The Ramsey Show - App - How Can I Hedge Against Inflation? (Hour 2)

Episode Date: August 25, 2022

Dave Ramsey & George Kamel discuss: What it means to have a hedge against inflation, How to manage an inherited 401(k), Moving 529s from person to person, The best thing to do before going back to school. 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, it's the 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. We help people build wealth, do work that they love, and create actual amazing relationships. Thank you for joining us. George Campbell, Ramsey Personality, is my co-host today. Our phone number is 888-825-5225. Lee is with us in Omaha, Nebraska. Hi, Lee. How are you?

I'm doing well, Dave. How about you? Better than I deserve. What's up? Well, I want to give you a little quick history. I talked to you about five years ago after reading the money makeover. At that time, I was three years away from retirement. I called and told you that I had paid off everything but my house, and I wanted to get an annuity in my IRA to make my house pay. And you advised me against that and told me to take a withdrawal and pay off the house.

Well, against the advice of my friends, I did that. So I've been debt free for the last five years and it's a pretty darn good feeling. So I appreciate the advice, but what's happening now is the same friends are telling me I need an inflation hedge and that I should withdraw money from my IRA and put money down on a couple of rental properties so that they increase in value over the next few years. But my problem is I have quite a bit of my IRA in tips, staggered, so they come due at different times, and I bonds. So I'm making 8%, 9% now. I'm only withdrawing three. So my wife tells me, why in the world would you want to be a landlord and have leaky toilets and calls in the middle of the night and all that so my question to you dave is do i listen to my friends or do i listen to my

wife well that's a no-brainer then we could talk about the advice too but i mean the proverb says who can find a virtuous wife for her worth is far above rubies the heart of her husband safely trusts her and he will have no lack of gain if your wife isn't a nag and she is a wise virtuous woman her worth her wisdom is will cause you to have no lack of gain as opposed to stupid friends and there's lots of people have stupid friends i've got a few stupid friends. You're not sitting next to one, though. No, George is not stupid. George is a lot of things, but stupid is not on the list.

But I agree. I think you can ignore your friend's advice on this one. And not because your wife is right and they're wrong, but because it's not a wise move for everyone. Now, let's talk about it for a second, okay? What is a hedge against inflation a hedge is literally like you think of a row of bushes right and tightly woven together so that the neighbor's dog can't get through right i mean it's it's a blocker a hedge is a blocker a wall to keep inflation from getting in all inflation hedges are investments that invest in things that inflate with inflations.

So real estate is a hedge against inflation. Investing in companies whose stock goes up and price goes up, if the inflation rate goes up, would be a hedge against inflation. Energy company is an example. What happens, what's a component of inflation energy company as an example what happens what's a component of inflation gas price at the pump right right and so if you buy a energy company you have a hedge against inflation because they're they are inflation and so you own a piece of inflation thus it's a hedge real estate is inflation the raising of real estate prices is a component of inflation so that's a hedge against inflation tips aren't uh savings accounts aren't so if you

wanted to have a hedge against inflation yes real estate would be a play uh and a good one uh yes uh moving some of your money into some mutual funds that are investing in stocks of companies that are gaining due to inflation. So you are riding the wave of inflation rather than being crushed by it. That is the definition of a hedge. That's the essence of it. But aren't tips tied to inflation? Well, they could be. Depends on what's in it.

Well, I mean, I own tips within my IRA, but they were purchased as bonds. So it's not a TIPS fund. Well, bonds are not. Bonds are not, because bonds are just a debt instrument. They've got a fixed interest rate attached to them. And that is not a component. Well, maybe I'm using the wrong term. It's a treasury-inflated protected security is what's called a TIPS. So maybe it's a note. Maybe bond is the wrong term. It's a treasury-inflated protected security is what it's called, a TIP.

So maybe it's a note. Maybe bond is the wrong word. Well, it is a note, but it has a fixed coupon rate. That's why it's not a component of inflation. See, if you think of, okay, lumber went up 3x during COVID, right? Went from $600 per board foot or whatever up up to about 1500 and so in that that is a component of inflation and so if you owned a stock in a lumber company if you were participating in 84 lumber i don't even know if it's publicly traded but if it was and you owned in that then

you would be having a hedge against inflation if you own a a note that 84 Lumber Company has promised to pay 8% on, it doesn't change with inflation. But the price of lumber changes, and that company makes more money. So you've got to be participating as an owner, not a lender. I see. And that's what moves. So if you're concerned about that, I would move some of my portfolio, and I probably would anyway, into some good mutual funds now if you want to buy some real estate and you want to

pay cash for it and buy real estate that doesn't require a lot of leaky toilets and midnight calls i mean you could buy a little small piece commercial a little office building a little apartment or something have somebody else manage it that'd be okay what's the size of your net worth? Well, total with house, IRA, everything, probably $800,000, $850,000. Way to go. Congratulations. How old are you? Well, I'll be 68 shortly. After hearing you talk, I'm probably going to sit exactly where you are.

I'm with your wife. Okay. She's going to be glad to hear that. Yeah. Because you like predictability and precision well i do i i don't like a lot of risk in my investments and then uh uh you know i with uh with the passive income i have and the money i have the ira i'm doing okay yeah so i just don't know that it's worth the risk not knowing what's going to be in the mailbox when you open it

is not your play right right and it is for some people it's worth the risk. Not knowing what's going to be in the mailbox when you open it is not your play. Right, right. And it is for some people. It's not for me. Well, I mean, I own rental property, and I don't know if they're going to pay every month. Sure. But you know these tips are paying. That's a coupon. It's just going to show up in the dadgum mailbox or the electronic mailbox, whatever.

I mean, your money's coming. It's mailbox money. You can count on it. So I think your life is good, and I don't think i'd screw with it because of the way the way you take if there's a few million here you might say all right let's pay cash for some real estate but 800 000 i don't think it's worth taking a huge chunk of that out to buy real estate if you're sitting on 2 million in that i'd pull 500 out and move it towards some kind of a commercial real estate and you love real estate but real estate is not for everyone and you don't need it to build wealth and keep wealth no people

can do that with their mutual funds with their 401ks and i do it with a lot of things but you just need to do it with something that that fits your profile and he's got a very clear profile um and part of his profile is his friends are not trustworthy time to find new friends at 68 i don know, you've had these friends for so long. We're all sitting on the front porch whittling with an opinion about economics. But yeah. That's what friends are for. That's what wives are for, too.

And husbands are for. It's good stuff. We need them all. Very good stuff. One of the keys to my wealth building has been slowing down enough to make sure my wife speaks into it. Sharing is the best investment Dave ever made. You heard it here first. You did.

It is absolutely. 40 years now. This is The Ramsey Show. The George Campbell Ramsey personality is my co-host today. Open phones at 888-825-5225. You jump in, we'll talk about your life and your money. Candice is up next. Candice is in Tulsa, Oklahoma. Hey, Candice, how are you?

Hi, Dave. I'm doing great. It's such an honor to talk with you and George today. Thank you so much. You too. What's up? So we recently were surprised with a call after my husband's uncle passed away earlier this year. He had apparently put my husband down as a beneficiary on a 401k he had at a job several several years ago it wasn't the job he had when he passed

so we um inherited the 401k and had about fifty thousand dollars in it at the time that the check was cut to my husband so i don't i've looked you know talked to a few people i know some of the rules change as far as an inherited 401 401K as to distributions and all that. I believe it's within the first 10 years. Everything needs to get withdrawn. I don't know how that looks year to year. And so I'm just calling for your clarity on that and then advice when we take those distributions, what we should do with the money.

Well, you have to take a 10th a year. You're correct. Okay. It's called the the drain in 10 rule and it passed the secure act uh it was signed into law in december took effect at the beginning of 2020 signed into law but right before covid how convenient but um yeah so you used to take an inherited ira using the old r RMD rules that required minimum distribution, but now it's a drain in 10.

So you've got good information. You've got to take out a 10th every year until it's gone. Then the only question of what to do with it is wherever you are on the baby steps, right? Right. So where are you guys at currently? So we don't have any debt but our home, and we have about 87 probably left on the mortgage it's probably worth around 200 we have about um so my husband's a police officer so he has a defined benefit plan so we don't contribute to that it's just a pension um so we don't have a 401k aside

or any other you know about investment aside from that pension as far as retirement you should you need to be putting 15 of your income retirement. Do you have an emergency fund of three to six months of expenses? We have about $40,000 in savings, not including price on that. Have you heard of our baby steps that we talk about? Yes, sir. So I think we need to get the emergency fund up. You have no debt except the house. So the next step would be fully funding that emergency fund at three to six months, which is probably somewhere 10 to 15,000 for you guys at least. All right. We have 40 already. I have $40,000. But you said you had 3,000. Do you have an extra three in a different account? No, I'm sorry. We have $40,000 in a savings account. What was the $3,000 you mentioned?

I'm sorry. I didn't mean to say $3,000 if I said that. Okay. I did hear that, didn't I? I heard it, too. Okay. So, yeah, then we'd be investing 15%, and you could use part of this money to fully fund a Roth IRA

if you're under the income limits. What's your household income? About $92,000 a year. do a couple of Roth IRAs are your first thing you ought to be doing that out of your budget anyway just be sitting down doing a budget and putting 15 percent of your income into retirement that's baby step four do you have children we have four children and we haven't we haven't started anything with the college baby step five is kids college and with anything above the 15 going into retirement and above what you do to kids college you throw that at the house so it sounds to me like a fourth or a tenth of

50 000 is going to be 5 000 that's going to help you get baby steps four and five going okay that's what it sounds like i appreciate it yeah you see how we're doing that so you need to sit down with a smart investor pro and start working on this and figuring out what you're going to move where you're going to move it what it's going to be invested in and you know get you get something started for the kids college even if it's 50 bucks a piece a month get a little something going so you so you start building the college muscle and then you go ahead and make sure you're putting 15 of your income into retirement, and this $5,000 a year is just going to help you do those things.

That's all. So, hey, good question. We appreciate you joining us. Open phones at 888-825-5225. Jacob is in North Dakota. Hi, Jacob. Welcome to the Ramsey Show. Hi, how are you guys?

Better than we deserve. How can we help? Yeah, so my wife is currently in med school, and we are cash flowing it right now. I just have a question because my mom, I was very fortunate. I was put mostly through school through her 529,

and she had some leftover money in it, and it was in my name, and she had some leftover money in it. And it was in my name, but she was wondering if she kind of wants to withdraw it, and she's wondering if she can use it to pay for my wife's med school, and then we pay her back. I don't know, though, if that's allowed or how that works. I would not do the deal because I'm not paying her back. You don't want to be in debt to your mother. Well, we could pay her back like immediately.

No. We have the money, but I just don't know if it's legal basically. Oh, wait a minute. She's going to give you $20,000 and you're going to give her $20,000? Yeah. How did this benefit you it didn't no but it would so she would basically be withdrawing the 529 without paying the penalty is yeah without paying taxes

yeah so it's just a favor to her yeah well that's sweet um yeah well that's sweet um yeah uh i you're gonna have to check a tax advisor because the nuances in the law you can you use a 529 now for anyone in your immediate family i do not know if we can consider this immediate family or not i don't know the answer i'm sitting here also questioning whether i'm screwing with this or not but how much money is this about 30 uh it is what she would be asking yeah okay so you have 30 000 in an account she's gonna write you a check for 30

out of the 529 to pay or pay pay for school for 30 and then you're going to give her that money right back and you're not going to be right you're not going to be in debt to her okay no it seems it seems like a tax efficient move um she certainly can share it with her son i don't know where the break point is. If her son is 60 and she's 80, can you do that? I don't know if there's a cutoff on the age. I'm not saying you're 60 and she's 80. I'm just saying these are grown people.

These aren't traditional students. I thought it was 30 somewhere, but I need to look into that, the numbers on that. Start poking around there. Why weren't you poking around there while I was stammering? But anyway. Slow to the punch. But the truth is, I just don't know the answer to your question, Jacob. And I was going to question whether or not it ought to be done, but I don't hear any problems with the way it ought to be done.

I think I would do it if you can. But you need to get, she needs to get reassurance that she is not, it's not illegal. It's not a criminal thing. It's just a matter of whether in the event of an audit, would this be disallowed? Would this be considered outside the law, outside the tax law? So it's just a tax question. It's not really a criminal legal question um it's just uh is this an improper use of a 529 that will be disallowed in the event of an audit um and i don't know what

the cutoff is i know you're allowed to share the new 529 rules a couple years ago that came in i used to be siblings could share it but now you literally can use your's 529 for you to go to school if your kids don't use it. I mean, so it's anywhere in the family. It goes any direction back and forth. So I kind of think you can. I think when you dig into it, you're going to find that. Did you find anything? Well, I'm just seeing that the earnings portion of any unspent funds after the beneficiary turns 30 are subject to 10% penalty.

But that doesn't include if you change beneficiaries and what that would mean to the age limits. Yeah. So I jump on ramsaysolutions.com. It sounds like if you're under 30, because you definitely could share it with your wife, you might have to roll it. You might have to put it in a 529 in your name from her name in order for you to share it with your wife because she's not blood kin to your wife that might be the catcher um check with your investment broker and or a um uh you know a smart investor pro if you're working with one or uh a tax pro and you can get those at elp for tax pro

as well at ramsey solutions i'm sorry i just don't that's a weird little corner of the world i don't know the answer to that little nuanced thing. This is The Ramsey personality is my co-host today. Open phones at 888-825-5225. In the lobby of Ramsey Solutions on the debt-free stage, Douglas and Janann are with us. Hey, guys, how are you? We're good. How are you? Better than we deserve. Where do y'all live?

Raleigh, North Carolina. Raleigh, awesome. Great town. Welcome to Nashville. Thank you. And here to do a debt-free scream, how much did you pay. Raleigh, awesome. Great town. Welcome to Nashville. Thank you. And here to do a debt-free scream, how much did you pay off? $130,000. Good for you. How long did that take? 39 months.

All right. And your range of income during that time? $175,000 to $200,000. Cool. What do you all do for a living? We both work in the insurance industry. Great. Very good.

What kind of debt was the $130,000? We had student debt, car debt. We were kind of poor, car poor for a while. We were definitely upside down on two cars. And credit cards. Ah, okay. How much of the $130,000 was cars? Close to, that would have been $48,000. Ah, okay. A bunch of it. Yeah.

Cool. So what happened 39 months ago that put you on this journey to the Ramsey way? We met some awesome people that were debt-free, and we got together and started doing a group, and that really helped motivate us. But more than that, we were just tired of arguing about money. And so when this group was presented and they're just awesome supports and we just said that this is where we want to be and we're so excited that we accomplished it perfect so financial peace university class or just a group yeah no it was the it was the class itself okay but we continue to meet once a month i mean they're you know we're still meeting even now that we're we're debt free and moving into the next step good um i love it and it's so you guys became close yes yeah well did this group start like

in a church or was this friends that decided to do this friends friends wow that's awesome so you went hey these people are debt-free maybe they could uh show us the way absolutely that and dave ramsey wow awesome well we're honored very cool you guys very cool so you've been working on this a little over three years that's a long journey yeah at the time we thought oh my goodness it's gonna take us forever forever yeah it it just kind of came and it went so quickly that you know it's awesome that we stayed with it and now we're on the next journey so what was the hardest part probably getting on the same page, probably like looking and saying, hey, you know, how much debt do we really have and how much we kept a secret.

The communication, the communication piece in the in the beginning, I think we we had our head in the sand and we didn't really want to talk about what we both knew were issues with our finances. And when we started the class, we finally started to have open communications and, and that's really, it's improved our marriage, but it's also really improved our direction as far as our financial journey is concerned. Wow. So where did that come from? This kind of hiding, Hey, I don't want to be upfront and totally honest about this. Was there just shame and baggage associated with

these decisions yeah no i think it was shame as as much as anything was it free and it was easier it was easier not to talk about it so um i didn't worry about it much when we weren't talking about it of course but then there was some freedom it sounds like and just saying all right it's all on the table here it is we're going to attack this together absolutely and it was nice to see that she was being as bad as i was so it made you feel better it did thanks. Thanks. Well, now that you've told me, I've got one for you. Oh, my goodness. And I see yours and I raise you a MasterCard. What was the most surprising thing about the journey for you guys as you started paying off

debt? So I guess the one thing that we want to make sure we tell on our journey is he was diagnosed with a very serious medical condition last year. And so it really didn't put us off track, but we kept looking back going, oh my goodness, if we would have been in debt and had this extra amount that we had to pay tremendous amount of money for medical, we probably wouldn't have made it through because we would have been fighting all the time and it was just been so stressful. And so I guess that's the biggest story we like to tell people. And from the time of my diagnosis to, um, to the, to the end of debt-free, um, we actually paid more the last year, um, than we did the first two years. We, we, we just, we just it gave us a focus um that i don't know we would have had otherwise and uh um this just got real yeah it did so but wow how you

doing now i'm doing well good good i'm glad to hear that good stuff so now that you've been in a group and you are successful, you paid off $130,000. That's amazing. What do you tell people the key to getting out of debt is? To stick with it and just, you know, I say do small goals because I'm a goal-oriented person. So I'm always saying, okay, set those goals, you know, and then once you accomplish it, get to the next goal. So to me, it was always fun, I guess, if you call being in debt and credit card debt fun, but... The traction is fun.

You hit the next one, and then you'd be like, okay, our next goal is this, and, you know, we'd be like, hey, do we go out to eat this weekend? And we're like, no. She's all about getting to the next number. And so even to the point that we would we would rob ourselves of other things that we maybe was going to use that money for just to get to that next number i like it um and it does all intensity right there built some momentum yeah we listened to that a lot on that group that's our favorite video by the way

that's pretty incredible well done y'all very. So I'm seeing three things here that stood out to me. You said you need a goal, you need a plan, and you need other people. Yeah. And when you have those three things, I mean, you just feel invincible. You could run through a wall, and these people are still with you today. I assume, is this like a cheer squad you brought? It is. There's like 17 people.

I don't think I have that many friends. That's impressive. Good for you guys. I think the support is huge through this. And there's people in this group that have made some of the same dumb mistakes we made. And to be able to see that someone had made those mistakes and found their way out of the hole, it gave us a roadmap. And it's been great through the whole process. Way to go, you guys.

Congratulations. We're proud of you thank you well done heroes well done got a copy of baby steps millionaires for you that's the next chapter in your story how ordinary people built extraordinary wealth you can too we've also got a copy of total money makeover for you to give away to someone and financial peace university membership for a year and you can give that to someone since you guys have already got a group and doing it that that's cool, because a lot of the FPU groups become lifelong friends.

It's not unusual at all. And the coordinators particularly become lifelong friends with the people in the group. So very cool. Congratulations, you guys. Well done. Thank you. Douglas and Janann in Raleigh, North Carolina, $130,000 paid off in 39 months, making $175,000 to $200,000.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Yeah! Woo-hoo-hoo-hoo! They did it!

Boom! It feels like life always happens on the debt-free journey. Yep. Very rarely is someone like, it was just smooth. There's always some big hiccup, but it almost feels apropos because you go, this is why we're doing this. Back in the day when we were starting Financial Peace University and I was still leading the classes, teaching them live before video and all that stuff, we would always just tell

people when they joined the class, one of the things you need to know as soon as you join the class your transmission is going to go out i mean because like the number of people that came through the class in the old days and their transmission would just fall out of the car it was unbelievable it's like there's always something going to come at you to test you like to see if you're really going to do this it's like the devil is testing to see if you're really going to work god's plan you know it's like this is a test of the emergency money network. I mean, it's like they're just going to check you, see if you're real or not. And, man, they had a real test there because medical is a lot more than that.

That's a lot bigger than transmissions for sure. A lot bigger deal. Very cool. Very, very cool. Well done, you guys. Hey, George and Rachel Cruz and I and i along with dr john deloney and ken coleman will be doing live events this fall and they're just about all sold out uh we've got a little bit of seats left in phoenix on september the 12th the 13th is already sold out

sacramento sold out november the 1st minneapolis november the 10th and san antonio november the 15th i think there's 20 seats left there or something. Wow. It's not many. If you want to come to these Building Wealth events, that's the dates. They're September and they're November, and we would love to have you. They're only $25 to come for the night, and a four-pack starting as low as $60. Do like those folks in the debt-free screen.

Get some friends. Get you some. Borrow some if you have to. And people are loving this we'll be signing books taking pictures hanging out with you guys as well as talking to you about building wealth these events sell out very very quickly just a handful of seats left at all of them please get your tickets immediately building wealth at ramsey solutions.com slash events. George Campbell Ramsey personality open phones at 888-825-5225. He's my co-host today. Ryan is with us in Atlanta. Hi, Ryan. Welcome to the Ramsey Show. Hello, how are you? Better than I deserve. What's up?

So basically, I just kind of came in contact with your show after a whole life insurance seller was trying to get me to buy that. And I watched a few of your videos and basically have been ignoring him since then. And it got me thinking about... One down! One down! Oh, he's called me about seven or eight times since then. But he made a whole portfolio for me, which was nice of him. Just use the blog feature.

Yeah, well, it's kind of nice watching it ring. Basically, I'm just kind of in a situ trying to figure out what I want to do with my extra cash until I go back to school. Just bought a house.

So I do have a mortgage as of now. First time home buyer. I have about $15,000 on my car left, but I have about $65,000 in the bank right now. And I just never really have been introduced into the financial world, so I'm not really sure of what I need to start doing. Do you have any other debt other than the car and the mortgage?

No. What's your income? So mine kind of fluctuates with my job. Um, since I'm kind of a travel nurse right now, this year, it'd be probably about 120 to 130. What's the, uh, what's the go back to school? Uh, I want to get my PhD and keep going to school. I love education.

So it's just, it's more of a personal goal for me. And it will also bump my salary up to about $180,000 to $190,000, depending on where I am. Do you have the money to pay for school? I have the $65,000, and that is it right now. I do have a fiancée that works right now. She makes right at six figures, and so it would basically be between that and probably student loans, sadly.

When are you guys getting married? April of this coming year. Most of the wedding stuff is already paid for and planned. I probably still have another $7,000, $8,000 put down on the wedding that I'm just expecting. I'm sure some unexpected costs will come up. And when does school start? I still have to get accepted, but my

tentative plan is hopefully fall of 2023, but I'm going to keep applying until I go back. Okay, so you'll be married. If you go back and start working on your PhD, is that an adult education thing where you keep working? I cannot

keep working. It's a CRNA program, which is nurse anesthesia, and a lot of programs will not let you work while you're doing it because it is basically full-time, summers, winters, everything. Yeah, it's a two-year deal, right? Three years. Three, okay. She'll be living off her income for three years at that point?

At that point, yes, sir. Which is about $100,000? She makes, I think, before taxes 115 okay so here's um what i would do if i were in your shoes and you're fairly new to our stuff uh but we've been teaching this stuff around ramsey for about 30 years now and basically the question we're always trying to ask is what is the shortest distance between where you are and wealthy and uh not because rich is everything or something like that but you know what is the the fastest right path now not the shortest distance but the fastest right path that doesn't bankrupt you or put you at high risk or something like that.

So what we do know is that the number one key to wealth building is to free up your largest wealth building tool, which is your income. So avoiding debt and getting out of debt and staying out of debt is going to be a solid tenant that all of our data and experience leads us to. So in your situation, what does that mean? It means I'm paying off your car today. Okay. Now you're debt-free but the house. Okay. Yes, sir.

And then when you all are married, you're going to have a $200,000 plus your income until you go back to school. I'm going back to school when I can map out how between my income now and her income later, we can live in cash flow school, no debt. Nurse anesthesia is a great career field. The ROI on that degree is excellent in most cases. Yes, I strongly recommend you do this, not just because you like education, but because you will make a lot of money for the money you spend. However, having said that, you know, and I know, that the school you can go to, there's a wide spectrum of expenses. You can go to the expensive nurse anesthesia school, or you can go to the not expensive one. You're going to go to the not expensive one since you're paying cash.

Even if you get accepted only to the expensive one, you're going to apply to the not expensive one until you get in. Okay. A lot of people in your shoes feel so honored. And I finally got into this very difficult program. And they let me in in and they're going to charge me so much that my grandchildren will still be in debt but it's a great honor bull crap it is not a great honor you just got screwed that's what that is and that happens in the medical field every day dude i've worked with mds and nurses for 30 years that regretted where they chose to go get their degree.

Because I got to tell you, right before they stick a needle in my arm, before you put me under, I have never once asked one of you people where you went to school. Would you sacrifice where you're living and basically where you're rooted in right now to go to the cheaper school? Yes. The two schools in Georgia have about $150,000 tuition difference. Yeah, there you go. And they are both great schools, yeah. You just made my case, yes.

And neither one of them train people to kill people. In both cases, you can administer anesthesia safely. I mean, oh, my God. And in both cases, you're going to come out making 400K. I mean, it's a sweet ride you're signing up for. I totally endorse your path. But just the way you go about your path, use some freaking wisdom. Yes, sir. And you do that, man, be you're gonna be lining up this thing up so it's pretty simple y'all make a couple of

hundred a year uh you get the cars paid off you guys you know you pile up money you stack cash and then you get married you stack more cash and if you start spring of 24 instead of fall of 23 and you go to the right school you can cash flow what I'm talking about here. You got the money coming in. You can stack the cash. I can hear the numbers. And our plan, if I did go, of course, and I'm hoping to go to the least expensive school,

was to rent out basically the house that we just bought now. I've already looked in our HOA. They do allow rentals. And basically, so we won't have to sell this, keep the property. It'll be fine or it'll be okay to property. Be fine or be okay to sell it. Be okay to sell it. There's a lot of houses in Atlanta you can get one when you come back. You're going to be gone three years.

And while you're studying, while you've got your nose in the books, you may not want to be screwing with renters. I don't know. And so what about the cash that I have now? Should I just keep saving it or should I start trying to invest? Pay off the car today and stack cash. We're going to go be a nurse anesthetist and we're going to pay cash for it and i got to stack cash my whole life for the next 18 months of stacking

cash that works for me i can eat chicken and rice daily hey man game on you're you're right on because see you come out with no debt dude what you're going to be making what she's going to be making as young as y'all are you're going to be making and what she's going to be making, as young as y'all are, you're going to be so freaking rich, it's going to be unbelievable. Yeah, that's kind of what we're hoping for. Yeah, because you didn't handcuff yourself and put yourself in shackles, the shackles of slavery, on the way in. I've got family who's in the CRNA program now in med school

and seeing the amount of debt they are in, I can't breathe. I mean, we're talking half a million dollars in debt. And so seeing his situation where it's very much possible to cash flow this whole experience and be making 350 household income with no debt, it changes everything. Yep, absolutely. Absolutely. So here's the thing. Hang on, we're going to sign you up for Financial Peace University. You and your fiance go through

as our guest, and we'll figure out what we're doing then. So, sign up for Financial Peace University. Hang on, Austin will pick up and we'll get you doing that as an early wedding present, get you guys going in the right direction. It's incredible.

Well, I think we saved him from whole life and med school debt. Who knew it could happen all in one day? That's pretty cool. I think we actually got that one. That's incredible. I think I heard the light come on. Our work is done for the day. We've done our good deed.

I think we did our job for the day. And saving him from whole life might be the best. I mean, that just makes me happy. Goodness gracious. Those guys will pester you to no end. That's just so fun. There's a lot of fun going on in that call. This is the Ramsey Show.

Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.