The Ramsey Show - App - Facing Retirement With No Money and a Lot of Debt (Hour 2)

Episode Date: June 6, 2018

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🎵 Live from the headquarters of Ramsey Solutions, 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 am Dave Ramsey, your host. You jump in, we'll talk about your life and your money. It's a free call at 888-825-5225. Robert is with us in Los Angeles to start off this hour. Hey, Robert, welcome to the Dave Ramsey Show. Thank you, Dave. It's great to talk with you. You too, sir. What's up in your world? Well, I'm 75 years old, married to my lovely wife for 51 years. We're $44,000 in debt and only have Social Security and a small amount of eBay income. I'm wondering how in the world can I retire somehow in 10 years with a little level of security?

Hmm. Hmm, yeah. Well, I mean, there's two sides to the equation, the income side and the outgo side. Okay. I don't hear in your explanation severe overspending, and maybe in the past, but today you don't have enough money to be overspending. No. And so the best way to retire is to clear the debt and obviously pile some money into retirement accounts or do a little bit of wealth building over this next decade that you've got, which leads me to ask the question, what can we do to get your income up?

And the first thing that pops into my head is, how can we expand this eBay business? Well, we've got quite a bit of inventory. We had it up to $1,400 or so a month. It's dropped down to $200. Why? Probably emotional things my son gave us a free house to live in uh we had 28 000 in debt at the start of that a year ago and we borrowed to move we borrowed uh to buy the lawnmowers and different things to run, not knowing about you, and just ran it up. Okay.

We can bring that back to $1,400, $1,500, maybe more. Right. But your eBay income went down why? Just emotional reasons. I just can't get stuff in a funk. I don't know. Oh, I got you. Okay.

No physical reasons. It's hard to work on it when your hope has kind of been kicked out of you. I got you. Okay. That makes sense. All right. Well, I think there's a couple things that are going on. One of the things I learned about my spiritual bulk is grace means i can put

stupid in the rearview mirror okay if i've ever done something stupid and all of us have um most likely most of us today but uh i mean we could take like that last little bit of debt you did and call it stupid that'd be pretty easy to do and but we could put that in the rearview mirror and say okay i've learned my lesson. And at 75, I'm not too old to learn lessons, so I'm done. I'm not borrowing money anymore because it's not working for me. It's stealing my hope. It's stealing my emotional capacity, and I'm not going to do it.

So now what am I going to do to get out of debt? I'm going to get excited about eBay like I was 15 instead of 75, and I'm going to go bananas and just sell everything in sight, and I'm going to find some way just sell everything in sight, and I'm going to find some way to do something on eBay that I'm buying something and reselling it on eBay in moderate volumes until they sell to where I can create an eBay income that is $30,000, $40,000, $50,000 a year. Jump on eBay or jump on Google even and read the stories of what people have done as an entrepreneurial activity with

eBay stores to make bazillions of dollars. They're inspiring stories. And I think you might, if I were in your shoes, what you're describing with the funk is you might need a little inspiration. You might need a little thing. If I see somebody else do it, it makes me believe I might be able to do it, you know? Right. And so, I mean, I remember reading one on there.

I don't remember what the numbers were, but the guy did like a million dollars in volume in used golf clubs. He would go, because golf clubs won't sell for nothing. I mean, used golf clubs are just dirt, right? So he would go to garage sales and buy them for $5, polish them all up, get the steel wool out and shine them up and take really good pictures and put them on his eBay store and sell them for $100. And he ended up doing a million dollars, and I believe it was a million dollars in used golf clubs, or it might have been more.

But you can look that story up. It's out there floating around. It's an old story. It didn't happen last week. But, I mean, stuff like that, you know, you can do all kinds of stuff if you believe you can and if you've got enough reason to, enough motivation. And, dude, you've got the motivation.

I'm trying to get it. I mean, you've got desperation. It's getting there. Desperation is motivation. Desperation is, I found you. Well, I'm honored. Because of you, my car is sitting in the driveway with a dead clutch because I won't put it on a credit card.

Good. And I thank you for that. You're welcome. And let's get her fixed, though, and let's get this eBay thing going. I want to get your income up and get you winning again. Hold on. I'm going to send you a copy of our book, Entree Leadership, which is about business and starting and running a business.

I don't know that you necessarily need to start some big, huge operation, but something you and your wife can do to turn some money, whether it's eBay or Etsy, I don't care. Some way to turn some money in is your biggest and best mathematical hope. That's where your mathematical hope will come from. You don't borrow anymore, period. You've already drawn that line in the sand. Good for you. And then we find some way to increase our income, which makes the sun shine in the windshield

because there's storm clouds in the rearview mirror. But that's in the past. Let's drive away from it. Drive away from the storm towards the sun. And that's what we're all trying to do, learning from our mistakes. Open phones at 888-825-5225. Emmanuel is on Twitter. Dave, what do you think of investment apps like Acorns and Stash?

I think they're cute. I mean, Acorns is you round up. These round up things are you save a nickel, you save a quarter. By the way, if you save a little bit, you're going to have in your account a little bit by definition. And so the danger of something like that, they're not bad. I mean, it's okay. But if that's your only retirement plan plan on eating dog food because if you save a nickel in a quarter you're going to have a nickel

in a quarter well it adds up well not too much i mean you start saving 15 of your freaking income seven eight ten thousand dollars a year which is not what these are leading you to do. That's how you become, you reach, you know, everyday millionaire status. And you can do that, but not if you think you're doing something, which is the danger of these little apps. It makes you feel like, oh, I'm saving money in Acron. I don't have to worry about it. Check that box. Money saved.

I'm done. Move on to the next thing. Let's go buy something. We're saving money in Acorns. Save my nickel. Save my quarter. I mean, if you're saving more than that using one of those apps, fine. I'll shut up about it.

But most people aren't. The very premise of those is that you just round up and you save your, you know, it's like saving the money out of your change jar or something. Back when we used to get change. Back when people used to use, like, real cash. Like I still do. Anyway, they're not bad unless it causes you to emotionally check the I saved money box so I don't have to, which would lead you down a path you don't want to go to. So I want you to save more money than they're suggesting.

If you want to do that too, that's okay. It's fine. I don't use them. It's more trouble than it's worth for a nickel, as far as I'm concerned. This is the Dave Ramsey Show. There are few things in this world that irritate me more than when people pay too much for their mortgage. So many of you are paying way too much, and you don't even know it. I've got my good friend Mike Hardwick with Churchill Mortgage here. Mike, how do you help these folks?

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Equal Housing Lender 761 Old Hickory Boulevard, Brentwood, Tennessee 37027. Joy is with us in Mexico. Hi, Joy. Welcome to the Dave Ramsey Show. Hi, how are you? It's such an honor to talk to you. You too, Matt. How can I help? My dad started a tree nursery several years ago. And so about six years ago, we started borrowing money to grow it bigger. And so now we have an income of around $250,000. $30,000 of that would be profit.

And we're in debt $130,000. Wow. Yeah. And my dad got diagnosed with cancer about one and a half years ago, and he didn't have medical insurance. And so last year we spent around $150,000 in medicals, and so we owe about $25,000 of that debt. Okay.

Wow. Okay. And so I'm just wondering, what can we do to get out of this? We're going to need some future medicals for him, but then, of course, I'm hoping we can turn the business into more income and less expenses to somehow pay off the debt. There you go. That's exactly where I would have headed. I would have trimmed expenses because you're only running about a 12% margin on this, which is not great.

Yeah. In something like that, your margin ought to be steeper as far as I'm concerned. And, you know, obviously, instead of making on $250,000, instead of making $30,000, if you made $60,000, suddenly we've got some money to throw towards the debt. Now, out of the expenses, how much of that is salary to family? It would be around $20,000 maybe. So $250,000 in revenue, and you only spent $20,000 in family salaries. Yes. We import lots of the trees from the states, and so the tree expenses are very high.

And then, of course, because we grew it bigger, we have lots of the worker expenses. That's very high too. And then about two, three years ago, my dad wanted to start a side business with plastic, making plastic pots and selling those, but it didn't make much profit. So far we spent around $40,000 maybe trying to get that, but it didn't obviously not work. So we do have one option. We could buy another $5,000 machine, and then we could sell. We have a pile of plastic laying there. We could sell that for around $50,000.

We're wondering if we should do that maybe. Why don't you have someone else just make the pots and save the $5,000? Yeah. Yeah. Yeah. We've been looking into that, too. This machine that we need, it needs to come from the States, so it would be expensive. But, yeah, we are looking into that. I'll try to find someone in Mexico that has the machine that you can sub the manufacturing

out to and go ahead and get rid of the plastic and get out of that business. Okay, it's even more bothersome now that I have the numbers on the nursery. How long has this nursery been in the family? About 15 years. Okay. 15 years that my dad started it. How many family members are working there for free? It's me and my one brother.

Okay. And so what could you earn if you weren't working there? About the same. Well, maybe a little more. What are you being paid? We're being paid like, well, I'm being paid like $5,000 per year, and my brother about $15,000. Okay.

He's married. He's married. That's the $20,000, and your dad's taking nothing out. Yeah. Well, that's the thing. We didn't know how to separate it. You couldn't find a job making more than $5,000 right now? Not very.

The pay here for workers in Mexico or right in this area where we're at is very low. Okay. All low. Okay. All right. Okay. Okay. So you're being paid a fair wage, and he's being paid a fair wage. Yes. And then my parents just take out of whatever they can.

The $30,000 profit. Yeah. Yeah. Okay. And, of course, the $150,000 medicals, that screwed it all up. Yeah. No, what screwed it all up is when he borrowed the money to start with. Yes, absolutely.

Because that drains you down. So we've got to just systematically start taking the large portions of his profit and any money you can make off the plastic pots once you get them subbed out, the manufacturing subbed out. But I don't think I'm going to buy a $5,000 machine for one transaction because you're not going to stay in that business. It's not worked is what you described to me. So what I'm going to do is just try to continue to grow the revenues on the nursery

and shrink the expenses on the nursery, increase the profits, take all the profits that we can squeeze out of your dad's portion and throw that at the um throw that at the debt and begin to work your way out um but 30 000 on 150 000 is a fairly long walk like a five or six or seven year walk that we're talking about here so but if you could double that then it cuts that in half, meaning double your profits by cutting your expenses and increasing your revenues. So it's all about that. It's all about working that. And all of us that are in business work on that all the time,

increasing our revenues, decreasing our expenses, increasing our revenues, decreasing our expenses. I mean, it's a constant rhythm of operations in a business. No matter what the size of the business is, that's the only two parts of the equation. It's just like your personal budget at home, folks. Hey, thank you for the call, Joy. It's an honor to talk to you. I hope you guys are able to turn this around.

If I can help again, you call me back anytime. Jonathan's with me in West Palm Beach, Florida. Hi, Jonathan. Welcome to the Dave Ramsey Show. Hi, Dave. It's a pleasure to talk to you today, sir. You too. What's up?

All right. So we've got quite the uphill battle to climb with our debt. My wife's a nurse and I'm a pharmacist, and we owe like $370,000. We've been on a budget for the past year. We've been able to pay like $30,000. We found out in February that we've got our second baby on the way, so we're just piling up cash. And the baby's due in October.

We're going to get back to paying things off. And really the question is... What do you guys make? We make about $180,000 a year. Why have you only paid off $30,000? That's lame. Well, I mean, I know we need to dig deeper into the budget. Oh, that would be an understatement.

You have $300,000 in debt and $180,000 income, okay? I think you should put $110,000 a year for three years on your debt and be done and have absolutely no freaking life. Oh, and cry me a river you're living on 70 grand yeah i think it's just too much extra activities here and there yeah i think take away from it yeah but uh the main question i don't think i can help you until you're ready to get out of debt i don't think i can help you you going to have to get really angry about this situation because, dude, you are freaking broke and you're doing almost nothing about it.

Yeah. Yeah. All right. So the question was how long I should wait until I start to restart my 401K? That will be approximately three years after you have no life for three years and get out of debt. Okay. That would be my prescription. I'm serious, man.

You're going to have to get with it. You are playing with this, and it is not moving. Your attempt is a joke so far. And you've got babies coming, and she's going to reach a point that this $180,000 income, which is about half of it's hers, she's going to reach a point she don't want to do that anymore, and you're going to still be sitting there with Sally Mae all loaded up in your spare bedroom. And you have got to address this monster, this elephant sitting in the middle of your living room. And it's making a mess, and you've got to get her out of there, man.

It's a big, big, big deal. I mean, you're a young dad, two babies, a young wife. I mean, you should be so scared you can't breathe, and you're not yet. I'm going to try to get you there and I'll walk with you when you want some help, but you're going to have to get like way more serious and pissed off about this than you are right now. Hope that helps you, sir. You should keep listening. I'll keep messing with you. It's my job. I love you and I want you to win, but right now what you're doing sucks. This is the Dave Ramsey Show. With more frequency than you know, I get calls and emails from people dealing with the recent loss of a spouse or a parent.

You can hear the struggle and the heartache that they've been experiencing. And at a time they should be grieving, what breaks my heart the most is the strain and tension that they're going through because of money. Especially when it's a situation that could have been avoided. If you have a family, it is your responsibility to have term life insurance. It's one of the things you do to say I love you. And yes, this is an ad for Zander Insurance. But since this is one of the most effective ways I have to get my point across, so be it. For over 20 years, I've been telling you about the importance of term life insurance and protecting your family. Listen, you need to check out Zander.com or call 800-356-4282. I can't say it enough. Protect your family. It's what you're supposed to do. Go to Zander.com or call 800-356-4282 Thanks for being with us, America.

We're glad you're here. If you're attending a graduation party for a high schooler, it's not too late to get the perfect gift. You can get our new graduate survival guide, Five Mistakes You Can't Afford to Make in College. It's on sale right now for $15.99 at DaveRamsey.com. This is the book and the video you wish you had before you went to college. It's by Rachel Cruz and Anthony O'Neill. Ramsey Personalities did the book and the video, and your college-bound grads will love it.

Very, very popular gift. DaveRamsey.com. It's $sey.com. It's $15.99. The Graduate Survival Guide. Five Mistakes You Can't Afford to Make in College. Jeff is with us in Frederick, Maryland. Hi, Jeff.

How are you? Good. How are you, Dave? Better than I deserve. What's up? I had a quick question. My girlfriend and I have been in a relationship, and we have enough time in where, as a couple, we're starting to make decisions for us rather than individually. And I was wondering, in your opinion, should we go into your program together,

you know, make each of our debts one and cover it that way or do it individually and support each other in our own different venture? You should keep them completely separate because the law does. Okay. You've got no protections, and it will really – it could even start to mess up and often does start to mess up a relationship when you pay debts off for somebody you're not married to. The person that's getting the debts paid off feels weird, and the person paying them off feels weird,

or their family members looking on go, this ain't right kind of thing. And so you get all these other dynamics going on. It's different than when you are married. And so I highly recommend you emotionally support each other and encourage each other, be each other's cheerleader as they go along, but keep your debts separate. Legally speaking, you have a roommate until you're married. And if you had a roommate in college, you wouldn't pay their debts.

You'd cheer them on, but you wouldn't pay their debts. And it's not a question of love. It's not a question of romance. It's not even a question of commitment. It's a question of how the law looks at this and who's left holding the bag if this deal breaks up. And that is in the back of everybody's mind because there's just no protection. And the event you go through a divorce, it's a whole different thing, God forbid, right? And so, you know, marriage solves a lot of that.

So if you're going to act like you're married, you might as well be married as far as I'm concerned. But if you're not going to do that, I would tell you to keep everything separate, completely separate, all your business. You have a roommate. Treat them like a roommate. That's what you're doing. All right. Nick is in West Palm Beach, Florida.

Hi, Nick. How are you? I'm doing great, Dave. How about yourself? Better than I deserve, sir. What's up? Yeah, so I just got my first job. I'm 17.

I just wanted to ask what you would recommend to divide up my money out. Good for you. What are you doing? What's your job? I'll probably be a bagger. At the grocery store? Yeah. Okay, cool.

You have any idea what you're making? It'll be about $12,000 a year. Okay. All right. So you're working a lot then? Yeah. Okay. Very cool.

$1,000 a month. All right. Well, all I ask people to do is to do it on purpose and on purpose means on paper write down what you're going to have your income for this coming month it might be different each month because you might have different hours there might be a vacation or not i mean you might be in school or out of school that kind of stuff so you know this coming month what is going to be your take-home pay, and then give every one of those dollars an assignment. Generally speaking, there's three things you do with money.

You give it, you save and invest it, and you enjoy it. And you probably ought to do some of all three. All right. Have a portion of it that you give automatically if you attend church you know you put it in the plate you're tithed that's a tenth of your income if you're like an evangelical christian like me that's what you would do um and so a tenth of your income going that way then so that'd be like a hundred bucks out of your thousand okay i got 900 left what else am i gonna do i gotta put gas in my car. I've got to put tires. I've got to buy insurance. I've got to put brakes.

Go into a movie with my girlfriend. Whatever you're going to do, right? Yeah, that's right. Then you write out what I'm going to spend the money on, entertainment, car, gas, insurance, other things, and then how much I'm going to save and invest. Are you heading to college after school? Yes.

Who's paying for college? My mom and dad are going to cash flow it. They've got the money. Yeah, my mom just, as she just graduated from college, she's becoming a nurse. Very cool. That's nice. What are you going to study? I'm not sure yet.

Okay. When are you going to go? When do you graduate from high school? In 2020. In 2020. So two years. Okay. When are you going to go? When do you graduate from high school? In 2020. In 2020. So two years. Okay.

Yeah. We've got two years of this action going on. Is your car paid for? I don't have the car yet. Okay. I'd make that my goal on my savings then. I'd start saving up and buying a car that will take me through college for cash. Yeah, that was one of my goals. That's a big goal.

That's a big motivator's a big that's a big motivator for me if i'm in your shoes i'm giving me some wheels man you know transportation yeah and i that i was dying for that when i was your age so um and you know what you can do too you can buy a hoopty first and then save up and sell the hoopty and buy another better one later you don't have to wait until you have five thousand dollars you know uh yeah so you can buy a junker and sell it because junkers don't go down much in value while you're driving them your friends make fun of them but they're broke so who cares what your friends think so broke people making fun of your financial plans is always a good sign for the rest of your life nick so yeah save up buy a car make sure

you're giving some and make sure you're giving some, and make sure you're managing your expenses so that you have more to save for the car. My primary goal out of giving, saving, and spending would be saving if I were in your shoes because I don't want to pile up as much as I can and get as nice a car as quick as I possibly can. David's in Phoenix, Arizona. Hi, David. Welcome to the Dave Ramsey Show. Well, thank you, Dave.

What's up, man? Well, I'm just looking for some advice. Going through a pretty difficult situation. I'll be married 14 years here in July to my beautiful wife. But a sizable number of those have been kind of overshadowed by what I'm kind of coming to terms with is mental health. I'll give you a little inventory. Back in 2010, I was in law enforcement.

I had a pretty good career. I was pretty well respected. Ran into a supervisor. It was a difficult relationship, so I'd come home stressed. And looking at that, it's like I had a cold. My wife got pneumonia. It escalated very quickly. I didn't really understand it, and it came down to I said, you know what, I'm going to quit this job and focus on my marriage.

About nine months later, my wife actually secreted all of our family cash, over $10,000 from me. And at the time, my response was, you know, I'm a bad husband. I was very apologetic, tried to, you know, I'm a bad husband. I was very apologetic, tried to, you know, make nice with her. We actually went on a very expensive vacation, like she'd been explaining that we hadn't done that. And afterwards, she was in panic that we had spent so much money. And I was just at a loss because I thought we'd agree, you know, after all of this, we'd agree to spend the money. Fast forward to 2015, 16, some more overt paranoid thinking started to happen. And my wife actually had to check herself into a behavioral health hospital. Once again, she secreted the cash in the spring of 2016. It was over $12,000 cash. And at that time it finally dawned on me,

Dave, this isn't a relationship problem as much as there's a deeper problem going on. A real mental illness, yeah. Yeah, I put all this passion. How can I best help you today? Well, you know, I'm trying to help her. I feel like my primary thing is there's denial about the mental illness even to this day. She spent five months in a Christian shelter last year in our town. And now she came home briefly, had another paranoid attack with her parents. But I'm working on the relationship.

My question is, it seems like my wife is triggered. This may be PTSD. She's triggered by the fact that I've taken her access away to the cash. No, you have to. You have to. She's incapacitated. I don't care. You have to. She's incapacitated. I don't care if she's triggered. She's incapacitated.

She does not have the ability to make these decisions, obviously. And until she gets her capacity back, I don't care if she's triggered. She's got to have mental health counseling and help, but you giving her money and access to money

is not going to help this. It's going to make sure you're bankrupt and you're not going to be able to serve her and care for her. No, she has zero access to any is not going to help this. It's going to make sure you're bankrupt and you're not going to be able to serve her and care for her. No, she has zero access to any business of any kind. She's incapacitated. That's what you just described to me.

I'm so sorry you're facing this. This is the Dave Ramsey Show. Hey, business leaders, are you hiring? Posting your position at job sites and waiting and waiting and waiting for the right people to see? Well, you need ZipRecruiter. ZipRecruiter knew there was a smarter way, so they built a platform that finds the right job candidates for you. ZipRecruiter learns what you're looking for,

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ZipRecruiter.com slash Dave. How are you? Zane is with us in Jackson, Mississippi. Hi, Zane. How are you? Very good, Dave. How are you? Better than I deserve. What's up? I have a quick question. I wanted to get your opinion on something. My fiancée and I are getting married in May of next year. We will be renting for about $500 a month, like you recommended for our first year of marriage.

And her car is paid for. Her parents are big Dave Ramsey fans. They followed that their whole lives. They're debt-free. So her car, they paid cash for her car. Mine, on the other hand, my parents paid $29 for my car. The balance is $22,000. Yes.

Okay. Yes. So I want to get your opinion on, I definitely want to sell within the next year, I believe. I wanted your opinion on selling private party versus dealership or keeping it and paying it off. What's your household income going to be? It will be within anywhere from $50,000 to $100,000. Okay. And how much other debt do you have other than your car?

None. Do you like it? I love it. Okay. The rule of thumb I use is twofold. One, you don't want the total of all your vehicles, anything with wheels or motors, to be worth more than half your annual income. Okay.

If it is, you have too much invested in things that are going down in value. And so if you make $50,000 on any more than about $25,000 worth of stuff, it's not a perfect formula. But the point is you don't want $50,000 worth of stuff in your life going down in value and then wonder why you're broke. Right. Right. And so if you make a half million dollars a year, I mean, you can drive about whatever you want to drive, right, and pay cash for it. So that's what you've just got to think through. And then the other rule of thumb I use is can you be debt-free within two years?

Now, on that guideline, what is your wife-to-be's car worth? It's probably worth about $25,000. Yes. Okay, so you would be owning $50,000 worth of vehicles. Okay. And I wouldn't do that if I made $50,000 a year household income. Right. I think that's too much, so I would sell your car.

Okay. And now, then the question is, do we sell at private sale or do we sell it at the dealer? Well, I mean, you're selling it at wholesale or you're selling it at thousands of dollars more. The difference in the transaction with you would be somewhere probably around $3,000 difference. So I'm going to sell it to an individual. I want $3,000 more. Right. That's what it comes down to.

And there's nothing on fire here. You've got the ability to pay for the car as you go along, but you guys are just going to have too much tied up in rolling stock if you do that. You can get you a good car later uh when you're making more money and um and you pay cash for it of course but i i personally would not own vehicles they're worth fifty thousand dollars when i make fifty thousand dollars a year i think that's a mistake i'd rather have your money going in other directions that are building wealth rather than losing wealth. And here's the thing.

You're young. You're just getting started. If you drive like no one else later, you can drive like no one else. Now, the different part of the equation might be if your income is going to double in the next three years. Like if you're starting off your careers and this $50,000 is a very, very, very temporary thing, and you think you're going to be at $100,000. Well, if you're going to be at $100,000, then you might want to keep these cars both of them and pay it off but if you're going to be at 50 for the next three years or 55 or 52 or whatever for the next three years right in that range no i would sell your car in that case donna is with us in

houston hi donna welcome to the dave ramsey show, thanks for taking my call. Sure, what's up? Well, my husband is currently, well, he's retired, and I plan to retire at the end of this year. Way to go, way to go. And we own a second home, and I want to know if we should take money out of our retirement savings to pay that off. What's the second home mortgage? $107,000. Okay. What's it worth? About $175,000.

Where is it? What is it, a beach or what? It's not. It's a college town, and we love our college football. We bought it when our kids were in school. So you have a $200,000 property that you stay in to watch football? Well, and other activities as well. What, 10 times a year? No, probably. There's five home games.

Yeah, but we go up for other things too. 10 times a year? Maybe 20 times a year we go up there. Wow, you're committed. Okay, and so 20 times a year we go up there. Wow. You're committed. Okay. And so how much is in your retirement accounts? Just over a million dollars. Okay. All right. Yeah, I'd take enough out and pay it off.

Okay. What's your home worth? About $450,000. Okay. What's your home worth? About $450,000. Okay. And so we're saying that you guys are worth in the neighborhood of $1.6 million, and you have a $200,000 toy in the college town. That's correct. That's okay.

That's okay. Great. That's what I wanted to hear. That's a cool ratio. It took me a minute to get there with you, but, you know, my net worth is considerably more, and I'm not bragging or shaming or anything like that, but I'm just trying to weigh it out in my head. I've got a $300,000 condo in Knoxville that probably $400,000 actually is what I was worth. Now I think I paid two-something for it.

And, you know, we go to like six ballgames a year, and that's about when we use the stupid thing. And I've thought about selling it a couple times, but I'm like, what would I do with that money? I'd turn and invest it back in real estate. So it's a small enough percentage of my net worth, in my case, that it's more of an aggravation than it is anything else. And I'm trying to think, because that's the way you need to be about toys. And second homes are toys.

They're like really expensive classic cars that you have in your garage, you know, kind of thing. They're just toys. Now, you've earned the right to have a $200,000 toy though out of a million six million eight net worth way to go way to go what did you guys uh did you guys inherit a bunch of money to become millionaires we did not my husband has been so good he was um he's retired military uh and um has a wonderful pension so you have a 20-year plan on that at least. We have the 30-year. The 30-year. Ding, ding.

30 years. Yeah. Okay. So he's been a wonderful saver. Obviously. Obviously. All these years. How long have you all been married?

Oh, gosh. 36 years. Yeah. Wow. Way to go. Can I ask you one other quick question? Sure. We have about $550,000 of that in Roth savings, Roth IRA.

I'm assuming that's where we should take it. The Roth, you don't have mandatory withdrawals at $70,500, and you do on traditionals. So I would go ahead and take it out of the traditional. And pay the tax? Yeah, yeah. That's painful. I just added just added 25 grand to it okay you can afford the pain you know you can afford the pain and you guys are getting legitimate i mean i pushed you on this you're getting legitimate enjoyment out of this property we are we are we

love it yeah we love it and our kids love it And we all went to school there. Yeah, where is it? College Station, Texas. Oh, okay. So you're Aggies. You're Aggies. We're all Aggies. Cool. Cool. Good for you.

Hey, that's a fun thing. That's a cool thing to do. And it dates all the way back to when they were in school. That's the way with our condo. We bought the condo when the kids were in school back years ago. Yeah. Because we're running back and forth down there and paying these ridiculous football weekend prices for hotels. And I got over it, and real estate dipped down.

I found a deal, and that's how I got in. So same kind of a deal. I can relate is what I'm saying. But good job. Well done. Congratulations on being an everyday millionaire. Thank you so much. Thank you for calling in.

Open phones at 888-825-5225 chris hogan's gonna join me to host an everyday millionaire theme hour tomorrow and we're gonna take questions from people just like her are not questions we're gonna question them we're gonna interview real everyday millionaires and ask them how they got there um like you know what have you got to do and by the way if you're an everyday millionaire and you want to participate in an everyday millionaire theme hour, everyday millionaire is just anybody that's a millionaire, by the way. I don't care how you got there. If you inherited the money, you're an everyday millionaire.

If you worked for it and saved it all up, you're an everyday millionaire. I'm with you. If you hit the lotto, you're an everyday millionaire. That's a pretty rare one. I've never met one of those yet. But anyway, we'd love to talk to you. So just always email us at DaveOnAir at DaveRamsey.com. Kelly will get back to you as our associate producer, get you signed up to be on an Everyday

Millionaire theme hour. Now, tomorrow's show is already full, but we'll get you on one of the future ones. Now, if you want to learn how to do this, Financial Peace University is how you do it. It's a one-year membership. It changes everything, you guys. And if you want to put it into practice, use every dollar, right? If you want to learn how to do the investing, you sit down with a SmartVestor Pro. These are the ways people become millionaires.

They do the things we talk about. You hear it on the show here all the time. That puts this hour of the Dave Ramsey Show in the books. Hey, it's Blake, Chief Production Officer for the show, and here's a little tip for 2018. Go download our revamped Dave Ramsey Show app from the App Store. We're always listening to your feedback and adding new features to make it even better. Check it out. Okay, I need you to listen to this

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