Latest / Suze Orman's Women & Money (And Everyone Smart Enough To Listen) / Move Out, or Stay At Home With My Mom?

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Move Out, or Stay At Home With My Mom? · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 0:08
  KT: April 2nd, 2026. Welcome to the Women and Money podcast
• 0:15
  KT: and everyone smart enough to listen.
• 0:17
  Suze: Who did you play an April Fool's joke on yesterday?
• 0:20
  KT: You.
• 0:24
  Suze: Should we tell everybody
• 0:25
  Suze: what you did or no?
• 0:27
  KT: No way.
• 0:31
  KT: April Fools is between you and I, and it was April Fools.
• 0:34
  Suze: It wasn't very nice, and I fell for it.
• 0:37
  KT: It was funny.
• 0:38
  KT: So this is the Ask Suze and KT Anything podcast,
• 0:43
  KT: the favorite one of the two we do.
• 0:45
  Suze: And what a great time did we have in New
• 0:48
  Suze: York City.
• 0:49
  KT: Oh my God. Well, I'll tell you, Suze said to
• 0:52
  KT: me something
• 0:53
  KT: over our coffee this morning she said I'm looking at
• 0:56
  KT: apartments in New York. I said no, we did that already. Next.
• 1:02
  Suze: I don't know. All of a sudden I've been thinking...
• 1:04
  KT: I wouldn't mind going more often, but I don't think
• 1:07
  KT: I want another home in New York.
• 1:09
  Suze: Just a little tiny.
• 1:11
  KT: No, no, no, we had a little tiny, we had
• 1:13
  KT: two relatively small, I wouldn't say tinies, we had two
• 1:18
  KT: relatively small apartments once at the same time, remember that?
• 1:22
  Suze: Yeah.
• 1:23
  KT: So been there, done that. Next, OK, are we ready?
• 1:27
  KT: So I put together
• 1:29
  KT: A very interesting podcast today, Susie. I hope you like
• 1:32
  KT: it called Who's Right?
• 1:35
  Suze: Why would you do that?
• 1:36
  Suze: Well, I know exactly why you did that, because part
• 1:43
  Suze: of the April Fool's Day joke boiled down to who's
• 1:49
  Suze: right between the two of us, and it was, uh,
• 1:53
  Suze: and because we have a saying, what's our saying, KT.
• 1:57
  KT: KT's always right.
• 1:57
  Suze: But this time she was purposely wrong, and I was like,
• 2:01
  Suze: but no, you're always right, and that's why you did this,
• 2:04
  Suze: isn't it?
• 2:05
  KT: Yes, and it's right, but it's a good one, I
• 2:07
  KT: think you'll enjoy it.
• 2:08
  KT: So we're gonna kind of, we're not stumping Suze. Larry
• 2:11
  KT: King used to try to trick Suze with his call-in
• 2:15
  KT: questions and stump her all the time, and she was
• 2:18
  KT: on that show almost what, 30 times, and he could
• 2:22
  KT: never ever find a question she did not know the
• 2:26
  KT: answer to, and I believe you'll know
• 2:28
  KT: the answer to all of these, but I'm curious to
• 2:30
  KT: see who you.
• 2:31
  Suze: But think he sure stumped me with his jokes that
• 2:34
  Suze: he told me. So it was live. Larry King Live
• 2:38
  Suze: was live TV, and when they went to commercials, Larry
• 2:43
  Suze: would love to tell me dirty jokes. He just would,
• 2:46
  Suze: and I would laugh.
• 2:48
  KT: But she didn't know what they meant.
• 2:49
  Suze: I had no idea. So back then my mama was
• 2:52
  Suze: still alive, and we would come back and I would
• 2:55
  Suze: call my mom. I'd say, Mom, during the commercial, Larry
• 2:59
  Suze: King told me this joke, and I told her the joke.
• 3:02
  Suze: I said, But I didn't get it. And my, my
• 3:05
  Suze: mom did, and she explained it to me every single time.
• 3:09
  Suze: All right, KT, ready? Let's do the podcast.
• 3:13
  KT: OK, my first, who's right,
• 3:15
  KT: is about margin account madness.
• 3:20
  KT: I saw someone in the community app say that buying
• 3:23
  KT: on margin is dangerous, and Suze, you agreed, saying it
• 3:28
  KT: was just plain stupid, but I just opened an account
• 3:33
  KT: at my brokerage firm and my adviser told me I
• 3:36
  KT: should absolutely sign up for margin.
• 3:40
  KT: Even if I don't plan to use it right away,
• 3:43
  KT: so now I'm confused. Is having margin access smart financial flexibility,
• 3:48
  KT: or am I just setting myself up for trouble? Who's right, Suze,
• 3:54
  KT: my advisor or you?
• 3:55
  Suze: Here's the problem, KT. The mere fact that he's even
• 3:59
  Suze: asking that question,
• 4:00
  Suze: shows he doesn't have a clue about margin because if
• 4:03
  Suze: you are a sophisticated investor you would absolutely know what
• 4:06
  Suze: margin is and how dangerous it is.
• 4:08
  KT: I don't know what it is.
• 4:09
  Suze: Because you're not a sophisticated investor. However, wait, KT, the
• 4:13
  Suze: mere fact that this person is asking that question says
• 4:17
  Suze: to me you absolutely should not do it and
• 4:21
  Suze: why your broker would be even telling you to do
• 4:25
  Suze: it is beyond me. So KT just said she doesn't know what...
• 4:29
  KT: Tell us what is a margin account.
• 4:32
  Suze: So, a margin is very simple. You're borrowing money from
• 4:36
  Suze: the brokerage firm to give you the ability to buy
• 4:40
  Suze: more stock,
• 4:42
  Suze: then probably money you have to buy on your own
• 4:46
  Suze: and for that loan they charge you an interest rate.
• 4:50
  Suze: Now that sounds like a great deal. Let's just say
• 4:53
  Suze: you have $10,000 that you want to invest in XYZ
• 4:57
  Suze: stock and the stock is at $10 a share.
• 5:02
  Suze: Now, normally, you'd only be able to buy 1,000 shares,
• 5:08
  Suze: but your brokerage firm, because you signed up for margin, says, hey,
• 5:13
  Suze: I'll lend you $10,000.
• 5:17
  Suze: And guess what? That means you can buy 2,000 shares,
• 5:22
  Suze: and you really think that this stock is gonna go
• 5:25
  Suze: up and you think, yeah, if I have 2,000 shares,
• 5:29
  Suze: I can make twice the amount of money. So let's
• 5:32
  Suze: say that's true.
• 5:34
  Suze: Let's say it goes from 10 to 15, it's now
• 5:39
  Suze: gone up $5 a share and you decide to sell.
• 5:44
  Suze: If you had just purchased 1,000 shares, KT, you would
• 5:49
  Suze: have $15,000 after you sold, or you would have made
• 5:54
  Suze: $5,000 on your $10,000 investment, maybe a short period of time,
• 6:00
  Suze: that's a 50% return on your money, not bad.
• 6:04
  Suze: But what you did instead is you bought 2,000 shares,
• 6:13
  Suze: because they gave you the 10,000 to do so. So,
• 6:16
  Suze: 2,000 shares at 15
• 6:20
  Suze: is $30,000. You sell, you pay back the broker $10,000
• 6:27
  Suze: now you have $20,000. So rather than making just $5,000
• 6:35
  Suze: on your money, you now made $10,000 on a $10,000
• 6:40
  Suze: really
• 6:41
  Suze: investment of your own money, which is almost 100% return
• 6:46
  Suze: on your money after, of course, you've paid interest on
• 6:49
  Suze: the $10,000 that you borrowed. That's why people do margin. However,
• 6:55
  Suze: Ready, everyone? Stocks just don't go up. Have we not
• 7:01
  Suze: seen what happened to the stock market and what's gone
• 7:04
  Suze: up and down and all over the place and really
• 7:06
  Suze: obliterated in many areas?
• 7:10
  Suze: Let's say it doesn't go up, it goes from 10
• 7:12
  Suze: to 5. Let's say that's true.
• 7:16
  Suze: If you had 1,000 shares and now you sold at 5,
• 7:20
  Suze: you'd have $5,000 you lost half of your money. OK. However,
• 7:26
  Suze: if you borrow $10,000 and now what happens is you
• 7:32
  Suze: have 2,000 shares, and it goes to 5.
• 7:37
  Suze: Now what do you have? You have $10,000 that you sold,
• 7:42
  Suze: but guess what? You have $10,000 after you've sold 2,000 shares.
• 7:48
  Suze: KT at $5 a share is $10,000 but you owe
• 7:51
  Suze: the broker $10,000 and some and interest. Now you lost
• 7:58
  Suze: all of your money. But here's the thing.
• 8:02
  Suze: The brokerage firm is not going to allow you to
• 8:06
  Suze: get that low. There's something called a margin call that
• 8:10
  Suze: if the stock starts to go down and they think
• 8:14
  Suze: that there isn't enough money in your account after you
• 8:18
  Suze: sell to get back their $10,000 they're gonna call, they're
• 8:23
  Suze: gonna want more money
• 8:25
  Suze: for you to be able to stay on margin, you
• 8:27
  Suze: can't come up with that, or if it continues to
• 8:29
  Suze: go down, or they're gonna sell the stock, and you're
• 8:32
  Suze: not gonna have any money, it's gonna be gone.
• 8:34
  Suze: Margin...
• 8:35
  KT: Is high risk...
• 8:37
  Suze: The highest risk that is out there and the most
• 8:41
  Suze: stupid thing in my opinion anybody can do. Have I
• 8:47
  Suze: ever in my entire career invested on margin? I have not,
• 8:52
  Suze: and I never would, which is why,
• 8:55
  Suze: you don't know about it because we've never done it.
• 8:59
  Suze: All right, KT, next question.
• 9:01
  KT: The title is Gas Prices versus Moving Out. OK, listen up, Suze.
• 9:07
  KT: Oil prices have been all over the place, but gas
• 9:11
  KT: prices where I live are definitely not going down.
• 9:16
  KT: I drive two hours a day for work, 120 miles
• 9:20
  KT: each way. Gas is costing me $5.60 a gallon.
• 9:26
  Suze: Oh, he must live in California.
• 9:27
  KT: He's from California. I get 22 miles a gallon. It
• 9:31
  KT: is costing me about $60
• 9:34
  KT: a day and oh yeah Suze, my car has almost
• 9:38
  KT: 200,000 miles on it.
• 9:42
  Suze: Wait, did he say $60 a day?
• 9:42
  KT: Yeah, for him to drive to and from work.
• 9:47
  Suze: Is it even worth it for him to work? All right, go on.
• 9:49
  KT: All right, so he said, my mom says just wait,
• 9:53
  KT: gas prices will come down soon and that I should
• 9:56
  KT: look at how much money I'm saving on rent.
• 10:00
  KT: He lives with his mom, all right, I don't know
• 10:02
  KT: if um if I said that yet, but he's living
• 10:04
  KT: with his mom. They share utilities and food.
• 10:08
  KT: So who's right? Do I stick it out and wait
• 10:10
  KT: for gas prices to drop, or is it smarter, Suze,
• 10:14
  KT: for me to move now closer to my job and
• 10:18
  KT: cut my daily costs? My mom listens to your podcast
• 10:22
  KT: every week, and I know she will listen to you.
• 10:26
  Suze: Mama, listen to me, sweetheart. Your son is paying $60
• 10:34
  Suze: a day for gasoline.
• 10:37
  Suze: That is $300 a week. That is $1,200 a month.
• 10:45
  Suze: That is depending on how long he's gonna be doing
• 10:48
  Suze: this or gas prices are up there, even if they
• 10:50
  Suze: came down to $3. Are you kidding me? He's spending
• 10:56
  Suze: close to, with oil maintenance and everything, probably close to
• 11:01
  Suze: $16,000 or $17,000 a year to spend
• 11:09
  Suze: four hours a day in his car.
• 11:13
  KT: He could get a part-time job.
• 11:14
  Suze: Now wait a minute. Also 200,000 miles on his car.
• 11:20
  KT: How long is that car gonna last?
• 11:22
  Suze: What are you going to do, Mama, when his car
• 11:27
  Suze: breaks down?
• 11:29
  Suze: Also, he could easily just move closer to work somewhere,
• 11:35
  Suze: get himself a little studio, or maybe, I don't know
• 11:39
  Suze: how young he will share it with lots of people,
• 11:41
  Suze: whatever it may be, but I would absolutely stop this
• 11:47
  Suze: right now, especially because he probably at that kind of
• 11:53
  Suze: money could find something somewhere
• 11:57
  Suze: to live, but he's still paying utilities. He's still buying,
• 12:01
  Suze: he's still doing all the stuff that he's doing, living
• 12:03
  Suze: with you. Now, is it possible, mama, you just wanna
• 12:07
  Suze: keep him at home with you?
• 12:10
  Suze: Do you think that's true, KT?
• 12:12
  KT: Probably right. He sounds like a young man. He's obviously
• 12:16
  KT: single and his mom knows he's, she wants him to
• 12:21
  KT: know I'm saving you money...
• 12:22
  Suze: And I'm sure you are, but guess what? You're not
• 12:25
  Suze: saving his back. You're not saving really any money for
• 12:29
  Suze: him because that's a lot of money. So Mama, let
• 12:34
  Suze: your little baby boy go. Let him see
• 12:38
  Suze: if in fact he can find something closer to work,
• 12:42
  Suze: how much it would be, and then figure it out
• 12:44
  Suze: from there. But bottom line, number one, thank you very
• 12:47
  Suze: much for listening to me every week. Don't stop now
• 12:50
  Suze: that I said this to you, by the way, right?
• 12:52
  Suze: But if it were me and my son, I would
• 12:56
  Suze: want him to move closer to work because
• 13:00
  Suze: I don't know. Being on the road that much isn't good. Uh,
• 13:03
  Suze: it's just not good. All right, next, KT.
• 13:06
  KT: And the price of gas out there is crazy.
• 13:08
  Suze: Even like it's crazy now...
• 13:10
  KT: It's crazy everywhere, but California...
• 13:12
  Suze: KT, here's the thing that he has to learn about this,
• 13:16
  Suze: and so do you, Mama. There's a saying that gasoline
• 13:21
  Suze: prices at the tank, like when you go in at
• 13:24
  Suze: the station, right, go up like a rocket but come
• 13:27
  Suze: down
• 13:27
  Suze: like a feather, and what that means is they shoot
• 13:32
  Suze: up way up even faster than the price of oil
• 13:36
  Suze: is going up. But when oil comes down, they don't
• 13:41
  Suze: come down as fast. They come down like a feather,
• 13:45
  Suze: so it can be months before you see it, yeah,
• 13:49
  Suze: you see it correcting itself, right? So go on, KT next.
• 13:53
  KT: OK, so my next who's right is...
• 13:55
  Suze: That's kind of like me.
• 14:00
  Suze: I can, I can get mad and I can like
• 14:02
  Suze: just shoot up like a rocket, can't I?
• 14:04
  KT: Yes, you do.
• 14:06
  Suze: But I tend not to come down like a feather either.
• 14:09
  Suze: I kind of go anyway. Go on.
• 14:10
  KT: So my next who's right question is about Roth's Roth
• 14:15
  KT: IRA emergency strategies.
• 14:18
  Suze: Pop quizzy.
• 14:18
  KT: All right, I'll give it a shot. I'll give it
• 14:20
  KT: a shot. All right, so the question is from our
• 14:23
  KT: good old TSA workers. I am a TSA worker.
• 14:28
  KT: And when I get a paycheck, I take home about
• 14:31
  KT: $1,800 every two weeks.
• 14:34
  Suze: That's all they make?
• 14:35
  KT: Well, it depends probably where they're working, but it's, I
• 14:39
  KT: don't think they make a lot, and they have such
• 14:41
  KT: an important job,
• 14:42
  Suze: You know, that's like a $50,000 a year job. But anyway, go on.
• 14:46
  KT: It's an important job. Last time when this happened, I
• 14:49
  KT: took cash advances on all my credit cards. They are
• 14:53
  KT: still maxed out to this day.
• 14:56
  KT: So I decided rather than taking money to pay down
• 14:59
  KT: the credit card debt I should save as much as
• 15:02
  KT: I could so I'll have money to pay the bills
• 15:05
  KT: if it ever happened again,
• 15:08
  Suze: It did. All right, so go on.
• 15:09
  KT: And then, then he said, I get that we are
• 15:12
  KT: going to get back pay, but last time it took
• 15:15
  KT: a month to get it.
• 15:17
  Suze: Are you kidding me? Are you telling me this last time,
• 15:20
  Suze: a long time ago, they didn't get their money for one month?
• 15:24
  KT: Some of them even longer, yes.
• 15:28
  KT: Now, the good news is I have $35,000 sitting in
• 15:32
  KT: a Roth IRA as you suggested all in cash as
• 15:37
  KT: my emergency fund. I don't think you suggested in cash.
• 15:41
  KT: I know you definitely said use it as an emergency fund.
• 15:45
  Suze: But have it in a money market account making interest
• 15:47
  Suze: but it's fine and it's in cash. He listened.
• 15:49
  KT: He just has it for an emergency fund.
• 15:52
  Suze: Good on you.
• 15:53
  KT: So he said, I've been told from my coworkers I
• 15:56
  KT: can withdraw monthly any amount I need to cover my bills.
• 16:01
  KT: Then when I receive my back pay, I can put
• 16:04
  KT: it all back within 60 days from my first withdrawal.
• 16:09
  KT: Is that actually how Roth IRA rules work, or am
• 16:13
  KT: I setting myself up for penalties and taxes? Who's right, Suze?
• 16:19
  KT: My coworkers or my gut telling me something sounds off?
• 16:24
  Suze: You know what's so great about this person, KT, right,
• 16:28
  Suze: is that I have a saying.
• 16:30
  Suze: Trust yourself more than you trust others, and forever I
• 16:34
  Suze: would say, listen, if you have that little feeling in
• 16:36
  Suze: your gut, listen to it, listen to it. That's the
• 16:39
  Suze: voice of God, in my opinion. Seriously, I'm not kidding, KT.
• 16:44
  Suze: Speaking to you to protect you, so you should absolutely
• 16:48
  Suze: listen to your gut. Now, here are the rules, and
• 16:54
  Suze: this is how it works.
• 16:55
  Suze: Given that all you have in there is the amount
• 16:59
  Suze: of money you originally contributed, cause it's been in cash,
• 17:02
  Suze: so it's not earning any money, you don't have any interest, anything.
• 17:06
  Suze: You can take out anything you originally contributed,regardless, listen closely.
• 17:15
  Suze: Regardless of your age or how long the account has
• 17:19
  Suze: been open without penalties or taxes whatsoever. That's true. You
• 17:24
  Suze: could take all that money out right now if you
• 17:27
  Suze: wanted to and you needed to. However,
• 17:31
  Suze: Roth IRAs and traditional IRAs can also do something known
• 17:37
  Suze: as an IRA rollover where you are allowed to once
• 17:42
  Suze: every 12 months, just once every 12 months, you can
• 17:48
  Suze: withdraw any money you're allowed to do from a Roth
• 17:51
  Suze: or an IRA, but you have to have it back,
• 17:55
  Suze: the exact amount back,
• 17:59
  Suze: within 60 days that's good, KT. Now the reason that
• 18:05
  Suze: your coworkers are wrong is if you withdraw, let's just
• 18:10
  Suze: say $3,600 one month.
• 18:14
  Suze: The clock now has begun and 60 days from there,
• 18:19
  Suze: you have to put that $3,600 back. Month two, you
• 18:25
  Suze: take out another $3,600. That's fine.
• 18:29
  Suze: Because it's still part of your original contribution, but you
• 18:33
  Suze: cannot pay that back. So that is money that you
• 18:38
  Suze: will have taken out of your Roth that can't get
• 18:42
  Suze: back into your Roth. So if I were you, I
• 18:46
  Suze: would take all of the money out at once, put
• 18:50
  Suze: it in a money market or somewhere that's earning interest.
• 18:55
  Suze: Pay your bills till you get your back pay and
• 18:58
  Suze: then put all of it back within the 60 days.
• 19:04
  Suze: That's how you do it. And hey, you can trust
• 19:07
  Suze: my gut on that one. KT next question.
• 19:12
  KT: All right, who's right? Credit card debt versus a HELOC.
• 19:16
  KT: This is a good one, Suze.
• 19:18
  Suze: They're all good, KT.
• 19:20
  KT: This is, really good.
• 19:20
  Suze: You can't hurt people's feelings and say this one's good. That one is...
• 19:24
  KT: No, I like this one a lot. I have $12,000
• 19:28
  KT: in credit card debt at 18% interest, but here's the
• 19:32
  KT: good news.
• 19:35
  KT: I also have about $100,000 of equity in my home.
• 19:40
  KT: I listened to you a few Sundays ago and I
• 19:42
  KT: thought I would take advantage of the ultimate Alliant HELLOC
• 19:47
  KT: at 3.99% fixed for six months and pay as much
• 19:52
  KT: as I can to get it paid off, but you
• 19:56
  KT: said don't do that. So who's right? Cutting my interest
• 20:00
  KT: big time, allowing me to get out of credit card debt,
• 20:03
  KT: or you?
• 20:04
  KT: There has to be exceptions to your advice, Suze. I'm
• 20:07
  KT: hoping I'm one of them.
• 20:09
  Suze: You are so not one of them,
• 20:10
  KT: Not one of them. Not, not, not.
• 20:11
  Suze: Let me tell you why, OK? Obviously you've heard me
• 20:16
  Suze: say it before. You never ever trade, uh, unsecured debt,
• 20:21
  Suze: which is credit card debt. Like if you can't pay, really,
• 20:25
  Suze: what are they gonna do to you? Really? All right,
• 20:28
  Suze: for secured debt, that's number one. Number two, you have
• 20:32
  Suze: a really high interest rate.
• 20:35
  Suze: Why do you have such a high interest rate? Does
• 20:37
  Suze: that mean that you have a really low credit score?
• 20:39
  Suze: Because if you had a really great credit score rather
• 20:43
  Suze: than have an 18% interest rate, you would have just
• 20:46
  Suze: done a balance transfer on a card that's paying 0%
• 20:52
  Suze: for like 21 months, and you absolutely could have had
• 20:55
  Suze: that paid off the entire time. But no, you think
• 20:59
  Suze: you want to have a home equity line of credit.
• 21:03
  Suze: Number two.
• 21:04
  Suze: If you don't have a good credit score, you're not
• 21:09
  Suze: gonna get the 3.99%. You're not gonna get possibly the
• 21:14
  Suze: prime plus 0%. It's all based on your credit score.
• 21:21
  Suze: Number three, why do you have that credit card debt?
• 21:27
  Suze: What did you spend that money on? Because I'm telling
• 21:29
  Suze: you what's gonna happen.
• 21:31
  Suze: If you do this, you're gonna go and get a
• 21:34
  Suze: home equity line of credit. OK, now you're gonna have
• 21:37
  Suze: a credit card that has a lot of available credit
• 21:41
  Suze: on it. And before you know it, do you know
• 21:43
  Suze: what you're going to do? You're gonna max it out again.
• 21:47
  Suze: And then what are you gonna do? You're gonna transfer
• 21:50
  Suze: it again over to your home equity line of credit.
• 21:53
  Suze: Are you crazy? You are not an exception to this rule.
• 21:57
  Suze: You wanna be smart?
• 21:59
  Suze: Then take the ultimate opportunity and do what? Check to
• 22:03
  Suze: see what your credit score is. If it's a really
• 22:06
  Suze: good credit score, then shop around for a balance transfer
• 22:10
  Suze: card at a 0% interest rate, and that is how
• 22:14
  Suze: you deal with credit card debt. KT...
• 22:17
  KT: I have another HELOC question. Who's right, Suze? Renovation, cash,
• 22:23
  KT: or HELOC?
• 22:25
  Suze: I bet it's a married couple.
• 22:29
  KT: It's the wife here. She, it's the wife and husband.
• 22:32
  KT: They say we have a $600,000 mortgage on a home
• 22:37
  KT: worth about $1.7 million.
• 22:39
  Suze: That's fabulous.
• 22:40
  KT: I want to take out a $300,000 renovation HELOC using
• 22:45
  KT: the ultimate opportunity HELOC at Alliantr Credit Union. They have
• 22:49
  KT: the best package I could find, so thank you.
• 22:53
  Suze: No, don't thank me. Thank Alliant.
• 22:55
  KT: Yea, thank Alliant.
• 22:56
  Suze: Go to my alliant.com and check it out, everybody. OK,
• 22:58
  Suze: go on.
• 22:59
  KT: It is really good. So check it out if you
• 23:01
  KT: need a HELOC. So or wanna use one. My thinking
• 23:05
  KT: is keep our cash invested in our money market account,
• 23:09
  KT: earning 3.5%, and take advantage of a tax deductible loan.
• 23:16
  KT: My wife says absolutely not just pay the cash and
• 23:20
  KT: stay out of debt. Who's right, Suze, me or my wife?
• 23:26
  Suze: Who's right, KT?
• 23:28
  KT: I think um the wife is.
• 23:29
  Suze: Why?
• 23:31
  KT: Well, number one, she just wants to pay off the...
• 23:35
  Suze: Yeah, but maybe he could make more money with it.
• 23:37
  Suze: Maybe he could invest it, da da da da.
• 23:40
  KT: Maybe they do. Maybe they split it. Maybe they split it. Take,
• 23:45
  KT: don't take 300. Take 150, and then use cash for
• 23:49
  KT: the rest, kind of share it. Then they're both in,
• 23:53
  KT: then they, they both, you know, they're satisfied.
• 23:55
  Suze: Ao ding a ding a ding... but for more reasons
• 24:00
  Suze: and then just sharing it.
• 24:02
  Suze: He currently has a $600,000 mortgage. I'm sure he just
• 24:09
  Suze: bought the house probably recently.
• 24:11
  KT: It's only a few years, they've owned it.
• 24:12
  Suze: All right, so therefore, the most he can take off
• 24:16
  Suze: of his interest on a mortgage and a home equity
• 24:22
  Suze: line of credit is the interest on an amount up
• 24:25
  Suze: to $750,000.
• 24:29
  Suze: If he has a $600,000 mortgage, which he does, he
• 24:34
  Suze: takes out a $300,000 HELOC that's $900,000 or $150,000 over
• 24:45
  Suze: his tax deductible amount. So if he only took out
• 24:50
  Suze: a $150,000 HELOC, now he's at the 750 amount as
• 24:55
  Suze: long as it's for renovation or something with his home,
• 24:59
  Suze: and he still has $150,000 dollars making interest which may
• 25:03
  Suze: make his wife feel better. So I would think about that,
• 25:08
  Suze: talk about it, but here's the bottom line truthfully when
• 25:12
  Suze: somebody doesn't feel secure...
• 25:16
  Suze: You lose far more than just the amount of money
• 25:19
  Suze: that you could have made. Now it will be possible
• 25:23
  Suze: that she is upset. She is worried every time interest
• 25:26
  Suze: rates go up, she's going to say this or she's
• 25:29
  Suze: going to say that. Who knows what it will be.
• 25:32
  Suze: So if she really, really feels strongly about it, then
• 25:38
  Suze: I'm here to tell you, just
• 25:41
  Suze: do the cash or again just adopt my attitude which
• 25:46
  Suze: I did yesterday. KT is always right, even though she
• 25:53
  Suze: was wrong. She was purposely wrong and she tricked me anyway.
• 25:56
  Suze: All right, go on.
• 25:58
  KT: All right.
• 26:00
  KT: Who's right, HSA beneficiaries. I named my two kids as
• 26:05
  KT: beneficiaries on my HSA, but I recently read an article
• 26:09
  KT: that kids cannot inherit an HSA. So Suze, I'm wondering,
• 26:15
  KT: did I set this up wrong? Can my kids benefit
• 26:19
  KT: from this account the way I intended, or the article
• 26:23
  KT: that said the kids cannot inherit HSAs?
• 26:27
  Suze: Who is right?
• 26:29
  Suze: Do you have an idea to that one, KT?
• 26:31
  KT: Yeah, your kids can't inherit an HSA.
• 26:34
  Suze: Why not?
• 26:34
  KT: Can they?
• 26:37
  Suze: Don't ask me. Can they? What's your answer?
• 26:40
  KT: I don't. I think that no, HSA is really your medical.
• 26:44
  KT: You use it for like...
• 26:45
  Suze: All right, never mind.
• 26:47
  KT: Can they, can they?
• 26:49
  Suze: (Suze makes the wrong answer noise) You're wrong.
• 26:50
  KT: Can they?
• 26:50
  Suze: Listen to the answer. All right, so.
• 26:56
  Suze: The article is wrong. Kids absolutely can inherit an HSA,
• 27:03
  Suze: but is it a wise thing for them to inherit?
• 27:07
  Suze: An HSA is a health savings account.
• 27:12
  Suze: And it's attached obviously to a high deductible health insurance policy,
• 27:17
  Suze: but within that HSA you have the ability to invest
• 27:21
  Suze: that money and if used properly and for certain things,
• 27:25
  Suze: when you go to take it out
• 27:28
  Suze: it's tax-free. So you got a tax deduction when you
• 27:32
  Suze: put it in. It has been in there growing, and
• 27:35
  Suze: then when you go to take it out, it is
• 27:37
  Suze: tax-free if it's for a medical qualified expense.
• 27:42
  Suze: As a spouse you could pass that tax freedom to
• 27:48
  Suze: a spouse, but you cannot pass it down to your
• 27:52
  Suze: children and whatever all of you do, never make a
• 27:56
  Suze: trust the beneficiary of your HSA because a trust is
• 28:02
  Suze: not a person.
• 28:03
  Suze: Therefore, a trust or anybody other than your spouse, and
• 28:09
  Suze: when they get the money, they will have to pay
• 28:12
  Suze: ordinary income tax on it.
• 28:15
  Suze: So, yep, you can leave it to your kids, but
• 28:18
  Suze: you do not want to. You wanna spend all that
• 28:22
  Suze: money while you can or do whatever and find other
• 28:26
  Suze: money that you leave them in a more tax efficient way.
• 28:30
  Suze: Next question, KT.
• 28:32
  KT: So Suze, my next one is who's Right. Paying the
• 28:35
  KT: IRS versus investing.
• 28:38
  Suze: Well, that's easy. Pay the IRS.
• 28:40
  KT: I was gonna say pay the tax.
• 28:42
  Suze: Well, let's hear the question. You never know.
• 28:43
  KT: We owe $36,000 to the IRS, and that is due
• 28:47
  KT: April 15th, literally around the corner.
• 28:50
  Suze: I wish we only owed $36,000.
• 28:53
  Suze: Actually that's not true.
• 28:54
  KT: No, don't say that.
• 28:56
  Suze: I don't say say that.
• 28:57
  KT: Take it back. Take it back,
• 28:58
  Suze: Sorry. Cancel, cancel, cancel, cancel.
• 29:01
  KT: She owes a ton of money, a mountain of money
• 29:04
  KT: to the IRS, thankfully because you make a lot of money...
• 29:07
  Suze: I make a lot of money. I do.
• 29:09
  KT: So then, rightfully pay...
• 29:10
  Suze: But wait, I have to tell you a story, everybody, KT.
• 29:14
  Suze: So KT was saying something. We were doing something a
• 29:18
  Suze: few days ago, and KT said, Well, I'll just take
• 29:21
  Suze: it on my taxes, and I'll write it off, something
• 29:24
  Suze: we were talking about.
• 29:26
  KT: Oh, a charitable donation.
• 29:27
  Suze: I said, KT, what are you talking about?
• 29:32
  Suze: Right, I said we are married. We file a joint
• 29:37
  Suze: tax return. My taxes are your taxes, so you can't
• 29:42
  Suze: do things the way as that as if we're not married. What is wrong with you?
• 29:45
  KT: I looked at her and I said, what was I thinking?
• 29:48
  Suze: Yeah, what were you thinking?
• 29:50
  Suze: Anyway, all right, so go on.
• 29:51
  KT: Oh my God, I married like a, I didn't marry
• 29:55
  KT: a tax haven. I married a tax. I don't know what.
• 29:59
  KT: Oh my goodness. So who's right...
• 30:01
  Suze: Yeah, you married somebody who's taxing. I can tell you that much.
• 30:04
  KT: ...paying the IRS versus investing. We have the money sitting
• 30:09
  KT: in a Fidelity account earning about 3.5% interest.
• 30:14
  KT: My husband and the financial advisor say just leave the
• 30:18
  KT: money invested and pay the IRS when it's due.
• 30:22
  KT: I hate, the wife says, I hate owing money, especially
• 30:26
  KT: to the IRS. I want to just pay it off
• 30:30
  KT: now and be done with it. Who's right? Should we
• 30:34
  KT: hold on to the cash and earn interest or pay
• 30:37
  KT: the IRS immediately?
• 30:40
  Suze: Let's just talk about how much money we're actually talking
• 30:44
  Suze: about here. 36,000 they owe. All right, 36,000 for
• 30:48
  Suze: the next like 13 days at 3.5%. What are we
• 30:52
  Suze: talking about? $45 dollars that's taxable to you. So you're
• 30:56
  Suze: only gonna owe more taxes next year because of that
• 31:00
  Suze: interest or whatever. So when it's all said and done,
• 31:01
  Suze: we're talking about like $25 maybe and for $25 you
• 31:08
  Suze: wanna upset your wife? Are you kidding me? You pay
• 31:12
  Suze: it right now.
• 31:15
  Suze: She's right. This isn't a financial question. This is an
• 31:18
  Suze: emotional question. What is the goal of money? The goal
• 31:21
  Suze: of money is to feel secure, to be secure...
• 31:24
  KT: And be happy.
• 31:25
  Suze: And be happy. So $25 do me a favor. Give
• 31:29
  Suze: your husband $25 and tell him to go out and
• 31:32
  Suze: have a good time and add it to go have
• 31:34
  Suze: dinner with his friend, whatever. I don't care, and that
• 31:37
  Suze: you're even now. Just give him $25 and have him
• 31:40
  Suze: pay it right away.
• 31:41
  KT: All right, this is my last question.
• 31:44
  KT: Missing trust documents, ha ha.
• 31:49
  KT: This one, this is really important. Everyone listen carefully so
• 31:55
  KT: we get a question it said my mom passed away
• 31:58
  KT: and had a revocable living trust. The only document we
• 32:03
  KT: can find is a copy of the trust and my
• 32:06
  KT: brother says it's all we need.
• 32:08
  KT: The bank is refusing to accept it. Says they need
• 32:12
  KT: the original or a certified copy. We don't have anything else.
• 32:18
  KT: Who's right, my brother or the bank?
• 32:22
  KT: The bank, right, Suze?
• 32:23
  Suze: Yeah, the bank is right. Listen, everybody, you don't want
• 32:28
  Suze: to have your money somewhere that if somebody just comes
• 32:31
  Suze: in with a copy of something, they could have forged it.
• 32:35
  Suze: Who knows, whatever. There's no real marks on it. Maybe
• 32:39
  Suze: there's a notary stamp, but that even could have been faked.
• 32:42
  Suze: Everything could be faked today, right? All right. You don't
• 32:46
  Suze: want a bank to say, oh, OK, here's all the money,
• 32:49
  Suze: and just sign it over for you.
• 32:52
  Suze: But here's the thing, everybody, is that a plain copy
• 32:57
  Suze: of a trust means nothing to a bank. It simply
• 33:01
  Suze: proves the document existed at some point. It does not
• 33:05
  Suze: prove everybody that it's the final version now. It doesn't
• 33:09
  Suze: prove that it wasn't amended. It doesn't prove that it
• 33:12
  Suze: wasn't revoked.
• 33:13
  Suze: And it doesn't prove that it's legally valid. That is
• 33:17
  Suze: why they are asking for either one of these the
• 33:20
  Suze: original trust document that has a stamp on it has
• 33:24
  Suze: the signatures on it, a certified copy from the attorney
• 33:29
  Suze: or sometimes a court if you don't have the original,
• 33:34
  Suze: and really a certification of trust is simply a summary document.
• 33:40
  Suze: That legally confirms the trust terms and trustees. Now, right now,
• 33:46
  Suze: you're kind of saying in this email, you don't have
• 33:48
  Suze: any of that.
• 33:49
  Suze: So if your brother thinks that you can just walk
• 33:52
  Suze: in with a copy and access the money, that's not
• 33:55
  Suze: just wrong, it's stupid. It's just stupid. We started this
• 34:00
  Suze: KT with me calling somebody stupid who was on margin.
• 34:04
  Suze: This is equally just as stupid. So here's the thing,
• 34:06
  Suze: number one that you should learn from this, and I'm
• 34:09
  Suze: gonna tell you what I want you to do to
• 34:11
  Suze: hopefully fix it. Don't listen to your brother.
• 34:15
  Suze: Your brother absolutely acts like he knows what he's talking
• 34:19
  Suze: about and that he knows he's probably the big brother
• 34:23
  Suze: and you need to listen. Thank God you wrote in.
• 34:27
  Suze: So here's what I really want you to do. I
• 34:30
  Suze: want you to track down the attorney who drafted the trust,
• 34:34
  Suze: all right? 'Cause most attorneys, believe it or not, if
• 34:37
  Suze: she used an attorney, keeps either the original or a
• 34:42
  Suze: certified copy on file.
• 34:45
  Suze: So that's your fastest path. Second, have you checked everywhere, really?
• 34:52
  Suze: Your mommy wouldn't have gone to the trouble of creating
• 34:55
  Suze: a trust, making a copy of it and giving it
• 34:57
  Suze: to you, and didn't put the original somewhere that was
• 35:02
  Suze: probably safe and sound.
• 35:04
  Suze: Did she have a safety deposit box? Did she have
• 35:07
  Suze: a home safe? Does she have filing cabinets, you know,
• 35:11
  Suze: does she have maybe a financial advisor or a CPA
• 35:14
  Suze: that she asked to hold it for her or even
• 35:17
  Suze: a really good friend?
• 35:20
  Suze: Third, all you have to do is ask the attorney
• 35:23
  Suze: for a certification of trust, and truthfully, banks often accept
• 35:28
  Suze: this instead of the full document, and it avoids privacy issues.
• 35:34
  Suze: If you can't do any of that. Everybody listen closely
• 35:40
  Suze: to me, cause you may find yourself in this situation
• 35:45
  Suze: one day.
• 35:46
  Suze: Then the last thing that's gonna happen is you're gonna
• 35:49
  Suze: have to head to probate probate court, and then that
• 35:52
  Suze: will be a very lengthy procedure depending on where you are.
• 35:56
  Suze: It could be an expensive procedure. So always make sure
• 36:01
  Suze: that you have the original, and I just have to
• 36:05
  Suze: say this, Katie, because hey house.
• 36:08
  Suze: The publisher of the must-have documents, everybody thinks that, oh,
• 36:14
  Suze: they probably have a copy of it on the computer
• 36:17
  Suze: system or whatever. Nothing that you put in those documents
• 36:23
  Suze: are able to be accessed by anybody other than you.
• 36:28
  Suze: So the copy of it or whatever lives on your computer,
• 36:32
  Suze: on your phone, possibly in the cloud, but don't think
• 36:37
  Suze: that Hay House or anybody associated with the must-have documents
• 36:42
  Suze: has a copy of your trust. No information is stored
• 36:48
  Suze: whatsoever with them.
• 36:51
  Suze: So just know that everybody. So KT, is that really it?
• 36:53
  KT: That's what I've got.
• 36:55
  KT: Who is right,
• 36:56
  Suze: KT, me or you most of the time, KT. She's never,
• 37:00
  Suze: I'm still right. You're still right. All right, everybody,
• 37:03
  KT: until when it comes to money, Suze's always right.
• 37:07
  Suze: That's not necessarily true...
• 37:08
  KT: When it comes to money with between you and I,
• 37:12
  KT: you are always right, yes.
• 37:15
  Suze: OK, I'll take it. I'll take it. All right, so
• 37:18
  Suze: until Sunday when we'll have another Suze School, there's only
• 37:21
  Suze: one thing that we want you to remember when it
• 37:24
  Suze: comes to your money, and what is it,
• 37:26
  KT: KT? It is people first, then money, then things.
• 37:29
  Suze: And remember, trust your gut more than you trust others.
• 37:34
  Suze: Now you stay safe.
• 37:36
  KT: Bye bye, bye.