From the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studios, Dave Ramsey, that is in the has taken the place of the B M w as the status symbol of choice. I'm Dave Ramsey your host. This is your show. Thank you for joining us phones at eight billion, eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five that's eight billion eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five. Jose is with us in California Hi Jose.

How are you hey Dave. How are you good to talk to you you too, sir? How can I help HI question I'm forty nine years old and uh. I have two daughters, and one of them is twenty two and the other one is nineteen and I started for them with a guard. U T M account many years ago and bold in total around one hundred and sixty thousand dollars, one of them already graduated, but we were able to cash flow, the four years she's graduated kinda knows about the money, but she kind of doesn't so I'm kind of in the middle of what should we do with that and then the other one is eighteen were intersecting year were also cash flowing that question is: what do you think I should do with that money? Should I I'm a baby step six, I still pizza pay off my house, which is around forty thousand dollars, left, which I should do in the next two to three years, but I'm just kind of

at that point now where I need to know what I'm going to do with that, specially that first half of the one hundred and sixty well, it's not yours. A uniform transfer to minors act. You trance The money to the daughter's name and so yeah, legally and tax, wise and everything else. It's her money! Uh yeah, and so each. I would do something other than just but to her, would be if she was doing something completely, responsible are misbehaving, behaving any be funding heroin, addiction or something, and I would in that case I would just hide it from her, but that would be illegal 'cause it's, not your money, it's her money, there are twenty one. It's there's yes, So you can't really move it back into your name. So are they both. Being responsible young women.

Oh yeah, they're, they're, on they're on the right path, they're completely doing. I things and, like I said I was just at that point: I don't I don't know exactly- I mean I know it's in their name. So that's what I was just thinking now. And the other thing you don't want to do from an emotional standpoint or you want the money to be a blessing to them. They're, not apparently, they're, not aware of it right. Uh there. They I told him that they had their college paid for, but. They were there, they've been working since they've been sixteen years old, both of them, so we cast for it. Fifty thousand fifty all four years, the first one and we got through it, she's done. No student debt and on the second one or we're halfway through the second year in the same situation, yeah well the way the discussion sounded with us was we told them earlier. Then you have the

the money was there in exactly how much it was and we showed them this money. Is there this money? Is there this money? Is there and then we didn't tell them that we didn't use it for college. We cash flowed college like you did, and so the UTM's were there at the end of college. We just said: okay, this is your innocence. This is your graduation present. It's already in your name and we're going hand, Jiufen Fun statement over to you, but by then We had a long track record like five or ten years of discussing Everything from morals and values to the whole view money and so forth, so that I didn't have the sense that they were just going to catch this out and go. You know blow it on a weekend in Vegas or something we knew that they would take this very seriously, and that they would. The money would have some weight to it, rather than I I hit the Lotto woohoo moment, and so

somehow. You handle the discussions with the girls that way over the next year. It's not the end of the world. If you take a little bit of time, to hand it over to him, even if they are over twenty one. The one that's graduated over twenty one is the one that you've got a little more pressure on, but eighteen year old is going to be three years for you have to forward serves anyway. It's yours, you're in control of it until then. So I would talking to her and say you know when you get out of school. There's gonna be some money here. If available for you to make some steps into your future, if you are being responsible with money and if you're being responsible with your life and your you know your living on a moral life and so forth, but I'm not going to allow this money that I put in there to bring harm to them by financing,

their misbehavior, and so I mean I I would I would risk of the legal implications of not giving it to them. If that were the case, but I don't think you have that case- I didn't have that case, and so that's how I approach it, but it's all out of an act of love, but I think I am a gradual discussion of what is there and the expectations that come with that that I expect you to be responsible, I'm a yelp when she got the Financial Peace University or whatever so that they get. You know they have a basis so way to handle the money away to view the money- and it's not just a surprise, a big hairy surprised when you're twenty two years old, it's very difficult for that, not to feel like she at the Lotto. So I would gradually begin the conversation over the next year and then make the transfer Chadwick is with us in New North Carolina high Chadwick. How are you.

I'm doing great, sir. How are you doing better than I deserve? What's up More than a baby step on it to and one of the ways that we're cutting our expenses, we live in a renovated rb and we are we love it, we really enjoy it, we're in a camp right now. The only downside is we're surrounded by people and we would love to have some privacy and peace if possible. I saw a piece of Recently, that is twenty thousand dollars now I understand there's a lot of unknowns expenses that come with with land now, ordinarily, never bad, and I and except for its graded, it's clear to you, tell you to set up and there's a septic tank which has been inspected recently on the lake of the per we could put rv on it and start living there right away now. I know you are tolerate mortgages and I was wondering if you would tolerate a loan to purchase this land. Since

almost be acting as our mortgage. It would cut our payments in half and it be paid off in three years now I would not do that until you're out of debt. Okay, now that's! When we talk about buying a house, is we talk about buying that it after baby step three you're out of debt, and you have your emergency fund in place? How much debt do you have Forty eight thousand dollars and what's your household income, thirty, This year, it'll be a forty thousand next year when I have some residuals from my new job kick in okay. So how long does it take you to pay off forty eight. And I haven't done the math on it yet that would be very important to do, because that would affect how you view this answer. If you felt like it was ten years, then you're, probably thinking I'm crazy, to tell you to delay. If you think it's ten months, which I don't think it is either then you'd be crazy not to delay it's somewhere in between those two, an I'm thinking.

Probably you know what the curve on your income is three thousand two hundred and forty two five thousand two hundred and sixty will be good curved. Then you're probably done in two years, if you're looking at that, if not you're probably done in free- and I want you to stay the course and be debt free and have your emergency fund in place before you start talking about buying real, mortgage Christians have enough for

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if you miss Measure- or you pick the wrong color, they will remake your window, blinds for free free samples Shipping and with a new promos they run every month, you'll save even more use the promo. Code Ramsey to get the best deal Cheryls in Michigan, my father passed away recently and my mom sent information, including a death certificate to the credit card companies where he had acquired her name was not on the credit cards. She is threatening letters from lawyers. Regarding the remaining balance is: is she responsible to pay off his debt? Your advice will be so much appreciated. No, she, No responsibility for that that whatsoever. He is a state, does. Any, when you die anything that you own hash,

stand good for anything that you owe, and so your assets have to offset your liabilities. So, for example, if he has ten thousand dollars in credit card debt and he ain your step, mom owned a house together that has one hundred thousand dollars in equity, And she wants to keep that house. Well. Half of that equity is in his a state fifty one thousand dollars of it has sustained good for his debts. If there's a one thousand dollars equity and they own the house together, and so, if she wants to keep the house, she will have to pay the credit card because his assets, his fifty thousand dollars equity in the house, has to stand against and good for his debts. So in order to keep that she would have to clear

his debts so, for instance, is easier to understand if you just think about if the person did not was not married when they passed away in. So if your dad apartment apartment. Had no money in a bank account did not own a car. I was living off. Social security needs with a hundred thousand dollars in credit card debt. The credit card come again zero because his a state is worth losing. There's nothing to sell to pay his debts. But if he owned a fifty thousand dollars item- you, as his daughter, want to keep that item the style, then you're gonna pay fifty thousand dollars for it.

Because it has to go the vote market value of it has to go against his debts and that's what we're looking at so I'm guessing. I I don't know it depends on if he and your step mom had been married for a long long time. I would guess that Probably owned some things together, she can't just walk off with things and then not address his debts. If they've been, good for a year and their stuff is still very separated, as a result, and they really Anything that owned together doesn't have equity in it to amount to anything, then, nothing to pay his debts. Then you can tell these lawyers or whoever they are to jump in the creek, because He is not on these credit card that she is not liable. He is a state is liable, hope that makes sense and that's what you always look at in these situations but yeah

I will I'm going to guess and say in this situation that they hadn't been. A very long and that there's not a not a lot of assets that are joint owned, that she's trying to keep, but that's how it works. She is all Todd is weather in California. Hey Todd, welcome the Dave. Ramsey show Hey David. Thank you. I called come get kind of a conundrum here. This just discovered you within the last month or so, and trying to get things going good. I work I work for a government entity in the state of California and there's a good chance. I could be having a medical retired between now and sometime in the next five years, and I'm only forty years old, I'm trying to get everything situated for me, and my wife are three: she's, actually listening. Taking notes, I'm about to receive a settlement check for stop, and I want to use that to pay off our roughly

one thousand dollars in debt we have outside of our vehicle payment and we, forty two thousand on the vehicle, roughly thirty thousand dollars in a four hundred and fifty seven plan, as well as the retirement through the state retirement system. And I also get a VA disability pension as well. So what you're? also Lynn come in a year, uh right now, it's ninety three employment with another, forty from give or take forty from the VA mighty, expensive car. It's uh yeah Heart attack three kids into it, so you can pack three kids into a fifteen thousand dollar car that I get that that's why I never bought myself a new truck yeah with that garden can, after the twenty six K then get initially from the set amount get about one thousand one hundred a month after that for about twenty four months,

Are you out of work? No? No, I'm still employed, but they'll probably begins forced to medically time between sometime between now and the next five years. Why? Because of my age, you know it you're. This is from work. Okay, so you put your only phone but you're only forty five years old, forty, So what are you going to do for the rest of your life that I have no clue One thing I do know is: if it does come, we need to know it's coming. I know it's coming in. That's why I need help in games, for somebody kicked me in the rear to kind of force me into a direction she. Is going for my family five years from now I hear children are going to be hungry. Yes, you need to get it, you need to have career starting right now, ready set, go like I'd be really really really concentrating on this, because or retirement home in thirty six months, instead of sixty georgia- and you will be screwed brother

wait while we also live in ST provided government housing, so I pay for the amount of land yeah, and I know that when it does come, we do want to leave the state of California, so one we're not paying okay so loud. The cost of living? Well, maybe you short circuit in unless there's some kind of a benefit for waiting it out financially, but figure out what we want to be in our next chapter ACT two curtain goes down, the curtains go up. What are we going to do after we take that first bow. The your encore career. The good news is you're a lot smarter than when you pick the last karere there's this. Yes, so yeah I'm going to spend some time on the back porch with a cup of coffee and with the love of your life. Thinking about but I'm good at what me smile when I'm doing it and how can I make a big pot, money, doing that Anne. What do I need to go? Take a class or six do I need to get.

Vacation, do it? What- need where we going to do starting a business? Am I going become a violinist, I don't know what you're going to do. I don't care, but you know need to really be focusing on that, because It's not a matter of. If now it's just a matter of when am I wrong yet no you're right and when it does happen between the disability, retirement and this year, it'll be between six and seven grand a month coming in so it be a very opportune time too. Already have done this Preparation work the transition and not go from come to only disability income mean. At six hundred or seven grand coming in and you had a job lined up in the new career or you had your business idea, ready and you're ready to move to another state. In the whole, all right. So, let's think about that way mean time I'm going to go ahead and move down in car, because

I want you to be free, and if you're sitting there with no doubt in a pile of money, while we're making all these decisions, it change, the decisions gotcha now this car is out of line. It's not all the way into the crazies own, but it's getting close, and so I want you in a fifteen thousand dollars kid hauler right now, not a forty two thousand, let's get it paid off being paid off everything twenty six with this one first Chicks with this check and then develop a good long term game plan hold on I'm going to send you a copy of KEN Coleman's book. The proximity principle it will help you get into the career, you love the Dave Ramsey Show

business leaders if you're not using Linkedin jobs? You are missing out our Ramsey solutions. Company page on Linkedin has over one hundred thousand followers that our team communicates our current openings to we also post on Linkedin jobs, because we know the right person will have an impact on our company for years to come. Get fifty dollars off your first job post at Linkedin, DOT, com, Slash, Ramsey, that's linked in dot com, Slash, Ramsey terms and conditions apply. Suzanne is with us she's in North Carolina by Suzanne. Welcome to the Dave, Ramsey Show

Thank you for taking my call sure. What's up um well. Unfortunately, my mother died this year and I have received an inheritance um. I have paid off my house today, which is wonderful feeling I've met with some smart best, reprise and I advised me not to pay my house off, but I will for years and I did not feel that much without your smart mister pros. Are you confused. No, I'm not. Okay, not too me when you're done. I want to know who they are so they're, not smart, Vester pros anymore after this conversation uhm well, my husband's a pastor's, so he is allowed to have don't care yeah, x, ray.

Ok sure right off your house? How can I help you so I'm going to pay off my car next week and that will take care of cash amount that I have so what I have left Two annuities that my mother had um for twenty nine thousand and one for ninety seven thousand eight hundred dollars. Smaller one is a non qualified know the smaller ones qualify The larger one is non qualified, so I need to know what to do with these two accounts. Well, you'd have to pack, the annuity and exactly what's involved and we're going to send you to a different smart vester, one that I can trust as the one you used to go to is not going to be anymore

and then, once you understand what the implications are, the qualified one you're probably going to roll to an it, may end up being inherited irish situation and then the uh. Well, if I, when I'm gonna, try to liquidate it and just use it in the you know, use it as an investment from there, but I doubt that you're going to want to stay in either one of these on less that, you need to wait out a surrender charge or something and one of them, but not a big fan of annuities and most of the situations. There's a time and a place you can use them, but with the surrender charges being what they are in the extra fees being what they are in today's world. There are redundant and a lot of these cases so hold on. I'm gonna Madison pick up we're gonna get you connected up with the difference more Mr Perot, and we need to know the name of the one that you

show that we can correct that. Hey thanks for the call, that's frustrating! We spend millions of dollars a year. I've got a staff of a hundred and forty people the deal with these three thousand to five thousand elp since March after pros, and we're really clear with these people, if you want our endorsement, don't give advice is contrary to what we're saying it causes a lack of integrity. It's a it's an inconsistency and you know people are just stupid, aggravating open phone. Eight billion eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five mem Meme Mini Mimi, is with us in New York, Hi Mimi. How are you good afternoon, Mister Ramsey, thank you for letting me speak sure. How can I help uh? So

I had a property in New York, and if I sell this carpet, I am going to net between two hundred and two hundred and fifty thousand dollars from the sale and I am wondering if I am- I have a student loan debt of one hundred and eighty five thousand dollars good Lord. So I'm wondering no no between York is New York is very expensive. Expensive. What did you what your degree in. I I mastered and I have a double degree in. Relational management and entrepreneurship from a top school in New York. Yeah great great! So what's your household income. Uh. Well, this year it's been a rough year, so I will clear one hundred and fifty thousand ok. Well, that's good news! Ok! What I saw

piece property to pay off one hundred and eighty five thousand dollars in student loan- debt, yes or would MIKE, but my I knew you would say that, but my question was: is the alternative? Is that he in the money and an index fund an easy insurance to pay it off over. You know, say like ten years, can you go borrow million dollars in student loans and invest them in an index fund and use that money to pay it off in over ten years. Would you do that, No, I no! You will not do that and the reason is the

I'll bring the example then I'll make it large is it makes you feel the risk that you apparently didn't feel when you were borrowing on your student loan debt in order to invest in mutual funds are index funds. I like index funds. I like mutual funds, but there's risk inherent in the

And then, when we studied ten thousand millionaires, we talk to zero of the ten thousand. This said, you know, I refuse to pay off my debt. Instead, I use all the money. While I stay deeply in debt to invest and that's what made me wealthy. None of them said that zero out of ten thousand all of them had a very similar story to. I became wealthy because I got out of that and I steadily invested not because I borrowed money to invest it just wasn't there. We didn't find anybody that did this and so

No, it's it! It's a set of math. That assumes no risk is why you don't think that you're not perceiving that there's actual risk between a student loan debt being there which address to your portfolio and then you've got your money invested in the stock market, which is followed, oh and you know, and you're going to ride. That way. If there's risk their, it's not usually back breaking risk, but it doesn't lead you. Twelve? We have no data points of people doing that on a large scale that causes it, and so we're always going to lead you your shortest path to wealth and is because the debt, replace give you not only a place of of high cash flow, so you can invest, but also gives you a

a place that is solid, you're on solid ground that doesn't move and when things go up and down and sideways and up and down and sideways, everybody takes one step forward. Three steps back Four steps forward: seven steps back and they're all this gyration and rhythm in these people's lives that take risk all the time, and so now I'm going to tell you to pay off the student loan debt and I'm really sorry that you went that far in debt degree. This is the Dave. Ramsey show open phones, a eight billion eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five. If you want to ' to hear what is really going on with this epic student loan crisis. We have an eight episode, podcast on number seven will drop on Monday of the eight episodes called road future. It's a new endeavor for the Ramsey network crew. George

was, is our host? It's a little different format, usually our podcasts or one of us yakking, one of the personalities, jacking and we're. Definitely in makes but George is leading us through this process and does a masterful job of interviewing experts, whistle blowers people who are deep. In student loan debt people who win school without student loan debt people who are over paid for their education people who didn't over pay for their education? and all the Ramsey personalities mix in the certainly the noon meal. With his stance on the book that free degree, it's called borrowed future hundreds and hundreds and hundreds thousands of people have already downloaded and listened to the first episode, episodes and again, seven will drop on Monday? You want really going on in this crazy land of student loans well check out borrowed future wherever you listen to podcasts apple

Google play or whatever Uhhuh Our server that I proverbs, four twenty three above all else guard your heart for everything you do flows from it. Euripides said ten soldiers wisely led will be a hundred without a head.

Love. It sherry is with us in Missouri. I sherry welcome to the Dave Ramsey Show Thank you so much for taking my call owner. What's up my sixteen year old Son just started a part time job this past summer and while he are of course thinks he needs to save money for a car. We've also talked to him about the importance of investing the sooner the better, but because my husband and I did not know that when we were his age, where a little sort of confused- I guess at this point about where we should have him, invest at such a young age he's thinking. Maybe fifty. There's, so it's not a lot of money, so we just weren't sure what to do what to do. The only reason I would have him actually open. A mutual fund account have fifty dollars a month. His age is

the lesson that he learns, how the mutual fund works and to get the rhythm of steadily saving in steadily investing build. That muscle in his character, that's the only reason to do Otherwise, I'm ok, if he doesn't do it at all, because now he has two primary things. He needs to be concerned about, and that's a car and college. And long term investing he doesn't need to do for either one of those two thousand and sixteen. So just even if he put fifty dollars a month in a savings account that didn't earn a lot of interest would accomplish almost the same thing, but if he just wants to learn the lesson, then all at once

MR pros they can there's a few mutual funds that will allow an automatic draft from a checking account to happen and to get you going on that it. You know to make make that happen for you and be you can he if he opens up a checking account, you use your checking, account or whatever and it's automatically drafted, and then he gets a statement by email and that kind of stuff. It's just the lessons that are learned. All that's valuable. Our kids did not begin investing in that manner at that age. What we did do were two things. Obviously we taught them how to handle and run a check book, and I Usually they will not, obviously, but we did and they were saving for their car first and we were taking care of college

and we had an agreement that we would match them for whatever they saved. We had four hundred and one Dave. And so if they saved one thousand dollars, then I put one thousand dollars with it and get a two thousand dollars car. I do Can you put a limit on that parents? If you got young children out there and you're thinking you're going to teach him that, because, by the time run, comes along the catch on and they could have ten or fifteen grand and all of a sudden, you got thirty thousand dollars car for a sixteen year old, shouldn't bright You don't want to do that, but anyway we want to match up to a point of common sense and teach them that you know to save, We did do that. The second thing we did was. We were of course, baby step. Seven by the time our kids were teens and out of debt, an had fully funded all possible retirement accounts.

And so anytime they worked. We filed a tax return on all of their earnings, baby sitting dog walking working here at the office. Anything they did to earn money. We follow tax return, every dollar of it, so that they have the earned income, and then I would pay what little amount of tax that generate. For them and I would put the exact amount into a Roth IRA in their name and so at and earned income of thirteen thousand one hundred and forty two dollars that year and file a tax return on it. Thirteen years old, not I put thirteen thousand one hundred and forty dollars in a Roth IRA for them, and then they can watch that mutual final grow. Now that will turn into some serious dollars. They are in their 30s now and they look at those accounts and grin and so that 'cause we got that started early

again. We were baby steps, seven at that stage, so those are two things we did do and they watched their college funds that we were funding grow as well. They got to see the statements, so they had the inner. Shin with mutual funds and they had the interaction with saving to hit a goal, but we didn't actually start a fifty dollars a month plan are there. Fifty dollars was going into it and all that kind of stuff that one the plan that we used so hope that helps you something to think about but give us more investor pro? If you want to do it and I'll walk you through how to do it? Tina is in Florida Gina. How are you hi Dave, thanks for taking my call

better than I deserve? What's up so my husband and I have some disagreements on how much are gonna get should be. I thought I would like to know what your thoughts on that I so our current lan is fourteen hundred a month. My husband growth is about sixty five k, my eighty k and we want to put twenty percent down. I want to buy next year because I don't want to pay any more brands and I feel more comfortable if our mortgage and housing is ban is about thousands of one thousand two hundred month, so in case our income drops, and in my case my income is more variable. My husband can still easily pay without stress and mean I'm small condo around each union. I mean one hundred and eighty k, and then we can try to pay it off

in like three to four years and then move out. My husband has not like any house or condo in this price range. It's either! The location is bad or the conditions that how he like things to be updated. So what he lies are usually in the 300k and because of that he suggests you a day in our apartment, longer to save up for more down payment until chill mortgage is one slash four of arctic home, just like you suggested, or even longer until our mortgage is that my comfort level, or do a thirty years six, but make payment as it is like a fifteen years, six decrease our monthly payment if we need you, but I just feel like it's a waste of money to and after we are debt free and have thirty six k as down payment and twenty pages,

Emergency fund: what do you want meme from Maine? What do you think would be the best for us we teach people to buy no more than one slash four of their take home pay on their household income, which sounds to me, like you have one hundred and forty thousand dollars gross revenue, gross income and whatever your home pages. On that one slash four of that on a fifteen year fixed is the maximum that I would tell someone to take out, of course, anything less than that that both of you can agree to would be ok with Maine, but that's more than you're talking about considerably more than you're talking about 'cause you're, not even counting your income, and you make eighty grand I you insecure about my income quite may, go down! Why do you? Do I'm love pharmacy?

what why do pharmacist suddenly make less money um? When I look around so recently, Walmart fire, you know the pharmacist who make like come more money, and then hire a lot of new grass yeah, but they're, not they're, not paying on your your your making. Eighty is the pharmacist right right. There are a lot of pharmacy again, one twenty. Right and there's hardly any making sixty yeah right? I I think it just scares me how things have changed. What is your? What is your upbringing? Where were you raised? I was born in Vietnam, okay, so some some of this is just your

Should you wishing you grew up in in your household growing up and you? For that reason, you don't sense. The stability of your of a pharmacy degree leave your sitting at a hundred grand average. Over the next ten years: ninety nine times out of a hundred as long as you don't screw up personal professionally or something so I think you're just scared and I'm not scared for you at all. So I don't know if that helps you or not. I don't blame you understand, that puts us out of that. I've Ramsey show on the books will be back with you before you know it in the meantime, remember, there's ultimately only one way to financial peace and that's to walk daily with the prince of peace, Christ, Jesus

play Thompson senior executive producer for the show. Now you can listen or watch anywhere with the Dave Ramsey Show APP on your smartphone catch, the full show or watch the highlights and check out daves upcoming guests head to the app store and download it today make more money doing what you love check out. Christie writes business boutique, podcast Christies, firing inning quipping women to become successful, running their own business. Hey I'm Chris! You right and I help women all over the country, take their ideas and passions and hobbies and turn them into profitable businesses. If you have an idea in your head or dreaming your heart and you've ever wondered if you could make money doing it, I'm here to help join us on the business. Fifty podcast, where we are equipping women to make money doing what they love to hear more from the Ramsey network, including Christie, writes business boutique podcast. Wherever you listen to podcasts, hey it's Jay.

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