Should I buy my iPhone off contract?

Episode 1102 (39:00)

Kim from Santa Clarita, CA
Apple iPhone 5S

Kim wants to switch carriers and wants to know the best option for getting an iPhone. Leo was going to suggest T-Mobile, but that's where Kim is and she doesn't want to have a contract. Leo says that without a contract, she'll have to pay for a phone unsubsidized. She can also buy the iPhone 5S unsubsidized and make payments on it, but that's just like having a contract. Should she wait? Leo says we'll know when the iPhone 6 is coming out in a couple months. It'll probably be out in September.