The Ramsey Show - App - How Can I Get Out of a Whole Life Policy? (Hour 2)

Episode Date: December 12, 2022

Dave Ramsey & Ken Coleman discuss: Getting out of a whole life policy, Making a decision about a job internship, Selling a home vs. renting it out, Pulling money out of mutual funds. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods of Moving and Storage Studios, it's the Ramsey Show, where daddy's dog dashes king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work that they actually love, and create real, amazing relationships. This is The Ramsey Show.

Ken Coleman, Ramsey personality, number one best-selling author of the book Paycheck to Purpose and host of The Ken Coleman Show, where he talks about career and jobs every day. Answering your questions is also my co-host today. You jump in. We'll talk about your life and your money. Tim starts off this hour in Knoxville. Hi, Tim. What's up?

Hey, good afternoon, Dave and Jade. Thanks for taking the call. And a Merry Christmas to you. Merry Christmas to you. I have an insurance question. Um, otherwise, uh, uh, my wife and I, who are just approaching retirement age or doing well, following along the baby steps. Uh, but I do have a whole life insurance policy, sorry to say. Uh, and I'm trying to find out what's my best way of dealing with

that now. What's my best exit strategy from it? Cancel it, but let's talk about it. What's your net worth? Just under a million. Okay. How old are you? 65. Well done. Good work. And so what do you make a year? Currently I am semi-retired, but between my wife and I, we're about $90,000. What do you make? I make about $80,000.

Okay. All right. And so she's got a part-time gig and you got a uh actually she's collecting social security oh okay how old is she 67 okay all right so the million dollar net worth is what in mutual funds and your retirement accounts or what uh mutual funds and cash. If it makes 8% a year, that's $80,000, right? So if it's invested in good mutual funds, which the market has averaged 11.8. So over time, if it averages around 8%, it makes about what you make. Is your home paid for? Absolutely.

Good. You're 100% debt-free. Kids are grown and gone or not any or what? Kids are grown and gone, and that's why we feel the insurance policy is no longer necessary. Yeah. That's kind of my point. That's what I'm leading to. You're self-insured by the fact that you're 100% debt-free.

If you die, she's okay. Yep. Your money makes as much as you make. If she wanted to draw down on that money, she could keep your exact same income coming in. Same thing if she passed away, same situation. And so your need for life insurance of any kind is gone if you don't want to keep it so in that case if that if you come to that same conclusion that i did then you would

simply just cancel the whole life policy and they will send you the cash value now they will argue and whine and tell you there's tax ramifications and other lies and carry on like you've done some kind of evil thing, but you haven't, or something stupid, and you haven't. You just got rid of a bill. What's the cash value, do you know? Approximately $67,000. Yeah, okay. I'll go buy you something nice, man.

Cash it out is what I would do. That's the truth. And I think the advice that Dave gave is really important. When you say no and you want to get away from these folks, it's like trying to get out of one of those email lists that you signed up for. There's about 17 questions. They try to guilt you. They try to spin you.

And you just understand that's what you're going to face. And you've got to go into that phone conversation or, if it's face-to-face, knowing absolutely clearly why. And that's why I love that you walked him through the why. You've got to understand the math, and then they can't talk you out of it yeah and i don't you know there is no point in debating with a person who sells car leases about car leases they suck there's no reason to debate it and the guy that sells car leases, I've made this mistake. This is, I mean, a guy called me up, we're Christian brothers. We need to discuss this.

And I'm like, yeah, you know, Christians can do math. Let's do it. And so I'm like, no, it's a bad deal. In the name of Jesus, it's a bad deal. And so, you know, I mean, and so what we ended up was i finally figured out in the conversation i had something i was talking about that i believe and it's his job all right yeah so he in order for him to lose the argument if he's going to keep his job he has to be a hypocrite or he has to believe he won the argument or or dave's just too dumb to understand he keeps doing

what he keeps doing so those convinced against their will are of the same opinion still so there's no sense in arguing with a whole life life insurance agent because if you win the argument they have to quit their job that's a hard argument you're just trying to cancel a policy so just say like no is a complete sentence yeah that's no no just tell me what we need what part of no didn't you get cancel the stupid thing no i'm not leasing a stupid car you can go do it if you want but no well what about don't you don't you want to argue? No, I don't want to argue about this because there's a no win in the argument because you have to quit your job if I win the argument because I will have convinced you that what you're doing is screwing people.

And unless you're just a doofus, you're going to have to quit your job. And so I'm not going to I'm not going to enter into this with you. I'll talk about it as a concept. You can listen to me on YouTube. And if you decide that, then then you can quit your job but but it's not a you see what i'm saying it's oh yeah you're never going to battle yeah you're never going to convince them the goal is not to convince them the goal is to leave them yeah i'm the democratic representative i represent i i'm the president of the democratic party if i want to argue with that guy if that's his title right he has to quit his job if i win the argument yeah it's not gonna and so it's like

no i'm not gonna have an argument with him i just love him where he is and i love lots of people that are wrong it's true it's true and by the way the same thing with that whole like friendship and like no we can be friendly and classy and Christian brothers, whatever you want to leverage, and still disagree. Yeah. And to your point, it's just, I'm getting out of this. But I quit having these Christian discussions. I had several of them. Yeah.

In the early days of the radio, they'd call me up and go, we're brothers in Christ. We need to have unity. We need to be in agreement on this. And I'm just disagreeable right to stupid right and i you know i've never debated anybody on any political social theological issue where i got done with my points and they went oh kid you're amazingly right i never thought of that i don't see the world the way you do quit yeah it. Yeah, it never happens. Never happens. So what you've got to do is just go, you're allowed to vote wrong. It's a free country.

Yeah. And several of you do, apparently. You know, and you're allowed to sell whole life. You're allowed to, you're allowed to, and I still love you. I'm not mad at you. But I mean, and there's probably some stuff I'm wrong, but I just hadn't figured it out yet. Wait till I get home. Sharon will tell me.

You're blissfully unaware. There we go. This is The Ramsey Show. We'll see you next time. ken coleman ramsey personality number one best-selling author of the book paycheck to purpose is my co-host today cory is in day dayton ohio, Corey. Welcome to the Ramsey Show. Hi. Thanks for taking my call, guys. Sure. What's up?

Okay. So I'm a 31-year-old debt-free intern who only makes about $800 a month and living with my parents while I finish my associate's degree. I was wondering if I'm making the right track with this internship or if I should be focused on something that makes more money. Well, what is the internship? What area is it in and what could it lead to? Well, it's a software development internship and it leads to a job in software development. I haven't been offered any position, but the other people who have done this path

have all been given the job afterwards for a software development position making about $72,000 a year. Okay. And how long are you into the internship and when will it be over? I'm about six months into the internship right now, and it's going to be over when I graduate in about a year. Okay. Are you doubting that you should stay with this? Is that why you called? And then why are you doubting it? I'm not necessarily doubting it. Well, I guess I am. I'm doubting because of how low the money is. It's hard to make ends meet making only $800, and I'm wondering if I should be doing something else. Well, I think the first question I have is can you supplement that?

So I understand why internships don't pay very well. That's just the nature of them, despite a lot of snowflakes thinking they should get full pay for internships. So I love your spirit, but that's the nature of the internship. So the question is between the internship and then your schooling, do you have any time to where you could be working 20, 30 hours a week to supplement that? Not a whole lot of time, but I'm sure I can find some time.

I could probably do Uber or something. Are you already writing code? Yeah, I'm already, I'm gifted with code. I know several languages. So that's the question. Why can you not do some side gigs with code on contract? I've never really thought about that. I'm not sure how I would get into that.

Ask anybody sitting around you at work. That's right. They're all doing it. But there's another question I have. And I'm not asking you to or telling you to, but if you were to pause this internship today, That's right. That's where you start. They're all doing it. But there's another question I have. And I'm not asking you to or telling you to, but if you were to pause this internship today, okay, and you just went out into the marketplace,

based on the code that you're already able to write and the experience you have, could you get something that's near the $72,000 that would also put you in a position for growth, or do you feel like this is the best way to get into this work? I think without a little bit more experience, it would be very difficult to. Definitely possible. I have a great resume, but with just some more working experience, I think it would be much, much easier. What's a great resume? I don't understand.

I have good credentials. On coding? No, I just mean for a job. Oh, in general, like you show up and you bathe and stuff. Yeah, yeah, essentially. Okay, I got you. Okay. Yeah.

Well, I think you have to weigh what your other options are. So, for instance, what's the best way or what's the only way? And I don't think this internship is the only way, but it feels like you believe it's the best way. Is that true? Yes, that's true. Well, then we got to go supplement our income. Thankfully, mom and dad are spotting you and you've got a finish line that's in sight, but I would be getting after it, man, and making as much money as possible so that you're not struggling while you're getting qualified. I don't think that's the right choice. There's nothing wrong with doing

what you're doing. I would do two things along with what Ken's saying don't think that's the right choice. There's nothing wrong with doing what you're doing. I would do two things along with what Ken's saying. I think he's exactly right. Number one, I would investigate and get – do you have anyone in the coding world outside of work that knows the world that you can talk to? Professors of mine, I could. Okay. Number – maybe.

That might give you an answer. I'd rather talk to a practitioner, somebody who's actually coding. My brother is a software developer. Oh, there we go. All right. Let's call brother and ask him how some of the guys do freelance work, how you put yourself out there for contract on freelance work, and would you be considered maybe a dev one,

which is an entry-level engineer okay okay and uh we've got uh i don't know 150 dev ones in the building here so i know i know them well yeah i know your project every dollar that's i wish i worked on something like that well maybe maybe someday we'll get you over here we always need help but uh anyway the the thing is if you can if you can qualify in your current skill set as a Dev 1, you're worth more than $70,000 today. Wow. Okay. Or if you're not quite qualified, but you can write some basic entry-level code, maybe join a small team of freelancers that are doing stuff at night on the side, and you can help them by providing some of the grunt work as just a good side job. Okay, that's a minimum.

We need to do that as a minimum. But what I want you to figure out is how marketable are you already? And if you discover I'm not, no one will hire me as a coder at this stage. I'm not good enough yet. Then you stick the intern thing out for sure okay but if you discover hey i'm already doing almost dev one work and i can get a job making 70 with upside of 110 today without waiting another year and a half then you go do that if you've investigated that it's good and either way you're going to get peace because if you discover

i'm not ready yet it answers your question i can be all in peace. Because if you discover I'm not ready yet, it answers your question. I can be all in on the internship. If you go, I am ready today, then there's no sense in making 800 bucks when I could make 80 or 90 grand. That's right. And so that's the thing. It's about expanding your horizons. I'll tell you what, Dave. I want to give him my book, From Paycheck to Purpose, and have him focus on stage three, which is get connected.

Yeah. He's got to just dive deep. There are seven stages. I want to give him my book, From Paycheck to Purpose, and have him focus on stage three, which is get connected. Yeah, exactly. He's got to just dive deep. There are seven stages. You're already clear. You're qualified. I think you need to get connected to see what's left for you. You know, if you were to contact or be in touch with people like our senior dev guys in the building, they could tell you in 30 minutes if the level of code you're writing

is marketable or you are shut up and stay an intern until you get this crap figured out right um and that's all you want to know that's all i want to know if i'm you tell me to shut up and put my nose down i'll do it that's right or tell me you're getting you're done man you can get out there and get moving let's get out there and get swinging that's it and i have a formula for feedback dave that if anybody this applies to you i would get three to five of these conversations that dave's been talking about three to five and not professors are my last choice because they're not doing it that's right three to five practitioners okay and that's what we want to do so we can get a a wide variety of input and

go where are the averages what are the consistencies don't just go to one person and get one person's opinion. It's not enough. Yeah. Dev ones are entering the market. It's above 70. So you're, if you're playing right around there, you should be fine. And, um, you know, but you may not be yet and that's okay. You're then you need to stick with the internship and push it on through. But it sounds like that you've got your path. It's just a matter of whether you need to use this exact methodology to stay on that path that's right yeah he knows where he wants to go now it's just what's the best way to climb it anthony is in california hi anthony welcome to the ramsey show hello hey what's up hey how's it going dave thanks for taking my call sure how can we help um hey so yeah my wife and i we moved um from orange county about an hour inland it's like an hour and a half with traffic and um we bought a house and uh we're kind of in a point where we we want to

move back because you know the commute's, it's kind of killing me. I don't really get to see my family too often. And then also the area we were in, we had family there or we have family there, but it's just we're realizing why we lived in Orange County in the first place. Did you realize that you couldn't afford it? Yeah. Yeah, that's part of the reason why we bought an hour inland. Yeah, because you can't afford to buy in Orange County. What do you make? What's your household income? So, I mean, base is $75,000,

and usually I kind of make somewhere between $90, 90 and a little bit more, depending on the year. Okay. And how old are you? I just turned 30. Okay. So if you sell your house and move back, you're going to be, you know, you make good money, but you don't make good money for Orange County. You just make enough to survive. Pretty much, yeah. I mean, we do have, you know, family that would be supportive. My family, you know, we...

We're not going to set up a life that's not sustainable that our family has to support us. Yeah, you're right. That's not a life. No, you need to have a plan that's sustainable where you have dignity. You stand on your own. I'm not saying you can't live in Orange County. I'm just saying that that's the trade-off. It's why you left in the first place. So yeah, definitely, if you're done, move back. But know that, you know, home ownership's probably

going to be many years out, if ever, until you get your income up and get your career going. And definitely sell the property that you're leaving behind. We're not going to stay in the rental property business. You're not going to have enough money. This is The Ramsey personality is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. James and Becky are with us. Hey, guys, how are you? Hi, Dave. Hey, there. Welcome, welcome. Where do y'all live? We're from Anchorage, Alaska.

Oh, little trip to Nashville. Just a short jaunt. Whoa, wow. Well, welcome. Thank you. Welcome to the sunshine and the warmth and stuff. And not three feet of snow. We really appreciate that. Well, we appreciate you leaving it there.

Hey, good to have you. How much debt have you guys paid off? We paid off $222,005.34. Love it. How long did that take? Almost eight years. Good for you. And your range that take? Almost eight years. Good for you. And your range of income during that eight years?

It started out with just me by myself at about $40,000 a year, and we ended last year at about $230,000. Okay. So you got married along the way. Yes. And the $222,000 was what kind of debt? It was a little bit of everything. So we had student loans, car loans.

I had finance, just about everything. So it was a little bit of everything. We were just normal. Okay. All right. And so you started this process eight years ago by yourself. I did. How did you run into the Ramsey stuff? Kind of on accident. So I actually, this little guy that I have with me was six weeks old and I became a single mom and my ex-husband got arrested and sentenced to a long prison term. And I got shouldered with all of our joint debt in the divorce process. And so it was a really terrifying time. And I treaded water for about four years until a friend at church said, have you ever heard of Dave Ramsey? And I don't think she knew the monster she was creating.

But I went to FPU. I actually went to FPU seven times and I just kept going back. And I kept going back because I needed to be in community as a single mom. And then at the end of that seventh time, the coordinator put his arm around me and said, I think it's time for you to start teaching this.

So I've taught, I'm actually about to wrap my seventh class next week. Wow, thank you. So it's just, it became a way of life for me. So thank you. So that's how we got classes going. Yes. Wow. You know, I want to follow up on that because I think people hear us talk about Financial Peace University, whether they've been here a long time in the audience or in a short time, but as a single mom going through, not just being a single mom, but a traumatic way of going into that status.

It was the community. That's why you kept going back. But I want you to go a couple levels deeper. What was it like to go into those classes, all seven of them, and just be a part of something? What did it do for you in your unique situation? I think it just gave me hope. And it let me learn every time I learned something new it was a little piece of something or I met somebody or I read something or I listened to something that just kept encouraging me and you know you I was 185,000 in debt by myself and I had 40,000 of income and it was just kind of like this is not a possible thing you know this is insurmountable is what it felt like and I had this little tiny guy to take care of all by myself with no child support. So it was just kind of this, it was a massive fear, but it was the one place I could go that I was like, these people get me.

And we have these like-minded dreams and goals and aspirations. And they really helped to kind of push me to just keep going, even though it felt like it was going to take forever. How many times were there where you felt like quitting and you went to a class and it changed everything? A whole bunch and in fact there were times when I would take little hiatuses and I'd have people pop in and say hey how's it going you know how have you been where where are you at how are things and you know I started coordinating when I was still in baby step two and I was still a single mom and I just felt like if there was one person who could get it, it was worth it. You know, it just made it all worth it. So. Well, and you can't argue with

you. I mean, you're doing it. So there you go. So how long have y'all been married? Just over two years. Okay. How did you meet? We met online. And actually I'll let you tell the first date story. Yeah. So my story is basically in my divorce, I looked at the assets and debt and we had nothing in the assets and everything in the debt. And we were basically splitting debt when we got our divorce. And I just didn't even know what to do. And on our first date with this one, she mentioned Dave Ramsey about five times. She was about as subtle as a hand grenade on that. Obviously, you were an important part of her life and i needed to know something about it so um i was actually in the middle of selling my house and she was in the

middle of uh her class on on real estate so she was like hey why don't you come and take a look at this class and see what it's like then the next time she coordinated i was in the front row first person uh signing up for that class. And I have no – That had nothing to do with the class. Yeah. All right. You're so financially responsible.

Yeah, he fell in love with Dave Ramsey. I don't think so. I don't think so. I like to say that basically she did all the work. As a single mom working two, three jobs, I basically came in at the end of the marathon with a cup of water and was like, great job. Well, it did help to get the income up and be able to attack it

and knock it on out. And to have somebody to be accountable to, right, that wasn't just. Well, and encouraging. Yeah, absolutely. Because you're being mama bear out there fighting on your own, scratching and clawing every day. And it just takes some of the desperation away to have somebody walking beside you. Yeah.

It's a different thing. Yeah. That's, it's part of the emotional journey and what you guys have been through. I'm so proud of y'all. Thank you. Well done, guys. Very, very, very well done. Okay.

Now, when you're coaching and you're coordinating these classes with all these people in there, you did an amazing, amazing thing here. And they ask you, okay, I don't think I can do it. What do you got to do to get out of debt? What do you tell them? I think my biggest piece that I tell people is to truly know your worth and what you're worthy of and what you actually deserve. Because there's a lot of people that are like, especially in Alaska, we hunt, we fish, we camp, we have summers that the sun never goes down and so we need a camper and we need the new fishing gear and we need to go on this hunting excursion and the boat yeah yeah it's it's that um you know the the feeling that you actually deserve this feeling of not being afraid anymore you you deserve this you don't like not the handbag

not the pedicure not the trip you know it's and that's what I try to tell them is it's just it's one step at a time it's one little bite it's one little piece and you you move forward you know and eventually it might you might be sucking wind when you get there but we got there eight years eight years was it worth it? Absolutely. Absolutely. I would do it again in a heartbeat. But you won't have to. No, never.

No. Never. No, no, no, no. Don't even say that out loud. Love it. Oh, that's a lesson thoroughly learned. Yeah. Oh, yeah.

Well done, you guys. Very, very proud of you you're heroes yeah i gotta ask very quickly um now you're on the other side of this and i love how you said you're panting you know you finally get there i mean it's an exhausting marathon what are you guys dreaming about now you guys are a young couple yeah we got a baby in january okay so we're starting over perfect timing yeah so we're growing our family and then we're looking at doing some traveling and you know james works remotely and so he'll be able to be home a little bit more instead of us taking those you know 500 mile away jobs and things like that so let's bring your guy up what is his name and age his name is logan and he just turned 12

all right logan well done good stuff oh that's good stuff all right we've got a copy of the live What is his name and age? His name is Logan, and he just turned 12. All right, Logan. Well done. Good stuff. Oh, that's sweet. Good stuff. All right, we've got a copy of the Live and Give bundle for you guys. It has in it the total money makeover. It has the Baby Steps Millionaires in it and a one-year membership to Financial Peace University. I'm sure you're giving that away. Yes.

And you enjoy as much of it as you want. Give away the rest of it. It's all good. It's here for you to do both. So very proud of you guys. Thank very very well done james becky and logan anchorage alaska 222 000 paid off in eight years making 45 to 230 the majority of that she did as a single mom so any of you out there that think it can't be done she just uh mic dropped on you there you go so count it down guys let's hear a debt-free scream ready three two one that ladies and gentlemen is how it's done. Well, you just have encountered a very tough lady with a lot of grit.

Man, she hustled and grinded through that. That was amazing how long she pushed and pushed and pushed until that breakthrough happens. Wow. Powerful. Powerful. Powerful. This is The Ramsey Show. We'll be right back. Ken Coleman, Ramsey personality, number one best-selling author, is my co-host today. David is with us in San Antonio. Hi, David. Welcome to The Ramsey Show.

David, Ken, how are you today? Better than we deserve. What's up? Awesome. So, my wife and I, we've been married for a little over one and a half years. We want to get into our first house by next summer. We're in baby step four and five right now. We have a three-year-old and we have another one on the way in about two or three weeks. So with that being said, our household income is at 157K going into next year. So we have been, over the last five years or so, we've been contributing money towards our house fund into growth stock mutual funds.

So far, we have contributed about $166,000 towards that house fund. But because of this market that we're in with the stock market, it's gone down about 30K. So right now we're at about $135,000 in that house fund. My question is, do we take that hit of that 30K to get into a house in the next six to eight months, or do we just ride it out, you know, until we at least get, I would say, at least half that back in that fund. When are you thinking about buying a home?

Well, our lease is up in May, at the end of May. This year? In 23? Yes, this year. Yes, sir. Yep. So you've got six months. Yep.

So we're looking at about June, July, probably. And we can always do the month-to-month lease, too, if we're looking at about June, July probably. And we can always do like the month-to-month lease too if we need to. All right. I cannot figure out exactly what you've got your money in because it's down more than the market is down. Yeah, so our portfolio is down about, I look today, about 21%. In the last 12 months, Adele Jones is off 7%. Yeah, and again, I've been self-managing this.

So like I said, I've been just doing the regular four that you teach. But again, I'm not going to make that bad on your teaching. No, no. Putting across those four mutual funds for the short term is never a play. You had a five-year window, and the five-year windows very seldom lose money if you'd have just been in a simple growth stock mutual fund that followed the market, like an S&P 500 as an example. Right.

That's probably what i would have put you in for saving for a house instead of across those four the four are for primarily for long-term plays in um retirement accounts and so forth anyway that's neither here nor there this is where we are so the the question is this it is not what you started with that causes you to make the decision to pull it. It's what you think it's going to do. Right. So, I mean, let's pretend you started with $100,000 and it was worth $160,000. Then, you know, you still have to make the decision, do I pull it now based on what I

think it's going to do between now and may of 23 if it's going down and then back up and then back down and it's net down of what i put in which is where you are i have to make the decision what do i think it's going to do between now and may of 23 so the the past causes us to be emotional but it's really not your best you know you don't you don't say well i'm trying to recover some of the money that's called a sunk cost analysis and that's always a fallacy you don't want to use that as your critical thinking path your critical thinking path is i i i reach a necessary ending with anything an investment a relationship a job whatever it is when i lost when i've lost hope

for the future and you don't have I've lost hope for the future. And you don't have to completely lose hope in the stock market, but if you've lost hope that in the next six months from now until May of 23 that the market is going to go up, is it going to go up over the next six months? If you think no, then you would get out today. If you think yes, then you would get out today if you think yes then you would stay in i truly don't know what it's going to do between now and may i have no idea what would i do if i were in your shoes i would um i'm pretty risk averse.

I don't like risk. The things I buy and invest in are very conservative, generally speaking. So I'm couching my answer in that. I'm probably going to split the difference. I'm probably going to pull half of it and let the rest of it ride until May. And let's see if I can make some back on that. But that way I've limited the whole stinking thing's not going to go down another 30 grand on me, right? Yeah, no way.

No way. Yeah, and so. I hope not. But I have no idea. I mean, we've got so many things affecting this economy now in the short term that are negative interest rates. We, you know, the Fed is doing its best to push us into a recession to slow interest rate growth. They've stated that. And so what does that do to the stock market? Not necessarily anything, except if profits go down because consumer activities go down like buying crap, then you're going to see the market drop more.

So I don't know, because we're being so poorly led right now on the economic front that the variables that government does control are screwing up everything. Right. I'm being pretty negative. So what would I – i would pull half of it i'd pull half of it and i'd ride with the other half interesting all right yeah i like that over the last couple months or so we've been we've decided to like not put the money into the mutual funds and just start saving i would add no more yeah i would add no more right exactly and so this kind of clears things out some we've been fighting with the last couple months or so.

Let me say really, really loudly, because people always get misquoted and misconstrued and misconstrued and everything. But let's say really, really, really loudly, I am not saying that you should pull your money out of mutual funds if you're in a long-term investment situation you're not a long-term investment situation you're in a short term but 100 of my 401k money is in mutual funds the four types you're talking about and 100 of it is staying there i'm not moving a dime out of the market for the long term i have not lost hope in the market in the long term i just don't know what the flip is going to happen with these idiots in washington between now and may they could screw up christmas they've still got two weeks to do it but um yeah i mean it's just you know what i'm saying it's just i do i'm

somewhat optimistic and with the caveat that nobody can predict what the market's going to do. However. I'm always half full. I think you're going to see a lot of companies already doing it. You're seeing a lot of major public companies do layoffs to get control of their balance sheet. We went on a rant about this last week. To make more profit. To make more profit.

So I do think you're going to see the stock market. I think it's going to be a pretty good first and second quarter. I think things are going to stabilize there because I do think the inflation situation, and even though the Fed's going to keep bumping the rates, the job market's very strong. I don't see that being affected. So I think it's going to shake out. Yeah, the real estate market has slowed down, but it needed to. It had to. It was overheated. That's right. It's not diving or anything like that. It's doing about what we told you it was going to do. It had to. It was overheated. That's right. It's not diving or anything like that. No.

It's doing about what we told you it was going to do. It's going to go up 5% to 7% in 23. And would you say the fundamentals are ripe for a nice rebound? Because inventory is still low. I don't think there's going to be a rebound because everybody's got their lips stuck out and is whining about interest rates. And a lot of people think psychologically that the market is actually worse than it really is. So, you know, no, I've got a property on the market that I'm liquidating.

And they came in with less than a full price offer the other day. And I told them I'll wait. How long before you think the American house shopper psyche adjusts to this new interest rate reality? Well, I mean, let's's face it we're all drama queens so we overplay the up and we overplay the down you know it's like that's awesome it's not nearly as awesome as you're acting like oh god the world's coming to an end not as much as you say i mean they overplay it right and so it's and part of that is they watch the news too much and believe what's on the news and uh you know if you're getting your information from people in the bathtubs at the

break or walk-in bathtubs you know you've got crazy information all right so um it's just like i call that headline hysteria yeah exactly and i think that affects it more than it really is so the market has slowed down we told you it was going to slow down we needed to slow down the real estate market so i don't know what stock market's going to do between now and may i really don't but long term i'm 100 have not changed an ounce of that do not tell people i said to pull your money out of the market because it's going down i did not say that i was talking about God, I hate having to be so overly clear. This is The Ramsey Show. Hey, folks. Ken Coleman here. Did you know The Ramsey Show is one of the most popular podcasts

in the world? Get your daily dose of advice on life and money. Check out all of our shows from The Ramsey Network wherever you listen to podcasts.