Summary of "Ask KT & Suze Anything: Revisiting Am I Too Old to Buy a House?"

Podcast: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Host/Author: Suze Orman Media
Release Date: April 17, 2025

Introduction

In this insightful episode of Women & Money, Suze Orman and KT engage with listeners' financial inquiries, providing expert advice on a range of topics from investment exams to real estate decisions. The episode emphasizes taking control of one's financial future through informed decision-making and proactive planning.

Rapid Fire Segment: Listener Appreciation and Exam Insights

The episode opens with a heartfelt thank-you from listener Mike, who expresses gratitude for the clarity Suze's "school" provided while studying for his Series 65 exam. Suze reflects on her own challenges with the Series 7 exam, sharing a personal story of perseverance:

“Sometimes in life, when you fail, maybe it's a test to see do you really want to do this or not?”
[02:05]

Listener Questions and Expert Advice

1. Inheritance and Required Minimum Distributions (RMDs)

Question from Karen:
Karen asks about managing RMDs for her three children inheriting her 401(k).
Suze's Advice:
Suze explains the importance of understanding beneficiary designations and the distinction between eligible and non-eligible designated beneficiaries. She advises:

“You really want to save your beneficiaries a whole lot of trouble. Just do a Roth retirement account.”
[05:19]

2. Buying a Home as an Unmarried Couple

Question from Zoe:
Zoe and her life partner are purchasing a co-op apartment but remain unmarried. She seeks advice on ensuring property rights and financial stability should anything happen to her partner.
Suze's Advice:
Suze recommends securing a 20-year term insurance policy to cover the mortgage, ensuring Zoe can maintain payments independently if needed. She emphasizes:

“If he dies, you're fine. So therefore, maybe what you should do is get a 20-year term insurance policy on him.”
[07:14]

Additionally, Suze highlights the potential benefits of marriage for financial security, such as access to Social Security benefits:

“You could claim either half of his Social Security or take over his Social Security if he died before you.”
[07:20]

3. Leaving a 401(k) vs. Cash to Children

Question from Bridget:
Bridget contemplates whether to leave her 401(k) to her children or convert it to cash, especially considering the complexities of inheritance rules.
Suze's Advice:
Suze strongly advocates for converting to a Roth 401(k), urging:

“Why don't you convert anyway so that when they inherit, it's not that big of a deal.”
She emphasizes prioritizing their own financial strategy over worrying about the children initially: “Stop worrying about the kids, Mama Bear, and start worrying about yourself.”
[10:35]

4. Managing Capital Gains from ETF Dividends in a Rollover IRA

Question from Sheila:
Sheila inquires about whether to reinvest dividends or deposit them to cover future taxes.
Suze's Advice:
Suze simplifies the decision:

“Make it so you reinvest the dividends and you get the most growth out of your money.”
She also suggests considering Roth conversions for long-term benefits: “Start converting to a Roth.”
[12:20]

5. Involving a Spouse in Financial Decisions

Question from Susan:
Susan seeks strategies to engage her husband in managing their finances, as he has been disengaged despite their financial success.
Suze's Advice:
Suze advises a serious, role-playing approach to highlight the importance of financial collaboration:

“We're broke. We're just broke.”
She encourages creating a comprehensive financial plan together, emphasizing accountability: “This isn't funny, it's not funny, everybody.”
[14:31]

6. Purchasing a Home at Age 65 or 66

Question from Carolyn:
Carolyn wonders if purchasing a home later in life is advisable.
Suze's Advice:
Suze affirms that age should not be a barrier if one can afford it, recommending:

“If you can afford it, girlfriend.”
She advises opting for a 15-year fixed-rate mortgage to ensure the home is paid off before reaching 80 years old and suggests a disciplined savings experiment to test affordability: “At the beginning of every month for the next six months, take that $2,000 and put it in a money market account… see what that feels like.”
[16:50]

7. Paper Trading for Investment Practice

Question from Jennifer:
Jennifer asks for Suze's opinion on paper trading as a method to practice investing.
Suze's Advice:
Suze sees value in paper trading for learning investment strategies:

“Pretend on paper that you bought stock or ETFs.”
She recommends tracking investments meticulously to mimic real trading without financial risk.
[20:56]

8. Adding Kids as Authorized Users on Credit Cards

Question from Hari:
Hari seeks advice on whether both parents should add their children as authorized users on their credit cards to boost the kids' credit scores.
Suze's Advice:
Suze suggests that while one parent may suffice, having both parents add the kids across different credit cards can be beneficial:

“Do it on all your credit cards, not just one.”
She underscores the importance of prioritizing people over money: “People first, then money, then things.”
[21:56]

Key Takeaways and Expert Insights

Throughout the episode, Suze Orman emphasizes the importance of proactive financial planning, understanding the implications of financial decisions, and prioritizing personal financial security. Key themes include:

• Perseverance in Financial Education: Suze shares her personal struggles with financial exams to inspire listeners to persist through challenges.
• Strategic Inheritance Planning: Encouraging the use of Roth accounts to simplify inheritance processes.
• Insurance as Financial Safety: Highlighting the necessity of term insurance to secure loved ones' financial future.
• Encouraging Financial Collaboration: Advocating for open and serious discussions between partners about finances.
• Age-Appropriate Financial Decisions: Advising that age should not limit financial opportunities if one is financially prepared.
• Investment Education: Supporting methods like paper trading to enhance investment knowledge without risk.
• Building Credit Early: Recommending authorized user strategies to help children establish strong credit histories.

Notable Quotes

• Suze Orman on Financial Goals:
  “The goal of money is for you to be secure.”
  [00:00]

• Suze Orman on Overcoming Failure:
  “If this is a test… go for it with everything you have.”
  [03:40]

• Suze Orman on Roth Accounts:
  “Just do a Roth retirement account.”
  [05:19]

• Suze Orman on Marriage and Financial Security:
  “You could claim either half of his Social Security”
  [07:20]

• Suze Orman on Self-Priority:
  “Stop worrying about the kids, Mama Bear, and start worrying about yourself.”
  [10:35]

• Suze Orman on Investment Growth:
  “Make it so you reinvest the dividends and you get the most growth out of your money.”
  [12:20]

• Suze Orman on Financial Accountability:
  “This isn't funny, it's not funny, everybody.”
  [14:31]

• Suze Orman on Home Purchasing at Any Age:
  “If you can afford it, girlfriend.”
  [16:50]

• Suze Orman on Credit Building:
  “People first, then money, then things.”
  [22:24]

Conclusion

This episode of Women & Money delivers a wealth of practical financial advice tailored to listeners' diverse needs. Suze Orman's expertise shines through as she addresses complex financial questions with clarity and compassion, empowering listeners to make informed decisions and take control of their financial destinies.

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