Latest / Suze Orman's Women & Money (And Everyone Smart Enough To Listen) / What Are You Proud Of?

Transcript

What Are You Proud Of? · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:07
  Suze: February 26, 2026. Welcome everybody to
• 0:13
  KT: the Women and Money podcast
• 0:15
  Suze: and
• 0:16
  Suze: everybody smart enough to listen. This is the KT and
• 0:20
  Suze: Suze edition. Yes it is...
• 0:22
  KT: Ask anything.
• 0:23
  Suze: So this is where if you have a question, everybody,
• 0:26
  Suze: and it's short.
• 0:28
  Suze: And it makes sense, and you give me enough information
• 0:31
  Suze: that maybe it could be answered, all right, because KT
• 0:35
  Suze: looks at that when she looks at the emails, and
• 0:38
  Suze: she chooses it, it will be answered on this podcast. Again,
• 0:43
  Suze: write to ask Suze podcast at gmail.com.
• 0:48
  Suze: Are you sad?
• 0:49
  KT: I'm a little sad, everybody, because Mother Nature did not
• 0:52
  KT: want Suze and I to fly to New York today.
• 0:57
  Suze: We are supposed to be right after this, go to the plane.
• 0:59
  KT: We are supposed to be on our way to Manhattan.
• 1:02
  KT: We had lots and lots of wonderful gatherings, reunions, and
• 1:06
  KT: most of all, tomorrow, a very special birthday celebration with
• 1:13
  KT: Larry Gallant, Amy's husband, Amy, our executive producer.
• 1:17
  KT: Larry's birthday is during Chinese New Year this year. We
• 1:22
  KT: planned for you, Larry, the most amazing Chinese New Year
• 1:27
  KT: dinner and a dessert beyond the beyond, and I'm not
• 1:30
  KT: gonna tell you anything else until next year when we'll
• 1:33
  KT: try it all over again.
• 1:35
  Suze: Happy. Birthday, my friend. All right, what you got, KT?
• 1:38
  KT: OK, so I wanna open with a story. This isn't
• 1:41
  KT: a question, and, and sometimes I love when you all
• 1:44
  KT: send me your stories or, or things that you've experienced
• 1:48
  KT: from Suze, and this one is particularly special. It's from
• 1:52
  KT: a gentleman by the name of Sloan. Dear Suze and KT,
• 1:56
  KT: thank you for everything you've both done for me.
• 1:59
  KT: I first started listening to you back in 2005 when
• 2:04
  KT: Suze hosted the Suze Orman Show on CNBC Saturday nights
• 2:09
  KT: when I was babysitting in high school, I would put
• 2:12
  KT: the kids down and watch the show, and you taught
• 2:15
  KT: me so much about money and later, ready for this,
• 2:20
  KT: about accepting myself as a gay man, particularly at the
• 2:26
  KT: end of each episode when you would say good night
• 2:29
  KT: to KT. Do you remember that, Suze?
• 2:33
  Suze: KT, of course I do. Otherwise, why would I? Of
• 2:35
  Suze: course I do.
• 2:36
  KT: So she would say good night. I was probably with
• 2:39
  KT: her in the studio, but it was always aired fairly
• 2:42
  KT: late on Saturday nights, and she would always end by
• 2:45
  KT: saying goodnight to KT.
• 2:46
  KT: So, fast forward now, Sloan said, I'm 37, married to
• 2:51
  KT: a fantastic husband. We are multi-millionaires from the advice you
• 2:57
  KT: shared on the show and in your books, and then he,
• 3:00
  KT: he quotes all Suze's favorite things, open a Roth, make
• 3:04
  KT: yourself indispensable to your employer when you're young, Fab and broke,
• 3:08
  KT: M stands for marriage, M for money, live below your means,
• 3:12
  KT: within your needs, among others. Uh, he's quoting everything you
• 3:16
  KT: ever taught him, and he said getting to this point
• 3:19
  KT: wasn't always easy. I had a difficult coming out experience
• 3:24
  KT: with a family who took it quite hard.
• 3:27
  KT: But seeing role models like you and KT gave me confidence,
• 3:32
  KT: and I was not alone as the only gay kid
• 3:34
  KT: in a small town. And then he said there have
• 3:37
  KT: been ups and downs over my corporate career during the
• 3:40
  KT: last 15 years, but throughout it all I diligently kept
• 3:45
  KT: contributing to my Roth accounts. I am so blessed.
• 3:50
  KT: Most importantly, I'm out proud and loving life here in
• 3:55
  KT: New York City with a family and in-laws who are
• 3:59
  KT: wonderful and who have come around. I fundamentally believe I
• 4:04
  KT: would not be where I am today without your wisdom
• 4:08
  KT: and inspiration. Isn't that sweet?
• 4:11
  KT: That's from Sloan, to you Suze.
• 4:12
  Suze: Look at my little face, you know what I'm sitting here thinking.
• 4:18
  Suze: Am I more proud seriously that maybe my advice that
• 4:23
  Suze: he chose to take made him multi-millionaire all right, or
• 4:29
  Suze: am I more proud,
• 4:32
  Suze: that because we have not ever hidden our love for
• 4:36
  Suze: one another.
• 4:38
  Suze: In my entire professional career, even before I met KT,
• 4:43
  Suze: I was so proud of being gay. I loved my life.
• 4:48
  Suze: I loved who I was, and I didn't let anything
• 4:52
  Suze: hold me back because of that. Am I more proud
• 4:57
  Suze: because I touched one little boy's heart,
• 5:01
  Suze: that made him not feel so all alone and now
• 5:04
  Suze: look at him and I have to tell you which
• 5:06
  Suze: one do you think I'm more proud about?
• 5:08
  KT: Absolutely for touching his heart, bar none. I mean that's
• 5:12
  KT: not even a question. There's things in life that money
• 5:17
  KT: will never ever buy or replace and
• 5:21
  KT: one of them is feeling happy and proud and in
• 5:25
  KT: love with who you are.
• 5:27
  Suze: Yeah, it's right. Yeah, so Sloan, thank you so, so,
• 5:32
  Suze: so much.
• 5:32
  KT: Yeah, thanks for sharing that. I wanted to open today's, um,
• 5:36
  KT: podcast with your story, Sloan. I'm also proud that you're
• 5:39
  KT: a multi-millionaire. Good for you. Why not?
• 5:44
  KT: OK, my next question is from Chuck, and, and this
• 5:48
  KT: one is equally a great story. He says, Hi, Suze,
• 5:51
  KT: I'm a 62-year-old postal carrier in good financial shape, but
• 5:57
  KT: I have a question and I really don't know what
• 6:00
  KT: direction to go. My daughter is 26. She has a
• 6:04
  KT: good job at JPMorgan in New York. She makes about
• 6:07
  KT: $125,000 seems to be going in the right direction.
• 6:13
  KT: She maxes out her Roth, gets the full match on
• 6:16
  KT: her 401k. She has no debt and does a great
• 6:20
  KT: job of budgeting her money. Here's my question. She has
• 6:24
  KT: a serious boyfriend. They're talking about getting engaged.
• 6:28
  Suze: How old is his daughter?
• 6:29
  KT: She's 26. Ready? It's OK. He does not make the
• 6:34
  KT: same money as my daughter. He makes about 90,000, but
• 6:38
  KT: he's a trust fund baby, and I'm thinking a pretty
• 6:41
  KT: substantial amount.
• 6:43
  KT: I don't even think he knows how much, but his
• 6:46
  KT: mom was a partner in a hedge fund, and she
• 6:50
  KT: hangs out with friends that are extremely wealthy people, so
• 6:54
  KT: Chuck the mailman is, you know, kind of us
• 6:57
  KT: this story. Then he said.
• 6:59
  KT: That said, there will be a prenup for my daughter
• 7:01
  KT: to sign before they get married, and my daughter said
• 7:04
  KT: she has no problems doing that, and that's fine, but Suze,
• 7:09
  KT: who should she get to read over this agreement, and
• 7:12
  KT: what kind of documents should she have drawn up in
• 7:16
  KT: case she makes a lot more money than
• 7:18
  KT: him down the road and to protect her when children
• 7:22
  KT: become involved. I listen to your podcast every week while
• 7:26
  KT: delivering mail. I love that and I've never heard this
• 7:30
  KT: brought up before. The young man is a nice kid,
• 7:34
  KT: but I'm old enough to know things in life happen
• 7:37
  KT: and I just wanna steer my daughter in the right direction.
• 7:42
  KT: Chuck the mailman. Chuck, Chuck the mailman, Chuck, I wish
• 7:46
  KT: you delivered our mail.
• 7:48
  KT: I love the mailman.
• 7:50
  Suze: Chuck, here's what's really important. It's not so much between
• 7:57
  Suze: her and her boyfriend, believe it or not.
• 8:00
  Suze: What's going to be very important in my opinion, is
• 8:04
  Suze: that his mother really loves your daughter, and they have
• 8:11
  Suze: a very, very close relationship.
• 8:15
  Suze: And one way that will become true is if your
• 8:20
  Suze: daughter is happy to sign a prenup. Your daughter wants
• 8:25
  Suze: to protect her current boyfriend, possible fiancee, possible husband's future inheritance,
• 8:33
  Suze: and it's going to be coming obviously from his mother.
• 8:39
  Suze: So, his mother is always going to want to protect
• 8:43
  Suze: her money that she wants to make sure goes to
• 8:47
  Suze: her son. If her son decides to use some of
• 8:50
  Suze: it to help them live a nice lifestyle, OK.
• 8:54
  Suze: But here's the advice. Number one, she cannot sign a
• 9:01
  Suze: prenup on the way to the altar. It will not
• 9:04
  Suze: be valid, especially in the state of New York. She
• 9:07
  Suze: has to really do that now. She needs to get
• 9:12
  Suze: her own matrimonial attorney, her prenup attorney, not just a
• 9:16
  Suze: regular attorney, but somebody who seriously
• 9:21
  Suze: knows how to draw up prenups and that really understands
• 9:27
  Suze: the way to do it and protects her in case
• 9:30
  Suze: she has increases in salary on all kinds of things
• 9:35
  Suze: so it's really not that difficult, believe it or not
• 9:39
  Suze: again they both need to be represented by an attorney.
• 9:42
  Suze: I'm sure he will be. I'm sure his mother will
• 9:46
  Suze: absolutely take care of that.
• 9:48
  Suze: But she does as well, and they both need to
• 9:52
  Suze: divulge to each other how much money they have, everything
• 9:56
  Suze: they know about their money.
• 9:59
  Suze: And then don't worry about it after that, really, let
• 10:04
  Suze: his be his from his mom. Let what they make
• 10:08
  Suze: together will have to be divided. That won't be necessarily
• 10:11
  Suze: protected by a prenup.
• 10:13
  Suze: But she just needs her own lawyer, and changes should
• 10:18
  Suze: always be made to those prenups. But don't wait to
• 10:22
  Suze: do it right before she's married cause it won't be valid.
• 10:27
  Suze: Maybe that will help her all right.
• 10:31
  KT: OK.
• 10:32
  KT: This is from Holly, Suze. She said, Hi. I had
• 10:36
  KT: made a comment in the Women and Money blog and
• 10:38
  KT: I was contacted by a "Suze" saying, let's continue the
• 10:44
  KT: conversation via WhatsApp. I was afraid it was a scam
• 10:47
  KT: or fake Suze, so I didn't respond. It was several
• 10:52
  KT: days ago but was bothering me because if it was you, Suze,
• 10:56
  KT: I feel terrible for not replying, so I thought I'd
• 10:59
  KT: better check with you all. Thanks very much and again
• 11:03
  KT: apologies if it was not a fake or AI.
• 11:06
  Suze: It was such a scam, I can't even tell you, right?
• 11:09
  Suze: And what you have to understand, everybody, is I would
• 11:13
  Suze: never ever say to you, let's continue this on WhatsApp.
• 11:17
  Suze: I actually don't even use WhatsApp.
• 11:20
  Suze: So I would never say that number one. Number two,
• 11:24
  Suze: if anything, I might maybe answer you in the blog
• 11:30
  Suze: or answer you on the app, but I've stopped doing
• 11:34
  Suze: that as well because people have been imitating me, so no,
• 11:39
  Suze: I am not responding
• 11:41
  Suze: to you, you are not to think it's me. If
• 11:44
  Suze: I do want something from you, trust me, I'll find
• 11:47
  Suze: a way to get in touch with you personally, and
• 11:50
  Suze: you'll know it's me. But, um, it, I, I can't
• 11:55
  Suze: tell you how upset it is.
• 11:57
  Suze: That all this scamming is going on. So I ask
• 12:00
  Suze: you to be very, very, very careful. All right, KT.
• 12:05
  KT: OK, this is from Kay. She said, Hi, Suze and KT.
• 12:10
  KT: I'm 36 without kids and after paying off my student loans,
• 12:14
  KT: I am finally debt-free with an emergency fund for the
• 12:19
  KT: first time in my adult life thanks to your podcast. Congratulations, Kay.
• 12:26
  KT: She said...
• 12:26
  Suze: Congratulations, Suze.
• 12:28
  KT: Congratulations, Suze.
• 12:30
  Suze: I, I just wanna say something a little bit ago
• 12:33
  Suze: you were talking, I think it was Sloan, and you
• 12:35
  Suze: said how proud you were that he was also a multi-millionaire. Well,
• 12:39
  Suze: what did you have to do with that?
• 12:41
  KT: I'm just proud of him, proud for him.
• 12:45
  Suze: Oh, for him. All right, OK, just wondering.
• 12:47
  KT: And I, I think I influence everyone a little here.
• 12:51
  KT: Maybe a lot. So, so Kay keeps saying, Suze, I
• 12:55
  KT: have an HSA account and I'm very excited to invest that...
• 12:59
  Suze: What's an HSA account?
• 13:00
  KT: A Health Savings Account, and I am very excited to
• 13:04
  KT: invest that money into the stock market. My employer funds
• 13:09
  KT: the HSA $1,000 out of the $1,700 deductible.
• 13:14
  Suze: Fabulous.
• 13:15
  KT: You always say not to invest with money you may
• 13:18
  KT: need anytime soon.
• 13:20
  KT: And here's Kay's question. She said, So what if I
• 13:23
  KT: invest and then have unforeseen medical expenses this year, she's saying,
• 13:29
  KT: and my investments are down.
• 13:31
  KT: So that's her question, and you know she's asking what
• 13:34
  KT: should she do? Should she invest?
• 13:37
  Suze: Yeah, so here's the thing, I read this one, KT,
• 13:41
  Suze: and I asked Kay just a very simple question. What
• 13:45
  Suze: is her max out of pocket expense? Because every health
• 13:50
  Suze: savings account has a deductible. In this case for Kay,
• 13:54
  Suze: it's $1,700 which is actually very good, by the way.
• 13:58
  Suze: And everyone has a max out of pocket expense, meaning
• 14:03
  Suze: an amount of money that no matter what happens, no
• 14:07
  Suze: matter how sick she is, no matter what goes on,
• 14:10
  Suze: she never will have to pay more than that out
• 14:12
  Suze: of her own pocket. And for Kay it was $3,100
• 14:16
  Suze: which is also incredibly low. So I didn't answer Kay directly,
• 14:22
  Suze: but I'm gonna answer her now. I just needed that
• 14:25
  Suze: piece of information.
• 14:26
  Suze: OK, here's the scoop. They're giving you $1,000.
• 14:31
  Suze: So, you just need to make sure that you keep
• 14:34
  Suze: $700 safe to meet the $1,700 deductible, correct? You got that? So,
• 14:42
  Suze: you have that money. However, on top of that, you
• 14:46
  Suze: have to make sure that you never pay more than
• 14:48
  Suze: $3,100 out of your own pocket.
• 14:52
  Suze: If you have $3,100 in a money market account, in
• 14:57
  Suze: a savings account, anywhere that you can access it, and
• 15:00
  Suze: you just happen to know,
• 15:02
  Suze: that that is for the max out of pocket expense
• 15:07
  Suze: you could invest anything that you want then above the
• 15:11
  Suze: deductible in the HSA investment choices if you do not
• 15:17
  Suze: have any extra money at all. You don't have that
• 15:21
  Suze: $3,100 extra.
• 15:23
  Suze: Then don't invest the $3,100 plus $1,700. Just keep it
• 15:30
  Suze: in the money market account in the HSA so it
• 15:33
  Suze: is there, and then you'll be fine no matter what.
• 15:37
  Suze: Either way, you'll be great. Yeah.
• 15:41
  KT: All right, Suze, this next question makes me curious. It's
• 15:44
  KT: from Patty. My husband saw an ad for something called Goldbacks.
• 15:50
  KT: He thinks it's a great way to access gold for
• 15:54
  KT: a smaller investment. I think it looks like a scam.
• 15:58
  KT: Do you know anything about these Goldbacks? Do you?
• 16:02
  Suze: I do.
• 16:03
  KT: Tell, tell us.
• 16:04
  Suze: You know, KT, right now everybody's still talking about gold, gold, gold, silver, silver, silver.
• 16:11
  Suze: And so, people are trying to get people to invest
• 16:15
  Suze: in gold in all little ways, OK.
• 16:18
  Suze: So Goldbacks literally are physical notes that contains a very
• 16:24
  Suze: that like a piece of paper KT and on the
• 16:28
  Suze: paper it contains a very small amount of 24 karat
• 16:34
  Suze: gold that's sealed between like these this plastic thing now
• 16:39
  Suze: like this polymer, you know, the things that are and
• 16:41
  Suze: there's a little tiny bit of gold in there.
• 16:44
  KT: So it's physical gold... it's like a piece of gold.
• 16:47
  Suze: A little tiny bit of it. So each one has
• 16:51
  Suze: a measured gold content. So Goldbacks can contain, get ready
• 16:58
  Suze: for this, like 0.0001 ounce troy ounce of gold, do you know how
• 17:04
  Suze: little that is?
• 17:06
  Suze: And so what happens is they're created by this private company,
• 17:10
  Suze: not by the US government. That is number one, and
• 17:13
  Suze: some people use them as a collectible, a way to
• 17:16
  Suze: own small amounts of gold or whatever it may be, OK,
• 17:21
  Suze: meaning some small businesses though, do choose to accept them
• 17:26
  Suze: for money, don't ask me why, but they do. But
• 17:29
  Suze: they're not widely used like dollars, so no, they aren't
• 17:33
  Suze: fake gold. There really is gold in them. When you
• 17:37
  Suze: think about it.
• 17:38
  KT: What do you do with it?
• 17:39
  Suze: So are they, what do you think? Is that a scam?
• 17:41
  Suze: Is it not? What would you do? What would you
• 17:43
  Suze: tell her?
• 17:44
  KT: I guess it's not a scam, but what do you
• 17:46
  KT: do with it?
• 17:47
  KT: It's not a practical investment in my opinion, because what
• 17:51
  KT: if you need the money, you wanna sell this Goldback,
• 17:55
  KT: how do you do that?
• 17:56
  Suze: Here's what's so sad, all right, is that they're not
• 18:00
  Suze: US legal tender in the way like dollars are, but
• 18:04
  Suze: many sellers, as I said, claim you can use it
• 18:07
  Suze: for money, you cannot, you cannot easily spend them. Just
• 18:12
  Suze: remember I said that.
• 18:13
  Suze: Now, there are many people who sell these that have
• 18:17
  Suze: targeted
• 18:18
  Suze: people like her husband, they have targeted seniors or vulnerable
• 18:24
  Suze: buyers with these high pressure sales claiming exaggerated benefits and
• 18:30
  Suze: guaranteed returns and all these things, so on some level
• 18:35
  Suze: they're kind of a legitimate scam, believe it or not.
• 18:38
  KT: A Legal scam...
• 18:39
  Suze: Kind of, but gold back, the reason I don't want
• 18:42
  Suze: any of you to buy them, all right, everybody, is
• 18:45
  Suze: that they carry a very high premium over the actual
• 18:50
  Suze: gold content. What does that mean? So what that means
• 18:53
  Suze: is you and I go and we buy gold. We
• 18:55
  Suze: pay whatever gold is going for.
• 18:58
  Suze: The ounce it's going for whatever we pay that amount
• 19:02
  Suze: here maybe gold is going for x and they charge
• 19:05
  Suze: you x plus maybe 20% or 30% or some percentage
• 19:10
  Suze: because that's how they make their money.
• 19:12
  Suze: So you might pay more than what the gold inside
• 19:16
  Suze: is even worth, everybody, if you're thinking about it in
• 19:19
  Suze: terms of investment terms. So, here's the bottom line, legitimate product, OK, maybe,
• 19:26
  Suze: but not a guaranteed investment. Can you just tell your husband,
• 19:30
  Suze: stay away? Why doesn't he play cards of a different kind,
• 19:34
  Suze: like gin rummy or whatever, but not these.
• 19:39
  KT: I still, I still don't know if you, if you
• 19:42
  KT: collect them, how do you redeem it? Where do you
• 19:45
  KT: redeem a Goldback?
• 19:47
  Suze: There's some people that you can redeem them with like the,
• 19:50
  Suze: the sellers and all, but KT, they're not even worth
• 19:53
  Suze: us discussing if you wanna know the truth.
• 19:56
  KT: That's the answer. There you go, everybody.
• 19:59
  KT: OK, this is from Roberta.
• 20:02
  KT: Suze and KT, I have two questions. I, I like this.
• 20:08
  KT: I like this one a lot. This one reminds me
• 20:10
  KT: of my family too. She said, I grew up poor
• 20:13
  KT: with six siblings, nothing like siblings. I have a net
• 20:17
  KT: worth of approximately $9.5 million listening to Suze's advice for
• 20:25
  KT: the past 30+ years.
• 20:29
  Suze: I'm wait, I have to say something, right?
• 20:32
  Suze: This may have been our second one today, KT about
• 20:35
  Suze: how we have created millionaires by listening to my advice. Wait.
• 20:39
  Suze: It wasn't listening to my advice. It was following my advice, following.
• 20:48
  Suze: So for those of you listening right now, if all
• 20:50
  Suze: you're doing is listening, not gonna help you at all.
• 20:53
  Suze: You gotta take action. Do you hear me? Action, action, action.
• 20:57
  KT: So Roberta said, Suze, I'm 65 years old and just
• 21:01
  KT: retired this year.
• 21:03
  KT: I have a sister, four years older than myself. My
• 21:07
  KT: sister selflessly retired five years ago after working over 30
• 21:13
  KT: years in a factory to care for my 90-year-old mother.
• 21:19
  KT: We could never repay her as she took better care
• 21:22
  KT: of our mother than any one we could pay.
• 21:25
  Suze: That's how we felt about Lynn.
• 21:27
  KT: Yes, I said that. It reminds me of my sister.
• 21:30
  KT: My sister made slightly more than minimal wage her whole career.
• 21:35
  KT: I would like to give her my portion of my
• 21:38
  KT: inheritance upon my mother's death. My mother's house and accounts
• 21:43
  KT: are held in LLC transferrable
• 21:46
  KT: to her seven children upon her death, can I do
• 21:50
  KT: this without paying taxes? I also wish to put in
• 21:54
  KT: my trust that my sister receive a large sum of
• 21:58
  KT: money from my IRA account. If she is 69, four
• 22:03
  KT: years my senior, can the IRA funds be moved from
• 22:07
  KT: my IRA to hers? I don't think so. Can they?
• 22:11
  Suze: No, they can't.
• 22:12
  KT: Yeah, no.
• 22:12
  KT: And Suze, can she use it as her IRA without
• 22:16
  KT: the 10 year withdrawal rule applying?
• 22:20
  Suze: So Roberta, first of all, in terms of that you
• 22:24
  Suze: want to give your portion of your mother's house on
• 22:27
  Suze: her death to your sister, you can do two things
• 22:31
  Suze: go and talk to your mom. Say, Mom...
• 22:35
  Suze: I really want to do this. Can you change your will?
• 22:38
  Suze: Can you change your trust to give her my share,
• 22:42
  Suze: and that would be the easiest. Otherwise, the other thing
• 22:46
  Suze: you can do is, when Mom dies and you get
• 22:49
  Suze: your portion, just disclaim it. Just say you want it
• 22:52
  Suze: to go to your sister. You don't want it, so
• 22:55
  Suze: you don't accept it. It really is kind of just
• 22:58
  Suze: that easy, but the best way to do it really.
• 23:02
  Suze: Would be for Mom to change it right now and
• 23:06
  Suze: maybe mom will look at things and go.
• 23:08
  Suze: Well, maybe I should do that with more than just
• 23:10
  Suze: Roberta share, just a thought. Next, your sister is four
• 23:15
  Suze: years older than you, so she cannot take on money
• 23:23
  Suze: that's in your IRA as her IRA. The only person
• 23:28
  Suze: that can do that is a spouse, where a spouse
• 23:31
  Suze: can take on your IRA on your death as his
• 23:35
  Suze: or her IRA.
• 23:37
  Suze: However, your sister is older than you, so now she
• 23:41
  Suze: qualifies under what's called an eligible designated beneficiary, which I've
• 23:48
  Suze: talked about many, many times. But what an eligible designated
• 23:52
  Suze: beneficiary is upon your death, when you leave her money,
• 23:59
  Suze: it will be in an inherited IRA, her name on
• 24:02
  Suze: it and everything, OK, number one.
• 24:06
  Suze: Number two, she does not have to wipe it clean
• 24:09
  Suze: within 10 years. She can do it over her entire
• 24:13
  Suze: life span because she is what's called an eligible designated beneficiary.
• 24:19
  Suze: If she was not, then the 10 year would apply
• 24:23
  Suze: to her, but I just want to say something to you, OK.
• 24:28
  Suze: She's four years older than you.
• 24:32
  Suze: And KT and I often talk about this as well.
• 24:35
  Suze: Do you really want to have to wait till you
• 24:38
  Suze: die to give her money? Really?
• 24:43
  Suze: When she's older than you.
• 24:45
  Suze: So, how are you gonna feel if she dies before you,
• 24:51
  Suze: and you never got to give her any of your
• 24:53
  Suze: IRA or anything like that. So, given that you have
• 24:58
  Suze: such a great net worth,
• 25:01
  Suze: and eventually here you're gonna be taking money out of
• 25:04
  Suze: your IRA anyway. Why not with the money that you
• 25:08
  Suze: take out every year? You pay taxes on it and
• 25:13
  Suze: you can give it to her or do whatever you want.
• 25:16
  Suze: You can give some of it, take it off your
• 25:18
  Suze: unified credit, you know, some of it will go where
• 25:21
  Suze: it's not taxable to her or you. Just depends on
• 25:24
  Suze: the year you do it, but think about doing that now.
• 25:30
  Suze: 'Cause otherwise I just have to say this. Think about
• 25:33
  Suze: how she must feel. She knows she doesn't have any money.
• 25:37
  Suze: She knows she's taking care of your mother, which is
• 25:40
  Suze: probably the greatest gift that she's ever given to herself,
• 25:43
  Suze: bar none. But she has nothing. She has nothing. And
• 25:48
  Suze: so she has to be worried about herself and what
• 25:51
  Suze: is she going to do when she gets older? Who's
• 25:54
  Suze: going to take care of her like she's taking care
• 25:57
  Suze: of your mother.
• 25:59
  Suze: So you make sure, Roberta, that you take care of
• 26:03
  Suze: that somehow for her just saying.
• 26:07
  KT: And Roberta, talk to your other siblings about it
• 26:10
  Suze: As well.
• 26:11
  KT: Have them put a little money in the pot for this caregiving sister.
• 26:15
  Suze: I want, I just wanna tell you all a little
• 26:17
  Suze: story that happened the other day. Last Saturday we had
• 26:22
  Suze: a friend by the name of Paula Canny who came
• 26:26
  Suze: from California to Florida to do a few things here
• 26:30
  Suze: with her old friend,
• 26:32
  Suze: by the name of Cathy and they're just good friends, fabulous,
• 26:36
  Suze: and they came to our condo for dinner and I've
• 26:40
  Suze: been friends with Paula and Woody, Paula's wife now, Woody,
• 26:44
  Suze: but we've been friends. I've been friends with Woody since
• 26:46
  Suze: the Buttercup days, since the early 70s, everybody.
• 26:52
  KT: Over 50 years, right?
• 26:53
  Suze: Yeah, a long time. So Paula came and we were talking.
• 26:58
  Suze: And I never really knew a lot about Cathy, and
• 27:01
  Suze: Cathy was in the Olympics. She was such an interesting
• 27:04
  Suze: woman years and years ago, and I asked her this question.
• 27:09
  Suze: Out of everything that you've accomplished, and I'm telling you
• 27:12
  Suze: this is an accomplished woman in so many ways, it's
• 27:17
  Suze: not even funny.
• 27:19
  Suze: And I said, out of all the things you've done
• 27:21
  Suze: in your life, what are you most proud of? What
• 27:25
  Suze: made you the happiest? And she thought and she thought,
• 27:30
  Suze: and she looked at me and she said, you know
• 27:31
  Suze: what made me the happiest? Being able to take care
• 27:35
  Suze: of my mother.
• 27:37
  Suze: Be there with her not only financially but physically to
• 27:41
  Suze: the day that she died that to this day has
• 27:45
  Suze: made me the happiest I could ever be.
• 27:49
  Suze: So I just wanted to tell all of you such
• 27:52
  Suze: a privilege.
• 27:53
  KT: It's a real honor to, to see them. They brought
• 27:57
  KT: you into the world and for you to escort them
• 27:59
  KT: out is an honor, I think.
• 28:01
  Suze: Yeah, even if they're not, you know, sometimes when they
• 28:04
  Suze: get older they can be a little nasty. So just,
• 28:06
  Suze: just know that you got any others for us, KT?
• 28:09
  KT: So I have one more question from Anna, Suze, and
• 28:11
  KT: I really like this. I hope you're doing well. I'm
• 28:14
  KT: reaching out because I truly want to take control of
• 28:18
  KT: my financial situation and would value your guidance. So Anna said, Suze,
• 28:25
  KT: I currently have about $15,000 in student loan debt and
• 28:29
  KT: approximately $5,000 in credit card debt.
• 28:33
  KT: Some of my credit cards have been charged off and
• 28:36
  KT: I'm unsure what my best options are at this point.
• 28:40
  KT: I want to make smart decisions, improve my credit, and
• 28:44
  KT: create a solid plan to move forward. Don't you love that?
• 28:49
  KT: So what steps would you recommend I take first? Should
• 28:52
  KT: I focus on settling
• 28:54
  KT: the charged off accounts consolidating or prioritizing my student loans?
• 29:01
  KT: I'm ready to take responsibility and make changes. I just
• 29:05
  KT: need direction on the best path forward.
• 29:09
  Suze: So girlfriend, here's what I want you to understand. I
• 29:12
  Suze: want everybody, by the way, to understand this. Once you
• 29:16
  Suze: have a loan and it has been charged off.
• 29:21
  Suze: Even if you go to settle it, you go to
• 29:24
  Suze: pay it off. It is not going to improve your
• 29:27
  Suze: FICO score. Everybody, once it is past the 90, 120
• 29:33
  Suze: days and then it goes into charge off, let it
• 29:36
  Suze: stay there. Do not settle it. Do not do anything
• 29:40
  Suze: with it. Just wait to see what happens with it. Also,
• 29:45
  Suze: always be aware, Anna, that as time goes on...
• 29:50
  Suze: That it is very probable you will get an email
• 29:53
  Suze: or a letter from somebody at collection agency that says, Ana,
• 29:58
  Suze: you owe this amount of money and we want you
• 30:01
  Suze: to pay it now.
• 30:03
  Suze: Know that every single state has a statute of limitations
• 30:07
  Suze: and once something has been charged off past those years,
• 30:11
  Suze: three years, four years, five years, nobody can come after
• 30:15
  Suze: you again so I would not do a thing with
• 30:18
  Suze: those charge offs on any level. Next, student loan debt
• 30:24
  Suze: is debt that cannot be discharged in bankruptcy.
• 30:28
  Suze: So that is really one of your number one priorities
• 30:32
  Suze: to tackle that and make sure that it gets paid
• 30:36
  Suze: and you never go into forbearance or default or delinquent
• 30:40
  Suze: with it ever. however, I want your attitude to change.
• 30:46
  Suze: I want you to look at your student loan debt
• 30:49
  Suze: as good debt.
• 30:50
  Suze: It's debt that was created to help you be who
• 30:54
  Suze: you are today. There is good debt, Anna, and there
• 30:59
  Suze: is bad debt. Bad debt is paying for your present
• 31:04
  Suze: day desires, and your cost will be your future day needs.
• 31:09
  Suze: Good debt, mortgage debt, student loan debt is paying for
• 31:16
  Suze: your present day needs.
• 31:19
  Suze: So that one day you'll also be able to pay
• 31:22
  Suze: for your future day desires. So just know that little
• 31:28
  Suze: by little, and if you really want to make your money,
• 31:32
  Suze: make more money, make sure that you do a Roth
• 31:35
  Suze: retirement account at work if they offer it, or a
• 31:39
  Suze: Roth IRA on your own. I don't care if you
• 31:42
  Suze: put $10 in it, $15 whatever it may be. Now,
• 31:47
  Suze: one last thing.
• 31:50
  Suze: If you are just starting out, take advantage of the
• 31:54
  Suze: Ultimate Opportunity Savings account with Alliant Credit Union. You put in $100
• 32:02
  Suze: a month on every single month for 12 consecutive months,
• 32:08
  Suze: and at the end of the 12th month, guess what?
• 32:11
  Suze: They'll give you $100. And in the meantime, your money
• 32:14
  Suze: is making about 3.01 APY.
• 32:18
  Suze: And hey, if you can't continue it, who cares? You're
• 32:21
  Suze: still making the interest rate. So if you do that.
• 32:25
  Suze: You'll learn what it feels like to also save. Go
• 32:29
  Suze: to myalliant.com, M Y A L L I A N T.com,
• 32:36
  Suze: and really open up the Ultimate Opportunity Savings account. What
• 32:41
  Suze: a great way for you to start and stay in
• 32:44
  Suze: the game and win big time, KT!
• 32:49
  KT: What a closure. I like that one. Yeah, go for it, Anna.
• 32:54
  KT: Listen to that girl!
• 32:56
  Suze: And all. All right sweetheart, so until Sunday with Suze School,
• 33:00
  Suze: there's only one thing that we want you all to
• 33:02
  Suze: remember when it comes to your money. What is it, KT?
• 33:06
  KT: People first, then money, then things.
• 33:09
  Suze: Now you stay safe and remember, go to youtube.com/SuzeOrman, check
• 33:16
  Suze: out my personal YouTube channel and subscribe. Bye bye.