October 19, 2025 • 30 mins
On this Sunday Ask Suze & KT Anything episode, KT asks Suze your questions about smart investing, trusts for children, worrying about a financial crash and so much more.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Suze (00:08):
October 19, 2025. Welcome everybody..
KT (00:12):
To the Women and Money podcast,
Suze (00:13):
and everybody's smart enough to listen. This is...
KT (00:17):
Ask...no, this is Sunday.
It's, I was about to say this is Ask Suze anything,
but it's Sunday, and on Sunday, guess what, you can
still ask Suze anything. I'm doing the show with her
on Sunday.
Suze (00:32):
So here's the thing, everybody, as you know, if you've
listened to the Women and Money podcast and everybody smart
enough to listen.
We are in Italy as you are listening to this,
but we pre-recorded it, so you wouldn't have to just
listen to best of the whole time we're gone. However,
(00:55):
because I don't really know what's happening out there in
the economy and things like that, it's just better that
KT and I do for the whole time we're gone,
Ask KT and Suze Anything and
I'm starting to like it. Maybe KT, what do you think?
Should we just go to once a week with just us?
KT (01:12):
Why not?
Suze (01:12):
Maybe twice a week with just us?
KT (01:14):
Why not?
Suze (01:15):
Yeah, maybe we'll do...
KT (01:16):
And how about YouTube and us.
Suze (01:18):
Oh, here we go. All right, so she wants me
to tell all of you, you should definitely subscribe to
my YouTube channel. Go to youtube.com/ Suzeorman.
And just subscribe. Just do it. You won't regret it.
So that's why it's KT and me today. All right, KT,
(01:40):
school me.
KT (01:41):
All right, my first question is from Maria. She said, Hi,
KT and Suze, I've been listening to you for a
couple of years now, and I'm so afraid of losing
any money. I just can't afford it.
So Maria said, I do have a Roth IRA, but
I would like to do more. I know you've spoken
(02:01):
about having a Roth IRA in VOO, but I'm not
sure how to go about that. Please help. So sweet,
very sweet. So let's help Maria.
Suze (02:12):
But first, Maria, I have a question. You say that
you have been listening to me now for a couple
of years.
And you're so afraid of losing any money. KT, that
kind of means we haven't really done a very good
job for those two years that she's been listening.
(02:32):
Because one of the main objectives of the Women and
Money podcast, and everybody smart enough to listen is to
diminish your fear, to take it away, to instill courage
and bravery in you to just try. So Maria, what
I would say to you is.
(02:53):
And I think about this all the time, and I've
given this example and we still do it here when
we go in the ocean. Sometimes when we go in
the ocean, it's really cold, especially during the winter months.
We just don't go in and jump in, and that's it.
We go a little bit, especially me, then a little
bit KT just jumps in.
KT (03:13):
I was gonna say speak for yourself.
Suze (03:15):
I know who you are, right? So but a little
by little and as soon as I get used to it,
then I take the final dip in.
So how would you go about it? You would go
about it little by little. Decide on an amount of
money every single month that you feel comfortable with putting
(03:36):
it into an ETF like VOO. You say you already
have a Roth IRA.
So within the Roth IRA just do exactly what I
just told you to do with VOO, and I promise
one day somebody's going to be happy and that will
be you. Get it, KT?
KT (03:57):
You and VOO
Suze (03:58):
You and VOO all right, doll.
KT (04:00):
OK, my next question is from Jude, and Jude said,
I am...
Suze (04:09):
Hey Jude, (singing) that should have been Maria.
Don't be, isn't it? Don't be afraid. Yeah, so hey Maria,
don't
be afraid.
KT (04:17):
All right, so hello Suze and KT. I'm a 70
year old retired female. I have a whole life insurance
policy I bought two years ago just so my two
children will have a little something upon my passing along
with a small 401k.
My annual premium is $2,569 for a $50,000 insurance policy
(04:45):
with Mutual of Omaha. There are no paid dividends. Is
there something better or is this a good policy? So she's...
listen to this again. I keep doubting if this is
the best thing for the money. She said I could
put the premium into my 401k if that makes more sense.
(05:06):
So you should see Suze's face.
Suze (05:08):
Well, I, my face looks like this because I answered
her directly.
KT (05:12):
Oh, so would you tell her to do?
Suze (05:15):
I told Jude, let's not worry about the kids. You're
70 years of age. You are four years younger than me, OK?
You are still young. Hopefully you have vitality and you
have a lot of living to do yet.
So can we just start thinking about ourselves versus our kids?
(05:40):
Really everybody, if you pass something along to them, OK,
but the greatest thing you can pass along to them, Jude,
is them seeing that their mother is living life. Not, oh, look,
we got this money, but my mom didn't do anything.
She was miserable or whatever it may be.
(06:01):
So can we just change how you think? What I
showed her was you can keep this if you want,
or if you simply took the 2,569 and you invested
it for 10 years at an average rate of like
8 or 10%, you'd have about $45,000 for 20 years,
you'd have about 160 some odd thousand. You'd have far
(06:22):
more to leave them,
if you live your normal lifespan than if you just
have this policy, so yeah, you can do better things
with it than that. However, never cancel an insurance policy
unless you know you are perfectly healthy, period. All right.
(06:44):
You see, everybody, wait, let me just say something here.
KT (06:48):
She sneaks in and sees all my selections.
Suze (06:51):
This last week I went a little crazy as KT
will tell you right before we left, which is I
answered so many of your questions personally and all of
you know that I did when you got them.
And so I also, by the way, said thank you
to hopefully all of you that sent in what the
(07:12):
name or the subtitle of the Women and Money podcast
should be. There are a few that we like a
whole lot, right KT?
KT (07:19):
Uh, again, there's many that we like.
Suze (07:21):
So we'll pick one. We'll see, right? But you know,
I sent every one of them back a little thank
you note, and they went.
KT (07:28):
Whoa.
Suze (07:30):
So anyway, there you go. So if you have a question,
write in to ask Suzi podcast@gmail.com. You never know when
KT will choose it, but you never know when I'll
ask you directly. However, keep it short. Go on, KT.
KT (07:47):
OK, this next question is from Leslie, and I think
Leslie needs
to have a little talk with the in-laws ready? Loyal
listener for over a year here. My brother-in-law is in
money trouble. He owes $200,000 with a 12% annual interest
in an unconventional loan that can be paid in as
(08:11):
little or as long as possible, and then she wrote, sketchy,
I know.
He's not good with money. When it says unconventional loans.
Something's a little awry. Suze, I originally thought a HELOC
loan was a good idea, but they're at 18% where
he is. I believe he should sell his house, which
(08:33):
is worth about 5 or $600,000. Get out of this
mess once and for all and start fresh. He has
a family. They could rent or live with relatives to
truly save up and get ahead. What do you think?
So she wants, she wants some tips on how to
talk to him.
Suze (08:54):
No, she wants a tip on what he should do.
And then hopefully she'll say, you know what, brother-in-law, you
need to listen to Suze on the Women and Money
podcast and listen to what she thinks you should do.
Leslie and brother-in-law in case he's listening.
All right, I get you owe 200,000.
(09:17):
But the goal is not to just get out of
this debt.
Because if we can't figure out why you got into
this debt to begin with, you're just going to get
into it all over again. Was it a gambling problem?
What did it come from and why did you accumulate
(09:39):
it and why is it at such a high interest rate?
Now Leslie, you say that you think that a HELOC would
have been a good idea, but they're at 18% where
he is. No, they're at 18% because his FICO score
is so low that for anybody to even lend money
on a house that has equity to somebody who is
(10:02):
irresponsible with paying money back, that's when they raise the
interest rate. So another danger sign. So no, I would
not number one, take out a HELOC.
And number two, I would not sell the house to
pay off this debt. Why? Because this debt, even though
(10:24):
it may be sketchy, may be an unsecured debt, which
means he can't pay it. He can't do whatever. They
can't take his house. They can't take something.
Like what kind of debt is this? If you sell
the house, you pay off the debt now they rent
(10:46):
or do whatever they have, you know, 300,000 or whatever
they have in equity in that house. He's going to
blow it before you know it. Then they won't even
have a home to live in. So therefore.
We got to figure out how did he get into
this debt. Why hasn't he been able to pay it off?
What's really going on with him? So rather than giving
(11:09):
him financial advice, you need to start talking with him
in terms of personal advice as to what the hell
is going on with you and why.
'Cause until you figure that out, you cannot solve this.
How many times have I said you can never solve
a financial problem with money, and this man has a
(11:34):
problem with money, period. KT, next question.
KT (11:39):
All right.
So next question...
Suze (11:41):
you weren't expecting that, were you?
KT (11:43):
No, I actually thought you were going to say to
sell the house, but it is true. First of all,
an unconventional loan, hmm. That to me was the big
red flag, unconventional loan. He better fess up and tell
the truth.
Yeah, first to himself. All right, next question is from Bryant,
(12:04):
and Bryant says, Hi, Suze, my wife and I are
both 45 with two kids, nine and five. We have
some questions about getting an estate plan together. I'm currently
working in the New York City school system.
And my wife is a homemaker. Should something happen to us,
how can we set up our kids so that they
(12:25):
can be financially stable? What type of trusts are out
there so that we can provide them with income? Mhm.
So there you go. I think they don't have a
real trust... they need must have documents end of story.
Suze (12:39):
No they don't.
KT (12:39):
Why?
Suze (12:42):
They do, but they need something more than that, KT (Suze makes the wrong answer sound).
KT (12:47):
All right, sorry, I got that quizzy wrong.
Suze (12:49):
Got that quizzy wrong
Listen, Bryant, you're both 45 and you have two minor children,
so it's true that you need to protect them. Now
you do not say in here that you own a home.
It doesn't really say that you own anything, except these kids.
(13:09):
And what you want to know is how do you
protect these kids? So the very first thing that you
should do is get a term life insurance policy on
both you and your wife because even though you may
have some insurance with where you work.
It's probably one year's salary, so it's not enough to
(13:31):
really set them up, and at 45, if you got
a 20 year level term policy, assuming that you are
both healthy, you could get 1 million, 2 million on
each of you or more.
And then if something happened to one of you, the
other would actually be protected. If something happened to both
of you, then your kids would be protected, especially if
(13:56):
you left that policy to a trust. Now this is
where KT is correct.
Ding ding ding ding. You should have, forget about the
kids for a second. You should have for yourselves a
living revocable trust, an advanced directive, a durable power of
attorney for health care, as well as a financial power
(14:16):
of attorney. You really need to look into the must-have docs.
Go to musthavedocs.com
and check them out. They're $99 for $2,500 worth of
state of the art documents that are good in all
50 states. You can update them whenever you want. You
can share them with your other members of the family,
(14:37):
whatever it may be. Anyway, you need to do that
to number one, protect yourselves in case something happens. You
never know what can happen, but really, if you have
that in place.
Then maybe the trust could be the secondary beneficiary on
your retirement accounts. Remember, your spouse is always the primary
(15:00):
beneficiary on your retirement accounts, but the trust could be
the secondary beneficiary where it would say how the kids
are taken care of because kids can't inherit money.
They're minors. So therefore, if you want to make sure
that they're set up financially in case something happens to you,
(15:24):
but somebody is in charge of it until they're adults
and maybe you'll even set it up depending on how
much insurance or whatever you have in there, maybe it
is set up so that they don't get this money
until they're 25, 35, 45 because you need to be
an adult,
(15:44):
in every possible way to handle money. All right, KT.
KT (15:49):
OK, next question is from Robert. Hi, Suze. We're in
retirement with some new income from an apartment we are
renting out. Besides that, our income is Social Security and
our investments. We do have an emergency fund enough for
about 10 months of expenses, but we're concerned about the
possibility of a real
(16:10):
crash and are wondering if we should take 50% of
our retirement investments and put it somewhere able to withstand, ready?
A 1929 or a 2008 level crash, Robert and Liz,
this is not the first time I've received emails like this.
People are getting a little nervous.
Suze (16:32):
So first, Robert and Liz, let me say this about 2008.
That crash happened,
because banks were lending on homes that were under water,
no money down, it was so crooked how money was
being used back then by the financial institutions, and one
(16:55):
bank was selling a loan to another bank. They didn't
care if you qualified. It was no money down. It
was horrific.
And that led to the crash. That's not where we
are right now. Nobody's doing that anymore, so we're solid
on that level, all right, so stop thinking that way.
(17:17):
1929 was a whole other story that's not gonna happen
at this point in time again. So just get that
out of your head. I don't think we're ever going
to have a crash like those crashes. However,
that doesn't mean that the market can't go down significantly
(17:38):
because something else happens and we don't know what that
could be, but that could happen no matter what. So
if you are afraid.
You're concerned for whatever reason. Nothing I say should make
you necessarily feel better because the truth is I don't know.
(18:00):
Do we have another September 11th? Do we have a
cyber attack? What can happen of the unknown that could
really cause everything to freeze up or do whatever? Therefore,
you need to do what you need to do to
make yourself feel safe and sound.
Because the goal of money is for you to be secure,
(18:22):
even though I still think these markets and everything have
a long way to go. Another year or so, especially
in certain areas, I do not think that we are
in an AI bubble by any means, and I could
go on and on, but what's important here is you
have to honor your own thoughts.
(18:44):
You have to listen to your own fear about things
so only you know what's right for you and whatever
decision you make, don't ever spend time thinking about, did
I make the right decision, make the decision you made right, period.
(19:06):
KT, tell everybody where we got that from my last line.
KT (19:10):
So Suze just quoted a Dr. Ellen Langer, who was
a guest on the Mel Robbins podcast. And we were
listening to it. We like to take our infrared saunas
at night and we listen to books or podcasts
or whatever we think we could learn from. It's very
relaxing and we just love the thinking of this doctor.
(19:32):
It's called the Mindful Body. So listen to it if
you can. It's great.
Suze (19:36):
Actually, KT, we learned two really important things from the doctor.
The first one was what I just quoted you, everybody,
which is don't question whether you made the right decision.
Make every decision you make right. We thought that was brilliant.
And the second one that we loved among others, was
(20:01):
rather than adding more years in your life, add more
life to your years.
And KT and I especially at our age right now,
really love that one that one. So that's where that
came from.
KT (20:16):
Yeah, Doctor Langer, that's our favorite, and we live by that.
We add life to our years.
Suze (20:22):
All right, go on.
KT (20:24):
All right, so.
This next question, I currently have $515,000 invested in a
taxable brokerage account all in the Fidelity Total Stock market
index fund. I'm 59 years old, and I think it's
time to cash this position out and put the money
in a safer investment.
(20:45):
See, Suze, people are getting skittish, John said. I spoke
to my accountant. He advised me, ready? To cash half
of the fund out this December and the balance right
after the first of January. My question is, do you
have any suggestions on safer investments other than equities?
(21:06):
And there you go. So John gave you a summary
of what he's got, but I think again people are nervous, Suze.
A lot of um jittery people out there.
Suze (21:18):
Well, John, I have to tell you.
I don't think the advice that you got from your
accountant is the best advice at all. And here is
the reason why, KT just gave me your email.
The $515,000 everybody, listen to me closely.
The $515,000 that John has invested is in a taxable
(21:44):
brokerage account in the total stock market index. OK. Over
the past year, two or three that has gone up considerably.
Even if he sells half this year and half next year,
he's gonna owe taxes on that money. That means his
(22:07):
taxes that he paid is no longer available for him
to compound or invest. It's out because he's paid taxes
on it.
Now he's reinvesting that money in something that's also going
to be taxable. What could he do instead? John, you
have in your 401k, not a Roth 401k, in your
(22:33):
traditional 401k, $450,000.
If it were me advising you, I would have told you, listen,
if you want to become more conservative, you have to
look at your money as a whole.
Where can you take money out that you don't have
(22:55):
to pay taxes on?
And in the future it would even help you more
if it didn't grow that much, and that would be
your 401k because when you go to take money out
of your 401k, number one, it's going to be ordinary
income taxed. Next you're going to owe RMDs on that money. Therefore,
(23:19):
if I were you, I would come out of the
market with the 401k.
If you're going to quit your job, OK, or whatever,
you can then do an IRA roll over with that money,
no taxes. Put it in treasuries, do whatever you want
with it to keep it safe and sound, so that
it's good, but guess what? You never pay taxes on it.
(23:42):
And there you go, you accomplished the diversification but didn't
have to pay taxes and therefore you could just let
the 515,000 in the total stock market index ride because
it's going to go up most likely. It's a great
place to be diversified. You're doing exactly what you should do.
(24:04):
The rest of your money, the Roth IRA, fabulous.
You don't have to worry about taxes there, but if
it were me, I would use the money in the
401k plan and not do what your accountant told you
to do. All right.
KT (24:20):
So this next question is from Orhan. It's an interesting name,
isn't it? Orhan.
Been a listener for years and thank you both for
all the knowledge you give us. I turned 73 on
the last day of 2026, December 31st. Wow, that's a new...
Suze (24:39):
This is going to be your
pop quizzy.
KT (24:41):
All right. Is my RMD calculated on the total traditional
IRA's value as of December 31, 2025 and
can I or must I access my RMD throughout the
entire 2026 year even though I don't turn 73 until
(25:05):
the last day of the year? I don't know what
to take out. Two RMDs in 2027. Thank you.
Suze (25:14):
Pop quizzy.
KT (25:17):
All right, so, he's turning 73 on the last day of December.
I think he only needs to take one RMD.
Suze (25:25):
But he's not turning 73 to the last day of 2026.
Can he? The first question, can he before he turns
73 anytime in that year,
can he take out his RMD before he turns 73
(25:47):
to satisfy the RMD for 2026? Yes or no?
KT (25:55):
Ohh.
All right, KT, this is gonna be a guess. I'm guessing.
I think that he had, he can pass. I think
you get a little grace period and he can do
it in 27.
Suze (26:10):
If he does it in '27, however, because he turned 73
in '26...
KT (26:17):
On December 31st on the
last day.
Suze (26:19):
If he takes it out in '27, he's gonna have
to take out two,
in '27, one for 26 and one for '27. So
now he subjected himself to two RMDs in 2027. Is
that his only alternative? Yes or no?
KT (26:41):
I don't think it's his only alternative.
Suze (26:43):
So what else could he do? He has to take
two out.
KT (26:46):
Yeah,
Suze (26:47):
So... (Suze makes the wrong answer sound)
KT (26:49):
I think, no, I said you get a grace period.
Suze (26:51):
You don't get a grace period.
You don't?
No.
KT (26:55):
So, so what did I do wrong?
Suze (26:57):
You don't know the rules, and I'm gonna tell you
the rules. That's all you did wrong, my love. So
listen to me, everybody.
Your RMDs are based on the value of your account
on December 31st, the year before
(27:17):
you turn 73, so in this case it will be
based on December 31st, 2025. Since it's based on that
amount and that's not going to change because that is
the amount he is allowed to take out an RMD
any time during 2026, even though when he takes it out,
(27:44):
he may not be 73 yet, but because he's going
to be 73 in 2026, the last day, he can
take one RMD out in 2026.
And another one then when he wants to in 2027
and that one will be based on the ending value
(28:07):
of his account on December 31, 2026. That's how he
would do it just so you know, you never want
to subject yourself, KT, to two RMDs. You do not
listen closely to me, KT, when you take out a
required minimum distribution.
You have to take it out by April 1st after
(28:32):
the year you turn 73, OK? If you do that.
Doesn't mean that you're postponing the next one, you'll have
to take out two that year, the one you should
have taken out for '26 that you postponed till '27.
And the one that you should have taken out as
well in '27, so you never ever want to postpone.
(28:56):
Unless you know you're going to be in a really 0%
tax bracket, you want to take your RMD in the
year you turn RMD age. And for those of you
born 1960 or later, you're not going to have to
do it till you're 75.
KT (29:17):
All right, that is a wrap.
Suze (29:19):
So we hope you enjoyed
our Ask KT and Suze, anything vacation edition.
KT (29:27):
Let's go eat some pasta.
Suze (29:29):
I'm sure we will be at this point in time, right?
But anyway, there's only one thing that we want you
to remember when it comes to your.
Money and what is that KT?
KT (29:40):
People first, then money, then things.
Suze (29:45):
Now you stay safe and go to youtube.com/ Suze Orman and subscribe.
See you soon. Bye-bye.
October 19, 2025. Welcome everybody..
KT (00:12):
To the Women and Money podcast,
Suze (00:13):
and everybody's smart enough to listen. This is...
KT (00:17):
Ask...no, this is Sunday.
It's, I was about to say this is Ask Suze anything,
but it's Sunday, and on Sunday, guess what, you can
still ask Suze anything. I'm doing the show with her
on Sunday.
Suze (00:32):
So here's the thing, everybody, as you know, if you've
listened to the Women and Money podcast and everybody smart
enough to listen.
We are in Italy as you are listening to this,
but we pre-recorded it, so you wouldn't have to just
listen to best of the whole time we're gone. However,
(00:55):
because I don't really know what's happening out there in
the economy and things like that, it's just better that
KT and I do for the whole time we're gone,
Ask KT and Suze Anything and
I'm starting to like it. Maybe KT, what do you think?
Should we just go to once a week with just us?
KT (01:12):
Why not?
Suze (01:12):
Maybe twice a week with just us?
KT (01:14):
Why not?
Suze (01:15):
Yeah, maybe we'll do...
KT (01:16):
And how about YouTube and us.
Suze (01:18):
Oh, here we go. All right, so she wants me
to tell all of you, you should definitely subscribe to
my YouTube channel. Go to youtube.com/ Suzeorman.
And just subscribe. Just do it. You won't regret it.
So that's why it's KT and me today. All right, KT,
(01:40):
school me.
KT (01:41):
All right, my first question is from Maria. She said, Hi,
KT and Suze, I've been listening to you for a
couple of years now, and I'm so afraid of losing
any money. I just can't afford it.
So Maria said, I do have a Roth IRA, but
I would like to do more. I know you've spoken
(02:01):
about having a Roth IRA in VOO, but I'm not
sure how to go about that. Please help. So sweet,
very sweet. So let's help Maria.
Suze (02:12):
But first, Maria, I have a question. You say that
you have been listening to me now for a couple
of years.
And you're so afraid of losing any money. KT, that
kind of means we haven't really done a very good
job for those two years that she's been listening.
(02:32):
Because one of the main objectives of the Women and
Money podcast, and everybody smart enough to listen is to
diminish your fear, to take it away, to instill courage
and bravery in you to just try. So Maria, what
I would say to you is.
(02:53):
And I think about this all the time, and I've
given this example and we still do it here when
we go in the ocean. Sometimes when we go in
the ocean, it's really cold, especially during the winter months.
We just don't go in and jump in, and that's it.
We go a little bit, especially me, then a little
bit KT just jumps in.
KT (03:13):
I was gonna say speak for yourself.
Suze (03:15):
I know who you are, right? So but a little
by little and as soon as I get used to it,
then I take the final dip in.
So how would you go about it? You would go
about it little by little. Decide on an amount of
money every single month that you feel comfortable with putting
(03:36):
it into an ETF like VOO. You say you already
have a Roth IRA.
So within the Roth IRA just do exactly what I
just told you to do with VOO, and I promise
one day somebody's going to be happy and that will
be you. Get it, KT?
KT (03:57):
You and VOO
Suze (03:58):
You and VOO all right, doll.
KT (04:00):
OK, my next question is from Jude, and Jude said,
I am...
Suze (04:09):
Hey Jude, (singing) that should have been Maria.
Don't be, isn't it? Don't be afraid. Yeah, so hey Maria,
don't
be afraid.
KT (04:17):
All right, so hello Suze and KT. I'm a 70
year old retired female. I have a whole life insurance
policy I bought two years ago just so my two
children will have a little something upon my passing along
with a small 401k.
My annual premium is $2,569 for a $50,000 insurance policy
(04:45):
with Mutual of Omaha. There are no paid dividends. Is
there something better or is this a good policy? So she's...
listen to this again. I keep doubting if this is
the best thing for the money. She said I could
put the premium into my 401k if that makes more sense.
(05:06):
So you should see Suze's face.
Suze (05:08):
Well, I, my face looks like this because I answered
her directly.
KT (05:12):
Oh, so would you tell her to do?
Suze (05:15):
I told Jude, let's not worry about the kids. You're
70 years of age. You are four years younger than me, OK?
You are still young. Hopefully you have vitality and you
have a lot of living to do yet.
So can we just start thinking about ourselves versus our kids?
(05:40):
Really everybody, if you pass something along to them, OK,
but the greatest thing you can pass along to them, Jude,
is them seeing that their mother is living life. Not, oh, look,
we got this money, but my mom didn't do anything.
She was miserable or whatever it may be.
(06:01):
So can we just change how you think? What I
showed her was you can keep this if you want,
or if you simply took the 2,569 and you invested
it for 10 years at an average rate of like
8 or 10%, you'd have about $45,000 for 20 years,
you'd have about 160 some odd thousand. You'd have far
(06:22):
more to leave them,
if you live your normal lifespan than if you just
have this policy, so yeah, you can do better things
with it than that. However, never cancel an insurance policy
unless you know you are perfectly healthy, period. All right.
(06:44):
You see, everybody, wait, let me just say something here.
KT (06:48):
She sneaks in and sees all my selections.
Suze (06:51):
This last week I went a little crazy as KT
will tell you right before we left, which is I
answered so many of your questions personally and all of
you know that I did when you got them.
And so I also, by the way, said thank you
to hopefully all of you that sent in what the
(07:12):
name or the subtitle of the Women and Money podcast
should be. There are a few that we like a
whole lot, right KT?
KT (07:19):
Uh, again, there's many that we like.
Suze (07:21):
So we'll pick one. We'll see, right? But you know,
I sent every one of them back a little thank
you note, and they went.
KT (07:28):
Whoa.
Suze (07:30):
So anyway, there you go. So if you have a question,
write in to ask Suzi podcast@gmail.com. You never know when
KT will choose it, but you never know when I'll
ask you directly. However, keep it short. Go on, KT.
KT (07:47):
OK, this next question is from Leslie, and I think
Leslie needs
to have a little talk with the in-laws ready? Loyal
listener for over a year here. My brother-in-law is in
money trouble. He owes $200,000 with a 12% annual interest
in an unconventional loan that can be paid in as
(08:11):
little or as long as possible, and then she wrote, sketchy,
I know.
He's not good with money. When it says unconventional loans.
Something's a little awry. Suze, I originally thought a HELOC
loan was a good idea, but they're at 18% where
he is. I believe he should sell his house, which
(08:33):
is worth about 5 or $600,000. Get out of this
mess once and for all and start fresh. He has
a family. They could rent or live with relatives to
truly save up and get ahead. What do you think?
So she wants, she wants some tips on how to
talk to him.
Suze (08:54):
No, she wants a tip on what he should do.
And then hopefully she'll say, you know what, brother-in-law, you
need to listen to Suze on the Women and Money
podcast and listen to what she thinks you should do.
Leslie and brother-in-law in case he's listening.
All right, I get you owe 200,000.
(09:17):
But the goal is not to just get out of
this debt.
Because if we can't figure out why you got into
this debt to begin with, you're just going to get
into it all over again. Was it a gambling problem?
What did it come from and why did you accumulate
(09:39):
it and why is it at such a high interest rate?
Now Leslie, you say that you think that a HELOC would
have been a good idea, but they're at 18% where
he is. No, they're at 18% because his FICO score
is so low that for anybody to even lend money
on a house that has equity to somebody who is
(10:02):
irresponsible with paying money back, that's when they raise the
interest rate. So another danger sign. So no, I would
not number one, take out a HELOC.
And number two, I would not sell the house to
pay off this debt. Why? Because this debt, even though
(10:24):
it may be sketchy, may be an unsecured debt, which
means he can't pay it. He can't do whatever. They
can't take his house. They can't take something.
Like what kind of debt is this? If you sell
the house, you pay off the debt now they rent
(10:46):
or do whatever they have, you know, 300,000 or whatever
they have in equity in that house. He's going to
blow it before you know it. Then they won't even
have a home to live in. So therefore.
We got to figure out how did he get into
this debt. Why hasn't he been able to pay it off?
What's really going on with him? So rather than giving
(11:09):
him financial advice, you need to start talking with him
in terms of personal advice as to what the hell
is going on with you and why.
'Cause until you figure that out, you cannot solve this.
How many times have I said you can never solve
a financial problem with money, and this man has a
(11:34):
problem with money, period. KT, next question.
KT (11:39):
All right.
So next question...
Suze (11:41):
you weren't expecting that, were you?
KT (11:43):
No, I actually thought you were going to say to
sell the house, but it is true. First of all,
an unconventional loan, hmm. That to me was the big
red flag, unconventional loan. He better fess up and tell
the truth.
Yeah, first to himself. All right, next question is from Bryant,
(12:04):
and Bryant says, Hi, Suze, my wife and I are
both 45 with two kids, nine and five. We have
some questions about getting an estate plan together. I'm currently
working in the New York City school system.
And my wife is a homemaker. Should something happen to us,
how can we set up our kids so that they
(12:25):
can be financially stable? What type of trusts are out
there so that we can provide them with income? Mhm.
So there you go. I think they don't have a
real trust... they need must have documents end of story.
Suze (12:39):
No they don't.
KT (12:39):
Why?
Suze (12:42):
They do, but they need something more than that, KT (Suze makes the wrong answer sound).
KT (12:47):
All right, sorry, I got that quizzy wrong.
Suze (12:49):
Got that quizzy wrong
Listen, Bryant, you're both 45 and you have two minor children,
so it's true that you need to protect them. Now
you do not say in here that you own a home.
It doesn't really say that you own anything, except these kids.
(13:09):
And what you want to know is how do you
protect these kids? So the very first thing that you
should do is get a term life insurance policy on
both you and your wife because even though you may
have some insurance with where you work.
It's probably one year's salary, so it's not enough to
(13:31):
really set them up, and at 45, if you got
a 20 year level term policy, assuming that you are
both healthy, you could get 1 million, 2 million on
each of you or more.
And then if something happened to one of you, the
other would actually be protected. If something happened to both
of you, then your kids would be protected, especially if
(13:56):
you left that policy to a trust. Now this is
where KT is correct.
Ding ding ding ding. You should have, forget about the
kids for a second. You should have for yourselves a
living revocable trust, an advanced directive, a durable power of
attorney for health care, as well as a financial power
(14:16):
of attorney. You really need to look into the must-have docs.
Go to musthavedocs.com
and check them out. They're $99 for $2,500 worth of
state of the art documents that are good in all
50 states. You can update them whenever you want. You
can share them with your other members of the family,
(14:37):
whatever it may be. Anyway, you need to do that
to number one, protect yourselves in case something happens. You
never know what can happen, but really, if you have
that in place.
Then maybe the trust could be the secondary beneficiary on
your retirement accounts. Remember, your spouse is always the primary
(15:00):
beneficiary on your retirement accounts, but the trust could be
the secondary beneficiary where it would say how the kids
are taken care of because kids can't inherit money.
They're minors. So therefore, if you want to make sure
that they're set up financially in case something happens to you,
(15:24):
but somebody is in charge of it until they're adults
and maybe you'll even set it up depending on how
much insurance or whatever you have in there, maybe it
is set up so that they don't get this money
until they're 25, 35, 45 because you need to be
an adult,
(15:44):
in every possible way to handle money. All right, KT.
KT (15:49):
OK, next question is from Robert. Hi, Suze. We're in
retirement with some new income from an apartment we are
renting out. Besides that, our income is Social Security and
our investments. We do have an emergency fund enough for
about 10 months of expenses, but we're concerned about the
possibility of a real
(16:10):
crash and are wondering if we should take 50% of
our retirement investments and put it somewhere able to withstand, ready?
A 1929 or a 2008 level crash, Robert and Liz,
this is not the first time I've received emails like this.
People are getting a little nervous.
Suze (16:32):
So first, Robert and Liz, let me say this about 2008.
That crash happened,
because banks were lending on homes that were under water,
no money down, it was so crooked how money was
being used back then by the financial institutions, and one
(16:55):
bank was selling a loan to another bank. They didn't
care if you qualified. It was no money down. It
was horrific.
And that led to the crash. That's not where we
are right now. Nobody's doing that anymore, so we're solid
on that level, all right, so stop thinking that way.
(17:17):
1929 was a whole other story that's not gonna happen
at this point in time again. So just get that
out of your head. I don't think we're ever going
to have a crash like those crashes. However,
that doesn't mean that the market can't go down significantly
(17:38):
because something else happens and we don't know what that
could be, but that could happen no matter what. So
if you are afraid.
You're concerned for whatever reason. Nothing I say should make
you necessarily feel better because the truth is I don't know.
(18:00):
Do we have another September 11th? Do we have a
cyber attack? What can happen of the unknown that could
really cause everything to freeze up or do whatever? Therefore,
you need to do what you need to do to
make yourself feel safe and sound.
Because the goal of money is for you to be secure,
(18:22):
even though I still think these markets and everything have
a long way to go. Another year or so, especially
in certain areas, I do not think that we are
in an AI bubble by any means, and I could
go on and on, but what's important here is you
have to honor your own thoughts.
(18:44):
You have to listen to your own fear about things
so only you know what's right for you and whatever
decision you make, don't ever spend time thinking about, did
I make the right decision, make the decision you made right, period.
(19:06):
KT, tell everybody where we got that from my last line.
KT (19:10):
So Suze just quoted a Dr. Ellen Langer, who was
a guest on the Mel Robbins podcast. And we were
listening to it. We like to take our infrared saunas
at night and we listen to books or podcasts
or whatever we think we could learn from. It's very
relaxing and we just love the thinking of this doctor.
(19:32):
It's called the Mindful Body. So listen to it if
you can. It's great.
Suze (19:36):
Actually, KT, we learned two really important things from the doctor.
The first one was what I just quoted you, everybody,
which is don't question whether you made the right decision.
Make every decision you make right. We thought that was brilliant.
And the second one that we loved among others, was
(20:01):
rather than adding more years in your life, add more
life to your years.
And KT and I especially at our age right now,
really love that one that one. So that's where that
came from.
KT (20:16):
Yeah, Doctor Langer, that's our favorite, and we live by that.
We add life to our years.
Suze (20:22):
All right, go on.
KT (20:24):
All right, so.
This next question, I currently have $515,000 invested in a
taxable brokerage account all in the Fidelity Total Stock market
index fund. I'm 59 years old, and I think it's
time to cash this position out and put the money
in a safer investment.
(20:45):
See, Suze, people are getting skittish, John said. I spoke
to my accountant. He advised me, ready? To cash half
of the fund out this December and the balance right
after the first of January. My question is, do you
have any suggestions on safer investments other than equities?
(21:06):
And there you go. So John gave you a summary
of what he's got, but I think again people are nervous, Suze.
A lot of um jittery people out there.
Suze (21:18):
Well, John, I have to tell you.
I don't think the advice that you got from your
accountant is the best advice at all. And here is
the reason why, KT just gave me your email.
The $515,000 everybody, listen to me closely.
The $515,000 that John has invested is in a taxable
(21:44):
brokerage account in the total stock market index. OK. Over
the past year, two or three that has gone up considerably.
Even if he sells half this year and half next year,
he's gonna owe taxes on that money. That means his
(22:07):
taxes that he paid is no longer available for him
to compound or invest. It's out because he's paid taxes
on it.
Now he's reinvesting that money in something that's also going
to be taxable. What could he do instead? John, you
have in your 401k, not a Roth 401k, in your
(22:33):
traditional 401k, $450,000.
If it were me advising you, I would have told you, listen,
if you want to become more conservative, you have to
look at your money as a whole.
Where can you take money out that you don't have
(22:55):
to pay taxes on?
And in the future it would even help you more
if it didn't grow that much, and that would be
your 401k because when you go to take money out
of your 401k, number one, it's going to be ordinary
income taxed. Next you're going to owe RMDs on that money. Therefore,
(23:19):
if I were you, I would come out of the
market with the 401k.
If you're going to quit your job, OK, or whatever,
you can then do an IRA roll over with that money,
no taxes. Put it in treasuries, do whatever you want
with it to keep it safe and sound, so that
it's good, but guess what? You never pay taxes on it.
(23:42):
And there you go, you accomplished the diversification but didn't
have to pay taxes and therefore you could just let
the 515,000 in the total stock market index ride because
it's going to go up most likely. It's a great
place to be diversified. You're doing exactly what you should do.
(24:04):
The rest of your money, the Roth IRA, fabulous.
You don't have to worry about taxes there, but if
it were me, I would use the money in the
401k plan and not do what your accountant told you
to do. All right.
KT (24:20):
So this next question is from Orhan. It's an interesting name,
isn't it? Orhan.
Been a listener for years and thank you both for
all the knowledge you give us. I turned 73 on
the last day of 2026, December 31st. Wow, that's a new...
Suze (24:39):
This is going to be your
pop quizzy.
KT (24:41):
All right. Is my RMD calculated on the total traditional
IRA's value as of December 31, 2025 and
can I or must I access my RMD throughout the
entire 2026 year even though I don't turn 73 until
(25:05):
the last day of the year? I don't know what
to take out. Two RMDs in 2027. Thank you.
Suze (25:14):
Pop quizzy.
KT (25:17):
All right, so, he's turning 73 on the last day of December.
I think he only needs to take one RMD.
Suze (25:25):
But he's not turning 73 to the last day of 2026.
Can he? The first question, can he before he turns
73 anytime in that year,
can he take out his RMD before he turns 73
(25:47):
to satisfy the RMD for 2026? Yes or no?
KT (25:55):
Ohh.
All right, KT, this is gonna be a guess. I'm guessing.
I think that he had, he can pass. I think
you get a little grace period and he can do
it in 27.
Suze (26:10):
If he does it in '27, however, because he turned 73
in '26...
KT (26:17):
On December 31st on the
last day.
Suze (26:19):
If he takes it out in '27, he's gonna have
to take out two,
in '27, one for 26 and one for '27. So
now he subjected himself to two RMDs in 2027. Is
that his only alternative? Yes or no?
KT (26:41):
I don't think it's his only alternative.
Suze (26:43):
So what else could he do? He has to take
two out.
KT (26:46):
Yeah,
Suze (26:47):
So... (Suze makes the wrong answer sound)
KT (26:49):
I think, no, I said you get a grace period.
Suze (26:51):
You don't get a grace period.
You don't?
No.
KT (26:55):
So, so what did I do wrong?
Suze (26:57):
You don't know the rules, and I'm gonna tell you
the rules. That's all you did wrong, my love. So
listen to me, everybody.
Your RMDs are based on the value of your account
on December 31st, the year before
(27:17):
you turn 73, so in this case it will be
based on December 31st, 2025. Since it's based on that
amount and that's not going to change because that is
the amount he is allowed to take out an RMD
any time during 2026, even though when he takes it out,
(27:44):
he may not be 73 yet, but because he's going
to be 73 in 2026, the last day, he can
take one RMD out in 2026.
And another one then when he wants to in 2027
and that one will be based on the ending value
(28:07):
of his account on December 31, 2026. That's how he
would do it just so you know, you never want
to subject yourself, KT, to two RMDs. You do not
listen closely to me, KT, when you take out a
required minimum distribution.
You have to take it out by April 1st after
(28:32):
the year you turn 73, OK? If you do that.
Doesn't mean that you're postponing the next one, you'll have
to take out two that year, the one you should
have taken out for '26 that you postponed till '27.
And the one that you should have taken out as
well in '27, so you never ever want to postpone.
(28:56):
Unless you know you're going to be in a really 0%
tax bracket, you want to take your RMD in the
year you turn RMD age. And for those of you
born 1960 or later, you're not going to have to
do it till you're 75.
KT (29:17):
All right, that is a wrap.
Suze (29:19):
So we hope you enjoyed
our Ask KT and Suze, anything vacation edition.
KT (29:27):
Let's go eat some pasta.
Suze (29:29):
I'm sure we will be at this point in time, right?
But anyway, there's only one thing that we want you
to remember when it comes to your.
Money and what is that KT?
KT (29:40):
People first, then money, then things.
Suze (29:45):
Now you stay safe and go to youtube.com/ Suze Orman and subscribe.
See you soon. Bye-bye.
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