Episode Transcript
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Suze (00:08):
October 9, 2025. Welcome everybody to the Women and Money podcast,
as well as everybody smart enough to listen. This is...
KT (00:18):
Ask Suze and KT anything.
Suze (00:21):
And if you write in to ask Suze podcast at
gmail.com and KT chooses it, oh, we will answer it
on this podcast. 9 days, KT 9 days before we leave.
KT (00:34):
We go to Italy, but then we also have Halloween.
Suze (00:38):
I don't care about Halloween. We start with this Halloween stuff.
KT (00:42):
I'm gonna do the favorite candy...
Suze (00:44):
No, you did that last year. Your age is showing because
you're wanting to repeat things we've already done. So, but
in 9 days...
KT (01:01):
Viva Italiano. (Then KT sings a little Dean Martin).
Suze (01:01):
Is that Italian I guess that's Italian, huh? All right,
go on.
KT (01:04):
I'm Italian.
Suze (01:05):
What do you have for me?
KT (01:07):
Now wait, before we start questions, I want to tell
everyone to check out your YouTube channel. Suze has an
official YouTube channel, and it's YouTube.com/ Suze Orman. Why do
I want you to go there? She's starting to post
these really cool live segments and little pieces of information.
(01:28):
She wants you to know they're very current.
They're great and along with that you get to see
some Suze Orman show and all kinds of things. Maybe
I'll come on and wait, wait, it's free.
Suze (01:40):
They know YouTube is free, KT.
KT (01:43):
But when you say subscribe, some people might think that they have to pay.
Suze (01:46):
They understand subscribe when it comes to YouTube. All right, everybody,
you heard the boss. Now KT, let's go to questions.
KT (01:55):
OK, this is from Rachel.
Now Rachel um is sending this in. I like this
a lot and I like Rachel that who you are.
So let me share this with all of you.
Suze (02:05):
What, have you met her?
KT (02:06):
No, but listen, I've read...
Suze (02:08):
Do you have a correspondence with her.
KT (02:10):
No, but I'd like to know just to like her.
Suze (02:12):
You would like to know her?
KT (02:13):
Yeah. My name is Rachel. I'm 34 years old, the
oldest child of a Vietnamese immigrants, now an emergency and
intensive care physician. Congratulations, Rachel.
She said, I'm married to a fellow physician and a
new mom of a healthy and happy six month old boy.
(02:33):
That's great.
Suze (02:35):
That's why you want to get to know her?
KT (02:37):
No, no, no, I just like this, um, email. So
she said, though I consider myself a successful and very
blessed person, my parents were unable to teach me about
personal finance. I have listened to your podcast for the
past 3 years and learned immensely from it. You have
filled this void in my understanding
and empowered me to jumpstart securing my own family's financial future.
Suze (03:01):
Now before you get to her question, because there has
to be a question in there, right?
KT (03:05):
Yes, it's up here.
Suze (03:07):
But did you mainly like this because of everything you
just read to me?
KT (03:12):
I liked it because she's the oldest child of Vietnamese immigrants.
And I know many Vietnamese immigrants and I really have...
Suze (03:22):
So it touched your heart.
KT (03:22):
It touched my heart. Anyone from Asia touches my heart,
quite frankly.
Suze (03:28):
All right, that's because KT spent 20 years or more living in
and working in Asia.
KT (03:34):
Love, love the Asian society.
She said, I want to jump start securing my family's
financial future and allowing me to be able to give
back to my parents. There you go, Suze, for that,
she said, I am eternally grateful. So here's the question.
My husband currently makes $80,000. He receives a match in
(03:58):
his traditional 403B.
This year we maxed out his traditional 403B and he
received $2,000 in employer contributions. Next July he will have
the option for a Roth 403B though without matching.
So for 2026, does it make sense to not contribute
(04:21):
to a traditional 403B with matching and instead max out
the Roth 403B for tax-free growth, though it would imply
leaving money on the table. That's her question.
Suze (04:37):
That took forever to get to her question. That's besides
the point, but no,
KT (04:42):
But I wanted to share Rachel's, uh, story.
Suze (04:45):
Because we all do, everybody, we have a story and
the Women and Money podcast is made up of thousands
and thousands of stories.
Stories of people who were living in their car, got
divorced and didn't have a penny, came from different countries
and ended up here. Never knew anything about money. Nobody
(05:08):
could teach them about money. Their parents had no money.
All kinds of stories. But the great thing in my opinion, KT,
about the Women and Money podcast, those who listen,
their stories end up exactly where I know they would
want to be financially speaking, and that is the reason
(05:30):
we keep doing this even though we don't have to
be doing this. We do this because we love it
and we want to, and we want you to have
the best financial advice around. Rachel, yhy can't you have
your cake and eat it too?
You obviously said that your husband maxed out on his
(05:52):
traditional 403B but only got $2,000. What that says to
you is they only match up to a certain point
of his pay.
After that point, if I were you, I would stop
contributing to the traditional 403B. You already got your match there,
(06:14):
and then I would change to the Roth 403B. And
later on you just transfer what's in your traditional 403B
to your Roth 403B. Then you have your match.
And you get to enjoy it too.
KT (06:33):
That, that's, I like the cake better. All right. Next
question is from Susan. She said, Hi, Suze. Husband and
I both retired. We're in our 70s, and live on
Social Security, his pension, and rent from three rental houses.
I'm about to sell one of those rentals that I've
(06:53):
had for 40 years. Proceeds from that sale after taxes
will be about $300,000.
Now here's the big question. How can I invest this
for monthly income to make up for the loss of
the rental income which after property taxes, insurance, and other expenses,
(07:16):
netted out to be about $1,100 a month? Is that possible?
Suze (07:24):
So, KT. You know how I often say I scroll
through these, and every once in a while one catches
my eye.
KT (07:30):
This one caught your eye.
Suze (07:31):
This one caught my both my eyes.
KT (07:33):
OK, that means that she answered her already.
Suze (07:36):
I did. I answered Susan directly.
KT (07:39):
Would you tell her?
Suze (07:40):
Right, so here's what it is, and I just answered
her because her and her husband are both retired and
they live on Social Security, his pension.
Which obviously maybe when he dies will go away for her,
don't know, and rent from their three rental houses and
they're about to sell one that they've had for 40
(08:01):
years so that touched my heart because this obviously is
a really big move for Susan, however, everybody, when it
comes to real estate, even though I know Susan said,
that she's going to get about $300,000 and it needs
to replace $1,100 a month from her rental. The truth is,
(08:24):
in my opinion, you don't know for sure what you
net when you have a rental.
Because if all of a sudden something happens and you
need new windows, you need a brand new roof, you
need a new refrigerator, all of a sudden, and that
could be $10,000 $20,000, or whatever, maybe for that year
(08:49):
you aren't netting $13,500 a year. It is possible you
are actually in deficit for that amount of time. So
when it comes to rental income,
you can't always just say this is what we net...always
because it's not always, always so there's many things that
(09:12):
I told Susan, KT that she could do obviously if
she wanted to she could do a mix of treasuries,
municipal bonds and CDs, and she could probably get in
an average of about 4 to 5% range on that.
Which would net her $13,500 a year or about $1,125
(09:33):
a month, but then they're more long term and that's it.
At this point I would like for Susan to also
not to just have this income that she knows, but
also have growth on her money as well if she
would be willing to take a little bit less income.
(09:53):
It would be very possible.
For her to put all $300,000 in to utilities, REITs, ETFs,
all kinds of things, and average 3 to 4% but
also probably get growth, especially in the utility area, everybody,
but that would only average her about $10,500 a year.
(10:17):
That's about $875 a month. Good dividend paying stocks.
That would give her the potential for growth or even ETFs.
That would be the way I would go if I
were her. But Susan, if you just want to replace
what you have, you don't care about growth, you don't
care about inflation or anything, then just lock in all
(10:40):
300,000 at about 4.5% in different quality bonds, treasuries, and
things like that, right? She could also do an immediate annuity.
But not my favorite because it might be all of
a sudden she dies, then what happens to that income
for the husband, but that could easily give her $1,400
(11:02):
to $1,600 a month, right now.
But I don't think it would be a joint and
survivor annuity.
KT (11:08):
So, so it is possible that when she makes the sale,
she can replace that with invested income.
Suze (11:15):
Yes, and she could do a different thing. She could
put 40%, let's say, in bonds and CDs, 40% in
dividend paying stocks.
KT (11:21):
You know what I would do?
Suze (11:22):
What?
KT (11:22):
I'd sell all three of those houses. She had this
one for 40 years and your point about maintenance and
the what ifs.
Get rid of all three and invest all that money.
Suze (11:33):
She has to worry a little bit, I'm sure, about
capital gains. So she knows what she's doing. That's not
the point. But the bottom line is don't be afraid
to sell real estate. All of you, thinking, how are
you going to replace your rental income. There are a
million ways to do so. All right, KT.
KT (11:52):
OK, next question is from Erica. I call this "Niño."
Suze (11:57):
Like our Colo, Niño... so wait, I just have to say...
KT (12:02):
We have to tell them the backstory of Nino.
Suze (12:05):
So KT kind of treats Colo like it's her favorite son.
And of course it is because we don't have a son. So,
so we're sitting there at the breakfast table, whatever it
may be, and all of a sudden he comes in
and she says, Oh please don't go on the ladder
today and fix this. I'm afraid maybe you'll fall. Or no, Colo,
(12:26):
don't do this. It's too hot outside, and I do
this thing. I go, Oh well, Niño, Niño, it's your
favorite little son, Niño even though it's...
KT (12:36):
So let me, let me read this one ready. So
this is Erica. I call her email "Niño."
My dearest Suze and Katy, Suze, I've followed your guidance
for most of my life, and I truly credit my
strong financial position to your sound advice over the years.
Listening to you and KT feels like spending time with
(12:58):
sisters I never had.
Comforting, wise, and always encouraging.
Suze (13:03):
I'm not sure our sisters would be thinking that right now,
but anyway, that's besides the point. Go on.
KT (13:09):
I am a 20 year navy veteran and just retired
after an additional 20 years. Now that I'm entering this
next chapter, I'm thinking ahead, especially about my son's future.
When I got to that part, I said, Nino, I
have half a million dollars in cash, and I would
(13:30):
like to create a stream of income for him. He's
40 years old. I know how you feel about annuities,
but I am struggling to find another way to ensure
he receives a dependable monthly check when he turns 60.
Do you have any suggestions or thoughts on how I
(13:51):
might achieve this goal in a better or more efficient way?
I'm not going to comment. Go ahead, Suze. You say it, Niño.
Suze (14:02):
No, but Erica, here's the thing I just want to say.
What you didn't say is how are you doing financially.
You didn't say that upon my death,
I would like to leave him 500,000 if I still
have it, cause will you or will you not? What
(14:25):
if all of a sudden you have to be in
a nursing home or an adult living facility or you get,
who knows what can happen, or you want to hire
somebody to come in to take care of you? Who knows?
So assuming that you mean after you have died and
don't you dare do this while you are still alive.
(14:48):
Do you hear me?
KT (14:49):
He's only 40, right?
Suze (14:51):
Yes, he's only 40, which means she's really not that
old either, and she could easily live another 20 or
30 years, which means you are not to give him
a penny at this point in time. It will not
help him. It will hurt him.
And therefore you just need to set up a living
(15:14):
revocable trust where somebody is a trustee and that he
only gets X dollars per month until the money's gone, just
that simple. But please don't baby him at 40. I
know I'm going over today, but there's really something that
(15:34):
struck me that I want to say to all of you.
And this has happened in many cases of where somebody
I'll never forget on the Suze Orman show,
this elderly woman now in her 80s, which is only
five years away from me, but that's besides the point. OK,
but no, but she was older, she was sick, she
(15:55):
had cancer. Her 58 year old son still lived with her.
To support him, she took out all the equity in
her home. She had no money at all to leave him.
And he lived with her and still smokes even though
she has lung cancer, and her question to me was
(16:19):
what can I do to make sure that he's OK.
And my answer to her was "nothing."
You shouldn't have ever babied him the way that you did,
cause there's no equity in the house now. He can't
afford to pay the mortgage that you still have, 'cause
you took it all out. You don't have any money
(16:40):
to give him, so at the age of 60 or so,
he's going to be on the streets.
And there's nothing that I can do for him or
you at this point in time, so you better tell him.
He better figure that out now, cause otherwise he's going
to be in big trouble. Now, Erica, I'm not saying
(17:04):
that's your son by any means, but everybody listening to
me right now, don't baby your children. Don't make it
easier on them than they even want.
Let them grow up. Let them be responsible human beings.
Let them generate their own money. Let them be independent
(17:27):
and then give them a surprise maybe upon your death.
But don't do it now. Erica, take what I just
said to heart, all right, KT.
KT (17:37):
OK, next question, Suze is from Elena.
I'm 39, married, and a mom to a two year old,
and I'd love your advice on whether it makes sense
for us to pay off our home early. Here's where
we stand. We have a mortgage for $415,000. It's a
30 year fixed at 3% scheduled to end 2051.
(18:02):
With child care costs...
Suze (18:04):
Won't be our problem in 2051.
KT (18:07):
With child care costs, we don't have much extra cash,
but we could put an extra 100 or 200 a
month toward the principal, which would shorten the loan by
two to three years. I'll admit some of this is emotional.
I have friends who paid off their homes early, and
it makes me second guess our path. Now there's quite
(18:30):
a bit of background.
Details here on...
Suze (18:33):
KT, I just have to ask this, right, because usually
when they're asking me it's because somebody else is in
the picture that isn't agreeing with them or she would
just be doing it. Anywhere in that email because it's long.
Does it say that her spouse doesn't agree with her?
KT (18:51):
Funny that you feel that because there is a challenge here,
she said.
My husband would rather put any extra money into the
stock market. I see his point. The returns can outpace
our 3% mortgage, but I still struggle with carrying debt
for so long.
Suze (19:10):
I knew it. I knew it. Well, I felt it
because otherwise why would Elena be asking me if that's
what she wanted to do? She would just do it.
So I've done this long enough, everybody, that when somebody's
asking me
a very simple question because they know what they want
to do. Somebody doesn't want them to do what they
(19:31):
want to do, just that simple. That happens between me
and KT all the time. Anyway, here's the thing, Elena.
You're only 39. You say that there isn't really a
whole lot more than a few $100 a month extra
and that it's going to be many, many years, 2051
(19:54):
before the house is paid off. I doubt highly that
here you are, you're only 39. You have a two
year old. I doubt highly that may be your only child.
What if all of a sudden you have another child
and then another child? You could.
You really could, and that house is too small now
(20:14):
or doesn't meet your needs, and you want to move.
The house will continue to appreciate in value regardless of
the mortgage that you have on it.
So it's not about the 3% in the mortgage that
you want to get rid of, which is how you're
gonna make money. You make money in a home by
(20:36):
it appreciating over the years, and that will happen. Therefore,
if I were you and you don't have a lot
of money to really make a difference here.
I would listen to your husband, and I wouldn't be
doing it, and I would be investing it and making
sure that you have like a Roth IRA or whatever
(20:58):
it may be and start doing it that way, where
you increase your worth not only in your home but
in your retirement and forget about owning it outright, at this age.
KT (21:09):
OK, Suze, this next email is right up your alley.
You ready? This is from Jewel.
Suze (21:17):
Here's what that means.
KT (21:20):
Get ready for a slapdown.
Suze (21:21):
It's gonna aggravate me.
KT (21:23):
It is get ready for a slapdown.
Suze (21:25):
She loves when I get aggravated.
KT (21:28):
So this is from Jewel, she said, I'm 94 years old and
I sold my house. I downsized and live independently in
a small townhouse. I don't need the proceeds but would
like to know where to invest it for safety and growth.
She's 94.
And then this is really sweet. She says my financial
(21:50):
adviser would like me to put the proceeds approximately $1.4 million.
Suze (21:57):
Oh wait, wait, let me guess.
KT (21:58):
Wait in an S&P indexed annuity. I don't feel comfortable
without your advice. The annuity protects 90%
of the principal and gives me 80% of the S&P
gain over a six year period. So on her 100th birthday...
Suze (22:20):
But you know what she didn't say there's that and
how much 1.4 million,
in one annuity, which you would never do, people, I'll
tell you why in a second, right, would get in commission.
KT (22:35):
How much?
Suze (22:35):
I'm sure...
KT (22:36):
Just guess.
Suze (22:38):
70,000 or more.
KT (22:40):
Wow in one piece of paper.
Suze (22:43):
One piece of paper. What's interesting, Jewel, is you yourself
said I don't feel comfortable without your advice.
Now let's pretend my advice wasn't here.
The truth is you don't feel comfortable. Full stop.
(23:04):
Doesn't matter about my advice. What if I told you,
go ahead and do it, but maybe you still felt uncomfortable.
It doesn't matter what I say. It doesn't matter what
I tell you to do. The only thing that matters
is you feel comfortable. You feel secure.
(23:28):
Now in this particular instance, you run, don't walk away
from this person. First of all, you would never put
more than 250, maybe 300,000 in one annuity. And why
is that? Because they're only protected... same thing with FDIC
insurance and everything in a bank.
(23:50):
Life insurance companies, annuity companies work the same way. So
if anything happened to that company, oh, you would have
approximately $1.1 million at risk. That's the first thing. Second,
if you want to invest this money in the Standard
and Poor's or an ETF like VOO, then go ahead
(24:13):
and do that. Why? Because as that money grows, what
would happen is, later on if you wanted to take
it out, capital gains.
But you die and really at 94 you have to
be thinking about that, and it passes down to your beneficiaries.
(24:34):
They would get a step up in cost basis on
that money, so there would be no income tax to them.
Your financial adviser should absolutely have said, do you have beneficiaries?
Do you care about that? Do you want to leave
money somewhere other than a nonprofit?
And if the answer to that is yes, then he
(24:56):
never would suggest such an investment, because the Standard and
Poor's will probably go up. You would probably make money
on this. However, upon your death, let's say you put
in 1.4 million, it's now worth 1.7 million. It's now
worth 2 million.
Upon your death your kids are going to owe ordinary
(25:19):
income taxes on $600,000. Are you crazy? So no, you
are not to do this on any level.
KT (25:29):
Run, Jewel, run, run, run, run.
Suze (25:33):
Run, run, run.
KT (25:35):
All right, Suze, this is my last email and one
that I really think is going to set you off
yet again, but I want you to set everyone straight here.
This is from Mary. She said, Suze and KT. 10
years ago my husband, a financial adviser, told me that our finances were
(25:55):
none of my business.
Suze (25:57):
Please just pray. Let me pray that she divorced that idiot.
KT (26:02):
Ready? After 30 years of marriage, he left me to
start a new life with a woman in his office. Blindsided,
I was in a fog until COVID when I started
listening to your podcast and reading your books. Good for you, Mary.
And then she said, you literally changed the course of
(26:25):
my life, and I am eternally grateful.
That's the theme actually of this week's podcast Eternally grateful.
Suze (26:33):
KT, that should be the thing that'll be the title,
the Women and Money podcast on our website. It will
make you eternally grateful you listened. I love that.
KT (26:44):
So we'll we'll make that the title of this one.
I've scrimped and saved and now I feel secure in
my future, but one thing does frighten me. How do
you know your revocable trust is valid?
Ready? Now, everyone listened to this. Mary remember had a
husband who told her finances were none of her business.
(27:07):
So Mary's not naive. She just didn't know. So listen
to this question. A few years ago I funded my
revocable trust. She's 65, by the way. I funded my
revocable trust at my bank and Fidelity
and I was confident that I was all set.
Suze (27:26):
Danger, danger.
KT (27:27):
Yesterday I went with my 92-year-old mom to fund hers.
While both institutions said it would be easier not to
have a revocable trust, and she wrote, I know better
thank you. Why? Because Mary's been listening to Suze. The
bank said I would need an EIN number. Let's tell
(27:53):
everyone an EIN just, you know, it's an employee identification number.
She said, I need an EIN number to fund my
mother's trust.
I had never heard of this. Does that mean that
my trust is not valid? How would I know? We
went out to the car and we immediately went to
(28:13):
IRS.gov to get an EIN number for both of us,
brought them back into the bank. But Suze, is this correct,
or I am now making my trust invalid? I am
so confused.
So this, this is important. I want you to really
explain to everyone what Mary needs to do.
Suze (28:36):
I don't know, Mary, if you made it, that the
bank would be the successor trustee upon your mother's death
and run the money for her, all right, so if
you did, some banks then,
Will insist on an EIN for their own internal systems
(28:58):
even though the IRS does not require it. So I
don't know if that's why they wanted you to do so.
Either way, it has not made it more complicated. So
you have to know that a revocable trust is what's
known as a grantor trust.
(29:18):
And the IRS treats it as if that means no
separate tax return, so no EIN is required. The only
thing that is required is your Social Security number. That's it,
which is the tax ID for the trust, just that simple. Again,
(29:39):
when an EIN is required.
After the grantor dies, that would be your mother. The
trust becomes irrevocable, so I don't know if you wanted
that as well.
So the bank's request for your mother's trust wasn't about validity,
my love. It was simply about their policy and by
(30:03):
getting an EIN, you did not invalidate anything. You just
gave the bank a number they're more comfortable with, just
that simple. But everybody in most cases...
We have a trust. We each have our own trust,
a substantial trust, but we don't have an EIN, just saying,
(30:24):
all right, KT.
That brings us to the end of this wonderful, fabulous,
KT (30:31):
Eternally grateful podcast.
Suze (30:33):
I was waiting for
you to say that I was
setting her up and she did it.
All right,
everybody, until next week.
KT (30:41):
You just remember three things, everyone people first, then money,
then things, and..
You stay safe, healthy, and secure. See you soon. Bye