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Live from the headquarters of Ramsey Solutions broadcasting live on our car rental studios. It's the Dave Ramsey Show that is dumb. Cash is king and a paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. My co-host on the air today. Chris Hogan, number one bestselling author, Remzi Personality. We are here to answer your questions about life and about money.

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Open phones at Elite eight two five five two two five. That's triple eight eight to five five two two five.

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Jim is with us from Tampa, Florida, to kick off this hour. Hey, Jim, how are you?

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How are you guys doing? Great. How can we help? Wonderful. Well, Dave, the first thing that I'm going to ask for you is to not yell at me for making a stupid financial decision that I'm about to tell you.

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I have a rule that first caller of the hour, I'll never yell at them.

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So you're you're in love, Dave. You know, I have been following your financial principles for for a while now. And right now we're on baby steps six. So we're almost done paying off our home or actually, you know, probably by either the end of this year or the beginning of next year, we'll be paying up our home. So we're really, really good on that. Wonderful. I am very upset because we hustled into a timeshare.

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You what? And you already know where this is going to indoor tonsure.

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We got well, OK, so we got invited to one of the timeshare presentations. And, you know, I'll be honest with you, I was really I was really ready to say no. My wife was with me and they were painting a picture to her that I'm not trying to blame this on my wife, by the way. But, you know, they were painting a picture to her that I was like, oh, goodness, you know, I mean, it's kind of hard to say no.

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Here's my point. You bought it. This was last year. This was like this was last year. And we said, well, OK, I guess we're going to get one. So we got one. And I mean, we actually already paid in full. And, you know, my question is, should I still try to get rid of it? Because honestly, I'm just upset at the fact that I even got it. Or should we, you know, since since we already paid for it and I know we still have the maintenance fees and all that kind of stuff.

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Yeah. Should I maybe try to take a little bit of advantage to it, you know, advantage of it, you know, before I decide to get rid of my. You probably don't hear that, hey, I have paid for timeshare. Yeah, we do, but I don't hear people pay off their house to get going by a timeshare very often. But I know. I know. And that's a fairly unusually upset. That's the part I'm really upset about.

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Did you initially see that you got hustled into buying one? Well, yes. So we got into the presentation when we got into it, when we got into the presentation. Really nice people, by the way. But, you know, they were like, you know, they won't take no for an answer and they're just so big. And so and so because of that, it was like, well, OK, you know, and then we're just like, OK, you're trying to be nice, but at the same time, you don't want to get ripped off.

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So, you know, I mean, with Jim settle down like, you know, to Jim, you're rambling.

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Yeah. Listen, you you and your wife use this thing.

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Well, they just got you know, we we just got it OK. Yeah. Well, I mean, it's completely up to your brother, whatever you want to do. I think that what you're going to discover is what, 97 percent of the people discover the timeshare suck and the fees are going to go up and you're going to feel trapped into using that unit. All the stuff they promised you about being able to trade points with somebody else is not going to happen.

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And if the industry is scummy scamming and bad news and you're not going to get you're going to discover, you're not going to get delivered what you were promised and told by those sweet people who were pressuring the crap out of you, which is kind of an oxymoron if you think about it.

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But the so I mean, you know, if you want to play with it for a year or two and discover all this for yourself, you do whatever you want to do, manage your money.

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I mean, but I think you're going to get not only increasingly disgusted with yourself for having bought it, but increasingly disgusted with the whole process.

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Yeah, and I think that's what you'll discover, but it's OK if you wait until you get there before you pay time for your team to get you out, you know?

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Right. Right, right. Well, initially, I was hoping, oh, man, you know, maybe I can get like a refund, especially during this time that I know that that's not realistic. Not from those people. Well, yeah. And so I would give anything I would give anything to, you know, to go back in the past and, you know, not do that. But, you know, they don't let off the hook once I go on.

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So I think you're just going to wallow in it until you get disgusted enough to pay somebody to get out of it. But you're not only going to lose the pay the fee, you pay time-Share xylene to get out of it. You've lost all the money you put into it. So, you know, given all of that, you may want to like Chris said, you may well play with it for a year or two and just see.

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But I think I think what you're going to find is you're going to get increasingly disappointed in the organization because they're scummy and scamming.

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Yeah. And and I would say this, Dave, I think we all have to go through our stupid tax phases, we all have to. And I think the learning thing from that is, are a couple of things. I tell people you want to make two year decisions, you want to make a decision that you look back on the two years and you're glad that you made it. And if it sounds too good to be true, my friends, then it is.

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It truly is.

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You know, there's the industry.

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Timeshare industry is widely known for putting you into a room and pressuring you like no one else, like no other business does, and lying and cheating and making promises that they don't keep. They've had hundreds of thousands of dollars of fines. They've settled lawsuit after lawsuit for fraud.

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It's a known, scummy business. Most people kind of know that. Jim knew that. And then if you know that, then there's there's another part you need to know.

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And do you know yourself well enough to know that you have trouble saying no?

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Now, me? I mean, I do talk radio.

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I conflict for breakfast. You don't have problems. I don't have a problem saying. No, no. You know, no, Chris, I've heard that a lot.

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So I can just say no. I mean, I've gotten real comfortable in my own skin, real compromise. So I'm not even going to be in the room to start with because I don't wanna be in a room with people. I have to take a shower after I'm in a room with them. But Dave, it's a free dinner.

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And so it's, you know, it's a free vacation for the weekend and in a crappy but little dumpy hotel room. And so just go buy you a crappy but little dumpy hotel room.

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You'll come out much better off, cheaper if you know about yourself, like I know about myself, that I don't have trouble saying, no, I'm still not going to enter it just because I don't like being around that kind of people. They're just gross. Right. But then in addition to that, if you're just a person who says, you know, my wife is that way, she can say no, but she's she wants to be she wants to avoid conflict once and be happy and everybody's not going to be happy.

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And so she would be in there if she knows that about herself. She she knows if she goes in that room, she's about to get tattoos or it's going to come off bad. That's right. And so if you know about yourself that you have trouble saying, no, that's right.

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For God's sake, stay out of those rooms. Yep.

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Because you're going to come out of their own in a freaking timeshare.

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Hey, Dave, it's like my buddy every year at the beginning of the year, he will go look at trucks. Yeah, I told him we're not gonna make one of them is going to jump the queue. She's going to jump in your pocket, go get the payment. He didn't didn't hear from for two weeks. I said, what happened? We made a bet. He goes, I got the truck. I said, You got that payment.

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I said, Stop looking, dummy, go home.

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People will read Consumer Reports and study for four seventy three hours on which 600 dollar phone to buy. And then they impulsion eighty thousand on a porch. The same dadgum got a problem. It's a problem if you know this about yourself, protect yourself from yourself. That's a good rule because otherwise you get, you get to, you get to have these problems. And I'm so sorry Jim. Sorry you got this mess man. But you'll, you'll figure it out.

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You'll wonder. You'll get through it. This is the Dave Ramsey Show. Check out this headline courtesy of Politico, Dotcom emergency relief screw up hits five million student loan borrowers, nearly five million student loan borrowers who got a break on their monthly payments from Congress have been hit with incorrect information on their credit reports. That's what happens when you just sit around and trust the government to take care of your money issues. Refinance your student loans today to take advantage of the historically low rates Splash is offering.

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Go to splash financial dotcom Ramzi. Thank you for joining us, America. Matt is with us in Palm Beach. Hi, Matt. Welcome to The Dave Ramsey Show. Thank you, Dave. I'm a relatively new listener. I've been listening to about six months on John Howard's podcast. Cool. Thanks for listening. I appreciate everything you do for us. Thanks. I have a question for you. I'm self-employed and make a very good living. My 401k and.

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Contributing a ton of money to between myself and my wife. I've got a rental property that I owe about about 40 thousand dollars. I have a home equity line of credit on that, so I'm paying it'll be paid off in a year. Great. My my my mortgage is about two hundred and fifty thousand dollars, and I've got about 10 years left on that. So I was thinking of. Stopping by for one case contributions for the next couple of years pay off my main house, but then my tax implications would be, you know, a ton of money.

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Not really between well, between the my IRAs, my 401k, we contribute to the last two years. Eighty four thousand dollars a year. You're not doing a Roth.

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No. Oh, I'm doing it for the I'm 54.

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Oh, OK, you probably ought to be doing Roths anyway, but they just the half the tax implications.

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They're not worth what you're losing on the back end because the Roth grows tax free. And this is none of this is growing tax free. It's all going to be taxed on the back end. And it sounds like you got a couple million in there already.

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Do you know I've only got eight hundred thousand dollars? I don't.

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OK, well done. Good job, sir. You're a millionaire. I love it. At 54. Good job. Yes.

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So what I would tell you to do is you're not going to be touching this money. Maybe ever, you know, in depth, you're not really going to go into it, and so from age 54 to age 80 for that money growing tax free versus the tax deferral.

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Not not not not never pay the taxes, but the tax deferral on the 84000 that you're putting in now.

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I think just the forget the House for a second, just the discussion of whether you do a Roth or regular because you're not going to be accessing that money anytime soon.

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The tax free growth is math mathematically going to kick the tax deferral on the small amount? They're making sense. OK, let me try it this way. Eighty four thousand dollars. Let's just say 84000 dollars are going in for 20 years.

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OK, so that's one hundred and that's one point six million that you put in. That would have grown, though, over that 20 years to probably close to 10 million.

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Because usually in your gut, when you've got an account that's 20 years old or older, typically 95 to 97 percent of what is in the account is growth, not what you have put in.

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When you look at your contribution to get to the 800 versus how much of it is growth, you'll see what I'm talking about.

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OK, yeah. So the fact that that let's say out of that 800 is an example, 700 you put you didn't put in and you've got to pay taxes on it. If it was a Roth, there'd be no taxes on seven.

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Oh yeah. I understand that. You say coming up with an extra 20 grand in taxes.

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Yeah, well do it, do that or come up with an extra 200 grand in taxes later. And that's the problem, you know, and Matt, let me ask you this, what's your household income right now? It's over 300 think you're sleeping.

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And so, I mean, the aspect of you attacking and paying off the house, you can do both.

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Yeah. Yeah, you can do, but it's not I mean, that's what that's what I've been trying to do now. Yeah, yeah, yeah. I would do 15 percent of your income going into retirement, which is probably about what you're doing, actually pretty close. And then then just knock that house out and I think you're going to knock it out probably in about five years, not 10.

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And you're doing so good you can't really mess this up. All we're trying to do is just maximize it.

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That's right. And so if I were in your shoes, I'm 59.

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What I would do is I know you're not going to touch the vast majority of that money. You're not going to need it. You can live off the income of some of it without ever actually accessing what has become the principal, the original amount you put in, plus the growth.

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And if that is sitting there tax free, it's great for the next generation or it's great for you if you want to access it, you've got enough taxable already at 800. If I woke up in your shoes, sat down with one of our smart VESTER pros and run the math with them, they'll show you.

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I would go 100 percent.

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Roth Absolutely. And I don't think people understand when you utilize a 401k or four or three B and it's tax deferred, that means you pay taxes on this money later when you pull it out. And so you don't have that on the right side. And so people are think of the tax deferral and we're saying, no, no, choose the nontax option all the way.

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Yeah. Nontax versus tax. That's right. That's right. But what it is, is he's getting it. He's saying he's correct about this, that when he puts in 84000 in a traditional he's saving twenty thousand dollars on this year's tax. On this year's. Correct. Yeah, that would be about right. Right.

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OK, but the growth on that is so much more. And that all being tax free, you're getting you know, you're saving twenty today, but you're going to lose 200 hundred go.

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There you go. Because you can go tax free.

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And so even though I don't want to give the government anything that I don't have to. That's right. They got enough. Right. Because, well, they don't have enough because they're so stupid what they do have. But money either way.

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And the island of misfit toys is the so the thing is the you know, if you have a horizon of 10 years or longer before you're going to be accessing the money, Roth versus traditional math almost always works, assuming you're using a good mutual fund with normal growth rates in the market.

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That's what we're doing.

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Will is with us. Will is a BBB and we figure out how to arrive in Tallahassee. How are you?

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Well, good. How are you? It's an honor to be talking to you too, man. What's up? So I just had a question on kind of what's my next steps in kind of my financial plan and building. Well, I'm nineteen. I'm kind of going into my second year of college. I know around six thousand a year. And that's before because I work on commission to that before commission. So I have all my school paid for.

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I have a Roth IRA. I don't know if I should go into like a logo or a low cost index fund or what.

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What's my next step to the fact that you can't even ask that question makes you a rock star at 19 years old. You're amazing. And did your parents hold you down? And I was asking you beers on tap. Yeah.

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So where it come from, I guess. I don't know. My dad told me he didn't really start getting serious about his finances until he was around 40 and a lot of money when I was younger, like me. But he was also spending a lot of it, too. Kind of. I don't want to be put in that position now. What are you what are you studying, sir?

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Right now on all science major and I kind to get my MBA because I'm a year ahead, so I plan to just go on a combined pathway. I finished my bachelor's and two more years and I've got a masters degree.

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Of course you are. OK, and then you're coming to work for solutions, right?

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OK, you take this place now by my place because I'll just let him have it, then be gone by, train him up.

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I'll be retired. All right, Chris.

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No, Will. I love the path you're on, buddy. And the fact that you are using your parents example to be your motivation is outstanding. The fact that you have school paid for, I absolutely love that I would point you in the same path that we would tell others. The growth stock, mutual funds are going to be the way to go. You doing that at age 19, but you are going to be an everyday millionaire on a faster track than many people ever thought could be possible.

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The thing I would tell you is not only do you need to play offense in building wealth, you have to play defense. And what that is is avoiding stupid around every corner because it's out there. But and just learn to save up cash. You can have nice things. Just slow down and be intentional.

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Yeah, well, I right before you do that, I would add one thing. I want you to pile up a big pile of cash in case something goes sideways with one of these scholarships, because the best investment you can make in this discussion is called Will. Yeah. And the return on investment of you finishing your degrees 100 percent debt free because you had a little extra cash pad. You can pull it out of that no load mutual fund if you want to.

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But I want you to get out of school debt free because you're going places you're doing well. Way to go, man. This is the Dave Ramsey Show. Our Question of the Day comes from Blind's dotcom, find out for yourself why Blind's Dotcom's, the number one online retailer of custom window coverings, should get free samples, free shipping, new promos all the time. Always use the promo code. It's magic. The word is Ramsey. You'll get the best deal.

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Chris, our question.

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Yes, we got it here, Dave. This comes from Michael in South Carolina. He says, I'm 54 and my wife is 53. We have seven hundred and a four one K plan. Don't hate it when that happens. I know the funds are invested well. They're performing well. Got a long track record of performance. We're debt free except for the mortgage, which will be paid off in 2023 or 2024. My wife is a diabetic. We'd like to retire in four to five years.

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But wonder how we can acquire insurance for my wife. Household income is one hundred and fifteen thousand and we're investing 15 percent. Do we have a chance to retire before we're eligible to use Medicaid or Medicare? How might that happen? Well, here's the thing, Michael. You absolutely have an opportunity to be able to retire. You guys are focused, not finish your attack attacking the house, going to have it paid off in the next three, four years, tops.

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But insurance wise, I'm going to point you to one of our insurance jobs so you can start to walk through and understand what's available to her. Even with this pre-existing condition, there are options that are out there. You need to get a pro in your corners. You can walk through on the insurance side, on the financial side, keep chasing down, knocking down that mortgage. You can be debt free completely and also be close to being an everyday millionaire.

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You know, I think you're going to the only barrier for retirement is the insurance. And that's the way you've raised the question. I don't disagree with you. Diabetes, as you guys already know, is a an insurance nightmare. Yeah. And so you'll have to find a good independent insurance broker. And our LPs are just that. And that means they can shop among different companies. In your particular situation, the phrase insurance people use is they're trying to make a market.

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If you hear that phrase in your own track, make a market means we're taking your particular situation and finding who wants that type of business badly enough to not charge you through the ears for it.

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An example that was, you know, my home because of its value is an unusual property to insure and it's an unusual property to sits up on a hill, get struck by lightning all the time, all this stuff.

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So when the insurance when they get ready to insure it, not everyone wants to insure that house. That's right. Not everyone wants to insure an expensive car, a super expensive car. And so they have to go find insurance companies that want that type of business. And yes, it does sometimes come at a premium.

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And but they're making a market. That's what you're looking for.

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And the only way you're going to get that is with an insurance broker, not a captive agent. So you're not going to go to State Farm and get health insurance. It's not going to happen. Not not reasonably priced anyway. Right. So, yeah, I think that's where you put your hustle and you just continue to add to your 751 K ding ding. You did it and you continue to you know, the house will be paid off before retirement according to your numbers here.

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And you've done a great job. And so Chris is exactly right. Just continue to work your plan, push it through and you're going to be right where you need to be. Baby, you're doing good.

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Matthew is in Columbia, South Carolina. Hi, Matthew. Welcome to The Dave Ramsey Show.

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Today across the street, you guys are my longtime listener and I'm excited to ask you a question. OK, so I live currently in Columbia from Charlotte, and I moved out here by my fiancee from the area. And finally, we have a home and we're staying together right now with one of our situation going on there, working from home. And now we're back to working at my job site. So I'm kind of all on edge about how the of my job currently and with the home that we have that we purchased.

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Just trying to think of best options of how to make sure I can take care of the home. And I know you speak of urgency, but kind of want to give more advice about something that gone through as far as keeping that foundation together.

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You know, when you get married. December 21st, why? We want to be a wedding to try to celebrate the new year, so that's kind of move on from there.

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Yeah, you don't own the house you're in together. She owns it, right? No, I don't want to get it, you own it together, both your names are on the deed. My name going to be she's on the. Yeah, we're both in oh, crap. OK, and you own the house from before the relationship back in Charlotte right now.

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So I moved to Columbia and I purchased the house and I moved to Columbia. Oh, OK.

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So do you have is there two houses involved or one? This one, oh, I got confused. I'm sorry, OK? All right, well, I mean, you can do whatever you want to do. Obviously, you're a grown man. You called to ask us what I would do. I think you're in a perilous situation legally and relationally and spiritually.

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And so if I were you if you were my little brother, I put my arm around you on, say, Saturday. Get married Saturday. And celebrate New Year's as an anniversary of your wedding six months from now and Saturday, because you are not what you're trying to act like with your finances, that you're married and legally you're not.

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So really, what you are is you own a home with your roommate.

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This is a partnership with no partnership documents, let me help you with this, she dies in a car wreck you now own and she doesn't have a will. I know that based on the way y'all are acting, she dies in a car wreck.

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You now own a home with her mother and father. Oh, well, that sucks. Right. Yeah, and this is the stuff I've gotten to deal with over the last 30 years, it's the problem of setting up house before you're married because it set you up.

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And the other thing is it sets up all kinds of relational issues because it's hard to combine money when you're or not have not combined your thing.

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So all of that to say spiritually, emotionally, financially, everything else, legally, I'm not real romantic, but you already you already cut your you already cut your path here.

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So Saturday I'd be married, you know, unless unless it's Friday. But Chris, what do you want to know?

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And you were talking about how do you keep your income steady? What line of work are you in, Matthew? I operate in that section, OK? I'm actually glad to see my day also. OK, that's how you get your income. So, yeah, I mean, you want to be super intentional with what you're doing as you're working and doing whatever you have to do. But I agree with Dave. You are going to get married, getting focus, being a true team and working together.

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Then you can be in alignment and start to really set goals together. I'd encourage you all both to go through financial peace. Once you get that situated, get plugged in to the Ramsey plus. And if you get married in the next 30 days, I'll give it to you.

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Just give it to you anyway. It's your wedding gift. And, you know, I was trying to motivate him. I know, but OK, it's like Santa. Well, I wasn't I wasn't in the first part of the call, so now I got to be nice. Oh, you're soft now. So that going I completely interfered in his business.

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You gave him good guidance because you didn't call me about that. But here's the reality here. I'm not understanding that only the house with these two people are parents that he has no idea about.

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And we've seen that for the sale. We've seen this and he's going to be legal fees.

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No, you're absolutely right. It is a financial nightmare. And so costing people out there just to slow down, people slow down and think ahead and get things like there's a study that talks about doing things in the right order.

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Yep. And how that is an indicator of wealth. And it doesn't apply necessarily to Matthew's situation. Exactly. But buying a house before you're married together is in the wrong order because it can cause you so many troubles.

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And that's all I'm care about. Matthew, I'm just trying to help you, man. And if I got up in your grill too quick, I'm sorry, but so. But they you know, their whole poverty study talks about, if you will, graduate from high school before you get married or have a baby, if you will get married before you have a baby. They call that the success, linage linkage and almost all of your poverty data is when you get those three things out of whack, out of order, you start having babies before high school, grad, grad, or you don't graduate high school.

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If you will, graduate from high school, be over 20, 21 years old before you get married and wait until then to have babies. Your chances of being poverty go down like ninety four percent. So that's what the data shows. So it's I don't know if it's cause and effect. I'm not sure which one is causal, which ones the result. But it's there. This is the Dave Ramsey Show. Thanks for joining us, America. We're glad you're here.

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Open phones, a triple eight eight two five five two two five. Derek is with us in Denver. Hi, Derek. Welcome to The Dave Ramsey Show.

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Thanks for taking my call, both of you. Sure. What's up?

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I apologize. I was a little nervous here. So if I talk too fast or whatever, but my dad passed away late December of last year and he was taking care of my mom in the house. And Mom is now in assisted living that we got her in position. Good place for her expenses are forty three to forty five hundred a month. But she gets a pension of about 2000. We are selling and in the process of just about the clothes on the house that they lived in, mom and dad put the house in a trust that technically my sisters and I owned.

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But we have all agreed to my two sisters and I. The money is for to take care of mom, OK? When all is said and done and after the sale, long term cap gains, the loan repayments and sale expenses, there's going to be about a little over three hundred thousand dollars left. OK, how old is your mom? To my question. My mom's going to turn eighty one in October, so she's 80 right now.

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How's your health? Okay, not great, but OK, she's she's just feeling she's OK.

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These are tough times for you. And I'm sorry. I'm sorry. So I'm sorry I interrupted you. What's your question? So it's a two part question, one is once we get the check for the house, there's a little over three and a OK, do we just put it into one account and pay all of mom's expenses out of it? Or do we take some of the money, put it into some kind of high interest earning account and the rest in a bank account to pay expenses to distribute the money between all three kids and then say, hey, you got you know, you have to pay this much a month to cover mom's expenses.

[00:31:38]

Or I guess that's the first part of my question.

[00:31:41]

Since your sister's in agreement, my opinion would be and I'll show you what Christmas is, but my opinion would be 300000 invested in some good mutual funds. Here's the thing. Your burn rate is about 30 K a year.

[00:31:54]

From what you told me, right, you're about twenty five hundred a month in the hole, right? Yes, yeah, that's right, yes, that'll be thirty, you said you said 4300 in 2000, right? Correct.

[00:32:06]

Yeah, I heard 2500 dollars and that's thirty thousand dollars a year. So your burn rate is thirty K, you need 30. Kaiya if 300 produced 10 percent. It would produce enough to support without damaging the 300. Now, it won't necessarily do that every year, some years it might produce more. Some years it might produce less. But even if it averaged 10 percent more, you guys are basically going to end up with close to the 300 to distribute to the three of you when she passes.

[00:32:41]

OK, if you can get the money to invest it and you see what I'm doing, if it makes eight percent, it's going to eat some of the money. If it makes 12 percent, it's going to grow.

[00:32:51]

You follow me, that's you. Because you need you need 30 out of this money. And if you can make the 300 produced 30 or more, the whole 300 will still be sitting there. You see, I'm doing the math.

[00:33:02]

Yes, I do.

[00:33:03]

And so that's what I would do with it, is I would sit down with one of the smart VESTER pros of some mutual funds and try to get something that's fairly stable, probably some growth and some growth and income. I probably would stay away from the normal international mix on this, and I might have a little nonaggressive, but I don't know that it'd be a fourth or a third.

[00:33:24]

But sit down and try to get together a portfolio. But high yield.

[00:33:28]

When you say that, that usually means CDs and that's going to high yield CDs, two percent, which means you're burning 30 grand a year. And after 10 years, 33, 300000 is gone.

[00:33:41]

Yeah, derogate. Yeah, he's dead on. And I'm going to tell you this. Here's the unique thing about your own situation that I'm proud of you, that you and your sisters are in alignment. Yeah. You know, that that's like a rare unicorn type situation. And so rather than to wait on that, I think you take, as they've suggested, put that in a growth stock mutual fund, have this awareness and understanding. You know, you could have the document drawn up.

[00:34:08]

You know what happens in case one of you, whoever the executor is, you want to have the person that's the secondary.

[00:34:15]

But the agreement is, is the primary goal of these funds is to take care of your mother, you know, and whatever's left when she passes, we just distribute it three ways then rather than and you can, you know, like, for instance, say you were managing it or one of your sisters were managing it with the smart Vesterbro.

[00:34:31]

Each one of you can get a statement every month and see what what's happening with the money.

[00:34:36]

You know, you can look at it and you can even do a little a little review over the phone once a quarter. Right. And say, OK, here's where we are. You know, we needed seventy five hundred dollars for this quarter, three months to 2500 and the mutual fund made 10000. So we're we're we grew a little this month or it may it made six thousand and you know, we just ate fifteen hundred of our money, you know, and you just kind of review it so that and if you'll do that incrementally throughout the year, at least once a quarter every six months, then later on someone doesn't look up and go, hey, stole all the money.

[00:35:06]

That's exactly you know, you don't get that later. Yeah. And you don't do that. But that's what hillbillies do. Maybe that's what people like me do.

[00:35:13]

And if you happen to be married to crazy, that that's husband or spouse could cause that rift. So stay aligned, take care of your mom. You guys are lots of communication. Yeah. Communication is key as they've said. Get that copy of the statement to everybody. So we all see everybody's on the same page and we can be in alignment. You know what?

[00:35:32]

I would go further. I would even just write it up a little agreement. Job one is take care of mom with this money. Job two is have the money invested. So where it creates enough income to hopefully take care of mom without damaging it.

[00:35:46]

Mom and in job three is to distribute the money equally and have equal amount upon Mom's passing and in the meantime have quarterly updates and everyone sees the account and knows what's going on and can discuss and has input.

[00:36:04]

Boy, that will eliminate some drama manage. Because what happens is, is that people when people don't know what's going on, that's when they become crazy.

[00:36:13]

Oh yeah. Her and I'm with Chris though.

[00:36:17]

Congratulation hats off to your family's beautiful people that you can immediately could allow your sisters to go. This is not about you getting money and going off to Vegas or going on a trip. This is about like you like learning where you could go on a trip right now. But but, you know, it's about taking care of mom, which is as it should be.

[00:36:34]

That's what it's supposed to be. By the way, it was her freaking house, you know. So there you go. Wow.

[00:36:39]

Good job, man. Well done. That's just some ideas. You could go out a lot of different ways, but that's probably how I would do it. And that's kind of what this place is about, how Chris and I would do it today. Chris, how good. My co-host today, Ramsay personality, Chris, another Chris is in Boston.

[00:36:53]

Hey, Chris in Boston. How are you? Well, how are you? Better than I deserve. What's up? So I have a question about investing in my site as well, so I work full time and essentially to do firewood on the side. And if you are in there recently, was that my log splitter basically broke. So my way of earning money on the side. Question about do I kind of just get it going again and see what I can do.

[00:37:22]

I don't want to take the go again or do I try to invest and move up into one that will help my productivity to be able to make more money on the side?

[00:37:30]

So how much how much money, how much have you made splitting wood?

[00:37:32]

How much money you made? I can go on the side anywhere from eight to a thousand dollars a month, 800000 thousand, much of what splutter cost. Probably like four thousand dollars for the one I was looking at, four or five thousand. All right. And so how long did it take you to break even? And my only expenses are fuel and maintenance on it, so I could be probably six to seven months. Yep, you're on the catch is my baby step number to do more than paying off all my debt?

[00:38:05]

Yeah.

[00:38:06]

You know, and so, you know, what I'm going to do is repair the old one. Yep.

[00:38:14]

Elmer's glue rubber band duct tape. I'm going to repair the old one if there's any way you can broken it. Drawing lines and catching fire, the hydraulic lines busted and it caught fire.

[00:38:31]

Yeah, yeah, it's oil based. Yeah, I would say it caught fire when it hit the what?

[00:38:38]

Burned the lines still alive.

[00:38:41]

And the engine there felt there like a whole lot.

[00:38:45]

OK, so I'm going to step two then buy used. That's exactly right. Step three, Dave. I think that was one rental. That one's gone. Yeah, yeah, yeah. That one's gone. He's trying to justify buying new equipment, Dave, so we're not having it. Yeah, well, I wouldn't I wouldn't spend that kind of money on that kind of a return. If you could make your money back in 30 days on aside us on baby step two, fine.

[00:39:05]

But not seven months and haven't done it before though. It's not fun. It's like real work. This is The Dave Ramsey Show.

[00:39:16]

This is James Childs, producer of The Dave Ramsey Show. On your smart speaker, you can add our skill by saying, Alexa, open the Ramsey network skill. From there, you can listen to all our shows. Ask Dave money questions like How do I invest my money or what is the debt snowball? Find out more at Dave Ramsey Dotcom Smart.

[00:39:34]

Hey, if you've got questions about retirement investing or becoming an everyday millionaire, go bigger and broader with my man Chris Hogan on the Chris Hogan Show. I am excited to be able to talk to you all week in and week out. We're going to focus on your calls and it's going to focus on building wealth investing and how to become an everyday millionaire. Subscribe to the Chris Hogan Show wherever you listen to podcast.

[00:39:57]

Hey, it's James, producer of The Dave Ramsey Show. This episode is over, but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.