October 30, 2025 • 32 mins
On this final vacation Ask Suze & KT Anything episode, KT asks Suze your questions about changes to Social Security, paying off a mortgage, and crypto. Plus, a “Can I Afford It?” question and so much more.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
KT (00:08):
So today's October 30th, right,
Suze (00:10):
Alright, so we
will just be on the plane at this point coming back.
KT (00:15):
In time for trick or
treat.
Suze (00:17):
Oh, I knew it. I knew it. I knew she
was gonna get...
KT (00:21):
In time for Halloween.
Suze (00:24):
KT, why do you love Halloween so much?
KT (00:26):
Always love that holiday.
Suze (00:28):
I know, but wait, we live in a place now
where nobody goes trick or treating. No, really, I wanna know.
KT (00:36):
I think of the holiday of Halloween as my childhood.
And it's always fun to remember. I'll never forget being
a kid, one of six kids.
Suze (00:46):
All right, but, but do you have to remind me
of it? Like, like for the whole month going up
to Halloween, do you have to always talk about Halloween? OK,
what's our first question? On, the Women and Money podcast
and everybody's smart enough to listen.
KT (01:01):
This is
from Pamela Lynn in Chicago.
Suze (01:05):
Ask KT and Suze Anything edition.
Go on,
KT (01:10):
Pamela Lynn said, I'm 55
Suze (01:12):
Do you all
know my middle name is Suze Lynn.
Do you know that?
KT (01:17):
Oh yeah, that's right. They don't know. Suze Lynn.
Suze (01:20):
I'm just gonna interrupt you this whole podcast.
KT (01:22):
OK, this is from Pamela Lynn.
I'm 55 and became disabled in 2019, but with the
rumors about upcoming Social Security benefit changes and the current
administration for 2026, I'm worried. I'm a single mom. I
(01:42):
used up all my savings and retirement money when I
got sick unexpectedly. I can't find any information
to prepare while I'm getting my other affairs in order
for my son, who is still finishing college 800 miles
away living with my disabled retired parents. Help please with
(02:05):
any advice. I'm rebuilding while living in an affordable woman
housing program.
Suze (02:13):
Oh boy. So girlfriend, listen to me.
There comes a day in every mother's life.
Maybe every father's life, every parent's life, where they have
to care about themselves more than they care about their children,
(02:33):
you know, I'm the one that created the saying put
the financial oxygen mask on your face first, then your
children's when you're in the air, because if something happens
to you, who is going to take care of the children.
And it seems like your main concern,
(02:55):
is to make sure that your son is OK. I
think what's very important here is you can build yourself
back up. Maybe you want to put $100 away by
going to Myalliant.com and starting the Ultimate Opportunity Savings account
$100 every month for 12 months they give you $100.
(03:18):
It's a start. It's a good return on your money.
But I think what you really need to do is
have a talk with your son.
And say sweetheart, I love you more than life itself,
but as you know, I've had a really rough time.
I used up all my savings and everything when I
(03:38):
was sick and on and on. And therefore we have
to be a team. You have to learn now how
to take care of yourself, and one day you may
even have to take care of me.
So I just want you to know that and be
prepared for that, but our honesty and standing in our
(03:59):
truth will be our strength to carry us in the
future and be able to do whatever we need to
do to make it happen. In regards to your comment,
about the current administration, about what's going on and everything, listen,
I've said it many, many times. The government can't save
(04:23):
you because they can't even save themselves. It's not about
this current administration, although I really understand how many of
you want me to make it about that.
It's about all the administrations having not taken care of
the problem of Social Security that has been a problem
for years and years and years, so we just have
(04:45):
to plan for the fact that maybe it will be there,
maybe it won't be there, but you're just gonna have
to plan what would your life look like if it
wasn't there and then if it's there, great, and if
it's not there, great.
So you have to be strong now and take all
(05:06):
these matters into your own hand and don't look for
any scapegoat or any reason as to why you can't
make this happen. You know, KT, I have that saying.
Do you know my saying?
There isn't an excuse strong enough to keep you from
being who you are meant to be.
(05:27):
And that goes for every single person listening to the
Women and Money podcast. Next question, KT.
KT (05:34):
All right, I like that saying too. This is from
Jody and Jody said, just a dude smart enough to
listen with a question. I like that.
So here's his question, Suze. I like how you think
of finance situations as a chess game. I've often felt
the same way. I try to remove myself emotionally from
(05:56):
my situation and just look at the facts, he said.
Here's my move. I'm just shy of age 64. I
have roughly 400,000 total in a Roth IRA plus an
emergency fund.
And my home is worth just under a million dollars,
but I'd like to think of it as my forever home.
(06:19):
Is it worth it to pay off my home to
the tune of $135,000? It would be so nice to
not have a mortgage payment, even though my mortgage is
under $1,000 a month, including tax and insurance.
Thank you both for the fun and money information, but
mostly for just giving a damn about all of us
(06:42):
less educated in the money world. All right, so what's
your chess move for Jody?
Suze (06:48):
So here's the thing, Jody, because KT just handed me
your email.
Even though you say that your mortgage is $1,000 a month,
including tax and insurance, that if you paid off the
mortgage of $135,000 your tax and your insurance would not
(07:09):
go away. It would still be there. So how much
of this $1,000 a month is probably just your mortgage payment?
And given that you have a mortgage of about $135,000
I would estimate that about $562 of that $1,000 is
(07:32):
just your mortgage. So then the question becomes, are you
ready for me to checkmate you boyfriend? Right? Is this
that $135,000 is probably in your Roth.
Therefore you would take it out of your Roth to
(07:52):
pay off this mortgage if you left it in the
Roth $135,000 and all it generated for you was 8%,
which is so easy today. It's not even funny, especially
if you're investing in some of the stocks we have mentioned.
That would give you $900 a month approximately in growth.
(08:17):
Which is almost double what you're getting if you use
it to just get rid of your $562 mortgage.
So maybe I'm wrong. Maybe your mortgage is $600 $700, $800.
I doubt highly it's $900 and your taxes and insurance
(08:37):
are only $1,000. So bottom line answer, don't do it.
Leave everything exactly how it is. All right, KT.
KT (08:46):
OK, next question is.
Suze (08:49):
The other mistake he made.
KT (08:51):
What's that?
Suze (08:51):
He's got an escrow account and an escrow account, everybody
is you pay your mortgage plus your insurance plus your taxes,
but you could pay your insurance and your taxes on
your own.
So while that money is sitting there, it's making interest
for the bank, not for you or your mortgage company.
(09:15):
So don't have escrow accounts, just pay your mortgage, pay
your property taxes, pay your insurance all separately so you
get to keep that money until your premium is due.
All right, KT.
KT (09:30):
Um, next question is from Joanne. She said, Here's another
real estate. I own my home and I'm curious how
you feel about going without HO insurance, homeowners insurance. I
am capable of self-insuring for a full replacement value. I
have owned homes for 50 years, so Joanne's 68.
(09:51):
She said, I spent,
Suze (09:52):
Wait, she's 68 and she's owned homes...
KT (09:53):
She's owned homes for 50 years. So from the age
of 18 she started investing in properties and oh wait,
but listen, this is the catch. No, this is her catch,
she said, I've spent a lot on insurance and I've
never had a claim, but ready...
Joanne lives where? In North Myrtle Beach. Suze, Myrtle Beach,
(10:17):
just to give you big, big hurricane risk neighborhood just
like us in South Florida.
Suze (10:25):
Here's what I would tell you, Joanne, which is, the
hurricanes of the past.
The flooding of the past, even some fires of the past.
Were not as violent and horrific and in places as
they are today. So even though you have owned homes
(10:46):
for 50 years and you have never had a claim
doesn't mean that you're not going to. You have to really,
really know that if next year.
Another hurricane was to come through Myrtle Beach. Your entire
home is gone. Everything in it is gone.
(11:10):
Are you OK with that? If you're OK with that,
then self insure. If you have any doubt whatsoever, you
best keep the insurance. Because if you can afford to self-insure,
you can also afford to have insurance on your property.
(11:30):
So do you want to save a little bit every
year or do you want to save a lot in
case that year
a natural disaster comes on board. Now I can tell you, KT,
we self-insure. We just do, and the reason is that
our insurance was so stupid. A 2,000 square foot condo,
(11:58):
in Florida, $28,000 a year and if you make one
claim they will get rid of us, period. No way.
I'd rather just pay for it out of my own pocket.
So we currently are self-insured on our boat except for liability, right,
(12:19):
our home on the island and our condo in Florida,
but again,
it would not bother us on one level if any
or all of them were taken. Just saying. All right, KT.
KT (12:35):
OK, next question is from Amy. Hello, Suze and KT.
I have a quick question regarding crypto. I have about
$10,000 invested in Bitcoin through PayPal, in which I buy
a little each week.
My question is, PayPal doesn't offer naming a beneficiary.
(12:57):
So would I just list the instructions for that account
in my will, or is there a better place or
way to buy crypto?
Suze (13:05):
Amy, Amy, Amy. So here's the truth. That is the
real downfall of buying Bitcoin and crypto at PayPal. Why
they don't have a designated beneficiary, and you can't do
a trust with them or anything like that is beyond me. Therefore,
there are other alternatives out there, so what I would do,
(13:29):
and again I don't know fully about this firm yet,
but I'm starting to like them a lot. It's called Public.com.
Check them out. I like all of their offerings. I
like how simple it is. I like that you could
buy your bitcoin right there in your account that's in
(13:51):
your individual name.
And have a transfer on death account, a TOD account
and name, let's say your son as the beneficiary or
whoever you want to be the beneficiary.
And then they would get all of that bitcoin upon
your death. I don't know if they currently allow you
(14:13):
to have a trust as a beneficiary, but if they
don't right now, I'm sure this is something that they're
probably working on as well as owning an account as
a trust.
But you can solve your problem now by taking your
Bitcoin from PayPal. You may have to sell it, girlfriend,
(14:33):
and pay whatever gains you have there and taking it
and putting that money unless you could do a transfer
of your Bitcoin from PayPal to Public.com if you like
them and then go from there, but I think it
solves your problem.
By simply doing a TOD account, name them as your beneficiary. Therefore,
(14:59):
it won't go through probate. If it went through your
will because it didn't have a beneficiary, they would have
to go through probate just so you know.
KT (15:10):
Next question is from Jill. Now, everybody, I'm gonna be
Suze for a moment. Take out your little Suze notebooks,
and I want you to remember these dates, especially if
you're like KT and Roth. Ready?
Hi, Suze and KT. Thank you for always keeping me educated.
I listened to your Roth five-year masterclass, as well as
(15:34):
the September 18th, '25 masterclass follow-up questions.
And I went back and listened to the February 18th,
'24 podcast on backdoor Roths and the pro rata rule. OK,
everyone got that date 9.18.25 and 2.18.24. And this is
(15:58):
why I want you to write it down. Jill says,
I still have questions, and I wrote, me too, Jill.
I've been contributing to a backdoor Roth for over 14 years.
My 2025 backdoor Roth contribution was made this year in April. Sadly,
(16:19):
my amazing dad passed away unexpectedly a few months ago.
I just found out I will be inheriting his
traditional IRA.
Suze (16:30):
I know where she's going.
KT (16:31):
Does the pro rata rule on backdoor Roth IRAs apply
to inherited IRAs?
Suze (16:38):
Pop quizzy?
KT (16:39):
I think the answer is no.
Suze (16:41):
Come on, KT, seriously think about it. You know that
when you have a traditional IRA,
traditional IRA in your name and you then do a
back door Roth.
KT (16:59):
But wait, here's the deal. It's inherited.
Suze (17:04):
Ding Ding Ding! I'm so proud of you.
KT (17:06):
No she from what you've told me in the past,
I remember it inherited means no, it's not applicable. But
then this next question, I don't know the answer.
Jill said, also as I pay taxes on the inherited
IRA over the next 10 years, can I put that
money in my Roth and continue making future backdoor Roth contributions?
Suze (17:29):
So I don't know how much you inherited from daddy.
But I have a feeling that you'll probably be withdrawing
more than $7,000 or $8,000 a year from there. So
the question becomes if you have earned income to the
amount that you are going to want to contribute to
your back door Roth, yeah, you could use that money
(17:52):
for that, but you have to have earned income. If
you don't have earned income, you cannot.
So you just can't use that money and count it
as earned income. Chances are
you might not have any earned income and so therefore, no,
you can't do it and you can't convert money just
so you know KT from an inherited traditional IRA to
(18:16):
a Roth. You cannot do that.
KT (18:18):
Because you didn't earn it yourself.
Suze (18:20):
No, because it's not your IRA to convert. It's an
inherited one, so you can't convert it.
There you go.
KT (18:29):
All right. Next question is from Belle. Hi, Suze and KT.
Thank you for your wonderful podcast. I am a 24-year-old
earning $100,000 a year. Last year, a family friend convinced
me to start working with a financial advisor.
Suze (18:48):
Why?
KT (18:48):
Well, hold on. However, a year later, I don't think
I
make enough to have an advisor. Do you think I
should stick with my advisor, or should I invest on
my own? If the latter, how can I transfer the
money to a new investment account without fees? First of all,
you're 24 years old, Suze, tell Belle what to do.
Suze (19:11):
Belle, let's see if I can get the ding dongs
out there.
That are telling you what to do out of your
mind and let's ring your "bell" so that you are
a winner.
A true winner. So you're telling me that you're 24
(19:31):
years old, earning $100,000 a year. You did not tell me, Belle,
how much money you are investing.
What do you have left to invest? At $100,000 a
year that you're earning, you absolutely qualify for a Roth IRA,
and hopefully you're working for a company that is offering
(19:55):
you a Roth 401k or a Roth 403B.
So all your retirement contributions should be into a Roth,
number one, for the rest of your life, by the way.
And you should have both a Roth retirement account at
work and a Roth IRA on your own. Now with
that said, there isn't that much money that you're going
(20:18):
to be putting into those two accounts. The Roth retirement
account at work you don't need a financial advisor for.
You're just going to be putting all that money probably
into a Standard and Poor's 500 index fund within there.
That's it.
Then the little money that you're doing as a Roth IRA,
the $7,000 a year, well, that you should be doing
(20:40):
into ETFs. Again, VTI, great ETF for you to do
or buy slices of little stocks that we have been mentioning.
Just that simple. So no, you do not need a
financial adviser, and you shouldn't even want a financial advisor
(21:01):
other than the absolute best financial advisor you will ever
find in your entire life, and that is the one
that you see when you look in the mirror, cause again, Belle,
another
favorite saying of mine is you are never powerful in
life until you are powerful over your own money, how
you think about it, how you feel about it, and
how you invest it, and nobody cares about your money
(21:23):
more than you do. And what happens to your money
directly affects the quality of your life, not this so-called
financial advisor's life. So you
might just want to give some advice to your friend
who told you that, what they should be doing cause
I have no doubt they are making a mistake as
well and what you have to do now is you
(21:46):
have to decide where do you want to open up
your Roth IRA or if you have an investment account,
where do you want to open that up? Maybe Charles Schwab,
maybe Public.com, maybe some place.
And you simply open up the account that you want.
They will contact your adviser or wherever your money happens
(22:07):
to be, and they will initiate a transfer, and it
will go from them directly into your account at where
you opened it up. You never even have to talk
or see that adviser again. If you don't want to, yes, KT, next.
KT (22:24):
All right, this is from KP.
Hi Suze, I'm 55, still working, and have been contributing
to my retirement plan through a Roth 401k for several years.
If I now open a Roth IRA as well, did
the five year clock begin when I opened my Roth 401k? Also,
(22:45):
do I need both?
Suze (22:47):
Listen to me closely, KP. The amount of time that
your Roth 401k is open,
means absolutely nothing in regards to the five year clock
with a Roth IRA. The only thing that starts a
(23:07):
Roth IRA time clock is a Roth IRA. So did
the five year clock begin when I opened my Roth 401k? No,
it did not.
Not for a Roth IRA. So do you need both? Oh,
you betcha you do. So you should open a Roth
(23:28):
IRA today to start that clock because there will come
a day when you want to take the money that's
in your Roth 401k.
And put it where? Into your Roth IRA.
And if you do so when you're over the age
of 59 and a half and that Roth IRA has been open for
(23:49):
at least 5 years, your penalty for the five year
time clock has been met, so you don't care at
that point. All the money is yours.
KT (23:59):
So Suze, why does a Roth 401k even have a
time clock?
Suze (24:04):
Oh, you are so smart. That is such a great question.
I can't even stand it seriously.
Because sometimes people have a Roth 401k and now they've
had it for like eight years at an old employer's place,
and now they're moving to a new employer that has
(24:26):
a Roth 401k and they want to transfer that money
from their old 401k to their new 401k. Now their
new 401k Roth takes on the time clock of the
old one.
So let's say they want to take money out of
their Roth 401k. That's when the five year time clock hits.
(24:49):
If it's still in a Roth 401k and maybe they
leave it there forever, that's when the time clock matters.
Because not everybody takes their money from their 401k.
And as a Roth IRA with it. Next question.
KT (25:04):
Next question, Suze is from Vivian. Hello, Suze. I'm a single
woman turning 60 in November, and I've been thinking about
taking a trip for the first time alone and thinking
perhaps Hawaii to celebrate this milestone.
Over the years my circle of friends has shrunk. Most
(25:25):
are married with husbands, kids, grandkids, and over the years
people just grow apart, I guess. Anyhow, I have the
means to travel and stay in a luxury resort if
I choose to. My question is this.
A nice luxury stay in Hawaii could run me approximately
$5,500 for five days. I have savings, but as a
(25:49):
single woman, I'm hesitant to dip into my savings. I
could use that money for home improvement or continue to
keep saving toward my future emergency retirement some day. I
live in California,
so there's plenty to do here as they live on
the coast, but the thought of going somewhere different sounds
(26:12):
refreshing too. From a financial standpoint, what's the wisest decision?
I'm my only source of income, so it's completely on
me to fund this trip.
Suze (26:26):
All right, KT pop quizzy. Should she or should she
not do this?
KT (26:31):
No, don't do it because you're not ready. She's not ready.
Suze (26:34):
She's ready emotionally. She absolutely is.
KT (26:37):
Financially, she said a financial...
You know, decision.
Suze (26:42):
Give me the reasons why you're denying her.
KT (26:44):
She said she might want to do some home improvement
on the house, use that money.
Suze (26:47):
But she said she has the means.
KT (26:51):
Don't do it. I don't think she should go. I
think she's going to feel guilty. She could get to Hawaii.
She should have lousy weather for a week, and then
she's going to say, I wasted $5,500.
Suze (27:03):
That's your reason?
KT (27:04):
You know what...
Suze (27:05):
Stop, stop, stop.
KT (27:07):
What do you think?
Suze (27:08):
You've got it right, but not for the right reasons.
She's afraid. She's hesitant. OK, all of those words. However,
she's her only source of income, but she said one
thing that did it for me, right? I could use
that money for a home improvement, OK, or
(27:30):
continue to keep saving towards my future emergency retirement some day.
She used the word emergency.
KT (27:39):
She doesn't have an emergency fund.
Suze (27:41):
She doesn't have, I don't think, a one year emergency fund.
KT (27:46):
So don't do it.
Suze (27:47):
The words emotionally everybody that should have given you pause were,
I'm hesitant to dip into my savings. But what's interesting again, KT.
This is where my theory that most people never ask
when you're asking permission to do something with money, not
(28:08):
you're asking, does the five year rule work da da
no when you're asking permission to spend money, you already
know the answer to that question, or you would not
ask me. You would know, and I want all of
you to know.
I want you to know your own thoughts. I want
(28:30):
you to ask yourself the question. How does it make
me feel? Does it make me feel a little bit afraid?
Does it not? How does it make you feel? And
if you have any hesitation whatsoever, don't do it, because remember,
once you do something, it is all already done. Last question, KT.
KT (28:51):
OK, this is a short one.
This is from Irene, she said. Please advise Suze. Our
mortgage is 3.125% with a balance of $50,000 with seven
years left. My husband is 68 and still works.
I'm 65 and I still work. We have the money
(29:13):
to pay off our home in full. Just wondering if
paying it off is wise since the rate is so low.
Your input is valued. Ask me a pop quizzy.
Suze (29:26):
Pop quizzy.
KT (29:27):
Pay it off.
Suze (29:28):
Why?
KT (29:29):
Because I think Irene would never feel as good as
owning her home outright. They're still young enough, they're working,
and it's $50,000. I think they should do it instead
of paying off seven years.
Suze (29:44):
Irene, here's what I want you to do so you
can answer this question on your own. I don't know
what your mortgage payment is, but you do. Let's just
say for fun. It's $1,000 a month. Let's just say
that's true. That's $12,000 a year.
The $50,000 that's in your account,
(30:07):
would have to earn what to make $12,000 a year
or $1,000 a month? It would have to earn 25%
a year,
to make that much money, so should you take $50,000
(30:28):
out to pay off your mortgage and save yourself $12,000
a year because in four years you would be able
to replace that money in your account, then you should
absolutely do it.
So once again, this is not a case of the
interest rate you even owning your home outright. It's also
(30:51):
a case of true financial intelligence. If your mortgage payment
was $100 a month and it's only going to save
you $1,200 a year, then you're better off keeping your
money invested, the $50,000, because it could easily make you
$4,000 a year.
(31:14):
So that's how you are going to figure out what
you should do in your particular situation, KT.
KT (31:21):
That's a wrap.
Suze (31:22):
I'm sure that somewhere we're getting closer to the United
States at this point in time as we are returning
to Florida. So our next podcast will be us back
in Florida.
Are you excited about that, KT?
KT (31:41):
Yeah, I am excited.
Suze (31:43):
Do you think we had a good time? We'll have to see.
KT (31:47):
We'll be on diets, no Halloween candy for you, Suze.
Suze (31:50):
Oh, here we go. All right, everybody. So until November 2nd.
When it will be a Suze School, just so you know,
there's only one thing that we want you to remember
in life, and that's this. Happy Halloween. All right, everybody,
bye bye. See you soon.
So today's October 30th, right,
Suze (00:10):
Alright, so we
will just be on the plane at this point coming back.
KT (00:15):
In time for trick or
treat.
Suze (00:17):
Oh, I knew it. I knew it. I knew she
was gonna get...
KT (00:21):
In time for Halloween.
Suze (00:24):
KT, why do you love Halloween so much?
KT (00:26):
Always love that holiday.
Suze (00:28):
I know, but wait, we live in a place now
where nobody goes trick or treating. No, really, I wanna know.
KT (00:36):
I think of the holiday of Halloween as my childhood.
And it's always fun to remember. I'll never forget being
a kid, one of six kids.
Suze (00:46):
All right, but, but do you have to remind me
of it? Like, like for the whole month going up
to Halloween, do you have to always talk about Halloween? OK,
what's our first question? On, the Women and Money podcast
and everybody's smart enough to listen.
KT (01:01):
This is
from Pamela Lynn in Chicago.
Suze (01:05):
Ask KT and Suze Anything edition.
Go on,
KT (01:10):
Pamela Lynn said, I'm 55
Suze (01:12):
Do you all
know my middle name is Suze Lynn.
Do you know that?
KT (01:17):
Oh yeah, that's right. They don't know. Suze Lynn.
Suze (01:20):
I'm just gonna interrupt you this whole podcast.
KT (01:22):
OK, this is from Pamela Lynn.
I'm 55 and became disabled in 2019, but with the
rumors about upcoming Social Security benefit changes and the current
administration for 2026, I'm worried. I'm a single mom. I
(01:42):
used up all my savings and retirement money when I
got sick unexpectedly. I can't find any information
to prepare while I'm getting my other affairs in order
for my son, who is still finishing college 800 miles
away living with my disabled retired parents. Help please with
(02:05):
any advice. I'm rebuilding while living in an affordable woman
housing program.
Suze (02:13):
Oh boy. So girlfriend, listen to me.
There comes a day in every mother's life.
Maybe every father's life, every parent's life, where they have
to care about themselves more than they care about their children,
(02:33):
you know, I'm the one that created the saying put
the financial oxygen mask on your face first, then your
children's when you're in the air, because if something happens
to you, who is going to take care of the children.
And it seems like your main concern,
(02:55):
is to make sure that your son is OK. I
think what's very important here is you can build yourself
back up. Maybe you want to put $100 away by
going to Myalliant.com and starting the Ultimate Opportunity Savings account
$100 every month for 12 months they give you $100.
(03:18):
It's a start. It's a good return on your money.
But I think what you really need to do is
have a talk with your son.
And say sweetheart, I love you more than life itself,
but as you know, I've had a really rough time.
I used up all my savings and everything when I
(03:38):
was sick and on and on. And therefore we have
to be a team. You have to learn now how
to take care of yourself, and one day you may
even have to take care of me.
So I just want you to know that and be
prepared for that, but our honesty and standing in our
(03:59):
truth will be our strength to carry us in the
future and be able to do whatever we need to
do to make it happen. In regards to your comment,
about the current administration, about what's going on and everything, listen,
I've said it many, many times. The government can't save
(04:23):
you because they can't even save themselves. It's not about
this current administration, although I really understand how many of
you want me to make it about that.
It's about all the administrations having not taken care of
the problem of Social Security that has been a problem
for years and years and years, so we just have
(04:45):
to plan for the fact that maybe it will be there,
maybe it won't be there, but you're just gonna have
to plan what would your life look like if it
wasn't there and then if it's there, great, and if
it's not there, great.
So you have to be strong now and take all
(05:06):
these matters into your own hand and don't look for
any scapegoat or any reason as to why you can't
make this happen. You know, KT, I have that saying.
Do you know my saying?
There isn't an excuse strong enough to keep you from
being who you are meant to be.
(05:27):
And that goes for every single person listening to the
Women and Money podcast. Next question, KT.
KT (05:34):
All right, I like that saying too. This is from
Jody and Jody said, just a dude smart enough to
listen with a question. I like that.
So here's his question, Suze. I like how you think
of finance situations as a chess game. I've often felt
the same way. I try to remove myself emotionally from
(05:56):
my situation and just look at the facts, he said.
Here's my move. I'm just shy of age 64. I
have roughly 400,000 total in a Roth IRA plus an
emergency fund.
And my home is worth just under a million dollars,
but I'd like to think of it as my forever home.
(06:19):
Is it worth it to pay off my home to
the tune of $135,000? It would be so nice to
not have a mortgage payment, even though my mortgage is
under $1,000 a month, including tax and insurance.
Thank you both for the fun and money information, but
mostly for just giving a damn about all of us
(06:42):
less educated in the money world. All right, so what's
your chess move for Jody?
Suze (06:48):
So here's the thing, Jody, because KT just handed me
your email.
Even though you say that your mortgage is $1,000 a month,
including tax and insurance, that if you paid off the
mortgage of $135,000 your tax and your insurance would not
(07:09):
go away. It would still be there. So how much
of this $1,000 a month is probably just your mortgage payment?
And given that you have a mortgage of about $135,000
I would estimate that about $562 of that $1,000 is
(07:32):
just your mortgage. So then the question becomes, are you
ready for me to checkmate you boyfriend? Right? Is this
that $135,000 is probably in your Roth.
Therefore you would take it out of your Roth to
(07:52):
pay off this mortgage if you left it in the
Roth $135,000 and all it generated for you was 8%,
which is so easy today. It's not even funny, especially
if you're investing in some of the stocks we have mentioned.
That would give you $900 a month approximately in growth.
(08:17):
Which is almost double what you're getting if you use
it to just get rid of your $562 mortgage.
So maybe I'm wrong. Maybe your mortgage is $600 $700, $800.
I doubt highly it's $900 and your taxes and insurance
(08:37):
are only $1,000. So bottom line answer, don't do it.
Leave everything exactly how it is. All right, KT.
KT (08:46):
OK, next question is.
Suze (08:49):
The other mistake he made.
KT (08:51):
What's that?
Suze (08:51):
He's got an escrow account and an escrow account, everybody
is you pay your mortgage plus your insurance plus your taxes,
but you could pay your insurance and your taxes on
your own.
So while that money is sitting there, it's making interest
for the bank, not for you or your mortgage company.
(09:15):
So don't have escrow accounts, just pay your mortgage, pay
your property taxes, pay your insurance all separately so you
get to keep that money until your premium is due.
All right, KT.
KT (09:30):
Um, next question is from Joanne. She said, Here's another
real estate. I own my home and I'm curious how
you feel about going without HO insurance, homeowners insurance. I
am capable of self-insuring for a full replacement value. I
have owned homes for 50 years, so Joanne's 68.
(09:51):
She said, I spent,
Suze (09:52):
Wait, she's 68 and she's owned homes...
KT (09:53):
She's owned homes for 50 years. So from the age
of 18 she started investing in properties and oh wait,
but listen, this is the catch. No, this is her catch,
she said, I've spent a lot on insurance and I've
never had a claim, but ready...
Joanne lives where? In North Myrtle Beach. Suze, Myrtle Beach,
(10:17):
just to give you big, big hurricane risk neighborhood just
like us in South Florida.
Suze (10:25):
Here's what I would tell you, Joanne, which is, the
hurricanes of the past.
The flooding of the past, even some fires of the past.
Were not as violent and horrific and in places as
they are today. So even though you have owned homes
(10:46):
for 50 years and you have never had a claim
doesn't mean that you're not going to. You have to really,
really know that if next year.
Another hurricane was to come through Myrtle Beach. Your entire
home is gone. Everything in it is gone.
(11:10):
Are you OK with that? If you're OK with that,
then self insure. If you have any doubt whatsoever, you
best keep the insurance. Because if you can afford to self-insure,
you can also afford to have insurance on your property.
(11:30):
So do you want to save a little bit every
year or do you want to save a lot in
case that year
a natural disaster comes on board. Now I can tell you, KT,
we self-insure. We just do, and the reason is that
our insurance was so stupid. A 2,000 square foot condo,
(11:58):
in Florida, $28,000 a year and if you make one
claim they will get rid of us, period. No way.
I'd rather just pay for it out of my own pocket.
So we currently are self-insured on our boat except for liability, right,
(12:19):
our home on the island and our condo in Florida,
but again,
it would not bother us on one level if any
or all of them were taken. Just saying. All right, KT.
KT (12:35):
OK, next question is from Amy. Hello, Suze and KT.
I have a quick question regarding crypto. I have about
$10,000 invested in Bitcoin through PayPal, in which I buy
a little each week.
My question is, PayPal doesn't offer naming a beneficiary.
(12:57):
So would I just list the instructions for that account
in my will, or is there a better place or
way to buy crypto?
Suze (13:05):
Amy, Amy, Amy. So here's the truth. That is the
real downfall of buying Bitcoin and crypto at PayPal. Why
they don't have a designated beneficiary, and you can't do
a trust with them or anything like that is beyond me. Therefore,
there are other alternatives out there, so what I would do,
(13:29):
and again I don't know fully about this firm yet,
but I'm starting to like them a lot. It's called Public.com.
Check them out. I like all of their offerings. I
like how simple it is. I like that you could
buy your bitcoin right there in your account that's in
(13:51):
your individual name.
And have a transfer on death account, a TOD account
and name, let's say your son as the beneficiary or
whoever you want to be the beneficiary.
And then they would get all of that bitcoin upon
your death. I don't know if they currently allow you
(14:13):
to have a trust as a beneficiary, but if they
don't right now, I'm sure this is something that they're
probably working on as well as owning an account as
a trust.
But you can solve your problem now by taking your
Bitcoin from PayPal. You may have to sell it, girlfriend,
(14:33):
and pay whatever gains you have there and taking it
and putting that money unless you could do a transfer
of your Bitcoin from PayPal to Public.com if you like
them and then go from there, but I think it
solves your problem.
By simply doing a TOD account, name them as your beneficiary. Therefore,
(14:59):
it won't go through probate. If it went through your
will because it didn't have a beneficiary, they would have
to go through probate just so you know.
KT (15:10):
Next question is from Jill. Now, everybody, I'm gonna be
Suze for a moment. Take out your little Suze notebooks,
and I want you to remember these dates, especially if
you're like KT and Roth. Ready?
Hi, Suze and KT. Thank you for always keeping me educated.
I listened to your Roth five-year masterclass, as well as
(15:34):
the September 18th, '25 masterclass follow-up questions.
And I went back and listened to the February 18th,
'24 podcast on backdoor Roths and the pro rata rule. OK,
everyone got that date 9.18.25 and 2.18.24. And this is
(15:58):
why I want you to write it down. Jill says,
I still have questions, and I wrote, me too, Jill.
I've been contributing to a backdoor Roth for over 14 years.
My 2025 backdoor Roth contribution was made this year in April. Sadly,
(16:19):
my amazing dad passed away unexpectedly a few months ago.
I just found out I will be inheriting his
traditional IRA.
Suze (16:30):
I know where she's going.
KT (16:31):
Does the pro rata rule on backdoor Roth IRAs apply
to inherited IRAs?
Suze (16:38):
Pop quizzy?
KT (16:39):
I think the answer is no.
Suze (16:41):
Come on, KT, seriously think about it. You know that
when you have a traditional IRA,
traditional IRA in your name and you then do a
back door Roth.
KT (16:59):
But wait, here's the deal. It's inherited.
Suze (17:04):
Ding Ding Ding! I'm so proud of you.
KT (17:06):
No she from what you've told me in the past,
I remember it inherited means no, it's not applicable. But
then this next question, I don't know the answer.
Jill said, also as I pay taxes on the inherited
IRA over the next 10 years, can I put that
money in my Roth and continue making future backdoor Roth contributions?
Suze (17:29):
So I don't know how much you inherited from daddy.
But I have a feeling that you'll probably be withdrawing
more than $7,000 or $8,000 a year from there. So
the question becomes if you have earned income to the
amount that you are going to want to contribute to
your back door Roth, yeah, you could use that money
(17:52):
for that, but you have to have earned income. If
you don't have earned income, you cannot.
So you just can't use that money and count it
as earned income. Chances are
you might not have any earned income and so therefore, no,
you can't do it and you can't convert money just
so you know KT from an inherited traditional IRA to
(18:16):
a Roth. You cannot do that.
KT (18:18):
Because you didn't earn it yourself.
Suze (18:20):
No, because it's not your IRA to convert. It's an
inherited one, so you can't convert it.
There you go.
KT (18:29):
All right. Next question is from Belle. Hi, Suze and KT.
Thank you for your wonderful podcast. I am a 24-year-old
earning $100,000 a year. Last year, a family friend convinced
me to start working with a financial advisor.
Suze (18:48):
Why?
KT (18:48):
Well, hold on. However, a year later, I don't think
I
make enough to have an advisor. Do you think I
should stick with my advisor, or should I invest on
my own? If the latter, how can I transfer the
money to a new investment account without fees? First of all,
you're 24 years old, Suze, tell Belle what to do.
Suze (19:11):
Belle, let's see if I can get the ding dongs
out there.
That are telling you what to do out of your
mind and let's ring your "bell" so that you are
a winner.
A true winner. So you're telling me that you're 24
(19:31):
years old, earning $100,000 a year. You did not tell me, Belle,
how much money you are investing.
What do you have left to invest? At $100,000 a
year that you're earning, you absolutely qualify for a Roth IRA,
and hopefully you're working for a company that is offering
(19:55):
you a Roth 401k or a Roth 403B.
So all your retirement contributions should be into a Roth,
number one, for the rest of your life, by the way.
And you should have both a Roth retirement account at
work and a Roth IRA on your own. Now with
that said, there isn't that much money that you're going
(20:18):
to be putting into those two accounts. The Roth retirement
account at work you don't need a financial advisor for.
You're just going to be putting all that money probably
into a Standard and Poor's 500 index fund within there.
That's it.
Then the little money that you're doing as a Roth IRA,
the $7,000 a year, well, that you should be doing
(20:40):
into ETFs. Again, VTI, great ETF for you to do
or buy slices of little stocks that we have been mentioning.
Just that simple. So no, you do not need a
financial adviser, and you shouldn't even want a financial advisor
(21:01):
other than the absolute best financial advisor you will ever
find in your entire life, and that is the one
that you see when you look in the mirror, cause again, Belle,
another
favorite saying of mine is you are never powerful in
life until you are powerful over your own money, how
you think about it, how you feel about it, and
how you invest it, and nobody cares about your money
(21:23):
more than you do. And what happens to your money
directly affects the quality of your life, not this so-called
financial advisor's life. So you
might just want to give some advice to your friend
who told you that, what they should be doing cause
I have no doubt they are making a mistake as
well and what you have to do now is you
(21:46):
have to decide where do you want to open up
your Roth IRA or if you have an investment account,
where do you want to open that up? Maybe Charles Schwab,
maybe Public.com, maybe some place.
And you simply open up the account that you want.
They will contact your adviser or wherever your money happens
(22:07):
to be, and they will initiate a transfer, and it
will go from them directly into your account at where
you opened it up. You never even have to talk
or see that adviser again. If you don't want to, yes, KT, next.
KT (22:24):
All right, this is from KP.
Hi Suze, I'm 55, still working, and have been contributing
to my retirement plan through a Roth 401k for several years.
If I now open a Roth IRA as well, did
the five year clock begin when I opened my Roth 401k? Also,
(22:45):
do I need both?
Suze (22:47):
Listen to me closely, KP. The amount of time that
your Roth 401k is open,
means absolutely nothing in regards to the five year clock
with a Roth IRA. The only thing that starts a
(23:07):
Roth IRA time clock is a Roth IRA. So did
the five year clock begin when I opened my Roth 401k? No,
it did not.
Not for a Roth IRA. So do you need both? Oh,
you betcha you do. So you should open a Roth
(23:28):
IRA today to start that clock because there will come
a day when you want to take the money that's
in your Roth 401k.
And put it where? Into your Roth IRA.
And if you do so when you're over the age
of 59 and a half and that Roth IRA has been open for
(23:49):
at least 5 years, your penalty for the five year
time clock has been met, so you don't care at
that point. All the money is yours.
KT (23:59):
So Suze, why does a Roth 401k even have a
time clock?
Suze (24:04):
Oh, you are so smart. That is such a great question.
I can't even stand it seriously.
Because sometimes people have a Roth 401k and now they've
had it for like eight years at an old employer's place,
and now they're moving to a new employer that has
(24:26):
a Roth 401k and they want to transfer that money
from their old 401k to their new 401k. Now their
new 401k Roth takes on the time clock of the
old one.
So let's say they want to take money out of
their Roth 401k. That's when the five year time clock hits.
(24:49):
If it's still in a Roth 401k and maybe they
leave it there forever, that's when the time clock matters.
Because not everybody takes their money from their 401k.
And as a Roth IRA with it. Next question.
KT (25:04):
Next question, Suze is from Vivian. Hello, Suze. I'm a single
woman turning 60 in November, and I've been thinking about
taking a trip for the first time alone and thinking
perhaps Hawaii to celebrate this milestone.
Over the years my circle of friends has shrunk. Most
(25:25):
are married with husbands, kids, grandkids, and over the years
people just grow apart, I guess. Anyhow, I have the
means to travel and stay in a luxury resort if
I choose to. My question is this.
A nice luxury stay in Hawaii could run me approximately
$5,500 for five days. I have savings, but as a
(25:49):
single woman, I'm hesitant to dip into my savings. I
could use that money for home improvement or continue to
keep saving toward my future emergency retirement some day. I
live in California,
so there's plenty to do here as they live on
the coast, but the thought of going somewhere different sounds
(26:12):
refreshing too. From a financial standpoint, what's the wisest decision?
I'm my only source of income, so it's completely on
me to fund this trip.
Suze (26:26):
All right, KT pop quizzy. Should she or should she
not do this?
KT (26:31):
No, don't do it because you're not ready. She's not ready.
Suze (26:34):
She's ready emotionally. She absolutely is.
KT (26:37):
Financially, she said a financial...
You know, decision.
Suze (26:42):
Give me the reasons why you're denying her.
KT (26:44):
She said she might want to do some home improvement
on the house, use that money.
Suze (26:47):
But she said she has the means.
KT (26:51):
Don't do it. I don't think she should go. I
think she's going to feel guilty. She could get to Hawaii.
She should have lousy weather for a week, and then
she's going to say, I wasted $5,500.
Suze (27:03):
That's your reason?
KT (27:04):
You know what...
Suze (27:05):
Stop, stop, stop.
KT (27:07):
What do you think?
Suze (27:08):
You've got it right, but not for the right reasons.
She's afraid. She's hesitant. OK, all of those words. However,
she's her only source of income, but she said one
thing that did it for me, right? I could use
that money for a home improvement, OK, or
(27:30):
continue to keep saving towards my future emergency retirement some day.
She used the word emergency.
KT (27:39):
She doesn't have an emergency fund.
Suze (27:41):
She doesn't have, I don't think, a one year emergency fund.
KT (27:46):
So don't do it.
Suze (27:47):
The words emotionally everybody that should have given you pause were,
I'm hesitant to dip into my savings. But what's interesting again, KT.
This is where my theory that most people never ask
when you're asking permission to do something with money, not
(28:08):
you're asking, does the five year rule work da da
no when you're asking permission to spend money, you already
know the answer to that question, or you would not
ask me. You would know, and I want all of
you to know.
I want you to know your own thoughts. I want
(28:30):
you to ask yourself the question. How does it make
me feel? Does it make me feel a little bit afraid?
Does it not? How does it make you feel? And
if you have any hesitation whatsoever, don't do it, because remember,
once you do something, it is all already done. Last question, KT.
KT (28:51):
OK, this is a short one.
This is from Irene, she said. Please advise Suze. Our
mortgage is 3.125% with a balance of $50,000 with seven
years left. My husband is 68 and still works.
I'm 65 and I still work. We have the money
(29:13):
to pay off our home in full. Just wondering if
paying it off is wise since the rate is so low.
Your input is valued. Ask me a pop quizzy.
Suze (29:26):
Pop quizzy.
KT (29:27):
Pay it off.
Suze (29:28):
Why?
KT (29:29):
Because I think Irene would never feel as good as
owning her home outright. They're still young enough, they're working,
and it's $50,000. I think they should do it instead
of paying off seven years.
Suze (29:44):
Irene, here's what I want you to do so you
can answer this question on your own. I don't know
what your mortgage payment is, but you do. Let's just
say for fun. It's $1,000 a month. Let's just say
that's true. That's $12,000 a year.
The $50,000 that's in your account,
(30:07):
would have to earn what to make $12,000 a year
or $1,000 a month? It would have to earn 25%
a year,
to make that much money, so should you take $50,000
(30:28):
out to pay off your mortgage and save yourself $12,000
a year because in four years you would be able
to replace that money in your account, then you should
absolutely do it.
So once again, this is not a case of the
interest rate you even owning your home outright. It's also
(30:51):
a case of true financial intelligence. If your mortgage payment
was $100 a month and it's only going to save
you $1,200 a year, then you're better off keeping your
money invested, the $50,000, because it could easily make you
$4,000 a year.
(31:14):
So that's how you are going to figure out what
you should do in your particular situation, KT.
KT (31:21):
That's a wrap.
Suze (31:22):
I'm sure that somewhere we're getting closer to the United
States at this point in time as we are returning
to Florida. So our next podcast will be us back
in Florida.
Are you excited about that, KT?
KT (31:41):
Yeah, I am excited.
Suze (31:43):
Do you think we had a good time? We'll have to see.
KT (31:47):
We'll be on diets, no Halloween candy for you, Suze.
Suze (31:50):
Oh, here we go. All right, everybody. So until November 2nd.
When it will be a Suze School, just so you know,
there's only one thing that we want you to remember
in life, and that's this. Happy Halloween. All right, everybody,
bye bye. See you soon.
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