Emily.

Evening.

You've got more than money.

You've got tickets in your house, Your personal financial adviser.

Happy to be serving you this evening.

Welcome back.

If you are a returning viewer, thank you for your loyalty.

If you are just joining us for the first time, there's a couple of things you might want to know.

Number one show goes very quickly.

It sounds like it shouldn't because it's a half an hour.

I got plenty of time.

No, you don't.

It's going to fly.

So that's the first thing you should know.

Second thing you should know is that we are, without a doubt, no questions asked.

The most relevant financial show on television today.

How can I possibly make that claim?

It's because of you.

You are the heart of our show.

You are what drives our agenda.

You are what makes us the most relevant show on television today.

Talking about your financial life.

Because we talk about your financial life.

We don't give you monologues.

We don't give you lectures.

We don't give you classroom.

What we give you is real life answers to real world questions.

The kinds of things that really make a difference, that moves the needle, that get you closer to where you wish to be financially.

And if you guys are just joining us for the very first time, we're saying, how in the world does that work?

You send us your e-mails.

Gene at ask MTM dot com.

We respond to every single one back to you.

Every single question gets answered.

Back to the sender.

The hard ones, the easy ones, the silly ones, etc..

But then we choose some of those.

Some of those.

Megan, our financial correspondent, decides which emails we get to answer on there.

You might see your email answered live on air as well.

But most importantly, does it matter whether it's your email or someone else's?

We are sharing the ideas.

We are sharing the personal challenges that everyone faces and then giving the strategies, the tactics, the ideas, the plans that can make a difference.

And your question, certainly the answer will help you.

But your answer, your question.

Your answer might help hundreds, maybe thousands of other folks who are watching at this very moment because they have a question either similar to identical to or slightly different than yours, and they can relate.

So that relatability, that relevancy.

You just can't argue with it.

And goodness, since we're not going to argue with it, let's give you a demonstration right out of the gate.

Megan, to whom do we start serving this evening?

Our first email tonight is pretty personal, but hopefully we can help them.

It says, I am at my wit's end and hope someone can recommend ways to help my daughter's unwillingness to manage her money.

When I'm gone, her chances are slim to none.

I am a senior citizen and I've had cancer four times in the last three years, so I don't know how much longer I have.

All my daughters friends are similarly ill equipped and there is no adult that she would heed.

My therapist said, Why should I care?

But I do.

Plus, she won't be able to pay the ongoing taxes, insurance and maintenance because of her freewheeling spending.

I let her use my car and pay maintenance and insurance for her.

I pay for her phone.

She pays no rent or does many chores.

Oftentimes, she is short of money and I have to give her a loan.

She keeps getting credit cards, pays them off, then repeats the cycle.

I've offered to have us meet with an advisor of her choice to tackle these issues.

But again, she's not interested.

I love her very much, but I don't know what to do.

She's not willing to manage her money properly.

I have calmly told her of the dire consequences of her actions, but it doesn't get through.

What advice do you have, Jean?

goodness.

My heart goes out to you.

As the father of four daughters, I am in that same mindset that you want to do whatever is possible, whatever you humanly can to put your daughter in the best, strongest position that you possibly are able.

She doesn't want that.

That's fairly clear.

There's a fairly famous quote about literacy.

People who do not read are no better off than people who cannot read.

In this case, people who do not manage their money well are no better off than people who don't know how to manage their money well.

Your daughter has made a decision, a series of choices, a series of poor judgments that has demonstrated to you that this is not going to happen.

The fact that you're a senior citizen leads me to believe I'm picking a number out of thin air.

It's not in your email that this young lady is in her forties.

You have made a lot of attempts to get her on the right track.

I will.

I will say the obvious.

A lot of the folks in our audience are thinking exactly what I'm about to say.

You have not helped.

You have not helped by bailing her out time after time after time.

You have not helped by allowing her to live irresponsibly on your her dime, on your ticket.

You have not helped.

If you had, for lack of a better term, cut her off.

Would she had made better, better choices, better decisions?

The answer is I don't know.

And neither do you.

There are lots of us who have seen the scenarios, and the answer seems to be no.

Not likely.

She would not have made better choices.

But you have fueled her addiction to poor financial choices.

Now, interestingly enough, your frustration about what happens if it's not an if, it's a win.

Human mortality still running right at that 100% mark.

You're going to be gone and something's going to happen.

It's not good.

Judgment is going to magically appear for your daughter.

Good judgment with her friends.

Don't be ridiculous.

You need to protect her from herself.

Your therapist was not the person to ask.

Your financial adviser should have been or your financial adviser teaming up with your estate planning attorney.

Because this scenario of poor choices is one situation where a child needs to be a child.

The 40 year old adult needs to be protected from him or herself herself.

There are other circumstances.

Very common.

Sadly, folks who don't have the capacity to look out for themselves.

Perhaps they are challenged cognitively or physically, and they can't do that themselves.

That's why in in estate planning a trust documents can be so very important.

A trust document says, Here's money coming from your estate.

It's intended to benefit my daughter, but she is not allowed to make any of the investment choices, the financial choices, the spending choices.

Someone must make those for her and that someone is a trustee.

The trustee could be a human being.

It could be someone you know and trust.

Hence the name.

It could be a corporation.

There are a fair number of very, very good companies out there who are trust companies.

And that trust document describes to the trustee your intentions.

I would allow you to spend this money for my daughter for this purpose, but not for this purpose.

And it can be as detailed as you wish.

It can be as generous as you wish.

Very often, health and welfare is a a phrase that's used in a trust that says if, if, if it's her, her health is at risk, of course, spend the money.

If she's living under a bridge, of course, rent an apartment for her.

But bottom line is, it can be very, very detailed.

Do not give her money for.

Fill in the blanks for auto payments.

She should be able to afford her own for whatever.

You can be as detailed as you wish.

And as either constricted or as liberal as you wish.

These are your choices.

But you will hire someone.

They will be paid.

Of course you will hire someone.

A trust company, a trustee to act as the the arbiter of sound financial judgment for your daughter.

The hope, the prayer that you have been praying for lo these many years, that she will turn that around is extreme, seemly unlikely.

So prepare legally to protect her when you're gone as you've tried to do while you're here.

Tough one.

Tough indeed.

Meg's.

Where do we go next?

Well, those questions a little bit easier, I think, and probably pretty common.

It says your show is excellent.

I couldn't agree with you more about your shows.

A format answering questions from viewers about their real financial concerns.

My question is about credit cards.

I have reduced my credit cards to where I only know about 15% of my total credit line.

I plan to pay off the balance by this January and my second goal is to get another card where the interest is much lower.

My questions are What do you think is a reasonable number of credit cards to own?

I think one possibly two cards.

My second question is what is the best approach to reduce the number of cards where it doesn't hurt my credit score?

I currently have a score of 810.

I heard that closing out accounts, even when you are in great standing, will affect your score.

I appreciate your thoughts on this, Jeanne.

Well, you're very kind and your words were very kind and they made Megan giggle when you said that you really liked our show, That's a head scratcher.

We'll come back to that later.

I'm sure credit cards, there are tools.

That's all they are.

They are financial tools.

If they are used properly, they're fantastic.

If they're used improperly, they are deadly, financially deadly.

You are on the right track to using them properly.

Good for you.

Paying off your credit cards.

Credit card or cards by January.

Great goal.

And starting a new year fresh without an account balance.

Fantastic.

And your your question around number of cards will come back to that.

Your concern about your credit score is understandable, but it's simply not a problem.

It is far better for you to have the right tools that you will use properly than it is that you worry about your credit score.

Your credit score is great.

And folks have been told, yes, if you close a credit card or a line of credit or you pay off a car that your credit score drops.

That is true for a short period of time.

It is not true for the rest of your life.

It is true for typically 2 to 3 months and then your credit score will continue to go back up.

The folks who have the highest credit scores have credit cards.

They use credit cards, but they pay them off every month.

They never pay interest.

So having a credit card, one that has a very low interest rate, is is useful if you intend to carry balances.

It doesn't sound like you intend to do that.

So the best credit card for someone who pays off their balances on a month by month basis never incurring interest, is the one that gives you some form of rewards, some form of cash back, some form of bonus, some form of.

For some folks who travel a lot, airline miles are very, very useful.

For some folks who read a lot.

Barnes and Noble credit is very, very useful for some folks.

There are credit cards that just simply give cash back, kind of the universal sole gift gift gift card, cash.

So take a look at you yourself personally and see what went benefit you the most.

Hopefully, it's one that includes you paying off your balances every month.

If not, then go for at least one that has the lowest interest rate you can find and have at least one that gives you benefits, gives you bonuses, gives you rewards for being a really effective credit card owner, which is I spend money, I get my rewards, one 2% cash back, whatever that might be, and then I pay it off right away.

That's ideal.

You're on the right track.

Stick with it.

If you have challenges going forward as you get into the new year.

Never hesitate.

Reach back out to us.

We'll be happy to help.

Max, who do we help next?

Well, next, we have a mortgage question.

This one says I am 71 years old and currently have a 2.25% mortgage with 27 years remaining.

I moved into my house 13 years ago and have been diligently saving to pay off my mortgage.

That day has finally arrived.

However, I've found that I can buy an immediate single premium joint annuity that would fund the principal and interest on my mortgage for 66% of the cost it would be to retire my mortgage.

This is my second marriage and I am the sole owner of the property.

I have arranged to leave my wife, who is five years younger than me.

A life tenancy.

Should I predeceased her?

At which point the house would go to my two children.

A joint annuity would guarantee her the ability to stay in the house and only pay taxes, insurance and maintenance.

Of course, no one can predict the future, but we currently have no plans or desire to move elsewhere.

Should I sign the check, Jean?

it's on me.

Talk about pressure.

You have done remarkably well.

You've made such solid decisions and you're asking very appropriate questions.

So let's paint the scenario.

2.2.

It's.

It's.

I'm getting vapors.

2.25%.

Can you imagine how many folks in our audience right now are screaming at their TV because they're out trying to buy a home and they've been quoted a 30 year mortgage at 7.25, 7.25.

That's breathtaking.

So shockingly breathtaking.

Yours is breathtakingly beautiful.

Fantastic.

Well done, you.

Now, the question about setting up the annuity.

I'm going to address second.

I really want to make an observation about how you've set up the estate plan at your passing.

Should you predeceased your wife?

She has a life estate.

Very well done.

I say that as a technique that's rarely used.

Should be used far more often, particularly with second marriages, when you are blending family finances.

Having this tool at your behest where you can be respectful and caring for your wife and yet be respectful and caring for your children, that you allow her the the legal right.

It's not just your wish.

You have put it in a legal standing.

She may stay in that home until she chooses to leave or until someone else chooses that she will leave.

She can stay in that home as long as she lives at her passing.

It goes to your kids.

So very well done.

So very well done.

Congratulations again.

Now, maybe not the best idea I ever heard of getting the annuity, locking that in, having that available to pay the mortgage on a monthly basis for as long as either of you lives.

Maybe not the worst idea I've ever heard, but maybe not the best.

And here's why.

If you are paying 2.25% and let's assume for a second it's not tax deductible for most folks today.

It is not tax deductible.

They take the standard deduction.

So interest on the mortgage doesn't mean really much in terms of their tax liability.

So assuming for a moment, it's just 2.25, you could currently invest that same money.

Currently, whenever you're watching this, you should go back to the original airing because currently changes.

Duh.

Currently you could get a CD guaranteed FDIC at five and a quarter percent.

So let's just use simple numbers.

We have $100,000.

We're paying 2.25.

We could get an annuity to pay that off over time, or I could invest it.

Guaranteed at 5.25.

I get to pay my 2.25 interest.

I get to keep 3% net.

I get to keep 3000 bucks a year.

You got 27 years to go.

You might end up advancing your personal wealth, whether it's for your use, you and your wife, or to leave to your children.

60, 70, $80,000 by not using the annuity could very well work out that way.

Now, what would be the one reason why I could change my mind and say the annuities are good idea.

Yeah that's that's the one reason.

If your heart of hearts is saying I just want to have it taken care of, I want the peace of mind of knowing it's taken care of and I never have to worry about it again.

That is a very, very reasonable judgment to make.

That is a very reasonable choice to make.

It is now a choice.

It's based partially on finances and a tremendous amount on self-knowledge.

Who you are and what gives you the best comfort, the best piece of mind, the best positive outlook for your future.

And if getting that guaranteed annuity would give that to you, knock yourself out, I would support that.

If, on the other hand, you're saying, wait a second, that that that's not really the point.

If I could have this money, make extra money along the way, I would prefer that.

Now you've got options.

Now you've got choices that you can make, whichever fits you best.

So when you should do you've made great choices.

Up to now, I've given you a little bit of a framework about how you might choose going forward.

Pick the one that fits you best.

Rock on, Rock on.

Is that even part of a financial show?

Somebody ought to write a check the script.

There is no script.

Isn't that exciting or terrifying, depending on who you are making.

You've got a script.

You've got the email that we want to address next.

Okay, sounds good.

This next email says Suze Orman never beat around the bush when she sees someone making what she believes is a major money mistake.

Even if that person is sat opposite her.

In a live TV interview, CNN's Chris Wallace recently became the latest object of the money mavens disapproval.

During a November episode of Who's Talking to Chris Wallace.

He sheepishly admitted to leasing his car, causing Orman to let on it.

Exasperated, Why you should never lease a car, she stated during the interview.

Leasing a car is the biggest waste of money out there.

So we're wondering, is Suze always right?

Jeanne?

Okay.

This this is awkward.

I've lost track.

Does anybody in the studio know how many times this Suzy Orman been on PBS with her specials?

I'm thinking 3500, maybe 5000 times.

Just a ton.

So this is awkward.

It isn't really, because if I'm going to be the most relevant financial show on television and I am, and if I'm going to serve you and I am, I have to tell the truth.

Suze Orman makes a fair number of statements that, in my opinion, are incorrect.

This happens to be one of them.

This happens to be one of them.

I'll refer back to the question we just had.

Gentlemen says, here's a financial strategy that will work.

The answer is, yes, it will.

But here's also a different financial strategy that has a different mental approach.

And would that work as well?

Yes, it will.

Is one more financially astute than the other?

My suggestion was more financially astute.

So if in that gentleman's mind the non financial components of the decision took a higher priority, then he's absolutely right.

In this particular case, I'll give you a just a simple demonstration of why any financial adviser that makes a blanket statement about something always or never being they're usually wrong.

And here's my example.

There was a time I've lived through that time.

I've had several cars that I have driven over 300,000 miles and have been very proud to do it.

My daughters are apparently of an equal mind because they drive their cars until the wheels fall off and they name them.

That's kind of creepy, but they name them.

It's fantastic.

Bottom line is, if 25, 30, 40 years ago you bought a car intending to keep it for 15 years and drive 3000 miles, people go, sure.

And cars did not change that much.

The technology did not change that much.

Gosh, if you go back to when I first bought my first car, you could climb in the engine compartment, change the oil filter, change the air filter, change the spark plugs, do it all in about 45 minutes and head home.

Now, if you pop the hood on your car, I have no idea why you're doing that.

It's a terrifying experience.

There's so much going on under there, most of which you can't even see, and most of which you can't access, even if you could see it.

So you don't.

The more important advancements in automotive technology on the areas of safety and my example of why Suzy Orman can be very, very wrong is if you are I'm picking ages 70, 75, 80, 85.

You enjoy driving.

You don't drive very many miles, maybe eight, ten, 12,000 miles a year.

But you want a reliable car.

One that you know is not going to let you down.

You want an incredibly safe car, the one that has all of those safety features that you could keep.

You safe, keep keep you protected in the event of the unthinkable.

You want a car that's not going to surprise you with a just found out I had to replace a starter at $600.

You don't want any of those things.

So reliable for sure.

Safe?

Absolutely.

Low maintenance cost.

That's called a lease.

And for many of us who have sadly, my parents have passed.

But if you're sitting there going, my mom and dad are in that exact situation and it worries me, their car, 14 years, it's only got 38,000 miles on it.

I guess it's okay.

No, it's not.

No, it's not.

The safety features that are on today are so valuable.

The confidence, the peace of mind that you could give your mom and dad if you help them lease a car.

And, gosh, yeah, the car dealership is going to be very happy because a three year lease, it's going to come back with a small number of miles on it.

I get all of that.

Is it squeezing the very last dollar out of your automotive expenditures?

No, it is not doing any of those things.

What it's doing is protecting your mom and dad.

What it's doing is giving your mom and dad the safety features that give her give them the greatest opportunity of of of staying independent, staying mobile, and staying safe.

And it may very well be giving your mom and dad a little bit of pep because their popping in a new car and by golly, three years later, they're popping in a new car.

And that's a pretty cool thing indeed.

Are there other circumstances where folks should lease rather than buy?

Of course there are.

But there are so many situations where financial advisers make very blanket statements.

One of the most famous, most famous, infamous Ken Fisher, owner of one of the largest financial advisory firms in the country, has stated unequivocally, I will sell an annuity over my dead body.

Well, that's rather dramatic.

It's also rather inadequate.

It's rather a shame because if you are truly interested in serving your clients, those clients who came to you, who could truly benefit from an annuity, even if it's a small percentage, if you truly cared, you would help them do that.

So blanket statements never or always are.

Watch this.

They're always wrong.

They're never right.

Sorry I couldn't avoid it.

My own mistake.

My apology.

No apologies for our show.

I hope you picked up a lot of information.

I hope you learned a little bit along the way from the challenges facing some of your friends, your neighbors, your your community folks, maybe in your own family who are asking important questions for themselves.

And hopefully you learned a little bit yourself.

If you have a very different question, don't hesitate.

Send those to us.

Jeanne at ask MTM dot com works very very well comes right to us.

Our entire team is at your behest.

We answer every single question back to you and hopefully you profit from that and maybe you'll see your question on a future show and maybe you'll enjoy the shows as we go forward, as hopefully you have this week and maybe you'll even consider rejoining us next week when we're right back at this studio for another edition of More Than Money.

Goodnight.