449
KT: (Sings) Should have brought you flowers when I had the chance. Now, wait,

425
00:26:41,459 --> 00:26:43,159
KT: I have a cold still. Everybody,

426
00:26:43,265 --> 00:26:45,655
KT: I don't have a cold but it's my voice

427
00:26:45,665 --> 00:26:51,614
Suze: And I told them all that. You feel great when

428
00:26:51,625 --> 00:26:54,805
Suze: I walk into two people singing off key, just like that.

429
00:26:55,505 --> 00:26:59,994
Suze: Having the best time chopping vegetables, flipping things, you know, hamburger,

430
00:27:00,094 --> 00:27:01,285
Suze: whatever it is they're making.

431
00:27:01,640 --> 00:27:04,979
Suze: And I just like, shake my head and go OK,

432
00:27:04,989 --> 00:27:07,699
KT: Colo is my sous chef when we're not working.

433
00:27:07,709 --> 00:27:12,010
Suze: All right. So anyway, KT's in the mood to sing today.

434
00:27:12,020 --> 00:27:14,619
Suze: I hope you all enjoy that. I hope we don't

435
00:27:14,630 --> 00:27:19,859
Suze: get sued from those companies. But anyway, I don't care

436
00:27:19,869 --> 00:27:23,909
Suze: about what anybody else has told you what any other

437
00:27:23,920 --> 00:27:28,510
Suze: adviser tells you what Suze Orman would tell you at

438
00:27:28,520 --> 00:27:31,219
Suze: the age of 45.

439
00:27:31,880 --> 00:27:37,020
Suze: I would absolutely be converting some of this money right

440
00:27:37,030 --> 00:27:40,488
Suze: now to a Roth 401k.

441
00:27:41,260 --> 00:27:46,199
Suze: I would absolutely be understanding that over the years till

442
00:27:46,209 --> 00:27:48,679
Suze: I probably need this money.

443
00:27:49,410 --> 00:27:54,170
Suze: If you're gonna retire at 55 hopefully you're gonna have

444
00:27:54,180 --> 00:27:57,589
Suze: enough money in other places that you don't need this

445
00:27:57,599 --> 00:27:58,218
Suze: money

446
00:27:59,119 --> 00:28:03,199
Suze: so that you can actually access it tax free. When

447
00:28:03,209 --> 00:28:07,770
Suze: you do. Remember if you leave this in your traditional

448
00:28:07,780 --> 00:28:14,020
Suze: 401k for you RM - required minimum distributions do not

449
00:28:14,030 --> 00:28:20,310
Suze: start until you are 75. Now, think about given how

450
00:28:20,319 --> 00:28:24,099
Suze: much money you have in a 401k today. How large

451
00:28:24,109 --> 00:28:28,219
Suze: your RMDs are going to be? Are you kidding me?

452
00:28:28,810 --> 00:28:34,069
Suze: You have got to start converting now to a Roth 401k.

453
00:28:34,079 --> 00:28:38,270
Suze: If you can, you could do a backdoor Roth. But

454
00:28:38,280 --> 00:28:41,150
Suze: your job is to get as much money as you

455
00:28:41,160 --> 00:28:48,839
Suze: possibly can into a Roth 401k. That's what I would

456
00:28:48,849 --> 00:28:52,930
Suze: be telling you. Why did your husband listen to me?

457
00:28:52,939 --> 00:28:53,989
Suze: And you didn't

458
00:28:54,410 --> 00:28:59,719
Suze: just saying. All right KT, you don't get a quizzy now because

459
00:28:59,729 --> 00:29:01,349
Suze: you already had two quizzys.

460
00:29:02,079 --> 00:29:04,760
KT: I didn't get them right. But I always hope for

461
00:29:04,770 --> 00:29:05,719
KT: the best, Suze.

462
00:29:05,729 --> 00:29:09,339
Suze: You do hope for the best and I'm sure Jean

463
00:29:09,349 --> 00:29:12,579
Suze: hopes for the best as well. Who is the woman

464
00:29:12,589 --> 00:29:16,959
Suze: who wants to give money to her Children. I'm sure

465
00:29:16,969 --> 00:29:20,449
Suze: that's true. But, you know, you have to plan for

466
00:29:20,459 --> 00:29:22,750
Suze: the worst. You have to hope for the best plan

467
00:29:22,760 --> 00:29:26,750
Suze: for the worst. Just like you open this podcast with Dee.

468
00:29:26,790 --> 00:29:28,290
Suze: All right. So

469
00:29:29,160 --> 00:29:30,650
KT: Until Sunday.

470
00:29:30,939 --> 00:29:31,859
Suze: Tell everybody what Sunday is?

471
00:29:32,439 --> 00:29:37,949
KT: (sings) Happy birthday to me, to me. Happy birthday dear KT

472
00:29:37,959 --> 00:29:39,089
KT: and Twin Lynn,

473
00:29:39,099 --> 00:29:40,209
Suze: Who will be here.

474
00:29:40,219 --> 00:29:42,250
KT: Happy birthday to us.

475
00:29:42,550 --> 00:29:45,329
Suze: What are we gonna do on that birthday?

476
00:29:46,449 --> 00:29:49,550
KT: We'll do something fun. I want to take my sister fishing.

477
00:29:49,560 --> 00:29:50,910
KT: I hope the weather's nice.

478
00:29:50,920 --> 00:29:55,430
Suze: All right. Question is, what should the podcast be on

479
00:29:55,439 --> 00:29:56,790
Suze: your birthday?

480
00:29:56,800 --> 00:29:57,949
KT: Oh.

481
00:30:00,239 --> 00:30:03,689
KT: Two is better than one. Let's make the title two

482
00:30:03,699 --> 00:30:04,630
KT: is better than one.

483
00:30:04,640 --> 00:30:06,949
Suze: Yes $2 is absolutely better than one.

484
00:30:08,030 --> 00:30:12,089
KT: Absolutely. Two is better than one baby. Coming up on Sunday,

485
00:30:12,099 --> 00:30:13,650
KT: July 21st.

486
00:30:13,660 --> 00:30:17,199
Suze: All right. So, for all of you, there's really only

487
00:30:17,209 --> 00:30:19,390
Suze: one thing that we want you to remember when it

488
00:30:19,400 --> 00:30:21,420
Suze: comes to your money. What is it KT?

489
00:30:21,430 --> 00:30:24,810
KT: People first, then money, then things.

490
00:30:24,819 --> 00:30:28,290
Suze: So if you do that and stay safe, you will

491
00:30:28,300 --> 00:30:30,719
Suze: be unstoppable.