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[00:00:22]

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollars Car Rental Studios. It's the Dave Ramsey Show work that is dumb. Cash is king and a paid off mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones, a triple eight eight two five five two two five.

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Chris Hogan, Ramsey, personality podcast superstar and number one best selling author, is my co-host today here on the air. I like that podcast.

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We like that Dave has got a little ring to get a ring to it. Does that help you out at Let's keep it.

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You make me feel good today. That's good. Well, you should hear me up.

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It's all good. Jennifer's in Stockton, California. How are you, Jennifer?

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I'm doing very good. Thank you so much for taking my call. Sure. What's up?

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So I have well, I didn't know that I had a couple of retirements from different schools that I had worked with over the years. They didn't have like I didn't contribute to them. I didn't literally know anything about them. But then everything's backwards in my life. I've literally gotten my AA before, my GPA. I've literally and everything. I'm currently in the middle of going to be switching jobs and I'm wanting to know if I should take those and close them and put them towards the debt that I have.

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No, you should roll them to an IRA. If you can take them, you're allowed to take them in all cases. Some retirement plans allow you to take stuff, some don't if you're in if you're in a pension plan, they may not let you roll it or cash it in either one.

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But if they're allowing you to carry it, if I if they're to be a huge chunk. Yeah, there are big time.

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Know if you would just roll it from there to an IRA, get a smart Vesterbro to help you do that. If you don't have somebody to help you click. Smart investor Dave Ramsey Dotcom. These are guys and gals in the investment world. We're not we're not in that world, but these are the people we send you to. If you need help with something like this that have the heart of a teacher.

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If you don't do that, Chris, she's going to get hit with a lot of taxes.

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You really are. I mean, it is going to be almost close to around 40 percent. And so there's no reason for that. Jennifer, to roll it over, as Dave is telling you. But tell us, how much debt do you have?

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So I have a total of 52000 in debt. OK, how much of that as a vehicle? None. I mean, I've been trying to run my car into the ground for the last 10 years. All right.

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So what does this 62000. So the fifty two thousand is only consumer or fifty two thousand is for the house, I took all of my debts, consolidate them. I had owned my house outright at twenty seven. I'm now 33 and I borrowed against the house in order to just put it all into one one spot.

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OK, so you only owe currently on your home. Correct. The fifty two thousand.

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OK, and your income is what. My income is going from twenty six thousand to thirty three thousand. OK. All right, cool. In the next couple of months. Good, good.

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OK, so roll this money to an IRA. Do not do not borrow money at 40 percent interest or 35 percent interest, which is what the taxes and penalties will be in order to pay down debt. Instead, let's just focus on making sure you have an emergency fund in place of three to six months of expenses that your first savings goal and then you would start saving for retirement and then you would start paying down on the house.

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If you go at that point and defer to you, I hear about that, those consolidations. And, you know, it's one of those I mean, if you owned a home at age 27, my goodness, don't secure unsecured debt with your largest monetary asset, your home. Don't do that.

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You don't want to in cases too late, but it's too late to run.

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But if you're out there right now and you're hearing people do fuzzy math where we can save you 300 dollars a month, they're really not there extending the period of indebtedness that you're going to have the debt with the consolidation loan leave these loans, individual go debt, snowball smallest to biggest and attack it. Don't fall for the lie, you know.

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So, Jennifer, that's the answer in your case. And Chris is right for the rest of you out there. Don't don't fall for this because personal finance is 80 percent behavior. Yep. It's only 20 percent had knowledge. And if you you know, here's what's interesting. The Bible says out of the abundance of the heart, the mouth speaks. So when someone talks about consolidating their debt, they're like, you know, going and putting on the house or moving the debt over to something else.

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They say, I paid off my credit cards with this loan instead of saying I moved it. That's exactly right. Which because you didn't you didn't pay it off, you know, moved it.

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But that tells you that you feel like you've gotten some relief from the stress of the debt.

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And I don't really want you to have relief from the stress of the debt until you get rid of it. And so if you got from credit card debt, you got a car loan, you got some other stuff, work your way through a debt snowball and get that cleared up. Don't move it around because you'll always find that that P is under one of those shells. It's still there.

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The shell game you're going to find and it's going to turn up. It's not going away until you pay it. And so the only way debt gets paid is you pay it. That's it.

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And I could pay you back. In the old days when I was banking, you could put people on a clock. They'd come in and do the consolidation year later, guess what? But again, coming back to do it again, because they never trade, they trade the symptoms.

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That's the debt. The problem was the overspending. That's right. And the problem was the disorganization. The problem was no budget. The problem was no vision and no plan. And until you get down and you fix that problem, you're going to continue to run up debt. It's just going to show up somewhere else. And you moving it around and stop that. So, again, that's not picking on Jennifer. Her deal's already done. Right. So we're not shaming you, Jennifer, but it just brings up the subject of debt consolidation.

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The answer to your question is, in your case is role your retirement into an IRA, a direct transfer rollover. It's called direct transfer rollover with a smart Vesterbro. Stan is with us in Gadsden, Alabama. Hi, Stan. Welcome to the Dave Ramsey Show.

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Bakradze. Hey, Dave. I am doing good. How can we help? Yes, sir. I'm sixty two. My wife is sixty four. OK, when March rolled around and they call the nineteen took over, I took our money that we had for one day and I put it all in stable value. I know, I know. I said I know now I certainly did that but that's what I did because I, you know, I took I took the big hit a couple other times.

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I don't want to take a big hit again, being of my age. You just took one then. Yeah, I agree. I agree. I did. Oh, all right. I have right now in my 401k sitting there stabilize. I got about 300000 and a stable and I got about one hundred and seventy in my savings account just sitting there. And neither one either the one doing anything. OK, another thing. How many times have you done this.

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Many times. Have you made money out of the market when it was down and you were scared.

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Too many to say too many times of savings. And that's, that's my that's my fault. And, you know, and if I'm conservative, my wife is one hundred percent more conservative. Well, I'll say conservative house have more like Skeeter.

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Yeah. What can we answer for, you know, so many times we're just more scared. Yeah. OK, so and that's where we are in an era when you come back from a short break, we'll talk to you to find out what's going on with you and we'll go from there. This is the Dave Ramsey Show.

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During these crazy times, the best advice I can give you is control the controllable. Let's start looking at major expenses like your monthly rent or your house payment.

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Folks, mortgage interest rates are so low, now is the time to invest in your future. In just 10 minutes, my friends at Churchill Mortgage can share ways to save you serious cash through a smarter mortgage plan to speak to a specialist call triple eight, loan 200 or go to Churchill Mortgage Dotcom. This is a paid advertisement in MLS ID one five nine one in MLS Consumer Access. Doug Equal Housing Lender 1749 Mallory Lane Sweet 100. Brentwood, Tennessee three seven zero two seven.

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Chris O'Connor is my co-host today here on the air, Remzi personality. We're talking with Stan and Gadsden, Alabama. Stan has pulled his money out of the stock market when it dropped several different times. He did again, this again back in covid as 300000, sitting in stable value, I think he said, and 170000 in a bank account. That's how far we got in the discussion that a fair summary of what you told me so far.

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Yeah, that's pretty. That's pretty good when you're in your early 60s, if I recall, 62.

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My wife is 64 and she's more conservative than you, OK?

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Yeah, she was. She has a lot more conservative than me. And here we are. I lost my job in March also. OK, when I lost my job in March, they had a four hour severance package. I took this option that were over the next two years, I'll make a hundred dollars a week over the next two years and keep my money. And they keep investing 8000 dollars a year in my 401k. Plus they keep paying my interest for two years, OK?

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And that's why, man, I can't go out and get another job if I go out and get another job and lost that. OK. OK, so that's where I'm at. And we went the last few weeks ago, we went to some smart investors and got a small aggressive look. They talked to two of the nicest people you can meet, but I'm getting different signals from different people I talked to, although one of them wanted to put me like 70 percent in bonds and 30 percent in mutual funds.

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The other one wanted to put me like 124 in the variable annuity and then 120 mutual funds. And I've heard you talk negative about bonds and I've heard you talk about variable annuities. And, you know, I'm just confused. I don't know which way to go from there. OK, I'm confused, too.

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So I'll put you on hold when we're done. And I need the name of both of those smart Vesterbro so we can investigate what happened with this advice that's off kilter. And, you know, we'll we'll work on that. I'm not sure you should invest in the stock market.

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OK, it's what I would do, but I don't think you should because you suck at it. Yeah, you are.

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Either you keep pulling money out at exactly the wrong time regularly. And every time you do it, you know, it's the dumb thing to do and you keep doing it. So I don't think I can put you back in there again, man.

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Right. Right. You know, like I said, I sometimes I wish I could stay in, but I just got you thinking about staying.

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You won't you are going you are bound and determined to do this again. So let's get real. How much debt do you have right now?

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I'm I'm going to do what? Not good. What does good mean? Well, are you debt free, yes or no.

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Nothing on my house. Don't have no credit card debt. That's great.

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OK, that's beyond our, you know, our monthly bills. Are we OK?

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All right. Said listen, we got to grow this money though, buddy, OK? Right now you have it buried in the backyard in a jar and I'll get a lot.

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So we do well, but you don't have to grow it now unless you down Agatston. You can grow some interest off the ground. We've got the investors money. We have to listen to me start.

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But I really I think you need to buy like a rental property. You're over sixty. You can start pulling some of this money out. You got the one hundred seventy. I'd probably go buy a rental property or two and manage the rent. So for now, it's a little harder to sell everytime you freak out because I'm scared to put you back in mutual funds. I don't think you're going to stick.

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He won't. There's no there's no chance he is going to pull back out. And who got what we're talking about of pulling out of the market. You're missing the stand.

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Hold on. It's going to pick up I those two smart Vittrup. When you pull out, you miss the opportunity for the rebound. And that's where you've got to be able to look at this and be able to stomach and understand what it is you're dealing with, which is why we talk about talking with the smart Vesterbro so you can talk about your concerns but understand what you're invested in.

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Yeah, you know, the the variable annuity has a feature to it that allows protection of principle. And so if the market turns down, you don't lose your principal. So that may be what that smart Mr. Pro in that case was talking about bonds. I have no idea how you got there, but because that sucks. But the thing is, if you if you keep jumping off in the middle of a roller coaster ride and every time you do, you break bones and you do it again.

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Anyway, I don't think you need to be on a roller coaster again.

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Just because, you know, you just get you get crazy when the ride happens and you jump out in the middle of it. Yeah, it's just, you know, and that's that's hard to for people, you know, to continue to do that time and time.

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And everybody just about has a story. They did it once, right? No, I didn't. But I mean, just about most people do. And that's not because I'm smarter. I just did enough other dumb things. I didn't do that one.

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But you don't get hurt if, you know, we were we were yelling at you guys during March. Well, we were trying to be kind. Maybe we were yelling. You were feeling we were being very direct and very blunt. Do not take your money out of the market when it's down in February and March when it dipped because the stock market dipped because of covid and the perceived idea that companies were going to lose profits, which, of course, many of them did.

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And but the market is back up. If you had just waited for 90 days, you would have you would have experienced an upturn.

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And if you buy at the height when everything's going good and you sell when it's low, of course you're going to lose money.

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You know, you have to ride it till it comes back up. And it's a that's it's hard to do emotionally, but the only thing that makes you do it emotionally is if you believe that it's going to come back up. Right. If you didn't think it was going to come back up, you wouldn't do it. But there's tons of historical data that indicates the fluctuations in the market are the only thing you can count on up and down, up and down, up and down.

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So when it goes down in just about I mean, you just bank on it literally that it's going to come back up. You really can't.

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And what you have to stop doing is listening to the talking heads on TV. Oh, Lord. I mean, they will have you swigging on Pepto like it's a milkshake, so you can't listen to that stuff. You got to you got to be clear and say, OK, I got to sift through the crazy to find out the facts.

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And they they the best ratings in television and on radio. The best ratings are when we can make we and broadcast can make you afraid. Hmm. So a thunderstorm. A tornado, a hurricane. A stock market crash. A pandemic. If we can make you afraid, you get glued to the TV because fear activates the same part of your brain that pornography activates and it's addictive. And I call it fear porn, and so these networks have engaged for the last six months in fear porn and people have gotten to where they're just some of you have lost your dadgum minds with fear.

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You were you used to be nice people and you become mean and hateful. Are you curled up in the corner of your house, sucking your thumb and your perfectly healthy?

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You've become addicted to fear because you keep that stupid television on.

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I never thought about it that way. That fear can be that level of addictive. You would think it'd be the opposite.

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You think about it, it's like a moth to a flame, right? You're drawn to it, you know, and it's activating. It's almost out of your control, has an addictive principle to it. And so and it's the fear porn is is worse right now in America than it has been in the history of this nation has never been like this. It's it's peddled. And it let me just tell you guys, I know these guys and they're doing it for ratings.

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They're doing it for ratings. And so when the Weather Channel can put covid-19 deaths on there and you can click on it in the toolbar of the navigation of the site, when you're looking at temperature and storms and whatever, you can click on covid-19 death for your state covid-19 cases for your county. Wow. You don't think they put that on there for a reason? Oh, yeah, because they sell banner ads and the CLECs is what their ads because sales go off of.

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So, you know, the Weather Channel for God sakes. But they're specialists at this. This is what they do.

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So when do you click on the weather? When it's sunny, no, you click on the weather when the storm hit. That's right. When you think there's a line of thunderstorms coming in, you're gonna get struck by lightning or hit by a tornado or hurricane or something. And so it's all fear based and it's really, really dangerous. And it can affect your personal affect your health, your mental health, your relationships. It dadgum pressure affects your money.

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Oh, it it does. I got a friend of mine is perfectly healthy and was and since then his blood pressure's through the roof, cholesterol levels are high. He has scared himself sick. Dr. Ramsay has a prescription for weight. Throw throw a brick through your TV. His blood pressure will go right down to what it will turn off CNN, turn off MSNBC, turn off Fox, turn it off, don't break the TV. Well, if you can't do that, then throw a brick.

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Stop it. This is the Dave Ramsey Show. In the lobby of Ramsey Solutions on the debt free stage, Jeremy and Sarah are with us. Hey, guys, how are you doing? Well, thank you. What do you guys live in Columbus, Ohio? Oh, fine. Welcome to Nashville. Thank you. And all the way down here to do a debt free scream.

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Yes. How much have you paid off? One hundred ninety seven thousand dollars. Well, I'm 274.

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Can't forget that. Good for you. Very cool. Almost 200. Wow. How long does it take? Seven years.

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All right.

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And your range of income during that time started at 88 and up to 130. Cool. What do you do for a living? I'm a senior financial analyst. I'm a registered medical assistant.

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Cool. What was the one seven?

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So the primary piece of that is 136 and student loans, thirty six thousand dollars in car and 25000 dollars between medical other consumer debt and a personal loan from my former friend now. Wow.

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Oh yeah. That does that sometimes. Yeah. Sorry. Wow.

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One hundred and ninety seven thousand. Yes. What started this journey seven long years ago?

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Well, this goes back kind of to to when I was 10 years old, I started working at a very young age, developed an infatuation, a very unhealthy one with money which led to theft from family and then what led to theft from employers. Their story short, got in, got done with high school and college. And at the end of my first year in college, I started playing. Online poker that led to a seven year crippling gambling addiction.

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And for the back half of that, I hadn't met her and every step of the way she had been by my side and and finally graduated in 2009 with my undergrad and finance, oddly enough, and then felt like the Lord was calling me to go back for my masters. And I fought and fought and fought. I ended up doing it and just pushed through 11 months. I've got that done.

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And then not long after that, her brother, who had previously gone through financial peace, he and his wife put us through the financial peace course back in 2011, which led to 2013, where we paid our first. A student loan payment was 445 dollars and 82 cents, and I saw that 11 dollars of that would be going to the principal found that if we were to pay minimums based on their schedule, I would be two weeks shy of my 90th birthday.

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Oh, so he got angry. Yeah, very angry.

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Where did the gambling addiction fall off?

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Right about that time I was in 2010, actually writing. I graduated the master's program and information systems. So you've been dry 20 years? Ten years. Ten years. I'm sorry, Ed.. OK, good. Well done. Congratulations.

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Thank you. That's a tough one to break, people. The fastest growing addiction in America today is online porn. Second fastest is gambling. You know, everybody thinks about drugs or opioids or alcohol or anything else, but that's the second fastest growing addiction right now. We deal with it every day in here with our financial counseling. Oh, so. Wow, congratulations. I'm proud of you. Thank you. That's very cool. So it's over 20 years you've been derived from that.

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But in 13 or 11, the next year you went to IPU.

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Yes. And then we got married in 2012. OK, and then we're Gaumont and then.

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Yeah, it's 2013. We made our first payment. We're thinking, OK, well now this whole kind of jump start that 2014 to 2017, we had a medical catastrophe every year and one that you would talk to that new us knew our luck with that. Either I was in the hospital or she was in the hospital or I was in a car accident. Wow. Something like that.

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And it was just it was draining. And 2016 is when I finally reached my boiling point because I was working in my career and I told her I wanted to get a second job. So I was a server at Cracker Barrel for about six months. And then I ended up working a third job for a while. I ended up being for about two years for a friend's retail business on Amazon. So you were throwing every extra time at the door?

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Yes, every bonus that came in. And it was the majority of this happened in four years, not seven.

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The last, I believe it was a hundred and thirty. Yeah, roughly in the last four, four years and just got pissed off.

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There was a lot of money fights. And this woman, I think before we got married, I tried to push her away with everything. She just wouldn't go away. And that's a good thing. She's been by my side ever since 2007. I'm just incredible.

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Sarah, what's this what's this journey felt like for you?

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Um, it's been long. And you had mentioned earlier that your name being a cuss word in the house and for a long time it really was in our house.

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I was very much so the free spirit. And, you know, I hated having the debt, but it just didn't really seem to be such a burden to me as much as it was to him. He's very much so a numbers guy. So I was just kind of like, yeah, it's fair. Like everybody has died. It's normal. Like we're going to be fine, you know, we'll get it paid off one day. And he just was relentless.

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And when he gets a fire lit in him, he doesn't stop. So and it was lit. So there was no putting it out and it was easier eventually just to be on board than it was to be off. So and I'm thankful that I I jumped on board.

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So how long ago did you feel like you jumped on board? Oh, gosh.

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Honestly, probably within those last four years. Yeah, that's what it sounds like.

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That's when everything came together. Yeah. The past was far enough in the rearview mirror. Yeah. And all the other stuff that that caused you to have a lump in your throat when you were telling it a minute ago. Yeah. That's just far enough back that you can move past the shame and into the into the victory and start winning in some of these other things. Very well done.

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Yeah, but it's close enough that you can still grab it emotionally. Oh yeah. You know, that's one of those things you don't want. Forget it. You know, I tell people it's OK to glance back. You've got to focus forward. But there's some stuff you got to glance back. You go. That hurt. I don't want that anymore, you know. Proud of you, man. Yeah, no, I really. I really, really am.

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This is you can see it on you that do battle. You went through some stuff and you know, you haven't heard by your side. It makes a difference. Yeah. Makes a difference.

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Absolutely. So what advice do you have. To a young couple out there and that's facing this kind of debt, what is the what are the steps for the Keys in that last four years in particular that caused the needle to move for you guys?

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I think just being intentional with your money and sacrifice, there was a lot of sacrifice. That was honestly one of my biggest reluctance as to the whole process was just seeing everybody else around getting to take really great vacations or just do really fun things with their money and just kind of holding back a little bit in reserve and, you know, not chasing the dream that we wanted so quickly, but just taking the time to get there. So I think just and also we were your biggest cheerleaders.

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I saw the two of you.

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So I think first my brother and sister in law, that they put us through that before we even got married. It was just a great foundation to be laid. And then honestly, I feel like he was the biggest cheerleader for me just because there was so much reluctance on my part, you know, that he'd be like, look like it's working. We paid this off, you know, and he'd be the one doing the work at the show.

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And yeah, you get the anger, basically. I ain't no stopping it. Well, you got to stop. Well done.

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Good job, you guys. Thank you. We got a copy of Chris's book for you every day, millionaires. And you're definitely on your path to be one of those, without a doubt. Congratulations. Thank you. Very proud of you heroes. Very well done. You took control of a whole bunch of areas of your life.

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All right. Jeremy and Sarah Columbus, Ohio, counted down one hundred and ninety seven thousand dollars, paid off in seven years, the majority of it in the last four years, making 88 to 130.

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Count it down. Lazzara Debt free scream three three, two, one, one, three.

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You can hear the chains fall off. Yeah, baby. Yeah, love. That's awesome.

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They went through Financial Peace University because their brother in law put them through it. And Financial Peace University is now a part of RAMSI plus.

[00:28:29]

And you can be a financial peace university coordinator, a virtual coordinator, and get a free one year membership, a whole year for RAMSI.

[00:28:37]

Plus, by being by leading a financial peace university group as a virtual coordinator. And this is a brand new thing. It's exploding and we definitely need your help.

[00:28:48]

Text the word lead FPU to 33 789 text lead FPU to 33 789. If you're a virtual coordinator for Financial Peace University, you get a free whole year of RAMSI, plus the massive all access online program. This is the Dave Ramsey Show. As your insurance company ever bumped your car insurance rate for no freaking reason, this is so maddening, especially when you're giving it all you can to get out of debt and then they bump it. I just hey, you don't have to just sit there and take this.

[00:29:40]

You can work with an independent insurance agent who's one of our endorsed local providers or helps. These guys are great because they will fight for you. Most people who work with an LP save around seven hundred dollars over what they were paying before. And that's because they're independent, meaning they don't work for an insurance company. They have hundreds of different companies they can shop from to get you. The best price is right for you. They work for you.

[00:30:07]

What a novel idea. So don't put it off. Say never again. Go to Dave Ramsey, dot com slash easthope click on insurance. Dave Ramsey dot com slash LP and save seven hundred bucks. That's a really smart idea. Mike is with us. Mike's in Los Angeles. Hey Mike, welcome to the Dave Ramsey Show. Well, thank you very much. I my wife and I were getting ready to retire. Thank you, Dave and Chris, for taking my call.

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Sure. And we're thinking about retiring and we have quite a few properties and we were wondering if we should liquidate some of them. Why, that's that's kind of our dilemma here. Why? Well, all of our kids are out of town, they left they left the area and we were thinking about maybe moving sooner than later.

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Okay. You know, and it's our concern to have property all over here in California and they live in Memphis and Chicago and stuff.

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OK, so where are you thinking about moving to? Well, we were thinking somewhere out there, Memphis or somewhere like that. How much real estate do you own? Well, we own 10 properties. OK, what's it worth?

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Well, they're our net worth is probably three point eight million.

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Good for you. Very well done. How much of this did you inherit?

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About 200000. And how long ago do you inherit that? Oh, five years ago. So you were already worth over a million? Oh, yeah. We've been very frugal.

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You and so you did not become millionaires because of inherited money. I just want to say that out loud, because there's a lot of stupid people in America that believe otherwise.

[00:31:53]

So I just want to make sure I get that out there being very intentional with that line.

[00:31:57]

So, Mike, anyway, the answer to your situation is the is the properties are worth three million dollars A property and the properties are worth three million.

[00:32:08]

Then we have 100000.

[00:32:10]

What type of real estate is this? Are they residential? We have to triple X's that are worth approximately 600000 each. Mm hmm. And then we have individual homes.

[00:32:22]

So they're all residential. All residential. And Mike, you sound like Mike, you sound like you are a lover of real estate. Well, yeah, we always love to hold it, yeah, so if you will.

[00:32:39]

My guess is you got substantial equity and you would have substantial capital gains if you start liquidating this. That's what we're worried about.

[00:32:46]

Yeah, I you know, what I might do is I might do a series of 10, 31 tax deferred exchanges. And so it would sound like this. I would figure out where I want to live and I would move there. And after I'd live there a couple of years, I would begin to liquidate these properties, one or two at a time with a 10, 31. The way at 10, 31 works as you sell it and it goes into you have to use a special title company that is IRS approved to do it, 10 31 tax deferred exchange.

[00:33:17]

And you sell it into escrow and then you have to use that escrow to purchase other property of, like, kind within a set time. Usually it's six months and you have to identify and close on it.

[00:33:30]

And so, you know, you could sell off, you know, a million a year for three years or half million a year for six years or something like that out of the out of the portfolio.

[00:33:42]

And whichever properties giving you the most hassle would be the one I would get rid of first, the ones that kind of run on their own and that are more stable tenant base and that kind of thing are the ones I would get rid of last. But over a period of the next decade after I made the move, I would not have long distance landlords, but I would not panic and do it all at once in one fell swoop. And you can do any of them in 10, 30 ones.

[00:34:06]

As long as you repurchase greater or equal value out of that escrow account within the set time, you have zero tax as you've rolled your capital gains into the next deal.

[00:34:17]

And Mike, you need to find another hobby because real estate has been your hobby. It's a good one. Well, in another. Well, he said slow down, Dave.

[00:34:24]

I mean, you got to move. And I would suggest you rent out an Airbnb and each of the three cities where you have kids to figure out which kids you like the most.

[00:34:32]

Oh, so you don't buy. I mean, already know.

[00:34:37]

He said Moonface though. He did say that. But but I mean, you guys have been very intentional as a as a couple with this.

[00:34:46]

Really. Yeah. Congratulations.

[00:34:48]

Very, very well. And we've been dedicated to, you know, trying to build some wealth. And you have. Yeah, we're really proud of that, but now we're in a dilemma where we're both 67 and we're sitting here and the kids are moved and they're not coming back now. And we don't want to leave them a whole bunch of stuff in California.

[00:35:07]

Yeah, that makes sense. And, you know, you can liquidate some of it and just move it to mutual funds if you want to. But you're going to have that 15 percent capital gains rate, right?

[00:35:17]

Unless your household incomes over 400, then you're going to have a 20 percent capital gains rate. And that's not over what you paid for it. That's over your adjusted basis. And you've depreciated this property down.

[00:35:26]

You've held him a while. That's the problem. So the whole freakin thing, just about it's going to be gain is what it amounts to.

[00:35:32]

So, you know, we're talking about, you know, 150 grand, 500000 dollars in capital gains here. If you liquidate the whole portfolio. And I'm not going to recommend that I to know I would do 10, 30 ones if I were in your shoes and roll move the properties over near the kids, meaning buy rental properties over there in the area where you're going to be living around the kids so that they can inherit them and carry them forward and they'll get a stepped up basis when they when they inherited it, too.

[00:36:01]

So it's a very good thing. Don't involve them in the ownership until death because you're going to be in a great position to do that. And we have no taxes on the gain.

[00:36:10]

If you if you do it to Roatan 31 and then you die, whatever it's worth at the time you die, the value at the time you die, which is all of that equity in there, all of that gain, and there is all going to be the new basis for them on their tax basis.

[00:36:26]

So it's called a stepped up basis from what you paid for it and have depreciated it down to versus what the actual value is.

[00:36:32]

Massive savings. Yeah, it's a half million dollars, right? Yeah, no massive amount. But I think Dave too. I was talking with Mike, giving them permission to be able to enjoy and do some stuff.

[00:36:42]

Yeah. I might sell some of it and just spend some. Yeah. Just go take a go. Take a trip.

[00:36:46]

Go to well I mean and give some of it right now I'm going. Where are you going. Go to the store. To the store. You can go there.

[00:36:55]

You get looked at me. Look at you mean they look at you. I mean I know they like me. They look at you may not know they I'm not going to let you put that on me. I just did hit the button. Ramsey come on. Let's go. Go talk to people.

[00:37:10]

So we're overdue, James, for an everyday millionaire thing.

[00:37:13]

I yes. Hogan, I used to do with these. We do them pretty frequently, but scheduling covid and other stuff have preempted them. But we're about due to hit another one. Do you know when it's on the schedule off the top of your head? I don't show the everyday millionaire thing of ours when we have nothing, but people call in that have networks of over a million dollars.

[00:37:30]

And what we discovered by doing that theme hour was that most of them did not inherit their money. And, you know, there's all this crap out there in politics mean inherited wealth and it's absolute morons because you just don't know what you're talking about. Statistically, you're just wrong.

[00:37:47]

Yeah. You can't be wealthy without inheriting it because you want to be a victim. So suck your thumb. OK, but but that's that's the deal. Not and so we ended up doing these millionaire theme hours and then from that was born every day, millionaire three hours and from that was born the largest study.

[00:38:06]

We ended up doing a formal in-depth research study that's airtight, the largest study of millionaires ever done in America.

[00:38:14]

Yeah. And over 10000, 168 of them, if I recall correctly, that we interviewed.

[00:38:21]

And actually you got the little book, a quick read. Yeah. The quickly if you're having trouble sleeping, you know, I'll be the study. OK, you know what I said the next time you said that I was going to stop that. No, why? This is important. Oh, you read it. Yes.

[00:38:35]

Did you make it through without napping? Yes. You lied. Seven cops just saw you like seven cups of coffee. I got through it. But listen, if you nerd's want the details of the study, we show you a little thing called the National Study of Millionaires for nine bucks. If you want the real book, it's the everyday millionaire book that Hogan wrote, which is actually a good book. It's entertaining and it's a number one bestseller. But if you want the nerd stuff, you can get the other one, too.

[00:38:58]

Both of them got this beautiful face on them. So either way, you got something for the bugs out of your shop. That's it. Clean it up. That's right. This is the Dave Ramsey Show. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you heard about an event, product or service, it didn't have a chance to write it down. Don't worry. We list everything you've heard about during this episode in the podcast, show that section or head over to Dave Ramsey Dotcom and Cliff Dave recommends.

[00:39:28]

Thanks for listening. 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.

[00:39:53]

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.