Latest / Suze Orman's Women & Money (And Everyone Smart Enough To Listen) / Do You Have Faith In Who You Are?

Transcript

Do You Have Faith In Who You Are? · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:07
  KT: Hey, surprise everybody, it's KT in the house on Sunday.
• 0:13
  KT: You thought Sunday School was gonna be Suze, but no,
• 0:17
  KT: she took my space on Thursday, so I'm here on
• 0:21
  KT: Sunday and I'm gonna do the whole show. We don't
• 0:24
  KT: even know if we want to ask her any questions.
• 0:26
  Suze: Well, how about if I ask you a question like
• 0:28
  Suze: what's the date?
• 0:30
  KT: October 5th.
• 0:31
  Suze: And where are we? What what is this? the women
• 0:34
  Suze: and what KT?
• 0:37
  KT: They all know. They know this is the Women and
• 0:40
  KT: Money podcast and everyone's smart enough to listen.
• 0:42
  Suze: And this is now not Suze School because I took her...
• 0:45
  KT: It's Ask KT and Suze Anything...
• 0:48
  Suze: And if you have a question, all you have to
• 0:51
  Suze: do is send in an email to ask Suze S-U-Z-E asksuzepodcast at gmail.com
• 0:57
  Suze: And if KT picks it, oh, we will answer it
• 1:01
  Suze: on this podcast. Are you ready, Miss Travis?
• 1:04
  KT: I'm ready. Go get a cup of coffee, everyone, here
• 1:06
  KT: we go on Sunday.
• 1:08
  Suze: All right, ask me your first question.
• 1:09
  KT: Sundaaay!!
• 1:12
  KT: OK, first question is from Susan. It's a long one, everybody,
• 1:17
  KT: so get cozy. Hi, Suze and KT.
• 1:20
  Suze: Is it a question or a statement...
• 1:21
  KT: It's, it's both, but it's good. I want to read
• 1:24
  KT: what you how you changed her life.
• 1:26
  KT: You guys have become part of my weekly life for
• 1:29
  KT: the past 4 years.
• 1:31
  Suze: Poor baby. I get how you feel.
• 1:33
  KT: As I think of it, I became a regular Women
• 1:36
  KT: and Money podcast junkie ready shortly after 30 years of
• 1:41
  KT: marriage ended.
• 1:43
  Suze: Oh, don't tell me another one. I caused another divorce.
• 1:46
  KT: She does all the time, but you know what, these
• 1:48
  KT: are happy endings after all.
• 1:50
  KT: We lived a middle class life, but at age 57
• 1:54
  KT: we were still having to borrow money from my future inheritance,
• 1:58
  KT: and each month not making ends meet. Through you, divorcing
• 2:03
  KT: a financial sabotaging husband,
• 2:08
  KT: finding a great business coach and getting a $900,000 inheritance,
• 2:15
  KT: I am now on my feet again, day by day
• 2:18
  KT: and step by step.
• 2:20
  Suze: I love that.
• 2:22
  KT: Wait, I got to finish. This is long.
• 2:24
  KT: I doubled my net income from my geriatric care management business,
• 2:29
  KT: and I have been able to keep my home. It
• 2:31
  KT: is a home that brings me joy and allows me
• 2:33
  KT: my out of state adult children to have beds and
• 2:37
  KT: a reason to come home. No one in my family
• 2:41
  KT: thought I would be able to do it. I felt
• 2:43
  KT: I had no support except for my weekly episodes of
• 2:47
  KT: Suze and KT.
• 2:49
  KT: She said...
• 2:51
  Suze: What is this person's name?
• 2:51
  KT: It's Susan.
• 2:52
  Suze: Oh, of course, Susan.
• 2:54
  KT: She said, I'm not exaggerating to say that because of
• 2:56
  KT: you I grew financial self-esteem. Don't you love that? Then
• 3:02
  KT: she goes on and keeps giving us all this praise,
• 3:04
  KT: but I'm going to cut to her question. But here
• 3:07
  KT: is where I...
• 3:08
  Suze: Oh no, I like the praise.
• 3:09
  Suze: Keep going.
• 3:11
  KT: She said, Here is where I'm stuck. I get scared
• 3:15
  KT: when I spend my money. Don't get me wrong, I
• 3:17
  KT: do it, but wonder if or when I am being irresponsible.
• 3:22
  KT: How does one balance out living for the future, enjoying
• 3:26
  KT: your money for things that bring you joy? I am
• 3:29
  KT: 61
• 3:30
  KT: years old, I don't have plans to retire because I
• 3:33
  KT: love what I do. But since I'm not married and
• 3:37
  KT: a business owner, if I am unable to work, my
• 3:40
  KT: salary stops. Another confusing life lesson is that I had
• 3:44
  KT: one parent who died at age 50, the other who
• 3:48
  KT: died at 92.
• 3:50
  KT: So I have seen two different endings, one for someone
• 3:54
  KT: who didn't get all she wanted in life, and the
• 3:57
  KT: other who was able to get gold standard care at
• 4:01
  KT: the end because he worked and saved. Life can be
• 4:05
  KT: long and life can be short.
• 4:07
  Suze: Tell me about it, all right, so you know, here's
• 4:10
  Suze: what's funny, Susan.
• 4:12
  Suze: Is that my father died at 71.
• 4:16
  Suze: My mother lived until 97 and really would have lived
• 4:20
  Suze: a whole lot longer if she had wanted to, but
• 4:23
  Suze: she didn't, so she stopped eating for an entire month
• 4:27
  Suze: and stopped drinking and that was it. And so she
• 4:31
  Suze: took her own power as my mother would be known
• 4:35
  Suze: to do, anyway.
• 4:37
  Suze: But I lived my life in total fear that I
• 4:42
  Suze: was going to be exactly like my father, that I
• 4:47
  Suze: was going to have one failure after another failure. I
• 4:51
  Suze: was never going to make money. I was going to
• 4:54
  Suze: always be sick or whatever because he was with emphysema,
• 4:57
  Suze: and I thought that's how I was going to end up.
• 5:01
  Suze: And for some reason I modeled myself after that versus
• 5:05
  Suze: my mom. Don't know why, but that was my greatest
• 5:08
  Suze: fear in life.
• 5:11
  Suze: And then as time went on, 'cause I was only
• 5:14
  Suze: 30 something like 31 when he died.
• 5:17
  Suze: What was fascinating.
• 5:20
  Suze: Is that my life wasn't like his at all.
• 5:24
  Suze: And that's when I really started to learn just because
• 5:29
  Suze: something happened to a parent, a grandparent, anybody else that
• 5:34
  Suze: you're related to, you are not destined to live that outcome.
• 5:41
  Suze: You have the power to create your own outcome. Now
• 5:45
  Suze: I'm not talking necessarily about health, because there are some
• 5:48
  Suze: health things that are genetically passed down. But normally,
• 5:53
  Suze: that's not what scares us. What scares us is, oh...
• 5:57
  Suze: They died poor. They died rich. They died this. They
• 6:00
  Suze: had money. They didn't have money. They fought. They didn't
• 6:03
  Suze: fight for you. What's really important is for all of
• 6:07
  Suze: us that are listening right now. Good relationship, bad relationship
• 6:11
  Suze: doesn't matter.
• 6:13
  Suze: That you need to make decisions where you stand in
• 6:19
  Suze: your truth. You don't live another person's truth. You have
• 6:23
  Suze: to live your own truth, and you have to make
• 6:28
  Suze: decisions based on what you think, not what anybody else thinks.
• 6:33
  Suze: Just a little side story here. My little niece Sophia,
• 6:37
  Suze: who I love more than life itself, just turned 26.
• 6:41
  Suze: And every single year I write her an email and
• 6:45
  Suze: she waits for the email from Aunt Suze with a
• 6:48
  Suze: life lesson, and for this email that I sent her,
• 6:52
  Suze: I said, I don't know what other advice I can
• 6:54
  Suze: give you except to know your own thoughts, to stop
• 7:00
  Suze: asking what do you think, what do you think, and
• 7:02
  Suze: know what Sophia thinks.
• 7:05
  Suze: And that's true for all of us regardless of any age.
• 7:11
  Suze: So therefore, my first thing that I would say to
• 7:14
  Suze: you is that you have to not be afraid. You
• 7:20
  Suze: made it this far. You made decisions on your own,
• 7:22
  Suze: whatever it is. You don't need to be scared. You
• 7:25
  Suze: don't need to be stuck.
• 7:27
  Suze: You can just do what you think is right. If
• 7:31
  Suze: you know it's right, then spend the money. If you
• 7:34
  Suze: know it's wrong, then don't spend the money. We all
• 7:38
  Suze: know when we should be buying something and when we
• 7:41
  Suze: should not at any level. And the thing again about
• 7:45
  Suze: you being afraid cause you had one parent do this
• 7:48
  Suze: and one parent do that, Susan, that is not your future.
• 7:53
  Suze: You have created your future that you've done one of
• 7:57
  Suze: the hardest thing anybody can do that after 30 years, girlfriend.
• 8:02
  Suze: You left somebody,
• 8:05
  Suze: because it wasn't right for you, so stop it. Just
• 8:09
  Suze: stop it already. Stop coming up with all these things
• 8:13
  Suze: about help me spend, help me do this, da da
• 8:16
  Suze: da da. You know what's right. You know what's wrong,
• 8:20
  Suze: and you have to have faith in who you are.
• 8:24
  Suze: And value your own self-worth over anything else and to
• 8:29
  Suze: always stand in your truth and nobody else's. All right, KT, next.
• 8:33
  KT: Next one is from Sam. Hi, Suze and KT. I
• 8:38
  KT: took your advice from Thursday's Ask Suze and KT podcast
• 8:41
  KT: and reviewed my 401k rollover returns, adviser managed and compared
• 8:48
  KT: it to the S&P returns over the same period of time.
• 8:54
  KT: That's great.
• 8:55
  Suze: That was my advice.
• 8:56
  KT: I know it was, it was your idea. You told
• 8:58
  KT: everyone to do that. My returns were about half of
• 9:01
  KT: that of the S&P, and I'm paying my Fidelity advisor 1.22%.
• 9:09
  KT: Is this my wake up call to get rid of
• 9:11
  KT: my advisor and put it all in the S&P? It's
• 9:15
  KT: about half a million dollars and I'm 57 years old.
• 9:20
  Suze: Listen to me, everybody. When I said that the other
• 9:24
  Suze: week on the podcast, did you not hear me say
• 9:28
  Suze: that if 100% of your portfolio is in equities, then
• 9:34
  Suze: you can compare that return to the Standard and Poor's
• 9:38
  Suze: 500 index, and you'll know how your advisor is doing
• 9:42
  Suze: for you.
• 9:43
  Suze: Sam, I don't know how your adviser has invested your money.
• 9:49
  Suze: Was half in stocks, half in bonds, was three quarters
• 9:54
  Suze: in treasuries, and quarter in stocks. So all of you,
• 9:58
  Suze: when you're going to compare how your adviser is doing.
• 10:03
  Suze: Take the portion of your money that happens to be
• 10:06
  Suze: invested in just stocks and compare that to the Standard
• 10:11
  Suze: and Poor's 500 index. Because the truth of the matter
• 10:14
  Suze: is you can keep your money safe and sound by
• 10:17
  Suze: yourself in money market accounts or treasuries or bonds, but
• 10:22
  Suze: what you really are paying a financial adviser for, in
• 10:25
  Suze: my opinion,
• 10:27
  Suze: is how much are they making your money grow and
• 10:32
  Suze: what are they charging you for it? All right, KT.
• 10:35
  KT: Next question is for Marisol. Hi, Suze and KT. Suze,
• 10:40
  KT: I hope you can clarify something for me. My house
• 10:43
  KT: is paid off and me and my brother own it.
• 10:46
  KT: I'm 61 years old. My brother is 51.
• 10:50
  KT: I would like to purchase the must have documents, and
• 10:54
  KT: if I do the trust, how do I change the
• 10:57
  KT: deed if it's in both of our names? I want
• 11:00
  KT: to leave my half to my son when I pass.
• 11:03
  KT: Your help is much appreciated.
• 11:06
  Suze: So Marisol, this is what you really need to understand.
• 11:10
  Suze: Most likely what's going on in your life right now
• 11:13
  Suze: is you and your brother probably own that home,
• 11:17
  Suze: in what's called joint tenancy with right of survivorship because
• 11:21
  Suze: that's just how people do it, all right. Which means
• 11:24
  Suze: if one of you dies, it goes to the other
• 11:27
  Suze: one immediately without probate. The only problem with that is
• 11:32
  Suze: if that happens, and let's say you die first, it
• 11:36
  Suze: goes to your brother. He then dies. That whole house
• 11:41
  Suze: is governed by his trust or his will.
• 11:45
  Suze: And it goes to maybe his children and now you
• 11:49
  Suze: have disinherited your own son. So if that were to happen,
• 11:54
  Suze: then your son might not get anything. Therefore, first of all,
• 12:00
  Suze: you should own it in tenants in common.
• 12:05
  Suze: Which means you both own it, but when one of
• 12:08
  Suze: you dies, it's governed by your will or your trust.
• 12:14
  Suze: It doesn't pass to your brother. It's just that simple.
• 12:19
  Suze: And then your son would own it with your brother.
• 12:23
  Suze: If you have the must-have docs, and for everybody who
• 12:27
  Suze: doesn't know, the must-have docs are a will, a trust,
• 12:31
  Suze: an advanced directive, a durable power of attorney for health care.
• 12:35
  Suze: Go to musthavedocs.com. They are legal documents good in all
• 12:40
  Suze: 50 states. You can get them right there, and they're $99.
• 12:45
  Suze: $2,500 worth of state of the art documents, $99. However...
• 12:50
  Suze: You can own it in trust when it's tenants in
• 12:54
  Suze: common because it's just your half. So therefore your half
• 12:59
  Suze: would be owned as Marisol trustee for the Marisol Living
• 13:04
  Suze: revocable trust data da da da da, but it would
• 13:07
  Suze: be held tenants in common within the trust, just that simple.
• 13:11
  KT: Next question is from Sheila. This is another one about
• 13:15
  KT: a house in probate.
• 13:16
  KT: Can I just add my house to the trust and
• 13:19
  KT: leave my Roth IRA and 401k and bank accounts under beneficiaries?
• 13:26
  KT: Is it true that the house will only go to
• 13:30
  KT: probate and the other accounts do not?
• 13:33
  KT: I feel very overwhelmed. This is from Shelia.
• 13:36
  Suze: Oh my goodness, Shelia...
• 13:38
  KT: She said thank you for making me financially literate,
• 13:41
  Suze: Sheila. You don't
• 13:42
  Suze: have to feel overwhelmed. This is really so easy for
• 13:45
  Suze: you to understand, my love. Whenever an asset has a
• 13:51
  Suze: designated beneficiary.
• 13:53
  Suze: An IRA you can leave a beneficiary, and if you
• 13:58
  Suze: name the person as a beneficiary, of course it avoids
• 14:03
  Suze: probate because you've named somebody.
• 14:06
  Suze: Obviously if you have an insurance policy, has a beneficiary,
• 14:12
  Suze: goes right to them, avoids probate, a bank account you
• 14:16
  Suze: could do a pay on death account, you name a beneficiary,
• 14:20
  Suze: goes right to them. Now that beneficiary could also be
• 14:23
  Suze: the trust, just so you know, but what you say
• 14:26
  Suze: is true. A house on the other hand,
• 14:31
  Suze: usually will go through probate because it's held in your
• 14:35
  Suze: individual name. So you want a house that's held in
• 14:41
  Suze: the living revocable trust. Sheila, trustee for the Sheila Revocable
• 14:47
  Suze: Trust dated whenever you happen to do it, and then
• 14:50
  Suze: you leave it to whoever you want and therefore it
• 14:53
  Suze: bypasses probate just that simple. All right.
• 14:57
  KT: Next question's from Tina.
• 14:59
  KT: She said yesterday I was on a chat with a
• 15:02
  KT: Fidelity representative, discussing opening a contributory Roth IRA. At one
• 15:09
  KT: point I asked them to confirm that the 5-year waiting
• 15:13
  KT: period would start as of the beginning of this financial year.
• 15:18
  KT: I was told that the clock would start ticking the
• 15:22
  KT: date the account was open.
• 15:24
  KT: Has the rule changed or was I misinformed by the representative?
• 15:30
  Suze: What, what, what...
• 15:31
  KT: It says quizzy on that.
• 15:33
  Suze: You took my quizzy that I was going to give
• 15:36
  Suze: you that was in a pile of paper and you
• 15:38
  Suze: happen to take it.
• 15:39
  KT: I can answer. Was it want to wait till the
• 15:41
  KT: end for me to answer that?
• 15:42
  Suze: No,
• 15:43
  Suze: but this was going to be my quizzy for all
• 15:46
  Suze: of you, which is when does the 5 year clock start,
• 15:54
  Suze: when you first open a Roth IRA? quizzy, do you
• 15:59
  Suze: all know the answer to it, Tina was told,
• 16:04
  Suze: that the clock would start ticking the date the account
• 16:07
  Suze: was opened.
• 16:10
  Suze: But she thought it was at the beginning of the
• 16:13
  Suze: financial year, so she wants to know, has the rule
• 16:16
  Suze: changed or was I misinformed by the representative? KT?
• 16:20
  KT: When the account is opened.
• 16:24
  Suze: Without a shadow of a doubt?
• 16:25
  KT: Pretty much.
• 16:26
  Suze: Yep. So she opens it in June 5th, my birthday.
• 16:29
  Suze: The clock starts June 5th?
• 16:32
  KT: I believe so.
• 16:32
  Suze: (Suze makes the wrong answer noise)
• 16:35
  KT: It does start in the beginning?
• 16:36
  Suze: Listen, everybody, you can open up a Roth IRA for
• 16:42
  Suze: the first time, December 31, 2025.
• 16:49
  Suze: The clock will have been deemed to have started January 1st, 2025.
• 16:57
  Suze: So the truth of the matter is you only have
• 17:00
  Suze: four more years really, in actual time, to qualify.
• 17:07
  KT: So everyone should open it up at the end of the year.
• 17:09
  Suze: Not necessarily, but it's just because you also want to
• 17:12
  Suze: take advantage of tax-free growth. However, something very important about
• 17:16
  Suze: this email.
• 17:18
  Suze: A representative at a major brokerage firm gave this woman 100%
• 17:26
  Suze: incorrect information and if she hadn't been listening to the
• 17:33
  Suze: Women and Money podcast, if she hadn't already had direct
• 17:38
  Suze: knowledge and had been told other than that.
• 17:42
  Suze: She would be operating on the wrong assumption.
• 17:48
  Suze: So be very careful just because somebody has the designation
• 17:52
  Suze: of financial adviser. Just because somebody works for a major
• 17:56
  Suze: brokerage firm, does not mean they know what they are
• 18:00
  Suze: talking about, because chances are, and they may not.
• 18:05
  KT: I didn't know.
• 18:07
  Suze: You don't work for me.
• 18:11
  KT: Next question is from Sue.
• 18:13
  Suze: But that's an example, KT. People might think you know because
• 18:18
  Suze: we're together.
• 18:19
  KT: Oh no, I don't... I tell them I don't know... ask Suze.
• 18:21
  Suze: But if they had asked you and you had said no,
• 18:23
  Suze: da da da da, just like you did with such certainty,
• 18:26
  Suze: they might believe you.
• 18:29
  KT: So that means you gotta double check for yourself, everybody.
• 18:33
  KT: All right, this is from Sue. Hello, Suze and KT.
• 18:36
  KT: I hope you're having a great day. Are we having
• 18:39
  KT: a great day?
• 18:40
  Suze: Actually, I have to tell you we are.
• 18:41
  KT: It is pretty great.
• 18:43
  KT: I am new to buying individual stocks, and I am
• 18:46
  KT: not quite sure about the order type when buying, I
• 18:50
  KT: have to choose. And she gave me two examples. She
• 18:53
  KT: said market and limit. Suze, could you explain what these
• 18:57
  KT: mean and which one would you recommend? Thank you so
• 19:01
  KT: much for sharing all of your knowledge. I don't know
• 19:04
  KT: what that means market and limit.
• 19:06
  Suze: When you go to buy a stock on your own.
• 19:10
  Suze: You're online. You've gone to the brokerage firm, and now
• 19:15
  Suze: you want to enter an order. When you go to
• 19:18
  Suze: the place that you do so, the very first thing
• 19:21
  Suze: they're going to ask you to enter is the symbol
• 19:25
  Suze: of the stock that is in question here. The next
• 19:29
  Suze: question is, are you going to buy it or are
• 19:33
  Suze: you going to sell it?
• 19:35
  Suze: You will put buy if you want to buy it.
• 19:37
  Suze: You will put sell if you already own it and
• 19:39
  Suze: you want to sell it. Then they will ask you, well,
• 19:42
  Suze: the number of shares that you want to buy or
• 19:46
  Suze: you want to sell, and you will enter that number
• 19:48
  Suze: of shares.
• 19:50
  Suze: And then they will tell you if you have enough
• 19:53
  Suze: money in your account if you want to buy it
• 19:56
  Suze: to buy that number of shares. Now stocks trade all
• 20:01
  Suze: the time when the markets are open and even sometimes
• 20:05
  Suze: when the markets are closed in aftermarket hours. Since the
• 20:10
  Suze: price goes up and down and up and down, if
• 20:13
  Suze: you enter a market order...
• 20:16
  Suze: Either to buy or sell, what that means is that
• 20:21
  Suze: no matter what it is trading at, you are definitely
• 20:25
  Suze: going to buy it at that price. You have no
• 20:28
  Suze: control about the price, whatever the market
• 20:31
  Suze: bears the second they get that order, that is the
• 20:35
  Suze: price you are going to get. So you know 100%
• 20:39
  Suze: for sure you're going to buy or sell that stock.
• 20:42
  Suze: You just have to wait a few seconds to see
• 20:44
  Suze: what was the price that you got.
• 20:47
  Suze: However, maybe you only want to buy or sell it
• 20:51
  Suze: at a specific price. You do not want to just
• 20:55
  Suze: enter and say buy it at any price. You only
• 20:59
  Suze: want to buy it at a specific price, and that's
• 21:03
  Suze: known as a limit order. You have limited the price
• 21:08
  Suze: that you are willing to buy or sell at. You
• 21:12
  Suze: enter that price.
• 21:14
  Suze: It goes to the trading desk and then maybe it's
• 21:18
  Suze: filled and maybe it's not. Because if it doesn't trade
• 21:22
  Suze: at that price then your limit is not filled, just
• 21:26
  Suze: that simple.
• 21:28
  Suze: They also might ask you, by the way, is this
• 21:30
  Suze: a day order? Is this only good for the day
• 21:34
  Suze: and then it cancels, or is it a good till
• 21:37
  Suze: cancel order, which means that order stays in effect until
• 21:43
  Suze: you physically cancel it. That's what some of the terms mean, OK.
• 21:50
  KT: Little confusing, but...
• 21:52
  Suze: There was...
• 21:52
  Suze: That was the clearest explanation you would find anywhere. What
• 21:57
  Suze: are you talking about?
• 21:58
  KT: Buy sell buy sell. OK, next question is from Diana. Hey, Suze,
• 22:04
  KT: what's a K-1 conversion? Is this the best way to
• 22:09
  KT: not pay taxes on my pre-tax 401?
• 22:13
  KT: How do they work? Do you? I never heard of it.
• 22:17
  KT: First of all, I don't think there's a best way
• 22:18
  KT: not to pay taxes on anything.
• 22:20
  Suze: That's my girl. So Deanna, you're confused. There's a Roth conversion.
• 22:25
  Suze: There's no such thing as a K-1 conversion. And the
• 22:29
  Suze: best way to not pay taxes on your pre-tax 401k.
• 22:34
  Suze: Never have had opened one to begin with because you
• 22:37
  Suze: would have opened a Roth 401k and then you never
• 22:41
  Suze: would have paid taxes on it just so you know
• 22:44
  Suze: a K-1 form when you make an investment that happens
• 22:47
  Suze: to be a limited partnership or a subchapter, whatever it
• 22:51
  Suze: may be, some partnership with you.
• 22:54
  Suze: A K-1 is simply a tax form that reports your income,
• 22:57
  Suze: your deductions and credits from a partnership. That's it. That's
• 23:03
  Suze: all a K-1 happens to be. All right.
• 23:06
  KT: This is from Michelle. Hi KT and Suze. It's almost
• 23:11
  KT: open enrollment time for benefits with my employer.
• 23:15
  KT: They are offering a new benefit this year called... ready
• 23:19
  KT: for this... voluntary critical illness insurance. Never heard of that.
• 23:25
  KT: It provides a lump sum payment of 10,20 or 30,000
• 23:32
  KT: with increase in premium for each tier if me or
• 23:35
  KT: my spouse are diagnosed with one of the covered illnesses.
• 23:40
  KT: Have you heard of this? And if so, what do
• 23:42
  KT: you think of it? Now Michelle's 55, the husband's 61.
• 23:47
  KT: All right, you like this?
• 23:49
  Suze: Do you?
• 23:50
  KT: I don't even know. I mean, what kind of illness
• 23:52
  KT: would I get? Like what happens if I get COVID?
• 23:55
  Suze: No, so here's...
• 23:56
  KT: It said voluntary critical illness insurance.
• 23:58
  Suze: Normally a critical illness insurance isn't necessarily COVID, KT. It's
• 24:05
  Suze: really more like,
• 24:08
  Suze: a heart attack, a stroke, cancer, something that really is
• 24:13
  Suze: gonna do you in, it's critical. It's that, OK? And
• 24:18
  Suze: what you do is you get this lump sum of money.
• 24:21
  Suze: And in fact you can use it for anything that
• 24:24
  Suze: you want. It's not like health insurance or whatever that
• 24:27
  Suze: you have to use it for this and that. You
• 24:29
  Suze: can use it to pay your bills. In many cases
• 24:31
  Suze: you could take a trip with it. You could do
• 24:33
  Suze: whatever you want, and the premium for it is more
• 24:38
  Suze: expensive if you get 20,000 versus 10, 30,000 versus 20,
• 24:43
  Suze: and if they give it to you in one lump
• 24:44
  Suze: sum and
• 24:46
  Suze: it's tax free.
• 24:49
  KT: I like that part.
• 24:50
  Suze: So at their age it's not a bad idea because
• 24:55
  Suze: not only can she insure herself, usually the spouse is
• 24:58
  Suze: insured as well.
• 25:00
  KT: So what's the catch on something like this? It almost
• 25:02
  KT: sounds too good to be true.
• 25:03
  Suze: Everything is. Now here's the thing, everybody.
• 25:08
  Suze: After the age of 61 KT, your premiums tend to
• 25:11
  Suze: go higher and higher because the more of a chance
• 25:15
  Suze: that you have to come down with something, the more
• 25:19
  Suze: they charge you. Also,
• 25:21
  Suze: not all cancers, not all heart conditions qualify, so you
• 25:28
  Suze: have to ask before you buy this, well, what kind
• 25:30
  Suze: of cancer? What are they? Also, is there a waiting period?
• 25:38
  Suze: Because sometimes they have a 30 to 90 day waiting
• 25:41
  Suze: period before coverage will kick in and
• 25:46
  Suze: if you have a preexisting condition, some policies will exclude them.
• 25:53
  Suze: So you got to ask questions about this before you
• 25:58
  Suze: just go ahead and sign up, get the details. The
• 26:01
  Suze: devil is in the details.
• 26:04
  KT: Yeah, I think for me when I read it, a
• 26:06
  KT: critical illness sounds like you're not going to recover.
• 26:11
  Suze: I don't know. You have to you have just ask.
• 26:12
  KT: That's the first question I want to know. OK.
• 26:16
  KT: Next question I have here is from Adrian, and Adrian asks,
• 26:20
  KT: Hi Suze, I've made the mistake of not saving throughout
• 26:24
  KT: my lifetime. And even though I'm married, my husband was
• 26:28
  KT: never my financial provider. I'm 51 years old. I plan...
• 26:34
  Suze: Don't tell me I caused another divorce.
• 26:35
  KT: No, no, no, I don't think so.
• 26:38
  KT: With that being said, how do I start to save
• 26:41
  KT: in a way that is beneficial to me at my
• 26:44
  KT: age when in all honesty I am just realizing I
• 26:48
  KT: have to start to take care of me.
• 26:52
  Suze: Maybe a divorce is on the horizon.
• 26:55
  KT: Maybe soon. Yes, I have a student loan. The mortgage
• 26:57
  KT: is another topic, and I know my issues in debt,
• 27:00
  KT: but I want to buckle down before I look up,
• 27:03
  KT: and I cannot. I am reading your book Women and Money,
• 27:06
  KT: so is that enough to get me started?
• 27:09
  Suze: Listen, it's a start. I'll tell you the book Women
• 27:12
  Suze: and Money is an absolute start. Listening to the Women
• 27:16
  Suze: and Money podcast, however, twice a week is even a
• 27:20
  Suze: better start.
• 27:22
  Suze: But you have to start making smart decisions with your money.
• 27:27
  Suze: I just heard KT say you have student loan debt
• 27:31
  Suze: at the age of 51. You have credit card debt
• 27:35
  Suze: at the age of 51.
• 27:37
  Suze: Whatever those reasons are, you first have to tackle your debt.
• 27:42
  Suze: Don't think about saving for your future until you have
• 27:46
  Suze: taken care of your mistakes of the past. Now I'm
• 27:51
  Suze: not saying to you that a
• 27:52
  Suze: student loan is a mistake, but an unpaid student loan
• 27:56
  Suze: is a serious mistake because they aren't dischargeable currently in bankruptcy.
• 28:02
  Suze: So you take care of yourself one step at a time.
• 28:06
  Suze: Don't plan for the future until you have cleaned up
• 28:10
  Suze: your past. Contribute obviously to only Roth retirement accounts, especially
• 28:16
  Suze: if they match your contribution.
• 28:19
  Suze: And little by little you can do this. It's not
• 28:23
  Suze: that hard. All right, KT.
• 28:25
  KT: So Suze, my last question is short but sweet. What's
• 28:29
  KT: the difference between titling your financial asset in your trust
• 28:34
  KT: and naming your trust as a beneficiary?
• 28:37
  Suze: Well, that's actually
• 28:38
  Suze: a good question.
• 28:39
  KT: Here we go.
• 28:40
  Suze: Listen to me, everybody.
• 28:43
  Suze: Your only concern should not be, do my beneficiaries get
• 28:49
  Suze: this asset without probate, because so many of you think
• 28:53
  Suze: that the only reason for a trust is so that
• 28:58
  Suze: the asset will bypass probate, wrong, wrong, wrong if your
• 29:06
  Suze: asset is in a trust.
• 29:08
  Suze: And a trust that has an incapacity clause like the
• 29:12
  Suze: trust of the must have documents happens to have.
• 29:16
  Suze: You have a stroke. Something happens. You get hit by
• 29:20
  Suze: a car, whatever it is. Then the house or your
• 29:25
  Suze: asset is already in trust. You have named a successor trustee,
• 29:31
  Suze: the person that you designated to make decisions if you
• 29:35
  Suze: yourself couldn't make them, and then that person can take
• 29:38
  Suze: care of everything.
• 29:41
  Suze: If the house is not in trust or your assets
• 29:45
  Suze: are not in trust, but the trust is the beneficiary,
• 29:50
  Suze: something happens to you, they can't write checks for you.
• 29:53
  Suze: They can't help you. They can't do anything. They only
• 29:57
  Suze: benefit when you have died.
• 30:00
  Suze: A trust can serve more than just the purpose of
• 30:05
  Suze: bypassing probate. It can serve for you to take care
• 30:09
  Suze: of yourself when you can't do it for yourself. All right, everybody,
• 30:16
  Suze: and again, every single one of you, you know, I
• 30:19
  Suze: was talking to KT this morning.
• 30:21
  Suze: About we... and if you have any good ideas let
• 30:24
  Suze: me know because we're redoing our website and so KT
• 30:29
  Suze: is featuring the Women and Money podcast and she's looking
• 30:33
  Suze: for a...
• 30:35
  KT: A description, no, no, no, a description.
• 30:38
  Suze: Like how do you...
• 30:39
  KT: How would you describe in two sentences the Women and
• 30:42
  KT: Money podcast without it being boring and typical we want
• 30:47
  KT: something that that really sets this apart so if you
• 30:51
  KT: have a good descriptor...
• 30:53
  Suze: Let us know go to the Women and Money community
• 30:55
  Suze: app or even send it in on ask Suze podcast@gmail.com.
• 31:01
  Suze: Say idea idea we'll see it. But anyway, I was
• 31:05
  Suze: telling her when she was asking me this, I said,
• 31:08
  Suze: you know, KT can't we do something like...
• 31:10
  Suze: The biggest mistake you will ever make is the mistake
• 31:14
  Suze: you don't even know that you are making. Because I
• 31:18
  Suze: really believe from my heart, everybody, that one of the
• 31:21
  Suze: things the Women and Money podcast does, it keeps you
• 31:25
  Suze: from making mistakes, mistakes that your financial advisor and a
• 31:30
  Suze: major brokerage firm told you, which would have been a mistake,
• 31:34
  Suze: a mistake of many things.
• 31:38
  Suze: I don't want you to make mistakes, so, write in
• 31:43
  Suze: what you think.
• 31:44
  KT: It just, it's called a description.
• 31:46
  Suze: So what should
• 31:46
  KT: the descriptor, the descriptor for
• 31:49
  Suze: the Women and Money podcast be. And if we happen to choose...
• 31:53
  KT: I'll send you a prize.
• 31:55
  Suze: We'll send you something seriously,
• 31:57
  KT: something great,
• 31:58
  Suze: Something really great because I just want to say one
• 32:00
  Suze: other thing. The book I wrote, the Young, Fabulous and
• 32:04
  Suze: Broke book that title came from.
• 32:07
  Suze: Somebody who is listening to the TV show or my
• 32:10
  Suze: radio show something...
• 32:12
  KT: We made a contest, I think.
• 32:13
  Suze: We chose it and we sent them a gift as well.
• 32:17
  Suze: So let us know and maybe we'll send you a
• 32:21
  Suze: little gift. There's really only one thing we want you
• 32:23
  Suze: to remember when it comes to your money, and it
• 32:25
  Suze: is this:
• 32:26
  KT: P eople first, then money, then things.
• 32:29
  Suze: Are you stay safe, stay healthy.
• 32:33
  Suze: And make sure you make your money, make more money.
• 32:37
  Suze: All right, everybody, till then, now we love you.
• 32:40
  KT: Bye bye.