Latest / Suze Orman's Women & Money (And Everyone Smart Enough To Listen) / Can I Transfer From an Inherited IRA to My Roth?

Transcript

Can I Transfer From an Inherited IRA to My Roth? · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:08
  KT: Welcome everyone to the Women and Money podcast, and everyone's
• 0:11
  KT: smart enough to listen.
• 0:12
  Suze: What's the date, KT?
• 0:13
  KT: It is March 12th, and Suze is in a state of..
• 0:18
  Suze: Let me tell you, everybody, let me just tell you
• 0:21
  Suze: how this podcast started.
• 0:24
  KT: She brought the wrong pen.
• 0:25
  Suze: Wait, let me tell you this. All right, so we
• 0:28
  Suze: sit down and she looks at me, she says, I
• 0:31
  Suze: don't like this pen. Get me another pen.
• 0:33
  KT: No, I want the blue pen.
• 0:35
  Suze: All right, so I go, OK.
• 0:37
  KT: And she comes back...
• 0:39
  Suze: I come back with a...
• 0:40
  KT: A red pen. I said, No, Suze, I want the
• 0:43
  KT: blue one. Where is it? I said, there's blue pens everywhere.
• 0:46
  KT: Find the blue one. She said, You get up and
• 0:48
  KT: get it. I said, No, I'm ready.
• 0:51
  Suze: So in the meantime, I get her a blue pen.
• 0:54
  Suze: OK, I bring it back to her and now she's happy.
• 0:58
  Suze: We're about to start and she says, get those papers
• 1:00
  Suze: off the desk.
• 1:01
  KT: No, organize yourself. She has too much clutter. Suze is clutter.
• 1:08
  Suze: I'm not clutter. I have a, a webinar after this with...
• 1:13
  KT: The Queen of clutter...
• 1:14
  Suze: With Humana, and it's important. It's a big one hour webinar.
• 1:19
  Suze: It's live, so I have
• 1:21
  Suze: all these notes about their retirement plans and everything, and
• 1:26
  Suze: now she's made me clear everything because it irritates her
• 1:30
  Suze: to see it.
• 1:31
  Suze: Are you OK now?
• 1:33
  KT: I'm ready to go. OK, everyone, March 12th, let's rock and roll.
• 1:38
  Suze: Wait, wait, and then you know what she says to me earlier, Suze,
• 1:41
  Suze: you know how I know today is March 12th.
• 1:46
  KT: No, she sat down and said.
• 1:48
  KT: Now what's today? I said March 12th because tomorrow's Friday
• 1:52
  KT: the 13th. Do you believe that's an auspicious, unlucky day?
• 1:57
  Suze: What does that mean?
• 1:58
  KT: Do you believe in that Friday the 13th?
• 2:01
  Suze: Is an auspicious unlucky day. There's no such thing as... (laughgs)
• 2:08
  KT: Do you think it's a... (laughs)
• 2:11
  KT: Wait, do you think it's auspicious or unlucky?
• 2:14
  Suze: I think I don't care. I don't know.
• 2:18
  KT: All I know is that Friday the 13th.
• 2:22
  Suze: Is what?
• 2:22
  KT: Taylor Swift's favorite day. OK, here we go. March 12...
• 2:28
  Suze: Did I not tell you, all of this is gonna be very difficult..
• 2:31
  KT: My first, my first reading is from Stacy, but it's
• 2:34
  KT: not a question. It's a heartfelt thank you.
• 2:38
  Suze: Oh good.
• 2:39
  KT: So here we're gonna open with a heartfelt thank you, Suze.
• 2:41
  KT: Stacy said, hi Suze and KT. I wanted to send
• 2:45
  KT: you a quick thank you. You're gonna love what she
• 2:48
  KT: has to say. I recently published a book called Project
• 2:52
  KT: Us about a married couple rediscovering each other after their
• 2:57
  KT: daughter leaves for college.
• 3:03
  KT: It almost sounds like an X-rated book. They're rediscovering each other,
• 3:06
  KT: she said, while writing it, I kept thinking about the cute,
• 3:10
  KT: silly love you two share with the world. That means
• 3:13
  KT: you and me, Suze. The playful, teasing partnership, and obvious
• 3:18
  KT: respect you have for each other definitely helped inspire the
• 3:23
  KT: tone of the relationship in the story. So Stacey is...
• 3:28
  Suze: Do we get royalties?
• 3:29
  KT: I was gonna say like Stacy.
• 3:31
  KT: She said she's a brand new author and just wanted
• 3:34
  KT: to say our love is contagious. Thanks, Stacy. Good luck
• 3:39
  KT: with "Us."
• 3:42
  KT: Wasn't there a TV show called Us?
• 3:45
  Suze: I think there's a very famous one, something Us. Now, KT,
• 3:49
  Suze: are we gonna be able to keep it together?
• 3:51
  KT: I'm together. I'm ready.
• 3:53
  Suze: Wait, but I have to... because I wanna tell a
• 3:55
  Suze: little story. Can I just do that? All right.
• 3:58
  Suze: Yesterday we go into Lowe's. Not a big deal. Wait,
• 4:03
  Suze: we go into Lowe's and...
• 4:05
  KT: Suze never ever goes into any stores. When we go
• 4:10
  KT: out together, she waits for me in the car. I
• 4:13
  KT: shouldn't be giving so much information. People are gonna go
• 4:16
  KT: driving around parking lots looking for you.
• 4:18
  Suze: So this time she says, Won't you please?
• 4:21
  KT: I say, come in with me, Suze, please.
• 4:22
  Suze: I go, OK, KT.
• 4:25
  Suze: Right, so I go into Lowe's and we're looking for
• 4:28
  Suze: this stupid umbrella stand.
• 4:29
  KT: We're looking for an umbrella stand and we're in an
• 4:31
  KT: aisle in the umbrella department and there's no one to
• 4:35
  KT: help us.
• 4:36
  Suze: So this man, she goes and gets this man. He
• 4:39
  Suze: comes up and he's helping us and he goes, You
• 4:42
  Suze: look like Suze Orman. And I say, I am Suze Orman.
• 4:46
  Suze: And he goes, He's like, right.
• 4:47
  KT: He didn't believe her.
• 4:48
  Suze: He refused to believe me.
• 4:50
  KT: And I didn't have my phone to show and she
• 4:52
  KT: didn't have a phone. We left it in the car.
• 4:53
  Suze: I never carry my phone with me out there. So,
• 4:56
  Suze: so I said, Do you see these earrings? I always
• 4:58
  Suze: have these earrings on. See my necklace? That's how you
• 5:01
  Suze: know it's really me. He said, Yeah, right. He refused,
• 5:05
  Suze: and I said, OK, no problem. So now we go
• 5:10
  Suze: to another part of the store because what he gave
• 5:13
  Suze: us wouldn't work. We were trying to find another solution
• 5:17
  Suze: to this umbrella problem we were having. But anyway, so
• 5:21
  Suze: we go to this other part...
• 5:24
  KT: He's this really big guy in the, in the aisle. Huge.
• 5:26
  Suze: And he says to me, you look like Suze Orman.
• 5:32
  Suze: And I go, That's because I am Suze Orman. And
• 5:34
  Suze: he goes, No, you're not. Oh, no way. I said,
• 5:36
  Suze: what would Suze Orman be doing in doing in this aisle?
• 5:39
  Suze: There is no way that you would be in Lowe's.
• 5:43
  Suze: And then he calls over
• 5:44
  Suze: this other guy, and he says, does that look like
• 5:47
  Suze: Suze Orman to you? And he goes, I don't know
• 5:49
  Suze: who she is. I don't know Suze Orman.
• 5:52
  KT: And he said, she's like the most famous money lady in the world.
• 5:54
  KT: And the guy looked at him and he said, What
• 5:57
  KT: do I know about money? I just use my phone.
• 5:59
  Suze: All right, so anyway, so now I'm like, OK, no problem.
• 6:03
  Suze: Now we start walking out.
• 6:05
  Suze: And one by one people were looking at me wondering,
• 6:10
  Suze: I can tell when this happens, wondering, are you Suze Orman?
• 6:14
  Suze: And I just looked at them and I said, no,
• 6:16
  Suze: I'm not. That was that anyway.
• 6:20
  KT: That was quite an adventure.
• 6:23
  Suze: I never going into Lowe's again.
• 6:24
  KT: She never comes with me anywhere, but I was happy she did.
• 6:28
  Suze: Remember the days when I used to go in with you?
• 6:31
  KT: Oh, we would never get anything done. Everyone would ask
• 6:34
  KT: her questions, shake her hand. Can I take a photo
• 6:38
  KT: with you? And Suze's very respectful and loves her audience,
• 6:42
  KT: loves her fans, loves people, and she'd always accommodate them
• 6:46
  KT: and forget what, what I, that I was there.
• 6:48
  Suze: You are just mincemeat. All right, we should get to
• 6:51
  Suze: the podcast, I think.
• 6:52
  KT: OK, here is my first question from Teresa. She said, Hi, Suze.
• 6:58
  KT: My sister unexpectedly passed away in 2016. I inherited her IRA,
• 7:06
  KT: and I still have RMDs that are distributed.
• 7:10
  KT: Can I transfer from this IRA into a Roth?
• 7:15
  Suze: So you cannot, just so you know, you cannot take
• 7:19
  Suze: an inherited IRA and convert it or transfer it to
• 7:24
  Suze: a Roth. It cannot happen. You have to take required
• 7:29
  Suze: minimum distributions from it.
• 7:31
  Suze: And you have to pay ordinary income taxes on it.
• 7:35
  Suze: You cannot take the RMDs, by the way, which many
• 7:39
  Suze: of you think you can, and directly put them in
• 7:43
  Suze: a Roth account. You cannot because you have to have
• 7:48
  Suze: earned income.
• 7:50
  Suze: So you can take the RMDs and if you happen
• 7:53
  Suze: to have earned income because now it is your money,
• 7:57
  Suze: you could use that money to fund a contributory Roth,
• 8:02
  Suze: but you can't just put them directly in there. You
• 8:05
  Suze: cannot do that. Next question, my dear love bug.
• 8:10
  KT: This is from Sonja. Hello, Suze and KT. I'm maxing
• 8:14
  KT: out my Roth 403B and Roth IRA contributions. Between these
• 8:19
  KT: rent and bills, I don't have much money left over
• 8:23
  KT: at the end of the month. Is it OK to
• 8:26
  KT: plan to use my Roth contributions as my emergency fund?
• 8:31
  KT: I am single, 59, have no debt, and live a
• 8:36
  KT: fairly frugal lifestyle. What do you think?
• 8:40
  Suze: Pop quizzy.
• 8:41
  KT: Hm.
• 8:44
  KT: I don't have much at the end of the month,
• 8:46
  KT: OK to use my Roth contributions...
• 8:49
  Suze: As an emergency fund.
• 8:51
  Suze: Hmm.
• 8:53
  Suze: Come on, we don't have much time. Tick tick tick
• 8:56
  Suze: tick tick tick tick tick tick tick.
• 8:58
  KT: No.
• 8:58
  Suze: It's not OK. All right, so it is absolute... (Suze makes the wrong answer noise)
• 9:06
  Suze: You missed that, didn't you? You just missed that. Yeah,
• 9:09
  Suze: I knew you did it. Listen to me, Sonja. Not
• 9:12
  Suze: only is it OK, I have been telling people forever,
• 9:17
  Suze: if you do not have at least a twelve-month emergency fund.
• 9:22
  Suze: I don't want you to miss the opportunity of being
• 9:25
  Suze: able to fund a Roth, cause you can only fund
• 9:29
  Suze: a Roth every year up to a max, and then
• 9:31
  Suze: you've lost that year if you haven't funded it. Because
• 9:36
  Suze: you can withdraw your original contributions any time you want
• 9:40
  Suze: without taxes or penalties regardless of age or how long
• 9:44
  Suze: the Roth has been open.
• 9:46
  Suze: You could take your emergency fund money, contribute it to
• 9:51
  Suze: a Roth, keep it in a money market account, savings account,
• 9:55
  Suze: whatever it is within the Roth. Do not invest it
• 10:00
  Suze: and let it build and build and build. If you
• 10:03
  Suze: happen
• 10:04
  Suze: to need it, you can withdraw it just that simple.
• 10:08
  KT: All right. OK, from David. Hi Suze and KT retired
• 10:12
  KT: at 62, wife 63, will be pulling out $75,000 a
• 10:19
  KT: year for living expenses. Now he said brokerage account balance $510,000.
• 10:26
  KT: Roth, 710,000. IRA 1,300,000, good for him.
• 10:34
  KT: Are we better pulling out living expenses from a brokerage
• 10:37
  KT: account and doing a Roth conversion for that amount, or
• 10:42
  KT: should we pull that amount out of our IRA and
• 10:45
  KT: not do a Roth conversion? Thanks for your help.
• 10:48
  Suze: Me, I would absolutely pull it out of my IRA. Why?
• 10:52
  Suze: Because the more you can get out of your IRA
• 10:55
  Suze: right now, live on it, pay taxes on it, because
• 10:58
  Suze: you'd have to pay taxes on it anyway if you
• 11:00
  Suze: converted it, and you're living on it.
• 11:03
  Suze: The more you let your Roth grow tax-free, the more
• 11:07
  Suze: you let your investment account grow tax deferred, possibly tax-free
• 11:12
  Suze: to the surviving spouse if one of you dies. So
• 11:15
  Suze: I would absolutely withdraw it from my taxable IRA and live on it.
• 11:20
  KT: He's got 1.3 in. Next is Sheila. She said, Suze, if
• 11:24
  KT: my sister is on all of my accounts and can
• 11:27
  KT: access the money, why do I need a revocable trust?
• 11:31
  KT: I'm a retired educator 76 years old with a teacher
• 11:35
  KT: pension and very small assets. I own my own home,
• 11:39
  KT: no mortgage in a city, and can pay for everything
• 11:43
  KT: so far. Thank you, Sheila.
• 11:46
  Suze: Did you notice the word so far? Oh, you did
• 11:49
  Suze: notice it. All right, so Sheila, listen to me and
• 11:52
  Suze: listen to me closely. You are an educator.
• 11:56
  Suze: Haven't you learned the lesson yourself that things can happen
• 12:00
  Suze: to anybody at any time. If all of a sudden
• 12:04
  Suze: you become incapacitated.
• 12:08
  Suze: And hey, you don't find that a problem whatsoever cause
• 12:11
  Suze: she's on your home title with you, but you need
• 12:14
  Suze: to sell the house, can you? No. Why? Because if
• 12:19
  Suze: you own it and join tenancy with her, then both
• 12:23
  Suze: of you have to sign in order to sell.
• 12:27
  Suze: If you're incapacitated, you can't sign. So now she's going
• 12:31
  Suze: to have to declare you incompetent, get a conservatorship for you. Oh,
• 12:35
  Suze: now she has problems from that point on. If you
• 12:39
  Suze: simply had a living revocable trust that was just in
• 12:43
  Suze: your name, Sheila, trustee for the Sheila revocable Trust dated
• 12:48
  Suze: whenever you created it.
• 12:50
  Suze: And your sister was the successor trustee, the one who
• 12:55
  Suze: would make the decisions if you couldn't make them yourself,
• 12:59
  Suze: as well as the successor beneficiary, so everything is held
• 13:03
  Suze: for your benefit while you're alive and her benefit after
• 13:08
  Suze: you have died.
• 13:09
  Suze: It wouldn't go through probate, so you don't have to
• 13:12
  Suze: worry about that, and you don't have to worry in
• 13:16
  Suze: case something happens. And now she's incapacitated and she no
• 13:21
  Suze: longer can sign for you or do anything. You now
• 13:25
  Suze: have her on all your accounts. She's not capable of
• 13:28
  Suze: taking care of you if something happens to you. Who's
• 13:31
  Suze: going to do that for you, Sheila? Who?
• 13:34
  Suze: You have to understand that.
• 13:37
  Suze: What's really important and the reason why I have been
• 13:41
  Suze: harping on the fact that every single one of you
• 13:45
  Suze: should have a revocable living trust, in my opinion, for
• 13:48
  Suze: the past almost 40 years, are you kidding me, is
• 13:53
  Suze: because I've seen what happens when you don't. Now maybe
• 13:58
  Suze: it will go great for you. Maybe there'll be no problems,
• 14:02
  Suze: but maybe there will be. Go to
• 14:05
  Suze: MustHave docs.com. Everybody, you can get the four must-have documents
• 14:10
  Suze: for what? For $99. $2,500 worth of state of the
• 14:14
  Suze: art documents that you can share with your sister Sheila
• 14:18
  Suze: so she can have them as well. Next question, KT.
• 14:22
  KT: OK, this is from Ashley. She said, Hi, Suze. I'm
• 14:25
  KT: a 63-year-old widow who recently was laid off from a
• 14:29
  KT: $100,000 a year job.
• 14:32
  KT: And she said, I'm now making $60,000. Half of that
• 14:36
  KT: is Social Security. I can survive on this. I have
• 14:40
  KT: no debt. I own my condo, car, etc. I have
• 14:44
  KT: $800,000 in investments, and my condo is worth half a
• 14:49
  KT: million dollars. And now Ashley said she has a dilemma.
• 14:53
  KT: Should I move to another state to live with and
• 14:56
  KT: take care of my 87 year old mom in her home?
• 15:01
  KT: I honestly don't want to go back to my hometown,
• 15:03
  KT: but financially it would be amazing. I could invest most
• 15:08
  KT: of my income while living there. Also, my mother has
• 15:12
  KT: a lot of money.
• 15:14
  KT: This part really made me laugh and reminds me that
• 15:18
  KT: my inheritance may be spent if she moves to a
• 15:22
  KT: retirement home.
• 15:24
  KT: Good on you, mama. I'm afraid I won't have enough
• 15:27
  KT: to retire on and feel pressure to go. Suze, I
• 15:30
  KT: would love to hear your thoughts on this. What do
• 15:33
  KT: you think?
• 15:33
  Suze: KT, what would you tell her?
• 15:35
  KT: I'd say if, well, first of all, she said she
• 15:38
  KT: just doesn't want to go back to her hometown, but
• 15:40
  KT: living with her mom financially would be amazing.
• 15:44
  KT: She didn't say anything about I'd love to go back
• 15:47
  KT: and take care of Mommy. She didn't say that. She's
• 15:51
  KT: a little selfish, Ashley. You're thinking about yourself and your
• 15:55
  KT: mom is...
• 15:55
  Suze: KT, that is not necessarily selfish.
• 15:57
  KT: All right, well, that, I, I like, she's being honest,
• 16:01
  KT: but I also like that her mom is being honest
• 16:03
  KT: and kind of threatening her.
• 16:05
  Suze: Yeah, well, that would make me not wanna go.
• 16:07
  KT: Well, I think that she should do it. Just go
• 16:10
  KT: and try it, but I think she's looking for a way.
• 16:14
  KT: To save a whole lot of money right now.
• 16:17
  Suze: All right, so here's what...
• 16:18
  KT: She's 63.
• 16:20
  Suze: So here's what I would tell you, Ashley.
• 16:24
  Suze: Once you do this, it's done. You're gonna be there,
• 16:27
  Suze: all right? So, I would give it time. If it
• 16:31
  Suze: is true that you can live on the $60,000 a year,
• 16:37
  Suze: no problem, and let the $800,000 in investments grow, plus
• 16:44
  Suze: your condo is worth $500,000 and you own it outright.
• 16:49
  Suze: Right, your car and everything you own outright, you have
• 16:53
  Suze: $1.3 million that is growing and growing, that could easily
• 17:00
  Suze: generate for you, besides your pension and everything, another $50,000, $70,000,
• 17:06
  Suze: possibly $80,000 as you get older. If you had to,
• 17:10
  Suze: you could do a reverse mortgage... There's all kinds of things
• 17:12
  Suze: that you could do.
• 17:16
  Suze: So, I do not want you to go back.
• 17:20
  Suze: And live at your mother's because of the money you
• 17:23
  Suze: could save, uh uh.
• 17:26
  Suze: She'll feel that. You'll feel it. You'll start to regret it.
• 17:31
  Suze: I would want you to go back because you wanna
• 17:34
  Suze: spend time with your mom. You wanna be able to
• 17:38
  Suze: help her during her later years.
• 17:44
  Suze: But if you don't have that kind of relationship with her.
• 17:49
  Suze: I'm sorry, it's not enough then for you to go
• 17:52
  Suze: back because she'll end up being miserable as well. And
• 17:57
  Suze: if she has a lot of money and she can
• 18:00
  Suze: afford it, she can hire caretakers, she can do whatever
• 18:04
  Suze: she wants, you can live your life, you can go
• 18:06
  Suze: visit her, you could leave, and all of that. Now,
• 18:10
  Suze: I'm gonna be really honest with you.
• 18:13
  Suze: There is no way that I personally could have moved in, really, KT,
• 18:18
  Suze: you know this is true, to take care of my
• 18:21
  Suze: mother if I needed money, whatever, I still couldn't have
• 18:26
  Suze: done it because I didn't have that kind of relationship
• 18:30
  Suze: with her at the very end. I loved her very much,
• 18:35
  Suze: but I could not have done it. KT, on the
• 18:37
  Suze: other hand, absolutely could have done it.
• 18:42
  Suze: And thank God I had the money, Ashley, to provide
• 18:47
  Suze: that for my mother, to give her full-time aides, to
• 18:50
  Suze: make sure she was comfortable, to go and visit her
• 18:54
  Suze: when I could. Your mother's taken care of that for herself,
• 19:00
  Suze: so if I were you, I have to tell you,
• 19:03
  Suze: I would stay exactly where I am. People first. That
• 19:08
  Suze: means you, Ashley.
• 19:11
  Suze: Then money, then things. You would only be going there
• 19:16
  Suze: for money and to get a big inheritance wrong in
• 19:21
  Suze: my opinion. Next question, KT.
• 19:23
  KT: OK, this is from Sue.
• 19:25
  KT: Sue said my friend aged 70, most recently attended an
• 19:30
  KT: elder seminar, so this is what her friend was told.
• 19:34
  KT: If you have a revocable trust, the five-year look back
• 19:38
  KT: for Medicaid paid to long-term care does not count. There
• 19:43
  KT: needs to be at least five years where your assets
• 19:46
  KT: are in an irrevocable trust, right?
• 19:51
  KT: So now, well, she's just asking Suze,
• 19:54
  Suze: I'm not mad at her.
• 19:55
  KT: Please do a Suze Orman school on the topic. We
• 19:58
  KT: need expert advice before some salesman wanting money leads us
• 20:02
  KT: down the wrong path.
• 20:04
  Suze: Let's do... just do a really quick Suze School here.
• 20:08
  Suze: What is the Medicaid five-year look back?
• 20:12
  Suze: When someone applies for Medicaid to pay for long-term care
• 20:17
  Suze: such as a nursing home, the government looks back five
• 20:20
  Suze: years from the date of the application because they want
• 20:25
  Suze: to review all transfers, KT of your money to make
• 20:29
  Suze: sure that you didn't give it all away right away,
• 20:32
  Suze: right before this happened just so you could qualify for
• 20:35
  Suze: Medicaid if you gave money away.
• 20:40
  Suze: Property or moved assets into certain trusts during that five
• 20:45
  Suze: year window, Medicaid may impose a penalty period, KT, where
• 20:52
  Suze: they will not pay for care. Everybody needs to know that.
• 20:56
  Suze: So the five year look back is real, but here
• 21:00
  Suze: is the important part.
• 21:02
  Suze: Many seminar presenters like this one throw around the word
• 21:08
  Suze: trust without really explaining the difference between a revocable and
• 21:13
  Suze: an irrevocable trust.
• 21:15
  Suze: The truth is, in a revocable living trust you still
• 21:20
  Suze: own and control the assets. You can change or revoke
• 21:24
  Suze: it any time because you still control it. Medicaid counts
• 21:29
  Suze: those assets as yours. A revocable trust does not protect
• 21:36
  Suze: assets from Medicaid. That is true. That is not why
• 21:40
  Suze: you get a revocable trust.
• 21:43
  Suze: However, an irrevocable trust. Once your assets are placed into it,
• 21:50
  Suze: they're no longer yours, everybody. You generally cannot take them back,
• 21:56
  Suze: and because of that loss of control, those assets may
• 22:00
  Suze: not count towards Medicaid eligibility after the five year look back,
• 22:05
  Suze: but that isn't what you want to do. That's not
• 22:09
  Suze: how you want to live your life, everybody.
• 22:14
  Suze: Also, when you have something, when you have assets, KT
• 22:17
  Suze: in an irrevocable trust, again, you can't change it, you
• 22:21
  Suze: lose access to it, and it the rules vary by state. So,
• 22:26
  Suze: here's the thing, you are not to listen to that,
• 22:31
  Suze: because the goal is not for you to protect your money.
• 22:36
  Suze: So that you end up in a nursing home on Medicaid.
• 22:40
  Suze: Do you have any idea the difference between care on
• 22:44
  Suze: Medicaid and care as a private patient?
• 22:47
  Suze: If this person had any integrity, they would have said,
• 22:52
  Suze: you should look into getting a long-term care insurance policy,
• 22:57
  Suze: or let's protect your money in terms of investing it
• 23:01
  Suze: so that you have enough money to pay privately if
• 23:04
  Suze: you happen to go into a nursing home, but you
• 23:08
  Suze: do not want to go into a Medicaid situation.
• 23:13
  Suze: To go into a Medicaid, I just have to say
• 23:15
  Suze: one last thing, to go into a Medicaid payment, you
• 23:19
  Suze: have to go into a Medicare approved nursing home, and
• 23:24
  Suze: little by little, they are getting rid of those cause
• 23:28
  Suze: they don't wanna have to pay for you. So don't
• 23:32
  Suze: lose control over your money simply so that the five-year
• 23:36
  Suze: lookback period may get you.
• 23:39
  Suze: No, if you spend down all your money to take
• 23:42
  Suze: care of yourself, OK, then you go into Medicaid legitimately,
• 23:46
  Suze: but don't go hiding your money just so you get
• 23:50
  Suze: to go on Medicaid. All right, go on, KT.
• 23:55
  KT: So Suze, my last question is from Robbie B.
• 23:59
  KT: I love this Robbie B. I'm a 48-year-old female who
• 24:03
  KT: is currently employed. My question is how much of my
• 24:06
  KT: savings should be placed in a high yield dividend account.
• 24:12
  KT: In approximately ten and a half years when I retire
• 24:15
  KT: from my current employer, I will be collecting a pension
• 24:19
  KT: as well as money in a deferred compensation account.
• 24:24
  KT: And then she said, I'm just concerned I have too
• 24:26
  KT: much money in my high yield dividend account rather than
• 24:30
  KT: having more in my regular savings account through my bank.
• 24:34
  KT: Is it too much of a gamble? So what would
• 24:37
  KT: you tell Robbie B?
• 24:38
  Suze: Robbie B, I can tell you that how could you
• 24:42
  Suze: even think
• 24:43
  Suze: about having any money at a savings account in a
• 24:47
  Suze: bank paying you what? 0.9% of that? Like what are
• 24:52
  Suze: you talking about? You are 48 years of age. As
• 24:57
  Suze: long as you have a 12 month emergency fund somewhere,
• 25:01
  Suze: hopefully
• 25:03
  Suze: where it makes sense, at Alliant Credit Union, at a
• 25:07
  Suze: money market account at a brokerage firm, wherever you want
• 25:10
  Suze: to put it, paying you the highest possible interest rate,
• 25:14
  Suze: but not at a bank. That is what should be
• 25:18
  Suze: keeping you up at night, number one. Number two, you
• 25:22
  Suze: are 48.
• 25:24
  Suze: Maybe you'll retire at 58, but by the time you're 58,
• 25:29
  Suze: maybe you'll go, why would I do that? Why wouldn't
• 25:31
  Suze: I want to work for another 10 years and keep
• 25:34
  Suze: making more money and having my money build and on
• 25:37
  Suze: and on and on.
• 25:39
  Suze: So right now, you want your money invested for growth.
• 25:44
  Suze: Hopefully you are investing in Roth retirement accounts, not traditional ones. So,
• 25:51
  Suze: if you want to be conservative, OK, you want it
• 25:55
  Suze: in high yield dividend stocks and things like that, I
• 25:58
  Suze: don't have a problem with that. I don't think you
• 26:01
  Suze: could have too much money in it, if that's what
• 26:04
  Suze: you're wanting. I hope you also have some money
• 26:08
  Suze: in the Standard and Poor's 500 indexes, or things that
• 26:12
  Suze: give you a little bit more of total growth, but no.
• 26:18
  Suze: Don't do what you were thinking of doing. Hi KT.
• 26:23
  KT: Hi, that's a wrap,
• 26:24
  Suze: A wrap, KT. Just tell everybody how much fun we've
• 26:27
  Suze: had the past few weeks.
• 26:28
  KT: Oh my goodness, I told you the month of March,
• 26:31
  KT: Suze turned into a social animal. We've been going to
• 26:36
  KT: concerts and plays and, I mean, dance recitals.
• 26:41
  Suze: I just want to say something, and I don't know
• 26:43
  Suze: if I've already said this to you. We went and
• 26:45
  Suze: we saw Pink Martini.
• 26:47
  Suze: And Storm Large performed with Pink Martini. She is, without
• 26:52
  Suze: a shadow of a doubt, right, KT? The most incredible
• 26:56
  Suze: performer I have ever seen in my life. We went
• 27:00
  Suze: to see other things as well. Just the other night.
• 27:03
  Suze: We were in Meisner...
• 27:04
  KT: We were with Patti Lupone
• 27:05
  Suze: And all, and loved it, loved it like she was fabulous, everybody.
• 27:10
  Suze: And very shortly we're going to see a comedian.
• 27:14
  Suze: And then we're going to see
• 27:15
  KT: Oh Jimmy, Jimmy Buffett's guy
• 27:19
  Suze: Mac McAnally, who wrote everything with Jimmy, and we're gonna go
• 27:23
  Suze: with Savannah, Jimmy's daughter.
• 27:26
  KT: We're gonna sing Jimmy's songs,
• 27:28
  Suze: But I keep going, Where can we go? What can we do?
• 27:31
  KT: So now we're, we're sitting around and, and all of
• 27:34
  KT: a sudden we're watching the news and a commercial came
• 27:37
  KT: on for an ice skating, an ice skating rink.
• 27:41
  KT: You know, big show, I think with all the stars
• 27:44
  KT: that were in the Olympics or all the Olympic, you know, skaters,
• 27:49
  KT: and so I looked, turned around, I looked at Suze,
• 27:51
  KT: and her face was lit up like a five-year-old wanting
• 27:55
  KT: to go see them skate. So we'll probably go see that.
• 27:57
  Suze: Yeah, baby, we're living now. All right, so until Sunday
• 28:03
  Suze: when I have absolutely no idea of what we're going
• 28:06
  Suze: or I'm going to be doing. There's only one thing
• 28:08
  Suze: that we want you to remember when it comes to
• 28:10
  Suze: your money. What is that, KT?
• 28:13
  KT: People first, then money, then things.
• 28:16
  Suze: And then pens that have a blue little strip around it.
• 28:20
  Suze: Until next week. Please stay safe.
• 28:23
  KT: Bye-bye. Bye.