The Ramsey Show - App - DAVE RANT: Don't Be Shamed by People Who Aren't Investing! (Hour 2)

Episode Date: July 21, 2020

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave 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. I'm Dave Ramsey, your host. Thank you for joining us. Chris Hogan is my co-host today. Ramsey personality. Number one best-selling author a couple times over. We're going to be talking to you about your life and your money.

The phone number, 888-825-5225. That's 888-825-5225. Trevor is in San Francisco. Hi, Trevor. Welcome to the Dave Ramsey Show. Hi, Dave. Thanks for taking my call. How are you doing? Sure. What's up? I had

a rollover IRA from my previous employer a few years ago that I turned from $3,000 to $100,000. And I'm just wondering, because of the new COVID CARES Act, what you thought about if I withdrew that. Okay, stop a second. You turned $3,000 into $100,000 over what period of time?

Probably about eight years, nine years. Okay. Were you adding anything to that? No, I wasn't adding anything. It was all pure investment, individual stocks. And I know how much you did in individual stocks. Well, you obviously did very well. Congratulations. Amazing. Okay, so you've got $100,000 in there, and you're how old?

34. And why would you take it out? I mean, I did up to a baby step forward, and I have a current 401k plan with my employer right now. I have about $11,000 in there. And I just look at that IRA as like, you know, I had $3,000 before, so I'm guessing, you know, everything else is profits. I wouldn't mind paying just the income tax and just taking the risk just to have that cash on hand.

Yeah, but why? Just because it was money that it didn't grow slowly doesn't mean we have to get dumb with it. That's true, but I've had a reckless youth, and I'm just getting into my baby steps. I have about $21,000 in savings, but, you know, I'm 34, and I kind of want to settle down and buy a house, and I figured this would help in that sense. All right, Trevor, I was going to ask you, what is burning a hole in your pocket? Is it a house or is it a vehicle? You know, I paid everything off.

I did up to baby stuff for no debt. Yeah, but what is it you're wanting to buy? You got something. Something's bugging you. Well, I mean, eventually, like, I have a girlfriend around. Eventually, I want to get married and, you know, start a family. And when that time comes, I just want to have that available. Okay.

What's your household income, Trevor? Right now, I'm at $110,000. Okay. And what debt do you owe? Nothing. I know. Cause you've said that three times. I just making sure. So you, you're wanting to eventually buy a house and you're trying to buy that, that engagement ring, right? Yeah. Okay. You can do that off 110. Yeah. I really would not cash it out. I mean, you're giving the government a third of your money in order for you to have access to it. That's kind of like saying, Dave, I want to borrow money at 33% interest so I can get access to the money.

It's the same math. And so I'm not sure. I think you're afraid the window's going to close and you're going to have the additional 10% penalty if you take it out later. Let me just tell you, if I were you, I would just close the window, period. And let that $100,000 turn into a million. And then get about the business of building your life off your $110,000. And just forget you own that money. Put it in good mutual funds.

Slow down your growth curve here. Slow your roll, and go from there. That's what I would do. Yeah, and in his mind, Dave, taking it from three and it growing to 100, he got lucky. It's like lottery money. But like you said, you don't want to turn that fast money into dumb money. And that's, boy, that'll preach right there.

So be smart, my friend. That's the game plan I would use. Hey, thanks for calling in. Open phones. Paul is with us in Pensacola, Florida. Hey, Paul, what's up? Thank you, Dave and Chris, for taking my call. I've got a question for you.

As far as an inheritance, what basic guidelines would you set for your children to follow or to receive an inheritance? What just some basic biblical guidelines, I guess, not trying to be overbearing, but just some simple things. Well, I can tell you what we did or some of the things that we did. We view the money that we have, Sharon and I, is not our money. We view it as God's money, which is what you're talking about, right? Yes, sir. And so the money and the things that we own, we don't own. We're managing them for God.

In order to qualify as a manager upon my death, you would also have to view the money that way. Okay. And so if you're not going to view it as a stewardship thing you're not in the will our family constitution starts out in my house now you can do whatever you want to do but at my house it says as for me in my house we will serve the lord okay that that answers my question yeah and so if somebody's going to be running around doing all kinds of crazy butt stuff in their own personal life and and they're not going to be uh you know they're going to say oh i get the i hit the lottery because i had dave ramsey's dna out of the will i'm not funding some bozo on the back of a yacht running a line of cocaine with his money.

Right. I don't want to grow a reality show. I'm trying to grow a family. Right. That makes sense. I was just making sure I wasn't going to be saying something out of line or, you know, going out of bounds on something. Well, would that be inconsistent with what they have heard from you as they grew up with you as their dad? No, no, not at all, not at all. I just wanted to make sure that it was a biblical thing to do,

not something just me wanting to exercise authority over them, you know, going forward, I guess is the way to say it. Well, I mean, you can look at it however you want, but the way I, again, the way I view what Scripture says is that I don't own it, I'm a manager. And what kind of a manager would hand the keys to an inept manager? Right. Okay. That's not a faithful steward. Yeah.

You having guidelines, what you're doing is not only protecting them, you're protecting what it is that you've built. Yeah, because, I mean, if they're doing heroin, all you're doing is funding their heroin addict no a habit right you know you're just because when they get money you know what crazy gets when it gets money big crazy that's what it gets and that's why that's where you see the trust fund baby stuff pop out and all that and so now nobody's perfect and none of my ramsey kids aren't perfect no man ain't perfect for sure but that that's how we've got it laid, and it's even in our trust documents that way, to where if one of them wants to go off the rails after I'm gone,

the other two can remove the keys, because the point is you're not blessed by money when you're misbehaving because it magnifies your misbehavior. And, Al, you would be amazed at how much control you can put in place, protective measures you can put in place for young adults. Talk to an estate planning attorney. You'd be surprised to see what you can do. You want to be a blessing, not a curse. And when you give them something they can't control, that becomes a curse.

And it's not a control freak because I want to control it. It's a control freak because I have an obligation before the Lord as a Christian to manage money for him and to do so adequately. And that's what I want to raise is I want to raise good adults that can take that responsibility on to responsibility. This is the Dave Ramsey Show. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts. They never fit right, and they're uncomfortable. Grip6 belts are unique. Owner BJ designed a truly modern, minimalist belt made of high-quality materials with no holes, no flap, and no bulk. And the buckles come in really cool designs and are interchangeable.

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Adam is next. Adam is in Birmingham. Hi, Adam. Welcome to the Dave Ramsey Show. Hey, Dave. Thanks for taking my call. Sure. I wanted to Dave Ramsey Show. Hey, Dave. Thanks for taking my call. Sure. I wanted to reach out to you.

We are currently using your Foundations and Personal Finding App resource tool with our two children who are high school age. Great. you were discussing having a diversification of roughly 25% of funding in a mutual fund in small, mid, large cap in international investments. And so I went back and pulled my current 401k stuff for myself to see where I had my money and my options. And I'm noticing that I have the option to do small cap and large cap. I don't have a mid-cap option as defined, and the only thing that I have in the way of an international option

is a world equity fund. So I wanted to get your input and see should I follow that same advice, dividing 25%, and what do I do without a mid-cap option? You probably have an index fund, S&P 500 fund, don't you? I do have that, yes. Yeah, that's mid-cap. Okay. That's right in the middle, and it's, you know, that's as close to mid.

It's going to perform very similar to mid-cap. It might have a little better diversification than a typical mid-cap inside it, but it'll perform real close. As far as the World Fund, the only difference is it'll have some versus an international. It'll have some U.S. in it mixed in with other countries, and because of that it will actually outperform a typical international fund because of the four categories that we teach people to use, the international has lagged behind for about eight years.

So that World Fund, is that a fidelity by chance? This is actually all SEIs who it's three. Okay. All right. Well, I was looking at a World Fund the other day that had just gone zoom, zoom. But, yeah, I pick up the world in lieu of, but it's slightly different. And then pick up your 500 in place of your mid cap, although it's slightly different. But you've still got good diversification across types of funds.

And that's assuming none of those four funds absolutely suck. I look at their long track records and see how they've done compared to other funds in that category and compared to some of the trend lines in those categories. And if it's all right there, then you would be just fine doing that. Yeah. Adam, I'm curious. What is your net worth, Adam? I have no idea.

I don't even know how to calculate that, to be honest. I just started following y'all's information a couple years ago. How much is in your 401Ks? Got a total of about 150 in collected 401Ks between my wife and I. Good for you. Well done. You got a really good start. But that's how I would do it.

The large cap is sometimes called a growth in income or a blue chip. The mid cap is a growth fund or an S&P 500 falls within that category in general. The small cap is an aggressive growth or an emerging markets fund, is the way those will sound. And then, of course, the international, sometimes called a foreign fund, and the kissing cousin is a world fund because it has some U.S. in it. Or sometimes a world fund is called a Global Fund. If you just think what's it mean, it means the whole world versus just the international, or it means the whole globe versus just the international,

and that's the nuanced difference between those. And, again, because it's got some U.S. in it, it will outperform the typical international. So that's cool, man. Good that you're looking into it. Teaching your kid caused you to get your 401K out. It caused him to go pull it out and look at it. And I think that's really neat. And you should probably, I would tell your kids you did that, that, hey, I went to go look, and you know what?

I'm making sure that I've got things in order. I think that's a great way for these young people to not just hear about it, Dave, but to learn it. Here's the other thing. Let's be real clear. He wasn't even sure the kinds of mutual funds he had. Right. Or when he started looking at it, what the other kinds were. And he had how much in there?

$110. $150. $150. And didn't even know what he was doing. Right. So what that tells us is he was doing some things right, number one. Right. But what we keep telling people is, well, I don't know about Dave Ramsey. he's doing right so what that tells us is he was doing some things right number one right but what

we keep telling people is well i don't know about dave ramsey his rates of return he quotes and dave ramsey doesn't help you get rich dave ramsey's only good for poor people well you're a stupid butt is what you are because here's the thing we know that the the data tells us that 74 of the reason that people build wealth is they actually invest. That's right. And I get more people, you get more people to invest than all these people writing financial blogs in their mother's basement. Yelling at us about rates of return. Listen, zero of zero.

He didn't even know his rate of return. He had no idea. He got $150,000 out of just bothering to invest. Blindly, somewhat. Not picking on him he's great i love it but that's not arguing about my p.e ratio i'm not worried about my expense ratio i don't know if i agree with dave rimsey's analysis of the s&p well kiss my butt you guys got 150 000 bucks in there and you ain't got nothing you live in your mother's basement okay that's the thing man i mean seriously is this not just ridiculous no it is what we found is that the national association of actuaries that which is the national association of nerds did an in-depth research study that says that 74 of the reason for retirement

build building your retirement success in building your retirement is actually investing. They call it savings rate. Now, what do you call savings rate in Baby Step 4? 15% of your income. That's a rate of savings. Yes. This is highly correlated, more than rates of return, more than expense ratios, to ending up with some dadgum money. In your pocket.

Yes. For your future. Bottom line is, you know, you can't get caught up in all the silliness pins follow the recipe follow the recipe and stay focused that's what we found all this big study of the national study of millionaires studied over 10 000 of them the number one reason they said they invested and they used employer-sponsored retirement plans and IRAs and you know what some of them were so steady that they should have changed some of their funds. Yes.

And didn't. Some of them were riding a lame horse all the way down to a million six. You know? But the thing limped. If it had been running a little bit, it would have been 2.2 or 2.3. That's right. But all they did that all these idiots that talk about things in theory don't do is they freaking did it. They did it. That or 2.3 that's right but all they did that all these idiots that talk about things in theory don't do is they freaking did it they did it everybody sits around with paralysis of the

analysis and says ready aim aim aim aim aim aim shoot something put some money in your mutual funds my god even if you're doing it wrong you're doing it more than the stupid but people are doing nothing that live in their mother's basement no you're right and so for those of you that are out there you may be saying i don't know what i have guess what pull it out go sit down with a smart vestor pro find out if you've got something limping if you can make a little tweak and make it run a little bit better watch what'll happen yeah but here's the thing there's no shame in your game because you're actually in the freaking game. That's right.

You actually are doing something. Yep. Which is 74% of the reason for success. The other 25% is the fine-tuning and understanding the investments and doing the stuff, which is what he was asking about. Brilliant. But listen, the number of times I talk to a guy, he's got $250,000 invested in his 401K, and some bozo driving a used Toyota who ain't got two nickels to rub together is trying to tell him he didn't know what he was doing.

And I'm like, hey, Bubba, check the fruit. You know? It's a Dr. Phil moment. How's this working for you? So don't be shamed by some intellect within the financial community or some article on the internet or some bozo writing a blog out of his mother's basement when you've got more money than five of those people put together because you've actually, even though you aren't doing it

perfect, you're actually doing it. That's right. Nothing dies unless you pull the trigger, baby. Ready? Aim, aim, aim, aim, aim, aim. It's got're killing me. We have tapped into a vein. Mr. Ramsey is awake and is ready to roll.

Somebody on Twitter, I know, I know, Dave. They're out there, and they're stupid. No, here's what aggravates me. I don't give a crap whether they like me or not, but they're misleading these other people, and they're all sitting around joining the paralysis of the analysis club. Oh, you're right. They get to analyze everything. That's just ridiculous.

Stealing the future away from a single mom. And that'll get me riled up. Sit around and look at stuff and talk about theory. Flapping gums. Flapping gums. Do something. This is the Dave Ramsey Show. We'll be right back. Chris Hogan, Ramsey Personality, my co-host on the Dave Ramsey Show today. Open phones at 888-825-5225.

Chris, James also asked us to address the, I don't know what you call it. It's a clip of, it's not a video clip. It's a little short written piece on a cashless society that that's going that's gone viral on the internet that says i wrote it and i didn't write it oh um so um like it's all about conspiracy theories and there's going to be no cash and the cash you know all the digital is going to be used to track you and um you know put them put the mark of the beast on your whatever i don't know what the crap it is but i mean if you read like one paragraph of the thing, you know that I didn't write it because I'm not crazy. Right.

That helps. Here's the other thing. Isn't it interesting that we live in a culture today that is more tech savvy and has the ability to access information so many different ways through all kinds of social media and yet people believe anything so the they're tech savvy and yet they're stupid that's exactly right yes i mean so i've been i just been retweeting i did not write this in quotes everything on the internet is true abe lincoln it'll come till you think about it but um yeah so no i did not write the cashless society crap that's going around and uh just come on people you know think don't retweet and facebook is worse because it's i guess there's more stupid people on facebook i don't know but but it's like Twitter's hate, Facebook is dumb.

Can I just go on from there? But, yeah, just think. When you look at something, go, I don't really think that the president said that. I don't really think that so-and-so said that. I'm not going to retweet it until I actually think about this and look at it and check it. It's like, oh, Dave Ramsey says we're going cashless. Dave Ramsey didn't say anything about that. It's absurd.

Now, here's the reality. Would businesses love for us to go cashless? Absolutely, they would. We've seen time and time again studies show that when people use plastic, they spend more. Yeah. Okay, we know this. 18 to 20% more. So businesses would love for that to happen.

I've read in a few articles that some businesses have run into not having coins. So they didn't have change. So they were encouraging people to use their debit cards. But, you know, I'm with you, Dave. People will take these things and just run it together. And crazy can attract more crazy. And the next thing you know is you've got this snowball. Well, my theory is as long as there's rednecks, there'll be cash.

Cash isn't going anywhere. Because I'm always going to have some $100 bills. Yeah. I mean, my three $100 bills folded over in the back of my money clip is my redneck emergency fund. And I've had one for 30 years. Three? Well, that's all that's in the back. Oh, okay, in the back. Yeah.

I don't touch that because you've tossed me your wallet well yeah i got a money clip i carry real cash you have real money in there but that's not the point i'm not bragging about that my point is that guys like me are always going to have some money too me too money me too uh you're never sometimes that stupid plastic the algorithm kicks in because of identity theft and you can't use any of it i've had that happen yeah me too could not take it they actually try being dave ramsey and not being able to check into a hotel your debit card that'll piss you off okay so yeah you gotta have some cash right there i mean it's just jeez no no i did not write that stupid cashless thing yes

just settle down settle down spread that out there among your stupid friends unbelievable let's retweet that repost that on facebook all right larissa i feel better now sort of not really i'm just all stirred up see what you did james larissa's in billings i was there yesterday larissa i was up there fly fishing it beautiful country. I've never been there before. How are you? It's good. It is beautiful up here. A little hot, though, right now. Yeah. So I have been having some anxiety about paying my credit card bills off. I have to take that money out of savings and pay it off, and it's really hard because it's not there anymore.

So I went ahead and called Chase, one of my credit card companies and i wanted to do a little negotiating with them to settle are you behind no i'm not behind well they don't settle with people that aren't behind honey oh i didn't know that i was asking that's why i was calling to ask if they if i had to what would be the better option no they don't they don't like write down debt unless they think they're not going to get their money. I'm not suggesting this. Don't do it. But if you hadn't paid them in six months, then they get in the mood to settle because they think you're a deadbeat.

Okay. Larissa, how long were you on the phone with them before you found out that they're not budging? Oh, my goodness, an hour. They gave me the runaround. They hung up on me twice. It was ridiculous. It is ridiculous. And you want to keep them around, huh?

I ride check and pay those people off and get them out of my life. Say, chase this. Yes, I know. I need to do that now that I realize that. I was thinking that they would settle with me. At one point, one of them told me they would do 90 cents on the dollar. Wow, I'm surprised. I was thinking that they would settle with me. At one point, one of them told me they would do 90 cents on the dollar. Wow. I'm surprised.

Yeah, I wanted to try to get that in writing. And then their supervisor came on and said, no, we're not going to do that anymore. Yeah. And this person doesn't work there anymore. Marge is no longer with us. Marissa, how much do you owe on this credit card? $4,700. And how much do you have in savings?

I can pay it off. How much do you have in savings? About $12,000. About $12,000. How many other credit cards do you owe on? One other, and it's only about $2,000.

Okay. You got $12,000 in savings. So you could pay both of these off by the time you hang up with Dave and I. I sure could. I sure could. You ain't. You got any scissors? No, I'm going to.

By the end of this week, that's my goal. End of the week? Why are you waiting three more days? End of the day. Get your scissors out. It's time. Get them out right now. Let's hear some plastic surgery right here of the day. Get your scissors out. It's time. You get them out right now. Let's hear some plastic surgery right here.

I want to hear it. I want to hear you chop them up. Get them out. Go over to the drawer and get some scissors right now. Don't make us come out there to Billings, Larissa. I actually don't have the credit cards anymore. Where are they? I've been paying on them to get them down.

Where are they? They've been cut up. They've been cut up a long time ago. Oh, well, that's good. We've made a good first step. Yeah, I've been paying on them to get them down where are they been cut up they've been cut up a long time ago well that's good oh we've made a good first step so hey all joking and kidding around aside okay when you hang up the phone call them and pay them both off okay all right love you love you we appreciate you calling seriously open phones at 888-825-5225 you jump in we'll talk about your life and your money. Taylor is in Houston, Texas.

Hey, Taylor, how are you? I'm doing just fine, guys. Thank you so much for taking my call. Sure, what's up? Well, a few months ago, my wife and I finally decided to get really serious about paying off the debt and moving forward. Good. I sold my car. She got to keep hers because happy wife, happy wife.

Exactly. Wife gets the good car. It's federal law. Yeah, that's right. I value my own health, too, you know, so I wanted to make sure she was driving. I want to wake up alive. So I sold my car and bought a 1980 Datsun to get by in the meantime. Wow.

Did you say 1980? Datsun. Yep. He said Datsun to get by in the meantime. Did you say 1980? Datsun! Yep. He said Datsun. The 1980 Datsun 280ZX. Wow, that's awesome. It leaks every time it rains. I remember those.

Does it have the roll-down windows? No, this one was a very luxurious model that had the electric. Okay, my bad. Continue. Please continue. But yeah, we affectionately call it leaky because it does leak every time it rains. I love it. Anyway, we're out of debt.

We've got our three to six months of emergency funds saved up. You did it. Time to buy a car, dude. Thank you. Thank you. So just wondering what you guys would recommend as far as budgeting for that new vehicle. Obviously not new, but new to me. Well, you gonna pay cash obviously yes sir okay how much cash have you got well aside from the emergency phone i've got another uh 35 000 and maybe almost 40 by the

end of the month okay so you've been saving good. All right, so what's your household income? We make about, this year we'll probably do close to $210,000 this year. Okay. Well, I don't have a limit then up to $35,000. Our guidelines are pay cash, and the total of all your vehicles should be no more than half your annual income. You're not going to violate that by buying up to $35,000, and I suspect you're not jumping from leaky to $35,000. No.

I think you're going to get wherever you want to go within that $35,000, brother. Yeah. No, goodness gracious. Way to go. Great job saving up. Touchdown. Bye, Dotson. See you, leaky.

It's about to leave. Y'all are like sacrificing, Dave. Maybe get some firearms. C4. And shoot leaky. Send it to us here in Tennessee. We'll handle that bad boy. We'll set it free.

This is the Dave Ramsey Show. Well, business owners, we just finished up Entree Leadership Summit 2020 last week, and 2021 Summit is almost sold out. Yeah, that's bizarre. It's going to be Marcus Buckingham, Pat Lencioni, Craig Groeschel, Simon Sinek, Jim Collins, Christy Wright, Chris Hogan, Dr. John Deloney, Ken Coleman, and me. And for some reason, I do not see the dates on this, which is weird. But they'll tell you what they are, I guess, if you go to the website or hit the text, the word Summit to 44222. But it's going to be an incredible lineup.

And there's just a couple hundred tickets left. They almost sold out with the actual attendees last week for next year. So it'll be, I think it's in may again if i remember right but anyway uh marcus buckingham patrick lincione craig grochelle simon cynic jim collins this is a lineup if you're in business and you want to learn how to be a better business leader you want to grow your business grow yourself this is the premier leadership event and chris that's all the scores come in you got one of the highest scores of all the speakers. Oh, did I?

Yeah. Oh, that's fantastic. Yeah. You never got a score that high on any of your tests in school, but that one was really good. I don't know why you had to go there. Okay. We were May 16 to 19.

Thanks. Thank you. Thank you. I'm going to turn the other cheek to that. I'm just saying that your scores were outstanding. I mean, it was like. Well, that's awesome. I mean, it's like a 97. That's fantastic.

Here's the thing. I don't know how each year you pull this off. I don't know how you get people to come. These are world-class individuals, people that I've read. But, you know, Marcus and Simon. I mean, just getting these people to come to one location. And it's just remarkable. And so if you're out there and you're a business owner, uh, or you're someone that wants to

be a better leader, you, you will never get a chance to see these people in one location other than this event. And you need to come check it out. Yeah. It's going to be a lot of fun too. It was this year. It was crazy. It was COVID crazy, but, uh, man, people are nuts.

But the, uh, anyway, we, we, it was, uh, the people people are nuts but the uh anyway we we it was a the people that were here had an incredible experience we had an incredible experience um we got to spend time uh with craig groeschel and the time with the speakers for me personally they're all just about all of them friends yeah uh damon john was down and i actually got to have dinner with him him and his guys came up the the house and had dinner afterwards. So he's a new friend now. Yep, Mike Rowe. Yeah, Mike Rowe, same thing. I've been friends with Mike, but I didn't spend a lot of time with him.

Right. And it was good to just see him, and he's just such a great guy. Every one of these guys that were here were absolutely stellar individuals as well as communicators. Absolutely. Same won't be true next year without a doubt. No, you need to, seriously. And many leaders said they were so grateful for the event. And the thing that I love this year more than I'd seen before, Dave,

was you not only had leaders, but they brought other leadership team members with them or other people in the business. So it's just a great opportunity for you. Definitely go check it out. Get your seats. They are going to move quickly just because it's unprecedented to get this caliber of speakers in one location i'm actually a little shocked we have any left but entree leadership summit oh wait a minute this says

waiting list okay maybe it is already on a wait list it may be sold out okay i'm half but read my copy that's bad all right so anyway you find out what's going on since i don't know apparently text the word summit to 44 222 summit to 44 222 it may already be sold out all right marissa is with us marissa is in palm beach florida hi marissa how are you hi dave hi chris thanks for taking my call i'm good good how can we help um so So my biggest goal really is to purchase a home before I turn 30. I'm on Baby Step 2. I make about $72,000 a year, and my debt right now after working on Baby Step 2 is $112,000 in student loans. I have a TSP with the government matched at a 5% for a total of 10% match. I previously spoke with a previous employer I had about rolling over my old 401k.

So I kind of want your opinion on how I should move forward. I will be getting married by the end of the year and kind of just want to know what to do with those 401k funds or just finish paying my debt before I purchase a home. Ah, wow. So you're on the cusp of doing a lot of stuff. You're looking and life's ahead of you and you're trying to make decisions and lay out a game plan. And Marissa, I'll tell you this. I want you to make two-year decisions, young lady, and that is look out ahead, make some decisions that you're going to look back on in two years from now. You're going to be grateful you made them. And that, first and foremost, will be cleaning up this debt.

And I know you have this desire to own a home, and I have no doubt that you will. But when you do it ahead of schedule, it can end up more of a curse than a blessing. So slow down. Get intentional. Let's crack out the student loan debt. Be intentional even with the wedding you all have coming up. Save, pay cash for that thing and then gain alignment together as you all are working to continue paying off debt. Renting somewhere for a year or two is not a sin. I've looked at it. How old are you?

I'm 28. Okay. And when are you getting married? By the end of the year. I'm in Florida now. What's his financial condition? So we met in grad school. We're both social workers for the government. He makes a little bit less than I do, maybe about $60,000. And he did purchase a home where his mom lives in in Louisiana with a conventional loan, and he got hurt in an accident and got a settlement from that. So he's pretty okay financially. So he's debt-free other than his mom's home? And I think maybe like $30,000 in student loans.

Okay. So let's say we're combined. That makes you having $110,000, $120,000 in student loans. Okay. So let's say we're combined. That makes you having $110,000, $120,000 a year income. And you've got, you said you had $110,000 in student loans and he has $30,000. Did I hear that right? Correct. Okay. Unless, does he have a pile of money from that settlement still laying around?

I believe he does. He did set, I think, maybe about $25,000 aside in one bank account. I mean, I think he has other funds from different investments. Unless I start hearing something else in the math, which I haven't heard yet, that there's missing, maybe there's information I don't have, I don't think you're going to own a home when you're 30. Okay. And there's information I don't have. I don't think you're going to own a home when you're 30. Okay, and that's what I wanted to call. Yeah, because you've got $140,000 to clean up with $110,000 income married

and $25,000 in the bank account that you can throw at it. So you just can't quite get there in six in six months or a year and that's really about all you got left after you get married right correct so you're going to make it by you're going to make it but it's going to be 32 or 31 okay but when you do it you'll have zero debt you'll have your emergency fund in place you do not not cash out 401Ks or old 401Ks even unless it's to avoid a bankruptcy or foreclosure. And because the government's going to take taxes out of it right now, there's no penalty. Normally, there's a 10% penalty too, but they're going to take taxes out of it too. And so that's going to be like borrowing money at 30% interest to get out of debt.

You don't want to do that. So roll your old 401Ks to IRAs. get with SmartVestor Pros and do that, and then we're going to give you a wedding gift. We want you to get into Ramsey Plus and go through Financial Peace University and start using the every dollar budget, and you've got to start working together as part of your pre-marriage counseling and getting ready to be married, not combining your finances until you're married, but working together and learning and hitting these goals and saying saying okay then when as soon as you do combine households then you put

it into high gear and knock this stuff out and i think you're going to have a house in 31 32 years old within three years but i don't think you're going to have one if you do it smart right within by the time you're 30 no i agree dave and i want to clarify for everyone out there i know the government the cares act has said that you can get to your 401k and they've gotten rid of the 10% penalty. They did not get rid of the obligation to pay income taxes on the money that you pull out. So I don't care about the CARES Act. I care about your financial future. You've got two reasons that you would touch that money to stave off a bankruptcy or to prevent a foreclosure. Those are the only two reasons. Did you just say you don't care about the cares?

I sure did. I don't care about cares. Don't care about it. Is that a double negative? Is my English teacher rolling over? No, it's just care care. Oh, okay. It's a care care.

I don't care about care. Hey, we're care bears. No, you are. You're a sparkle bear. I know what you are you're sparkle bear i know what you are oh help me lord way too much yeah time to get this hour over with about 45 seconds ago that puts this hour of the dave ramsey show in the books Hey, guys. This is Kelly, associate producer of The Dave Ramsey Show. Did you know over 16 million people listen to The Dave Ramsey Show every week?

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