October 26, 2025 • 26 mins
On this Ask Suze & KT Anything episode, KT asks Suze your questions about trusts, the right investment options, giving money to children and so much more.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Suze (00:08):
October 26, 2025. Welcome to the Women and Money podcast
vacation edition. It's the vacation edition because...
KT (00:18):
That's great. I love that.
Suze (00:20):
Because KT and I are on vacation right now as
you're listening, in Italy, we have 4 days...
KT (00:27):
Painting and eating...
Suze (00:28):
...left, before we back and that's what we're assuming we're
doing anyway so we're doing another ask KT and Suze
Anything
KT (00:39):
Sunday...
Suze (00:41):
Which by the way, I'm just going to tell all
of you I'm really loving because KT, I have to
say something.
I've done this podcast now for many years without you.
KT (00:51):
It's lonely.
Suze (00:52):
And not besides the fact that it's lonely, but not
so lonely.
KT (00:57):
It's lonely.
Suze (00:58):
Sometimes you aggravate me, but not really, no, but truthfully
I love it when you're doing it with me, and
I know there's a lot of people who want the
Suze Schools and everything, but honestly, everybody.
I don't have many si schools left in me only because,
with 700 podcasts...
(01:21):
I've taught you a lot that you need to know,
and it's already there so unless a new topic comes
up that I really want you to know.
I think there's a lot to learn from these questions
and given that we have thousands of them coming in.
KT (01:36):
We try so hard to answer all of you. We
really want to answer all of you.
Suze (01:41):
So just know that may be happening.
KT (01:45):
But also I just want to say if a world
event or something catastrophic may happen.
And Suze will absolutely jump on and give you every
bit of advice that she can to help
you.
Suze (01:58):
And the way you'll really know that, by the way,
is if you go to YouTube.com/ Suze Orman, my official
YouTube channel, because when the government shut down, I immediately
went there.
And I did a little five minute video saying exactly
(02:19):
what you should do and everything because it wasn't a
day that the podcast would drop.
KT (02:24):
Thousands of people listen to that.
Suze (02:27):
Well, they did not so many, I think 80,000 or
something like that.
But the first one I did, KT, really with the
tariff 630,000. But anyway, that's because people were really afraid.
They weren't so afraid when the government shut down and
it didn't affect everybody, or so they thought. But anyway,
go there and subscribe so you'll know
(02:49):
when I do something, especially when it's live. All right, KT.
KT (02:53):
So my first question is from Bernadette. She said, Suze,
what are the steps for creating a separate trust if
a marriage is in jeopardy or dissolving and a joint
trust had already been created? Must a divorce be finalized first? Hmm,
my concern is that anything can happen at any time.
(03:17):
She's nervous.
Suze (03:18):
I know I read this one and answered.
KT (03:21):
Oh well, what, what tell everyone listening what to do.
I'm sure there's a lot of people in that same
situation
Suze (03:27):
When I read an email like this, and Bernadette knows
I answered her. Of course I'm going to send an
email to her directly only because I don't know if
she's going to listen to the podcast and hear the answer.
Right, so therefore, here's what I told Bernadette. You absolutely
(03:48):
can create a separate trust, and you should create a
separate trust prior to your divorce. You should fund the trust.
Just make sure that you don't take marital assets, and
you should absolutely do it before
you are divorced, just that simple. After you actually go
(04:10):
and get divorced and start that proceedings, you might not
be able to do it. So do it now. That
was a short version of what I told her to do.
KT (04:20):
But then what happens with the joint trust?
Suze (04:22):
The joint trust will then get dissolved after she's divorced.
KT (04:24):
After the divorce.
Suze (04:27):
Absolutely. All right.
KT (04:30):
OK, that sounds easy, but it's still a little scary.
So Rachel, Rachel's asking about VOO.
Suze (04:38):
You know what scares you about that?
KT (04:41):
What?
Suze (04:41):
Because you can never imagine us divorced.
KT (04:44):
We have separate trust number one.
Suze (04:46):
Yes, that's one of the reasons, right? Just in case
I was stupid enough to ever want to do something, right?
But it's hard for you. I can see when you
read me emails like that, it's hard for you when
you see that somebody is separating or divorcing. It doesn't
quite sit well with you.
KT (05:05):
Never, um.
Because you, you, you just don't know about the what
ifs of life. And even though you and I are
so 100% solid and connected, you just never know about
the what ifs, which is why Suze has actually established
for us and especially for me, everything that would legally
(05:27):
protect me, as she said in the event that she
was so stupid to want to divorce me.
Right, yeah, but it's true...
Suze (05:36):
In KT's name like the island is all in KT's name,
an incredibly valuable asset, incredibly everybody. I want to know
that she's OK no matter what. All right.
KT (05:52):
All right. Next, thank you, Suze.
Suze (05:54):
You're welcome, KT. Oh, KT, let me have the boat though.
The boat's in my name. That's OK. No problem.
KT (06:01):
Little boat, how many years old? Over 10. Like our,
our car, the car is Suze's car and she doesn't
want to sell it. She loves that car. It's 12 years old.
Suze (06:14):
No, it is not.
KT (06:15):
How old is it?
Suze (06:15):
14.
KT (06:17):
Oh 14 years old, that thing. We love that little car.
And it has like 55,000 miles on it.
Suze (06:24):
I just can't selling it and and buying what?.
KT (06:28):
Gonna keep it. OK, next question is from Rachel. Hi
KT and Susie. I love VOO as much as Suze,
but I'm worried that the top 10 stocks now make up 38%.
Suze (06:39):
Yes, that's why I like VOO.
KT (06:43):
It seems I'm buying the S&P 10 rather than the
S&P 500.
Suze (06:49):
Yes.
KT (06:49):
Suze, what do you recommend for us to keep diversified
when we own mostly VOO?
Suze (06:55):
The way things work today, the markets, it's very different
than how it worked years and years and years ago.
Not only do I love, which is why I chose VOO.
And also because of its small expense ratio that the
top 10 stocks now make up 38% of it. And
(07:16):
if you really look at the Spiders or VTI, whatever
it may be, the top 10 stocks are all the same.
They're all the same. Everybody is in AI.
But not only do I love that you have VOO,
but I would actually, besides VOO, have you even more
heavy weighted in those stocks and have you buy even
(07:39):
more of them on an individual basis. So a lot
of times when a friend or somebody asks me what
should I invest in or what should I do, I'll say,
all right, let's put 50% of your money in VOO.
And then let's buy Nvidia, AMD, Palantir, IONQ, Iit, and
(07:59):
all of those. So I'm actually even making it more
heavy weighted in those stocks than just what VOO has done.
So I have to tell you I don't have a
problem with it at all. Diversification, not in the right
sector will leave a lot of money on the table
(08:21):
in these kinds of markets. Which is why
I switched from the VTI, the Vanguard Total Stock Market Index,
to Vu because I wanted more concentration in those top 10 stocks.
KT (08:34):
Tell everyone what VOO means, what it stands for.
Suze (08:38):
It's just the Vanguard Standard and Poor's 500 ETF. Just
that simple.
KT (08:42):
All right. Next question is from Darlene. The subject in
Darlene's email said, I really need her advice.
And I'm going to say, Suze, I really need to
know more about Darlene. Are you ready? She said, I
will be 67 in April 2026. No mortgage, no debts,
(09:04):
no car loan. I have an emergency fund, a 403B,
and a Roth IRA. I want to retire in May 2026.
Can I do that?
So Darlene gives us all this information, but never a
dollar amount against it. All I know is she's going
(09:25):
to be 67.
Suze (09:27):
So why did you pick it?
KT (09:28):
Because it's too short. So I need everyone that's listening
to know.
that when you send me an email that says, I
really need her advice, she's not going to be able
to give you any advice unless you fill in the blanks.
Suze (09:42):
So here's the thing, everybody, KT's correct. More than what
you have, I need to know.
What do you spend? What are your expenses? You don't
have to itemize them for me. But if Darlene, and
we'll just use this as an example of if you
want to know something, how it should read. Hi Suze,
(10:03):
I'll be 67 in April. Have no mortgage. My house
is worth $500,000. I don't have any debts. I don't
have a car loan, but
I think I may need to buy a car in
the next few years. I do have an emergency fund.
How much of an emergency fund? I want to know.
I have a 12 month emergency fund, then I don't
(10:25):
have to worry about you. I have a 403B and
a Roth IRA. Well, how much do you have in them?
I need to know that. I want to retire in
May 2026.
I will need X amount of money after tax in
order to be able to do so. My Social Security
(10:46):
will be x, period.
Then I can kind of tell you.
Also say, and I'm in good health and I have
a long term care insurance policy.
KT (10:58):
And you also want to know a little more about Darlene.
Does she have dependents? Is she married? Is her spouse
working or not working?
Suze (11:07):
Well, the truth is I would just take this one, KT,
and assume that she's single with no
dependents and she just wants to take care of herself.
So that's how you would do it, Darlene. You want
to write back and if KT sees it, maybe she'll
choose it. All right.
KT (11:25):
Fill in the blanks, Darlene. This next question from Liz
I love makes me laugh, but you got to set
her son straight. You ready?
Liz says...
Suze (11:35):
I'm gonna like this one art't I?
KT (11:37):
Yes, you will. Hi, Suze and KT. You inspired me
in late 2023 when you spoke to Humana employees. She's
been with Humana for 13 years.
You spoke to them, Suze, just so everyone knows about
having an emergency fund with Secure Save. Susie's one of
the founders of Secure Save, and it's a great program, uh,
(12:00):
that she's established.
Suze (12:02):
Actually, I just have to say something since you brought
that up. So five years ago now, myself and two
other people, right, Devin and Bassam, founded a company called
Secure Save.
And all of you could go to secureave.com/Suze and you'll
(12:22):
find out more about it, but it's simply an employer
sponsored employee savings plan. So you put in $25 the
employer puts in $5 whatever it may be, you have
access to that money anytime you want. It is fabulous
and it's been very successful. Therefore,
(12:44):
if you want your employer to offer it, go to secureSave.com/
Suzeorman or just go to secureSave.com and you'll see it there.
And if you're an employer and you want to find
out more about it, to offer it to your employees,
go to those places as
well. All right.
KT (13:01):
Yeah, because Liz is one happy employee. She said not
only Suze,
did you talk to her about an emergency fund with
Secure Save, but many other important tips like having a
Roth account. So she's learned so much from you, she said,
since then I am a devoted listener and taking action
(13:22):
on so many things you have opened my eyes to.
I now have a Roth. I save biweekly in Secure Save,
and I've purchased the must have documents and so much more.
Here is my question.
I'm now paying it forward with my four sons with
all the great info you provide each week on your
(13:43):
podcast and Ask Suze and KT anything. Connor, age 30,
doesn't want to use the documents, the must have documents... Ready?
These are, um, so just so everyone knows they're distributed
through Hay House, and he's telling me these companies use
(14:05):
and or sell people's personal information.
Suze (14:08):
He's an idiot.
KT (14:09):
This is, well, his mom thinks so too, right? So
he won't do it, unfortunately, he won't listen to me
on how important those
documents are and like you have said could be very
costly elsewhere, but the most important that worries me is
the fact that if he is incapacitated in some way,
(14:31):
he should appoint someone to make decisions on his behalf.
So Connor's single. She said, I know it's his choice
to make.
Maybe you could shed some light on Hay House and
how they handle personal info. Hoping this will knock some
sense into my son's brain. She said thank you both
(14:51):
for making my life better now and in my retirement
years better late than never.
And that's from Liz. I thought you would love that
Liz is a Humana employee, and she really, really benefited
from the talk you gave them almost three years ago now.
Suze (15:09):
Yes, a lot of corporations hire me to give talks
like that to them.
Although I said to KT the other day, KT, what did I say to you?
KT (15:18):
She's not sure if she wants to do any more
speaking engagements, which makes me really sad because she's so great.
It's the best of Suze you would ever experience is
in front of a live audience on a stage.
And I can't begin to tell you how thrilling it
is because no one ever knows what she's gonna say,
(15:40):
what mood she's in, how she's gonna, you know, handle
her audience. It's a big surprise. It's like Christmas every
time she does these live talks, really, really fun. I
miss them.
I always miss them.
Suze (15:55):
I tell you one of my favorite sayings? What was
was and what was will never be again. So here, Liz,
this is what I would say to Conor. Connor, the
biggest mistake you will make in life is the mistake
you don't even know that you're making. At 30, you
think you know so much. You think you know what
(16:17):
companies do. Don't you get it, Connor, that Hay House
doesn't have a clue
what your information is that you put on it, you
keep it on your computer, you have it. They don't
have any access to it. That's why you create your
own passcode.
They just give you an activation code. You open up
(16:39):
the documents. Then from that point on they are all yours.
They know nothing about it. So Liz, first of all,
you don't have to worry about it. You don't have
to let his fear of the unknown put fear into
you of what does Hay House do with all these documents.
They don't know. So how many times have we been
(17:02):
contacted
by a lawyer, seriously that says this person died, her
children said that this person did the documents with the
must-have documents, but they don't know where they are. Do
you have a copy of them? And Hay House has
to write back and say, no, we don't have anything.
(17:22):
They don't even know if you filled them out or
ever used them. So grow up, Conor, seriously.
You don't want to do it fine. Go to a
lawyer and spend $2,500 or $5,000 or whatever just so
you can sit there and let the lawyer know everything
that you have. How do you know what the lawyer
(17:45):
does with that information? Really, Connor? Just saying. Don't be stupid.
You want to be smart.
Take advantage of the fact that your mother bought the
must-have documents and she is allowed to share them with
anybody in her family for absolutely free. You can make changes.
(18:08):
Are you kidding me? $2,500 worth of state of the
art documents and you don't want to do it.
So Liz, here's the other thing I would say...
KT (18:19):
Tell everyone how much the must have documents are.
Suze (18:21):
They're $99. They are going to go up sometime next year,
a considerable amount, by the way, everybody, so you should
take advantage of it now. Go to musthavedocs.com, just that simple.
Now one other thing, Liz, your fear about if something
(18:43):
happens to Connor.
And he doesn't have an advanced directive and a durable
power of attorney for health care because he is over 18.
You cannot help him. So if you want, print out
again the documents. He doesn't have to sign the trust.
He doesn't do anything but just have him give you
(19:08):
the power
to make decisions for him if anything were to happen
to him. Just that simple. And again, hey, he doesn't
trust that. Go to a hospital, go somewhere
and get one so that he is protected in case
something happens to him.
KT (19:27):
This is my final um email. It's from Jean and
it's a UTMA account. First, Suze, tell everyone what that is.
Suze (19:34):
Uniform transfer to minor's account. It can also be a
UGMA account with a uniform gift to minor's account.
KT (19:42):
All right, so...
This is from Jean, she said. Dear Suze and KT,
thank you so much for all of your advice over
the years. You responded to a question of mine two
years ago about my plan to use money from my
Roth to make a down payment on a house for
my family. You gave me the confidence to go forward
(20:04):
with a scary but wonderful decision. We are so happy
in our new home.
Suze (20:10):
Love that.
KT (20:12):
And now Jean said, I'm writing today to ask for
some guidance regarding UTMA accounts for my daughters aged 6
and 8. My husband's great uncle is opening these accounts
for them this month. I have no idea what the
dollar amount is going to be, but probably in the
(20:33):
five to $15,000 range for each of them.
I did my homework and I know that you don't
recommend UTMA accounts, but there's no way I will say
anything about it to my in-laws. The family dynamic will
not allow it, and my kids are likely to end
up with nothing if I do so. So ready, but,
(20:57):
but wait, Jean's really smart here, she said. So given
what I know, I was thinking I would just
plan to transfer $2,500 each year into a 529 plan
for each kid. Can you expand more on what actions
you would recommend to make the most out of this
(21:17):
gift to my children?
Suze (21:19):
I love that idea. You are so spot on, I
have to tell you, to transfer it each year. Now
listen to me. First of all....
The reason everybody I don't like UTMA or UGMA accounts
is that especially if your kid is going to apply
for financial aid, it's considered your kid's asset, and it
(21:44):
will hurt them for financial aid. A 529 plan does
not hurt your child for financial aid. That is why
I'd rather you do a 529 plan than a UTMA. However,
since Jean can't say anything about it.
What you're going to do is you're going to do
(22:05):
your plan of transferring your money from a UTMA to
a 529. However, you can't directly transfer UTMA funds into
a regular 529 plan.
Because the money legally belongs to the child, however, you
(22:26):
can open a UTMA/529 account, which is a 529 plan
funded with UTMA money. Now remember it must remain in
the child's name. The custodian must use it for that
child's qualified education expenses.
(22:46):
You can't change the beneficiary to another person unlike a
normal 529, so you have to know all these things, Jean.
And to fund it, the custodian sells the investments in
the UTMA. So don't invest the money in the UTMA
once the uncle gives it to the kid, all right?
(23:07):
And then you have to contribute it to the UTMA/529.
And there you go, just that simple. Now if you
invested it, everybody, let's say you had money in a
UTMA or a UGMA in the kid's name, you had
invested it and now you want to put it in
(23:28):
a 529 plan for them.
You would have to sell the investments and then the
kids would have to pay taxes on the gain if
there's any.
That's why Jean, in your particular situation, just take it,
don't invest it, leave it in cash, but immediately transfer
(23:49):
it to a UTMA/529 account in cash. Just that simple,
brilliant girlfriend.
KT (23:58):
Why can't the uncle open the the UTMA/529?
Suze (24:04):
Well, they wouldn't have...
KT (24:05):
Why can't he open that?
Suze (24:08):
He would just open up truthfully a 529 regular plan
would be 10 times smarter than doing a UTMA first.
There's no need KT, to open up a UTMA/529 if
you just have a 529.
So you would never put money into a UTMA first.
(24:31):
You would bypass it all together. However, Jean can't tell
the uncle. Could you just put it in a 529
plan rather than a UTMA? She's not open to do
that according to her email. So he thinks he's giving
the kid a gift, and he is, but to make
it a true gift to the kid,
(24:54):
Jean's gonna transfer it to a UTMA/529 account, just that simple.
Good thinking girlfriend. Anyway, KT.
That's it. So there's only one thing you want to
tell people as we leave this podcast. What is it?
KT (25:14):
There's only three things we want you to remember...
Suze (25:18):
Three?
KT (25:18):
Not one, three, and it's this people first, then money,
then things.
Suze (25:25):
Now you stay safe, secure, and healthy, and
make sure you subscribe to my YouTube channel. Go to YouTube.com/
Suzeorman and be smart. All right, everybody.
KT (25:40):
Arrivederci!
Suze (25:42):
See you soon. Bye-bye.
October 26, 2025. Welcome to the Women and Money podcast
vacation edition. It's the vacation edition because...
KT (00:18):
That's great. I love that.
Suze (00:20):
Because KT and I are on vacation right now as
you're listening, in Italy, we have 4 days...
KT (00:27):
Painting and eating...
Suze (00:28):
...left, before we back and that's what we're assuming we're
doing anyway so we're doing another ask KT and Suze
Anything
KT (00:39):
Sunday...
Suze (00:41):
Which by the way, I'm just going to tell all
of you I'm really loving because KT, I have to
say something.
I've done this podcast now for many years without you.
KT (00:51):
It's lonely.
Suze (00:52):
And not besides the fact that it's lonely, but not
so lonely.
KT (00:57):
It's lonely.
Suze (00:58):
Sometimes you aggravate me, but not really, no, but truthfully
I love it when you're doing it with me, and
I know there's a lot of people who want the
Suze Schools and everything, but honestly, everybody.
I don't have many si schools left in me only because,
with 700 podcasts...
(01:21):
I've taught you a lot that you need to know,
and it's already there so unless a new topic comes
up that I really want you to know.
I think there's a lot to learn from these questions
and given that we have thousands of them coming in.
KT (01:36):
We try so hard to answer all of you. We
really want to answer all of you.
Suze (01:41):
So just know that may be happening.
KT (01:45):
But also I just want to say if a world
event or something catastrophic may happen.
And Suze will absolutely jump on and give you every
bit of advice that she can to help
you.
Suze (01:58):
And the way you'll really know that, by the way,
is if you go to YouTube.com/ Suze Orman, my official
YouTube channel, because when the government shut down, I immediately
went there.
And I did a little five minute video saying exactly
(02:19):
what you should do and everything because it wasn't a
day that the podcast would drop.
KT (02:24):
Thousands of people listen to that.
Suze (02:27):
Well, they did not so many, I think 80,000 or
something like that.
But the first one I did, KT, really with the
tariff 630,000. But anyway, that's because people were really afraid.
They weren't so afraid when the government shut down and
it didn't affect everybody, or so they thought. But anyway,
go there and subscribe so you'll know
(02:49):
when I do something, especially when it's live. All right, KT.
KT (02:53):
So my first question is from Bernadette. She said, Suze,
what are the steps for creating a separate trust if
a marriage is in jeopardy or dissolving and a joint
trust had already been created? Must a divorce be finalized first? Hmm,
my concern is that anything can happen at any time.
(03:17):
She's nervous.
Suze (03:18):
I know I read this one and answered.
KT (03:21):
Oh well, what, what tell everyone listening what to do.
I'm sure there's a lot of people in that same
situation
Suze (03:27):
When I read an email like this, and Bernadette knows
I answered her. Of course I'm going to send an
email to her directly only because I don't know if
she's going to listen to the podcast and hear the answer.
Right, so therefore, here's what I told Bernadette. You absolutely
(03:48):
can create a separate trust, and you should create a
separate trust prior to your divorce. You should fund the trust.
Just make sure that you don't take marital assets, and
you should absolutely do it before
you are divorced, just that simple. After you actually go
(04:10):
and get divorced and start that proceedings, you might not
be able to do it. So do it now. That
was a short version of what I told her to do.
KT (04:20):
But then what happens with the joint trust?
Suze (04:22):
The joint trust will then get dissolved after she's divorced.
KT (04:24):
After the divorce.
Suze (04:27):
Absolutely. All right.
KT (04:30):
OK, that sounds easy, but it's still a little scary.
So Rachel, Rachel's asking about VOO.
Suze (04:38):
You know what scares you about that?
KT (04:41):
What?
Suze (04:41):
Because you can never imagine us divorced.
KT (04:44):
We have separate trust number one.
Suze (04:46):
Yes, that's one of the reasons, right? Just in case
I was stupid enough to ever want to do something, right?
But it's hard for you. I can see when you
read me emails like that, it's hard for you when
you see that somebody is separating or divorcing. It doesn't
quite sit well with you.
KT (05:05):
Never, um.
Because you, you, you just don't know about the what
ifs of life. And even though you and I are
so 100% solid and connected, you just never know about
the what ifs, which is why Suze has actually established
for us and especially for me, everything that would legally
(05:27):
protect me, as she said in the event that she
was so stupid to want to divorce me.
Right, yeah, but it's true...
Suze (05:36):
In KT's name like the island is all in KT's name,
an incredibly valuable asset, incredibly everybody. I want to know
that she's OK no matter what. All right.
KT (05:52):
All right. Next, thank you, Suze.
Suze (05:54):
You're welcome, KT. Oh, KT, let me have the boat though.
The boat's in my name. That's OK. No problem.
KT (06:01):
Little boat, how many years old? Over 10. Like our,
our car, the car is Suze's car and she doesn't
want to sell it. She loves that car. It's 12 years old.
Suze (06:14):
No, it is not.
KT (06:15):
How old is it?
Suze (06:15):
14.
KT (06:17):
Oh 14 years old, that thing. We love that little car.
And it has like 55,000 miles on it.
Suze (06:24):
I just can't selling it and and buying what?.
KT (06:28):
Gonna keep it. OK, next question is from Rachel. Hi
KT and Susie. I love VOO as much as Suze,
but I'm worried that the top 10 stocks now make up 38%.
Suze (06:39):
Yes, that's why I like VOO.
KT (06:43):
It seems I'm buying the S&P 10 rather than the
S&P 500.
Suze (06:49):
Yes.
KT (06:49):
Suze, what do you recommend for us to keep diversified
when we own mostly VOO?
Suze (06:55):
The way things work today, the markets, it's very different
than how it worked years and years and years ago.
Not only do I love, which is why I chose VOO.
And also because of its small expense ratio that the
top 10 stocks now make up 38% of it. And
(07:16):
if you really look at the Spiders or VTI, whatever
it may be, the top 10 stocks are all the same.
They're all the same. Everybody is in AI.
But not only do I love that you have VOO,
but I would actually, besides VOO, have you even more
heavy weighted in those stocks and have you buy even
(07:39):
more of them on an individual basis. So a lot
of times when a friend or somebody asks me what
should I invest in or what should I do, I'll say,
all right, let's put 50% of your money in VOO.
And then let's buy Nvidia, AMD, Palantir, IONQ, Iit, and
(07:59):
all of those. So I'm actually even making it more
heavy weighted in those stocks than just what VOO has done.
So I have to tell you I don't have a
problem with it at all. Diversification, not in the right
sector will leave a lot of money on the table
(08:21):
in these kinds of markets. Which is why
I switched from the VTI, the Vanguard Total Stock Market Index,
to Vu because I wanted more concentration in those top 10 stocks.
KT (08:34):
Tell everyone what VOO means, what it stands for.
Suze (08:38):
It's just the Vanguard Standard and Poor's 500 ETF. Just
that simple.
KT (08:42):
All right. Next question is from Darlene. The subject in
Darlene's email said, I really need her advice.
And I'm going to say, Suze, I really need to
know more about Darlene. Are you ready? She said, I
will be 67 in April 2026. No mortgage, no debts,
(09:04):
no car loan. I have an emergency fund, a 403B,
and a Roth IRA. I want to retire in May 2026.
Can I do that?
So Darlene gives us all this information, but never a
dollar amount against it. All I know is she's going
(09:25):
to be 67.
Suze (09:27):
So why did you pick it?
KT (09:28):
Because it's too short. So I need everyone that's listening
to know.
that when you send me an email that says, I
really need her advice, she's not going to be able
to give you any advice unless you fill in the blanks.
Suze (09:42):
So here's the thing, everybody, KT's correct. More than what
you have, I need to know.
What do you spend? What are your expenses? You don't
have to itemize them for me. But if Darlene, and
we'll just use this as an example of if you
want to know something, how it should read. Hi Suze,
(10:03):
I'll be 67 in April. Have no mortgage. My house
is worth $500,000. I don't have any debts. I don't
have a car loan, but
I think I may need to buy a car in
the next few years. I do have an emergency fund.
How much of an emergency fund? I want to know.
I have a 12 month emergency fund, then I don't
(10:25):
have to worry about you. I have a 403B and
a Roth IRA. Well, how much do you have in them?
I need to know that. I want to retire in
May 2026.
I will need X amount of money after tax in
order to be able to do so. My Social Security
(10:46):
will be x, period.
Then I can kind of tell you.
Also say, and I'm in good health and I have
a long term care insurance policy.
KT (10:58):
And you also want to know a little more about Darlene.
Does she have dependents? Is she married? Is her spouse
working or not working?
Suze (11:07):
Well, the truth is I would just take this one, KT,
and assume that she's single with no
dependents and she just wants to take care of herself.
So that's how you would do it, Darlene. You want
to write back and if KT sees it, maybe she'll
choose it. All right.
KT (11:25):
Fill in the blanks, Darlene. This next question from Liz
I love makes me laugh, but you got to set
her son straight. You ready?
Liz says...
Suze (11:35):
I'm gonna like this one art't I?
KT (11:37):
Yes, you will. Hi, Suze and KT. You inspired me
in late 2023 when you spoke to Humana employees. She's
been with Humana for 13 years.
You spoke to them, Suze, just so everyone knows about
having an emergency fund with Secure Save. Susie's one of
the founders of Secure Save, and it's a great program, uh,
(12:00):
that she's established.
Suze (12:02):
Actually, I just have to say something since you brought
that up. So five years ago now, myself and two
other people, right, Devin and Bassam, founded a company called
Secure Save.
And all of you could go to secureave.com/Suze and you'll
(12:22):
find out more about it, but it's simply an employer
sponsored employee savings plan. So you put in $25 the
employer puts in $5 whatever it may be, you have
access to that money anytime you want. It is fabulous
and it's been very successful. Therefore,
(12:44):
if you want your employer to offer it, go to secureSave.com/
Suzeorman or just go to secureSave.com and you'll see it there.
And if you're an employer and you want to find
out more about it, to offer it to your employees,
go to those places as
well. All right.
KT (13:01):
Yeah, because Liz is one happy employee. She said not
only Suze,
did you talk to her about an emergency fund with
Secure Save, but many other important tips like having a
Roth account. So she's learned so much from you, she said,
since then I am a devoted listener and taking action
(13:22):
on so many things you have opened my eyes to.
I now have a Roth. I save biweekly in Secure Save,
and I've purchased the must have documents and so much more.
Here is my question.
I'm now paying it forward with my four sons with
all the great info you provide each week on your
(13:43):
podcast and Ask Suze and KT anything. Connor, age 30,
doesn't want to use the documents, the must have documents... Ready?
These are, um, so just so everyone knows they're distributed
through Hay House, and he's telling me these companies use
(14:05):
and or sell people's personal information.
Suze (14:08):
He's an idiot.
KT (14:09):
This is, well, his mom thinks so too, right? So
he won't do it, unfortunately, he won't listen to me
on how important those
documents are and like you have said could be very
costly elsewhere, but the most important that worries me is
the fact that if he is incapacitated in some way,
(14:31):
he should appoint someone to make decisions on his behalf.
So Connor's single. She said, I know it's his choice
to make.
Maybe you could shed some light on Hay House and
how they handle personal info. Hoping this will knock some
sense into my son's brain. She said thank you both
(14:51):
for making my life better now and in my retirement
years better late than never.
And that's from Liz. I thought you would love that
Liz is a Humana employee, and she really, really benefited
from the talk you gave them almost three years ago now.
Suze (15:09):
Yes, a lot of corporations hire me to give talks
like that to them.
Although I said to KT the other day, KT, what did I say to you?
KT (15:18):
She's not sure if she wants to do any more
speaking engagements, which makes me really sad because she's so great.
It's the best of Suze you would ever experience is
in front of a live audience on a stage.
And I can't begin to tell you how thrilling it
is because no one ever knows what she's gonna say,
(15:40):
what mood she's in, how she's gonna, you know, handle
her audience. It's a big surprise. It's like Christmas every
time she does these live talks, really, really fun. I
miss them.
I always miss them.
Suze (15:55):
I tell you one of my favorite sayings? What was
was and what was will never be again. So here, Liz,
this is what I would say to Conor. Connor, the
biggest mistake you will make in life is the mistake
you don't even know that you're making. At 30, you
think you know so much. You think you know what
(16:17):
companies do. Don't you get it, Connor, that Hay House
doesn't have a clue
what your information is that you put on it, you
keep it on your computer, you have it. They don't
have any access to it. That's why you create your
own passcode.
They just give you an activation code. You open up
(16:39):
the documents. Then from that point on they are all yours.
They know nothing about it. So Liz, first of all,
you don't have to worry about it. You don't have
to let his fear of the unknown put fear into
you of what does Hay House do with all these documents.
They don't know. So how many times have we been
(17:02):
contacted
by a lawyer, seriously that says this person died, her
children said that this person did the documents with the
must-have documents, but they don't know where they are. Do
you have a copy of them? And Hay House has
to write back and say, no, we don't have anything.
(17:22):
They don't even know if you filled them out or
ever used them. So grow up, Conor, seriously.
You don't want to do it fine. Go to a
lawyer and spend $2,500 or $5,000 or whatever just so
you can sit there and let the lawyer know everything
that you have. How do you know what the lawyer
(17:45):
does with that information? Really, Connor? Just saying. Don't be stupid.
You want to be smart.
Take advantage of the fact that your mother bought the
must-have documents and she is allowed to share them with
anybody in her family for absolutely free. You can make changes.
(18:08):
Are you kidding me? $2,500 worth of state of the
art documents and you don't want to do it.
So Liz, here's the other thing I would say...
KT (18:19):
Tell everyone how much the must have documents are.
Suze (18:21):
They're $99. They are going to go up sometime next year,
a considerable amount, by the way, everybody, so you should
take advantage of it now. Go to musthavedocs.com, just that simple.
Now one other thing, Liz, your fear about if something
(18:43):
happens to Connor.
And he doesn't have an advanced directive and a durable
power of attorney for health care because he is over 18.
You cannot help him. So if you want, print out
again the documents. He doesn't have to sign the trust.
He doesn't do anything but just have him give you
(19:08):
the power
to make decisions for him if anything were to happen
to him. Just that simple. And again, hey, he doesn't
trust that. Go to a hospital, go somewhere
and get one so that he is protected in case
something happens to him.
KT (19:27):
This is my final um email. It's from Jean and
it's a UTMA account. First, Suze, tell everyone what that is.
Suze (19:34):
Uniform transfer to minor's account. It can also be a
UGMA account with a uniform gift to minor's account.
KT (19:42):
All right, so...
This is from Jean, she said. Dear Suze and KT,
thank you so much for all of your advice over
the years. You responded to a question of mine two
years ago about my plan to use money from my
Roth to make a down payment on a house for
my family. You gave me the confidence to go forward
(20:04):
with a scary but wonderful decision. We are so happy
in our new home.
Suze (20:10):
Love that.
KT (20:12):
And now Jean said, I'm writing today to ask for
some guidance regarding UTMA accounts for my daughters aged 6
and 8. My husband's great uncle is opening these accounts
for them this month. I have no idea what the
dollar amount is going to be, but probably in the
(20:33):
five to $15,000 range for each of them.
I did my homework and I know that you don't
recommend UTMA accounts, but there's no way I will say
anything about it to my in-laws. The family dynamic will
not allow it, and my kids are likely to end
up with nothing if I do so. So ready, but,
(20:57):
but wait, Jean's really smart here, she said. So given
what I know, I was thinking I would just
plan to transfer $2,500 each year into a 529 plan
for each kid. Can you expand more on what actions
you would recommend to make the most out of this
(21:17):
gift to my children?
Suze (21:19):
I love that idea. You are so spot on, I
have to tell you, to transfer it each year. Now
listen to me. First of all....
The reason everybody I don't like UTMA or UGMA accounts
is that especially if your kid is going to apply
for financial aid, it's considered your kid's asset, and it
(21:44):
will hurt them for financial aid. A 529 plan does
not hurt your child for financial aid. That is why
I'd rather you do a 529 plan than a UTMA. However,
since Jean can't say anything about it.
What you're going to do is you're going to do
(22:05):
your plan of transferring your money from a UTMA to
a 529. However, you can't directly transfer UTMA funds into
a regular 529 plan.
Because the money legally belongs to the child, however, you
(22:26):
can open a UTMA/529 account, which is a 529 plan
funded with UTMA money. Now remember it must remain in
the child's name. The custodian must use it for that
child's qualified education expenses.
(22:46):
You can't change the beneficiary to another person unlike a
normal 529, so you have to know all these things, Jean.
And to fund it, the custodian sells the investments in
the UTMA. So don't invest the money in the UTMA
once the uncle gives it to the kid, all right?
(23:07):
And then you have to contribute it to the UTMA/529.
And there you go, just that simple. Now if you
invested it, everybody, let's say you had money in a
UTMA or a UGMA in the kid's name, you had
invested it and now you want to put it in
(23:28):
a 529 plan for them.
You would have to sell the investments and then the
kids would have to pay taxes on the gain if
there's any.
That's why Jean, in your particular situation, just take it,
don't invest it, leave it in cash, but immediately transfer
(23:49):
it to a UTMA/529 account in cash. Just that simple,
brilliant girlfriend.
KT (23:58):
Why can't the uncle open the the UTMA/529?
Suze (24:04):
Well, they wouldn't have...
KT (24:05):
Why can't he open that?
Suze (24:08):
He would just open up truthfully a 529 regular plan
would be 10 times smarter than doing a UTMA first.
There's no need KT, to open up a UTMA/529 if
you just have a 529.
So you would never put money into a UTMA first.
(24:31):
You would bypass it all together. However, Jean can't tell
the uncle. Could you just put it in a 529
plan rather than a UTMA? She's not open to do
that according to her email. So he thinks he's giving
the kid a gift, and he is, but to make
it a true gift to the kid,
(24:54):
Jean's gonna transfer it to a UTMA/529 account, just that simple.
Good thinking girlfriend. Anyway, KT.
That's it. So there's only one thing you want to
tell people as we leave this podcast. What is it?
KT (25:14):
There's only three things we want you to remember...
Suze (25:18):
Three?
KT (25:18):
Not one, three, and it's this people first, then money,
then things.
Suze (25:25):
Now you stay safe, secure, and healthy, and
make sure you subscribe to my YouTube channel. Go to YouTube.com/
Suzeorman and be smart. All right, everybody.
KT (25:40):
Arrivederci!
Suze (25:42):
See you soon. Bye-bye.
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