1 00:00:46,360 --> 00:00:49,220 Suze: KT, what's the date? What's the date of the year? 2 00:00:49,229 --> 00:00:53,169 KT: Good morning, everybody. It is August 22nd, 2020. 3 00:00:53,830 --> 00:00:54,270 Suze: Ding, ding, ding. 4 00:00:55,310 --> 00:00:58,419 KT: So Suze, do I sound tired? Everyone, Suze looked at 5 00:00:58,430 --> 00:01:01,159 KT: me and said you already look worn out and tired, 6 00:01:01,169 --> 00:01:04,889 KT: KT and it's not even the sun's not even wait. 7 00:01:04,900 --> 00:01:08,160 KT: Let me tell you why. So some 8 00:01:08,370 --> 00:01:11,970 KT: one that sleeps in the same bed as I do. 9 00:01:11,980 --> 00:01:15,029 Suze: Who is that? Who is sleeping in your bed? 10 00:01:16,000 --> 00:01:22,000 KT: Listens to MSNBC all night long in her earphones or 11 00:01:22,010 --> 00:01:24,669 KT: an ear or whatever you do and guess what it 12 00:01:24,680 --> 00:01:26,629 KT: kind of penetrates through the mattress. 13 00:01:27,190 --> 00:01:31,389 Suze: I wait, wait, wait. Do you know what I do, KT? 14 00:01:32,029 --> 00:01:32,550 Suze: I don't, 15 00:01:32,629 --> 00:01:37,360 Suze: I don't use earphones in my ear because it's not healthy. 16 00:01:37,430 --> 00:01:40,970 Suze: And number two. So what I do is because, well, 17 00:01:40,980 --> 00:01:43,970 Suze: you're a little hard of hearing. It's not a secret, right? 18 00:01:44,129 --> 00:01:45,089 KT: I can't hear. 19 00:01:45,319 --> 00:01:48,120 KT: She can't hear anything. So what, which is a good 20 00:01:48,129 --> 00:01:51,330 KT: thing sometimes if you live in this household. 21 00:01:51,339 --> 00:01:56,150 Suze: So, but I know I call her and I go KT. KT. Nothing, 22 00:01:56,470 --> 00:01:56,930 Suze: nothing 23 00:01:57,220 --> 00:01:57,580 KT: I do hear her. 24 00:01:59,750 --> 00:02:03,629 Suze: I know. It drives me crazy. But anyway, so I turn on my 25 00:02:03,639 --> 00:02:07,910 Suze: little iphone. The actual volume to only the second up 26 00:02:07,919 --> 00:02:08,198 Suze: from that 27 00:02:09,169 --> 00:02:10,360 KT: It's under your pillow... 28 00:02:10,559 --> 00:02:12,539 Suze: Because I think if it's under my pillow, you won't 29 00:02:12,550 --> 00:02:12,910 Suze: hear it. 30 00:02:12,919 --> 00:02:17,509 KT: I hear it right through the mattress. I hear little 31 00:02:17,520 --> 00:02:20,750 KT: murmurs and I wonder what are they saying? 32 00:02:21,389 --> 00:02:24,369 KT: Keeps me awake. It also wakes me up. 33 00:02:24,380 --> 00:02:30,110 Suze: It's not just MSNBC, it's Bloomberg, it's CNBC. It's important. 34 00:02:30,119 --> 00:02:34,388 Suze: KT that I know everything that's happening in the economy 35 00:02:34,559 --> 00:02:37,690 Suze: to know it. 24 7. Yeah. But during the day 36 00:02:37,699 --> 00:02:40,559 Suze: it's difficult because you want to go swimming, you want 37 00:02:40,570 --> 00:02:43,259 Suze: to go in the ocean, you wanna go fishing, you wanna... 38 00:02:43,270 --> 00:02:45,649 KT: Did you tell everyone, we caught two mackerel 39 00:02:46,110 --> 00:02:49,929 KT: the other day. It was great. We went, we went 40 00:02:49,940 --> 00:02:52,239 KT: out on the boat by herself. It was fabulous 41 00:02:52,250 --> 00:02:55,500 Suze: Because Colo when we went out happened to be in 42 00:02:55,508 --> 00:02:58,740 Suze: Columbia on vacation. 43 00:02:58,750 --> 00:03:01,300 KT: I said, let's surprise him. He's gonna be coming home 44 00:03:01,309 --> 00:03:04,380 KT: any day. Now, let's go out and see what we 45 00:03:04,389 --> 00:03:07,289 KT: can do on our own. And we caught two nice mackerel. 46 00:03:07,538 --> 00:03:09,660 Suze: But it was an interesting thing. You know, I have 47 00:03:09,669 --> 00:03:11,739 Suze: to just a little banter for just a little bit 48 00:03:11,750 --> 00:03:14,619 Suze: here because I love it so much, which is not 49 00:03:14,630 --> 00:03:15,869 Suze: like I talked to KT all day. 50 00:03:15,899 --> 00:03:19,559 KT: I have a lot of questions. Don't banter for long, 51 00:03:19,570 --> 00:03:23,279 Suze: But here's something that's important for years when KT and 52 00:03:23,288 --> 00:03:27,000 Suze: I first moved to the island, it was just Katie 53 00:03:27,008 --> 00:03:30,750 Suze: and me taking the boat out, cleaning the boat, 54 00:03:31,429 --> 00:03:34,679 KT: Taking the boat out, catching a lot of fish, 55 00:03:35,134 --> 00:03:40,315 KT: bringing them, putting them on ice, cleaning the boat, fileting 56 00:03:40,324 --> 00:03:41,175 KT: the fish. 57 00:03:41,184 --> 00:03:45,065 Suze: Then cryo- vacuum them, eating the fish. Sometimes not eating 58 00:03:45,074 --> 00:03:48,074 Suze: dinner till 10 o'clock at night. When we would finish 59 00:03:48,085 --> 00:03:52,455 Suze: all that, it was fabulous. And then Colo came into 60 00:03:52,464 --> 00:03:54,955 Suze: our lives and we taught him how to fish and 61 00:03:54,964 --> 00:03:56,735 Suze: we taught him how to be a captain of the 62 00:03:56,744 --> 00:04:01,375 Suze: boat and fish and everything. And then he took that 63 00:04:01,384 --> 00:04:02,085 Suze: over 64 00:04:02,710 --> 00:04:07,360 Suze: and then it's been years really since on our own, 65 00:04:07,369 --> 00:04:10,449 Suze: KT and I took out the boat. 66 00:04:10,460 --> 00:04:13,089 KT: Wait, we, we almost took out the dock with it 67 00:04:13,100 --> 00:04:17,420 KT: the other day. So, so I'm the first mate, Suze's 68 00:04:17,428 --> 00:04:21,010 KT: the captain. There's many, many lines which are ropes all 69 00:04:21,019 --> 00:04:24,250 KT: over the dock, the boat and you have to make 70 00:04:24,260 --> 00:04:28,329 KT: sure that everything is free and clear. So the captain 71 00:04:28,339 --> 00:04:30,450 KT: who never leaves the captain's seat. 72 00:04:30,459 --> 00:04:32,099 Suze: Well, there's many things you have to do. You have 73 00:04:32,109 --> 00:04:32,209 Suze: to 74 00:04:32,559 --> 00:04:36,320 Suze: the boat, the temperatures, right? All the things I did. 75 00:04:36,329 --> 00:04:40,029 KT: I forgot to take one spring line, the spring line 76 00:04:40,220 --> 00:04:43,630 KT: is attached to the middle of the boat cleat and 77 00:04:43,640 --> 00:04:47,269 KT: the dock and as we're leaving, she says, ok, go, 78 00:04:47,350 --> 00:04:50,058 KT: I said, free and clear Suze, you're good to go. 79 00:04:50,070 --> 00:04:52,678 KT: And I pushed the boat off the dock and all 80 00:04:52,690 --> 00:04:56,619 KT: of a sudden I see one spring line. I said, wait, stop. 81 00:04:56,690 --> 00:04:59,739 KT: And the boat kind of comes to this full, like 82 00:04:59,750 --> 00:05:01,929 KT: a bungee cord, pulling it back. 83 00:05:02,250 --> 00:05:04,969 KT: And I, I thank God if she put any power 84 00:05:04,980 --> 00:05:08,959 KT: on that boat, we would have taken the dock with us. 85 00:05:09,369 --> 00:05:11,029 KT: That's enough bantering. 86 00:05:11,079 --> 00:05:13,670 Suze: But the point of why I was telling you all 87 00:05:13,678 --> 00:05:17,488 Suze: of this is that when you've done something and then 88 00:05:17,500 --> 00:05:21,510 Suze: you don't do it for a while. You literally forget 89 00:05:21,519 --> 00:05:22,979 Suze: how to do something, 90 00:05:23,309 --> 00:05:27,890 Suze: especially something that maybe you really loved. So therefore, I 91 00:05:27,899 --> 00:05:31,630 Suze: think it's important that KT and I continue to do 92 00:05:31,640 --> 00:05:34,410 Suze: that on our own or even if we're with Colo. 93 00:05:34,420 --> 00:05:35,450 KT: We had a good time. 94 00:05:35,600 --> 00:05:37,539 Suze: Yeah. But just to let him sit there and for 95 00:05:37,549 --> 00:05:40,010 Suze: us to do it. So for those of you, if 96 00:05:40,019 --> 00:05:42,790 Suze: ever you're in a situation where somebody is doing something 97 00:05:42,799 --> 00:05:45,070 Suze: for you all the time that you used to do, 98 00:05:45,269 --> 00:05:47,850 Suze: you better start doing it again. All right. 99 00:05:47,899 --> 00:05:50,480 KT: Yeah. You get rusty. Wait, do you want to tell 100 00:05:50,488 --> 00:05:51,130 KT: everybody 101 00:05:51,459 --> 00:05:55,279 KT: that this is the women Money Skt and Susie? Anything 102 00:05:55,410 --> 00:05:56,678 KT: and how to send in a question? 103 00:05:56,690 --> 00:06:01,160 Suze: And how would they send in a question? KT tell him, girlfriend, 104 00:06:01,250 --> 00:06:06,190 Suze: send in an email to ask Suze - Suze podcast at 105 00:06:06,200 --> 00:06:10,880 Suze: gmail.com and if KT picks it, we will answer it 106 00:06:10,890 --> 00:06:16,239 Suze: on this podcast But right before we begin, I realized 107 00:06:16,250 --> 00:06:18,678 Suze: we've never told Colo who's back now 108 00:06:18,988 --> 00:06:20,829 Suze: that we almost took the doc out. 109 00:06:20,839 --> 00:06:21,890 KT: I'm not telling him. 110 00:06:21,899 --> 00:06:27,738 Suze: But he listens to the podcast. Oh, sorry, Colo. Sorry Colo. 111 00:06:28,070 --> 00:06:29,308 Suze: All right. Go on. 112 00:06:29,510 --> 00:06:32,890 KT: You better be the captain from now on. All right, 113 00:06:32,899 --> 00:06:36,390 KT: this is from Josephine. My first question. Hi, Suze. Thank 114 00:06:36,399 --> 00:06:40,079 KT: you for your time. My daughter just turned 18 years 115 00:06:40,089 --> 00:06:43,809 KT: old this month. She's not working and refused to go 116 00:06:43,820 --> 00:06:44,599 KT: to college. 117 00:06:45,040 --> 00:06:47,820 KT: She does not have debt and does not have any 118 00:06:47,829 --> 00:06:52,459 KT: credit cards. Yes. She knows that she got an inheritance 119 00:06:52,470 --> 00:06:57,519 KT: of $90,000 from her dad when he passed away six 120 00:06:57,529 --> 00:07:01,410 KT: years ago since my daughter was a minor at that time, 121 00:07:01,450 --> 00:07:03,899 KT: they could not give it to her. It was placed 122 00:07:03,910 --> 00:07:07,779 KT: in a surrogate court for six years. We just got 123 00:07:07,790 --> 00:07:09,200 KT: the money last week. 124 00:07:09,346 --> 00:07:11,466 Suze: Stop for one second there, KT, because I just want 125 00:07:11,476 --> 00:07:14,686 Suze: people to take note of what you just said that 126 00:07:14,696 --> 00:07:18,196 Suze: her daughter got $90,000. But because she was a minor, 127 00:07:18,205 --> 00:07:22,105 Suze: it was put into a surrogate account because minors can't 128 00:07:22,115 --> 00:07:25,376 Suze: inherit money. And that's what I've been trying to tell 129 00:07:25,385 --> 00:07:29,145 Suze: you for all these years. So sometimes a trust is 130 00:07:29,156 --> 00:07:30,925 Suze: a way to get around that. All right. Go on. 131 00:07:31,295 --> 00:07:33,526 KT: Ok. So mom wants to know 132 00:07:33,782 --> 00:07:37,381 KT: Suze. Should I put the money in a CD? Can 133 00:07:37,391 --> 00:07:41,481 KT: you advise me where I should invest my daughter's money? 134 00:07:41,682 --> 00:07:45,432 KT: My friend who is a trader is offering me to 135 00:07:45,441 --> 00:07:47,881 KT: invest in an insurance account. 136 00:07:47,921 --> 00:07:50,152 Suze: Of course they are. Anyway, go on KT. 137 00:07:50,582 --> 00:07:53,752 KT: Ok. So I don't think that's a friend if they 138 00:07:53,761 --> 00:07:57,191 KT: want you to invest your daughter's money in insurance. In 139 00:07:57,201 --> 00:07:57,872 KT: any event, 140 00:07:58,250 --> 00:08:01,549 KT: Josephine is 59 years old. She's a registered nurse. She 141 00:08:01,559 --> 00:08:04,829 KT: has no debt. Her house is fully paid and her 142 00:08:04,839 --> 00:08:08,309 KT: daughter lives with her. So she sounds like a very 143 00:08:08,320 --> 00:08:12,839 KT: responsible and caring mom. What do you recommend that Josephine 144 00:08:12,850 --> 00:08:14,799 KT: and her daughter do with the 90,000? 145 00:08:15,684 --> 00:08:19,584 Suze: Well, your key was what you just said, you just said, 146 00:08:19,595 --> 00:08:24,934 Suze: what should Josephine and her daughter do? Right? So even 147 00:08:24,945 --> 00:08:29,154 Suze: though her daughter is only 18 years of age this month, 148 00:08:29,165 --> 00:08:34,515 Suze: happy birthday, Josephine's daughter, right? She's not working and refuses 149 00:08:34,525 --> 00:08:35,905 Suze: to go to college. 150 00:08:36,609 --> 00:08:40,549 Suze: So this is her money, it's going to be put 151 00:08:40,559 --> 00:08:46,448 Suze: into her name now. So the question becomes what's going 152 00:08:46,458 --> 00:08:50,948 Suze: to stop her from taking out this money to just 153 00:08:50,958 --> 00:08:51,989 Suze: live on? 154 00:08:52,739 --> 00:08:57,280 Suze: So that's dangerous my dear because she doesn't work and 155 00:08:57,289 --> 00:08:59,739 Suze: doesn't want credit cards and all of that and doesn't 156 00:08:59,750 --> 00:09:02,228 Suze: want to go to college. So we need to address 157 00:09:02,239 --> 00:09:05,839 Suze: that in a second here. Very first thing, however, is 158 00:09:05,849 --> 00:09:10,039 Suze: she doesn't have any credit cards. So as somebody starts 159 00:09:10,049 --> 00:09:15,280 Suze: to become an adult, they absolutely need a credit score 160 00:09:15,289 --> 00:09:17,559 Suze: because without that, she's not gonna be able to do 161 00:09:17,570 --> 00:09:19,909 Suze: mostly anything on her own. 162 00:09:20,159 --> 00:09:23,030 Suze: Therefore, the first thing you should do is if you 163 00:09:23,039 --> 00:09:27,330 Suze: have a good FICO score, which is really anything at 164 00:09:27,340 --> 00:09:32,250 Suze: 760 or above, then what would be important for you 165 00:09:32,260 --> 00:09:36,150 Suze: is to add her name to all of your credit 166 00:09:36,159 --> 00:09:41,669 Suze: cards as an authorized user, then your FICO score will 167 00:09:41,679 --> 00:09:45,260 Suze: become her FICO score. But don't tell her you did 168 00:09:45,270 --> 00:09:46,400 Suze: that number one 169 00:09:46,609 --> 00:09:50,299 Suze: and number two, don't give her any of your credit cards. 170 00:09:50,309 --> 00:09:56,020 Suze: She doesn't need them. She just needs your FICO score. Next. 171 00:09:56,030 --> 00:10:01,049 Suze: Should you put this money in a CD? It depends. 172 00:10:01,210 --> 00:10:04,809 Suze: How is she going to pay bills? I get that. 173 00:10:04,820 --> 00:10:08,109 Suze: She's living at the house, but we don't want her 174 00:10:08,119 --> 00:10:10,700 Suze: to think just because she has all this money now 175 00:10:11,190 --> 00:10:15,679 Suze: that she can just live there rent free. She doesn't 176 00:10:15,690 --> 00:10:17,909 Suze: have to work if she's not going to school, what 177 00:10:17,919 --> 00:10:21,000 Suze: is she going to do? So, what I would love 178 00:10:21,010 --> 00:10:24,210 Suze: to see her be able to do is to get 179 00:10:24,219 --> 00:10:29,260 Suze: a job that pays her at least $7000 a year. 180 00:10:29,859 --> 00:10:34,030 Suze: And then we would put that $7000 a year into 181 00:10:34,039 --> 00:10:37,020 Suze: a Roth IRA in her name. 182 00:10:37,659 --> 00:10:41,559 Suze: And then we would invest it and we'll just see 183 00:10:41,570 --> 00:10:43,669 Suze: if you do that and what the markets do, you 184 00:10:43,679 --> 00:10:45,900 Suze: can buy an index fund. There's all kinds of things, 185 00:10:45,909 --> 00:10:48,599 Suze: but I'll be telling you as time goes on more 186 00:10:48,609 --> 00:10:52,080 Suze: things to do with money. But that's one thing the 187 00:10:52,090 --> 00:10:55,640 Suze: other thing I would do then at this point until 188 00:10:55,650 --> 00:10:58,859 Suze: we know what she's going to do. I wouldn't necessarily 189 00:10:58,869 --> 00:11:01,909 Suze: lock all of it up in a CD. 190 00:11:02,260 --> 00:11:05,650 Suze: Maybe I would take after the $7000 but she has 191 00:11:05,659 --> 00:11:08,909 Suze: to earn money. Remember, so she needs that job. Maybe 192 00:11:08,919 --> 00:11:15,789 Suze: I would take half of it like $45,000 and lock 193 00:11:15,799 --> 00:11:20,489 Suze: it up in a 12 month or 18 month CD 194 00:11:20,729 --> 00:11:26,020 Suze: at Alliant Credit Union. That's my alliant.com. And therefore you 195 00:11:26,030 --> 00:11:28,900 Suze: would lock in today's interest rates, which are great there, 196 00:11:28,919 --> 00:11:30,380 Suze: go there and you'll see 197 00:11:30,940 --> 00:11:34,130 Suze: so that she can't get it. And then you would 198 00:11:34,140 --> 00:11:37,479 Suze: have essentially $35,000 199 00:11:38,159 --> 00:11:40,978 Suze: that, you know, just, you have to put it in 200 00:11:40,989 --> 00:11:45,090 Suze: a money market account probably at Fidelity or Schwab in 201 00:11:45,099 --> 00:11:47,349 Suze: case she wants some of that money or wants to 202 00:11:47,359 --> 00:11:50,909 Suze: use it to maybe buy a car or something like that. 203 00:11:51,289 --> 00:11:54,469 Suze: But you have to sit down with her and talk 204 00:11:54,479 --> 00:11:57,469 Suze: to her about it, make these decisions with her since 205 00:11:57,479 --> 00:12:01,630 Suze: she knows she got it, you just can't make the 206 00:12:01,640 --> 00:12:03,030 Suze: decisions for her. 207 00:12:03,330 --> 00:12:06,570 KT: Yeah, I think the first step here is to get 208 00:12:06,710 --> 00:12:11,229 KT: the daughter on board with wanting to save and secure 209 00:12:11,239 --> 00:12:15,419 KT: that money. That's the first step is like make her 210 00:12:15,429 --> 00:12:19,289 KT: really want to have a little stock portfolio or a 211 00:12:19,299 --> 00:12:24,119 KT: CD or investments. She needs to want that. She has 212 00:12:24,179 --> 00:12:24,929 KT: to understand. 213 00:12:24,940 --> 00:12:28,710 Suze: So what has to happen, KT is Josephine needs to 214 00:12:28,719 --> 00:12:30,489 Suze: show her daughter 215 00:12:30,809 --> 00:12:34,539 Suze: how much $7000 a year would be in a Roth 216 00:12:34,549 --> 00:12:37,299 Suze: IRA if she were able to do that, probably it 217 00:12:37,309 --> 00:12:40,880 Suze: would be more over all the years. But anyway, 7000 218 00:12:40,890 --> 00:12:44,400 Suze: a year starting at 18 till she's 65 is 47 219 00:12:44,409 --> 00:12:49,270 Suze: years at 10 or 12% annual average rate of return, 220 00:12:49,280 --> 00:12:53,880 Suze: which is absolutely possible. The 12% annual average rate over 221 00:12:53,890 --> 00:12:57,669 Suze: 47 years, just give a guess KT, what she would have. 222 00:12:58,010 --> 00:12:58,750 KT: Oh, 223 00:12:59,390 --> 00:13:03,939 Suze: how much? A year? 7000 and over, well, over a 224 00:13:03,950 --> 00:13:05,210 Suze: million dollars, 225 00:13:05,609 --> 00:13:11,489 KT: She'd have $13 million. You know, even at large, 226 00:13:11,599 --> 00:13:15,689 KT: That's, that's almost, um, for an 18 year old. That's 227 00:13:15,700 --> 00:13:18,000 KT: almost too abstract to understand 228 00:13:18,049 --> 00:13:21,839 Suze: At a 10% annual average rate tell her. It's 6 million, 229 00:13:22,270 --> 00:13:24,239 Suze: but it's still a lot of 230 00:13:24,340 --> 00:13:28,039 Suze: money. So we have to get her head into the 231 00:13:28,049 --> 00:13:34,059 Suze: money game at 18 years of age. So you will 232 00:13:34,070 --> 00:13:37,159 Suze: start doing that with her by, she gets to pick 233 00:13:37,169 --> 00:13:40,369 Suze: the stock, she gets involved with that to see how 234 00:13:40,380 --> 00:13:43,978 Suze: it works. And remember you're gonna be dollar cost averaging. 235 00:13:43,989 --> 00:13:45,059 Suze: All right, KT. 236 00:13:45,260 --> 00:13:46,109 KT: Ok. 237 00:13:46,890 --> 00:13:51,900 KT: Next questions from Kim. Hi, Suze. I will be 54. 238 00:13:52,030 --> 00:13:55,150 KT: I am divorced and made a career change two years 239 00:13:55,159 --> 00:13:59,030 KT: ago that doubled my income. I've been able to save 240 00:13:59,039 --> 00:14:02,469 KT: $12,000 in that time. That's, that's great. 241 00:14:03,369 --> 00:14:06,229 KT: Which is what, which is in my bank savings account. 242 00:14:06,239 --> 00:14:10,728 KT: And although this feels great, I have $0 in my 401k. 243 00:14:10,739 --> 00:14:13,900 KT: My company does not match nor do I have a 244 00:14:13,909 --> 00:14:20,030 KT: Roth Ira or any other investments or assets? So Kim 245 00:14:20,039 --> 00:14:22,229 KT: says I don't have credit card debt, but I owe 246 00:14:22,239 --> 00:14:25,830 KT: 4000 on my car. I want to create the most 247 00:14:25,840 --> 00:14:30,390 KT: security for my future, especially because of my age. 248 00:14:30,890 --> 00:14:34,710 KT: So what do you recommend? Where does she begin? Probably 249 00:14:34,719 --> 00:14:36,799 KT: with the 401k? Right. The Roth. 250 00:14:36,950 --> 00:14:42,510 Suze: No. So given the fact that your company does not 251 00:14:42,520 --> 00:14:45,190 Suze: match the 401k, I don't want you to put a 252 00:14:45,200 --> 00:14:49,679 Suze: penny in their 401k useless. Right. But I have a 253 00:14:49,690 --> 00:14:52,940 Suze: feeling you don't make that much money 254 00:14:53,289 --> 00:14:57,349 Suze: where you're over the modified adjusted gross income limit, which 255 00:14:57,359 --> 00:15:02,989 Suze: is $146,000 to max out a Roth IRA. So therefore, 256 00:15:03,960 --> 00:15:06,219 Suze: you know what I would do. Now, this is going 257 00:15:06,229 --> 00:15:09,739 Suze: to be interesting advice. So listen closely 258 00:15:10,380 --> 00:15:14,640 Suze: the $12,000 that you have in a bank savings account 259 00:15:14,780 --> 00:15:19,590 Suze: isn't really making much interest for you whatsoever. So, what 260 00:15:19,599 --> 00:15:22,119 Suze: I would be doing is I would be taking because 261 00:15:22,130 --> 00:15:24,859 Suze: now that you're over the age of 50 you could 262 00:15:24,869 --> 00:15:31,119 Suze: put $8000. Listen to me closely into a Roth IRA 263 00:15:31,130 --> 00:15:32,440 Suze: this year, 264 00:15:33,000 --> 00:15:41,039 Suze: I would take $8000 from the $12,000 that leaves you 265 00:15:41,049 --> 00:15:45,250 Suze: $4000 in there. Just listen closely and I would either 266 00:15:45,260 --> 00:15:51,179 Suze: at Schwab or Fidelity, put it into a Roth IRA. 267 00:15:51,190 --> 00:15:56,489 Suze: Within the Roth IRA. I would just put it in 268 00:15:56,500 --> 00:16:01,010 Suze: a money market account right now making about four, some 269 00:16:01,020 --> 00:16:02,690 Suze: odd percent interest 270 00:16:03,429 --> 00:16:07,590 Suze: and leave it there. So now money that's not making 271 00:16:07,599 --> 00:16:11,200 Suze: any interest is gonna be making tax free interest for you. 272 00:16:11,210 --> 00:16:15,549 Suze: But listen, if anything goes wrong and you need that money, 273 00:16:16,030 --> 00:16:19,049 Suze: you can take out any money that you originally put 274 00:16:19,059 --> 00:16:24,530 Suze: into the Roth without any taxes or penalties whatsoever. It's 275 00:16:24,539 --> 00:16:26,650 Suze: the interest that it's earning you can't touch. 276 00:16:27,210 --> 00:16:30,520 Suze: So, if you need it, it's still your emergency fund. 277 00:16:30,530 --> 00:16:33,260 Suze: But we've gotten it now into a Roth and we're 278 00:16:33,270 --> 00:16:38,330 Suze: starting to build up a Roth as time goes on. Next, 279 00:16:38,570 --> 00:16:43,669 Suze: the $4000 that you have left. I would then go 280 00:16:43,679 --> 00:16:49,190 Suze: to my alliant.com and I would open up an ultimate 281 00:16:49,200 --> 00:16:51,549 Suze: opportunity savings account 282 00:16:52,200 --> 00:16:57,409 Suze: and I would put $100 a month in every single month. 283 00:16:57,419 --> 00:17:00,580 Suze: It will be earning 3.10 percent interest again. If you 284 00:17:00,590 --> 00:17:02,799 Suze: need it, you can get it any time you want, 285 00:17:03,450 --> 00:17:06,839 Suze: but it will be earning 3.10 percent interest. But at 286 00:17:06,849 --> 00:17:13,579 Suze: the end of those 12 months, they will give you $100. Now, 287 00:17:13,589 --> 00:17:16,310 Suze: we're starting to work with your money so that it's 288 00:17:16,319 --> 00:17:20,150 Suze: making interest and growing for you and taking it 289 00:17:20,255 --> 00:17:24,313 Suze: advantage of a Roth because you can only contribute up 290 00:17:24,324 --> 00:17:26,875 Suze: to a max every year in a Roth. And if 291 00:17:26,885 --> 00:17:30,354 Suze: things continue to go better for you, then next year 292 00:17:30,364 --> 00:17:34,015 Suze: we can do it again. But you still have access 293 00:17:34,025 --> 00:17:38,584 Suze: to that money as an emergency fund. Now, you don't 294 00:17:38,594 --> 00:17:42,954 Suze: have any credit card debt, but you owe $4000 on 295 00:17:42,964 --> 00:17:43,795 Suze: your car. 296 00:17:44,260 --> 00:17:47,979 Suze: So any extra money that you have right now, I 297 00:17:47,989 --> 00:17:50,800 Suze: want you to pay off the debt as soon as 298 00:17:50,810 --> 00:17:54,839 Suze: you can on that car. Because if I can get 299 00:17:54,849 --> 00:17:58,800 Suze: your expenses down now, I have more money for you 300 00:17:58,810 --> 00:18:02,250 Suze: to save. Those would be the things that I would 301 00:18:02,260 --> 00:18:06,800 Suze: have you doing at this moment in time. But next, 302 00:18:06,810 --> 00:18:12,709 Suze: I have to tell you, I think you're doing just great. Oh, yeah. 303 00:18:12,719 --> 00:18:13,419 Suze: All right. 304 00:18:14,030 --> 00:18:17,160 KT: So here's the next question I was told that if 305 00:18:17,170 --> 00:18:19,660 KT: you take money out of the market for even a 306 00:18:19,670 --> 00:18:25,089 KT: short period, it can significantly impact your long term results. 307 00:18:25,099 --> 00:18:28,208 KT: For example, missing just the 10 best days in the 308 00:18:28,219 --> 00:18:33,089 KT: market over a 20 year period, they say can reduce 309 00:18:33,099 --> 00:18:37,550 KT: your overall returns. Is that true, Suze? I mean, is that, 310 00:18:37,560 --> 00:18:40,849 KT: so this question is wondering like, is it true 311 00:18:41,410 --> 00:18:44,859 KT: that if you miss market days you can ruin like 312 00:18:44,869 --> 00:18:46,109 KT: a huge return? 313 00:18:46,680 --> 00:18:51,380 Suze: It is true. It's true. But KT just handed me 314 00:18:51,390 --> 00:18:55,189 Suze: your email and it says, do you have numbers that 315 00:18:55,199 --> 00:18:59,399 Suze: support that they want an actual numbers. So I do 316 00:18:59,410 --> 00:19:02,869 Suze: have numbers. I hope I could remember these, right? But 317 00:19:02,880 --> 00:19:06,050 Suze: because I used to use this example just a little 318 00:19:06,060 --> 00:19:06,780 Suze: bit ago, 319 00:19:07,150 --> 00:19:11,280 Suze: um back in 2022. So I haven't done the numbers since, 320 00:19:11,459 --> 00:19:14,540 Suze: you know, the end of two years ago. A good memory. 321 00:19:14,550 --> 00:19:17,180 Suze: But I used to when I would give a talk 322 00:19:17,189 --> 00:19:20,800 Suze: or a webinar, I would say if you look at 323 00:19:20,810 --> 00:19:25,050 Suze: a 20 year period of time, KT and it was from, 324 00:19:25,060 --> 00:19:30,800 Suze: I think January 1st 2003 to December 31st 2022. 325 00:19:31,380 --> 00:19:36,619 Suze: And if you had just invested $10,000 in a standard 326 00:19:36,630 --> 00:19:43,520 Suze: and Poor's 500 index and remained fully invested over those years, 327 00:19:43,530 --> 00:19:50,159 Suze: your investment would have probably grown to about $65,000 and 328 00:19:50,170 --> 00:19:54,839 Suze: that's why investing is so important. However, if you missed 329 00:19:54,849 --> 00:19:59,879 Suze: out on just the 10 best days during that period, 330 00:20:00,439 --> 00:20:07,839 Suze: you would have only about $29,000. And the other thing was, 331 00:20:07,849 --> 00:20:10,739 Suze: but if you missed out on the 20 best days, 332 00:20:11,130 --> 00:20:16,729 Suze: you'd have only about $18,000. Unbelievable. So those are the 333 00:20:16,739 --> 00:20:20,159 Suze: things that people need to understand. You are far better 334 00:20:20,170 --> 00:20:23,379 Suze: off keeping your money in the market 335 00:20:23,939 --> 00:20:27,050 Suze: than taking it out to try to do something else 336 00:20:27,060 --> 00:20:30,760 Suze: with it or take a 401k loan. But I hope 337 00:20:30,770 --> 00:20:33,119 Suze: those numbers are correct. All right. 338 00:20:33,500 --> 00:20:36,810 KT: Ok. Here's another one that I didn't understand. I never 339 00:20:36,819 --> 00:20:40,409 KT: heard of this. Can you explain Suze? This is from Maria, 340 00:20:40,660 --> 00:20:44,879 KT: what is rebalancing and whether or not it's advisable for 341 00:20:44,910 --> 00:20:49,479 KT: a 401k plan to be rebalanced. And if so how often, 342 00:20:49,489 --> 00:20:50,630 KT: what does that mean? 343 00:20:50,969 --> 00:20:53,430 Suze: Balances and truthfully, 344 00:20:54,869 --> 00:20:57,189 Suze: I think it's what Warren Buffett just did with his 345 00:20:57,199 --> 00:21:01,329 Suze: Apple stock. It's funny everybody thought, oh, Warren Buffett, the 346 00:21:01,339 --> 00:21:05,689 Suze: great all time investor just got rid of half of 347 00:21:05,699 --> 00:21:09,689 Suze: his um holding in Apple. 348 00:21:10,079 --> 00:21:12,670 Suze: And everybody thought that meant, oh my God, he must 349 00:21:12,680 --> 00:21:15,198 Suze: not like Apple. Well, he still has 400 million shares 350 00:21:15,209 --> 00:21:18,550 Suze: of it and he got rid of it at $210 351 00:21:18,560 --> 00:21:22,780 Suze: a share. He got rid of it at $210 a share. 352 00:21:22,790 --> 00:21:26,219 Suze: And right after that, it zoomed right up. So anyway, 353 00:21:26,510 --> 00:21:32,339 Suze: he rebalanced his portfolio in my opinion because what happens, 354 00:21:32,349 --> 00:21:35,739 Suze: Maria is sometimes you have a position in a mutual 355 00:21:35,750 --> 00:21:37,250 Suze: fund or a stock 356 00:21:37,670 --> 00:21:43,170 Suze: and that mutual fund or stocks skyrockets on you. And 357 00:21:43,180 --> 00:21:46,968 Suze: all of a sudden you may find that you have 358 00:21:46,979 --> 00:21:52,040 Suze: 80 or 90% of your entire portfolio in one stock 359 00:21:52,050 --> 00:21:54,750 Suze: because of how much it went up. So then a 360 00:21:54,760 --> 00:21:57,890 Suze: lot of people think you need to rebalance because that's 361 00:21:57,900 --> 00:22:02,180 Suze: too much in one stock. So you're too heavy in 362 00:22:02,189 --> 00:22:03,550 Suze: just one end 363 00:22:04,219 --> 00:22:09,400 Suze: and therefore you reduce that exposure and then you take 364 00:22:09,410 --> 00:22:12,680 Suze: that money and you buy other things with it or 365 00:22:12,689 --> 00:22:15,800 Suze: invest more in what you already have. So you have 366 00:22:15,810 --> 00:22:22,520 Suze: more of a balanced portfolio. So sometimes is that advisable? Yeah, 367 00:22:22,530 --> 00:22:25,489 Suze: you bet it is because the last thing you want 368 00:22:25,500 --> 00:22:28,448 Suze: is to be really heavy somewhere and then all of 369 00:22:28,459 --> 00:22:31,599 Suze: a sudden it get obliterated, which is possible. 370 00:22:31,849 --> 00:22:35,670 Suze: So is it advisable? I think it's advisable to always 371 00:22:35,680 --> 00:22:39,089 Suze: take a look at what you're invested in and does 372 00:22:39,099 --> 00:22:42,989 Suze: it make sense for the period of the economy you're 373 00:22:43,000 --> 00:22:45,589 Suze: in at that moment in time? All right. 374 00:22:45,670 --> 00:22:47,550 KT: All right. Here's another one. 375 00:22:47,770 --> 00:22:51,949 KT: This is from Doctor D. I'm in my early sixties 376 00:22:51,959 --> 00:22:56,510 KT: with about 1.5 million in assets. Do you think putting 377 00:22:56,520 --> 00:23:02,310 KT: 250,000 in a taxable two year bond ladder is a 378 00:23:02,319 --> 00:23:05,180 KT: good idea. At this point, I'm taking a 379 00:23:05,829 --> 00:23:10,040 KT: sabbatical, so the taxable was recommended over tax free. 380 00:23:10,050 --> 00:23:16,829 Suze: D, I don't know truthfully why you, you have $1.5 381 00:23:16,839 --> 00:23:21,910 Suze: million in assets. You wanna put $250,000 on the advice 382 00:23:21,920 --> 00:23:26,569 Suze: of somebody to go into a two year bond ladder, 383 00:23:27,239 --> 00:23:31,229 Suze: but you're only taking a sabbatical, you're going to go 384 00:23:31,239 --> 00:23:32,739 Suze: back to work. 385 00:23:33,560 --> 00:23:38,859 Suze: So therefore why just a two year bond ladder? My 386 00:23:38,869 --> 00:23:43,020 Suze: problem with that is, is that, do you need the 387 00:23:43,030 --> 00:23:45,599 Suze: income from that bond ladder 388 00:23:46,319 --> 00:23:49,020 Suze: just to live on? Because the truth of the matter 389 00:23:49,030 --> 00:23:54,339 Suze: is $250,000 into a two year bond ladder might give 390 00:23:54,349 --> 00:24:00,300 Suze: you approximately $450 a month in income, right. That's taxable. 391 00:24:00,449 --> 00:24:01,260 Suze: But do you really 392 00:24:01,364 --> 00:24:06,344 Suze: need that $450 a month and give up the possibility 393 00:24:06,354 --> 00:24:12,063 Suze: of tying up $250,000 in high yield municipal bonds if 394 00:24:12,074 --> 00:24:14,625 Suze: you can find them right now, so that when you 395 00:24:14,635 --> 00:24:16,224 Suze: go back to work, 396 00:24:16,760 --> 00:24:20,619 Suze: then you've locked in the higher interest rates of today 397 00:24:20,709 --> 00:24:24,859 Suze: versus what they might be two years from now. So 398 00:24:24,869 --> 00:24:28,419 Suze: we're only talking about $10,000. So, if it were me, D, 399 00:24:28,430 --> 00:24:31,609 Suze: over a two year period of time, because obviously that 400 00:24:31,619 --> 00:24:32,389 Suze: might be what you're saying. 401 00:24:32,505 --> 00:24:37,334 Suze: Bat is, I would simply be taking $10,000 putting it 402 00:24:37,344 --> 00:24:41,834 Suze: in cash investing the rest in a wise way to 403 00:24:41,844 --> 00:24:44,415 Suze: lock up longer term interest rates. And if you're going 404 00:24:44,425 --> 00:24:46,185 Suze: to do a bond ladder, you would at least be 405 00:24:46,194 --> 00:24:48,084 Suze: doing it out to 10 years. 406 00:24:48,420 --> 00:24:51,089 Suze: Two years. Make absolutely no sense. To me. It's a 407 00:24:51,099 --> 00:24:55,050 Suze: wise way, a wise way would be depending on what 408 00:24:55,060 --> 00:24:57,800 Suze: her income is going to be when she goes back 409 00:24:57,810 --> 00:25:02,199 Suze: to work. Maybe municipal bonds is a way for her 410 00:25:02,209 --> 00:25:03,400 Suze: to go to get tax 411 00:25:03,474 --> 00:25:06,704 Suze: free income. But then again, she might not even need income, 412 00:25:06,714 --> 00:25:09,604 Suze: then maybe she could then go into zero coupon bonds 413 00:25:09,614 --> 00:25:12,694 Suze: a whole another Suze School. But no, I don't think 414 00:25:12,704 --> 00:25:14,744 Suze: it's a wise thing for you to do. I think 415 00:25:14,755 --> 00:25:17,175 Suze: you need to look to what's gonna happen with interest 416 00:25:17,185 --> 00:25:23,375 Suze: rates long term. Ok. I just did financial surgery there. 417 00:25:24,989 --> 00:25:26,629 KT: You know what you need to do. You need to 418 00:25:26,640 --> 00:25:32,719 KT: do a Suze School on that because it seems very confusing, taxable, nontaxable, 419 00:25:33,130 --> 00:25:35,880 KT: you know, laddering bonds, coupons. 420 00:25:36,030 --> 00:25:40,619 KT: Zeros sounds a little bit like my Roth friends. All right, ready. 421 00:25:40,750 --> 00:25:45,339 KT: This is from Grace. Suze, I am confused about funding 422 00:25:45,349 --> 00:25:49,930 KT: my living revocable trust. Can I choose not to fund 423 00:25:49,969 --> 00:25:53,550 KT: my home? Am I able to choose and select what 424 00:25:53,560 --> 00:25:57,079 KT: I want to fund? Do I fund my pension plan? 425 00:25:57,270 --> 00:26:01,260 KT: You need to explain to grace why a living revocable 426 00:26:01,270 --> 00:26:01,939 KT: trust 427 00:26:02,189 --> 00:26:06,050 KT: is a benefit for all of her assets. Explain that. 428 00:26:06,060 --> 00:26:09,520 Suze: Well, just very quickly, you can choose not to fund 429 00:26:09,530 --> 00:26:13,489 Suze: your home. Why you would choose that is beyond me. 430 00:26:13,500 --> 00:26:15,140 KT: Explain why she should. 431 00:26:15,150 --> 00:26:19,810 Suze: Because chances are your home is your greatest asset. And 432 00:26:19,819 --> 00:26:23,410 Suze: upon your death, if it's not in a trust, 433 00:26:24,099 --> 00:26:27,810 Suze: then if you leave it to somebody via a will, 434 00:26:27,859 --> 00:26:30,319 Suze: it's gonna have to go through probate and it will 435 00:26:30,329 --> 00:26:33,879 Suze: be based on your fair market value of that home, 436 00:26:33,969 --> 00:26:37,319 Suze: not just the equity that you have in that home. 437 00:26:37,579 --> 00:26:41,040 Suze: So why you would want to choose not to fund 438 00:26:41,390 --> 00:26:46,829 Suze: probably the most important asset is beyond me. So for 439 00:26:46,839 --> 00:26:50,979 Suze: all of you who don't know, funding a living revocable 440 00:26:50,989 --> 00:26:55,349 Suze: trust simply means you change the title of an asset 441 00:26:55,390 --> 00:27:00,909 Suze: from your individual name, Suze Orman into the title of 442 00:27:00,920 --> 00:27:05,510 Suze: the trust, Suze Orman trustee for the Suze Orman Living 443 00:27:05,520 --> 00:27:09,229 Suze: revocable Trust. And it's held for my benefit while I'm 444 00:27:09,239 --> 00:27:10,000 Suze: alive 445 00:27:10,469 --> 00:27:15,010 Suze: and my beneficiaries benefits after I have died. And then 446 00:27:15,020 --> 00:27:17,829 Suze: they don't have to go through probate. But more importantly, 447 00:27:17,839 --> 00:27:23,810 Suze: if I become incapacitated, then within the trust, there's an 448 00:27:23,819 --> 00:27:28,448 Suze: incapacity clause and a good trust that allows your successor 449 00:27:28,459 --> 00:27:32,050 Suze: trustee to sell it without you having to go to 450 00:27:32,060 --> 00:27:35,689 Suze: probate court. Be declared incompetent if you need to sell 451 00:27:35,699 --> 00:27:38,010 Suze: it and get a conservatorship for you. 452 00:27:38,369 --> 00:27:41,099 Suze: So, yeah, you're able to choose and select what you 453 00:27:41,109 --> 00:27:44,630 Suze: want to fund. Do I fund my pension? No, your 454 00:27:44,640 --> 00:27:49,329 Suze: pension needs to be in your individual name. All right, KT. Oh, 455 00:27:49,520 --> 00:27:51,550 Suze: we're already almost at 30 minutes. 456 00:27:52,199 --> 00:27:54,209 KT: I have one. I have one question I want you 457 00:27:54,219 --> 00:27:58,010 KT: to answer for Christy. She has two adult Children that 458 00:27:58,020 --> 00:27:58,469 KT: she wants 459 00:27:58,550 --> 00:28:01,949 KT: to split her assets upon her death. One child is 460 00:28:01,959 --> 00:28:05,089 KT: a special needs. So she's saying Suze, what's the best 461 00:28:05,099 --> 00:28:09,399 KT: way to ensure they both inherit the assets you want? 462 00:28:09,410 --> 00:28:10,790 KT: They have to have two different. 463 00:28:11,069 --> 00:28:14,369 Suze: Yeah, it depends if your child is y has special 464 00:28:14,380 --> 00:28:17,770 Suze: needs and that means your child is on SSI, 465 00:28:18,959 --> 00:28:21,719 Suze: the best thing you could do for that child is 466 00:28:21,729 --> 00:28:24,640 Suze: to make sure that you have a special needs trust. 467 00:28:24,849 --> 00:28:28,339 Suze: So that money for this child, that money goes into 468 00:28:28,349 --> 00:28:33,420 Suze: that trust and then doesn't disqualify him or her from SSI. 469 00:28:35,180 --> 00:28:39,140 Suze: The other one, truthfully, I don't know the assets that 470 00:28:39,150 --> 00:28:41,859 Suze: you have, but the other one, you might want to 471 00:28:41,869 --> 00:28:43,099 Suze: have a living revocable 472 00:28:43,410 --> 00:28:48,489 Suze: trust that leaves the assets to your other adult child. 473 00:28:48,500 --> 00:28:52,390 Suze: So they don't have to go through probate. That's probably 474 00:28:52,400 --> 00:28:55,560 Suze: the best way to do. It also can just make 475 00:28:55,569 --> 00:28:58,439 Suze: your bank accounts and other things pay on debt. So 476 00:28:58,449 --> 00:29:01,800 Suze: it goes directly to the other adult child, but you 477 00:29:01,810 --> 00:29:06,010 Suze: absolutely need a special needs, trust for your other special 478 00:29:06,020 --> 00:29:07,280 Suze: needs child. 479 00:29:07,640 --> 00:29:12,880 KT: Ok. I have an easy one for you, Suze from Gloria. Easy, easy, easy. Hi, 480 00:29:12,890 --> 00:29:17,640 KT: Suze and KT, what is the maximum amount that FDIC 481 00:29:17,650 --> 00:29:24,599 KT: insures for treasuries? Still 250,000? That's an easy, easy one. 482 00:29:24,609 --> 00:29:27,239 Suze: Quizzy. KT. That's your quizzy. 483 00:29:27,479 --> 00:29:32,579 KT: I think. Yes, I think the answer is still 250,000. (Suze makes the wrong answer noise). 484 00:29:34,640 --> 00:29:39,750 KT: Well, the FDIC is bank accounts, not a treasury. Alright, 485 00:29:39,760 --> 00:29:44,660 KT: there you go. But it's 250,000 for bank accounts not for 486 00:29:44,680 --> 00:29:47,560 KT: your treasury. So what is, how do you insure a treasury? 487 00:29:47,569 --> 00:29:52,250 Suze: By the full faith and authority of the United States government. 488 00:29:52,260 --> 00:29:53,989 Suze: So when you have a treasury, 489 00:29:54,400 --> 00:29:59,189 Suze: we're all wishing and hoping that the treasury can do 490 00:29:59,199 --> 00:30:03,540 Suze: anything they need to do, raise taxes, anything in order 491 00:30:03,550 --> 00:30:05,050 Suze: to pay us. 492 00:30:05,060 --> 00:30:07,500 KT: Wait, I I have one more. I definitely want you 493 00:30:07,510 --> 00:30:09,969 KT: to answer this one from Joseph. 494 00:30:10,349 --> 00:30:14,849 KT: Good day ladies. He says quick question is a subject 495 00:30:14,859 --> 00:30:17,569 KT: which is why I picked it, Suze. What are your 496 00:30:17,579 --> 00:30:22,810 KT: feelings about using A I generated stock trading sites to 497 00:30:22,819 --> 00:30:26,939 KT: play the market for artificial intelligence? 498 00:30:27,479 --> 00:30:31,280 Suze: What is the one word, KT look at that email. 499 00:30:31,800 --> 00:30:33,310 Suze: What is the one word 500 00:30:33,319 --> 00:30:36,439 KT: Feeling, feeling? What are your feelings? 501 00:30:36,449 --> 00:30:38,689 Suze: No, what is the one word that will set me off? 502 00:30:38,699 --> 00:30:42,560 KT: Play, play, play, play. What are your feelings about playing 503 00:30:42,569 --> 00:30:44,010 KT: with money, Suze? 504 00:30:44,300 --> 00:30:45,650 Suze: It's, here's the thing. 505 00:30:45,689 --> 00:30:47,099 KT: I know what she's gonna say. 506 00:30:47,160 --> 00:30:47,988 Suze: Say it then. 507 00:30:48,410 --> 00:30:52,010 KT: You would probably say money isn't something to play with, 508 00:30:52,020 --> 00:30:54,589 KT: but it is something to invest. 509 00:30:54,599 --> 00:30:57,780 Suze: So Joseph, I don't like the question, 510 00:30:58,280 --> 00:31:02,260 Suze: you know, hey, maybe an A I generated stock trading 511 00:31:02,270 --> 00:31:06,619 Suze: portfolio is good and maybe it will make you money, 512 00:31:06,630 --> 00:31:10,250 Suze: but I am not a trader. I am an investor. 513 00:31:10,270 --> 00:31:12,939 Suze: There are times that I get a little speculative with 514 00:31:12,949 --> 00:31:18,459 Suze: money but very, very little. Right? And so the fact 515 00:31:18,469 --> 00:31:20,959 Suze: that you wanna be a stock trader 516 00:31:21,420 --> 00:31:24,689 Suze: and you want to play the market, my feelings about 517 00:31:24,699 --> 00:31:28,199 Suze: it is ok, but only with money you want to lose. 518 00:31:28,939 --> 00:31:35,040 KT: One quick question is each CD covered by FDIC or 519 00:31:35,050 --> 00:31:39,119 KT: credit union insurance. I have multiple CDS at Alliant Credit Union. 520 00:31:39,130 --> 00:31:43,920 KT: A couple are over $250,000 limit. Should I use multiple 521 00:31:43,930 --> 00:31:47,949 KT: credit unions to buy more? I think you, you don't 522 00:31:47,959 --> 00:31:48,449 KT: need multi 523 00:31:48,792 --> 00:31:50,333 KT: credit unions, do you? 524 00:31:50,343 --> 00:31:56,133 Suze: No, but what you need is different beneficiaries. So instance 525 00:31:56,383 --> 00:32:00,682 Suze: you could have one CD in just your name. Now 526 00:32:00,692 --> 00:32:06,613 Suze: you have $250,000 there. If your beneficiaries on that CD, 527 00:32:06,782 --> 00:32:10,613 Suze: let's say you have two beneficiaries. Maybe it's your spouse, 528 00:32:10,623 --> 00:32:15,572 Suze: maybe it's another child. Now, you're at $500,000 529 00:32:15,686 --> 00:32:21,186 Suze: of FDIC insurance. You could actually name different beneficiaries up 530 00:32:21,196 --> 00:32:26,956 Suze: to $1.2 million worth of FDIC insurance. But you could 531 00:32:26,965 --> 00:32:29,725 Suze: have a CD. Your spouse could have a CD. If 532 00:32:29,735 --> 00:32:34,306 Suze: you have a spouse, you could have a joint CD 533 00:32:34,316 --> 00:32:40,786 Suze: each with $250,000 for each person there. However, you're also 534 00:32:40,796 --> 00:32:42,625 Suze: your beneficiaries 535 00:32:43,020 --> 00:32:47,839 Suze: get $250,000. What you can do just to check it 536 00:32:47,849 --> 00:32:51,910 Suze: out is there are calculators that will show you. Are 537 00:32:51,920 --> 00:32:55,869 Suze: you insured or are you not? But I think you're 538 00:32:55,880 --> 00:33:01,199 Suze: fine if you just have multiple CDs with multiple ownerships, 539 00:33:01,209 --> 00:33:07,069 Suze: but definitely with multiple beneficiaries and then you would be 540 00:33:07,079 --> 00:33:08,640 Suze: just fine. All right. 541 00:33:09,680 --> 00:33:13,010 Suze: KT, do you miss your real quizzy today? 542 00:33:13,890 --> 00:33:14,599 KT: No. 543 00:33:15,170 --> 00:33:15,699 Suze: You're happy. 544 00:33:16,369 --> 00:33:19,000 KT: I'm happy with a half a ding, ding, ding on the, 545 00:33:19,010 --> 00:33:23,229 KT: on the, on the treasury versus bank account insurance. 546 00:33:24,089 --> 00:33:26,880 Suze: See, when you rub your face, I it makes you 547 00:33:26,890 --> 00:33:28,560 Suze: look tired. Don't rub it. 548 00:33:28,569 --> 00:33:31,280 KT: I have itchy eyes from the salt water. 549 00:33:31,949 --> 00:33:34,359 Suze: All right. Do you? 550 00:33:34,449 --> 00:33:34,709 KT: Yeah. 551 00:33:35,300 --> 00:33:37,609 Suze: So salt water, even though you went swimming yesterday. 552 00:33:37,650 --> 00:33:40,290 KT: I'm in the salt water for such a long time 553 00:33:40,300 --> 00:33:42,930 KT: that I have to put drops in. So my eyes 554 00:33:42,939 --> 00:33:44,250 KT: don't get real itchy. 555 00:33:44,260 --> 00:33:47,349 Suze: All right. So we're going to go let KT put 556 00:33:47,359 --> 00:33:50,988 Suze: drops in her eyes so she stops itching them. But 557 00:33:51,000 --> 00:33:53,550 Suze: what we are also going to say to all of 558 00:33:53,560 --> 00:33:57,810 Suze: you until Sunday with Suze School. Are you wondering what 559 00:33:57,819 --> 00:33:58,650 Suze: I'm going to do? 560 00:33:59,380 --> 00:34:00,880 KT: What are you going to do Sunday? 561 00:34:00,890 --> 00:34:02,250 Suze: I don't know yet. I'll think about it. 562 00:34:02,500 --> 00:34:04,540 KT: Well, Colo and I are going to be cutting trees 563 00:34:04,550 --> 00:34:06,430 KT: so you better do it early, early, 564 00:34:06,530 --> 00:34:12,279 Suze: Early in the morning you got it. So, anyway, until 565 00:34:12,290 --> 00:34:15,540 Suze: this Sunday, there's only one thing that I want you 566 00:34:15,550 --> 00:34:18,370 Suze: to remember when it comes to your money. And what 567 00:34:18,379 --> 00:34:19,359 Suze: is it, KT? 568 00:34:19,370 --> 00:34:22,419 KT: People first, then money, then things. And if you do 569 00:34:22,429 --> 00:34:25,600 KT: that you will be unstoppable.