Life has borders of Ramsay solutions, broadcasting from a dollar five Reynolds videos. That's the day, rams issue that is dumb cages came and paid off home mortgage has taken the place of the Bmw, no status symbol of chores I'm day, Ramsay your host. Thank you for joining us, open phones, Tripoli, eight to five, five, two to five, that's Tripoli. Eight to five I've two to five

organs weathers in Indiana. I Morgan welcome to the diver amnesia. Hi Dave honor to speak with you today. How are you I deserve. What's up. Well my husband and I bought our dream land two years ago. We have the wound, the land loan on a ten year now we did the thirty percent down. We ve got a ten year, no and we'd like to start saving for the house were just about finished with date. Baby step too, will knock out baby step. Three a question for you is: do we pay off the land? Note adventure waiting for the build of the house? Can we do both together? Can we keep of the land with a ten year note and then on third backing away for the construction. Are you planning to pay cash for the house,

I'd like to have one hundred thousand dollars down, and we want to make sure that we keep it under that the fifteen year note that you recommend which pocket you take it out of to get there. Then here's The land is not paid off and you're ready to build the house. I've got your number and she's gonna money saved with your house fund, plus a mortgage there. Construction loan will pay off the land So what are you on the land with that? Sixty laugh who is the new a ten year out and what? What? What is it worth?. We paid over one hundred and five dollars for it. But it's very area, though chances are. We got a really good deal. Deprived overmore show my go for one twenty, ok, but would you spend on your house in dollars? Roughly

Ah, were hoping to keep it under two, fifty ok, and so, if you saved up sixty thousand dollars and didnt pay down the land at all or you paid off the land either way, you can go. Give the construction alone for the house, because they're gonna pay off the construction of gonna wanna. First mortgage position on how on the land they're gonna pay off the land. Lonely version is left out. Ok, so all that's gonna matter areas, the total and so the totally as you are

three hundred and ten thousand dollars away from being dead, free homeward, oh man, land right now, ok, however, much of that, you want to save up it's very clean too, to have some cash in the bank. Even if there is a little loan left on the land it won't matter. It's probably provide better. I did have the cash, but it doesn't matter either. Won't you gonna be fine. How much de let's say you paid off the land is sixty thousand. How much of the house would you save up? Our goal is to save a hundred thousand dollars, plush pay off the land. Yeah, ok, Shaw hundred sixty thousand before you break ground that that our goals that relieve your heart failure house and not about it there that leave you a hundred, fifty thousand honour mortgage them correct, knocking that's a great plan show that either one spot, and so it doesn't matter when you pay off the land. If you paid off the land first and then you saved a hundred, are if

Five, two hundred, while European off the Lamb, you're gonna, get third exactly the same moment in time. Ok, what do you think tat? We do we're putting that kind of money away. Do you recommend we do something other than just the savings large issues. Savings money market account trotting at about one one on a quarter on right now, if you get somethin like that, that's fine, but I wouldn't put it in the stock market and mutual funds, but you're going to do this fairly quickly. I think I hear the girl come on we're hoping within the next three three or four years. The fear, if you told me a years, will not try to stock market, but I don't think this is a year's way you're talkin about it, so so you're you're gonna knock out a hundred sixty grams.

In three years, so you're thinking about about fifty thousand dollars a year towards this programme. So if I were to and that approach is going powerful, an first and not the land out that that's gone yet, where about where, apart the money it's park there, you got where that interest in a penny interest the lands, free and clear and then the rest of us just money piled up in the higher the money pals up these

it's going to be to do it if you did have a ten thousand on alone left on the land, and you got ready this. It would be paid off plus they would long you the money to start to construction, because the construction Lindore does not want to be a construction. Loan from a bank does not want be second mortgage position, so they're gonna take out that landline to make sure there and first mortgage positions, and they will require you to have your permanent mortgage already approved so that that can take out of the construction loan when you're done, you knock the construction loan. How with a permanent mortgage and the apparent mortgage will give you one called. I take out letter that says we will take out that construction alone when the house is completed and the codes and is ready for occupancy in all their conniston and so really good plan. Very well done. You gotta game plan get out get after it love it Amandas, whether a high? Oh, I remember welcomed that I've Ramses, you Haven, T taken my comp sure. What's up,

okay, so my husband, he worked at ups for over five years and that qualified him, Pension. It's currently set up or he'll receive hundred and thirty dollars a month when he turned sixty five, how they are offering him a payout of eight thousand five hundred dollars, and we don't know what we should do.

Twenty four. I would take that money and roll it in a direct transfer to an IRA in good growth stock, mutual funds as a direct transfer, meaning there are moved the money not to you, but from his pension directly into a mutual fund for his IRA. We need some help. Doing that click, smart, vesture, Dave, Ramsay, DOT, com and select a smart vest reproach that those are the folks we recommend and they can help you do that here, why I recommend that if he dies and today the pension does not survive him, meaning they'll be nothing. Aid, ok and the eighty five hundred dollars between now and the time he actually retired at sixty five would grow to weigh more than enough to pay you three hundred thirty dollars a month. If its invested in good mutual funds

I got it. Maybe more you're gonna make more if I die, you're gonna make morphine live by having rolled over a lump sum pension into a direct transfers. I re also thank you. Thank you appreciate you listening open, fountains a triple. I ate two five, five, two to five: you jump in talk about your life and your money. And they are tied together, funny doesn't make your life, but it changes the options you have in your life. Such a thing is financial peace. When you get on a plan to start working, these proven. This is the Dave Ramsey Show.

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I shall ask whether Georgia, I actually welcome, but I am sure there are think even when you think you're. What's up my we're brand new programme, we get. But an Asia Ledger book. I read it twice and we just heartless ensure Pakistan where itemised all about that Mountain of student loans is just super overwhelming. We have one great Lakes loan at the hundred and thirty five thousand and it's broken up into v different loans, and I'm wondering if I should itemize each of those loans in our because it won't affect whether likely minimum

the payment right now with a hundred and twenty eight dollars to let my guide increase our snowball at all, and if we pay off one it's nothing. Greece at our side. Is the Wonted yard base about how we should attack that that? Why does it not increase such noble. Because right now, the minimum monthly payments is a hundred and twenty eight fairly paid off that the smallest one, which is about two thousand. My talk, the person on the phone they told us now that the minimum amount would say the same, I would still be a hundred and twenty dollars or even though they break them. There's only one payment and that's your hundred and thirty five thousand worth the effort that good team different one hundred and twenty eight dollars, four hundred and thirty five thousand yeah, I wear an income based repayment plan right now and I think that's good for the next year and a half yeah

Our total is one hundred and ninety two thousand credit cards and my student loan are there student loans I have an obvious that the two hundred discovered at eight thousand and very benumbing insisting thousand discovers eight thousand and First Margo six hours. We show about thirty thousand now that's the ashes of one hundred and sixty five of your one. Ninety two right my track record. We have Wednesday, then two thousand ends two thousand eight thousand We are leaving thousands by hundred out your household income

I now sixty five thousand. My husband is a doctor. So here is not like a medical doctor. Regular her loss of Doktor Feldman wasn't part of it until we working on getting another higher, paying job, getting a bigger shovel that our goal for years appear getting in philosophy behind not involuntarily its political science, but all employment on from rang stood and you're degrees in one English? the one thirty five now my degree of his or her was the one thirty five crack, so that includes undergrad young master php. And so what do you I have that amount iron about twenty five thousand, so you working full time, I'm working,

part time, I'm working and getting out another part time jobs or brain the beginning features, though about, can it be getting part time jobs them help make our bigger shovel yet. So what are your career pass when you going. My husband wants to. He wanted to teach Let's level, no man, it just takes a little while for those jobs and a huge graduated not long ago, a year out and the average time to gain employment after that is about three years of applying. So he had a little bit. Time, but sooner rather than later than that of a pan out. Then I hope that more government positions city planning position that kind of thing about you what we have two young kids right now. So I am teaching English online, but my kids go to school and two years, and then I don't know how

figure out a path. I think, because I'm just looking you kept on, but the size of your shovel show you been listening because your ratio of the gear ratio shovel is sixty thousand income. Two hundred and ninety two and dad is a problem. We're living right. Now, I'm thirty thousand, I'm hoping to keep it that way when we arrive would be fairly without being with you being a home with smoke it. You are full time whom economist, so you can keep the cost of living down to nothing doing there, but there's only somewhat you can lower costs in Jerusalem. The ratio of thirty thousand into two hundred is a seven yeah. I need an extra sixty thousand dollars a year from somewhere which he'll get if he gets a phd position of a college,

figures probably depend on working conditions and sell competitive and then really difficult applying for those jobs and the hours, not many of us there's a lot of people have this idea that serve career track, so young, so everybody's got be working on. Everything then get their hands on, which is what you are doing on the short term. Until we can get some long term income really coming in and that's what you guys are facing here, shot with all about in man, you're, not changing this income, regional nationals, questioning Kronos one about the income based repayment, the one five at her and twenty dollars? That's you're, not gonna, get to that for a long time. I would lump that one. Thirty five is one big dead at the end of your debts, noble That's what we have now: okay, I'll just trying to make sure I had the facts before I said normally, I would not do that, but it's going to be a while before you get to that puppy,

and your income lay your income is still gonna be calculated on lower incomes during the time were knocking out these smaller ones. So it would be very. Cool. If we were down to one thirty five, you, you would be there to current track in two years. He had that's. That matter are is anybody to embody? Then? Hopefully, your incomes are ramping up and we knock them five out real fast faster than that. But that's your worst case scenario is you're going to get there and you'll be debt free, except that The good news is you stop the bleeding? U turn around we're heading back to port we're gonna get their re back, were safe again and get this debt cleaned up, but the thing up not treat the one. Thirty five, since its income based repayments, only one twenty eight doesn't move the needle on that as one lump sum until we get there now, once we do

to it, then, will knock it off smallest, two largest in the fifteen loans that comprise the one thirty five hours that cause the smallest largest I'll. Give you the sense of direction the since that you're getting somewhere and that's what you want from there is the psychological feedback of going through one down who another one down. You need those who most in the midst of a track, like your own, show you some very determined, Varied dialed in your very All. Your numbers is a lot of good signs in this conversation and that you're going the right way so be encouraged. You will get there and if you aired or get tired long away. You call me we'll talk it through together, open the eight hundred and eighty eight eight hundred and twenty five five thousand two hundred and twenty five, the opposite of sixty five thousand dollars in student loan debt. That's the opposite

one of the ways you do. That is, you apply for and get tons of. Scholarships calm, slice scholarships today we are. Away. Three skull: totalling ten thousand dollars for college, given five and to twenty five hundred thousand into twenty five hundred, and so we want you guys to go get some of that. Money is used, by speeder speedy breath. It said Anthony O mealtime, Comedy Ramsay, dotcom sliced scholarships and The new annealed outcome is a scholarship search tool that is completely free theirs. Ten thousand scholarships in this database and here's the thing a bazillion dollars or scholarships go completely unclaimed. Every year, people don't know they existed on a bother to apply for them. I want your high school seniors full time. Job this year is not to become

master of the video games, but instead become of the essay that they send it to a thousand scholarship applications and they get turn down for nine hundred and seventy of them thousand dollars for the other. Thirty, that's use a junior time male dot com, the scholarship search to free, the Dave Ramsey Show talk. Usa saves you money down,

four minutes. So too said we switch from Verizon appeared talk thanks today, Ramsay I was sceptical, but after leaving the big city in travelling to rural areas, service coverage never lapses were also saving forty dollars a month. Guys talk, USA has the same gray coverage less and contracts today call pound to fifty and say the key word Dave, Ramsay, in the lobby of Ramsay solutions on the dead, free stage, Justin and Christian, or whether a guy's? Our you re, welcome, welcome? What are you guys? Live Columbus, Ohio phone, welcome to Nashville? Thank you and you got brought the the young adults with you. We do their names and ages Bradley. Seventeen and Katy is fifteen, some very cool good for you.

So all the way from Columbus, what the whole family to do that for each group, three love and how much are we paid off a hundred and sixty five thousand dollars? How long do this to three years and nine months perfect and your range of income? During that one hundred and eighteen, two hundred and thirty, two thousand dollars perfect what're, you gonna do for a living I'm an office manager for state agency and I'm a special education teacher, great, very cool. What color tat was the one hundred and sixty five thousand, They were was our house, you by your house, we're gonna where brake on very clearing legends, very cool in three years and nine months you knocked out there. That's a record. That's very fast! Well done well done so story what my jewish ought to put off your house? Well, it goes back a little bit before that we ve actually been following you and the show and your principles for about the last twelve years and back at that time,

guys we're just starting school, and we had about twenty seven thousand in debt at that time, a little bit of student loans at a little bit of credit card debt, but most of that was our two vehicles. We paid that often about eighteen months and just continued budgeting and following you and following your principles, are what you talk about a living on a budget, and we got to the point where we had to think about these guys. Go to college and we said we wanted to pay off the house before that happen. So this. About to graduate may harm, and we did it about a year and a year in advance. So now you have no payments of any kind. None at allows your cash flow college right naturally arise. I love it good, go so you caught started looking forward into the future. Safe years out about four years ago, yet answer not even four years ago, but knock this house out to get it out of the way. So we can cover these colleges perfect.

A slight planning in everything, our wealth comes from while well done so, but but between four years ago, three years and nine months Twelve years, when you started, you probably paid off the debt using eighty months you have so there was about a six year period. Summary just come around the budget. We did for five and six together. Yes, ok. And she didn't want to completely sacrifice things like vacations. We are supporting another kind of stuff during that time, as these guys were growing up royal wanted them to enjoy being we can't we're dead for everything, but the house than you do let your foot off the gas a little you do that, so you did this perfectly yes and cholera, normal baby steps, six procedure up until turn up the heat again, The story! Well done you very well! What's the house worth message about two hundred and ten right. Now

going up every day out of you guys we're married airily twenty years next week, have you ever been one hundred percent that free, no, not one does it have allowed? This no allows known and to an incredible fat is you're back yard. My lover feels different on it as it does One thing when you get all evidence payment when this one goes and there's nothing like us flipped me down in your spirit and I look at the budget each month and it's just amazing the amount of cash. We have over the repayments, now very cool when we look at the the planet be steps, and, and and following that we look back and think How do we do this earlier? Why don't we start earlier and now that we we ve done? We didn't write exactly We should you did you Vesna Tommy's started twelve years ago you ve executed in exactly the way we prescribe. It

and you're right on track for the everyday millionaire off. On average about ten point two years from the time, they start that's about what you did so its excellent excellent job I love it so what the key to paying off every including your house where you at first is read the book. That's that's the first thing and that's what with the total money like a total morning on the actual work, that's the primary thing and in number two is budgeting. Budgeting is, is everything once you get the sit down and it takes a little wild area, but once you get it down, retain Twelve years now makes the rhythm of your life may have its routine assuring them. That would not act if we can keep our calendar doll Dan and our budget out in those who think we manage our life with shows that we spend more time on the calendar we do on the budget. These days shows I, when you sit under calendars, which means where you gonna be travelling this month, even so so fine guy

cheerleaders play friends workers alot of a lot of people. We're gonna born so well. This is fantastic. This is great and an important that was able. Able to relate to them, say, hey thus you can do this. You can do this as well, and we ve given up dozens. To total money, make over two people. Thank you and in it we love to do that end in the people who do read it come back and say, is this guy for real yeah he's for real trust. Me. Once they start Program and really start to look at the baby steps a while this is not. This is not that hoard. We just have to learn to be weird amount and, and

that's the goal or worse Bradley Gonna go school. How university perfect? You know, he's gonna study. He knows what business awesome, girlbride good choice. Good choice, I would imagine with why you guys think caddies already thinking about it. Oh she's, she's

the Stamford obliges watchword seated at that's her goal. She just wants to get accepted there. She may not necessarily want to go to school there. It's definitely some heavy. Those college goes down in her mind at this point. If she's got the treaty over my pay for for the solution of a great way to go, you wanna go you guys Dave. I also want to say when you're asking cheerleaders, I got started as a member of your. U two crazies group and on the Youtube Channel, and we have small chat group. We do to the side as well, so they're, big cheerleaders, another watching our listening today and Patrick keen us is actually one of has become a friend of mine and we he's the biggest cheerleaders for anybody on the plan, but as part of that group as well and gentle having that community support so big deal is a huge see matters. While the Youtube Community, Israel Tide, we ve, got about two thousand on the facebook there'll be

Ramsey baby steps, Facebook, group community means a lot of people under that are thinking the same way, because what you do is truly we're out there in the culture it strange. We still. There are people who kind of look at Essen and, like you said they think they can do it as their situation government, but it is definitely still a weird unexpected thing. People tell me nobody pays off their mortgage. Everyone. Now you can say that a backward tat I like we in the version it ruins their statement on that world on you guys very well that are I just get a copy across oceans book. For you everyday million areas, that is definitely the next chapter in your book. You'll. Be there soon, if you're not already there there now, with your 401K stuff, good job Kristen, Bradley, Katy Columbus, Ohio, a hundred and sixty five thousand dollars bade up in three years and nine months. Megan

Tina one. Thirty, two colleagues, what's that breach the rhetoric? I regret to one baby and outrage, what happens if you invest in a good mutual fund, You got another million dollars three freaking wide. Why would you do that did you give all your money bags you get your motive car companies, you work so hard for it. Very well. Then you guys absolutely stellar. That's how it's done. Everything

touch down baby, this is the day Ramsay Shell, Charlie's whether some Florida shoreline welcome that Abrahams Shop- hello, Mr M, for yet another three curate bite, honored. To have you on the show? How can we help an Illinois retired teacher of twenty years and living in Florida. I'm here to stay, I'm not yet. Collecting my trs pension because

my age. I will be doing that in two thousand and four and a half years. We received was a letter from the Trs and it was offering me an accelerated pension benefit program, and I wanted to get your advice. The two options would be I hold off the four and a half years and wait and get a pension of approximately one thousand dollars a month for the remainder of my life, or should I, I'm up on their offer, which is a one lump sum. Receive now of approximately one hundred and ninety thousand dollars, which is about sixty percent of the value minus twenty percent federal tax and do something such as rolling it over to an IRA tax. If you roll into an IRA Why is the one hundred and ninety after the twenty percent withholding or before.

The one ninety is before before twenty percent, without look at twenty percent will not be withheld. If you do a direct transfer roll over into and I are re Ok now, thank so the way this should be calculated if the prince has done it properly one hundred and ninety thousand growing at a site. Percent rate will equal enough to pay You should seven percent twenty four thousand dollars a year for you after five more years, look, I know, K and that's probably about right actually

ten percent would be twenty thousand dollars today on that and it hasn't grown yet for more year, so without putting it on a calculator. The numbers look like they're about right. Okay, so let's pretend you did this: let's pretend you took the rollover: direct transfer, no taxes into good mutual funds into an IRA how old are you? I am fifty five and a half for more years, are far more years, rather than kind of Saint same amount of time the guy and grows at mutual funds rates, rather than in pension fund rights I do and then it pays you without touching the principal only what it produces. It will be larger and it will produce more than two

dollars a month. Unless we have an unusually bad five years in mutual funds, they would have to do about half of what they ve been doing for you do not come out ahead monthly. If you never touched the principle, Allow me I do so. In other words, if you put it in good mutual funds and they made ten to twelve percent for the next five years and then they paid you ten to twelve percent off of that amount per year. That would be more than two thousand dollars a month. That's what I'm describing, because the current calculations based on seven percent by the way, not the mutual funds, are pension funds, are evil their highly regulated and are not allowed to pay out much more than that is probably their six and a half or seven percent which got united by federal regulation and book. So it shut. That's just what has to be and so you make more while you're alive plus, if you die, not if you die when you die

when you die this, thousand dollars or two hundred fifty thousand dollar nest egg dies with you. If it's a pension, exactly it's in a mutual fund. It goes to your airs, whoever you name. Yes, and so you make more while you're alive and more, when you're dead, if you're take their offer. If you're willing to invested in good mutual, He- and I am this- is wonderful. This is exactly what I want to hear from you. Ok, are you already doing some mutual fun? Investing? Are you familiar with that? Yes, I am convinced listen to you for years. We follow do religiously and we are very comfortable just an added class, ok perfect than they. Actually, you knew all this stuff already and I just covered it for someone else who is listening, perfect art, so the out deafened

We do this get with your smart, Mr Pro, or whoever your doing your investments with and set up a direct transfer roll over into the mutual funds. And if you follow the exact same pattern which you would need to follow, because you can't touch the IRA either to fifty nine half so you're gonna be pyramids. Great great shape, so very well done good job, good job. Enjoy the retirement in Flo Rida right Jessica. How are you where they were well hurry, you better than others what's up I have been an iron getting ready to make a large job change. Wicked poet, beginning of the year some time with that there will come a couple financial situations where trying to figure out ahead of time. I am with the job. Change will be

how to fifty percent pay cut when we are actually going to be entering into the ministry our budgeting here out now we are deaf breathe with you have explained that we saved and put away at the moment. We do also have the money saved back I'm, but with that also in its current job he gets a vehicle. Provided for him, so we will be needing to purchase a vehicle when he quits the job and changes. You own is also within the next few years, probably going to need to be replaced or just looking know. If there is a better option at the point where I'm thinking probably six and one slash two, the other to decide what to do or just curious, if we should buy a personal family we do have a larger family. Now for an invite him, a small

or go ahead and let our car die off and if money and then by the car, the only vehicle comes Turn on your emergency fund: thirty six thousand dollars and how much is in the other fund, you mentioned, about ten thousand dollars in it. We are your dwelling looking to get his annual bonus at the end of the year, which last year, if it holds out to be the same, which it probably should take. About twenty five thousand dollars. He anyway usually use that about couple a cardiac yes! Well, when you go into do that at the other Europe by a couple course. Well, that's what we were like. We just did enough there at six, we trade off the

we have now heard away and before it guys get at the outcome of the year. I mean in the years here right. You know that you're not about, and do it now or to do in two years time between now and the Euro, correct and you've run out to live on without touching savings, his new income Tax Topeka, going this direction. We have cut back budget as much as we can now, when what I believe I ask if you can live on it without drudging savings, Yes, I am going to be taking a part time job and in August our youngest child will be going to school. So then I can then, hopefully by

it will bring in more but We are whatever your income, is, and or yours combined, you have to live on it it's not supposed to be a nightmare, We are nervous and with that we are cutting back all of our spending and now and making sure that we will be able to live on it. Then don't set up a budget shortfalls with savings. That would give us you'll burn through it, and then this this things off the streams over it becomes a nightmare set about if you got your house, it sounds like you, ve done a great job preparing for this sort of the lorries prepared. You all to call you in the Ministry of Autumn I'm proud for you. This is a great great move for you. If you're gonna live you dream

It's a whole nother definition of live like no one else, so that later you can live and give like no one else, and I all because you're free as you're not slave to someone else, proud of you very well done This is the Dave Ramsey show AIDS breakdowns in senior executive police are for the show. You know you can illicit or watch being aware of the day. We show our own your smartphone catch, the full show or watch the highlights and check out days, guess at the store downloaded today

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