AARP Tele-Town Hall on Inflation and You

Neil Wertheimer: Hello, I’m Neil Wertheimer, and I want to welcome you to this important discussion about inflation and its impact to your retirement security. Before we begin, if you would like to hear this telephone town hall in Spanish, press *0 on your telephone keypad now.

(Instructions in Spanish)

Neil Wertheimer: AARP, a nonprofit, non-partisan organization with a membership, has been working to promote the health and well-being of older Americans for more than 60 years. Since that fateful month of March 2020, when the COVID pandemic officially began, all our lives have been changed in some way, be it our health, our work, our levels of anxiety, our connections to others or simply how we live day to day. More recently, the impact has been increasingly financial, particularly for older Americans. And then came the inflation. Over the past year or so, we have faced some of the highest rates of inflation in decades, with groceries, gas prices, utility costs and most everything else we spend on seeing double-digit increases. At the same time, many of our retirement accounts and other investments took a big dive, and that's made us all worried. How do we cope with surging costs in the short term and plan for the long term? Many of us are exploring new ways to save and manage expenses. Today, we'll hear from an impressive panel of experts about these issues and more. We'll also get an update from Capitol Hill on legislation affecting older Americans.

If you've participated in one of our tele-town halls, you know, this is similar to a radio talk show, and you have the opportunity to ask questions live. For those of you joining us on the phone, if you would like to ask a question about inflation and the impact to your retirement security, press *3 on your telephone to be connected with an AARP staff member who will note your name and question and place you in a queue to ask the question live. If you're joining on Facebook or YouTube, you can post your questions in the comments.

Hello, I'm Neil Wertheimer, deputy editor for AARP publications, and for six consecutive years, co-editor of "The 99 Great Ways to Save" edition of the AARP Bulletin. I want to welcome you to this important discussion about inflation and the impact to your retirement security. We are talking with experts and taking your questions live. To ask questions, please press *3, and if you're joining on Facebook or YouTube, you can post your question in the comments. We will also be joined by my AARP colleague Gil Cabrera, who will help facilitate your calls today. This event is being recorded, and you can access the recording at aarp.org/coronavirus 24 hours after we wrap up. Again, to ask your question, please press *3 at any time on your telephone keypad to be connected with AARP staff, or if you're joining us on Facebook or YouTube, place your question in the comments.

Now, I'd like to welcome our guests. Suze Orman is a renowned personal finance expert and New York Times bestselling author. She currently has more than 25 million personal finance books in circulation, including the recently published bestseller The Ultimate Retirement Guide for 50+. She's the host of the popular podcast Suze Orman's Women and Money, and she is cofounder of Secure Save, a tool to help people save for life's emergencies. Jo Ann Jenkins has led AARP, the nonprofit, non-partisan organization that empowers retired people to choose how they live as they age, since 2014 as our CEO. AARP leads efforts to preserve Social Security and promote retirement savings to help everyone achieve lifetime financial security. Welcome to you both. Just a reminder, to ask your question, please press *3 on your telephone keypad, or you can drop it in the comments section on Facebook or YouTube. Suze, let's dive right in .

Suze Orman: Let's do it, Neil.

Neil Wertheimer: It's so nice to be with you, Suze. Everything costs more right now. We all know that. Do you see any good news on the horizon for people whose budget is being erased by inflation?

Suze Orman: I have to tell you, I do. You know, when we have such high inflation, what you're seeing the feds do now is they are raising the fed funds rate, which raises interest rates for everybody. So because inflation is so high, first of all, all of you are going to notice next year, your Social Security check is going to increase by probably 8 or 9 percent, right around there. So you will be getting more money because of inflation. At the same time, because interest rates are increasing, for those of you who want to keep your money safe and sound, you're afraid of the stock market. Finally, you can get a decent interest rate now in certificates of deposit. You can start getting a better interest rate than you were getting a year ago in savings accounts. And the Treasuries right now are offering 3.5, 4 percent. So there's a way for you to get more income on money that you may have that then helps you pay for the things that are costing you more. That's the good news, if there's any good news at all.

Neil Wertheimer: Suze, right now, there's these inflation-protected savings bonds, these Series I bonds, and their rates are incredible. Not many people know about them. What are they, and do you recommend them?

Suze Orman: For the past year or so now, because inflation really started, Neil, you know, over a year ago. The government issued something called a Series I bond, and "I" stands for inflation. And you can purchase them with as little as $25 or up to a maximum of $10,000 per person, and currently, they are giving you a 9.62 percent interest rate. Now that interest rate is really for six months. So in actuality, you're getting 4.81 percent because the interest resets every May 1 and November 1. But I am telling everybody to go to Treasurydirect.gov, because these are, again, guaranteed by the authority of the United States government, they're state-tax-free, and you do not pay any income taxes on it while your money's in there. Where today can one get an interest rate like I just said? The catch is, however, you have to leave your money in there for at least one year, you cannot touch it. And years two through five, if you withdraw any amount of money, there's a three-month interest penalty. But just very quickly, if you were to get and go there and do it right now, for the next six months you would get 4.81 percent — really half of 9.62 because it's only for six months — and let's say November 1, they come out with a new rate of 7 percent. So after your six months is up, for the next six months, you would get 3.5 percent, and even if you came out after one year with a three-month interest penalty, you would get 6.50 percent, right around there. Where else are you going to get that? So it's something that every single person should check out, and you should all do it before November 1, when interest rates will absolutely change again.

Neil Wertheimer: It's a stunningly good return on your investment, given how volatile the stocks are. So thanks for that. And now, Jo Ann, let's turn to you. What has AARP been hearing from members? How do older adults feel about the economy right now?

Jo Ann Jenkins: You know, Neil, I hear daily from our members about the questions and confusion you are facing because of the impact of COVID and inflation on your personal and your financial lives. You know, the pandemic has financially impacted people very differently, but right now, everyone is feeling the impact of inflation and supply chain issues, we're paying more for our groceries, and this summer we saw the highest gas prices all across the U.S. AARP recently fielded a financial trend survey of adults ages 30-plus and found that 78 percent are worried about the prices rising faster than their income. And this includes 77 percent of adults who are over the age of 50, and nearly half have cut back on basic expenses like groceries, personal care and transportation in the last 12 months due to inflation. So for many, the pandemic has also altered retirement plans and opportunities. Some needed to dip into their savings to cover a gap in employment, while others decided to retire earlier than they had planned to. And now that the prices are rising, and the stock market is lower, we're hearing from older adults who are delaying their retirement. You know, an AARP survey from May shows that 42 percent of adults, age 50 and older, either have returned to work in retirement for financial reasons or expect to go back to work in retirement for financial reasons. And like many other areas, older women are especially concerned about the economy. Our research shows a significant majority of the women aged 50 and older are deeply concerned about having enough money to keep up with the rising prices. And, you know, this is also an election year, and we've been talking with older voters about what issues matter most to them. Again and again, they tell us the pocketbook issues are at the top of their concern list. They're worried about whether their income can keep up with rising costs. Voters 50 and older are one of the largest and most reliable voting blocks, and the candidates would be wise to keep their concerns in their minds as we get closer and closer to election day.

Neil Wertheimer: Suze, as Jo Ann just shared, Americans are worried. We're repeatedly told to follow a plan, but the way that we spend and save is tied so much to our emotions, and right now older adults are anxious about outliving their savings and they're worried about stock market volatility. Many are reevaluating their plans. What are the risks of making changes right now?

Suze Orman: Well, it depends where you are within this stage of retirement. People who are 50, obviously, many of you are not retired yet, so many of you are still working and you're still contributing to your retirement plans, whether it be a Roth IRA, an IRA or an employer-sponsored plan. And you're seeing the market go down. And normally you just put in every month. Do not change that plan. As the markets go down, your dollars that you're putting in buy more shares. Eventually, whether it's a year, two, three from now, the markets will return up, and that will then be there for you when you retire. So one of the biggest mistakes you can make, if you still are contributing to a retirement plan and you are at least five or 10 years from retiring, do not change your plan. Do not stop investing. I personally would tell you: You are far better off investing in a Roth retirement plan, bar none, than a traditional retirement plan that is pre-taxed for many, many reasons, especially later on in life when you do retire. For those of you who are already retired, you have money possibly in the stock market, and you're afraid because your income isn't keeping up with what you need. I would ask you to look at everything you are invested in, because as these markets have gone down, are you invested in stocks, for instance, that are paying you a good dividend to give you some extra money that comes into you. Or are you invested in mutual funds that aren't paying you dividends or stocks that aren't paying you dividends? So in that chance, Neil, what I would say, look at what you have and possibly change your plan to get your money to generate more income for you. Even if you're in a retirement plan, at this point, there's nothing wrong with looking at bonds within your retirement plan to generate more income. And if done correctly, eventually, when interest rates go back down, the value of those bonds will go up. A year or two ago, I would have said stay away from bonds, get out of bonds, get out of bonds. Now you might want to look at bonds as an investment that gives you income as well as safety.

Neil Wertheimer: Suze, very quickly, you mentioned Roth IRAs, and we write about them a lot in the Bulletin. But a lot of people don't know what are. Can you quickly define them and let people understand their benefits?

Suze Orman: A Roth retirement account, whether it be a Roth 401(k), 403(b) or TSP, if it's with your employer, or a Roth IRA that you do on your own is simply a retirement account that you fund with money you have already paid taxes on. Because you've already paid taxes on it, it stays in there and it grows and grows and grows, and later on in life, when you go to take money out, it is totally tax-free to you. The good thing about a Roth IRA is that any money that you originally put in, you can withdraw at any time without taxes or penalties, regardless of how long the money has been in there and regardless of your age. So at times like this, if you had money that you put into a Roth IRA, year after year after year, that you yourself contributed, and you needed to withdraw $2,000 or $3,000, you could do so without taxes or penalties because it's coming from the money that you put in. If you had a traditional retirement account, meaning you fund it with pre-tax dollars, so you get a tax write-off, you cannot touch that money prior to the age of 59½ in most circumstances. Or if you do touch it, there will be not only a 10 percent penalty, you'll pay ordinary income taxes on it as well. Hands down, for many reasons, Roth retirement accounts are far better because later on in life, when you do take money out of a Roth retirement account, it does not count against income for Social Security and Medicare B premiums. Big deal, everybody. Think about it.

Neil Wertheimer: Thank you, Suze. I'm glad you explained it. It's time now to address your questions with Suze Orman and Jo Ann Jenkins. Please, again, press *3 at any time on your telephone keypad to be connected with AARP staff to share your question. And if you would like to listen in Spanish, press *0 on your telephone keypad now.

(Instructions in Spanish)

Neil Wertheimer: I'd now like to bring in my AARP colleague Gil Cabrera to help facilitate your calls. Welcome, Gil.

Gil Cabrera: Thanks, Neil. I'm very happy to be here for this very important conversation.

Neil Wertheimer: So, Gil, let's take our first question.

Gil Cabrera: Absolutely, Neil. Our first question, it comes from Michigan. Sherry is with us live.

Neil Wertheimer: Hi, Sherry in Michigan. Go ahead. Ask your question, please.

Sherry: Hi, yes, thank you for taking my question. I'm 72 years old and am retired, and I have a 401(k) that's been losing money with what the stock market's been doing, and I'm just, I keep, you know, they say stay in there, you know, if you pull out, you're locking in your losses. And every time I keep thinking, well, should I be moving some of this into a fixed-rate CD, since the rates are up. But then all of a sudden, the market will pop up, and I'll make a nice chunk of change again. And I'm like, okay, it would take you 10 years to make that kind of money. So I'm kind of confused on what to do, and I keep wondering if the closer we get to the midterm election, if that will be a plus, or can I expect that to make it even worse?

Neil Wertheimer: Suze, I think that's one for you to answer.

Suze Orman: All right. So, Sherry, there's no way to know will the election help the markets, will it not. What will continue to hurt the markets is as long as inflation is rampant, inflation hurts the markets. And as long as inflation is high, the feds will continue to raise interest rates. The more they raise interest rates, the more it hurts the stock market overall. The more it helps, however, Treasuries, CDs and savings accounts. The goal of money, Sherry, is for you to be secure. And hope is not a financial plan. So if you are feeling insecure, the truth of the matter is you might want to look at what you own, and you might want to say, you know what, this money I want to keep safe and sound, because you are also 72 years of age, which means by April 1 of next year, you have to start taking required minimum distributions. And so, do you want to take money from distributions of stocks that are continuing to go down? So I do not think it is a bad idea to take some of your money if 100 percent of it is in equities at this point in time, I don't think it is a bad idea to take some and change that into bonds or certificates of deposit. And that's where you will get your required minimum distributions from.

Neil Wertheimer: Suzy, what do you think is a good ratio for someone around age 70 who's relying on their retirement income or their investments between the stock market and the bond market? Is it 60/40?

Suze Orman: Well, you know, it depends on their individual situation. I know, Neil, that a lot of times people say, at this age, you should have this much in bonds, this much in stocks. But the truth of the matter is, you know, on my podcast a year and a half ago, I had everybody out of bonds, and I had everybody out of bonds regardless of age, because as interest rates go up, the value of bonds go down, especially bond funds. So more than even allocating according to your age, I would tell you to allocate according to what's happening in the economy to take advantage of it. I personally believe, this is my personal opinion, it's going to be a rough year or two for the stock market. I just believe that. So I think people should just know what they can afford to lose and what they can't.

Neil Wertheimer: Gil, can we bring in another caller and get another question?

Gil Cabrera: Absolutely, Neil. We have Mike from Indiana with us next.

Neil Wertheimer: Hi, Mike, I'm glad you called in. Thank you for doing so. Can you ask your question? We'd like to hear it.

Mike: Yes, sir. My situation is that because of high medical bills, we basically lost all but $100,000 of our retirement before I hit 65. My wife has Parkinson's dementia, I am her caregiver. Our house and car are free, they're fully paid for. We have no credit card debt. We have no other debt, and I need to increase my income stream. But I have to stay at home to take care of my wife, and I just don't know what to do.

Neil Wertheimer: So, I'm going to ask to split this. Jo Ann, do you want to talk a little bit just about the impact of medical costs on older folks, and then we'll ask Suze for any advice that she has.

Jo Ann Jenkins: Well, absolutely. We know that medical cost is one of the biggest issues that particularly older Americans are facing if, like in your case, your wife's illness really devastates your financial resilience with your personal finances. You know, we've been on this road to try to get the Congress to bring forth some relief in terms of the high cost of medical expenses. And looking at out-of-pocket costs for people, older people, to $2,000 a year for those on Medicare. But we just know that we have got to bring some relief to the tens of millions of people all across this country who, but for a severe illness like this, would have been financially taken care of. And so we certainly know how important it is for us to be able to manage some money that we have wisely. So I'll turn that over to Suze.

Suze Orman: You know, Mike, first of all, my heart goes out to you. And are you healthy, Mike? I don't know if he's still on, so I'll just answer then. It's in situations like this, one of the things that you might consider — and again, I don't know your situation — is, I don't know how much equity you actually have in your home. I don't know if it makes sense at this point in time for you to possibly look into selling the home that you have, and maybe taking money and going into an assisted living facility with your wife so that you could also have some relief. Because if something happens to you, Mike, who takes care of your wife? So there needs to be another person there that can also help. So is it that you go out and you go back to work, and you bring in somebody, possibly for a few dollars an hour, whatever that may be, to take care of her while you're working. It is not easy. And I do not have the solution for you without being able to sit down and look at everything that you have. But with real estate still being really high in terms of people are still getting prices that they want to get — and I'm not sure that's going to continue — these are all alternatives for you to look at. Also, I just have to say this, Mike, I don't know if you have children or if you other family members, but sometimes parents feel like they need to do it all on their own. There's nothing wrong with asking your children for help. There comes a time when the children need to bone up and help their parents, like their parents helped their children all those years. So I truly believe in making finances a family affair, if you can, and involve everybody to help solve this situation.

Neil Wertheimer: Thank you. Thank you, both. Gil, we would like to bring in one more folk. Can you invite someone in with a question?

Gil Cabrera: Absolutely, happy to. We have Judith from Indiana for you, Neil.

Neil Wertheimer: Hello, Judith. Thank you for joining us. What's on your mind?

Judith: Well my question is about the increase in rent that's occurred since the start of the pandemic. And I was wanting to know if that cost will ever go down.

Neil Wertheimer: What do you think, Suze?

Suze Orman: I don't think it will go down, I'm so sorry to say, unless some legislation is passed that says people have stop gouging all of you, and that's exactly what's happening, I'm so sorry to say, Judith. The reason I don't think it will go down is that inventory of homes are still very low. And many of the people who were and companies that were building homes have stopped building them for some reason. They have cut back on that, which makes inventory stay low, which makes it that those people who own homes and rent them out, and you have no choice, they can charge you what they want unless it's rent controlled. And there you go. So it's difficult. I just think it's atrocious what rents are today. And in reality, there's absolutely no reason that they should be that high. So Judith, either you have to find another place, get roommates, believe it or not, find out other things that possibly you can do. Can you move to a different neighborhood where rents aren't quite so high? It's very difficult, and I wish I had a magic wand to solve that for you. But I'm sorry, I don't. But that is the reality of the situation.

Neil Wertheimer: So, as a reminder, to ask your question, please press *3. We're going to take more of your live questions soon. In addition to sharing trustworthy information and hosting events like this, AARP is continuously advocating at all levels of government and fighting on behalf of older Americans. To give a quick update, I want to bring in AARP executive vice president and chief advocacy and engagement officer, Nancy LeaMond. Welcome, Nancy.

Nancy LeaMond: Happy to be here, Neil.

Neil Wertheimer: So I want to start with last month's historic prescription drug reforms that passed the House and Senate and were signed into law. I'm going to ask Jo Ann to speak more about this in a moment, but I'd be remiss to not offer some real deep congratulations to you on behalf of all of us and to your teams on the passage of the legislation.

Nancy LeaMond: Well, thanks so much. Prescription drug pricing reform is a tremendous victory for older Americans that was quite literally years in the making. After decades of calling on Congress to make prescription drugs more affordable, AARP won the fight to allow Medicare to negotiate lower drug prices and other policies that will save seniors money on their medications. Jo Ann's going to explain the details and why it's so important, but I want to thank everyone who signed our petitions, sent emails and called members of Congress. Many of you are on this call, and you powered this success. We couldn't have done it without you.

Neil Wertheimer: So what are some other ways AARP is fighting to help older Americans, especially those still in the workplace?

Nancy LeaMond: Well, we know that these days it's harder than ever to make ends meet, you all have been talking about it on this call. So first and foremost, AARP is fighting to protect Social Security and Medicare, which are the foundation of a secure retirement. We're advocating for state work-and-save programs that provide an easy way for workers to save for retirement. We're also advocating to support family caregivers who work, pushing for legislation to allow them to take time off to care for a loved one without fear of losing their pay or their jobs. And we're fighting to make sure that paid sick leave is available to workers all the time, not just during public health emergencies.

Neil Wertheimer: So, Nancy, we are entering election season. What is AARP's focus heading into the November election?

Nancy LeaMond: First, it's important to remember what we don't do. AARP doesn't endorse candidates, nor do we give money to candidates. That said, we're working hard to make sure that all candidates pay attention to older Americans and address the issues that are important to them. As they have been in all recent elections, we fully expect voters age 50 and older to make up the majority of the electorate in November. We're also making sure our members and broader constituency know how, where and when to vote. A lot of states have changed their voting laws since the last election, so we're doing a lot of education and outreach to explain what's different and what stays the same. In addition to election pages on aarp.org, this month's issue of the AARP Bulletin, as you well know, Neil, details how you can vote in your state.

Neil Wertheimer: Yeah, we put out 53 voter guides, for each state. So I hope you all use them, and I hope it's helpful. AARP has done a lot of pre-election polling in battleground states and national surveys of women voters, age 50 and up. What can you tell us about the findings?

Nancy LeaMond: Well, in a nutshell, elections are going to be very close in the battleground states, and older voters, especially older women, are going to be critical to the outcome. Our research shows that one in three likely voters in key states are women age 50 and up, and they are the biggest block of swing voters. When comes to issues, inflation and the economy are certainly top of mind, but we're also seeing a lot of other issues bubble up, including the division in this country and protecting Social Security and Medicare. It goes without saying that every single vote counts.

Neil Wertheimer: Nancy, thank you for being here today. If our listeners want to stay on top of AARP's advocacy news, how can they find the latest updates?

Nancy LeaMond: We encourage everyone go online and search “AARP Fighting for You.” That will lead you to a daily roundup of all of our latest advocacy news, on our work in Congress, and across the country. And you can also search “AARP Fierce Defender” and find a host updates and money-saving resources.

Neil Wertheimer: So thank you, Nancy. And now it's time to address more of your questions with Suze Orman and Jo Ann Jenkins. Please press *3 at any time on your telephone keypad to be connected with AARP staff. Gil, who do we have on the line?

Gil Cabrera: Well, Neil, there is a question coming to us via Facebook that I, social media, that I found rather interesting. The question is from Karen Guzman. She says, "You provided guidance for those who will retire in five to 10 years. What advice do you have for people who may retire in the short term, as in the next one to three or five years?

Neil Wertheimer: Suze, do you want to take that?

Suze Orman: Well, what I was saying when I said five to 10 years, is that those, you know, if you have time on your side, five to 10 years, you can weather this downward market. If, however, you have one to three till you retire, you have to look at your retirement account, and you should look at it seriously right now and decide, Is there enough money in there right now for me to be able to retire? Because over the next one to three years, as I said — and again this is just my personal opinion, I could be 1,000 percent wrong — I think we're going to see more of a decrease in the stock market than an increase for the next one or two years. So this is when you look at what you have, and you decide what you want to keep safe and what do you want to keep invested. For those of you who are going to retire in one to three years, and you happen to own a home that still has a mortgage on it, and you are going to stay in that home, my advice to would be for you, rather than to even put more money into the stock market through retirement plans, to take that money, and if you could get your home paid off in full by the time you retire, then you're really sitting pretty, or a lot prettier, because your largest expense is your home mortgage or your rent payment. But there's nothing you can do about the rent payment. But if you could get rid of your home mortgage, I would tell you, that's where all my extra money or my investment money, if I had any, that's where it would be going. So you want to get yourself in a position, if you're retiring in one to three years, where your car loans are paid off, you're out of credit card debt, you don't have a home equity line of credit, you want to make sure that you are as debt-free as possible. So if you can, if you have any extra money, it would be going there, in my opinion, rather than anywhere else.

Neil Wertheimer: Suze, I want to follow up on that. We often write in the Bulletin, and I think we sometimes overcomplicate the retirement planning in the sense that what really matters is one equation, which is, do you have enough monthly income to cover all of your costs? Is there a way to really calculate that? I mean, is that what someone who's planning to retire should focus on, is really understanding how much income they're going to have and how much they're going to be spending?

Suze Orman: Yes, but the problem, though, Neil, is they don't know how much they're going to be spending if inflation is added to that equation. So a lot of times what people do is they look at what they are spending now. Imagine if you did that a year or two ago, and inflation was relatively nil, and you had your Social Security, maybe you had a pension check, maybe you had some rent, who knows, coming into you. And you knew that your income covered your expenses, but now your expenses have increased dramatically because of inflation. So if I were you and I was doing that exercise, because that is the correct exercise that one should do, then what I would be doing is if you know what your expenses are today, just increase them and pretend like they're more expensive in the future, because maybe you need a home health care worker or somebody to take care of you. Or if you lose a spouse, maybe you need to hire somebody now to fix your car or do things like that. Just make sure that your expenses are realistic and increase every year to know how long will your income cover those expenses. But essentially, that is how you would figure it out.

Neil Wertheimer: Thank you, Suze. Gil, can we get another question?

Gil Cabrera: Happy to. Neil, we have Al from New Jersey for the panel.

Neil Wertheimer: Hey, Al, how are you? It's good to have you. Why don't you ask your question? We want to hear it.

Al: My question is this: Will Social Security always be there for us? There was one politician who wanted to get rid of Social Security. Can he do so?

Neil Wertheimer: Jo Ann, what do you think?

Jo Ann Jenkins: Well, I certainly hope not. And, you know, we believe Social Security will be there. Obviously, there needs to be changes made to make sure that it is there in perpetuity, but there are a number of legislative bills under consideration that would cut back Social Security in certain forms, in certain ways. AARP is there advocating to make sure that does not happen. Social Security is something that we've all paid into over the course of 40 quarters, over our lifetime. It's something that the American people bought into a system that the government said would be there for us. And we're certainly expecting and will be holding the Congress accountable to make sure Social Security is there not just for us, but for future generations and our grandchildren to come.

Neil Wertheimer: Yeah, I'll add to that, that we recently did an extensive story about the future of Social Security, and surveys showed that somewhere like 90 percent of Americans are strongly in favor of the program. And so, it truly transcends politics. This is a cornerstone program of American life. And so I think most experts would agree, it will continue to carry on, Jo Ann.

Jo Ann Jenkins: Well, I was just going to say, you know across the board, AARP members, you know, liberal, conservative, Republican, Democrat, rural, city — everyone supports Social Security. And so there will be a big fight on Capitol Hill if someone tries to touch Social Security to make sure that it's not there in the future.

Neil Wertheimer: Gil, can you bring in another question?

Gil Cabrera: Absolutely. We have from Alabama, Linda joining us, Neil.

Neil Wertheimer: Linda from Alabama. Thank you so much for participating. What's on your mind?

Linda: Thank you for taking my question. My husband is actually retiring tomorrow.

Neil Wertheimer: Congratulations.

Linda: Thank you so much. We're really excited. His 401(k) is with his employer. He is invested in stock, which has done very well, you know, until now, it's a little rocky. But I wanted to ask — and I know everyone's situation is different — whether or not to roll it over to another qualified plan. My thoughts are to leave it where it is because, of course, his stocks are down. And I feel like we've done the numbers, we can hang in there and wait for the market to come back up. And then at that point, I don't know what we would do. I'd have to think that one, you know, when we get to that bridge. But I wanted to get thoughts on that.

Neil Wertheimer: So that's a great question, Linda. Suze, I'm going to ask it in two parts of that. One is, should Linda leave it in her current 401(k) or roll it over? And second, if you're really looking at a longer-term time frame, should you leave it in stocks knowing that, in general, through history stocks pretty much do self-correct after a certain number of years.

Suze Orman: Linda, the main thing you have to understand is that you are very familiar with the 401(k) plan where this money happens to be. You feel comfortable there. If you did an IRA rollover with it, you could either, depending if you're in stocks or I don't know what you're invested in, but you could change a lot of things by just rolling whatever you have into an IRA rollover, and you would not suffer any loss whatsoever. So possibly what you own could go to your IRA rollover or even if you cashed out — where you had to do it in cash for some reason, because maybe there are things that you can't roll over — if you did do an IRA rollover, you could buy essentially the same thing. So you would not, essentially, lose money by doing an IRA rollover. What you would gain is there is more diversification within an IRA rollover than the few mutual funds and the company stock that may be in your 401(k). However, with that said, since you feel comfortable there and you might not know how to reinvest all of that money, you should just stay where you are, if that's what makes you feel secure. I don't have a problem with that. So if you wanted to get more sophisticated, however, you could obviously do an IRA rollover, and then maybe start to convert some money to a Roth IRA, and take advantage of the fact that the market is down. So when you convert to a Roth, you don't pay as much taxes. These are all things that you all need to learn about, and again, that's what I do on the women and money podcast. It's mainly for retired people to talk about these kinds of things. So if you feel like you have time, and you're not going to need this money, and you know that you're invested in good-quality stocks, you're diversified so you have it all over the place to know that it's not just all technology or whatever, and you feel comfortable with that, I don't have a problem with it.

Neil Wertheimer: Suze, the second part of that question is that Linda said she may not need this money for several years to come. Are you a little more bullish of staying in the stock market in that situation?

Suze Orman: Yeah, that's what I just said, Neil, or maybe I wasn't clear in that. That if she feels comfortable, and she has time on her side, and she knows she doesn't need to touch this money, and she knows that she is diversified —you don't want this money all in small cap funds, you need total diversification across the board — and you know you have that, I don't have problem if you just stay exactly where you are, Linda.

Neil Wertheimer: Great. Gil, how about one more question?

Gil Cabrera: Of course, Neil. We have a question from Tommie Hoy through our YouTube chat. She asks, "What is crypto? And should we consider that as an investment?"

Neil Wertheimer: Oh, Suze, I'd definitely give that one to you.

Suze Orman: So, Tommie, here's the thing. You can invest in crypto if you want, but only with money that you can afford to lose. I personally, wouldn't be touching it if this is money — and I'm not even sure I would call it an investment. I think at many points, this is more like gambling in many ways, because legislation may change about it. But if you want to do it, again, make sure you only do it with money that you can afford to lose. And, in my opinion, you're going to see crypto, bitcoin, ethereum, probably go down now before you see it go up again. So if you are going to invest, I wouldn't do it quite yet.

Neil Wertheimer: Let's take one more, Gil, please.

Gil Cabrera: Absolutely. We have, we have a question from Joyce in Pennsylvania, Neil.

Neil Wertheimer: Okay. Hi, Joyce. So glad that you're listening and have a question for us. Ask away. Joyce, are you there? If not, then let's move on. Actually, we'll return to more of your live questions in just a moment, but before we do, let's talk a bit about Social security some more and also Medicare. Jo Ann, those who rely on Social Security will be counting on a cost of living adjustment. We touched on that about half an hour ago, but what are the expectations for the next COLA adjustment?

Jo Ann Jenkins: So AARP has long fought to strengthen Social Security and to protect the hard-earned benefits of millions of Americans and their families. The Social Security COLA, which is expected be announced on October 13, will likely be close to 8 percent, and you heard Suze say 8 to 9 percent, and will actually start in January. This increase will be crucial for beneficiaries and their families, as they try to keep ahead of the rising costs. The resources at aarp.org/socialsecurity can help you maximize your benefits, answer key questions, and stay up to date on the Social Security COLA. If you're about to retire, you might consider waiting a little longer and working a little longer to maximize your Social Security income. Your Social Security benefits go up every year until you turn age 70. Increasing your monthly Social Security benefit is important, it's a source of income that goes on as long as you live and is adjusted for inflation. The important thing is to continue to save. If you've been saving at a set amount already, I would certainly say you shouldn't stop saving, that that's going to be so key to your financial resilience in the future.

Neil Wertheimer: If you have a question, a reminder for Suze Orman or for Jo Ann Jenkins, please press *3 at any time on your telephone keypad to be connected with AARP staff. Jo Ann, AARP was recently involved in securing that historic legislation to curb drug prices that Nancy touched on. How does the legislation help older adults save money?

Jo Ann Jenkins: So AARP fought hard for Congress to include multiple provisions to lower the prices of prescription drugs in the Inflation Reduction Act. We know that health care is a major expense for many of our members, and this law that was passed allows Medicare to negotiate the price of certain drugs. Drug companies will be penalized if they raise prices faster than the rate of inflation, and tens of millions in Medicare plans will soon have an annual cap on how much they pay out of pocket for their medications. This is a historic victory, and we could not have done it without the tens of millions of AARP members who emailed and called and wrote letters to Congress to voice your approval of getting this legislation passed. And so, this was eight, nine, 10 years in the making. We will continue to fight to make sure these laws are implemented. And again, I just offer my thanks to the members, and also to the Advocacy Team inside of AARP, and also at the state levels for getting this legislation passed.

Neil Wertheimer: Where can people turn to for more information if they want to understand more about what passed and its implications?

Jo Ann Jenkins: Well, they certainly can go to aarp.org, and it's front and center on our website. Obviously, we included a major piece in ATM The Bulletin, and there will be additional follow-up items coming out in AARP The Magazine as well. And hopefully, members received my personal letter that I sent to them about two weeks ago, really outlining what was included about the battle and thanking them for all of their participation.

Neil Wertheimer: Now, let's turn back to you, Suze. The housing market is likely entering a downturn after bidding wars, and buyers were sometimes grabbing whatever they could get for the last two years. What is the market like today? Is it a good time to buy or sell a home?

Suze Orman: Well, it's a fabulous time to sell a home because prices are still up, Neil. And what's happening is not that the prices are actually going down for real estate, they aren't appreciating as fast as they were appreciating. So I still think if you want to buy a home — and I understand very well — if you're going to buy a home, right, that you know interest rates are going to be about 6, 6.25 percent, maybe even higher, because that's what they're at right now for a 30-year fixed-rate mortgage, that I still think you could do a good return on your home. Because remember, when you buy a home, you get a tax deduction for interest payments, and eventually, hopefully you pay it off, so you're not subjected to these exorbitant rent payments that everybody is paying today. But selling a home right now, it's a great time to sell a home. But then, if you sell a home, where are you going to live? Are you going to have to buy another home? And if you have to buy another home, are you going to have to finance it? Because if you're going to have to finance it, are you trading a 2.5 percent mortgage that maybe you're paying now on the home that you currently own for a 6, 6.25 percent mortgage, and does that even make sense? So it depends. The true answer to your question, Neil, is what is your end goal? Is your end goal to buy a, you know, to sell a home and move into another place that you have? Is it to travel? Is it to do whatever? But you have to look at real estate is still high, and it's not going to come down dramatically. You may not, again in my opinion, see the increases that you were seeing, but I don't think you're going to see your house go under what you bought it for.

Neil Wertheimer: Americans continue to grapple with double-digit increases in food and energy as well. Yesterday there was another big rate hike by the Federal Reserve to slow growth and reduce inflation. Suze, do you think inflation topped out or is there more to come?

Suze Orman: I think there's more to come. I think that we live in a very, very difficult time. We live in a time where we're at war with Ukraine. We live at a time where Russia controls the oil that goes to Europe. We live at a time where anything can happen and we just, that is reality. Because of that, it's possible even though we saw gas prices come down at the pumps, who knows depending what happens with foreign relations, can that continue up? Will we have shipping problems again? Will we not? The one thing we know for sure is that interest rates are going to continue up because that's exactly what the Fed chairman said yesterday, until inflation comes down to 2 or 3 percent. He will continue, the feds will continue to raise the Fed Funds Rate. That's why I'm saying to all of you, just wait a little, look at what's happening with the interest rates of Treasury bonds. You know, you could get 4 percent right now on a two-year Treasury note. And that's a great interest rate given that a year ago, maybe you could get half a percent. So interest rates are going to continue up. So again, CDs, savings accounts, Treasuries may be something that really answer the problems that you're having in terms of not having enough income. But I don't think inflation has topped out. I think inflation will hopefully trickle down, but only time will tell. We'll know shortly.

Neil Wertheimer: Suze, I'm going to do a quick follow-up question. What role everyday frugality in the long-term fight for your own finances, and I ask this because even at The Bulletin, the media popularly puts out lots of money-saving tips. Is that an important strategy in managing your money in times like these?

Suze Orman: It's not just times like this, Neil, it's always an important strategy. You know, I have a saying, that number one, you need to be secure. So when do you buy what you can afford versus what you need, when you can afford more than what you need. So myself and KT, my spouse, we have always lived below our means but within our needs. Just because you have money doesn't mean that you should spend it. So we, even to this day —and I'm 71 right now, KT is 70 — just because we have money doesn't mean we spend money. We watch very carefully about every penny that we spend, even at this point in our lives where obviously, you would expect that I'm an extremely wealthy woman. That doesn't mean we're not frugal. So my advice to all of you at this point in time, would be live below your means but within your needs. How do you do that? From this day on ask yourself the question when you go to buy something, Is this a need or is this a want? If it's a want, don't buy it. If it's a need, obviously you have to buy it. And please get as much pleasure out of saving as you do spending. Those would be the three things that I would have you do.

Neil Wertheimer: Thank you, Suze. Now it's time to address more of your questions with Suze Orman and Jo Ann Jenkins. Please press *3 at any time on your telephone keypad to be connected with AARP staff. Gil, who do we have on the line?

Gil Cabrera: Well, Neil, now with us on the line, is Jean from Missouri.

Neil Wertheimer: Hi, Jean from Missouri. Glad you're with us. What would you like to ask?

Jean: Good afternoon. Thank for taking my questions. I'm 83, and I still work part-time. I have a couple questions primarily for Suze, I think. I always appreciate her comments and listen to her program from time to time. So first of all, reverse mortgages. What is her opinion, and when should a person consider that? And the other was a question about now that they have expanded the laws concerning traditional IRAs to where folks 70 and older who are required to take minimum distributions can still make contributions up to their earned income or $7,000, whichever's greater. What would be her take on doing that?

Suze Orman: Boy, you know, Renee, or Jean, sorry, I would need know more about you in terms of the second part of your question. In terms of reverse mortgages. Honestly, I've never really been a fan of them, and I really was not a fan of them a few years ago when interest rates were so low, because your reverse mortgage payment will be based on obviously your age as well as the interest rates at the time and what your house is worth. And most people do reverse mortgages because they want to stay in their home, and they don't have enough money to stay in their home. And I'm somebody who always advises, if that's true, then let's sell your home, because eventually, maybe you can't stay in that home anyway. Because maybe it has a second set stairs in it, and you can't walk stairs or whatever it may be. So as you get older, I'm a true advocate in making sure that you're living in a situation where it's all on one floor. You know that you have money for aides to take care of you or that you are thinking about that, because one of the largest expenses will be long-term care. And health insurance does not cover long-term care. So I would want you to conserve all the money that you have in your home for you to eventually take care of yourself if you can't stay in that home. But a lot of people love reverse mortgages, but again, they're just a personal thing, they're not my favorite. In terms of yes, the Secure Act and everything that was passed allow you to continue to make contributions to your IRA, my question would be, are you contributing to a Roth IRA or a traditional IRA? And if you are contributing to a Roth IRA, where I know you can get that money and whatever, I don't have a problem with that at all if that's what you want to do. But I would rather make sure that you see that you have at least an eight- to 12-month emergency fund so that when you no longer are working and you need to take money from somewhere, that possibly you're taking it from cash to make up for inflation rather than selling things that happen to be in your retirement account.

Neil Wertheimer: Jean, I also want to just say, all of our respect and admiration, you're 83 and still working, and clearly you do that because you want to, and you ask a very astute question. It's clear, you know about money and I hope for all of our members to be that way. Gil, I think we have time probably for one more question. Do you have anyone ready to go?

Gil Cabrera: Absolutely, Sandra is joining us from Texas, Neil.

Neil Wertheimer: Hi, Sandra. Can you ask your question? We'd love to hear it.

Sandra: Thank you so much for taking my call. I've really enjoyed listening, but I'm a proactive person. I'm 50, going to be 59, and I believe in not having things act upon me, but acting upon it. In other words, making decisions together as consumers, how can we, together as consumers, bring down inflation and not just wait for it to come down?

Neil Wertheimer: That's a provocative and interesting question. Suze?

Suze Orman: Well, Sandra, you can do what the federal, what the Fed chairman wants you to do, and that is, they want you to stop spending. If we all stop spending — I know this sounds counterintuitive — they want the economy to slow down. They want people to stop buying things. They want people, believe it or not, to see the unemployment rate go up. If we all, if that's what happens, then you would see inflation start to come down, according to them. I'm not sure that's true or not, and I don't quite even understand all of how it works, but that is how they want everybody to act right now. So I'll give you what they want because they're the ones in control of this right now.

Neil Wertheimer: Though we are approaching the Christmas and holiday season, and do you have any guidance about how people should give gifts and be spending on the holiday season given this unique economic moment we're in?

Suze Orman: Yeah, I would ask all of you to do what my family does, and that's we make gifts for one another, we do not buy things for one another. And if you happen to be in a situation right now where inflation has taken a bite out of your budget, if you've put all 99 ways to save into effect, then you know, that Neil has done for all of you, and you still can't make it, then give yourself a true gift of not feeling guilty because you can't buy something for somebody. Just very quickly, I did studies over the years where I would go up to people with microphones, and I would say, What did you get last year for the holidays? And nobody could ever remember, except those people that got love notes, that somebody baked them cookies. So I think this should be a year where you give love to one another, give respect to one another, but not necessarily buy gifts. And if you have the money to buy gifts and to do everything, rather than giving to people, give it to nonprofits. Give it right now to people who are truly, truly suffering out there. That's what I would tell you would make the perfect holiday season.

Neil Wertheimer: And I think that's the perfect answer to bring this to a close. This has been an informative and delightful discussion. Thank you so much for the questions, and thanks to both our guests, Jo Ann and Suze, for your information, your insights, your openness. And thank you, our AARP members and volunteers and listeners, for participating in this discussion. AARP, a nonprofit, non-partisan organization with a membership, has been working to promote the health and well-being of older Americans for more than 60 years. All the resources referenced, including a recording of today's Q&A event, can be found at aarp.org/coronavirus on September 23. Go there if your question was not addressed, and you will find the latest updates, as well as information created specifically for older adults and family caregivers. We hope you learned something that can help keep you and your loved ones healthy. Please join us on September 29 for another live coronavirus Q&A event. Thank you all and have a great day. And this concludes our call.

[00:00:00] Neil Wertheimer: Hello, I’m Neil Wertheimer, and I want to welcome you to this important discussion about inflation and its impact to your retirement security. Before we begin, if you would like to hear this telephone town hall in Spanish, press *0 on your telephone keypad now.

[00:00:23] [Instructions in Spanish]

[00:00:23] AARP, a nonprofit, non-partisan organization with a membership, has been working to promote the health and well-being of older Americans for more than 60 years. Since that fateful month of March 2020, when the COVID pandemic officially began, all our lives have been changed in some way, be it our health, our work, our levels of anxiety, our connections to others or simply how we live day to day. More recently, the impact has been increasingly financial, particularly for older Americans. And then came the inflation. Over the past year or so, we have faced some of the highest rates of inflation in decades, with groceries, gas prices, utility costs and most everything else we spend on seeing double-digit increases. At the same time, many of our retirement accounts and other investments took a big dive, and that's made us all worried. How do we cope with surging costs in the short term and plan for the long term? Many of us are exploring new ways to save and manage expenses. Today, we'll hear from an impressive panel of experts about these issues and more. We'll also get an update from Capitol Hill on legislation affecting older Americans.

[00:01:42] If you've participated in one of our tele-town halls, you know, this is similar to a radio talk show, and you have the opportunity to ask questions live. For those of you joining us on the phone, if you would like to ask a question about inflation and the impact to your retirement security, press *3 on your telephone to be connected with an AARP staff member who will note your name and question and place you in a queue to ask the question live. If you're joining on Facebook or YouTube, you can post your questions in the comments.

[00:02:20] Hello, I'm Neil Wertheimer, deputy editor for AARP publications, and for six consecutive years, co-editor of "The 99 Great Ways to Save" edition of the AARP Bulletin. I want to welcome you to this important discussion about inflation and the impact to your retirement security. We are talking with experts and taking your questions live. To ask questions, please press *3, and if you're joining on Facebook or YouTube, you can post your question in the comments. We will also be joined by my AARP colleague Gil Cabrera, who will help facilitate your calls today. This event is being recorded, and you can access the recording at aarp.org/coronavirus 24 hours after we wrap up. Again, to ask your question, please press *3 at any time on your telephone keypad to be connected with AARP staff, or if you're joining us on Facebook or YouTube, place your question in the comments.

[00:03:29] Now, I'd like to welcome our guests. Suze Orman is a renowned personal finance expert and New York Times bestselling author. She currently has more than 25 million personal finance books in circulation, including the recently published bestseller The Ultimate Retirement Guide for 50+. She's the host of the popular podcast Suze Orman's Women and Money, and she is cofounder of Secure Save, a tool to help people save for life's emergencies. Jo Ann Jenkins has led AARP, the nonprofit, non-partisan organization that empowers retired people to choose how they live as they age, since 2014 as our CEO. AARP leads efforts to preserve Social Security and promote retirement savings to help everyone achieve lifetime financial security. Welcome to you both. Just a reminder, to ask your question, please press *3 on your telephone keypad, or you can drop it in the comments section on Facebook or YouTube. Suze, let's dive right in .

[00:04:43] Suze Orman: Let's do it, Neil.

[00:04:45] Neil Wertheimer: It's so nice to be with you, Suze. Everything costs more right now. We all know that. Do you see any good news on the horizon for people whose budget is being erased by inflation?

[00:04:57] Suze Orman: I have to tell you, I do. You know, when we have such high inflation, what you're seeing the feds do now is they are raising the fed funds rate, which raises interest rates for everybody. So because inflation is so high, first of all, all of you are going to notice next year, your Social Security check is going to increase by probably 8 or 9 percent, right around there. So you will be getting more money because of inflation. At the same time, because interest rates are increasing, for those of you who want to keep your money safe and sound, you're afraid of the stock market. Finally, you can get a decent interest rate now in certificates of deposit. You can start getting a better interest rate than you were getting a year ago in savings accounts. And the Treasuries right now are offering 3.5, 4 percent. So there's a way for you to get more income on money that you may have that then helps you pay for the things that are costing you more. That's the good news, if there's any good news at all.

[00:06:08] Neil Wertheimer: Suze, right now, there's these inflation-protected savings bonds, these Series I bonds, and their rates are incredible. Not many people know about them. What are they, and do you recommend them?

[00:06:22] Suze Orman: For the past year or so now, because inflation really started, Neil, you know, over a year ago. The government issued something called a Series I bond, and "I" stands for inflation. And you can purchase them with as little as $25 or up to a maximum of $10,000 per person, and currently, they are giving you a 9.62 percent interest rate. Now that interest rate is really for six months. So in actuality, you're getting 4.81 percent because the interest resets every May 1 and November 1. But I am telling everybody to go to Treasurydirect.gov, because these are, again, guaranteed by the authority of the United States government, they're state-tax-free, and you do not pay any income taxes on it while your money's in there. Where today can one get an interest rate like I just said? The catch is, however, you have to leave your money in there for at least one year, you cannot touch it. And years two through five, if you withdraw any amount of money, there's a three-month interest penalty. But just very quickly, if you were to get and go there and do it right now, for the next six months you would get 4.81 percent — really half of 9.62 because it's only for six months — and let's say November 1, they come out with a new rate of 7 percent. So after your six months is up, for the next six months, you would get 3.5 percent, and even if you came out after one year with a three-month interest penalty, you would get 6.50 percent, right around there. Where else are you going to get that? So it's something that every single person should check out, and you should all do it before November 1, when interest rates will absolutely change again.

[00:08:28] Neil Wertheimer: It's a stunningly good return on your investment, given how volatile the stocks are. So thanks for that. And now, Jo Ann, let's turn to you. What has AARP been hearing from members? How do older adults feel about the economy right now?

[00:08:44] Jo Ann Jenkins: You know, Neil, I hear daily from our members about the questions and confusion you are facing because of the impact of COVID and inflation on your personal and your financial lives. You know, the pandemic has financially impacted people very differently, but right now, everyone is feeling the impact of inflation and supply chain issues, we're paying more for our groceries, and this summer we saw the highest gas prices all across the U.S. AARP recently fielded a financial trend survey of adults ages 30-plus and found that 78 percent are worried about the prices rising faster than their income. And this includes 77 percent of adults who are over the age of 50, and nearly half have cut back on basic expenses like groceries, personal care and transportation in the last 12 months due to inflation. So for many, the pandemic has also altered retirement plans and opportunities. Some needed to dip into their savings to cover a gap in employment, while others decided to retire earlier than they had planned to. And now that the prices are rising, and the stock market is lower, we're hearing from older adults who are delaying their retirement. You know, an AARP survey from May shows that 42 percent of adults, age 50 and older, either have returned to work in retirement for financial reasons or expect to go back to work in retirement for financial reasons. And like many other areas, older women are especially concerned about the economy. Our research shows a significant majority of the women aged 50 and older are deeply concerned about having enough money to keep up with the rising prices. And, you know, this is also an election year, and we've been talking with older voters about what issues matter most to them. Again and again, they tell us the pocketbook issues are at the top of their concern list. They're worried about whether their income can keep up with rising costs. Voters 50 and older are one of the largest and most reliable voting blocks, and the candidates would be wise to keep their concerns in their minds as we get closer and closer to election day.

[00:11:01] Neil Wertheimer: Suze, as Jo Ann just shared, Americans are worried. We're repeatedly told to follow a plan, but the way that we spend and save is tied so much to our emotions, and right now older adults are anxious about outliving their savings and they're worried about stock market volatility. Many are reevaluating their plans. What are the risks of making changes right now?

[00:11:23] Suze Orman: Well, it depends where you are within this stage of retirement. People who are 50, obviously, many of you are not retired yet, so many of you are still working and you're still contributing to your retirement plans, whether it be a Roth IRA, an IRA or an employer-sponsored plan. And you're seeing the market go down. And normally you just put in every month. Do not change that plan. As the markets go down, your dollars that you're putting in buy more shares. Eventually, whether it's a year, two, three from now, the markets will return up, and that will then be there for you when you retire. So one of the biggest mistakes you can make, if you still are contributing to a retirement plan and you are at least five or 10 years from retiring, do not change your plan. Do not stop investing. I personally would tell you: You are far better off investing in a Roth retirement plan, bar none, than a traditional retirement plan that is pre-taxed for many, many reasons, especially later on in life when you do retire. For those of you who are already retired, you have money possibly in the stock market, and you're afraid because your income isn't keeping up with what you need. I would ask you to look at everything you are invested in, because as these markets have gone down, are you invested in stocks, for instance, that are paying you a good dividend to give you some extra money that comes into you. Or are you invested in mutual funds that aren't paying you dividends or stocks that aren't paying you dividends? So in that chance, Neil, what I would say, look at what you have and possibly change your plan to get your money to generate more income for you. Even if you're in a retirement plan, at this point, there's nothing wrong with looking at bonds within your retirement plan to generate more income. And if done correctly, eventually, when interest rates go back down, the value of those bonds will go up. A year or two ago, I would have said stay away from bonds, get out of bonds, get out of bonds. Now you might want to look at bonds as an investment that gives you income as well as safety.

[00:13:59] Neil Wertheimer: Suze, very quickly, you mentioned Roth IRAs, and we write about them a lot in the Bulletin. But a lot of people don't know what are. Can you quickly define them and let people understand their benefits?

[00:14:10] Suze Orman: A Roth retirement account, whether it be a Roth 401[k], 403[b] or TSP, if it's with your employer, or a Roth IRA that you do on your own is simply a retirement account that you fund with money you have already paid taxes on. Because you've already paid taxes on it, it stays in there and it grows and grows and grows, and later on in life, when you go to take money out, it is totally tax-free to you. The good thing about a Roth IRA is that any money that you originally put in, you can withdraw at any time without taxes or penalties, regardless of how long the money has been in there and regardless of your age. So at times like this, if you had money that you put into a Roth IRA, year after year after year, that you yourself contributed, and you needed to withdraw $2,000 or $3,000, you could do so without taxes or penalties because it's coming from the money that you put in. If you had a traditional retirement account, meaning you fund it with pre-tax dollars, so you get a tax write-off, you cannot touch that money prior to the age of 59½ in most circumstances. Or if you do touch it, there will be not only a 10 percent penalty, you'll pay ordinary income taxes on it as well. Hands down, for many reasons, Roth retirement accounts are far better because later on in life, when you do take money out of a Roth retirement account, it does not count against income for Social Security and Medicare B premiums. Big deal, everybody. Think about it.

[00:16:03] Neil Wertheimer: Thank you, Suze. I'm glad you explained it. It's time now to address your questions with Suze Orman and Jo Ann Jenkins. Please, again, press *3 at any time on your telephone keypad to be connected with AARP staff to share your question. And if you would like to listen in Spanish, press *0 on your telephone keypad now.

[00:16:33] [Instructions in Spanish]

[00:16:35] I'd now like to bring in my AARP colleague Gil Cabrera to help facilitate your calls. Welcome, Gil.

[00:16:42] Gil Cabrera: Thanks, Neil. I'm very happy to be here for this very important conversation.

[00:16:47] Neil Wertheimer: So, Gil, let's take our first question.

[00:16:52] Gil Cabrera: Absolutely, Neil. Our first question, it comes from Michigan. Sherry is with us live.

[00:16:58] Neil Wertheimer: Hi, Sherry in Michigan. Go ahead. Ask your question, please.

[00:17:03] Sherry: Hi, yes, thank you for taking my question. I'm 72 years old and am retired, and I have a 401[k] that's been losing money with what the stock market's been doing, and I'm just, I keep, you know, they say stay in there, you know, if you pull out, you're locking in your losses. And every time I keep thinking, well, should I be moving some of this into a fixed-rate CD, since the rates are up. But then all of a sudden, the market will pop up, and I'll make a nice chunk of change again. And I'm like, okay, it would take you 10 years to make that kind of money. So I'm kind of confused on what to do, and I keep wondering if the closer we get to the midterm election, if that will be a plus, or can I expect that to make it even worse?

[00:17:55] Neil Wertheimer: Suze, I think that's one for you to answer.

[00:17:58] Suze Orman: All right. So, Sherry, there's no way to know will the election help the markets, will it not. What will continue to hurt the markets is as long as inflation is rampant, inflation hurts the markets. And as long as inflation is high, the feds will continue to raise interest rates. The more they raise interest rates, the more it hurts the stock market overall. The more it helps, however, Treasuries, CDs and savings accounts. The goal of money, Sherry, is for you to be secure. And hope is not a financial plan. So if you are feeling insecure, the truth of the matter is you might want to look at what you own, and you might want to say, you know what, this money I want to keep safe and sound, because you are also 72 years of age, which means by April 1 of next year, you have to start taking required minimum distributions. And so, do you want to take money from distributions of stocks that are continuing to go down? So I do not think it is a bad idea to take some of your money if 100 percent of it is in equities at this point in time, I don't think it is a bad idea to take some and change that into bonds or certificates of deposit. And that's where you will get your required minimum distributions from.

[00:19:37] Neil Wertheimer: Suzy, what do you think is a good ratio for someone around age 70 who's relying on their retirement income or their investments between the stock market and the bond market? Is it 60/40?

[00:19:50] Suze Orman: Well, you know, it depends on their individual situation. I know, Neil, that a lot of times people say, at this age, you should have this much in bonds, this much in stocks. But the truth of the matter is, you know, on my podcast a year and a half ago, I had everybody out of bonds, and I had everybody out of bonds regardless of age, because as interest rates go up, the value of bonds go down, especially bond funds. So more than even allocating according to your age, I would tell you to allocate according to what's happening in the economy to take advantage of it. I personally believe, this is my personal opinion, it's going to be a rough year or two for the stock market. I just believe that. So I think people should just know what they can afford to lose and what they can't.

[00:20:47] Neil Wertheimer: Gil, can we bring in another caller and get another question?

[00:20:52] Gil Cabrera: Absolutely, Neil. We have Mike from Indiana with us next.

[00:20:56] Neil Wertheimer: Hi, Mike, I'm glad you called in. Thank you for doing so. Can you ask your question? We'd like to hear it.

[00:21:02] Mike: Yes, sir. My situation is that because of high medical bills, we basically lost all but $100,000 of our retirement before I hit 65. My wife has Parkinson's dementia, I am her caregiver. Our house and car are free, they're fully paid for. We have no credit card debt. We have no other debt, and I need to increase my income stream. But I have to stay at home to take care of my wife, and I just don't know what to do.

[00:21:53] Neil Wertheimer: So, I'm going to ask to split this. Jo Ann, do you want to talk a little bit just about the impact of medical costs on older folks, and then we'll ask Suze for any advice that she has.

[00:22:05] Jo Ann Jenkins: Well, absolutely. We know that medical cost is one of the biggest issues that particularly older Americans are facing if, like in your case, your wife's illness really devastates your financial resilience with your personal finances. You know, we've been on this road to try to get the Congress to bring forth some relief in terms of the high cost of medical expenses. And looking at out-of-pocket costs for people, older people, to $2,000 a year for those on Medicare. But we just know that we have got to bring some relief to the tens of millions of people all across this country who, but for a severe illness like this, would have been financially taken care of. And so we certainly know how important it is for us to be able to manage some money that we have wisely. So I'll turn that over to Suze.

[00:23:10] Suze Orman: You know, Mike, first of all, my heart goes out to you. And are you healthy, Mike? I don't know if he's still on, so I'll just answer then. It's in situations like this, one of the things that you might consider — and again, I don't know your situation — is, I don't know how much equity you actually have in your home. I don't know if it makes sense at this point in time for you to possibly look into selling the home that you have, and maybe taking money and going into an assisted living facility with your wife so that you could also have some relief. Because if something happens to you, Mike, who takes care of your wife? So there needs to be another person there that can also help. So is it that you go out and you go back to work, and you bring in somebody, possibly for a few dollars an hour, whatever that may be, to take care of her while you're working. It is not easy. And I do not have the solution for you without being able to sit down and look at everything that you have. But with real estate still being really high in terms of people are still getting prices that they want to get — and I'm not sure that's going to continue — these are all alternatives for you to look at. Also, I just have to say this, Mike, I don't know if you have children or if you other family members, but sometimes parents feel like they need to do it all on their own. There's nothing wrong with asking your children for help. There comes a time when the children need to bone up and help their parents, like their parents helped their children all those years. So I truly believe in making finances a family affair, if you can, and involve everybody to help solve this situation.

[00:25:11] Neil Wertheimer: Thank you. Thank you, both. Gil, we would like to bring in one more folk. Can you invite someone in with a question?

[00:25:21] Gil Cabrera: Absolutely, happy to. We have Judith from Indiana for you, Neil.

[00:25:26] Neil Wertheimer: Hello, Judith. Thank you for joining us. What's on your mind?

[00:25:31] Judith: Well my question is about the increase in rent that's occurred since the start of the pandemic. And I was wanting to know if that cost will ever go down.

[00:25:45] Neil Wertheimer: What do you think, Suze?

[00:25:47] Suze Orman: I don't think it will go down, I'm so sorry to say, unless some legislation is passed that says people have stop gouging all of you, and that's exactly what's happening, I'm so sorry to say, Judith. The reason I don't think it will go down is that inventory of homes are still very low. And many of the people who were and companies that were building homes have stopped building them for some reason. They have cut back on that, which makes inventory stay low, which makes it that those people who own homes and rent them out, and you have no choice, they can charge you what they want unless it's rent controlled. And there you go. So it's difficult. I just think it's atrocious what rents are today. And in reality, there's absolutely no reason that they should be that high. So Judith, either you have to find another place, get roommates, believe it or not, find out other things that possibly you can do. Can you move to a different neighborhood where rents aren't quite so high? It's very difficult, and I wish I had a magic wand to solve that for you. But I'm sorry, I don't. But that is the reality of the situation.

[00:27:08] Neil Wertheimer: So, as a reminder, to ask your question, please press *3. We're going to take more of your live questions soon. In addition to sharing trustworthy information and hosting events like this, AARP is continuously advocating at all levels of government and fighting on behalf of older Americans. To give a quick update, I want to bring in AARP executive vice president and chief advocacy and engagement officer, Nancy LeaMond. Welcome, Nancy.

[00:27:39] Nancy LeaMond: Happy to be here, Neil.

[00:27:41] Neil Wertheimer: So I want to start with last month's historic prescription drug reforms that passed the House and Senate and were signed into law. I'm going to ask Jo Ann to speak more about this in a moment, but I'd be remiss to not offer some real deep congratulations to you on behalf of all of us and to your teams on the passage of the legislation.

[00:28:02] Nancy LeaMond: Well, thanks so much. Prescription drug pricing reform is a tremendous victory for older Americans that was quite literally years in the making. After decades of calling on Congress to make prescription drugs more affordable, AARP won the fight to allow Medicare to negotiate lower drug prices and other policies that will save seniors money on their medications. Jo Ann's going to explain the details and why it's so important, but I want to thank everyone who signed our petitions, sent emails and called members of Congress. Many of you are on this call, and you powered this success. We couldn't have done it without you.

[00:28:40] Neil Wertheimer: So what are some other ways AARP is fighting to help older Americans, especially those still in the workplace?

[00:28:47] Nancy LeaMond: Well, we know that these days it's harder than ever to make ends meet, you all have been talking about it on this call. So first and foremost, AARP is fighting to protect Social Security and Medicare, which are the foundation of a secure retirement. We're advocating for state work-and-save programs that provide an easy way for workers to save for retirement. We're also advocating to support family caregivers who work, pushing for legislation to allow them to take time off to care for a loved one without fear of losing their pay or their jobs. And we're fighting to make sure that paid sick leave is available to workers all the time, not just during public health emergencies.

[00:29:31] Neil Wertheimer: So, Nancy, we are entering election season. What is AARP's focus heading into the November election?

[00:29:40] Nancy LeaMond: First, it's important to remember what we don't do. AARP doesn't endorse candidates, nor do we give money to candidates. That said, we're working hard to make sure that all candidates pay attention to older Americans and address the issues that are important to them. As they have been in all recent elections, we fully expect voters age 50 and older to make up the majority of the electorate in November. We're also making sure our members and broader constituency know how, where and when to vote. A lot of states have changed their voting laws since the last election, so we're doing a lot of education and outreach to explain what's different and what stays the same. In addition to election pages on aarp.org, this month's issue of the AARP Bulletin, as you well know, Neil, details how you can vote in your state.

[00:30:33] Neil Wertheimer: Yeah, we put out 53 voter guides, for each state. So I hope you all use them, and I hope it's helpful. AARP has done a lot of pre-election polling in battleground states and national surveys of women voters, age 50 and up. What can you tell us about the findings?

[00:30:52] Nancy LeaMond: Well, in a nutshell, elections are going to be very close in the battleground states, and older voters, especially older women, are going to be critical to the outcome. Our research shows that one in three likely voters in key states are women age 50 and up, and they are the biggest block of swing voters. When comes to issues, inflation and the economy are certainly top of mind, but we're also seeing a lot of other issues bubble up, including the division in this country and protecting Social Security and Medicare. It goes without saying that every single vote counts.

[00:31:30] Neil Wertheimer: Nancy, thank you for being here today. If our listeners want to stay on top of AARP's advocacy news, how can they find the latest updates?

[00:31:40] Nancy LeaMond: We encourage everyone go online and search “AARP Fighting for You.” That will lead you to a daily roundup of all of our latest advocacy news, on our work in Congress, and across the country. And you can also search “AARP Fierce Defender” and find a host updates and money-saving resources.

[00:32:01] Neil Wertheimer: So thank you, Nancy. And now it's time to address more of your questions with Suze Orman and Jo Ann Jenkins. Please press *3 at any time on your telephone keypad to be connected with AARP staff. Gil, who do we have on the line?

[00:32:19] Gil Cabrera: Well, Neil, there is a question coming to us via Facebook that I, social media, that I found rather interesting. The question is from Karen Guzman. She says, "You provided guidance for those who will retire in five to 10 years. What advice do you have for people who may retire in the short term, as in the next one to three or five years?

[00:32:43] Neil Wertheimer: Suze, do you want to take that?

[00:32:45] Suze Orman: Well, what I was saying when I said five to 10 years, is that those, you know, if you have time on your side, five to 10 years, you can weather this downward market. If, however, you have one to three till you retire, you have to look at your retirement account, and you should look at it seriously right now and decide, Is there enough money in there right now for me to be able to retire? Because over the next one to three years, as I said — and again this is just my personal opinion, I could be 1,000 percent wrong — I think we're going to see more of a decrease in the stock market than an increase for the next one or two years. So this is when you look at what you have, and you decide what you want to keep safe and what do you want to keep invested. For those of you who are going to retire in one to three years, and you happen to own a home that still has a mortgage on it, and you are going to stay in that home, my advice to would be for you, rather than to even put more money into the stock market through retirement plans, to take that money, and if you could get your home paid off in full by the time you retire, then you're really sitting pretty, or a lot prettier, because your largest expense is your home mortgage or your rent payment. But there's nothing you can do about the rent payment. But if you could get rid of your home mortgage, I would tell you, that's where all my extra money or my investment money, if I had any, that's where it would be going. So you want to get yourself in a position, if you're retiring in one to three years, where your car loans are paid off, you're out of credit card debt, you don't have a home equity line of credit, you want to make sure that you are as debt-free as possible. So if you can, if you have any extra money, it would be going there, in my opinion, rather than anywhere else.

[00:35:02] Neil Wertheimer: Suze, I want to follow up on that. We often write in the Bulletin, and I think we sometimes overcomplicate the retirement planning in the sense that what really matters is one equation, which is, do you have enough monthly income to cover all of your costs? Is there a way to really calculate that? I mean, is that what someone who's planning to retire should focus on, is really understanding how much income they're going to have and how much they're going to be spending?

[00:35:29] Suze Orman: Yes, but the problem, though, Neil, is they don't know how much they're going to be spending if inflation is added to that equation. So a lot of times what people do is they look at what they are spending now. Imagine if you did that a year or two ago, and inflation was relatively nil, and you had your Social Security, maybe you had a pension check, maybe you had some rent, who knows, coming into you. And you knew that your income covered your expenses, but now your expenses have increased dramatically because of inflation. So if I were you and I was doing that exercise, because that is the correct exercise that one should do, then what I would be doing is if you know what your expenses are today, just increase them and pretend like they're more expensive in the future, because maybe you need a home health care worker or somebody to take care of you. Or if you lose a spouse, maybe you need to hire somebody now to fix your car or do things like that. Just make sure that your expenses are realistic and increase every year to know how long will your income cover those expenses. But essentially, that is how you would figure it out.

[00:36:48] Neil Wertheimer: Thank you, Suze. Gil, can we get another question?

[00:36:53] Gil Cabrera: Happy to. Neil, we have Al from New Jersey for the panel.

[00:36:58] Neil Wertheimer: Hey, Al, how are you? It's good to have you. Why don't you ask your question? We want to hear it.

[00:37:04] Al: My question is this: Will Social Security always be there for us? There was one politician who wanted to get rid of Social Security. Can he do so?

[00:37:22] Neil Wertheimer: Jo Ann, what do you think?

[00:37:23] Jo Ann Jenkins: Well, I certainly hope not. And, you know, we believe Social Security will be there. Obviously, there needs to be changes made to make sure that it is there in perpetuity, but there are a number of legislative bills under consideration that would cut back Social Security in certain forms, in certain ways. AARP is there advocating to make sure that does not happen. Social Security is something that we've all paid into over the course of 40 quarters, over our lifetime. It's something that the American people bought into a system that the government said would be there for us. And we're certainly expecting and will be holding the Congress accountable to make sure Social Security is there not just for us, but for future generations and our grandchildren to come.

[00:38:21] Neil Wertheimer: Yeah, I'll add to that, that we recently did an extensive story about the future of Social Security, and surveys showed that somewhere like 90 percent of Americans are strongly in favor of the program. And so, it truly transcends politics. This is a cornerstone program of American life. And so I think most experts would agree, it will continue to carry on, Jo Ann.

[00:38:47] Jo Ann Jenkins: Well, I was just going to say, you know across the board, AARP members, you know, liberal, conservative, Republican, Democrat, rural, city — everyone supports Social Security. And so there will be a big fight on Capitol Hill if someone tries to touch Social Security to make sure that it's not there in the future.

[00:39:11] Neil Wertheimer: Gil, can you bring in another question?

[00:39:15] Gil Cabrera: Absolutely. We have from Alabama, Linda joining us, Neil.

[00:39:19] Neil Wertheimer: Linda from Alabama. Thank you so much for participating. What's on your mind?

[00:39:25] Linda: Thank you for taking my question. My husband is actually retiring tomorrow.

[00:39:33] Neil Wertheimer: Congratulations.

[00:39:35] Linda: Thank you so much. We're really excited. His 401[k] is with his employer. He is invested in stock, which has done very well, you know, until now, it's a little rocky. But I wanted to ask — and I know everyone's situation is different — whether or not to roll it over to another qualified plan. My thoughts are to leave it where it is because, of course, his stocks are down. And I feel like we've done the numbers, we can hang in there and wait for the market to come back up. And then at that point, I don't know what we would do. I'd have to think that one, you know, when we get to that bridge. But I wanted to get thoughts on that.

[00:40:32] Neil Wertheimer: So that's a great question, Linda. Suze, I'm going to ask it in two parts of that. One is, should Linda leave it in her current 401[k] or roll it over? And second, if you're really looking at a longer-term time frame, should you leave it in stocks knowing that, in general, through history stocks pretty much do self-correct after a certain number of years.

[00:40:58] Suze Orman: Linda, the main thing you have to understand is that you are very familiar with the 401[k] plan where this money happens to be. You feel comfortable there. If you did an IRA rollover with it, you could either, depending if you're in stocks or I don't know what you're invested in, but you could change a lot of things by just rolling whatever you have into an IRA rollover, and you would not suffer any loss whatsoever. So possibly what you own could go to your IRA rollover or even if you cashed out — where you had to do it in cash for some reason, because maybe there are things that you can't roll over — if you did do an IRA rollover, you could buy essentially the same thing. So you would not, essentially, lose money by doing an IRA rollover. What you would gain is there is more diversification within an IRA rollover than the few mutual funds and the company stock that may be in your 401[k]. However, with that said, since you feel comfortable there and you might not know how to reinvest all of that money, you should just stay where you are, if that's what makes you feel secure. I don't have a problem with that. So if you wanted to get more sophisticated, however, you could obviously do an IRA rollover, and then maybe start to convert some money to a Roth IRA, and take advantage of the fact that the market is down. So when you convert to a Roth, you don't pay as much taxes. These are all things that you all need to learn about, and again, that's what I do on the women and money podcast. It's mainly for retired people to talk about these kinds of things. So if you feel like you have time, and you're not going to need this money, and you know that you're invested in good-quality stocks, you're diversified so you have it all over the place to know that it's not just all technology or whatever, and you feel comfortable with that, I don't have a problem with it.

[00:43:10] Neil Wertheimer: Suze, the second part of that question is that Linda said she may not need this money for several years to come. Are you a little more bullish of staying in the stock market in that situation?

[00:43:20] Suze Orman: Yeah, that's what I just said, Neil, or maybe I wasn't clear in that. That if she feels comfortable, and she has time on her side, and she knows she doesn't need to touch this money, and she knows that she is diversified —you don't want this money all in small cap funds, you need total diversification across the board — and you know you have that, I don't have problem if you just stay exactly where you are, Linda.

[00:43:49] Neil Wertheimer: Great. Gil, how about one more question?

[00:43:53] Gil Cabrera: Of course, Neil. We have a question from Tommie Hoy through our YouTube chat. She asks, "What is crypto? And should we consider that as an investment?"

[00:44:06] Neil Wertheimer: Oh, Suze, I'd definitely give that one to you.

[00:44:09] Suze Orman: So, Tommie, here's the thing. You can invest in crypto if you want, but only with money that you can afford to lose. I personally, wouldn't be touching it if this is money — and I'm not even sure I would call it an investment. I think at many points, this is more like gambling in many ways, because legislation may change about it. But if you want to do it, again, make sure you only do it with money that you can afford to lose. And, in my opinion, you're going to see crypto, bitcoin, ethereum, probably go down now before you see it go up again. So if you are going to invest, I wouldn't do it quite yet.

[00:44:57] Neil Wertheimer: Let's take one more, Gil, please.

[00:45:02] Gil Cabrera: Absolutely. We have, we have a question from Joyce in Pennsylvania, Neil.

[00:45:07] Neil Wertheimer: Okay. Hi, Joyce. So glad that you're listening and have a question for us. Ask away. Joyce, are you there? If not, then let's move on. Actually, we'll return to more of your live questions in just a moment, but before we do, let's talk a bit about Social security some more and also Medicare. Jo Ann, those who rely on Social Security will be counting on a cost of living adjustment. We touched on that about half an hour ago, but what are the expectations for the next COLA adjustment?

[00:45:47] Jo Ann Jenkins: So AARP has long fought to strengthen Social Security and to protect the hard-earned benefits of millions of Americans and their families. The Social Security COLA, which is expected be announced on October 13, will likely be close to 8 percent, and you heard Suze say 8 to 9 percent, and will actually start in January. This increase will be crucial for beneficiaries and their families, as they try to keep ahead of the rising costs. The resources at aarp.org/socialsecurity can help you maximize your benefits, answer key questions, and stay up to date on the Social Security COLA. If you're about to retire, you might consider waiting a little longer and working a little longer to maximize your Social Security income. Your Social Security benefits go up every year until you turn age 70. Increasing your monthly Social Security benefit is important, it's a source of income that goes on as long as you live and is adjusted for inflation. The important thing is to continue to save. If you've been saving at a set amount already, I would certainly say you shouldn't stop saving, that that's going to be so key to your financial resilience in the future.

[00:47:08] Neil Wertheimer: If you have a question, a reminder for Suze Orman or for Jo Ann Jenkins, please press *3 at any time on your telephone keypad to be connected with AARP staff. Jo Ann, AARP was recently involved in securing that historic legislation to curb drug prices that Nancy touched on. How does the legislation help older adults save money?

[00:47:34] Jo Ann Jenkins: So AARP fought hard for Congress to include multiple provisions to lower the prices of prescription drugs in the Inflation Reduction Act. We know that health care is a major expense for many of our members, and this law that was passed allows Medicare to negotiate the price of certain drugs. Drug companies will be penalized if they raise prices faster than the rate of inflation, and tens of millions in Medicare plans will soon have an annual cap on how much they pay out of pocket for their medications. This is a historic victory, and we could not have done it without the tens of millions of AARP members who emailed and called and wrote letters to Congress to voice your approval of getting this legislation passed. And so, this was eight, nine, 10 years in the making. We will continue to fight to make sure these laws are implemented. And again, I just offer my thanks to the members, and also to the Advocacy Team inside of AARP, and also at the state levels for getting this legislation passed.

[00:48:48] Neil Wertheimer: Where can people turn to for more information if they want to understand more about what passed and its implications?

[00:48:54] Jo Ann Jenkins: Well, they certainly can go to aarp.org, and it's front and center on our website. Obviously, we included a major piece in ATM The Bulletin, and there will be additional follow-up items coming out in AARP The Magazine as well. And hopefully, members received my personal letter that I sent to them about two weeks ago, really outlining what was included about the battle and thanking them for all of their participation.

[00:49:25] Neil Wertheimer: Now, let's turn back to you, Suze. The housing market is likely entering a downturn after bidding wars, and buyers were sometimes grabbing whatever they could get for the last two years. What is the market like today? Is it a good time to buy or sell a home?

[00:49:41] Suze Orman: Well, it's a fabulous time to sell a home because prices are still up, Neil. And what's happening is not that the prices are actually going down for real estate, they aren't appreciating as fast as they were appreciating. So I still think if you want to buy a home — and I understand very well — if you're going to buy a home, right, that you know interest rates are going to be about 6, 6.25 percent, maybe even higher, because that's what they're at right now for a 30-year fixed-rate mortgage, that I still think you could do a good return on your home. Because remember, when you buy a home, you get a tax deduction for interest payments, and eventually, hopefully you pay it off, so you're not subjected to these exorbitant rent payments that everybody is paying today. But selling a home right now, it's a great time to sell a home. But then, if you sell a home, where are you going to live? Are you going to have to buy another home? And if you have to buy another home, are you going to have to finance it? Because if you're going to have to finance it, are you trading a 2.5 percent mortgage that maybe you're paying now on the home that you currently own for a 6, 6.25 percent mortgage, and does that even make sense? So it depends. The true answer to your question, Neil, is what is your end goal? Is your end goal to buy a, you know, to sell a home and move into another place that you have? Is it to travel? Is it to do whatever? But you have to look at real estate is still high, and it's not going to come down dramatically. You may not, again in my opinion, see the increases that you were seeing, but I don't think you're going to see your house go under what you bought it for.

[00:51:49] Neil Wertheimer: Americans continue to grapple with double-digit increases in food and energy as well. Yesterday there was another big rate hike by the Federal Reserve to slow growth and reduce inflation. Suze, do you think inflation topped out or is there more to come?

[00:52:04] Suze Orman: I think there's more to come. I think that we live in a very, very difficult time. We live in a time where we're at war with Ukraine. We live at a time where Russia controls the oil that goes to Europe. We live at a time where anything can happen and we just, that is reality. Because of that, it's possible even though we saw gas prices come down at the pumps, who knows depending what happens with foreign relations, can that continue up? Will we have shipping problems again? Will we not? The one thing we know for sure is that interest rates are going to continue up because that's exactly what the Fed chairman said yesterday, until inflation comes down to 2 or 3 percent. He will continue, the feds will continue to raise the Fed Funds Rate. That's why I'm saying to all of you, just wait a little, look at what's happening with the interest rates of Treasury bonds. You know, you could get 4 percent right now on a two-year Treasury note. And that's a great interest rate given that a year ago, maybe you could get half a percent. So interest rates are going to continue up. So again, CDs, savings accounts, Treasuries may be something that really answer the problems that you're having in terms of not having enough income. But I don't think inflation has topped out. I think inflation will hopefully trickle down, but only time will tell. We'll know shortly.

[00:53:57] Neil Wertheimer: Suze, I'm going to do a quick follow-up question. What role everyday frugality in the long-term fight for your own finances, and I ask this because even at The Bulletin, the media popularly puts out lots of money-saving tips. Is that an important strategy in managing your money in times like these?

[00:54:18] Suze Orman: It's not just times like this, Neil, it's always an important strategy. You know, I have a saying, that number one, you need to be secure. So when do you buy what you can afford versus what you need, when you can afford more than what you need. So myself and KT, my spouse, we have always lived below our means but within our needs. Just because you have money doesn't mean that you should spend it. So we, even to this day —and I'm 71 right now, KT is 70 — just because we have money doesn't mean we spend money. We watch very carefully about every penny that we spend, even at this point in our lives where obviously, you would expect that I'm an extremely wealthy woman. That doesn't mean we're not frugal. So my advice to all of you at this point in time, would be live below your means but within your needs. How do you do that? From this day on ask yourself the question when you go to buy something, Is this a need or is this a want? If it's a want, don't buy it. If it's a need, obviously you have to buy it. And please get as much pleasure out of saving as you do spending. Those would be the three things that I would have you do.

[00:55:53] Neil Wertheimer: Thank you, Suze. Now it's time to address more of your questions with Suze Orman and Jo Ann Jenkins. Please press *3 at any time on your telephone keypad to be connected with AARP staff. Gil, who do we have on the line?

[00:56:09] Gil Cabrera: Well, Neil, now with us on the line, is Jean from Missouri.

[00:56:15] Neil Wertheimer: Hi, Jean from Missouri. Glad you're with us. What would you like to ask?

[00:56:21] Jean: Good afternoon. Thank for taking my questions. I'm 83, and I still work part-time. I have a couple questions primarily for Suze, I think. I always appreciate her comments and listen to her program from time to time. So first of all, reverse mortgages. What is her opinion, and when should a person consider that? And the other was a question about now that they have expanded the laws concerning traditional IRAs to where folks 70 and older who are required to take minimum distributions can still make contributions up to their earned income or $7,000, whichever's greater. What would be her take on doing that?

[00:57:16] Suze Orman: Boy, you know, Renee, or Jean, sorry, I would need know more about you in terms of the second part of your question. In terms of reverse mortgages. Honestly, I've never really been a fan of them, and I really was not a fan of them a few years ago when interest rates were so low, because your reverse mortgage payment will be based on obviously your age as well as the interest rates at the time and what your house is worth. And most people do reverse mortgages because they want to stay in their home, and they don't have enough money to stay in their home. And I'm somebody who always advises, if that's true, then let's sell your home, because eventually, maybe you can't stay in that home anyway. Because maybe it has a second set stairs in it, and you can't walk stairs or whatever it may be. So as you get older, I'm a true advocate in making sure that you're living in a situation where it's all on one floor. You know that you have money for aides to take care of you or that you are thinking about that, because one of the largest expenses will be long-term care. And health insurance does not cover long-term care. So I would want you to conserve all the money that you have in your home for you to eventually take care of yourself if you can't stay in that home. But a lot of people love reverse mortgages, but again, they're just a personal thing, they're not my favorite. In terms of yes, the Secure Act and everything that was passed allow you to continue to make contributions to your IRA, my question would be, are you contributing to a Roth IRA or a traditional IRA? And if you are contributing to a Roth IRA, where I know you can get that money and whatever, I don't have a problem with that at all if that's what you want to do. But I would rather make sure that you see that you have at least an eight- to 12-month emergency fund so that when you no longer are working and you need to take money from somewhere, that possibly you're taking it from cash to make up for inflation rather than selling things that happen to be in your retirement account.

[00:59:55] Neil Wertheimer: Jean, I also want to just say, all of our respect and admiration, you're 83 and still working, and clearly you do that because you want to, and you ask a very astute question. It's clear, you know about money and I hope for all of our members to be that way. Gil, I think we have time probably for one more question. Do you have anyone ready to go?

[01:00:19] Gil Cabrera: Absolutely, Sandra is joining us from Texas, Neil.

[01:00:22] Neil Wertheimer: Hi, Sandra. Can you ask your question? We'd love to hear it.

[01:00:27] Sandra: Thank you so much for taking my call. I've really enjoyed listening, but I'm a proactive person. I'm 50, going to be 59, and I believe in not having things act upon me, but acting upon it. In other words, making decisions together as consumers, how can we, together as consumers, bring down inflation and not just wait for it to come down?

[01:01:04] Neil Wertheimer: That's a provocative and interesting question. Suze?

[01:01:09] Suze Orman: Well, Sandra, you can do what the federal, what the Fed chairman wants you to do, and that is, they want you to stop spending. If we all stop spending — I know this sounds counterintuitive — they want the economy to slow down. They want people to stop buying things. They want people, believe it or not, to see the unemployment rate go up. If we all, if that's what happens, then you would see inflation start to come down, according to them. I'm not sure that's true or not, and I don't quite even understand all of how it works, but that is how they want everybody to act right now. So I'll give you what they want because they're the ones in control of this right now.

[01:02:03] Neil Wertheimer: Though we are approaching the Christmas and holiday season, and do you have any guidance about how people should give gifts and be spending on the holiday season given this unique economic moment we're in?

[01:02:19] Suze Orman: Yeah, I would ask all of you to do what my family does, and that's we make gifts for one another, we do not buy things for one another. And if you happen to be in a situation right now where inflation has taken a bite out of your budget, if you've put all 99 ways to save into effect, then you know, that Neil has done for all of you, and you still can't make it, then give yourself a true gift of not feeling guilty because you can't buy something for somebody. Just very quickly, I did studies over the years where I would go up to people with microphones, and I would say, What did you get last year for the holidays? And nobody could ever remember, except those people that got love notes, that somebody baked them cookies. So I think this should be a year where you give love to one another, give respect to one another, but not necessarily buy gifts. And if you have the money to buy gifts and to do everything, rather than giving to people, give it to nonprofits. Give it right now to people who are truly, truly suffering out there. That's what I would tell you would make the perfect holiday season.

[01:03:39] Neil Wertheimer: And I think that's the perfect answer to bring this to a close. This has been an informative and delightful discussion. Thank you so much for the questions, and thanks to both our guests, Jo Ann and Suze, for your information, your insights, your openness. And thank you, our AARP members and volunteers and listeners, for participating in this discussion. AARP, a nonprofit, non-partisan organization with a membership, has been working to promote the health and well-being of older Americans for more than 60 years. All the resources referenced, including a recording of today's Q&A event, can be found at aarp.org/coronavirus on September 23. Go there if your question was not addressed, and you will find the latest updates, as well as information created specifically for older adults and family caregivers. We hope you learned something that can help keep you and your loved ones healthy. Please join us on September 29 for another live coronavirus Q&A event. Thank you all and have a great day. And this concludes our call.

Teleasamblea de AARP - La inflación y su efecto en la vida:

cómo administrar el dinero, reducir costos y evitar el pánico

Participan:

Suze Orman: experta en finanzas personales

Jo Ann Jenkins: directora ejecutiva, AARP

Nancy LeaMond: invitada especial, vicepresidenta ejecutiva y directora de Activismo Legislativo y Compromiso, AARP

Gil Cabrera: organizador, asesor de Relaciones Exteriores, AARP

Neil Wertheimer: moderador, redactor adjunto, AARP Bulletin

Neil Wertheimer: Hola, soy Neil Wertheimer, y quiero darles la bienvenida a esta importante discusión sobre la inflación y su impacto en la seguridad de su jubilación. Antes de comenzar, si desean escuchar esta teleasamblea en español, presionen *0 en el teclado de su teléfono ahora.

[En español]

Neil Wertheimer: AARP, una organización no partidista y sin fines de lucro con membresía, ha estado trabajando para promover la salud y el bienestar de los adultos mayores durante más de 60 años. Desde ese fatídico mes de marzo del 2020 cuando comenzó oficialmente la pandemia de COVID-19, todas nuestras vidas han cambiado de alguna manera, ya sea nuestra salud, nuestro trabajo, nuestros niveles de ansiedad, nuestras conexiones con los demás o simplemente cómo vivimos el día a día. Más recientemente, el impacto ha sido cada vez más financiero, particularmente para los adultos mayores. Y luego vino la inflación. Durante el último año, hemos enfrentado algunas de las tasas de inflación más altas en décadas, con comestibles, precios de gasolina, costos de servicios públicos y en casi todo lo demás que gastamos vemos aumentos de dos dígitos. Al mismo tiempo, muchas de nuestras cuentas de jubilación y otras inversiones cayeron en picada. Y eso nos tiene a todos preocupados. ¿Cómo hacemos frente a los costos crecientes a corto plazo y planificamos a largo plazo? Muchos de nosotros estamos explorando nuevas formas de ahorrar y administrar los gastos. Hoy escucharemos a un impresionante panel de expertos hablar sobre estos temas y otros. También recibiremos una actualización del Capitolio sobre la legislación que afecta a los adultos mayores.

Si ya han participado en alguna de nuestras teleasambleas, saben que es similar a un programa de entrevistas de radio y tienen la oportunidad de hacer preguntas en vivo. Para aquellos de ustedes que nos acompañan por teléfono, si desean hacer una pregunta sobre la inflación y el impacto en la seguridad de su jubilación, presionen *3 en su teléfono para conectarse con un miembro del personal de AARP que anotará su nombre y su pregunta y los colocará en una cola para hacer la pregunta en vivo. Si participan por Facebook o YouTube, pueden publicar sus preguntas en los comentarios.

Hola, soy Neil Wertheimer, redactor adjunto de AARP Publications y, durante seis años consecutivos, coeditor de la edición 99 excelentes maneras de ahorrar de AARP Bulletin. Quiero darles la bienvenida a esta importante discusión sobre la inflación y el impacto en la seguridad de su jubilación. Estaremos hablando con expertos y tomando sus preguntas en vivo. Para hacer preguntas, presionen *3 y, si participan por Facebook o YouTube, pueden publicar su pregunta en los comentarios. También nos acompañará mi colega de AARP, Gil Cabrera, quien ayudará a facilitar sus llamadas. Este evento está siendo grabado y podrán acceder a la grabación en aarp.org/elcoronavirus 24 horas después de que terminemos. Nuevamente, para hacer su pregunta, presionen *3 en cualquier momento en el teclado de su teléfono para conectarse con el personal de AARP. O si participan por Facebook o YouTube, dejen su pregunta en los comentarios.

Ahora, me gustaría dar la bienvenida a nuestros invitados. Suze Orman es una reconocida experta en finanzas personales y autora de éxitos de ventas del New York Times. Actualmente tiene más de 25 millones de libros de finanzas personales en circulación, incluido el éxito de ventas recientemente publicado, The Ultimate Retirement Guide for 50+. Es la presentadora del popular pódcast Women and Money de Suze Orman y es cofundadora de Secure Save, una herramienta para ayudar a las personas a ahorrar para las emergencias de la vida. Jo Ann Jenkins ha dirigido AARP, la organización no partidista sin fines de lucro que permite a las personas jubiladas elegir cómo vivir a medida que envejecen, como directora ejecutiva desde el 2014. AARP lidera los esfuerzos para preservar el Seguro Social y promover los ahorros para la jubilación a fin de ayudar a todos a lograr una seguridad financiera de por vida. Bienvenidas, ambas. Solo un recordatorio, para hacer una pregunta, presionen *3 en el teclado de su teléfono o pueden dejarla en la sección de comentarios en Facebook o YouTube. Suze, comencemos de lleno.

Suze Orman: Hagámoslo, Neil.

Neil Wertheimer: Es tan agradable estar con usted, Suze. Todo cuesta más ahora. Todos sabemos eso. ¿Ve alguna buena noticia en el horizonte para las personas cuyo presupuesto está siendo borrado por la inflación?

Suze Orman: Tengo que decirle que sí. Cuando tenemos una inflación tan alta, lo que ve que hacen los federales ahora es que están aumentando la tasa de fondos federales, lo que aumenta las tasas de interés para todos. Entonces, debido a que la inflación es tan alta, en primer lugar, todos ustedes notarán que el próximo año su cheque del Seguro Social aumentará probablemente en un 8 o 9%, por ahí. Por lo tanto, obtendrán más dinero debido a la inflación al mismo tiempo que las tasas de interés están aumentando. Para aquellos de ustedes que quieren mantener su dinero sano y salvo, tienen miedo del mercado de valores, finalmente, pueden obtener una tasa de interés decente ahora en certificados de depósito. Pueden comenzar a obtener una tasa de interés mejor que la que se obtenía hace un año en las cuentas de ahorro. Y los bonos del Tesoro en este momento están ofreciendo 3.5, 4%. Así que hay una forma de obtener más ingresos con el dinero que pueda tener y que luego ayude a pagar las cosas que están costando más. Esa es la buena noticia, si es que hay alguna buena noticia.

Neil Wertheimer: Suze, en este momento, están estos bonos de ahorro protegidos contra la inflación, los bonos serie I y sus tasas son increíbles. No mucha gente sabe acerca de ellos. ¿Qué son? ¿Y los recomiendas?

Suze Orman: Sí, durante el último año más o menos, porque la inflación realmente comenzó, Neil, hace más de un año. El Gobierno emite algo llamado bono serie I, y la "I" significa inflación. Y puede comprarlos con tan solo $25 o hasta un máximo de $10,000 por persona. Y actualmente, le están dando una tasa de interés del 9.62%. Ahora esa tasa de interés es realmente por 6 meses. Entonces, en realidad, obtiene 4.81% porque el interés se reinicia cada 1 de mayo y 1 de noviembre. Pero les digo a todos que vayan a treasurydirect.gov porque estos están, nuevamente, garantizados por la autoridad del Gobierno de Estados Unidos, están libres de impuestos estatales y no pagan ningún impuesto sobre la renta mientras su dinero esté allí. Donde hoy se puede obtener una tasa de interés como acabo de decir. El problema es, sin embargo, que deben dejar su dinero allí durante al menos un año, no pueden tocarlo. Y de los años dos a cinco, si retiran cualquier cantidad de dinero, hay una multa de interés de tres meses. Pero muy rápidamente, si tuviera que hacerlo ahora mismo, durante los próximos 6 meses, obtendría un 4.81%, en realidad la mitad de 9.62 porque es solo durante 6 meses. Y digamos que el 1 de noviembre, salen con una nueva tasa del 7%. Entonces, después de que terminen los 6 meses, durante los próximos 6 meses obtendrán el 3.5%. E incluso si salieran después de un año con una multa de interés de tres meses, obtendrían un 6.50%, o por ahí. ¿Dónde más van a conseguir eso? Por lo tanto, es algo que todas las personas deben verificar y todos deben hacerlo antes del 1 de noviembre, que las tasas de interés cambiarán absolutamente nuevamente.

Neil Wertheimer: Es un retorno sorprendentemente bueno de su inversión dada la volatilidad de las acciones. Así que gracias por eso. Y ahora, Jo Ann, pasemos a usted. ¿Qué ha estado escuchando AARP de sus socios? ¿Cómo se sienten los adultos mayores acerca de la economía en este momento?

Jo Ann Jenkins: Neil, escucho a diario a nuestros socios hablar sobre las dudas y la confusión que enfrentan debido al impacto de la COVID-19 y la inflación en la vida personal y financiera. Ya sabe, la pandemia ha impactado financieramente a las personas de manera muy diferente. Pero en este momento, todos sienten el impacto de la inflación y los problemas de la cadena de suministro. Estamos pagando más por nuestros comestibles y este verano vimos los precios de gasolina más altos en todo EE.UU. AARP realizó recientemente una encuesta de tendencias financieras de adultos mayores de 30 años y se descubrió que el 78% están preocupados porque los precios aumentan más rápido que sus ingresos. Y esto incluye al 77% de los adultos mayores de 50 años, y casi la mitad han recortado gastos básicos como comestibles, cuidado personal y transporte en los últimos 12 meses debido a la inflación. Entonces, para muchos, la pandemia también ha alterado los planes y las oportunidades de jubilación. Algunos necesitaban echar mano de sus ahorros para cubrir un vacío en el empleo, mientras que otros decidieron jubilarse antes de lo que habían planeado. Y ahora que los precios están subiendo y el mercado de valores está más bajo, escuchamos a los adultos mayores que están retrasando su jubilación. Ya sabe, una encuesta de AARP de mayo demuestra que el 42% de los adultos de 50 años o más han vuelto a trabajar durante la jubilación por motivos económicos o esperan volver a trabajar durante la jubilación por motivos económicos. Y como muchas otras áreas, las mujeres mayores están especialmente preocupadas por la economía. Nuestra investigación demuestra que una gran mayoría de las mujeres de 50 años o más están profundamente preocupadas por tener suficiente dinero para mantenerse al día con los precios en aumento. Y, ya sabe, este también es un año electoral. Y hemos estado hablando con votantes mayores sobre qué temas les importan más. Una y otra vez, nos dicen que los problemas de bolsillo están en la parte superior de su lista de preocupaciones. Les preocupa si sus ingresos pueden mantenerse al día con los costos crecientes. Los votantes de 50 años o más son uno de los bloques de votación más grandes y confiables. Y los candidatos harían bien en mantener sus preocupaciones en mente a medida que nos acercamos más y más al día de las elecciones.

Neil Wertheimer: Suze, como acaba de compartir Jo Ann, las personas están preocupadas, nos dicen repetidamente que sigamos un plan. Pero la forma en que gastamos y ahorramos está muy ligada a nuestras emociones. Y en este momento, los adultos mayores están ansiosos por sobrevivir a sus ahorros y están preocupados por la volatilidad del mercado de valores. Muchos están reevaluando sus planes. ¿Cuáles son los riesgos de hacer cambios en este momento?

Suze Orman: Bueno, depende de dónde se encuentre uno dentro de esta etapa de jubilación. Las personas que tienen 50 años, obviamente, muchos de ustedes aún no están jubilados. Muchos de ustedes todavía están trabajando y todavía están contribuyendo a sus planes de jubilación, ya sea en Roth IRA, IRA o un plan patrocinado por el empleador, y están viendo caer el mercado. Y normalmente ponen todos los meses, no cambien ese plan. A medida que bajan los mercados, los dólares que están invirtiendo compran más acciones. Eventualmente, ya sea en un año, dos o tres a partir de ahora, los mercados volverán a subir y eso estará allí para ustedes cuando se jubilen. Así que uno de los errores más grandes que pueden cometer, si aún están aportando a un plan de retiro y les faltan por lo menos 5 o 10 años para jubilarse, no cambien de plan, no dejen de invertir. Personalmente, les diría que es mucho mejor invertir en un plan de jubilación Roth que en un plan de jubilación tradicional que es previo a impuestos por muchas, muchas razones, especialmente más adelante en la vida cuando uno se jubile. Para los que ya están jubilados, posiblemente tienen dinero en la bolsa y tienen miedo porque sus ingresos no están a la altura de lo que necesitan, yo les pediría que miren todo en lo que están invirtiendo. Porque como estos mercados han bajado, ¿está invirtiendo en acciones, por ejemplo, que les están pagando un buen dividendo para darles algo de dinero extra? ¿O están invirtiendo en fondos mutuos que no les están pagando dividendos o en acciones que no les están pagando dividendos? Entonces, en esa situación, Neil, lo que diría es: miren lo que tienen y posiblemente cambien su plan para que su dinero genere más ingresos para ustedes. Incluso si están en un plan de jubilación, en este punto, no hay nada de malo en buscar bonos dentro de su plan de jubilación para generar más ingresos. Y si se hace correctamente, eventualmente, cuando las tasas de interés vuelvan a bajar, el valor de esos bonos subirá. Hace un año o dos, hubiera dicho que se mantuvieran alejados de los bonos, que salieran de los bonos, que salieran de los bonos. Ahora quizás quieran ver los bonos como una inversión que brinda ingresos además de seguridad.

Neil Wertheimer: Suze, muy rápidamente, mencionó las cuentas IRA Roth, escribimos mucho sobre ellas en el Boletín. Mucha gente no sabe lo que son. ¿Puede definirlos rápidamente y dejar que la gente entienda sus beneficios?

Suze Orman: Sí. Una cuenta de jubilación Roth, ya sea una Roth 401(k), 403(b) o TSP, si es con su empleador, o una cuenta IRA Roth que uno hace por su cuenta, es simplemente una cuenta de jubilación que financian con dinero sobre el que ya han pagado impuestos. Debido a que uno ya pagó impuestos sobre él, se queda allí y crece y crece y crece. Y más adelante en la vida, cuando van a sacar dinero, estará libre de impuestos. Lo bueno de una cuenta IRA Roth es que cualquier dinero que depositaron originalmente lo pueden retirar en cualquier momento sin impuestos ni multas, independientemente de cuánto tiempo haya estado allí el dinero y de su edad. Entonces, en momentos como este, si tenían dinero que habían puesto en una cuenta IRA Roth, año tras año, año tras año que uno mismo contribuyó, y necesitaban retirar 2 o $3,000, podrían hacerlo sin impuestos ni multas porque proviene del dinero que uno invirtió. Si uno tenía una cuenta de jubilación tradicional, lo que significa que se financia con dólares antes de impuestos, por lo cual uno obtiene una deducción de impuestos, no puede tocar ese dinero antes de la edad de 59.5 años en la mayoría de las circunstancias, o si lo toca, no solo habrá una multa del 10%, sino que también deberá pagar impuestos ordinarios sobre la renta. Indiscutiblemente, por muchas razones, las cuentas de jubilación Roth son mucho mejores porque más adelante en la vida, cuando sacan dinero de una cuenta de jubilación Roth, no cuenta contra los ingresos para las primas del Seguro Social y Medicare B. Es importante para todos. Piénsenlo.

Neil Wertheimer: Gracias, Suze. Me alegra que lo haya explicado. Ahora es el momento de abordar sus preguntas con Suze Orman y Jo Ann Jenkins. Nuevamente, presionen *3 en cualquier momento en el teclado de su teléfono para conectarse con el personal de AARP y compartir su pregunta. Y si desean escuchar en español, presionen *0 en el teclado de su teléfono ahora.

[En español]

Neil Wertheimer: Ahora quisiera traer a mi colega de AARP, Gil Cabrera, para ayudar a facilitar sus llamadas. Bienvenido Gil.

Gil Cabrera: Gracias, Neil. Estoy muy feliz de estar aquí para esta conversación tan importante.

Neil Wertheimer: Entonces, Gil, tomemos nuestra primera pregunta.

Gil Cabrera: Absolutamente, Neil. Nuestra primera pregunta proviene de Míchigan. Sherry está con nosotros en vivo.

Neil Wertheimer: Hola, Sherry en Míchigan. Adelante, haga su pregunta, por favor.

Sherry: Hola. Sí, gracias por aceptar mi pregunta. Tengo 72 años y estoy jubilada. Y tengo un 401(k) que ha estado perdiendo dinero con lo que ha estado haciendo el mercado de valores. Y solo me quedo, ya sabe, dicen que me quede ahí. Ya sabe, si se retira, está asegurando sus pérdidas. Y cada vez sigo pensando, bueno, ¿debería mover parte de eso a CD de tasa fija dado que las tasas son más altas? Pero luego, de repente, mejora el mercado, y haré una buena cantidad de cambio nuevamente, y digo: "Está bien, le tomaría 10 años ganar esa cantidad de dinero". Entonces, estoy un poco confundida sobre qué hacer. Y sigo preguntándome si cuanto más nos acerquemos a las elecciones intermedias, eso será una ventaja, o puede suceder que eso empeore aún más la situación.

Neil Wertheimer: Suze, creo que esa es una pregunta para usted.

Suze Orman: Muy bien. Entonces, Sherry, no hay forma de saber si las elecciones ayudarán a los mercados o no. Lo que seguirá perjudicando el mercado es que mientras la inflación sea desenfrenada, la inflación perjudicará al mercado. Y mientras la inflación sea alta, los federales seguirán subiendo las tasas de interés. Cuanto más aumenten las tasas de interés, más perjudicará al mercado de valores en general. Más ayuda, sin embargo, a los bonos del Tesoro, CD y cuentas de ahorro. El objetivo del dinero, Sherry, es que esté segura. Y la esperanza no es un plan financiero. Entonces, si se siente insegura, la verdad del asunto es tal vez ver lo que posee y decir: "¿Sabe qué? Este dinero, quiero mantenerlo sano y salvo". Debido también a que tiene 72 años, lo que significa que para el 1 de abril del próximo año, debe comenzar a recibir las distribuciones mínimas requeridas. Entonces, ¿quiere tomar dinero de las distribuciones de acciones que continúan bajando? Por lo tanto, no creo que sea una mala idea tomar parte de su dinero si el 100% está en acciones en este momento, no creo que sea una mala idea tomar algo y cambiarlo por bonos o certificados de depósito. Y de ahí es de donde obtendrá sus distribuciones mínimas requeridas.

Neil Wertheimer: Suze, ¿cuál cree que es una buena proporción para alguien de alrededor de 70 años que depende de sus ingresos de jubilación o de sus inversiones entre el mercado de valores y el mercado de bonos? ¿Es 60-40?

Suze Orman: Bueno, ya sabe, depende de su situación individual. Sé, Neil, que muchas veces la gente dice: "A esta edad debería tener tanto en bonos, tanto en acciones". Pero la verdad del asunto es, en mi pódcast hace un año y medio, tenía a todos alejados de los bonos. Y aconsejé a todos no tener bonos, sin importar la edad porque a medida que suben las tasas de interés, el valor de los bonos baja, especialmente los fondos de bonos. Entonces, más que asignar de acuerdo con su edad, les diría que asignen de acuerdo con lo que está sucediendo en la economía para aprovecharlo. Personalmente creo que, esta es mi opinión personal, van a ser uno o dos años difíciles para el mercado de valores. Solo creo eso. Así que creo que las personas deberían saber qué pueden permitirse perder y qué no.

Neil Wertheimer: Gil, ¿podemos atender la llamada de otra persona y responder otra pregunta?

Gil Cabrera: Absolutamente, Neil. Tenemos a Mike de Indiana con una deuda.

Neil Wertheimer: Hola, Mike. Me alegro de que haya llamado. Gracias por hacerlo. ¿Puede hacer su pregunta? Nos gustaría escucharla.

Mike: Sí, señor. Mi situación es que... Debido a las altas facturas médicas, básicamente perdimos todo menos $100,000 de nuestra jubilación antes de cumplir 65 años. Mi esposa tiene demencia de Parkinson, yo soy su cuidador. Nuestra casa y nuestro auto son gratis, están completamente pagados, no tenemos deudas de tarjetas de crédito, no tenemos otras deudas. Y necesito... Aumentar mi flujo de ingresos. Pero tengo que quedarme en casa para cuidar a mi esposa y no sé qué hacer.

Neil Wertheimer: Voy a pedir dividir esto. Jo Ann, ¿quiere hablar un poco sobre el impacto de los costos médicos en las personas mayores? Y luego le pediremos a Suze cualquier consejo que tenga.

Jo Ann Jenkins: Bueno, absolutamente. Sabemos que los costos médicos son uno de los mayores problemas que enfrentan, en particular, los adultos mayores. Si, como en su caso, la enfermedad de su esposa realmente devasta su resiliencia financiera con sus finanzas personales, hemos transitado un camino para tratar que el Congreso brinde algún alivio en términos del alto costo de los gastos médicos y teniendo en cuenta los costos de bolsillo, para personas mayores a $2,000 al año para los que tienen Medicare. Pero solo sabemos que tenemos que brindar algo de alivio a las decenas de millones de personas en todo el país que... Una enfermedad grave como esta, deberían hacerse cargo económicamente. Y por eso sabemos lo importante que es para nosotros poder administrar el dinero que tenemos, sabiamente. Así que le pasaré la posta a Suze.

Suze Orman: Bueno Mike... En primer lugar, mi corazón está con usted. ¿Y está sano, Mike? No sé si todavía está en línea, así que solo responderé. Es en situaciones como esta, una de las cosas que podría considerar, y de nuevo, no sé cuál es su situación, no sé cuánto capital tiene realmente en su casa. No sé si tiene sentido en este momento que considere vender la casa que tiene y tal vez tomar dinero e ir a un centro de vida asistida con su esposa para que también pueda tener algo de alivio. Porque si le pasa algo Mike, ¿quién cuida a su mujer? Así que tiene que haber otra persona allí, que también pueda ayudar. O si sale y vuelve a trabajar, y trae a alguien, posiblemente por unos pocos dólares la hora, sea lo que sea, para cuidarla mientras está trabajando. No es fácil. Y no tengo la solución para usted sin poder sentarnos y fijarnos todo lo que tiene. Pero con el sector inmobiliario aún siendo muy alto, en términos de que las personas todavía obtienen los precios que quieren obtener. Y no estoy segura de que eso vaya a continuar siendo así. Estas son todas las alternativas para que las vea. Además, solo tengo que decir esto, Mike, no sé si tiene hijos o si tiene otros miembros de la familia, pero a veces los padres sienten que deben hacerlo todo solos. No hay nada de malo en pedir ayuda a los hijos. Llega un momento en que los hijos necesitan fortalecerse y ayudar a sus padres, como sus padres ayudaron a sus hijos todos esos años. Así que realmente creo en hacer de las finanzas un asunto familiar si es posible, e involucrar a todos para ayudar a resolver esta situación.

Neil Wertheimer: Gracias. Gracias a las dos. Gil, nos gustaría traer a una persona más. ¿Puede invitar a alguien con una pregunta?

Gil Cabrera: Absolutamente, con gusto. Tenemos a Judith de Indiana para usted, Neil.

Neil Wertheimer: Hola, Judith. Gracias por estar con nosotros. ¿Qué tiene en mente?

Judith: Bueno, mi pregunta es sobre el aumento del alquiler que ha ocurrido desde el inicio de la pandemia. Y quería saber si los costos alguna vez bajarán.

Neil Wertheimer: ¿Qué opina, Suze?

Suze Orman: No creo que baje. Lamento mucho decirlo, a menos que se apruebe alguna legislación que diga: "La gente tiene que dejar de estafarlos a todos". Y eso es exactamente lo que está pasando. Siento mucho decirlo, Judith. La razón por la que no creo que baje es que el inventario de viviendas sigue siendo muy bajo. Y muchas de las personas y las empresas que estaban construyendo casas han dejado de construirlas por alguna razón, han reducido eso, lo que hace que el inventario se mantenga bajo, lo que hace que las personas que son dueñas de casas y las alquilan, y uno no tiene opción, pueden cobrar lo que quieran a menos que sea alquiler controlado. Eso sería. Así que lo que yo... Sabe, es difícil. Simplemente creo que es atroz lo que valen los alquileres hoy y, en realidad, no hay absolutamente ninguna razón para que sean tan altos. Entonces, Judith, o tiene que encontrar otro lugar, conseguir compañeros de cuarto, lo crea o no, descubrir otras cosas que posiblemente pueda hacer. ¿Puede mudarse a un vecindario diferente donde los alquileres no sean tan altos? Es muy difícil y desearía tener una varita mágica para resolverlo por usted. Pero lo siento, no tengo. Esa es la realidad de la situación.

Neil Wertheimer: Entonces, como recordatorio, para hacer una pregunta, presionen *3. Pronto responderemos más de sus preguntas en vivo. Además de compartir información confiable y organizar eventos como este, AARP aboga continuamente en todos los niveles del Gobierno y lucha en nombre de los adultos mayores. Para darles una actualización rápida, quiero traer a la vicepresidenta ejecutiva y directora de Activismo Legislativo y Compromiso de AARP, Nancy LeaMond. Bienvenida, Nancy.

Nancy LeaMond: Feliz de estar aquí, Neil.

Neil Wertheimer: Quiero comenzar con las reformas históricas de medicamentos recetados del mes pasado, aprobadas por la Cámara y el Senado y convertidas en ley. Voy a pedirle a Jo Ann que hable más sobre esto en un momento. Pero sería negligente si no la felicitara en nombre de todos nosotros y de sus equipos, por la aprobación de la legislación.

Nancy LeaMond: Bueno, muchas gracias. La reforma de los precios de los medicamentos recetados es una gran victoria para los adultos mayores. Fueron literalmente años de trabajo. Después de décadas de pedirle al Congreso que haga que los medicamentos recetados sean más asequibles, AARP ganó la lucha para permitir que Medicare negocie precios de medicamentos más bajos y otras políticas que ahorrarán dinero a las personas mayores en sus medicamentos. Jo Ann explicará los detalles y por qué es tan importante. Pero quiero agradecer a todos los que firmaron nuestras peticiones, enviaron correos electrónicos y llamaron a los miembros del Congreso, muchos de ustedes están en esta llamada e impulsaron este éxito. No podríamos haberlo hecho sin ustedes.

Neil Wertheimer: Entonces, ¿cuáles son algunas otras formas en que AARP está luchando para ayudar a los adultos mayores, especialmente a aquellos que todavía están en el lugar de trabajo?

Nancy LeaMond: Bueno, sabemos que en estos días es más difícil que nunca llegar a fin de mes. Todos ustedes han estado hablando de eso en esta llamada. Ante todo, AARP está luchando para proteger el Seguro Social y Medicare, que son la base de una jubilación segura. Estamos abogando por programas estatales de trabajo y ahorro que brinden una manera fácil para que los trabajadores ahorren para la jubilación. También abogamos por apoyar a los cuidadores familiares que trabajan, impulsando una legislación que les permita tomarse un tiempo libre para cuidar a un ser querido sin temor a perder su salario o su trabajo. Y estamos luchando para asegurarnos de que la licencia por enfermedad remunerada esté disponible para los trabajadores en todo momento, no solo durante las emergencias de salud pública.

Neil Wertheimer: Entonces, Nancy, estamos entrando en la temporada electoral. ¿Cuál es el enfoque de AARP ahora que vienen las elecciones de noviembre?

Nancy LeaMond: Primero, es importante recordar lo que no hacemos. AARP no apoya a los candidatos ni les da dinero. Dicho esto, estamos trabajando arduamente para asegurarnos de que todos los candidatos presten atención a los adultos mayores y aborden los problemas que son importantes para ellos. Como ha sido en todas las elecciones recientes, esperamos que los votantes de 50 años o más constituyan la mayoría del electorado en noviembre. También nos estamos asegurando de que nuestros socios y el electorado en general sepan cómo, dónde y cuándo votar. Muchos estados han cambiado sus leyes electorales desde la última elección. Así que estamos trabajando mucho en la educación y divulgación para explicar qué es diferente y qué permanece igual. Además de las páginas electorales en aarp.org, la edición de este mes de AARP Bulletin, como bien sabe, Neil, detalla cómo puede votar en su estado.

Neil Wertheimer: Sí, publicamos 53 guías para votantes para cada estado. Así que espero que todos las usen y espero que sean útiles. AARP ha realizado muchas encuestas preelectorales en estados clave y encuestas nacionales de mujeres votantes de 50 años o más. ¿Qué nos puede decir sobre los resultados?

Nancy LeaMond: Bueno, en pocas palabras, las elecciones serán muy reñidas en los estados clave y los votantes mayores, especialmente las mujeres mayores, serán fundamentales para el resultado. Nuestra investigación demuestra que uno de cada tres votantes probables en estados clave son mujeres de 50 años o más, y son el bloque más grande de votantes indecisos. Cuando se trata de problemas, la inflación y la economía son ciertamente lo más importante. Pero también estamos viendo surgir muchos otros problemas, incluida la división en este país y la protección del Seguro Social y Medicare. No hace falta decir que cada voto cuenta.

Neil Wertheimer: Nancy, gracias por estar aquí hoy. Si nuestros oyentes quieren estar al tanto de las noticias de promoción de AARP, ¿cómo pueden encontrar las últimas actualizaciones?

Nancy LeaMond: Alentamos a todos a conectarse en línea y buscar AARP Fighting for You. Eso los llevará a un resumen diario de todas nuestras últimas noticias de promoción sobre nuestro trabajo en el Congreso y en todo el país. Y también puede buscar AARP Fierce Defender y encontrarán una gran cantidad de actualizaciones y recursos para ahorrar dinero.

Neil Wertheimer: Gracias, Nancy. Y ahora es momento de abordar más de sus preguntas con Suze Orman y Jo Ann Jenkins. Presionen *3 en cualquier momento en el teclado de su teléfono para conectarse con el personal de AARP. Gil, ¿a quién tenemos en la línea?

Gil Cabrera: Bueno, Neil, nos llega una pregunta de Facebook, la red social, que me pareció bastante interesante. La pregunta es de Karen Guzman. Ella dice: "Proporcionaron orientación para aquellos que se jubilarán en 5 a 10 años. ¿Qué consejo tienen para las personas que pueden jubilarse a corto plazo, como en los próximos 1 a 3 o 5 años?"

Neil Wertheimer: Suze, ¿quiere responder eso?

Suze Orman: Bueno, lo que estaba diciendo cuando dije de 5 a 10 años es que esos... Si tiene el tiempo de su lado, de 5 a 10 años, puede soportar este mercado a la baja. Sin embargo, si tiene de 1 a 3 años hasta que se jubile, debe observar su cuenta de jubilación. Y debería observarla seriamente en este momento y decidir, ¿hay suficiente dinero allí en este momento para que pueda jubilarme? Porque en los próximos 1 a 3 años, como dije, y nuevamente, esta es solo mi opinión personal, podría estar 1000% equivocada, creo que vamos a ver más bien una disminución en el mercado de valores que un aumento durante los próximos 1 o 2 años. Así que ahora es cuando mira lo que tiene y decide qué quiere mantener a salvo y qué quiere mantener invertido. Para aquellos de ustedes que se van a jubilar en 1 a 3 años, y son dueños de una casa que todavía tiene una hipoteca y se van a quedar en esa casa, mi consejo para ustedes sería, en lugar de poner más dinero en el mercado de valores a través de planes de jubilación, que tomen ese dinero, y si pudiera pagar su casa en su totalidad para cuando se jubile, entonces realmente estará bien, porque su mayor gasto es la hipoteca de su casa o el pago del alquiler. Pero no hay nada que pueda hacer con respecto al pago del alquiler. Pero si pudiera deshacerse de la hipoteca de su casa, le diría, ahí es donde pondría todo mi dinero extra o mi dinero de inversión, si tuviera alguno. Entonces, querrá ponerse en una posición, si se jubila en 1 a 3 años, donde los préstamos para automóviles estén saldados, no tenga deudas de tarjetas de crédito, no tenga una línea de crédito con garantía hipotecaria querrá asegurarse de estar lo más libre de deudas posible. Entonces, si puede, si tiene dinero extra, en mi opinión, haría eso en lugar de otra cosa.

Neil Wertheimer: Suze, quiero darle un seguimiento a lo que a menudo escribimos en el boletín y creemos que a veces complicamos demasiado la planificación de la jubilación en el sentido de que lo que realmente importa es una ecuación, que es si tiene suficientes ingresos mensuales para cubrir todos sus costos. ¿Hay alguna manera de calcular eso realmente? Quiero decir, alguien que planea jubilarse, ¿debería enfocarse en entender realmente cuántos ingresos va a tener y cuánto va a gastar?

Suze Orman: Sí, pero el problema, Neil, es que no sabe cuánto van a gastar si se agrega la inflación a esa ecuación. Entonces, muchas veces lo que la gente hace es mirar lo que está gastando ahora. Imagínese si hubiera hecho eso hace uno o dos años, y la inflación fuera relativamente nula, y tuviera su Seguro Social, tal vez tuviera un cheque de pensión, tal vez le entra algo de alquiler, quién sabe, y sabría que sus ingresos cubrirían sus gastos. Pero ahora sus gastos han aumentado dramáticamente debido a la inflación. Entonces, si yo fuera usted y estuviera haciendo ese ejercicio porque ese es el ejercicio correcto que uno debería hacer, entonces lo que estaría haciendo es, si supiera cuáles son mis gastos hoy, simplemente los aumentaría y supondría que serán más caros en el futuro porque tal vez necesite un trabajador de atención médica domiciliaria o alguien que me cuide. O si pierde a un cónyuge, tal vez necesite contratar a alguien para arreglar la luz o hacer cosas por el estilo. Solo asegúrense de que sus gastos sean realistas y aumenten cada año, averigüen cuánto tiempo sus ingresos cubrirán esos gastos. Pero esencialmente, así es como lo resolvería.

Neil Wertheimer: Gracias, Suze. Gil, ¿podemos tomar otra pregunta?

Gil Cabrera: Con gusto Neil, tenemos a Earl de Nueva Jersey para el panel.

Neil Wertheimer: Earl, ¿cómo está? Un placer tenerlo aquí. ¿Por qué no hace su pregunta? Queremos escucharlo.

Earl: Mi pregunta es esta. ¿Estará siempre el Seguro Social disponible para nosotros? Hubo un montón de políticos que querían deshacerse del Seguro Social. ¿Pueden hacerlo?

Neil Wertheimer: Jo Ann, ¿qué opina?

Jo Ann Jenkins: Bueno, ciertamente espero que no. Y, ya sabe, creemos que el Seguro Social estará siempre. Obviamente, es necesario que se realicen cambios para asegurarse de que esté allí en la perpetuidad. Pero hay una serie de proyectos de ley en consideración que reducirían el Seguro Social en ciertas formas y de ciertas maneras. AARP está allí abogando para asegurarse de que eso no suceda. El Seguro Social es algo en lo que todos hemos invertido en el transcurso de 40 trimestres a lo largo de nuestra vida. El pueblo estadounidense contribuyó a un sistema que el Gobierno dijo que estaría ahí para nosotros. Y ciertamente esperamos y haremos que el Congreso rinda cuentas para asegurarnos de que el Seguro Social esté allí, no solo para nosotros, sino también para las generaciones futuras y nuestros nietos por venir.

Neil Wertheimer: Sí, agregaré a eso que recientemente hicimos una historia extensa sobre el futuro del Seguro Social. Y la encuesta demostró que alrededor del 90% de las personas en el país están fuertemente a favor del programa. Y así trasciende verdaderamente la política. Este es un programa fundamental de la vida estadounidense y, por lo tanto, creo que la mayoría de los expertos estarían de acuerdo en que continuará. Jo Ann, ¿qué estaba diciendo?

Jo Ann Jenkins: Bueno, solo iba a decir, en general, los socios de AARP, liberales, conservadores, republicanos, demócratas, rurales, urbanos, todos apoyan el Seguro Social. Entonces, habrá una gran pelea en el Capitolio si alguien trata de tocar el Seguro Social para asegurarse de que no esté allí en el futuro.

Neil Wertheimer: Gil, ¿puede traer otra pregunta?

Gil Cabrera: Absolutamente. Tenemos de Alabama, Linda se une a nosotros, Neil.

Neil Wertheimer: Linda de Alabama, muchas gracias por participar. ¿Qué tiene en mente?

Linda: Gracias por aceptar mi pregunta. De hecho, mi marido se jubila mañana.

Neil Wertheimer: Felicitaciones.

Linda: Muchas gracias. Estamos muy emocionados. Su 401(k) está con su empleador. Ha invertido en acciones y le ha ido muy bien, hasta ahora, es un poco inestable. Pero quería preguntar, y sé que la situación de todos es diferente, ya sea que se transfiera o no a otro plan calificado. Yo pensaría en dejarlo donde está porque, por supuesto, sus acciones están bajas y siento que, ya sabe, hemos hecho los números. Podemos aguantar y esperar a que el mercado vuelva a subir. Y luego, en ese punto, no sé, pero nos quedaríamos. Tendría que pensar eso cuando lleguemos a ese puente. Pero quería saber su opinión sobre eso.

Neil Wertheimer: Esa es una gran pregunta, Linda. Suze, le voy a preguntar en dos partes. Una es, ¿debería Linda dejar su 401(k) actual o transferirlo? Y en segundo lugar, si realmente está buscando un marco de tiempo más a largo plazo, ¿debería dejarlo en acciones sabiendo que, en general, a lo largo de la historia, las acciones prácticamente se corrigen automáticamente después de una cierta cantidad de años?

Suze Orman: Linda, lo principal que debe entender es que está muy familiarizada con el plan 401(k) donde se encuentra este dinero. Se siente a gusto con eso. Si hiciera una reinversión de IRA con él, podría depender de si está en acciones, o no sé en qué está invertido, pero podría cambiar muchas cosas simplemente transfiriendo lo que tenga a una reinversión IRA y no sufriría ninguna pérdida. Entonces, posiblemente lo que posee podría destinarse a una reinversión de IRA, o incluso si lo retira en efectivo donde, ya sabe, tuviese que hacerlo en efectivo por alguna razón, porque tal vez hay cosas que no puede reinvertir. Si hiciera una reinversión de IRA, podría comprar esencialmente lo mismo. Por lo tanto, esencialmente no perdería dinero al hacer una reinversión de IRA, lo que ganaría es que hay más diversificación dentro de una reinversión de IRA que los pocos fondos mutuos y las acciones de la compañía que pueden estar en su 401 (k). Sin embargo, dicho esto, dado que se siente cómoda allí y es posible que no sepa cómo reinvertir todo ese dinero, debería quedarse donde está, si eso es lo que le hace sentir segura. No tengo ningún problema con eso, ¿verdad? Sin embargo, si desea que se vuelva más sofisticado, obviamente podría hacer una reinversión de IRA y luego tal vez comenzar a convertir algo de dinero en una cuenta IRA Roth y aprovechar el hecho de que el mercado está en baja. Entonces, cuando se convierte a un Roth, no paga tantos impuestos. Estas son todas las cosas que todos necesitan aprender. Y nuevamente, de cierta manera eso es lo que hago en el pódcast Women and Money, es principalmente para que los jubilados hablen sobre este tipo de cosas. Entonces, si siente que tiene tiempo y no va a necesitar este dinero y sabe que está invertido en acciones de buena calidad, está diversificado, lo tiene repartido, sabiendo que no se trata solo de tecnología o lo que sea, y se siente cómoda con eso, no tengo ningún problema con eso.

Neil Wertheimer: Suze, la segunda parte de esa pregunta es que Linda dijo que es posible que no necesite este dinero durante varios años. ¿Está un poco más optimista de permanecer en el mercado de valores en esa situación?

Suze Orman: Sí, eso es lo que acabo de decir, Neil. O tal vez no fui clara en eso, que si ella se siente cómoda, y tiene el tiempo de su lado, y sabe que no necesita tocar este dinero, y ella sabe que está diversificado, no querrá todo este dinero en fondos de pequeña capitalización o todo... Necesita una diversificación total en todos los ámbitos. Y sabe, no presenta ningún problema si se queda exactamente donde está, Linda.

Neil Wertheimer: De acuerdo. Gil, ¿qué tal una pregunta más?

Gil Cabrera: Por supuesto, Neil, tenemos una pregunta de Tommie Hoyt en nuestro chat de YouTube. Ella pregunta: "¿Qué es la criptomoneda? ¿Deberíamos considerar eso como una inversión?"

Neil Wertheimer: Oh, Suze, definitivamente le dejo esa para contestar.

Suze Orman: Tommie, la cosa es así. Puede invertir en criptomonedas si lo desea, pero solo con dinero que pueda permitirse perder. Personalmente, no lo tocaría si esto es dinero y ni siquiera estoy segura de llamarlo una inversión. Creo que en muchos puntos, esto se parece más a los juegos de azar en muchos sentidos, porque la legislación puede cambiar al respecto. Pero si quiere hacerlo, nuevamente, asegúrese de hacerlo solo con dinero que pueda permitirse perder. Y en mi opinión, va a ver las criptomonedas Bitcóin, Ethereum probablemente caer ahora, antes de que las vea subir de nuevo. Entonces, si va a invertir, yo no lo haría todavía.

Neil Wertheimer: Tomemos una más, Gil, por favor.

Gil Cabrera: Absolutamente. Tenemos una pregunta de Joyce en Pensilvania, Neil.

Neil Wertheimer: Está bien. Hola, Joyce. Me alegro mucho de que esté escuchando y tenga una pregunta para nosotros. Pregunte nomás. Joyce, ¿está ahí? Si no, entonces continuemos. Regresaremos a más de sus preguntas en vivo en un momento. Pero antes de hacerlo, hablemos un poco más sobre el Seguro Social y también sobre Medicare. Jo Ann, aquellos que dependen del Seguro Social contarán con un ajuste por costo de vida. Hablamos de eso hace una media hora. Pero, ¿cuáles son las expectativas para el próximo ajuste del COLA?

Jo Ann Jennings: AARP ha pensado durante mucho tiempo en fortalecer el Seguro Social y proteger los beneficios que millones de personas y sus familias han ganado con tanto esfuerzo. El COLA del Seguro Social, que se espera que se anuncie el 13 de octubre, probablemente estará cerca del 8%. Y escuchó a Suze decir 8 a 9% y en realidad comenzará en enero. Este aumento será crucial para los beneficiarios y sus familias en su intento de mantenerse a la vanguardia de los crecientes costos. Los recursos en aarp.org/segurosocial pueden ayudar a maximizar los beneficios, responder preguntas clave y mantenerse actualizado sobre el COLA del Seguro Social. Si uno está a punto de jubilarse, podría considerar esperar un poco más y trabajar un poco más para maximizar sus ingresos del Seguro Social. Los beneficios del Seguro Social aumentan cada año hasta que uno cumple 70 años. Es importante aumentar su beneficio mensual del Seguro Social. Es una fuente de ingresos que continúa mientras uno viva y se ajusta a la inflación. Lo importante es continuar ahorrando si ya se ha estado ahorrando en una cantidad fija. Ciertamente diría que no deben dejar de ahorrar, ya que eso será clave para su resiliencia financiera en el futuro.

Neil Wertheimer: Si tienen una pregunta, como recordatorio, para Suze Orman o Jo Ann Jenkins, presionen *3 en cualquier momento en el teclado de su teléfono para conectarse con el personal de AARP. Jo Ann, AARP participó recientemente en la obtención de esa legislación histórica para reducir los precios de los medicamentos y Nancy se refirió a eso. ¿Cómo ayuda la legislación a los adultos mayores a ahorrar dinero?

Jo Ann Jenkins: AARP luchó arduamente para que el Congreso incluyera múltiples disposiciones para reducir los precios de los medicamentos recetados en la Ley de Reducción de la Inflación. Sabemos que la atención médica es un gasto importante para muchos de nuestros socios. Y esta ley que se aprobó permite que Medicare negocie el precio de ciertos medicamentos. Las compañías farmacéuticas serán penalizadas si suben los precios más rápido que la tasa de inflación. Y decenas de millones en planes de Medicare pronto tendrán un tope anual sobre cuánto pagan de su bolsillo por sus medicamentos. Esta es una victoria histórica. Y no podríamos haberlo hecho sin las decenas de millones de socios de AARP que enviaron correos electrónicos, llamaron y escribieron cartas al Congreso para expresar su conformidad con la aprobación de esta legislación. Y para que lo sepan, esto tomó 8, 9, 10 años de desarrollo. Continuaremos luchando para asegurarnos de que estas leyes se implementen. Y nuevamente, solo ofrezco mi agradecimiento a los socios y también al equipo de defensa dentro de AARP y también a nivel estatal por lograr que se aprobara esta legislación.

Neil Wertheimer: ¿Adónde pueden acudir las personas para obtener más información si quieren saber más sobre lo que pasó y sus implicaciones?

Jo Ann Jenkins: Bueno, ciertamente pueden ir a aarp.org y está en todas partes de nuestro sitio web. Obviamente, incluimos un artículo importante en ATM, el boletín, y habrá artículos de seguimiento adicionales que saldrán también en AARP, la revista. Y con suerte, los socios recibieron mi carta personal que les envié hace aproximadamente 2 semanas, en la que describo realmente lo que se incluyó, sobre la batalla y les agradezco por toda su participación.

Neil Wertheimer: Ahora volvamos a usted, Suze. Es probable que el mercado de la vivienda esté entrando en una recesión después de las guerras de ofertas y los compradores a veces se apoderaron de todo lo que pudieron durante los últimos 2 años. ¿Cómo está el mercado hoy? ¿Es un buen momento para comprar o vender una casa?

Suze Orman: Bueno, es un momento fabuloso para vender una casa porque los precios siguen altos, Neil. Y lo que sucede no es que los precios de los bienes raíces estén bajando, no se están apreciando tan rápido como se estaban apreciando. Así que sigo pensando que si quiere comprar una casa y entiendo muy bien si va a comprar una casa, bueno, debe saber que las tasas de interés van a ser de alrededor del 6, 6.25 %, tal vez incluso más altas, porque eso es lo que están en este momento para una hipoteca de tasa fija de 30 años. Que sigo pensando que podría obtener un buen valor por su casa porque recuerde que cuando compra una casa, obtiene una deducción de impuestos por los pagos de intereses y, eventualmente, lo paga para no estar sujeto a estos pagos de alquiler exorbitantes que todo el mundo está pagando hoy. Pero vender una casa en este momento, es un buen momento para vender una casa. Pero entonces, si vende una casa, ¿dónde va a vivir? ¿Va a tener que comprar otra casa? Y si tiene que comprar otra vivienda, ¿va a tener que financiarla? Porque si va a tener que financiarla, ¿está cambiando una hipoteca del 2.5%, que tal vez sea lo que está pagando ahora por la casa que posee actualmente, por una hipoteca del 6, 6.25 %? ¿Y eso tiene sentido? Así que depende, la verdadera respuesta a su pregunta, Neil, es, ¿cuál es su objetivo final? ¿El objetivo final es comprar una casa, vender una casa y mudarse a otro lugar que tenga? ¿Es para viajar? ¿Es para hacer lo que quiera...? Pero hay que tener en cuenta que la inversión en bienes raíces sigue siendo alta. Y no va a bajar dramáticamente. Es posible que no vuelva a ver, en mi opinión, los aumentos que estaba viendo. Pero no creo que vaya a ver su casa por debajo de lo que la compró.

Neil Wertheimer: Las personas también continúan lidiando con aumentos de dos dígitos en alimentos y energía. Ayer, hubo otra gran subida por parte de la Reserva Federal para frenar el crecimiento y reducir la inflación. Suze, ¿cree que la inflación llegó al tope o habrá más por venir?

Suze Orman: Creo que hay más por venir. Creo que estamos pasando un momento muy, muy difícil. Vivimos en una época en la que estamos en guerra con Ucrania. Vivimos en una época en la que Rusia controla el petróleo que va a Europa. Vivimos en una época en la que cualquier cosa puede pasar. Y solo es la realidad. Por eso, es posible, aunque vimos bajar los precios de la gasolina en las bombas, quién sabe, dependiendo de lo que pase con las relaciones exteriores, ¿puede seguir subiendo? ¿Volveremos a tener problemas de envío o no? Lo único que sabemos con certeza es que las tasas de interés seguirán subiendo porque eso es exactamente lo que dijo ayer el presidente de la Reserva Federal hasta que la inflación baje al 2 o 3%. Continuará, el estado seguirá elevando la tasa de fondos federales. Por eso les digo a todos que esperen un poco, miren lo que está pasando con las tasas de interés de los bonos del Tesoro. ¿No saben que podrían obtener un 4% ahora mismo en una nota del Tesoro a 2 años? Y esa es una gran tasa de interés dado que hace un año, tal vez podría obtener la mitad de un percentil. Así que las tasas de interés van a seguir subiendo. De nuevo, los CD, las cuentas de ahorro y los bonos del Tesoro pueden ser algo que realmente responda a los problemas que tienen en términos de no tener suficientes ingresos. Pero no creo que la inflación haya tocado techo. Creo que, con suerte, la inflación disminuirá. Pero solo el tiempo lo dirá, lo sabremos en breve.

Neil Wertheimer: Suze, voy a hacer una pregunta de seguimiento rápida. ¿Qué papel tiene la frugalidad cotidiana en la lucha a largo plazo por sus propias finanzas? Y pregunté esto porque incluso en el boletín, los medios publican muchos consejos para ahorrar dinero. ¿Es esa una estrategia importante para administrar el dinero en tiempos como estos?

Suze Orman: No son solo momentos como este, Neil, siempre es una estrategia importante. Tengo un dicho, que, primero, necesita estar seguro. Entonces, ¿cuándo compra lo que puede pagar versus lo que necesita? Cuando puede pagar más de lo que necesita. Así que yo y Kathy, mi esposa, siempre hemos vivido por debajo de nuestros medios, pero dentro de nuestras necesidades. El hecho de que tenga dinero no significa que deba gastarlo. Hasta el día de hoy, y yo tengo 71 años, Kathy tiene 70. El hecho de que tengamos dinero no significa que gastemos dinero. Vigilamos con mucho cuidado cada centavo que gastamos, incluso en este momento de nuestra vida en el que obviamente esperaría que sea una mujer extremadamente rica. Eso no significa que no seamos frugales. Entonces, mi consejo para todos ustedes, en este momento sería vivir por debajo de sus posibilidades pero dentro de sus necesidades. ¿Cómo hacer eso? A partir de hoy, háganse la siguiente pregunta cuando vayan a comprar algo: ¿es esto una necesidad o es esto un deseo? Si es un deseo, no lo compren. Si es una necesidad, obviamente, hay que comprarlo. Y, por favor, sientan tanto placer ahorrando como gastando. Esas serían las tres cosas que me gustaría que hicieran.

Neil Wertheimer: Gracias, Suze. Ahora es el momento de abordar más de sus preguntas con Suze Orman y Jo Ann Jenkins. Presionen *3 en cualquier momento en el teclado de su teléfono para conectarse con el personal de AARP. Gil, ¿a quién tenemos en la línea?

Gil Cabrera: Bueno, Neil, ahora con nosotros en la línea está Jean de Misuri.

Neil Wertheimer: Hola, Jean de Misuri. Me alegro de que esté con nosotros. ¿Qué le gustaría preguntar?

Jean: Buenas tardes. Gracias por aceptar mi pregunta. Tengo 83 años y todavía trabajo medio tiempo. Creo que tengo un par de preguntas principalmente para Suze. Siempre agradezco sus comentarios y escucho sus programas de vez en cuando. Entonces, en primer lugar, las hipotecas inversas. ¿Cuál es su opinión y cuándo debería una persona considerar eso? Y la otra pregunta era, ahora que han ampliado las leyes relativas a las cuentas IRA tradicionales para que las personas de 70 años o más que debían recibir distribuciones mínimas aún puedan hacer contribuciones hasta su ingreso del trabajo o $7,000, lo que sea mayor. ¿Cuál sería su opinión al hacer eso?

Suze Orman: Vaya Renee, eso... Jean, lo siento, eso... Necesitaría saber más sobre usted en términos de la segunda parte de su pregunta. En términos de hipotecas inversas, honestamente, nunca he sido fan de ellas. Y realmente no me entusiasmaban hace unos años cuando las tasas de interés eran tan bajas porque el pago de la hipoteca inversa se basará obviamente en la edad, así como en las tasas de interés en ese momento y en el valor de su casa. Y la mayoría de las personas hacen hipotecas inversas porque quieren quedarse en su casa y no tienen suficiente dinero para quedarse en su casa. Y soy alguien que siempre aconseja, si eso es cierto, entonces venda la casa porque eventualmente, tal vez no pueda quedarse en esa casa de todos modos porque tal vez tiene un segundo juego de escaleras y no pueda subir escaleras o lo que sea que pueda ser. Entonces, a medida que envejece, defiendo que uno debe asegurarse de vivir en una situación en la que todo esté en un solo piso. Sabe que tiene dinero para ayudantes, para cuidarse o que está pensando en eso, porque uno de los gastos más grandes será el cuidado a largo plazo. Y el seguro de salud no cubre el cuidado a largo plazo. Así que me gustaría que conserven todo el dinero que tienen invertido en su casa, para que eventualmente puedan cuidar de sí mismos si no pueden quedarse en esa casa. Pero mucha gente ama las hipotecas inversas. Y de nuevo, es solo algo personal, no son mis favoritas. En términos de... Sí, la Ley de Seguridad y todo lo que se aprobó permite continuar haciendo, contribuciones a su IRA. Mi pregunta sería, ¿está contribuyendo a una cuenta IRA Roth o una cuenta IRA tradicional? Y si está contribuyendo a una cuenta IRA Roth donde sé que puede obtener ese dinero, no tengo ningún problema con eso, si eso es lo que quiere hacer. Pero prefiero asegurarme de que vea que tiene al menos un fondo de emergencia de 8 a 12 meses para que cuando ya no esté trabajando y necesite sacar dinero de algún lado, posiblemente lo saque en efectivo para compensar la inflación, en lugar de vender cosas que están en su cuenta de jubilación.

Neil Wertheimer: Jean, también quiero mencionar todo nuestro respeto y admiración, tiene 83 años y sigue trabajando. Y claramente lo hace porque quiere y hace una pregunta muy astuta. Está claro que sabe de dinero y espero que todos nuestros socios sean así. Gil, creo que probablemente tenemos tiempo para una pregunta más. ¿Tiene a alguien listo para salir?

Gil Cabrera: Absolutamente. Sandra se unirá a nosotros desde Texas, Neil.

Neil Wertheimer: Hola, Sandra. ¿Puede hacer su pregunta? Me encantaría escucharla.

Sandra: Muchas gracias por atender mi llamada. He disfrutado mucho escuchando. Pero soy una persona proactiva. Tengo 58 años y voy a cumplir 59. Y creo en no dejar que las cosas actúen sobre mí, sino actuar sobre ellas. En otras palabras, tomando decisiones juntos como consumidores, ¿cómo podemos juntos, como consumidores, bajar la inflación y no esperar a que baje?

Neil Wertheimer: Esa es una pregunta interesante y provocativa. ¿Suze?

Suze Orman: Bueno, Sandra, puede hacer lo que el presidente de la Reserva Federal quiere que haga. Y lo que quiere es que deje de gastar. Si todos dejamos de gastar, sé que esto suena contradictorio, quieren que la economía se desacelere. Quieren que la gente deje de comprar cosas. Quieren que la gente, lo crea o no, vea subir la tasa de desempleo. Si eso sucediera, entonces vería que la inflación comenzaría a bajar, según ellos. No estoy segura de que eso sea cierto o no. Y yo, ya sabe, ni siquiera entiendo completamente cómo funciona. Pero así es como quieren que todos actúen en este momento. Así que le diré lo que ellos quieren porque ellos son los que tienen el control de esto en este momento.

Neil Wertheimer: Sin embargo, nos acercamos a la temporada navideña y festiva, y ¿tiene alguna orientación sobre cómo las personas deberían dar regalos y gastar en la temporada navideña dado este momento económico único en el que nos encontramos?

Suze Orman: Sí. Es... Les pediría a todos que hicieran lo que hace mi familia. Y es que nos hacemos regalos unos a otros, no nos compramos cosas unos a otros. Y si uno se encuentra en una situación en este momento en la que la inflación le ha quitado un buen mordisco a su presupuesto, si uno ha puesto en práctica las 99 excelentes maneras de ahorrar, ya saben, lo que Neil ha hecho por todos ustedes, y todavía no pueden superarlo, entonces hágase el verdadero regalo de no sentirse culpables porque no puede comprar algo para alguien. Muy rápidamente, hice estudios a lo largo de los años en los que me acercaba a las personas con micrófonos y les decía: "¿Qué recibió el año pasado para las fiestas?" y nadie podía recordarlo. Excepto aquellas personas a las que les encantaron las notas, que alguien les horneó galletas. Así que creo que este debería ser un año en el que se den amor unos a otros, se den respeto unos a otros, pero no necesariamente compren regalos. Y si tiene el dinero para comprar regalos y hacer todo, en lugar de dárselo a la gente, dénselo a organizaciones sin fines de lucro, dénselo ahora mismo a las personas que realmente están sufriendo. Eso es lo que les diría que sería la temporada navideña perfecta.

Neil Wertheimer: Y creo que esa es la respuesta perfecta para cerrar esta charla. Esta ha sido una discusión informativa y agradable. Muchas gracias por las preguntas. Y gracias a nuestras dos invitadas, Jo Ann y Suze por su información, su perspicacia, su franqueza. Y gracias a nuestros socios, voluntarios y oyentes de AARP por participar en esta discusión. AARP, una organización no partidista y sin fines de lucro con membresía, ha estado trabajando para promover la salud y el bienestar de los adultos mayores durante más de 60 años. Todos los recursos a los que se hizo referencia, incluida una grabación del evento de preguntas y respuestas de hoy, podrán encontrarse en aarp.org/elcoronavirus el 23 de septiembre. Vayan allí si su pregunta no fue respondida y encontrarán las últimas actualizaciones, así como información creada específicamente para adultos mayores y cuidadores familiares. Esperamos que hayan aprendido algo que pueda ayudarlos a ustedes y a sus seres queridos a mantenerse saludables. Participen el 29 de septiembre en otro evento de preguntas y respuestas sobre el coronavirus en vivo. Gracias a todos y que tengan un gran día. Así concluye nuestra llamada.