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Transcript

What Happens When Trust Is Lost · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:07
  KT: Good morning Suze. Today is December 18th. Welcome...
• 0:13
  Suze: Wait, are you just talking to me?
• 0:13
  KT: Yes, wait, I'm about to welcome all of our listeners,
• 0:16
  KT: especially those that are having their first cup of coffee.
• 0:20
  KT: Welcome to the Ask Suze and KT Anything podcast your
• 0:25
  KT: favorite Thursday drop.
• 0:29
  Suze: Actually, welcome everybody to the Women in Money podcast, and
• 0:32
  Suze: everybody smart enough to listen.
• 0:35
  Suze: And today is the day where if you happen to
• 0:38
  Suze: have a question that you want to ask us and
• 0:41
  Suze: if KT chooses it, we'll do it on the podcast.
• 0:45
  Suze: Please write into ask Suze S U Z E podcast
• 0:49
  Suze: at gmail.com. So how are you today?
• 0:52
  KT: It's a countdown. We're counting down.
• 0:55
  Suze: What are we counting down to?
• 0:56
  KT: We're counting down the year, Suze. It's almost over.
• 0:59
  Suze: Right? I'm counting down to next Thursday.
• 1:04
  KT: Christmas.
• 1:05
  Suze: Christmas Day.
• 1:05
  KT: Ah, that's our big reveal. Did we tell everyone yet?
• 1:10
  Suze: We haven't. Nobody knows yet.
• 1:13
  KT: You're gonna get a Christmas gift from Suze and I
• 1:16
  KT: that you won't believe.
• 1:17
  Suze: But it's not for them. This was a Christmas gift...
• 1:21
  KT: This is for everybody.
• 1:22
  Suze: No, KT, you're wrong.
• 1:24
  Suze: Miss Travis, just so you know, right, this was a
• 1:29
  Suze: very great Christmas gift to Miss Travis and myself, a
• 1:35
  Suze: huge gift to us.
• 1:37
  KT: Probably one of the, I'd say the second biggest.
• 1:41
  Suze: OK, so you're just gonna have to wait now for
• 1:46
  Suze: one more week for us to reveal it.
• 1:49
  KT: But we'll reveal it at the top of the hour,
• 1:51
  KT: I promise.
• 1:52
  Suze: Are you sure?
• 1:53
  KT: Yes.
• 1:53
  Suze: You promise?
• 1:54
  KT: Yes, OK. All right, all right. So here we go.
• 1:57
  KT: My first, this, this, this is interesting. I picked this...
• 2:01
  KT: Also, December 18th is a lucky day. It's a lucky number,
• 2:06
  KT: but I also wanna say it's the day before one
• 2:09
  KT: of my dearest friend Joyce's birthday, and Joyce, we love you.
• 2:14
  KT: Happy birthday in Hong Kong.
• 2:16
  Suze: How old is Joyce gonna be tomorrow?
• 2:18
  KT: Let's see, 84,
• 2:20
  Suze: 84.
• 2:23
  Suze: Oh, Joyce Ma, I just have to say, everybody, Joyce Ma,
• 2:26
  Suze: oh KT's thinking.
• 2:27
  KT: Maybe 85. Wait, she's two years older than me in
• 2:31
  KT: the Chinese horoscope, which means she's 12 years older than me.
• 2:35
  KT: So how old am I?
• 2:37
  Suze: How old are you, can you remember?
• 2:38
  KT: 73.
• 2:39
  Suze: No, you are going to, so you're 73...
• 2:41
  KT: I'm 73, so...
• 2:42
  Suze: she's gonna be is gonna be 85,
• 2:45
  KT: 85. Whoa.
• 2:48
  Suze: I just have to say this as I was starting
• 2:50
  Suze: to say is Joyce Ma has to be one of
• 2:53
  Suze: the most extraordinary women in the world, maybe the most
• 2:57
  Suze: extraordinary woman, seriously, in the world that I've personally ever met,
• 3:03
  Suze: and KT had the pleasure of working with for a
• 3:05
  Suze: number of years over in Asia,
• 3:08
  KT: 20 years.
• 3:09
  Suze: KT, if they Google her, will her history come up?
• 3:12
  KT: Probably.
• 3:13
  KT: Joyce Ma, M A J O Y C E, Ma,
• 3:18
  KT: the fashion Doyan in the world, of the world, the
• 3:22
  KT: fashion Doyan of the world.
• 3:24
  Suze: But even more than what she's done, it's who she is.
• 3:28
  KT: Her heart is bigger than all the gold in China.
• 3:32
  KT: So my first question here is not a question, it's a,
• 3:36
  KT: it's a, a situation where I hope Suze, you can fix.
• 3:41
  KT: This is from Alison. She said, good morning, Suze and KT.
• 3:44
  KT: My husband told me his financial situation yesterday.
• 3:48
  Suze: Wait, I have to say something. Remember a little bit
• 3:51
  Suze: ago I said to all of you, if you write in, right,
• 3:55
  Suze: we might answer it on the podcast.
• 3:58
  Suze: I read some of them and some of them catch
• 4:01
  Suze: my eye. This one did, and I communicated directly with Alison,
• 4:07
  Suze: so I know exactly what you're going to say here. Go on.
• 4:10
  KT: So this caught my eye too. So she said after
• 4:13
  KT: I told him I cannot operate in the dark any longer,
• 4:16
  KT: so he finally told her and revealed to his wife
• 4:19
  KT: his financial situation.
• 4:21
  KT: He has 15,000 in checking, 11,000 in credit card debt,
• 4:25
  KT: 200 in a 401k, and this part is what caught
• 4:29
  KT: my eye. He sold an investment property just a couple
• 4:33
  KT: of years ago and he netted over 200,000 and spent
• 4:36
  KT: it all, but he won't tell Alison where and how. Suze,
• 4:42
  KT: he has no other debt.
• 4:44
  KT: So she said, I do not even know where to
• 4:46
  KT: begin to protect myself. He's a wonderful man other than
• 4:50
  KT: his avoidance of money conversations. He stonewalls me for this topic,
• 4:55
  KT: and the stress is greatly affecting my health. So she said, Suze,
• 5:01
  KT: how do I protect myself? What do I do first?
• 5:05
  KT: So what did you tell Allison?
• 5:07
  Suze: Well, as I just said a second ago, I have
• 5:11
  Suze: been communicating with Alison KT.
• 5:15
  KT: What did to tell her?
• 5:15
  Suze: So let me just say a little, tell you and
• 5:17
  Suze: everybody a little bit more about Alison.
• 5:21
  Suze: Her husband is 62, she's 55, number one. Number two,
• 5:26
  Suze: this is
• 5:28
  Suze: his first marriage, but her second.
• 5:31
  Suze: And because it's her second, she was smart enough to
• 5:34
  Suze: put everything in a separate trust. The house they live in,
• 5:38
  Suze: a rental property, he signed paperwork knowing that all of
• 5:42
  Suze: that is hers, and blah blah blah blah blah blah.
• 5:45
  Suze: The problem is, right, they live in a community property state.
• 5:51
  Suze: And she's done everything to protect him. She has a
• 5:55
  Suze: life insurance policy, everything, and he has done nothing to
• 6:01
  Suze: protect her.
• 6:03
  Suze: And she says that she's realistic. She thinks she's very realistic,
• 6:09
  Suze: but he has magical thinking and he'll be fine, but
• 6:12
  Suze: he does nothing.
• 6:14
  Suze: The one thing that you read which I find fascinating
• 6:18
  Suze: was you said he's a wonderful man other than his
• 6:21
  Suze: avoidance of money conversations. Are you kidding me, everybody? Are
• 6:25
  Suze: you kidding me? He stonewalls me on this topic. I
• 6:29
  Suze: think that's what you just said. All right, so how
• 6:33
  Suze: do I protect myself? She wants to know that. They've
• 6:36
  Suze: discussed divorce, at least as a last option.
• 6:40
  Suze: So, everybody, I just wanna say something, and there's so
• 6:44
  Suze: many more things with this about how she feels and
• 6:48
  Suze: everything about it, but here's what I wanna say to
• 6:51
  Suze: all of you.
• 6:53
  Suze: Have I not said forever that you and your money
• 6:56
  Suze: are one, that money is a physical manifestation of who
• 7:00
  Suze: you are, and I'm going to say that to you
• 7:02
  Suze: till the day that I die.
• 7:05
  Suze: And when somebody won't talk to you about money.
• 7:10
  Suze: They're not talking to you about who they are. They
• 7:14
  Suze: are hiding who they are. The big problem is he
• 7:20
  Suze: sold a house, as you said. He got $200,000 for it,
• 7:24
  Suze: and she has no idea where that money went.
• 7:29
  Suze: How can you be in a relationship with somebody and
• 7:32
  Suze: you can't say he's a good man, he's this and that,
• 7:35
  Suze: except he avoids money. No, a good man, Allison, doesn't
• 7:40
  Suze: do that. A good man who you're married to sells property,
• 7:46
  Suze: takes 200,000, and says, honey, what should we do with it.
• 7:49
  KT: Right.
• 7:50
  Suze: Everything should be discussed. Obviously I told Alison she needs
• 7:55
  Suze: to get herself a good lawyer, number one, and just
• 7:59
  Suze: discuss everything. She needs to check all of her credit reports,
• 8:04
  Suze: freeze her credit, possibly close down any joint credit cards
• 8:08
  Suze: they have, take any money that they might have in
• 8:11
  Suze: a joint account, separate it out, and keep everything absolutely
• 8:15
  Suze: separate from her husband.
• 8:19
  Suze: But the main thing that I've always said to all
• 8:22
  Suze: of you,
• 8:24
  Suze: is when you ask a question, not just about money,
• 8:27
  Suze: what to do with it, things like that, but about
• 8:30
  Suze: a person that you're involved with, and the problem is money.
• 8:37
  Suze: When you ask me that question, you already know the
• 8:41
  Suze: answer to it.
• 8:44
  Suze: And Alison, you were married once and you got divorced,
• 8:49
  Suze: and sometimes I don't know why you got divorced the
• 8:52
  Suze: first time, but sometimes we repeat a mistake that we've
• 8:56
  Suze: made in the past again until we really, really learn it.
• 9:02
  Suze: You are 55 years of age.
• 9:06
  Suze: You have many years ahead of you, but you should
• 9:10
  Suze: not spend one more day doubting who you are, what's
• 9:16
  Suze: happening with the money, what's going on in this relationship.
• 9:19
  Suze: You already spoke about divorce once as a last option.
• 9:26
  Suze: The first option, he already hasn't stepped up to the
• 9:30
  Suze: table with, which is telling you everything and where that
• 9:34
  Suze: money went.
• 9:36
  Suze: Obviously you have to everybody when you're in a situation
• 9:40
  Suze: like this, you have to take steps to protect everything
• 9:43
  Suze: you have by separating it, checking your credit reports, your
• 9:46
  Suze: FICO scores, talking to a lawyer, see what your next
• 9:50
  Suze: steps would be if divorce were to happen.
• 9:54
  Suze: However, like I've said, you already know the answer when
• 9:57
  Suze: you ask me a question like this. I always ask
• 10:01
  Suze: the question back.
• 10:04
  Suze: If you were going to do this all over again.
• 10:09
  Suze: Knowing everything you know today about that person, would you
• 10:15
  Suze: marry that person again.
• 10:19
  Suze: If the answer is no, I would not. You know
• 10:23
  Suze: what your next step is. If the answer is yes,
• 10:27
  Suze: you'd better both go see therapists right away and get
• 10:31
  Suze: so honest, It's not even funny. Just be prepared to
• 10:35
  Suze: hear what he did with that money.
• 10:38
  KT: Hmmm, big mystery.
• 10:41
  Suze: Oh, it's not a big mystery.
• 10:43
  KT: No, I mean, I'm curious. I wish Alison would tell us
• 10:46
  Suze: Either he has an incredible gambling problem. He has something, I
• 10:52
  Suze: don't know what, but when somebody doesn't tell you what
• 10:55
  Suze: happened to $200,000.
• 11:00
  Suze: It's a problem. All right, go on.
• 11:02
  KT: I'm curious too. I hope Alison, you write back to us.
• 11:06
  KT: Tell us the, the conclusion.
• 11:08
  Suze: Well, I hope we know how it went when she
• 11:10
  Suze: talked with him. She's got to talk with him, not
• 11:12
  Suze: to him. She's gotta sit him down and be really honest.
• 11:16
  Suze: But KT, here's the question. Really, I know we're supposed
• 11:20
  Suze: to do any... but I wanna talk to you a
• 11:21
  Suze: little bit about this.
• 11:24
  Suze: How do you ever trust somebody again?
• 11:26
  KT: I don't think you, I, I know I couldn't. I
• 11:29
  KT: can only speak for myself. I couldn't. Once you've been deceived,
• 11:34
  KT: deception is a very, very dangerous place. And once you've
• 11:40
  KT: been deceived, I don't think, uh, you can forgive, but
• 11:44
  KT: you never
• 11:45
  KT: forget.
• 11:46
  Suze: See, and well, how do I live my life? I
• 11:48
  Suze: don't forgive and I don't forget.
• 11:51
  KT: I forgive. I believe in forgiving.
• 11:53
  KT: And I think forgiveness and forgiving is very, very necessary
• 11:57
  KT: in order to, to get through life, but...I don't forget
• 12:01
  Suze: I move on from the person, don't I?
• 12:02
  KT: Just, yes, Susie really cuts ties and moves on.
• 12:06
  Suze: If somebody lies to me, if everybody, this is so true,
• 12:10
  Suze: I was very close with somebody for quite a long time.
• 12:15
  Suze: And they lied to me not just once but two
• 12:18
  Suze: or three times. Never again, ever will I never. I
• 12:25
  Suze: just won't, and that's...
• 12:27
  KT: You can't, she can't, um, lying for Suze is the
• 12:31
  KT: greatest sin of all life.
• 12:33
  Suze: Yeah.
• 12:34
  KT: But I forgive. I always forgive. I never forget.
• 12:37
  Suze: I know, but you're the sweetheart in this relationship.
• 12:39
  KT: No, I think forgiving is important. Just don't forget. That's
• 12:42
  KT: just being stupid, but you can
• 12:44
  KT: forgive.
• 12:45
  KT: OK. Next is from Suzanne. She said, Good morning, Suze
• 12:48
  KT: and KT. Thank you so much for all the support
• 12:51
  KT: and education for the little guy out there and in
• 12:54
  KT: my case, the little gal.
• 12:56
  KT: If I inherit an IRA from my mother, who holds
• 13:01
  KT: an inherited IRA year three of the 10-year distribution timeline,
• 13:07
  KT: do I pick up where she left off, or does
• 13:10
  KT: the clock start again giving me 10 years when I
• 13:15
  KT: inherit her inherited IRA?
• 13:18
  Suze: Yeah, no, you just pick up from it. You have
• 13:20
  Suze: seven years left and that's it.
• 13:21
  KT: I was gonna say,
• 13:22
  KT: Suze, make it a pop quizzy.
• 13:24
  Suze: I'm sorry, but everybody, the rules are very simple,
• 13:27
  KT: I studied that answer.
• 13:29
  Suze: When you've inherited an inherited IRA, it's a whole different
• 13:34
  Suze: thing when you are the first person to have inherited it.
• 13:38
  Suze: Then it's different. But when you're inherited an inherited IRA,
• 13:43
  Suze: you have 10 years. That's it over, but you pick
• 13:46
  Suze: up from the time clock. It does not start all
• 13:49
  Suze: over again. All right.
• 13:50
  KT: Great. OK. My next question is from Susan. The other
• 13:54
  KT: one was from Suzanne.
• 13:56
  Suze: Oh, was it you just like you just want a
• 13:59
  Suze: whole bunch of Suze's in your life, don't you?
• 14:01
  KT: I do.
• 14:02
  Suze: Could you take more than one of me?
• 14:05
  KT: Never. No, no.
• 14:06
  Suze: I'm being very serious.
• 14:07
  KT: Never.
• 14:08
  Suze: Why is that?
• 14:09
  KT: Because you're, you're very powerful. You're extremely um...
• 14:14
  KT: No, you need, no, you're a Gemini. You're not neurotic,
• 14:18
  KT: you're a Gemini, which means things change often.
• 14:23
  KT: All right, here we go.
• 14:24
  Suze: Notice everybody, she didn't wanna go deeper.
• 14:27
  KT: Here we go. You always say to wait until 70
• 14:31
  KT: to collect Social Security, but I have heard that when
• 14:35
  KT: there's a couple, the lower earning spouse should collect at
• 14:39
  KT: 62 and the higher earning spouse collect at 70. We are
• 14:45
  KT: thinking of doing this so we don't have to withdraw
• 14:48
  KT: as much from our 401k and IRA
• 14:51
  KT: and they can then grow more. Your thoughts.
• 14:55
  Suze: Don't do it. Listen.
• 14:58
  Suze: Waiting till 70 isn't always what somebody should do. You
• 15:02
  Suze: have to remember, if you are married and the spouse
• 15:06
  Suze: is going to get 50% of the higher earning spouse's money,
• 15:12
  Suze: they're only going to get what the spouse would have
• 15:16
  Suze: gotten at full retirement age.
• 15:18
  Suze: So let's say KT somebody waits till they're 70 and
• 15:21
  Suze: they get 3,000 a month and if they had done
• 15:25
  Suze: it at 67, let's just say I don't know these
• 15:28
  Suze: numbers are accurate, but just let's say they would have
• 15:30
  Suze: gotten 2,700 a month or something like that. The spouse
• 15:34
  Suze: is only gonna get 50% of the 2,700, not of
• 15:37
  Suze: the 3,000. So number one, sometimes you don't wait until
• 15:43
  Suze: you're 70.
• 15:45
  Suze: Especially if you're in a relationship. Number two, one thing you
• 15:50
  Suze: must never, ever, ever do, however, is start it at
• 15:53
  Suze: 62 because you're gonna be penalized. You're gonna make more
• 15:58
  Suze: by waiting to take Social Security till your full retirement
• 16:02
  Suze: age than your money is going to guarantee you to
• 16:06
  Suze: grow in a 401k. So KT, your money grows guaranteed.
• 16:12
  Suze: With cost of living increases in Social Security, you don't
• 16:16
  Suze: know your money's gonna grow in a 401k. It could
• 16:18
  Suze: go down and down and down. So therefore you can
• 16:21
  Suze: do what you want, but don't do it at 62.
• 16:25
  Suze: All right.
• 16:26
  KT: OK. Here's my favorite one from Leslie. Hi Suze and KT.
• 16:30
  Suze: Wait, is it your favorite one out of all of them,
• 16:33
  Suze: or just your favorite one from Leslie.
• 16:35
  KT: So far.
• 16:35
  Suze: I was gonna say is. Leslie, your pen pal, and
• 16:37
  Suze: it's your favorite one.
• 16:39
  Suze: No, I just... ready?
• 16:40
  Suze: Can you just tell I wanna talk to you this morning?
• 16:43
  KT: Yeah, we're gonna get through this, everybody, don't worry. All right,
• 16:45
  KT: so Leslie said, Suze and KT, I want to do
• 16:49
  KT: a backdoor Roth conversion.
• 16:52
  KT: For a traditional IRA that was funded with non-deductible funds, however,
• 16:58
  KT: I also have a traditional inherited IRA that I will
• 17:03
  KT: be taking RMDs from. So would the IRS pro rata
• 17:08
  KT: rule apply? If so, would that knock me out of
• 17:13
  KT: doing a clean tax-free back door Roth conversion. Don't do it, Suze.
• 17:18
  KT: Don't make this a pop quizzy.
• 17:20
  Suze: Pop quizzy. Pop quizzy.
• 17:20
  KT: No, no, no...
• 17:21
  Suze: Pop quizzy.
• 17:21
  KT: I, I have a look. Wait, we have to...
• 17:24
  Suze: You already answered this already, one exactly like this a
• 17:28
  Suze: few weeks ago, and you got it right. Pop quizzy,
• 17:32
  Suze: pop quizzy, pop quizzy
• 17:34
  KT: Would the IRS pro rata rule apply? I think yes.
• 17:41
  Suze: Oh, I was so proud of you. (Suze then makes the wrong answer noise)
• 17:46
  KT: I, I, this one was really complicated.
• 17:49
  Suze: KT, you answered this a while ago and you got
• 17:51
  Suze: it right. Everybody, once again...
• 17:54
  KT: Who can remember about Roths?
• 17:56
  Suze: Not you, but here's the thing, everybody, just remember the
• 18:02
  Suze: pro rata rule does
• 18:04
  Suze: not apply to any inherited traditional IRA at all just
• 18:12
  Suze: so you know, it only applies to traditional IRAs that
• 18:16
  Suze: you yourself have funded or did an IRA rollover with.
• 18:19
  Suze: All right, go on.
• 18:20
  KT: I like this one. This is from Kathleen. I'm a
• 18:23
  KT: low income senior. I received the minimum amount from a
• 18:28
  KT: combination of Social Security and SSI,
• 18:32
  KT: since most of my adult life I was a stay
• 18:34
  KT: at home mom. Now I own a modest home in
• 18:37
  KT: a quiet 55+ community. Home and property are both mine.
• 18:42
  KT: I'm concerned about title theft. Do you advise buying title protection?
• 18:49
  KT: And if so, is one company better than the other?
• 18:53
  KT: This is interesting that she wrote this, and the reason
• 18:56
  KT: I picked it is because there's these title theft commercials.
• 18:59
  Suze: You know what I was... last night when we were
• 19:01
  Suze: watching television...
• 19:02
  KT: Yes and I think a lot of older people are saying...
• 19:04
  Suze: A lot of people.
• 19:06
  KT: So, is that something they need to spend money on?
• 19:09
  KT: What do you think?
• 19:09
  Suze: Here, I wrote Kathleen back directly.
• 19:11
  KT: OK, so tell me.
• 19:12
  Suze: No I'm not telling you anything.
• 19:15
  Suze: You don't listen.
• 19:17
  Suze: I tell you something...
• 19:19
  KT: Tell us, tell us all, because these commercials are making them, prompting
• 19:22
  KT: them to buy.
• 19:23
  Suze: If you have title insurance on your home, which most
• 19:27
  Suze: of you have, if you bought a home for you
• 19:29
  Suze: to usually buy a home, you also have title insurance
• 19:33
  Suze: to know that the home that you're buying,
• 19:36
  Suze: the title is now in your name and the person
• 19:39
  Suze: you're buying it from really owned the title. Therefore, if
• 19:43
  Suze: you have that, really, you don't need this on any level.
• 19:47
  Suze: So I've told her if it were me, I would
• 19:50
  Suze: not be buying it. All right, go on.
• 19:52
  KT: All right. Next is you're gonna love this one. This
• 19:54
  KT: is from Lisa. She said, Hello, you wonderful.
• 19:57
  Suze: Your hair looks good this morning.
• 19:59
  KT: It does.
• 19:59
  Suze: Yeah. All right, go on.
• 20:01
  KT: Thank you, Suze.
• 20:02
  Suze: Well, wait, everybody, when KT's doing a FaceTime, you should
• 20:06
  Suze: FaceTime KT. It's really something to watch. She's always playing
• 20:10
  Suze: with her hair rather than looking at the person she's
• 20:13
  Suze: talking to. She's looking at a picture of herself, you know,
• 20:16
  Suze: when you FaceTime and making sure that her hair looks good.
• 20:21
  Suze: And so this morning it's perfect.
• 20:25
  Suze: And I noticed she hasn't been fidgeting with it, so
• 20:27
  Suze: you did good this morning.
• 20:29
  KT: Well, it's, it's humid, and when it's humid out, it
• 20:31
  KT: curls a little.
• 20:32
  Suze: KT, it is as straight as they come.
• 20:36
  KT: So this is from Lisa. She said, hello, you wonderful woman.
• 20:41
  Suze: Yes we are!
• 20:41
  KT: No, "woman." I just know woman to to you. Hello
• 20:44
  KT: you wonderful woman.
• 20:45
  Suze: I'm a wonderful woman because I have a wonderful woman
• 20:49
  Suze: behind me.
• 20:49
  KT: Ok, I just read that Vanguard will soon let people
• 20:52
  KT: put part of their 401k into annuities so it
• 20:56
  KT: functions more like a pension while keeping the rest invested
• 21:00
  KT: in stocks and bonds. I always thought annuities were something
• 21:04
  KT: to avoid, but pensions have historically been so valuable, and
• 21:08
  KT: I see that firsthand with my father as he ages.
• 21:12
  KT: Does this change your thoughts or advice on annuities? So
• 21:16
  KT: there you go, Miss Wonderful Woman.
• 21:20
  Suze: So, here's the thing, Lisa, it depends. Is this within
• 21:25
  Suze: a retirement account,
• 21:28
  Suze: that is a Roth or a traditional one? So just
• 21:33
  Suze: because it's a 401k, will they allow you to do
• 21:36
  Suze: it within a Roth 401k? Because where it can get
• 21:41
  Suze: to be very complicated is if it's in a traditional 401k,
• 21:46
  Suze: you do an annuity, and now let's say you roll
• 21:49
  Suze: it if you even can to an IRA if you
• 21:52
  Suze: want to.
• 21:53
  Suze: And now you have to do RMDs, which you would
• 21:56
  Suze: have to do in a 401k as well, if you
• 21:58
  Suze: left it there and you were no longer working for them.
• 22:01
  Suze: It becomes very complicated to figure out what is the
• 22:05
  Suze: value of that annuity. At the end, it becomes very
• 22:10
  Suze: complicated to do RMDs when an annuity is involved. Let
• 22:14
  Suze: me just put it that way. So, if you wanted
• 22:17
  Suze: to do an annuity,
• 22:19
  Suze: and you wanted to do one to make sure that
• 22:21
  Suze: you had income. All right, I don't have a problem
• 22:25
  Suze: with that, but if it were me, I would be
• 22:27
  Suze: doing it outside of my retirement account. Because within a
• 22:32
  Suze: retirement account more than you
• 22:34
  Suze: getting income from there that you're gonna have to pay
• 22:37
  Suze: taxes on most likely let that money grow. Let it
• 22:41
  Suze: be geared towards growth or dividends or whatever that may
• 22:44
  Suze: be and outside of your retirement accounts if you wanna
• 22:48
  Suze: do one, OK. But see, here we are again. I
• 22:52
  Suze: just wanna say something very fascinating, KT. Vanguard now has
• 22:57
  Suze: joined the ranks of Fidelity and Schwab.
• 23:01
  KT: They all need money.
• 23:02
  Suze: Where all of a sudden,
• 23:04
  Suze: they're suggesting annuities. They're making ways for people to buy annuities,
• 23:11
  Suze: and the reason I say this, everybody, is that almost
• 23:15
  Suze: every email I get from somebody who opens up an
• 23:19
  Suze: account at Schwab or Fidelity, the number one advice, at
• 23:23
  Suze: least with the people who are writing in to the
• 23:27
  Suze: Women and Money podcast.
• 23:29
  Suze: They're saying to me my adviser there has said I
• 23:33
  Suze: should get an annuity, an annuity, an annuity over and
• 23:37
  Suze: over again and over and over again. I have to say,
• 23:40
  Suze: don't you dare. That's number one. Number two, now Vanguard
• 23:45
  Suze: all of a sudden is allowing annuities within a 401k.
• 23:51
  Suze: I don't know. Just be careful. All right, there you go.
• 23:55
  Suze: But Lisa, I wouldn't be doing it. It does not
• 23:58
  Suze: change my thoughts or advice on annuities, but I don't
• 24:02
  Suze: have a problem with an immediate annuity that gives you
• 24:05
  Suze: income outside of a retirement account.
• 24:08
  KT: All right. So this is from Carolyn, and she's just
• 24:12
  KT: making a comment here and she said, good morning, Suze
• 24:16
  KT: and KT.
• 24:17
  KT: On December 11th you replied to a question regarding your
• 24:21
  KT: thoughts on purchasing a vehicle for $90,000. Remember that a
• 24:26
  KT: couple weeks ago.
• 24:27
  Suze: I've been writting with this woman back and forth. Go on.
• 24:29
  KT: Her husband wanted a, a...
• 24:31
  Suze: $90,000 car.
• 24:33
  KT: For a fancy car and she just couldn't do it.
• 24:35
  Suze: Listen to it.
• 24:36
  Suze: Few weeks ago and you'll hear how I calculated that
• 24:40
  Suze: over the five years it would cost them 177,000 but
• 24:44
  Suze: the key is keep reading KT go on.
• 24:46
  KT: So, so this is from Carolyn and she said this
• 24:49
  KT: came from a woman who stated they had retirement investments
• 24:52
  KT: and savings and could do this. That question spoke to
• 24:57
  KT: me and I wanted to share my story.
• 25:01
  Suze: Oh, now you're crying.
• 25:05
  Suze: Why you are crying?
• 25:06
  KT: I can't read this. You have to read it. I
• 25:08
  KT: can't read it. You'll see why.
• 25:10
  Suze: Well, I know why I've read it and I answered her.
• 25:13
  KT: But, read it.
• 25:15
  Suze: All right, she says, every morning when I sit at
• 25:18
  Suze: my desk, I see two pictures of my husband with
• 25:22
  Suze: the most joyous smile on his face while he was
• 25:25
  Suze: piloting our pontoon.
• 25:28
  Suze: In March of 2021 my husband wanted to purchase a
• 25:32
  Suze: new pontoon. We had been retired for five years, and
• 25:37
  Suze: both of us loved to fish, which is why KT
• 25:40
  Suze: is crying. We had good retirement savings and investments. We
• 25:46
  Suze: could have just kept that money in savings, but I
• 25:48
  Suze: was OK with spending the money for this new pontoon,
• 25:53
  Suze: so she was OK with it, KT.
• 25:55
  Suze: We spent countless wonderful hours on the lake. He would
• 26:00
  Suze: fish and I would fish or read. We did not
• 26:03
  Suze: need nor want big vacations. Our vacations were on the lake.
• 26:09
  Suze: Two years later, in March of 2023, my husband was
• 26:13
  Suze: diagnosed with stage 4 neuroendocrine cancer. After 15 painful months,
• 26:20
  Suze: cancer won.
• 26:22
  Suze: You always say people first, then money, then things. Suze,
• 26:27
  Suze: I have listened to you and followed you for years.
• 26:31
  Suze: This time I put people first, and every day I
• 26:35
  Suze: am grateful for that decision. Life is shorter than we
• 26:39
  Suze: will ever imagine. Memories of smiles and happiness and good
• 26:45
  Suze: times spent together will carry us for a very long time.
• 26:51
  Suze: KT, just so you know, I wrote Carolyn back after
• 26:55
  Suze: I read this, and I said, Carolyn, thank you for sharing,
• 26:59
  Suze: but the difference is the woman that wrote in a
• 27:02
  Suze: few weeks ago, she did not want to invest that money.
• 27:08
  Suze: She did. It was a car. It wasn't a boat.
• 27:11
  Suze: It was a car for her husband to drive, not
• 27:14
  Suze: a boat that they both would be on and share
• 27:17
  Suze: and fish together.
• 27:18
  Suze: And so we talked about that back and forth, Carolyn
• 27:21
  Suze: and me, and she said, you're right, you're right.
• 27:26
  Suze: Right, so there are times when you want to buy something, everybody,
• 27:32
  Suze: and if both you and your spouse agree, go ahead
• 27:36
  Suze: and do it. But when one of you doesn't want
• 27:40
  Suze: to do something, do you remember this now, when one
• 27:44
  Suze: of you doesn't want to do something, the other one
• 27:47
  Suze: really has to think about it.
• 27:51
  Suze: So that's how I answered that. What touched you about this, KT?
• 27:55
  Suze: Why were you crying?
• 27:58
  Suze: Oh, she can't answer that. All right, so
• 28:02
  Suze: I'll have to, after the podcast is over, we'll have
• 28:05
  Suze: to talk about it, but one other thing that I
• 28:08
  Suze: will say that I wrote Carolyn back, 'cause she wrote
• 28:12
  Suze: me back about how much she loved fishing, and she
• 28:15
  Suze: sold her fishing stuff, she sold everything after her husband died,
• 28:21
  Suze: and I wrote her and I said, oh, trust me,
• 28:23
  Suze: I understand that totally.
• 28:26
  Suze: And I think this is why KT is crying, is
• 28:29
  Suze: KT and I love nothing more than fishing together, as
• 28:32
  Suze: all of you know.
• 28:34
  Suze: And then in July of 2020, my life really did
• 28:38
  Suze: change when they found that tumor in my neck. And
• 28:41
  Suze: ever since then, everybody, and sometimes you wonder, why is
• 28:46
  Suze: KT going fishing? Why isn't Suze going fishing with her? It's,
• 28:50
  Suze: I really can't fish anymore. My left arm cannot pull
• 28:54
  Suze: in a fish. That's why KT went
• 28:57
  Suze: to British Columbia without me to fish for salmon because
• 29:01
  Suze: all I would do would sit on the boat and
• 29:04
  Suze: I didn't want to do that anymore. I'm not an observer.
• 29:07
  Suze: I'm a participant usually. So that's touchy for KT because
• 29:13
  Suze: her biggest joy is fishing.
• 29:16
  KT: With you, with Suze.
• 29:17
  Suze: Yes, but, but I can't fish anymore and so I
• 29:23
  Suze: don't really love going on the boat anymore because of
• 29:27
  Suze: that and so therefore that gets to KT and she
• 29:32
  Suze: understands it.
• 29:33
  Suze: So KT, do you wanna do any more? Did that
• 29:36
  Suze: one do you in? She said, oh, she's looking at
• 29:39
  Suze: me going, no, that one has done me in. So,
• 29:42
  Suze: I'll take us out for both of us, and
• 29:47
  Suze: what this podcast should really, really imprint on your heart.
• 29:53
  Suze: Is how hard it is for somebody.
• 29:57
  Suze: When they love doing something with their partner in life
• 30:01
  Suze: and their partner can no longer do it.
• 30:05
  Suze: How really that can affect one and therefore you then
• 30:09
  Suze: have to find new things that you both can do
• 30:13
  Suze: together and you both enjoy just as much. Which is
• 30:18
  Suze: a reminder.
• 30:19
  Suze: to tune in next Thursday to hear what we want
• 30:25
  Suze: to tell all of you and share with the Women
• 30:29
  Suze: and Money community. But until then, there's really only one
• 30:32
  Suze: thing that we want you to remember, and it's this
• 30:35
  KT: People first, then money, then things.
• 30:39
  Suze: Now you stay safe. All right, everybody, bye bye.