Live from the headquarters of Ramsey Solutions, broadcasting from the Dollars Car Rental Studios, it's the Dave Ramsey Show where debt is dumb. Cash is king and a paid off home mortgage has taken the place of the BMW as the status symbol of choice. Chris Hogan Ramsey, personality number one, best selling author, is my co-host. Today, as we answer your questions about your life and your money, open phones at eight eight two five five two two five.

Chris, before we jump off the phones, I want to just take a minute and say thank you to our good friends, Pastor Craig and Amy Rochelle Rochelle at a life church and the whole team at Life Church and Oklahoma City. We were there yesterday all day doing doing pretape some things.

And then last night at our reset event from Oklahoma City last night, Craig spoke and you and Rachel and I and about two hundred and forty thousand people were registered to watch it. It was the number two thing on YouTube in the world. Hmm.

The only thing ahead of us on YouTube last night was the impeachment hearings. And so you've got like one negative thing going on and one positive, one positive.

That's where they're helping people.

And the all of the speakers were on their A game. The delivery was incredible.

Craig's talk was off the chain and the team behind the scenes, our team and technical team and the guys at Life Church to be able to pull something like that off for two hundred thousand plus streams going through Facebook, YouTube, anything else out there? It was it was incredible. It really was. And, you know, in this time right now that we have going on, people need hope. They need a plan that actually works. And I was just excited to be a part of it.

And like you said, that church and the whole entire team there is absolutely just they have the heart to serve. And so it was just a great opportunity to be there with them and to help people.

Well, they're not only one of the largest churches in America, but they if not the largest church in America.

But their technical scale is world class.

I mean, this is that these are the folks that put out the you version Bible app that has a half a billion people around the world using it with a B and, you know, I mean, that's pretty crazy. And and on top of all of that talent and size and scale, there is not an icky person in the building. No, I've known Greg Craig for twenty plus years since he was doing the thing out of his garage. And it is just grown leaps and bounds.

And he has personally grown through that time and. Just incredibly humble and loving, yeah, serving people, yeah, that's the word that I kept thinking as he was hanging out, just talking to us, just his heart.

His heart is to serve people and then the whole team, the whole team, everyone. Now, not to mention they've got like a command center.

So I walk by that train and I was like, is this this looks like you're making some statement. Yeah. Let me go in and turn some knobs. And I didn't because I don't know what I'm doing.

Fox Fox Business wishes they had to set up like that. It's incredible. So this event was obviously a blast. I was there. I had a chance to be a part of it. Can people watch this, Dave, after the fact? Yeah.

Yeah, we're going to we're going to we were running it live, of course, last night. And I think the guys are posting it today. OK, where you can go back, reset 20, 21, you know, and it's time to get a reset. Time to get a fresh start. It's time after twenty twenty to put that in your rearview mirror. And that was our messages and showing you how to do that from each of our perspectives.

Yeah.

And from the actual thing, you know, the actual delivery of the content, the but the tactical things to go take away and do. And of course we're running a special on Ramsey plus a bundle associated with it. That was incredible. And thousands and thousands and thousands of people bought that last night.

You know, and and I want to tell you, I'm going to I'm going to put out a tease here. And trust me, it will not let you down. Daves take on the three little pigs. I'm going to tell you, but I want you to go watch this and listen to it, because it is absolutely hilarious. But it's on point. Dave's take on the three little pigs reset 20/20. You need to go watch it and then I want you to tweet me or post on my Instagram and tell me what you thought, because I loved that story.

I really did our modified version.

Did you need to watch it, though? It is. And it's so applicable right now.

But I end up with more children's books around here than anything else.

I mean, with the tortoises, their three little you know, we just bring out all the bring out all the old they are the old time hit from the fairy tales or whatever.

But seriously, guys, thank you guys. All of you. That turned out hundreds of thousands of you watching that last night. It'll be by the end of the week. It'll be well over a million folks have viewed that. And it's just it was an incredible thing to be part of and to be able to put out there at a time when folks need something to focus on that is not crap out of Washington or not crap out of, you know, public shaming for this or that.

Yeah. And of course, there's always, you know, one or two negative ninnis out there. But there that's just part of it. I mean, if you do anything of scale, you can expect the morons to show up. That's part of who shows up. So.

Oh, yeah, if you get out of bed and leave your house, you're going to have somebody that didn't like that. Oh, yeah. They didn't like the way you walked out your front door because you slammed your door.

Dave Ramsey, one way to avoid criticism. Say nothing, do nothing and being nothing. These are not options for us. It rooms, you know, so will the criticisms part of the table stakes. It's part of the permission.

It's part of the part of the sign up fee to be me. And I signed up. So bring it bring it in the meantime, hundreds of thousands now, well over a million people are getting help for free.

Yeah. And somebody figure out a way to bitch about that.

OK, so really unbelievable.

But it was an incredible, incredible thing.

And I just I mean, I have gotten to do a lot of major events in arenas and other things that we have put on or I have spoken at large things, you know, ten, twenty thousand people and live in an audience, that kind of thing, over the years.

And those are it's a it's a it's an experience to do that kind of a thing. But this was, you know, a fairly small audience. You know, it's not a huge auditorium, number one. Number two, with social distancing and the other things that we abided by, the local government guidelines and everything.

And, you know, but but the number of the size of this online audience for this thing was it was earth changing.

Yeah, it is pretty amazing. So thank you guys, all of you that tuned in. We appreciate it. If you haven't tuned in like we're going to post it and you'll be able to jump on Dave Ramsey like and figure out a way to watch it somewhere. I don't even know how that works right now.

Dave Ramsey, dot com slash research, is telling me that out of the booth, yeah, so and Hogan's shopping story, just to hear Hogan talk about him grocery shopping and of the visual of that that goes into your head, that will never leave.

It's worth watching just for that. But the content was awesome.

And again, you'll leave. It'll be worth the hour and a half hour and 45 minutes. That takes you to watch and it'll be worth your time and again, didn't it? Doesn't cost you a thing. Dave Ramsey, dot com slash reset.

And we want you guys to reset. We want you to win. We want you to make choices where you're not vulnerable to everything that is going on out there. There's a sections of this nation, portions of the spaces out there that have completely lost their freaking minds. And the only way you can insulate yourself from the wackiness is to is to follow God's principles of handling money. And when you do, you put yourself in a position to be insulated.

That's right. And that's what we're teaching you to do. The good times and bad times. These same principles will cause you to prosper. This is the Dave Ramsey Show. At Takeover's, we believe a great pair of cowboy boots won't just make you look taller, they'll give you the confidence boost that'll make you feel taller to attack us. We make traditional cowboy boots for men and women that look great and feel great so you can walk into a big meeting or out on the town with comfort and confidence.

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Bazargan Ramsey personality is my co-host today, open phones, a triple eight eight two five five two two five. David is in Washington, D.C.. Hi, David. Welcome to The Dave Ramsey Show.

Hi, gentlemen. Thank you very much for taking my call. Sure. What's up? I have a question. My wife and I have a 529 plan for our son in the state of Virginia, and he's got one and a half years left until leaving for college. We think it's pretty much fully funded. So we're only putting small amounts into it now. But we're concerned that maybe our distributions are a little too aggressive now. So we've got like 78 percent in stocks, 18 percent in bonds, four percent in cash.

And we wanted to just kind of know, should we back off of that a little either now or next year or as we head into college?

How much is in there? We have in there right now 160, 5000. OK, well done, congratulations, that's fine.

That is great. Very fortunate.

And when you say stocks, bonds and cash you're talking about, you've got it's a mutual fund selection. You're not in individual stocks or bonds.

That's correct. We have mutual funds through American funds.

OK, yes. Well, here's the thing. Bonds have an inverse relationship, as you probably know, David, to the interest rate market.

So as interest rates go down, bonds, prices go up.

Interest rates have been unbelievably low for an unbelievably long period of time, there's not a lot of places they're going to go but up. In terms of major moves in interest rates in the next five years, OK, while your kids are in school, and so while bonds are typically pitched, if you read the standard financial planning writing, people pitch bonds as a stabilizer in a portfolio in an extended low interest rate environment.

My personal conviction is that they are a destabilizer because I think as interest rates tick up, those bond prices are going to go down. You're gonna lose your butt on that part of the portfolio.

And so it's what it's supposed to be more safe than the than the stocks.

I don't think it is in this current world personally. So you can do what you want to do. But you called us. So that's an opinion. You weren't probably worth what you paid for it. I don't.

Consequently, I don't own any bonds right now, but I never really use bonds much in my investing at all unless they're in a balanced fund or something like that.

But so then the question just becomes, do you want to be in cash or do you want to be in a growth stock type mutual funds for the next three and a half, four and a half years? Because the bulk the a piece of that money's not going to come out for five, four, four years.

Right? Right. Correct. You know, I'm probably going to stay depending on how worried you are about the stock market.

I'm going to the less worried you are. I'm a stay heavy, heavy, heavy in the in the in the growth stock, mutual funds and a little bit of cash.

And the more worried you are, the more I would be about cash.

But I don't think it's unsophisticated. It's a matter of fact. It's just a different way of thinking.

It's a different critical thinking set to avoid bonds, number one. And number two, to say I the risk represented by the market is not so substantial on stocks that it's going to drive me crazy.

Well, and the mindset, Dave, I think this year or this past year, I keep to keep going backwards here. The past year has shown us as we looked at what happened to the stock market in March and then how it rebounded and came back in October, you know, for us to make sure that we remember it's the long range view. Right. And I think that is that I'm going to keep beating that drum roll it, ride the roller coaster, long range view.

Look at what's going on. Don't listen to what people are saying. Watch what's happening.

Yeah, I mean, on the short term, the only thing that drives me for the stock market's sake more than anything else is just the level of political unrest. Oh, I agree. That's a short term.

I mean, if you believe that the political unrest is going to lead to the nation unraveling, then you'd get out of the stock market completely.

I don't believe that.

But the stock market does not like an unpredictable world and it likes a predictable world, even if it's a liberal world or conservative world. Right. A Democrat or a Republican, it just let me know what it is and I can predict it. And when things aren't predictable.

So if a war springs up across the world, a geopolitical, it doesn't like that this crap going on in Washington on both sides of the aisle. Right. Is astronomically crazy. When the cities were burning last summer. Right. Without getting into reasons or whether agreement or anything like that, the stock market doesn't like it, right?

Well, it's a living, breathing thing, as you've told people for years. And because it's living and breathing, it's got feelings. And so the stock market has feelings. And so imagine if too much unrest or too much this or that happens. There is going to be a reflection at some point.

Yeah, it's when people are worried, it shows up. Right. That's really what it comes down to because it depends on what they're worried about. So anyway, all that to say, David, I personally, if you if it was my kid, I would be heavy in stocks. I'd be light to non and bonds.

And to the extent you're worried, I would crank up my percentage in cash to the extent you're worried about the next two years of volatility.

But if the thing goes down 10 percent, that would be almost big. One of the biggest drops in twelve months in the history of the stock market. If it went down 10 percent and that would be sixteen thousand dollars. Doesn't keep your kid from going to school. No. So you're not really playing with huge, huge risk. You're not going to have a situation where you lose fifty percent of your money. That has occurred only two times in the entire history of the stock market.

And I do not see that item on the horizon. It could be there, but I don't see it.

Well, and let's talk real quick here about obviously with student education and going to college, you've got one hundred sixty five thousand that you put away. You know, as you start to look in state at ten thousand a year, you've covered out-of-state tuition is 22000 a year and private tuition is around thirty six thousand. So, you know, you look at the dollar amount that you all have set aside, David, you all have done a fantastic job of being prepared.

Now, do finish the job, I guess, is what I'd say. Help your young person make a smart decision and don't pick a school based on a sports team and don't pick something based on a mascot. Let's pick on pick something that is fiscally. Possible that you could pay cash for how you go, Danielle is with us in Indianapolis. Hi, Danielle, how are you? I'm Ensign, Mr. Hogan, how are you guys? Great, how can we help?

So my fiancee and I have been listening to your show for a month or two now, and we'd like your advice on a student loan repayment decision. So we're getting married this May after I graduate from college and congratulations. Graduating debt free. And so I'll be graduating debt free as I've already paid off around eight thousand dollars in federal student loans from social funds that I've been awarded during the past two years. And my fiancee will graduate college later in December of this year and has around nine thousand dollars of federal unsubsidized and on debt and about ten thousand of private debt owed to his parents.

I would like to pay off his federal student loan debt now so that it wouldn't accrue any more interest before he graduates and to just get it off of our shoulders as we prepare for marriage. But he wants to wait until after he graduates in December to pay the loan.

So what do you guys think that we should do that your baby's tuition over here? I've felt that I've been around for 15 years. I love that you have been intentional and that you're going to graduate debt free. This is just impressive. Did you pay for it or did your parents pay for. I paid for it and I received a scholarship that's five thousand dollars for the past two years, so that helped help me to pay for it.

Well, I'm proud of you. And I would say this and I'm going to double over this love that you've joined and you're listening to this love that you guys had at a young age or talking about this. But I'm going to tell you something. You know, first and foremost, I wouldn't be doing anything for his debt until you guys are actually married. Until he says I do. And you do. And we do, then you can start to have a plan together.

But prior to that, you need to stay focused on what it is you're doing. He needs to come up with a plan to try to attack that before you get married.

You know, after marriage, we can do a lot of stuff. OK, so, I mean, say you wait until you get married and may.

Yeah, well, you knew that either way, but you said in May then do you pay it off or do you wait till December? It doesn't matter if you've got the money. That's fine after marriage. Knock it out then. Primary concern I've got is that he finishes with no additional debt. It'd be a shame to pay it off and then not have the cash for him to finish that last semester in the fall. So if you've got that set up and you guys want to go ahead and start attacking it, there's not a wrong answer.

You're both of these are smart choices. It's a smart or be smart. So but all of it comes after May. This is the Dave Ramsey Show. Chris Hougan Ramsey personality is my co-host today, open phones, a triple eight eight two five five two two five. If there's one thing we learned from last year about investing, you cannot invest alone.

You absolutely need someone in your life who knows the market better than you and helps you make smart decisions, teaches you as you're responding to all this crazy out there.

Listen, I love DIY do it yourself, but I don't pull my own teeth.

I don't even work on my own cars anymore. Do it yourself. Investors do the same thing. You pull your own teeth, you don't make a mistake.

You lack the experience to make good investing decisions. You invest in the wrong things. You get caught up in trends. You read some stupid article on the Internet and there is a lot of stupid articles on the Internet.

You make rookie mistakes. Mm. And then a year like twenty twenty comes along and all your mistakes are revealed. As Warren Buffett says, you can tell he was skinny dipping. When the tide goes out, you see the mistakes. It's a bad idea. It is. And so trust me, you don't need all of this. Last year, let last year stay in the past, say never again. Let your retirement be at the mercy of a dumpster fire.

Text to the word invest. Get with one of our smart Vesterbro text. Invest two three three seven eight nine text. Invest two three seven eighty nine. Paul is with us from Grand Rapids, Michigan. Hey Paul, welcome to the Dave Ramsey Show.

Hi, Dave and Chris. First, I'd like to say I really enjoyed your life presentation last minute. Oh, thank you. And I want to give you a little background about myself. I'm an everyday millionaire, my wife and I should say, way to go. We just kind of live a conservative life. We don't want the best for content with what we have. We drive two small cars when we could afford a big SUV. We just we're just content people.

So we've been able to save because that's good. And my question is, my question is and right now, I'm retired a year ago and I've got money and a traditional IRAs. And then the Roth IRA is to the tune of about five hundred thousand dollars for each one. Now, I know the R&D is coming up on in seventy one right now on sixty five. But it makes sense to. Convert the traditional to the broth or just say we're going to have.

Well, obviously, as you can, do, you have extra cash to convert it and pay the taxes with. Yeah, I have four hundred thousand dollars on top of what I have here. OK, and just miscellaneous cash.

So obviously if you if you roll 500 into a Roth, it's all becomes taxable.

And so you're going to create. Yeah, you're going to create taxes of, what, 100, 150, something like that out of that.

And if you want to do that and then not that that does away with the RMV issue, because my guess is part of what's bothering you is you don't need any of this money.

You want to let it roll. So basically hoping to pass it on to my children and it might be less necessary to do that if Ross agreed. Mm hmm. Agree. It just hurts. It just hurts to think about the taxes on that. But the math will work out this way.

You will recoup. At about the 10 year mark. And so if you're not that 500, that's in the traditional if we say, all right, today we roll it 10 years from today, you'll be glad you did.

Prior to that, you won't be you would have been rather you'd have been better off to have left it in there and pay the taxes on the growth, the continued growth, and pay taxes on whatever you have to draw down on R&D as you pull it out. And so that.

You know that if your guys if you guys are in good health, I'm probably rolling it, but because basically that extra tax money you pay has the same exact effect mathematically as having invested that money.

If you don't reduce the 500 by the tax and you allow the whole 500 to stay right in the Roth, it has the same effect of putting another 150 into a Roth or whatever your tax bill is to have you calculated the tax bill.

Well, not really, but I think we're probably in the 20 percent, 25 percent range. OK, so then 100, 110 is what we're talking about.

And, you know, what could happen is you might it might cause bracket creep. If you do it all in one year, you may want to straddle a calendar year, may want to do some this year, sometime in 22 to, you know, get what your tax guy and tax person and run some calculations on when you move it.

But overall, if you guys are healthy, I'm moving it.

Yeah. Now, that's good and Paul, I'm going to tell you this, I love the fact that you have this legacy mindset. You want to pass them on to your kids about what you and your wife to enjoy it. Like, I want you guys to go do some stuff, take some trips, get you an RV. But, you know, I mean, I want you to start to live and enjoy this because you all have been very intentional.

You've worked very hard to reach every day millionaire status. Congratulations. Your hard work and diligence and consistency paid off.

Yeah, well done. Very, very well done. Sounds like the house, depending on what the house is, always two million dollar net worth. Oh, easy. Yeah, well done. That's pretty incredible. And you know, it's not your nature to be frivolous with money.

That's not what Chris is suggesting. But you did work. You know, you did live like no one else.

So now you should live and give like no one else. And give portion is part of your legacy that you're planning with the kids and all of that. But I don't want you to, you know, each day old tuna fishing day old bread so the kids get four dollars more.

Yeah, no, I to me, I think that's ridiculous. So it's important. But yeah, definitely talk to a tax professional. And Dave, the thought of being able to straddled over the year and spread it out, that's very wise as well as your investment professional. So you can know exactly where you are, the timing and what to do. And also real quick, as we talk so much about smart VESTER pros, you all, I really and truly want you to make sure you get connected with one today.

If you're not in these times with all the stuff that's going on, it is imperative that you have someone that you can reach out to to just have a conversation about their thoughts on what's going on or what could happen. You don't have to speculate. You don't have to listen to the talking heads on on on TV news. You can talk to a pro. And I really want you to know they're not going to judge you. They're there to help you.

So definitely reach out. Go to Dave Ramsey Dotcom, get connected to a smart Vesterbro. There you go.

Open phones at eight eight two five five two two five. Abagail is with us in Austin, Texas.

Hey, Abigail, how are you? I do. I'm great, thank you for taking my call. Sure. What's up? So I own three rental properties and one of them I own with my ex-husband. I own 75 percent to 25 percent joyful. And, well, he and I, we actually we get along very well.

He's a realtor. I'm a realtor. We see eye to eye. So there's no disharmony around the management of the property. But so so the deal is this because I think you should know what you would do in this situation, given that interest rates are so low. I inquired with my mortgage banker about refinancing. So right now it's at four and a half percent. And she told me we could get down to two point sixty five percent. But at that time, my ex-husband said, you know, you want to buy me out because he you know, he's like, I don't want to refinance and extend the loan, whatever.

So she did let me know that we could roll it all in together. The problem is that so the house is the value is somewhere around four hundred to four, twenty five. And so my share would be around one hundred. And when I just run the numbers, it looks like I would negative cash flow by a couple thousand dollars per year if I took on that additional debt load. And so and so, you know, I just wanted to get your your opinion about what you would do in this circumstance.

My ex-husband is fine to continue as is, you know, not refinancing.

So what is the mortgage is 200. But the balance.

You mean your current balance today is, what, one twenty. One twenty. OK, all right. All right. I'm coming up on the clock. Hang on. I'm back from this break. We'll talk this through with you. This is the Dave Ramsey Show. Chris Ogen Ramsey personalities, my co-host today, we're talking with Abigail in Austin, Texas.

All right, Abigail, let me go back and make sure I got my numbers right because my head spinning a little bit here. You got a rental property you own with your assets worth 400, you owe 120. You own 75 percent. He owns 25 percent. You're talking about refinancing from an interest rate in the high fours to an interest rate down in the Tu's, which makes a lot of sense. He doesn't want to do that. But in it, while it all came up, he said, hey, just buy me out.

Is that what you told, that's all? That's exactly correct. And you told me that if you were to refinance and buy him out, that that you would be negative cash flowing per year.

OK, well, that's where I got lost, because if I see here, you've got a two hundred and eighty thousand dollar equity, but you should not be buying him out on the eighty thousand. You should buy him out based on to based on 400 minus about 40 for expenses. And so you've got about a 240000 dollar equity.

Is that sound about right. I got lost there. OK. OK, if you're buying a partner out on a piece of real estate, you don't do it at retail. You do it at what it would be net in a sale. And so if you sell a 400000 on a piece of property, you guys, a real estate agency wouldn't might not have the commissions, but the commissions you would have made if you paid out of commission and you had other miscellaneous expenses and you negotiated a little bit, the 400 would be discounted by about 10 percent.

At least you wouldn't net that. You might net 90 percent of the gross amount.

Right. OK, and so that be 40000 off and you got a two hundred eighty thousand dollar equity shares of 240000 dollar equity, so his portion is only worth about 60.

OK, she had it I mean, that's that's fair, that's not ripping him off, that's not ripping you off. Nobody's getting a deal here. But, you know, I have the same thing set up in my state plan. If I because I've got a bunch of real estate, if one of the kids wants to buy out one of the other kids on a piece of property so they don't have to own it together, they do it at an 80 percent ratio.

Hmm. Because because it's not fair to do it at full appraisal.

It's not that that's craziness, because that's not the way they because I can't get that. They can't get full appraisal net, net, net. So anyway, 60 and 120 is only 180 of a mortgage on 400. I do not understand why that property's not cash flowing. OK, well, in that I mean, in that scenario, I mean, that changes things, if I was thinking that, I would be adding one hundred thousand dollars to the balance.

Well, there's no way it's 100000 to 80 at the most. So just so so you're saying this is because you have to there's it's the equity versus the balance, in other words. Yeah, you're buying out your value because it is the equity, because the only thing if you got to sell it, you get 75 percent of the equity.

He gets 25 percent of the equity after expenses.

Agreed. Right. Yeah. And so his 25 percent is only worth 25 percent of the equity.

After expenses. That's what his positions were with your positions, where 75 percent of that, that's the you know, if you if you were in a court, for instance, and this was a negative breakup, that's how the judge would make you calculate it, because that's a that's the proper way of doing it. Because if you guys put it on the market and sell it, that's what you're going to do, that he's going to net about 60.

Right, OK. And so anyway, at at at one hundred and 120000 mortgage today, plus 60 or plus even 80, which is not, which is too much. That's only 200000 on our mortgage. On a four hundred on a property that should cash flow.

OK, I don't know.

This probably is the rental market in this particular neighborhood suckin. No, no, no, no, no, I mean, I'm getting right now, I mean, it's definitely cash flows right now. I'm getting the it's actually two houses on one lot and combined it. Twenty four. Fifty total rent. That's not much on the 400000 lower value.

Well, actually, you're correct, but we've we've had very long term tenants.

And so to the point that you're discounted your your rental by I mean, that thing ought to be making one percent a month anyway. You ought to be making four grand on that. Well, actually, no. Then maybe you need to sell this property, you might need to sell this property because your cash on cash return or your internal rate of return on this after you're doing in and everything is as deeply as you've got this thing discounted. This is not a good property.

I wouldn't I wouldn't hold out because I'm going to tell you, you're not even based on numbers, based on life, based on on simplifying your life and putting you in the driver's seat is I'm not going to own a property with an ex. I'm not. And so, you know, I'm going to either buy out as they was talking about, I'm going to sell this thing. Just real simple. There's no reason for you to have to continue to go around and around.

And I know things are going well right now, but you and I both know it's just going to take a hiccup. It's just going to take something for old stuff to come back, clean your life out, get this thing, get it gone, and then you can go buy a home the right way.

Well, there's like three or four different things going on here. There's that. And that's a reason to get rid of it.

Yeah, we've got to get the calculation if you're going to do the buyout down to what it should be and not overpay for the buyout.

And so at least a 10 percent discount on your gross reduction, your your equity by 40 grand. And then the third problem is discovered late in the phone call, and that is that you guys are not making very good money on this property. If you have four hundred thousand dollars invested in a piece of property, you need to be grossing 3500 or 4000 hours a month on that.

In most markets in Austin, Texas, is not a bad market. And so you ought to be making somewhere in that approaching one percent a month on it and top line in order to have justified tying up that much money into something. So and I listen, I got a lot of property.

If I have a long term renter, I don't always get full market, but I'm not running at 60 percent a market ever.

Well, I think to think she was about to wrap your head around as Dave, you just gave her a Ph.D. at real estate and she's a realtor and me too, just looking at this and talking about how to discount it before you sell it. And so, you know, that's not something everybody knows about being aware of, because you're right, you are going to have fees, you are going to have expenses. So you can't just do a straight twenty five percent or whatever it is in someone else's position.

I mean, that would be the deal of the year for him. It would be a great deal. All right, Zach is whether Zach's in Kalamazoo. Zach, how are you? I'm great.

Hi, Dave and Chris, thank you for taking my call. So my wife and I are big fans. We had a great date night with Resat last night. So thank you for that. Thank you. So I'll get I'll get right to it. So I have three kids and need help figuring out how to allocate money into EFH for each of them based on age and so that kids are six and then I have to have twins at the age of two.

And then I have one more on the way in March.

Hey, thank you.

Well, you know, what I would do is just sit down with your smart Vesterbro with a financial calculator and you can decide you're talking about how much money to put in based on their age, right?

Yeah, because we've got next to nothing started for anybody until we got the six year old. And obviously he's close to this. And so we're wondering like, do we do this for a little more on his bucket and then. Yes, you would. You would.

And that's fair. That's not unfair. Equal is not fair. Fair is not equal.

So what is correct is to sit down. I mean, the technical way to do it and I'm enough of a nerd, I would actually do this. I mean, I would just sit down and say, all right, we're looking at X for college and let's just make up a number. I want 100000 dollars in this account. Probably not enough. OK, but I want a hundred thousand dollars in each of their accounts. What have I got to put in for a six year old to do that?

What have I got to put in for a four year old to do that? And what have I got to put in for a zero to do that? O0 old. And so because you can't start that account till they're born and you get a Social Security number anyway, but you could sit down and calculate that. And, you know, if you wanted to like, say, per month and then and then if it comes out and the total of those numbers is more than you're ready to do on your baby.

Step five, it still gives you a ratio. Mm hmm. If the six year olds double the zero, double the new baby, then whatever you put in for the new baby, double it for the six year old.

Right. Or what have you put in for the six year old? Take half of that and put it into the baby so you'll get a ratio of even if you don't fully fund today, which is fine to not today, you got young enough. You'll catch up later. You know, if you if you if I just want your own baby step five to start doing something. Yes. And that's going to give you peace of mind and clarity for the future.

A man and a man. Good jobs act. Well done, sir. Congratulations. This is the day Ramsha. I have a friend or family member that needs a daily dose of Ramsay advice in their life. Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under ten minutes. Check out the Ramsey Call of the Day podcast wherever you listen to.

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