December 4, 2025 • 29 mins
On this edition of Ask KT & Suze Anything, Suze answers your questions about when to take Social Security, annuities, retirement accounts at your job and so much more!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Suze (00:08):
December 4th, 2025. Welcome everybody to the Women and Money podcast,
and everybody's smart enough to listen, right, KT?
KT (00:17):
Yes ma'am.
People write me and they say they love when I
call you Miss Travis. Miss Travis.
She calls me that when she's either mad or about
to correct me.
Suze (00:30):
Miss Travis, yes, you know what tomorrow is?
KT (00:34):
Tomorrow is Suze's half birthday. I don't know if all
of you celebrate a half birthday. I never did. I
don't even know what mine is, but Suze loves December 5th.
Tomorrow her half birthday. How are you gonna celebrate it?
Suze (00:49):
I'll
be 74 and a half, tomorrow. I'll celebrate it like I do every year.
My friend from grammar school, Leslie Lynn's full birthday is
on December
KT (01:01):
5th...
Suze (01:02):
So I write Leslie and I say happy birthday. She
writes me and says Happy half birthday, and then we
are complete.
KT (01:10):
rAll ight, all right, I can't wait to hear from
her too. I love that woman. Don't you though?
Yeah, she's one of Suze's...
And you've been, you've known each other since how old?
Suze (01:19):
Oh, early in grammar school, early, like, like forever,
KT (01:25):
She's a forever friend. OK, I'm starting with a thank you, and
this is post Thanksgiving, but it's a...
Suze (01:32):
Oh, wait a minute, I'm not done.
KT (01:34):
Oh, OK.
Suze (01:35):
So you know we didn't do a podcast on Sunday
and all, but however, how was your Thanksgiving?
KT (01:42):
Delicious. Suze and Colo yet once again made the best
turkey stuffing or dressing, as many of you call it,
we ever had. But this year we had Thanksgiving with
my sister Lynn and lots of people and kids and...
Suze (02:00):
And bottom line, fabulous, fabulous, fabulous and all. And now
we are back on the island. All right, KT.
KT (02:08):
OK, this is a post Thanksgiving thank you.
This is from Vicky, she said. Suze, I waited until
I was 70 to take my Social Security and received
an extra 30.7%, which was added to my 100%. The
wait felt like forever, but I did it, and I
(02:29):
am extremely happy.
I tried to talk my friends at work into this
about Social Security, and they thought different than me. They
did not want to wait, and most of my coworkers
took theirs at age 62.
Suze (02:44):
Such a mistake.
KT (02:44):
I know, and she said, Suze, thank you so much,
From Vicky. No questions here. She just wants to thank you.
Suze (02:51):
Well, she wants to...
She listened to you.
She wants to thank me. However, I have a feeling
Vicky also wants me to say to everybody, since her
coworkers didn't listen to her, the biggest mistake in most cases,
in my opinion, when it comes to Social Security, is
if you take it at 62.
(03:12):
How many emails do I get saying, why did I
take it at 62? I'm now 92. I never thought
I would live this long. It doesn't cover anything. Just
biggest mistake, Suze. So we're all living longer.
We all will need more and more money cause things
get more and more expensive. If you're gonna take Social Security,
(03:35):
at minimum, wait till your full retirement age. Currently for
most of you, 67. All right, KT.
KT (03:43):
All right, this is from Patricia.
She said my 92 year old organized mom invited me
to go over and look through her documents, financial accounts, passwords,
and the works. She said her documents include a will,
healthcare proxy, power of attorney, and living will.
(04:05):
And then she said, I bought the must-have documents thinking
we could update her will as it's dated 1996 and
my last name has also changed since then. I see
that I must create a trust. My mom only has
$20,000 in a high yield savings account which she added
(04:26):
my name to. She owns a co op worth $250,000
and a car worth $18,000.
So she pulls at least 1,000 out of her savings
each month. Should I hire an attorney to create her will,
or does it make sense to create a trust? So Suze,
(04:46):
tell Patricia what she really needs to do.
Suze (04:48):
So here's the thing. First, let me clear up everything
about the must-have docs. It used to be when the
must-have docs first came out over 25 years ago.
You first had to create a will, then you had
to create a trust, then you had to create the
durable power of attorney for health care. You had to
(05:10):
do each one individually, but you then had to do what?
reenter the information to each and every one of them.
So as time went on, people were also just doing
the will. They weren't doing the trust. They were doing
what they wanted, but not necessarily what they needed.
(05:31):
So in the end, the must-have documents, once you fill
in the information, it automatically populates all of the must-have
documents for you, so you don't have to do one
after the other after the other. Now, Patricia, just fill
it out. No big deal. You don't want to do
(05:51):
a living revocable trust. Fine, don't.
But there is where you'll have your will. It will
create one for you, so you don't need to hire,
in my opinion, an attorney to do so. However...
I just wanna make you aware of that mama has
a co-op. Now, listen, not all co-ops allow their stock certificates,
(06:15):
cause when you own a co-op, you have a stock
certificate to be transferred into the name of a trust.
So mama might not even be able to do it.
You need to find that out. However, if mama dies,
that co-op is going to go into probate.
And you are going to have to file filing fees
(06:36):
could be $200 to $1,000. Probate fees could be $3,000
10,000 dollars, whatever it may be. So there will be
costs involved there. You just need to be aware of
the downside if mama dies without a revocable trust, just
that simple. However,
(06:57):
KT, I wrote Patricia already and I told her all
this because what I said to her was...
The problem isn't about should you have a trust, not
have a trust, a will. The problem is the money.
She has $20,000 in an account. She's pulling out $1,000
a month to meet her expenses. That means in another
(07:20):
year and a half or so it's gone. Then what?
Just something to think about. All right.
KT (07:26):
All right.
Suze (07:26):
And by the way, for those of you, you just
heard me, I answered somebody directly. I've answered so many
of you directly, it's not even funny.
You can always write in your question to ask Suze podcast@gmail.com.
That's S U Z E.
And ask a question. Keep it short, because if they're long,
we're just gonna skip over them truthfully. Although once in
(07:48):
a while I answer them.
KT (07:49):
Not only that, can you please tell everyone listening if
they need the must-have documents where to get them?
Suze (07:55):
Oh, I forgot about that. So yes, for those of
you who want the must-have documents, and you should all
want them because you need them, a will, a living
revocable trust, an advanced directive, durable power of attorney for
health care, and financial power of attorney.
$2,500 worth of state of the art documents currently $99
good in all 50 states. Just go to must-havedocs.com and
(08:19):
you can get them there. And of course when you
get them there, once you have them, you can share
them with every one of your family members. You give
them the activation code they create it for themselves, so
it's like a $2,500 gift to every single person you
give it to. All right.
KT (08:35):
Yeah, great year-end gift.
So, Sandra wrote and she said, Suze, I'm retired age
69 and a half. She is a half birthday girl too.
She said, I have a Charles Schwab account in the
amount of $107,000 and my husband has the same in
his own name.
Suze, we were advised to put it into individual annuities
(08:58):
and the remainder into individual life insurance IRA policies with
the goal to transfer taxable money over 5 years into
non-taxable income for a later date. I mean, they're 69
and a half, right?
Suze (09:14):
It's just stupid.
KT (09:15):
So we have a home valued at $650,000 with a
$230,000 mortgage.
My husband will retire in April and will receive a
healthy pension. What would be your advice in regards to
the annuities and life insurance policies? Wait, look at her face.
Suze (09:36):
Well, because I answered this with one simple thing, that
emoji with a thumbs down. That's how I answered Sandra. Sandra,
listen to me.
Let's say you were lucky enough to come to me directly.
KT (09:50):
You should see your face everybody.
Go ahead. I'm sorry.
Suze (09:54):
We should be YouTubing this.
KT (09:55):
I know.
Suze (09:56):
I wish you could see. Like I'm up on my,
my arms on my face.
KT (10:00):
It's like so ready to like blast it. All right, go ahead.
Suze (10:03):
Right, but I'm like holding myself up right on the
arms of my chair, leaning into the mic with both
hands like ready to choke, right? So let's just say
you were lucky enough.
To be sitting across the desk from me and you
told me that here you are 6915. I imagine that
(10:25):
your husband is pretty near that age as well somewhere
and that you have a home worth $650,000 but you
still have a $238,000 mortgage.
And you had $214,000 among you. I don't know if
it's in an IRA. I'm not exactly sure where it is.
(10:49):
And you said, what should we do, Suze? And you
have a pension. You have your fine. I would look
at everything. I'd go, I'll tell you what I would
do if I were you. If you could, that money's
in a money market fund, for instance.
I would take that money and pay off the mortgage
on my home because why would I do that? Your
mortgage goes away, therefore, your largest monthly expense goes away.
(11:14):
You own your home outright. You have nothing to worry
about at that moment in time. Nothing will make.
You feel more secure than owning your own home outright,
but no, this advisor wants you to put it in
an annuity and possibly a life insurance policy just so
in five years he can do it again or she
can do it again and get another commission so you
(11:36):
can have non-taxable income. Are you crazy? Are you crazy?
I would actually, if I had an advisor that advised
me to do that.
At this point in your life, I would switch my
account to another advisor. So, that's number one. Number two,
I want you to seriously think about what I said
(11:58):
to you. How would it make you feel?
If you owned your home outright, now again, I don't
know where this money is. I don't know if there's
capital gains tax involved. You have to check all of
that obviously with an accountant and everything like that, but
I would make it your number one goal more than
anything else to pay off your mortgage as soon as
(12:22):
you can. Go on, KT.
KT (12:23):
OK, next question.
Suze (12:25):
Wait, I have a question.
No, I'm very serious. Why are we getting hundreds of
emails from people who have accounts? I'm very serious at
Fidelity and Charles Schwab, and the number one piece of
advice they are all being given is to get an annuity,
(12:45):
get an annuity, get an annuity.
For all of you, if you are in that situation,
you must ask your financial advisor. If I get an annuity,
how much commission are you going to make?
You really have to understand how annuities work, everybody. I
(13:05):
just don't get it. There are so many better things
that you could probably be doing with your money. Sometimes
it makes sense, but most of the times it does not,
especially if it's money in a retirement account. Are you
kidding me? Go on.
KT (13:20):
My next question is from Amy. She said, I switched
jobs back in 2018 and never moved my 401k from
my previous employer since it was doing so well. I
also have a Roth 401k with my current employer. I
like the idea of not paying taxes on my 401k
(13:41):
in retirement. Would you recommend converting to a Roth now?
Suze (13:46):
So I imagine, Amy, you're asking me, do I recommend
you converting to the Roth 401k at your new employer's
rather than just a Roth? And here's two things I
want you to understand. You would be far better off
right now converting little by little to a Roth IRA.
(14:08):
Rather than the Roth 401k at your new employer. Number one,
there are more investment options in a Roth IRA than
a Roth 401k. A Roth 401k when you absolutely retire
from there and then take it and do a rollover
to a Roth IRA.
(14:29):
The time clock of the Roth 401k does not come
with you. You start the time clock all over again.
Remember that five-year rule. If you were to convert right
now to a Roth IRA, the time clock starts now.
So later on, when you have your Roth 401k that
you are continuing to contribute to, and then you transfer
(14:53):
that to a Roth IRA, you already met the five-year rule,
most likely at that time.
So that's what you should be doing.
Now, the way you would be doing it, do a
little bit this year. It's almost at the end of
the year. A little next year. Consult with your CPA
or tax accountant as to how much you could convert
(15:14):
every year so that you don't go into a higher
income tax bracket. All right, KT.
KT (15:19):
OK, Suze, this next question is...
Suze (15:21):
Are you having fun?
KT (15:22):
Yeah
Suze (15:23):
You don't look like it.
KT (15:24):
Well, because some of these questions are baffling me, especially
this one.
Suze (15:29):
This is from, let me just.
Is this about a
KT (15:31):
Roth? No, no, no, no, I'm, I like Roth now, everybody,
I changed.
Suze (15:37):
If we ever get a dog, you know what I'm
gonna call it? Roth
KT (15:39):
Roth, but you all like my Roth smoothies.
Suze (15:43):
They did, didn't they?
KT (15:43):
My frothy by
Suze (15:44):
Roth, she has in front of her.
KT (15:47):
Yeah, I'm drinking it right now. Frothy Rothy.
Suze (15:50):
I know.
KT (15:50):
Yep, I made, Oh look, you noticed, they're green.
Suze (15:54):
Wait a minute.
KT (15:54):
They're also the color of money.
Suze (15:56):
As Colo would say
Does that mean you think I don't notice things?
KT (16:01):
Well, I didn't.
I didn't know if you noticed that one.
Suze (16:04):
How could I miss it?
KT (16:06):
Usually I shouldn't have any drinks on the recording table
with the equipment. OK, ready. This is from Bavani. This
is baffling me.
Suze (16:15):
I love that name.
KT (16:16):
I do too, but she, she said my husband passed
away 4 years ago. I downsized. Ready for this. This
is why I'm confused. I downsized by selling our home
in the country.
And buying a smaller one in the city. I have
about $30,000 in savings from the sale, and I have
(16:38):
been slowly using it. What can I or should I
do to make the money last? I'm almost 63. I
don't see how I can ever retire since I am
a one income household now.
You know, I'm looking at you confused. It seems like
if you move from the country into the city, your
(16:59):
expenses are gonna be higher in a city environment.
Suze (17:02):
But maybe she felt better in it that we don't know.
What I don't know, Bavani, is, does that mean you bought, uh,
and you, you say that you are buying a smaller
one in the city. Does that mean that you have
a mortgage on it?
Or do you own it outright from the proceeds of
the house that you had in the country? I don't
(17:26):
know that. So this isn't a financial question, even though
you may think it is. This is a question about
you feeling at the age of 63 that there's no
way you can ever retire and as long as you
continue to think that way.
That will be true. You have to remember that your
(17:49):
words and your thoughts are more powerful than you have
any idea.
That if you think you can't, you never ever will.
You have to say I will. You have to say
I can. You have to say I want to. You
have to see it. You have to envision it, and
you have to go for it. Just that simple. There's
(18:11):
always something you can do. There's a lot of elderly
people seriously in a city.
That need help, that can't take care of themselves anymore,
that need help with somebody taking care of them, you,
you'd be amazed at how many things you can do,
but you have to think it, you have to say it,
(18:31):
and then you have to do it. All right.
KT (18:34):
Hi, Suze and KT. I know you have given
us a ton of information on Roth's, but I'm hoping
you can answer one more question, please.
Suze (18:44):
Pop quizzy pop quizzy.
KT (18:46):
Oh wait.
Suze (18:46):
I don't even know it, but pop quizzy.
KT (18:48):
I have a tax deferred account from a previous employer,
and I want to gradually move the money into my
existing Roth.
Do you recommend having taxes withheld when you make a
conversion or waiting until you file taxes to pay?
Suze (19:05):
Pop quizzy, pop quizzy.
KT (19:08):
Well,
OK, hold on, everybody
Suze (19:12):
I love this so much You have no idea, everybody.
KT (19:13):
Do you recommend having taxes withheld when you make a
conversion or wait until you file taxes to pay?
Suze (19:24):
Remember, now, let me be clear for you, KT, you're
taking money out of a pre-tax account. They are going
to ask.
Because taxes are going to be owed on that money,
do you want them to withhold the taxes? There's a 20%
withholding tax normally. Do you want them to withhold it?
(19:44):
Or do you not and wait until next year to
pay taxes on it.
KT (19:51):
I would probably wait so you can earn more interest
on that money.
Suze (19:55):
You sure?
KT (19:56):
No.
Suze (19:57):
Come on.
KT (19:58):
I'm not sure.
Suze (19:58):
This is like a multiple choice question. First answer is
usually correct. You wanna keep it?
KT (20:04):
Yeah, keep it.
Suze (20:05):
Ding ding ding right?
KT (20:07):
Wouldn't you wanna wait?
Suze (20:08):
So everybody, here's what you need to be careful of here.
I don't know exactly, Karen, how old you are.
But if in fact you had them withhold taxes for you,
let's say you have $10,000 in there, let's say that's true,
and now you want to convert to a Roth, and
(20:30):
they're asking you on a piece of paper you're gonna
have to fill out, should you withhold taxes, and you
say yes.
They will withhold 20% or $2,000 in this case. 20%
KT of $10,000 is $2,000. Now you will have $8,000
(20:51):
that you are converting.
However, you have $2,000 that needed to be converted or
you're gonna owe ordinary income taxes on it that year, OK.
But if you're not 59 and a half years of age at the
time you're doing this, then you're gonna owe a 10%
(21:12):
penalty on that money. So you absolutely never want to
withhold taxes when you are converting. You want it all
to convert custodian to custodian, just that simple, OK.
KT (21:27):
That's what I thought.
Suze (21:28):
I think I answered her too. I'm not sure.
KT (21:31):
Hi KT and Suze, this is from Andrew. I'm starting
a new job with the Florida Department of Transportation. I
have a question about the deferred compensation, a 457B plan.
The state requires...
Suze (21:47):
Do you know what that is?
KT (21:47):
No, no, you have to tell us. The state requires
a 3% pension contribution from my salary and offers a
traditional 457B, no Roth option. Suze, would it be better
for long-term growth and tax efficiency to invest in a
taxable brokerage account instead of the traditional 457B?
(22:12):
And then he's 27 years old. Ready for this. I
max out my Roth IRA. I have an emergency fund
and will earn a little over $100,000 this year.
Suze (22:24):
All right, what's his name?
KT (22:25):
Andrew.
Suze (22:26):
Andrew, listen to me, boyfriend.
Unlike other retirement plans, and everybody, a 457B is just
a deferred compensation plan that many companies, corporations, and so
forth offer. Think of the words deferred compensation. They are
(22:47):
deferring the compensation that they pay you. You get to
choose how much up to the maximum limit.
But you get to choose what that amount is. It
goes into this account, and when it goes into this account,
you don't pay taxes on it because it's not part
of your taxable compensation. But here's how it differs, everybody,
(23:11):
from a 401k or a 403B, which is this a
457B has no 10% penalties on withdrawals if you leave
your job.
And no matter how old you are, you leave at 35,
you can withdraw the money penalty free, 45, 50, no penalties,
number one. And when you do withdraw, you simply pay
(23:34):
ordinary income tax on it, so it has the flexibility
that you want to be able to get at that money.
So believe it or not, a 457B is one of
the most powerful retirement plans out there. Wanna know why?
KT (23:53):
No penalty.
Suze (23:54):
No, because he says here that he makes $100,000 a year,
da da da da. So he's in about the 24%
income tax bracket. He's putting that money in whatever he's
putting in.
Not paying 24% on it. So that's like he is
making 24% on that money a year. He's compounding it.
(24:18):
His dividends, everything he's investing in. If he put it
in a regular investment account, he would have had to
pay 24% tax on it. His dividends, his earnings, everything
would be taxable. No, Andrew, go 457 all the way.
Next KT.
KT (24:35):
That's great, Suze. Next is another man, Tristan.
He said he's a millennial man smart enough to listen
to your podcast every weekend, and Tristan said, Suze, I'm
a fan of SPYM over Vo and definitely over Spy SPY.
I just want to point this out to you so
(24:56):
you could advise your listeners. Thank you and KT for
all you do, inspiring the younger generation like us to
be brave in this world of finance.
Every night I fire up your podcast while I'm having
dinner as if I have you and KT sitting at
my table exchanging friendly banters and lifelong wisdoms just like
(25:18):
my own aunties.
That's sweet.
Suze (25:22):
KT, the reason Tristan's writing that seriously, and I wrote
him back a little bit, is that on one of
the podcasts not so long ago.
I had recommended to all of you an ETF with
the symbol SPLG, which is a 500 index ETF, and
I did that because the expense ratio was at 0.02%,
(25:46):
which was better than VOO. Then they changed it to
be the symbol SPYM, and when they changed that,
I got hundreds of emails saying, Suze, what is this?
I can't get information on it. What's going on? I
looked it up, and the expense ratio is 0.09%. What
(26:07):
should I do? I looked it up immediately because I
was in it as well, and when they first posted it,
they posted it at a 0.09% expense ratio.
And therefore I recommended to all of you get out
of it and go to VOO, which is at a 0.03%
(26:28):
expense ratio. However, right after that, right around there, it changed.
I never bothered to look again, and they corrected it
to be back at 0.02% expense ratio, which is actually
better than VOO, which again
(26:49):
is at 0.03%. So Tristan wanted me to make sure
that all of you knew that.
And so my utmost apologies to everybody. We did cut
that part from the podcast right afterwards, as soon as
I found it out. So that's the scoop what to do,
(27:10):
and that's how that happened.
KT (27:12):
All right.
Suze (27:12):
Thanks, Tristan.
KT (27:13):
Thank you, Tristan. We will be your aunties anytime.
Suze (27:16):
All right.
KT (27:17):
All right. OK. So Susie, final question. You ready?
Suze (27:21):
No.
KT (27:23):
It starts with, I have two short questions, hopefully, but
I'm only gonna read one. My wife and I both
started a contributory Roth mid 2025. We plan on contributing
the maximum going forward. We want to convert our rollover
IRAs and SEP IRA to Roth's over the next few years.
(27:45):
Do we need to open a separate Roth IRA for
the conversion, or can we convert into the current Roth IRA?
Suze (27:54):
Pop quizzy again.
KT (27:55):
Do we need to open a separate Roth IRA for
the conversion, or can we convert into the current? Yeah,
I think you can convert into the current.
Suze (28:05):
You did. You're doing so good.
KT (28:08):
I'm telling you, I'm reading up on Roth. Is that correct?
Suze (28:10):
That's correct. And you just handed me this, and he
says on here, 5-year clock starts on all Roth's 1/1/25.
That's true, but conversion funds have separate 5-year clocks for
each conversion. Is that true or false, KT?
KT (28:27):
Oh, I don't know.
Suze (28:28):
Oh yes, you do.
KT (28:30):
I think, yes.
Suze (28:33):
You sound so convincing. Can you imagine going to a
financial advisor, listen to this, everybody, and go, do, do, do,
do Roth conversions have their own separate conversion and time clock?
And they go, I think yes.
Try it like you know it. Like you're...
KT (28:50):
Absolutely!
Suze (28:52):
That's my girl, and she's absolutely correct. KT. Before we end,
I just have to ask you something.
Do you have any idea how many emails I got
saying how much they loved...
How vulnerable you are and when you cry and everything,
they love that they love your sweetness, they love your vulnerability,
(29:16):
they love your honesty.
Fabulous.
KT (29:20):
But I feel great today, so ready for this? All
you have to do is remember this people first, then money,
then things, and you stay safe.
Suze (29:29):
See you soon, everybody. Bye-bye.
December 4th, 2025. Welcome everybody to the Women and Money podcast,
and everybody's smart enough to listen, right, KT?
KT (00:17):
Yes ma'am.
People write me and they say they love when I
call you Miss Travis. Miss Travis.
She calls me that when she's either mad or about
to correct me.
Suze (00:30):
Miss Travis, yes, you know what tomorrow is?
KT (00:34):
Tomorrow is Suze's half birthday. I don't know if all
of you celebrate a half birthday. I never did. I
don't even know what mine is, but Suze loves December 5th.
Tomorrow her half birthday. How are you gonna celebrate it?
Suze (00:49):
I'll
be 74 and a half, tomorrow. I'll celebrate it like I do every year.
My friend from grammar school, Leslie Lynn's full birthday is
on December
KT (01:01):
5th...
Suze (01:02):
So I write Leslie and I say happy birthday. She
writes me and says Happy half birthday, and then we
are complete.
KT (01:10):
rAll ight, all right, I can't wait to hear from
her too. I love that woman. Don't you though?
Yeah, she's one of Suze's...
And you've been, you've known each other since how old?
Suze (01:19):
Oh, early in grammar school, early, like, like forever,
KT (01:25):
She's a forever friend. OK, I'm starting with a thank you, and
this is post Thanksgiving, but it's a...
Suze (01:32):
Oh, wait a minute, I'm not done.
KT (01:34):
Oh, OK.
Suze (01:35):
So you know we didn't do a podcast on Sunday
and all, but however, how was your Thanksgiving?
KT (01:42):
Delicious. Suze and Colo yet once again made the best
turkey stuffing or dressing, as many of you call it,
we ever had. But this year we had Thanksgiving with
my sister Lynn and lots of people and kids and...
Suze (02:00):
And bottom line, fabulous, fabulous, fabulous and all. And now
we are back on the island. All right, KT.
KT (02:08):
OK, this is a post Thanksgiving thank you.
This is from Vicky, she said. Suze, I waited until
I was 70 to take my Social Security and received
an extra 30.7%, which was added to my 100%. The
wait felt like forever, but I did it, and I
(02:29):
am extremely happy.
I tried to talk my friends at work into this
about Social Security, and they thought different than me. They
did not want to wait, and most of my coworkers
took theirs at age 62.
Suze (02:44):
Such a mistake.
KT (02:44):
I know, and she said, Suze, thank you so much,
From Vicky. No questions here. She just wants to thank you.
Suze (02:51):
Well, she wants to...
She listened to you.
She wants to thank me. However, I have a feeling
Vicky also wants me to say to everybody, since her
coworkers didn't listen to her, the biggest mistake in most cases,
in my opinion, when it comes to Social Security, is
if you take it at 62.
(03:12):
How many emails do I get saying, why did I
take it at 62? I'm now 92. I never thought
I would live this long. It doesn't cover anything. Just
biggest mistake, Suze. So we're all living longer.
We all will need more and more money cause things
get more and more expensive. If you're gonna take Social Security,
(03:35):
at minimum, wait till your full retirement age. Currently for
most of you, 67. All right, KT.
KT (03:43):
All right, this is from Patricia.
She said my 92 year old organized mom invited me
to go over and look through her documents, financial accounts, passwords,
and the works. She said her documents include a will,
healthcare proxy, power of attorney, and living will.
(04:05):
And then she said, I bought the must-have documents thinking
we could update her will as it's dated 1996 and
my last name has also changed since then. I see
that I must create a trust. My mom only has
$20,000 in a high yield savings account which she added
(04:26):
my name to. She owns a co op worth $250,000
and a car worth $18,000.
So she pulls at least 1,000 out of her savings
each month. Should I hire an attorney to create her will,
or does it make sense to create a trust? So Suze,
(04:46):
tell Patricia what she really needs to do.
Suze (04:48):
So here's the thing. First, let me clear up everything
about the must-have docs. It used to be when the
must-have docs first came out over 25 years ago.
You first had to create a will, then you had
to create a trust, then you had to create the
durable power of attorney for health care. You had to
(05:10):
do each one individually, but you then had to do what?
reenter the information to each and every one of them.
So as time went on, people were also just doing
the will. They weren't doing the trust. They were doing
what they wanted, but not necessarily what they needed.
(05:31):
So in the end, the must-have documents, once you fill
in the information, it automatically populates all of the must-have
documents for you, so you don't have to do one
after the other after the other. Now, Patricia, just fill
it out. No big deal. You don't want to do
(05:51):
a living revocable trust. Fine, don't.
But there is where you'll have your will. It will
create one for you, so you don't need to hire,
in my opinion, an attorney to do so. However...
I just wanna make you aware of that mama has
a co-op. Now, listen, not all co-ops allow their stock certificates,
(06:15):
cause when you own a co-op, you have a stock
certificate to be transferred into the name of a trust.
So mama might not even be able to do it.
You need to find that out. However, if mama dies,
that co-op is going to go into probate.
And you are going to have to file filing fees
(06:36):
could be $200 to $1,000. Probate fees could be $3,000
10,000 dollars, whatever it may be. So there will be
costs involved there. You just need to be aware of
the downside if mama dies without a revocable trust, just
that simple. However,
(06:57):
KT, I wrote Patricia already and I told her all
this because what I said to her was...
The problem isn't about should you have a trust, not
have a trust, a will. The problem is the money.
She has $20,000 in an account. She's pulling out $1,000
a month to meet her expenses. That means in another
(07:20):
year and a half or so it's gone. Then what?
Just something to think about. All right.
KT (07:26):
All right.
Suze (07:26):
And by the way, for those of you, you just
heard me, I answered somebody directly. I've answered so many
of you directly, it's not even funny.
You can always write in your question to ask Suze podcast@gmail.com.
That's S U Z E.
And ask a question. Keep it short, because if they're long,
we're just gonna skip over them truthfully. Although once in
(07:48):
a while I answer them.
KT (07:49):
Not only that, can you please tell everyone listening if
they need the must-have documents where to get them?
Suze (07:55):
Oh, I forgot about that. So yes, for those of
you who want the must-have documents, and you should all
want them because you need them, a will, a living
revocable trust, an advanced directive, durable power of attorney for
health care, and financial power of attorney.
$2,500 worth of state of the art documents currently $99
good in all 50 states. Just go to must-havedocs.com and
(08:19):
you can get them there. And of course when you
get them there, once you have them, you can share
them with every one of your family members. You give
them the activation code they create it for themselves, so
it's like a $2,500 gift to every single person you
give it to. All right.
KT (08:35):
Yeah, great year-end gift.
So, Sandra wrote and she said, Suze, I'm retired age
69 and a half. She is a half birthday girl too.
She said, I have a Charles Schwab account in the
amount of $107,000 and my husband has the same in
his own name.
Suze, we were advised to put it into individual annuities
(08:58):
and the remainder into individual life insurance IRA policies with
the goal to transfer taxable money over 5 years into
non-taxable income for a later date. I mean, they're 69
and a half, right?
Suze (09:14):
It's just stupid.
KT (09:15):
So we have a home valued at $650,000 with a
$230,000 mortgage.
My husband will retire in April and will receive a
healthy pension. What would be your advice in regards to
the annuities and life insurance policies? Wait, look at her face.
Suze (09:36):
Well, because I answered this with one simple thing, that
emoji with a thumbs down. That's how I answered Sandra. Sandra,
listen to me.
Let's say you were lucky enough to come to me directly.
KT (09:50):
You should see your face everybody.
Go ahead. I'm sorry.
Suze (09:54):
We should be YouTubing this.
KT (09:55):
I know.
Suze (09:56):
I wish you could see. Like I'm up on my,
my arms on my face.
KT (10:00):
It's like so ready to like blast it. All right, go ahead.
Suze (10:03):
Right, but I'm like holding myself up right on the
arms of my chair, leaning into the mic with both
hands like ready to choke, right? So let's just say
you were lucky enough.
To be sitting across the desk from me and you
told me that here you are 6915. I imagine that
(10:25):
your husband is pretty near that age as well somewhere
and that you have a home worth $650,000 but you
still have a $238,000 mortgage.
And you had $214,000 among you. I don't know if
it's in an IRA. I'm not exactly sure where it is.
(10:49):
And you said, what should we do, Suze? And you
have a pension. You have your fine. I would look
at everything. I'd go, I'll tell you what I would
do if I were you. If you could, that money's
in a money market fund, for instance.
I would take that money and pay off the mortgage
on my home because why would I do that? Your
mortgage goes away, therefore, your largest monthly expense goes away.
(11:14):
You own your home outright. You have nothing to worry
about at that moment in time. Nothing will make.
You feel more secure than owning your own home outright,
but no, this advisor wants you to put it in
an annuity and possibly a life insurance policy just so
in five years he can do it again or she
can do it again and get another commission so you
(11:36):
can have non-taxable income. Are you crazy? Are you crazy?
I would actually, if I had an advisor that advised
me to do that.
At this point in your life, I would switch my
account to another advisor. So, that's number one. Number two,
I want you to seriously think about what I said
(11:58):
to you. How would it make you feel?
If you owned your home outright, now again, I don't
know where this money is. I don't know if there's
capital gains tax involved. You have to check all of
that obviously with an accountant and everything like that, but
I would make it your number one goal more than
anything else to pay off your mortgage as soon as
(12:22):
you can. Go on, KT.
KT (12:23):
OK, next question.
Suze (12:25):
Wait, I have a question.
No, I'm very serious. Why are we getting hundreds of
emails from people who have accounts? I'm very serious at
Fidelity and Charles Schwab, and the number one piece of
advice they are all being given is to get an annuity,
(12:45):
get an annuity, get an annuity.
For all of you, if you are in that situation,
you must ask your financial advisor. If I get an annuity,
how much commission are you going to make?
You really have to understand how annuities work, everybody. I
(13:05):
just don't get it. There are so many better things
that you could probably be doing with your money. Sometimes
it makes sense, but most of the times it does not,
especially if it's money in a retirement account. Are you
kidding me? Go on.
KT (13:20):
My next question is from Amy. She said, I switched
jobs back in 2018 and never moved my 401k from
my previous employer since it was doing so well. I
also have a Roth 401k with my current employer. I
like the idea of not paying taxes on my 401k
(13:41):
in retirement. Would you recommend converting to a Roth now?
Suze (13:46):
So I imagine, Amy, you're asking me, do I recommend
you converting to the Roth 401k at your new employer's
rather than just a Roth? And here's two things I
want you to understand. You would be far better off
right now converting little by little to a Roth IRA.
(14:08):
Rather than the Roth 401k at your new employer. Number one,
there are more investment options in a Roth IRA than
a Roth 401k. A Roth 401k when you absolutely retire
from there and then take it and do a rollover
to a Roth IRA.
(14:29):
The time clock of the Roth 401k does not come
with you. You start the time clock all over again.
Remember that five-year rule. If you were to convert right
now to a Roth IRA, the time clock starts now.
So later on, when you have your Roth 401k that
you are continuing to contribute to, and then you transfer
(14:53):
that to a Roth IRA, you already met the five-year rule,
most likely at that time.
So that's what you should be doing.
Now, the way you would be doing it, do a
little bit this year. It's almost at the end of
the year. A little next year. Consult with your CPA
or tax accountant as to how much you could convert
(15:14):
every year so that you don't go into a higher
income tax bracket. All right, KT.
KT (15:19):
OK, Suze, this next question is...
Suze (15:21):
Are you having fun?
KT (15:22):
Yeah
Suze (15:23):
You don't look like it.
KT (15:24):
Well, because some of these questions are baffling me, especially
this one.
Suze (15:29):
This is from, let me just.
Is this about a
KT (15:31):
Roth? No, no, no, no, I'm, I like Roth now, everybody,
I changed.
Suze (15:37):
If we ever get a dog, you know what I'm
gonna call it? Roth
KT (15:39):
Roth, but you all like my Roth smoothies.
Suze (15:43):
They did, didn't they?
KT (15:43):
My frothy by
Suze (15:44):
Roth, she has in front of her.
KT (15:47):
Yeah, I'm drinking it right now. Frothy Rothy.
Suze (15:50):
I know.
KT (15:50):
Yep, I made, Oh look, you noticed, they're green.
Suze (15:54):
Wait a minute.
KT (15:54):
They're also the color of money.
Suze (15:56):
As Colo would say
Does that mean you think I don't notice things?
KT (16:01):
Well, I didn't.
I didn't know if you noticed that one.
Suze (16:04):
How could I miss it?
KT (16:06):
Usually I shouldn't have any drinks on the recording table
with the equipment. OK, ready. This is from Bavani. This
is baffling me.
Suze (16:15):
I love that name.
KT (16:16):
I do too, but she, she said my husband passed
away 4 years ago. I downsized. Ready for this. This
is why I'm confused. I downsized by selling our home
in the country.
And buying a smaller one in the city. I have
about $30,000 in savings from the sale, and I have
(16:38):
been slowly using it. What can I or should I
do to make the money last? I'm almost 63. I
don't see how I can ever retire since I am
a one income household now.
You know, I'm looking at you confused. It seems like
if you move from the country into the city, your
(16:59):
expenses are gonna be higher in a city environment.
Suze (17:02):
But maybe she felt better in it that we don't know.
What I don't know, Bavani, is, does that mean you bought, uh,
and you, you say that you are buying a smaller
one in the city. Does that mean that you have
a mortgage on it?
Or do you own it outright from the proceeds of
the house that you had in the country? I don't
(17:26):
know that. So this isn't a financial question, even though
you may think it is. This is a question about
you feeling at the age of 63 that there's no
way you can ever retire and as long as you
continue to think that way.
That will be true. You have to remember that your
(17:49):
words and your thoughts are more powerful than you have
any idea.
That if you think you can't, you never ever will.
You have to say I will. You have to say
I can. You have to say I want to. You
have to see it. You have to envision it, and
you have to go for it. Just that simple. There's
(18:11):
always something you can do. There's a lot of elderly
people seriously in a city.
That need help, that can't take care of themselves anymore,
that need help with somebody taking care of them, you,
you'd be amazed at how many things you can do,
but you have to think it, you have to say it,
(18:31):
and then you have to do it. All right.
KT (18:34):
Hi, Suze and KT. I know you have given
us a ton of information on Roth's, but I'm hoping
you can answer one more question, please.
Suze (18:44):
Pop quizzy pop quizzy.
KT (18:46):
Oh wait.
Suze (18:46):
I don't even know it, but pop quizzy.
KT (18:48):
I have a tax deferred account from a previous employer,
and I want to gradually move the money into my
existing Roth.
Do you recommend having taxes withheld when you make a
conversion or waiting until you file taxes to pay?
Suze (19:05):
Pop quizzy, pop quizzy.
KT (19:08):
Well,
OK, hold on, everybody
Suze (19:12):
I love this so much You have no idea, everybody.
KT (19:13):
Do you recommend having taxes withheld when you make a
conversion or wait until you file taxes to pay?
Suze (19:24):
Remember, now, let me be clear for you, KT, you're
taking money out of a pre-tax account. They are going
to ask.
Because taxes are going to be owed on that money,
do you want them to withhold the taxes? There's a 20%
withholding tax normally. Do you want them to withhold it?
(19:44):
Or do you not and wait until next year to
pay taxes on it.
KT (19:51):
I would probably wait so you can earn more interest
on that money.
Suze (19:55):
You sure?
KT (19:56):
No.
Suze (19:57):
Come on.
KT (19:58):
I'm not sure.
Suze (19:58):
This is like a multiple choice question. First answer is
usually correct. You wanna keep it?
KT (20:04):
Yeah, keep it.
Suze (20:05):
Ding ding ding right?
KT (20:07):
Wouldn't you wanna wait?
Suze (20:08):
So everybody, here's what you need to be careful of here.
I don't know exactly, Karen, how old you are.
But if in fact you had them withhold taxes for you,
let's say you have $10,000 in there, let's say that's true,
and now you want to convert to a Roth, and
(20:30):
they're asking you on a piece of paper you're gonna
have to fill out, should you withhold taxes, and you
say yes.
They will withhold 20% or $2,000 in this case. 20%
KT of $10,000 is $2,000. Now you will have $8,000
(20:51):
that you are converting.
However, you have $2,000 that needed to be converted or
you're gonna owe ordinary income taxes on it that year, OK.
But if you're not 59 and a half years of age at the
time you're doing this, then you're gonna owe a 10%
(21:12):
penalty on that money. So you absolutely never want to
withhold taxes when you are converting. You want it all
to convert custodian to custodian, just that simple, OK.
KT (21:27):
That's what I thought.
Suze (21:28):
I think I answered her too. I'm not sure.
KT (21:31):
Hi KT and Suze, this is from Andrew. I'm starting
a new job with the Florida Department of Transportation. I
have a question about the deferred compensation, a 457B plan.
The state requires...
Suze (21:47):
Do you know what that is?
KT (21:47):
No, no, you have to tell us. The state requires
a 3% pension contribution from my salary and offers a
traditional 457B, no Roth option. Suze, would it be better
for long-term growth and tax efficiency to invest in a
taxable brokerage account instead of the traditional 457B?
(22:12):
And then he's 27 years old. Ready for this. I
max out my Roth IRA. I have an emergency fund
and will earn a little over $100,000 this year.
Suze (22:24):
All right, what's his name?
KT (22:25):
Andrew.
Suze (22:26):
Andrew, listen to me, boyfriend.
Unlike other retirement plans, and everybody, a 457B is just
a deferred compensation plan that many companies, corporations, and so
forth offer. Think of the words deferred compensation. They are
(22:47):
deferring the compensation that they pay you. You get to
choose how much up to the maximum limit.
But you get to choose what that amount is. It
goes into this account, and when it goes into this account,
you don't pay taxes on it because it's not part
of your taxable compensation. But here's how it differs, everybody,
(23:11):
from a 401k or a 403B, which is this a
457B has no 10% penalties on withdrawals if you leave
your job.
And no matter how old you are, you leave at 35,
you can withdraw the money penalty free, 45, 50, no penalties,
number one. And when you do withdraw, you simply pay
(23:34):
ordinary income tax on it, so it has the flexibility
that you want to be able to get at that money.
So believe it or not, a 457B is one of
the most powerful retirement plans out there. Wanna know why?
KT (23:53):
No penalty.
Suze (23:54):
No, because he says here that he makes $100,000 a year,
da da da da. So he's in about the 24%
income tax bracket. He's putting that money in whatever he's
putting in.
Not paying 24% on it. So that's like he is
making 24% on that money a year. He's compounding it.
(24:18):
His dividends, everything he's investing in. If he put it
in a regular investment account, he would have had to
pay 24% tax on it. His dividends, his earnings, everything
would be taxable. No, Andrew, go 457 all the way.
Next KT.
KT (24:35):
That's great, Suze. Next is another man, Tristan.
He said he's a millennial man smart enough to listen
to your podcast every weekend, and Tristan said, Suze, I'm
a fan of SPYM over Vo and definitely over Spy SPY.
I just want to point this out to you so
(24:56):
you could advise your listeners. Thank you and KT for
all you do, inspiring the younger generation like us to
be brave in this world of finance.
Every night I fire up your podcast while I'm having
dinner as if I have you and KT sitting at
my table exchanging friendly banters and lifelong wisdoms just like
(25:18):
my own aunties.
That's sweet.
Suze (25:22):
KT, the reason Tristan's writing that seriously, and I wrote
him back a little bit, is that on one of
the podcasts not so long ago.
I had recommended to all of you an ETF with
the symbol SPLG, which is a 500 index ETF, and
I did that because the expense ratio was at 0.02%,
(25:46):
which was better than VOO. Then they changed it to
be the symbol SPYM, and when they changed that,
I got hundreds of emails saying, Suze, what is this?
I can't get information on it. What's going on? I
looked it up, and the expense ratio is 0.09%. What
(26:07):
should I do? I looked it up immediately because I
was in it as well, and when they first posted it,
they posted it at a 0.09% expense ratio.
And therefore I recommended to all of you get out
of it and go to VOO, which is at a 0.03%
(26:28):
expense ratio. However, right after that, right around there, it changed.
I never bothered to look again, and they corrected it
to be back at 0.02% expense ratio, which is actually
better than VOO, which again
(26:49):
is at 0.03%. So Tristan wanted me to make sure
that all of you knew that.
And so my utmost apologies to everybody. We did cut
that part from the podcast right afterwards, as soon as
I found it out. So that's the scoop what to do,
(27:10):
and that's how that happened.
KT (27:12):
All right.
Suze (27:12):
Thanks, Tristan.
KT (27:13):
Thank you, Tristan. We will be your aunties anytime.
Suze (27:16):
All right.
KT (27:17):
All right. OK. So Susie, final question. You ready?
Suze (27:21):
No.
KT (27:23):
It starts with, I have two short questions, hopefully, but
I'm only gonna read one. My wife and I both
started a contributory Roth mid 2025. We plan on contributing
the maximum going forward. We want to convert our rollover
IRAs and SEP IRA to Roth's over the next few years.
(27:45):
Do we need to open a separate Roth IRA for
the conversion, or can we convert into the current Roth IRA?
Suze (27:54):
Pop quizzy again.
KT (27:55):
Do we need to open a separate Roth IRA for
the conversion, or can we convert into the current? Yeah,
I think you can convert into the current.
Suze (28:05):
You did. You're doing so good.
KT (28:08):
I'm telling you, I'm reading up on Roth. Is that correct?
Suze (28:10):
That's correct. And you just handed me this, and he
says on here, 5-year clock starts on all Roth's 1/1/25.
That's true, but conversion funds have separate 5-year clocks for
each conversion. Is that true or false, KT?
KT (28:27):
Oh, I don't know.
Suze (28:28):
Oh yes, you do.
KT (28:30):
I think, yes.
Suze (28:33):
You sound so convincing. Can you imagine going to a
financial advisor, listen to this, everybody, and go, do, do, do,
do Roth conversions have their own separate conversion and time clock?
And they go, I think yes.
Try it like you know it. Like you're...
KT (28:50):
Absolutely!
Suze (28:52):
That's my girl, and she's absolutely correct. KT. Before we end,
I just have to ask you something.
Do you have any idea how many emails I got
saying how much they loved...
How vulnerable you are and when you cry and everything,
they love that they love your sweetness, they love your vulnerability,
(29:16):
they love your honesty.
Fabulous.
KT (29:20):
But I feel great today, so ready for this? All
you have to do is remember this people first, then money,
then things, and you stay safe.
Suze (29:29):
See you soon, everybody. Bye-bye.
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Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.