Hello everybody. Welcome to the Women and Money podcast, and everyone's smart enough to listen on February 13th featuring KT and Suze.

Hello everybody. Welcome to the Women and Money podcast, and everyone's smart enough to listen on February 13th featuring KT and Suze.

What year, what year KT?

What year, what year KT?

What do you mean what year? Everyone knows it's 2025.

What do you mean what year? Everyone knows it's 2025.

There we go. We now know what year.

There we go. We now know what year.

All right, so we have an exciting, I mean, what a week so far. Super Bowl was unbelievable, kind

All right, so we have an exciting, I mean, what a week so far. Super Bowl was unbelievable, kind

of, right? I can't believe that the Kansas City Chiefs lost, so let's not talk about it.

of, right? I can't believe that the Kansas City Chiefs lost, so let's not talk about it.

So Suze, it's still a special day today.

So Suze, it's still a special day today.

What makes this day so special?

What makes this day so special?

You know why...

You know why...

I do...

I do...

Come on, whose birthday is it Suze?

Come on, whose birthday is it Suze?

So actually this is a birthday of a kind of strange birthday because it's Julie

So actually this is a birthday of a kind of strange birthday because it's Julie

and Laurie,

and Laurie,

Julie and Laurie's birthday is today, right? Don't you love that?

Julie and Laurie's birthday is today, right? Don't you love that?

I do.

I do.

And she will too.

And she will too.

So anyway, we want to wish you that.

So anyway, we want to wish you that.

Happiest of birthdays we are so happy that you are in our lives and that we're kind of becoming one, so to speak, but anyway, have

Happiest of birthdays we are so happy that you are in our lives and that we're kind of becoming one, so to speak, but anyway, have

a great

a great

happy birthday

happy birthday

eat ice cream but leave some room for the chocolates because tomorrow is what Suze?

eat ice cream but leave some room for the chocolates because tomorrow is what Suze?

(Suze makes kissing sounds)

(Suze makes kissing sounds)

What is that?

What is that?

I'm kissing

I'm kissing

you.

you.

Tomorrow is Valentine's Day, and for any of you that don't have a Valentine, I'm looking at one right here that has so much love to share. She's gonna spread it all over the world tomorrow.

Tomorrow is Valentine's Day, and for any of you that don't have a Valentine, I'm looking at one right here that has so much love to share. She's gonna spread it all over the world tomorrow.

Wait, let's ask everybody, will you

Wait, let's ask everybody, will you

be our Valentine?

be our Valentine?

Wouldn't that be great if we had tens of thousands of people being our Valentines and we're theirs?

Wouldn't that be great if we had tens of thousands of people being our Valentines and we're theirs?

When, when you were a kid in school, did you, uh, make like little Valentine envelopes and they would pin them on the wall and everybody would bring Valentine's and put them in and like mine was always overflowing.

When, when you were a kid in school, did you, uh, make like little Valentine envelopes and they would pin them on the wall and everybody would bring Valentine's and put them in and like mine was always overflowing.

I bet everybody wanted you to be their Valentine.

I bet everybody wanted you to be their Valentine.

Did you do that when you were a kid? No, they didn't do that in your school.

Did you do that when you were a kid? No, they didn't do that in your school.

The

The

only thing that I remember about Valentine's Day that I loved more than anything was the little Valentine hearts that had those little sayings on them,

only thing that I remember about Valentine's Day that I loved more than anything was the little Valentine hearts that had those little sayings on them,

a little candy candy hearts.

a little candy candy hearts.

I loved those so much. I can't even tell you. All right, KT though.

I loved those so much. I can't even tell you. All right, KT though.

What questions? And by the way, everybody, as KT told you this is ask, did you say it was Ask KT and Suze anything? I'm not

What questions? And by the way, everybody, as KT told you this is ask, did you say it was Ask KT and Suze anything? I'm not

sure you did. I did. Women and Money podcast,

sure you did. I did. Women and Money podcast,

but that's different than if it anyway, it doesn't matter, but

but that's different than if it anyway, it doesn't matter, but

this is Thursday. They all know it's Ask KT

this is Thursday. They all know it's Ask KT

anything and I'll ask Suze, and she'll answer.

anything and I'll ask Suze, and she'll answer.

Oh God,

Oh God,

here we go. For those of you who want to write in a question to ask Suze, S U Z E podcast at gmail.com and if...

here we go. For those of you who want to write in a question to ask Suze, S U Z E podcast at gmail.com and if...

If KT chooses it, we will ask and answer it on the air. OK, go on, KT.

If KT chooses it, we will ask and answer it on the air. OK, go on, KT.

My first question is from Benjamin. I like that name. Benjamin

My first question is from Benjamin. I like that name. Benjamin

Benjamin,

Benjamin,

yeah, that's how you say it in Spanish, Benjamin, Benjamin.

yeah, that's how you say it in Spanish, Benjamin, Benjamin.

So Benjamin said Suze, my mom gave me the Young, Fabulous and Broke book as a teenager. I am now 35. It was my first financial book ever, and that book changed my life. I am so grateful to you, Suze.

So Benjamin said Suze, my mom gave me the Young, Fabulous and Broke book as a teenager. I am now 35. It was my first financial book ever, and that book changed my life. I am so grateful to you, Suze.

And then he said, luckily I found your podcast during the 2020 COVID crisis, and I've been looking forward to your new episodes every week in addition to having the must have documents, and Alliant savings account and the Women and Money app. So Benjamin, you're getting a big applause. She wants you to be her Valentine.

And then he said, luckily I found your podcast during the 2020 COVID crisis, and I've been looking forward to your new episodes every week in addition to having the must have documents, and Alliant savings account and the Women and Money app. So Benjamin, you're getting a big applause. She wants you to be her Valentine.

I'm so, so this is a little backstory and then a question. Benjamin said my partner of six years and I eloped this past September 2024. We both have good jobs. I work in finance at the Mayo Clinic, and he is an ER doctor with a stable income.

I'm so, so this is a little backstory and then a question. Benjamin said my partner of six years and I eloped this past September 2024. We both have good jobs. I work in finance at the Mayo Clinic, and he is an ER doctor with a stable income.

How should we go about combining our finances? I understand the percentage ratio based off income, but should we open a credit card together or a checking account? So that's the first question. The second is, should Taylor and I sign up for term life insurance if we don't plan to have children? Suze, we appreciate you so much.

How should we go about combining our finances? I understand the percentage ratio based off income, but should we open a credit card together or a checking account? So that's the first question. The second is, should Taylor and I sign up for term life insurance if we don't plan to have children? Suze, we appreciate you so much.

He didn't say Suze and KT.

He didn't say Suze and KT.

Yeah, he said Suze and KT, but I just said Suze because you, you're the one that taught him everything.

Yeah, he said Suze and KT, but I just said Suze because you, you're the one that taught him everything.

I love that you both eloped. I think that

I love that you both eloped. I think that

we kind of did, right?

we kind of did, right?

No, we didn't elope. We just, um, took advantage of a great opportunity when we got married. We had a day off and we were in South Africa and we learned at a luncheon that South Africa had no laws, rules, or objection to any kind of union.

No, we didn't elope. We just, um, took advantage of a great opportunity when we got married. We had a day off and we were in South Africa and we learned at a luncheon that South Africa had no laws, rules, or objection to any kind of union.

Yeah, there was no differentiation in the year 2010.

Yeah, there was no differentiation in the year 2010.

Before it was

Before it was

legal in America, so we said let's go do it and we did. It was great. We had a fun wedding.

legal in America, so we said let's go do it and we did. It was great. We had a fun wedding.

Here's

Here's

the thing, KT, what would you say to Benjamin? Should he have joint credit cards and a joint checking account?

the thing, KT, what would you say to Benjamin? Should he have joint credit cards and a joint checking account?

He and Taylor noticed that we have separate accounts

He and Taylor noticed that we have separate accounts

And we even have separate credit cards.

And we even have separate credit cards.

Yeah, we have separate everything, um, but I think what they are looking to do is to figure out the best way as a couple, as a family, a married family

Yeah, we have separate everything, um, but I think what they are looking to do is to figure out the best way as a couple, as a family, a married family

to pay for things and use, you know...

to pay for things and use, you know...

But he says he understands the percentage amount. So Benjamin, here's what I would say to you.

But he says he understands the percentage amount. So Benjamin, here's what I would say to you.

Pay things according to the percentage amount which is something you understand so remember everybody it's never about equal amounts of money it's about equal percentages and if you don't know what I mean by that, look it up on the community app and go to the podcast that I talk about that in however, personally I would not

Pay things according to the percentage amount which is something you understand so remember everybody it's never about equal amounts of money it's about equal percentages and if you don't know what I mean by that, look it up on the community app and go to the podcast that I talk about that in however, personally I would not

join credit cards. I would each have your own individual credit cards as well as checking accounts when we say that everything is separate, everything is separate between us except real estate which is in joint tenancy that's it.

join credit cards. I would each have your own individual credit cards as well as checking accounts when we say that everything is separate, everything is separate between us except real estate which is in joint tenancy that's it.

So and cars and cars right and so...

So and cars and cars right and so...

But the boat is Suze's.

But the boat is Suze's.

But the boat is mine, but I don't have to worry about is she balancing her checkbook? Is she overdrawn? Is she not? Everything we're both independent responsible for our own accounts that way in case it doesn't work out. I'm not saying that but just in case then it's so much easier.

But the boat is mine, but I don't have to worry about is she balancing her checkbook? Is she overdrawn? Is she not? Everything we're both independent responsible for our own accounts that way in case it doesn't work out. I'm not saying that but just in case then it's so much easier.

Because how many times have I heard a case where you had a joint checking account and one of the spouses wiped it clean, one of the spouses charged up the credit cards galore.

Because how many times have I heard a case where you had a joint checking account and one of the spouses wiped it clean, one of the spouses charged up the credit cards galore.

And then just took off and the remaining spouse was responsible for it and on and on and on so therefore that's what I would tell you in terms of term life insurance especially since Taylor is it Taylor KT yeah especially since Taylor is an emergency room doctor, he knows very well that life is very fragile.

And then just took off and the remaining spouse was responsible for it and on and on and on so therefore that's what I would tell you in terms of term life insurance especially since Taylor is it Taylor KT yeah especially since Taylor is an emergency room doctor, he knows very well that life is very fragile.

So term life insurance isn't necessarily just for the kids it's you have to put yourselves in the situation that if you were to die, Benjamin today or if Taylor were to die today, would you be OK financially if both of you would be OK financially then really there's no need to get term insurance, however, I have to say at 35 years of age.

So term life insurance isn't necessarily just for the kids it's you have to put yourselves in the situation that if you were to die, Benjamin today or if Taylor were to die today, would you be OK financially if both of you would be OK financially then really there's no need to get term insurance, however, I have to say at 35 years of age.

You could get a million dollars term life insurance, maybe $5 million for 50 $100 whatever a month, and given that you're making a nice sum of money, I would do it just to do it because you just never know. Congratulations, my dear Benjamin. All right, KT next.

You could get a million dollars term life insurance, maybe $5 million for 50 $100 whatever a month, and given that you're making a nice sum of money, I would do it just to do it because you just never know. Congratulations, my dear Benjamin. All right, KT next.

OK, next is from Joanne. She said, Suze.

OK, next is from Joanne. She said, Suze.

Thank you Joanne.

Thank you Joanne.

Thank you so much for your podcast. I'm a female 57 who has had multiple sclerosis for over 30 years. I was 25 when I was diagnosed.

Thank you so much for your podcast. I'm a female 57 who has had multiple sclerosis for over 30 years. I was 25 when I was diagnosed.

I am a teacher on disability and I receive $3000 a month. When my younger son turns 21, it will drop to $2500 for the rest of my life. They still allow me to work with a limit to my earnings as a substitute teacher. I don't have much in my 403B because I didn't contribute for years when I started subbing.

I am a teacher on disability and I receive $3000 a month. When my younger son turns 21, it will drop to $2500 for the rest of my life. They still allow me to work with a limit to my earnings as a substitute teacher. I don't have much in my 403B because I didn't contribute for years when I started subbing.

Bottom line, any good advice for me and my family would be greatly appreciated. My husband has a good 401k that his company matches. We just bought our first home last year, finally, God bless you both, and we're gonna say right back at you, Joanne. God bless you too.

Bottom line, any good advice for me and my family would be greatly appreciated. My husband has a good 401k that his company matches. We just bought our first home last year, finally, God bless you both, and we're gonna say right back at you, Joanne. God bless you too.

Here's the bottom line truthfully, it's not how much money you have.

Here's the bottom line truthfully, it's not how much money you have.

It's more important, what are your expenses, because if your expenses can be very, very low.

It's more important, what are your expenses, because if your expenses can be very, very low.

Then you don't need as much income. It's not about how much money you make. It's what are the expenses that you have that you may need more money to pay. You said the key here, which is you finally bought a home last year.

Then you don't need as much income. It's not about how much money you make. It's what are the expenses that you have that you may need more money to pay. You said the key here, which is you finally bought a home last year.

So the question becomes did you do it with a 30 year mortgage or a 15 year mortgage because in 30 years, God willing, you'll be 87 years of age that's a long time to have to be paying a mortgage. 15 years from now you would only be 72, which is 1 or 2 years younger than we are right now.

So the question becomes did you do it with a 30 year mortgage or a 15 year mortgage because in 30 years, God willing, you'll be 87 years of age that's a long time to have to be paying a mortgage. 15 years from now you would only be 72, which is 1 or 2 years younger than we are right now.

So what I would be doing if I were you.

So what I would be doing if I were you.

Any extra money if you can afford this, any extra money that you make, and I think as a teacher that's getting the teacher disability, I think you're allowed depending on where you live to make anywhere between $15,000 and $25,000 per year, so not bad. Maybe you're making besides the $2500 a month for the rest of your life when your son turns 21.

Any extra money if you can afford this, any extra money that you make, and I think as a teacher that's getting the teacher disability, I think you're allowed depending on where you live to make anywhere between $15,000 and $25,000 per year, so not bad. Maybe you're making besides the $2500 a month for the rest of your life when your son turns 21.

Then maybe you're making another 2000 a month or something like that plus whatever your husband is making and whatever is in his 403B account. So the question becomes, are you better only contributing up to the point of the match in your husband's 403B.

Then maybe you're making another 2000 a month or something like that plus whatever your husband is making and whatever is in his 403B account. So the question becomes, are you better only contributing up to the point of the match in your husband's 403B.

Because the truth of the matter is you're not in a very high tax bracket. I have a feeling, and taking that extra money and putting it towards what the mortgage on your home so that by the time you really do have to stop working, you own your home outright.

Because the truth of the matter is you're not in a very high tax bracket. I have a feeling, and taking that extra money and putting it towards what the mortgage on your home so that by the time you really do have to stop working, you own your home outright.

If you own your home outright, your disability check, plus whatever your hubby will be getting in Social Security, plus the money that's in the 403B.

If you own your home outright, your disability check, plus whatever your hubby will be getting in Social Security, plus the money that's in the 403B.

Will probably serve you very, very well. So your key is to reduce any possible fixed expenses that you have so they're not there by the time you retire.

Will probably serve you very, very well. So your key is to reduce any possible fixed expenses that you have so they're not there by the time you retire.

And that will help you dramatically. That is my advice to you. All right,

And that will help you dramatically. That is my advice to you. All right,

OK, it seems like I'm on a retirement theme today, so Ellen asks, hi Suze, I'm retiring in July and I'm finding myself quite anxious about it. People get scared when they retire, Suze.

OK, it seems like I'm on a retirement theme today, so Ellen asks, hi Suze, I'm retiring in July and I'm finding myself quite anxious about it. People get scared when they retire, Suze.

They get really nervous, so here's what she said I had planned to take my pension in a lump sum, approximately $450,000 mainly because I feel it can grow much more than receiving it monthly.

They get really nervous, so here's what she said I had planned to take my pension in a lump sum, approximately $450,000 mainly because I feel it can grow much more than receiving it monthly.

I believe it would be around $3000 a month or slightly higher between that and my Social Security, I would hardly need to draw from my investments except for large expenses, but I keep going back and forth. What should I do? I really appreciate

I believe it would be around $3000 a month or slightly higher between that and my Social Security, I would hardly need to draw from my investments except for large expenses, but I keep going back and forth. What should I do? I really appreciate

all the advice you have given me all of these years, you are a blessing boy Suze, you're getting a lot of blessings today. OK, what's your advice for Ellen?

all the advice you have given me all of these years, you are a blessing boy Suze, you're getting a lot of blessings today. OK, what's your advice for Ellen?

Here's the thing. Katie just handed me Ellen, your email. Now everybody, you have to get this when you write a long email, we're not gonna tell all the facts and figures that you've written. We may not even read it when it's too long.

Here's the thing. Katie just handed me Ellen, your email. Now everybody, you have to get this when you write a long email, we're not gonna tell all the facts and figures that you've written. We may not even read it when it's too long.

So KT just highlighted what your question happens to be, but as I'm reading your email to myself right now, you only use the word I feel I max out every year. You do not say we anywhere. You do not mention anywhere in this email that you have a partner meaning a spouse. You say that you're going to get a $3000 a month pension.

So KT just highlighted what your question happens to be, but as I'm reading your email to myself right now, you only use the word I feel I max out every year. You do not say we anywhere. You do not mention anywhere in this email that you have a partner meaning a spouse. You say that you're going to get a $3000 a month pension.

And I have a feeling that because you didn't say it was a 100% joint in life and survivor benefit, which means if you die, your partner gets that, you're probably taking a life only pension which gives you the highest amount.

And I have a feeling that because you didn't say it was a 100% joint in life and survivor benefit, which means if you die, your partner gets that, you're probably taking a life only pension which gives you the highest amount.

But it also means that upon your death, because you probably have nobody to leave it to because it can only be a spouse truthfully in most cases, that $3000 would absolutely go away.

But it also means that upon your death, because you probably have nobody to leave it to because it can only be a spouse truthfully in most cases, that $3000 would absolutely go away.

So that's something one has to take into consideration.

So that's something one has to take into consideration.

That 3% or $36,000 a year is an approximate 8% a year return on a $450,000 investment.

That 3% or $36,000 a year is an approximate 8% a year return on a $450,000 investment.

Right, which would be your lump sum.

Right, which would be your lump sum.

What's interesting about that, even though that's totally taxable to you.

What's interesting about that, even though that's totally taxable to you.

And even though there isn't a cost of living increase on it.

And even though there isn't a cost of living increase on it.

It's not like it will go down either. It's not like you will have any risk to that money at all.

It's not like it will go down either. It's not like you will have any risk to that money at all.

Now remember, if you take a lump sum and you roll it over to an IRA so it's not taxable to you.

Now remember, if you take a lump sum and you roll it over to an IRA so it's not taxable to you.

Even if you just assumed a conservative 5% return on your money, that's gonna generate for you about $1800 a month.

Even if you just assumed a conservative 5% return on your money, that's gonna generate for you about $1800 a month.

$1200 a month, approximately less than the $3000 from your pension.

$1200 a month, approximately less than the $3000 from your pension.

And that's without depleting your principal. Now maybe you could get a 7% return which would give you about $2600 a month, but you have to remember, Ellen, those returns are not guaranteed.

And that's without depleting your principal. Now maybe you could get a 7% return which would give you about $2600 a month, but you have to remember, Ellen, those returns are not guaranteed.

The $3000 a month return is guaranteed for your life, for your life. Now of course we could take into consideration inflation and what that will make that $3000 but who cares about that? because truthfully you have other investments that could make up for that as well.

The $3000 a month return is guaranteed for your life, for your life. Now of course we could take into consideration inflation and what that will make that $3000 but who cares about that? because truthfully you have other investments that could make up for that as well.

So it depends. Do you feel capable of investing $450,000 to generate income for yourself? What if you had taken the $450,000 a few years ago and interest rates were down to 0.06%, 0.01%?

So it depends. Do you feel capable of investing $450,000 to generate income for yourself? What if you had taken the $450,000 a few years ago and interest rates were down to 0.06%, 0.01%?

The markets weren't doing so great. Do you see what I mean, Ellen? So there are things you can't always assume you're gonna make a 4 or 5% return on your money or more unless you put it in like a 20 or 30 year treasury bond or something like that.

The markets weren't doing so great. Do you see what I mean, Ellen? So there are things you can't always assume you're gonna make a 4 or 5% return on your money or more unless you put it in like a 20 or 30 year treasury bond or something like that.

The thing that you also have to consider, and I know I'm going long here but that's because I think you need to know and many people listening are in this situation is that when you do an IRA roll over with it.

The thing that you also have to consider, and I know I'm going long here but that's because I think you need to know and many people listening are in this situation is that when you do an IRA roll over with it.

You're going to have to start doing required minimum distributions sooner than later, and you do not say anywhere in here how old you currently are. Therefore, I don't know how many years you are away from RMDs, and when you start taking required minimum distributions out, the balance most likely in your IRA starts to go down and down and down.

You're going to have to start doing required minimum distributions sooner than later, and you do not say anywhere in here how old you currently are. Therefore, I don't know how many years you are away from RMDs, and when you start taking required minimum distributions out, the balance most likely in your IRA starts to go down and down and down.

So you can't count on always having $450,000 in there. So what should you do when I don't know what to do.

So you can't count on always having $450,000 in there. So what should you do when I don't know what to do.

I kind of do both. What do I mean by that? You could take a lump sum, go over into an IRA with it, and within the IRA you could possibly purchase an annuity with half of it, like $225,000 in income annuity that gives you a guaranteed income for the rest of your life and invest the other.

I kind of do both. What do I mean by that? You could take a lump sum, go over into an IRA with it, and within the IRA you could possibly purchase an annuity with half of it, like $225,000 in income annuity that gives you a guaranteed income for the rest of your life and invest the other.

But if you're confident in managing your investments, then probably the lump sum would be a better would be a better choice. But if you value your security over growth and don't want to take any market risk, then the pension might be better. But if you're still undecided, you can do a partial annuitization strategy like I just said.

But if you're confident in managing your investments, then probably the lump sum would be a better would be a better choice. But if you value your security over growth and don't want to take any market risk, then the pension might be better. But if you're still undecided, you can do a partial annuitization strategy like I just said.

Anyway, now you know. How is that KT?

Anyway, now you know. How is that KT?

I like that you do both. I like that it's kind of like a win-win, you know, when you're not quite, well, you're not quite sure what her...

I like that you do both. I like that it's kind of like a win-win, you know, when you're not quite, well, you're not quite sure what her...

Honestly, if I probably had to choose one or the other, and I can tell you, and I had nobody to leave money to didn't matter nieces, nobody, dogs, pets, anything, nobody, nothing, no KT, I would probably take the pension, especially because she has other money invested.

Honestly, if I probably had to choose one or the other, and I can tell you, and I had nobody to leave money to didn't matter nieces, nobody, dogs, pets, anything, nobody, nothing, no KT, I would probably take the pension, especially because she has other money invested.

She has a 403B. She has a Roth. She has all of those things that she's maxed out every year, so she already has a portion of money, and she said in here that the $3000 a month.

She has a 403B. She has a Roth. She has all of those things that she's maxed out every year, so she already has a portion of money, and she said in here that the $3000 a month.

Plus Social Security, she won't have to touch the other money, and she's quite anxious. So therefore...

Plus Social Security, she won't have to touch the other money, and she's quite anxious. So therefore...

She wouldn't

She wouldn't

be anxious, just living on what she knows she has.

be anxious, just living on what she knows she has.

So that's what I would do if I were her, but she has to decide.

So that's what I would do if I were her, but she has to decide.

Our next question is from Renee. Hello, Suze and KT.

Our next question is from Renee. Hello, Suze and KT.

Hello Renee.

Hello Renee.

I have a quick question.

I have a quick question.

My father passed away last year. I'm helping my mother with her finances. I'm reading that the Securities Investor Protection Corporation, is that SIPIC and that's what you call it SIPIC, uh, protects IRA and brokerage accounts up to $500,000. So for protection it would seem that we should spread the money between at least two financial institutions. What is your opinion?

My father passed away last year. I'm helping my mother with her finances. I'm reading that the Securities Investor Protection Corporation, is that SIPIC and that's what you call it SIPIC, uh, protects IRA and brokerage accounts up to $500,000. So for protection it would seem that we should spread the money between at least two financial institutions. What is your opinion?

Should that be your quizzy?

Should that be your quizzy?

Yeah, well, I'm just trying to figure out here how much money she has to separate it because she doesn't want to exceed the SIPIC half a million dollar, right? Yeah, I think you, I think she doesn't really have to do that. I mean she can do that, but you don't have to do that if you make us the other one another beneficiary.

Yeah, well, I'm just trying to figure out here how much money she has to separate it because she doesn't want to exceed the SIPIC half a million dollar, right? Yeah, I think you, I think she doesn't really have to do that. I mean she can do that, but you don't have to do that if you make us the other one another beneficiary.

That's for

That's for

FDIC insurance.

FDIC insurance.

OK do it

OK do it

separate it.

separate it.

No. (Suze makes the wrong answer noise)

No. (Suze makes the wrong answer noise)

Oh, don't, I don't.

Oh, don't, I don't.

Don't separate. Alright, what should she do?

Don't separate. Alright, what should she do?

So the truth of the matter is, Renee, most of our money is in one financial institution, even though it's two separate accounts. So here's what you need...

So the truth of the matter is, Renee, most of our money is in one financial institution, even though it's two separate accounts. So here's what you need...

My account is a lot smaller than Suze's.

My account is a lot smaller than Suze's.

Ah yeah.

Ah yeah.

I'd say so, but it's still a seriously large account. Yeah. Are you proud of that? Did you ever think you'd have that much money?

I'd say so, but it's still a seriously large account. Yeah. Are you proud of that? Did you ever think you'd have that much money?

Yeah, I actually did. I always thought I would be

Yeah, I actually did. I always thought I would be

a multimillionaire, yeah, when I was very young, I don't know why I always thought that I would, it wasn't something I strived to do as an artist, you know, you never, everyone calls it a starving artist, but I never did. I never did. I always thought, wow, I could do what I love and really be very successful and good at it, so I was.

a multimillionaire, yeah, when I was very young, I don't know why I always thought that I would, it wasn't something I strived to do as an artist, you know, you never, everyone calls it a starving artist, but I never did. I never did. I always thought, wow, I could do what I love and really be very successful and good at it, so I was.

OK, not me, but all right, I never in a million years thought.

OK, not me, but all right, I never in a million years thought.

You never thought you'd be anything more than a waitress,

You never thought you'd be anything more than a waitress,

That's right.

That's right.

So it's like, so you really lucked out.

So it's like, so you really lucked out.

I did, didn't I?

I did, didn't I?

Anyway, what you need to know, Renee, is that why it's true, SIPIC covers um $500,000 per customer.

Anyway, what you need to know, Renee, is that why it's true, SIPIC covers um $500,000 per customer.

And I believe it's a limit of $250,000 for cash also that's held in your account. All the brokerage firms have what's called Excess SIPIC insurance like, and I'll just tell talk about Schwab for right now because a lot of you have accounts at Schwab. Schwab, it's excess insurance is purchased from the Lloyd's of London.

And I believe it's a limit of $250,000 for cash also that's held in your account. All the brokerage firms have what's called Excess SIPIC insurance like, and I'll just tell talk about Schwab for right now because a lot of you have accounts at Schwab. Schwab, it's excess insurance is purchased from the Lloyd's of London.

And they have an additional coverage that provides protection for securities and cash KT up to an aggregate of $600 million. So for everybody, if you have an account at Schwab in the unlikely event that the firm goes broke.

And they have an additional coverage that provides protection for securities and cash KT up to an aggregate of $600 million. So for everybody, if you have an account at Schwab in the unlikely event that the firm goes broke.

It will cover your money, but if you have money that you invested.

It will cover your money, but if you have money that you invested.

And the money has gone down in value. It does not cover you for market losses. You just have to know that, OK, so there you go. All right, KT next.

And the money has gone down in value. It does not cover you for market losses. You just have to know that, OK, so there you go. All right, KT next.

So, from Judith, hi ladies, can you explain how I determine if capital gains applies when selling a stock if I keep value cost averaging to a position? We all learned about that last Sunday.

So, from Judith, hi ladies, can you explain how I determine if capital gains applies when selling a stock if I keep value cost averaging to a position? We all learned about that last Sunday.

I have an account with Fidelity, and if I sell it just asks a dollar amount, not which shares to sell by date. I understand I don't want to sell the shares I bought within a year to avoid ordinary income.

I have an account with Fidelity, and if I sell it just asks a dollar amount, not which shares to sell by date. I understand I don't want to sell the shares I bought within a year to avoid ordinary income.

Thank you so much. So what should Judy do?

Thank you so much. So what should Judy do?

I'm so tempted to say KT when...

I'm so tempted to say KT when...

like one of the questions from last Sunday, when is it best that lump sum investing performs better for you when a stock does what?

like one of the questions from last Sunday, when is it best that lump sum investing performs better for you when a stock does what?

When it rises, when it's on the rise.

When it rises, when it's on the rise.

That's my girl!

That's my girl!

Yeah, I learned all that, everybody.

Yeah, I learned all that, everybody.

So Judy, here's what you need to know. Since your account is at Fidelity, I happen to know that by default, Fidelity, when you put in an order.

So Judy, here's what you need to know. Since your account is at Fidelity, I happen to know that by default, Fidelity, when you put in an order.

And it asks for a dollar amount, it defaults to a FIFO method.

And it asks for a dollar amount, it defaults to a FIFO method.

What's that?

What's that?

I

I

knew

knew

you

you

were gonna say that.

were gonna say that.

No, what, what's, what is that method?

No, what, what's, what is that method?

FIFO

FIFO

FIFO sounds like somebody's dog. What is it?

FIFO sounds like somebody's dog. What is it?

It is, right? FIFO means, KT, first in and first out.

It is, right? FIFO means, KT, first in and first out.

So the oldest shares, which were the first ones you bought are the first ones to be sold. So Fidelity automatically does that for you and it's just that simple.

So the oldest shares, which were the first ones you bought are the first ones to be sold. So Fidelity automatically does that for you and it's just that simple.

So she was worried about

So she was worried about

that.

that.

So you don't have to be worried about that because when you put in a dollar amount and that's all it's asking you for at Fidelity, they're going to sell your oldest shares first. OK, next.

So you don't have to be worried about that because when you put in a dollar amount and that's all it's asking you for at Fidelity, they're going to sell your oldest shares first. OK, next.

All right, this is from Rae. Dear KT and Suze, quick question. I hope it's quick. I just realized we've been charged what's called a record keeping fee for my husband's 401k. It's a non Roth. This account has

All right, this is from Rae. Dear KT and Suze, quick question. I hope it's quick. I just realized we've been charged what's called a record keeping fee for my husband's 401k. It's a non Roth. This account has

roughly $360,000 ready, Suze. This really makes me mad and the fee was $152 for this month. $1200 total last year. Is this high?

roughly $360,000 ready, Suze. This really makes me mad and the fee was $152 for this month. $1200 total last year. Is this high?

They shouldn't even have to pay it, right?

They shouldn't even have to pay it, right?

Well, the truth of the matter, what's happening here, KT, if it was 1200 last year and now it's, you know, $150 a month this year, so 8, it's that's 8 that's

Well, the truth of the matter, what's happening here, KT, if it was 1200 last year and now it's, you know, $150 a month this year, so 8, it's that's 8 that's

crazy.

crazy.

So wait.

So wait.

It's making her really mad, everybody. So tell Rae what's

It's making her really mad, everybody. So tell Rae what's

Yes it's high. It's absolutely high. Rae so you can't avoid it if you're going to participate in the 401k. All right, now that is like a 0.51% fee. That's a lot. It's a lot, you know, usually it's 45 to 80%, but that's why you might just want to contribute up to the point of the match.

Yes it's high. It's absolutely high. Rae so you can't avoid it if you're going to participate in the 401k. All right, now that is like a 0.51% fee. That's a lot. It's a lot, you know, usually it's 45 to 80%, but that's why you might just want to contribute up to the point of the match.

In the 401k and then go and open up a Roth IRA and contribute the rest there or whatever it may be however what your husband should do.

In the 401k and then go and open up a Roth IRA and contribute the rest there or whatever it may be however what your husband should do.

Is go and ask his employer if they allow partial distributions. What does that mean? Many 401ks allow you to take up to either 50% of the value that's in there, sometimes only $50,000 and do a rollover with it if you want into an IRA rollover, all right.

Is go and ask his employer if they allow partial distributions. What does that mean? Many 401ks allow you to take up to either 50% of the value that's in there, sometimes only $50,000 and do a rollover with it if you want into an IRA rollover, all right.

If you were to do that, you would bring down the balance of the account that is in there and therefore that fee of about 0.5%, OK, is now being charged on less money because it's out of there.

If you were to do that, you would bring down the balance of the account that is in there and therefore that fee of about 0.5%, OK, is now being charged on less money because it's out of there.

And so that's what I would do if I were you. OK, all right.

And so that's what I would do if I were you. OK, all right.

It's horrible they charge that much.

It's horrible they charge that much.

Yeah, it's funny. The very last thing that Rae says is that there's no way to roll over this money until he quits his job, correct? Ask if the company allows a partial distribution.

Yeah, it's funny. The very last thing that Rae says is that there's no way to roll over this money until he quits his job, correct? Ask if the company allows a partial distribution.

OK, I have one more question. I really like this one. It's from Laurie because I know we're over so ready, this is a short question.

OK, I have one more question. I really like this one. It's from Laurie because I know we're over so ready, this is a short question.

I hear when it comes to the financial health of our economy we look at the 10 year treasury. Suze, could you please explain this? But I want you to explain it to Laurie because she also said she's been an avid fan of the podcast learning so much and becoming more of an investor every day. Congratul yeah, good for you, Laurie. So answer her question.

I hear when it comes to the financial health of our economy we look at the 10 year treasury. Suze, could you please explain this? But I want you to explain it to Laurie because she also said she's been an avid fan of the podcast learning so much and becoming more of an investor every day. Congratul yeah, good for you, Laurie. So answer her question.

And then we'll give it a wrap, but I want her to have her question answered.

And then we'll give it a wrap, but I want her to have her question answered.

Yeah, a lot is dependent on the 10 year treasury. It influences mortgages. You've heard me say that before corporate bond, all kinds of things, borrowing costs, debt, everything raises the interest rates on credit cards, so our economy is influenced by are you buying a house.

Yeah, a lot is dependent on the 10 year treasury. It influences mortgages. You've heard me say that before corporate bond, all kinds of things, borrowing costs, debt, everything raises the interest rates on credit cards, so our economy is influenced by are you buying a house.

Are you not are corporations borrowing money so that they can grow more? All those things matter. Also one of the main indicators of are we a healthy economy or are we in a recessionary economy that's to come is something called the inverted yield curve.

Are you not are corporations borrowing money so that they can grow more? All those things matter. Also one of the main indicators of are we a healthy economy or are we in a recessionary economy that's to come is something called the inverted yield curve.

And we talked about this a lot, and this is where the 2 year treasury rate is compared to the 10 year treasury rate and if the 2 year rate is higher than the 10 year rate.

And we talked about this a lot, and this is where the 2 year treasury rate is compared to the 10 year treasury rate and if the 2 year rate is higher than the 10 year rate.

Then that is a strong predictor that a recession is coming, which is the economy, so people watch the 10 year for all of those reasons, right? So when rates go up, remember borrowing becomes more expensive and then that slows down growth and bonds become more attractive, which could affect the stock market as well.

Then that is a strong predictor that a recession is coming, which is the economy, so people watch the 10 year for all of those reasons, right? So when rates go up, remember borrowing becomes more expensive and then that slows down growth and bonds become more attractive, which could affect the stock market as well.

But that is why everybody watches the 10 year because it's involved in so many of those indications. All right, so you're ready for your quizzy?

But that is why everybody watches the 10 year because it's involved in so many of those indications. All right, so you're ready for your quizzy?

You gave me quizzy already.

You gave me quizzy already.

What was your quizzy?

What was your quizzy?

You gave me one.

You gave me one.

Did you get it right?

Did you get it right?

No, I didn't. Why give me one and see if I get

No, I didn't. Why give me one and see if I get

it right?

it right?

No, we'll see. If you feel that way, I'll save this one. Do you want me to save it? Yes, because are you done.

No, we'll see. If you feel that way, I'll save this one. Do you want me to save it? Yes, because are you done.

Yeah, it's Valentine's Day tomorrow. I don't want to quizzy.

Yeah, it's Valentine's Day tomorrow. I don't want to quizzy.

Oh, that's so sweet because you don't want me to go... I know here's your quizzy, right? How much does Suze love you?

Oh, that's so sweet because you don't want me to go... I know here's your quizzy, right? How much does Suze love you?

More than all the money in the

More than all the money in the

world

world

Ding ding ding ding ding ding.

Ding ding ding ding ding ding.

Although it's not, that's not how I would have answered the question.

Although it's not, that's not how I would have answered the question.

How would you answer?

How would you answer?

More than all the molecules and atoms in the world?

More than all the molecules and atoms in the world?

Yeah, but this is a money show.

Yeah, but this is a money show.

How unromantic.

How unromantic.

Not a science show.

Not a science show.

All right, we'll see how unromantic I am tomorrow, everybody.

All right, we'll see how unromantic I am tomorrow, everybody.

Do you have something planned?

Do you have something planned?

Yes.

Yes.

You do?

You do?

Yes.

Yes.

Really?

Really?

Yes, you'll have to wait and see.

Yes, you'll have to wait and see.

Do I?

Do I?

No.

No.

How do you know?

How do you know?

Because you just never do.

Because you just never do.

I write you the most exquisite...

I write you the most exquisite...

That's different, but that's not something planned like something we're gonna do.

That's different, but that's not something planned like something we're gonna do.

Anyway, tomorrow's Valentine's Day, everybody, so

Anyway, tomorrow's Valentine's Day, everybody, so

have

have

a sweet one!

a sweet one!

And there's only one thing that we want you to remember, and it's this

And there's only one thing that we want you to remember, and it's this

people first,

people first,

then money,

then money,

then things.

then things.

Now you stay safe. See you soon. Bye bye.

Now you stay safe. See you soon. Bye bye.