Podcast Episode - Ask Suze & KT Anything: Help! I Left My Job.


Financial Security, Podcast, Retirement, Women And Money


May 19, 2022

Listen to Podcast Episode:


Podcast Transcript:

00:00:31
Suze: May 19th 2022 .

00:00:35
KT: What a busy month. This has been Suze.

00:00:38
Suze: KT, Maybe we have too many friends.

00:00:40
KT: I know we have a lot of birthdays. It's the month of May. The merry month of May. Unbelievable. Tomorrow. I know we have first and most important. My little sister Barbara, Happy Birthday Babs.

00:00:52
Suze: How old is she going to be?

00:00:55
KT: 61

00:00:56
KT: and then Grover,

00:00:57
Suze: your dear friend. And then we have

00:00:59
Suze: Maureen Davis who lives with us

00:01:01
Suze: here on the island

00:01:02
KT: and

00:01:03
Suze: two days ago was

00:01:05
Suze: Jennifer Littlehails'

00:01:06
Suze: birthday. And

00:01:08
KT: so it's

00:01:09
Suze: just you know,

00:01:11
KT: we have three or four or five more coming up in the week after that. So happy birthday. Everybody

00:01:16
Suze: Alright. Welcome

00:01:17
KT: Are they all Tauruses? I think so .

00:01:19
Suze: Um No, because now they're going into Gemini because they've passed the date

00:01:24
KT: But but 20 is a Taurus

00:01:27
KT: for sure.

00:01:28
Suze: For sure. Yes. But then when we go to the 21st, we go into Gemini

00:01:32
Suze: which is me, which

00:01:34
Suze: is me. What

00:01:35
Suze: did you get me?

00:01:37
KT: I

00:01:37
KT: don't give you a birthday gift.

00:01:39
KT: You are my

00:01:40
Suze: gift. I know we

00:01:41
KT: don't exchange gifts if you recall.

00:01:43
KT: We do. We make things, we make cards.

00:01:46
Suze: You want to know when I'm

00:01:47
Suze: getting KT for her

00:01:49
KT: 70th

00:01:49
Suze: birthday. So what

00:01:51
Suze: you do

00:01:52
Suze: know what

00:01:53
Suze: I have

00:01:53
Suze: decided because

00:01:55
Suze: two years ago

00:01:56
Suze: we were all going to go salmon fishing by the way. This is asked Suze and KT anything. But anyway,

00:02:02
Suze: besides that we

00:02:03
Suze: were going to go salmon fishing in British

00:02:05
Suze: Columbia

00:02:06
Suze: and then Covid happened and then

00:02:08
Suze: my injuries

00:02:10
Suze: started and da da da da

00:02:12
Suze: and

00:02:13
Suze: I

00:02:13
Suze: am definitely going with her for sure sure. No matter what.

00:02:20
Suze: I've been

00:02:21
Suze: afraid to go

00:02:22
Suze: With her. I've been afraid to do that trip. So this trip has been postponed now for two

00:02:27
KT: years.

00:02:28
Suze: But we're doing it and I've decided, I don't care, I'm doing

00:02:32
KT: it. I'm facing

00:02:33
Suze: my fear

00:02:33
Suze: Also, I just have to tell all of you something else.

00:02:37
Suze: Do you know what I want to tell them about fa

00:02:39
KT: She's going to go back on the stage.

00:02:42
Suze: I've accepted

00:02:43
Suze: to talks for 23

00:02:45
Suze: 2020 23 which will tell you when we get there. But Susie finally said,

00:02:50
KT: KT book it.

00:02:51
KT: I have been postponing and canceling

00:02:54
KT: so many requests

00:02:56
KT: so many. And she finally looked to me, she said,

00:02:58
KT: I am going to face my fear I'm going back on the stage.

00:03:02
Suze: So for

00:03:03
Suze: all of you who

00:03:04
Suze: wrote me to say you could do it, Suze. She's going to give it a go.

00:03:08
Suze: I've booked it.

00:03:09
Suze: That means I have to show up because I said I would All right, KT

00:03:13
Suze: what do you got for

00:03:14
Suze: us today?

00:03:15
KT: So it's May

00:03:16
KT: 19th. This is the

00:03:17
KT: ask Susie,

00:03:18
KT: KT asks Suzy anything podcast.

00:03:21
Suze: Also

00:03:22
Suze: before you ask

00:03:24
Suze: for those of you who want to write in

00:03:26
Suze: a question.

00:03:27
Suze: You can do so on the Women and Money app, download it on Apple

00:03:31
Suze: apps or Google play or go to ask suze podcast at gmail.com

00:03:38
Suze: and you can send your question in there

00:03:40
Suze: and if chosen we will

00:03:42
Suze: answer it on the podcast. Alright, KT, go on.

00:03:45
KT: Okay, this is from Marlena. Dear Suzy. I'm ready to fund my trust and prepared to transfer my real estate property currently held in community property in California. Do I need to hire a title company to move my property into my trust or

00:04:05
KT: do I go to the county tax assessor's office

00:04:08
KT: to change the title? If the latter, where do I find the documentation to make this transfer?

00:04:15
Suze: I

00:04:15
Suze: think the easiest way for

00:04:16
Suze: you to do it, Marlena would just go to

00:04:18
Suze: a title company

00:04:20
Suze: and have them change

00:04:21
Suze: the title from

00:04:22
Suze: your name into the title of the trust. And

00:04:25
Suze: for those of you who don't know

00:04:26
Suze: Marlena is talking about, she's created a living revocable trust

00:04:31
Suze: that she wants

00:04:32
Suze: to own her home into

00:04:34
Suze: the title of the trust so that

00:04:36
Suze: upon her death

00:04:38
Suze: it could pass to

00:04:39
Suze: her beneficiaries without

00:04:40
Suze: probate

00:04:41
Suze: or if she

00:04:42
Suze: becomes

00:04:42
Suze: incapacitated,

00:04:44
Suze: then whoever

00:04:45
Suze: she names in her trust can take over her affairs.

00:04:49
Suze: For her. Just that simple.

00:04:51
KT: Alright, Alright. And on the same topic Holly the next

00:04:54
KT: question

00:04:55
KT: asks, does an irrevocable living trust have to be filed at a courthouse.

00:05:00
Suze: Did she say irrevocable right?

00:05:03
Suze: All of you need to listen to me.

00:05:06
Suze: I

00:05:06
Suze: doubt highly

00:05:08
Suze: that there is

00:05:09
Suze: anybody that is

00:05:10
Suze: listening to this podcast

00:05:13
Suze: that needs

00:05:14
Suze: an

00:05:14
Suze: irrevocable

00:05:15
Suze: trust.

00:05:17
Suze: An

00:05:17
Suze: irrevocable trust is one that does

00:05:20
Suze: not

00:05:21
Suze: change. It cannot change. And

00:05:23
Suze: there is nothing you can do

00:05:25
Suze: about it. Once you put

00:05:26
Suze: anything in there,

00:05:27
Suze: it's gone.

00:05:28
Suze: That's it.

00:05:30
Suze: It's cement, it has to pass and do whatever that trust says. You mainly want a revocable trust. A trust that you can change whenever you want. You can change your beneficiaries, you can change anything about it that you want to change. So if the question is, does a revocable trust have to be filed with the court house? The answer to that. It does not.

00:05:57
Suze: And if you're wondering out there, why do we talk about trust here on the women and money podcast is one of the main

00:06:05
Suze: foundations for your

00:06:07
Suze: entire financial

00:06:08
Suze: life. Should be a living revocable

00:06:11
Suze: trust. A

00:06:13
Suze: will, an advanced directive and durable power of Attorney

00:06:16
Suze: for healthcare and financial

00:06:17
Suze: power of attorney. And those are expensive documents to get.

00:06:22
Suze: And over 20

00:06:23
Suze: years ago

00:06:25
Suze: I developed

00:06:26
Suze: what was called the must have documents with my own

 

00:06:28
Suze: trust lawyer.

00:06:29
Suze: And now all of you

00:06:32
Suze: can get

00:06:32
Suze: 2500

00:06:33
Suze: dollars worth of state of the

00:06:34
Suze: art documents good in

00:06:36
Suze: all 50 states

00:06:38
Suze: simply by going to Suzy orman dot com

00:06:42
Suze: slash offer and for

00:06:44
Suze: $99 you

00:06:45
Suze: can get that and do

00:06:46
Suze: all of that in the luxury

00:06:47
Suze: of your own home. You can share it

00:06:49
Suze: with all the members

00:06:50
Suze: In your family. So it's like giving a gift to somebody, your mother, 2500, your kids, 2500, whatever it may be. And any time you want to make a change, you just go back and change it and

00:07:02
Suze: guess what?

00:07:03
Suze: It's not going to cost you anything.

00:07:05
KT: Shareware. Suze created shareware.

00:07:08
Suze: I like to call it Suzy-ware Okay,

00:07:10
KT: next question is from Irene, can you please do a class ready

00:07:15
KT: for this Suze

00:07:16
KT: on how to trade stock

00:07:21
KT: and

00:07:22
KT: I want to learn from the best which is you

00:07:24
Suze: you don't trade stock.

00:07:26
Suze: None of you are stock traders. You

00:07:30
Suze: are people who invest in the stock market period.

00:07:35
Suze: If you are a

00:07:36
Suze: trader, you buy something, you sell it, you then buy something else and chances are you will lose money more than you will make money. So the key to building wealth in the stock market, even though the markets are absolutely crazy this year

00:07:53
Suze: is by investing in something right

00:07:55
Suze: now. Anyway. Little

00:07:56
Suze: by little dollar cost averaging into it, which is taking a specific sum of money every single month and buying something. If you don't know what you're doing, then buy exchange

00:08:07
Suze: traded

00:08:08
Suze: funds such as the Vanguard Total Stock market index fund.

00:08:12
Suze: If you want to be more concentrated

00:08:14
Suze: in oil, maybe

00:08:14
Suze: you buy the XLs, whatever it may be, but that is how you do it. But you don't want to trade. If you want to be a trader turn on CNBC and watch Fast Money at five o'clock every day. They are traders? They go in, They go out and you can

00:08:32
Suze: learn a lot from

00:08:33
Suze: them but you're

00:08:35
Suze: not going to make money if you're a trader in most cases. All right,

00:08:38
KT: at least right now. Right?

00:08:40
Suze: well these are the types of

00:08:41
Suze: markets, KT that you would be trading because

00:08:44
Suze: you need volatility.

00:08:45
Suze: It goes up, it goes down, you

00:08:46
Suze: can do this, you can do that. But you

00:08:48
Suze: better know what you're doing.

00:08:50
KT: Alright, next question's from Ida. Hi, Suze and KT short, sweet and possibly a quizze for KT.

00:08:58
KT: Ready for the question everyone.

00:09:00
KT: And this is for you too out their audience. Suze, can I purchase a nonworking spousal Roth I. R. A. If I'm already retired? Want me to answer it?

00:09:13
Suze: That's your quiz. E is your mid podcast? Absolutely, yes.

00:09:19
Suze: And how can she do that?

00:09:21
Suze: Because she's already retired and she has a spouse, she wants a nonworking spouse.

00:09:29
KT: Susie,

00:09:29
Suze: can I purchase a nonworking spouse? Cell Roth Ira if I'm already retired in other words, she's not working today,

00:09:38
KT: does she say

00:09:39
Suze: if her spouse is working?

00:09:42
Suze: No,

00:09:43
KT: she didn't say that. How can you answer that question.

00:09:47
Suze: Okay,

00:09:49
KT: IDa, we don't have enough

00:09:50
Suze: information,

00:09:51
KT: but here's the good news. That idea if your

00:09:57
Suze: spouse is

00:09:58
KT: still working?

00:09:59
Suze: Absolutely yes

00:10:00
KT: Ding Ding Ding Ding

00:10:01
Suze: Ding Ding Ding Ding Ding. However,

00:10:04
Suze: how much can ida put into her nonworking. So come on, I just gotta do Katie. I think half of what he makes. Something like that. I

00:10:16
KT: don't know what I'm going to

00:10:17
Suze: die. Absolutely. Going to. I don't know. I don't know as much as you can.

00:10:23
Suze: So ida

00:10:25
Suze: your spouse

00:10:27
Suze: needs to be making for you to contribute the maximum for your age,

00:10:32
KT: Which would be 7000

00:10:33
Suze: dollars a year.

00:10:35
KT: He or

00:10:35
Suze: she needs to be making at

00:10:37
KT: least seven

00:10:38
Suze: $1,000 a year or more earning. That

00:10:42
Suze: if your spouse

00:10:43
KT: Is only making three

00:10:45
Suze: $1,000 a year,

00:10:47
KT: then the maximum you can put

00:10:49
Suze: in is only

00:10:50
KT: 3000. So it's

00:10:52
Suze: up to seven

00:10:54
KT: $1000 a

00:10:54
Suze: Year maximum or whatever your spouse is earning. Whichever one

00:11:00
KT: is less.

00:11:02
Suze: I wanna try repeating that for me now.

00:11:04
Suze: Yeah. Ida, here's the good news. Let's go on. All right, this is from Sabrina

00:11:12
Suze: help. Suzy. I left my job. Alright. Ready? Recently left my first job and started at a new company. My recent job offered four oh one K. At Fidelity. Since I left. How do I manage this money? Do I have to move it somewhere else? Please guide me. Susie.

00:11:32
Suze: Sabrina just started working. Tell her that we'll tell her what a rollover is.

00:11:36
KT: Well, you

00:11:37
Suze: left your job, right? And you started a new job

00:11:41
KT: at a new company

00:11:42
Suze: That my recent job offered a 401K. Infidelity.

00:11:47
KT: The question

00:11:48
Suze: is, does your new

00:11:50
KT: job

00:11:50
Suze: Offer a 401

00:11:52
KT: K. You did not

00:11:53
Suze: tell us that.

00:11:55
KT: So you

00:11:56
Suze: Have two choices. You

00:11:58
KT: can

00:11:58
Suze: if you want to

00:11:59
KT: roll your

00:12:01
Suze: 401k. At your

00:12:02
KT: old job

00:12:03
Suze: Into your new 401k.

00:12:07
KT: Where you

00:12:07
Suze: are working. If they offer

00:12:09
KT: one,

00:12:10
KT: if they don't

00:12:11
Suze: Offer one Now you have more choices. You can leave

00:12:15
KT: it where your

00:12:16
Suze: first job was.

00:12:18
KT: Usually if you have 5000

00:12:19
Suze: dollars or more in it

00:12:22
Suze: or you can do an ira

00:12:24
KT: rollover

00:12:25
Suze: with it. Which means you would contact Fidelity

00:12:28
KT: possibly if you like them

00:12:30
Suze: or Schwab or TD Ameritrade any discount brokerage firm. E trade you name it and you

00:12:36
KT: set it up with them

00:12:38
KT: and they

00:12:39
Suze: will then contact

00:12:40
KT: your ex employer

00:12:41
Suze: and do a custodian

00:12:43
KT: to custodian

00:12:44
Suze: transfer so that it goes directly from your

00:12:47
KT: Old 401k.

 

00:12:49
Suze: Into your ira

00:12:50
KT: Rollover.

00:12:51
Suze: Just

00:12:52
KT: that easy.

00:12:53
Suze: Okay next question is from Cathy

00:12:56
Suze: and this this is kind of sweet. I don't know if you can answer it but she's wondering Susie, what does that mean?

00:13:02
KT: You don't know if I can I'll

00:13:04
Suze: Tell you the question that has to do with medical insurance and deductions. Do you know why I am not able to take a deduction for the medical insurance? I paid in 2021 because I am a student

00:13:19
KT: because she's a student. You need a

00:13:21
Suze: corporation to be able to do that. You

00:13:23
KT: need expenses.

00:13:24
Suze: You need to meet certain qualifications. A student

00:13:27
KT: doesn't qualify

00:13:28
Suze: for a deduction.

00:13:29
KT: A medical insurance

00:13:31
Suze: premiums

00:13:33
Suze: next is from Candace by the way does everyone like this? It's kind of like boom boom boom. I'm

00:13:38
KT: looking at the papers in

00:13:39
Suze: front of her all real short. There's one there like three lines every one of them. Which is what I'm trying to aim for with this podcast.

00:13:47
KT: So this is a Susie shorty.

00:13:48
Suze: Yeah.

00:13:49
Suze: My husband and I have wrought accounts with three different firms.

00:13:53
Suze: Should they be combined to 1? As long as the original paperwork is kept for reference.

00:13:59
Suze: That's from Candace.

00:14:00
KT: Well it depends usually

00:14:02
Suze: yes Candace

00:14:03
KT: because you may be

00:14:04
Suze: finding that you are being

00:14:06
KT: charged a custodian

00:14:08
Suze: account for

00:14:08
KT: each one of those Roth

00:14:10
Suze: Iras maybe

00:14:11
KT: You're paying $25 a year for each one just to have them.

00:14:15
KT: Also. It becomes

00:14:16
Suze: very interesting to keep track. What do you have in

00:14:19
KT: this one? What do you have in that one? What do you have in this one and then when you get older

00:14:25
Suze: then

00:14:25
KT: forget it's true. But when you get older the good news is because they're Roth iras you don't have

00:14:34
Suze: to take required

00:14:35
KT: minimum distributions. So it's not like traditional iras that you would then have to do

00:14:40
Suze: the calculation

00:14:41
KT: from all of that. But for simplistic reason

00:14:45
KT: I would probably transfer it all into one account. Couldn't

00:14:48
Suze: do it. Next is from Katherine.

00:14:51
Suze: Hi Susie & Katie, I have a credit card. I never use, it costs me $39 a year. Close it

00:14:58
KT: close it. Can

00:14:59
Suze: I close it?

00:15:01
KT: The reason that

00:15:01
Suze: I would close it is $39 is $39. Now. I know very

00:15:06
KT: well that I have said

00:15:08
Suze: to you do not close down your credit cards

00:15:11
Suze: because when you close down a credit card,

00:15:13
KT: you also

00:15:14
Suze: closed down the credit

00:15:16
KT: limit that was on that

00:15:17
Suze: credit card.

00:15:19
KT: And if you close down the

00:15:20
Suze: credit limit that's on that credit

00:15:22
KT: card, it could

00:15:23
Suze: hurt your Fico score. But I do not like credit cards that charge you.

00:15:28
KT: I don't care if it's 10

00:15:29
Suze: dollars a year. $39 a year, 90

00:15:32
KT: $5 a year. I

00:15:34
Suze: think it's a waste of money. So therefore

00:15:36
KT: I would

00:15:37
Suze: close it down

00:15:39
Suze: Now.

00:15:39
KT: It's not going

00:15:40
Suze: to hurt your credit score. If you don't carry a balance on any of your credit

00:15:46
KT: cards, you'll be fine

00:15:47
Suze: if you

00:15:48
KT: do

00:15:48
Suze: however, carry a balance on your credit cards.

00:15:53
KT: Why not try

00:15:53
Suze: opening up another credit

00:15:55
KT: card believe it or not

00:15:57
Suze: with the same credit

00:15:58
KT: limit that was on

00:15:59
Suze: this credit card, but that doesn't cost you anything a year to keep it. All

00:16:05
KT: right,

00:16:05
Suze: okay. Next question is from Denise Delgado. Do you know why I said her surname

00:16:12
KT: because

00:16:13
Suze: of Ana Delgado? My dear friend. I wonder if you girls know each other. Anyway, here's a simple question and I'm actually going to answer it for you. Can the living revocable trust be named something else other than my name?

00:16:28
Suze: And the answer is sorry Denise. No, it cannot. It needs to be your legal name. Why is that? Because it's a legal document. It's your Living Revocable Trust. So it's my Living Revocable

00:16:41
KT: Trust. And I want to

00:16:41
Suze: call myself snoop. No way. You want to call it Lucky crab. Look, that's her email.

00:16:46
KT: Right? So

00:16:48
Suze: here's the thing

00:16:50
KT: again,

00:16:51
Suze: we're talking about the living Revocable Trust.

00:16:53
KT: The living Revocable

00:16:55
Suze: Trust is created

00:16:57
KT: by somebody

00:16:58
Suze: known as the trust store.

00:17:01
KT: That is

00:17:01
Suze: the person that

00:17:02
KT: created the

00:17:03
Suze: trust.

00:17:05
KT: And absolutely

00:17:06
Suze: makes every decision over

00:17:08
KT: that trust. As long

00:17:10
Suze: as not only are they the trust or but they're also the

00:17:12
KT: trustee.

00:17:14
KT: So it's

00:17:15
Suze: their trust.

00:17:17
KT: You want to make sure that your legal entities

00:17:19
Suze: know that it's you

00:17:21
KT: and if it's not

00:17:22
Suze: your individual

00:17:23
KT: name and something

00:17:24
Suze: happens to you, how

00:17:25
KT: are they gonna know whose

00:17:26
Suze: trust this is? So you keep it in your legal name. All right. Next question, Susie is from Joyce.

00:17:34
Suze: I am single. I'm going to be 60 years old and plan on retiring in five years when my mortgage

00:17:40
KT: is paid off,

00:17:41
Suze: The adviser recommended putting 60% of my 401K into

00:17:46
KT: a bond fund.

00:17:47
Suze: I know you do not like

00:17:49
KT: bond funds do not like bond funds is putting it. All right. All right, be calm,

00:17:54
Suze: be nice. I

00:17:56
KT: also know

00:17:57
Suze: you. I also

00:17:58
KT: know you do

00:18:00
Suze: not recommend stocks within five years of retirement. Where should I put my money? So she needs your guidance

00:18:07
KT: Susie. So Joyce on the podcast on May 15.

00:18:11
Suze: Just last sunday,

00:18:12
KT: Just last sunday, I talked about a lot about bond funds versus bonds.

00:18:19
KT: I don't mind individual bonds because individual bonds have a maturity date. Okay,

00:18:28
KT: what I do mind

00:18:30
Suze: is bond funds.

00:18:32
KT: So a bond fund

00:18:34
Suze: is a fund

00:18:35
KT: made up of individual

00:18:37
Suze: bonds but it does not have a maturity

00:18:40
KT: date.

00:18:41
Suze: Therefore if interest

00:18:42
KT: rates continue up, the price of that bond fund will

00:18:45
Suze: absolutely

00:18:46
KT: continue to go down and bond funds have been decimated

00:18:51
KT: this year decimated.

00:18:54
KT: So why

00:18:56
Suze: would an advisor

00:18:58
KT: tell you to put the majority of your money

00:19:01
KT: into a bond fund right now when bond funds are absolutely being obliterated

00:19:09
KT: that I don't understand.

00:19:11
KT: You would be far better off,

00:19:15
KT: especially as interest rates go up and again listen to the podcast on

00:19:20
Suze: May 15th

00:19:21
KT: that look into

00:19:22
Suze: Treasury notes,

00:19:25
Suze: do a

00:19:25
KT: whole combination of bills, bonds, notes, whatever. Because

00:19:29
Suze: there will come a

00:19:30
KT: time again when interest rates have hit their top

00:19:34
KT: That you may want to buy a 30

00:19:37
Suze: year Treasury

00:19:38
KT: bond because then as interest rates go down, you can make a whole lot of money.

00:19:44
KT: So for now if I were you and you want to keep your money

00:19:48
Suze: safe and sound

00:19:49
KT: look into

00:19:50
Suze: shorter term Treasury

00:19:52
KT: bills or notes. That's number one. Number two, it's not that I don't recommend stocks within five years of retirement.

00:20:01
KT: I don't recommend you having money in

00:20:04
Suze: stocks

00:20:05
KT: on money that

00:20:06
Suze: you're going to need for

00:20:08
KT: any reason,

00:20:09
Suze: not just retirement.

00:20:12
KT: So you

00:20:12
Suze: have to be

00:20:14
KT: careful here. So is there an amount of money

00:20:18
KT: that you want to keep safe

00:20:19
Suze: and sound

00:20:21
KT: that you know

00:20:22
Suze: you're going to

00:20:23
KT: Need by the time that you turn 65 and retire now, it may be all of the money that you have in your 401K. If that's true,

00:20:33
Suze: you can do

00:20:34
KT: that.

00:20:35
KT: But you have

00:20:36
Suze: to just be careful

00:20:37
KT: at this point

00:20:38
Suze: in time. Again.

00:20:40
KT: Listen to the podcast on May 15.

00:20:44
Suze: Great. And this

00:20:45
KT: next question, Susie

00:20:46
Suze: is going to make you really mad

00:20:49
KT: about whole life

00:20:50
Suze: insurance, is

00:20:51
KT: it? Yes,

00:20:52
Suze: I knew it. This is from Shonda. Shonda. Listen up because Susie's going to get really mad.

00:20:58
Suze: My insurance agent keeps pushing me to switch from term to whole life insurance.

00:21:05
Suze: I know you've said in the past many times not to do this. He keeps sending her emails and letters after she says no. And she has good reason. She's doing exactly the right thing. I have a 12 year old son and only plan to keep my life insurance until he was 18 or out of college. I just want to make sure susie, I'm doing the right thing ready for this. This part is going to really want you to strangle this guy. He tells me I can make $40,000 on whole life. Thank you.

00:21:38
Suze: So tell Shonda Kiss, stick to her, Shonda, here's what I don't

00:21:44
KT: like

00:21:45
Suze: that. He keeps pushing

00:21:46
KT: you,

00:21:47
Suze: he's pushing you to switch from term

00:21:50
KT: to whole life. These

00:21:52
Suze: are the

00:21:52
KT: words that you used.

00:21:54
KT: Why would a financial advisor

00:21:57
Suze: be pushing you to do

00:21:59
KT: something every

00:22:00
Suze: single month? He

00:22:01
KT: calls you, He writes you, he sends you emails. Why is he

00:22:05
Suze: so desperate? Because he needs the money because

00:22:08
KT: he okay t you're so smart. He needs he needs the money. Now.

00:22:14
KT: He tells

00:22:15
Suze: you that you

00:22:16
KT: That you can make 40

00:22:17
Suze: $1000.

00:22:18
KT: Everybody, here's what I want you to do,

00:22:25
Suze: Shonda. I

00:22:26
KT: want you to call him every single day and say to him, can you tell me if I buy this whole life policy, how much money you're going to make, sir?

00:22:37
KT: How much money are you going to make now? There is not an advisor in the world that is talking to you about anything other than a Treasury Bill Bonder note or I bond that can say this is guaranteed

00:22:54
KT: because that's the only thing that's guaranteed by the full faith of the U. S. Government.

00:23:00
KT: There is no way that he can say to

00:23:03
Suze: you that you

00:23:04
KT: Can make $40,000 on whole life.

00:23:07
KT: I don't think so. In fact, I know that this will be the biggest mistake you would

00:23:12
Suze: ever make.

00:23:14
KT: And can you just

00:23:15
Suze: stick to your term insurance. When an advisor,

00:23:19
KT: all of you listen

00:23:20
Suze: to me right now when an

00:23:21
KT: advisor is

00:23:22
Suze: pushing and pushing it is seriously

00:23:25
KT: because they need money

00:23:27
Suze: on the commission and

00:23:29
KT: whole life.

00:23:30
Suze: Universal

00:23:31
KT: life and

00:23:32
Suze: variable life insurance

00:23:33
KT: policies

00:23:34
Suze: are some of the

00:23:35
KT: highest commission items

00:23:38
Suze: anybody

00:23:39
KT: can sell

00:23:40
Suze: you

00:23:40
Suze: the

00:23:40
KT: whole life could have a

00:23:42
Suze: 90

00:23:43
KT: percent commission

00:23:44
Suze: on the premiums

00:23:45
KT: that you're going to pay the

00:23:46
Suze: first year. Don't you dare do this? Don't you

00:23:49
KT: dare do this. Don't

00:23:50
Suze: you dare do this, calm down,

00:23:54
Suze: calm down. Ready. This is from dana. And I love this question.

00:24:00
Suze: Hi Katie and Susie. I've been following you for many years. My husband plans to retire in four years. What should he do with his four oh one K. So he doesn't lose his money till then. He has 480,000 and 90% is in a stable value fund

00:24:20
Suze: 10% in the stock market.

00:24:22
Suze: He's still contributing to his 401K. But he's nervous about the stock market and losing his money right before retiring.

00:24:32
Suze: Should he be in the stock market and perhaps dollar cost average or just hold 90% in the stable value fund until he retires. The reason I like this is that dana. Why didn't he write to Susie and ask this? I could tell that dana, you're the one that's guiding him. So

00:24:51
Suze: Susie what should her husband do? So as

00:24:54
KT: you all know

00:24:55
Suze: I think this is going to be an incredibly rocky year for the stock market. I think that we will

00:25:01
KT: go into recession

00:25:02
Suze: by the end of the year,

00:25:03
KT: who knows what's going to happen in

00:25:05
Suze: 2023.

00:25:07
KT: So at this

00:25:09
Suze: point however he

00:25:10
KT: might just want to

00:25:11
Suze: stay exactly where he is.

00:25:14
Suze: He has only 10% in the

00:25:16
KT: stock market. I'm

00:25:17
Suze: not exactly sure what you are invested in your stable

00:25:21
KT: value fund.

00:25:22
Suze: But even though we may go

00:25:24
KT: down

00:25:25
KT: eventually in two

00:25:27
Suze: or three years,

00:25:28
KT: it should come

00:25:29
Suze: back and we should be okay

00:25:30
KT: maybe five years

00:25:31
Suze: at most. So

00:25:33
KT: the timing may

00:25:33
Suze: be good for him to stay where he is.

00:25:37
KT: But

00:25:38
KT: if

00:25:38
Suze: he's nervous and he's not liking it, he needs to know that if he comes out now

00:25:45
Suze: he's not going to be able to go

00:25:47
KT: back in. You cannot time the market.

00:25:50
KT: So it is very possible that we could

00:25:53
Suze: keep an eye on it. Right.

00:25:54
KT: Well no, it's possible. Katie, these markets could go down another 20 or 30% from here. Absolutes possible. Everybody.

00:26:02
Suze: But if you

00:26:03
KT: keep dollar cost

00:26:04
Suze: averaging in

00:26:05
KT: and if you

00:26:06
Suze: look at the stocks that

00:26:08
KT: you have

00:26:09
KT: and if your funds and or stocks are only down maybe 10% or so,

00:26:16
KT: then okay, not so bad.

00:26:18
KT: But if you're down 40 or 50% and you need the money you've got to make a change

00:26:25
KT: next time. Have him right in to dana. Okay.

00:26:29
Suze: Next question is from Debbie.

00:26:32
Suze: Hi, Susie when I retired two years ago I rolled my four oh one K. Into the franklin income fund. I'm not good with risk. So this market has really taken a toll on my nerves. Besides an annuity is there's some investment I can roll this into without paying taxes on it.

00:26:52
Suze: So Debbie, if you're concerned about your money,

00:26:55
Suze: I'm sure that you did an ira rollover with it at some brokerage firm.

00:27:00
KT: And within that

00:27:01
Suze: ira rollover

00:27:03
KT: you could buy if you wanted to

00:27:05
KT: Treasury bills or Treasury notes or something like that

00:27:09
KT: that could mature in two or three years and you would be safe and sound during this thing. However,

00:27:16
KT: the franklin income

00:27:18
Suze: fund hasn't

00:27:19
KT: done that bad. I think it's down.

00:27:21
KT: Oh

00:27:21
Suze: I don't know. I'm just going to

00:27:22
KT: guess but I have a feeling about 2.5% so far

00:27:26
Suze: this year. Not

00:27:27
KT: so bad.

00:27:28
KT: And it's yielding you almost 5%.

00:27:32
KT: Pretty good.

00:27:33
KT: The reason that I might say you want to stay

00:27:36
Suze: in it believe it or not,

00:27:38
KT: is that your financial advisor sold you a loaded mutual fund.

00:27:44
KT: So you've already paid the load and the load on it was probably 3.75%.

00:27:52
KT: So that means whatever amount of money you gave him or her,

00:27:57
KT: They made 3.75% on that money. You

00:28:03
Suze: already paid

00:28:04
KT: it

00:28:05
KT: now. The ongoing

00:28:06
Suze: expense ratio for most franklin

00:28:08
KT: funds. So I

00:28:09
Suze: imagine that's true for this fund as well

00:28:12
KT: is about

00:28:13
Suze: 0.62

00:28:14
KT: 1%. Not so bad.

00:28:16
Suze: Not great,

00:28:17
Suze: but not so bad.

00:28:20
KT: So you're already

00:28:21
Suze: in this,

00:28:22
KT: you already

00:28:23
Suze: paid a

00:28:24
KT: load to

00:28:25
Suze: be in it.

00:28:27
KT: So

00:28:27
Suze: at this

00:28:28
KT: point, given

00:28:29
Suze: that it's kind of stayed

00:28:30
KT: pretty good over

00:28:32
Suze: this down hall,

00:28:33
KT: you might want

00:28:34
Suze: to look into it and talk to your financial advisor and maybe

00:28:37
KT: just stay

00:28:38
Suze: put right there.

00:28:41
KT: So he gave

00:28:42
Suze: her some good advice. Well, I there were other ways she could have bought income funds without having to

00:28:47
KT: Pay the 3.7

00:28:48
Suze: 5%. But that's the Katie.

00:28:50
KT: I don't like

00:28:51
Suze: loaded mutual funds. I'm never

00:28:53
KT: gonna like loaded mutual funds. And that's just how I have one

00:28:57
Suze: more question from Doug and lisa.

00:28:59
KT: That's it.

00:29:00
KT: Mm

00:29:00
Suze: hmm. Actually this is from Doug. So Doug's making

00:29:03
KT: sure we have time for

00:29:04
Suze: it. Yeah, I like this. Yeah, I like this question. Hi. Suzy. Hope you're doing well. I came across an article online that talked about a once in a lifetime transfer from your Ira account to your H. S. A. Account. So what's your advice? I'm moving some money from an ira to an H. S. A. Do it, do it, do it from the tax saving point of view. This appears to be a good thing to

00:29:31
KT: do. So do

00:29:32
Suze: it. Do it. Do it. Doug. Do it. Doug do it. Doug. Doug. Here's what

00:29:37
KT: you need to know what you read is correct.

00:29:40
KT: You have the ability once in your lifetime to take money that you have in a traditional ira. You never pay taxes on it

00:29:51
KT: and take that money and put it into what health savings account

00:29:57
Suze: which goes

00:29:58
KT: along with a high deductible insurance

00:30:01
Suze: plan.

00:30:02
Suze: Now if you do

00:30:04
KT: that you

00:30:05
Suze: now have it in a

00:30:06
KT: health savings

00:30:07
Suze: account

00:30:08
Suze: and

00:30:09
KT: you can invest

00:30:10
Suze: it there if you want

00:30:11
KT: to

00:30:12
Suze: and if you use it for a qualified

00:30:15
KT: medical

00:30:16
Suze: expense it's tax

00:30:18
KT: free.

00:30:19
KT: So think

00:30:20
Suze: about that.

00:30:21
KT: You can get a

00:30:22
Suze: tax deduction because you put it into an I. R. A. Now it's going

00:30:26
KT: into your H. S. A. And

00:30:28
Suze: when you use it it's tax

00:30:29
KT: free. Fabulous.

00:30:31
Suze: Fabulous.

00:30:32
KT: However there's a

00:30:33
Suze: maximum that you can

00:30:36
KT: roll this

00:30:37
Suze: year or transfer

00:30:38
Suze: if you're

00:30:39
KT: single.

00:30:39
KT: It's 3000

00:30:40
Suze: $650 for the 2022 limit or

00:30:45
KT: 73

00:30:46
Suze: $100. Because if you are married or have a family then

00:30:50
KT: it's 73

00:30:51
Suze: $100 is the maximum that you can put in

00:30:54
KT: unless you

00:30:56
Suze: are 55 or

00:30:58
KT: older.

00:30:59
Suze: And if you are you can add

00:31:01
KT: $1,000 to those

00:31:03
Suze: two numbers I just gave

00:31:04
KT: you either way

00:31:06
Suze: you should max out

00:31:08
KT: to the most. You can possibly

00:31:10
Suze: do. It's a fabulous thing.

00:31:13
KT: Do it.

00:31:14
Suze: Alright. Susie. That's a wrap. So we don't have an ending cuisine for you. We did my cuisine

00:31:19
Suze: and I got a Ding Ding Ding. I did good on

00:31:22
KT: that.

 

00:31:23
Suze: Alright so I have a made up quiz.

00:31:25
KT: E that I'm giving you

00:31:26
Suze: on the spot. Alright. Go for it. I can do

00:31:31
KT: it positive.

00:31:32
Suze: I my face my fear every day with these quizzes. Go for it. All

00:31:36
KT: right. This is

00:31:37
Suze: from Susie.

00:31:41
Suze: She seems to know a little bit about money.

00:31:44
KT: She

00:31:44
Suze: wants to know

00:31:46
KT: does Katie

00:31:46
Suze: know

00:31:48
Suze: that if

00:31:51
KT: Katie buys a

00:31:52
Suze: series I bond,

00:31:55
Suze: when can she touch

00:31:57
KT: the money? And

00:31:58
Suze: how much will it cost her to do? So? I cannot touch it for at least a year after it was purchased

00:32:06
Suze: zero and then I can touch it after

00:32:09
KT: that.

00:32:11
Suze: For how

00:32:11
KT: much?

00:32:12
KT: Please Katie do

00:32:14
Suze: not do

00:32:14
KT: This to me. Come on, come on. The whole the whole podcast community is rooting for you. Years 2-5. What is it going to cost?

00:32:25
KT: Come on, please. I'm begging you.

00:32:28
KT: Police. You're joking. Right.

00:32:31
KT: Come on kate. Goodbye. Everybody be safe. Strong and secure. Really?

00:32:41
KT: Really? You don't know the answer. No,

00:32:43
Suze: I I do know the

00:32:44
KT: answer.

00:32:45
KT: 33 what?

00:32:50
KT: 3% of what?

00:32:53
Suze: What do you mean? Of what?

00:32:54
KT: It's not 3%? It's a three what? Month?

00:32:57
Suze: 3%?

00:32:59
KT: I'm gonna die. I'm gonna die. I just want you all know that. Can you All right in and give her some help here, Katie? It's a three month

00:33:09
Suze: Interest penalty. Years 2 to

00:33:10
KT: five,

00:33:12
KT: 3%

00:33:14
Suze: penalty. So,

00:33:15
KT: You know, it's not a 3% penalty. It's a three month interest penalty.

00:33:19
Suze: It's a three-month interest penalty from years 2-5. That's what you have to give up. That's what you that's what you're dinged with for taking some money out.

00:33:29
KT: Did you really not know that? I

00:33:31
Suze: know I did know that we've gone through it last last week, This week. Sunday. I mean this is like one of my nightmares.

00:33:42
Suze: That's a nightmare quiz. E ding Ding, ding, ding, ding ding. Alright, everybody. Until next sunday. Right. Be safe, be strong and most will be secure. And can you just

00:33:55
KT: know how I bonds work? Can you do that for

00:33:57
Suze: me? Everybody alright by you later?


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