The Ramsey Show - App - BREAKING NEWS: Biden DIDN’T Budget for Student Loan Forgiveness! (Hour 1)

Episode Date: May 24, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. Anthony O'Neill, Ramsey personality, number one best-selling author and host of the YouTube very popular show called The Table, is my co-host today. We're here to help you and talk to you about your life and your money. Open phones at 888-825-5225. That's 888-825-5225.

So Anthony Forbes is reporting this. And Anthony, by the way, number one best-selling book, Debt-Free Degree. Which apparently a lot of people didn't get. The book or the idea. Right. Because the student loan crisis is at epic proportions. According to the Washington Post, President biden will not include any student loan cancellation in his annual budget while the annual budget which is expected at the end of the

next week only contains major policy plans that have already been released by the biden administration it's another major setback for student loan cancellation as a presidential candidate biden called for congress to cancel up to $10,000 of student loans for student loan borrowers, but hasn't enacted any policy for student loan cancellation through an executive order. The exclusion of student loan cancellation isn't a surprise based on the latest news on student loan cancellation. It's easier to read the writing on the wall about where biden stands on his executive authority to cancel student loans it's not that biden doesn't support

student loan cancellation he does however biden wants congress not the president to enact student loan cancellation through legislation so turns out um and and you know that there's an we used to say things when i was a kid anthony see if you've ever heard this saying that's like an act of congress which means it's impossible right yeah you know you can't get you take forever and if you do if you do get you know that's it's easier to get an act of Congress. I've heard people say that my whole life. And so now Biden is saying it. But, yeah, so the problem, though, is that people quit paying their student loans because they think that AOC and Biden is going to come and Elizabeth Warren is going to come save them. And so the default rate on student loans have gone way up because they're all anticipating a forgiveness, a political, some kind of a political activity to forgive their loans.

It appears if it does happen, it's not going to be anytime soon. And I think the thing that is so discouraging for me, Dave, is I've been criticized on my show telling people take advantage of paying off your student loans because you're not you're not gaining any interest right now but the number one critique that i'm getting from people is well wait i want to see what biden is going to do with counseling the student loans and now look we get this we get this like biden is not going to fight for it and i believe now dave i could be wrong let me say this on the rampage i could be wrong but i do not see congress coming in and making it happen. Now, it could happen, but history is showing us that it's not going to happen. Well, it could happen. But one thing's for sure.

Not anytime soon. That we can count on. Yeah. Because it requires an act of Congress. Right. And so it's not gonna you know so the problem with this is this is where piss poor leadership yeah sends a signal that causes people to engage in self-destructive behaviors yeah yeah meaning i'm not going to pay my student

loans because the government's going to let me out of them and so uh now i'm in default and default by the way screws up your credit uh by the way it builds up late fees and interest and penalties and uh by the way it's going to make it harder for you to get out and by the way most of you owe more than ten thousand dollars yeah yeah the average owes about thirty eight thousand that's the average nationally and we talk to people on here every day with over 100. Absolutely. I think the thing is this, folks. What you really need to get your head around from an economics perspective, not a political perspective, not a moral or philosophical.

Is it your right to have your student loan forgiven? Is it philosophically correct? All of that really doesn't matter. Here's a real practical fact for you. The government is not good at anything. Definitely. They're not efficient at anything. And so anytime, anywhere in your life, you are waiting on them to fix your life,

your life is going to continue to suck. Yes. It's a simple principle of life. Yeah, yeah. You know, if anybody wearing a Superman cape with an R or a D on it is flying across in your vision, promising you that your life is going to be okay, and you believe them when they do that, you are screwed. Now, Dave, would you agree if I said, hey, listen, keep riding your path, keep paying your student loans, keep doing it,

and if Congress comes in and says, I'll forgive $10,000, then you take it. But if they don't, you're still moving forward. I wouldn't say not to take it. There you go. You know, if it comes. Thank you. But I would not adjust your current life and your current plan based on false promises coming out of Washington, D.C. Thank you.

Because they've been coming out of Washington, D.C. as long as it has been there. Yes. Yeah. And so you're i'm old a hundred percent of my success has been the blessings of the lord yeah customers that loved how we served them and my hard butt work yeah i have not gotten any money from washington dc they have not sent me any money i'm not waiting on them to create a successful life for dave ramsey and if you wait on them to create a successful life for you your life's going to continue to suck yeah the same thing when you're waiting on i'm waiting on biden bucks to come in

the stimulus money if six hundred dollars changes your life your life was already messed up, baby. You were already playing small ball. You weren't playing big. It's t-ball. You need to get in where they're throwing fast pitches and swing for the fence, honey. You got to play big. You got to think big. You're playing small ball when you're

looking for the government to bail you out of anything. Now, if they start handing me some of the money i have paid them back in any form or format agree i will take that now when i take it it's a different kind of criticism than you get when you talk about this yeah if i take it it's called corporate welfare oh lord corporate welfare oh no that was me getting some of my money back that's what that was any chance i can get my corporate welfare, I'll be signing up for that. But I am not waiting, and I'm not adjusting my success patterns, the behaviors in my life,

to wait on the government to fix my life. I'm not going to let them influence me into violating common sense in order to do that. And that's what you have is another failed political promise right here. Absolutely. So the moral of the story, America, is... Pay off your dadgum student loans. Go after it. And if they give you some money, use it.

Use it wisely. But until then, if they do not, pay your bills. Bottom line. As fast as you can. Yeah. The secret to becoming a millionaire is not waiting on the government to do it for you. Oh, wow, that was insightful. Who thought of that?

I did. Destroy your student loans if you want to do that. There's a book by Anthony O'Neill at RamseySolutions.com right now. That'll really get you out of debt. But we're not paying any of it for you, darling. You're going to pay it. This is the Ramsey Show. You've got a lot on your plate. A job, your home, your marriage, and your growing family. While you're enjoying the present, you can't help but think about your future and your finances. As you explore your options, consider Christian Healthcare Ministries, or CHM,

for your health care. Their generous maternity program and budget-friendly monthly programs have been a blessing to members welcoming children into their families. Visit chministries.org slash budget to see if it's right for you. That's chministries.org slash budget. Anthony, we could do student loan forgiveness. We could just say, I forgive you. I was about to say, wait, where are you going with this, Dave? It's worth about what one of the politicians says, right? It's about as good.

It's about as useful. Wow. I forgive you. Wow, Dave. I've got student loans. I forgive you. Oh, yeah. You just made somebody upset listening right now

you know it's I've been doing that for 30 years it's a spiritual gift all right Sarah's with us in Raleigh North Carolina hey Sarah welcome to the Ramsey show hi thanks for taking my call my pleasure how can we help so um we just recently heard about your plan in this last year, and we've worked really hard, and we've got rid of $20,000 in credit card debt and have about $6,000 left. The problem is that recently, well, not 10 years ago, my in-laws gave us $10,000 when we were getting out of medical school and my husband was going to get his first job and we're moving across the country and they said okay just pay this back whenever you have it it's not a big deal well recently we offended them and they want their ten thousand dollars back so we don't have that money let's re rephrase this. When someone says, give it back to me later, that's not a gift, that's a loan. Okay.

Right? You just pay us back whenever, no big deal. Right? That's a loan. Isn't it? Right. Yeah, they loaned you money. But it just didn't have really good clarity and good communication and good terms.

There was no date certain, no interest rate, no payment rate, nothing. It was just, you know, pay us back someday when you can. Yeah. Right? Right. Yes. Okay. And how many years ago was this?

Ten. Ten years. And you told me that, and I already forgot. All right. And so uh your household income now is what it's about 150 and you have six thousand dollars left plus this 10 right um yes well we have a mortgage and we have a car payment oh car payment is part of the debt snowball hun so six thousand dollars plus a car what do you owe in your car um we it's around thirty thousand okay all right so you have thirty six thousand forty six thousand

dollars in debt and you make 150 yeah yes how much do you have in your savings right now wait wait wait wait wait wait okay okay sarah hold on i got this dave i got this dave so sarah when we asked this question on how much debt did you have, that's everything excluding a mortgage. Okay? So you're new to us. So I want to step in before Uncle Dave comes in. So your brother is going to come in and help you out here. So how much debt do you have, excluding your mortgage right now, altogether?

Okay, so $6,000 credit card, $30,000 car payment, and about $100,000 in student loans. We went from $6,000, America, to $136,000 in debt. $46,000. $146,000. Yeah, yeah, yeah. Uh-huh. Goodness gracious. Okay, yeah. Uh-huh. Goodness gracious. Okay, so here's the thing, and I'm going to say this too, because you're just starting off with this.

You're going to work the debt snowball, and you're going to put the $10,000 inside of that debt snowball. So you think she ought to pay them back? I mean, well, if it was a loan, yeah. Does it sound like to you it was a loan? She said, give it back to us later. That's a loan to me. Okay. I'm just making sure we heard the same thing okay am i wrong no no no i'm just checking you know checking in with you sir i mean i wish you could say since you're running interference here

i thought i'd check in with you i'm about to say sarah uncle dave over here looking at you know brother day i mean anthony over here like what was she thinking um but yeah i think you need to add that in there until so to answer your, I think you need to add that in there. So to answer your direct question, yes, you need to pay it back. And I think family, owing family money compared to owing a bank money is worse, in my opinion, because it just creates so much more drama. And so I want you to get to it as much as possible, as quick as possible. What is the $6,000 debt? Yeah.

The six? Mm-hmm. What is that? It's a normal credit card, below rate. Okay. And then you have another $30,000 on one single credit card? No, that's a car. That's a car.

Yeah, that's a car. That's a car. Yeah, that's a car. That's a car. Good. Okay. All right. Cool. So our debt snowball, Sarah, that we teach, the fastest, most efficient way to get out of debt is list your debts, smallest to largest, regardless of interest rate, and attack them

in that order. Do you all have any money in savings that is not retirement? I bet you they do. We have a Roth IRA. That's retirement. Not retirement. No. How much money do you have in your checking account right now?

About $10,000. Okay. That's a pretty good bid. All right. So what would I do if I woke up in your shoes today is how we answer questions here. Knowing what I know, 30 years of teaching people to become wealthy, the shortest distance between you and wealth is to be debt-free, not counting your mortgage, as soon as possible.

Because if you had no payments making $150,000, you'd have some money. Agreed? Right. Okay, so we're going to list the debts smallest to largest and attack them out of order. Today, I'm going to write a check and pay off the $6,000 credit card. By the way, you need to cut it up and close it and only use a debit card. You can't get out of debt while you continually go back in. Okay?

Yeah. And we're well on our way for that one. Thing number two is you're going to, as soon as possible in the next two months, write a check and pay off your in-laws. Now, here's the problem. The only reason they want the money back now is they're trying to punish you because you didn't mind them. Right. They told you to do something and it offended them, right?

Mm-hmm. What was it? Well, because we've kind of seen a pattern of behavior, they wanted to move to the same town as us, and we said that we didn't think that was a good idea. So they were very very upset yeah that would hurt their feelings so what was the what's the pattern of behavior um just that they get offended very quickly and easily over small things and we were like if you're living right next to us they're gonna you know're going to be upset at us for this or that,

and things like this are going to happen for the rest of their life. So go ahead and give them a big thing to be offended at, like don't move to my town. That's not a little one. That's a big one. That's huge. Yeah, that would hurt most people's feelings. So you've already drawn some uncomfortable boundaries with them that you felt were necessary, and I'm not saying they weren't but um so you telling them when you're going to pay back a loan that you choose to pay

back on a moral ground not a legal ground because they have no legal standing in this at all this was a handshake yeah okay. So you get to choose the terms. Okay. So in other words, you don't get to choose to punish me by doing this, but I will honor your request and repay the loan on my terms. You don't have to say it that way, but you just take that stand. And your terms happen to be that it's the next thing on your list of things to do since you paid off your credit card today. Okay. And then you're going to save up real quick, like, I mean, one month or two months, and you're going to write one check for $10,000.

And be sure in the four column to put paid in full. Okay. That just sends another message for them to be offended about. But just in case they decide to come back and go, now we want interest or whatever, because this is all they're getting. Right. And they're not getting anything else. So because I'm not having you pay them back because their feelings are hurt. I'm having you pay them back because you were obligated to do that morally anyway. When you took the money,

it was a loan. And we're all in agreement on that, are we not, Sarah? Yes. Now, even though you don't really want to, because they're instituting this on pure punishment, and they're being childish, I don't blame you for those feelings, but I'm executing on principle here and on mathematics. And let's just go ahead and get this out of the way. Oh, and by the way, now you're free, the borrower's slave to the lender, and you're not anymore beholden. And so now you can be kind and strong and gentle with them and continue to set appropriate boundaries. Thank you. Anthony O'Neill, Ramsey Personality, number one best-selling author of the book Debt-Free Degree, is my co-host today.

Open phones at 888-825-5225. On the debt-free stage in the lobby of Ramsey Solutions, Stephen is with us. Hey, Stephen, how are you? Good. How about yourself? Better than I deserve, brother. Where do you live? Charlotte, North Carolina. Oh, beautiful town. Very cool. And all the way to Nashville to do a debt-free scream.

That's it. Love it. How much the way to Nashville to do a debt-free scream. That's it. Love it. How much have you paid off? $89,000. Love it. How long did this take? It took me 364 days. Oh, he beat the year.

I had a leap year, so that helped. I love it. I love it. And your range of income during this year? It was starting at $79,000 and went up to $94,000. Good for you. And I had a $20,000 gift from my uncle. Very nice.

What do you do for a living? I'm a technology analyst for a large consulting firm. Good for you. And what kind of debt was the $89,000? It was all student loans. Oh, wow. Yes, sir. What's your degree in?

So it's a multifaceted one. It's industrial engineering and accounting and policy. Oh, wow. Yes, sir. From where? Where'd you go to school? Clemson. Okay, good.

And so you get out of school. How long have you been out of school? It's been about a year and a half now. Okay. Oh, you started attacking as soon as you got out. As hard as I could. Yeah. Wow.

So what inspired you to do that? I think, well, first I found out about you hard as I could. Yeah. Wow. So what inspired you to do that? I think, well, first I found out about you guys through the podcast. And I've always had kind of a proclivity for personal finance. And as I started to learn more about it, I started to learn just about how there was seemingly only one model, that everybody had to follow this one path. It was unilateral, and everybody did the same thing as far as leveraging debt to help them achieve their goals. And listening to y'all's podcast, it was the first one that didn't try to detach personal finance from the rest of your life. It was the first time that a financial advisor would talk to people about how there's relational IQ, would talk to people about how there's financial IQ and talk to people about their goals beyond just be wealthy.

It's to also be generous. And when I graduated, I didn't really know exactly what my student loan debt was at. I kind of just kind of floated through college financially and did what I could to get by, but never really took things too serious. And then one night my dad and I sat down and summed it all up. And that was kind of the night that I just, you know, I remember my world was spinning around me.

I could look and see my feet, but I didn't see the ground. It was just, it was crazy. And then I thought back to Matthew 21, 12, when Jesus, he cast out the money changers in the temple. And he cast out both the sellers and the buyers. And he said, anybody that participates in that system, they're thieves. And I wouldn't do that anymore. And I swore from that day on, I was like, this is it. You know, I can't be part of a system that is an oppressive debt system where so many

people struggle and just to line the wallets of the big wigs, you know, in the city skyscrapers. So let me ask you this question, Stephen. Doing the math, you got a $20,000 gift, so that means you had about $69,000 in student loan debt, but then your range was $79,994. So this means, man, you were living way, and I mean way below your means. Yeah. Talk to the listeners on why. How did you make it?

That's what I was trying to figure out. How did you do it? And then one on how did you make it that's what i was trying to figure out like how did you do it and then one why did you go to that extreme well um so the the gift was an inheritance from my uncle when he passed away um his dream was always he had one rule you know go to college just don't go to law school and so uh so that was one of any lawyers in the family well and so uh that was his thing was he really wanted me to use that money to succeed and so um that was part of it you know i think building a big why is a really really important step in finding out a lot about yourself and about your personal motivations yeah um you know i would you, clench tight to my why throughout the whole process. And another big thing, Ayo, actually, you say it all the time, and it's just become something I've lived by.

But when you say to speak what you seek until I see what I spoke, that's been big for me. And so part of my why is I actually want to go on to law school. And so I want to keep going, and I want to succeed financially. I want to be generous. I want to go on to law school. And so I want to keep going and I want to succeed financially. I want to be generous. I want to leave a legacy. And I hold on to that. And I tell myself, you know, if I've done this, I can even go further. And I keep talking about what my goals are because it's not a I wish for them. It's one day I'll get there. I just know it's hard work between me and them. And I don't want to get too much into your personal business, but were you living at home during this time?

Yes, I was. Because I was just trying to make sense with the math. I'm so happy you said yes, you were. Yeah, my parents, they were very, very generous. I am very blessed. I love it. I love it, man. So now you're making almost $100,000 a year, and you have no debt in the world.

That's it. And you're how old? Yeah. I am 24. Are you single? I'm not. I've got a girlfriend. Oh, I was about to hook you up right debt in the world. That's it. And you're how old? Yeah. I am 24. Are you single? I'm not. I've got a girlfriend. Oh, I was about to hook you up right here on the ranch.

Anthony's going to play matchmaker. Oh, she's right there. She is beautiful. Yeah. Oh, she is. I love it. I'm sorry, ladies. Now you're in trouble.

Yeah, I know. That's why I said I'm sorry, ladies. You just stay out of the love business right there. I'm just saying. Oh, man. Way to go. Way to go, man. Thank you.

Okay. So you were living at home, and you lived on nothing still. Genuinely nothing. I mean, you truly didn't go out to eat. And, I mean, you were like the ultimate cheap date. Oh, it was awful. I mean, well, he didn't go out on dates. There's one thing for sure.

She doesn't love you for your stuff or for where you were taking her. No. It was because there was none of that. You were just getting out of debt. Mm out of debt and you're free now way to go man thank you okay so you you just listened in detail and attacked it exactly like we teach was there anything else you did special well so um i was you guys could consider me like a ramsey super user i was i was listening to every single hour of every single podcast. I worked nights and weekends at a second job trying to make a second job. What was the second job? I was delivering pizzas. Oh, good. And I mean, I was constantly listening to the podcast, consuming every bit of

media, listening to Debt Free Degree, listening to about the student loan crisis. I mean, everything I could just to stay laser focused. And at no point did i question that i would be on this debt-free screen it was a question of when not if come on man and uh it was that focus that really really helped yeah that's a big deal um you know uh that's the difference when people actually make it out of debt or they don't that is that they they just put blinders on, and that's their thing. For a short period of time, 12 months in your case, not quite 12 months, one day short, you know, you had one thing you're focused on. And when you do that, you can do almost anything. But we live in an ADD culture where we're all distracted by squirrel, right?

I mean, everything, right? Everything comes along, gets our attention, and pulls our eyes off of of the goal and the problem is not how tough the goal is the problem is all the stuff you have to give up yes sir to stay on goal yeah with anything and this is no exception way to go i'm so proud of you who are your biggest cheerleaders so i've got a list of people but but really all my friends david and caitlin I want to appreciate you guys for always inviting me to things, knowing what my answer would be. And Candy Mills, Leland, Miranda and Clarissa, they always cheer me on. My mom, my dad, my brother

for loving me and helping me define my why, and of course my lovely girlfriend for everything and then some. Tolerating you being a cheap date. Really. Wait, he wasn't a cheap date, Dave. Yes, he was. He was a focused date. That's what it was. But that made him cheap date really there we go he wasn't a cheap date yes he was yes he was he was a focus date that's what it was but that made him cheap and there's nothing wrong with that it was intentional cheapness it was intentional cheapness yeah but when the millennia can do

anything he wants exactly that's what i want to ask him you're making six figures you debt free what's next so i've got a couple short-term goals um Probably the one I'm most excited for is I am cash-flowing a trip to Europe. Oh, touchdown. I'm pumped about that. So I'll be there in a year. And then, of course, law school off in the future. I want to buy a house and get all that settled. Your uncle's not going to be happy.

No, he won't. He won't, but I think he'll probably laugh at us. Uncle will be happy because he's going to pay for it cash. Uncle Tut said no law school, and then he passed away. So there you go. Anyway, yeah. All right. Way to go, man.

We got a copy of the Legacy Journey for you. That's definitely the next step in your process. I'm so proud of you. Very, very well done. And we've got another copy of the Total Money Makeover for you to pay it forward and give away. And so thank you, man. Very, very well done. Steven from Charlotte, North Carolina.

$89,000 paid off in 364 days, making $79,000 to $94,000. Busting it. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free! Yeah! Woo-hoo! I love it.

Europe. Europe. Not a bad payback. This is the Ramsey Shadows. We'll be right back. Anthony O'Neill Ramsey personality is my co-host today we're taking your calls about your life and your money open phones at 888-825-5225 jump on youtube or podcast land wherever you listen to podcasts and join anthony at the table subscribe wherever you listen to podcasts or subscribe on his youtube channel the table there's lots of people come to the table and there are some wonderful conversations there that will cause your life to improve and you will be substantially cooler after having listened to the table i cannot give you that promise with

this show but anthony can increase your cool oh it's possible it is possible it can be done christian's with us in california hi christian welcome to the Ramsey Show. Hello, Dave. How are you? Thanks for taking my call. Sure. What's up? Well, I just want to say my daughter, Dani, she turned me into your show. The reason I'm calling is me and my wife, we live in California.

I'm 53 and a half. She's 52. Really thinking on stop maybe hopefully working for my company in the next two years, 55, 56. We own two properties. One house I live on, the other house we rent. And I'm trying to get the best advice on what to do.

Both homes have equity. The one I live on, my loan is 570. The house is probably worth a million four. The house I rent is worth about 875. I owe 143. We were thinking of paying off the house. It's a 15-year loan. I have six years left. The idea was let's pay it off, keep renting it, get $3,500, $3,600 every month, use it towards my primary home, and maybe move out of the state to rent the two houses and buy something somewhere else.

I love the weather. I hate the politics in California. So I've been working 32 years for my company, between me and my wife. And you tell me if I'm talking too much, I'm giving you too much info. No, you're fine. You're fine. So what do you make a year? Okay.

Between me and my wife, we make $190,000. And then the rental property give us about $42,000. Yeah, so where would you move? Well, I'm thinking right there, man, Tennessee. You're thinking what? Tennessee. Oh, okay. All right.

I don't know. I'm thinking Nevada. You're looking at right here. Great stuff okay. All right. I don't know. I'm thinking Nevada. We're looking at right here. Great stuff. And when would you make this move? I would like to stop working from a company in two, three years. And we were thinking right now, I have $120,000 on my own stock account, private account. And I'm thinking that's not possibly enough money,

especially if I retire, to have cash on hand. And the struggle is, do I want to have cash on hand and get a new loan on my rental, which I have a 3% loan, 15 years, six years left to pay, and get cash. So if I want to leave the state, buy some property outside the state, and still, if I do that, my rental. Okay, let's play a pretend a minute, okay?

You have $120,000, and it's in your company's stock right now, right? No, it's in eTrade. Is it in your company's stock, yes or no? No. No. What's it in? It's in, I have some cash on the eTrade account, and then I have Facebook stock. You have what?

Facebook. Facebook. Okay. Okay. So let's play pretend that you sold everything. Okay. I got a million two in my pocket if I did my math right. Yeah, yeah, a million. That's your net worth. A million. A Yeah, yeah, a million.

That's your net worth. A million, yeah, a million, maybe a million. Not counting your retirement accounts, but the Facebook stock and your two equities are roughly a million, too. Is that about right? Well, I have 800. I know. You gave me the numbers.

That's about right. Okay, so if you take a million to a million two, and you come to Tennessee, Missouri, Kansas, Texas, Nevada, whatever, you could buy a house to live in and buy a rental house and pay cash for it. Yes. Let's just do that. Yeah, I know. yes let's just do that yeah i know my wife loves the ocean well i didn't you said you told me you were moving i didn't tell you you were moving yeah no i'm moving okay the only question now is she's coming with you

exactly she i think she is yeah okay so i mean, maybe you're going to Florida. I don't know where you're going. I'm joking around with you here, but here's the thing. If I don't like the politics in an area, that means that those politics are going to affect economics. They already have, and they're going to again, including the real estate that you leave back there when you try to leave there and keep this rental property and have a long distance rental property no go put a rental property in an area where you believe in the area and is near where you live and you're going to do better on the rental property at that point and you you know you've completely cleaned up everything because i would not have 120 000 in any single stock right anthony right right right right that and that's the key thing for me too dave and i like how you're talking

about how you just broke that down 1.2 he can he can move to nevada buy a home for a half a million buy another rental property for maybe two or three hundred thousand dollars and still have some money left over to invest in mutual funds you have a diversified portfolio exactly and you know have your income to offer the rental have no house payment um no taxes no income taxes anyway yeah and uh if you pick your state wisely and um uh you know and and you can do some investing but i i don't buy single stocks well particularly high Particularly high volatile tech stocks like Facebook. Yeah. And I don't have long-distance landlording, and I don't have debt.

And so I'm trying to give you the gift of all three of those things with this proposal. Yeah. No long-distance landlording, no debt, and no high-risk stock investments when we're done. And then you can settle in and enjoy the next portion of your life because i doubt you're going to do nothing you're too young yeah you're probably going to go do something you can only play so much golf or fish and he said anyway you need to do something and create some income just for the fun of it not because you have to but the natural progression doesn't have to be you put your feet up and quit at 50-something years old. Yeah.

So, no. He's definitely not going to Florida. He's not going to that ocean either. You don't think so? No. State tax, right? No, they don't have any. They don't have any.

I'm going to Florida. Well, there you go. When will you be back? Because I was kind of expecting you to be on the show next week so hey dave we're in a new age we're scheduled we're scheduled here i could do the show from the beach house in florida yeah that's assuming we let you see you're making all kinds of assumptions now no they don't have an income tax it's one of the reasons that people uh tend to go there.

That half the time in Florida when you're walking around, you're talking to New Yorkers. You know, I'm just messing with you. I'm from Florida. I'm not from, but I was living in Florida before I came here. You were in Jacksonville when you came to work for us. Jacksonville was beautiful. And as far as I know, you don't have an outstanding income tax bill from when you were there before, do you? Absolutely.

Okay, good. I'm glad to hear that. Absolutely. So that's what I would do, Christian, is I would just have a clean break, a one-fail swoop. You'll have no income tax at all on the sale of your personal residence up to $500,000 in gain, married filing jointly, $250,000 for a single. And I think you're married still. And the rental, you will have capital gains on it or you could do a 1031 tax deferred exchange and sell that into a 1031 escrow and buy your rental out of that when you get to whatever city or state you're going into and have zero taxes you'll roll the taxes

capital gains over so that's another move you could make there. Facebook, whatever you make on that, you're going to pay some taxes on, but dude, you need to get out of that by Friday anyway. Absolutely. Not predicting the end of Facebook, just predicting volatility in that world. This is The Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast.

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