Ask KT & Suze Anything: Revisiting Can I Afford to Have a Baby?

Summary

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

Episode: Ask KT & Suze Anything: Revisiting Can I Afford to Have a Baby?
Release Date: March 27, 2025

In this insightful episode of Suze Orman's Women & Money, Suze Orman and co-host KT delve into a series of listener questions, offering expert financial advice tailored to various life circumstances. The episode navigates topics ranging from retirement planning and investment strategies to the financial considerations of starting a family.

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1. Introduction and Technical Hiccups

The episode begins with an inspiring motto shared by an unknown speaker:
"We are strong, we are wise we will not apologize we are here we will thrive Together we will rise." [00:01]

Producer Robert updates listeners about a major electrical failure affecting the recording setup on Suze and Katie's island home. To ensure continuity, they revisit a previous "Ask KT and Suze Anything" segment, diving directly into listener questions. [00:27]

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2. Ed's Financial Dilemma: Investing vs. Roth Conversion

Question from Ed:
"I'm 51. I have $10,000 in a bank account. Would Susie suggest investing it in a low-cost brokerage account or using it to pay the taxes on converting some of my somewhat hefty balance $600,000 in a traditional 403 to a Roth 403?" [01:05]

Suze Orman's Response:
"If it were me, Ed, I would absolutely take that $10,000. Since you want to take it and invest it anyway in a brokerage account, I think that your money would be far better converting money to a Roth 403 where you will be also investing it, but you're going to be invest tax-free. So yes, I would be doing that." [01:33]

She emphasizes the benefits of a Roth conversion, highlighting the advantage of tax-free investments. However, she advises consulting a CPA to tailor the strategy to individual circumstances. [01:57]

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3. Mike's Concerns: Required Minimum Distributions (RMDs) and Retirement Planning

Question from Mike:
"I'm 61 years old and my wife is 59. We are fortunate to have about $6 million in retirement savings currently. Can I... Have you done an episode or do you plan on doing an episode on what type of planning you should do three years prior to retirement? I find it all a bit confusing. I'm not sure how to prepare if not, can you direct me to some resources on RMDs?" [02:03]

Suze Orman's Insight:
Suze reflects on the evolution of listener demographics over the years. She notes,
"Today, the majority of the questions [...] they are all multi-millionaires, the majority of them, they all own one or two homes outright. They are all doing so great." [03:07]

Addressing Mike's specific query, Suze delves into recent changes in RMD laws under the Secure Act 2.0. She explains the shift in the starting age for RMDs from 72 to 73, and for those born in 1960 or later, RMDs won't begin until age 75 starting in 2033. [05:45] She advises converting traditional retirement accounts to Roth accounts to mitigate the impact of future RMDs, stating,
"Then you wouldn't be building on the money that you have in these retirement accounts right now. You would actually be building your Roth retirement accounts." [07:27]

Suze shares a personal anecdote reflecting on her own regrets about not converting earlier, highlighting the importance of timely financial decisions. [08:00]

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4. Suze Reflects on Shifting Listener Profiles

Suze discusses how the nature of questions has transformed over the years. Earlier inquiries were predominantly about financial struggles—debt, lack of retirement savings, bankruptcy—whereas current questions stem from a more affluent listener base. [03:37]

She proudly acknowledges the positive impact of her work, affirming,
"There is nobody out there that is excluded from being able to do that. The only person that excludes you from doing that is yourself." [03:59]

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5. Eric's Unique Inquiry: Investing in Art and Wine

Question from Eric:
"Curious on your thoughts on investing in art and wine, both solo, of course, and actively managed with a company or through an app." [09:29]

Katie's Advice:
"I would say, boyfriend, do it. However, I'd be very careful in who I invest with in terms of a company or an app. I think it's really important that maybe you start some direct investing, either with a small gallery that you know or with the wineries themselves." [09:40]

Suze Orman's Caution:
Suze elaborates on the complexities of investing in tangible assets like art and wine, pointing out additional costs such as storage and insurance. She shares her own experiences,
"It cost me a lot of money to store those wines and insure them... One of the pieces that we had evaluated the other day actually has gone down in value rather than up." [10:53]
She warns,
"There are more things than you realize when it comes to investing in art or wine." [11:07]

Katie's Personal Story:
Katie recounts a missed investment opportunity with Andy Warhol's art,
"I remember we were in his factory in New York City and he asked me if I wanted one. And I said, how much is it? He said, for you, $350. $350, everybody... I didn't think at all about it." [13:34]
She laments not purchasing Warhol's pieces, which now sell for millions, emphasizing the potential long-term gains of strategic investments. [14:38]

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6. Darshais's Situation: Renovating Home Without High-Interest Refinancing

Question from Darshais:
"I am a recently widowed retired veteran spouse. Equity in the home that we purchased in 2005 has doubled. The present mortgage rate is 3.5% with a balance of $116,000. The home was built in 1986. It's presently worth about $270,000. I would like to do some renovations and have been thinking about using the equity to acquire upfront cash. A 30-year refinance loan, especially with rates in excess of 7% is out of the question. What would you suggest as an alternative to acquire cash without losing my current rate of 3.5%?" [15:02]

Suze Orman's Recommendation:
Suze empathizes with Darshais's loss and financial concerns,
"Simply do, even though I don't suggest it right now because interest rates are so high, but I would seriously simply not refinance my home." [16:39]

Instead, she proposes utilizing a home equity line of credit (HELOC),
"if you want, you could then possibly refinance all of it back to maybe 3.5% or who knows what." [17:12]
She cautions against extending the mortgage term unnecessarily, advising,
"Never refinance for longer than the period of time you currently have left on your mortgage." [16:19]

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7. Ashley's Financial Readiness for a Baby

Question from Ashley:
"Hi, Susan. [...] I'm very worried about the financial stress of this step, even if it's an amazing one." [18:30]

Ashley's Financial Overview:

• Annual Income (Post-Tax): ~$15,000/month
• Emergency Fund: $86,000
• Retirement Investments: $138,000
• Monthly Expenses: $6,000
• Additional Cost (Daycare): $3,500/month
• Total Projected Expenses with Baby: $9,500/month [16:09]

Katie's Guidance:
Katie suggests creating a dedicated "baby fund" to cushion unexpected expenses and reduce financial stress,
"I would wait a little bit before I had the baby [...] build a little more of a cushion just for the what-ifs of having a baby." [22:42]

She recommends simulating the financial impact by setting aside additional funds,
"Put away anywhere from three to six thousand dollars a month into a high-yield money market account and see how it feels." [25:01]

Suze Orman's Strategy:
Suze advises Ashley to evaluate her ability to sustain increased expenses,
"If you are able to do that, let's say put $6,000 a month away for a year, now you have an additional $72,000 to add to your emergency fund." [26:08]
She emphasizes the importance of financial preparedness in ensuring a stress-free parenting experience,
"People first, then money, then things." [28:36]

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8. Concluding Insights

As the episode wraps up, Suze and Katie reinforce the principle that personal well-being and relationships should take precedence over financial pursuits. Suze encapsulates this sentiment succinctly,
"People first, then money, then things." [28:36]

The episode concludes with the motivational anthem shared at the beginning, reaffirming the podcast's commitment to empowering listeners to thrive financially and personally. [28:40]

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Key Takeaways

• Roth Conversions: Converting traditional retirement accounts to Roth can offer tax-free growth, but it's essential to consult with a financial advisor.
• RMD Planning: Stay informed about changing RMD laws to optimize retirement strategies, such as converting to Roth accounts to mitigate RMD impacts.
• Alternative Investments: Investing in art and wine requires careful consideration of storage, insurance, and market volatility. Direct investments may offer more control and potential returns.
• Home Equity Utilization: Instead of refinancing at high-interest rates, consider a HELOC to access home equity for renovations.
• Financial Readiness for Parenting: Establishing a dedicated fund and evaluating the ability to handle increased expenses can ensure a financially secure environment for raising a child.

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Suze Orman's episode offers valuable financial guidance, blending practical advice with personal anecdotes to help listeners navigate complex financial decisions. Whether planning for retirement, exploring investment opportunities, or considering family expansion, Suze and Katie provide actionable insights to foster financial well-being.

Transcript

[Unknown Speaker]

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.

[Robert]

March 27, 2025 welcome to the Women and Money podcast as well as everyone smart enough to listen. Hi everybody. Robert, the producer here. So it turns out there was a major electrical failure on the island where Susie and Katie live. And of course you know that one needs electricity in order to record a podcast. And you should know by now that we don't like to leave you without a show. So what we're going to do today is revisit part of an Ask KT and Susie Anything episode from a while back. And we're going to jump right into it with KT asking the first question.

[Katie]

This question's from Ed. He writes, I'll keep it short. I'm 51. I have $10,000 in a bank account. Would Susie suggest investing it in a low cost brokerage account or using it to pay the taxes on converting some of my somewhat hefty balance $600,000 in a traditional 403 to a Roth 403? Now Susie, remember Eds 51.

[Susie Orman]

If it were me, Ed, I would absolutely take that $10,000. Since you want to take it and invest it anyway in a brokerage account, I think that your money would be far better converting money to a Roth 403 where you will be also investing it, but you're going to be invest tax free. So yes, I would be doing that.

[Unknown Speaker]

If I were you, but I would.

[Susie Orman]

Be checking it with my cpa.

[Unknown Speaker]

Yes, kt.

[Katie]

So next question. Another man, Mike. I love we get all these mixed up questions, all right, because it's the Women and Money podcast. But I love when men come on.

[Susie Orman]

I thought she was going to say, I love answering questions from all these mixed up men.

[Katie]

No, they're not. No, they're not mixed up. They're listening. So Mike says, I'm 61 years old and my wife is 59. Well, we are fortunate to have about $6 million in retirement savings currently. Good for them. Good for them, right, Susie, Can I.

[Susie Orman]

Just butt in for one second?

[Katie]

Yeah.

[Susie Orman]

So here's what's interesting. A while ago I was being interviewed by someone and they wanted to know how the questions that are coming into this podcast differed from from the questions that came in for the Suze orman show in 2001.

[Unknown Speaker]

All the way up that I did.

[Susie Orman]

I think to 2015. Almost all the questions Were I'm in.

[Unknown Speaker]

Debt, I don't know what to do.

[Susie Orman]

I don't have any retirement, I need to claim bankruptcy. And on and on and on.

[Unknown Speaker]

Very few, seriously, very few were about.

[Susie Orman]

I have a million dollars here, $6 million there, and on and on. Today, the majority of the questions because most of those people now that are writing in listened to me from all of my books, watched me on TV all those years and now they're all multi millionaires, the majority of them, they all own one or two homes outright. They are all doing so great, I cannot even stand it. I'm so happy for them.

[Katie]

Well, that's a tribute to your work, so.

[Unknown Speaker]

But that's a tribute everybody to you.

[Susie Orman]

Can go from less to more. You can have money in your life. There is nobody out there that is excluded from being able to do that. The only person that excludes you from doing that is yourself. All right, kt, go on.

[Katie]

So Mike is saying that he and his wife are very, very fortunate and they plan on working until they're 62. So he's 61, she's 59, perhaps late and continue to work. My question is regarding RMDs. Have you done an episode or do you plan on doing an episode on what type of planning you should do three years prior to retirement? I find it all a bit confusing. I'm not sure how prepare if not, can you direct me to some resources on RMDs? I love you, Susie. I love your podcast and the community that's from Mike. We love you too, Mike.

[Susie Orman]

And the community that Mike is talking about is the women and money community. And if you simply go on Apple.

[Unknown Speaker]

Apps or Google Play, you get to.

[Susie Orman]

Download the app for free. And it's on that app that I say a lot of things that I do not say or do on the podcast. You know, kt, I think I answered him. But let me just tell you, Mike, the most important thing I think you should do, most important thing you asked three years before RMD start, what should you do? Why in the world would you wait.

[Unknown Speaker]

For three years before you take RMDs?

[Susie Orman]

Because you have to remember that they changed the RMD laws. I think it was the Secure Act 2.0. And I think KT, it was December of 2022. They changed the rules. Why are you laughing?

[Katie]

Because I can't remember what they did in December 2022. 22kt, how do you remember all these dates? Oh, my God, she's a genius.

[Susie Orman]

No, don't say that. I don't like when you say that.

[Unknown Speaker]

Anyways.

[Susie Orman]

Anyway, so they changed the rules. And these rules really apply to you, Mike, even more than me.

[Unknown Speaker]

Obviously.

[Susie Orman]

They changed the rule from RMD starting at the age of 72 to 73. But the big change is that starting in 2033, if you were born 1960 or later, RMDs don't start until you are 75. Now think about that. Here you are only 61. So that's 14 years from now. I don't care about three years before your RMDs. And now we have a really big problem. Why don't you. Now, if you can start to convert money From a traditional IRA or a traditional 401k or wherever it is to.

[Unknown Speaker]

A Roth IRA, a Roth 401k, why.

[Susie Orman]

Don'T you make sure that you're doing.

[Unknown Speaker]

Backdoor Roths or whatever? Because if you were to do that.

[Susie Orman]

Then you wouldn't be building on the money that you have in these retirement accounts right now. You would actually be building your Roth retirement accounts. So when the time comes, guess what? Your RMDs won't be that big anyway, just so you know. So that's really what I would be doing. There's all kinds of things that I could tell you to do that I'm.

[Unknown Speaker]

Sure I wrote you about, but that.

[Susie Orman]

Is the most important thing I want you to consider.

[Unknown Speaker]

All right?

[Susie Orman]

Because if you start planning now, you'll.

[Unknown Speaker]

Be very happy that you did 15.

[Susie Orman]

Or 14 years from now.

[Katie]

All right, KT, you don't like RMDs.

[Susie Orman]

I just think I'm mad at myself that we have to take them.

[Unknown Speaker]

I told you before, I told us.

[Katie]

A couple podcasts that you made a mistake.

[Susie Orman]

I made a serious mistake. And I was yelling at person I do all my money with.

[Unknown Speaker]

I was like, why?

[Susie Orman]

We were discussing what my RMDs are going to be. When should we take them? Should we take them in, like, kind.

[Unknown Speaker]

What should we do with them?

[Susie Orman]

And things like that? And I said, and why the heck didn't we convert in 2010 when we were able to convert all of it?

[Unknown Speaker]

Who cares if I would have paid taxes? I was allowed to pay taxes on.

[Susie Orman]

Over 2011 and 2012, not 2010. And for all these years, I would.

[Unknown Speaker]

Have had all this growth because I.

[Susie Orman]

Did magnificently, truthfully, kt, for us during all those years. And I'm like, what was wrong with me?

[Katie]

No. Ready? What were you thinking?

[Susie Orman]

I was not thinking.

[Katie]

All right, all right. I love this question, Susie. This is a need or a want question. All Right, girls from Eric, curious on your thoughts.

[Susie Orman]

Susie, another man.

[Katie]

Yeah, I picked a lot of guys. Susie, curious on your thoughts on investing in art and wine, Both solo, of course.

[Unknown Speaker]

You picked.

[Katie]

I love this question.

[Unknown Speaker]

Of course she did.

[Katie]

And actively managed with a company or through an app. So Eric's asking your thoughts on investing in art and wine. I love this question. I love.

[Susie Orman]

Why don't you answer it?

[Katie]

Yes, yes, yes. However, I'm going to answer if you can afford it. Because if this is a need or a want, it's really a want. And if you can afford to invest in art and wine. Boyfriend. Susie would say, do it, however.

[Susie Orman]

But you don't know.

[Unknown Speaker]

I would say that.

[Katie]

All right, so KT would say, boyfriend, do it. Now. Wait, KT has another bit of advice. I'd be very careful in who I invested with in terms of a company or an app. I think it's really important that maybe you start some direct investing, either with a small gallery that you know or with the wineries themselves. Every great winery here, just here in our own country in California, has fabulous programs. Investigate what you want to do before your investment.

[Susie Orman]

She's so proud of her answer.

[Unknown Speaker]

Everybody. Here's what I would tell you, Eric.

[Susie Orman]

There are more things than you realize when it comes to investing in art or wine. It's storing the wine. We have a very big wine collection.

[Unknown Speaker]

We do.

[Katie]

Yes, we do. Susie doesn't drink, by the way, everybody. She has a sip, maybe.

[Susie Orman]

When KT met me, I had already started to invest in wine, and I.

[Unknown Speaker]

Took her to a cellar that I.

[Susie Orman]

Had in New York, and she was very impressed with it. And of course, that investment went into her stomach. But that is besides the point.

[Katie]

No. Went into a fabulous fine glass.

[Susie Orman]

That's right.

[Katie]

With a great dinner.

[Unknown Speaker]

Yes.

[Susie Orman]

But it cost me a lot of money to store those wines. Just so you know, it costs us money today to store all the wines and insure them. And insure them. All right, now let's move on to art. We invested in some art, and we thought we were going to do great with it. And one of the pieces that we.

[Unknown Speaker]

Had evaluated the other day actually has.

[Susie Orman]

Gone down in value rather than up. And so when it also comes to art, you have to insure your art. So there is a cost to protecting these investments. And therefore, you better take that in to consideration. So, Eric, you better know what you're doing, because chances are it might not be as great as an investment as you think, after all the costs, especially if you don't have a reputable Person to guide you.

[Katie]

Start with the wine.

[Susie Orman]

Also, I have to say one other thing. Most people who invest in serious pieces.

[Unknown Speaker]

Of art, they invest because they love the art. They love it.

[Susie Orman]

They love looking at it. They want it around them. They don't necessarily care about selling it ever. They just kind of want it. But, kt, I know we can go on here. Why don't you tell them about the art that you missed investing in? Come on, a quick story. Come on, kt.

[Katie]

I was very, very good friends with Andy Warhol, everybody.

[Susie Orman]

And tell them what you passed up.

[Katie]

And I remember. And I was young. I was a young art director in New York at the time. And I remember. And Andy loved me. He would take.

[Unknown Speaker]

Everybody loves you, Katie.

[Katie]

He'd take me to Studio 54 and all those great night spots in New York. So anyway, I remember we were in his factory in New York City and. And he was doing all these silk screens of Chairman Mao and different portraits, his famous portraits. And he asked me if I wanted one. And I said, how much is it? He said, for you, $350. $350, everybody.

[Susie Orman]

And what did you say?

[Katie]

I said, well, let me think about it. Maybe. Maybe I'll get one next month or so. I didn't think at all about it.

[Unknown Speaker]

And I never could really afford it at that time.

[Katie]

No, no, no, no. I could afford it.

[Susie Orman]

But you didn't do it.

[Katie]

I didn't do it. Why? Because I thought I could just do this anytime. We're friends now.

[Unknown Speaker]

Just tell everybody what that sells for today.

[Katie]

I don't really know the exact price of his prints today.

[Susie Orman]

How many millions?

[Katie]

Millions.

[Susie Orman]

Many, many millions.

[Katie]

He had the Marilyn Monroe. He had quite a few famous, great, great portraits that you could have. Grace Kelly. Grace Kelly was a beautiful one. Yeah.

[Susie Orman]

All right, so anyway, you probably shouldn't listen to kt. All right, go on.

[Katie]

Okay, so next question. Stick with the wine.

[Susie Orman]

There was another thing she passed up that would have made her so wealthy it's not even funny. But we can talk about that another time.

[Katie]

Coffee, right? The coffee story.

[Susie Orman]

Yeah. Oh, God, it kills me.

[Katie]

All right, next question. Let's get into my questions. I have a mountain of questions. Hi, Susie. Let me start by acknowledging you as a trailblazer and beacon of light for all of us women who want to take charge of our lives and finances. Thank you. And I am. This is from Darshais. She said, I am a recently widowed retired veteran spouse. Equity in the home that we purchased in 2005 has doubled. The present mortgage rate is 3.5% with a balance of $116,000. The home was built in 1986. It's presently worth about $270,000. Susie, I would like to do some renovations and have been thinking about using the equity to acquire upfront cash. A 30 year refinance loan, especially with rates in excess of 7% is out of the question. What would you suggest as an alternative to acquire cash without losing my current rate of 3.5%?

[Susie Orman]

Here's the scoop, girlfriend, you didn't list in this email. And first of all, both KT and I are very, very sorry for your loss. And the truth of the matter is that if you want to do some renovations, you didn't tell us any other alternatives that you have for cash, meaning a retirement account, an investment account, anything. El going to assume this is the only way that you can do it.

[Unknown Speaker]

So if I were you, I would.

[Susie Orman]

Simply do, even though I don't suggest it right now because interest rates are so high, but I would seriously simply not refinance my home.

[Unknown Speaker]

I would try to do a home.

[Susie Orman]

Equity line of credit in the hope that they see that you have enough income and everything to qualify for that. When interest rates go back down again, if you want, you could then possibly refinance all of it back to maybe 3.5% or who knows what. But here's something that I just want.

[Unknown Speaker]

To say for all of you.

[Susie Orman]

If you ever do refinance in any situation, if you have, let's say a 30 year mortgage, you have been paying on it now for seven years, you have 23 years left now, interest rates have come down and you've decided, all right, I want to refinance. And if you refinance for another 30 years now, you have totally obliterated the reason that you should really be refinancing. So if interest rates come down and you do refinance and let's say you owe 23 years still on your mortgage, then you would refinance for 20 years, never refinance for longer than the period of time you currently have left on your mortgage. All right, KT got any more for me or is that it?

[Katie]

That was it.

[Unknown Speaker]

Are you sure?

[Katie]

Yes.

[Susie Orman]

All right.

[Unknown Speaker]

Because guess what? I have for you a quizzy.

[Susie Orman]

And everybody, this is a great quizzy.

[Unknown Speaker]

I love this quizzy.

[Susie Orman]

But it's not just for kt.

[Unknown Speaker]

As I say every week, it's for you as well.

[Susie Orman]

How would you answer this question? Because there will be many of you out there who happen to be in.

[Unknown Speaker]

This exact situation are you ready, kt?

[Katie]

I'm ready.

[Susie Orman]

This is from Ashley.

[Unknown Speaker]

And I picked it because I bet.

[Susie Orman]

There'S a lot of our younger listeners that are in this exact situation. Hi, Susan.

[Unknown Speaker]

Kt, you two are the best.

[Susie Orman]

All in capitals. You helped me fund my first Roth, buy our first place in New York City, and start investing on my own. I fired my financial advisor, whom I never heard from. Dollar cost averaging.

[Unknown Speaker]

Yeah, baby.

[Susie Orman]

So here I am at another big life step, having a baby.

[Katie]

Yay.

[Unknown Speaker]

It's so easy to calculate the cost.

[Susie Orman]

Of affording a home, but it's so hard, all in capitals, to find info on whether you're financially secure enough to take care of another tiny human.

[Katie]

So sweet, Ashley.

[Susie Orman]

And she says this is all, not only some of it in capitals, but bolded. I'm very worried about the financial stress of this step, even if it's an amazing one.

[Unknown Speaker]

Just the cost of daycare in our area.

[Susie Orman]

Write it down. KT is $3,500 a month. And my husband and I are willing to postpone kids till it makes sense financially. Adoption is always an option.

[Katie]

Good for her. Good for you, Ashley.

[Susie Orman]

I have to tell you.

[Katie]

Love that.

[Unknown Speaker]

But here is Ashley's situation.

[Susie Orman]

Now, everybody that you have to write down. The monthly income is about $10,000 after taxes, plus bonuses. And so therefore, it's about, in my estimation, and I'm the one doing this, about $15,000 a month after taxes. They have $86,000 in an emergency fund. Their retirement investments are about $138,000. Their monthly expenses are $6,000, including mortgage, insurance, food and transport. Now, what I'm not exactly clear about.

[Unknown Speaker]

With all this, everybody, is does that.

[Susie Orman]

Include the savings into retirement accounts and things like that? I'm not sure, but we will just take her word for it, that it's $6,000. So the question is, KT, with all.

[Unknown Speaker]

Of that, do you think that she.

[Susie Orman]

Has enough money at this point in time to have a baby? Everybody, think about it, please.

[Unknown Speaker]

Add in at least the cost of daycare.

[Susie Orman]

And she does not say how old she is, just so you know.

[Katie]

Okay, I have my answer.

[Unknown Speaker]

That was quick.

[Susie Orman]

I can't wait to hear this.

[Katie]

All right, so her expenses right now, including daycare with the baby, is about $9,500 a month, let's say. Those bonuses don't really come to fruition as much as we want them to. So you're estimating 15,000 dol a month of income?

[Susie Orman]

Yeah. And the reason I'm doing that, kt, is she also says their Annual income before taxes is $237,000. So in the state of New York, you have cities.

[Katie]

All right, all right, all right. So let me just get to my point.

[Susie Orman]

I feel comfortable with that. $15,000.

[Katie]

Okay, so let me just get to the point here. I would wait a little bit before I had the baby, and I'll tell you why. I think if you have a little bit of a. I would put another bucket in your list here called baby fund. I would build a little more of a cushion just for the what ifs of having a baby. And I would eliminate the most important thing you put in this email, which is the word stress. You cannot get pregnant and enjoy nine months before your little tiny human arrives and have any stress. So just wait maybe two years if you can. Again, we don't know how old you are, but if. If you could wait two years, you could probably acquire a great deal of money in just a baby fund.

[Susie Orman]

So that's your answer?

[Katie]

That's my answer.

[Susie Orman]

There is no right or wrong answer here.

[Katie]

No, because we love babies and we think it's great.

[Susie Orman]

So let me tell you how I think about this and what I would.

[Unknown Speaker]

Tell you to do, Ashley. Right?

[Susie Orman]

And again, I'm not going to approve or deny because you're the one, once again, that has to make this decision. But I just want to give you a little bit more information about how to make this decision. Your income and bonuses again, after tax, 15,000. We all know that. 86,000 in emergency savings expenses and things like that.

[Unknown Speaker]

All right?

[Susie Orman]

We all know your money. What is not in this equation is.

[Unknown Speaker]

The cost of a child today. Forget daycare, forget that there are costs.

[Susie Orman]

To having a child. And it comes out to be approximately $25,000 a year till about the age of 17 or 18. And that does not include, by the.

[Unknown Speaker]

Way, saving for college. So what we have to do is we have to add $2,000 to your actual cost.

[Susie Orman]

Not just $3,500 a month, but another 2,000amonth.

[Unknown Speaker]

So that's $5,500 added to what you say of 6,000.

[Susie Orman]

So let's just say your monthly expenses now are $12,000 a month.

[Unknown Speaker]

So here's what I would like you.

[Susie Orman]

To do to see if you're figuring things correctly. If it is true that Your expenses are $12,000 a month, and now you have approximately $15,000 a month of income, the difference there is $3,000 a month.

[Unknown Speaker]

Correct, Ashley, for you to just get by with this child, therefore, for the.

[Susie Orman]

Next six months, I want you to play having a child. In fact, what you should do is put away anywhere from three to six thousand dollars a month into a high yield money market account and see how.

[Unknown Speaker]

It feels that you have this child.

[Susie Orman]

And you have an additional, let's just say $6,000 of expenses from what you have right now. Because I'm just going to assume that the difference between what your expenses are now and your income you're putting away in savings. So let's just say you do increase by $6,000 a month. You put $6,000 a month away for one year and see how it feels. Now you have to ask yourself the question, was that easy for you to do?

[Unknown Speaker]

You should set a date at the.

[Susie Orman]

First of every month that you put that money away. Can you put it away on the 1st of every month?

[Unknown Speaker]

Or is it too hard for you to do that?

[Susie Orman]

Can you not afford it? Was there a month that you could not do it? Was your lifestyle changed dramatically because you.

[Unknown Speaker]

Had to do that?

[Susie Orman]

And if it was changed, how did it change? Now, obviously your life's going to change when you have a baby and you're.

[Unknown Speaker]

Going to be just like everybody else.

[Susie Orman]

You're going to experience love, at least this is what everybody else says, more than you've ever experienced love in your life. So it's going to be fabulous. However, can you easily afford it before the baby comes? Now here's the good news.

[Unknown Speaker]

If you're able to do that, let's.

[Susie Orman]

Say put $6,000 a month away for a year, now you have an additional $72,000, my love, to add to your emergency fund, which will then bring you to a total of $158,000. And that's one year of living expenses if something goes wrong so that you can maintain everything even if you can't work or whatever it may be.

[Unknown Speaker]

That is how I would decide if I were you, if you could easily afford a child without stress.

[Susie Orman]

Kt, how was my answer?

[Katie]

Ding, ding, ding, ding, ding.

[Susie Orman]

Thank you, girlfriend.

[Unknown Speaker]

All right, everybody.

[Susie Orman]

There's only one thing that we want you to remember, and it's this.

[Katie]

People first, then money, then things.

[Susie Orman]

Now you stay safe. See you soon.

[Unknown Speaker]

Bye bye.

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.