The Ramsey Show - App - Finding Mutual Funds That Will Outperform the S&P 500 (Hour 1)

Episode Date: March 1, 2019

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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. Open phones at 888-825-5225. That's 888-825-5225. Amy is with us in Louisville, Kentucky.

Hi, Amy. How are you? Hello, Dave. Thank you for taking my call. You've been a pure blessing to our financial health well thank you how can i help today um i have a question i um i took out a term life insurance And in 2016, I was deemed disabled, so I'm unable to work. And my insurance agent offered me the opportunity to be able to have free insurance payments that they would take it over due to my disability. And at first he made it sound like it was great, you know, they would just take over

my regular policy and it would be no problem. Well, further into it, he said, oh, the only way they'll pay for it is if you transfer this policy over into a whole life insurance program policy. So I've known this agent for many years. He was the one that I, you know, dealt with almost 20 years ago. So I went ahead and I said, okay, I will do this. So I went into a whole life policy. That insurance agency is actually paying my monthly installment.

It's been six years since we took your financial peace class, and so there was a few things that I had forgotten over the years. We were doing your smart money makeover right now, and I realized, oh, no, I put myself into a position that may not be so healthy for the long term. So I wanted to call and find out your advice. So you have a whole life policy that doesn't cost you anything that is correct i would keep a free whole life policy okay i mean if you can get a term policy that's a bigger policy for free that's fine but if you've got free insurance uh you're

not getting ripped off at this point my guess is you had a waiver of premium rider on the original term policy meaning that you were paying a little bit extra that said if you became disabled that they would pick up your premiums they did not do this out of the goodness of their heart they did this because of coverage you had purchased and and my guess is the waiver of premium probably because it's a whole life company you're dealing with, not a term company, probably said the only way the waiver of premium kicks in is for it to be whole life. But if it's free, meaning it's not costing you a single dime, then, yeah, I would leave that alone. And plus, you're probably not insurable. Or there's a possibility you're not insurable.

But, you know, free whole life i would take uh but other than that i would never have a whole life policy thanks for calling sarah is in oklahoma city hi sarah how are you good how are you dave better than i deserve what's up um i just had a quick question um i currently own my own uh cleaning business I've been doing that for about nine years. But I'm also in school right now trying to finish up my prereqs for nursing. And so I could tentatively start this fall in the nursing program for like an RN. It would take me two years if I get accepted. But I have three small kids, and so I didn't know if I should just hold off on applying

or if you'd say go for it. Because I make good money cleaning, so I just kind of back and forth. Okay, let's say that you went through nursing school, and you pass, and you get your nursing degree. Okay? Mm-hmm. And what are you going to do? Go to work as a nurse right

right and how many hours a week are you going to be working and what hours are you going to be working and with small kids is that where you want to end up i'm okay but i don't want you to go through all of this and then go oh i can't really use the nursing degree like i could when i because i can't control my hours with my small kids. True, true. I mean, if you want, if you want to control your hours, you've got to have a, a place you can do nursing where you can control your hours. I don't know what that is, you know, off the top of my head, but maybe there is one. I don't know.

Maybe there's some, some places that have flex hours or hours or things that would work with your schedule with small children. I mean, the nursing field is a wonderful field, and I would encourage you to move that direction. But I would not invest all of this time, money, and energy only to realize, oh, I've got small kids, and I really don't want to work all the time. Right. I don't want to work normal nursing hours or whatever that is so you need to investigate and decide where it is you're going to end up when you finish all this effort and if you're going to end up in a good place when you finish all this effort then yeah i would go after nursing i sure would the beauty of being self-employed where you are right now

and doing cleaning houses is that you can control it you can set your hours you can set your times and if the kids you know you can even talk to somebody and say my kids have a play this tuesday morning and so i can't come this tuesday morning i can come in the afternoon you know i mean you can just do you can do all kinds of stuff you can't really do that if you work at a hospital can't just call up and go well my kids have a play and so you know you can i guess but in some places but you just got to find a place that you're going to have you know the three small kids thing just long as you got that part figured out with the nursing then go for the nursing that's all i'm saying christina is with us in charleston south carolina hi christina how are you hi dave i'm good how are you better than i. What's up? So I just started your class.

I'm in my fifth week. I'm currently working towards Baby Step 1. Good. I work two jobs trying to pay off my debts of consistent hospital bills and the IRS. Okay. Now the IRS, I'm not making grounds on. How much money do you owe the IRS? About $3,000. Okay, how much money do you owe the IRS? About $3,000.

Okay, how much money do you owe? I've been paying on it for two years already. How much money do you owe the hospital bills? About $11,000. Okay, good. And you're single? I am. And your income? Total with both jobs is like $35,000.

Okay, and your main job is what? About $29,000. Okay. And your main job is what? About $29,000. What do you do? Lester Buildings. We build steel buildings. What do you do? I work in the office currently, and I'm a return department. Okay.

All right. So you have a $29,000 office job, and then you have a part-time job that's bringing in $6,000 a year, $500 a month, doing what? Working at Casey's General Store. Okay. Good for you. Thank you. And so now we're on a budget, and you're trying to work through this.

You don't owe anything on your car. Nope. Paid for. Good. Okay. And no credit cards, no nothing of the sort. Okay. My student loans paid off.

All right. I'm going to continue to just crank down on that budget as hard as I can and crank up on the income as hard as I can. Maybe different extra job. I don't know. And so we can work our way through this. You can do this. It's probably going to take you about two years to get completely clear,

looking at the numbers you're giving me right now. But it's doable. You got this. I'll help you. You call me back anytime. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry.

A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years, and our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Thank you for joining us. Rachel is on the line in Pennsylvania.

Hi, Rachel. How are you? Hi, good. Thanks for taking my call. Sure. What's up? I have a five- and six-year-old, and I want to start saving for their college, but I'm not sure how to go about it and what is a good ballpark figure my husband and I should be saving each year towards it.

Well, if you sit down with someone in the financial business, like a SmartVestor Pro, as an example, and they can stick into the calculator, you know, you can ascertain what you want to have when they're 18, and then that will tell you how much you need to save per month to get there. So you need to start having the discussion of where you think these kids are, what you're willing to pay for in terms of where they're going to school. If you're willing to pay for Harvard, you're going to have to save more. If you're willing to pay for Vanderbilt, you're going to have to save more than if they go to the University of Pennsylvania or they go to Penn State.

Okay? And so, you know, an in-state school, in-state tuition is roughly anywhere from 25% to 30% of what a private college will be. Okay. And so, you know, you just got to start looking and saying, where did you go to school, by the way? I went to Mr. Cordy University. Okay. What about your husband?

And my husband went to Penn State. Okay. All right. And so you sit down, you have that discussion. What do we want for our kids? Sharon and I both graduated from the University of Tennessee, an in-state school. Okay. We met there, got married right out of school, and so forth. And so we were very comfortable paying for in-state tuition for a state university.

We were not willing to pay five times more for a private university. In our household, the value was not there. As a matter of fact, there's no ROI. You can't prove it. But that was our decision. And based on that, you figure out how much you want to save. And you talk to that school and go, okay, what's the inflation rate on your tuition? And current tuition is this.

And so in 15 years, we can approximate it's going to be Y instead of today it's X. And then based on that, you can put that in the calculator and back out how much you need to be saving towards each kid. As young as yours are, I will tell you that a couple hundred bucks a month per kid going into their college, into their tax-free growth 529 or an ESA you can do up to $2,000 a year into the educational savings account, into good growth stock mutual funds that are performing at or above the S&P 500. If you're in that range, a couple hundred bucks a month will get you very close to most in-state tuitions as young as your children are. But if you want to dial it in really, really close, then you do a little more detailed research and back out of it.

And, you know, you can decide from there. The thing is, there's so many variables that change in our life over 15 or 20 years from the time a child is born until they go to school, that in your personal wealth, your personal incomes, all of those kinds of things. So with all of that, you know, your projections today are going to be off, but you can make very detailed projections or you can just take a good shot at it like that. Hey, thanks for the call. Jake is in Des Moines, Iowa. Hi, Jake, how are you? I'm great, Dave. How are you today? Better than I deserve. How can I help?

Well, first, just a huge thank you for your ministry there. It's had a profound impact on our family. I'm just really grateful for what you do. Thank you. Our family is in, I guess, baby step seven. And it just seems recently, though, that I'm really anxious about what more now that we are where we are. And I just have some anxiety about not blowing our budget, still staying somewhat within budget, but yet spending more money on lifestyle and things like that. So you have no house payment? You have no house payment? No.

Correct. How much money is in your 401Ks in retirement? About $350,000. And you're how old? Home is worth about $240,000. You're how old? Oh, I'm 48. Sorry.

Okay. That's all right. So, all right. And you're putting 15% of your income or more into retirement? Correct. Okay. And you have money saved for college or you're saving it for college yeah we have about 150 000 set aside for college okay total total yes how many kids

three and what ages uh 17 15 and 13 okay so household. Okay. So you're a little behind on college. I mean, you're not, you know, going to be completely ready by the time the 17-year-old gets there. And so, yeah, there's some turning up the heat there to be done. The thing is, you know, you're on track to be a multimillionaire by the time you hit retirement. There's no question that that's going to happen, but you're right. There's a few things here. When you get to baby step seven and you're debt-free, have a paid-for house, and you make $90,000 a year, that does not mean that you can go, you know, spend $45,000 on a cruise.

You don't have that. You don't make that kind of money, you know spend 45 000 on a cruise you don't have that you don't make that kind of money you know and so you don't can you do some things to enjoy yeah but and you should you should lighten up the budget and have some enjoyment money in there as well um but there's you you never make enough to not have to make choices between the extravagant vacation and buying the kid a car. You know? Yeah. There's always that choice.

And so you just got to sit down with your wife. And the thing I don't want to have happen with the budget is her to not be involved and her to go, well, we should just be able to buy anything now. We got everything paid off. We did it all. And no, you're still involved, and you still have to help me make these choices between the vacation and the kid car. Or if we go on this vacation, the kid gets that car. If we go on that vacation, the kid gets a different car, you know.

And you just make these choices. But she should be making those with you rather than you feeling the burden of making all these decisions by yourself. And you go, oh, and by the way, we've got to do college here. So, you know, let's make it. And she does. It's just I worry about it, and she doesn't. Yeah. Yeah.

Okay. Well, I mean, I think the thing is this. There's two things. Should you be intentional and careful and wise and have some guardrails? Yes. Should you be fretting and wringing your hands? Good gracious, no. You're debt free. You're debt-free.

You're paid for everything. You're tracking towards being a multimillionaire at retirement, and you make almost $100,000 a year. You should not be wringing your hands. This is far from laying awake at night and not being able to pay your light bill. You know what I mean? You're way on the other end of that spectrum. But I want to be a grown-up and address the issues, but I don't want them to own me.

And so if you're fretting over it, then I think you probably need to back up and just give yourself some credit for how far you've come. The stuff you have defeated is harder to defeat than the stuff you have yet in front of you. That makes sense. And so that's why, I mean, you've got a track record of killing this money thing. I mean, you've killed it. And so you're in the top 1% of Americans in the quality of life and the way you're handling money. You know, you've done a great job. So now, does that mean you take your hands off the wheel and hope it doesn't go in the ditch?

No, we're going to still hold the wheel 10 and 2, baby, on the wheel. You know what I mean? We're still doing that. But do we have to grip the wheel white knuckle now? No. I mean, we've learned to drive. And you're going to drive your way right through this. The stuff you've done to get to this point is tougher than the stuff you've got to do to get past college and cars, insurance, and your wife enjoying some money.

You're probably always going to be a tightwad. She's there to help you enjoy money. I swear, I'm the one that still does that. Sharon is still a tightwad. I'm in Sharon's life to help her enjoy money. I'm a natural spender. She's a natural saver. So we've always got that.

We'll always have that. Good question, sir. It's an interesting discussion. Thanks for letting me be part of it. Open phones at 888-825-5225. Common sense for your dollars and cents. Common sense is so rare in America today. It's like having a superpower.

This is The Dave Ramsey Show. Bye. Thanks for joining us, America. Steve is with us in Madison, Wisconsin. Hi, Steve. How are you? I'm doing good, Dave. How are you? Better than I deserve. What's up? Hey, I'm an electrician in the Madison area here, and something new that people have been doing that I work with, it's kind of like a supplemental insurance.

It's called SafetyNet, and it basically protects you against layoff. And it's like $30 a month for the full payout, which is like $9,000 if you get laid off. And you have to be enforced for 30 days. And I know how you feel about supplemental insurance but you know you'd have to be paying 30 a month for a long time to get that payout i don't know what you feel about that um my wife and i are big followers of your plan and from baby step three but uh i just don't it just seems like it's a good deal but then it seems like it's too good to be true.

Well, anytime insurance is there for something that you could cover yourself, we need to just stop and remember how insurance works, okay? Let's you and I open a supplemental insurance layoff insurance company right now, okay? We're going to go in partners, and we're going to open it up, and it's going to be Steve and Dave's Insurance Company. So the first thing we're going to do is we're going to go in partners, and we're going to open it up, and it's going to be Steve and Dave's Insurance Company. So the first thing we're going to do is we're going to rent a building, and then we're going to start hiring people to sell this stuff, and we're going to hire a receptionist and a computer tech,

and we're going to have payroll and overhead for the business if we're going to start that business, right? That company that's selling that has all that. Would you agree? Okay. Okay. And then we're going to have to say okay what we're going to sell is layoff insurance we're going to offer nine thousand dollars worth of

coverage in case someone's laid off and we're going to charge thirty dollars and then before we figure out the thirty dollars a month then we've got to get some research and we've got to figure out statistically how often have we got to pay this out okay right if we sell a thousand people this insurance then we're on the hook for a thousand times nine thousand but no no chance all of them are going to get laid off but out of that in a given year how many of them are laid off okay and we would calculate out how much we'd have to come out of pocket okay so if two of them were laid off, then our cost to offer it to 1,000 people would be $18,000, right? Yep. If 10 of them were laid off, it'd be $90,000, which is probably more like it.

And then we would take that $90,000, which is our actual cost to cover 1,000 people, plus our building rent and our payroll and our overhead. Oh, we need to make a profit, so we're going to put profit on there too. And then we're going to divide that number by 1,000 people. And that's where we get $30. Now, what that means to you, then, if you're buying the insurance, is that on average, they have to make a profit on you at $30, which tells us $30 times a pay period or per month? That's per month. Okay.

So 12 times that's $360 a year to cover $9,000. So that right there tells us that not many people actually cash in on this $9,000. I know of at least three people that have. Yeah, but I'm saying statistically, if very many people cash in on it, they go out of business, dude. Yeah, I agree. Because they're not taking in enough to pay out the $9,000 to everybody. And believe me, they calculated that. They know what they're doing. They didn't accidentally do this.

So on average, when you buy insurance of any kind, you have to be losing money. On average. So they have to be making a profit. So on average, if you buy insurance for your air conditioner on your house breaking on average you lose money on that you would have been better off over the scope of your lifetime on average you have to or they go out of business that's how the math works so all of that having said the only thing we buy insurance for or we suggest you buy insurance for are things you cannot afford to cover and you can afford to cover a layoff it's called your emergency fund of three to six months of expenses

so if i'm in your shoes i'm not buying that i am going to have my emergency fund because on average they're making money on me on gimmick insurance and that's why I don't buy extended warranties and why I don't buy supplemental policies and why I don't suggest people do, because you self-insure through those things simply because, on average, you have to make money doing that. Otherwise, they go out of business. And so if you want to buy it, you buy it.

But mathematically, you're losing. Mathematically. You have to be it, you buy it. But mathematically, you're losing. Mathematically. You have to be, on average, losing, or they would be out of business. Hunter is in Houston, Texas. Hi, Hunter. How are you? Hi, Dave. I'm doing well.

Thank you, and good day to you. My question today basically comes down to refinancing the home from a 30-year to a 15-year fixed rate, which I've already got approved for. I just didn't follow through with it. I wanted to get a little advice on it before I do. I would not refinance simply to go from a 30 to a 15. I would refinance to save on interest. If you're doing that while you're at it, get a 15.

What's your current interest rate? 3.6. On your home now? Yes, sir. And what is the offer to refinance for? What interest rate? Basically 3.5. I mean, it's really not.

I would not do that. I would not refinance that. No. Because you're not gaining anything. If you take that 30-year mortgage that you have at 3.6, and when you calculate out what a 15-year payment would be versus a 30-year mortgage that you have at 3.6 and when you calculate out what a 15-year payment would be versus a 30-year payment and you pay that extra amount the difference as principal you'll pay that loan off in 15 years i didn't mention that i do pay a pmi on the 30-year

because it was a remodified home loan i was kind of in between jobs and um and this would be and it's a fha loaner and uh or a remodified with a h but the harp thing i guess and then and this would be an FHA loan, or remodified with a HARP thing, I guess, and then this would be a conventional loan. With no PMI? Correct. Okay. Now, the PMI might be a reason to give you the savings. What's your savings on the PMI?

About $140 a month. Okay. Now we're talking, because that's $1,800 a year. All right. So what's your refinance cost? How much more does it add on to it? No, the closing costs. Yeah, I think it's around $5,000 they add on to it.

Okay. So if you save almost $2,000 a year, it takes you about two and a half years to make your money back with your savings on PMI alone. Right? You see how I did that? $5,000 divided by $1,800. Yes, sir. And so, yeah, I would do this refinance in that case. That changes the calculation.

I've run a really lean, I guess, though, as far as how much I make versus how much I pay on the house. I heard you say earlier your house should be a quarter of what you make. I'm more at 50%. 50% now? Before the refi? My home for everything is, if I refinance it, it would be about $1,550 for everything. And I'm currently paying $1,300 a month, and I make about, take home about $3,000 a month.

No, I would not do that. I'm not sure you need to keep this house. Yeah. It's a lot of house, unless your income is going to go up dramatically i mean whether you've got a 1500 or 1300 on a three thousand dollar take-home pay you're going to struggle eat neither one of those this doesn't fix that situation so unless you see your income going up dramatically you probably need to think about moving out of this house and that's probably not a real popular answer probably like oh god i can't do that i

understand i get it but dude it's very difficult to make your budget work and the difference in 1300 1500 doesn't save you that's not going to save you at all so but if you do see your income going up dramatically quickly to where you're not going to be at 50 like you're getting married and she's going to be this, or she's getting a job, or you're going to take to another job that's making more money, or whatever. If your income starts going up dramatically,

then I'd go ahead and refinance and do the 15-year on a $1,500. But if your income is not going to go up, man, you can't keep this place. It's going to be very difficult for you to prosper with a house payment this high. Very, very difficult. I mean, you're struggling, man. That house owns you. You don't own it.

I don't want that for you. You do whatever you want. That's my opinion. And it's worth what you paid for it. This is the Dave Ramsey Show. Thanks for joining us, America. We're glad you're here. Open phones at 888-825-5225. You jump in. We'll talk about your life, your money.

Clayton says, Dave, do you prefer mutual funds to ETFs, even though the concept is similar? Well, the concept is similar in that an exchange-traded fund and a mutual fund all have a diversified base, meaning that what they're invested in is not one stock or one bond. It's across a bunch of different things. So you're diversified. They're both invested in good growth stock mutual fund type things. The difference is this. The ETFs, 90-something percent of them, almost all of them, are associated with the S&P 500.

They're basically, they mirror an index or an index fund of some kind. They do have, if you're going to buy an index fund, an ETF is a fine way to do it. There's no trouble with that at all. If you're going to buy an index fund, if you're going to buy an index fund, if you're going to buy an S&P 500. Now, the S&P 500 is the standard and poor S&P. It's a rating company.

They rate the top 500 stocks on the New York Stock Exchange, also known as the big board, meaning the largest 500 companies that are publicly traded in the U.S. Those 500 form an index that is the most representative measure of what happens with the stock market. It is considered by those of us in the business to be the representation of the market. The Dow Jones Industrial Average you hear about on the news is not as nearly as good a representation as these 500 stocks of the market. The Dow Jones Industrial Average you hear about on the news is not as nearly as good

representation as these 500 stocks of the largest thing. So the S&P 500 is considered a 1.0 beta, meaning that it mirrors the market. Anything with a less beta than that is less volatile than the market. Anything with a larger beta than 1.0 is more volatile than the market. So it is the stock market. You're going to make what the stock market makes. No more, no less when you buy an S&P 500 index fund, whether you buy a mutual fund or whether you buy an ETF.

Almost all ETFs fall in that category. It's that simple. That's where they all are. And if they don't, then they're, A, very unusual. I'd be careful. But, B, you're getting into them for other reasons other than long-term investing. You're wanting to jump in and out of something and uh you know you're wanting a day trade or something like that but spider's the

best known of the s&p 500 etfs out there it's been around forever but it's just it's just an s&p 500 is all it is that's all it is i mean you buy mutual funding by the etf the etfs a little cheaper it's fine if you want to do that. I don't buy the S&P 500 for long-term investing because I buy mutual funds that beat the S&P 500, that have 10- and 20-year and 30-year and 40-year track records of beating the S&P 500. And so this idea of buying ETFs or buying the S&P no-load funds is a concept called passive investing. And it comes from the idea that you can't beat the market. Most mutual funds don't beat the market. Well, most mutual funds don't beat the market.

They don't. But most people aren't successful either so you just have to decide are you going to be passive and just ride exactly what the market does are you going to look for mutual funds that outperform the market and there's plenty that do and so you know we we've done a bunch of research on this. My mutual funds, I invest in growth that outperform the S&P, growth in income that outperform the S&P, aggressive growth that outperforms the S&P,

and international that outperforms the S&P on 20, 30-year track records. And then I look at them to see if they're still outperforming the S&P as a mix overall, and mine have beat the S&P. It's really not hard to find. I mean, you can just sit down with a smart investor pro. They can show you how to do it. Now, there's plenty that don't outperform the S&P, so if you're just going to buy the S&P, the ETF is fine, but I don't really have an argument against the ETF.

It's just a passive investment. And just to give you an idea, the last 20 years, my mutual funds have averaged 8.53 and the S&P 7.12. The last 30 years, my mutual funds have averaged 11.3, the S&P 10.89. The last 40 years, the mutual funds I've invested in have averaged 30.04 as a group. And this is in my personal 401k, and the S&P has averaged 13.04 as a group, and the S&P has averaged 11.8. So I'm beating the S&P by about 1% a year on average year in and year out with those mutual funds,

and I buy mutual funds that have a track record of outperforming the S&P. So, no, I don't buy ETFs because they're almost all S&P indexed for that reason. It's not that I'm against ETFs. I'm against passive investing because I think you can do better than that with your mutual funds. If you want to buy just an S&P, ETF is a fine way to do it. And that's one way you can do it. That's another way to skin the cat, so to speak. All right, let's go to Dawn in Denver. Hey, Dawn, welcome to the Dave Ramsey Show.

Hi, Dave. I'm thrilled to speak with you. You too. What's up? My mom passed away a few months ago, and her estate is being divided between me and my three siblings, and each of us stands to inherit about $300,000. Okay. My situation is that I'm 58. My husband is 67. We have no children.

We've been retired for a couple of years. We have been very fortunate to make good money and to save it. And we have total assets of close to $3 million. Good for you. Well done. Thank you. We've been practicing your principles for years. Okay. What would you do with $300,000 that you didn't need?

Well, the same thing I did with the $3 million, I guess. I would give some of it, I would invest some of it, and I would enjoy some of it. I would like to invest it in a way that will honor my parents, who were the classic millionaires next door. Okay. How is your $3 million invested? Two-thirds is in real estate, rental properties that we now live off of the rent. Good.

And the other third is in cash and stocks, stocks in our IRAs. Mm-hmm. By stocks, you mean growth stock mutual funds or individual stocks? Growth stock mutual funds. Okay. All right. So how would you invest the $300K? My hesitation about investing in stocks is that, first of all, right now, you know, the

market's up and I feel like it's too expensive. Like Denver real estate isn't? Denver real estate is very expensive, and I can't buy anything in the area I like for $300,000. Okay. So what are you going to do with your $300,000? Well, as money's been coming in, so far I've gotten $56,000. It's just gone into our interest-bearing checking account. But I don't want that to stay there because I don't want to be tempted to blow it.

Okay. I don't think you're going to be tempted to blow it. You're good with money. You guys have done a great job. I want you to give some of it. I want you to invest some of it. And I want you to enjoy some of it. So I want you to buy something nice or go on a trip you've been hesitating to do. And I want you to enjoy some of it. So I want you to buy something nice or go on a trip you've been hesitating to do.

And I want you to do some investing. You may put some of your other money with some of this money and buy you a piece of real estate. It sounds like that would be a fine thing to do. And I would look for something to give, too. That would honor her memory as well. And so if you just keep those three things going your whole life, you'll always win with money. Always be giving. Always be investing and saving.

And always be enjoying money. It's not really good for anything else. That's about it. That pretty well wraps it up, you know. So, hey, you've done very well. Congratulations. Three million bucks. I love it.

This is The Dave Ramsey Show. Hey, guys. It's Blake Thompson, senior executive producer for The Dave Ramsey Show. This hour's over, but you can find more great content on our YouTube channel. Catch the most watched Dave Rants, debt-free screams, and the very popular Everyday Millionaire segment. Go to The Dave Ramsey Show YouTube channel and click subscribe.