Ask KT & Suze Anything: Unleash The Beast

Summary

Podcast Summary: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Episode: Ask KT & Suze Anything: Unleash The Beast
Release Date: February 20, 2025

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Introduction

In this engaging episode of Women & Money (And Everyone Smart Enough To Listen), renowned personal finance expert Suze Orman teams up with KT to address a variety of listener questions. The episode, titled "Unleash The Beast," delves into critical financial topics ranging from investment strategies to managing debt and safeguarding one’s financial future. Suze and KT provide actionable advice, drawing from Orman's extensive 40-year experience in personal finance.

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Honoring Suze Orman's Latest Publication

The episode kicks off with KT congratulating Suze Orman on the release of her updated paperback bestseller, The Retirement Guide for 50 Plus for Everybody. Suze emphasizes the importance of the updates, stating:

"We did redo the book and we did do all the updates because there were so many."
(00:33)

KT highlights the book’s accessibility and encourages listeners under and over 50 to engage with the material, asserting its universal relevance.

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Listener Stories: Lydia's Financial Awakening

Lydia shares her transformative journey towards financial literacy after her husband introduced her to Suze’s podcast:

"In just a few months, I became so much smarter when it came to our finances. I now ask questions about everything..."
(03:38)

Suze responds by probing what motivated Lydia to take control of her finances, emphasizing the importance of understanding one’s financial triggers.

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Investment Insights: ETFs vs. Individual Stocks

Joanna queries the mechanics of dividend distribution in ETFs compared to individual stocks. Suze clarifies:

"You get to choose. Do you want to reinvest the dividend so it buys more shares or do you want the dividend passed out to you, distributed to you for income?"
(05:44)

She outlines the pros and cons of ETFs and individual stocks, advising a balanced approach based on the investor’s risk tolerance and involvement preference.

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Protecting Your Future: Must-Have Financial Documents

Jackie seeks advice on the validity of her previously purchased financial documents amid recent fires in Southern California. Suze reassures:

"The purpose of those documents is for you to protect yourself. And if you bought them and you haven't used them, of course it's still valid."
(08:03)

She encourages listeners to update their documents through the provided helpline, ensuring their financial affairs remain current and protected.

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Navigating Grief and Investments: Colleen's Dilemma

Colleen, grieving the unexpected loss of her husband, questions whether to continue using her financial advisor or invest independently. Suze advises:

"You should not do anything with that money. ... I would not be investing in any of it right now until you no longer feel that you're in deep grief."
(11:03)

Emphasizing emotional readiness, Suze recommends maintaining the status quo until Colleen feels more secure in her emotional state.

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SEP Roth IRAs Availability

Michelle raises concerns about the availability of SEP Roth IRAs from major brokerage firms. Suze expresses frustration:

"Start complaining to Vanguard, Schwab, Fidelity, all of them, and say, what the heck is the matter with you?"
(13:41)

She encourages collective action among listeners to prompt these firms to offer SEP Roth IRAs, highlighting the gap between legislation and brokerage offerings.

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Managing Insurance Policies: Mr. T's Query

Mr. T discusses his variable adjusted life insurance policy and potential losses. Suze recommends:

"I would surrender it now. Get $15,000 ... and then start investing it on a value cost averaging basis or dollar cost averaging basis in either ETFs and or individual stocks."
(16:27)

She advises moving away from high-fee insurance products to more controlled and tax-efficient investment avenues.

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Mortgage Decisions: Karen's Conundrum

Karen contemplates paying off her $80,000 mortgage amid her husband's potential job loss. Initially suggesting immediate payoff, Suze refines her advice:

"Until he loses his job, keep everything a status quo. If he does lose his job, then take the 80,000 out of savings and pay it off."
(19:17)

Suze advocates for strategic timing in debt repayment to maximize financial stability.

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Term Life Insurance: Colleen’s Concerns

Another Colleen inquires about her 20-year term life insurance policy worth $150,000. Suze explains:

"The purpose was knowing that it was going to end with absolutely no value whatsoever."
(21:26)

She advises maintaining the policy if necessary or ceasing payments if no longer needed, cautioning against relying on secondary markets to sell term policies.

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Roth IRA Penalties: Samia's Situation

Samia asks whether withdrawing her Roth IRA before five years incurs penalties. Suze clarifies:

"There is no penalty. There is no tax. ... No taxes or penalties whatsoever."
(24:18)

Reiterating Roth IRA flexibility, Suze reassures that contributions can be withdrawn anytime without repercussions.

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Paying Debt vs. Investing: Natalie's Dilemma

Natalie wonders whether to prioritize debt repayment or investing. Suze decisively advises:

"Ding, ding ding, ding, ding, ding, ding ding. Right, so."
(25:28)

Highlighting the higher risk and cost of debt, especially high-interest debt, Suze underscores the importance of eliminating debt to free up resources for future investments.

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Cryptocurrency Scams: Maria’s Experience

Maria shares her ex-husband’s experience with a crypto scam known as "pig butchering," losing significant life savings. Suze educates listeners on the nature of such frauds:

"They fatten up, so to speak, their victims by building trust over time... and then they, in essence, slaughter them."
(29:00)

Drawing parallels to Bernie Madoff, Suze warns against investment opportunities that promise unrealistic returns and emphasizes vigilance against financial predators.

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Conclusion

Suze and KT wrap up the episode by reinforcing the central theme:

"People first, then money, then things."
(32:32)

They urge listeners to prioritize personal well-being and security over financial pursuits, concluding with a spirited affirmation of strength and resilience.

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Key Takeaways

• Prioritize Financial Security: Establish emergency savings and protect your financial foundation before pursuing higher-risk investments.
• Understand Investment Options: Choose between ETFs and individual stocks based on your risk tolerance and investment style.
• Update Financial Documents: Regularly review and update your legal and financial documents to ensure they remain relevant and effective.
• Emotional Readiness: Make investment decisions when you are emotionally prepared, especially after significant life events.
• Combat Financial Scams: Stay informed about investment frauds and exercise caution with opportunities that seem too good to be true.
• Debt Management Over Investing: Focus on paying down high-interest debts to create a stable financial base for future investments.

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Notable Quotes

• Suze Orman on Financial Foundations:

  "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."
  (00:00)

• Lydia on Financial Empowerment:

  "Thank you both for unleashing the beast within me so that I can be that financially savvy woman I was meant to be."
  (04:27)

• Suze Orman on Investment Choices:

  "If you are talking about credit card debt at a high interest rate, pay it down... If you're talking about mortgage debt that's at 2%, then you can easily pay that and invest."
  (25:51)

• Closing Affirmation:

  "People first, then money, then things."
  (32:32)

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This episode offers a wealth of practical financial advice, addressing real-life scenarios with clarity and compassion. Suze Orman and KT's dynamic interaction provides listeners with valuable insights to navigate their financial journeys confidently.

Transcript

[Suze 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]

We are strong, we are wise we will not apologize we are here we will thrive Together we will rise With a little bit of faith and everything it takes we are strong, we are wise Together we will rise.

[Suze Orman]

February 20, 2025 welcome, everybody, to the Women and Money podcast. And everybody's smart enough to listen. Today is blinking kt. Stop belie.

[KT]

When you say blinking kt, that sounds like you know you're beeping or blinking me out as a swear word or something, doesn't it?

[Suze Orman]

No, it means that you're blinking.

[KT]

Bleeping. Bleeping.

[Suze Orman]

I'm not bleeping you. I'm blinking you today. Wait. But blinking KT and Susie Anything show, which means if you have a question and you want to write in, and if KT chooses it, it will be on the podcast. Write Ask Susie s u z epodcastmail.com and there you go. All right. What is it that you want to do? Wait, you want to.

[KT]

Congratulations, Susie. I want to congratulate you.

[Suze Orman]

On what?

[KT]

KT on, your last New York Times bestseller is now out in paperback. The retirement guide for 50 plus for everybody. Not Just Women and Money. For everybody.

[Suze Orman]

It came out on February 18th, right? That was two days.

[KT]

Yeah. Good job, Susie. Wait. It's completely updated. I mean, it's a really great. It's a nice sized book, too. It's easy to carry around. I like it. It's pretty.

[Suze Orman]

Well, if KT likes it, that's the good enough reason why you should all go out and get it. But truthfully, everybody, we did redo the book and we did do all the updates because there were so many.

[KT]

So many.

[Suze Orman]

So if you.

[KT]

It's like a new book. It's like a new book.

[Suze Orman]

Venture into once again, the ultimate retirement guide for 50 plus.

[KT]

And if you're under 50, get it now, so you know everything by the time you're 50. And if you're over 50, it's never too late.

[Suze Orman]

But it's 50 plus.

[KT]

Yeah.

[Suze Orman]

50, 60. This is going to be one of those podcasts. All right, shake your head.

[KT]

I'm blinking and shaking at the same time. Everybody, this is from Lydia. Hi. Susie and kt. Up to a few months ago, I was totally oblivious to my financial status. You're not alone. Although my husband asked me numerous times to get involved in our finances, my mantra was, as long as our bills are paid, I'm good. This changed when my husband came across across your podcast and suggested I listen to a few episodes. At 61 years old, I was drawn in and I got hooked. See Susie, they get hooked on you or do they get hooked on me?

[Suze Orman]

Can you just read?

[KT]

In just a few months, I became so much smarter when it came to our finances. I now ask questions about everything. Why we open certain accounts, what are the IDs and passwords, how are we funding the accounts? This also included speaking up when I didn't agree with the decision. In addition, I started sharing your wisdom with my daughter in law after hearing you say on one of your podcasts, who is teaching our young women to be smart with money. Thank you both for unleashing the beast within me so that I can be that financially savvy woman I was meant to be. That's from Lydia. Isn't that great Lydia? So she doesn't have a question. I just had to share that with everyone.

[Suze Orman]

But Lydia, I just want to say this to you and everybody listening, which is this, what is it? When you finally turn that switch on, what happens? Because so many of you seriously are still like, I don't want to go there. I don't want to do it. I don't need to know. I don't. And so it'd be so fascinating to be able to harness the answer to that question. What triggered you to want to be involved with your true financial life support system known as money? Next question. Kt.

[KT]

Okay, this is from Joanna. Joanna said, hi Susie and kt. I love listening to you both each week. And now that I am 62 and reorganizing my funds, I need to ask a question. If I invest invest in a dividend etf, when the stocks within that ETF issue quarterly dividends, will I get some of that money or will it just go into the ETF itself as a gain? Would I be better off buying individual stocks where I get paid their dividends directly? Please educate me as to how the disbursements work. Great question, Susie.

[Suze Orman]

So Joanna, here's what you need to know. First of all, when you have an ETF or any dividend paying stock, even if it's an individual stock, you get to choose. Do you want to reinvest the dividend so it buys more shares or do you want the dividend passed out to you, distributed to you for income? Either way, you're going to pay tax on it. But you get to choose one way or the other. So it's not like the ETF automatically does that you get to choose. Now, let's just quickly look at the advantages and disadvantages for an etf. The truth of the matter is you're doing it very passively. They're choosing all the stocks, they're doing everything for you so you have less risk with that. And if one of the companies in the ETF happens to reduce or cut its dividend, that's not that big of a deal because of how many stocks you probably own. The disadvantage is that you will get a slightly lower Yield because all ETFs have an expense ratio. Individual stocks, on the other hand, you get to directly control which companies you want. They pay you directly. However, there is a higher risk because if one company reduces or eliminates its dividend, you're kind of stuck with that one stock. So if you want passive income and less risk, do the etf. If you enjoy researching companies and managing stocks, do individual stocks. It's just that simple. Or do a combination of them both.

[KT]

All right, kt, next question. Susie is from Jackie. I purchased the must have documents some years ago after seeing you, Susie, on pbs. Great show. I have yet to use them because I was scared. I am no longer scared. I live in Southern California and after the fires, I decided I must get my affairs in order. So that's it. I'm doing it. Susie, can I still use the documents and the code? Is it still valid? As always, thank you for your honest financial guidance.

[Suze Orman]

Yeah. Let me tell you all something about the must have documents. I don't care if you bought them in the year 2000-2005-2010-2015, 2020 or this year. The purpose of those documents is for you to protect yourself. And if you bought them and you haven't used them, of course it's still valid. But the good news for you, Jackie, is that truthfully, when you go, it will say update and it will update it to the current ones that are brand new and out this year. So it's just that simple. And if you lost your code or whatever, just call the helpline and they will help you. So unlike any other program out there that every time there is an update, buy it again. Buy it again, Buy it again. It was done so that you only needed to buy it once and you never need to buy it again. Therefore, if you don't have it yet. Go to musthavedocs.com and you can get a will, a living revocable trust, an advanced directive and durable power of attorney for health care, as well as a financial power of attorney, all four $99, $2,500 worth of state of the art documents. Are you kidding me?

[KT]

All right, kt, all right. Question is from Colleen. And Colleen, I first want to say that we send our condolences. She said, susie, my husband passed away very unexpectedly recently. We have three young children. My husband had life insurance, and after his passing, I invested the majority of the payout with a financial advisor at Edward Jones, a family referral as I had little investment knowledge. For all of you listening, I'm going to give you a real quick summary. $150,000 is in an advisory account. A million in a money market. She maxes out her 401 contributions every year. And she has a small Fidelity advisory account, less than 10,000 that she's kept to learn how to invest independently. Susie, I've been dedicating a little time to learning about investments by listening to your podcast. And I want to make informed decisions about my financial future. The question is, should I keep my investments with a financial advisor or invest independently? And then I read on and she said, Colleen said she's still in deep grief about losing her husband and she's worried about that if she does this, she'll be doing maybe the wrong thing. Yeah, she's also taking care of three young children. So very difficult.

[Suze Orman]

So, Colleen, my love, first of all, as KT said, our love does go out to you. But I've always had a rule of thumb that you are to do nothing with money other than keeping it safe and sound for at least one to two years or longer after suffering the loss of a loved one. You are a little bit over one year of suffering that loss, but you are still in deep grief about losing your husband. Therefore, you should not do anything with that money. And I mean anything. Maybe if you wanted to get out of credit card debt or pay off a mortgage or something like that, okay, But I would not be investing in any of it right now until you no longer feel that you're in deep grief. So, all right, you have a million dollars in a money market account, okay, you have $150,000 in an advisory account. If the financial advisor happens to call you and say to you, hey, you know what? There's a good thing you should do with money, let's take some of that million and do it. You are to say no, Absolutely not. You still want to play with the $10,000 that you have in your Fidelity account? Okay, I don't have a problem with that. But the goal of money is for you to be secure. And the mere fact that you wrote me this question. How many times have I said to all of you, you don't ask me a question like this without already knowing the answer. So there's something about this that makes you feel uncomfortable. Maybe with the brokerage firm, maybe whatever, I don't know. But I would not be investing any other money at all until you are no longer in deep grief. You are even no longer in shallow grief, but that you're feeling more in touch with who you will need to become.

[KT]

All right, kt, that's nice. So this next question is from Michelle. I know that under the Secure Act 2.0, SEP Roth IRAs are allowed. However, none of the major brokerage firms, Vanguard, Schwab Fidelity offer SEP Roth IRA accounts. Susie, do you know of any reputable firms that are offering it yet? I'd like to know that.

[Suze Orman]

So don't ask me why that. We're a year and a half almost into when this was passed and these brokerage firms still don't want to offer them. I can't understand why that is so. There are some firms that are offering them, but they're not big name firms. So I would be hesitant to recommend them to you. But all of you should start complaining to Vanguard, Schwab, Fidelity, all of them, and say, what the heck is a matter with you? It's legal. You should be offering them. Why aren't you? I've tried and I can't get an answer from them. So maybe in mass, if you are all to write them, maybe we can change it. Because there is no reason in the world that they're not offering them. But sorry about that. So aggravating.

[KT]

Kt, I think I know the answer. Why they're not. They didn't do it yet. It takes. They're like slowpokes. It takes a long time for them to change the system. The literature.

[Suze Orman]

Stop getting computer. Don't act.

[KT]

Katie.

[Suze Orman]

It's almost. It's a year and a half now.

[KT]

They should have done it.

[Suze Orman]

They have at least IRAs. It is not a big deal to switch it to a Roth ira. SEP ira. Do not give them excuses, okay? They're all just not wanting to do it.

[KT]

All wise, Susan. Kt, I'm hoping you can provide some guidance. I love. This is from Mr. T. Mr. T in Virginia. I love this question.

[Suze Orman]

What did Mr. T. Old wise.

[KT]

Wrong. Old wise.

[Suze Orman]

Susie, Whenever a man starts with a kind of a wise thing, it's because he's done something that he knows I'm going to yell at him about. What did he?

[KT]

20 years ago, I was sold a variable adjusted life insurance product. I know. You knew that. When it's all wise, it's like.

[Suze Orman]

I knew it.

[KT]

Mr. T. Luckily it was a relatively small policy for $300,000. I don't think that's small.

[Suze Orman]

Well, that's the death benefit. That's not a big deal.

[KT]

Yeah, but still. And cost around $80 a month.

[Suze Orman]

That's a big deal.

[KT]

That is. I now know this was a bad choice. Wait, Mr. T. Put that in bold. All caps. The surrender value is nearly $15,000 and the cost basis is around $19,000. Is it best to move this to my primary financial institution, which is Fidelity, as a variable annuity, until I recover the loss or some alternative? Upon recovering the $4,000 loss, what is the next best step? Please show some pity on this fool.

[Suze Orman]

Sincerely, Mr. T. Oh, my dear fool. Mr. T, you're not a fool. You're not a fool, sweetheart. It's. You're brave.

[KT]

You're brave to give Ms. Orman an insurance question.

[Suze Orman]

So here's what I would do really, if I were you. There's no reason for you to keep it in this policy anymore because there are fees in this policy. It just doesn't make sense. Never did, never will. Therefore, you cannot take the $4,000 loss off your taxes. Fine. No problem. But if I were you, I would surrender it now. Get $15,000 will not be taxable to you because you didn't make money. And take that $15,000 and then take it to your primary financial institution, Fidelity, and just start investing it on a value cost averaging basis or dollar cost averaging basis in either ETFs and or individual stocks and just make it up that way. Remember, in an annuity in this life insurance product, when you were going to take money out, chances are you'd have to pay ordinary income taxes on it. So you would have lost the gain possibly if it went above what you put in in taxes anyway. When you are going to invest it now and put it in ETFs and stocks while they're in there, you're not going to be paying any taxes. It's tax deferred. And if you eventually sell them and you've had your money in there for longer than a year, you'll Pay capital gains. So that's what I would do if I were you. I would get out, out, out, young.

[KT]

Mr. T. Okay, next question is from Karen. Hi, Susie and kt. You guys are so wonderful. Yes, we are so wonderful. We've learned so much.

[Suze Orman]

She's still blinking.

[KT]

No, I'm not.

[Suze Orman]

I'm telling you, you are. I'm looking. Stop it.

[KT]

Kt, we have a very important decision to make. My husband has a good chance of losing his job due to the government cutbacks.

[Suze Orman]

You and like, 20,000 other people.

[KT]

No. I'm so sorry. Sor. Very Karen, to hear this. He is 65. I am 66 and a half. We are considering pulling out of our savings to pay the house off. My question is, is this the right thing to do?

[Suze Orman]

So does it say how much she still owes on her house.

[KT]

Mortgage? Balance is $80,000.

[Suze Orman]

All right. Not bad.

[KT]

And there's a whole financial list of what she's got.

[Suze Orman]

But not.

[KT]

Not so bad.

[Suze Orman]

All right, here's what I would do.

[KT]

Make it a quizzy.

[Suze Orman]

I'm not making. I have your quizzy.

[KT]

Oh, all right. Because I have your quizzy. I know the answer to here. Yeah.

[Suze Orman]

What's the answer?

[KT]

Do it. Why it's not $80,000. Pay it off. Own your home outright. All right. Go ahead.

[Suze Orman]

I can't even believe it. Look, you're a little thingy today. You're like, what are you? A little twitchy?

[KT]

A little speedy.

[Suze Orman]

A little speedy. All right.

[KT]

So good coffee.

[Suze Orman]

So, Karen, here's what I would do. I would continue to do everything just like you are doing it. Once he loses his job, then I would go and take the $80,000 out of savings, because I see you have 335,000 in savings, but take the 80,000 out of there and pay off the mortgage at that point in time, but not now because we don't know that he's going to definitely lose his job. So you can always pay off the mortgage, but why not let the 335,000 grow and make a nice interest rate? Because your mortgage balance is just going to continue to go down. So until he loses his job, keep everything a status quo. If he does lose his job, then take the 80,000 out of savings and pay it off.

[KT]

Okay. I was partially right.

[Suze Orman]

Kt, you're either right or wrong.

[KT]

I was partially right.

[Suze Orman]

You were wrong.

[KT]

Partially right.

[Suze Orman]

You were wrong.

[KT]

Colleen, you were wrong. Hello, Susie.

[Suze Orman]

You were wrong. You were wrong.

[KT]

All right.

[Suze Orman]

You were wrong. Just say it.

[KT]

Okay. I was wrong. I was almost right. I was wrong. But close to being.

[Suze Orman]

Well, you. Oh, God, she's getting to me today, everybody. Go on.

[KT]

Next question is from Colleen. Hello, Susie. I have a term life insurance policy for $150,000. Ready for this? I've had it for 20 years.

[Suze Orman]

That's not unusual, Katie.

[KT]

No, but, but that's a long time. But here's the big question.

[Suze Orman]

No, it's not a long time for term. Most people buy term policies for 20 or 30 years. They don't buy it for a short period of time because they want their premiums to stay stable for the entire term. So that's normal.

[KT]

So this is the question. Is this normal? What can I do to keep it or at least get some of my money back?

[Suze Orman]

Well, that's normal. Kt what am I going to do? Everybody? Can you just tell me what am I going to do anyway? So, Colleen, what can you do to keep it? Just keep paying your premiums. There was a reason why you originally got $150,000 term policy. Chances are you got it 20 years ago when somebody was financially dependent on you. And now there's nobody financially dependent upon you if something, God forbid, were to have happened to you. So if you don't need it anymore, then just stop paying for it. Or there are companies that will buy a term life insurance, viatical companies is what they're called. Right. That will buy them from you even if they are term policies. Haven't you been watching tv? And when you watch it, there's these people that are like in a mine and people above them are like hearing noises and they're saying they don't even know they're living on a gold mine. But anyway, that was our advertisement for people like you who want to sell those policies. But I have to tell you the truth, I don't know the name of any companies because it's not really something that I believe in. It just chances are you're going to end up just stopping to make the payments. Right? But remember, you got that term policy knowing that it was going to end with absolutely no value whatsoever. All right.

[KT]

Okay, next question is from Sam. But I think this is a woman. Her name is Samia and she signed it Sam.

[Suze Orman]

All right.

[KT]

In 2021, 2022 and 2023, a 30 year old contributed to a Roth a total of $18,500. In 2024, ready 30 year old, he cashed out the Roth IRA and got $17,000. He has a loss of $1,500 being the distribution was made before five years and he's 30 years old, does he still have to pay a 10% penalty even though he has a loss? Does he have to pay any other things on the loss?

[Suze Orman]

Should that be your quizzy?

[KT]

I think that you do have to pay a penalty if you're 30 years.

[Suze Orman]

Old and you're Sam. The thing you need to know is no. There is no penalty. There is no tax. Because with a Roth IRA, you can take out your original contributions anytime you want without taxes or penalties, regardless if it's been in there less than five years. And if you're less than 59 and a half years of age. I've said it over and over and over and over again and KT is looking at me like it is the very first time she's ever heard that. That is besides the point. So no, is no tax or penalty owed because he put in 18,500 of his original contributions. He only took out 1,700. No taxes or penalties whatsoever. All right, KT.

[KT]

Okay, my next question, Susie, is from Natalie. What is more important, pay down debt or invest? Hard to know what my return will be on my investments. How do I know if I have the right balance?

[Suze Orman]

Do you want that to be your quizzy?

[KT]

Invest or. Hold on. All right, I can make this my quizzy.

[Suze Orman]

Wait, you've already blown two quizzes.

[KT]

What's more important, paying down debt or invest Personally, I would pay down my debt.

[Suze Orman]

Ding, ding ding, ding, ding, ding, ding, ding ding. Right, so.

[KT]

Oh good.

[Suze Orman]

I'm so glad because she's always so upset after these podcasts are over.

[KT]

That's a good one, right? I would pay. Susie hates debt. Yeah, I know that. That's always going to be a winning.

[Suze Orman]

You said it in your email. Which is hard to know what my return will be on my investments. I know the markets have been going up. I know Palantir is Now at almost $122 a share. I know all of those things and it makes you go, oh my God, I'm missing out. I'm so upset I didn't participate. Oh my God. However, it could be the other way as well. I always give the example of 2007, 2008, where you decided, you know what, I'm going to take my money that I should be paying down my debt with and investing it. And then you've lost all of it, almost or 50% of it, and you still have the debt. The truth is, it depends what kind of debt you are talking about. If you are talking about credit card debt at a high interest rate, pay it down. If you are talking about student loan debt that is at a high interest rate, pay it down. If you're talking about mortgage debt that's at 2% and you can easily pay that invest. So it depends what kind of debt. But chances are since you didn't say mortgage debt, you just said debt. Pay down your debt and then you'll have even more money to invest with the payments that you were paying on that debt.

[KT]

Do you have time for one more?

[Suze Orman]

One more. That's it.

[KT]

Right? This is the one that I thought was really scary about butchering. Can I read this?

[Suze Orman]

Butchering.

[KT]

Yeah. This should be the title. This should be our title. Ready? It says Susie and kt. Thank you for being you. Thank you for all the financial help you give ordinary people like me. I love Thursdays and Sundays. Ready? My ex husband, who has a law degree fell into an Internet crypto scam whereby he lost everything known as pig butchering.

[Suze Orman]

Butchering? Yes.

[KT]

I never heard that. Over 2 million in dividend producing stocks, another 1.5 million in retirement accounts and recently sold a fully paid off home and is now living with his 82 year old mother. He is only 56.

[Suze Orman]

Thank God it's her ex husband.

[KT]

Oh my God. But Susie, I never heard this. Point is, not everyone is aware of pig butchering. You reach so many people. Susie, I thought you would be willing to do a comment on what this is. There's nothing more heartbreaking than losing your life savings because you think you're going to make fast money on crypto.

[Suze Orman]

How much you want to bet me?

[KT]

Some things are too good to be true.

[Suze Orman]

Maria, how much you want to bet me that Maria actually divorced her husband because she was the one making the money and she was the one good with it?

[KT]

I don't know.

[Suze Orman]

I don't know.

[KT]

I don't know. But I know that I agree with you. I'm glad she's not married.

[Suze Orman]

No way did he earn this money because if he earned it, he probably would have lost it.

[KT]

So he was a player.

[Suze Orman]

He was a player.

[KT]

And that's what you keep saying about this cryptocurrency. If you're a player and you can afford to lose it, right?

[Suze Orman]

So let me tell everybody about pig butchering. And it really is a type of online investment fraud that's really very rampant. And this is where people, they manipulate their victims really into investing in all these fake ventures. And usually it's in cryptocurrency. And the term comes from KT in that you know how you fatten Up a pig before you slaughter it, right? I know she's looking at me like, don't say that. But it's true. That's what they do here. So they fatten up, so to speak, their victims by building trust over time, making their money go up and up and up, and then they, in essence, slaughter them. And that's what happens. And they do that by stealing their money. And they all, oh, I can go more and more into it, but it originated KT in China, and it's now all throughout the globe. So when something seems like it's too good to be true, it is.

[KT]

Reminds me of Bernie Madoff.

[Suze Orman]

I was just going to say that.

[KT]

I know Susie was asked, among so many of her friends that were invested with Bernie Madoff, said, susie, you got to get on board. And she kept saying, sorry, too good to be true. For me. I remember her in New York saying that over and over again.

[Suze Orman]

You want to know something, everybody? The house that we live in in the Bahamas, the reason that we were able to buy the land that we built this home on is that there was a woman who owned it. This was the premier lots on this island. It had a big house, blue house on it. And she not only owned this, but she owned two other lots as well. And so there was like a fire sale on these lots. And so we just bought them because it was like, I'll take those. And it was.

[KT]

It came on sale on a Sunday. And I'll never forget Susie hearing the price and said to the island manager, buy it. Buy it now, before Monday, before everyone else knows about it.

[Suze Orman]

But it's because she lost all of her money.

[KT]

To Bernie Madoff.

[Suze Orman]

To Bernie Madoff. He had gone to her kids, weddings, everything. So when it sounds too good to be true, it is. Don't go for these huge returns. And a lot of you are going to say, yes, I know, Susie, but Palantir sounds too good to be true. Although the difference between something like that and these other things is you have control of the money. You can buy and sell anytime you want. Nobody else is holding that money for you. It's in your name at a brokerage firm, so it's yours and you can cash it out anytime you want. Now, I have the hard job of Sunday following last Sunday's podcast, which Everybody loved with Mr. Fitz. So, anyway, we'll have to see what we come up with, but we will have him as a guest once a month or so so we can have his energy and discuss things that you need to know. But until then, there's only one thing that we want you to remember when it comes to your money, and it's.

[KT]

What Katie People first, then money, then things.

[Suze Orman]

Now you stay safe and healthy because there's a flu going around.

[KT]

Bye bye bye everybody.

We are strong, we are wise we will not apologize we are here 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.

[Suze Orman]

Hi everybody, Suzie 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 my A L L I A-N-T.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.

[Unknown]

Neither Susie Orman Media nor Suze 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.