The Ramsey Show - App - Have Faith, Not Fear (Hour 2)

Episode Date: March 24, 2020

Anthony ONeal, Home Buying, Retirement, Savings Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

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, Anthony O'Neill. Ramsey Personality joins me this hour to answer your questions about your life. And boy, there are some life questions out there right now. A lot of your money. And we're here to help you walk through and navigate in the middle of this unbelievable mess.

The phone number is 888-825-5225. That's 888-825-5225. If you didn't know, Anthony is a number one national best-selling author of the book Debt-Free Degree, How to Go to College Debt-Free. He is also one of the primary contributors to a huge podcast called Borrowed Future. It was eight episodes long. It's still posted, and it's still very, very popular about the debacle and the epic failure of the whole student loan program. And Congress's epic failure to address it as well. So he's here to answer your questions.

He's a former pastor before coming on board several years ago to be a Ramsey personality. And he speaks in churches and on college campuses, high schools everywhere. So, Anthony, I was thinking about you this morning, especially years ago when you were a youth pastor. You were working with teens, obviously, at that point. And I think when you look teenager up in the Greek, it says crisis. And so I think that, you know, you probably have dealt with a lot of people that were facing the fears associated with a crisis. The difference was you had a different perspective maybe. And we're adults now are facing a crisis, a health crisis or a job loss crisis as a result of the cure is hurting more people than the virus right now.

And so, you know, that whole situation, I mean, how do you talk people off the emotional ledge when they're in crisis? The very first thing, Dave, I'm doing is just acknowledging, you know, hey, what are the fears that you have? And I acknowledge it, but I'm coming right behind it and saying, all right, now is not the time to panic. OK, because when we panic, when we have fear, that tends to lead us down the wrong direction. And you all know me who listen to me on my side of things is the caliber of our future will be determined by the choices we make right now. So even in the midst of a crisis, if we make the wrong choice out of fear, out of panic, it's going to impact our future when we're no longer in a crisis. And so what I'm telling

young people, not just young people, all people is right now, don't panic, have faith, don't have fear, have faith, make the right decisions. Now I get it is weird. It's uncomfortable, but now we need to step back and control our mind. Stop watching TV. Stop feeding our fear and start feeding things that can make us very protective and encourage our future. Yeah. And if you just sit and watch television all day long and that is your input, you watch the news 24-7, you really will just end up in a pile. Dave, I cut off. I unplugged my TVs. So even when I naturally go to cut on the TV, I cut it.

It can't even cut on. And it quickly reminds me now is not the time to feed myself. I'm just only going to CDC dot gov, keeping up with factual information. And then every now and then I may turn on just to watch the White House press conference. But I'm not watching CNN. I'm not watching Fox and Friends. And we're good friends with all of them. But I want to make sure that I'm feeding my mind, which is my number one asset. I always tell people to mind your business because your business is your number. Your mind is your number one business.

And so right now I'm trying to grow this and keep it healthy and not put a lot of negative fear and junk in my head. And that's not Pollyanna, and that's not to say you can positive think your way through a crisis. It's just a matter of saying it's very difficult to keep a real perspective of reality when you're being fed nothing but a heavy dose of terror and fear and panic. Yes, sir. And you see people just doing bizarre things, including being really mean to each other. Absolutely.

The people who normally are not mean are mean to their relatives, and you ought to be ashamed of yourself. Yeah. They're being mean to friends. They're being mean to their employees or employers. Some of them are being mean to their customers, And they're just jacked up, man. I won't name the name of the company. My brother-in-law went to a particular store

to pick up a particular item. He coughed. The employee of that store asked him to leave and not even buy any products. And he just has allergies, Dave. We're just doing some crazy stuff out here. You went through the flu and you were one of the very first people I knew to be tested.

Yes, sir. And it came up negative. Yes, sir. And we were in New York in Uber. Uber. With one of our publicity ladies in the car with you. You coughed, and that guy, his brain about exploded. I told him, you should have accused him of racism.

You should have just said, you're a racist. Yeah. I mean, he was very scared. I was like, man. And before I can even say something, we have an amazing publicist, and she defended me. But he was like, he's been tested. Shut up. And it's like, come on now.

Treat your customers right. Treat people right. You're not allowed to sneeze now. You can't. And people still have allergies. I mean, a friend of mine was in Walgreens and got yelled at for stepping across the blue line. Who the heck knew what the blue line was at Walgreens and got yelled at for stepping across the blue line. Who the heck knew what the blue line was at Walgreens?

I probably don't need to know what either one are after this if you're going to act like that in there. You know, oh, my gosh. It's not. But it's like I think at the same time, while we laugh about that, if you're sick, stay home. Yeah. You know what I'm saying? That's the truth. But if you're not sick and people, guys, just treat people the way you want to be treated. Well, you've got a full-time job of minding your own business.

There you go. But you're not in charge of public health. There you go, Dave. Shut the crap up. Come on, Dave. Seriously. Seriously. My social responsibility.

Oh, kiss my butt. I mean, really. Just calm down. Stop panicking. Quit managing everybody else's business. So including mine, thank you very much. And be safe while you're respecting people. Yeah, absolutely.

Wash your hands. Dave and I have washed our hands about ten times already today. I wash my hands so much I found the math answers from 1978 test grade. Good boy, now. So, alright. Alright. Hey, we've launched a couple things around here. Leadership's been working our tail off in the past 72 hours trying to get some stuff up.

And so you need to go visit DaveRamsey.com slash hope. There is a lot of free resources there that you can use while you're at home and very, very inexpensive resources. And today we put at DaveRamsey.com, something we've never done in 30 years on this business, we put up a free 14-day membership for Financial Peace University. You can watch all of our premium content with all of us that teach in Financial Peace University. You can go through the whole class, binge watch it, take your family through it. You can get connected on the budget tool with every dollar. You can go through the legacy journey stuff.

You can go through the smart money, smart kids stuff. It's a free 14-day look, and it's completely free for two weeks. All nine lessons of Financial Peace University. Some of you are scared right now. Some of you have said, okay, this is my wake-up call. I'm never going back. Some of you have been wanting to do of you said okay this is my wake-up call i'm never going back some of you have been wanting to do this and just hadn't gotten around to it a 14 day during the 14 day shutdown this is your time go to davramsey.com slash hope all free for two weeks

there's a lot of other stuff on there for the next two weeks too like the total money makeover for a dollar 99 or the high school curriculum for $19.99. It's usually over $100. You can take your high schoolers through this because they're at home, and God knows they need something to do while they're at home that's not their screens. So you can put them on a different kind of screen here, baby. Get signed up for this. This is The Dave Ramsey Show. 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 healthcare costs? Based on New Testament principles, Christian Healthcare Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major healthcare costs. Christian Healthcare 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, America.

We're glad you're here. Anthony O'Neill joining me, answering your questions. Kathy is with us in Colorado. Hi, Kathy. How are you? Hi, Dave, thank you for taking my call. Sure, what's up? I appreciate it. I'm, let's see, we have not had any COLA raises as we had been promised for a few years. I'm not sure when we're going to get another one. I have had a couple of part-time seasonal jobs, not because I had to have them so much as just that I had enjoyed them during retirement.

But I've now just gotten to the place where some physical issues, I could kind of see the handwriting on the wall last year. Hearing, visual, I had quite a few falls last year and just some other problems as well. I'm just getting to the point it's getting harder and harder to work and drive especially. How much is your pension income, Kathy? My net is about $1,900 a month. Plus you have Social Security, right? No, no.

This is a para-pension, and due to WEP, W-P, unfortunately I don't have anything. Because you have $1,900 a month coming in, and that's all. Right. And you have $1,900 a month coming in, and that's all. Right. And you have any nest egg? Well, yes, I do have mutual funds investments, and they were doing pretty good until last year. And then, of course, with Corona, everything's dropped. Well, my plan until Corona hit had been, okay, I think this year I'm going to probably need more help than what I'm doing.

So how much do you have in mutual funds, Kathy? Well, at the beginning of the year, before all this hit, it was about $152,000. So now you're at about $100,000? Now it's down, well, it could be that today it was about $124,000 on Saturday when I left. Oh, it's up today again, so you're probably about $130,000 then. Okay. And what have you been pulling off of that? Anything? Well, I've left it all last year. I was able to manage getting by.

But I do have some medical expenses that are not covered by even the Medicare Advantage plan on certain medical problems I have. So it sounds like you need to start taking the income off of that $130,000 to supplement your $1,900, right? $1,200 a month because there are things around my house that, you know, I've lived here just under 40 years. A house is paid for and all that. I used to do my own yard work and stuff like that. I just can't do it anymore. What's the house worth? Well, oh my gosh. In this area, our property values are just climbing by the hour. Building construction is everywhere, and when they redid our assessment last year...

What do you think it's worth, Kathy? Well, the last assessment we got last year, it was just over $300,000, but I would imagine by now it's probably up probably $3,000. Yeah, a tax assessment is not really an indication of value. So it sounds like what you're going to need to do is get with your SmartVestor Pro on the $130,000 that's invested and have the income that it is creating, whatever that is. Right now it's not creating as much. And you could pull off, if you pull off $10,000 a year off $130,000, it will last you a long, long, long, long time. And that's $800 a month to supplement your $1,900.

And if you sold your home because it's creating maintenance issues and took the $300,000 and even if you bought like a nice condo for $200,000, that would free you up some more money to invest, and you would get rid of the maintenance issues simultaneously. So it sounds like the math is telling you it's time to make some changes. Now, I wouldn't do any of that in the next 30 days. I would let all this craziness blow by before you start talking about selling a house. But I mean, you can put it up for sale. And if you got a reasonable offer, that's fine. But we're

not trying to be crazy or desperate or freaked out or panicked. But it does sound like you're going to have to make some moves. And the math just kind of you kind of leads you to those decisions, doesn't it, Anthony? It really does, and it's not even just the maintenance, Dave. I mean, you look at the utilities. If she can go from a, I don't know how big her house is, down to a condo, like you said, that can save her on her light bill, water bills. It can really save her some money and make some major adjustments in that area. Yeah, some good stuff.

Hey, thanks for calling, Kathy. Gregory's with us in North Carolina. Hi, Gregory. How are you? Hello, Dave. Hello, Anthony. I trust all is well. Hi, Gregory. How are you? Hello, Dave. Hello, Anthony. I trust all is well. It is.

How can we help? I'll get right to it. I live just on the outskirts of Asheville in a well-established neighborhood. It's on the side of a mountain. I live on a cul-de-sac. We own our home and had been planning this year, here in the next maybe six months, of buying a piece of property and building a home. Cool.

Now, thank you. The property right across from me on this cul-de-sac, undeveloped, about two acres, it's available. And I'm wondering if now, not necessarily take advantage, but if it's a builder that just wants to keep their doors open, keep cash flow, maybe I can get a little better deal. That's the first question. Two, it's how to pay for it. So you don't have the cash to buy it? I do.

Oh, I would pay for it then i well that that would be my question dave and maybe maybe this really doesn't matter um and my roth we have about 1.9 uh that was in february way to go uh i have not i have not looked well thank you very much what's the land cost what can you buy the land for about 120 oh so it doesn't matter just go buy it and then the home we're taking a building is somewhere between 350 and 450 yeah yeah i would buy the land and begin to plan out the building now i i built a home right after 2008 and um i i'm perpetually looking for a good deal but not trying to take advantage of anybody but i knew that nobody was working like you're talking

about and uh today home building has not frozen like it did then it may in the next three weeks i don't know but it is not frozen like it did in 2008 it It was a long year. And so we ended up building a home at what we thought was the perfect time. And we did get a few deals. But let me tell you what, we got two things we didn't expect. One was the subs didn't have anything else to do. So not only did they show up on time, they stayed on the job and cared and were thankful for the work and gave us incredible quality and incredible attention the second thing we got out of it because we were building a pretty good size house

was that we uh had this tremendous satisfaction when we were done of having put a whole bunch of people to work and they were very thankful we had the first big party we had at our house we had 200 subs come we had it cater, and people walking around with silver trays, and they drank a lot of beer, and everybody had a great time. And they said nobody had ever thrown a party for the people that built their house before, and we just had a blast. The whole thing ended up just being a whole lot of fun. Some of those guys and gals are lifelong friends of ours now that worked on our home,

and it was just a tremendous experience uh i did not get 40 off the entire thing on the house though but you probably got 40 more work out of the people there though i got some things that they threw in to get the job and some odds and ends like that but it wasn't like i bought other stuff yes at deals yes sir when there's crises out there like i bought a lot of real estate at crisis, and I got deals. Yes, sir. That did not happen in this case. But I did get a few things.

But more importantly, I got this tremendous satisfaction and some great friends and a great quality house as well. So I recommend it highly, Tom. I recommend it. I'm sorry, Gregory. Highly. Anthony O'Neill joining us, answering your questions. Ramsey Personality, number one best-selling author of the book Debt-Free Degree. And in just a matter of days, you're going to be releasing a new, what we're calling a quick read.

Quick read. It's, what, 64 pages. 64 pages, 10,000 words. Glorified chapter. Yes, sir. Okay. And it's called what? Destroy Your Student Loan Debt.

So Debt-Free Degree is how not to get in how not to get into it you find yourself in hey destroy your student loan debt is going to be the way out yes sir you know while i was out on book tour last year that was the number one question that i received from my parents and older individuals who just got out of college and this is great i love it to help out my you know kids my grandchildren my nieces and nephews and my loved ones but what about me yeah i'm stuck i'm stuck so destroy your student loan debt april 7th it's coming out it's going to be very it's quick literally it'll take you an hour and a half two hours to read it we were trying to move it up and get it in during this 14 days but it's just getting the delivery on everything and everything's just ridiculous so um uh but it is it's an

incredible uh you know it is walking the baby steps. It is working through that snowball, for those of you. It's not going to be like something different than you've heard from Ramsey for years, but it is in Anthony's voice, and it is a quick read for you to use. A lot of you that have been in the tribe a long time, you would just give it to somebody. Yes, yes, because we're answering all questions, all the questions. Should I refi? Should I do this?

Should I do that? And we're just really getting specific and helping this generation out. Yeah, absolutely. All right, Tom is with us in Michigan. Hey, Tom, your question for Anthony and I. Hey there. Hi, Mr. Ramsey, Mr. O'Neill. Thanks for taking my call.

Our pleasure. Yeah. My wife and I finished up FPU about three weeks ago and even had our boys ages 9, 11, and 14 watch the lesson on giving. It was great. So thanks for that. Cool. We had some great conversation.

Good. Thanks. Yeah. My wife is a nurse and I'm a teacher. We have no debt except our mortgage of about $81,000. We have our emergency fund set up. And quite frankly, my question is I feel like I'm too diversified that kind of my eggs are in way too many baskets. I started some investing on my own back when my grandfather started talking with me about stocks and things.

But yet I have yet to set up 529. I'm not sure if we should maybe put more down on our home. And like I mentioned, I've kind of got money in different pots in regards to where it's sitting. So 403B through my employer, the public school system, there's certain investors that we were allowed to choose from. And then I have about three other accounts. So that's my question. I just feel really scattered and was looking for some guidance. Okay.

Are you in a bunch of different mutual funds or different kinds of mutual funds? Yeah. So I opened up, thanks to you, I took the Vanguard accounts that I had for my wife and I and switched them from a traditional to a Roth and everything to the Roth. Good. And then I'm going to max out that Roth for 2019 and 2020. I'm hoping to do it like today or tomorrow as the market continues to do what it's doing.

And then I have a Merrill account with about $70,000 in it with some GM and Wendy stock that was left to me um and then i have a and then i have a td ameritrade account with um about 35 000 invested in stocks and etfs and then 35 in cash okay well i mean as you know from financial peace university i don't do any of those things except mutual funds and so if i personally woke up and had your portfolio, I would be converting it to mutual funds. And instead of TD Ameritrade, I'm not trading stocks. I just don't do that. I know a lot about it, and I know a lot about the risk associated with it, and I'm just not doing it.

It's too much risk for me. I don't like the volatility of it. If you want to have single stocks, our recommendation is never have more than about 10% of your portfolio in that. And so in that sense, you're not invested the way we teach and the way I personally have done. So if you wanted to make a conversion to that, you could. But as far as the number of accounts you have, like I've got a bazillion mutual fund accounts uh not a bazillion but i mean i've got i've got it because every time i had a an ira or every time i had a sep and i rolled it into something it's a different account and so i've got tons of different mutual funds

purchased but they all fall in the categories of growth growth and income aggressive growth and international and i personally don't own a single, single stock. So, you know, the thing is, it's just what I think I'm hearing is it's kind of busy in your head and you want to simplify your life, and I don't blame you for that. Simplifying is a good thing. Simplify is a great thing, and that's exactly what I do. I couldn't hear him, Dave, but did he say he is not investing into the 529 yet for his kid, or was he investing?

I thought he said he was. Okay, cool, great. I just wanted to make sure that we not investing into the 529 yet for his kid, or was he investing? I thought he said he was. Okay, cool, great. I just wanted to make sure that we are investing into that for our young people. Yeah. But simplifying is great, Dave. You're right. I don't have any single stocks.

I follow your teachings because that's what I personally believe in myself is growth stock mutual funds. And that's just a safer route, and I can still invest aggressively, but I love that place. Yeah. invest aggressively but i love that place yeah and just the the thing i have found folks is that the um that i when i when i was growing up i was um i was not i didn't grow up rich yeah and i always thought rich people are like mystical animals like they had they had special powers okay and special knowledge of things that i didn't have. They had the game codes so they could do the game because they had the codes.

Yes, sir. And I was the guy trying to figure out the game without any codes. I always thought rich people had that. And as I've met with now and worked with wealthy people, mainly people that have become wealthy, starting from nothing, which most wealthy people did, by the way, in our culture today, statistically, I find that they really don't have special powers. And they're not doing like a family limited partnership back double flip with a twist and twice around the moon, you know, hokey pokey.

They really don't have these whacked out weirded things going on even the very wealthy seldom do there's no secrets there it's just they you know what they generally do is they find something that they understand and they know and they do that over and over and over again there you go and so we find a lot of them just filling their 401k mutual funds we find a lot of them uh filling their 401K with mutual funds. We find a lot of them just running their own business, and their business becomes very well profitable. They love real estate. They buy a lot of real estate.

I talked to one guy. He had $10 million in cars. Wow. He was a classic car guy. Wow. But that was his business. He knew the thing. It wasn't a vague hobby.

And he did that for investments because he understands that market. But he didn't do anything else much. I mean, he just was in, I personally haven't done that, but I'm just saying they find something they know, and it's usually, it's usually just, there's no sexiness to it at all. There's no mystical powers to it. You just do the stuff and hustle and grind. Now, Dave, I got to ask you a question because, you know, a lot of young people ask me this. How come Dave doesn't, he's wealthy. How come he doesn't do single stocks or trade?

Isn't he missing out on a lot of money? Like I'm seeing a lot of young people going towards this. Let me trade. Let me learn how to trade. Speak to that. Can you answer that question for that young person watching right now? Why they should not. Why you do not do single stocks and trade well 78 of the day traders lose money okay okay yes sir and if 78 of anything loses money i don't want to do it i don't care what it is you know it doesn't matter right it's just kind of dumb yes uh and so this idea that you're somehow going to beat the market with your limited set of information is absolutely asinine you and your you, your golfing buddy gives you a tip. Yeah.

And he goes, yeah, I bought Cracker Barrel today. Why? Because you ate biscuits over there? I mean, really, what was your insight? What was it? You know, and so that's just dumber than a rock. And so, you know, I find over the years that the people who have made a ton of money on stocks are like people that have caught a lot of big fish.

It's a fishing story and uh they forget to tell you about all the times they went out there and caught nothing except a sunburn you know and they forget to tell you about all the times it came up dry and did not get a thing and so uh you know and so single stock investing is statistically all the research on it is just very risky it is not a proven plan that wealthy people use to become wealthy. The number of millionaires that we studied that said, I bought and sold single stocks was almost zero. So, you know, so what that tells me is a bunch of broke people are getting broker doing it.

That's why they call them stock brokers. Thank you, Dave. There you go. There you go. Thank you. There's a thought. That's why I don broker doing it. That's why they call them stockbrokers. Thank you, Dave. There you go. There you go. Thank you. There's a thought. That's why I don't do it. 78% of anybody does anything wrong, I think I'll pass.

I'm with you. I'm not prideful enough to think I can beat that. Yes, sir. Anthony O'Neill and Dave Ramsey answering your questions. A special edition of The Dave Ramsey Show. A 14-day free trial to Financial Peace University Online. While you are in your home, you can binge watch the entire thing on a free trial. This has never been done before in the 30 years we've had this product that we've been teaching and helping people. Anthony O'Neill, Dave Ramsey, Chris Hogan, Rachel Cruz

will be in your living room on your television, and you can walk through the nine lessons of Financial Peace University. You'll plug into all the benefits of Financial Peace, and that includes the EveryDollar app. Be completely jazzed up. You'll be able to watch the Smart Money, Smart Kids videos. If you really get on a roll, and you can go teaching your kids how to handle money, you

can go through the Legacy Journey, which is the follow-up class. You can get in the communities, and then you'll want to stay in it after 14 days. But it is a 14-day free trial. We have never done this, and we thought, while a lot ofica is home on the next 14 days what can we do to help you that is um frankly not a huge cost to us uh you streaming off of our stuff is not going to kill us uh cost of goods sold wise and we've got all the money invested in the production of everything that's all already done that's spent money and And so we think it's a way we can help you. And go to DaveRamsey.com slash hope, and you can get involved in this. On Thursday night,

this coming Thursday evening at 7 p.m. Central Time, Rachel Cruz, Ken Coleman, and I will be doing a special live video message for 30 to 45 minutes. It's live and it's completely free from our website. A message of hope for America. Fear has to be defeated. And the only thing that defeats fear is facts. And facts create hope. And we're going to walk through exactly what to do, regardless of the particular situation you find yourself in.

And this is for you, your friends, people you've been trying to say. And it's not an I told you so moment. You should have had an emergency fund. I'm not going to say that. I understand if you don't. I should have not gotten into debt and gone broke, but I did. And I learned my lesson, and I never went back. And so it's not that.

We're looking forward for you, and we see hope. If you want to be set up for that live stream, it's completely free. There's no obligation. Check it out. Text the word HOPE to 33 789 text the word hope to 33 789 and you can be involved in the live stream and uh be watching this on thursday night at 7 p.m central time it's going to be a big deal so lots of stuff going on that's free. Lots of ways we can help you.

Of course, the show is free. And Willie is with us in Wyoming. Hey, Willie, your question for Anthony and me. Hey, guys, thanks for taking my call. I really appreciate it. Sure. What's up? Hey, so recently my wife and I were blessed with a beautiful baby girl.

And because of that, my wife has chosen to cut down her hours at work. And she's going to be working one day a week rather than full time. We're on baby steps four, between baby steps four and five. And we currently have $50,000 in savings on top of our normal emergency fund. And with her going to part-time, she's losing her option to contribute to her 401k. We've been contributing 15% split between us, but now she's no longer able to contribute to hers. She has about $20,000 sitting in her 401k. So we're curious, what should we do with that $20,000 in her 401k as well as our $50,000 just sitting in our savings account?

So you've set it up where you can live on your household income on your income your household can live on that income yes okay good good all right well we always say with your old 401k to roll it to an ira a direct transfer rollover and give the smart investorVestor Pro and do that and pick you some good mutual funds. And basically, she's just going to have an IRA. I would use a traditional. That way, there's no taxes on it. And then I would make sure that you're putting 15% of your household income, her part-time job and your job, into retirement. Now, that would be matching at your 401k first. After that, it would be Roth. Has your 401k got a Roth option?

It does not. Okay. So do the matching first and then do two Roths, one on you, one on her. That would be $6,000 each, $12,000 at the most. So what is your income? It's commission-based, but it should be between $100,000 and $120,000 is a really safe estimate. Okay. Well, those two Roths plus your match is going to get pretty close to 15%.

Yeah. And you want to do a little more maybe in your 401K, that'll be fine. As far as the extra $50,000, that would go towards your Baby Steps 5 and 6, kids' college. You may want to drop $10,000 into a 529 and a mutual fund. When you sit down with a SmartVestor pro to do that 401k rollover, get your 529 going for your baby. And then the rest of it I'm going to throw at the house.

And start paying off your home. How much do you owe on your home? $178,000. Yeah, you're well on your way to getting that paid off. But, yeah, you get that 529 going. And, Anthony, we see that 529 stuff really growing fabulously you get that you put 10 grand in there when they're brand new baby oh yeah it turns into a lot of money it turns into a lot of money dave what we're seeing right now anywhere between 800 to a million dollars not 800 80 000 to 100 000 uh by the time

this child turns 18 especially if you start right now willie so congrats on the new baby. Congrats on what you're doing. But please take advantage of baby step number five. And I'm telling you right now, you'll love it. Your child will thank you at graduation time when it comes to that time. Yeah. So, I mean, I dropped $10,000 in. And if you need to add some more later, you can to make sure you get there. Just keep in touch with your SmartVestor Pro.

Do that one rollover. Get those two Roth IRAs started. Take 401K up to the match. That's about going to get you to your 15%. Then let's attack the house from there. Yeah, because we normally recommend about $100 a month. That's $1,200 a year. So he's already 10 years ahead of the game.

Yeah, I mean, a lump sum like that will go a long way. A long way. So it'll probably double three times. Yes, sir. So it'll turn into about $30,000. So that's not going to be quite enough, but you probably do that $10,000 again someday. Exactly.

And might even take 10 more out of that 50 and do 10 this year and 10 next year. That's smart. That kind of thing. And just kind of be done with the account at that point. You're done. And what I'm recommending, even as well to parents and grandparents, like instead of forgiving toys during that season,

they don't know what toys are, put money into the 529. You know, have them. Instead of spending $100 on a toy, you know, give me $100 for the 529 to put into my child's future. And that's what I'm doing with my nephews and nieces. They haven't gotten a toy from me yet.

I'm just giving their parents money. You're that uncle? I'm that uncle. No toys? No toys. No Christmas gifts.mas gifts don't believe that no birthday gifts i just give them money to their 529 Anthony but i'm just saying no toys from him i bet you give socks at christmas don't you but dave you know what i don't give

nothing but here's the thing i mean we're talking about it this is this is what i'm passionate about i wrote the book on it but if we can get 80,000, is that going to take care of this big name school? No. But the average in-state school, in-state, is going to run you in between $6,000 and $11,000. So if you have, let's say on a low end you have $80,000 and you go to an in-state school, stay home, it's going to cost you maybe $40,000 to go to school. Now you have that, and the rest of the money can be passed down to your child. So I didn't mean to go off school now you have that and the rest of the rest of the money can be passed down to your child so i didn't mean to go off like that but yes i am that uncle because i i have five i

have four four four uh three nephews and one little niece so of course well the other thing you're doing when you're doing all that is you're inspiring their parents yes sir to to add to it and to move along and that's yeah anything you can do to inspire generosity and to inspire investing. And right now, while everybody's going crazy, to inspire kindness instead of everybody being so angry about everything. And just calm down, folks. Calm down. Be nice to each other.

Be generous. Be an inspiration of some kind, whether it's service, whether it's a smile, whether it's a large tip. These are uncommon times. They call for you to be uncommonly noble. Yeah. And, Dave, what I'm thinking about, when I listen to Willie, we didn't ask him his age, but he sounds young. And, Dave, think about how many of the young people can be like Willie.

Absolutely. Everybody can. Everybody can. Listen, you've got his act together, man. Yes, sir. His wife's able to stay home. He's making money. He's out of debt. He's working his emergency fund. Working his baby steps, man. That's it. He's doing it.

Game on. Love it, love it, love it. Yes, sir. That puts this hour of the Dave Ramsey Show in the books. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you heard about an event, product, or service and didn't have a chance to write it down, don't worry. We list everything you've heard about during this episode in the podcast show notes or head to DaveRamsey.com. Thanks for listening.