From the headquarters of worms broadcasting from a dollar studios. Ramsay show that is down casual gaming in the olive oil market has taken the place of the Bmw status symbol of joy. I M D Ramsay, your hosts. Thank you for joining us. America was glad you're here, open foams, a triple eight, eight to five five. Two five daniele is whether some New York City Merry Christmas to you Daniel. Merry Christmas, How can I help today?

Well, I'm a newer westerner. I just discovered your shall my China within every day and are motivated to get life hours. Nancy Nine check We had was basically not done any of your steps in order and combat paddling, and we have about twenty. In dollars and credit card get what I want on top of, and I'm wondering if I'm like a debt. Consolidation alone is a good idea. Ok, Well generally, it is not broken, Generally, you end up paying more in interest Let so you have credit card that that you want to consolidate right. How much credit card that do you have. About. Twenty thousand! Ok, What's your household income to be ok, And what do you think you're interest rates are on their twenty thousand.

They range, I would say from probably eleven percent too. We maintain our twenty one percent, show you could save ten percent on the interest, for one year you would save two thousand dollars the sunrise, and that would be ok, to do if you can pull that off as long as it's not a second mortgage on your home. Mainly it's only ok to do is if you have a game plan to attack all of your dad very, very aggressively, which sounds like you're ready to do, because here the problem people do dead consolidation and they feel like all now. I've got a lot payment and the pressure goes off and they go back to their old evil ways, and you don't want do that. Ok, you guys make money you should, through this debt and be done with it very very quickly how much other daddy you have not counting your own. We do have to airline.

Expensive cars. Better. On the new aside, what are you alone, those cars, probably believe each year are worn out together now carry on what else do you have We have no student loans that any more that's done. Tat we about five hundred thousand in retirement between the two of us I'm possible both get engines. When we require, I feel like where goods for retirement rarely you're heading in the right way. That won't do it. If you're used to make fifty but you're gonna get start and so what you guys do for a living without Kidgeri bearing ok, great So this is your only dad is eighty five thousand dollars, The car, then those and the idea than our house.

Here here's. What I would say is if you go on beans and rice, rice and being a scorched earth lifestyle making two hundred and fifty thousand dollars a year. How fast do you pay? eighty five thousand. Thank God. I don't know. Eighty five from two hundred and fifty leaves a lot. Ass, a guy. So now you shall we found ourselves that's ok, stop all of your retirement temporarily beyond our written budget. The two of you sit down together right this. And say this is, vital it's important and the faster. We do this the, more successful. We will be with it and the, you do at the fastest, as you cut the deepest If I said eighty five from

fifty that would leave one two hundred and sixty five to live on, not counting taxes. Now you are an inexpensive world, though you live in, but really the other will do that. Like that's like one year, we need to get on and I get him a bit like. Like super super tie, your friends, your gun, thank you, joined a cold Did you not go see the inside of a restaurant you're not going on vacation we're getting out of debt? you been just sloppy, is all you Ben you make so much money? You been sloppy Mary Ann. You can do it No, you ve not been it's not like. You been way out of control, stupid or crazy. You just been disorganized sloppy european attention to it like when you. What are you teach, what what subject do teach and what age first created all while so you really do get to see the bright student

you really wish they would apply themselves. That's you. But you, your money, bright student, and I want you to apply yourself. Ok, that, you know. When you look at that kid, you can see what they can. Do they don't I can do it yet, but I mean I'm looking at your mouth a year, you're in a half depend on their taxes. Stopping all your retirement completely focused trashing, your lifestyle or people? your weird and you just get after it see It solves the twenty thousand problem so quickly that consolidation, the math on it doesn't do much good Twenty off really fast, they ve Innovating five in a year I make sense and that China would get after this such a good question, too good discussion. You got this kiddo, you can but you can do it. I know you can. I can see her potential.

Now what does get you to? Do it open funds, a triple eight, eight to five five, two to five! Thank you for being with us. Your huta is with us in Baltimore, hey Yoda. What's up. Hey, I'm going out does not deserve. How can I help I have a question for you. I know I'm not a fan of having a credit card. I heard you say that many times I was just wondering how it's a month until they build credit without using a credit card. Why would you are built credit. Without Daiichi credit to get a mortgage I'll show, you can go in that. Ok, actual you d! To get a mortgage know, why are you if you could get a mortgage without building credit? Well, I also urge you bill credit. I believe that an you gonna mortgage without building credit yadda yadda minute, but if you could get a mortgage without building credit. Then you have a zero credit score.

Is there any other reason you would want to build credit, not particularly ok, because really, the thing. A building credit is a thing invented by the banks, because, basically it like this, I'm gonna go. That why shark and bill credit, Why shocking going to death? Why shocking bill credit, certain going to that. Why so I can build credit, why because I just love banks. You know that's really what the whole society is turned into, if you think about it, and you get a mortgage with a zero credit score. If you go to a mortgage company, like Churchill Mortgage, that does what All are was willing to do what's called manual underwriting, which means A your job, they ve a fire, your income, they ve

FI your savings position and they'll verify that you paid your landlord earlier on time and was zero credit score. You can get the same interest rate the same mortgages, someone without, but you have to mortgage company. That knows how to and is willing to go to the trouble. It's extra trouble for them to do manual underwriting Churchill mortgages. One of them will do that. We endorse Churchill, we love them. That's what we'd recommend avoiding them.

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I got about a hundred thirty thousand in that account, so moving forward in other generally that's a yellows, I'm already up another. Do I have a number of aviation? putting its morale- and I am not entirely convinced about that here. I would rather you got enough, because if you fast forward what a hundred thirty thousand is gonna be worth fifteen years from today, that's invested in good mutual funds inside that five, twenty nine you're gonna have Fortunately,. You only to put any more and that because the thing you can use you can take the money out as usual for education and that's all They get a scholarship. You can pull that amount of money out without any taxes. You can use the money education with any taxes. But if you pull my out for anything else or unless you transfer sure of the child. Then you're gonna get tax and penalised like you were taken money out of before one case earlier. Something, and you know it at that-

why you ve got too much in there and ya. Think you probably do of more than if in their own, but not the dominant players, So the question is that they now grows at the third and I'm a pretty I actually at the moment they grow tax relief. It does not tax revenue alternative and we might have stand, The unusual time, right now nearly I'd, be a pretty high tax rates which may be ten percent higher than one idea in twenty years, when I went on a around a third of your tax rate go down twenty years from now I'm retired, in run, my retirement savings. On that point, I hope you ve done enormous savings that your tax rate goes up. If you build substantial, wealthier tax rate will not go down

because your income will be as much higher just off of your investments than it does now. I am so, and you have the kind of guy that's gonna, do that, based on the Carling you're telling me here, now. I am play that game. Plus you haven't paid off your mortgage. Have you I'll be paid off about fourteen months until you done that we don't have a discussion, but You know what I have done is just stay dead free and I use a maxim retirement and I, I put the appropriate amount in kids college. We did not have five twenty answer. Yes, I available twenty five years ago, thirty years ago, when we were save our kids college, but Then, from their what you can, Do it two, things are three things that I have done if you wanted, to avoid tax, you can buy Low turn over mutual funds and an example. That means they also the stocks inside the mutual fun very often a low turnover mutual phone. Whenever far

percent or less turnover ratio So that means those stocks inside that major of on that mutual fun value is growing. Tax deferred capital gains was and when you pull it out its taxed at a capital gains rate, if you ve left it on one year, which would be less than your current tax rate or your future tax rate. So it's got at areas: tax advantaged in two ways, one it's growing capital. If a start goes from fifty dollar, seventy dollars, you don't pay tax. On that point already salad right That's what's happening with a low turnover mutual funds. I've done some of that. An easy way to do. That is just like a no load. S M P fund, ok, let's a big part of our strategy, but I have some in their the second You can do by real estate. Did you pay cash, for which will of course do the same thing? It grows with tax third growth, because its capital gains like growth, you don't pay

access on the increase and value of a peace, a real estate in gun sales. And arm third thing and I lost it, but that's it. That's the two main things I have got as far as a kid goes. It was the third thing is you can put some more money just in the kids name and that's called tomorrow, a unit transfer to minors, act and then bad accounts. Growth is taxed at the kids rate, not at your right and so it is a lower tax there and for the first big block of money it makes file. Let's kid take their own standard eduction, you don't use them as a deduction dependent which way works best. When your tracks planning, then you can actually grow that account quite a bit without adopting a diamond taxes on it for the first big chunks. Money that it makes, and so I actually did all three of those things the utmost everything we had.

In the day there was no five hundred and twenty nine serious face the utmost. What you did for college planning, but all that is, is opening an account, the kids night and you're the custodian of it it's their money when they turn twenty one. Control over at that point and so we used to laughingly, say let the beatings begin, Yeah, you gotta make sure the kid has got some character cause. You can run a hell of a lot of money and other doing cocaine. You just finance their habit. That's not a plan, but anyway, that that's that the three things that we did and they were all tax advantage. And gave us a lot of flexibility could end up with just a big power money and- and you can call you do now. Your college over here. If they want to go, get a masters degree or phd or somebody. You know the USA are the following: has run dry. Well, you ve got play you might as well, then do it put other admire you, just pull out some of your wealth, but you're gonna have plenty of wealth. You know up short its the matter of how to keep the government's hands off of it.

And one last thing on their fill and how did a lot of what you're doing I used to think we spend a lot of my time and effort and I still do by the way I'm trying if the government hands off my money, This is my money in any legal way that is proper under the code that I can any move. I can make to keep their hands off of it. It is me job as a good manager of the money for God to do that, because sending money to Washington DC is not godly activity, and so I'm not doing that unless I have two by law. I spent a lot of time. The more money now with tax experts. Trying to I'll do what I reckon that reasonable and smart? What you don't want to do. Discussion and an upstream people do this all throughout my career is. You got your nose off by your face, and what that means. Is you you stop

making bad move, because their good tax moves, but are bad economic moves. Economics behind the move, don't make sense answer you end up in bad investments or trapped in some kind of a thing. Are you this is the others flow chart. Of companies. That money gets trapped in and you can really get yourself in a match their so don't spend. So much effort. Try keep taxes off of wealth that you forget to bill wealth and people do that people, all the time, I'm not saying you are yet, but guys with it Like you and me more, we just hate sending money to Washington. We have a tunnel He towards that making that mistake- and I have made that mistaken up, seen people through, my career of coaching people, make that mistake a lot they spent, Ninety percent of time on taxation and ten percent

building instead of ninety percent of wealth building and ten percent on the other. The taxation, which would probably be about the right ratio. Yeah. She won't be wise. Yes, you wanna be thoughtful, but don't don't. We think it to the point you put yourself in a bad situation, Questions are very good question of where you are. Wouldn't you guys like to have your three and a half year old already abound in thirty thousand for their college. That's where he shitting me watch stud very well done. I mean tat it. That's the college in check March, in o, Thou hast done baby step five over over and out right and we love it so well played so well flight. You can do this stuff. People, that's what we love, how people now show that of messed up. Me and you some of the rest of you, but

People like that on their there so steadily they got that crap together, you know which says you're, you're thirty, you can get your crap together. You can actually be like a grown up and everything while its doable. This is that I've Ramsay show.

Why should I come from lines? Dot com? They have of one hundred percent satisfied and guarantee the means, even if you miss measure or pick the wrong color, we like your window, blinds red sidewise. Zoning is happening right now. Let's take an additional five percent off at blinds. Nod A leaner in New York says I love my husband and I want to overcome our issue around money. However, my husband lacks the ability desire to chain spending habits that affect me too, He says he wants to change, says going to change, but it's always next week or next month. I can't

nor the constant roller coaster help? Please? Is there any hope us. It's killing our marriage. If we change the subject, from money to alcoholism or drug use It would sound exactly the same my husband and I am- and I want to overcome our issues around his of illegal drugs. However, my husband, like stability or desire to changes, habits, and they affect me too says he- wants to change Jane was always next week or next month. I can handle it Help is really hope for us. It's killing Armitage show this It's a misbehavior resort amounts to in this

Thank God! It's not drug use, alcoholism, which is much more difficult to overcome. Then some immaturity, which is what this is the end. We need to control impulses, is a true. The children Run do what feels good can't control my impulses, people me just buy stuff. People like you were children. So childish behaviour The inability to engage in basic self control is childish is what children do. There are a lot of emotional children walking around in adults as bodies. I get that sometimes I'm that guy sometimes I do want to chocolate chip cookies shut up. You know the inability to control the impulse, but sir, control is an attribute.

Being able to delay pleasure for a greater good is an attribute. Daughter would show. Many of us when we came to a childish impulses. Rather than do what's good for the long term. For ourselves and those that we love. You know let us do that. The problem is when you do it more than you do. The adult stuff, Dulce, devise a plan and follow a children do what feels good and so what Important For all of us is to do more adult stuff than childish stuff, so we get to be an adult. But when you are my childish than you are adult than yours, ouch writes me: your email addresses Killing our marriage, because I'm married to a little boy, a little why you cannot control he spending in army. That's what that's what she saying and it's like

come on you worse man up a woman is calling you boy child. Seriously. How do you fix that? That's, not a financial problem! That's a mature, problem. One definition of maturity is the ability to delay pleasure learning to delay pleasure, like no one else show that later we can living give like. No one else, you don't. Accidently win So it's about that. This is about maturity, it's about growing up, and it's about him pudding, good of his family, the of his relationship with his wife. I heard of his own. Selfish little childish impulses, he selfish. That's the problem We all are sometimes on the same wavelength obligation, executives, emotion, motion. It means I'm way. You know me, we all

Do this The question is what percentage and the lower my percentage of stupid childish impulses. The high a percentage. Our quality of life. I mean how many people they impulsive, porch, you know you can portion have one fifty hell yeah man, I'll kill. You. You cannot impulsive stuff that this is a major. Decision when you're spending money like this so the answer, Your question, however, is that you should go See a marriage, counselor yadda ask him to come with you. Because I'm afraid your marriage is gonna end. If he don't grow up, you're tired living with a little boy? This The wording in email submission is drew.

Ripping with anger due to frustration really blame you, but where that is you're, going to reach a point that the switch is gonna, flip and you're done, It's not gonna, be any getting you back into the deal when people's switch flip, particularly low Yes, I've watched should happen for thirty years or more. Struggling and I'm doing financial coaching and she just hang on hang on, hang on, hang on, hang on, hang on, hang on believe she's hung on this long and I'm thinking, man that maybe this all boys don't around it hang on hang on boom. She's done. All of a sudden, which just like a light switch. It just goes to off and no marriage, counselor, no pastor, no friend, no paragon talker into coming back. She's done Turkey! Man! I mean it's over.

And so you don't want you to be that hyena. You want to catch this before you get caught or to the switch than you realize. You are. And that means you guys need some marital help. Big time you need, counselor. And go see. Your pastor fund If they do merge counselling at your church get a good christian marriage counselor to walk you through this and talk. Talk to you about relationships, the spiritual things in him: And if he won't go at least you can go to learn how to talk to him to get him to go? You guys you're gonna have to get the same page. This guy, someone's gotta, shake him and he's gonna grow up because you are married, the boy child. We have a manhood crisis in this culture. There is a shortage. There are some males in the culture, but there's a manhood shortage on theirs

Daughter shortage in general. A lot of people walking around that somehow their emotional grow. Was stunted and they never really came all the way into adulthood. For whatever reason. Then we can see that bother childish, impulsive, selfish misbehavior again, I've done a two or muslim any better, my being condescending, so those of either think I'm condescending that just because you are being convicted by this very little rat writer. I'm not, conversely, all done ever better. This There have been more mature, more impulsive, more stupid and all of you, but when I quit doing it to the extent awkward doing it. The quality of life goes up the quality. My relationships go up the result I get in the market. Place, go up When I manage. My emotions and

of their managing me and it keeps me for Impulsive, because I'm angry are important. Because I'm scared our impulsive because I'm just four years old down inside when I manage that in its called self control, it is attribute of an adult. I get a better life. That's how I have gotten a better life and that's why I'm a better grandpa than I was a daddy and by the way, that's a rule, you have to be a better grandpa than you were a daddy cause. You should have learned something through all those years. My gosh

anything or are you just stupid? Papa Dave oughta be better at this than it was when he was thirty right, I'm doing with your money. They will your career same. They will hold the all your relationships right. It's called throwing up as what it's about where there was no way of adultery, millennials adopting that's what we're talking about here. This is that every measure

Our scriptures road robbers, twenty seven, seventeen sharp a desire for one person to another war experience was not what happened to you is what you do with what happens to you? Don't waste your pay, use it to help. Others got a good friend of managers. I don't trust trust someone that doesnt work with a limp you ve never had any pain. I mean you never had never been busted. You never been knocked down,

you ve never been so scared, you can't breathe, two different palatial put you in from position. Carl is Witherspoon Syracuse New York, high Cora welcomed the diver amnesia they should take they called it sure, what's up pretty simple question, probably for you, I'm leaving one job, and to another if of course, with a job and I'm currently leaving, I will be taking a check ten thousand dollars from the early retirements. They have offered me a heavy eight thousand genes with eight two hundred and twenty dollar mark payment. Should I pay their off and I don't know about the fees and the penalties. However, how old are you fifty five? look. I know you will be penalised. Ten percent, plus your tax rate

and so, depending on what bracket, you're and you're gonna be paying somewhere north of thirty percent on this money to pull it out, I would instead role it To an IRA and keep from having to pay any fees or penalties on it. Ok, You wouldn't borrow money at thirty percent interest to pay off the car then it's the same thing. Mathematically shall now cash out retirement plans to pay off their own wishes to avoid bankruptcy or foreclosure ray, is in Denver Hayrack Merry Christmas to you. Thank you. Thank you are complementary, greener. She makes decisions quickly, very good. Thank you. How can I help I've got a insurance policy that about fifty years ago, on my life, the wife wants it Do you think? Maybe we should surely and I'd like to keep us we're gonna, let you, goodbye

the premiums for fifty four months of the year Tell you right now is a hundred and twenty one thousand twenty one insurance amount is two hundred and forty nine participating policy here the increase Fifty four hundred now, therefore point nine percent increase, how old are you We have no that errors that here's, a situation right when you die with this policy in place there, pay your wife a hundred and forty nine thousand dollars. So you do but then you lose your hundred twenty one thousand. I want you lose the hundred during one thousand.

They're gonna pay a hundred and forty nine they're gonna keep your hundred and twenty one thousand dollar savings I'll pay you pay per hundred because they pay her one. Forty nine well, every year. That goes out now that you misunderstand me: you in paying extra all these years Create the savings account call cash value. You ve been paying five times extra over what term insurances prob. It as much as twenty times extra. In order to create the savings account about twenty one thousand, so you really don't have a hundred and forty nine thousand hours over their insurance really about twenty thousand dollars worth because Her toilet, that's all your money sitting there they're gonna, keep. And they're gonna pay her a hundred forty not show the net of those two is really all the insurance is worth. Do you see what I'm saying?

Four thousand over the empty, Yeah Let's try this. We must try to establish like let's try this one. If you had a if you take this out in cash, this out hundred and twenty one thousand dollars in a bank right. And so, when you die, we're still be under twenty one thousand hours. In the background if you took out of twenty thousand dollar insurance policy,. You know the same model, my for her One hundred and twenty one in the bank plus a twenty thousand dollars policy. Two hundred and forty one the same deal you're, paying an awful lot of an awful lot of money for basically twenty thousand dollars worth of insurance, mad like a tunnel money and you ve got so The answer to your question overall is yes, I would catch us out in twenty seconds. I get other fasting. Isn't what data nigh, whether in there? we get other hands as fast as I possibly can.

And in the valley, or put it in Why should an investment you'll make a lot more than four percent start with, and on top of that, when you die, they don't keep it. Maria another. Ok, but they're gonna. You ve got a hundred forty nine about our life. Insurance policy was zero savings or, you got a horrid twenty one thousand of the savings in twenty five thousand life insurance is one tat was honoured. Forty not look at how we want look at it, but it's one of those two. It's not both! get one? Forty, nine at death, plus one twenty one and you ve paid extra have the savings all these years and then there keep it when you die effectively the whole life investment type life insurance is one of the worst financial products on the planet: and so I yes so fast scaring, we're not out, but already get out of it by the end of the day as quickly as we possibly can, and

unless the reasoning only real simple. It's a lot of money that you have built up in their money. And so effectively. You know it's gone cause you're paying a lot of money for a hundred forty members, our lot of injured boss. Ok, that's enough cash! It up! Aren't Sarah isn't Portland Oregon. I saw a welcome that I rams Asia, we're taking my call Dave sure. What's up, my question is my husband and I have about five thousand dollars left to pay off. It baby set number two and we are wondering if we should cash out some single stocks to pay off the remaining. That is non retirement at any time any money, this non retirement- we use that cash out of wherever all the way down to a thousand dollars until we're dead, free but you ve got the single stocks.

One thousand five hundred dollars anything of tat great and you have any doubt five thousand now. Then, must increase in April, and I paid off twenty grand already waiting. I care about and proud of you think here and do of any money in your emergency fund we asked about, you're following the planned we'll get you like it. Ok, so cash out the entire twelve thousand five hundred endless of the five dollars were the debt put thousand five hundred with your one thousand dollars an hour on our way to finishing our emergency fund of three to six months of expenses. Ok, How much? What I expect and taxes- and please do think out of that- I have had my should I set aside for that- depends you paid for the stock. Basis is what you paid for. You have any idea what you paid for it. My husband, thirty five thousand dollars at ground,

some five thousand to twelve thousand five hundred. Alas, the peanut Side, I then that's a seven thousand dollar gain and it would be up. Point, fifteen percent of seven thousand dollars so probably we a thousand dollars but you wanna, calculated very precisely the proper to do it. Well, contact, these stockbrokerage firm has the stuff or even the company that you have to start with and find out what your basis is many exactly what he paid for it and then again actually what it sells for and then the deer exactly Tom's. Fifteen percent. It's coming your taxes, your gain! Your capital gains tax taxed at long term, capital gains tax to fifteen percent. Where are you don't show good? Sir? Congratulations very very, very well done open a triple eight, eight to five five, two to five. Thank you for joining us America. Merry Christmas to you,

We shall gladly weathers so by so many of you are not so good manners, so many good things happen and there you are really doing good. I believe in you keep it up, gave it up. That puts us our that I've ram to show in the books will be back with you before you know it. In the meantime, the number has ultimately only one way to financial peace and thus to walk daily with the prince of peace negotiations. Guys like Thomson senior executives, Greece or for the day raises this out with great continent, were used to catch. The most watch, Dave Ferrie Everyday Second Davies issue:

Money is the only thing we talk about a round here. Get life changing advise on your career for my good friend and rear expert in common all my can common shown. Seventy percent of Americans are going to work every Monday and they don't want to be there, but for a myriad of reasons they feel they have to be there. That is, our crusade, subscribed to begin Commagena wherever you listen, departure hates James producer of the day. Reims II show this. So it is over but check the episode notes for links to products and services you ve heard about during this episode