Ask KT & Suze Anything: If You Don’t Like It, Don’t Do It.

Summary

Summary of "Ask KT & Suze Anything: If You Don’t Like It, Don’t Do It"

Podcast Title: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Host/Author: Suze Orman Media
Episode Title: Ask KT & Suze Anything: If You Don’t Like It, Don’t Do It
Release Date: December 12, 2024

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Introduction

In this engaging episode of the "Women & Money" podcast, renowned personal finance expert Suze Orman teams up with co-host KT to address listeners' burning financial questions. Titled "Ask KT & Suze Anything: If You Don’t Like It, Don’t Do It," the episode combines Suze's extensive expertise with KT's dynamic interaction to provide clear, no-nonsense financial advice tailored to women's unique financial situations.

Listener Questions and Expert Answers

1. The Annuities Dilemma (00:30 - 06:00)

Question from Sheila:
Sheila inquires about Suze's stance on annuities as part of a retirement strategy, expressing skepticism based on her current financial advisor's positive recommendation.

Suze Orman's Response:
Suze immediately dismisses the idea, stating, "If you don't think it, then you must not do it." (02:56). She emphasizes that personal feelings towards financial products should guide decisions more than advisors' opinions. Suze advises Sheila to avoid annuities altogether unless she thoroughly understands them and aligns with her financial goals.

Key Insights:

• Trust your own judgment over financial advisors’ unsolicited recommendations.
• Annuities may not be suitable for everyone; personal preference and understanding are crucial.

2. Managing a Lucrative Real Estate Portfolio (04:09 - 13:22)

Question from Megan:
Megan, a newly married 60-year-old with substantial real estate assets, seeks advice on whether to liquidate her mortgage-free rental properties and invest the proceeds in mutual funds as suggested by her financial advisor.

Suze Orman's Response:
Suze critically analyzes the advisor's recommendation, highlighting potential tax ramifications and questioning the logic behind selling income-generating real estate. She points out the high commissions associated with mutual funds, stating, "You are going to pay a commission of 2 1/2% on each one of these five funds." (06:13).

She advises Megan to retain her real estate investments for steady income and estate planning benefits, such as passing assets to heirs with a step-up in basis. Suze underscores the importance of protecting pre-marital assets through prenups and cautions against unnecessary liquidation of profitable investments.

Notable Quote:
"Why in this environment would he want you or her to sell $2 million of paid-for real estate that is generating a lot of income for you and probably continuing to grow?" (06:21)

Key Insights:

• Evaluate the long-term benefits of income-generating real estate versus short-term gains from mutual funds.
• Consider tax implications and commission costs before making significant investment changes.
• Protect personal assets in new marriages with legal agreements like prenups.

3. Beneficiary Designations on Roth Accounts (13:24 - 14:33)

Question from Ann Marie:
Ann Marie, aged 69, recently became the beneficiary of a $150,000 Roth IRA from her ex-husband and seeks advice on transferring it to her daughter with minimal tax impact.

Suze Orman's Response:
Suze reassures Ann Marie that Roth IRAs are tax-advantaged, stating, "Upon his death, all $150,000 will come to you. You can take it out tax-free, give it to your daughter if you want, or talk to your ex." (13:54). She emphasizes the flexibility of Roth accounts in estate planning and the absence of tax consequences for beneficiaries.

Key Insights:

• Roth IRAs offer tax-free withdrawals for beneficiaries.
• Beneficiaries have the option to transfer funds or redirect ownership as needed.

4. Navigating Financial Advisor Mistakes (14:38 - 18:45)

Question from Valerie:
Valerie shares a troubling experience where her financial planner mishandled her funds, leaving $50,000 in a checking account instead of properly funding her Roth IRA. She seeks guidance on whether to hire a new advisor or manage her investments independently.

Suze Orman's Response:
Suze condemns the advisor's incompetence, questioning the logic behind leaving money in a non-interest-bearing account and failing to promptly invest in a Roth IRA. She advises Valerie to take control of her finances, suggesting she open accounts with reputable firms like Schwab or Fidelity and manage her Roth IRA contributions herself. Suze emphasizes the importance of low-cost, transparent investment options over overpriced mutual funds.

Notable Quote:
"I would be taking this money and I would be opening an account at either Schwab or Fidelity. I would be putting it into their government money market funds... I would absolutely do it on my own." (16:16)

Key Insights:

• Financial advisors should act in the client's best interest; when they don't, it's time to switch.
• DIY investment management with reputable firms can offer better control and lower costs.

5. Managing a Living Revocable Trust (22:03 - 23:43)

Question from Carol:
Carol asks about limiting her successor trustee's powers within her living revocable trust, specifically regarding liquidation and distribution of assets, and whether changes are needed if she moves states.

Suze Orman's Response:
Suze advises consulting a trust lawyer to tailor the trust to Carol’s specific wishes, highlighting that boilerplate trust documents may not accommodate such specific instructions. She stresses the importance of selecting a trustworthy successor trustee who can faithfully execute the trust's terms.

Key Insights:

• Customizing a trust often requires professional legal assistance.
• The successor trustee's role should align with the grantor's intentions and trust provisions.

6. Purchasing a Condo for a Daughter (23:43 - 26:45)

Question from Ann:
Ann and her husband plan to buy a condo for their daughter and seek advice on ownership structures, considering their existing trust arrangements.

Suze Orman's Response:
Suze clarifies that "community property" is exclusive to married couples and advises against putting their daughter's name on the condo jointly. Instead, she recommends holding the property in their names with "community property with right of survivorship," allowing seamless transfer to the surviving spouse and, subsequently, to their daughter via a transfer-on-death designation.

Notable Quote:
"Community property is only between spouses." (25:16)

Key Insights:

• Understand the legal definitions and limitations of property ownership types.
• Use transfer-on-death designations to simplify asset inheritance.

7. Deciding Between Paying Off a Mortgage or Investing (26:45 - 28:45)

Question from a Listener:
A couple nearing retirement is deliberating whether to pay off their new home mortgage in full or take a partial mortgage and invest the remaining cash, concerned about their mortgage rate of 5.25%.

Suze Orman's Response:
Suze concurs with KT's recommendation to not fully pay off the mortgage. She advises maintaining liquidity for unforeseen expenses and keeping a substantial emergency fund. With a locked-in mortgage rate that is relatively low and ample savings, she supports the strategy of partial debt repayment while retaining invested cash.

Key Insights:

• Balancing debt repayment with maintaining liquidity is crucial, especially approaching retirement.
• A locked-in mortgage rate can be advantageous compared to potential investment growth.

Conclusion and Final Thoughts (30:17 - 31:08)

As the episode wraps up, Suze and KT share a motivating message: prioritize people over money and things. Suze encapsulates the episode's theme with, "If you do that, stay healthy, stay strong, and stand in your truth. We promise you, you will be unstoppable." (30:20). This reinforces the podcast's overarching philosophy that financial security stems from strong personal values and prudent money management.

Notable Quote:
"People first, then money, then things." (30:17)

Closing Remarks

The episode concludes with a light-hearted exchange about translating the podcast into Spanish and a final promotional message for Suze's Ultimate Opportunity Savings Account. Suze reiterates the importance of proactive saving, encouraging listeners to "put in at least $100 a month every single month for 12 consecutive months" to earn competitive interest rates.

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Key Takeaways:

• Trust Yourself: Make financial decisions based on your comfort and understanding rather than solely on advisors’ recommendations.
• Protect Your Assets: Use legal tools like prenups and trusts to safeguard personal wealth, especially in new marriages.
• Evaluate Investment Advice Critically: Assess the true costs and benefits of investment strategies, considering taxes and commissions.
• Take Control: When advisors falter, take charge of your financial planning with reliable, low-cost investment platforms.
• Plan for the Future: Utilize estate planning tools to ensure your assets benefit your heirs as intended.
• Balance Debt and Investments: Maintain liquidity while managing debt, particularly as retirement approaches.

This episode exemplifies Suze Orman's commitment to empowering women with clear, actionable financial advice, ensuring they make informed decisions that align with their personal values and long-term goals.

Transcript

[Susie Orman]

Hi, everybody. Suzio here. Now, what is the goal of money? The goal of money is for you to be secure. And there is no better way for you to be secure than having an emergency savings account. It is essential for your financial foundation. So all of you should be participating in the ultimate opportunity savings account at Alliant Credit Union. Go to myalliant.com to find out more and be secure.

[KT]

All right, Susie.

[Robert]

Kt, are you ready for today's podcast?

[KT]

Yeah, Robert, of course we're ready.

[Susie Orman]

Cuz we are unstoppable yeah yeah, baby.

[Colo]

I put my arm around show you how strong I am I put my armor on I'll show you that I yeah, yeah, yeah, yeah I'm unstoppable I'm a partial with no brakes I'm in invincible yeah I wouldn't every single day Mine so powerful I don't need batteries to play I'm so confident yeah I'm.

[Susie Orman]

Unstoppable today December 12, 2024 welcome everybody to the Women and Money podcast. As well as everybody smart enough to listen.

[KT]

This is the Ask KT and Susie anything.

[Susie Orman]

That's right. But kt, here's what I'm going to ask you.

[KT]

Okay.

[Susie Orman]

How did you enjoy the time with your sisters? You know, I posted many pictures.

[KT]

I'm afraid to look the sisters weekend and we still have one around.

[Susie Orman]

Yeah, one decided.

[KT]

We still have one. We have the little one here. She's not leaving till the till late tonight, actually. Yeah, so it was great.

[Susie Orman]

How did that happen, by the way?

[KT]

She just didn't want to go back to Colorado.

[Susie Orman]

I don't blame her.

[KT]

After talking to her husband. It's so cold there and she's like swimming and in the sun and beautiful. She said, can I stay a little longer? Of course you can.

[Susie Orman]

Didn't you think you should maybe say, Susie, is it okay if Barbara stays alone?

[KT]

You love. This is true.

[Susie Orman]

Actually, it was my idea to begin with.

[KT]

I love this.

[Susie Orman]

Just so you know. All right. But you had a good time.

[KT]

Really great time. We all did. And some exquisite dinners together, didn't we?

[Susie Orman]

Yeah. Maybe I'll post some of those pictures as well. All right.

[KT]

All right. My first question is from Sheila, and this is a really easy answer for you, Susie.

[Susie Orman]

Denied.

[KT]

I'm well ready. I'm working with a financial advisor who is positive about annuities as part of a retirement strategy. I am not. If I am not mistaken, you are not either. What is your position on this, Susie?

[Susie Orman]

It's surprising that I said denied right off the back. Sheila, Listen to me. The first and most important thing isn't what I think isn't even what the financial advisor thinks. But you said in this email that you are not positive about annuities as a part of a retirement strategy. You said it. So if you don't think it, then you must not do it. It's really just that simple. So I can't answer this question for you truthfully because it depends on what type of an annuity. I don't know enough about your own financial situation. Are you retiring now? Do you need guaranteed income? Whatever. However, it does not even matter. You don't like it, so don't you dare do it. Next.

[KT]

Kt. Okay, next question. Susie is from Megan. In keeping with the same topic, your favorite.

[Susie Orman]

You thought I was going to get a lot worse.

[KT]

I thought that you were going to do a big denied but ready? Here comes another one.

[Susie Orman]

And you were baiting me. You were. You were setting me up for the rest of this podcast.

[KT]

Here comes another one.

[Susie Orman]

Oh, so I have a second chance to get really.

[KT]

Here comes another one. Susie. My husband and I are very young 60 year olds. We've been married for three years. We each have two grown children from prior marriages. We're looking at planning for our joint retirement. We have no joint savings. My husband has about $200 left in his 401k.

[Susie Orman]

Do you think she meant $200 or $200,000 and just didn't put it in?

[KT]

I think she meant $200,000.

[Susie Orman]

Either way, it doesn't matter.

[KT]

Go on. But she has 2.5 million in mortgage free rental properties.

[Susie Orman]

Are they married?

[KT]

Yes, they're married for only three years only.

[Susie Orman]

Do you love how she said only?

[KT]

I say only because of. Listen to what's coming up.

[Susie Orman]

All right.

[KT]

We don't have any other debt. We also live in my pre marriage home which is also paid and valued at almost a million dollars. We believe we could live off about $120,000 a year. We're looking for a financial advisor. One of the people we interviewed and liked advised me to sell $2 million net worth of my real estate portfolio and put it all in a money market account, specifically with American Fund and spread it out over five funds with 400,000 in each. He showed us a hypothetical that showed if we had invested in these same funds 30 years ago, they would be worth 13 million now. Blah blah, blah, blah blah. I say the blah blah blah because every financial advisor is going to show you a hypothetical based on should have, could have, would have in my Opinion. Now she said, I want to plan for our retirement and leave a legacy for my children and grandchildren.

[Susie Orman]

Notice she said my, she said my. She didn't say ours, she said my. Go on.

[KT]

I appreciate your perspective. So this perspective needs a little bit of between the line thinking.

[Susie Orman]

Oh, and you think I know how to do that, do you?

[KT]

I can help you. Okay, go for it.

[Susie Orman]

Please do so. First of all, my dear Megan, you have obviously done incredibly well on your own over these years. I don't know how you accumulated this, if this was your first husband, your second husband or whatever, but you on your own have done so well. Look at this. You have a home that's paid and valued at 900,000 that you had before you got married. You have 2.5 million in mortgage free rental properties. How did you do that? Hopefully you did a prenup agreement before you got married keeping all of these properties separate so that if anything were to happen between you and your newly wedded husband, three years is newly wedded. I don't care what anybody says. You tell me 30 years, I'll think about it, but not three. All right, so hopefully you did a prenup absolutely protecting all of that. What is interesting is that this advisor wants you to sell $2 million of your real estate. Why? Why in this environment would he want you or she want you to sell $2 million of paid for real estate that is generating a lot of income for you and probably continuing to grow? That's number one. You say you want to plan so that everything is great and you can leave a legacy for your children and your grandchildren. Well, one of the great ways to do that is that if your individual real estate you bought a long time ago, you just keep and on your death it passes to them via a living revocable trust, they're going to get a step up in cost basis on all of it and not have to pay any tax. Got that girlfriend? If you sell your real estate right now, you're going to have income tax on it. Will you have recapture tax on it? Have you looked at the tax ramifications of selling these properties? That's number one. Number two and kt, I know you want me to make these short, but when it's this much money involved, I really need to go into detail about something. This suggestion of this person wanting you to put all of this money to begin with in a money market fund and then do what? Spread it over five different American funds. American funds are mutual funds that have, if they're a share funds Which I bet they are. They all have a load on them. I just want to say that I'm suspicious here because there can't be that much difference in all of the American funds. Now American funds are great funds. I do not like that they have a load on them. I just want to tell you about their load. For anything under $25,000 there's a five and three quarters percent load. Then it goes up in tranches from 25 to 50, 50 to 100, 100 to 250 to 50 to 499. If you put $400,000 in these funds, it's going to be a two and a half percent load. So that means with this advisor suggestion that you are going to pay a commission of 2 1/2% on each one of these five funds. If you simply had put $500,000 in, there would only be a 2% commission, which still in my opinion is way too high. Just so you. A million dollars or more. There is no commission whatsoever when you have this amount of money. This amount of money, $2 million shouldn't be going into all mutual funds at $2 million. If you had a great financial advisor, they would be putting you in individual stocks. They would be able to do option strategies with you, all kinds of things. They might diversify with you with some bonds, treasuries, all kinds of things. So no, I do not think you should be doing that with that advisor, number one. Number two, if you have liked your real estate and it's producing for you in terms of great rental income, I personally would be keeping it. I would be telling you, since you are probably going to be moving into your home that you owned outright, that you better work out something with your husband as to how do you really share those expenses and things like that. But I am just wishing and praying and hoping that all of your individual assets that you entered this relationship with are in just your name and you never ever, ever put them in joint name with your husband. Ever.

[KT]

What kt I want you to tell everyone listening about this hypothetical 30 year model. Can you please set everyone straight that any model that you go back half of your lifetime is going to be significantly different. Can you tell people to just be aware of.

[Susie Orman]

Yeah, just, you know, it doesn't matter what happened over the past. What matters is what is happening right now. And real estate today is very, very different than real estate was years ago. Your property taxes on that real estate is lower than if you just bought that real estate today. There's a reason that you invested in real estate, that means you are comfortable with it, you like it, it's providing for you. Right now, there is no way of really knowing what's going to happen with the stock market, what's going to go on. It doesn't matter about 30 years ago. What matters is right here and right now if it's a good investment or not. And with this kind of money, there is no reason in a million years, if you did do that, that you would put it, in my opinion, in exchange traded funds or mutual funds. You would find a financial advisor who managed the money themselves and didn't get an expense ratio because why it's in a mutual fund. It just. No, I don't like this person.

[KT]

Don't do it.

[Susie Orman]

Don't do it. All right. Okay.

[KT]

Don't do it. Next. Ann Marie says, Hi, ladies, I'm 69 and just found out I'm named beneficiary on $150,000 Roth from my. Well, wait. We've been divorced 30 years and it's all he has. It should go to our 40 year old daughter. How do I get it to her with the least tax impact for either of us. Thank you for all you do. How she do that?

[Susie Orman]

Given the fact that your ex was smart enough to have it all in a Roth, it doesn't really matter. Upon his death, all $150,000 will come to you. You can take it out tax free, give it to your daughter if you want, or talk to your ex, obviously if he's leaving it to you and just say to him, can you please just change it from me to the 40 year old daughter? Just that simple. Either way, there's no tax impact whatsoever as a beneficiary of a Roth retirement account.

[KT]

All right, so I have one more financial planner question here. They kind of came in in a big bunch. Ready?

[Susie Orman]

Is this one going to aggravate me?

[KT]

Yes. This? Yeah, this is from Valerie. Hi, Susie and kt.

[Susie Orman]

Are you all noticing a trend here?

[KT]

Wait, wait, wait. A financial planner had me close my cd. Ready, Susie Put the money in my checking account for ease of transfer to a Roth IRA that he opened for me. It's been a month. The money's still sitting in my checking account, earning nothing. Now. She said, I don't know how to fund my ira. So I'm coming to you, Susie, for advice. Should I hire another financial planner or do this on my own? The thought of making a mistake with this $50,000 susie sitting in a checking account paralyzes me. Then here's What? I just want to read to all of you what she's got. I have the ultimate opportunity Savings account. I have 400,000 in a Roth 401K. I have 10,000 Series I bond and $100,000 CD, which will mature next month. And 12 months of expenses saved.

[Susie Orman]

Does she give us her income level? Like, is she even qualified to do a contributory Roth ira?

[KT]

No. But here. This will give us a hint of when she's retiring and her age. I live very much below my means and save everything I can for a 2027 retirement. So she's asking you for some guidance. But it sounds like she has done everything.

[Susie Orman]

Yeah, she's most important. She's got this person.

[KT]

She's. If you look at her list. Why, I read the shopping list of what she's got. Everything in this list is what Susie Orman has advised over the past two years. Everything.

[Susie Orman]

All right, so if you have. Valerie, I don't know if you have or not, but listen to me. Over all of that time. Are you kidding me? First of all, you can't transfer $50,000 from a CD into a Roth IRA unless the CD was in a Roth IRA. But obviously it's not why he had you put it all in a checking account. Why didn't he have you at least do it in a money market account so that you could make 4% or 5% on it? Are you crazy? Number one, that is his first stupid mistake that he himself made. Then to have it sit there when he says he's going to open up a Roth for you, which he did, but not transfer $8,000 right away into that Roth, another 8,000 at the beginning of next year, and have invested it for you. What's that about? So, no, I wouldn't be doing anything that this advisor told me, number one. Number two, you can do this on your own. Do you hear me? I would be taking this money and I would be opening an account at either Schwab or Fidelity. I would be putting it into their government money market funds, either one. And then I would be opening on my own a Roth ira. Because the most you can contribute while you're working is $8,000 this year, $8,000 next year. So now you have $16,000 that you can invest within your Roth IRA, but the other $34,000 is at least sitting in a money market account, making more interest. And I would absolutely do it on my own. You do not need a financial advisor to be investing $16,000 for you. Do you hear me? Valerie.

[KT]

Wait Valerie, you have about two weeks to do what Susie just said.

[Susie Orman]

So do it now, girlfriend. Which is why, by the way, every one of you, when you write in, you don't know if I'm going to answer your question or not. You don't know if we go way back in time and pick a question from back then and answer it. So it's really important that if you want your question answered, that you at least listen to see if we're answering it. Go on, kt.

[KT]

Okay, next question is from Susan. Hi, fun girls.

[Susie Orman]

We are, aren't we?

[KT]

Yeah. Hi, fun girls.

[Susie Orman]

Do you know that we spend how many minutes a day laughing?

[KT]

Would you say too many? Especially hours. Hours. We love We. Cola.

[Susie Orman]

Cola comes in first thing in the morning. Seriously? I'm still in bed, right? KT has already brought in coffee for all three of us, and now we're having serious.

[KT]

We have meetings.

[Susie Orman]

Meetings. And do you know what this morning's meeting was? It was about tell Susie. What about Caitlin Clark? Oh, these are our conversations in the morning. Right.

[KT]

Colo reports. First of all, he's an incredible sport aficionado.

[Susie Orman]

He's a savant.

[KT]

Oh, he is?

[Susie Orman]

Yeah.

[KT]

His mind has a memory beyond the beyond. His big report this morning, everyone, was that we had to know that Caitlin Clark has been named athlete of the Year by time.

[Susie Orman]

Right. And then he wanted to make sure we knew that they're all flying now on a private plane.

[KT]

Well, that. Because of her.

[Susie Orman]

Right.

[KT]

And then he said, for Katie. Did you know, Susie, for 23 years, the women's basketball teams have been trying to get private flights to send the team around when they do their, I guess, you know, their tournaments.

[Susie Orman]

Yeah, right.

[KT]

And he said. And he said they were flying on, you know, all these little planes and.

[Susie Orman]

Commercials and then on and on, and the whole conversation is about sports, and all we can do is laugh. All right, go on.

[KT]

But this question is good. High fun girls and colo. Quick question. I have a Roth and a newly opened brokerage account. I've been buying stocks and index funds in the Roth, but only BND in the brokerage account.

[Susie Orman]

That's the bond fund.

[KT]

Right. I'd like to add some of your dividend stock picks, but unsure which account they should go in.

[Susie Orman]

It's difficult for me, Susan, to answer this question only because I don't know the goal of your money. Really? That and your income tax situation. I would be buying probably stocks, index funds that maybe I would keep for a long term of growth. And if you're buying the bond fund, I would probably do it in my brokerage account. All right, go on.

[KT]

Okay. Another one. This is from Carol. She said, hello, KT and Susie. Many thanks for sharing your joy de viv and financial guidance. Welcome over these many years to a.

[Susie Orman]

French accent for me.

[KT]

Joie de vivre.

[Susie Orman]

Yes, that's right.

[KT]

No, say oui. Say.

[Susie Orman]

She said, I just did Spanish for you.

[KT]

All right, go on.

[Susie Orman]

I combined the two. Mon amor, Mon amar, mon amor. I have mon amor.

[KT]

I have a quick question about my living revocable trust. I do not want my successor trustee to have all the powers granted in the document. I want my successor trustee to simply liquidate my holdings and make distributions. And then she's asking, can I omit the long list of authorizations and replace it with instructions of what I wish to do if I move to another state? Do I need to restate for that reason?

[Susie Orman]

Yeah, if you move to another state, you don't have to restate anything truthfully. However, if you want to be that specific, you need to go then and see a trust lawyer. When you're using a trust program and it's a boilerplate such as the must have documents happens to be, no, you cannot change any part of those documents because it has to be clear that you are protected. And sometimes you can change something that actually hurts you rather than is there to help you. So my advice would be go and see a trust lawyer. Have a trust drawn up exactly what you want the successor trustee to be able to do or not do. However, a successor trustee is somebody that once you are dead or you're incapacitated, really does have to carry out all of your wishes according to the trust. If you don't trust that person to do exactly that, you don't have the right successor trustee.

[KT]

Okay, next question. Susie is from Ann. She said hello. My husband and I are purchasing a condo for our daughter in San Diego. We wanted to put the condo in her name as well as ours. All of our properties have been in our trust. What do you suggest for this property? Put it in the trust with her first line over the two other siblings. Joint tenants, community property or community property with right of survivorship.

[Susie Orman]

Ding, ding, ding, ding, ding. Pop quizzy.

[KT]

Oh, oh, oh. So put it in the trust with her first, everybody. All right, I would do.

[Susie Orman]

Wait, everybody, how would you answer this question? Mommy and daddy want to leave the property.

[KT]

Well, they want to buy this for their.

[Susie Orman]

They want to buy a condo just for their daughter in San Diego right now. They want to put the condo in her name as well, as theirs. Okay. All of our properties have been in trust. What do you suggest for this property? Would you. Everybody. Kt. Would you put it in trust with her? First line over the two other siblings, joint tenants or community property with right of survivorship? First question with their daughter, can they put it in community property?

[KT]

I don't know.

[Susie Orman]

So cute. His little face.

[KT]

I don't know.

[Susie Orman]

The answer to that is no.

[KT]

Okay.

[Susie Orman]

Because community property is only between spouses.

[KT]

Oh, see, I didn't know that.

[Susie Orman]

Well, now you do. So you can't do community property with her name on it. I personally would not put her name on it right now. I just wouldn't. I would own it in your name and your husband's name, and then I would own it in community property with right of survivorship so that it went to either one of you. But you got a step up in basis on the entire thing. If just one of you dies, then what I would do is at that point, you could do a transfer on death. Account that upon the last person's death, meaning whoever survived of the two of you, it goes directly to your daughter. Now, you could do that in trust for her, but if you don't want any complications and you want to avoid probate and everything, you could do it as a transfer on death just with.

[KT]

That property and with that daughter.

[Susie Orman]

So officially, we've done your quizzy.

[KT]

All right, so.

[Susie Orman]

And we usually end after your quizzy.

[KT]

Oh, wait, let me just do one more.

[Susie Orman]

All right.

[KT]

Anything do you want to end?

[Susie Orman]

Never. Oh, never, never, never, never.

[KT]

All right. Hi, Susie and Katie. We're closing our home next week. Should I pay it off in full or get a mortgage partially and invest that remaining cash? Listen to these numbers, Susie. We're already putting more than 50% down on a $700,000 home. I have additional 300,000 from the sale of our current home that we're not sure to invest or pay full in cash for the new home. We are currently set to get a 15 year mortgage for the 300,000 rate. Locked at 5.25. Seems a little bit high.

[Susie Orman]

That's what. That's actually low in comparison.

[KT]

No, but I mean, anyway, my. Listen to this. My husband and I are 52 and 48, done with the kids, education expenses fully paid off, college, no student loans, no car loans or any other debt we take home combined, roughly 200,000 personally. So.

[Susie Orman]

All right, let's do a quizzy again. What would you do?

[KT]

Could I answer this? They're 52 and 48. They're still pretty young.

[Susie Orman]

Yeah. What would you tell them, kt?

[KT]

I wouldn't pay it off in full.

[Susie Orman]

Great. What would you do?

[KT]

I would put down the 50% is huge. And if you're saying the 5.25 is pretty good, then they have at least these 300,000 cash as an emergency money.

[Susie Orman]

And they could pay it off anytime they want.

[KT]

Anytime they want, in case they need that money. You never know about the what ifs. That's what I. Yeah, baby. Ding a ding a ding. Kt, you're good. You're good, Katie. You're good, Katie.

[Susie Orman]

Right.

[KT]

Wait.

[Susie Orman]

I just have.

[KT]

I never get it right.

[Susie Orman]

Right. I just have to tell you a little funny story, which is we're trying to do a translation of the podcast into Spanish. Okay. Right. And so I heard the first version last night and the one that got translated with artificial intelligence, even though they weren't able to capture our sweet little voices. Although you have a much sweeter voice than I do. But anyway, is was an. Ask KT and Susie anything. Kt. You don't even know this. So I listened to it last night, and I was listening to the quizzy part, and you hear it go, ding, ding, ding, ding, ding, ding, ding. Like these. Like these. Like these noises that we make. And I'm trying to imitate it. It was so funny. I can't tell you.

[KT]

We should let Colo listen to it.

[Susie Orman]

Yes. Because I don't know if it's.

[KT]

If it's accurate. It's funny because we were hoping we could trans. If Susie and I spoke fluent Spanish, we would be able to do this. And we so want to.

[Susie Orman]

Y. Such a shame. We don't.

[KT]

We really, really want to take care of our Hispanic community. It's so important.

[Susie Orman]

Right. But anyway, I just thought that was kind of funny.

[KT]

Ding a ding a ding a ding.

[Susie Orman]

A ding a ding. You should hear. I have to play it for you. It's actually hysterical. All right, that brings us to the end of another Ask KT and Suzy anything. If you want, send in your question to Asksusie S U Z E Podcast, and if KT picks it, we will answer it on the podcast. But until Sunday for Susie school, there's really only one thing that we want you to remember when it comes to your money. And what is it, kt?

[KT]

People first, then money, then things.

[Susie Orman]

And if you do that, stay healthy, stay strong, and stand in your truth. We promise you, you will be unstoppable.

[Colo]

I'm unstoppable. I'm a bush with no brakes. I'M invincible yeah, I win every single day Mine's all powerful I don't need batteries to play I'm so confident I'm on stage Unstoppable today Unstoppable today Unstoppable today Unstoppable today I'm unstoppable today.

[Susie Orman]

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.

[Robert]

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 Susie Orman Media nor Susie 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 Susie Orman Media nor Susie 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.