The Ramsey Show - App - How Can I Save Up for a House? (Hour 1)

Episode Date: August 15, 2022

Dave Ramsey & George Kamel discuss: How to save more for a house, How someone can make tens of millions of dollars, How to think through moving for a girlfriend, Saving for kids college.   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

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. This is The Ramsey Show. We help people build wealth, do work that they really love, and create actual amazing relationships. It's a show about your life and your money.

We're glad you're here. George Campbell, Ramsey personality, host of Entree Leadership and the Fine Print Podcasts on the Ramsey Network, is my co-host today. Open phones here as we talk about your life and your money. The phone number is 888-825-5225. 888-825-5225. Mike is with us. Mike is in Irvine, California to start off this hour. Hey, Mike, how are you? Good morning, Dave. Good morning, George. Pleasure to speak with you both. It's an honor. You too. How can we help, sir?

So I just had a question. I've been on baby step four, five, and six for a few years now while trying to passively save up for a down payment. I'm 34 years old and I've already managed to save for retirement about $80,000 in my Roth 401k. However, since I live in Southern California with rising interest rates and a home appreciation, the market I feel is kind of outpacing the rate at which I can passively save for the down payment on the side while investing. So I'm thinking about stepping back to baby step 3B so that I can really turn on the fire so that I can meet this goal. Cool. What do you make? I make about $120,000 a year. Okay, cool. How much you got saved so far for your house? About $30,000. How long have you been working on it? After I got my emergency fund saved up, about one and a half years. Basically, without accounting for any windfalls, I can put about $20,000.

I guess that's if I stop saving or stop investing. I've got about $30,000. How long to build the $30,000 is what I was asking. Oh, five years. Oh wow. Forever. Yeah. When you said passive, you meant it. Okay. Yeah. In order to invest about 15% of my income, uh, I basically don't have a lot of income left over. So you're, you're, you're in a, as you said, a high price real estate market. So you are the situation where I said, a high-priced real estate market, so you are in the situation where I would just pull back into a 3B, temporarily stop your baby step four and just pile money up for your down payment, and then you could considerably increase

it. I mean, that would add $20,000, $25,000 a year to the program. Yeah, so basically, if I step back to 3B, I'd be able to save about $20,000 a year, meaning about five years, I'd have an additional $100,000 to put towards it. No, that's not true. You'd save a lot more than that because you're putting that much in at 15% of your income. $30,000 took five years. No, honey. 15% of $120,000 is more than $25,000.

And you're already putting money in. So your entire 15% is going to be, what, almost $20,000, okay, plus whatever you've been doing. So you should be putting in $30,000. Sure. Okay, cool. So are you investing 15% of your gross income currently? I have been, yes.

That's how I was able to save up to $80,000 in my Roth. Yeah, I mean, that would equal to $18,000 extra you have to pile on. I want that done way faster than five years. Do you have a goal for the down payment currently? My goal is about anywhere from $100,000 to $150,000. Okay. And then how much is the house going to be in your area? Probably around $5,000 Probably around five, six.

Condos have gone up in price over the last couple years, so they're kind of equaling for a two-bedroom condo about six and a half. Okay, because that still means you'd have about a half million mortgage. So I would still crunch the numbers and make sure that this is going to be around a quarter of your take-home pay on a 15-year fixed, and that will help dictate the down payment. Bottom line is, yeah, I would do what you're suggesting. Let's pull back to the 3B. So with that, I kind of had a follow-up question with stepping back to 3B and trying to figure out the best place to hold this cash in order to save it. I know I've watched previous videos of yours on the subject, and I know that you recommend

mutual funds or an S&P index fund with the goal of netting around 10% to 12%. That would not be for a three-year investment or a four-year investment. That's for long-term. Okay. Short of that, it's going to be a high-yield savings account, money market account, not going to be gaining a lot of interest. Correct. Now, the question I know what I'm about to ask might be a little taboo, but I think the goal of what I'm trying to ask is, my employer offers the 401k with a 25% match, and I discovered that I can take a hardship withdrawal, which will allow me to withdraw

that money for the purchase of a primary residence, where I would pay a 10% penalty on the early withdrawal and any taxes on the match or the gains. But if I deposited, let's just say $100,000 of my post-tax money, I could then withdraw that $100,000, take the 10% penalty, and I would still be at a net profit of a 15% match, regardless of the time. If I did it in three years, if I did it in five years, if I did it in 10 years, that would still, if I withdrew what I deposited, I would pay 10% on what I deposited and net a 15%. Number one, buying a house is not a hardship. So I don't think you qualify for a hardship withdrawal i i've talked to my my 401k provider the purchase of a primary residence does fall under hardship withdrawal wow what a provider okay um well the answer is still you're right it's taboo and the reason

it's taboo is when you start monkeying around with your future retirement plan in order to buy a house, you've stepped over the line into desperate. And anytime I get desperate, I generally get stupid. And I've done it a bunch of my life. I try not to get desperate for that reason because right after that stupid and right after my stupid is I've left less money. So you've calculated all this out to where you have a net, net, net positive effect. What you left out was the fact that you neutered your retirement plan while you were doing it. And you just, you just stripped it all away. And so, no, we're going to leave your retirement plan alone. And, uh, here's the other thing you have left out of your entire set of assumptions and increase in income in the next three to five years, which you should have, because you're one of the people that stayed in California. And so while roughly a million people left California and New York in the last 14 months. And so we don't know exactly what that's

going to do to real estate prices long term. I'm not predicting a California crash. But I am predicting a shortage of labor, particularly skilled labor at your level. Because guess who left California? It weren't broke people, baby. It was the people that were producing and didn't want to pay the taxes and didn't want to live in that woke environment where they've lost their minds. And so that's what you're left with. And so you've become a really good commodity, you and of yourself,

for staying there. It's a great place to work because there's a shortage of your type of labor. And so I think your income is going to go up dramatically. That's what I was thinking. The part of the equation we can control here is our income. And that might mean a side job for now. I don't know what that looks like, if it's worth switching careers. I mean, it seems like he's happy where he's at. But if you can make $150, that changes the numbers on this down payment situation. The other thing, Mike, is changes the numbers on this down payment situation. The other thing, Mike, is you have to be careful, and you're very good at analyzing these things. You have good critical thinking skills.

Everything you displayed in the conversation was actually logical. You did a good job of laying it out and presenting it, which is hard to do when you're on the radio. It's kind of nerve-wracking. So you did a real good job, but that tells me you're a detail guy, and be careful to not get so far down in the details that you miss common sense and in the analytics that you miss common sense. You need to do both, and you've done a good job with it. I'm complimenting you on that, but common sense says don't use your retirement for your house purchase. This is the Ramsey Show. open phones this hour george camel ramsey personality is my co-host today the phone number here is 888-825- 5225.

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They're available right now at RamseySolutions.com. So get your event passes today. Our question of the day comes from Blinds.com. Satisfaction guaranteed. They have a 100% satisfaction guarantee. That means even if you mismeasure, you pick the wrong color, you screw up. It's a you screwed up guarantee. They'll remake your blinds for free.

Free samples, free shipping. The new promos they run every month. You'll save even more. Always check these guys out. They are absolutely amazing. Blinds.com. Today's question comes They are absolutely amazing. Blinds.com. Today's question comes from Rashad in Washington, D.C. I was wondering if there is a baby step eight that could help listeners reach a level of wealth in the tens of millions and leave a legacy that can benefit our children and grandchildren

and promote amazing generosity. Well, good news for a shot. It exists, and it's the baby step right before it. Baby step seven, build wealth and give. And that can look different for a lot of people. Some people, that could be a million. For you, I hope it's tens of millions, and I hope you leave a legacy and you give outrageously generous and you leave an inheritance to your children's children, as Proverbs says. So absolutely, Dave, this can be done. And it's some of the most inspiring parts of this whole plan. Well, here's what happens. The first five to 10 million of net worth that someone gets, which by the way, if you have a $10 million net worth and it's producing 10%, that's a million dollars a year income. Okay. You can

change your family tree and be outrageously generous and impact your entire community with a million dollars a year. Okay. So you can get there for sure. All right. The, uh, but, but, you know, investing in your 401k, your home, maybe a couple of rental properties. Uh, that's what the typical person does in our studies of actual millionaires in that first five to ten million to go from 10 million to say 100 million which you would start to look then at billionaires as an example which would be you know 10 times 100 million or what is it 1,000 million is a billion is that right yes that's a lot of difference okay so all of your forbes 400 for instance are billionaires none of them became billionaires with their 401k

or paying off their home none of them okay they didn't become billionaires doing that uh they in in virtually every case owned or operated or took public a large company in virtually every case. Oprah, Walmart family, Chick-fil-A family. You know, you go down the list and Dell, Gates, of course, Warren Buffett. But in every case, they had an idea. And I know a guy who's worth several billion, and he makes parts for cell phones. But they grew the company huge-o and took it public or didn't and made the cash flow off of it. Or sold the company.

So generally to go from the $10-15 million up into the stratosphere so to speak you truly are a one percenter then okay um and i mean you're a tenth of a percenter then but it's generally you take some of the money that you have made and some of it somehow grows exponentially uh and so you know in our case uh my net worth is considerably more than 10 million and so, you know, in our case, uh, my net worth is considerably more than 10 million. And so, uh, I mean, the building we're sitting in is, uh, you know, the building complex here is worth a couple of hundred million and it's all paid for. So just to give you an idea. So that's, you know, but did we get there with our 401k?

No, no. I mean, I've sold 25 million books. I own a huge business that makes a lot of money and helps a lot of people. And so that's, that's what ends up happening to get into that stratosphere but the point is this the thing he's trying to do is create a generosity movement and if you'll start where you are with generosity today and every time you make more increase your generosity you're going to see your opportunities increase as well and your opportunities for i mean i remember the first time i made ten thousand dollars and my tithe check was a thousand dollars man i thought i was the most spiritual dude on the planet i just gave

a thousand dollars me and god i'm helping god out here to which god is laughing at my little thousand dollar gift right you thought you'd get an extra jewel on the ground he's like look at that grain of sand he thinks he's something and you know but i thought i mean i really was proud of myself i just gave a thousand dollars away man to the church i am a spiritual dude giving feels good but uh it does it does feel good but i was pretty arrogant about it's what i'm saying i'm being i'm being a little too authentic here but i really did i felt really i mean but the first time you do and that but the thing is get used to doing that thing get the rhythm of that the more money you make the more money you give the more money you make the more money you give and constantly be doing that

and you will find yourself starting to impact entire sectors around you and change your family tree but 10 million dollars change your family tree oh yeah you don't have to have 100 what i'm hearing is don't wait until you go well when i have this much money then i'll start giving oh yeah today with what you got and you can ramp it up over time because it's a muscle you need to build in a rhythm because my point is the first time i gave a hundred dollars i thought it was a lot then the first time i gave a thousand dollars and then we had uh what year before last we gave a million in one day oh that's right remember that that was fun around christmas time yeah it was a blast we had so much fun doing that so that was trippy you know and then i thought i

kind of thought i kind of had the same thing. I'm like, I just gave away a million dollars, but it wasn't even my money. It was God's money. So then I had to get over myself. So that kind of stuff. But it's a process. But the muscle built gradually over time. I didn't go from I don't give anything to a million in one day.

And so you build it over time. That's a beautiful question. What a beautiful spirit. I know. I love that. I love the heart behind it. Excellent stuff. Thanks.

Excellent stuff. Jerry's in New York. Hey hey jerry welcome to the ramsey show hey dude how y'all doing today better than we deserve sir how can we help yeah so uh i'm curious what your opinions are on moving and taking a pay cut for a partner so uh little context my girlfriend of about a year and a half just finished her master's program in education. And now she wants to teach English in Europe for a while before officially starting her career in the States. And she wants me to join her and my job will let me go. They'll help with visas and everything, but the pay is location based. so i'd be dropping from about 125k in new york to about 75k in york you love this girl i do how long you been dating you know i'm like 50k about a year and a half a year and a half this is a serious dead gun relationship 50 000 bucks yeah and uh so i'm

also about like two years into my mortgage on my apartment here, and I wasn't really planning on leaving until I met her. So like now I'm like ready to lay roots in New York kind of, but she's done with it because it's way too expensive for teachers in New York. And she's not sure if she wants to live in New York when she comes back to the States. So it kind of feels like this decision, this ultimatum, do I sacrifice like my life, this ultimatum, do I sacrifice my life, my income, and everything?

I don't like the word ultimatum where there's $50,000 worth of love involved. Is that how it was presented to you? Either you move or this is over? She definitely is done with the city and ready for another place to live and we do

like traveling together. This might be the red flag she is into you say that one more time i said you're more into her than she is into you i i don't think i'm making this she's gone she's gonna ditch new york and you with it you're gonna ditch new york to follow her i don't know man i'm just an old man i ain't dated in years i don't know how to tell you what to do with this um you're going to ditch New York to follow her? I don't know, man. I'm just an old man. I haven't dated in years. I don't know how to tell you what to do with this. You've got to decide how much this is going to work. If you were my little brother or my nephew or something, I would tell you don't go unless

you're married. Agreed. And I would say tread with caution. Then it's worth it. Because now this is a bet for life. It's not a bet for a weekend fling in Europe. What if she meets a nice European man on a Vespa? We don't know what's going to happen here.

Hope you can match up to that. Whoa. George Campbell Ramsey personality is my co-host today. Bill is on the line. Bill is in Oregon. Hey, Bill, welcome to the Ramsey Show. Thank you. It's good to be here. Good to have you, sir. I see on my screen you're debt-free. Congratulations. How much did you pay off?

$189,000. All right. How long did this take you? About 10 years altogether. Okay. And your range of income then during that 10 years? I went from $60,000 and then Social Security kicked in along with some raises and I was up to $112,000. Now I'm up to $112,000. Social Security kicked in.

How old are you? I'm 70. Ah, cool. Okay. What kind of debt was the $189,000. Now I'm up to 112,000. Social Security kicked in. How old are you? I'm 70. Cool. Okay. What kind of debt was the 189? House and car mostly with some miscellaneous things thrown in there. Okay. So at 60 years old or so, something rings the bell, and you

go, I've got to get this mess cleaned up. Tell me your Ramsey story. How did you get to connect to the Ramsey way? Well, about 12 years ago, I listened to Financial Peace University, and it made a lot of sense. And so I went about, and there were a lot of financial issues at the time, a divorce, and I lost half my retirement. And I had three kids to raise on my own. So there were a lot of financial issues at the time. And it just made sense to

get out of as much debt as I possibly could. I think the biggest mistake that I made, other than taking out my retirement to help raise the kids, the biggest mistake I made was not developing and maintaining an emergency fund. So the divorce happened a lot longer than 12 years ago. Yeah, I think it happened, I think it's about 17 years ago. Okay, all right. And so you were in your 50s at that point. Right.

And the kids were how old? 14, 12, and 10. Wow, okay, cool. Yeah. So they're all grown now. They're all grown and hopefully off the payroll now, right? They're grown. They're all grown and hopefully off the payroll now, right? Hey, they're grown. They're wonderful human beings, all college graduates, all self-sufficient, and all follow your principles as well. Wow, you did a good job. Well done, Bill.

Thank you. Bill, I'm curious, because for a lot of people, they feel like it's too late for them, and I love your story, because here you are at 70, totally debt-free, housing everything. What do you say to that person who might be in their 50s and their 60s going, well, I've made too many money mistakes. I got too much baggage. I can't clean this up now. I don't think it's ever too late to clean it up. I think that when I decided to kick in folk gear and say, I've got to have that emergency fund. That's that's critical that that I would say to those people, it's never too late. Just start following the steps. And, you know, even the baby step one of of a thousand dollars in in your emergency fund. You know, it's a huge step. And you feel good about it.

And you start feeling good about your finances instead of it always being a negative point. Yeah, there's something about that confidence and that sense of I did something, I'm in control for the first time that moves the needle on everything else, doesn't it? Right, right. And my budget in the past was essentially my paycheck. Spend it until it's gone. Stick it with it. It's gone, there's more money.

Okay, so you're 70 years old, $189,000 paid off. You're 100% debt-free, house and everything. Right. How does that feel? It feels wonderful. It feels fantastic. I paid it off in June, and I'm still on a little bit of a high. I love it.

So, Bill, did you have a vision for what I want retirement to look like? And obviously, you're still working, and you're still healthy, which is awesome. But did you have that vision in your mind of, here's why I'm doing this? I want to retire with dignity? I think that that was part of it. I also had my significant other came into my life and she essentially said,

you're going to this seminar and you need to get something straightened up or I'm hitting the road. Another old item. That was an extra impetus.

What seminar was it? Financial Peace University. Oh, that's awesome. So she got you on board. Right, right. And where I had both feet in and stood just one. Behind every great man is a woman forcing them to go to Financial Peace University. There you go.

There it is. Exactly. I love it. Way to go, Bill. We're proud of you, man. Thank you. What do you tell people the key to getting out of debt is? I think it's following the Financial following those principles because they really work. And you start realizing, hey, I don't owe on my car anymore. Oh, wow, I don't owe on this loan anymore. Oh, wow, I've paid this off.

That's great. I think one of the biggest joys is as soon as I got a substantial fund. A raise? No. An emergency fund? Sorry, thank you, David. As soon as I got a substantial emergency fund going, a hot water heater and a dishwasher went out. Of course.

And I went down and bought them in cash, and, you know, I felt good about it. It was like, oh, yeah, I could do this. Turns an emergency into an inconvenience. Well, well done, sir. I was pretty good about it. It was like, oh, yeah, I could do this. That's not... Turns an emergency into an inconvenience. Well, well done, sir. That's pretty good about it. So, anyway. Well done. We got a copy of Baby Steps Millionaires for you. How ordinary people built extraordinary wealth. How you can, too. I'm proud of you.

You went and did it, man. You left the cave, killed something, and drug it home. We're going to send you a one-year membership to Financial Peace University. You've been through it. You know what it does. Maybe you know somebody that needs to go through it. can give it to them and also the same thing with the book the total money makeover i'm going to send you one of those as well so way to go bell in oregon 189 000 paid off in 10 years making 60 to 112 count it down let's hear a debt-free scream one two oh i got to take away from hold on one two three i am debt free that's how that's done don't tell me it's too late never too late don't tell me it's too late

i'll just show you bill if you can fog a mirror, it's not too late. That's it. Well done, sir. Very well done. Excellent, excellent job. All right, Laurel is with us. Laurel is in Chicago. Hey, Laurel, welcome to the Ramsey Show. Hey, Dave, thank you so much for taking my call.

I'm a first-man caller, and actually I'm brand new to all of this Ramsey stuff. Cool. Sorry to call it stuff. We are having our first baby September 4th, and I got a little bit triggered and realized we really need to get serious about our finances. I have never felt like we're behind, but I definitely don't feel like we're ahead. So my question is, for someone in our position where we are embarking on a huge life shift and simultaneously wanting to change how we manage our money,

what's the quickest way to save with the arrival of the baby and boost our income? Nothing like a baby to give you a wake up call. Oh my gosh. Yes. This got real. This just got real. Are you saying like 20 days from now?

Oh my gosh. You know. Yeah. You're a baby any minute. It's like 20 days from now. Oh yeah. You guys, seriously.

It's so scary. How much do you have saved currently okay so we have 3,500 in cash we have 12 grand in the savings account um and then we have about like 40,000 in investments and precious metals cool all right how much in precious metals um 18 18,000. Okay. All right. Do you really want to know what I would do today? I really do. Okay. I don't know if you're going to do it. I'd cash out the precious metals today.

I'd put the cash in a savings account. I would pay minimum payments on all your debt, and don't do anything fancy, and see how big a pile of cash you can have between now and September 3rd, and then start working the baby steps. Okay. And I'm going to send you a one-year membership to Financial Peace University. You can start after you get home with baby. You and your husband can go through that. You're about to change this kid's family tree because you're a good mom.

I'm proud of you. This is The Ramsey Show. We'll be right back. George Campbell Ramsey personality is my co-host today. Thank you for joining us. Open phones at 888-825-5225. Rich is with us in Chicago. Hi, Rich. Welcome to the Ramsey Show. Hi, George and Dave.

Thanks for having me on. I have a quick question about allocating funds into a 529 plan. My wife and I are just coming up here at the end of baby step three and looking into four, five, and six. We're a little older. My children are sophomore in high school, freshman in high school, and then sixth grade. And curious as to how to best invest in our 529 plans going forward. They do have a current investment balance, but I'm just curious, should I invest all my money now into the older? What's the current balance?

Around $125,000 total among all three. Okay, so they got like 40 grand each. All right. And, um, what's your household income? Uh, around two 20. That's good news. Okay, cool. All right.

So I'm looking to invest about 2,500 a month and I'm not sure if it should all go into one account, if I should split it among the three or what's the best way to think about this doesn't matter much um because the 529 can be transferred to a sibling anyway so if you don't use it yeah so if you don't use it like you dump it all in the oldest one and you don't use it, you can roll it down to the next one and so on if you wanted to. So here's the thing. $30,000, you're not going to have enough in these accounts to pay for the kids' colleges.

You're going to be cash-flowing some of it. Understood. With $30,000 a year for six years. Right. I mean, we know that that's going to be part of it but at the same time we don't want to have to sacrifice our retirement no i didn't want you to i want you to put 15 of your income into retirement and so here's my point okay we've got to have other things in this equation other than just saving for 529 to get your kids through college number one uh college choice is the most important part of the equation on whether you can afford to go to college or not because you can send them to an in-state school for ten to twelve thousand

dollars average annual tuition across america or you can send them to a private average annual for 25 000 you can't afford 25 000 times three you for $25,000. You can't afford $25,000 times three. You're not going to have that much money. Your kids aren't going to private schools. Unless there's scholarships or something. Aha, there we go. See, now we're thinking, I got you. Okay, you're moving.

Or unless they get really great jobs, but more than anything, it's scholarships. Okay, and so they need to start working on scholarships, and now the sixth grader does. And not actually ordering them, but thinking about them, because here's what Christina Ellis would tell you. She's going to tell you that, you know, the sophomore is pretty late in the game, but the rest of them, grades matter. And now grades equal money is what this amounts to.

So, you know, you getting a good grade is just not making daddy proud. This is about whether you have money to go to school. So you need to get your little butt in the books. Let's go. Game on, buddy. Game on. Here we go. Number one.

Number two, plan on working. Number three, plan on going to a school that is affordable. And start indoctrinating the kiddos right now with all of those three things. Scholarship, school choice work and then you do all you can which is 30,000 bucks a year right now and and you can do 30,000 bucks cash flow and cash flow estate school on the last kid uh you know that'll get them into the that'll run the last one through uh just without having saved anything. And so I don't care which of the 529s you're dumping in with that in mind. Have you had a conversation with any of the kids, Rich,

especially the older ones, about what college looks like? Yeah, you know, going through the process, I'm actually an FPU coordinator right now, so we make them watch the videos the week before I teach the class with us. And we've watched the documentary on Borrowed Future. Oh, you did. I was going to send your link to it. They're very well versed on everything. Well, that should startle them enough to have the right conversations and go, debt, how are we going to pay for this? We got to have a plan. I want to go to school debt free. And that is the number one factor because when debt is off the table,

they're going to get creative and you're going to go, here's what I can do. Here's what you need to do. Yeah. You're way ahead of the game with all that, because what I was afraid of when I was talking to you until you told me all that, or told George all that, was you're making really good money, so you're running around with people, and your kids are running around with people whose kids are going to very expensive schools. Correct. Yeah, and so... Well, my daughter's going to northwestern well you're my kid and

sorry and so uh i mean that's what our kid that's what our kids heard you're going to a state school oh my you're never going to be successful and all three of my kids make more than that snotty person who said that so um but you know that's the thing you know that that's the thing you run into because the group you run around with affects this bad. I mean, if you come out of a blue collar working neighborhood, just getting into college is awesome. That's where I came from. Right. And I did the fact that I got in was surprising everybody, you know, much less could pay for it.

And so it was because it wasn't norm. But the norm is the haughty toddy, you know, your environment, your parenting. It shapes a lot of that when you rich you're doing a great job when your kids hate all that they go i want to get as far away from mom and dad as possible so i'm going to go all the way across the country to a private listen what he did he got him to watch the class on in financial peace on here's how the college dollars work then he watched the documentary borrowed future he's an fpu coordinator so he's talking to him about the how what wise education choices look like and he's planning a 529 this guy's a genius he's done it all you're the total

package rich and you're rich so you got it made you're rich why do you even need this you're rich he's they're gonna be you are the personification well done man very well done i love it yeah so yeah i would throw it let me, just to answer your question specifically, given now that we know you did everything right already. Where would I put that? I would put it in the, I would put it all in the youngest, and I would cash flow the oldest. Because the youngest is going to grow more.

It's going to have more, he's got more time to grow the money, and the growth is tax-free in the Roth, and you don't have that benefit from a sophomore. The amount that mutual fund is going to grow in two years is not squat. It's negligible. I mean, you put $30,000 in there, it's going to grow $6,000 or something. It's not going to be in two or three years. So you're not going to get enough growth that the fact that it's in a 529 growing tax-free matters mathematically. So I'm going to probably throw the majority of it towards the youngest kid. Actually, I'm probably going to put a little in all of them. I'm probably going to go like 25,500 or something.

20,000 in the little one, 5,500 in the other two older ones. But everybody gets the indoctrination. Where you go to school, there is no single piece of research that correlates credibly where you go to school with whether or not you're successful. Not a single piece of research. None. As a matter of fact, Wall Street Journal did a survey, detailed in-depth survey. 78% of the top 500 companies traded on the stock markets, CEOs went to state schools. Eight out of ten. Just take that, Harvard and Princeton.

Now, figure it out, MIT. Okay? They're famous schools, but they do not produce results commensurate with their expense. Now, if you can go to Vanderbilt or Harvard or MIT or... We're not mad at those schools. I'm not. Yale, whoever. can go to Vanderbilt or Harvard or MIT, or Yale, or if you want to go there and you can go there with scholarships, free ride, and you want to go there, sure,

I'm not mad at you. I mean, presidents went to Harvard. It's cool. Go. That's fine. President really wasn't on my future plans, nor is it still. But here's the thing, and I wasn't planning on being an attorney either. So Harvard Law, right? So none of that. But I know lots of attorneys that make a million dollars a year that did not go to a school that you've ever heard of. The point is success is not determined by that. Yeah.

Lots of people go to state schools, and they have great jobs, great careers, can get great experience. And very few people have asked me where i went to school dave it's a little upsetting did you not that i went to any impressive school where did you go to school it's complicated now now we can ask now we can ask the question university of mobile dave you did that's right i finished school there i went down there with jeremy breland's dad that's right but you weren't you weren't a singer no no i stayed out of that i wanted a real job job after school, Dave. So I got a communications degree, like Rachel.

There you go. So I'm up there with the greats. Hey. It worked out. I'm communicating. And you were just on Fox a minute ago. That's right, right before we went on air. There we go.

Take that. Using my communications degree. There you go. You used it. You're using your degree, George. Right now. That's just strange. Look at that.

And I never asked you where you were from. And no one knows that school. It ended up just fine. I knew it. I knew it. It's famous today. I didn't know it I never asked you where you went to school. And no one knows that school. It ended up just fine. I knew it. It's famous today. I knew it for the singers. This is The Ramsey Show. Do you love a good day, Brandt?

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