Roth Conversions: What You Need to Know

Summary

Episode Summary: Roth Conversions: What You Need to Know

Podcast Title: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Host: Suze Orman Media
Episode: Roth Conversions: What You Need to Know
Release Date: August 14, 2025

In this episode, Suze Orman delves into the intricacies of Roth IRA conversions, providing listeners with valuable insights and answering real-life financial questions. The discussion ranges from equitable financial contributions within marriages to strategies for protecting investments against currency fluctuations. Below is a detailed summary of the key points, discussions, and conclusions drawn during the episode.

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1. Understanding Equitable Financial Contributions in Partnerships

Listener Question: Lisa inquires about equitable contributions towards monthly expenses when partners have differing incomes.

• Key Discussion:

  • Suze emphasizes the importance of equal percentages rather than equal dollar amounts to ensure fairness in financial contributions.
  • Example Provided:
    • If one partner earns $7,000 and the other $3,000 monthly, with total expenses at $3,000, each should contribute 30% of their income. This translates to $2,100 from the $7,000 earner and $900 from the $3,000 earner, totaling the required $3,000.

• Notable Quote:

  "Not equal amounts of money, but equal percentages, which is going to change your entire email question."
  — Suze Orman [04:17]

• Suze's Advice:

  • Beyond financial contributions, Suze advises addressing household chores to maintain overall equity.
  • Encourages open dialogue to ensure both financial and domestic efforts are balanced.

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2. Roth IRA Conversion Rules and Implications

Listener Question: Albert, a 57-year-old, seeks clarity on Roth IRA conversion rules, specifically concerning the five-year rule and taxation.

• Key Discussion:

  • Each Roth IRA conversion initiates its own five-year rule, regardless of the Roth IRA's existing duration.
  • Tax Implications:
    • Converted amounts are subject to ordinary income taxes but are exempt from the 10% penalty once the account holder reaches 59½.
    • Earnings require the five-year period to avoid ordinary income tax upon withdrawal.

• Notable Quotes:

  "Whenever you convert, it does not matter how long your original Roth IRA has been open. Every conversion has its own five-year rule period."
  — Suze Orman [09:16]

  "Once you reach 59 and a half, it doesn't matter if it hasn't been in there five years, because you're already too old for the 10% penalty to apply."
  — Suze Orman [09:16]

• Suze's Conclusion:

  • Albert has correctly followed the rules and will have access to his converted funds by January 1, 2030, without penalties.
  • Encourages listeners to stay informed and cautious about Roth conversions to optimize tax benefits.

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3. Investing in Bitcoin ETFs

Listener Question: Gina faces restrictions purchasing Bitcoin ETFs (iBit) through her Merrill Edge account and seeks alternatives.

• Key Discussion:

  • Suze acknowledges Merrill Lynch's current stance on Bitcoin ETFs as too risky.
  • Recommendations:
    • Consider opening accounts with brokerages like Charles Schwab or Fidelity, which permit Bitcoin ETF purchases.
  • Investment Perspective:
    • Suze, traditionally cautious about Bitcoin, expresses increased confidence due to institutional adoption and suggests allocating a small portion (e.g., 5%) to Bitcoin ETFs.

• Notable Quotes:

  "I used to say, only invest with money that you can afford to lose. I have to tell you, I am changing that stance."
  — Suze Orman [14:17]

  "If you invest a small amount of money, maybe 5% or whatever, in IBIT... I don't think there's anything wrong with you owning IBIT at all."
  — Suze Orman [14:17]

• Suze's Takeaway:

  • Bitcoin ETFs can be a viable addition to a diversified portfolio, especially when accessed through supportive brokerage platforms.
  • Emphasizes cautious but open-minded investment strategies in emerging asset classes.

---

4. Handling Property Titles and Trusts After a Spouse's Death

Listener Question: Ellen seeks advice on maintaining her property's title and creating a revocable trust after her husband's passing.

• Key Discussion:

  • While Ellen's lawyer advised that removing her deceased husband's name from the title isn't mandatory, Suze recommends doing so for future ease.
  • Rationale:
    • Simplifies the transfer process to her children and the establishment of a trust.

• Notable Quote:

  "Just because you don't have to do something doesn't mean you shouldn't do it."
  — Suze Orman [15:53]

• Suze's Recommendation:

  • Remove the deceased spouse's name from the property title to streamline inheritance and trust formation.
  • Encourages proactive steps to prevent potential legal complications for heirs.

---

5. Maximizing Retirement Contributions at Older Ages

Listener Question: Brownie, aged 67, asks whether to continue contributing to a non-Roth 403(b) with a 6% employer match and add a new Roth account with an additional 4%.

• Key Discussion:

  • Suze affirms the importance of capitalizing on employer matches, regardless of age.
  • Highlights the flexibility and benefits of maintaining both pre-tax and Roth accounts.

• Notable Quote:

  "It's absolutely worth it. But you're not limited to just 4% into your Roth, IRA. I don't know what that 4% would be — you should be funding it to the max of $8,000 a year."
  — Suze Orman [17:18]

• Suze's Advice:

  • Continue contributing to the employer-matched 403(b) to harness free money.
  • Additionally, maximize Roth IRA contributions to diversify tax-advantaged retirement savings.

---

6. Optimizing IRA to Roth IRA Conversions with Investments

Listener Question: Marisol contemplates whether to convert cash or stocks from her IRA to a Roth IRA to manage tax implications effectively.

• Key Discussion:

  • Suze advises prioritizing the conversion of stock holdings before cash to capitalize on potential growth within the Roth IRA.
  • Strategy:
    • Convert appreciated assets first to minimize future tax liabilities on earnings.

• Notable Quote:

  "I would be converting that to the Roth first. Even if you have to liquidate it."
  — Suze Orman [18:39]

• Suze's Strategy:

  • By converting stocks already in the IRA, Marisol can take advantage of growth within the Roth, potentially reducing taxable earnings during the conversion process.

---

7. Protecting Investments Against a Falling Dollar

Listener Question: Bob, aged 61 and retired early, seeks strategies to safeguard his funds in CDs and money market accounts amid a depreciating dollar.

• Key Discussion:

  • Suze explains that while a falling dollar primarily affects the cost of imports and international travel, it doesn't directly devalue investments like CDs or Treasuries.
  • Potential Indirect Effects:
    • Could contribute to inflation, impacting purchasing power and possibly influencing stock markets.

• Notable Quote:

  "The increased cost of goods and everyday items can be affected by a falling dollar because it's more expensive to buy what they need if they have to import it in."
  — Suze Orman [24:29]

  "I do think that the dollar isn't going to fall a whole lot more than it has already fallen."
  — Suze Orman [25:29]

• Suze's Conclusion:

  • While direct investment holdings in CDs and money markets may remain stable, Bob should be mindful of the broader economic impacts of a falling dollar.
  • Encourages a balanced and informed approach to investment, considering both current holdings and potential economic shifts.

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Final Thoughts

Throughout the episode, Suze Orman emphasizes the importance of tailored financial strategies that consider individual circumstances. Whether it's equitable financial contributions in a partnership, navigating the complexities of Roth IRA conversions, or safeguarding investments against economic changes, the key takeaway is proactive and informed decision-making. Suze consistently advocates for open communication, strategic planning, and leveraging available resources to optimize financial well-being.

Listeners are encouraged to participate actively by submitting questions and engaging with the Women's & Money community through the dedicated app, fostering a supportive environment for financial growth and education.

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Disclaimer: The information provided in this summary is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor for personalized guidance.

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. August 14, 2025. Welcome, everybody, to the Women and Money podcast, as well as everybody smart enough to listen. Why are you looking at me like that?

[KT]

Because today's August 14th.

[Susie Orman]

Yes.

[KT]

And tomorrow's August 15th, one of my very favorite days of the whole year.

[Susie Orman]

I know what we're gonna do tomorrow.

[KT]

We're gonna definitely be in the saltwater at Sal.

[Susie Orman]

Tell everybody what that is.

[KT]

I'm not really sure all of the religious connections to saltwater day, but when I was a little girl, my grandma and grandpa would bring all of us down to the ocean, and we had to put our feet in the salt water. It was just a blessing. It's a saltwater day. I think it was a blessing for fishermen back in Italy.

[Susie Orman]

Long Long, which is where Katie's family is from.

[KT]

So today also is a special day because Susie and I are alone on the island.

[Susie Orman]

All alone.

[KT]

Kolo's in Colombia with his family.

[Susie Orman]

Yes.

[KT]

We're just having, like, this best time, kind of on our own schedule. Colo usually has coffee with us in the morning. We figure out the day. We do a lot of planning, but we're doing. We're, like, on vacation.

[Susie Orman]

We don't have to work, but, you know, I think we've told them that many times how much we obviously love.

[KT]

Kolo, but we're on vacation.

[Susie Orman]

Think about those of you who have children and they're older children, and you love them so much. But then when everybody leaves the house and it's kind of just you on.

[KT]

Your own, there's just so many kids went to camp.

[Susie Orman]

Yeah. We don't have to think about, are we dressed, are we not dressed? All those kinds of things. All right, so this is Ask KT and Susie anything. And if you want to ask a question and if KT chooses it, you have to be patient, everybody. And you have to listen every week because you just never know when. If you ask something from quite a few months ago if she's chosen that or not. So don't give up hope. And, hey, if you really have a question that you want answered, and you did write in a long time ago, write in again, but keep it short because if it's long, I'm going to.

[KT]

I don't pick them.

[Susie Orman]

You ain't going to pick them. However, how do you write in Go to asksusie s u zepodcastmail.com and that is where you ask your brief question. All right, kt.

[KT]

Sure. Keep it simple. Okay. This is from Lisa. She said. Hi, Susie. I have a question for you. You always say husband and wife or partners should contribute equally towards monthly expenses.

[Susie Orman]

Equal percentages.

[KT]

Yes. She forgot the most important word, Lisa. Percentages.

[Susie Orman]

Not equal amounts of money, but equal percentages, which is going to.

[KT]

Yeah, this is going to change your entire email question. Ready? She said, my husband's a big fan of you, Susie. He follows almost every advice you give and in this case, wants me to contribute half of my salary.

[Susie Orman]

No. What's up? Do you see? Right there, kt. Yeah, he's a big fan. He listens to everything I say. Wrong.

[KT]

He forgot the word percentage.

[Susie Orman]

Never said, if one of you makes $7,000 a month, the other makes 3,000. Take home a month. That and your expenses, let's say, are 3,000amonth that you each put in $1,500. No equal percentages, not equal amounts.

[KT]

So finish giving people that example. So if that is he makes 7,000, she makes 3,000.

[Susie Orman]

Take homes. So you add those. That's $10,000. You divide 10,000 into your joint expenses. 3,000. And that's 30%. So of his 7,000 KT, he would have to give 30% of that into the expenses. That's 2,100. Because she only makes 3,000. Let's say it's her right. 30% of 3,000 is 900. There's your $3,000. Equal percentages, but not equal amounts of money. Go on, kt.

[KT]

Okay, so Lisa said she makes a third of his salary.

[Susie Orman]

Well, there's an example of what we.

[KT]

There you go. But he doesn't contribute anything in managing the house. Now Lisa's goes on to kind of whine a little bit about, I take care of the kids, I drop them off and pick them up from school. I clean, I cook, I work without any break. Even on the weekend. All he does is wake up, take the dog for a quick walk, walk and go to work. He watches movies on the weekend, talks with his friends. How is that fair? So it is fair if you go back to adding the little words. Susie said that your husband left out percentages. You always say, Susie, people first, then money. So there's your answer, Lisa. It's really easy Percentages.

[Susie Orman]

So, kt, let me tell you what I really think about this, all right? When somebody is making two things, thirds more of the money than you because she's only making 30% of what he's making. Somehow people tend to. I'm not saying her husband does, but I think he does. Right? Get this attitude of, well, I'm bringing in most of the money. I'm obviously, therefore working harder. And therefore, yeah, I deserve to be able to sit around and relax and take the dogs out or do whatever. And that's it. That's all I need to do. So that could be going on. What's very important, Lisa, is for you to sit down with him. And it's not just. All right, now you're going to divide it by equal percentages, all right? Because that still doesn't take into consideration what's done in the house. So you need to sit down with him because maybe you straighten out the money aspect of it, but it doesn't straighten out the household chores of it. And you should talk with him, not to him, with him, about how you feel that just because you make less than doesn't mean that you work less than, doesn't mean that you don't work as hard. So therefore, what can you do to divide up chores so that you feel it's equal financially as well as physically around the house? Next question.

[KT]

Katie, Susie, next question's from Albert, a man smart enough to listen.

[Susie Orman]

Victoria and Albert, have you all ever been?

[KT]

Oh, the VA Museum in London, if you're ever there.

[Susie Orman]

Go, go, go.

[KT]

Yeah. What a great. She was our favorite queen of all, Victoria.

[Susie Orman]

You think so?

[KT]

Yes. She and Albert were madly in love. They had, I think, 13 kids or something, huge number of children.

[Susie Orman]

So you don't think that Queen Elizabeth was madly in love with.

[KT]

No, not like Albert and Victoria. Albert and Victoria were the greatest love of all of English history and with Bar none.

[Susie Orman]

And what about our love story, the.

[KT]

Greater than English, greater than the world history.

[Susie Orman]

All right, go. All right.

[KT]

Hi, KT and Susie. I'm really confused about the money I converted from my Ira to my Roth Ira. I opened up a Roth Ira with Vanguard in 2021. With ETFs, I converted some money, about $10,000 for from my Ira to my Roth IRA. This year I know I will pay ordinary income taxes. I was listening to a podcast from 2024 and Susie said the five year rule will start over on that conversion.

[Susie Orman]

Absolutely true.

[KT]

I freaked out.

[Susie Orman]

Freaked.

[KT]

Freak. Albert said, I freaked out. Susie, I did not know that That's a lesson to all of us to listen to each other every podcast. He's right. Correct me if I'm wrong, but any contributions I have put in since 2021, Albert said he's 57. I can take out penalty free anytime. But not the earnings.

[Susie Orman]

Correct.

[KT]

But the 10,000 I converted this year will start its own five year rule.

[Susie Orman]

Right.

[KT]

Which means I cannot touch it until 2030.

[Susie Orman]

January 1, 2030. Go on.

[KT]

Does that go for the earnings too, that the 10,000 earned?

[Susie Orman]

Well, it depends, right? Because only if Albert is going to be 59 and a half years of age or older, which I think he's going to.

[KT]

He will be because he's 57.

[Susie Orman]

Now, here's the thing. You have to understand everybody. Whenever you convert, it does not matter how long your original Roth IRA is has been open. All right? When you convert, every conversion has its own five year rule period. But what's so fascinating is that the five year rule is dated in a very awkward way. So let's say that Albert converted on December 31, 2024. Let's just say that's true. Then that counts as an entire year towards the conversion. So it doesn't matter. When you convert in a year, it's as if that year has already passed, so to speak. So now it's 2024. His five year rule will be up like in 2029, believe it or not, KT right. At January 1, 2029, even though it hasn't been a full five years from December 31. So just know that everybody. So that's number one. Number two, there are two penalties. There's taxes on a Roth when you don't follow the rules, and a 10% tax penalty if you're not of age. Once you reach 59 and a half, it doesn't matter if it hasn't been in there five years, because you're already too old for the 10% penalty to apply. So forget that one. Regardless of how long it's been in there, it's the ordinary income tax penalty that you're worried about. So that has to have been in there for five years for you not to owe ordinary income tax on the earnings. When it comes to your original amount you converted and paid taxes on, you're not going to owe tax taxes on that. So I wouldn't worry too much about that. So that's just what you have to do.

[KT]

So, Albert, you didn't really make any mistakes, right, Susie?

[Susie Orman]

No, it's like it's fine.

[KT]

You're good, Albert.

[Susie Orman]

You'll be there before, you know, before you blink. It's January 1st of 2030, that all that money will be available to you, period. Right. But, you know, it is how it is. What are you going to do? Okay, what are you gonna do, Katie? You know what you're gonna do when it comes to converting money.

[KT]

Don't talk to me about Roth right now.

[Susie Orman]

Fine.

[KT]

I want.

[Susie Orman]

I knew it would get to you.

[KT]

Let's talk. Let's.

[Susie Orman]

Roth. Roth. Roth. Roth. Roth. Roth. When I want to aggravate her, everybody, I walk around the house and I whisper, I want to tell you something. And she comes up to me close, and I go, roth iraskt. Anyway, go on.

[KT]

All right. This is from Gina. Gina said, Hello, Susie and KT. I tried to buy some Bitcoin ETFs, which is iBit, the other day in my Merrill Edge account. To my dismay, it is a restricted fund, and they do not let you purchase it because of the risk. I called customer service, and they said, no Bitcoin is allowed. Any thoughts on how I can get around this and put Bitcoin in my portfolio?

[Susie Orman]

So let me tell you, Gina, how I would get around it if I were you. Obviously, they won't allow you to do it. Everybody writes me and says, why won't they allow me to do it? And for some reason, Merrill lynch still feels the Edge account, that it is too risky. All right? That's just the stance that they are taking now. What would I do if I were you, if I really wanted to invest in Bitcoin, I would open up an account at either Charles Schwab or Fidelity or most of the other brokerage firms that will absolutely allow you to buy a bitcoin etf. Just that simple. So, you know I like Bitcoin. You all know I like Bitcoin. And I used to say, only invest with money that you can afford to lose. I have to tell you, I am changing that stance. Because as it goes higher and higher in value, as major banks are starting to actually participate in it, I'm starting to feel better about it. So I do not have a problem if you invest a small amount of money, maybe 5% or whatever, in IBIT. And the truth of the matter is, if you did it directly into the Bitcoin itself, you would actually make more money than if you did it through an etf. But for safety reasons, or just because you feel safer with it that way, I don't think there's anything wrong with you owning IBIT at all. All right.

[KT]

Okay, next Question is from Ellen. She said, hello, Susie and kt. I have a paid off home. The title has my name and my deceased husband's name on it. A lawyer advised me I didn't have to take his name off the title. Is this wise? I want to make a revocable trust and I'm not sure if this needs to be changed before I do that. I have two adult children who will inherit the home legally.

[Susie Orman]

There's nothing that says, Ellen, that you have to take his name off the title. First of all, so sorry for your loss, obviously. However. However, you should, because if you're going to transfer it into the trust, it should be in your name only. It will make it far easier for your children if something were to happen to you. So even though the lawyer says you don't have to, that is technically correct. However, just because you don't have to do something doesn't mean you shouldn't do it. So what I would tell you, do it and do it as soon as you possibly can.

[KT]

All right, next question's from Brownie. Do you remember we had a fisherman from Bimini called Brownie that took us fishing to get little like Lane Snapper.

[Susie Orman]

Oh, wow.

[KT]

Remember, he was so much fun.

[Susie Orman]

Why do you think? Yeah, I don't know what happened to him. Where is he?

[KT]

I don't know. Probably still fishing. But he was like a little fishing guide, very friendly, very happy. And his name was Brownie.

[Susie Orman]

You know, years ago, everybody, when we didn't know how to fish, we would hire the local, local Bahamians and they would be the one that would take us out and show us how to.

[KT]

Fish Bahamas style with little yo yos and strings with hooks. Very, very, very primitive.

[Susie Orman]

And they caught more fish than anybody did on our expensive stupid rods. All right, go on.

[KT]

All right. So Brownie said, I am 67 and still currently working part time. I am contributing to a 403 at work which matches 6%. Unfortunately, it is not a Roth. Should I continue to contribute 6% to it and then contribute my other 4% and start a new Roth account? And then Brownie says, just curious if at this stage in our lives, would it make that much of a difference? He's 67. What do you think, Susie?

[Susie Orman]

Yes, Brownie, even at your old age of 67, what is it with these people? Oh, no, right.

[KT]

Anyway, sounds young to me.

[Susie Orman]

Me too. So it's absolutely worth it. But you're not limited to just 4% into your Roth, Ira. I don't know what that 4% would be you should be funding it to the max of $8,000 a year. But you can't pass up the free money that your corporation is paying you even though it's in a pre tax account. No problem. All right.

[KT]

So Marisol asks, dear Susie, I wonder what would be a better option when converting from an IRA to a Roth IRA? I have cash infidelity and an ETF. What would you suggest to convert? I have $75,000 in cash. I usually convert $60,000 a year so my tax bracket doesn't spike.

[Susie Orman]

Wow.

[KT]

I used the cash to dollar cost average and buying the ETF and stocks you've mentioned in your podcast. I bet she's done quite well with that. Susie. So this money is in an ira. Should I convert the cash or the stocks this coming year? It's a lot of conversion money, isn't it? Right.

[Susie Orman]

So whatever you have in your ira, that happens to be stock and that stock can go up in value because let's say you invested it in good things. If I were you, I would be converting that to the Roth first. Even if you have to liquidate it. Liquidate it, go into a Roth and just buy it again what you have and let it increase in value there, the cash in the meantime, let's say it's making 4% when you then go to convert that, you're not going to have to worry about converting it on a higher amount of money if the stocks continue up. So I would be doing the stocks at this point because if they're good stocks or good ETFs, I do think they're going to go higher and higher. All right, go on.

[KT]

Okay, the next question is from Lynetta. Dear Susie and kt, thank you so much for being there. Yeah. She said, I've learned so much. I started listening in 2020. And she's come a long way but still needs your guidance. Susie, ready? She said, I'm so grateful when you responded to me after my dad died. I had no clue about what to do with the inherited 401 savings. I did as you said and it is in an inherited IRA at Fidelity. So there you go. Good for you, Lynetta. You followed Susie's advice.

[Susie Orman]

But what's interesting about this email, one thing that she said that she has.

[KT]

A long way to go.

[Susie Orman]

No. That I contacted her directly.

[KT]

Oh, yes, yes, yes, Susan.

[Susie Orman]

So everybody, you never know. You never know when you're going to hear from me directly. All right, go on.

[KT]

And she contacts a whole lot of you directly. Just so you know. That so she says, I don't have a Roth 403, but this is now being offered at work, but there's no matching funds. When I talked with the Financial Focus advisor who's handling the accounts for our district, I asked him if I could be invested in stocks and or ETFs. He became a little agitated and said he would invest in what he thought was best for me. Wow. So when asked how much he charged, he said 1%. I don't like the fact that he doesn't talk more with me about what I want it invested in. My question is, do I Open a Roth 403B with financial focus, continue buying CDs or do something else? I'm not sure what to do. I'm 67. I make $70,000 a year. Please help me figure this out. I'm forever grateful for your advice. So I'll tell you what I would do.

[Susie Orman]

What would you do?

[KT]

Forget Financial Focus. Do it on your own, girl.

[Susie Orman]

Yeah, you can do it on your own. Or better yet, since they don't match, just open up a Roth IRA and you can invest $8,000 a year there. And. Or if you happen to have a mortgage on your home, truthfully, you're better off at this age making sure that that extra money goes to pay down the mortgage on your home. Because I want you all to think about it. Why are you saving money and investing in a Roth retirement account or. Or however you're doing it, it's to generate income for you to pay your expenses. Your largest expense happens to be your mortgage on your home. So you're far better off getting rid of the mortgage on your home than saving money in a retirement account to pay the mortgage payment. Now, kt, I could give you an example of that, but I have in the past. However, that's what I would be doing if I were you. All right.

[KT]

All right. Great. And my last question is from Bob. I love this one. Yeah, I like what he did.

[Susie Orman]

You know what I love about the name Bob?

[KT]

Bob?

[Susie Orman]

Yeah.

[KT]

Yeah.

[Susie Orman]

What do I love about it?

[KT]

You can say Roberto, Robert. Bob. Bobby.

[Susie Orman]

No, none of those.

[KT]

Babushka.

[Susie Orman]

None of those.

[KT]

All right. What?

[Susie Orman]

It's the same backwards and forwards. I just love that.

[KT]

Oh, you can spell it backwards and forwards and get the same name.

[Susie Orman]

Yeah, I love that.

[KT]

Bob. Bob.

[Susie Orman]

When I used to do the Susie Orman show, Bob. I used to love when I saw a name like that. Anyway, go on.

[KT]

All right, I remember.

[Susie Orman]

What do you remember?

[KT]

I remember is it was someone that our friend Ken knew Someone that could spell everything backwards really fast. Like you gave him a word and he could spell it backwards. Like he had that something that he had a.

[Susie Orman]

And you love that.

[KT]

Yeah, right. See, it's one of the most difficult things to do.

[Susie Orman]

All right, now you all know, except for Bob. What's this question?

[KT]

This is my final question. Hi, Susan. KT I'm 61 and retired early due to an illness and surgeries as well as an abusive work environment. That's the real reason. So Bob said, I have $1.4 million saved, so good for him. I maxed my Roth contribution since I first watched your show back in the day. Honestly, I would not be where I am if I had not read your books and watched your show. Thank you, Susie.

[Susie Orman]

I love an appreciative man. Yeah, I'd love that.

[KT]

I do, too. I also took a small pension payout that I am gradually converting to Roth funds. He's so smart. My question how can I protect my funds that are in CDs and money market accounts from a falling value in the dollar? That's a great question.

[Susie Orman]

So, Bob, what I would be asking you is how's it done? How are your investments doing? Because the dollar has fallen incredibly over these past few months. So the main reason a dollar will affect you when it falls in value is, number one, if you're going to travel overseas. So travel becomes far more expensive because the dollar isn't worth as much, so it doesn't convert to as much in a foreign currency. However, the increased cost of goods and everyday items can be affected by a falling dollar because it's more expensive to buy what they need if they have to import it in. So that's really all that it's going to do. It's not going to affect your actual investments when it's a CD or a Treasury. It could affect the stock market, things like that, because a falling dollar can also contribute to inflation. So we just have to watch it carefully. However, I do think that the dollar isn't going to fall a whole lot more than it has already fallen. So I think you've already seen the things that it can do. But out of everything that you have going on, boyfriend, I wouldn't worry about it. You did great, Bob. Now, he's a man who learned how.

[KT]

To do what KT make his money, make more.

[Susie Orman]

There you go. He's learned how to do that. And now at his ripe old age of 61, he could actually probably do anything that he wants. All right, Ms. Travis, that's a wrap. Susie, until tomorrow morning when we go soak in the salt water.

[KT]

Yes, ma'. Am.

[Susie Orman]

But we do that every single day anyway, so I don't know why tomorrow's any more special to you. But anyway, we do so every single day because they say salt water heals you and kt and I really believe that. So until next time, there's only one thing that we want everybody to remember when it comes to their money.

[KT]

We're going to do what Bob does. Make your money, make more money.

[Susie Orman]

So you are to do that. Stay safe and healthy and know that we both love you so very, very much. All right, everybody.

[KT]

Bye bye.

[Susie Orman]

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

[Narrator]

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