Ask KT & Suze Anything: How Can I Get A "Mega" Retirement Account?

Summary

Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Episode: Ask KT & Suze Anything: How Can I Get A "Mega" Retirement Account?
Release Date: July 24, 2025
Host: Suze Orman Media

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I. Introduction and Birthday Celebrations

The episode opens with a warm and celebratory tone as KT and Susie Orman acknowledge KT’s birthday week, extending greetings to multiple July-born friends and listeners. The hosts share personal anecdotes and heartfelt messages, fostering a sense of community and connection with their audience.

Notable Quote:
Susie Orman [01:32]: "We are strong, we are wise we will not apologize we are here we will thrive Together we will rise."

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II. Listener Stories: Jen's Testimonial

A poignant testimonial from Jen underscores the profound impact Suze Orman’s advice has had on her life. Jen recounts how Suze’s guidance helped her and her late partner establish essential legal documents, providing a measure of stability following her partner’s tragic suicide. This story highlights the life-changing value of financial preparedness and the emotional support Suze offers her listeners.

Notable Quote:
Jen [04:41]: "Your straight talk, deep care, and unwavering insistence on financial clarity have helped so many of us live strong, freer lives."

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III. Q&A Session

The core of the episode revolves around Suze Orman addressing various listener questions, offering tailored financial advice grounded in her extensive expertise.

A. Amber's 401k and Roth IRA Questions

Question:
Amber seeks clarity on the differences between Roth contributions and post-tax contributions within her 401k plan, and which option suits her best.

Suze's Response:
Suze explains the distinctions between pre-tax, Roth, and post-tax contributions. She advises maximizing Roth 401k and IRA options for tax-free growth and outlines the potential for additional after-tax contributions to build a "mega" retirement account, provided the plan allows for it.

Notable Quote:
Susie Orman [12:08]: "That's how people get what's called a mega retirement account. They keep doing this and then they transfer it to their Roth 401k and before you know, they have two million seriously in their Roth 401k."

B. Linda's Advance Rent Payment Question

Question:
Linda, recently retired with a substantial investment portfolio, contemplates paying her rent two to three years in advance using a work bonus.

Suze's Response:
Suze strongly advises against prepaying rent, emphasizing potential risks such as the landlord’s unforeseen circumstances. She recommends keeping funds liquid and investing them instead to ensure financial flexibility and security.

Notable Quote:
Susie Orman [15:12]: "You could do better things with that money. It's such a waste of money. I cannot even and tell you."

C. Donna's Must-Have Documents Inquiry

Question:
Donna owns a living revocable trust and considers purchasing Suze’s "Must Have Documents" package at a special rate, questioning the process of transferring her existing trust.

Suze's Response:
Suze clarifies that existing trusts cannot be directly transferred into the Must Have Documents program. She advises recreating the trust within the program for ease of future updates and stresses the importance of having up-to-date legal documents.

Notable Quote:
Susie Orman [20:30]: "Chances are what you are going to have to do if you want to do that is when you get the must have docs, you're going to essentially start all over."

D. Joni's IRA Beneficiary Naming

Question:
Joni seeks advice on whether her IRAs should be titled in the name of her trust or herself and whether to name beneficiaries directly or through her trust.

Suze's Response:
Suze advises that IRAs must remain individual accounts and should not be titled in the name of a trust. She recommends naming a spouse as the primary beneficiary, followed by children or the trust as contingent beneficiaries, depending on individual circumstances.

Notable Quote:
Susie Orman [23:28]: "If you are married, your spouse absolutely should be your primary beneficiary on any of your retirement accounts."

E. Ginny's Credit Card Holder Concerns

Question:
Ginny is concerned about her husband being the primary account holder of their credit cards, especially post-retirement when their income is lower, and contemplates applying for a new card in her name.

Suze's Response:
Suze confirms that credit cards are canceled upon the primary account holder's death, rendering authorized users unable to use the cards. She encourages Ginny to apply for a new credit card in her name based on her creditworthiness rather than income, suggesting secured credit cards if needed.

Notable Quote:
Susie Orman [24:00]: "The amount of income you have isn't really that important. What they're really looking at is have you been responsible with your bills, is it a good credit score."

F. TJ's Daughter's Debt Management

Question:
TJ shares her struggle with her 22-year-old daughter, who has accrued $15,000 in credit card debt after refinancing her car against TJ’s advice and seeks Suze's guidance.

Suze's Response:
Suze recommends maintaining a firm stance by not assisting her daughter financially, believing that experiencing the consequences of her debt is essential for her to learn financial responsibility.

Notable Quote:
Susie Orman [25:55]: "Do exactly what you have been doing. ... the only way she's going to get it is by letting her suffer. Period."

G. Tina's Roth IRA from Former Employer's 401k

Question:
Tina, a 57-year-old nurse, wants to open a Roth IRA using funds from a former employer’s 401k and is unsure whether to roll it over to her current employer’s plan or proceed differently.

Suze's Response:
Suze advises Tina to consider the tax implications of rolling over the entire amount at once. She suggests a staggered rollover to manage tax liabilities effectively and recommends opening a Roth IRA with a brokerage firm for the transfers.

Notable Quote:
Susie Orman [26:42]: "If you have less than $20,000 in your former employer's 401k... I would convert or roll $10,000 this year into a Roth IRA."

H. Chad's Hiring an Investment Professional

Question:
Chad, aged 59, is contemplating hiring an investment professional to manage his retirement savings, questioning whether the fees (1.1% to 1.5%) are reasonable compared to self-managing his S&P 500 mutual funds.

Suze's Response:
Suze cautions against hiring expensive asset managers who may not outperform the S&P 500 index. She emphasizes the importance of evaluating an advisor’s track record and suggests that unless the advisor can demonstrably exceed the index returns, self-managing might be the more financially prudent choice.

Notable Quote:
Susie Orman [29:02]: "Very few asset managers truly can outperform the Standard and Poor's 500 index... unless you find a manager who can beat the 500 index."

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IV. Conclusion and Reminders

The episode wraps up with Suze and KT reiterating important offers and reminders for listeners. They emphasize the limited-time pricing for the Must Have Documents package and encourage proactive financial management. The hosts conclude with an empowering message about making money work effectively in the current year.

Notable Quote:
Susie Orman [32:09]: "This is the year to do what KT? Make your money, make more money."

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V. Final Thoughts

This episode of Women & Money is rich with practical financial advice tailored to real-life scenarios faced by listeners. Suze Orman’s straightforward and compassionate guidance empowers individuals to make informed decisions about retirement planning, debt management, investment strategies, and essential legal documentation. The combination of personal storytelling and expert Q&A makes the content both relatable and highly informative for anyone seeking to enhance their financial well-being.

Transcript

[KT]

Hey everyone, it's KT here and I'm reminding you to take advantage of the most amazing offer from alion. It's the 4.30 APY certificate that you.

[Susie Orman]

Can open now, right now, good for 12 months. All you have to do is go to myalliant.com, that's m y a l l I a n t dot com online. You can sign up for it or right then and there. And again, 4.30 for a 12 month certificate. That's APY annual percentage yield and if you put amounts of 75,000 or more in, it is 4.35 APY. Go on, do it. Because I don't know when this will no longer be available. Come on, don't miss it. 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. July 24, 2025. Welcome everybody to the Women and Money podcast as well as everybody smart enough to listen today. We are so lucky to have the birthday girl.

[KT]

This is the birthday week, not just for me, but we've got so many July babies. We have Laurie Seligman, one of Susie's fabulous, fabulous friends.

[Susie Orman]

Oldest friends, really oldest, yes.

[KT]

We have Alex, our incredible horseman.

[Susie Orman]

Alex Axela. Alex. Happy, happy birthday to you. He's such an incredible young man, isn't he?

[KT]

Yeah. He jumps over those fences with those beautiful horses.

[Susie Orman]

He could dance. He got boat captain, an airplane pilot. So great, so great. I contribute that to his mother, Bridget, but that's besides the point. All right.

[KT]

And his poppy.

[Susie Orman]

Poppy Michael.

[KT]

Yeah.

[Susie Orman]

Mike. Axel. What an incredible man as well.

[KT]

We had the best time. My sister and I want to thank all of you that sent beautiful notes, especially on the wall. I couldn't believe it. It like over like a hundred messages. So beautiful. And we, we're glad we made you all laugh too. Susie posts these things that I could kill her for doing, but what she posted was very funny. So those of you that haven't seen it, go to the wall on the Women in Money app and enjoy a good chuckle.

[Susie Orman]

Yeah, they all said they wish they had a sister. They wish they could laugh like you. It's like so kt, you truly do light up this whole world.

[KT]

Thank you, Susie.

[Susie Orman]

Right?

[KT]

And Susie's gift was yet again, almost 25 years of gifts, almost the most incredible heartfelt. I haven't shared it with anyone and my sister asked if I could share it with Her. I said, not yet. Maybe when we're in Canada fishing or when we're on a plane. It's a video, but it's very personal. And so Susie was unplugged and raw. Raw. She looked right into the camera, no makeup, no glasses, nothing, and told me what she thought and felt and wanted me to know. I'm going to cry if I keep thinking about it. So let's move on. And I will one day share that.

[Susie Orman]

All right, so today is Ask KT and Susie anything. And this is where you can Write in to asksuse. S u z dashepodcastmail.com you can ask a question there. Now, thousands come in, but if KT chooses it, it will be on this podcast. And as many of you know, I do scan them and I will answer you personally if I think it warrants it. All I ask is don't write me your entire financial situation and ask me, are you okay? Don't do that. That's not what this is about. This is about asking questions, really, that you want to know, but that would also help everybody else who's listening. And when you make it so personal, do I have 50,000 here, 10,000 here. I have this and that. I have four kids. We're not going to choose it, just so you know. All right, Ms. Travis, what do you have?

[KT]

But I did choose something. That isn't a question that I'd like to start today with. And it's always in the subject area. This is what always attracts my attention. This subject said with gratitude from someone you helped more than you'll ever know. And her name is Jen. And I want to read this and share it with all of you. Dear Susie, thank you for the woman you are and the life changing guidance you've shared with millions. Your straight talk, deep care, and unwavering insistence on financial clarity have helped so many of us live strong, freer lives. As I listened to your podcast about the Must have Documents, I was struck again by how deeply you impacted not only my life, but the life of my late partner. From the moment we met in 1996, she was already a devoted fan. By the time the Susie Orman show became part of our weekly routine in 2002, we were both hooked. Grateful students soaking up every hard truth and every ounce of your wisdom. Because of you and your books at the time, we had everything in place. Wills, power of attorney, advance directives, beneficiary designations, the works. And when I lost her to suicide in late 2003, those documents, those systems you urged us to have gave me something close to a soft landing, as much as that's even possible. Without them, I can't imagine how much harder that would have been. Sad, right?

[Susie Orman]

Yeah. But true. Yeah.

[KT]

It's been nearly 22 years since then, but she gave me wings. And I've done my best to fly. I've built businesses grown in purpose, and today I find myself assisting a financial advisor licensed in life insurance and annuities.

[Susie Orman]

Uhoh.

[KT]

While I haven't yet sold a policy, as I've solely been focused on assisting, the experience has been educational. I can hear your voice in my head.

[Susie Orman]

You just did. Oh. Ready?

[KT]

Here's what Jen wrote. She said, rightly skeptical of the products, pushed too hard for commission's sake. When I mentioned your name to my boss, his reaction only made it clearer to me. I'd read rather be you than him every single time. You've inspired me again. This time to begin planting seeds for something of my own. A service for LGBTQ individuals and chosen families to help them take those same essential steps my partner and I did all those years ago to help them feel safe, informed, and empowered. Thank you, Susie, for everything you gave us back then and everything you continue to give now. With all my heart, Jen.

[Susie Orman]

You know, Kate, that's sweet. I love that. But I have to tell you, you know, I said I scroll through these, and I found that.

[KT]

Oh, you wrote to her.

[Susie Orman]

And I wrote her. Jen, if you're listening right now, you now have the email that if you just reply to, will come directly to me. Right? But what's important is in your endeavor to help those who really somehow feel like they're left out. And as time goes on, they're being more. More left out. Truthfully, that. Write me if you need help or you just want another wing to help you fly a little more, know that I am that wing for you. So always feel free to write me directly. All right, There you go.

[KT]

Okay, I'm gonna follow that heartfelt email with one of my favorite topics of all time. Can you guess? Susie Roth. This is from Amber. She said. Hi, susie. My employer's 401k offers 3opt and will contribute up to 4% of the match. Pre tax, Roth and post tax. I'm confused. I thought the Roth option was post tax. What's the difference between a Roth contribution and a post tax contribution? Thank you for all you do and fish on kt. Nice birthday haul.

[Susie Orman]

That was a nice birthday haul.

[KT]

That's a nice birthday.

[Susie Orman]

We've now had it for lunch, for dinner, for the whole thing. Amber. By the way, we love your name Amber because KT and I love that amber color, color. Beautiful. I have little bracelets of amber that I wear. I just love them. I always think it means money. Just so you know. So anyway, I hope you have lots of money. Amber, here's the thing, all right? You are correct. There are three different types of employer sponsored plans. Obviously, a 401k pre tax means you fund it with money you've never paid taxes on. It grows and it grows and it grows. And when you go to withdraw it, you're going to pay taxes on everything that you withdraw. Just that simple. A Roth 401K. You fund it with after tax contributions. And as that money grows and grows and grows, when you go to take it out later on, following certain rules, it's 100% tax free, including its earnings. All right, There is something known as you said, as post tax contributions. Now all of you know that there are certain limits that you can put in to a 401k or 403b or whatever it may be that you're contributing to. Under 50, it's $23,500. For those of you who are 50 or older, it's $7,500 in addition, so that's another $31,000 total. And for those of you who happen to be between the ages of 60 and 63, you can put in an additional $11,250. That includes that $7,500. And so you have ways to get money in there. But above those limits, in a pre tax 401 plan, you can put in after tax contributions up to $70,000 in total. I'll get to that in a second. 77,500 if you're 50 or older, and that's $81,250. If you are 62, 63. Now, it goes into a special sub account within that 401k. What's interesting about post tax contributions is those contributions are free when you withdraw them. However, the earnings on Those contributions are 100% taxable unless your plan allows you to do a transfer from that sub account to your 401k Roth account at that corporation. So you have to ask. Now, KT's looking at me a little confused. So you want me to give you an example, right?

[KT]

Please.

[Susie Orman]

She said please. My favorite. Well, you brought the topic up, KT. So listen, let's say you're under 50, all right? Don't you wish?

[KT]

Do you wish. No, give me the example.

[Susie Orman]

Oh, Sorry. Sorry. All right, so if you Defer, let's say $23,500 and let's say your employer matches $4,500. Now just so you all remember, always the employer contribution goes into a pre taxed 401 because they want the tax write off even if you are doing a Roth 401. But anyway, $23,500 in a pre tax 401, your employer matches that $4,500. So that's a total of $28,000. So you could take that $28,000, subtract it from the $70,000, allowed KT to be totally put into that account that year and contribute up to $42,000 in additional after tax contributions into your pre taxed 401k that will be held in a sub account for you. So remember, however, not all 401ks offer this, so you need to ask and just check on it. But that's how it works. That's how people get what's called a mega retirement account. They keep doing this and then they transfer it to their Roth 401 and before you know, they have to millions in seriously their Roth 401k.

[KT]

So which of the three is best for Amber?

[Susie Orman]

I don't know. I don't know how much money she has, but let's just say she's just has the typical amount. Right. Obviously she should be doing a Roth 100% a Roth with her money. And then I would also be doing a Roth IRA if you qualify and then if you have extra money. So put it in a pre tax 401k at work as your after tax post contributions.

[KT]

Okay, there you go, Amber, Susie, next question says hi Susie, thank you so very much for helping my wife and I get our finances back on track. My question during these volatile times. Ready? Listen to this carefully, Susie. Should we pay our rent two to three years in advance? This money is a bonus from my work. We have 600,000 in a diversified investment portfolio per your recommendations. We are 73 and 70. And then it says, yep, we went off the rails in our 50s, recovered in our 60s, and here we are recently retired and want to postpone taking any investment income till 2028. I love the ending of this email. It says biscuits and hugs, Linda, Biscuits and hugs.

[Susie Orman]

That's because she loves biscuits.

[KT]

I love biscuits.

[Susie Orman]

So no, Linda, you are not to do that. And let me tell you why. Rent, right? What does that mean? Rent?

[KT]

No, because she wants to pay two to three years in advance rent.

[Susie Orman]

Do you Think I did not listen to you carefully? You told me to listen to you.

[KT]

Carefully because of the word rent. As soon as I saw that, I said, don't do it.

[Susie Orman]

Well, there you go. That's your answer. Why shouldn't she do it?

[KT]

Kt, anything could happen to you and your partner, and you've paid three years in advance of rent. It's not even your property.

[Susie Orman]

But that's not the only reason.

[KT]

All right, let's see. There's a whole lot of reasons.

[Susie Orman]

Give me another.

[KT]

You could do better things with that money.

[Susie Orman]

Give me another. Who is she paid rent to?

[KT]

I don't know.

[Susie Orman]

The landlord.

[KT]

Yeah.

[Susie Orman]

What could happen to the landlord?

[KT]

Landlord could be gone.

[Susie Orman]

It could be gone. They could sell. They could have an accident. They could pass away.

[KT]

All I know is the word rent was my red flag.

[Susie Orman]

But anything can happen. So given, why not take the money that you would pay in advance and just put it somewhere safe as your rent money, making just money, market interest rates on it and just do that with it. I obviously would be investing it at this point in time because I do think after August and September, which could be a little bit of rough months, but maybe not. These markets still have a lot to go. But no, that's such a waste of money. I cannot even and tell you. All right, go on.

[KT]

Okay, next question from Donna. Hi, Susie and kt. Hope you had a wonderful birthday, kt.

[Susie Orman]

I did.

[KT]

Donna says thanks for delivering an interesting, informative and fun podcast to us twice each week. My question pertains to.

[Susie Orman]

KT wants us to only go to once a week, so you better tell her. You better say something.

[KT]

My question pertains to the must have documents. And by the way, for all of you that maybe missed my birthday, we have a special. And I believe the special is for the whole month of July.

[Susie Orman]

No.

[KT]

Oh, until when?

[Susie Orman]

It is till Sunday.

[KT]

Oh, till this Sunday coming soon. Ooh, don't miss it. So I turned 73 and we were able to ask Hay House to please offer the must have documents at $73 for Susie's listeners, an incredible value.

[Susie Orman]

So you need to go to must have docs and until Sunday, midnight Pacific time, that $73 is good again. Normally it's $99 for $2,500 worth of state of the art documents. KT, I'm sorry, I just have to say something here which is, you know, I watch the news and certain channels all the time. News channels. Then I. And all the time there is this advertisement for this trust and will program and everything like that, just a will for $169. What they also don't tell you is that yearly they very well will charge you a renewal fee if you want to change it or anything. 35 a year. But anyway, these are four documents. A will, a trust, an advance directive, and a durable power of attorney for health care. You need all of them. But here's what I love about this program. Anytime we have an update. Okay, the update is free for you. Anytime you want to make a change. You could go back as many times as you want and change it and change it and change it over all the years. And best but not least, you can share it with all your family members. This was never meant to be. Every single one of you needs to buy it.

[KT]

No, it's a shareware.

[Susie Orman]

It's Susie shareware. So only one of you needs to buy it. You get an activation code. You give your activation code to your family members, whoever it may be, as many as you want, really. They then use the activation code, but they create their own account, their own password, so they cannot see anything that you have again, $2,500 worth of state of the art documents. Good in all 50 states. Now, if that sounded like a plug for it. Oh, it most certainly is. And on Sunday I'm going to tell you a story, which is why I'm seriously now, what would you say? Kt, I'm just so knowing that this is something that every single one of you needs. You have to have.

[KT]

So Donna continues to say in the email. Currently I have a living revocable trust that was created several years ago. It's been updated a few times, including when I moved to a different state. I'm wondering if I should purchase the must have documents with the special $73 birthday rate and use them next time. I need to amend my current trust instead of paying the hourly rate to an attorney. Then the final question, is it possible to transfer my existing trust into the must have documents?

[Susie Orman]

And the answer to that is no, it is not possible. Chances are what you are going to have to do if you want to do that, Donna, is when you get the must have docs, you're going to essentially start all over. Enter the information that you have in your trust now into the program so it is there for you. So when you want to change it in the future, it's easy for you to change it. You can access it. There's no personal information, by the way, everybody in there. It's not like you're putting in your bank account numbers or Your addresses. And it's just who you want to leave everything to and how you want to leave it. So don't worry about it. But then what you would have to do is get everything notarized again. Give everybody, your banks and everything, copies of your new trust. And there you go. Because they always should have the most updated copies of your wills and trusts. All right, go on, kt.

[KT]

And again, another must have question. This is from Joni. I love you, gals. Thank you for all your wonderful guidance through the years. I'm updating my must haves, which I originally completed in 2012. One thing I'm confused about. This is a good question, susie. Should my IRAs, I have most of my funds in a Roth and a bit in a traditional, be titled in the name of the trust or my name? Should I name my beneficiaries directly into the retirement accounts or should the trust be my beneficiary?

[Susie Orman]

So, first of all, there is a reason why an IRA stands for an Individual Retirement account, whether it's a Roth or a traditional, meaning pre tax. It's an ira, so you cannot name it in the name of the trust because a trust is not an individual. I would tell you that if, in fact, you are married. All right. If you are married, your spouse absolutely should be your primary beneficiary on any of your retirement accounts because they have certain rights that nobody else has in terms of a contingent beneficiary. If your children are of age, they're older, they're responsible, whatever it may be. And let's say they're your secondary beneficiaries, your contingent, your spouse being your first. If you don't have a spouse, then your children who are absolutely capable, they should be individually named if they are minors. However, then again, your spouse would be the primary, the trust would be the secondary or contingency. And. Or if you don't have a spouse, then yes, your trust should be named as the beneficiary if you have minor children. All right.

[KT]

Okay, next question from Ginny. Susie, I just realized that my husband is the primary account holder of our credit cards. I'm not sure where I heard this, but I heard that when you die, your credit cards get canceled and your spouse, who was an authorized user, will no longer be able to use the credit card.

[Susie Orman]

That is correct.

[KT]

Okay. We just retired and of course our income's lower. I'm a little worried about applying for a new card with me as the primary. Do you have any advice for Ginny?

[Susie Orman]

The amount of income you have isn't really that important. When applying truthfully for a credit card, what you would do is if you have a good FICO score, a good credit score and you apply, it can be based on maybe low income. But what they're really looking at is have you been responsible with your bills, is it a good credit score? So I would just apply. Many retirees do that and everything and they'll get a credit. It might not be for a big limit, but that's how you would start. If you get denied, then apply for a secured credit card where you put down a deposit into that credit card that secures it and you'll start building your credit. That way it is not too late. You are to do it right after this podcast is heard by you.

[KT]

So Susie, next question's from TJ. Hi Susie. My daughter's 22 and will be 23 next month. She refinanced her car to pay off credit cards two years ago. Against my advice. She then called her father, who was down on his luck at the time, agreed to help her pay the car loan. But then he passed away last year and she was so depressed. Ready, Susie? She maxed out her credit cards again. Now she's $15,000 in debt, a full time student working a part time job three days a week and on the weekends her credit cards are closed. She's on a payment plan that she cannot afford and she barely is meeting that obligation. She can't afford gas in the car, personal items or summertime fun activities. And I refuse to help.

[Susie Orman]

Good.

[KT]

I think she has to feel this to learn from it. What is your advice?

[Susie Orman]

Do exactly what you have been doing.

[KT]

Good on you tj.

[Susie Orman]

Period. Tj. It's just that simple. Obviously this is a woman who needs to learn until she gets it and the only way she's going to get it is by letting her suffer. Period. Go on kt.

[KT]

Okay. This is from Tina. Dear Susie and staff, you have always provided the best financial advice. Thank you. I am a 57 year old nurse that would like to open a Roth IRA using a former employer's 401k funds. It's less than $20,000 she says. I am currently contributing to another 401k plan with my current employer. Can you please explain the process or should I consider a rollover with my current employer?

[Susie Orman]

Tina, here's what you need to know. If you have less than $20,000 in your former employer's 401k. If you do roll it to a Roth IRA, you are going to do what? Oh, ordinary income tax on 100% of that $20,000. If I were you, I would leave it with your former employer for now, and I would convert or roll $10,000 this year into a Roth IRA. You'll owe income taxes on that and next year, because we're not that far away from next year, believe it or not. I would then convert the other $10,000 at that time. Then you would have $20,000 in a Roth IRA. How do you do it? Go to any brokerage firm, like a Schwab Fidelity, whatever it may be. Open up a Roth IRA there and just go from custodian to custodian. They will help you do it. It's just that simple. Now, I just have to say, for your current contributions to your 401k, can you just make sure they're to a Roth 401k? Can you just do me that favor? Otherwise, you're going to have to nurse me.

[KT]

And one final question, Susie. This is from Chad. I thought this was kind of fun. It says hiring an investment professional. Personally, I don't think he needs to, but I'll read it to you. My name is Chad. I've just turned 59. I'm wondering if I should hire an investment professional to manage my retirement savings. I've always directed my retirement savings to go into the S P 500 mutual funds. I always keep in mind what you've said about trusting your gut when interviewing investors. I've interviewed four so far, two of whom I really like, and. And I have one more I still want to speak with. Their FEES range from 1.1 to 1.5% of total assets invested. Do you consider those rates reasonable? Should I hire one of these investors or leave my savings where they are? That's Chad's question.

[Susie Orman]

Oh, Chad, Chad, Chad, listen, this is a hard one because the truth of the matter is, let's say you started in 2009 investing, let's just say 10,000 bucks, and you just put it in the Standard and Poor's 500 index, which maybe you did right then, you know, to 2024. Those 15 years, it averaged about 17.1%. It did incredibly well. Now, if you missed the 2009 and you went into 2010, it would only be like 12 point, but either way, fabulous. So for every $10,000 that you invested versus what the asset manager may charge you, either 1.1% or 1.5%, it's going to cost you a serious sum of money. Very few asset managers truthfully can outperform the Standard and Poor's 500 index. Now that doesn't mean that you shouldn't use a financial advisor and those things. However, it's not just about liking them, Chad. You need to ask what has their actual return been for the past 10 or 15 years? And to prove it to you. Because if they're not making at least 5% more than what the Standin & Poor's 500 index is making for you, it is a waste of your money. And just to give you an example, over 15 years, for every $10,000 you would have invested, it would be about $14,000 more. If you left it in the stand and Poor's 500 index versus this 1.5% fee. Or even if it were 1.1% fee, it would be like $8,000 difference. So I don't know if you've been doing well. I probably would just leave it with what you've been doing. That's what I will tell you. All right. Unless you find a manager who can beat the 500 index.

[KT]

Prove it.

[Susie Orman]

Prove it.

[KT]

Prove it.

[Susie Orman]

Prove it. All right.

[KT]

All right, Susie, that's a wrap. That was a great one.

[Susie Orman]

All right, now kt, let's remind everybody that the offer at Alliant credit union for 4.3% APY for a 12 month certificate is still available for amounts of $75,000 or more. It's 4.35% APY. So you should look into it and go to myalliant a l l I A-N-T.com and check it out. And again, you only have a few days left to take advantage of Ms. KT's birthday pricing of $73. Go to musthavedocs.com birthday and that is where you get the must have docs. And why do we call them that?

[KT]

Kt because you must have them.

[Susie Orman]

All right, so until next time, there's only one thing we want you all to remember when it comes to your money. And that is this is the year to do what kt? Make your money, make more money. And that's exactly what we are doing. All right, everybody, see you soon. We love you.

[KT]

Bye bye. We are strong, we are wise we.

[Susie Orman]

Will not apologize we are here we will thrive Together we will rise we're the and everything it takes we are strong, we are wise Together we will rise. Hi everybody. Suzy O Here. Now if you are looking for a way to start saving to get the most out of your money, I want you to go to myalliant.com that's M y a l l I a n t dot com and look into opening an Ultimate Opportunity Savings Account. Put in at least $100 a month every single month for 12 consecutive months. Earn 3.10% interest on your money right now and get $100 at the end. Are you kidding me? It's the best deal out there. Start saving right now.

[KT]

Neither Susie Orman Media nor Susie Orman is acting as a Certified Financial Planner Advisor, a Certified Financial Analyst, an economist, cpa, accountant or lawyer. Neither Suze Orman Media nor Suze Orman make any recommendations as to any specific securities or investments. All content contained in this podcast is for informational and general purposes only and does not constitute financial accounting or legal advice. You should consult your own tax, legal and financial advisors regarding your particular situation. Neither Suze Orman Media nor Suze Orman accepts any responsibility for any losses which may arise from accessing or reliance on information in this podcast and to the fullest extent permitted by law, we exclude all liability for loss damages, direct or indirect, arising from the use of this information. The must have documents discussed in this podcast are legal documents created by a lawyer and distributed by Hay House.