Ask KT & Suze Anything: Is It Too Late to Buy a Home?
May 23, 2024
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In this podcast, Suze answers questions about buying and cashing in bonds, choosing ETFs, and offers insights on retirement investing, inheritance planning, and property ownership. Plus, there's a quiz and special offers for listeners!
Consider putting inheritance in CDs rather than buying a condo for peace of mind while living overseas.
Utilize a living revocable trust to bypass probate and avoid unintended consequences of joint tenancy agreements.
Stay the course with investment strategy, considering individual long-term treasuries for potential gains, and manage inherited IRAs based on financial goals and risk tolerance.
Deep dives
Inheritance Purchase Decision
The podcast discusses a listener named Angelique who is contemplating purchasing a condo in Arlington, Virginia with an expected inheritance. Angelique, single and 55 years old, has no debt, a high credit score, and a two-year emergency fund. She plans to live in the condo for a year but rent it out when she moves overseas. Susie advises Angelique to avoid purchasing the condo and recommends putting the inheritance in CDs instead to have peace of mind while abroad.
Joint Tenancy Pitfalls
The episode touches on Ed's question regarding putting his name and his sister's name on the title of their father's home to avoid probate. Susie warns that this action may have unintended consequences, such as gifting cost basis and exposing the property to creditors. She highlights the importance of a living revocable trust to bypass probate and cautions against the pitfalls of joint tenancy agreements.
Retirement Savings Strategy
Discussing financial decisions, Alex seeks advice on shifting from stocks to bonds in his retirement accounts at 35 years old, considering the Fidelity's investment suggestions. Susie advises Alex to continue his investment strategy in low-cost index funds and quality stocks while considering individual long-term treasuries for potential interest rate gains, emphasizing the importance of staying the course given his solid savings and guiding against hasty adjustments.
Title Considerations for Inherited IRA
The episode covers Joe's query regarding his 90-year-old mother's inherited IRAs and CDs, seeking guidance on transitioning to TIPS or indexing. Susie explains that as a primary beneficiary, Joe's mother has control over her IRA investments and can opt for various financial instruments. She highlights the flexibility of managing inherited IRAs and encourages sound decision-making based on financial goals and risk tolerance.
Real Estate Dilemma
In a quiz segment, Angelique contemplates purchasing a condo in Arlington, Virginia with inherited funds. The dilemma revolves around whether to rent out the condo while living overseas or opt for safe investments like CDs. Susie raises critical considerations, such as the duration of overseas stay, management of the property, and financial implications, while Katie emphasizes exploring new life opportunities abroad and maintaining financial independence.
On this edition of Ask KT and Suze Anything, Suze answers questions about buying and cashing in bonds, choosing an ETF home buying, plus a “Should I Do It?” quizzy and so much more!
