Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios. It's the Dave Ramsey Show that has some cash is King and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. You jump in, we'll talk about your life in your money. Rachel Cruise is my co-host today. Ramsey personality number one, bestselling author and my daughter open phones, a triple eight eight two five five two two five.

That's triple eight eight two five five two two five.

Jessica starts off this hour in Tulsa, Oklahoma. Hi, Jessica. Welcome to The Dave Ramsey Show. Thank you so much for taking my call.

Dave and Rachel. I'm excited to be here, I'm sure. How can we help? I OK, a little background. My husband and I are in our early 30s. We are just finding Dave Ramsey. And by we I mean, we have thirty thousand in our savings and sixty five in retirement. And all of our debt is just in our mortgage, which is about one hundred and three thousand. So due to covid and now stay at home mom of three young kids.

So we're down to one income and I'm just trying to decide how do I get my husband to go intense just because we're down to one income and have never been here before and because it's just our mortgage, he kind of thinks it's fine, everything's great. There's no reason to just be crazy about it. But I've been hurt in the family and things. We cannot do that in seven years. So am I. Do I need to just break a little bit or do we just have it?

It's probably probably in between the two of you. Gizelle and Tense is no eating out, no restaurants, no life, because you're getting out of debt and baby steps one through three because you're broke and deeply in debt and you have to sacrifice and work like crazy to get out of debt. Once you have your emergency fund in place, your debt free, but your mortgage, you move on to baby steps four or five, six, a fifteen percent of your income going into retirement, five kids college and six is pay off the mortgage early.

That is not good. So intense. That isn't that is intentional, but not intentional.

And so, you know, I so I probably want him paying more attention than he is. And I want you to lighten up a little bit somewhere in between, actually what I'm saying. What do you think, Rachel?

Yeah, I mean, that's a good analysis, because now that you're down one income, Juska, it's naturally going to slow back. You guys have less money coming in. And so in order to do retirement, still in order to save for kids college and putting money towards that, there may not be a ton right at this moment to throw extra at the house depending on what you guys have.

What's he meant you're making? We bring home monthly around forty one hundred, all right. Yeah, you can put your 15 percent towards retirement, start something for the kids college and then any other money you can find in the budget. We're going to do some living with it. I mean, you need to buy that couch or upgrade that car or whatever. You pay cash for all that. So no more debt. And then we're going to go ahead and start anything extra.

We get we're going to throw at the house. You get a bonus, you get a little inheritance. Whatever it is, we throw it at the house or to throw it at the house. And most families will pay off that house in about seven or eight years, maybe nine. But we don't need to just say on his side, oh, it doesn't matter. Everybody has a mortgage now. Everybody's broke. You don't want to be everybody.

Exactly.

But on the other hand, you don't need to live on beans and rice and have no life at all. And everybody's miserable. So you can put five dollars more on the mortgage.

Sure. OK, we get a little room there. I think it's just getting him to the point of understanding that we don't have to be like everybody else. Well, you don't want to be broke.

70, 78 percent of Americans live paycheck to paycheck. And I would give you guys credit, though, Jessica, because you guys aren't normal right now. I mean, you have you have thirty thousand dollars in savings, no debt, but a mortgage. I mean, you you guys are not normal right now in a great way. So you guys have made great headway. But, yeah, it's just that that little extra at the at the mortgage.

So you're already weird.

You're just trying to keep trying to keep him from nodding off at the wheel.

He needs to keep driving, that's all. So you're in pretty good shape. You're in really good shape. But in terms of just the way you communicate through this, really all you need to ask for and expect is intentionality and not accepting.

Oh, well, everybody has a mortgage that's not OK on his side. He needs to be able to expect, well, we're going to save up and buy this item or do this thing and we're going to do some of these other goals.

And you know what I find to Jessica, for men specifically, when they see something visually, it changes the game a lot of times. So even just like taking your mortgage, putting it in an Excel sheet or do a mortgage calculator, but showing how much of the money is going to interest show him exactly like what is happening. And if you paid off your house in seven years versus 15, how much you're going to save and interest, how much extra you're going to have to go and invest and just do a little mapping out since you're the nerd and you probably like the stuff, just do OK for 15 years from today, if you're 30, 45 years old, if we still have the mortgage, here's where we'd be financially.

If we paid it off in seven years and we invested for seven years a mortgage payment, here's how much more we would have. So the visual standpoint for a lot of men helps when they see the math.

A great open phone is a triple eight eight two five five two two five. Lloyd is in Boise, Idaho. Hey, Lloyd, how are you?

I'm doing good. How about you, Dave and Rachel? Better than we deserve. What's up?

I want to see what you think about it. I want to upgrade my motor home, and I'm going to need probably around fifty thousand dollars to do that. I'm fifty eight. My wife is fifty seven. We're both retired. My net worth is about one point five and total and cash is about one point two. But I want to know what you thought about where I should take that money out of to on that motor home. And I was thinking of I have thirty three thousand checking.

I was going to take ten thousand out of there. I have twenty nine thousand in savings. I was going to take five thousand out of there and my wife's rothhaar she has seventy two thousand fifteen out there and take fifteen out of my IRA or Roth which is seventy eight thousand. I'd leave your IRAs alone, leave those alone, let them grow tax free.

There's other money just sitting there. But where would you take that money from then? Well, you you said that you said there's a meaning Poletown now that first three and after that you said there was another account that was sitting with cash rate.

Right, savings account for seventy nine thousand one, and like you said, that was twenty nine, okay. I mean, you can clean that one out. What's the what was the one that was 79?

Oh, that's the rough, all right. I want to touch that one. All right, so you got thirty nine, ten and twenty nine. So where are we going to get the other 20 without tapping into retirement? Well, that's what I was trying to wonder where we should how we should, you know, I thought you said you had a lot of cash. How much is it all tied up in retirement? The whole million. Seven?

No, no. About a million two is in retirement, tied up in retirement. OK, now we do have a joint account that has two hundred eighty four thousand. And what's that? That is just our regular account.

Your investment account is just an investment account. Yeah. Just it's not in a retirement fund of any kind. No, it's not. Well, you're some of that. Yeah, that's fine. Hey man, you did great. Go Harvey. You did it. Touchdown your millionaire seven. You did it. You worked your whole freakin life, man. Live like no one else and later buy an RV. There you go. That's what I mean.

Fifty thousand out of a million. Seven for a toy. You dadgum right. That's a good ratio. Do that. This is the Dave Ramsey Show. People all over the country are discovering a faith based and budget friendly way of meeting health care costs through Christian healthcare ministries, Christian health care ministries, or S.A.M., is a non-profit organization that helps members carry one another's burdens with health care expenses, and they have successfully shared each other's medical bills for nearly 40 years.

CFC H m is right for you by visiting S.H. Ministries. Doug c h. M is a proud sponsor of Dave Ramsey live events. Richard Kroos Ramsey, personality is my co-host today. This is The Dave Ramsey Show. We're glad you're with us. America open phones at eight eight eight two five five two two five. Merry Christmas to you. Deanna is with us from Denver, Colorado. Hi, Deanna. How are you? Hi, Dave.

Hi, Rachel. Nice to talk to you. Thanks for taking my call. Our pleasure. How can we help?

Well, I have about three hundred thousand in life insurance on myself. I'm a recent cancer survivor this year. Right now, there's no sign of the cancer. So that's great news. Yes, I have. Thank you. I have a cash and a whole life policy for sixty one thousand that has a cash value of sixty three hundred. Right now I'm trying to decide whether to cash it out and put it towards our debt snowball. It would move our debt free data about six months, but because of the cancer, me getting term life to replace it is not super great.

And I'm just wondering what I'm going to have is not gonna happen this year at any rate anyway. So you have how much life insurance on you, this 63 and you should 350. Yeah, with the sixty three, there's two. Ninety four. Without it, there's two. Thirty three.

OK, and what do you earn. I make about fifty three thousand.

OK, so you're a little bit underinsured either way. All right. And you're married? Yes, I am. And what does your husband make and how much insurance does he have? He makes 50000. And he has about four hundred and seventy five thousand on him.

So he's in better shape on his insurance.

Yeah, I wouldn't drop it right now, OK. I hate whole life and I know 99 percent of the time I would tell you to cash it out.

But, you know, we need to get you a get cancer further in the rearview mirror so we can get you more insurable and get you back up to about a half a million, a total at some point. And when you can do that reasonably within your budget, part of doing that will be to drop this.

OK, but as far as the safety, because you're just not going to get insurance for a little while. I mean, right now you're not it? I mean, you can get it, but it's the cost is going to be astronomical.

And Diana, your husband is has a whole life policy or is his term now his is term. OK. OK, I have to say for him to get out if that was whole life. That's a good point. Yeah. So you can call Zehnder Insurance and even talk, talk with one of the reps and start to get a feel for. You can even run an application in if you wanted to just to get a feel for what, because they'll bounce back and go, well, we can't cover you now, but we'll be able to cover you in 18 more months or in twenty four months.

The rate is going to drop in half of what it would be today or something like that. So you can kind of start planning the further cancer gets in your rear view mirror, the you know, the more likely you're going to get insurance and the less it's going to cost.

OK, well, thanks for your advice. We've paid off a lot in the last two years. Thanks to you guys. And just love the program, so thank you. Thank you.

We're proud of you. Well done it. We didn't pay it. Good job. And you beat cancer. That's even. Yeah. There's that little massage. Bigger than the debt. Much bigger, much bigger. Terrace's in Tampa, Florida. Hi, Theresa. How are you? Hi, I'm great, thank you and Rachel for taking my call. I appreciate it. Sure. How can we help? Oh, the question I work for a very small company.

There are seven employees, I'm a geriatric care manager and I make about 40000 a year. And I have a client that passed away a couple of months ago. And out of the blue, her family sent me a text written about me as a gift. They said it was a small token of their appreciation for taking care of their loved ones. And it's for five thousand dollars. That's a lot. That's a lot of money for me. But our company does not have a policy against gifts or about monetary gifts.

So my boss is trying to figure out what he wants me to do. I have sent an email to the person that gave it to me and said, thank you so very much. I really appreciate it. But, you know, I don't feel like I can accept this money, but they are insisting that I keep it good.

They should. And it's none of your business if he doesn't have a policy. Well, that's kind of my question I have and in my heart, if if they insist that I keep it, if I can't get out of it, I have definitely some charities that I wanted to go to and some things that I know were near and dear to my heart for her.

By Theresa. Yeah. No, no. You're supposed to have this money, you serve these people, and they were grateful. You're supposed to enjoy this money. You don't need to feel guilty, you didn't do anything wrong. Have you ever gone to a restaurant and left a tip? That was a really nice tip for somebody that gave you a great did a great job waiting on the table. As much as I can do. I know, but if you left if you left a nice tip where you were kind of like that was a good tip.

Yeah.

Did you want that person to feel guilty and go give it to a charity because they didn't deserve it? No, they deserved it. They waited on your table and did a good job and you were honoring them and it honored you to be able to do that, to give them that tip.

Don't mess this up. This was for you. You did great. This is an attagirl. Well, thank you for that. I just I, I not only feel guilty, I also my boss has been kind of mentioning different ways she thinks that ought to be spent.

I don't care what he thinks. It's not his murder. It's not her money. It was made out to you right from this family. Yes. OK, now, if I am your boss, if I am your boss, I am going to be not with you. But this raises a question in the business that you all are in. If I'm leading this organization, I think he should or she should put a policy in place that limits gifts because we don't want the caregivers that people are paying for with our company to get wrong motivations where they try to snuggle up with the person they're taking care of in order to get money.

And we don't want this to turn toxic. You didn't do that.

But if I'm in your business, I want to make sure the caregivers are not being toxic in order to, you know, try to get some sugar daddy. And the boss's problem, though. Yeah, that and that's their problem. And this just makes them recognize that. But they don't get a vote. This is your money.

Absolutely. I mean, and I want you to enjoy it.

If you want to give a little bit of it back, I'll give you a maxim. No more than five hundred dollars. The other 4500 dollars has to be spent to further your life and your income. This was for you, Teresa. Part of part of the art of giving is also learning to receive. And it's very hard for some folks to receive, but this is for you, please don't give it away. It is dishonouring to the people that sent it to you, if they wanted it to go to the ministry that support a ministry, that the person that died, they would have given it to that ministry.

They didn't give it to them.

They give it to you. And considering they wrote you a check thanking you, they probably have been giving elsewhere. They're probably a family of givers. And they probably said, well, you took care of my mom, that my mom loved Teresa. She broke your heart, that that woman you took care of probably talked about you, Teresa, all the time to her family when she passed. They said, we want to bless Teresa because she blessed us.

So you're good.

You're good. You're good. That's it. And we've had the pleasure as Ramses to do that kind of thing many times. And we fully expect it to go to you.

And, you know, if I if I were on this family's side, I would be telling you the exact same thing. And by the way, they are telling you the exact same things. I keep telling you. You keep it.

And no, it's not your bosses. And no, your boss doesn't get a vote. If your boss wants to put a policy in place for future things, then that's OK.

They can do that. And that might not be a bad idea.

And to kind of help ease the the pain for you to ease of taking this five thousand dollars, you know, we will say, like, if someone gets a big inheritance or a grandparent leaves a chunk of money to a grand son or granddaughter, whatever the case says, we do say, yeah, there's a level of you can honor their legacy really well and use this money maybe to pay off debt or to save or or to do something great to further your life.

You can't just go spend it. I don't care. But for you to ease that a little bit, maybe say, you know, I'm going to help pay down my car and start work my way to get out of debt, whatever the case is, whatever you do with it, think of the lady that you cared for. Is she smiling when you're doing that with that money and then, you know, you're honoring her legacy. She's in heaven watching you.

And she she's smiling. She probably is already smiling about this conversation. You're awesome, Tracy. You're a sweet, sweet heart. Oh, this is the Dave Ramsey Show. Rachel Cruze Ramsey personality is my co-host this hour, open phones at eight eight two five five two two five. You jump in, we'll talk about your life and your money. Twenty twenty one is right around the corner. Thank God this new year, take time to understand yourself and learn how to make healthy money decisions.

Rachel Cruze, my co-host, is going to help you unlock the psychology, the strengths, the challenges that come with each and the brand new seven. Money tendencies found in her new book, No Yourself Know Your Money. I was trying to figure out what that said, OK, and you want to preorder it, because if you preorder it before January the 4th, you can get a hundred and fifty dollars in free gifts. So you got about a week and you get this done.

So also, while you're there at Dave Ramsey dot com, check out the 90 percent off a lot of things. There are Green Monday sale, lots of ten dollar items, including Rachel Contentment Journal, which is now ten dollars. Her former New York Times best selling books are number one. Best sellers are ten dollars. My books are ten dollars. So check it out online at Dave Ramsey dot com. Get the new book and get the get the ones that have been out a while for ten bucks each.

Lots of bargains. There are lots of things that you can do. Open phones at eight eight two five five two two five. Colorado Springs. Michelle is with us. Hi, Michelle. How are you? I'm doing well, thank you for taking my call. Sure. How can I help? So my husband and I are in small business for a few years and a business mentor has been mentioning having key man insurance for our business on the case of our stuff.

Wanted to get your opinion on that or if there's anything else that you would suggest that's in our wills regarding our business. Are you the sole owner?

Yes, we own the business. OK, well, key man insurance is typically used to buy a partner out. That's the that's the most common use for it, the other time you would use it is just to replace the the talent that is gone when the person passes away, the things that they're able to do that are unique to them. And so it's going to leave a gaping hole. And so, as an example, if you are driving the business and you're making the business run and you not being there, it's going to walk with a limp for a while, then, yeah, you might want to put some key man on you.

OK, all right, I but I had I've done that a time or two here where I had some a particular person that was at the stage of business we were in, that if they had passed away during that, you know, three year period of time or something, that it would have really left us.

We would have been in a mess because we were building the whole thing around that. And I have covered them for that. And I have kept some key man on me just to make sure something happened to me, that it would backfill some of the until the business got to where it can run without me, which it is now. It's easily running without me these days. But but back in the day when it was all Dave dependant, you know, then I carried some key man.

Then you do not use your whole life life insurance for this used term life insurance.

So what kind of business is it? We do commercial cleaning, so we feel like they're all OK. OK, so what would happen to the business if your husband passed away? Oh, that's that's the problem. He is the key man. Yeah, OK. So what does he do that makes him Shoki? He is basically the operations manager. I mean, he, he and everything, I mean, he is supposed to do everything go OK.

And what's your what's your top line? What's your grocery in a year? Oh, my goodness. With 300, OK? All right, you know, I might put 100 on him. Or something like that to patch you through a third of a year, maybe 200, even patch you through a half of a year, but, you know, if he passes away, you're either going to turn around, sell this thing, or you're going put an option manager in place to replace his day to day activities.

Right. And so you're just you would you just do you would just put you know, you just need to stop Gap because you if you if you replace the manager within 30 days of him passing in, they're competent. You're not going to lose much revenue. But just to make sure I carry a couple of hundred on him, one extra, that wouldn't be a bad idea. It wouldn't be the end of the world. And that way you can cover for some lost revenue and maybe even a signing bonus to get a good ops manager in there.

And I'll tell you what a lot of people do in your situation, too.

If that were to come up, they put an option manager in there with the plan that that person is going to buy the business from you because that's your exit strategy that. So we see that a lot as well. And we're working with our leadership clients. Good question. Thank you for joining us. Melanie is in Portland, Oregon. Hi, Melanie. How are you?

Hi. And I'm doing great. It's awesome to be able to talk to you. You too. What's up? Well, my husband and I would like to know your opinion on whether we should pay off our house now or put our money into retirement in the kids college. So this is what we've got. He just got a bonus yesterday. Okay, that will allow us could allow us to pay off the house and still have six months of emergency fund left.

He should be. He has not been paying the fifty total 15 percent into retirement. We have no college funds for our kids who are ages two to 12. What's your household income? He works about ninety four thousand.

And what's the bonus?

It was it's about 17000. We've got total of the savings would be about one hundred nineteen thousand in several different bank accounts that we have that we could use in the house. We owe about sixty one thousand on it from. We 64000, you already have enough to pay off the house before that, we have enough to pay off before the bombing. Yes, we have, yes. So I haven't decided on this.

I think it because I'm risk averse and my husband does have some health problems that risk averse off your house.

OK, because you don't want a mortgage. Yeah, well, that's that's my thought is that is he he doesn't have as much retirement as he wants. We have nothing for. So instead of sitting in a bank account.

Yeah, we've kind of dropped the ball the last couple of years. He just got this new job about a year ago, so we've not been making ninety four thousand for a long time. And there's this new job just happened about a year ago. So we haven't quite adjusted to the additional income.

Yeah, yeah, yeah. If I was part of yes, I woke up in your shoes, I'd pay off the house, go and pay it off, OK.

Well that was, that was my opinion. OK, yeah.

I would do it. Make sure that you still have and I would have for you six months worth of expenses in the bank. You guys have that in addition, right. Yes. Yep. Or that. But that would be out of the 119. So so we say three to six months of expenses. I would go to six because of his health problems, all of that. And I just like having extra money there. Just feels good. The cash is there.

So beyond that, you guys do need to do need to take your 15 percent of your income of his income. If you're not working into retirement, that needs to be a discipline. You need to be doing that. And then anything extra that you guys have after you've paid off the house after the six months of expenses, is there throw some of the kids college? I'd go talk to a smart Vesterbro, look at NASA, look at a nine five twenty nine option and start that as well.

But you guys need to be disciplined and that for K that you're making a year, 15 percent of that goes into retirement.

OK, great. OK, well thank you so much. Wait, wait, wait, wait, wait, wait. Oh yeah. In addition.

Oh he's coming in. Oh, you've been sloppy. Yes, you cannot take part of Rachel's advice. It'll be bad advice. You have to take the whole thing. It is time to take this blessing of this job and this money. And be very intentional with it. It's been lazy, it's been sitting in a lazy bank account, it's time to put the whip on it and make it work, pay off the house, start the 15 percent with a smart Vesterbro pro and start the kid's college by the end of January.

You have an assignment by the end of January. No excuses. Put that money to work. It is sitting over there being lazy and you allowed it. Don't allow it to be lazy. Put the whip on it. This is the Dave Ramsey Show. How would you like to make your money finally behave like we were talking about with her? You know, you make it go and do what it's supposed to do because you have an exact plan, a clear path, and you know exactly what to do, when to do it.

And then you go do it because you've got cheerleaders in your corner, coaches cheering you on. You got people telling you to do it right. Don't do it.

Don't go left, go right, showing you exactly what to do. This is what happens when you get into Ramsey. Plus, it's our step by step money plan that'll help you pay off your debt really fast, faster than maybe you ever dreamed. And you can start spending and saving then how you want to because you're on the freaking payments. You'll learn practical ways to pay off more debt and save for emergencies.

You'll plan your spending in the world's best budgeting app, every dollar, and you'll track your progress. You can get a free trial to Ramsey, plus all you got to do to get twenty twenty one rocking and get your reset, get things started. I mean, after this year you need to get started. Right, Ramsey Plus for the free trial, just text the word trial. Two three three seven eight nine text trial two three three seven eight nine.

Mike is in Rock Hill, South Carolina. Hey, Mike, welcome to The Dave Ramsey Show.

Hey, Dave, how are you? Better than I deserve. What's up?

I feel like we have hit a sort of a brick wall. We are trying to build a house and are having no luck with our credit score so far.

OK, let's talk to some folks at Churchill and according to them, they go to local lenders for construction loans. Yeah, and every local lender requires a credit score to get started, even though we have at least 20 percent down. It's not more than that. And I just don't know. Try to have you try to credit union. I have I work with my credit union. I've been with since I was born and they do manual underwriting, but they tell me they have to have a credit score to get started.

Bull, and then they go from there, I'm challenge in that they don't have to because they're following that loan, they're not selling that loan to anyone. That's just an underling. You need to get to a manager, a senior, the president of the credit union, depending on what size a credit union is, they do not need a credit score to make a construction loan. That's absolutely asinine.

I don't believe it. I would bust up on some people. Now, you know, Bank of America is not going to make you a construction loan without a credit score. Don't let me down. But I'm not doing business with those doofuses anyway. So they know, but your local bank. I mean, listen, here's the thing, if you're dealing with a mortgage like a Fannie Mae mortgage, you can get that manually underwritten. But most of the mortgage companies don't know how to do it because Fannie Mae requires a credit score to package them together or properly done manual underwriting, which not many people other than Churchill know how to do.

OK, so that you will run into problems there. And there's a valid reason for that because they're packaging those loans together. They don't keep those loans. They sell them. And in order to sell them, they've got to be packaged a certain way. Does that make sense?

Yes. And if the opposite of selling them in this business is called portfolio, the loan, meaning the bank keeps the loan in-house, the credit union is portfolio, this construction loan or the local bank is either one. And so they can they can make up whatever rules they want to make up.

There is absolutely no pressure on them from an outside force of any kind that's requiring a credit score.

And so it's just a dumb but policy that you got to bust up into. Meaning you've got to get some I use a brain, I've been with you my whole freaking life since I was born and I got 20 percent down and I've got the permanent mortgage set up to take you take out the construction loan. You're only going to have the loan on the books while the house is being built. When it's completed, the mortgage is sitting over here already pre-approved.

The take out letter is in my hand to take out the construction loan. And so this is almost a no risk for you. You know me, you know my income, you know, my net worth of my other stuff, or I can show it all to you.

And so the credit scores are completely bogus. Nonrelated issue.

You follow me? Yes, so that's how I'm talking to the president of the credit union or the manager of whatever, or I don't know how big a credit union this is, but a lot of credit unions, the small enough that the president so you can end up talking to, which is fine and, you know, it's just asinine. And so this is one of those things. You just challenged the policy and you just say that, no, it's not OK, it's not OK that you're treating me a customer that way as if I somehow didn't pay my bills.

And they do not. If their portfolio the loan if a bank is keeping the loan in house, the bank can completely make up whatever rules it wants to make up or waive any rules it wants to waive because they're keeping the loan. It's just like if I'm loaning you money, I can make up whatever rules I want to make up. And if I go, well, you don't have a credit score, but you've got all this other stuff.

I don't need a credit score, OK? You know, and that's all we're talking about here.

So but yeah, you run into people who have forgotten how to think, and sometimes we have to remind them, well, that's a hard thing and just challenging the industry. Right. And so when you don't have a credit score because you've gotten yourself out of debt and it's been a long enough time that it's not there, there are going to be things, insurance, renting an apartment under a mortgage construction loan, all those things you can run up against things because the industry has been so set.

But there are ways around it all.

Yeah, I mean, Anthony stuff the other day, he's got it on YouTube and called 15 apartment complexes and just ask the question. He said, I'm moving from out of town. I'm just getting started moving out of my parent's house. I don't have a credit score. Well, you rent to me and out of 15, 12 said they would. Oh, there you go. With a deposit with them, you know, and he said there's a couple of them had an extra deposit if you didn't.

Yeah. And a couple of them were just. No, it's no problem. There's no problem at all.

If you got your deposit and you got you know, they have to have proof of income.

You have to have a job. Yes. Yes.

But, you know, normal stuff that department's going to look at. But this idea that no apartments or rent to your credit score, he got 12 out of 15. That would and he didn't say I'm Anthony O'Neal. He just called and said, hey, I'm just checking. I'm coming out. I'm moving from out of town. And he just and he put it all on YouTube so you can pull it up on the channel and see that somebody says, oh, you have to have a credit score, we're going to rent apartment.

No, you don't owe me on 12 out of 15 dentists agree complexes agree 12 to 13 apartment complexes agree. All right. Up next is going to be Steve.

Steve is in Phoenix. Hi, Steve. How are you? All right, David, I appreciate you taking my call. Sure. How can I help? Yes, I have a mortgage with a principal and interest of two hundred and seventy seven thousand dollars, and I have one point six million dollars in my four one. Kay. And I was wondering if I should pull that money out in one lump sum or spread it across a couple years for tax purposes to pay off my mortgage.

How old are you? Sixty six, OK? You could sit down with your tax preparer and decide if you want to do it over two or three years just to not bump up a tax bracket, but I think you're going to bump up a tax bracket anyway, is my guess. I mean, you could look at tax planning this and make it doing it the most tax efficient way.

I got to tell you, you've worked your whole life and I'm guessing you didn't it did not inherit this money because it's in a 401k. Right. That is correct. And you're 66 years old and you got a million seven, way to go. Congratulations. I think you worked your whole life to have more peace than you've got with a mortgage, so regardless of the tax situation, if I were in your shoes, I'd probably just pay it off.

I want to be out of debt and I'm going to pay some taxes to do that because this is a taxable account when you cash out a 401k traditional. And so to get 277 out, you're probably going to take out 377, something like that. And so your net worth is not going to change one penny. It's going to be exactly the same. The only difference is you'll have more equity in the house and less equity in your 401k.

So I have one point three and still have one point three in the 401k. Yeah, yeah, exactly. So you're still going to be a millionaire and four one K a loan. Not to mention you're paid for your house.

I want the piece of it paid for house and it just as I there's a few things I've done in my life that compare with the day I paid off my mortgage in the financial parts of my life. You take your shoes off, walk through the backyard, the grass just feels different.

The borrower is slave to the lender and I know you've got the money and now you can pay it off anytime you want.

So. So my answer to that is do it. Yeah, I would do it. Good question, sir.

Thank you. And congratulations on being an everyday millionaire. You're what makes America great. You guys people like that guy right there. They're everywhere. They're all over America and they're real quiet. Hardly anybody knows they're there. There's about 12 million guys just like him and her and gals like him and her. They're all over the place that puts us out the Dave Ramsey Show in the books, thanks to James Childs, our producer, Kelly Daniel, our associate producer and phone screener.

I am Dave Ramsey. Your host will be back. This is James Childs, producer of The Dave Ramsey Show, you can listen to Dave Rachel Cruze, Chris Hogan for the rest of the Ramsey network anywhere with the Ramsey network app on your smartphone. Catch all of our full shows, browse by topic or send clips to your friends, get to the App Store and download the feel like you're in a rut and living life, just going through the motions, build confidence in yourself and learn to trust the God who created you.

Check out the Kristy Wright Show, where Kristi inspires you to break through your limitations and create the life you're proud to live. Hey, all, I'm Kristy, right? You know, it's so easy to feel stuck. You live life just going through the motions, doing dishes, doing laundry, carpool lines and a whole list of commitments that bring you no joy. Why do we live like that? That's why I want you to check out the Kristy Right show.

Each episode will help you build confidence in yourself and the God that created. You hear more from the Ramsey network, including the Kristy Wright Show wherever you listen to podcast.

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.