1
00:00:00,519 --> 00:00:00,939
Music: (Music In).

2
00:00:29,590 --> 00:00:35,990
Suze: May 21st 2023. Welcome everybody to the Women and Money

3
00:00:36,000 --> 00:00:41,619
Suze: podcast as well as everybody smart enough to listen. Yes,

4
00:00:41,668 --> 00:00:47,520
Suze: this is Suze School. This is me without KT. You know,

5
00:00:47,529 --> 00:00:51,659
Suze: so many of you wrote in and said, absolutely not.

6
00:00:52,069 --> 00:00:57,189
Suze: We love our KT. Let's keep her on Thursday with

7
00:00:57,200 --> 00:00:58,299
Suze: you Suze.

8
00:00:58,750 --> 00:01:04,120
Suze: And then just let's keep Suze School on Sundays because

9
00:01:04,129 --> 00:01:08,519
Suze: they're both so different. So I have a little announcement

10
00:01:08,529 --> 00:01:12,800
Suze: to make. That is exactly what we are going to

11
00:01:12,809 --> 00:01:18,099
Suze: do except... For the next month or so, I just

12
00:01:18,110 --> 00:01:22,339
Suze: want you to listen closely. OK. Our producer that we

13
00:01:22,349 --> 00:01:24,279
Suze: all love, Robert.

14
00:01:24,790 --> 00:01:30,199
Suze: Robert has decided that he's finally gonna go on vacation

15
00:01:30,919 --> 00:01:34,110
Suze: and you know what he's gonna go do? He is

16
00:01:34,120 --> 00:01:40,269
Suze: going to go around the United States everywhere where Dead

17
00:01:40,279 --> 00:01:44,250
Suze: and Company, the original band was called The Grateful Dead.

18
00:01:44,260 --> 00:01:47,779
Suze: And then over the years after Jerry Garcia died, now,

19
00:01:47,790 --> 00:01:51,370
Suze: they're known as Dead and Company.

20
00:01:52,410 --> 00:01:59,300
Suze: And he wants to see their last concerts. So therefore

21
00:01:59,309 --> 00:02:02,790
Suze: he's not gonna be available to produce things and record

22
00:02:02,800 --> 00:02:05,900
Suze: them the way that we normally do. Because what I

23
00:02:05,910 --> 00:02:10,258
Suze: like to do with Suze School especially, is I like

24
00:02:10,270 --> 00:02:11,279
Suze: to record it

25
00:02:11,529 --> 00:02:15,220
Suze: as close to when we're gonna drop it. So that

26
00:02:15,229 --> 00:02:18,699
Suze: if something happens in the economy or the stock market

27
00:02:18,710 --> 00:02:21,800
Suze: or whatever it is, I can talk to all of

28
00:02:21,809 --> 00:02:25,100
Suze: you about it, but that's not gonna be able to

29
00:02:25,110 --> 00:02:33,039
Suze: happen while Robert is gallivanting around the United States. Let's

30
00:02:33,050 --> 00:02:36,669
Suze: put a pause in that for just one second. Robert,

31
00:02:36,679 --> 00:02:40,660
Suze: I'm about to tell you something. So, a long time ago,

32
00:02:41,149 --> 00:02:45,039
Suze: I was on the plane and the man sitting next

33
00:02:45,050 --> 00:02:45,758
Suze: to me

34
00:02:46,360 --> 00:02:51,500
Suze: was named Micky Hart. Now I didn't know who Mickey

35
00:02:51,508 --> 00:02:54,009
Suze: Hart was on any level

36
00:02:55,149 --> 00:02:59,800
Suze: and he looked at me and he said, oh, aren't

37
00:02:59,809 --> 00:03:04,270
Suze: you Suze Orman? And I said, yes, he said, I'm

38
00:03:04,279 --> 00:03:09,869
Suze: Mickey Hart of the Grateful Dead. And I went, oh,

39
00:03:09,889 --> 00:03:16,190
Suze: you're the drummer. And he said I am not a drummer, Suze,

40
00:03:16,460 --> 00:03:19,080
Suze: I am a percussionist

41
00:03:20,169 --> 00:03:25,089
Suze: and I'm like, ok, whatever. And Robert do you know

42
00:03:25,460 --> 00:03:30,959
Suze: that he invited me to a Grateful Dead concert.

43
00:03:31,600 --> 00:03:35,419
Suze: And I actually went to the concert and I was

44
00:03:35,429 --> 00:03:39,610
Suze: right there backstage, watched the whole thing.

45
00:03:40,309 --> 00:03:43,240
Suze: And now I actually got to do the financial planning

46
00:03:43,250 --> 00:03:47,800
Suze: for one of them just so, you know, sir, but

47
00:03:47,809 --> 00:03:49,039
Suze: back to the point.

48
00:03:49,660 --> 00:03:54,789
Suze: So because Robert will be gallivanting around the United States

49
00:03:54,970 --> 00:03:57,470
Suze: to see these concerts...

50
00:03:58,130 --> 00:04:00,630
Suze: just while he is gone,

51
00:04:01,449 --> 00:04:06,460
Suze: I'm going to ask your indulgence that we will be

52
00:04:06,470 --> 00:04:13,669
Suze: doing Ask KT and Suze anything for Thursdays and Sundays

53
00:04:13,679 --> 00:04:16,459
Suze: because then we can just do a bunch of them

54
00:04:16,470 --> 00:04:17,940
Suze: ahead of time

55
00:04:18,799 --> 00:04:22,309
Suze: and he'll be able to take a vacation and do

56
00:04:22,320 --> 00:04:25,959
Suze: all of that as well. So for those of you

57
00:04:25,970 --> 00:04:29,089
Suze: who wrote in and you said, oh, we love KT

58
00:04:29,579 --> 00:04:32,700
Suze: we could, why not do another ask Suze and KT

59
00:04:32,959 --> 00:04:37,849
Suze: Anything besides Suze School? All right. So you're gonna get

60
00:04:37,859 --> 00:04:40,809
Suze: it for a little while. But all of you need

61
00:04:40,820 --> 00:04:45,350
Suze: to know if during those times something does happen

62
00:04:45,559 --> 00:04:49,260
Suze: and I need to school you on something. I will

63
00:04:49,269 --> 00:04:52,970
Suze: figure out a way to do so, but I just

64
00:04:52,980 --> 00:04:56,769
Suze: hope that you pay attention and continue to go to

65
00:04:56,779 --> 00:05:01,630
Suze: Suze School via the Ask KT and Suze Anything because

66
00:05:01,640 --> 00:05:05,690
Suze: really there's always a lot to learn.

67
00:05:06,609 --> 00:05:11,779
Suze: All right, two things recently have happened on Friday of

68
00:05:11,790 --> 00:05:18,160
Suze: last week now. And that is, uh, the both sides

69
00:05:18,170 --> 00:05:22,380
Suze: were having these meetings on the debt ceilings, ok?

70
00:05:23,100 --> 00:05:27,049
Suze: And everything looked like it was going pretty good. In fact,

71
00:05:27,059 --> 00:05:32,809
Suze: they announced that maybe next week they would have some

72
00:05:32,820 --> 00:05:35,980
Suze: solution to this and we could put this all to bed.

73
00:05:36,029 --> 00:05:40,709
Suze: Janet Yellen met with all of the bank CEOs saying

74
00:05:40,839 --> 00:05:47,570
Suze: it's all looking really good then sometime on Friday afternoon,

75
00:05:48,839 --> 00:05:55,170
Suze: everything broke down. The reporters say that they were standing

76
00:05:55,178 --> 00:05:58,488
Suze: outside the doors and all of a sudden this congressman,

77
00:05:58,760 --> 00:06:01,539
Suze: you know, by the name of Garrett Graves, I think

78
00:06:01,549 --> 00:06:04,739
Suze: that was his name. He walked out and he looked

79
00:06:04,750 --> 00:06:08,649
Suze: at them and he said, these meetings are no longer productive.

80
00:06:08,660 --> 00:06:11,290
Suze: Like he said, something like I'm not quoting him but

81
00:06:11,299 --> 00:06:12,230
Suze: something like this...

82
00:06:12,480 --> 00:06:17,539
Suze: until people are willing to have, you know, true conversations.

83
00:06:17,549 --> 00:06:20,390
Suze: We are not just going to sit there and talk

84
00:06:20,399 --> 00:06:22,850
Suze: to ourselves. We are done

85
00:06:23,559 --> 00:06:24,769
Suze: And they're over now

86
00:06:25,480 --> 00:06:28,390
Suze: Now, I don't know when they'll get back together. I

87
00:06:28,399 --> 00:06:32,649
Suze: don't know what that means, but that's not the most

88
00:06:32,660 --> 00:06:39,808
Suze: uplifting and positive type of news. On the other hand, however,

89
00:06:39,829 --> 00:06:46,350
Suze: Powell on Friday, the Fed chair, Jay Powell also said

90
00:06:46,619 --> 00:06:50,428
Suze: that rates may not have to rise as much as

91
00:06:50,440 --> 00:06:53,790
Suze: expected to curb inflation.

92
00:06:54,339 --> 00:06:57,339
Suze: And he went on and he gave a talk and

93
00:06:57,350 --> 00:07:01,019
Suze: essentially what he said is to make sure that the

94
00:07:01,029 --> 00:07:03,779
Suze: banks aren't under too much stress because they still are

95
00:07:03,790 --> 00:07:08,808
Suze: under stress. Maybe he doesn't have to raise the fed

96
00:07:08,820 --> 00:07:12,100
Suze: funds rate as much as he expected to do. So.

97
00:07:12,179 --> 00:07:15,589
Suze: So we'll see what happens with the Fed meeting in June.

98
00:07:15,779 --> 00:07:17,369
Suze: If he does that.

99
00:07:17,959 --> 00:07:21,049
Suze: that's really a good thing because as I said to

100
00:07:21,059 --> 00:07:27,670
Suze: you just last Thursday, it's not good. It's not good

101
00:07:27,679 --> 00:07:31,130
Suze: to continue to raise the fed funds rate when the

102
00:07:31,140 --> 00:07:34,890
Suze: system is under this much stress.

103
00:07:35,559 --> 00:07:38,559
Suze: All right. So that's just what I want you to

104
00:07:38,570 --> 00:07:41,250
Suze: know in terms of what happened on Friday.

105
00:07:41,880 --> 00:07:46,119
Suze: But in regards to all of that, I am saying

106
00:07:46,130 --> 00:07:52,429
Suze: to you, stop freaking out, they will figure this out.

107
00:07:52,589 --> 00:07:56,950
Suze: Your treasury bills, your certificates of deposit, your money and

108
00:07:56,959 --> 00:08:01,850
Suze: money market funds. We will be ok. That doesn't mean

109
00:08:02,350 --> 00:08:05,329
Suze: that things won't get wonky for a while.

110
00:08:05,869 --> 00:08:09,799
Suze: But I have a feeling that once everybody sees how

111
00:08:09,809 --> 00:08:14,410
Suze: wonky things will go because they can't agree on anything,

112
00:08:14,589 --> 00:08:19,339
Suze: maybe they will all come to their senses. But you know,

113
00:08:19,350 --> 00:08:22,959
Suze: this is a far, far bigger problem

114
00:08:23,750 --> 00:08:27,820
Suze: then just this. I think we've kicked the can down

115
00:08:27,829 --> 00:08:31,799
Suze: the road when it comes to our debt ceiling maybe

116
00:08:31,809 --> 00:08:36,359
Suze: 78 times. And there's only so far that you can

117
00:08:36,369 --> 00:08:39,239
Suze: kick that can down the road.

118
00:08:39,919 --> 00:08:46,530
Suze: It is impossible to have $31 trillion worth of debt.

119
00:08:47,000 --> 00:08:52,039
Suze: It is impossible to think that as that debt continues

120
00:08:52,049 --> 00:08:56,718
Suze: to grow and grow and possibly receipts go down and

121
00:08:56,729 --> 00:09:00,479
Suze: down that we're not going to one day get into

122
00:09:00,489 --> 00:09:03,320
Suze: serious financial trouble.

123
00:09:04,559 --> 00:09:09,070
Suze: So I think it's really important that both sides of

124
00:09:09,080 --> 00:09:15,890
Suze: Congress get their acts together and really figure out what

125
00:09:15,900 --> 00:09:18,690
Suze: we can do about this problem

126
00:09:19,320 --> 00:09:23,830
Suze: Because we have smoke here in this building and smoke

127
00:09:23,840 --> 00:09:28,070
Suze: means eventually we could have a fire and everything then

128
00:09:28,080 --> 00:09:32,488
Suze: really does go down. We're not there yet, but that

129
00:09:32,500 --> 00:09:35,969
Suze: doesn't mean that we won't get there one day. So

130
00:09:35,979 --> 00:09:38,770
Suze: kicking this can down the road

131
00:09:39,130 --> 00:09:44,539
Suze: and just continuously raising the debt ceiling without figuring out

132
00:09:44,549 --> 00:09:47,549
Suze: how to get things under control and what we really

133
00:09:47,559 --> 00:09:49,819
Suze: can and can't do.

134
00:09:50,760 --> 00:09:54,640
Suze: I'm telling you one day this will look like good

135
00:09:54,650 --> 00:09:59,830
Suze: news to everybody. So I hope they really can get

136
00:09:59,840 --> 00:10:04,979
Suze: their act together. But in the meantime, all of you

137
00:10:04,989 --> 00:10:10,968
Suze: are to just kind of stay put knowing we will

138
00:10:10,979 --> 00:10:15,250
Suze: be ok with what you have. Also, in terms of

139
00:10:15,260 --> 00:10:17,510
Suze: many of you are still asking about

140
00:10:17,750 --> 00:10:21,719
Suze: P X D, Pioneer, Devon, what should you do? I'm

141
00:10:21,729 --> 00:10:23,979
Suze: just gonna repeat once again,

142
00:10:25,229 --> 00:10:27,799
Suze: these markets are crazy.

143
00:10:28,489 --> 00:10:31,890
Suze: They will go up, they will go down, they may

144
00:10:31,900 --> 00:10:34,419
Suze: go up again for the next two weeks or so.

145
00:10:34,429 --> 00:10:37,299
Suze: I've said that to you before. They may take a

146
00:10:37,309 --> 00:10:41,380
Suze: big dip sometime here before the end of the year

147
00:10:41,390 --> 00:10:43,340
Suze: and then go way back up again.

148
00:10:44,239 --> 00:10:50,450
Suze: But when you are invested and you are invested for

149
00:10:50,460 --> 00:10:53,330
Suze: dividends in good companies,

150
00:10:54,010 --> 00:10:57,289
Suze: then you have to stick with the program. Now, if

151
00:10:57,299 --> 00:11:01,659
Suze: you have been dollar cost averaging into P X D

152
00:11:01,669 --> 00:11:05,900
Suze: or Devon, they have gone down considerably, which means your

153
00:11:05,909 --> 00:11:11,729
Suze: yield from where you've purchased, it will be higher. However,

154
00:11:11,830 --> 00:11:15,439
Suze: if it is starting to make you nervous, if you

155
00:11:15,450 --> 00:11:19,619
Suze: are not knowing what to do, don't do anything, then

156
00:11:19,630 --> 00:11:23,839
Suze: stop buying it. Stay where you are and that's it

157
00:11:24,109 --> 00:11:28,059
Suze: Because remember that was only to make up a very,

158
00:11:28,070 --> 00:11:33,739
Suze: very small part of your portfolio. It wasn't to be

159
00:11:33,750 --> 00:11:37,700
Suze: everything that you invested in. It was just to be

160
00:11:37,710 --> 00:11:40,640
Suze: a part of everything.

161
00:11:41,309 --> 00:11:45,260
Suze: So this should not be freaking you as much as

162
00:11:45,270 --> 00:11:50,130
Suze: it is. If it's freaking you, then this isn't right

163
00:11:50,140 --> 00:11:52,358
Suze: for you and then you should just sell and take

164
00:11:52,369 --> 00:11:55,799
Suze: your losses. I'm serious because what's the goal of money?

165
00:11:55,809 --> 00:11:58,270
Suze: The goal of money is for you to be secure

166
00:11:58,409 --> 00:12:02,559
Suze: and if you've done something that's making you feel insecure,

167
00:12:03,020 --> 00:12:05,140
Suze: then you shouldn't have done it to begin with because

168
00:12:05,150 --> 00:12:07,380
Suze: that means you didn't understand it

169
00:12:08,000 --> 00:12:10,909
Suze: or you need to stop doing it.

170
00:12:11,489 --> 00:12:16,559
Suze: Now, I'm not selling, I'm not nervous about it. I

171
00:12:16,570 --> 00:12:21,510
Suze: understand very well. What's happening here? I do as I've

172
00:12:21,520 --> 00:12:24,858
Suze: told you before, believe that there will come a time.

173
00:12:24,869 --> 00:12:28,880
Suze: I don't know when that is that oil will go

174
00:12:28,890 --> 00:12:33,289
Suze: back up to $100 a barrel or so. And then

175
00:12:33,299 --> 00:12:36,140
Suze: things will go back up again. But in the meantime,

176
00:12:36,409 --> 00:12:39,848
Suze: when I'm not sure what's happening with interest rates, when

177
00:12:39,859 --> 00:12:43,770
Suze: I'm not sure what's gonna happen with treasuries or anything else.

178
00:12:43,780 --> 00:12:48,169
Suze: At least I know I'm getting dividend money in stocks.

179
00:12:48,570 --> 00:12:50,580
Suze: As I said, that, that kind of reminds me we

180
00:12:50,590 --> 00:12:52,820
Suze: should do a Suze School. Maybe I'll do that next

181
00:12:52,830 --> 00:12:59,020
Suze: Sunday on preferred stocks because that's something that many of

182
00:12:59,030 --> 00:13:02,400
Suze: you might want to be looking at as an alternative

183
00:13:02,409 --> 00:13:05,579
Suze: for money for you to get income.

184
00:13:06,010 --> 00:13:09,770
Suze: But you have to understand when things go up and

185
00:13:09,780 --> 00:13:11,340
Suze: things go down,

186
00:13:12,140 --> 00:13:14,369
Suze: you can't let that freak you out.

187
00:13:15,239 --> 00:13:19,718
Suze: You should be happy about that. So I just wanted

188
00:13:19,729 --> 00:13:24,049
Suze: to say that to all of you next. I want

189
00:13:24,059 --> 00:13:26,760
Suze: to say something as well. And I want you to

190
00:13:26,770 --> 00:13:28,419
Suze: listen to me very closely

191
00:13:29,080 --> 00:13:30,590
Suze: last Thursday

192
00:13:31,469 --> 00:13:36,840
Suze: for the Ask KT and Suze Anything podcast, KT asked

193
00:13:36,849 --> 00:13:41,039
Suze: me a question that she got from the wall about

194
00:13:41,049 --> 00:13:46,440
Suze: a divorced woman who wanted to collect social security at 62.

195
00:13:47,150 --> 00:13:50,090
Suze: And she wanted to know if she took it at

196
00:13:50,099 --> 00:13:53,080
Suze: 62 and took a reduction

197
00:13:53,789 --> 00:13:56,260
Suze: when she turned 67

198
00:13:57,150 --> 00:14:01,750
Suze: could she then switch from her own social security to

199
00:14:01,760 --> 00:14:07,820
Suze: her ex spouse's social security and collect 50% of his

200
00:14:07,830 --> 00:14:12,210
Suze: social security? And I said yes.

201
00:14:12,849 --> 00:14:15,200
Suze: And I have to tell you I could not have

202
00:14:15,210 --> 00:14:18,260
Suze: been more wrong if I tried.

203
00:14:19,169 --> 00:14:21,690
Suze: So, the correct answer

204
00:14:22,630 --> 00:14:25,820
Suze: is, and I want you now to take out your

205
00:14:25,830 --> 00:14:31,679
Suze: Suze notebooks because it's very easy to get confused about this.

206
00:14:31,890 --> 00:14:37,119
Suze: But this is the correct answer... this. I can promise

207
00:14:37,130 --> 00:14:37,719
Suze: you now,

208
00:14:38,510 --> 00:14:42,789
Suze: If you want to collect social security at 62

209
00:14:43,659 --> 00:14:46,909
Suze: right? What will happen is this:

210
00:14:47,609 --> 00:14:52,880
Suze: the Social Security Administration will look at what your benefit

211
00:14:52,890 --> 00:14:59,280
Suze: would be at 62 based on your own work record.

212
00:14:59,289 --> 00:15:01,169
Suze: And they will figure that out,

213
00:15:01,929 --> 00:15:04,880
Suze: then they will compare that

214
00:15:05,619 --> 00:15:10,559
Suze: to what your ex spouse's benefit would be based on

215
00:15:10,570 --> 00:15:13,989
Suze: their work record. Ok.

216
00:15:14,989 --> 00:15:18,929
Suze: And they will look at that and then starting at

217
00:15:18,940 --> 00:15:21,080
Suze: the age of 62

218
00:15:21,809 --> 00:15:25,549
Suze: you would receive the higher of the two.

219
00:15:26,289 --> 00:15:30,849
Suze: Now, what this means is, if you took it at

220
00:15:30,859 --> 00:15:31,989
Suze: 62

221
00:15:32,760 --> 00:15:38,909
Suze: you would still get a 30% reduction. So let me

222
00:15:38,919 --> 00:15:43,770
Suze: give you numbers here. And if you write these numbers down,

223
00:15:43,799 --> 00:15:49,280
Suze: then you'll never get confused. Like I did the other day,

224
00:15:49,340 --> 00:15:52,859
Suze: it happens people. But you know, do you remember that

225
00:15:52,869 --> 00:15:57,510
Suze: one podcast that I gave maybe two years ago where

226
00:15:57,549 --> 00:16:01,190
Suze: I told you the greatest words in life

227
00:16:01,770 --> 00:16:05,710
Suze: and I said the six greatest words in life are

228
00:16:05,820 --> 00:16:08,859
Suze: I admit that I was wrong.

229
00:16:09,780 --> 00:16:13,109
Suze: So on some level, it felt good to admit it

230
00:16:13,119 --> 00:16:16,030
Suze: and that's what it is. But anyway, here we go.

231
00:16:16,859 --> 00:16:19,590
Suze: Let's say you are 62.

232
00:16:20,500 --> 00:16:22,859
Suze: And at 67

233
00:16:23,570 --> 00:16:28,869
Suze: your primary insurance amount, that is referred to as your

234
00:16:28,880 --> 00:16:36,059
Suze: P I A, would be $1200 a month. Now

235
00:16:36,739 --> 00:16:42,849
Suze: your primary insurance amount is figured at what your social

236
00:16:42,859 --> 00:16:48,710
Suze: security would be at your full retirement age.

237
00:16:49,469 --> 00:16:57,479
Suze: And remember now, everybody born 1960 or after, their full

238
00:16:57,489 --> 00:17:01,559
Suze: retirement age would be 67.

239
00:17:02,280 --> 00:17:05,250
Suze: So let's go back to this example.

240
00:17:06,069 --> 00:17:10,520
Suze: So here you are, you are 62 years of age.

241
00:17:11,180 --> 00:17:14,829
Suze: Your full retirement age is 67.

242
00:17:15,569 --> 00:17:20,939
Suze: But if you took your P I A at 62

243
00:17:20,949 --> 00:17:28,300
Suze: rather than 67 you would get a 30% reduction.

244
00:17:29,420 --> 00:17:33,699
Suze: So if your P I A, your primary insurance amount

245
00:17:33,869 --> 00:17:37,829
Suze: is $1200 which is what you would get at the

246
00:17:37,839 --> 00:17:44,630
Suze: age of 67 and you take it at 62. There is

247
00:17:44,640 --> 00:17:47,229
Suze: a 30% reduction

248
00:17:47,869 --> 00:17:58,959
Suze: or $360 a month. 30% of $1200 is $360. Or

249
00:17:58,969 --> 00:18:05,119
Suze: your social security would be $840 a month.

250
00:18:06,329 --> 00:18:12,780
Suze: Then what would happen is, the Social Security Administration would

251
00:18:12,790 --> 00:18:17,989
Suze: then calculate as I said, what your ex spouse's P

252
00:18:18,000 --> 00:18:22,849
Suze: I A would be at his full retirement age or

253
00:18:22,859 --> 00:18:25,379
Suze: they refer to it as F R A...

254
00:18:26,119 --> 00:18:32,050
Suze: and let's just say that would be $3000 a month.

255
00:18:32,979 --> 00:18:37,510
Suze: Then what they would do is they would calculate what

256
00:18:37,520 --> 00:18:41,770
Suze: you would get if you took the spousal benefit now,

257
00:18:42,459 --> 00:18:48,560
Suze: and with that 30% reduction, what that would mean is

258
00:18:48,699 --> 00:18:56,379
Suze: you would only get $1050 a month. So rather than

259
00:18:56,390 --> 00:19:03,430
Suze: taking $840 a month, if you took your own social security,

260
00:19:04,089 --> 00:19:08,209
Suze: you would get $1050 a month

261
00:19:09,020 --> 00:19:13,968
Suze: if you took your ex spouse's social security or your

262
00:19:13,979 --> 00:19:15,530
Suze: spousal benefit.

263
00:19:16,449 --> 00:19:19,619
Suze: So they would automatically give you

264
00:19:21,290 --> 00:19:24,139
Suze: $1050 a month forever.

265
00:19:24,910 --> 00:19:25,599
Suze: Now,

266
00:19:26,430 --> 00:19:30,489
Suze: let's just figure this out. So you understand it. And

267
00:19:30,500 --> 00:19:35,959
Suze: how did I get that $1050 a month? Remember

268
00:19:36,790 --> 00:19:43,410
Suze: if your ex spouse was getting $3000 a month as

269
00:19:43,420 --> 00:19:46,510
Suze: his P I A or would get that as his

270
00:19:46,520 --> 00:19:48,160
Suze: full retirement age,

271
00:19:49,780 --> 00:19:57,020
Suze: you are entitled for a spousal benefit of 50% of

272
00:19:57,030 --> 00:20:01,520
Suze: that ex spouse's P I A. Got that

273
00:20:02,609 --> 00:20:09,300
Suze: If your ex spouse's P I A is $3000 a month,

274
00:20:09,790 --> 00:20:16,560
Suze: you are entitled at your full retirement age of 67... 50%

275
00:20:16,569 --> 00:20:21,459
Suze: of that amount of money or $1500 a month.

276
00:20:22,819 --> 00:20:27,510
Suze: So, how did I get that $1050 figure?

277
00:20:28,219 --> 00:20:33,479
Suze: Well, if at 67 you are entitled to a full 50%

278
00:20:33,489 --> 00:20:38,569
Suze: of his P I A or 50% of $3000 which

279
00:20:38,579 --> 00:20:43,750
Suze: is $1500. 30 percent reduction

280
00:20:44,489 --> 00:20:47,430
Suze: because you now want to take it at 62

281
00:20:48,209 --> 00:20:58,239
Suze: is 30% of $1500 is $450 or $1050 a month.

282
00:20:58,939 --> 00:21:03,369
Suze: And that is how much you get. So it does

283
00:21:03,380 --> 00:21:08,629
Suze: not work where you get to take your Social Security

284
00:21:08,640 --> 00:21:13,379
Suze: at 62 then you switch over to a spousal benefit

285
00:21:13,390 --> 00:21:15,229
Suze: at 67. No,

286
00:21:15,750 --> 00:21:22,439
Suze: the Social Security administration figures out right then and there

287
00:21:22,449 --> 00:21:27,099
Suze: when you want to take a benefit, which benefit would

288
00:21:27,109 --> 00:21:32,760
Suze: be higher yours or the spousal benefit. And that is

289
00:21:32,770 --> 00:21:35,280
Suze: the one that they give you.

290
00:21:36,079 --> 00:21:40,589
Suze: Here's one of the big mistakes that many of you

291
00:21:40,599 --> 00:21:45,030
Suze: make when you go and you figure out the future

292
00:21:45,040 --> 00:21:47,369
Suze: income that you can count on.

293
00:21:48,459 --> 00:21:55,089
Suze: Now, you have to know that you do not get 50%

294
00:21:55,640 --> 00:21:58,949
Suze: of what your spouse, whether it's an ex spouse or

295
00:21:58,959 --> 00:22:04,829
Suze: your current spouse, of what your spouse gets at 70

296
00:22:05,420 --> 00:22:11,469
Suze: you get 50% of what his P I A would

297
00:22:11,479 --> 00:22:16,750
Suze: have been at his full retirement age. If you wait

298
00:22:16,760 --> 00:22:22,510
Suze: to take it till your full retirement age, did you

299
00:22:22,520 --> 00:22:23,290
Suze: get that?

300
00:22:24,069 --> 00:22:27,959
Suze: So the big mistake again, that many of you make

301
00:22:27,969 --> 00:22:29,760
Suze: is in this example,

302
00:22:30,680 --> 00:22:37,099
Suze: if your ex spouse waited to take their social security

303
00:22:37,109 --> 00:22:41,079
Suze: till 70 and let's say your ex spouse or your

304
00:22:41,089 --> 00:22:47,969
Suze: current spouse is now getting $4000 a month

305
00:22:48,989 --> 00:22:53,819
Suze: in your head. You think that if you wait till

306
00:22:53,829 --> 00:22:58,569
Suze: your full retirement age? So in this example, if this

307
00:22:58,579 --> 00:23:00,938
Suze: woman waited till she was 67

308
00:23:01,849 --> 00:23:07,209
Suze: you think that you will get 50% of what your

309
00:23:07,219 --> 00:23:12,900
Suze: spouse or ex spouse is currently getting or $2000 a

310
00:23:12,910 --> 00:23:17,448
Suze: month in this example? And that is wrong.

311
00:23:18,170 --> 00:23:20,290
Suze: You would only get

312
00:23:21,369 --> 00:23:24,810
Suze: if you were at your full retirement age when you

313
00:23:24,819 --> 00:23:30,859
Suze: applied for it, 50% of what your spouse or ex

314
00:23:30,869 --> 00:23:33,500
Suze: spouse would have gotten

315
00:23:34,339 --> 00:23:40,969
Suze: as their primary insurance amount at their full retirement age.

316
00:23:40,979 --> 00:23:43,150
Suze: So in this case, again,

317
00:23:43,829 --> 00:23:47,489
Suze: this person would have gotten $3000

318
00:23:48,569 --> 00:23:52,140
Suze: at let's just say 66 or whatever it was, which

319
00:23:52,150 --> 00:23:54,339
Suze: was their full retirement age

320
00:23:55,199 --> 00:23:59,530
Suze: even though they're getting $4000 now at 70 because they

321
00:23:59,540 --> 00:24:00,250
Suze: waited

322
00:24:00,920 --> 00:24:05,849
Suze: because they were only entitled to $3000

323
00:24:07,060 --> 00:24:13,420
Suze: at their full retirement age. You would only get 50%

324
00:24:14,359 --> 00:24:20,530
Suze: of the $3000 at your full retirement age or

325
00:24:21,290 --> 00:24:26,160
Suze: whatever reduction you would take from that money if you

326
00:24:26,170 --> 00:24:31,300
Suze: took it before your full retirement age. So don't make

327
00:24:31,310 --> 00:24:33,540
Suze: the mistake thinking. Oh,

328
00:24:34,229 --> 00:24:39,119
Suze: you know, I'm gonna get 50% of what my spouse gets.

329
00:24:39,250 --> 00:24:42,438
Suze: If I just wait till my full retirement age, it

330
00:24:42,449 --> 00:24:48,040
Suze: does not work that way. You do get however

331
00:24:49,319 --> 00:24:55,050
Suze: 100% of what your spouse gets if your spouse happens

332
00:24:55,060 --> 00:25:01,219
Suze: to die. So if your spouse is getting $4000 a

333
00:25:01,229 --> 00:25:02,969
Suze: month right now

334
00:25:04,000 --> 00:25:08,810
Suze: and your spouse dies, and let's just say your full

335
00:25:08,819 --> 00:25:15,270
Suze: retirement age, whatever it may be or older, you get 100%

336
00:25:15,280 --> 00:25:18,609
Suze: of that amount of money. If that amount of money

337
00:25:18,619 --> 00:25:23,369
Suze: is more than what you would be getting on your own.

338
00:25:23,989 --> 00:25:28,420
Suze: So just remember that what I just said now is

339
00:25:28,430 --> 00:25:33,810
Suze: the absolute correct way it works. My apologies for that.

340
00:25:34,359 --> 00:25:38,920
Suze: Just a few things for you to understand, to qualify

341
00:25:38,930 --> 00:25:43,379
Suze: for spousal benefits. If you are divorced,

342
00:25:44,189 --> 00:25:50,000
Suze: you have to be 62 years of age or older.

343
00:25:50,630 --> 00:25:55,239
Suze: You have to have been married for at least 10 years.

344
00:25:55,750 --> 00:26:01,109
Suze: Your ex has to have qualified for social security, whether

345
00:26:01,119 --> 00:26:03,839
Suze: they've taken it or not does not matter

346
00:26:04,530 --> 00:26:10,089
Suze: and you have to not be remarried at the time

347
00:26:10,119 --> 00:26:13,089
Suze: that you want that you apply.

348
00:26:13,780 --> 00:26:19,510
Suze: So that doesn't mean that here you are, maybe you're younger,

349
00:26:19,589 --> 00:26:23,329
Suze: you were in your twenties. And maybe you got married

350
00:26:23,339 --> 00:26:26,219
Suze: and you were married for 10 years and then your

351
00:26:26,229 --> 00:26:30,290
Suze: ex went on and was incredibly successful and maybe you

352
00:26:30,300 --> 00:26:35,140
Suze: weren't as successful and then you got remarried to somebody

353
00:26:35,569 --> 00:26:37,909
Suze: and you were married for a while.

354
00:26:38,430 --> 00:26:46,379
Suze: But if you are divorced or your spouse died before

355
00:26:47,099 --> 00:26:51,599
Suze: you then apply for spousal benefits. So let's say they,

356
00:26:51,609 --> 00:26:54,979
Suze: you got divorced or your spouse died at the age

357
00:26:54,989 --> 00:26:58,520
Suze: of when you were 60 then guess what? You can

358
00:26:58,530 --> 00:27:03,579
Suze: qualify for spousal benefits based

359
00:27:03,800 --> 00:27:11,109
Suze: on your first spouse's record. Just remember that also. Just remember,

360
00:27:11,119 --> 00:27:15,010
Suze: and you should all look into this even if it's

361
00:27:15,020 --> 00:27:16,659
Suze: your ex spouse

362
00:27:17,959 --> 00:27:22,339
Suze: and you're at least 60 years of age or older,

363
00:27:22,349 --> 00:27:25,359
Suze: 50 if you're disabled and other things that are out

364
00:27:25,369 --> 00:27:30,209
Suze: there or maybe you did get remarried after the age

365
00:27:30,219 --> 00:27:31,489
Suze: of 60

366
00:27:32,170 --> 00:27:37,419
Suze: then what's interesting is that if your ex spouse happens

367
00:27:37,430 --> 00:27:43,939
Suze: to die, you then very well could qualify for survivor

368
00:27:43,949 --> 00:27:50,160
Suze: benefits at that point in time. So that's just something

369
00:27:50,250 --> 00:27:53,500
Suze: that you all should look into.

370
00:27:54,510 --> 00:28:00,349
Suze: Ok. That's a brief Suze School today. But a very,

371
00:28:00,359 --> 00:28:06,228
Suze: very important one. As time goes on because this elicited

372
00:28:06,239 --> 00:28:11,180
Suze: a whole lot of questions about social security KT will

373
00:28:11,189 --> 00:28:16,670
Suze: be adding them to the Ask KT and Suze Anything podcasts.

374
00:28:16,869 --> 00:28:22,920
Suze: But until Thursday, when Miss Travis will join us again,

375
00:28:24,119 --> 00:28:26,849
Suze: there's only one thing that I want you to remember

376
00:28:26,859 --> 00:28:32,810
Suze: to say every single day and it is as follows today,

377
00:28:32,819 --> 00:28:38,250
Suze: wherever I go, I will create a more peaceful,

378
00:28:39,270 --> 00:28:44,400
Suze: joyful and loving world. And if you do that,

379
00:28:45,030 --> 00:28:50,319
Suze: I promise you you will be unstoppable.

380
00:28:51,069 --> 00:28:51,310
Music: (Music Out)