1 00:00:08,829 --> 00:00:15,130 Suze: July 5th, 2026. Welcome everybody to the summer edition of 2 00:00:15,390 --> 00:00:19,909 Suze: the Women in Money podcast, and everybody's smart enough to listen. 3 00:00:20,309 --> 00:00:22,540 Suze: For those of you, by the way, who don't know, 4 00:00:22,909 --> 00:00:25,669 Suze: for the summer, who knows, maybe we'll do it forever. 5 00:00:25,790 --> 00:00:29,270 Suze: We'll have to see. KT and I are only doing 6 00:00:29,270 --> 00:00:35,500 Suze: and dropping new podcasts every Sunday. On Thursday, Robert will 7 00:00:35,500 --> 00:00:35,848 Suze: choose 8 00:00:35,986 --> 00:00:39,506 Suze: best of of either ask KT and Susie anything or 9 00:00:39,506 --> 00:00:44,625 Suze: Suze Schools or whatever, but that is our summer thing 10 00:00:44,625 --> 00:00:47,186 Suze: now KT, wait, wait, wait, you kind of got to 11 00:00:47,186 --> 00:00:49,915 Suze: tell them why. What are we doing for your birthday? 12 00:00:50,066 --> 00:00:50,796 Suze: Tell everybody. 13 00:00:51,585 --> 00:00:53,726 KT: Oh my goodness, I told you all that ever since 14 00:00:54,346 --> 00:00:58,526 KT: she moved off the island she's become a social butterfly 15 00:00:58,706 --> 00:01:02,256 KT: and in the first 6 months of this year we've 16 00:01:02,256 --> 00:01:03,186 KT: been halfway around 17 00:01:03,381 --> 00:01:05,901 KT: the world a couple times in and out of New 18 00:01:05,902 --> 00:01:08,191 KT: York we've been everywhere and now. 19 00:01:08,622 --> 00:01:10,541 Suze: And by the way, everybody, we were just there last 20 00:01:10,541 --> 00:01:11,872 Suze: week seeing two plays. 21 00:01:12,342 --> 00:01:14,461 KT: Oh my God, we saw Rag... Tell them about Ragtime. 22 00:01:16,331 --> 00:01:17,181 KT: You must, you must... 23 00:01:17,302 --> 00:01:20,001 Suze: No, it's closing. It's, it's closing and sold out. 24 00:01:21,302 --> 00:01:23,332 KT: But if it travels, go see it, people. 25 00:01:23,501 --> 00:01:25,052 Suze: So great. But anyway, tell them what's happening for your birthday. 26 00:01:26,452 --> 00:01:28,860 KT: She surprised me. I walked in the other day. She said, KT, 27 00:01:28,872 --> 00:01:30,241 KT: sit down. We need to talk. 28 00:01:31,029 --> 00:01:33,949 KT: And what was my reaction? Like, oh no, what did 29 00:01:33,949 --> 00:01:38,580 KT: I do? I sit down, she said, she said, KT 30 00:01:38,580 --> 00:01:41,120 KT: I have an idea for your birthday, and I looked 31 00:01:41,120 --> 00:01:43,878 KT: at her with her, with that face she had. I said, 32 00:01:43,959 --> 00:01:47,339 KT: where are we going? And she said, we're gonna listen 33 00:01:47,470 --> 00:01:52,629 KT: to Andrea sing under the stars in Tuscany, and 34 00:01:52,629 --> 00:01:56,839 KT: that's where we're going. But first, we're gonna stop in London. 35 00:01:57,080 --> 00:02:02,599 KT: And see my very, very best wonderful friend Joyce and 36 00:02:02,599 --> 00:02:06,510 KT: have dimsum Chinese lunch on my birthday. 37 00:02:06,510 --> 00:02:07,300 Suze: How old is Joyce now? 38 00:02:08,288 --> 00:02:11,630 KT: I'm 74. I'll be 74, so she's 86. 39 00:02:11,690 --> 00:02:15,410 Suze: 86. We love this woman. Oh my God. 40 00:02:15,809 --> 00:02:21,250 KT: Very instrumental mentor in my life, really from Asia. And 41 00:02:21,250 --> 00:02:23,309 KT: we're gonna just be gone a week, then we come 42 00:02:23,309 --> 00:02:25,800 KT: back and see the big redwoods. Then we come back, 43 00:02:26,050 --> 00:02:26,880 KT: go back to New York. 44 00:02:26,899 --> 00:02:29,039 Suze: We'll tell them how you're gonna see the big redwoods, 45 00:02:29,130 --> 00:02:30,049 Suze: what we're doing there. 46 00:02:30,490 --> 00:02:30,970 KT: A road trip. 47 00:02:31,339 --> 00:02:34,059 KT: Wait, we can't share all this yet. We'll wait till it happens. 48 00:02:34,419 --> 00:02:36,258 Suze: Then, we're going back to New York to do what? 49 00:02:36,419 --> 00:02:37,860 Suze: See a basketball game. 50 00:02:37,940 --> 00:02:41,990 KT: No, she's gonna go see her really great girlfriend Caitlin Clark. 51 00:02:42,220 --> 00:02:46,039 KT: Susie loves that three point downtown girl. 52 00:02:46,220 --> 00:02:50,320 Suze: That's the reason, everybody, we're going to a summer schedule 53 00:02:50,619 --> 00:02:54,600 Suze: because we are just all over the place. All right... 54 00:02:55,020 --> 00:02:58,859 KT: So Suze, don't we want to wish everyone a happy 55 00:02:58,860 --> 00:03:00,380 KT: America birthday weekend. 56 00:03:01,038 --> 00:03:07,619 Suze: Yeah, but I would rather wish everybody an incredible financial 57 00:03:07,619 --> 00:03:10,619 Suze: independence celebration. 58 00:03:11,199 --> 00:03:11,679 KT: Oh, there you go. 59 00:03:11,679 --> 00:03:14,639 Suze: Where it's just not Independence Day, but it's where you 60 00:03:14,639 --> 00:03:19,038 Suze: have now achieved financial independence. Now that would be a 61 00:03:19,038 --> 00:03:23,839 Suze: day to celebrate truthfully, all right, KT, what do you have for us today? 62 00:03:24,119 --> 00:03:29,000 KT: Well, my first, my first story, it's not even a question. 63 00:03:29,279 --> 00:03:31,839 KT: This is a warning for everyone. 64 00:03:32,258 --> 00:03:35,860 KT: And Suze, I chose this because this is absolutely top 65 00:03:35,860 --> 00:03:39,220 KT: of mind and you're gonna have to explain why. It's 66 00:03:39,220 --> 00:03:41,300 KT: called a romance scam. 67 00:03:42,059 --> 00:03:42,800 KT: Hi Suze... 68 00:03:42,940 --> 00:03:44,500 Suze: Does that mean you don't really love me? 69 00:03:44,740 --> 00:03:48,580 KT: No, I love you, but listen to what happened to Michael. 70 00:03:48,860 --> 00:03:52,940 KT: Michael wrote and said, Hi Suze. I realized the other 71 00:03:52,940 --> 00:03:56,759 KT: day that I had been talking to a romance scammer. 72 00:03:57,100 --> 00:04:00,740 KT: Here's what happened. The person I met was on a 73 00:04:00,740 --> 00:04:06,039 KT: dating site and quickly wanted to switch platforms to Telegram. 74 00:04:07,179 --> 00:04:10,100 KT: They used the story that their ex had lied to 75 00:04:10,100 --> 00:04:14,360 KT: them so much that he wanted to verify my identity. 76 00:04:14,619 --> 00:04:17,660 KT: He shared the front of his license as proof of 77 00:04:17,660 --> 00:04:18,660 KT: who he was. 78 00:04:19,019 --> 00:04:19,578 Suze: He wanted... 79 00:04:20,220 --> 00:04:20,899 Suze: Wait, his driver's license? 80 00:04:21,190 --> 00:04:26,219 KT: Yeah, his license. He wanted the same from me. Ready. 81 00:04:26,500 --> 00:04:29,959 KT: He also took a photo of the back and wanted 82 00:04:29,959 --> 00:04:30,940 KT: that too. 83 00:04:31,279 --> 00:04:35,390 KT: That was the first red flag that was uncomfortable for me, 84 00:04:35,730 --> 00:04:39,690 KT: but I did, even though I study fraud prevention, it 85 00:04:39,690 --> 00:04:42,799 KT: is so important that we talk about these things, Suze. 86 00:04:42,880 --> 00:04:46,649 KT: There's no embarrassment. So I'm gonna tell the story to 87 00:04:46,649 --> 00:04:50,290 KT: all of you. So Michael said he had mentioned that 88 00:04:50,290 --> 00:04:52,750 KT: he had worked so hard on his credit and gave 89 00:04:52,750 --> 00:04:57,609 KT: a credit score. He asked about mine. I nonchalantly told him. 90 00:04:58,070 --> 00:05:01,859 KT: We started discussing credit cards and he asked which ones 91 00:05:01,859 --> 00:05:06,579 KT: I had. I started digging further and further and I 92 00:05:06,579 --> 00:05:12,390 KT: realized that this was a very well developed scam. So Suze, 93 00:05:12,459 --> 00:05:15,299 KT: I just wanna say if you haven't seen them in person, 94 00:05:15,380 --> 00:05:17,859 KT: we should not share anything online. 95 00:05:18,170 --> 00:05:21,089 KT: That's all I wanted to say to you today. Thank 96 00:05:21,089 --> 00:05:23,010 KT: you so much for helping people. 97 00:05:23,410 --> 00:05:26,329 Suze: So, here's the thing I wanna say, KT, I'm actually 98 00:05:26,329 --> 00:05:27,890 Suze: happy you started with that one. 99 00:05:28,320 --> 00:05:33,122 Suze: Listen, first, there is a scammer on the Women and 100 00:05:33,122 --> 00:05:38,458 Suze: Money Community app. There's a scammer on Instagram, on Facebook 101 00:05:38,459 --> 00:05:42,000 Suze: that has a picture of me showing me when I 102 00:05:42,000 --> 00:05:44,420 Suze: happened to have been, by the way, in Italy. I 103 00:05:44,420 --> 00:05:47,619 Suze: don't know where he got that or she got that picture, 104 00:05:47,910 --> 00:05:52,760 Suze: saying I've switched my photo. Let's talk on Telegram. 105 00:05:53,380 --> 00:05:57,459 Suze: That is not me. You are to be careful. Do 106 00:05:57,459 --> 00:06:00,500 Suze: not ever think that I am going to want to 107 00:06:00,500 --> 00:06:03,059 Suze: talk to you because I don't want to talk to you. 108 00:06:03,260 --> 00:06:06,029 Suze: I don't want to communicate with you more than I 109 00:06:06,029 --> 00:06:11,579 Suze: communicate with you right here, just that simple. And if 110 00:06:11,579 --> 00:06:13,700 Suze: by chance you happen to write in. 111 00:06:14,029 --> 00:06:17,308 Suze: And I answer you, you'll know it's me when I 112 00:06:17,309 --> 00:06:20,609 Suze: answer you, but I will never answer you on Instagram. 113 00:06:20,790 --> 00:06:23,950 Suze: I will never answer you on Facebook. I will never 114 00:06:23,950 --> 00:06:26,589 Suze: answer you on the Women and Money Community app, except 115 00:06:26,589 --> 00:06:29,229 Suze: to say, no, this isn't me, or maybe a yes, 116 00:06:29,309 --> 00:06:33,109 Suze: but I will never ever ask you to speak to 117 00:06:33,109 --> 00:06:34,510 Suze: me on Telegram. 118 00:06:34,855 --> 00:06:38,724 Suze: Or any app or thing like that. That's number one. 119 00:06:38,774 --> 00:06:43,565 Suze: All right. Number two, this person said, unless you meet 120 00:06:43,565 --> 00:06:48,724 Suze: them in person, do not show them anything. All right. Now, 121 00:06:48,994 --> 00:06:53,204 Suze: the person that scammed this person that KT just wrote 122 00:06:53,204 --> 00:06:55,255 Suze: about has this person's 123 00:06:55,890 --> 00:07:01,459 Suze: driver's license, front and back, credit cards, all their back history. 124 00:07:01,640 --> 00:07:05,160 Suze: So if they happen to be asked information to see 125 00:07:05,160 --> 00:07:08,328 Suze: if it's really them, they're gonna know about this person. 126 00:07:08,720 --> 00:07:12,179 Suze: So as soon as that happens, forget about it. However, 127 00:07:12,760 --> 00:07:15,910 Suze: a little bit ago I got an email from a 128 00:07:15,910 --> 00:07:18,279 Suze: good friend of mine who lives here in Florida. 129 00:07:18,679 --> 00:07:22,459 Suze: And he said, Suze, can you please send a picture 130 00:07:23,000 --> 00:07:26,640 Suze: of yourself and sign it for this woman? She's such 131 00:07:26,640 --> 00:07:29,640 Suze: a fan, and I'm gonna go see her. 132 00:07:30,440 --> 00:07:33,279 Suze: And so I start writing him back and I said, 133 00:07:33,489 --> 00:07:36,239 Suze: where did you meet her? And he tells me on 134 00:07:36,239 --> 00:07:39,559 Suze: this dating site and everything, and it's love at first sight, 135 00:07:39,570 --> 00:07:41,600 Suze: and Suze, I just love her so much and on 136 00:07:41,600 --> 00:07:43,980 Suze: and on. I said, Well, what do you know about her? 137 00:07:44,640 --> 00:07:47,950 Suze: Now he's telling me she's in finance, she has her 138 00:07:47,950 --> 00:07:51,480 Suze: own company, she's this and that, and I'm just, you know, 139 00:07:51,600 --> 00:07:54,359 Suze: I'm going to go visit her and be with her. 140 00:07:55,119 --> 00:07:56,970 Suze: And I said, have you checked her out? 141 00:07:57,859 --> 00:08:00,339 Suze: If she's in finance, give me her name and let 142 00:08:00,339 --> 00:08:04,018 Suze: me check her out. So he gives me her name. 143 00:08:04,140 --> 00:08:08,540 Suze: There's no such person, right? She doesn't have any financial credentials. 144 00:08:08,799 --> 00:08:12,299 Suze: She has no business, so he was about to go 145 00:08:12,299 --> 00:08:18,989 Suze: visit her in person, and the scam would have continued, everybody. 146 00:08:19,549 --> 00:08:24,070 Suze: Again, I am asking you to be seriously careful with 147 00:08:24,070 --> 00:08:28,109 Suze: if you see my picture online or whatever, you know 148 00:08:28,109 --> 00:08:31,130 Suze: if it's me or not, you know it. It's either 149 00:08:31,130 --> 00:08:35,390 Suze: on Suze Orman.com on my real Suze 150 00:08:35,690 --> 00:08:40,390 Suze: Oman Instagram account or Facebook account or YouTube. It is 151 00:08:40,390 --> 00:08:43,880 Suze: not on anywhere else. Yes, I'm on X and Threads, 152 00:08:43,929 --> 00:08:46,770 Suze: but you know, if it's me, if it doesn't have 153 00:08:46,770 --> 00:08:50,090 Suze: that little check, it's not me. And when in doubt, 154 00:08:50,729 --> 00:08:55,260 Suze: forget about it. However, I want to say something. Stop 155 00:08:55,489 --> 00:08:59,809 Suze: doubting that the Ultimate Scam Protection program 156 00:09:00,390 --> 00:09:07,199 Suze: isn't real. Stop it. Nord Securities, who created NordVPN, you 157 00:09:07,200 --> 00:09:12,270 Suze: know them, they're all over the place. They decided to 158 00:09:12,280 --> 00:09:16,510 Suze: change from NordP Protect, which is different than NordVPN, same 159 00:09:16,510 --> 00:09:20,630 Suze: company but different types of programs to CoverOn. 160 00:09:21,450 --> 00:09:27,510 Suze: And now the Ultimate Scam Protection is from CoverOn, which 161 00:09:27,510 --> 00:09:31,690 Suze: really has a parent company known as Nord Securities. You 162 00:09:31,690 --> 00:09:35,330 Suze: just need to know that, but you're doubting everything. You're 163 00:09:35,330 --> 00:09:37,210 Suze: not doubting what you should be doubting. 164 00:09:37,929 --> 00:09:40,940 Suze: You're doubting what you should not be doubting. So when 165 00:09:40,940 --> 00:09:45,700 Suze: I send you to suze orman.com to do something, you 166 00:09:45,700 --> 00:09:51,459 Suze: should know it's real, OK, and do it. You know, KT, 167 00:09:52,049 --> 00:09:54,848 Suze: I'm more passionate about it than I was when we 168 00:09:54,849 --> 00:09:58,450 Suze: first brought it out, because of how I see people 169 00:09:58,450 --> 00:10:03,030 Suze: are trying to use my picture to scam others. Because 170 00:10:03,039 --> 00:10:05,770 Suze: it's me, you're going to be giving them money if 171 00:10:05,770 --> 00:10:08,849 Suze: you think it's me, and it's not. Why else would 172 00:10:08,849 --> 00:10:10,349 Suze: they be scamming you? 173 00:10:11,484 --> 00:10:15,804 Suze: So, please, I am begging you to protect yourself. All right, next, KT. 174 00:10:16,684 --> 00:10:21,205 KT: All right, my next question is from Alma, and Alma said, Suze, 175 00:10:21,284 --> 00:10:27,145 KT: my Roth IRA was in CDs and they matured on 6/22. 176 00:10:27,405 --> 00:10:29,965 KT: I am 72 years old and single. 177 00:10:30,419 --> 00:10:33,330 KT: I do draw Social Security and still work for a 178 00:10:33,330 --> 00:10:37,289 KT: little extra money. I have other CDs, so I don't 179 00:10:37,289 --> 00:10:41,909 KT: expect to need my IRA unless there's a medical crisis. 180 00:10:42,130 --> 00:10:47,489 KT: I can renew the CDs at 4%, but my broker 181 00:10:47,489 --> 00:10:49,949 KT: suggested a fixed annuity. 182 00:10:50,340 --> 00:10:51,369 Suze: Within her IRA? 183 00:10:51,650 --> 00:10:52,669 KT: I don't know. Ready? 184 00:10:53,114 --> 00:10:55,854 KT: I am not a money expert like you, so I'm 185 00:10:55,854 --> 00:11:00,984 KT: hoping for some guidance. Are you familiar with Gainbridge? What's Gainbridge? 186 00:11:01,034 --> 00:11:04,034 Suze: It's an, it's a company that obviously sells annuities. 187 00:11:04,195 --> 00:11:08,853 KT: I am terrified. Ready, Suze? Listen, everyone, for this word. 188 00:11:09,114 --> 00:11:13,835 KT: I am terrified I could lose my Roth IRA status 189 00:11:13,835 --> 00:11:15,255 KT: and or my money. 190 00:11:15,659 --> 00:11:18,219 KT: I only have a few days, Suze. I'm reaching out 191 00:11:18,219 --> 00:11:20,299 KT: to the smartest person I know. 192 00:11:20,539 --> 00:11:25,530 Suze: Obviously, KT, the IRA that she originally mentioned is a 193 00:11:25,530 --> 00:11:30,020 Suze: Roth IRA, and because it is a Roth IRA, Alma, 194 00:11:30,380 --> 00:11:34,179 Suze: you do not have to take required minimum distributions when 195 00:11:34,179 --> 00:11:37,020 Suze: you're 73. That's number one. Number two: 196 00:11:37,784 --> 00:11:41,834 Suze: Why in the world would you ever do an annuity, 197 00:11:42,025 --> 00:11:48,585 Suze: which is tax deferred in a tax-free retirement account? Don't 198 00:11:48,585 --> 00:11:52,465 Suze: do it. Don't do it. Don't do it. Renew your 4% 199 00:11:52,465 --> 00:11:56,224 Suze: CDs if you want, do whatever you want, but the 200 00:11:56,224 --> 00:12:00,465 Suze: fact that somebody came to you and advised you to 201 00:12:00,465 --> 00:12:04,145 Suze: do something and you didn't go to them and ask, 202 00:12:04,515 --> 00:12:06,924 Suze: that is a warning sign, everybody. 203 00:12:07,520 --> 00:12:11,520 Suze: When somebody makes a suggestion, the first question you are 204 00:12:11,520 --> 00:12:14,189 Suze: to ask is, and can you tell me what is 205 00:12:14,190 --> 00:12:17,569 Suze: your commission if I do this? Can you tell me 206 00:12:17,719 --> 00:12:20,400 Suze: if I renew a CD, what is your commission? And 207 00:12:20,400 --> 00:12:23,159 Suze: they will say, hopefully zero, or they're lying to you. 208 00:12:23,580 --> 00:12:26,940 Suze: So why does a financial advisor suggest something to you? 209 00:12:27,260 --> 00:12:31,960 Suze: Because they'd rather make 4 or 5% or more versus zero. 210 00:12:32,179 --> 00:12:34,419 Suze: Don't do it, don't do it, don't do it, Alma. 211 00:12:34,580 --> 00:12:37,780 Suze: But what's great is you trusted your gut. One of 212 00:12:37,780 --> 00:12:41,710 Suze: the laws of money, trust your gut more than you 213 00:12:41,710 --> 00:12:42,679 Suze: trust others. 214 00:12:43,179 --> 00:12:46,739 Suze: Except me. All right, go on. No, actually you should 215 00:12:46,739 --> 00:12:48,750 Suze: trust your gut even when it comes to me. All right, 216 00:12:48,869 --> 00:12:49,109 Suze: go on, KT. 217 00:12:50,429 --> 00:12:53,580 KT: This next quest... I love this next email we received. 218 00:12:53,590 --> 00:12:57,848 KT: It said hello to the dynamic duo of KT and Suze. 219 00:12:58,150 --> 00:13:01,190 KT: I have a quick question for you awesome ladies. I 220 00:13:01,190 --> 00:13:05,530 KT: just finished completing all the sections of my revocable trust 221 00:13:05,750 --> 00:13:09,450 KT: and my must-have documents. So now I'm at the part 222 00:13:09,450 --> 00:13:11,070 KT: of funding my trust. 223 00:13:11,580 --> 00:13:15,099 KT: And this is the question. I already have a trust. 224 00:13:15,469 --> 00:13:20,030 KT: This trust, I imagine, replaces my previous trust. Do I 225 00:13:20,030 --> 00:13:23,150 KT: have to send the documents to the bank that has 226 00:13:23,150 --> 00:13:27,109 KT: my mortgage? And then Marcella goes on to say, my 227 00:13:27,109 --> 00:13:30,789 KT: home and bank documents are in my trust name. Your 228 00:13:30,789 --> 00:13:34,449 KT: help with this question is appreciated, but wait, she signs off. 229 00:13:34,700 --> 00:13:38,949 KT: This is a little hint. Keep shining bright and making 230 00:13:38,950 --> 00:13:40,969 KT: waves of change. 231 00:13:43,780 --> 00:13:48,979 KT: Oh Marcella, you know us. Suze gave a talk to 232 00:13:48,979 --> 00:13:53,799 KT: this great organization in North Florida called Waves of Change. 233 00:13:54,059 --> 00:13:57,099 KT: I loved that day we were there. So Marcella is 234 00:13:57,099 --> 00:13:58,479 KT: from the Waves of Change. 235 00:13:58,820 --> 00:14:02,260 Suze: So Marcella, here's the thing, it depends if it's a 236 00:14:02,260 --> 00:14:03,679 Suze: brand new trust. 237 00:14:04,909 --> 00:14:08,400 Suze: And all you should give them a copy of the 238 00:14:08,400 --> 00:14:12,500 Suze: new trust, and the main reason is the must-have documents 239 00:14:12,739 --> 00:14:17,329 Suze: trust has an incapacity clause in it. I doubt highly 240 00:14:17,359 --> 00:14:21,520 Suze: that the original trust you did that wasn't the must-have 241 00:14:21,520 --> 00:14:26,520 Suze: documents possibly doesn't have the same incapacity clause that the 242 00:14:26,520 --> 00:14:30,349 Suze: must-have documents has in it. So if I were you, 243 00:14:30,609 --> 00:14:33,640 Suze: just give them copies, your brokerage firm, your 244 00:14:33,869 --> 00:14:38,070 Suze: bank, we do that we make sure that our financial 245 00:14:38,070 --> 00:14:43,469 Suze: institutions always have the latest copy of our trust. All right, KT, yes. 246 00:14:43,750 --> 00:14:46,950 KT: This next email, Suze, is not a question, but it's 247 00:14:46,950 --> 00:14:50,270 KT: something down memory lane. I think you'll really enjoy it. 248 00:14:50,309 --> 00:14:51,729 KT: All right, everyone, listen up. 249 00:14:52,450 --> 00:14:56,309 KT: Dear Miss Orman, my name is David, and my parents, 250 00:14:56,330 --> 00:15:03,840 KT: Wayne and Rosie followed your investment advice in 1986 when 251 00:15:03,840 --> 00:15:07,479 KT: you then worked for Prudential-Bache in California. 252 00:15:07,609 --> 00:15:08,000 Suze: In Orinda California. 253 00:15:09,210 --> 00:15:10,630 KT: Suze, you were 35 years old. 254 00:15:11,030 --> 00:15:11,489 Suze: Yes, I was. 255 00:15:11,609 --> 00:15:14,890 KT: So wait, listen to how smart that young 35-year-old was 256 00:15:14,890 --> 00:15:15,809 KT: at the time. 257 00:15:16,260 --> 00:15:18,989 KT: My parents wanted me to reach out to you and 258 00:15:18,989 --> 00:15:23,840 KT: thank you for helping and advising them 40 years ago. 259 00:15:24,219 --> 00:15:28,739 KT: The investments performed exactly how you said they would and 260 00:15:28,739 --> 00:15:33,460 KT: gave my parents security and peace of mind during their retirement. 261 00:15:33,890 --> 00:15:37,229 KT: They remember you coming to their home in Walnut Creek, 262 00:15:37,409 --> 00:15:42,090 KT: and they were so impressed. At 96 and 93 years 263 00:15:42,090 --> 00:15:45,809 KT: old today, they asked me to help them with their 264 00:15:45,809 --> 00:15:49,989 KT: financial affairs. That is how I discovered this history. 265 00:15:50,609 --> 00:15:55,510 KT: I've included my dad's original statement, Suze, where he invested 266 00:15:55,510 --> 00:16:03,489 KT: $50,000 with you and now its current value is $302,000. 267 00:16:03,960 --> 00:16:05,419 Suze: And all tax free too. 268 00:16:06,080 --> 00:16:09,729 KT: On behalf of our family, thank you for being such 269 00:16:09,729 --> 00:16:14,320 KT: a positive part in their planning and financial journey. Isn't 270 00:16:14,320 --> 00:16:17,789 KT: that sweet? 35 years old, Suze? 271 00:16:19,530 --> 00:16:24,210 KT: 35 years old. I love that. I love this letter. 272 00:16:24,770 --> 00:16:25,890 KT: So Wayne... 273 00:16:26,130 --> 00:16:27,409 Suze: Wait, can I tell you a story? 274 00:16:27,409 --> 00:16:28,309 KT: About Wayne and Rosie? 275 00:16:28,369 --> 00:16:29,440 Suze: No, about Prudential. 276 00:16:30,020 --> 00:16:31,130 KT: Oh boy, here we go. 277 00:16:31,190 --> 00:16:36,349 Suze: So here it was Orinda, California, only woman really stockbroker again. 278 00:16:36,780 --> 00:16:39,640 Suze: In these beautiful offices and now I'm a vice president 279 00:16:39,640 --> 00:16:40,739 Suze: of investments for them. 280 00:16:40,739 --> 00:16:42,580 KT: 35 year old vice president, that's a big deal. 281 00:16:43,739 --> 00:16:48,580 Suze: And all they had were these heavy duty wood desks 282 00:16:48,580 --> 00:16:51,280 Suze: and all these male because they were all for men 283 00:16:51,570 --> 00:16:54,260 Suze: and I'm like I cannot relate to this. 284 00:16:55,109 --> 00:16:58,890 Suze: So, I went out and I bought my own furniture, 285 00:16:59,169 --> 00:17:04,500 Suze: lacquered furniture, black, pink. It was stunning, new curtains on 286 00:17:04,500 --> 00:17:07,670 Suze: the thing, the whole, I redid it, came in with 287 00:17:07,670 --> 00:17:11,829 Suze: the movers on a Saturday, moved all my furniture in 288 00:17:11,829 --> 00:17:15,389 Suze: this office out, put it in front of the manager's 289 00:17:15,390 --> 00:17:21,109 Suze: office outside, and redid the whole thing. Monday, everybody comes 290 00:17:21,109 --> 00:17:25,678 Suze: in and goes, what the hell? And I decided this 291 00:17:25,678 --> 00:17:29,879 Suze: is what a woman's office should look like. KT, those... 292 00:17:30,188 --> 00:17:31,119 KT: Did they let you keep it like that? 293 00:17:31,519 --> 00:17:33,918 Suze: They did, right? But you wanna know something? Those were 294 00:17:33,917 --> 00:17:37,298 Suze: the days I was a little bit more rebellious, I think. 295 00:17:37,558 --> 00:17:41,498 Suze: But I would wear blue jeans with my cowboy boots 296 00:17:41,638 --> 00:17:44,359 Suze: with a leather jacket, and that's how I dressed. 297 00:17:45,030 --> 00:17:47,829 Suze: Right, and I would light incense in my office to 298 00:17:47,829 --> 00:17:53,589 Suze: keep everything calm. OK. And I was their top producing broker. 299 00:17:53,739 --> 00:17:57,369 KT: 35 years old, vice president of Prudential-Bache. That's something. 300 00:17:57,949 --> 00:17:59,290 Suze: Remember that Preston Cranford? 301 00:18:00,290 --> 00:18:01,869 KT: I met Preston. 302 00:18:01,949 --> 00:18:03,270 Suze: He was the manager at the time. 303 00:18:03,300 --> 00:18:03,660 KT: I love Preston. 304 00:18:03,920 --> 00:18:05,310 Suze: We're still friends to this day. 305 00:18:05,550 --> 00:18:05,949 KT: How is he? 306 00:18:06,119 --> 00:18:07,750 KT: He's good. Oh, great. 307 00:18:08,199 --> 00:18:08,829 Suze: He's good. 308 00:18:09,040 --> 00:18:12,000 KT: Oh man, I remember him. He loved you. Loved you so much. 309 00:18:12,430 --> 00:18:14,469 Suze: Oh my God, the things I did in that office. 310 00:18:14,550 --> 00:18:16,079 KT: Yeah, he told some stories. 311 00:18:16,199 --> 00:18:16,699 Suze: All right go on. 312 00:18:17,040 --> 00:18:19,719 KT: All right, that's why I wanted to do a special 313 00:18:19,719 --> 00:18:24,599 KT: about her life. Everybody. There are stories. She keeps saying, no, no, no, no, no, 314 00:18:24,760 --> 00:18:26,839 KT: but it would be such a fun special. 315 00:18:27,219 --> 00:18:28,510 KT: Well, let's ask everybody. 316 00:18:28,569 --> 00:18:31,800 KT: Yeah, how many of you would like to see and 317 00:18:31,800 --> 00:18:36,363 KT: watch maybe on Netflix or somewhere a special about Suze Orman? 318 00:18:36,474 --> 00:18:40,324 KT: The Life of Suze Orman. How a waitress became the 319 00:18:40,324 --> 00:18:45,045 KT: world's personal finance expert. You vote, let me know, and 320 00:18:45,045 --> 00:18:46,314 KT: KT will make it happen. 321 00:18:46,675 --> 00:18:51,685 Suze: Write into podcast at ask Suze.com. That is the new 322 00:18:51,685 --> 00:18:55,464 Suze: email address that all of you should use because that 323 00:18:55,525 --> 00:18:59,084 Suze: is an email address that can't be hacked, just so 324 00:18:59,084 --> 00:19:00,405 Suze: you know. All right, go on. 325 00:19:00,484 --> 00:19:03,125 KT: Great. OK, my next question is from Terry. 326 00:19:04,010 --> 00:19:07,069 KT: Hi KT and Suze, I've been listening to your podcast 327 00:19:07,250 --> 00:19:10,050 KT: for two years and learning a lot from you. I 328 00:19:10,050 --> 00:19:15,170 KT: am a 69-year-old widow and still working. I'm relatively healthy. 329 00:19:15,349 --> 00:19:19,099 KT: I have an adult son, and he is living independently. 330 00:19:19,369 --> 00:19:22,939 KT: My house has been paid off. I have about 1.1 331 00:19:22,939 --> 00:19:27,689 KT: million combined traditional and Roth IRA. I also have a 332 00:19:27,689 --> 00:19:31,810 KT: pension of about 400,000. I have a whole life insurance 333 00:19:31,810 --> 00:19:33,449 KT: of about 100,000, 334 00:19:33,660 --> 00:19:38,430 KT: that my husband purchased for me 40 years ago. So Suze, 335 00:19:38,579 --> 00:19:42,859 KT: I have three questions. The first question: Should I surrender 336 00:19:42,859 --> 00:19:44,859 KT: the whole life insurance policy? 337 00:19:44,979 --> 00:19:48,500 Suze: Answer to that is yes. You have more than enough money. 338 00:19:48,780 --> 00:19:52,449 Suze: Your adult child is independent. It is a waste of money. 339 00:19:52,530 --> 00:19:55,489 Suze: You are 69 years of age. You have a lot 340 00:19:55,489 --> 00:19:58,290 Suze: of years left. It is a waste. You might want 341 00:19:58,290 --> 00:20:02,089 Suze: to surrender it. Probably you paid in more than what 342 00:20:02,089 --> 00:20:04,209 Suze: you're going to get back, so I doubt highly you're 343 00:20:04,209 --> 00:20:05,890 Suze: gonna have to pay any taxes on it. 344 00:20:06,250 --> 00:20:08,889 Suze: You might want to look into a long-term care insurance 345 00:20:08,890 --> 00:20:12,410 Suze: policy or putting it in a brokerage account and do 346 00:20:12,410 --> 00:20:16,199 Suze: what with it? Invest it, or if you're still working, 347 00:20:16,530 --> 00:20:19,750 Suze: Roth IRAs or whatever it may be, but get rid 348 00:20:19,890 --> 00:20:23,530 Suze: of the whole life policy as long as you know 349 00:20:23,810 --> 00:20:26,609 Suze: that you are a healthy, healthy, healthy. 350 00:20:26,936 --> 00:20:27,265 Suze: All right, next. 351 00:20:28,265 --> 00:20:31,504 KT: Question number two. What should I do with my pension 352 00:20:31,505 --> 00:20:34,505 KT: plan when I retire next year? Should I take a 353 00:20:34,505 --> 00:20:36,705 KT: lump sum or monthly payment? 354 00:20:36,865 --> 00:20:40,865 Suze: Lump sum. The reason is this if you annuitize it, 355 00:20:41,036 --> 00:20:45,666 Suze: your pension, once you die, then your son isn't going 356 00:20:45,666 --> 00:20:47,345 Suze: to be getting any more money. 357 00:20:47,442 --> 00:20:51,942 Suze: It's over. Therefore, since we're canceling the life insurance policy, 358 00:20:52,582 --> 00:20:57,120 Suze: do an IRA rollover with your pension, put it into 359 00:20:57,121 --> 00:21:01,641 Suze: a rollover account, depending on your income, you can start 360 00:21:01,641 --> 00:21:04,702 Suze: converting it little by little if you want to a Roth, 361 00:21:04,881 --> 00:21:10,241 Suze: but within the rollover account, that's where you can invest 362 00:21:10,241 --> 00:21:13,521 Suze: it in any way you want. Again, I think if 363 00:21:13,521 --> 00:21:16,102 Suze: you listen to the Women and Money podcast enough, 364 00:21:16,540 --> 00:21:18,420 Suze: I think there are things that you can learn to 365 00:21:18,420 --> 00:21:20,819 Suze: do it and you really don't need much help with it. 366 00:21:21,060 --> 00:21:23,260 Suze: There you go. And if you do, all right, look 367 00:21:23,260 --> 00:21:27,219 Suze: for a financial advisor that is a good one but 368 00:21:27,219 --> 00:21:31,550 Suze: doesn't operate on commissions. They're just like a fiduciary. That's it. 369 00:21:31,819 --> 00:21:32,179 Suze: Next one, KT. 370 00:21:32,900 --> 00:21:36,659 KT: So question number three, her final question, Terry said: 371 00:21:36,954 --> 00:21:41,594 KT: If I decide to work after age 70 with fewer 372 00:21:41,594 --> 00:21:47,593 KT: hours per week, could I still contribute to my Roth IRA? Absolutely, yes, 373 00:21:47,675 --> 00:21:48,505 KT: it's earned income. 374 00:21:48,714 --> 00:21:49,464 Suze: There you go. 375 00:21:49,755 --> 00:21:51,824 KT: Thank you so much for your help, Suze. 376 00:21:51,994 --> 00:21:53,635 Suze: Oh, you're so welcome. Next question, KT. 377 00:21:54,234 --> 00:21:56,915 KT: This next question is from Sheila. 378 00:21:57,920 --> 00:22:02,540 KT: Sheila said, Dear Suze and KT, longtime listener, part-time pupil. 379 00:22:04,050 --> 00:22:04,810 Suze: What does that mean? 380 00:22:04,890 --> 00:22:07,810 KT: Well, here's what it means. I am a 55 year 381 00:22:07,810 --> 00:22:12,930 KT: old teacher. There you go, part-time pupil. I have a 382 00:22:12,930 --> 00:22:17,729 KT: loan from my 401k that I'm paying back to myself 383 00:22:17,729 --> 00:22:20,310 KT: at $1,050 a month. 384 00:22:20,410 --> 00:22:21,369 Suze: That was a hefty loan. 385 00:22:21,569 --> 00:22:25,339 KT: Come September, I will have two years left to finish. 386 00:22:25,920 --> 00:22:30,469 KT: I can cover paying back the remaining $26,000 but that 387 00:22:30,469 --> 00:22:35,560 KT: would leave me with only about a $10,000 savings cushion. 388 00:22:35,920 --> 00:22:39,280 KT: If I did pay it back, I could increase my 389 00:22:39,280 --> 00:22:44,635 KT: Roth contribution and slowly add back to my savings because 390 00:22:44,645 --> 00:22:49,194 KT: I have an extra 1,050 a month. So is it 391 00:22:49,194 --> 00:22:51,834 KT: a good move to repay it now, or is it 392 00:22:51,834 --> 00:22:54,264 KT: better to plug along for two more years? 393 00:22:54,364 --> 00:22:56,034 Suze: So what I would do if I were you, I 394 00:22:56,035 --> 00:23:00,774 Suze: would absolutely repay it now. And the reason is this 395 00:23:01,074 --> 00:23:04,415 Suze: when your money is not in your retirement account. 396 00:23:05,280 --> 00:23:09,199 Suze: You're missing out on the movement of these markets, and 397 00:23:09,199 --> 00:23:12,719 Suze: I get everybody, these markets are up, these markets are down, 398 00:23:12,800 --> 00:23:19,479 Suze: but overall, if you're invested correctly, you are doing incredible, incredible. 399 00:23:19,680 --> 00:23:22,000 Suze: So it's not just that for those of you who 400 00:23:22,000 --> 00:23:25,599 Suze: take out 401k loans. Oh, but I'm paying myself back 401 00:23:25,599 --> 00:23:28,819 Suze: the interest, so I'm not really losing out on anything. 402 00:23:28,959 --> 00:23:31,160 Suze: Oh yes, you are. 403 00:23:31,560 --> 00:23:34,479 Suze: So since you have the money, I want you to 404 00:23:34,479 --> 00:23:37,939 Suze: pay it back. That's it. Just pay it back. Listen, 405 00:23:38,119 --> 00:23:40,679 Suze: you get in trouble again, you can take another loan 406 00:23:40,680 --> 00:23:44,920 Suze: if you have to. However, that is what you should 407 00:23:44,920 --> 00:23:48,300 Suze: do next, KT, we have time for one more. 408 00:23:48,400 --> 00:23:51,280 KT: OK, Suze, I have one more question. My favorite topic, 409 00:23:51,390 --> 00:23:53,760 KT: Roth Roth Roth. Hi, Suze and KT.. 410 00:23:53,880 --> 00:23:55,189 Suze: Did you purposely save that one for last? 411 00:23:55,189 --> 00:23:58,255 KT: Yes. Roth Roth Roth. My wife and I are late 412 00:23:58,255 --> 00:24:02,974 KT: bloomers to the investment and saving retirement world. I am 413 00:24:02,974 --> 00:24:06,974 KT: 60 years old. She is 55. I started listening to 414 00:24:06,974 --> 00:24:11,165 KT: your show three years ago when my income increased rapidly. 415 00:24:11,564 --> 00:24:14,935 KT: Now our incomes have both increased rapidly, and we're trying 416 00:24:14,935 --> 00:24:20,774 KT: to contribute max contributions into our solo 401ks. We are 417 00:24:20,775 --> 00:24:27,334 KT: both now making $190,000 each in our individual businesses. 418 00:24:28,030 --> 00:24:32,270 KT: She is opening a solo 401k similar to mine where 419 00:24:32,270 --> 00:24:37,150 KT: we can choose Roth or traditional for the employer portion. 420 00:24:37,550 --> 00:24:41,630 KT: We are in the 24 to 32% tax bracket. We 421 00:24:41,630 --> 00:24:46,188 KT: have minimal business deductions. I hear you say invest in 422 00:24:46,189 --> 00:24:50,339 KT: Roth Roth Roth Roth Roth, which I did for three years. 423 00:24:50,709 --> 00:24:53,829 KT: Would our situation be an exception to this because we 424 00:24:53,829 --> 00:24:56,629 KT: are in such a high tax bracket now. 425 00:24:57,119 --> 00:24:59,718 KT: Wouldn't we then be in a lower tax bracket when 426 00:24:59,719 --> 00:25:03,579 KT: we use our investment income in the future? I appreciate 427 00:25:03,579 --> 00:25:08,079 KT: you both so much and you make me laugh. I just, 428 00:25:08,160 --> 00:25:10,760 KT: he says I laughed just thinking about the show. 429 00:25:11,160 --> 00:25:13,839 Suze: So here's the thing, it figures your last question would 430 00:25:13,839 --> 00:25:18,020 Suze: be kind of a difficult one, but that's besides the point, so. 431 00:25:18,739 --> 00:25:22,290 Suze: For those of you who have an individual business, it's 432 00:25:22,290 --> 00:25:26,339 Suze: just your business, no employees, and you want to contribute 433 00:25:26,339 --> 00:25:31,540 Suze: the absolute max to a retirement account, then you wanna 434 00:25:31,540 --> 00:25:36,040 Suze: open up what's called a solo Roth 401k. 435 00:25:36,609 --> 00:25:41,359 Suze: Now, in most cases if you are the employer, let's 436 00:25:41,359 --> 00:25:46,140 Suze: just say that is true, no employees, then you get 437 00:25:46,140 --> 00:25:52,270 Suze: to contribute both as an employee and as an employer. However, 438 00:25:52,810 --> 00:25:55,489 Suze: normally I would say to you I would do Roth 439 00:25:55,489 --> 00:26:00,420 Suze: all the way, no exception. However, a lot of times 440 00:26:00,520 --> 00:26:05,810 Suze: an employer contribution has to go into the traditional part 441 00:26:05,910 --> 00:26:11,160 Suze: of the solo Roth 401k. The employee version can go 442 00:26:11,160 --> 00:26:15,540 Suze: into the Roth, so you have to divide them. However, 443 00:26:16,000 --> 00:26:18,780 Suze: according to the Secure 2.0 Act. 444 00:26:19,530 --> 00:26:24,089 Suze: Now, you are allowed to put the employer part into 445 00:26:24,089 --> 00:26:28,229 Suze: a Roth. However, you have to know that your solo 446 00:26:28,229 --> 00:26:34,429 Suze: Roth 401k allows that. So, worst case scenario, put the 447 00:26:34,430 --> 00:26:36,829 Suze: employee portion into the Roth. 448 00:26:37,229 --> 00:26:43,069 Suze: Put the employer portion into the traditional so you have both. However, 449 00:26:43,359 --> 00:26:46,790 Suze: if you have the ability to put all of it 450 00:26:46,790 --> 00:26:51,829 Suze: into the Roth version, both sides, I would still go 451 00:26:51,829 --> 00:26:54,010 Suze: for that 100%. 452 00:26:54,589 --> 00:26:57,669 Suze: I know you want to save money on taxes. I know, 453 00:26:57,729 --> 00:27:00,869 Suze: but if you're that high of an earner, don't you get, 454 00:27:00,949 --> 00:27:05,290 Suze: as you get older, whatever you have in a traditional 455 00:27:05,290 --> 00:27:09,609 Suze: retirement account, you're gonna have to take required minimum distributions. 456 00:27:09,829 --> 00:27:12,910 Suze: If you die and it goes to your kids or whatever, 457 00:27:13,270 --> 00:27:15,849 Suze: they're gonna have to pay ordinary income tax on it. 458 00:27:16,069 --> 00:27:20,270 Suze: But bottom line is this you are compounding that money 459 00:27:20,270 --> 00:27:22,839 Suze: in there for the government. 460 00:27:23,270 --> 00:27:26,949 Suze: So the larger it grows, the more you're going to 461 00:27:26,949 --> 00:27:30,310 Suze: have to take out in RMDs, and who knows what 462 00:27:30,310 --> 00:27:34,469 Suze: tax brackets are gonna be years from now. You don't 463 00:27:34,469 --> 00:27:40,449 Suze: know that. So, bottom line, you heard my answer. You know, KT, 464 00:27:41,109 --> 00:27:44,829 Suze: I think what I'm gonna have to do is next Sunday, 465 00:27:45,680 --> 00:27:50,030 Suze: rather than an Ask KT and Suze anything, I will do 466 00:27:50,209 --> 00:27:51,469 Suze: a Suze school. 467 00:27:52,069 --> 00:27:54,988 Suze: And I'll do a Suze School on what's happening in 468 00:27:54,989 --> 00:27:57,670 Suze: the market and all the things that I know you 469 00:27:57,670 --> 00:28:01,130 Suze: want to know how the FITZ ETF is doing because 470 00:28:01,130 --> 00:28:04,550 Suze: you all write me all these things and I'll do 471 00:28:04,550 --> 00:28:10,770 Suze: a recap on solo Roth 401ks so you know exactly 472 00:28:10,770 --> 00:28:14,020 Suze: how they work. All right, Miss Travis, what do you think? 473 00:28:14,189 --> 00:28:16,829 KT: I think that's a good idea. So next Sunday will 474 00:28:16,829 --> 00:28:18,879 KT: be summer update Suze School. 475 00:28:19,589 --> 00:28:20,560 Suze: And I think we should, alternate. 476 00:28:21,229 --> 00:28:23,229 KT: I think that's a good idea. It's like the middle 477 00:28:23,229 --> 00:28:24,300 KT: of the year. Why not? 478 00:28:24,829 --> 00:28:28,369 Suze: Right, so it won't always just be Ask KT and Suze Anything. 479 00:28:28,670 --> 00:28:31,589 Suze: When I feel the need to update you on something, 480 00:28:32,189 --> 00:28:32,969 Suze: we will. 481 00:28:33,270 --> 00:28:37,688 KT: So until next Sunday, everyone, you stay safe and remember 482 00:28:37,949 --> 00:28:40,430 KT: all you have to do is live by this credo: 483 00:28:40,750 --> 00:28:45,630 KT: people first, then money, then things, and maybe a little 484 00:28:45,630 --> 00:28:47,010 KT: 'smore on the side. 485 00:28:48,209 --> 00:28:52,599 Suze: Are you kidding me? 'Smore what? 'Smore money, 'smoe whatever. 486 00:28:52,900 --> 00:28:56,839 Suze: All right, everybody stay safe and see you Sunday. Bye bye.