1 00:00:40,729 --> 00:00:47,310 Suze: September 29th, 2024. Welcome everybody to the Women and Money podcast. 2 00:00:47,580 --> 00:00:52,958 Suze: As well as everybody smart enough to listen, Suze O, 3 00:00:52,970 --> 00:00:57,840 Suze: here and today is Suze School. So as always get 4 00:00:57,849 --> 00:01:02,720 Suze: out your Suze notebooks. So just a few things before 5 00:01:02,729 --> 00:01:04,879 Suze: I get into Suze School, 6 00:01:05,309 --> 00:01:08,699 Suze: Colo, you all know Colo and if you don't know Colo, 7 00:01:08,709 --> 00:01:12,679 Suze: you should know Colo. He's like our son arrives from 8 00:01:12,690 --> 00:01:17,699 Suze: the island to Florida. And the reason that he's coming 9 00:01:17,709 --> 00:01:22,110 Suze: to Florida is for the first time ever. His wife, 10 00:01:22,120 --> 00:01:29,389 Suze: Annie has gotten a visa that allows her to leave Colombia, 11 00:01:29,400 --> 00:01:31,339 Suze: which is where they live. 12 00:01:31,980 --> 00:01:35,169 Suze: And so what's interesting about that is this will be 13 00:01:35,180 --> 00:01:39,360 Suze: her very first time in the United States of America. 14 00:01:39,860 --> 00:01:45,080 Suze: And on the second, I have to go to Las 15 00:01:45,089 --> 00:01:49,830 Suze: Vegas to give a talk. And so one of our 16 00:01:49,839 --> 00:01:53,129 Suze: promises to Cola was, hey, if we ever go to 17 00:01:53,139 --> 00:01:56,279 Suze: Las Vegas, we'll take you with us. 18 00:01:56,889 --> 00:02:01,830 Suze: And so what's fascinating is that since Annie is coming 19 00:02:01,839 --> 00:02:06,559 Suze: to the United States to meet Colo, we're taking both 20 00:02:06,569 --> 00:02:10,630 Suze: of them to Las Vegas and I just can't even 21 00:02:10,639 --> 00:02:15,279 Suze: imagine what that's gonna be like for them. We're staying 22 00:02:15,288 --> 00:02:18,130 Suze: in a hotel and they've given me one of the 23 00:02:18,139 --> 00:02:21,269 Suze: top penthouse suites because I'm speaking at the event 24 00:02:21,740 --> 00:02:26,119 Suze: and they're giving one to Colo and Annie as well 25 00:02:26,149 --> 00:02:28,860 Suze: and two tickets to go see Cirque Du Soleil 26 00:02:30,089 --> 00:02:32,990 Suze: And I'm just so excited. I can't even stand it. 27 00:02:33,000 --> 00:02:37,830 Suze: And then when we come back on the fourth, he's 28 00:02:37,839 --> 00:02:41,070 Suze: going back with Annie to the island 29 00:02:41,389 --> 00:02:46,169 Suze: and she's gonna see the very first time where Colo 30 00:02:46,179 --> 00:02:50,220 Suze: works and has lived all these years and we're not 31 00:02:50,229 --> 00:02:53,029 Suze: going back with them and we're going to let him 32 00:02:53,038 --> 00:02:56,559 Suze: be the man of the house and have it all 33 00:02:56,570 --> 00:02:59,929 Suze: just for himself. And Annie and I just want to 34 00:02:59,940 --> 00:03:04,169 Suze: tell you, I'm so excited because that all starts today 35 00:03:05,839 --> 00:03:09,000 Suze: And I'm sure you're thinking, but Suze, this is a 36 00:03:09,008 --> 00:03:12,660 Suze: financial podcast. Why are you talking to us about Colo? 37 00:03:13,339 --> 00:03:19,160 Suze: This isn't just a financial podcast. This is a family 38 00:03:19,169 --> 00:03:24,399 Suze: financial podcast because it's important for me to answer your 39 00:03:24,410 --> 00:03:28,559 Suze: questions and to really talk about money. I need to 40 00:03:28,570 --> 00:03:32,269 Suze: know about you. You need to know about me and 41 00:03:32,279 --> 00:03:35,479 Suze: my life with KT and with Colo. And when you 42 00:03:35,490 --> 00:03:37,279 Suze: get to know all of that, 43 00:03:38,059 --> 00:03:41,679 Suze: I don't know that's kind of making finances, a family, 44 00:03:41,690 --> 00:03:47,179 Suze: a fair. So that's what this podcast is all about. 45 00:03:47,970 --> 00:03:53,690 Suze: So, let's start Suze School today with interest rates. Now, 46 00:03:53,699 --> 00:03:57,979 Suze: what's fascinating about interest rates is, I'm sure you all 47 00:03:57,990 --> 00:04:01,470 Suze: know that in the last fed funds meeting, they lowered 48 00:04:01,479 --> 00:04:05,509 Suze: the fed funds rate by 0.50%. 49 00:04:06,259 --> 00:04:11,880 Suze: And everybody was just so excited about that because all 50 00:04:11,889 --> 00:04:16,690 Suze: of you believed that when they did that, that meant 51 00:04:16,700 --> 00:04:20,880 Suze: interest rates were going to come down immediately across the board. 52 00:04:21,299 --> 00:04:24,390 Suze: So many of you have been writing to me saying, Suze, 53 00:04:24,399 --> 00:04:26,899 Suze: what should I do? I've been getting 4.5% in my 54 00:04:26,910 --> 00:04:29,558 Suze: money market accounts and now I have a feeling that 55 00:04:29,570 --> 00:04:31,790 Suze: next week they're gonna go down to nothing 56 00:04:32,910 --> 00:04:42,410 Suze: just because the Feds move down 0.50% doesn't mean that 57 00:04:42,420 --> 00:04:47,160 Suze: everything in the United States is going to change interest 58 00:04:47,170 --> 00:04:52,450 Suze: rate wise. Ok, everybody. So it takes time to work 59 00:04:52,459 --> 00:04:54,450 Suze: it through the system. Number one 60 00:04:54,750 --> 00:04:59,970 Suze: and number two, since that interest rate was projected to happen, 61 00:05:00,049 --> 00:05:02,679 Suze: not knowing, was it going to be a quarter percent, 62 00:05:02,690 --> 00:05:04,130 Suze: half a percent, whatever 63 00:05:05,000 --> 00:05:10,029 Suze: that was already built into certain things. So just know 64 00:05:10,399 --> 00:05:14,109 Suze: that the decrease in interest rates truthfully for you to 65 00:05:14,119 --> 00:05:19,130 Suze: feel the result of them is going to take some time. 66 00:05:19,769 --> 00:05:21,390 Suze: Now with that said, 67 00:05:22,019 --> 00:05:25,600 Suze: I need you to listen to me closely here for 68 00:05:25,609 --> 00:05:30,559 Suze: over one year. Now, over a year, if you go back, 69 00:05:30,570 --> 00:05:33,880 Suze: you'll hear this. I have been saying to you, if 70 00:05:33,890 --> 00:05:37,980 Suze: I were you, I would do what I've been doing 71 00:05:38,178 --> 00:05:43,959 Suze: and I was buying 30 year treasury bonds and I 72 00:05:43,970 --> 00:05:48,149 Suze: educated all of you on the fact that as long 73 00:05:48,160 --> 00:05:50,320 Suze: term interest rates go down 74 00:05:51,630 --> 00:05:55,850 Suze: the value of your bonds, the prices of them go 75 00:05:55,859 --> 00:06:01,750 Suze: up and they go up more than a short term bond. So, 76 00:06:01,760 --> 00:06:04,529 Suze: if you had a 30 year bond and you bought 77 00:06:04,540 --> 00:06:09,089 Suze: it at 5% you'd be up almost 10% right now 78 00:06:09,100 --> 00:06:13,529 Suze: on the value of that bond. Plus the fact that 79 00:06:13,540 --> 00:06:17,209 Suze: you were making 5% the entire time. 80 00:06:18,109 --> 00:06:22,178 Suze: If you bought a two year note or a three 81 00:06:22,250 --> 00:06:26,809 Suze: year note or whatever, and interest rates went down, your 82 00:06:26,820 --> 00:06:30,929 Suze: gain would be very little because how does it work? Everybody, 83 00:06:31,459 --> 00:06:35,209 Suze: the longer the maturity of your bond, 84 00:06:36,290 --> 00:06:40,660 Suze: the greater increase in your gain when interest rates go 85 00:06:40,670 --> 00:06:41,230 Suze: down 86 00:06:42,238 --> 00:06:46,459 Suze: also when interest rates go up, the greater loss 87 00:06:47,290 --> 00:06:52,308 Suze: than if it were a shorter term maturity. So given 88 00:06:52,320 --> 00:06:55,899 Suze: that it was obvious or at least expected that interest 89 00:06:55,910 --> 00:06:58,750 Suze: rates were going to go down. We didn't know when, 90 00:06:59,480 --> 00:07:02,170 Suze: but we thought, you know what they've been going up 91 00:07:02,178 --> 00:07:05,329 Suze: and up and up. Let's take advantage of it, let's 92 00:07:05,339 --> 00:07:06,209 Suze: lock it in 93 00:07:07,079 --> 00:07:12,290 Suze: and that eventually they would start to come down and 94 00:07:12,299 --> 00:07:15,839 Suze: that's when we will have a nice gain. And maybe 95 00:07:15,850 --> 00:07:18,899 Suze: at that time, depending, is it a long term gain 96 00:07:18,910 --> 00:07:22,730 Suze: or do you own this within a retirement account? Maybe 97 00:07:22,739 --> 00:07:25,970 Suze: you would sell the bonds at that time 98 00:07:26,929 --> 00:07:32,450 Suze: and buy shorter term bonds with even more money giving 99 00:07:32,459 --> 00:07:35,829 Suze: you approximately the same yield. 100 00:07:37,209 --> 00:07:40,549 Suze: What was fascinating to me is that some of you 101 00:07:40,559 --> 00:07:44,269 Suze: wrote to me recently and you said, oh, Suze, the 102 00:07:44,279 --> 00:07:47,309 Suze: reason that I didn't buy 20 or 30 year bonds, 103 00:07:47,320 --> 00:07:49,019 Suze: I didn't know how to sell them. 104 00:07:50,209 --> 00:07:53,670 Suze: And I, you know, I was thinking to myself that 105 00:07:53,679 --> 00:07:58,059 Suze: wasn't the reason not to buy them. Obviously, if you 106 00:07:58,070 --> 00:08:01,790 Suze: buy through Treasury direct, it's a lot more complicated. But 107 00:08:01,799 --> 00:08:05,309 Suze: if you were able to buy your bonds or notes 108 00:08:05,320 --> 00:08:11,549 Suze: or bills through Charles Schwab through Fidelity through some brokerage account, 109 00:08:11,920 --> 00:08:14,910 Suze: then it's as easy to buy them as it is 110 00:08:14,920 --> 00:08:16,540 Suze: to sell them 111 00:08:17,160 --> 00:08:22,260 Suze: because they trade all the time. So I'm so sorry 112 00:08:22,269 --> 00:08:25,299 Suze: that that's what kept you from doing it. Do you 113 00:08:25,309 --> 00:08:29,140 Suze: remember my saying? Fear, shame and anger the three internal 114 00:08:29,149 --> 00:08:33,650 Suze: obstacles to wealth. Your fear of not doing something because 115 00:08:33,659 --> 00:08:36,919 Suze: you didn't know how to do something kept you from 116 00:08:36,929 --> 00:08:40,619 Suze: locking in a great rate and being up pretty much 117 00:08:40,630 --> 00:08:45,719 Suze: right now considerably on your original investment. If you did 118 00:08:45,729 --> 00:08:46,819 Suze: want to sell. 119 00:08:47,340 --> 00:08:50,978 Suze: Now, for those of you who did not listen to 120 00:08:50,989 --> 00:08:54,400 Suze: me or you didn't, for whatever reason, take advantage of 121 00:08:54,409 --> 00:08:57,950 Suze: buying 30 year bonds over a year ago and even 122 00:08:57,960 --> 00:09:01,640 Suze: dollar cost averaging into them as they went up as 123 00:09:01,650 --> 00:09:04,799 Suze: they started to go down a little bit. What should 124 00:09:04,809 --> 00:09:08,109 Suze: you be doing? Now, because again, a lot of you 125 00:09:08,119 --> 00:09:11,239 Suze: are writing me and saying, is it too late? Should 126 00:09:11,250 --> 00:09:13,119 Suze: I buy a 30 year bond now? 127 00:09:13,650 --> 00:09:16,500 Suze: Well, you still could buy a 30 year bond if 128 00:09:16,510 --> 00:09:19,840 Suze: you wanted to hold it for 30 years. But the 129 00:09:19,849 --> 00:09:21,830 Suze: capital appreciation 130 00:09:22,510 --> 00:09:26,199 Suze: of a 30 year bond at this point in time, 131 00:09:26,210 --> 00:09:31,640 Suze: in my opinion, is far, far less than it was 132 00:09:31,859 --> 00:09:35,429 Suze: a little while ago as they were going up and 133 00:09:35,440 --> 00:09:38,169 Suze: they hit their high around 5%. 134 00:09:39,260 --> 00:09:43,210 Suze: What would I be doing now to take advantage of 135 00:09:43,219 --> 00:09:47,359 Suze: treasury bonds with money that maybe I wanted to lock 136 00:09:47,369 --> 00:09:49,840 Suze: in an interest rate and maybe have a little bit 137 00:09:49,849 --> 00:09:53,799 Suze: of appreciation, but at least kind of be more safe 138 00:09:53,809 --> 00:09:57,210 Suze: than 30 years having to keep it for 30 years 139 00:09:57,330 --> 00:10:00,780 Suze: because you never know what could happen with bonds. And 140 00:10:00,789 --> 00:10:04,079 Suze: for new money, for me that I want to commit 141 00:10:04,090 --> 00:10:05,299 Suze: to treasuries, 142 00:10:05,809 --> 00:10:09,939 Suze: I'm doing a treasury ladder of a three year, a 143 00:10:09,950 --> 00:10:15,070 Suze: five year and a seven year that midterm there right 144 00:10:15,080 --> 00:10:15,830 Suze: in there 145 00:10:16,150 --> 00:10:19,400 Suze: is the years that I would be buying, I would 146 00:10:19,409 --> 00:10:22,729 Suze: be buying some three years, some five years and some 147 00:10:22,739 --> 00:10:26,849 Suze: seven years. But I wouldn't, at this point in time 148 00:10:26,859 --> 00:10:32,569 Suze: be putting money into 30 year treasury bonds. You know, 149 00:10:32,830 --> 00:10:36,090 Suze: it was maybe a week or two ago. Somebody wrote 150 00:10:36,099 --> 00:10:38,919 Suze: in a question that said, my banker said that long 151 00:10:38,929 --> 00:10:42,330 Suze: term interest rates were probably going to go up. 152 00:10:43,219 --> 00:10:46,200 Suze: And I think at the time they were referring to 153 00:10:46,210 --> 00:10:50,569 Suze: certificates of deposits and I very flippantly and maybe too 154 00:10:50,580 --> 00:10:53,320 Suze: flippantly said, get yourself a new banker. 155 00:10:54,109 --> 00:10:58,250 Suze: And then I started to think about that question and 156 00:10:58,260 --> 00:11:00,369 Suze: what you would have seen 157 00:11:01,570 --> 00:11:06,710 Suze: after the feds lowered their interest rates last week or 158 00:11:06,719 --> 00:11:09,469 Suze: whenever it was. Now, I'm losing track of time because 159 00:11:09,479 --> 00:11:12,229 Suze: of my return from Spain. But anyway, 160 00:11:12,700 --> 00:11:16,569 Suze: you would have seen after that one day or so, 161 00:11:16,690 --> 00:11:21,479 Suze: you would have seen interest rates on long term bonds 162 00:11:21,489 --> 00:11:26,159 Suze: starting to tick up. And there have been times during 163 00:11:26,169 --> 00:11:31,069 Suze: certain periods of the economy where long term bonds, even 164 00:11:31,080 --> 00:11:34,929 Suze: though rates were going down, did blip up 100 basis 165 00:11:34,940 --> 00:11:38,559 Suze: points or so. So that is possible, 166 00:11:39,190 --> 00:11:42,809 Suze: which is why I'm saying at this point in time 167 00:11:42,820 --> 00:11:45,450 Suze: and I don't see that happening just so, you know, 168 00:11:46,570 --> 00:11:50,929 Suze: if I were going to put more money into a treasury, 169 00:11:51,049 --> 00:11:55,710 Suze: I would be dividing it between 35 and seven years 170 00:11:55,719 --> 00:11:59,079 Suze: and I would not be buying 30 year bonds at 171 00:11:59,090 --> 00:12:03,349 Suze: this point in time for me. 172 00:12:04,039 --> 00:12:07,010 Suze: All right, when that happened, and I saw the tremendous 173 00:12:07,020 --> 00:12:12,400 Suze: uptick in my personal portfolio and many of those were 174 00:12:12,409 --> 00:12:15,929 Suze: in a nontaxable situation as well as long term 175 00:12:16,669 --> 00:12:21,130 Suze: it was, let's sell, let's take advantage of my 5% 176 00:12:21,140 --> 00:12:25,579 Suze: gain my 7% gain, whatever it was. And then let's 177 00:12:25,590 --> 00:12:28,429 Suze: keep that money for a little bit here. And then 178 00:12:28,440 --> 00:12:31,830 Suze: let's see where I wanna deploy it. But I will 179 00:12:31,840 --> 00:12:37,809 Suze: be deploying it in 3, 5 and seven year bonds. Just 180 00:12:37,820 --> 00:12:41,250 Suze: wanna say that's what I am doing at this point 181 00:12:41,260 --> 00:12:44,450 Suze: in time. Next topic, real estate. 182 00:12:45,289 --> 00:12:49,070 Suze: Now, a lot of you are very excited because interest 183 00:12:49,080 --> 00:12:54,809 Suze: rates are coming down. So again, maybe it's more affordable 184 00:12:54,820 --> 00:12:57,510 Suze: for you to buy a piece of real estate because 185 00:12:57,520 --> 00:13:01,229 Suze: interest rates have come down and will probably continue to 186 00:13:01,239 --> 00:13:04,630 Suze: go down when it comes to mortgages. 187 00:13:05,190 --> 00:13:09,669 Suze: However, it may not help you as much as you think. 188 00:13:09,820 --> 00:13:12,848 Suze: And the reason is I don't think you're going to 189 00:13:12,859 --> 00:13:17,729 Suze: see real estate prices come down as well. Now, maybe 190 00:13:17,739 --> 00:13:19,590 Suze: they'll come down a little bit, 191 00:13:20,359 --> 00:13:25,270 Suze: but especially for single family residences, you have so many 192 00:13:25,280 --> 00:13:30,380 Suze: people that bought their homes at 2 2.5 3% interest, 193 00:13:30,609 --> 00:13:35,260 Suze: they're not gonna go anywhere. You're not seeing homebuilders really 194 00:13:35,270 --> 00:13:39,339 Suze: building enough inventory for the demand. 195 00:13:40,030 --> 00:13:46,169 Suze: So when there's less supply than demand, real estate prices 196 00:13:46,179 --> 00:13:50,770 Suze: will not go down. Now, that doesn't mean that real 197 00:13:50,780 --> 00:13:54,710 Suze: estate sales might not slow down and things like that. 198 00:13:54,719 --> 00:13:58,250 Suze: But my advice to you and just something to think 199 00:13:58,260 --> 00:13:58,890 Suze: about 200 00:14:00,150 --> 00:14:03,059 Suze: if you want to buy a piece of real estate 201 00:14:03,380 --> 00:14:07,500 Suze: and you want to do it now and maybe still 202 00:14:07,510 --> 00:14:11,218 Suze: the fixed on a 30 or even 15 year mortgage 203 00:14:11,450 --> 00:14:16,539 Suze: is way too high. Just maybe just maybe 204 00:14:17,280 --> 00:14:20,820 Suze: you look at an adjustable rate mortgage 205 00:14:21,580 --> 00:14:23,840 Suze: where maybe you get a five and one where the 206 00:14:23,849 --> 00:14:26,440 Suze: interest rate is fixed for five years and then it 207 00:14:26,450 --> 00:14:30,080 Suze: adjusts every year, maybe even a seven and one. 208 00:14:30,880 --> 00:14:35,289 Suze: And if interest rates go down, maybe your adjustable rate 209 00:14:35,770 --> 00:14:39,760 Suze: will also adjust down because, you know, they don't always 210 00:14:39,770 --> 00:14:45,010 Suze: just adjust up and maybe if interest rates come down enough. 211 00:14:45,049 --> 00:14:47,770 Suze: All right, maybe it's worth the while then knowing that 212 00:14:47,780 --> 00:14:50,130 Suze: you're going to stay in that house for a lot 213 00:14:50,140 --> 00:14:51,530 Suze: longer time. 214 00:14:51,989 --> 00:14:56,650 Suze: Maybe, then you refinance when interest rates do really come down, 215 00:14:56,659 --> 00:14:59,780 Suze: if they come down. But I don't think you're gonna 216 00:14:59,789 --> 00:15:03,400 Suze: see them come down to the 2% area or where 217 00:15:03,409 --> 00:15:09,859 Suze: they were a few years ago, maybe 3.5% maybe 4%. 218 00:15:10,059 --> 00:15:14,429 Suze: But I just don't think in the foreseeable future they're 219 00:15:14,440 --> 00:15:18,440 Suze: gonna come down further than that. I hope I'm wrong. 220 00:15:19,109 --> 00:15:22,530 Suze: But I'd rather see you get into real estate now 221 00:15:25,690 --> 00:15:29,539 Suze: being able to refinance if interest rates go down 222 00:15:30,450 --> 00:15:34,130 Suze: and see what happens at that point in time than 223 00:15:34,140 --> 00:15:36,869 Suze: not being able to buy because you can't afford the 224 00:15:36,880 --> 00:15:41,510 Suze: fixed rate interest and you're holding out thinking that real 225 00:15:41,520 --> 00:15:46,020 Suze: estate prices are going to be coming down. I don't 226 00:15:46,030 --> 00:15:50,010 Suze: think it's gonna work that way. So it's just something 227 00:15:50,020 --> 00:15:54,270 Suze: for you to explore and think about next. 228 00:15:55,250 --> 00:16:00,150 Suze: As you know, I've been a tremendous advocate of regardless 229 00:16:00,159 --> 00:16:05,270 Suze: of your income telling you and encouraging you for a 230 00:16:05,280 --> 00:16:09,250 Suze: retirement account to put the money in a Roth Ira. 231 00:16:09,260 --> 00:16:14,179 Suze: If you qualify a Roth 401k or 403 B or TSP, 232 00:16:14,190 --> 00:16:16,390 Suze: regardless of your income. 233 00:16:16,909 --> 00:16:20,940 Suze: And the other day I read this incredible article quite 234 00:16:20,950 --> 00:16:24,659 Suze: long on why. If you're in a high tax bracket, 235 00:16:24,739 --> 00:16:29,380 Suze: pre-tax retirement accounts are the way to go. And they 236 00:16:29,390 --> 00:16:31,659 Suze: did the math on it and the math and the 237 00:16:31,669 --> 00:16:35,010 Suze: numbers were like showing, ok, you kind of come out 238 00:16:35,020 --> 00:16:37,799 Suze: the same or you don't and it, but you're better off. 239 00:16:38,000 --> 00:16:40,940 Suze: Here's what I want to say to you. I've been 240 00:16:40,950 --> 00:16:43,690 Suze: doing this now for 40 years. 241 00:16:44,429 --> 00:16:47,809 Suze: Many of the people that I've been dealing with for 242 00:16:47,820 --> 00:16:50,299 Suze: all those years. Many of you 243 00:16:51,229 --> 00:16:55,809 Suze: are older now and now you're at the point where 244 00:16:55,820 --> 00:17:00,049 Suze: you are near retirement or you have retired or you're 245 00:17:00,059 --> 00:17:05,459 Suze: 70 73 75 whatever it is. And you're having to 246 00:17:05,469 --> 00:17:10,520 Suze: take money out of your pre-tax retirement accounts. And a 247 00:17:10,530 --> 00:17:13,849 Suze: lot of you are saying to me, if only I 248 00:17:13,859 --> 00:17:16,290 Suze: had listened to you to begin with, 249 00:17:17,010 --> 00:17:21,310 Suze: I now retired. I now still have a mortgage on 250 00:17:21,319 --> 00:17:24,530 Suze: my home. I wish I could pay off that mortgage 251 00:17:24,540 --> 00:17:27,709 Suze: on my home. But all my money really is in 252 00:17:27,719 --> 00:17:32,500 Suze: my pre-tax retirement account. And if I took out $300,000 253 00:17:32,510 --> 00:17:37,020 Suze: in one lump sum to pay off a $300,000 mortgage, 254 00:17:37,310 --> 00:17:39,089 Suze: that would put me in a higher income 255 00:17:39,150 --> 00:17:42,170 Suze: tax bracket, I'd pay taxes on all of it. I'd 256 00:17:42,180 --> 00:17:46,599 Suze: probably end up with only maybe $200,000. So it still 257 00:17:46,609 --> 00:17:49,169 Suze: wouldn't be enough. So I'd have to take out four 258 00:17:49,180 --> 00:17:53,469 Suze: or $500,000 to pay off a $300,000 mortgage. If I 259 00:17:53,479 --> 00:17:56,369 Suze: just had all that money in a Roth retirement account, 260 00:17:56,550 --> 00:18:01,150 Suze: I could take out $300,000 and be done with my mortgage. 261 00:18:02,270 --> 00:18:08,208 Suze: So later on in life, things can happen where you 262 00:18:08,219 --> 00:18:11,439 Suze: need a lump sum of money. Maybe you need a 263 00:18:11,449 --> 00:18:13,879 Suze: lump sum because you want to help your Children buy 264 00:18:13,890 --> 00:18:18,290 Suze: a home or whatever it may be. Maybe you're ill 265 00:18:18,300 --> 00:18:20,489 Suze: and you need a nurse all the time and you 266 00:18:20,500 --> 00:18:21,969 Suze: need more money. 267 00:18:22,829 --> 00:18:27,449 Suze: It's nice to know that the money that you have 268 00:18:28,390 --> 00:18:33,369 Suze: is all yours. What you see is what you get 269 00:18:33,560 --> 00:18:38,989 Suze: and I don't personally care what the numbers say. I 270 00:18:39,000 --> 00:18:43,409 Suze: care about your needs as a person. 271 00:18:44,109 --> 00:18:47,609 Suze: And it just seems to me that as a person, 272 00:18:47,619 --> 00:18:51,389 Suze: you not only care about yourself and your own needs 273 00:18:51,400 --> 00:18:54,459 Suze: because remember in a Roth retirement account, you do not 274 00:18:54,469 --> 00:18:59,329 Suze: have to take out required minimum distributions as you do 275 00:18:59,339 --> 00:19:00,889 Suze: in a pre-tax account. 276 00:19:01,540 --> 00:19:04,520 Suze: So if you don't need that money, 277 00:19:05,300 --> 00:19:08,560 Suze: that money will continue to grow and grow. 278 00:19:09,310 --> 00:19:13,760 Suze: Because what as a mother or a father or parents, 279 00:19:13,979 --> 00:19:20,030 Suze: what is your biggest priority in life? It's not yourselves, 280 00:19:20,300 --> 00:19:24,919 Suze: it's not the quality of your life. It's your children. 281 00:19:25,520 --> 00:19:30,399 Suze: You live for your children in the majority of cases. 282 00:19:30,530 --> 00:19:33,520 Suze: And so many of you want to make sure that 283 00:19:33,530 --> 00:19:37,060 Suze: it's your children that are ok. You're all right. You're 284 00:19:37,069 --> 00:19:41,500 Suze: getting by on certain things. You're living a maybe lesser lifestyle, 285 00:19:42,290 --> 00:19:45,869 Suze: but you're afraid that your kids are gonna need help. 286 00:19:45,880 --> 00:19:50,430 Suze: Maybe their job's gonna be replaced by artificial intelligence. Maybe 287 00:19:50,439 --> 00:19:52,729 Suze: they get in a situation where they're married and then 288 00:19:52,739 --> 00:19:55,329 Suze: they get divorced and they lose all their money to 289 00:19:55,339 --> 00:19:58,639 Suze: their spouse or whatever and now they're starting all over 290 00:19:58,650 --> 00:20:01,369 Suze: again at 50 or 60. And you want to know 291 00:20:01,380 --> 00:20:02,629 Suze: that they're ok 292 00:20:03,790 --> 00:20:06,060 Suze: and it gives you such joy 293 00:20:06,800 --> 00:20:12,010 Suze: and security to know that the money that you have 294 00:20:12,020 --> 00:20:16,380 Suze: in your Roth retirement accounts not only could help you 295 00:20:17,040 --> 00:20:21,079 Suze: if you needed it without any tax consequences, but in 296 00:20:21,089 --> 00:20:26,060 Suze: the long run, you could leave it to your family members. 297 00:20:26,069 --> 00:20:28,968 Suze: Remember what I said at the beginning of this podcast, 298 00:20:29,930 --> 00:20:35,670 Suze: this is a Financial Family podcast where we don't just 299 00:20:35,680 --> 00:20:40,239 Suze: think about ourselves. We think about our family members. I 300 00:20:40,250 --> 00:20:43,810 Suze: think about all of you and all of your situations 301 00:20:43,819 --> 00:20:47,750 Suze: as if you were and are my family because on 302 00:20:47,760 --> 00:20:51,709 Suze: some level you are or you won't be listening to 303 00:20:51,719 --> 00:20:55,369 Suze: this podcast. You just won't. I know it 304 00:20:55,709 --> 00:21:01,530 Suze: because this isn't your typical financial podcast. It just isn't. 305 00:21:02,189 --> 00:21:06,709 Suze: So I don't care what the CPA say, the enrolled 306 00:21:06,719 --> 00:21:12,089 Suze: agents say some of the most astute financial people out 307 00:21:12,099 --> 00:21:15,589 Suze: there that write articles for other financial people and what 308 00:21:15,599 --> 00:21:16,890 Suze: they say. 309 00:21:18,140 --> 00:21:25,829 Suze: The numbers don't tell the entire story, your personal situations do. 310 00:21:26,780 --> 00:21:30,719 Suze: So it's really important, really important 311 00:21:31,369 --> 00:21:35,139 Suze: that if you're gonna go by my advice, I don't 312 00:21:35,150 --> 00:21:36,819 Suze: care what article you read. 313 00:21:37,829 --> 00:21:39,839 Suze: I say hands down 314 00:21:40,910 --> 00:21:45,449 Suze: a Roth IRA. A Roth retirement account is the way 315 00:21:45,459 --> 00:21:48,228 Suze: to go at work. And I can tell you the 316 00:21:48,239 --> 00:21:51,448 Suze: biggest mistake I have made, 317 00:21:52,520 --> 00:21:56,709 Suze: in my opinion, with my money is not taking advantage 318 00:21:56,760 --> 00:21:59,750 Suze: of the one time conversion that I could have done 319 00:21:59,760 --> 00:22:02,829 Suze: from my pretext into a Roth 320 00:22:03,550 --> 00:22:07,899 Suze: and just had that money grow and grow and grow. 321 00:22:07,910 --> 00:22:11,680 Suze: Because now even though I don't need it, I have 322 00:22:11,689 --> 00:22:16,180 Suze: to take out a whole lot of money and I 323 00:22:16,189 --> 00:22:20,819 Suze: wish I didn't have to starting next year, Miss Travis 324 00:22:20,829 --> 00:22:24,060 Suze: is gonna have to start taking out a whole lot 325 00:22:24,069 --> 00:22:27,719 Suze: of money and I wish she didn't have to, I 326 00:22:27,729 --> 00:22:30,739 Suze: wish all of that money could just stay in that 327 00:22:30,750 --> 00:22:32,149 Suze: retirement account 328 00:22:32,959 --> 00:22:35,819 Suze: as a Roth. It can't because it's not a Roth 329 00:22:36,050 --> 00:22:39,199 Suze: and grow and grow and grow. And then for us 330 00:22:39,209 --> 00:22:43,260 Suze: to have a serious sum of money to leave to hospitals, 331 00:22:43,270 --> 00:22:47,060 Suze: to leave to Saint Jude. And instead, what do I do? 332 00:22:47,069 --> 00:22:49,619 Suze: I have to take it out and lose a big 333 00:22:49,630 --> 00:22:55,660 Suze: percentage to what Uncle Sam. So I just wanna say 334 00:22:55,670 --> 00:22:58,770 Suze: that next topic, Bitcoin, 335 00:22:59,540 --> 00:23:03,790 Suze: somebody recently wrote me and they took me in their 336 00:23:03,800 --> 00:23:05,040 Suze: opinion to the cleaners. 337 00:23:05,869 --> 00:23:08,290 Suze: I don't even know if that's the right phrase. But anyway, 338 00:23:09,040 --> 00:23:14,770 Suze: and they said how dare I talk to people about Bitcoin. Now, 339 00:23:14,780 --> 00:23:18,819 Suze: I may have also mentioned this on a previous podcast, 340 00:23:19,140 --> 00:23:21,890 Suze: but I just want to be clear with people, 341 00:23:23,280 --> 00:23:27,619 Suze: I would never invest any money in Bitcoin or any 342 00:23:27,630 --> 00:23:32,379 Suze: of the Bitcoin ETFs with money that I couldn't afford 343 00:23:32,390 --> 00:23:34,180 Suze: to lose. Number one, 344 00:23:34,859 --> 00:23:40,260 Suze: number two. Do I think however, if you can afford 345 00:23:40,270 --> 00:23:42,560 Suze: to lose it because you never know what will happen 346 00:23:42,569 --> 00:23:43,510 Suze: with Bitcoin 347 00:23:44,650 --> 00:23:48,670 Suze: if I could afford to lose it. Do I think 348 00:23:49,349 --> 00:23:54,250 Suze: it's a wise investment and as much as everybody's gonna think, 349 00:23:54,260 --> 00:23:59,130 Suze: I'm crazy. I do. And one of the reasons that 350 00:23:59,140 --> 00:24:02,260 Suze: I do is that there are too many corporations now 351 00:24:02,270 --> 00:24:06,699 Suze: sitting on the sideline really taking a look at it. 352 00:24:06,709 --> 00:24:11,969 Suze: The younger generations are seriously into it 353 00:24:12,630 --> 00:24:14,130 Suze: and they like it 354 00:24:14,819 --> 00:24:18,439 Suze: and you know, as the youth goes sometimes, so does 355 00:24:18,449 --> 00:24:19,479 Suze: the economy. 356 00:24:20,099 --> 00:24:25,000 Suze: So I still like Bitcoin a lot. One of you 357 00:24:25,010 --> 00:24:28,500 Suze: recently wrote in and you asked me a question, Suze, 358 00:24:29,069 --> 00:24:33,030 Suze: if you were to buy IBIT the ETF or Bitcoin 359 00:24:33,040 --> 00:24:37,800 Suze: directly BTC that you can do through many different ways 360 00:24:38,050 --> 00:24:44,040 Suze: or would you buy Coinbase as a surrogate for Bitcoin? 361 00:24:44,619 --> 00:24:47,030 Suze: What I would tell you is this 362 00:24:47,310 --> 00:24:51,369 Suze: and for those of you who don't know, Coinbase is 363 00:24:51,380 --> 00:24:55,449 Suze: a stock of a company that you can open up 364 00:24:55,459 --> 00:25:00,129 Suze: an account and buy all different kind of cryptocurrencies there. 365 00:25:00,270 --> 00:25:03,790 Suze: So they're just not about Bitcoin. You could do Ethereum, 366 00:25:03,800 --> 00:25:07,040 Suze: you could do so many different ones. So it's not 367 00:25:07,050 --> 00:25:14,050 Suze: a pure play on Bitcoin. Now. I like Coinbase a lot. 368 00:25:14,739 --> 00:25:16,689 Suze: I don't have a problem, if you want to buy it, 369 00:25:16,699 --> 00:25:20,160 Suze: it's down significantly. You want a dollar cost average. Ok, 370 00:25:20,170 --> 00:25:21,000 Suze: up to you. 371 00:25:21,760 --> 00:25:25,780 Suze: But again, with money you can afford to lose. But 372 00:25:25,790 --> 00:25:31,000 Suze: a pure play on Bitcoin will make you more money, 373 00:25:31,010 --> 00:25:35,619 Suze: in my opinion, whether it's IBIT or the actual coin itself. 374 00:25:35,959 --> 00:25:41,829 Suze: I just think that's a 100% play on that Cryptocurrency. 375 00:25:42,160 --> 00:25:45,329 Suze: And do I think that it's possible that it could 376 00:25:45,339 --> 00:25:47,530 Suze: still continue way up? I do. 377 00:25:48,489 --> 00:25:51,089 Suze: I don't think it's impossible that you could see it 378 00:25:51,099 --> 00:25:55,510 Suze: at $100,000 one day. I don't know when, but you have 379 00:25:55,520 --> 00:25:57,910 Suze: to remember even just a few months ago, it went 380 00:25:57,920 --> 00:26:00,959 Suze: up like 75% in a very short period of time. 381 00:26:01,050 --> 00:26:04,589 Suze: If it went up 75% from here. Well, now you're there. 382 00:26:05,270 --> 00:26:07,939 Suze: But it's just something 383 00:26:08,650 --> 00:26:11,469 Suze: that if you want to do and you just want 384 00:26:11,479 --> 00:26:13,280 Suze: to do it with a small amount of money or 385 00:26:13,290 --> 00:26:15,890 Suze: an amount of money that you can afford to lose. 386 00:26:16,069 --> 00:26:19,310 Suze: I don't have a problem with that. So I don't 387 00:26:19,319 --> 00:26:22,959 Suze: really care what anybody else says, what anybody else thinks. 388 00:26:22,969 --> 00:26:25,790 Suze: Is there something better to do with the money, maybe? 389 00:26:26,459 --> 00:26:29,379 Suze: But I've done it with a small amount of money 390 00:26:29,420 --> 00:26:33,910 Suze: and I like that. I've done it gold. We've done 391 00:26:33,920 --> 00:26:37,079 Suze: quite well with gold. If you think about it a 392 00:26:37,089 --> 00:26:41,760 Suze: while ago, I had many of you buy Barrack and 393 00:26:41,770 --> 00:26:45,229 Suze: it was paying a 2% or so dividend. We're up 394 00:26:45,239 --> 00:26:49,930 Suze: now on that stock symbol was gold. Also, many of 395 00:26:49,939 --> 00:26:54,469 Suze: you actually bought the ETF GLD and gold has had 396 00:26:54,479 --> 00:26:56,280 Suze: a nice run here. 397 00:26:56,719 --> 00:26:59,660 Suze: I always know that it's gone up when KT comes 398 00:26:59,670 --> 00:27:02,679 Suze: to me and says, is it time to sell our gold? 399 00:27:02,689 --> 00:27:04,919 Suze: Should we go? Because, you know, over the years, what 400 00:27:04,930 --> 00:27:06,859 Suze: was funny is that I did a lot of work 401 00:27:06,869 --> 00:27:07,938 Suze: in South Africa 402 00:27:08,859 --> 00:27:12,219 Suze: and whenever I was there, I was given a coin, 403 00:27:12,229 --> 00:27:12,879 Suze: a Krugerrand 404 00:27:14,119 --> 00:27:18,129 Suze: and the Krugerrand at the time weren't really worth that much. 405 00:27:18,599 --> 00:27:24,030 Suze: And now they're worth 2600 $2700 a Krugerrand. And so 406 00:27:24,040 --> 00:27:27,050 Suze: KT s says to me, well, should we sell them now? 407 00:27:27,880 --> 00:27:31,310 Suze: And every time I'm like, well, maybe we should hold 408 00:27:31,319 --> 00:27:32,180 Suze: it a little, 409 00:27:33,250 --> 00:27:38,180 Suze: it goes back down and then it goes back up again. So, however, 410 00:27:38,189 --> 00:27:41,380 Suze: at this point in time, I think it's very possible 411 00:27:41,390 --> 00:27:45,390 Suze: that gold could continue up. I think it's a nice 412 00:27:45,400 --> 00:27:49,229 Suze: thing to kind of have in a portfolio just to 413 00:27:49,239 --> 00:27:53,969 Suze: stabilize it. Not because we're losing out on our dollars. 414 00:27:53,979 --> 00:27:56,430 Suze: We're doing this, we're doing that now, just, just a 415 00:27:56,439 --> 00:27:59,869 Suze: little amount again for diversification. 416 00:28:00,500 --> 00:28:04,560 Suze: But I have decided given that it's gone up so 417 00:28:04,569 --> 00:28:08,739 Suze: much from the time that we got these that maybe 418 00:28:08,750 --> 00:28:12,130 Suze: we'll sell one, two or three of them. Um, but we'll 419 00:28:12,140 --> 00:28:15,949 Suze: see what happens here, but I still like gold. I 420 00:28:15,959 --> 00:28:19,959 Suze: don't have a problem with it, but again, just a very, 421 00:28:19,969 --> 00:28:22,119 Suze: very small amount. 422 00:28:22,829 --> 00:28:29,050 Suze: So that's one thing last, but not least the stock market, 423 00:28:29,630 --> 00:28:34,790 Suze: the stock such as NVIDIA and AMD and the ETF SMH, 424 00:28:36,359 --> 00:28:39,689 Suze: which somebody can remember they wrote back and they said, Suze, 425 00:28:39,699 --> 00:28:42,810 Suze: I hate this stock. I'm not making any money with 426 00:28:42,819 --> 00:28:46,209 Suze: it and it was at 235 when they wrote that 427 00:28:46,349 --> 00:28:48,609 Suze: and I kind of let them have it and I said, fine, 428 00:28:48,619 --> 00:28:50,089 Suze: sell it if you don't like it. 429 00:28:50,349 --> 00:28:53,130 Suze: And then right after that, it went all the way up, 430 00:28:53,140 --> 00:28:55,339 Suze: then it went all the way back down again. Now 431 00:28:55,349 --> 00:28:56,329 Suze: it's up again. 432 00:28:57,239 --> 00:29:03,000 Suze: This is an area of investing that is here to stay. 433 00:29:04,140 --> 00:29:08,359 Suze: There are some opportunities within this area that will be 434 00:29:08,369 --> 00:29:13,760 Suze: life long opportunities. And one day if you don't take 435 00:29:13,770 --> 00:29:17,920 Suze: advantage of the correct stocks within that area, you will 436 00:29:17,930 --> 00:29:23,670 Suze: look back and go. Why didn't I? So how do 437 00:29:23,680 --> 00:29:26,189 Suze: you know what those right stocks are? 438 00:29:26,670 --> 00:29:30,770 Suze: Let's see what Mr Fitzgerald comes out with in the 439 00:29:30,780 --> 00:29:36,329 Suze: next month or so in his program and we'll go 440 00:29:36,339 --> 00:29:40,988 Suze: from there. But I do think that there's nothing wrong 441 00:29:41,000 --> 00:29:46,239 Suze: with S mh for a start dollar cost average and 442 00:29:46,250 --> 00:29:47,530 Suze: just no, 443 00:29:48,189 --> 00:29:53,849 Suze: that it's brighter for the future than it is darker. 444 00:29:54,400 --> 00:29:58,599 Suze: It's always been brighter for the future when you're investing 445 00:29:58,609 --> 00:30:02,229 Suze: in the stock market because it likes to go up 446 00:30:02,239 --> 00:30:06,489 Suze: more than it likes to go down. It's very hard 447 00:30:06,500 --> 00:30:10,599 Suze: to be pessimistic when it comes to the stock market. 448 00:30:10,630 --> 00:30:13,979 Suze: You know, over the years, obviously, I've been quite the 449 00:30:13,989 --> 00:30:14,880 Suze: investor 450 00:30:15,510 --> 00:30:18,050 Suze: and there were times when I thought that the market 451 00:30:18,060 --> 00:30:21,219 Suze: would go down and I would short the market or 452 00:30:21,229 --> 00:30:24,229 Suze: I would do something called buying puts, which is an 453 00:30:24,239 --> 00:30:28,489 Suze: option strategy that if you buy puts in the market 454 00:30:28,500 --> 00:30:30,969 Suze: goes down, you make money. 455 00:30:31,800 --> 00:30:35,140 Suze: And every time I did that, 456 00:30:35,800 --> 00:30:41,738 Suze: I felt so horrific wanting the market to go down, 457 00:30:42,160 --> 00:30:45,760 Suze: I felt like I was a financial traitor, you know, 458 00:30:45,770 --> 00:30:50,839 Suze: and that's traitor - traitor that I was going against the 459 00:30:50,849 --> 00:30:56,640 Suze: grain of America and wanting the stocks to go up. 460 00:30:56,650 --> 00:30:58,140 Suze: And I just couldn't do it. 461 00:30:58,890 --> 00:31:03,310 Suze: And to this day I've never done it again. Selling 462 00:31:03,319 --> 00:31:06,130 Suze: puts is a whole another strategy that maybe one day 463 00:31:06,140 --> 00:31:10,369 Suze: we'll talk about. So I think it's in the psychological 464 00:31:10,380 --> 00:31:14,640 Suze: makeup of human beings that they want things to go 465 00:31:14,650 --> 00:31:18,449 Suze: up more than they feel good when they go down 466 00:31:18,459 --> 00:31:21,790 Suze: and they want to profit from it going down. Which 467 00:31:21,800 --> 00:31:23,109 Suze: is why I think the majority of the 468 00:31:23,194 --> 00:31:27,194 Suze: times the markets go higher than they do lower. And 469 00:31:27,204 --> 00:31:30,494 Suze: even if they go lower, they return and go higher. 470 00:31:30,594 --> 00:31:34,214 Suze: And if they go lower and you are dollar cost, averaging, 471 00:31:34,464 --> 00:31:39,234 Suze: you take advantage of it. It's just that simple. So 472 00:31:39,244 --> 00:31:42,175 Suze: I'm very optimistic about the future, 473 00:31:42,650 --> 00:31:47,969 Suze: especially of certain stocks. And so even if these markets 474 00:31:47,979 --> 00:31:51,349 Suze: go down for a while here in the long run, 475 00:31:51,359 --> 00:31:55,469 Suze: I want us all to be optimistic. All right, 476 00:31:56,170 --> 00:31:58,609 Suze: I have two more announcements 477 00:31:59,500 --> 00:32:04,449 Suze: a few days ago, September 25th, we added a new 478 00:32:04,459 --> 00:32:09,510 Suze: addition to our family, our niece, Kaitlyn Stener 479 00:32:10,349 --> 00:32:16,969 Suze: and nephew Taylor Neely and their children, Tommy J and Will. 480 00:32:17,099 --> 00:32:21,670 Suze: They added a new addition to all of our families, 481 00:32:21,680 --> 00:32:26,109 Suze: a little baby boy by the name of Nicholas Neely. 482 00:32:26,500 --> 00:32:33,729 Suze: And he is stunning. Just stunning. So Katie, Taylor, 483 00:32:34,020 --> 00:32:39,780 Suze: Will and Tommy J and Nicholas. So, so happy for 484 00:32:39,810 --> 00:32:46,520 Suze: all of you. Next, yesterday was Oliver Tandy, my nephew's 485 00:32:48,130 --> 00:32:56,339 Suze: birthday and today is his sister's Scarlett Tandy's birthday. So 486 00:32:56,349 --> 00:32:59,819 Suze: I want to wish both of you a really, really 487 00:32:59,829 --> 00:33:01,439 Suze: happy birthday. 488 00:33:01,849 --> 00:33:06,089 Suze: All right, everybody. So until Thursday, what I want to 489 00:33:06,099 --> 00:33:09,900 Suze: say is that Katie and I will be recording and 490 00:33:09,910 --> 00:33:13,339 Suze: Ask KT and Suze Anything early 491 00:33:14,060 --> 00:33:17,790 Suze: because we will be in Las Vegas at that point 492 00:33:17,800 --> 00:33:21,060 Suze: in time. But I don't want you to miss out 493 00:33:21,229 --> 00:33:25,280 Suze: on Miss Travis. So you'll have your KT and Suze 494 00:33:25,290 --> 00:33:30,030 Suze: Anything edition like always. And then I'll see you next 495 00:33:30,040 --> 00:33:32,790 Suze: Sunday for another Suze school. 496 00:33:33,510 --> 00:33:38,069 Suze: And the topic of that Suze School is let's make 497 00:33:38,079 --> 00:33:43,890 Suze: a date with your money. Hm. Curious. But until then 498 00:33:43,900 --> 00:33:45,650 Suze: there's really only one thing that I want you to 499 00:33:45,660 --> 00:33:48,670 Suze: remember when it comes to your money and it's this 500 00:33:48,680 --> 00:33:53,459 Suze: people first, then money, then things. And if you do that, 501 00:33:53,469 --> 00:33:59,209 Suze: stay safe and stay healthy, you will be unstoppable.