Transcribe your podcast

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollars Car Rental Studios. It's the Dave Ramsey Show where that is Dominique Strauss-Kahn, a paid off home mortgage, has taken the place of the BMW as the status symbol of the choice. I'm Dave Ramsey, your host, my co-host here on the air today, Dr. John Boloney, Ramsey personality.


And we are answering your questions about your life and your money.


It's a free call at eight eight two five five two two five triple eight eight two five five two two five.


Bethany is with us in Augusta, Georgia, to start off the hour. Hi, Bethany. How are you?


Good, how are you? Thank you so much for taking my call. Sure. What's up?


So my husband and I are in baby step two. He is a agriculture teacher here in Georgia. And last year he made 47000. And we're not quite sure what he's going to make because his new pay raise starts at the end of this month. But they haven't given us the final total. We just so our question for you is, I have 21000 and a single stock from a company I used to work for several years ago. And it's just been kind of sitting there.


It's gone up and down with everything that's been going on. And we're wondering if we should take this stock, sell it and use it to pay off part of our baby step two, or if we should keep it, if we should sell it and put it in a mutual fund, if we should sell it and put it and use it to put it into our house. Because we're looking at moving in a year towards Atlanta, where my husband can get a better job in teaching agriculture.


We're just trying to find some direction.


How much debt do you have? We have we have 14 and credit card and 16 student loan and then we have our house.


Very cool. All right, good.


Well, what we teach you to do in baby step two is sell anything. That isn't nailed down and isn't in a retirement account. Put the cat on Craigslist, the dog on eBay, so everything that's not nailed down and not in a retirement account. This is not in a retirement account. You got money in savings. You get money in an investment. You got a gold bar in your safe. Get it out and sell it. Anything that does not have huge emotional value to you needs to go away immediately and clear up this mess as fast as possible.


So that means you would jump online. Dave Ramsey, dot com click on Smart Vestor. If you don't have a broker in your area and get that stock sold immediately and you pay off all your credit cards. And by the way, if you cut them up already.


Oh yeah. That's already done. Oh yeah. I'm an FPU coordinator. Oh yeah. Done that.


Well, as an FBI coordinator, I just gave you some clarification then. Any time someone's in your class, they sell everything that is not in a retirement account. OK, this is not a retirement account, right? Yeah, it's not.


My husband's just concerned that I sell it and then I don't have anything. You know, in case something happens, he should go to your FPU club.


So so by the end of this week, potentially, you'll have no credit card debt and you will have eight thousand dollars less in student loan debt as well.


Yeah, well, that's the other thing I'm concerned about is because our house, when we bought it four and a half years ago, it hadn't been updated from the 70s and it's in 1986. Hmm. So we've been, you know, putting in we've been cash flowing here and they are trying to fix it up. And my husband, he's amazing. He can take basically water and make it into wood. Kind of. Sort of.


And I don't even know what that means, but it sounds cool.


And basically, we've taken stuff out of our walls and he's. So what are you what are you saying? You want to work on the house or you want to get out of debt?


Well, I want to we want to do both, because if we moved up towards Atlanta, we're going to be making more. So what's your household income today?


Right now, it's 47. Oh, so you don't work outside the home? No, I'm I'm at home with two little ones, OK. Good for you.


OK, cool. So. All right. So when is the move to Atlanta?


The move to Atlanta, we're hoping is April or June. OK, and what do you have to do to the house in the meantime to get it right?


So we have about half of it finished. We had to basically. How much money do you need to get the house ready to sell in the spring?


Probably between five and eight thousand magic. Isn't it kind of odd that you have that much left over after paying off your credit card debt? Yeah, I set that in the construction account, get the house up for sale, get it fixed up, get it gone and make the move. Do not be sitting there when I talk to you next fall. In your newly renovated home and you decide to stay, I'll kick your butt. Oh, we're not going.


Trust me, we're we're not going.


I'm not renovating your house and not paying down your student loans unless you're moving. Oh, I agree. OK, so fix the house and move in the spring, OK?


And set 8000 dollars aside for that and pay off fourteen thousand dollars in student loan debt or six thousand dollars and pay off 14 or whatever you got out of stock. But that's about the right amounts isn't it.


Yeah it is. Because God's gracious. Yeah. And set it over to the side and it's not to buy a new couch. It's not to go on a trip. It's not to go out to eat. It's not to supplement your budget.


You're an FBI coordinator. Yeah. And you guys, are you doing your every dollar budget and both of you participating. Oh yeah.


No, I'm the nerd. He's the free spirit. We have it both written down and in there every dollar. And he's in agreement.


He's in agreement on all these goals. Yes. OK, good. Well, we have a we have a way to execute both goals magically from this stock I think is wonderful. And now that you don't have any credit card debt, we're going to accelerate out of your cash and you don't have any cash flow needs for the construction. So you should be able to find in your budget with no credit card debt and no construction coming out of your annual your monthly budget, you should be able to accelerate your student loan, pay down quickly.


And you just taught me something, Dave. So I think I would have walked in and assumed that if it's in a stock, it's some sort of retirement account and a single stock is probably never in a retirement account.


OK, it's a good it'd be a very unusual stock. Single stock is in a retirement account unless your company was matching her with stock in her 401k. OK, and that's not what happened here. OK, that's just a stock option that was given as a gift or a compensation issue or a bonus issue or whatever. But most the time when you're single stock, the only way it would be in your insider retirement account is if they used it to do the match.


Like if you had a five percent match instead of giving you money, I'll give you company stock, give you company stock in the match.


And that's that's not that unusual. But other than that, if you hear a single stock, it's almost always going to be a standalone account like that is. So I love it.


Man one phone call and all of your credit card debt goes away.


Well, and we have a more thoroughly trained financial peace university coordinator. That's right. So life is good.


And if every phone call could result in people having no credit card debt, man, that's a good start.


She's already cut them up, though. She's way ahead. Way ahead.


Now, speaking of leading FPU classes, the crisis this year has left a lot of people feeling scared, scared. And, you know, if you're scared, you don't want to be that way. You want to get into financial peace. You want to get into Ramsey.


Plus, and here's the deal, if you will, lead a Ramsey plus financial peace university virtual class from home, we will give you a free Ramsey plus membership for a year.


Yeah, we need some virtual coordinators right now to get these classes going. They're popping up everywhere. There's lots and lots of classes coming on right now. A lot of people are ready to get out of that. A lot of people are learning from covid that they need to get their act together. So if you want to lead, text the word lead FPU to 33 789 text lead FPU to 33 789. And you can participate, have a front row seat for someone changing their whole family tree.


This is the Dave Ramsey Show. We're always looking for ways to save money, and that's why I'm a huge fan of Honey Honey is a free online shopping tool that automatically finds the best promo codes and applies them to your car. It's so easy. It's saving more than 18 million people over two billion dollars. Shopping online ad honey on your browser today for free. Make sure they know you're part of the Ramsey tribe by going to join honey dot com slash Ramsey.


Dr. John Boloney, Ramsey personality, my co-host today here on the Dave Ramsey Show, Open Phones, a eight eight two five five two two five. Tyler is in Chicago. Hey, Tyler, welcome to the show.


Hey, how's it going? Dr. Drew, thank you so much for taking my call.


My pleasure. How can we help?


Oh, I know that a crazy family and financial situation right now that I want to get some advice on. About a year back, my grandma gave my wife and I a gift of nine thousand dollars for a home, telling us that it was our wedding gift, birthday gift, Christmas gift forever, so forth. We were grateful and we offered to pay her back eventually as soon as she gave the gift to us. But she told us, don't worry about it, that she was so happy to help us out.


That's a year she's been asking us recently how we were doing financially. Just weird, weird questions for her. She's she's not that intimate usually. And come to find out, she just wanted to see when she could ask for that money back that she told us was a gift. And she wrote us a letter in the mail saying that she wants all the money back plus interest. And in the letter never mentioned that it was a gift to us.


So now in her eyes, we owe her twelve thousand dollars. We have paper. Yeah. So we have paperwork that she filled out to get tax exempt from, like because it was a gift and we just don't know what to do right now. She's done stuff like this before. To my parents, I thought that my wife and I were the exception. But come to find out we're not. She's also saying things about her well that we're in her will.


And the money that we're going to be paying her back monthly is going to go towards, quote unquote, our future home, which is it's just a mess. And how old your grandma. So we don't know what to do. How old is she? She's sixty four.


What's your household income? After taxes, about 70. OK. Hmm, so you said you've got a payment plan if you already work something out with her. No, we we've been very vague in communication. I didn't want to agree to anything before I talked to someone who could help.


OK, I Dave, I'm going to love to hear your way on this. And I'm Tyler. I'm answering you. But I'm also leaning towards Dave.


As I as I ask this, as I answer your question, it sounds like Dave, he's going to choose between nine thousand dollars or twelve thousand dollars and or a relationship that's going to ripple through his entire family. And it sounds like they've been through this before. It sounds like he has a decision to make whether he wants to go to war with grandma or he wants to write her a letter back and say, I'll come up with some sort of payment plan and wash his hands of that and learn this lesson and never make this mistake again.


Mm hmm. Beware, grandmother has big teeth, right? Yeah, yeah, yeah, she does. There's a story about this. Yeah. Hmm. Yeah, exactly. And it's turning to people with a gift and said, don't ever worry about paying it back, that it's you know, it's hard. Yes, I know.


Is she mentally ill or is she just or is she just a liar. She's a liar, she's been diagnosed as a narcissist and and a liar. OK, so where is the money? In our home. Oh, you did how you used it to buy a house as requested. Yes, I wish I would have listened to you guys sooner by. So can you write a check your money? Oh, right now, we're building up our emergency fund, we have about 5000 in the bank.


OK. Me and my wife, she works at a gym and we live in Illinois. And I mean, it's covid flares up. She's going to be out of her position. Yeah, she was for a while already. So, Tyler, one thing that she was Dave's about the answer here.


One thing I want you to put down.


I quit carrying around what she told you a year ago, that you're trying to balance those two realities in the new reality that you have is a letter. It's a demand letter for 12000 bucks. I don't see anywhere in the world, legally or morally or otherwise, that you owe her twelve thousand dollars.


I don't think that you I think legally or morally you or any of this money.


I just think there's a broader family conversation that you need to engage in. Yeah.


So yeah. Yeah. You do not Maleo or a dime. And so you would, you would be in your rights to just get on the phone with her and say, Grandma, you told us. That this was a gift way of paperwork that shows that it's a gift and now you're reneging on that and that's not OK, you're misbehaving. I love you, but I don't love this behavior. And I'm not going to pay you because I don't owe you.


That's one option now you and I both know what's going to happen when you do that. Oh, for sure, yeah, she's going to be Mount Vesuvius because she likes to pull people's strings and when they don't dance at the end of her string, she has a little bit.


Absolutely, this is the pattern that you've watched when you were growing up with your parents in her. This is 100 percent of what this woman is, OK, and so we can predict fairly accurately what she's going to do now, is that what you want to do? Already you want to give her. Twelve thousand dollars or 9000 dollars or whatever, as fast as you can, and I wouldn't set up a payment plan, I just save up some money and ignore her until then and then write her a check for 12.


And then but I kind of think when you give her 12 grand, you're probably going to get a letter that goes, oh, yeah, I forgot about the other thousand you still owe.


Yeah, that's right. Yeah. We're building up interest from now until I pay that. Yeah. Or more or she changes the interest rate because there was never an agreed interest rate because it was not alone. Right.


So she makes crap up as she goes in order to get her to, in order to keep her hooks in the end of the puppet.


And so I don't know if you're ever going to make her happy. I know, so I'm not sure paying her is going to work, I am sure not paying her my own about. Yeah, so it's up to you.


You just you got to kind of play this out and go, am I willing to have her angry with me or do I want to give this a shot and be rid of her?


And obviously we're doing no more business transactions with this woman as long as she breathes. Oh, absolutely not.


We had learned that we had learned that lesson the hard way in either case. So you guys just got to decide which one. But I think we can predict that if you just confront her and just call it what it is, it's a lie.


It's a lie. And you told me this, and I'm going with what you told me. And we're not going to pay you. And you don't pay her.


Right? You don't have the money. I'm not. No, it doesn't matter. I know it doesn't matter if you had 50000 bucks in the bank. Right. You know, it's morally wrong. She's a manipulator, a narcissist, a liar. And so do you want to at what level do you want to have a relationship with her?


And do you want to attempt to try to spend twelve thousand dollars for that for that option? Right. And that's really all it is, because it has nothing to do with the actual transaction. It's got to do with power and control. Yeah.


This the actual transaction that occurred is very clear in your mind. And and I think it is exactly what happened to because you were so able to articulate the details of the transaction.


And so I believe I believe that your view of this is not crazy.


So I'd also I'd also advise Colin sit sitting with his parents if he hasn't already in saying, how have you all handled this in the past?


What's grandma going to do here?


And they may have circled back and said, we told you not to take that money, you know, so if you were to do this again someday or if someone listening has a similar situation, make if you think grandma is a suspect, she hurt.


Endgame may be not what it appears when you're offering the new young couple that just got married, the new newlyweds, nine thousand one nine.


Anyway, I know it's a random of 10, but round up Jewish.


But anyway, but but, you know, if you think that's the case, I would never put in writing that it is a gift because we know her track record of having changed her story.


And then when it comes up, I just sent her that back.


That's right. And in that, if I had that in this case, there would be no question in it.


I can't help but think that rattling around in their minds is if we draw a line here, usually people who operate like this may have substantive accounts, other places, maybe in a will somewhere. I don't really care. Well, that's what I want. I want people to draw integrity lines to say I'm not going to take that. I'm not going to take that Bernt money anyway. I don't really care if I'm in the will. We're going to hold down to our integrity here.


We're going to say no. If you take to take me out of the will, that's fine. That's right. Please take me to the will because I don't really want to negotiate with other crazy relatives.


That's exactly right. To take me out of the oil. This is the Dave Ramsey Show. Hey, business owners and anyone who has to talk with customers often listen up. You are the backbone of this freaking economy. And just by staying open to serve your community, you're providing hope to your customers. That's why my friends at podium want to do something special for you. They're offering you the opportunity to text your customer base for free. So sign up at Podium Dotcom now and join our crusade to communicate, connect and spread hope.


That's podium dotcom. Thank you for joining us, America, this is The Dave Ramsey Show. Dr. John Deloney is my co-host here on the air today, Remzi personality joining me as we talk about your life and we talk about your money high.


Up next is going to be Danielle in Hopkinsville, Kentucky. Hi, Danielle. How are you?


Hi, I'm good. How are you? Better than I deserve. What's up? OK, I'm nervous, and so we sold a car, bought a car with cash, we're debt free other than our home and a loan to mom for a remodel in our house. Thirty one thousand for a home loan at three percent interest. Forty three thousand for a remodel. You owe your mother 43000 dollars. Yes, OK, do I combine and refinance the home to pay her off interest and pay her off on a 15 year fixed?


Yes, yes. Or do I go back to baby, step to Neverwas and babysit to pay her off?


What is your household income? 74000, you refinance. And Thanksgiving dinner tastes different when you don't know your mom money, especially almost fifty thousand dollars, right? It's not strange. It's just I didn't say it was, you know, I just don't like it.


I say Thanksgiving dinner tastes different. And you know what? It's your mom. So it's less strain for you than it is your husband. Mm hmm. Yeah.


When Sharon and I went broke, Daniel Sharon's dad loaned us some money to catch up the house so we didn't lose it in the bankruptcy. So we owed him some money.


And he is the sweetest, kindest, most generous man on the planet. And I my brain was about to explode until I got him paid off. There was absolutely no strain whatsoever coming from him. But the borrower is slave to the lender, and that does not change if your master is nice.


Right. And so I wouldn't have to stop our retirement. We're at 15 percent and I've got 2000 an emergency fund.


You're there. You've got the equity refinance, I assume. Yes, yes, 150000 or we've on it on a. Yeah, go and put it on a 15 year fixed rate and let's take her out.


The reason I'm doing that is, is the we always put a second a normal second mortgage, not a mom, second mortgage, but a normal second mortgage in baby step two or a home equity loan and baby step two. If it is less than half your annual income, it is not. It's more than half your annual income. And it's a mom loan double reason, refinance and get rid of it. And it's not because we're mad at mom.


It's not because we didn't appreciate mom. It's not any of that.


It's a bad idea to owe your family money.


That's been our theme this hour. It is. It's going to let mom be mom and mom and bank. Right? It's just going to.


Yeah, I love that.


There is no human on the planet that can't wonder about your vacation and what it costs when you owe them forty three thousand or our husbands able to make eye contact with his mother in law because he knows I'm in the hock to her for 50 grand.


It changes everything every the nicest people on the planet. It changes it still. It's the old joke is if you loan your brother in law a hundred dollars and he never speaks to you again, was it worth it?


So, I mean, you know, it change it. Money changes relationship. And so the moms and dads quit loaning your kids money. Gamal's that are narcissists quit loaning your grandkids money.


And we had we had a call if you want to if you want to pass some money to the net, to another generation, give it to him.


We had to call on another show, Dave, where I wrote this down. The child said to you and I I borrowed some money from mom on and I'm going to pay them back. It's a mutual understanding. And that just rang in my head.


If you are if you have borrowed money, sit down and negotiate where the terms.


Let people know. Here's I'm going to pay you back. Here's my plan.


If it's just unsecured, if it's just a mess, the problem is when you do business with family, people don't treat it like business. They don't. Right. And then it gets to be lack of communication. It's unclear. We don't have same expectations and the deal changes. Right. And it changes based on a whim.


And you know what? I do deals. I do a lot of business deals. And I don't do any of them except in writing. And it's partly because I forget.


I forget. Right. And I want to remember what I said. I would do it if it's written down and you go, Oh yeah. Now I remember saying I would do that.


I want to honor somebody else that they happen to forget. They did a bunch of deals. They forgot that. Yeah, I want to know what was really said to write and write down. It's real clear. Right. And so but don't don't don't want your family members money. Don't loan your friends money. If you can afford to give them the money, give it to them if you want to, but don't want them. And that's no strings attached.


Right. That's no like.


Wow. And you should maybe do that now. Nope, nope, nope, nope, nope, nope, nope, nope. I do know one guy that did a thing where he took care of his kids first house and in return they promised to never borrow money again. It's a good deal. Now, that's a first string to put on it.


I'll sign it for that day all day long. And so, yeah, that that was a good one. I like that in one guy, you know, he put in the wheel well.


You got to go to Financial Peace University. I've heard stuff like that. That's not you know, that's not super manipulative. It's a little strange, but it's not Superman. But the the trick is, don't you know, you don't get to because you gave them ten thousand dollars eight years ago, still interfere in their personal lives. Right. That's what you don't get interest, too. And so you've got the gift. It's not a gift if it has so many strings attached.


That's right. And sometimes there's payments that aren't payments.


Well, and it can be a sneaky way to get your hooks in somebody.


And sometimes I want to think about it from the receiver that 10000 dollars may really feel good right now.


But as you know, you know, if there's hooks there or your dad's going to just start showing up or he's going to put on, my mother in law is very controlling and she demands that were there on Thanksgiving and she wants to give us ten thousand dollars.


It's probably not worth it. It's not worth ten thousand dollars. Nope, it's not worth it.


Because you don't because she's going to call that back.


You know, she's going to call back on that and go, yeah, I to that time I gave you ten thousand dollars. So you have to be a Thanksgiving. It's like the, you know, payments. That's that's exactly right. And so, you know, if you're dealing with a control freak or somebody, it's got boundary problems or they're a travel agent for guilt trips or these kinds of things, you know, then you just cannot even then you got to really go.


Very, very clear discussion about a gift. This is an incredible offer. Thank you very much. But we need to say out loud, as a matter of fact, it depends on how toxic the situation is.


We may even need to write it down that there are no strings attached or if there are, what are they?


And blame us, say, hey, a couple of hacks on the radio, one hack and Dave Ramsey on the radio said it's a couple. If I'm going to take money, I'm going to take money. Let's write it down. And so I just want to keep it even a gift. Right, if. There's a problem if you think there's a problem, and so the guy that I'm talking about, this buddy of mine that did this thing with a free house thing he has written down, it's not a binding agreement.


It's just a letter. Right. And the kid just promised. And so, you know, if they go crazy later and say, we're going to go, you know, buy a house we can't afford and go into debt after we had a free house and then, you know, you told me you were going to do that, right? It's in writing. Right. And they both signed it. So, you know, I mean, that's a that's a.


. You know, at least everybody knows the terms of the deal.




And and you can call back on them then. But this this thing of I'm going to loan my kids money because I get more interest that way than I would get on a CD and they get a cheaper rate than they would get on a mortgage.


It seems like a great transaction, except that the turkey and Thanksgiving dinner just as chewy, right.


You can't put a price on losing your kid or altering that relationship. It just changes the dressing. Hmm. It's not as good anymore, too.


It sounds like taking money from the government just sounds nice and wonderful and clean.


Right. They're not going to expect anything from us. They're not going to want us to ever pay it back.


I don't know when that whatever happened. Never. Here you go, guys back.


We'll just forgive your student loans. Oh, wait. I'm just going to mail your money back. We just changed our minds again. That's why. Because we're in Congress. We're going to go with it.


Our bad on that one. Good and bad. All my bad, my bite, my bad ass. So I'll just pay it. Be careful about taking free anything.


Yeah, but listen, the only way you can help out friends and family is not alone. Right. That's off the table because you will change the tenor of the relationship. You cannot debate with the law of gravity. It's known as the truth and this is the truth. You cannot debate with this. You're going to change the tenor of the relationship. And to the extent you don't agree with me on this, you're what's known as wrong. This is the Dave Ramsey Show.


Our Scripture of the Day, Proverbs one seven, The fear of the Lord is the beginning of knowledge, but fools despise wisdom and instruction. Bernie Sanders lost that experience as a hard teacher because she gives the test first and the lesson afterwards, oh, I like that one. That's true.


And and the problem is, if you flunk the test, you get to take it again. That's right. You'll take it over and over and over.


You know, if if you if you just take that one stupid thing you just did and never do that stupid thing again. And then the next thing and you never do that one again and the next thing and you never do that one again.


And you start ruling out a whole long list over your life of stupid things that you never do again.


They call you wise.


That's right. And you wrap it up in a pretty bow. Right as you die. Right. And you slide in there. This is how it works.


Michele is with us in Dallas, Texas. Hi, Michelle. Welcome to the show. How can we help?


Thank you very much for taking my call. Sure. Well, I. I used to be a teacher. I'm a stay-at-home mom now, but and most of my time is in Texas, maybe 10, ten years or so. But I had a short stint for a couple of years. And so my question is about an IRA. Should I take the two years of accumulated huge retirement and roll that into an IRA I don't have. Yes, yes.


OK, now, traditional Roth, I don't know what these are and I know their name, OK, traditional means that there are if you have not yet paid the taxes on it, there are no taxes.


Do you've not yet paid the taxes on this. So you can roll it to a traditional and pay no taxes from that point forward. It will grow without taxes until you cash it in. When you cash it in, all of it is taxable. But you don't pay any taxes until you start to cash it in. So if it grows to 100000 dollars, you'll pay taxes on a hundred thousand dollars. OK, if it is a Roth, the taxes are due when you do the rollover.


So how much is this money? How much money is in this account?


It's maybe three grand.


OK, so if you I would roll it to a Roth and go ahead and pay your taxes. Taxes will probably be about 700 bucks or 50 bucks on that. OK, and here's why, here's why it will grow from here on 100 percent tax free. So if it becomes one hundred thousand dollars, which it won't, but if it became 100000 dollars, it would all be tax free, whatever it becomes growing in the mutual funds inside the Roth is tax free because you've already paid your taxes and the Roth grows tax free because it's such a small amount and it's kind of just cleaning up details is really all you're doing.


I would get with a smart Vesterbro, do the rollover and then you will have a tax bill due at your tax rate for whatever the balance on the account is when you do, the rollover is with us in San Antonio, Texas. Hi Travis. How are you? Hey, guys, thanks for taking my call. Sure, what's up? Hey, so my wife and I are planning on selling our house and we were wondering what the what the cost differences between getting an LP and possibly selling our home to a company like Zillow next door or something like that.


Well, when Zillow, our next door, buy homes, they buy them at wholesale because they're going to resell them and make a profit.


OK, so it's a discounted thing, these all these guaranteed purchases, none of them are at retail. They make the radio ads to make it sound like it is, but it's not.


And so because they think about it for a minute, OK, if you own a company called Next Door and you look a house that is appraised at two hundred thousand and you buy it from Traves for 200000.


And you sell it for 200000. How does next door make money? They do. That's what we were wondering. Yeah, so they don't they buy it for they buy it for 180000 or four hundred seventy thousand or whatever and then they sell it and they make some make a spread on it. But what you got, it's like taking your car to CarMax and selling it.


It's instant, you get an instant offer and they'll hand you a check right then, but they're buying the car for the purpose at CarMax of research, CarMax even open still by whoever whoever it is. But you know what I'm talking about and you're the purpose of reselling it at a profit because they're buying they're not evil. It's just what they do. So an endorsed local provider is going to charge the real estate commission that they charge. It's customary in your area.


A lot of areas are six percent.


And the studies tell us and it's the reason I personally would use an LP, you know, one of my my my son is getting ready to sell his home and he's listing it next week or week after next with any LP. Why would he do that? I have a real estate license. His sister has a real estate license. His father is a real estate license. Me, his brother in law has Rachel's husband has a real estate license. So we could easily list that house and take care of it.


But we use an LP that's a professional. And here's why. The data tells us that the House sells not only faster when sold by a pro, but it sells by more than enough extra to cover the cost of the commission. So it ends up costing you virtually nothing, probably even makes you more money selling a house with a real estate agent that knows what they're doing. And I'm not talking about a doughnut eater that sells three houses a year.


I'm talking about a pro. Hmm. Somebody does a bunch of house deals and gets it done. And it's high octane. High protein. They're worth every penny. The data in the research actually shows that a high quality real estate agent will get you more for the house than they cost you. And so that I always would list it. And and I endorse local providers in the real estate section. None of them are doughnut eaters.


They're all I mean, they made a donut, but but they're none of them are the guys sitting around the office doing nothing. That's what I'm talking about. And we all kind of know those guys. Oh, yeah. Or somebody that, you know, buddy of mine at church just got his license. And I feel like I don't want to hurt his feelings. So I'm going to give him my 400000 dollar asset. And he didn't know what the flip he's doing.


That's dumb. Don't do that.


Get a pro get somebody knows what they're doing. And so we've vetted these guys and they're the top people in their market. They get it done. They know what they're doing. It makes all the difference in the world. Jacob is in Chesapeake. Hi, Jacob. Welcome to The Dave Ramsey Show. Hey there. How are you doing? God, how can I help? So I recently lost my father, he passed away, and yes, unfortunately, he had left me some of his life insurance money and my wife and I were thinking about using it to to set up a college fund for my son, two months old.


So my question is, what do you think would be the best way to invest it and get the most return?


Hmm. I'm so sorry. How old was he? 55. Whoa, that's too soon, man. When did he pass? I passed on the twenty third of June just the other day, I hate that for minute. I'm sorry I was hard at. Thank you. I'm. Not the easiest. No, it's tough time. Yeah, well, how much money is involved? Forty four thousand six hundred and some change. And how old is your baby?


He he just turned two months. OK. All right, all right. What I would do is click Smart Vestor at Dave Ramsey Dotcom and find a smart Vesterbro pro in your area that will sit down with you.


I think when they run the calculations with you, you're going to find you don't need forty thousand dollars in your child's name for the kid to go to college. You can do it for less than that. So you're probably going to have a second question, which is what to do with the rest of the money. So let's just pretend and say 30000 dollars goes into Junior's name and that's going to be more than enough. And to answer your question in some good growth, stock mutual funds with 10 year or longer track records that so that you can count on how well they've managed the money over long periods of time because we're doing this for 20 years or 18 years here.


OK, and you're going to put it in a 529. You may have to move it in there in a couple of sections, some this year, some next year, that kind of thing. But your smart Vesterbro can walk you through how to do it, how to fund it and help you pick some good mutual funds and show you don't let them pick them. You put money in things you understand, OK? And then if there's another 15000 left over, what are you going to do with that?


If you've got any personal debt, you're going to clear that. Make sure you have your personal emergency fund in place. But funding your baby's college fund in your dad's memory with his life insurance is very poignant. I think he's in heaven smiling at you talking about this.


I agree.


And Jacob, don't rush too fast to try to solve this one. Yeah. Just make sure you honor your father's passing. Breathe. Take a breath. Take your time.


Take your time. You're OK. If it takes you six months to get this all worked out, it's going to be OK. You got time, but it's good. It's good way to love it. Good show, Jon. Well done.


That puts this hour that I Ramsey show in the books. We'll be back with you before you know it.


In the meantime, remember, there's ultimately only one way to financial piece, and that's to walk daily with the Prince of Peace. Christ Jesus.


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? What is the debt snowball? Find out more it. Dave Ramsey Dotcom smart speaker.


Money isn't the only thing we talk about around here. Get life changing advice on your career from my good friend and career expert Ken Coleman. Oh my Ken Coleman show. According to a recent Gallup poll, nearly 70 percent of Americans are disengaged at work. If you dread going into work every Monday morning and you're just trying to make it to the weekend, the Ken Coleman show is for you. Everyone has a sweet spot. Your sweet spot is at the intersection of your greatest talent and greatest passion.


We will help you discover what it is you were born to do, and then we'll help you create a plan to make your dream job a reality. You matter and you have what it takes. Join the conversation on the Ken Coleman show. Hear more from the Ramsey network, including the Ken Coleman Show. Wherever you listen to podcasts.


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.