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Get More Pleasure From Saving, Than From Spending · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:07
  Robert: November 13th, 2025. Welcome to the Women in Money podcast
• 0:11
  Robert: as well as everyone smart enough to listen. Hi, everybody,
• 0:14
  Robert: this is Robert, the producer here.
• 0:17
  Robert: You know how sometimes you need to take a day
• 0:19
  Robert: off of work to handle an important thing happening in
• 0:22
  Robert: your life. Everything's OK, but, you know, when these things
• 0:26
  Robert: pop up, you have got to deal with them in
• 0:27
  Robert: the moment. And that is the case for today. Suze
• 0:31
  Robert: and KT are fine. They just need to handle a
• 0:34
  Robert: logistics thing. And, you know, we still like you to
• 0:37
  Robert: be able to hear both KT and Suze on a Thursday.
• 0:40
  Robert: So we have some cool bits from an Ask KT
• 0:43
  Robert: and Suze Anything previously released.
• 0:46
  Robert: And we're gonna jump right into the first question. Take
• 0:49
  Robert: it away, KT.
• 0:52
  KT: Sometimes I like to start with sharing what people have
• 0:57
  KT: achieved by just listening to Suze Orman's great advice, and
• 1:00
  KT: this is from Gina, and she said, after following your
• 1:04
  KT: rules for over 25 years, I was able to, now
• 1:09
  KT: get ready everybody, this is a list of 10 great
• 1:11
  KT: things that Gina has done. Number one, get out of
• 1:15
  KT: credit card debt for the third time.
• 1:18
  KT: Survive a painful divorce. The reason it was painful, Suze,
• 1:22
  KT: is because she paid her husband $100,000 almost 10 years
• 1:26
  KT: ago because she made more than him, but she survived that.
• 1:31
  Suze: KT, That's not why it was painful.
• 1:34
  Suze: When you are married and you get divorced, any divorce
• 1:39
  Suze: is painful because you originally entered that relationship in the
• 1:44
  Suze: hopes that it was going to be as great as
• 1:46
  Suze: ours or whatever. So that's what truly makes a divorce painful.
• 1:51
  Suze: Money isn't what makes a divorce painful, truthfully, but it
• 1:55
  Suze: still stings. All right, go on.
• 1:57
  KT: A hundred grand is a big sting. So number three, she paid off her
• 2:01
  KT: house at the age of 53, and now it's worth
• 2:05
  KT: almost a million dollars. Suze, She paid cash for a
• 2:09
  KT: car and she kept it for what's your favorite number?
• 2:13
  Suze: Well, my favorite number is 9 years. However, I would
• 2:17
  Suze: like all of you to keep your cars for at
• 2:18
  Suze: least 10. All right, go on.
• 2:20
  KT: And then she opened a Roth and saved 200,000. She
• 2:24
  KT: accumulated 1.8 million in her work 401k Roth. She has
• 2:32
  KT: 250,000 in liquid savings, which I suppose could be her
• 2:37
  KT: emergency fund. And then she said she retired from a
• 2:41
  KT: job she hated at the age of 56 with a pension.
• 2:46
  KT: And since that retirement she can afford ready everyone, keyword
• 2:51
  KT: I can afford to exercise with a personal trainer. I
• 2:55
  KT: lost 35 pounds. I no longer have high cholesterol. I'm
• 3:00
  KT: working on getting off my high blood pressure medication.
• 3:04
  KT: And I did this all on my own, Susie, because
• 3:08
  KT: you taught me how to enjoy saving more than spending.
• 3:14
  KT: So Suze, Gina's 56. Congratulations, Gina. I love everything she
• 3:20
  KT: did
• 3:21
  KT: and continues to do.
• 3:23
  Suze: The thing I love most about you doing this, KT.
• 3:26
  Suze: Is that so many times people feel so hopeless they
• 3:31
  Suze: feel like no they can't do this they'll never get
• 3:34
  Suze: out of debt they'll never be able to save they'll
• 3:36
  Suze: never be able to recover from a divorce all of
• 3:40
  Suze: these things and you can and you will...
• 3:44
  KT: Baby steps.
• 3:46
  Suze: ...but the main thing that Gina said in that email,
• 3:51
  Suze: is she gets more pleasure out of saving than she
• 3:55
  Suze: does spending. When you feel less than everybody, you spend
• 3:59
  Suze: more than you want to be more, you wanna have more,
• 4:03
  Suze: you wanna feel like Gina and have security, cause that
• 4:07
  Suze: is the goal of money. Then learn how to define
• 4:11
  Suze: yourself by how you feel and who you are, and
• 4:14
  Suze: not the things around you. All right.
• 4:17
  KT: OK, so now my first question is from Marietta. She said, hello,
• 4:23
  KT: Miss Orman. Marietta is being very proper. I have just
• 4:27
  KT: finished reading the transcript of your podcast Suze School Understanding Annuities,
• 4:33
  KT: which was on April 9, 2023. See, everyone, you can
• 4:38
  KT: go back and find exactly what you need. Marietta goes
• 4:41
  KT: on to say.
• 4:43
  KT: I am new to investing and recently started looking into annuities.
• 4:48
  KT: One thing puzzles me though, I was reading the advice
• 4:52
  KT: where you say that I should get an annuity with
• 4:54
  KT: an interest rate guaranteed for the entire surrender period.
• 4:59
  KT: I have noticed that some annuities offer a bonus rate
• 5:02
  KT: for one year, then they drop off to a lower rate.
• 5:06
  KT: How would I go about securing this higher bonus rate
• 5:10
  KT: for the length, I guess, for the duration of the
• 5:13
  KT: surrender period?
• 5:14
  Suze: Yeah, first of all, Marietta, if you heard me say
• 5:19
  Suze: that I want you to get an annuity.
• 5:23
  Suze: I don't want you to get annuities. Actually, I find
• 5:26
  Suze: it very difficult to find a situation where an annuity
• 5:29
  Suze: in any place now makes sense. However, if you want
• 5:34
  Suze: to get an annuity for whatever reason, because all annuities
• 5:39
  Suze: have what's called a surrender period where you cannot come
• 5:43
  Suze: out of that annuity without a penalty, usually 7% the
• 5:49
  Suze: first year, 6, 5, 4%, whatever it may be.
• 5:53
  Suze: So if you're going to for whatever reason get an annuity,
• 5:58
  Suze: get an annuity where the surrender period and the interest
• 6:02
  Suze: rate that they are offering you is for the exact
• 6:05
  Suze: same period of time. Now companies may not do that anymore.
• 6:09
  Suze: It used to be called a CD annuity, so they
• 6:12
  Suze: sucker you in, however, in your example here in this email.
• 6:17
  Suze: Of offering you a bonus rate for the first year,
• 6:20
  Suze: then they drop you down all the other years during
• 6:23
  Suze: the surrender period to make up for that bonus rate
• 6:27
  Suze: that got you to go with them to begin with.
• 6:31
  Suze: My best advice I could give you is, since you're
• 6:34
  Suze: probably very new to investing, stay away from annuities. I
• 6:38
  Suze: doubt there's any reason that you really need one. That's
• 6:40
  Suze: number one.
• 6:41
  Suze: Number two, if for whatever reason you do get an annuity,
• 6:45
  Suze: only get an annuity, which is a fixed annuity where
• 6:49
  Suze: the interest rate is fixed for the entire length of
• 6:52
  Suze: the surrender period. If you can't find one like that,
• 6:56
  Suze: don't buy it at all.
• 7:00
  Suze: All right, next, KT,
• 7:02
  KT: So the next email is from Kim. Hi Suze, I
• 7:05
  KT: recently started listening to your podcast after discovering my parents,
• 7:09
  KT: who are 80 and 81, bought a $200,000 deferred annuity
• 7:16
  KT: upon recommendation from the financial advisor. My mom asked me
• 7:22
  KT: what I knew about annuities, and I don't think she
• 7:24
  KT: realized it was already purchased.
• 7:27
  KT: Ready, Suze. My parents are extremely secretive about all of
• 7:32
  KT: their finances. They have five children, and I am the
• 7:36
  KT: financial power of attorney, but they don't tell me anything.
• 7:40
  KT: I've never met their financial adviser, who is the grandson
• 7:44
  KT: of an old family attorney who passed a few years ago.
• 7:49
  KT: They put all of their trust in him.
• 7:52
  KT: So Kim's question is on behalf of herself and siblings,
• 7:56
  KT: what can we do to help my parents realize they
• 7:59
  KT: need to trust their family to be involved in their finances?
• 8:04
  Suze: Mhm.
• 8:05
  Suze: So Kim, what's interesting is that no matter how old
• 8:10
  Suze: we get or our parents get, we tend to act
• 8:15
  Suze: like we're still kids.
• 8:17
  Suze: We tend to act that we cannot question their authority,
• 8:23
  Suze: that we have to do anything that they say. We
• 8:25
  Suze: act like we're 10 years old, 12 years old, 18
• 8:28
  Suze: years old, when we really were kids.
• 8:31
  Suze: You now and all your siblings are mature adults. If
• 8:37
  Suze: your parents are in their 80s, then you are probably
• 8:40
  Suze: in your 50s, maybe even in your 60s. You are
• 8:44
  Suze: no longer kids. Therefore, you have to stop acting like
• 8:49
  Suze: one and just being around them and doing whatever they say.
• 8:54
  Suze: What I suggest to you and everybody listening to this
• 8:57
  Suze: right now, your parents are in danger.
• 9:02
  Suze: They're in danger. Therefore, you have got to go to them,
• 9:06
  Suze: sit them down, all of you at once, and say,
• 9:10
  Suze: Let's play getting older. Mom, what would you do if
• 9:16
  Suze: Dad dies? Cause it's not an if, Mom, it's a when.
• 9:20
  Suze: Do you know where your money is going to come from?
• 9:24
  Suze: Do you know how much it costs you to live
• 9:27
  Suze: every single month? Do you know about the titles to
• 9:30
  Suze: all your accounts and retirement accounts, Mom, will you be OK?
• 9:35
  Suze: And Mom?
• 9:37
  Suze: Let's just say Dad is gone, or Dad, let's just
• 9:41
  Suze: say mom is gone or has become incapacitated. Who's going
• 9:46
  Suze: to write your checks for you? Who is going to
• 9:49
  Suze: pay your bills for you, Mom and Dad, this is
• 9:52
  Suze: not about how much money you have and how much
• 9:55
  Suze: money you are going to leave to us.
• 9:58
  Suze: This is about your children being able to take care
• 10:02
  Suze: of you as you age, and the two of you
• 10:06
  Suze: are putting yourself in danger. Kim, ask your parents to
• 10:13
  Suze: listen to this podcast.
• 10:15
  Suze: Ask them to listen to Suze Orman saying to them,
• 10:21
  Suze: Mom and Dad, please don't do this to your kids.
• 10:25
  Suze: How many thousands of kids have come to me when
• 10:28
  Suze: their parents had gotten sick or had a stroke or
• 10:32
  Suze: had whatever it may be, and they can't pay the bills,
• 10:35
  Suze: they can't do anything for them. Everybody now is in danger.
• 10:42
  Suze: Please, Mom and Dad, stop acting so immature that you
• 10:48
  Suze: just don't want to deal with this cause I know
• 10:51
  Suze: that you're afraid to deal with your death. I know
• 10:54
  Suze: that you are afraid to make decisions cause it's hard
• 10:58
  Suze: to get old. I know that KT and I both
• 11:03
  Suze: experienced that, but you don't have a choice anymore, so
• 11:08
  Suze: I am not asking you. I am begging you.
• 11:12
  Suze: To bring your five kids in who love you, especially Kim,
• 11:17
  Suze: who has power of attorney. Introduce Kim to your financial advisor.
• 11:23
  Suze: And make sure that the decisions that you are making
• 11:26
  Suze: or this person is making for you are wise for you,
• 11:30
  Suze: because on no level is it wise that you have
• 11:33
  Suze: a $200,000 annuity. On no level is it wise for
• 11:39
  Suze: you to have any annuities at all. And just because
• 11:44
  Suze: his grandfather was your attorney doesn't mean that the grandson
• 11:51
  Suze: is just like his grandfather. Please, I am begging you
• 11:57
  Suze: and all parents that are listening to this right now.
• 12:02
  Suze: Next question, KT.
• 12:04
  KT: So next is from Emily, Suze. Love, love, love, love
• 12:08
  KT: your podcast, Suze.
• 12:10
  Suze: I love it too, Emily,
• 12:11
  KT: And this is
• 12:12
  KT: a really good question because I'm curious too. Suze, how
• 12:15
  KT: did I miss that CDs can be called back? Was
• 12:19
  KT: this ever discussed on your podcast? I have received a
• 12:23
  KT: notice from Chase that my CD was being recalled and
• 12:27
  KT: money to be cashed out at 9 months instead of
• 12:30
  KT: my 12 month expiration date.
• 12:34
  KT: So Suze, Emily says, why didn't I know this?
• 12:36
  Suze: You didn't know it, Emily, because you don't listen to
• 12:40
  Suze: the podcast every Thursday and Sunday or any time in
• 12:44
  Suze: between then. So just so you know, I have addressed
• 12:47
  Suze: this in the past.
• 12:49
  Suze: And basically, the reason a financial institution has what's called
• 12:55
  Suze: a callable CD is because when interest rates go down,
• 13:00
  Suze: they want to know that they don't have to continue
• 13:02
  Suze: paying you that high interest rate because they want to
• 13:06
  Suze: be able to recall it, so that if you do
• 13:10
  Suze: get another CD it's at a lower interest rate and
• 13:13
  Suze: that's how they make more money.
• 13:16
  Suze: Now, most financial institutions such as banks and even brokerage
• 13:22
  Suze: firms offer callable CDs, and sometimes to sucker you in,
• 13:29
  Suze: they offer a little tiny higher interest rate than a
• 13:32
  Suze: CD that is not callable, and you fall for that trick.
• 13:37
  Suze: You should never, ever, ever get a callable CD.
• 13:43
  Suze: But they are plentiful out there, so you just have
• 13:47
  Suze: to ask the question before you buy a CD. Is
• 13:50
  Suze: this callable or not?
• 13:54
  KT: Does Alliant do that?
• 13:55
  Suze: No, Alliant would not offer callable CDs because really they're
• 14:00
  Suze: for the advantage of the financial institution. There is no
• 14:04
  Suze: advantage really for a consumer to buy one, and Alliant
• 14:08
  Suze: Credit Union, in my opinion, would never do anything,
• 14:13
  Suze: anything that wasn't for the advantage of their members. Go to my alliant.com.
• 14:22
  KT: All right. All right. Next is from Sylvia. Suze, I
• 14:26
  KT: have a traditional IRA and a Roth IRA with Charles Schwab.
• 14:30
  KT: The traditionals doing really bad.
• 14:35
  KT: She said, I would like to choose investments myself following
• 14:39
  KT: the advice of your podcast, but I don't know how
• 14:41
  KT: to take control of my account. How, you know, help her?
• 14:45
  KT: How does she do that?
• 14:46
  Suze: Sylvia, do you have control over your Roth IRA? This
• 14:51
  Suze: has nothing to do with Charles Schwab. This has to
• 14:54
  Suze: do with who is making the decisions over your retirement accounts.
• 15:00
  Suze: So if your Roth IRA is doing well.
• 15:03
  Suze: And your traditional IRA is not. I have a feeling
• 15:08
  Suze: that probably you just recently started a Roth IRA and
• 15:11
  Suze: there isn't a lot of money in there, but there's
• 15:14
  Suze: probably a whole lot more in your traditional IRA. So,
• 15:20
  Suze: how do you take that over? You just tell whoever
• 15:23
  Suze: is in charge of that account that you no longer
• 15:26
  Suze: want them to be so. So, therefore, you pick up
• 15:29
  Suze: the phone.
• 15:30
  Suze: You gather your courage and you say you no longer
• 15:34
  Suze: want the traditional IRA under an investment advisor. However, I
• 15:39
  Suze: do just want to say, if it's really doing bad,
• 15:43
  Suze: now might be the time to take some of the
• 15:45
  Suze: money that's in the traditional IRA and convert it to
• 15:49
  Suze: a Roth every single year. Now, I just also have
• 15:53
  Suze: to say this,
• 15:59
  Suze: it wouldn't kill you possibly, I don't know enough about
• 16:01
  Suze: your circumstance, but to take small amounts of money at
• 16:06
  Suze: the end of this year in the things that are
• 16:08
  Suze: especially down and you're losing on and convert them to
• 16:13
  Suze: your wrath and then do the same thing at the
• 16:15
  Suze: beginning of January next year. So that's what I would
• 16:20
  Suze: be doing if I were you, KT. Why do you
• 16:24
  Suze: think it's so hard for women,
• 16:28
  Suze: to take power like, did, did she really need to
• 16:32
  Suze: me to say that how does she do that?
• 16:35
  KT: A lot of people, men and women are afraid to
• 16:38
  KT: ask questions or to question anything that has to do
• 16:42
  KT: with finances and don't ask me why. I don't know.
• 16:46
  KT: I mean, for me, I love to ask questions about
• 16:49
  KT: money and I have no fear, but most people do.
• 16:52
  Suze: So listen, here's the bottom line for all of you.
• 16:57
  Suze: It is your money. What happens to your money directly
• 17:01
  Suze: affects the quality of your life. How many times have
• 17:03
  Suze: I said this? Not your financial advisor's life, your insurance
• 17:07
  Suze: agent's life, your banker's life, your life. So, if you
• 17:12
  Suze: don't like what's happening to your money, do not be
• 17:16
  Suze: afraid to pick up the phone and talk to whoever
• 17:20
  Suze: is in charge of that money.
• 17:23
  Suze: If you don't like what's happening to your money and
• 17:26
  Suze: you're the one who's in control of it, then maybe
• 17:29
  Suze: you do need to find somebody who could help you.
• 17:33
  Suze: All right, KT.
• 17:34
  KT: OK. Next is from Cecilia. She said, Suze, your podcast
• 17:40
  KT: has been a true gift. Love that. She said, When
• 17:44
  KT: I left my company, I had a 90 day window
• 17:47
  KT: to exercise my vested stock options.
• 17:50
  KT: Just before they expired, an acquisition was announced, but I
• 17:55
  KT: had no guarantees about the deal closing or a written
• 17:59
  KT: confirmation on the equity payout. The cost to exercise was
• 18:04
  KT: $193,000 with a net gain of $122,000.
• 18:12
  KT: I could have used my home equity line of credit
• 18:15
  KT: to fund it, but I decided against it to avoid
• 18:19
  KT: potential financial stress on my family. So now, now she's
• 18:24
  KT: regretting it. She said, I can't help but feel unlucky
• 18:27
  KT: for not seizing that upside. So Suze, how do I
• 18:30
  KT: move past this and stop dwelling on what could have been?
• 18:34
  KT: Another could have, should have, would have email.
• 18:37
  Suze: Yeah, so basically, Cecilia.
• 18:40
  Suze: There is a law of money that I have which
• 18:43
  Suze: is look at what you have, not at what you
• 18:47
  Suze: had or you could have had.
• 18:50
  Suze: If you spend all of your life buying a stock,
• 18:54
  Suze: you then sell it cause you made maybe some money
• 18:57
  Suze: on it, or you lost money on it, and then
• 18:59
  Suze: it skyrockets, and if you had simply held it, you
• 19:04
  Suze: would have made $100,000 200,000 dollars. I did an entire
• 19:08
  Suze: podcast on, if only.
• 19:12
  Suze: Try to find that podcast. If only I had done
• 19:16
  Suze: this and not that. If only I had exercised those options,
• 19:21
  Suze: I would be $122,000 richer. If only, if only. Now,
• 19:28
  Suze: what you could have done.
• 19:31
  Suze: But you didn't even ask the questions to your HR
• 19:35
  Suze: person because you were coming from a place of fear.
• 19:39
  Suze: You wanted to make sure that you stayed secure. You
• 19:42
  Suze: didn't want to take equity out of your home, but
• 19:45
  Suze: you didn't ask the company questions such as how can
• 19:50
  Suze: I do this if I don't have any money. There
• 19:54
  Suze: are many companies out there,
• 19:56
  Suze: that have what's called a cashless transaction to help you
• 20:03
  Suze: exercise when you don't have the cash to do so.
• 20:06
  Suze: Did you even ask that question of your company? So
• 20:11
  Suze: for all of you again listening to this and maybe
• 20:14
  Suze: you're in a situation like Cecilia is in or was in.
• 20:18
  Suze: And maybe you will be in is, can you ask
• 20:22
  Suze: your company now that if they ever do something like that,
• 20:26
  Suze: you have stock options? Do they offer something that's a
• 20:31
  Suze: cashless transaction? Can you do that? But Cecilia, why waste
• 20:39
  Suze: time on what could have been,
• 20:43
  Suze: versus what is? You didn't do it because you didn't
• 20:48
  Suze: want to cause any financial stress on your family, and
• 20:54
  Suze: now it's causing stress on you. No, girlfriend, look at
• 20:59
  Suze: what you have.
• 21:01
  Suze: Which should be a life of no stress. So, therefore,
• 21:06
  Suze: just stop it, but again, listen to the podcast on
• 21:10
  Suze: If Only. All right, KT.
• 21:13
  KT: Next question. This is from Susan.
• 21:16
  KT: I am 45 years old and I've been with Walmart
• 21:19
  KT: for nine years. We love Walmart. Wonder if she's been
• 21:23
  KT: to Bentonville.
• 21:25
  Suze: We have.
• 21:26
  KT: Suze and I've been to Bentonville. There's some great barbecue
• 21:30
  KT: places there. So I'm leaving Walmart and I have $45,000
• 21:35
  KT: in the 401k and I have stocks with them, and
• 21:39
  KT: the new job I'm going to has a 401k also.
• 21:43
  KT: Do I have to transfer my Walmart 401k to the
• 21:47
  KT: new job, or can I open a Roth IRA with Fidelity?
• 21:53
  Suze: So, first of all, Susan, right, if you choose to
• 21:58
  Suze: roll over your 401k to your new company, that's fine, right?
• 22:05
  Suze: But the problem is, chances are, they're not going to
• 22:09
  Suze: be able to take the Walmart stock that you have
• 22:12
  Suze: within your 401k. I would suggest doing an IRA rollover
• 22:19
  Suze: to Fidelity with all of it.
• 22:22
  Suze: And then, if you want, start to convert little by
• 22:26
  Suze: little to a Roth IRA cause if you roll it
• 22:30
  Suze: all over to a Roth IRA then all $45,000 is
• 22:36
  Suze: gonna be taxable to you that year as ordinary income.
• 22:41
  Suze: You also, by the way, have the ability to leave
• 22:44
  Suze: it right at Walmart if that is what you would
• 22:48
  Suze: like to do. Next question, my dear KT.
• 22:51
  KT: OK, this question was on the wall, and it's to KT.
• 22:54
  Suze: And it is the last one.
• 22:57
  KT: It says, KT, if you still have money in an
• 23:01
  KT: HSA account when you start receiving Medicare, do you lose it?
• 23:13
  KT: I'm gonna answer this for you, for them. Is that
• 23:16
  KT: all right, Suze? The answer is no. You don't lose it.
• 23:20
  KT: You just add to it. You don't lose it.
• 23:24
  KT: There you go. I know a lot about HSAs
• 23:28
  Suze: Ding ding ding, but you're still getting a...
• 23:31
  Suze: girlfriend. But wait, wait, wait, I'm not there yet. Let
• 23:34
  Suze: me answer Miss Speedy today. So it is true.
• 23:39
  Suze: That you can use your HSA money for anything that
• 23:43
  Suze: you want, but did you also know that you can
• 23:47
  Suze: use your health savings account funds to pay for Medicare premiums, everybody,
• 23:53
  Suze: including those for Part B, Part D, and Medicare Advantage
• 23:58
  Suze: plans Part C.
• 24:00
  Suze: Right, but you need to know, KT, this should have
• 24:03
  Suze: been your quizzy. Can you use HSA funds to pay
• 24:07
  Suze: for Medicare supplements or Mediagap policies since you know so
• 24:12
  Suze: much about these funds?
• 24:13
  KT: Oh, I don't know that much.
• 24:16
  Suze: And the answer to that is no, you cannot.
• 24:19
  KT: Sounds like a no, right?
• 24:20
  Suze: So just remember that when you have money in an
• 24:22
  Suze: HSA you can use it for so many things including
• 24:27
  Suze: long term care, premiums, everybody. All right, quizzy time, you
• 24:33
  Suze: need to get out of your quizzy, you little manipulator. Right,
• 24:37
  Suze: which is this from Darlene.
• 24:40
  Suze: And by now, all of you know what quizzy time means.
• 24:44
  Suze: If not, that means you have not been listening to
• 24:46
  Suze: the podcast and go back and listen to a lot
• 24:50
  Suze: of them. Anyway, all right. If I do a Roth
• 24:55
  Suze: conversion from a traditional IRA even though I'm 67,
• 25:03
  Suze: would I have to pay income taxes on the withdrawal
• 25:07
  Suze: amount if I took it out before the five year
• 25:12
  Suze: rule since I paid income taxes on it when I
• 25:16
  Suze: converted it to a Roth? Don't answer yet, KT. What
• 25:21
  Suze: Darlene is asking is: she has a Roth.
• 25:26
  Suze: But the Roth has not been open for at least
• 25:29
  Suze: 5 years. She has converted money to it. She is 67.
• 25:38
  Suze: If she converts and then takes the money out, let's
• 25:42
  Suze: say she leaves it in there for a year from now.
• 25:45
  Suze: It grows, but it's still under the five years.
• 25:51
  Suze: Will she owe income tax on that money and will
• 25:56
  Suze: she owe a 10% penalty on that money?
• 25:59
  KT: Do you mean both or...
• 26:00
  Suze: I'm asking you both.
• 26:05
  KT: Well, I don't know. All I know is that if
• 26:07
  KT: taxes are involved, usually you have to pay it.
• 26:10
  Suze: So she will have paid the taxes when she converted.
• 26:13
  Suze: She already pay them again. You have to answer the questions.
• 26:16
  Suze: If she withdraws the money prior to when the five
• 26:21
  Suze: years are up and that money has grown, let's just
• 26:25
  Suze: say it's grown and she withdraws it prior to the
• 26:29
  Suze: time the five years are up, she's 67.
• 26:34
  Suze: Will she owe a 10% penalty? Will she owe income
• 26:38
  Suze: tax on that money?
• 26:39
  KT: She's 67, so I think she won't owe income tax,
• 26:44
  KT: but she might have the penalty. I don't know.
• 26:48
  KT: Is that a good, is that a good answer?
• 26:50
  Suze: It's that it's only good if it's good for you.
• 26:52
  KT: Is it, uh, is
• 26:53
  Suze: I have to tell you whether you're right or wrong.
• 26:56
  Suze: Do not try to get out of this.
• 27:00
  KT: I don't think, I don't think you pay...
• 27:00
  KT: I don't think you pay taxes twice, but you definitely
• 27:04
  KT: have a penalty. But she's 67, so I don't think
• 27:08
  KT: she's penalty exempt either.
• 27:11
  Suze: All right, that's your answer. (Suze makes the wrong answer sound)
• 27:15
  KT: OK, I, I don't know. It was Roth, right?
• 27:20
  KT: All right,
• 27:21
  Suze: We should just know that any Roth question, it's gonna be a (Suze makes the wrong answer sound again).
• 27:25
  KT: You can bet on that, everybody.
• 27:28
  Suze: It doesn't have to be though, KT. So Darlene, here's
• 27:31
  Suze: what you have to get. Once you are over the
• 27:34
  Suze: age of 59 and a half.
• 27:37
  Suze: Even though your Roth IRAs have not been open for
• 27:41
  Suze: at least five years, everybody, so this applies to everybody,
• 27:45
  Suze: you will no longer ever, ever, ever pay a 10%
• 27:50
  Suze: penalty cause you're already over the age of 59 and a half. However,
• 27:56
  Suze: what you have to remember is that when you convert
• 28:00
  Suze: money to a Roth IRA you pay 100% tax on
• 28:05
  Suze: the amount that you converted, but now the money's in
• 28:09
  Suze: that account and it is growing, so it is earning money.
• 28:14
  Suze: If you take out the earnings before the account has
• 28:19
  Suze: been open for five years.
• 28:22
  Suze: Then you are going to pay tax on the earnings
• 28:26
  Suze: that you have never paid tax on yet. So that's
• 28:31
  Suze: just what you have to take into consideration. It's just
• 28:35
  Suze: that easy. Now, did that make sense to you, KT?
• 28:38
  KT: Yeah, that made a lot of sense.
• 28:40
  Suze: Really, I just made sense to you.
• 28:42
  KT: What made sense, I think my, the thing, and I
• 28:45
  KT: knew I couldn't remember...
• 28:48
  Suze: There she goes defending herself again.
• 28:49
  KT: No, I knew that 67 was a good thing, but
• 28:52
  KT: I didn't remember how it all worked.
• 28:53
  Suze: We, we get that because I went (Suze makes the wrong answer sound... again)
• 28:57
  Suze: Do you see everybody now? I just want...
• 29:00
  KT: I'm not defending myself. I'm just trying to...
• 29:02
  Suze: Well, what would you call
• 29:03
  Suze: that?
• 29:03
  KT: Recall.
• 29:04
  Suze: Uh-huh. Now, can you just imagine what our relationship is
• 29:08
  Suze: really like? Do you think this just happens when we're
• 29:12
  Suze: talking about Roth IRAs?
• 29:14
  Suze: Or maybe do you think it could happen about other
• 29:16
  Suze: things you, you think KT never
• 29:19
  KT: Ding ding
• 29:19
  KT: ding ding ding
• 29:21
  KT: ding ding ding. Suze got that right ding ding ding
• 29:23
  KT: ding
• 29:24
  Suze: All right, but I still love her and more importantly,
• 29:29
  Suze: I like her.
• 29:32
  Suze: Take us out, KT.
• 29:32
  KT: All right, these three things, what do they have to remember?
• 29:35
  Suze: People first, then money, then things. And when you're wrong,
• 29:40
  Suze: just admit it. It's not a big deal. What are
• 29:44
  Suze: the six greatest words in life, KT?
• 29:47
  KT: I admit that I was wrong.
• 29:49
  Suze: Ding ding ding. And if you do that, stay safe, healthy.
• 29:55
  Suze: You will be unstoppable.