1 00:00:41,070 --> 00:00:48,500 Suze: February 16th, 2023 guess who's sitting right next to me? 2 00:00:48,510 --> 00:00:50,860 KT: Me, KT. 3 00:00:50,870 --> 00:00:52,980 Suze: KT is right here. 4 00:00:53,600 --> 00:00:54,350 KT: Did you have fun last night? 5 00:00:55,800 --> 00:00:57,200 Suze: Oh my God, those people are crazy. 6 00:00:57,200 --> 00:01:00,080 KT: Right? We were in Margaritaville, everybody. 7 00:01:00,090 --> 00:01:03,460 Suze: So as you know, Jimmy Buffett is a friend of 8 00:01:03,460 --> 00:01:07,400 Suze: ours and he invited us to come see him in concert. 9 00:01:07,410 --> 00:01:15,830 KT: Our first Iimmy live concert. Actually, off the charts, Margaritaville, baby. Right. 10 00:01:16,150 --> 00:01:21,490 Suze: Everybody knew every word to every one of his songs, except 11 00:01:21,620 --> 00:01:22,740 Suze: for us. 12 00:01:22,750 --> 00:01:26,830 KT: So we just smiled and kind of mouthed it. 13 00:01:27,160 --> 00:01:29,959 Suze: But I have to tell you fabulous concert, you should 14 00:01:29,959 --> 00:01:33,990 Suze: all go try to see him if you can. But KT, what is today? 15 00:01:35,370 --> 00:01:36,060 KT: The 16th? 16 00:01:37,590 --> 00:01:39,289 Suze: Yes, but it's Ask.. 17 00:01:39,300 --> 00:01:43,530 KT: Oh, it's Ask Suze and KT... Ask... KT is going 18 00:01:43,530 --> 00:01:47,090 KT: to ask Suze everything you want to know day. 19 00:01:48,300 --> 00:01:52,730 Suze: It's Thursday. Ask Suze and KT anything. Yeah, we're still 20 00:01:52,730 --> 00:01:57,160 Suze: in Florida. And we go back to the island this 21 00:01:57,160 --> 00:02:00,740 Suze: afternoon actually, when we're done with this podcast and here's 22 00:02:00,740 --> 00:02:03,290 Suze: the good news, everybody. This is why you tune in 23 00:02:03,290 --> 00:02:05,820 Suze: to the women and money podcast and everybody's smart enough 24 00:02:05,820 --> 00:02:06,430 Suze: to listen. 25 00:02:06,600 --> 00:02:10,330 Suze: KT is so excited to go back because why? 26 00:02:10,340 --> 00:02:15,290 KT: My garden doesn't have grubs. Oh well, Colo And I 27 00:02:15,290 --> 00:02:17,100 KT: have been keeping an eye on it. So we don't 28 00:02:17,100 --> 00:02:20,500 KT: get grub worms. But I'm most excited to see how 29 00:02:20,500 --> 00:02:23,880 KT: much everything grew. And to plant more spring plants. 30 00:02:23,889 --> 00:02:27,600 Suze: Because everything she's tried to plant since we put in 31 00:02:27,610 --> 00:02:28,530 Suze: the garden. 32 00:02:28,730 --> 00:02:33,150 KT: The grubs... we had a grub worm infestation and it's 33 00:02:33,150 --> 00:02:37,040 KT: very difficult but it's also my Aunt Arlene's birthday today. 34 00:02:37,040 --> 00:02:41,489 KT: It's a nice day. Arlene. Happy, happy birthday. We love you. 35 00:02:41,490 --> 00:02:44,019 KT: We miss you. I know it's cold up in New 36 00:02:44,020 --> 00:02:47,130 KT: Jersey but we'll get you down here soon enough. 37 00:02:47,139 --> 00:02:50,540 Suze: All right sweetheart, are you ready to start ready? Ok? Are you sure? Are you recovered from last night? 38 00:02:55,410 --> 00:03:01,669 KT: No (laughs) first question is from Teresa. Hi Suze and KT. 39 00:03:01,680 --> 00:03:08,550 KT: Thanks for your wisdom and banter. Should we banter. I 40 00:03:08,550 --> 00:03:12,360 KT: am 62, a recently retired. R. N. 41 00:03:12,880 --> 00:03:17,180 KT: And congratulations. We love nurses and doctors but nurses and 42 00:03:17,180 --> 00:03:21,350 KT: teachers are Suze's favorite. So she said I have an 43 00:03:21,350 --> 00:03:29,280 KT: IRA and Roth IRA. Current value is 1.4 million. I 44 00:03:29,280 --> 00:03:33,480 KT: have no debt and no dependence. My question is regarding 45 00:03:33,480 --> 00:03:36,790 KT: my pension. Should I take it as a lump sum? 46 00:03:36,790 --> 00:03:41,790 KT: Roll over into my IRA or as a monthly fixed income? 47 00:03:42,160 --> 00:03:47,600 KT: The lump sum amount is 150,000. The monthly payment option 48 00:03:47,600 --> 00:03:54,180 KT: would be approximately 800 - 800 dollars a month. I 49 00:03:54,180 --> 00:03:56,860 KT: have gone back and forth on the two scenarios. I 50 00:03:56,860 --> 00:04:00,040 KT: appreciate your input. Thank you. 51 00:04:00,050 --> 00:04:04,480 Suze: This one is actually easy, my dear Theresa. I would 52 00:04:04,480 --> 00:04:08,730 Suze: do the IRA Rollover. And the reason is this: 53 00:04:09,070 --> 00:04:13,320 Suze: If you take the pension they give you $800 a month. 54 00:04:13,490 --> 00:04:18,980 Suze: Times 800 by 12, that's $9600 a year. If you 55 00:04:18,980 --> 00:04:24,250 Suze: divide $9600 by the total amount of your pension which 56 00:04:24,250 --> 00:04:31,839 Suze: is $150,000. That gives you a 6.4% return on your money. 57 00:04:32,560 --> 00:04:37,000 Suze: The problem is, you die in four weeks, four months, 58 00:04:37,010 --> 00:04:41,650 Suze: four years. All that money, all 150,000, whatever is left 59 00:04:41,650 --> 00:04:46,400 Suze: of it is gone. What a waste. If however you 60 00:04:46,400 --> 00:04:48,089 Suze: did a roll over 61 00:04:48,680 --> 00:04:51,159 Suze: and you took all of that money and let's just 62 00:04:51,160 --> 00:04:53,940 Suze: say you put it into a six month T bill 63 00:04:53,940 --> 00:04:56,270 Suze: right now and eventually be able to lock it up 64 00:04:56,279 --> 00:04:58,219 Suze: long term at 5%. 65 00:04:58,760 --> 00:05:05,100 Suze: That's $7500 a year or $625 a month. But you 66 00:05:05,100 --> 00:05:08,280 Suze: also have access to that money if you need it. 67 00:05:08,300 --> 00:05:12,890 Suze: And on your death you have the ability depending how 68 00:05:12,890 --> 00:05:15,789 Suze: long you live to leave, whatever's left in there to 69 00:05:15,790 --> 00:05:21,810 Suze: some charity. So for a measly $175 a month that 70 00:05:21,810 --> 00:05:23,529 Suze: would be taxable to you. 71 00:05:24,290 --> 00:05:27,810 Suze: Plus you have all of that money. The $1.4 million 72 00:05:27,810 --> 00:05:33,229 Suze: besides this, you don't need the $800 a month income 73 00:05:33,240 --> 00:05:37,060 Suze: and the ability to lose the $150,000 when you die. 74 00:05:37,160 --> 00:05:39,860 Suze: Just do the IRA rollover. 75 00:05:40,000 --> 00:05:42,980 Suze: Okay. Does my voice sound really deep today? 76 00:05:42,990 --> 00:05:46,700 KT: But both of us have a little frog because we're screaming... 77 00:05:47,420 --> 00:05:49,920 Suze: Jimmy, Jimmy. Look at me! Jimmy Jimmy. 78 00:05:50,160 --> 00:05:55,300 KT: We just kept screaming and applauding and going, yeah baby. Okay, 79 00:05:55,310 --> 00:05:59,150 KT: so this is from Nancy. Hi Suze. On your podcast, 80 00:05:59,150 --> 00:06:02,040 KT: you talked about inheriting a parent's home. 81 00:06:02,210 --> 00:06:06,450 KT: I'm going to inherit my mother's home when she passes. However, 82 00:06:06,480 --> 00:06:10,760 KT: her boyfriend who's 92 has living rights to stay in 83 00:06:10,760 --> 00:06:13,640 KT: the home, we're not looking to move in with him. 84 00:06:13,830 --> 00:06:17,870 KT: My question is when he passes, if we make the 85 00:06:17,870 --> 00:06:21,750 KT: home our primary residence for two years, will we still 86 00:06:21,750 --> 00:06:26,450 KT: be eligible for the 250,000 tax exempt 87 00:06:26,589 --> 00:06:30,020 KT: when we sell it after our two years of living there? 88 00:06:30,029 --> 00:06:33,770 Suze: Yeah, listen to me. Yeah. Yes you would be. But Nancy. 89 00:06:33,770 --> 00:06:35,589 Suze: You don't have to do that. 90 00:06:36,110 --> 00:06:41,220 Suze: If your mother dies then that person, her boyfriend, is 91 00:06:41,220 --> 00:06:46,039 Suze: living in that home. Alright when he dies you get 92 00:06:46,050 --> 00:06:49,070 Suze: a step up in cost basis as to whatever that 93 00:06:49,070 --> 00:06:53,490 Suze: house is valued at when he dies. Or even if 94 00:06:53,490 --> 00:06:58,419 Suze: he dies before your mother, when your mother dies, you 95 00:06:58,420 --> 00:07:01,599 Suze: again get a step up in cost basis. So if 96 00:07:01,600 --> 00:07:04,880 Suze: the property is worth $5 million. 97 00:07:05,380 --> 00:07:07,500 Suze: You can just turn around and sell it for $5 98 00:07:07,500 --> 00:07:18,610 Suze: million and you don't pay any capital gains tax. So, you don't have to worry about living in it for two out of the past five years to get a $250,000 exemption. 99 00:07:19,260 --> 00:07:21,350 Suze: Because if you're gonna sell it, you don't even need 100 00:07:21,350 --> 00:07:24,310 Suze: to do that if however you want to take it 101 00:07:24,320 --> 00:07:28,110 Suze: on as your primary residency and live in it and 102 00:07:28,110 --> 00:07:30,870 Suze: you live in it for a long time then yes, 103 00:07:30,880 --> 00:07:36,150 Suze: you will get the $250,000 exemption per person. 104 00:07:36,970 --> 00:07:41,170 KT: Oh yeah, I always forget it's per person. Okay. Next 105 00:07:41,170 --> 00:07:42,110 KT: is from Jonathan. 106 00:07:42,110 --> 00:07:44,920 Suze: Can you imagine having a boyfriend or a girlfriend at 92? 107 00:07:45,670 --> 00:07:46,760 KT: Why not? 108 00:07:46,770 --> 00:07:49,920 Suze: You're supposed to say yes, Suze. I can imagine having 109 00:07:49,920 --> 00:07:53,480 Suze: you as my wife until I'm 102. Alright. 110 00:07:54,300 --> 00:07:59,050 KT: I was going to say, why not? 92 is not that old? The new 40. 111 00:07:59,060 --> 00:08:01,480 Suze: Yeah, we're the new twenties. Have you noticed? 112 00:08:01,680 --> 00:08:05,100 KT: Yea, 72 is the new 40 baby? Okay. Next question is from Jonathan. 113 00:08:05,110 --> 00:08:06,840 KT: Hi Suze and KT. 114 00:08:06,850 --> 00:08:08,560 Suze: I just have to say something. 115 00:08:08,740 --> 00:08:12,240 Suze: So here we are, Valentine's Day. Now we're going back 116 00:08:12,240 --> 00:08:15,180 Suze: a few more days and I take KT out to 117 00:08:15,180 --> 00:08:18,370 Suze: lunch and on the way home we have our top 118 00:08:18,370 --> 00:08:22,720 Suze: down and we have a convertible, everybody and I put 119 00:08:22,720 --> 00:08:28,250 Suze: on a fabulous music. It was Flowers by Miley Cyrus... 120 00:08:28,250 --> 00:08:30,980 KT: And I love that song And Suze was really grumpy. 121 00:08:30,980 --> 00:08:34,679 KT: She's next to me and she starts dancing in her seat. 122 00:08:34,880 --> 00:08:39,170 KT: So I'm driving and I'm on a very safe, slow 123 00:08:39,170 --> 00:08:43,910 KT: road going like 32 miles an hour along the ocean. 124 00:08:43,920 --> 00:08:48,190 KT: Very very nice. Sun's shining. I started dancing and jiggling 125 00:08:48,190 --> 00:08:52,940 KT: a little. She got so mad at me and said KT 126 00:08:52,950 --> 00:08:55,110 KT: put your hands on the wheel, You know, I don't 127 00:08:55,110 --> 00:08:58,059 KT: like that. And I was like, okay, there goes that 128 00:08:58,059 --> 00:08:59,660 KT: fun adventure. 129 00:09:00,320 --> 00:09:05,130 KT: Okay, ready? Next question's from Jonathan. Hi, Suze and KT 130 00:09:05,140 --> 00:09:11,630 KT: on a podcast, you talked about the Secure 2.0 Act pertaining 131 00:09:11,630 --> 00:09:16,820 KT: to Roth four oh one. No longer having RMDs I 132 00:09:16,820 --> 00:09:17,660 KT: didn't know that. I'm 37.. 133 00:09:19,780 --> 00:09:21,679 Suze: Is it because you didn't listen to that podcast? 134 00:09:21,690 --> 00:09:25,290 KT: I didn't know that it was, it's effective right now. 135 00:09:25,660 --> 00:09:30,320 KT: 2023 I am 37. I have a Roth 401k at 136 00:09:30,320 --> 00:09:34,590 KT: a previous employer that I never rolled over. Currently I 137 00:09:34,590 --> 00:09:38,079 KT: have a Roth IRA through Vanguard for the last three years. 138 00:09:38,090 --> 00:09:41,240 KT: Should I leave the Roth 401(k) as it 139 00:09:41,250 --> 00:09:45,170 KT: it is or roll it into my Vanguard Roth? Does 140 00:09:45,170 --> 00:09:49,490 KT: it make any difference aside from having more investment options? 141 00:09:49,490 --> 00:09:52,750 Suze: No difference at all boyfriend. But if I were you 142 00:09:53,090 --> 00:09:57,450 Suze: at 37 you want as many options as you can have. 143 00:09:57,460 --> 00:10:00,699 Suze: So therefore absolutely roll it over. 144 00:10:00,720 --> 00:10:02,030 KT: (sings) Roll over Beethoven... Do you remember that song? 145 00:10:07,610 --> 00:10:08,949 Suze: Will you just ask me questions. 146 00:10:08,960 --> 00:10:13,140 KT: Okay. Next is from Siri. Hi, I have a... 147 00:10:13,410 --> 00:10:16,160 Suze: Oh a little Apple Siri from the Siri? 148 00:10:16,160 --> 00:10:19,699 KT: Oh, Siri. No, this is from Siri, Siri. Hi, I have 149 00:10:19,700 --> 00:10:24,429 KT: a 403(b) through work that I've been contributing pretax amounts 150 00:10:24,429 --> 00:10:28,950 KT: to for 23 years. Good for you Siri? 151 00:10:29,270 --> 00:10:33,770 KT: There is also a Roth option. Is it advisable to 152 00:10:33,770 --> 00:10:38,550 KT: put my contributions in the Roth instead? Even though I'll 153 00:10:38,550 --> 00:10:41,470 KT: be leaving in two years and there's a five year 154 00:10:41,470 --> 00:10:46,540 KT: requirement before gains can be withdrawn without penalty. The five 155 00:10:46,540 --> 00:10:50,929 KT: year rule, she's good. I'm 67 a half years old. 156 00:10:50,940 --> 00:10:54,370 Suze: Actually you have that wrong, my dear Siri 157 00:10:54,740 --> 00:10:59,350 Suze: in that, once you turn 59 a half, you're no 158 00:10:59,350 --> 00:11:05,719 Suze: longer subjected to a 10% penalty regardless of how long 159 00:11:05,720 --> 00:11:09,410 Suze: your money has been in a Roth IRA or Roth 401(k). 160 00:11:09,450 --> 00:11:12,550 Suze: It is the income tax on that money 161 00:11:13,010 --> 00:11:15,300 Suze: that you will have to pay if it hasn't been 162 00:11:15,300 --> 00:11:18,880 Suze: in there for at least five years. So what I 163 00:11:18,880 --> 00:11:21,260 Suze: would be doing if I were you and everybody, I've 164 00:11:21,260 --> 00:11:25,520 Suze: told you to do this, open up a Roth IRA 165 00:11:25,540 --> 00:11:30,650 Suze: at some discount brokerage firm right now put $5 in it, 166 00:11:30,670 --> 00:11:35,819 Suze: $10 it doesn't matter and start the five year clock ticking. 167 00:11:36,490 --> 00:11:41,809 Suze: So if you've only had a Roth 401(k), then for 168 00:11:41,820 --> 00:11:45,690 Suze: 2.5 years or whatever it may be when you roll 169 00:11:45,690 --> 00:11:49,189 Suze: it over into a Roth IRA that you've had open 170 00:11:49,190 --> 00:11:53,580 Suze: for five years, it automatically has met the five year 171 00:11:53,590 --> 00:11:58,120 Suze: time limit for taxation on earnings. 172 00:11:58,800 --> 00:12:03,199 Suze: Therefore, given the fact that if you didn't do that 173 00:12:03,650 --> 00:12:07,430 Suze: and you left it in a traditional 401(k). 174 00:12:07,990 --> 00:12:10,439 Suze: when you roll it over and you take out the 175 00:12:10,440 --> 00:12:16,000 Suze: money anyway, it's totally taxable to you. So why not 176 00:12:16,160 --> 00:12:20,530 Suze: do the raw 401(k). Start a Roth IRA now, 177 00:12:21,280 --> 00:12:25,100 Suze: once you retire you will absolutely just convert it over, 178 00:12:25,100 --> 00:12:27,600 Suze: roll it over into your Roth IRA and let it 179 00:12:27,600 --> 00:12:33,950 Suze: sit there for three years to simply avoid the taxation 180 00:12:33,960 --> 00:12:35,520 Suze: on the earnings. 181 00:12:35,960 --> 00:12:38,360 Suze: But here's the good news. Most of it really in 182 00:12:38,360 --> 00:12:41,570 Suze: two years will probably be just your contributions and there 183 00:12:41,570 --> 00:12:44,720 Suze: will be no taxation on your contributions at all. 184 00:12:45,630 --> 00:12:50,010 KT: That's good news. So this is from Barbara. My husband's 185 00:12:50,010 --> 00:12:54,740 KT: employer has a retirement account with matching funds. But when 186 00:12:54,740 --> 00:12:55,670 KT: reviewing the 187 00:12:55,695 --> 00:13:07,765 KT: information, I saw that the sales commission ready for this Suze? 5.75% 188 00:13:08,485 --> 00:13:15,475 KT: on top of an expense ratio of 0.74%. I was shocked. 189 00:13:15,485 --> 00:13:19,684 KT: And now she's asking you Suze, do you think this 190 00:13:19,684 --> 00:13:23,834 KT: is high or is it the average for account management? 191 00:13:24,200 --> 00:13:30,260 Suze: I think it's highway robbery. So when you paid a load and 192 00:13:30,260 --> 00:13:37,390 Suze: that's called a sales load of 5.75%. 5 and 3/4% 193 00:13:37,429 --> 00:13:42,980 Suze: of whatever amount that he has been investing goes directly 194 00:13:42,980 --> 00:13:47,990 Suze: to the salesperson to pay his or her commission. 195 00:13:48,510 --> 00:13:54,470 Suze: That means your fund has to increase in value five 196 00:13:54,470 --> 00:13:58,730 Suze: and three quarters percent just for you to break even 197 00:13:58,740 --> 00:14:02,849 Suze: and on top of that right there's an expense ratio 198 00:14:02,850 --> 00:14:06,730 Suze: in there. Now the expense ratio isn't that big. But 199 00:14:06,730 --> 00:14:10,530 Suze: the fact that they're charging five and three quarters percent 200 00:14:10,540 --> 00:14:12,140 Suze: in a retirement account. 201 00:14:12,750 --> 00:14:18,480 Suze: Your husband's employer really needs to change their company that 202 00:14:18,480 --> 00:14:21,530 Suze: they're dealing with. It's just nobody should have to pay 203 00:14:21,530 --> 00:14:25,250 Suze: a commission to buy a mutual fund within a retirement 204 00:14:25,250 --> 00:14:27,640 Suze: account at an employer's. 205 00:14:27,650 --> 00:14:30,720 KT: That's crazy. 5.75. 206 00:14:30,930 --> 00:14:36,040 Suze: That's the difference between loaded funds and no loaded funds. 207 00:14:36,050 --> 00:14:38,270 Suze: And remember I always told you that when I first 208 00:14:38,270 --> 00:14:41,740 Suze: started in this business back in 1980, there were only 209 00:14:41,740 --> 00:14:45,520 Suze: 300 mutual funds and the only way that you could 210 00:14:45,520 --> 00:14:49,200 Suze: buy them would be through a broker like me. And 211 00:14:49,200 --> 00:14:51,890 Suze: the commission was five and a quarter five and three 212 00:14:51,890 --> 00:14:56,020 Suze: quarters percent, which is what we got. Then as time 213 00:14:56,020 --> 00:14:58,950 Suze: went on and discount brokers started to happen, 214 00:14:59,370 --> 00:15:03,300 Suze: everybody came out with no load mutual funds which means 215 00:15:03,300 --> 00:15:06,150 Suze: you can buy it for no fees at all and 216 00:15:06,150 --> 00:15:08,920 Suze: sell it for no fees. So you really have to 217 00:15:08,920 --> 00:15:12,150 Suze: know what kind of fund do you have? You do 218 00:15:12,150 --> 00:15:14,900 Suze: not want to have a fund that has the letter 219 00:15:14,910 --> 00:15:19,680 Suze: A or B. After the name of the fund. 220 00:15:21,890 --> 00:15:23,890 KT: When I first met you, I don't know if you 221 00:15:23,890 --> 00:15:28,300 KT: remember this When I first met Suze, you know I 222 00:15:28,300 --> 00:15:31,980 KT: was in san Francisco and I had open accounts and 223 00:15:31,980 --> 00:15:35,370 KT: funds and investments I think at Wells Fargo. And I 224 00:15:35,370 --> 00:15:38,960 KT: remember and I didn't know anything I said to Suze, 225 00:15:38,970 --> 00:15:41,920 KT: I have these investments and funds. She said is there 226 00:15:41,930 --> 00:15:46,220 KT: A or B. I said yeah, both of them A 227 00:15:46,220 --> 00:15:48,330 KT: and B. And she said always remember 228 00:15:48,680 --> 00:15:51,080 KT: if it has A behind it, it means it's going 229 00:15:51,080 --> 00:15:52,670 KT: to bite you in the... 230 00:15:52,930 --> 00:15:55,350 KT: and if it has a B behind you is going 231 00:15:55,350 --> 00:15:59,550 KT: to bite you in the butt. And I always remembered 232 00:15:59,550 --> 00:16:01,920 KT: that if it's at A or B, don't let it 233 00:16:01,920 --> 00:16:02,860 KT: bite you baby. 234 00:16:02,870 --> 00:16:04,130 Suze: Don't ever do A or B funds. 235 00:16:05,360 --> 00:16:09,480 KT: Okay. So next is from Dion. Dion said hello Suze. 236 00:16:09,480 --> 00:16:14,900 KT: I have made an absolute mess with my finances. I'm 237 00:16:14,900 --> 00:16:18,820 KT: 54 years old. I have no savings and have 179,000 238 00:16:20,430 --> 00:16:22,020 KT: in an IRA. 239 00:16:22,150 --> 00:16:22,530 Suze: How old? 240 00:16:23,620 --> 00:16:25,120 KT: She's only 54. 241 00:16:27,610 --> 00:16:28,970 Suze: She has more than most. 242 00:16:28,980 --> 00:16:31,550 KT: She's taking care of her family since she was 20. 243 00:16:31,550 --> 00:16:34,480 KT: She is in a pretty amazing woman. She raised all 244 00:16:34,480 --> 00:16:38,040 KT: her kids and her sister's kids. My job had an 245 00:16:38,050 --> 00:16:41,530 KT: early out and I couldn't afford to retire. I have 246 00:16:41,530 --> 00:16:46,410 KT: two years and eight months before I can retire without penalty. 247 00:16:46,590 --> 00:16:50,920 KT: My current home requires some renovations. My home is worth 248 00:16:50,930 --> 00:16:56,060 KT: about 680,000 as it is. I'm trying to figure out 249 00:16:56,070 --> 00:17:01,330 KT: whether to sell or renovate or downsize and maybe use 250 00:17:01,330 --> 00:17:04,960 KT: the money from the sale of my home to buy 251 00:17:04,960 --> 00:17:08,470 KT: outright for cash. A new home, a smaller home. My 252 00:17:08,470 --> 00:17:15,740 KT: current take home is $6,000 monthly and I'm $35,000 in debt. Please help, I need advice and direction. 253 00:17:20,140 --> 00:17:20,740 Suze: Pop quizzie... 254 00:17:21,410 --> 00:17:24,720 KT: Oh, Okay. Alright. Go for it. 255 00:17:24,720 --> 00:17:29,940 Suze: Everybody because this is such a great question. Should Dion 256 00:17:30,060 --> 00:17:35,409 Suze: sell her home, she has $35,000 in debt. She takes 257 00:17:35,410 --> 00:17:40,780 Suze: home $6,000 a month. But she still $35,000 in debt. 258 00:17:40,810 --> 00:17:45,500 Suze: She has a home worth $680,000 as it is. But 259 00:17:45,500 --> 00:17:46,780 Suze: she doesn't quite say 260 00:17:46,790 --> 00:17:51,840 Suze: how much more money she owes. That isn't. But she's 261 00:17:51,850 --> 00:17:55,340 Suze: always taking care of everybody else, right? She hasn't been 262 00:17:55,340 --> 00:17:57,850 Suze: able to take care of herself. She feels like she 263 00:17:57,850 --> 00:18:02,980 Suze: has nothing. She's an absolute mess. Although $179,000 in an IRA 264 00:18:03,800 --> 00:18:08,800 Suze: and a home worth $680,000, Dion is not an absolute mess. 265 00:18:08,810 --> 00:18:12,610 Suze: Let me just tell you that an absolute mess. I 266 00:18:12,609 --> 00:18:14,110 Suze: don't even have time to tell you what it is 267 00:18:14,109 --> 00:18:15,950 Suze: right now. But it's not that. Got it. 268 00:18:16,330 --> 00:18:21,950 Suze: So what should Dion do? Should she sell her home 269 00:18:21,960 --> 00:18:23,560 Suze: or should she keep it? 270 00:18:24,630 --> 00:18:29,679 KT: Okay. Want me to answer. Yeah definitely sell it and downsize, 271 00:18:29,680 --> 00:18:35,200 KT: sell it downsized now. Downsizing doesn't necessarily mean, Suze that 272 00:18:35,200 --> 00:18:38,859 KT: she has to buy a smaller home. She can also rent. 273 00:18:39,090 --> 00:18:41,889 Suze: No at this point she she's still she's still young. 274 00:18:41,890 --> 00:18:44,720 Suze: She's 54... what I want you to do. First of all, 275 00:18:44,720 --> 00:18:51,360 Suze: KT ready? (Ding Ding Ding) So first of all 276 00:18:51,700 --> 00:18:57,010 Suze: you have $35,000 in debt and it's the $35,000 in debt. 277 00:18:57,040 --> 00:18:59,709 Suze: That in my opinion is making you feel like an 278 00:18:59,720 --> 00:19:03,430 Suze: absolute mess. Now why do I feel that you spend 279 00:19:03,440 --> 00:19:07,130 Suze: a lot of that money on the kids that you 280 00:19:07,130 --> 00:19:10,859 Suze: raised everybody else and I don't know. You have these 281 00:19:10,859 --> 00:19:13,379 Suze: four kids and your sister's kids and they're now or 282 00:19:13,390 --> 00:19:17,440 Suze: all adults, can't they help you out with anything? Just 283 00:19:17,450 --> 00:19:19,330 Suze: a thought. But anyway, 284 00:19:19,530 --> 00:19:22,210 Suze: I think your debt is what's making you feel like 285 00:19:22,210 --> 00:19:27,920 Suze: an absolute mess. Therefore let's sell the home, let's downsize, 286 00:19:27,930 --> 00:19:31,770 Suze: buy the new home outright. So don't buy a home 287 00:19:31,880 --> 00:19:34,820 Suze: that you can't pay for outright because I want you 288 00:19:34,820 --> 00:19:38,450 Suze: in a position where you do not have a mortgage anymore. 289 00:19:39,070 --> 00:19:43,640 Suze: Then every single month that you no longer have a mortgage, 290 00:19:43,650 --> 00:19:46,419 Suze: I want you to take that money and I want 291 00:19:46,420 --> 00:19:49,190 Suze: you to dollar cost average into 292 00:19:49,619 --> 00:19:53,189 Suze: a retirement account. Whether it's a Roth IRA or a 293 00:19:53,190 --> 00:19:57,310 Suze: traditional IRA or your Roth IRAs or your Roth 401(k)s 294 00:19:57,580 --> 00:20:02,879 Suze: where you work. Start dollar cost averaging into these markets, 295 00:20:02,890 --> 00:20:06,280 Suze: whether it's a Standard and Poor's 500 index or whatever. 296 00:20:06,290 --> 00:20:07,190 Suze: Just keep 297 00:20:07,200 --> 00:20:11,480 Suze: keep doing that and you watch how your money will grow. 298 00:20:11,490 --> 00:20:15,540 Suze: You can also put it into the IRA that you currently have. 299 00:20:15,550 --> 00:20:19,820 KT: Okay, she's not a mess. 300 00:20:19,830 --> 00:20:22,850 Suze: Honey, I can tell you is people who are a mess. 301 00:20:23,410 --> 00:20:27,910 Suze: Read that one email. Actually. We got an email from 302 00:20:27,910 --> 00:20:30,810 Suze: somebody and we're not making fun of it and putting 303 00:20:30,810 --> 00:20:31,490 Suze: it down. 304 00:20:31,800 --> 00:20:35,500 Suze: But they said I'm, they claimed bankruptcy they had and 305 00:20:35,500 --> 00:20:38,580 Suze: they said I'm an absolute mess. And I went you 306 00:20:38,580 --> 00:20:41,110 Suze: are you are and there's nothing I can do to help. 307 00:20:41,109 --> 00:20:41,690 Suze: All right, 308 00:20:41,700 --> 00:20:44,840 KT: Okay. This is from Jon you're gonna like this question. 309 00:20:44,850 --> 00:20:47,600 KT: Hey girls, hey! 310 00:20:48,200 --> 00:20:52,850 KT: He really wrote that everyone. Hey girls, hey! Seems that 311 00:20:52,859 --> 00:20:57,040 KT: artificial intelligence is all everyone's talking about when it comes 312 00:20:57,040 --> 00:21:02,240 KT: to technology of the future. Suze, what ETFs E or stocks 313 00:21:02,240 --> 00:21:06,649 KT: would you recommend for AI? I thank you so much 314 00:21:06,650 --> 00:21:10,330 KT: for your help. I've been a loyal watcher and listener 315 00:21:10,340 --> 00:21:14,260 KT: for over 20 years. And because of you, Suze, I've 316 00:21:14,260 --> 00:21:17,780 KT: done quite well with saving and investing. 317 00:21:18,020 --> 00:21:22,140 KT: My friends often ask me financial questions and I will 318 00:21:22,150 --> 00:21:29,810 KT: always reply, well my girl, Suze would tell you... Okay, 319 00:21:29,810 --> 00:21:32,760 KT: So isn't that sweet? So what would he, what would 320 00:21:32,760 --> 00:21:35,180 KT: you do with your artificial intelligence? 321 00:21:35,180 --> 00:21:37,160 Suze: The one stock that I would buy 322 00:21:37,520 --> 00:21:41,120 Suze: if you wanted to be exposed to artificial intelligence with 323 00:21:41,119 --> 00:21:45,760 Suze: the ChatGpt would be Microsoft. They invested a fortune and 324 00:21:45,770 --> 00:21:50,460 Suze: own a good portion of that company. That's probably how 325 00:21:50,460 --> 00:21:53,790 Suze: I would do it. I myself did it, KT don't 326 00:21:53,790 --> 00:21:56,920 Suze: know if you know this, but just the other day, 327 00:21:56,930 --> 00:22:02,010 Suze: I invested in a fund that just does artificial intelligence. 328 00:22:02,130 --> 00:22:03,740 Suze: But it's a private fund. 329 00:22:04,250 --> 00:22:07,410 Suze: I'm telling you that because it's an area that I 330 00:22:07,420 --> 00:22:11,590 Suze: absolutely believe in. They don't have any ETFs or anything out 331 00:22:11,590 --> 00:22:14,840 Suze: there at this point that I love, but I love Microsoft. 332 00:22:14,840 --> 00:22:17,629 Suze: You might want to try doing it that way. 333 00:22:17,760 --> 00:22:21,300 KT: Suze, the next question and my final question is from 334 00:22:21,310 --> 00:22:24,700 KT: Antoinette and it's about Social Security. 335 00:22:25,180 --> 00:22:31,440 KT: She said according to her numbers she would make $1,159 336 00:22:31,440 --> 00:22:36,129 KT: more and work less, if I take my social security 337 00:22:36,130 --> 00:22:41,250 KT: at 62. Furthermore I did the break even analysis of 338 00:22:41,250 --> 00:22:45,919 KT: drawing my social security at 62 versus 67 339 00:22:46,220 --> 00:22:49,909 KT: and I would be approximately 78 years old when the 340 00:22:49,910 --> 00:22:54,189 KT: dollar amount breaks even. Okay so Suze, in your opinion 341 00:22:54,190 --> 00:22:55,459 KT: what should I do? 342 00:22:55,570 --> 00:22:59,450 Suze: That was short. Alright so that's easy Antoinette do not 343 00:22:59,450 --> 00:23:03,430 Suze: take your Social security at 62. Just don't do it. 344 00:23:03,470 --> 00:23:07,900 Suze: You think that oh my God 78, I'm gonna have 345 00:23:07,900 --> 00:23:10,880 Suze: to wait till I'm 78, just to break even. 346 00:23:11,380 --> 00:23:15,020 Suze: The problem is you most likely are going to be 78. 347 00:23:15,030 --> 00:23:18,000 Suze: I'm going to be six years away from 78 shortly here. 348 00:23:18,520 --> 00:23:22,389 Suze: Are you kidding me? So chances are you're gonna live 349 00:23:22,390 --> 00:23:27,409 Suze: to 88 possibly 98 and then all of those years 350 00:23:27,410 --> 00:23:32,710 Suze: beyond 78 really will count and you'll need that extra 351 00:23:32,710 --> 00:23:36,160 Suze: money then. So if I were you I wouldn't even 352 00:23:36,160 --> 00:23:38,940 Suze: take it at 67, I would wait and I would 353 00:23:38,940 --> 00:23:40,920 Suze: take it till 70. 354 00:23:41,150 --> 00:23:47,150 Suze: Because every year from 67 to 70 it increases by 8% 355 00:23:47,160 --> 00:23:51,420 Suze: a year plus the cost of living adjustments with CPI, 356 00:23:52,000 --> 00:23:53,179 Suze: which is inflation. 357 00:23:53,570 --> 00:23:56,500 Suze: So I know you can figure all this out. I 358 00:23:56,500 --> 00:23:58,580 Suze: know you think that you can make more by working 359 00:23:58,580 --> 00:24:01,490 Suze: less right now. That's not what I want you to do? 360 00:24:01,490 --> 00:24:03,340 Suze: I want you to work more and more and more 361 00:24:03,340 --> 00:24:07,060 Suze: right now in your sixties is still really young. I 362 00:24:07,060 --> 00:24:10,380 Suze: want you to work less and worry less when you're 363 00:24:10,390 --> 00:24:15,090 Suze: in your seventies, when you're in your eighties and hopefully 364 00:24:15,090 --> 00:24:18,970 Suze: nineties or later. So no, do not take it at 365 00:24:18,970 --> 00:24:20,750 Suze: 62 period. 366 00:24:21,220 --> 00:24:24,170 Suze: So I do have another quizzie though just for you 367 00:24:24,950 --> 00:24:27,540 Suze: and all of you by the way, if you want 368 00:24:27,550 --> 00:24:31,920 Suze: us to answer your questions on the women and money podcast, 369 00:24:31,930 --> 00:24:36,420 Suze: just send in your question to ask Suze podcast at 370 00:24:36,420 --> 00:24:41,640 Suze: gmail dot com. And if KT chooses that, she only 371 00:24:41,640 --> 00:24:46,640 Suze: chooses short ones, just know it , then we will 372 00:24:46,650 --> 00:24:49,390 Suze: answer it on this podcast. 373 00:24:49,619 --> 00:24:54,909 Suze: Right? But KT, as everybody knows quizzie time is where I 374 00:24:54,910 --> 00:24:57,250 Suze: ask you a question. But the question isn't just for 375 00:24:57,250 --> 00:25:02,480 Suze: you it's for everybody as well. And on Valentine's Day... 376 00:25:02,480 --> 00:25:04,180 KT: Oh, here we go. 377 00:25:04,190 --> 00:25:07,740 Suze: Right, I posted on the Women and Money app that 378 00:25:07,750 --> 00:25:12,030 Suze: all of you should be downloading because I post videos 379 00:25:12,030 --> 00:25:15,000 Suze: and pictures there that I don't do other places. 380 00:25:15,420 --> 00:25:20,500 Suze: And you gave me a little picture in this beautiful 381 00:25:20,500 --> 00:25:24,980 Suze: silver frame for Valentine's Day, where you drew in the 382 00:25:24,980 --> 00:25:31,580 Suze: sand a heart and you put the initials U. W. D. 383 00:25:31,590 --> 00:25:35,320 Suze: and I posted that and everybody has been trying to 384 00:25:35,320 --> 00:25:36,740 Suze: figure out what does U.W.D. mean. 385 00:25:42,400 --> 00:25:44,010 KT: Well, I'll tell you all.  You're gonna have to wait. 386 00:25:44,020 --> 00:25:45,920 Suze: Are you really not going to tell them? 387 00:25:45,920 --> 00:25:52,410 KT: No. U.W.D. Suze knows clearly what that means. It's a very 388 00:25:52,410 --> 00:25:55,400 KT: very special abbreviation. 389 00:25:55,450 --> 00:25:59,970 Suze: Do you know, everybody guessed Until We Die, Until We Dance. That's not correct by the way. 390 00:26:00,160 --> 00:26:02,810 KT: That's not correct. But it's a nice one. It's a 391 00:26:02,810 --> 00:26:05,790 KT: nice thought. But guess what everyone? You might have to 392 00:26:05,790 --> 00:26:09,260 KT: wait until we die before I give it up. 393 00:26:09,270 --> 00:26:11,139 Suze: You're never going to tell anybody? 394 00:26:11,550 --> 00:26:15,550 KT: No. That is my answer. That is my very secret and 395 00:26:15,550 --> 00:26:20,480 KT: very special initials for Suze and she knows exactly what 396 00:26:20,490 --> 00:26:21,150 KT: that means. 397 00:26:21,150 --> 00:26:24,110 Suze: You know who else knows? Your sister, Lynn. 398 00:26:24,109 --> 00:26:28,280 KT: Oh don't go getting Lynn involved. Lynn can't keep a secret. 399 00:26:28,290 --> 00:26:32,120 KT: Don't go to people don't contact my sister. 400 00:26:32,700 --> 00:26:36,740 Suze: Anyway, sorry about that. Everybody it was up to KT 401 00:26:36,790 --> 00:26:39,960 Suze: if she wanted to tell you what it meant or not. 402 00:26:40,480 --> 00:26:43,910 Suze: Okay, KT, that's a wrap. So the one thing we 403 00:26:43,920 --> 00:26:48,870 Suze: always want you always to remember is this don't you 404 00:26:48,880 --> 00:26:52,479 Suze: ever let anybody stop you from doing that what you 405 00:26:52,480 --> 00:26:57,230 Suze: want to do. And don't you ever stop yourself from 406 00:26:57,230 --> 00:27:03,859 Suze: doing it as well. Because why? You are unstoppable. Bye 407 00:27:03,859 --> 00:27:06,420 Suze: bye everybody.