Ask KT & Suze Anything: Do The Trump Tariffs Mean It’s Time to Buy or Sell?

Summary

Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

Episode Title: Ask KT & Suze Anything: Do The Trump Tariffs Mean It’s Time to Buy or Sell?
Release Date: February 2, 2025
Host/Author: Suze Orman Media

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Introduction

The episode kicks off with an empowering chant led by Susie Orman:

"We are strong, we are wise. We will not apologize. We are here. We will thrive Together we will rise. We're the open of faith and everything it takes. We are strong, we are wise Together we will rise."
00:01

Following the introduction, KT and Katie warmly greet their audience, acknowledging the absence of Susie Orman on this episode and encouraging listeners to engage by submitting their questions via email or the Women & Money App.

Listener Questions and Responses

1. Navigating Divorce and Financial Independence

Listener: Juliana
Timestamp: 02:15

Question:
Juliana, married for over 40 years, is seeking advice on divorcing an abusive spouse, citing emotional, physical, verbal, and financial abuse that has severely impacted her health.

Response:
KT emphasizes Juliana's courage in leaving an abusive relationship and urges her to prioritize her happiness and security over the temptation to return. She states:

"What you need in your life is for you to be happy. ... have the courage and the faith in yourself to do what you know is right versus what's easy."
02:51

Katie adds support, highlighting Juliana's right to a fulfilling and free life after four decades of marriage:

"40 years, Juliana, you're at that age in your life where you deserve your final, you know, swan song to be the very best and to be happy and free and light."
04:33

2. Assessing Stock Investment Amid Tariffs

Listener: Steven
Timestamp: 05:11

Question:
Steven inquires whether the recent plummet in Whirlpool stock prices due to Trump's tariffs is a buying opportunity or a signal to hold back.

Response:
KT advises selling Whirlpool shares and diversifying into stocks like Verizon and Pfizer for higher dividend yields. She explains the impact of tariffs on Whirlpool's costs:

"The tariffs ... are going to impact their costs and everything like that. So that's why it went down."
05:29

She recommends reallocating investments to capture potential growth when the market recovers and mentions the tax benefits of such a move outside retirement accounts.

3. Condo Insurance Decisions

Listener: Nikki
Timestamp: 07:12

Question:
Nikki seeks advice on whether to maintain individual condo insurance policies or rely on the condo association's coverage.

Response:
KT clarifies the distinction between condo association insurance and individual unit insurance:

"If you have something go wrong in your apartment, it doesn't affect anybody else's apartment but my own, will the condo insurance cover it if I don't have individual insurance?"
09:48

She recommends retaining individual policies unless confirmed that the association's coverage fully protects personal units, emphasizing the importance of understanding policy specifics.

4. Roth IRA Conversion Timing

Listener: Ramona
Timestamp: 10:19

Question:
Ramona, recently retired, asks about the optimal timing to convert her 403(b) into a Roth IRA to minimize future taxes.

Response:
KT advises assessing whether the pension will suffice for living expenses. If the pension covers her needs, she can gradually convert her 403(b) to a Roth IRA to benefit from tax deferral and potential tax rate advantages:

"Little by little over these next few years, start transferring or converting the money to a Roth IRA."
11:14

However, if she needs the income, KT advises against the conversion to avoid unnecessary tax burdens.

5. Optimizing Dental Insurance

Listener: Brenda
Timestamp: 12:50

Question:
Brenda seeks recommendations for dental insurance that covers implants, crowns, and braces for her granddaughter without lengthy waiting periods.

Response:
KT and Katie advocate for dental savings plans over traditional insurance, highlighting significant savings and flexibility:

"You should go to dentalplans.com and check them out. I'm so glad. Bob Harris, thank you forever for introducing them to us."
14:59

They emphasize the cost-effectiveness and comprehensive coverage these plans offer compared to conventional dental insurance.

6. Managing House Ownership in a Trust

Listener: Hem
Timestamp: 16:33

Question:
Hem asks about transferring co-owned house ownership into a trust, particularly when co-owning with a brother without an existing trust.

Response:
KT explains that both co-owners must have individual trusts to facilitate the transfer:

"You cannot have a living revocable trust in just your name if your brother doesn't also have a living revocable trust."
17:29

She recommends that both parties establish trusts to enable joint asset management and succession planning.

7. Understanding Boomer Candy ETFs

Listener: Marianne
Timestamp: 18:49

Question:
Marianne is curious about Boomer Candy ETFs as a low-risk investment option for retirees amidst declining bond interest rates.

Response:
KT clarifies that Boomer Candy ETFs employ strategies like covered calls and options to limit downside risk but advises against them in favor of traditional investments:

"I'm not into these fancy things. ... I like just regular."
19:39

She suggests managing such strategies individually rather than through ETFs to maintain control and reduce complexity.

8. Choosing Between Traditional 401(k) and Roth IRA

Listener: Giselle
Timestamp: 20:31

Question:
Giselle wonders whether to contribute to her employer's traditional 401(k) with a 4% match or invest the matching funds into a personal Roth IRA.

Response:
KT recommends maximizing the 401(k) match first and then directing additional funds into a Roth IRA, balancing employer benefits with personal retirement planning:

"Do the traditional and get that 4% but only invest up to the point of the match. And then ... do a Roth IRA with the other part of that money."
20:52

9. Strategizing IRA Withdrawals in Retirement

Listener: Heather
Timestamp: 21:10

Question:
Heather seeks advice on whether to withdraw from her IRAs gradually each month or take a lump sum when the market is favorable.

Response:
KT advises prioritizing withdrawals from appreciating assets to maximize gains and suggests maintaining a portion of the IRA in a money market fund to mitigate market volatility:

"I would take it from the stocks or the ETFs that are the highest. Take it now while it's up."
21:27

She also underscores the importance of having liquidity to avoid disturbances from market fluctuations.

10. Ethical Division of Life Insurance

Listener: Alicia
Timestamp: 23:14

Question:
Alicia contemplates whether it is ethical to allocate 60% of her life insurance to her son, a single father struggling financially, and 40% to her daughter, who is doing adequately but comfortably, and whether she should discuss this decision with them.

Response:
KT and Katie advocate for open communication and flexibility in estate planning. They recommend discussing current allocations while remaining adaptable to future changes:

"Have a discussion with them right now ... and tell them you're open to as time goes on because you don't know when death occurs."
29:12
"If you were going to do something like that ... you would take the individual stocks that you own and you would sell covered calls on them."
30:00

They emphasize that ethical decisions in estate planning should consider both current needs and potential future circumstances, ensuring fairness and understanding among beneficiaries.

Conclusion

The episode wraps up with KT and Katie reiterating the importance of prioritizing people over money and maintaining strong personal relationships:

"People first, then money, then things."
33:14

Susie Orman’s empowering chant closes the session, reinforcing the theme of resilience and collective strength:

"We are strong, we are wise? We will not apologize? We are here? We will thrive? Together we will rise? We're the little bit of faith? And everything it takes? We are strong, we are wise? Together we will rise."
33:28

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Key Takeaways

• Prioritize Personal Well-being: Make decisions that enhance personal happiness and security, especially in challenging circumstances like divorce.
• Investment Strategy Amid Market Changes: Diversify investments in response to market shifts, such as tariffs affecting specific stocks.
• Insurance Choices: Understand the differences between association and individual insurance policies to ensure adequate coverage.
• Retirement Planning: Balance employer-sponsored plans with personal retirement accounts to optimize tax benefits and growth potential.
• Estate Planning: Communicate openly with beneficiaries and remain flexible to address evolving family dynamics and financial needs.

Notable Quotes

• KT on Courage in Divorce:

  "What you need in your life is the courage and the faith in yourself to do what you know is right versus what's easy."
  02:51

• Katie on Dental Savings Plans:

  "I always save over $1,000 for sure."
  15:56

• KT on Life Insurance Ethics:

  "Have a discussion with them right now ... and tell them you're open to as time goes on because you don't know when death occurs."
  29:12

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Additional Resources

• Women & Money App: Engage with past episodes, submit questions, and join community discussions by downloading the app from the Apple App Store or Google Play.
• Dental Savings Plans: Visit dentalplans.com for cost-effective dental coverage options.
• Must Have Documents Package: Secure essential legal documents at musthavedocs.com for streamlined estate planning.

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This episode of "Ask KT & Suze Anything" provides valuable insights into personal finance decisions, emphasizing the importance of informed choices, proactive planning, and maintaining open communication with loved ones. Whether navigating personal challenges or optimizing financial strategies, KT and Katie offer practical advice to empower listeners in their financial journeys.

Transcript

[Susie Orman]

We are strong, we are wise. We will not apologize. We are here. We will thrive Together we will rise. We're the open of faith and everything it takes. We are strong, we are wise Together we will rise.

[KT]

February 2, 2025 welcome, everybody, to the Women in Money podcast, as well as everybody smart enough to do what kt.

[Katie]

Well, wait. Tell them it's Sunday school and KT is here.

[KT]

Yes, but you needed to finish my line.

[Katie]

Smart enough to listen.

[KT]

That's my girl. Now, KT is here today because why? Because Thursday was so Susie school. Rather than ask KT and Susie anything.

[Katie]

And you all wrote in and said, where is she? We miss her. Put KT back. It's not the same without her.

[KT]

Now, I don't know if that's true because she's the one who reads a lot of the emails, but I bet it is on some level. Did you miss being here?

[Katie]

Yes. I missed myself on Thursday. Being on the Thursday.

[KT]

Yeah.

[Katie]

When I listen and I don't hear me, it's like, kt, where are you?

[KT]

You know what I would love all of you to do, by the way? If you want to ask a question, write into ask s u z e asksusypodcastmail.com and if KT chooses it, we will answer it and kind of haggle over it. Right, kt, A little bit. A little bit on this podcast. However, I did an experiment the other day and I was able to translate what I said in my voice into Spanish.

[Katie]

It was so great.

[KT]

So the question is, is anybody out there interested in hearing this podcast in Spanish? I'm just curious if. So you can go on the Women and Money community app and you can download it at Apple Apps or Google Play or send in any an email. Kt, what you got for me today?

[Katie]

Okay, my first question, it's a little bit. It's a little sad, but it's important. It's from Juliana. She said, hello, Susie, I'd like some advice. I've been married for over 40 years, but I'm getting a divorce. I'm separated at this time. The marriage was all about abuse. Emotional, physical, verbal, and financial gaslighting. I was close to having a stroke and a heart attack. Plus, stress is making this move the right direction. Susie, please reply.

[KT]

Oh, Juliana, it's. You know, I have this saying, and as you know, I have many sayings that you usually never ask a question that you don't know the answer to. Juliana, read the email that you sent me. Why in the world would you want to stay in a relationship that was financially, emotionally, psychologically, physically, in every possible way, abusive. You had the courage to separate from him. Now you have to be really courageous, do what it takes to divorce him. There's a tendency with women who are abused because, as you know, I work with many, many women who are abused in many ways, and it all starts, by the way with financial abuse. But anyway, the tendency is, no, I want to go back. He's not that bad. I can stay. He'll change. I need him to be happy. Now. What you need in your life is for you to be happy. What you need in your life is for you to be secure. What you need in your life is to be the powerful woman you were born to be. What you need in your life is simply the courage and the faith in yourself to do what you know is right versus what's easy. It's easy to go back and continue to suffer for the rest of your life. It's right for you not to do what's wrong.

[Katie]

I want to add one more thing.

[KT]

You can, my love.

[Katie]

40 years, Juliana, you're at that age in your life where you deserve your final, you know, swan song to be the very best and to be happy and free and light. So just go for it. I agree 100% with what Susie said.

[KT]

And if any of you are out there and were in the situation that Juliana was in, either post it on the Women and Money app or send in an email and we'll send them on to Juliana so she can feel your support. All right, kt.

[Katie]

Okay, next question's from Steven. Hello, Susie. Thank you for your advice this morning. I've been dollar cost averaging into Whirlpool and noticed it plummeted to about $109. Is this a buying opportunity or a time to hold back?

[KT]

Well, my dear Steven, you didn't see it then, obviously, on Friday when it plummeted to 1 $5 a share. But here's what you need to know. Why did that happen, in my opinion, especially on Friday, because of the tariffs that President Trump implemented on February 1st. And a lot of the white goods come from Mexico, and 20% for Whirlpool come from Mexico. So it's going to impact their costs and everything like that. So that's why it went down. So what would I do if I were you? I don't say this often, but I probably would sell, believe it or not, and I would probably diversify at this point in time into two stocks, Verizon as well as Pfizer. You'll actually get A higher dividend yield and you'll be able to buy. Let's just say you owned 100 shares of Whirlpool. And the price of Whirlpool right now, as you know, is 105. The price of Verizon is around 39. The price of Pfizer is around 29. You could buy 150 shares of each, keep your dividend a little bit higher. And when those stocks do eventually start to go, and one day I believe they will, you'll make back the money faster. And in the meantime, if it's outside of a retirement account that you've been dollar cost averaging, you can take that loss if you have one. All right.

[Katie]

Okay, Next is from Nikki. I picked this one, Susie, because I always think about this. For us, it said our condo association is voting on insurance. Should everyone have their own policy for the unit or not? Some believe they could cover any damage to another unit for less than the yearly premium. Do you have an opinion on this, Susie? I've carried my policy for 22 years and never used it. If I canceled and decided to go back on, the premium would be much.

[KT]

Higher if they even insure you at all.

[Katie]

And then Nikki said she understands both sides. So what do you recommend?

[KT]

So, Nikki, here's the thing. I'm a little bit confused. It's kind of hard to confuse me, don't you think, kt? Yeah, sometimes you can confuse me a lot.

[Katie]

I confuse her all the time.

[KT]

What's the main thing you confuse me over?

[Katie]

Oh my goodness. When she tells me something, if she's not really clear with that explanation, then I get very confused.

[KT]

So we're not just talking about finance and things like that? Oh, anything. She goes, well, what does that mean?

[Katie]

All right, so wait, answer Nikki's question.

[KT]

Sorry, I got.

[Katie]

Because we always talk about this for ourselves.

[KT]

Well, not really. Not this we talk about. Should we drop our insurance on our condo since it's 28,000 a year?

[Katie]

Unbelievable.

[KT]

For our 2,000 square foot apartment period in South Florida. South Florida hurricane self insurance. Because if you have one claim, they will drop you anyway.

[Katie]

So what should Nikki do?

[KT]

And so, just so you know, everybody, we are going to self insure. Nikki, there is a big difference between condo insurance that insures everything. It usually insures the condo building, the structure of the condo, the inside of the common areas of the condo. I don't know of a policy that insures individual units. The individual units. If you get damage for your inside of your condo, you have a leak, you have a little Fire in your condo and everything. I don't think I could be wrong, but I don't think that the condo insurance for the entire condo, which they have to carry, is going to take care of your individual units. So if it doesn't take care of your individual units and you don't have the money to self insure, then you need to keep a policy because you never know what can happen. However, please check and ask the question, simple question. If I have something go wrong in my apartment, it doesn't affect anybody else's apartment but my own, will the condo insurance cover it if I don't have individual insurance? Just look at what it will cover and what it won't and I think you'll find you're going to need your own individual policy.

[Katie]

Next kt okay, this is from. This is Ramona. But wait, Ramona wrote Southern Gal. That was her email. Southern Gal. So this is Ramona. Hi Susie. I'm single, 61 years of age and recently retired from 34 years in education. Let's congratulate her.

[KT]

Congratulations.

[Katie]

We love teachers. I have learned within the last few days that it may be in my best interest to move my 403 into a Roth IRA because of the future taxes I will have to pay on the 403. I'll be receiving my first pension check February 1st. What's the best time for me to make the move so that I will pay the least amount of taxes on the 403? She's very confused in terms of all these tax brackets. So what's your advice, Susie?

[KT]

My dear Ramona, listen to me. The very first question you need to ask yourself is, are you going to need any of the income from your 403 for you to live on? If the answer to that is yes, you are not to move a penny from the 403 into your Roth IRA because you need the income anyway. Therefore you're going to have to pay taxes on it. It makes no sense to do that. Okay. If, however, your pension is enough for you to live on and you do not need any of the money, and you don't think you're going to need any of the money for quite a while, if ever, because maybe it's enough for you to live on your pension, sooner than later you're going to be able to collect Social Security. So you may not have to take any money from the 403 for you to live on. Then little by little over these next few years, start transferring or converting the money to a Roth ira. Not because Tax brackets are going to go up because you're probably not going to be in that high of a tax bracket anyway. However. But because it's the smart thing to do, especially if you're not going to need that money. Therefore, that would be the only reason I would do it. If you are going to need that money, do not convert it to a Roth ira. All right.

[Katie]

Okay. My next question is from Brenda. And this is a category. You and I both love the dentist.

[KT]

I don't like my dentist. Actually, I love my new dentist.

[Katie]

Do you love your new dentist?

[KT]

I actually love my old dentist too.

[Katie]

You're like, you just like your dentist. We both do.

[KT]

I just don't like going to the dentist.

[Katie]

I love going. I love to get clean.

[KT]

What in the world do you love going for?

[Katie]

Cleaning. Cleaning.

[KT]

I don't know.

[Katie]

I always feel great when I, when I leave. And my teeth are real clean. Okay, so the question is, Susie, what is the best dental insurance for me that pays more for implants, for crowns and for most procedures and is there a dental insurance that will let me take, will let me cover my 10 year old granddaughter that pays for braces and then she wrote without waiting a year? So I don't understand why you have to wait a year.

[KT]

Because most dental insurance plans have a six month or a year waiting period for, you know, things that are already wrong. Right. So for pre existing things. So here's the thing. It is no secret that I don't like dental insurance. I don't like anything about it, to tell you the truth. Kt, first of all, the premiums are expensive. Second of all, they have a maximum of what in most cases they will cover. And also they usually have a six month waiting period. Right. And then if something goes wrong, they'll pay for it. But if something's wrong right now, they might not. What do I love? I love one thing and one thing only. And both KT and I have it. And that is a dental savings plan. What always amazed me when I first heard about this kt, do you remember from Bob Harris.

[Katie]

Yeah. We didn't know about it.

[KT]

I'm like, Bob, he was the CEO of dentalplants.com at the time. I was like, how's it possible that Susie Warman doesn't know about dental savings plans? How's that even possible? And then he started to explain it to me and then I just didn't believe it. It sounded like it was too good to be true.

[Katie]

Till we used it.

[KT]

Till we used one many times. Are you kidding? So Anyway, what you should do, my dear Brenda, is you should go to dental plans.com and there is where you will find dental savings plans that will cover all kinds of work. There's anywhere between, I don't know, a 10 to 60% savings on procedures. So there are ones out there that will cover obviously, braces, implants, all of those things, especially not just for you, but for your 10 year old granddaughter. You probably could get a family plan and I think the premiums may be at most $200 a year to get a membership versus $150 a month or whatever for dental insurance. Now both KT and I can tell you how much money you think you.

[Katie]

Save over, oh my goodness on crowns. I always save over $1,000 for sure.

[KT]

Right? Yeah.

[Katie]

And what about you, root canal?

[KT]

I. For some reason.

[Katie]

You just had a root canal.

[KT]

For some reason. In the past two years, I needed three root canals and I saved I think $1,200 on each one.

[Katie]

A lot of a lot.

[KT]

So do me a favor, just go to dentalplans.com and check them out. I'm so glad. Bob Harris, thank you forever for introducing them to us. And now to everybody listening because nobody really knows about them.

[Katie]

All right now, next question is from Hem. Hem.

[KT]

Oh, you're having a thing with names today.

[Katie]

I am. I picked a lot of these because I saw the name Hem. I don't know who hem is, if it's a man or a woman, but it's a hem. Hi kt. My question is how can I put my my house in my trust as I just purchased the must have documents package. I co own a house with my brother as joint tenants with the right of survivorship. Can I only put it in the trust if he passes first? Can't figure out how to do this within the trust package. Both of you are awesome. Keep it up for the people as we are super grateful.

[KT]

Super.

[Katie]

So, Hem, what does HEM do? First of all, great that you got the must have documents. All of us need them.

[KT]

Yes, we do. But hem. Hem, Hem. No, Here we go. Should we do a little song for Hem?

[Katie]

No, just Hem.

[KT]

Hem. All right. Hem. You cannot have a living revocable trust in just your name if your brother doesn't also have a living revocable trust. KT and I own things jointly. We both have individual trusts. So therefore. And they're both with joint tendency with right of survivor, the whole thing. Because we both have trust. Given that he does not have a trust, you cannot do that unless he gets a trust and by the way, you can share your must have documents with him for free. But if he doesn't want to do that, then you have to wait till he dies to be able to put it in trust.

[Katie]

But if he did open a trust with the must have documents that HEM is working with now, then they could do that. Right?

[KT]

Because it's both in trust.

[Katie]

Yeah. Great. All right, there you go. HEM. So next is from Marianne. Hi, Susan. Katie. Just heard a suggestion, I love this one. That boomer candy ETFs may be a low risk option for retirees to invest in as interest rates go down on bonds. Can you explain? Can you tell me what Boomer Candy is, Susie?

[KT]

Never heard of it before.

[Katie]

Yes. You know what it is?

[KT]

No, I have no idea.

[Katie]

She knows everybody, she knows everything, but I never heard of it. So when I picked this question, I wanted to know for myself, what the heck is a Boomer Candy and will I like it?

[KT]

It's a big lollipop.

[Katie]

No, what is a Boomer Candy?

[KT]

So Boomer, it is a great name, right? But Boomer candies are simply exchange traded funds that have all these strategies within them. They sell covered calls, they do options, they do these really kind of experience techniques, complicated techniques to keep the principal safe and sound so that you can get growth but not lose as much money. So they do covered calls. They're called.

[Katie]

Do you like them?

[KT]

Listen, I'm not into these fancy things. A lot of people like them. Me, I'm like just a good old fashioned gal and I like just regular.

[Katie]

Do you think I should?

[KT]

No, you are not doing an ETF like that.

[Katie]

No, a Boomer Candy.

[KT]

If you were going to do something like that, kt, you would take the individual stocks that you own and you would sell covered calls on them. You don't need an ETF to do that for you when I could do it for you. And, and I hate to tell you, we already do it on our own. Do you not know that?

[Katie]

I know that, but I just was wondering what the heck is Boomer Candy?

[KT]

Great.

[Katie]

Great name.

[KT]

So a lot of these were created because they really appeal to people who are near retirement. All right, anyway, go on Boomers.

[Katie]

Okay, next question is from Giselle. She said, hi, Susie. My company does not offer a Roth 401K, just a traditional 401K.

[KT]

Yeah.

[Katie]

Is it better to do a traditional with a 4% match or should I take that money and invest in my Vanguard Roth IRA?

[KT]

No, do the traditional and get that 4% but only invest up to the point of the match. And then if you qualify for it, income wise, do a Roth IRA on your own with the other part of that money. All right, next, kt.

[Katie]

So next is from Heather. She said, I'm retired, hubby works part time. We need to pull funds monthly from our IRAs. Should I be selling each month or do a big chunk when the market is up? Good question.

[KT]

I have to tell you, if I knew I had to take money out of my ira, assuming that everything you're invested in with in your IRA happens to be good quality and you love it, I would take it from the stocks or the ETFs that are the highest. Take it now while it's up. Those that are already down, maybe that gives it a chance to come back up. But you don't want to see things that are up if you have to take it go down. However, I just want to say this. If you know you need to take money from your ira, then the truth of the matter is it's really wise for you to have at least three years of that money in a money market fund within your IRA so that you're not affected by the ups and downs of the market. Just so you know. So you might want to think about that. All right, go on.

[Katie]

So the next question is from Alicia.

[KT]

Are you having fun on Sunday?

[Katie]

I am. Do you all like me being here with her?

[KT]

I'd like you being here with me. And that's the only thing that matters. Kt, do you know how difficult it is to sit down in front of a microphone alone, Alone, alone. Have absolutely no guests. Think about it. Everybody, all these other podcaster, they have guest after guest after guest.

[Katie]

They make a lot of small talk, right?

[KT]

Well, we make small talk, but that's kind of easy. To have a conversation to be the only one on is very, very difficult. So it makes it so much easier when you're here with me.

[Katie]

You bet it is, Susie.

[KT]

That's my girl. Next.

[Katie]

My next question is from Alicia. She said, hello, Susie and kt. My question is about investing and saving for retirement. My father recently passed and left me around $450,000. I have considered hiring a personal financial advisor at my bank to invest $250,000. He charges 1%. He said he would. Ready for this one, Susie? He said he would like to put $150,000 in a transamerica structured index annuity fund and invest the other $100,000 in various securities. I would like to understand this Transamerica annuity fund better. Is it a good Investment. Well, it's good for him. All right, there you go. I'm sorry, I didn't want to impose.

[KT]

Here's not Good, Alicia. Number one, is he going to charge you 1% that $150,000 that he's putting in a Transamerica structured index annuity fund, or because he's getting paid 3, 4, 5, 6 or 7 or 8% of that $150,000 to put your money in there? So is that 1% exempt from that? Is the 100,000 in various securities that he's getting 1% on? Does that mean that those are all securities without any commission as well? However, here's the bottom line. Let me tell you a little bit about the Transamerica structured annuity, since I happen to know about it, which is it's really just an index annuity that's attached to an index that you get a certain percentage. So your upside is limited. Your downside supposedly is limited as well. But here's the kicker. This particular annuity has for the first six years, just six years. All right, the first year, if you want to take out money, there's an 8% surrender charge. If you want to take out money the second year, there's still an 8% surrender charge. If you want to take money out the third year, there's a 7%, then it goes to 5%, then it goes to 4%, and then six years and beyond, no fee at all. Why do you want to put your money in something that limits your upside? Number one, it defers your money, meaning you don't pay taxes on it, but when you do take it out, you're going to pay ordinary income tax on it and there's a surrender charge. Why not just put your money in some of the ETFs that we talk about here on the Women in Money podcast, whether it's spy, vti, voo, or any of them, to tell you the truth. And they're all no loaded, which means you're not going to pay any fees to buy them. And number two, as they do go up, which they will, when you take money out anytime you want, as long as it's been in there a year, you're only going to pay capital gains tax on it. And if you leave this money to your beneficiaries in this annuity, they're going to have to pay ordinary income tax on whatever the gain happens to be. If you leave it to them via ETFs and just a regular account, they get a step up in basis. So here's the bottom line. Run, don't walk away. All right.

[Katie]

You don't need him.

[KT]

No, I don't think she does. No.

[Katie]

All right, that's a wrap for me, Susie.

[KT]

Well, it's a wrap for you, but I do have a quizzy.

[Katie]

Oh, okay. I'm ready. Even on Sunday.

[KT]

On Sunday.

[Katie]

Okay. I get a quizzy Sunday.

[KT]

Right. So we're going to go to church right now.

[Katie]

All right.

[KT]

But I chose this because it really touched my heart because as all of you know, I really do scan the emails. I don't know which one she's going to pick, but every time I see one that touches my heart, I either answer it directly and or I choose it. For K's Quizzy. Hi, guys. She says love your podcast and would like to thank you for the heart you put into your conversations as well as your advice. I have a simple question. I am a widow with two grown children. Now listen carefully, Katie and everybody, because this quizzy isn't just for Katie. How would you answer it as well? My daughter is married to a wonderful man and they are financially going to be okay. My son is a single father of three boys and has struggled with money since the boy's mom passed away four years ago. My question would it be ethical to divide my life insurance policy 60% to give to him 40% for my daughter or to give him even a little more? If so, should I discuss it with them? I think my late husband would agree and we would probably go ahead with this. Would love your opinion on this financial and more important for me, this ethical question. So just think about it, everybody. And Katie, you think about it as well. You're the daughter of this woman. You're married to a wonderful man, but you're just doing financially okay. Not sure. Right. But just financially okay. So we don't know what could happen in the future. How would you feel if your mommy died and left more to your brother than to you? Just think about it before you say what you think this woman should do. Oh, you should see her little face. What would you do?

[Katie]

So, Susie, I did think about this, and I think what's important is what she said in the email. Absolutely. Discuss this with them now with the son and the daughter now, because I think the daughter could very well be hurt if mommy dies and she sees that 60% of her life insurance policy was left to the brother and only 40 to her instead of a 50. 50. So I think it's really important that they have the conversation.

[KT]

Yeah, first, first.

[Katie]

And I do think yes, she absolutely should give her son more.

[KT]

All right, so ding, ding, ding, ding.

[Katie]

Ding, kind of, kind of ding, ding, ding.

[KT]

Because there's more to it than that though. Kt.

[Katie]

What's that?

[KT]

All right, so here's what I would tell you to do. Have just like KT said, have a discussion with them right now, but also tell them you're open to as time goes on because you don't know when death occurs, if death was going to occur tomorrow, then yes, I would like to split it 60, 40 or 70, 30. And I'm sure your daughter will say, absolutely, Mommy. You know, my brother has kids, he's not doing well emotionally. Lost his wife. I get that, mommy. In fact, maybe you leave it all to him. But let's just say because I don't know how old Sandy happens to be. Okay, Is that Sandy who wrote this email, by the way? Sandy, let's say 10 years from now, 15 years from now, all of a sudden your daughter is the one that isn't doing well. Maybe she got sick, maybe her husband got sick, maybe they spent all their money on medical bills. But now your son has remarried, flourishing, and everything is great for him. So whenever making a plan, everybody, it's a plan for today. But five years from now, 10 years from now, situations may change and if they change, then you have to change it as well, Sandy. So you never know, maybe 10 years from now you'll leave it all to your daughter and none to your son. So have a talk with them now, tell them if things change in the future, so will this. But it's not just your life insurance policy, it's how about your other assets as well. And the real question to you is do you have everything set up to pass to them in a way that's financially easily and beneficial to them? Do you have a living revocable trust? Do you have an advance directive and durable power of attorney for health care? Do you actually have a will and everything? Do you, Sandy? Because it's more than just a life insurance policy. For those of you, you should go to musthavedocs.com take a look at the must have docs there. $99 for over $2,500 worth. A state of the art documents that you can share with any of the members of your family telling you you all should look into it. And that includes you, Sandy.

[Katie]

All right, I agree with that. I think that's really important.

[KT]

Well then you want to give me.

[Katie]

A ding ding, ding, ding, ding, ding, ding, ding ding.

[KT]

Whose ding is cuter? Ready let's try.

[Katie]

Ready?

[KT]

Ding, ding, ding, ding, ding, ding, ding, ding.

[Katie]

That was pretty. That was very harmonious.

[KT]

Just like our relationship.

[Katie]

Yes.

[KT]

All right. Okay, everybody, that is a wrap. So there's only one thing that we want you to remember when it comes to your money, and it's what KT.

[Katie]

People first, then money, then things.

[KT]

And if you do that, stay strong and stay safe and stay healthy. Hopefully. Hopefully, together we will rise?

[Susie Orman]

We are strong, we are wise? We will not apologize? We are here? We will thrive? Together we will rise? We're the little bit of faith? And everything it takes? We are strong, we are wise? Together we will rise?