The Ramsey Show - App - How Quickly Should I Pay Off My Mortgage? (Hour 2)

Episode Date: May 27, 2021

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, 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. I'm Dave Ramsey, Ken Coleman, Ramsey Personality. Host of the Ken Coleman Show is my co-host today. Open phones at 888-825-5225.

That's 888-825-5225. Ken talks about careers and jobs. I talk about money, and together we will just talk about you right in front of you. The phone number 888-825-5225. Kurt is in Fort Lauderdale, Florida. Hi, Kurt. How are you? Hey, Dave.

How are you doing? Better than I deserve, man. What's up? How are you doing? I'm 25. I'm not filled with my job, and I'd like to move out of my parents' house, potentially looking up north. But I have about $50,000 in investments and $90,000 in my savings,

and I'm blessed to have no debt. Should I move with the current housing market situation, or should I wait? And if I should wait, should I move some of that savings money into investment, make some money while I'm waiting? Well, the housing market, as you mentioned, is white hot in terms of buying a home. Some areas, the rental market is also closed up, and it's very difficult to find a rental. And so rental prices are going up as fast as real estate prices are, which there should be a correlation between the two. That makes sense.

So you have done a wonderful job saving money, sir. Well done. You save all this money, or did somebody give it to you? I'd say about half, maybe a little less than half, is an inheritance from my uncle. The rest is all just me saving. My father and my mother, since I was young, have always told me, you know, spend half, save half. And I just was never really a big spender. So I saved more than half at that point. And so I've just

been saving for, I've been working since I was 16. So I've been saving for a while now and I'm just, I've always been looking forward to buying a house. And I just was feeling that was the right time. But with this housing market, I'm just, it's kind of shot down my house. You said you might move up north. What are you going to do for a living when you move? Well, I'd stay within the same industry, but right now I'd probably go more into analytics. That's what I like to do. Right now I do more risk management.

So, Kurt. I'm looking to get into more analytical. So, I'm glad we've identified this because moving up north, I think you had in mind there's some companies or a company or a specific job, and I think that's the part

we want to work on first is you're not happy in your job. And so, you know, the good news is you're clear. You know what you want to do. You have a good idea of the analytics of where you want to go. I think I determined that.

Where's a good place to land there? then i'd make my housing decision based on that okay so do you have a good idea of some companies or do you have something when you say move north are you just thinking an area or are you thinking company that's pulling you north um i was thinking more just orlando or jacksonville because i have a current social networks there um that would you know and finding a job there's obviously a lot of within my industry there's a lot in Orlando and Jacksonville I was looking there just to kind of get away from where I was where I've currently been where I've lived all my life you know sure well that's really good strategy so Kurt I think you now you need to take some action steps and so I would begin if you

haven't already you obviously have the social networks there. I would actually begin to engage those social networks around those companies. You identified both friends, connections, and several companies that are in your industry, or at least you know that it's pretty hot there. I'd start making those connections. I'm going to give you a copy of my number one bestselling book, The Proximity Principle, which actually walks you through step-by-step how to make those connections, who specifically you're looking at. Because I think if you get really serious about that, Kurt, right now you're in great shape financially. Let's find those opportunities. Let's go ahead and get interviews. Let's land the gig. And I

think the housing decision will take care of itself because you've been really smart with your money. But let's land a job and then let's make a housing decision as a part of that yeah here's what i i will just add to that let's take the i'll take the back end of that strategy so start working the social networks you're only a few hours from those towns um get the job landed then go rent an apartment for six months then during that six months start looking for property don't overpay you there's no reason for you to have house fever you can take your time and if the market's white hot and you have to dramatically overpay to get a house then that's god saying don't buy a house right now just wait take your time sit in that apartment in the new job in the new city and take your time

you've got the money you can pounce when you see the right thing. You're in a position to do it, but don't get the fever and pounce, especially on your very first home purchase and overpay after you've done such a great job saving money. So very, very well done, sir. Good job. Anita is with us in Dayton, Ohio. Hi, Anita.

How are you? I'm fine, thank you, and thank you for taking my call. Sure. What's up? I am getting ready to retire, and I have about, I'm going to take a plop of $84,000. And I wasn't sure where to put that money. Okay. So I was... Is that your only nest egg?

No. No, I was... Is that your only nest egg? No. No, I have... My husband and I have a couple hundred thousand in annuities, and I have a $50,000 emergency fund, and then we have about right at two-something and just invested. Okay. All right. Well, I'm definitely, the $84,000 is coming from a lump sum from a pension plan rollover or what? Yes.

Yes. Okay. I would roll it to a traditional IRA. That way there's no taxes on it. And I personally would put it in good mutual funds. So, again, just invest it. You've been doing investing. And I would just continue that with this particular money.

If you pull it out, you're going to be taxed on it. And if you're under 59, which it sounds like you're retiring, so I doubt it, but if you're under 59, you'll be penalized as well. So no need to do any of that. Let's just roll it and let the whole amount work for you in a traditional IRA in some good growth stock mutual funds that's the best way to go open phones here at 888-825-5225 you know we're talking about that peak real estate man real estate season is here if you're thinking about buying a home this year here's a piece of simple advice that could save you from making a six-figure mistake don't buy something you don't understand

if you don't know where to start and you're unsure financially you don't know if you're ready for a mortgage you're confused about how the buying process works start by connecting with one of our endorsed local providers these are high octaneotein real estate agents that we have vetted that we trust. Our ELPs will help guide you through the entire home buying or home selling process. They're here to teach you every step of the way so that you feel confident in this big money decision. Go to RamseySolutions.com slash agent and connect with one of our trusted ELPs. That's RamseySolutions.com slash agent. Thank you. Registration is now open to attend our largest leadership event of the year, Entree Leadership Summit. year entree leadership summit we will be at the hyatt regency orlando in beautiful orlando florida may 22nd through the 25th 2022 we always bring together the best leaders for this event and

next year is no exception i'll be there speaking as well as our very own ken coleman christy right and dr john deloney we've also got legendary comedian and former host of the top-rated Tonight Show, Jay Leno. Best-selling author, Patrick Lencioni. Founder of IT Cosmetics, Jamie Kern Lima. American restaurateur, Will Gadara. Classic concert pianist and powerhouse speaker, Jade Simons. Best-selling author, Henry Cloud and more. These are leaders and speakers who have made their own rules in business and are going to inspire you to do the same.

To learn more about the event and get your seats, text the word SUMMIT2022 to 44222. Ken Coleman Ramsey personality is my co-host today. Sarah is in Milwaukee. Hi, Sarah. Welcome to the Ramsey Show. Hi, thank you for having me. Sure, what's up? So, my husband and I have a disagreement about our mortgage. So we qualified for a 30-year mortgage, but our plan is to pay it off like a 15.

My husband in the budget recommended to me in our last finance meeting together that whatever extra money we have in our budget, we should put towards the principal of our mortgage. And I'm like, well, honey, we only plan on being in this house for five, maybe 10 years because we want more kids and we need more space. And he's like, no, no, no. We really need to pay towards the principal. We need to own more of our house. And it's caused this huge rift in our relationship.

Why is it causing a huge rift in your relationship? What, do we pay extra on the mortgage? What do you want to do with the money? I would like to put it towards trips or improving the house that we already have. Okay. That's a fair argument then. Okay. So the answer is you need to do some of both.

You're both right. Okay. I wasn't expecting that answer. You're out of debt, right, except your house. Oh, yeah. Okay. And you have your emergency fund. Are you putting 15% of your income into retirement? We're about there, yeah. Okay. And you have your emergency fund. Are you putting 15% of your income into retirement?

We're about there, yes. Okay. Are you putting anything aside for your kids? Are you putting anything aside for the kids' college? Yes, we are. Good. Okay. That's baby steps four, five, and six. Baby step six is pay off your house early. Now, what you're supposed to do is to do baby according to what we teach,'re supposed to do is to do baby according to what we teach in other words is uh is to do baby steps four five and six simultaneously so you're putting 15 of your income away for retirement you're putting money on your kids college and you're supposed to be paying down the house um you know reasonably aggressive now baby steps one through three

you do with gazelle intensity, like a gazelle running from a cheetah, wide open, scared to death, going crazy. Baby steps four, five, and six are not with intensity. They are with intentionality. And baby steps four, five, and six are where you buy a couch, where you fix up the house, where you go on a trip, and where you work on these other three goals of retirement, kids, college, and reducing the mortgage. And so, yeah, I'd love for you, I think it's wise for you to reduce your mortgage, but

I also think it's wise for you to enjoy some money during these steps as well, and that would include some reasonable renovations that you do with cash, no debt, some reasonable trips that you do with cash, no debt. Some reasonable trips that you do with cash and no debt. If you consume all the money and do no mortgage reduction, that would be unwise. But if you put 100% on mortgage reduction, that's not what we teach. Okay. So I would just figure out some... How much money are we talking about that's in play here?

A month. How much a month is he wanting to's in play here? A month. How much a month is he wanting to put on the mortgage and you're wanting to spend? I think it's about $500 to $1,000 we have extra in our budget. Okay. Well, to start with, the fact that you don't know that is a problem. You need to know that. You need to know what's going on. And $500 to $1,000, it's one or the other.

Or it's $642. Or I don't know. I mean, you have a budget and you have an amount left over that we're arguing about, and we don't even know how much that is. So right now we're just having a vague argument. So the two of you need to sit down and say, okay, exactly. Because he's the nerd, and you don't nerd out on details, but you need to know enough of the details to know what you're arguing about. Right?

Right. I agree. Okay. So you jump in there. You get figured out, and if it's $750 and you say, all right, we're going to put $350 on the mortgage and we're going to set $400 aside for fun, and that fun this month is I'm going to start, we're going to start saving up to fix up this bathroom and i want to spend four thousand dollars on it so it's going to take 10 months of doing that you know or whatever the thing is i don't care what you do but um

if it's a thousand dollars you want to split it 50 50 i don't care you know if you split down the middle or what you do but the point is is that you have a valid a a very valid complaint here, a very valid argument that you should not only do the proper smart things with money and never enjoy money. That is not what we, you're not going to get there doing that. You need to enjoy some of it. But on the other hand, he's got a valid point that we need to put some on the mortgage and we don't need to just consume all of our excess. And so some of both is where wisdom lands, and that's where i would send you to good questions a really good discussion

and i think people get a lot of confusion around that uh because we teach you to do live on rice and beans don't see the inside of a restaurant don't go on vacation when you're in baby steps one through three yeah i love the way you worded that. The intensity in Baby Steps 1 through 3 turns into intentionality, which is we've got a budget, but we can sit down and go, hey, we need to get a whole new living room set because the dogs have ruined it. So we're going to save up for that. And so that intentionality is still the budget. It sounded like that might have really happened.

It did. You nailed that. We had to do that recently because the doodles, big dogs come with big dog problems. But anyway, the point is that I really like that differentiation there that you have laid out. That's really the tone. You go from intensity to, okay, now we can be intentional and still enjoy life. Oh, and I'll just add one more thing to it. It doesn't have to be all or nothing in a month. I mean, it doesn't have to be split down the middle of the month. You could say

this month, we're going to spend it all. Oh, right. Towards the next month, we're going to put it all on the mortgage. That's exactly right. You know, you can go back and forth a little bit. Or we're going to, for two months, we're going to set it all to buy this furniture. And then for the next two months, we're going to do the mortgage. I don't care how you do it, but some of each needs to occur. Yeah, I really like that. That's a really great breakdown of how you do that, and it allows people to breathe. But, you know, there's something about the human spirit, Dave.

When they get all intense, it's hard to turn that down a little bit. Especially those nerds. Yeah, right. Like me. Right. Yeah, I mean, we're so task-oriented, and man, that's what her husband's doing. Jennifer's in Sacramento. Hi, Jennifer.

How are you? Hi, I'm doing good. How you better than i deserve what's up well i am um trying to figure out what i should do with my extra funds that i um have i currently have a psp account it's about 156 000 and um i have uh some of the half of the funds uh in g fund 84 000 yeah i know but the other half the csnc fund it's about 72 000 and i currently compute about 20 of my uh checks uh into my tsp but i'm thinking i need to make some sort of change because i'm putting i'm also putting out five hundred dollars a month savings just to a regular checking account and i want to maximize my retirement you're you're a rock star man you're getting after it kiddo what do you make i make about seventy nine,000 a year. Good for you. Do you own a home? Well, my husband, he just paid off his house like two years ago.

I'm sorry. Do you live with your husband? Yes, I do. I say his house because he bought it before we were married. Oh, but now it's your house. Okay. Yeah, okay. So we just paid off our house. So your debt-free house and everything, your family is, correct?

Yes, correct. Neither one of you, you or your husband, have any debt then? Well, I just wrote a check. I'm planning to pay off my Lexus. I owe about $14,000, but I'm going i'm gonna go ahead and check off today good and i do have a ten thousand dollar extra um that i'm saving for my daughter but i think i also need to move that to somewhere else as well okay well how old is your daughter what are you saving for college um i guess for her future whatever needs, like a vehicle or college.

I'm just worried about college putting into a 529 plan or a college saving plan. What if she doesn't go to school? Why wouldn't she go to school? I don't know. I'm just worried. Put it in a 529. Keep the government's hands off of it. Get with a smart investor pro at DaveRamsey.com.

They'll help you do that. As far as your TSP goes, I recommend 80% into the C, 20% into the S, and 20% into the I. The S is the small company, the I is the international, the C is the common stock. That little portfolio mix right there

will outperform any other mix in the TSP. You could put it all in the C, but I want a little of the sauce in there, the small and the international as well. Ken Coleman, Ramsey Personality, is my co-host today on the debt-free stage in the Ramsey Solutions Lobby. Sam and Jasmine are with us. Hey, guys, how are you? Good. How are you?

Welcome. Where do you guys live? San Antonio, Texas. Oh, fun. Welcome to Nashville. Good to have you guys. So here to do a debt-free scream, how much did you pay off? Paid off $135,000.

Woo! How long did this take? 21 months. Wow! Whoa. And your range of income during that time? We started at $123,000 to $204,000 just within the last few months, though. That's kind of ridiculous.

I love it. So what do you all do for a living? I work in the IT industry for the U.S. government. Okay. And I work in management for a shipping and delivery company. So who got the mammoth raise? Both of you? A little bit of both of us.

Yeah. Big Sam. Big Sam. IT stepped up here with Big Sam. Way to go, Sam. Thank you. Man, that's cool, y'all. So what kind of debt was this $135,000?

It was a little bit of medical, two vehicles, and my student loans. What was the big chunk? My student loans. And what did you owe on the student loans? About $70,000. Okay, so about half of it was that. Oh, yeah. Okay, cool, cool.

How long have you guys been married? One year tomorrow. One year? Oh, congratulations. So you started on this before. Yes. And finished after you were married. Yes.

Okay, so tell us the story. How did this all go down? So, yes, I did start it myself. We had heard of very good money principles through our pastor at church. We just never really applied it to our lives. And over time, we saw that he would offer Financial Peace University. Once again, we didn't apply it. And months later, a coworker actually gave me your book. Once again, I didn't read it,

didn't apply it. It wasn't until we got engaged that I started watching your YouTube videos. And that's when it finally clicked that I really wanted to follow these principles. And that meant that I would have to, or we would have to combine our income and that I would actually have to reveal my debt to him. Oh, so you were already engaged before he found out how much debt you had? Actually, no, it was right before. It was before. OK, that's good. Once I saw once I had it in me to tell him and I saw that he didn't have a negative reaction to it like I thought he would,

that's when I knew that we were in this together. Okay. So you had $70,000 in student loan debt. You had a car loan, and Sam had a car loan. Yes. Okay. And Sam, what other debt did you have? That was it.

Just the car? That was just my car, yes. And how much did you owe on your car? At the time, $20,000. Okay. So this beautiful woman is looking at you saying, with all this beauty comes $100,000 plus in debt. Yep.

Yep. And I was, you know. What'd you do? Before I asked the question. You went, oh, my God. No, you know, I said there was a lot of prayers to God. So, I mean, a lot of it was faith-driven, and I knew what I was getting into before I popped the question.

He was in love. Yeah, he was. Well, listen, anybody that can see, you out-punted your coverage. You're not that smart. It was worth every dime. So I got a question, Sam. Had you heard of Financial Peace? We know she had.

I'm assuming you're in the same church, or am I assuming wrong? Yes, I got a question, Sam. Had you heard of Financial Peace? We know she had. I'm assuming you're in the same church, or am I assuming wrong? Okay. Yes, I had throughout going to church. And then when we met, we got together. We started going to church together. And for me, it was just kind of a, oh, I never really had a solid plan, but I was never really in debt aside from just the car. So I had savings, but I never threw my savings to pay off my car. And so it was kind of a different...

Yeah. Sure. It's just different. Different situation, yeah. For sure. Which church? Revolution Church. Oh, yeah.

In Church, Texas. Fun. Very cool. Well, way to go, you guys. Y'all are impressive. Impressive young couple. Thank you. Very well done. Who were your biggest cheerleaders outside the two of you going, yes, you guys. Y'all are impressive. Impressive young couple. Thank you. Very well done.

Who were your biggest cheerleaders outside the two of you going, yes, you can do this? You know, we didn't really publicize it. We feel like we just kind of had our heads down. None of your family knew you were working on this? We kind of would mention it if it would come up in conversation. But they were supportive. But nobody's just like, yes, yes, yes. Right. Oh, wow. Very cool cool so you guys just struck out how old are you two i am 36 and uh before

her um it's her birthday today happy birthday all right yeah she's 28 all right very good birthday the day before the anniversary. Yeah. I know. Very nice. Well, he won't forget that one. I was getting ready to say that. It'll be helpful.

It'll be helpful in your incoming years. They'll be glad for this. And now you know how to budget because that's the double hit right there. You know, you've got to plan for that. Oh, yeah. It's a big month. Yeah. I've got to ask him, Dave.

I mean, that's a lot of money. $135,000 in 21 months. What was the biggest sacrifice? What was the big, like, the hard stuff? To be honest, there was no hard part for us. It just wasn't having a plan. And so when we discovered the baby steps or baby steps and followed through and implemented with that plan we had the discipline we had the attitude and the willpower um everything just clicked and fell into

place wow so and like i said when i started i didn't really have a plan i had savings but only had a car debt and you know i didn't know where to go yeah and so when she discovered the baby steps and everything and said hey let's get on board with this. I couldn't fully commit because we weren't 100%. We weren't married. That was part of the principle to combine our finances. We had to get married. I knew part of what God gave

me the vision to do was, hey, marry this woman if you really love her. That's where we went from there. Well done. Good for you. Good stuff, guys. Very, very cool. You guys are absolute heroes.

So proud of you. So what are you going to do fun next now that you're finally out of debt? We actually are in the process of building a home. Yay! So that's what we're looking forward to. Good. Very cool. When will it be completed? Hopefully by the end of forward to. Good. Very cool. When will it be completed?

Hopefully by the end of this year. Okay. All right. So perfect timing. Good for you guys. Thank you. And you're doing everything right. You are really rocking.

This is good stuff. Well, we've got a copy of the book, The Legacy Journey, for you. That's the next chapter in your story to continue to build out your legacy, to live like no one else, so later you can live and give like no one else and uh of course also we're going to give you a copy of the total money makeover book the one that you didn't read and uh the first time anyway but now you can give it away to somebody and they won't read it and uh the total money makeover is the most used coaster on coffee tables all over amer. It sits there. People put coffee cups on it and don't read it until the time is right, and then they crack that thing open, and it blows their minds, and they go do it. It may sit there three years and collect dust and coffee cup rings,

but finally it's there. So it's just for you guys. We love you guys. I'm so proud of y'all. You guys are impressive. Very impressive. Very proud of them. Good job.

Good job. Good job. Thank you. All right, Sam and Jasmine from San Antonio, $135,000 paid off in 21 months, making $123,000 to $204,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free!

We're debt-free! Woo! Woo, woo, woo! Man, that's fabulous. And not only are they impressive, they're pretty. Yeah. I'm not sure Sam's okay with that adjective, but he understands what you mean. But yeah, what a great young couple.

What a sharp, sharp power couple right there, man. Yeah, really fantastic. Lots of stuff going on. Lots of future there that's going to be unbelievable. And you know what's so interesting is we get people, you know, our last debt-free scream in the other hour, $50,000 a year. This couple making $123,000 up to just recently after their debt-free moving on up to $204,000. All kinds of incomes do this.

Yeah. People do it that are young. All kinds of incomes do this. People do it that are young. People do it that are old. People do it that live in the West. People do it that live in the East. Even people in California do it. Yeah, it's absolutely true. I mean, it's amazing.

I mean, people everywhere. It's amazing. You can actually do this stuff. These baby steps work. This is a proven process. Financial Peace University is a proven process in Ramsey Plus. You can get in it. You can change everything, folks.

So the only question is, when are you going to do it? The people that are listening right now, I'm talking to you. When are you going to take control of your destiny? It's up to you. The Calvary's not coming. Biden's not going to change your life. You have to do it. And the great news is, you can.

This is The Ramsey Show. Ramsey personality, Ken Coleman, host of the Ken Coleman Show, now heard on over 75 radio stations, a very popular podcast and a SiriusXM radio, joins me today answering your questions about your careers, your jobs, your life. I'm here to help you with your life and your money. And together, we're going to make it done. Get her done for you. Open phones at 888-825-5225. Father John is in Oklahoma.

Hi, Father John. How are you? I'm good, Dave. How are you? Better than I deserve. What's up? Hey, I'm a big fan. My parents learned me on the Ramsey Method when I was a teenager, and I'm definitely

convinced that your methods really changed the trajectory of my life. So I just wanted to say thank you. Well, thank you. I'm honored. How can we serve you today, sir? So I'm a Roman Catholic priest, and I live in the housing that's provided by the parish, and so I don't own a home. I've never been in debt, and I am busy I am with ministry and also the possibility of kind of, you know, I could get moved anytime, anywhere on the western half of the state. That's the primary reason why I decided to kind of not take up a mortgage and not get a home.

And I haven't decided necessarily, you know, if I'm, uh, I don't have children of my own. And so I'm not sure if I'm going to be, um, uh, saving up for my nieces and nephews or not. Um, but I guess what I was just wondering was, so right now I just, I'm, I'm, you know, I'm paying into a retirement and, uh, and just kind of saving money. I own my car, and I'm just wondering, you know, is there any reason why I should get a home? No. Yeah, I figured that's just kind of. Now, so there's two questions I have that I'm not familiar enough with the

Roman Catholic priesthood to, and you'll have to help me with this in my ignorance. How often do they typically move you? So we can be moved, well, for us younger priests, we can get moved pretty regularly, but probably anywhere between five to ten years. So you usually stay in a place five or ten years? Yeah, probably. Okay, that's the norm anyway. I mean, obviously they can anytime is what you've said twice, but the point is they typically don't on a whim and you've got a five year. So you're there long enough to own a property if you want,

especially once you've settled into a parish that you think you're going to be there for an extended period of time. That might be a little bit later in your career. Now, the second thing, and this is going to sound really dumb, but I just don't know, so I'll have to ask. You said you're saving for retirement. I don't know if Roman Catholic police retire. Do you quit? Well, yeah, see, that's the thing. It's kind of retirement in air quotes.

Okay. We kind of just... I was kind of under the impression you didn't. No, you know, the retirement age, technically speaking, is 75, but I mean, I just plan on dying with my boots on, so... Yeah, yeah. The priests that I have known, that's what they've done, but I'm not a Roman Catholic, and so I wasn't up close enough to know what the flip was really going on. So, okay. All right. That makes sense. All right.

So, yeah, you're saving for retirement. Now, the reason I ask that is as you move into maybe the second half of your career, A, you're more stable in a location, and B, you're going to want to stabilize the most expensive part, but potentially of your retirement years. I mean, if you step out of the parish and don't have parish housing at 75, but continue doing priestly work of some kind, but you don't have the housing furnished, you're going to need a home at that point. And that is the biggest line item in your budget at retirement that's now destabilized

because now you're a renter if we don't plan for this. So I want you to plan to buy a house 65 years old and pay cash for it. Okay. Or something like that. You see what I'm doing here? Yeah. We know by then you're probably in a location you're going to stay, and we know by then that there's a possibility somewhere out in the fairly near future

that you might need housing. Does that make sense? Yeah, that does make sense. I was like, how do I navigate these steps? Housing's provided. How old are you now? I'm 30 today. Cool.

Well, happy birthday. Yes. Thank you. Well, thanks for your service to the Lord, sir. Thank you very much, Dave. Yeah, and so what you're going to do is you're going to start paying a house payment into a mutual fund, and that's your house fund that you're going to pay cash with 30 years from now, okay? Okay. Awesome. Well, thank you very much. fund that you're going to pay cash with 30 years from now, okay? Okay.

Awesome. Well, thank you very much. I appreciate you all taking my call. Yeah, thanks for bearing through my ignorance because I don't know how these things work. So, cool. That's fun. It's really fun because I want people to grab that. When you start putting a house payment right now into a mutual fund, 30 years from now,

he's going to have plenty of housing. He's going to be in really good shape. Yeah, he's going to have a lot of money. My morning needs. Yeah, that's exactly right. My morning needs. That's a wonderful opportunity. But his is truly have plenty of housing. He's going to be in really good shape. He's going to have a lot of money. My morning needs. Yeah, that's exactly right. That's a wonderful opportunity. But his is truly a life of service. Yes.

Most of our lives should be, but he's a different kind of commitment that he stepped into there before God. And very powerful. Very cool. What a nice young man. Very sharp. Open phones at 888-825-5225. Tina is in Cincinnati. Hi, Tina.

Welcome to the Ramsey Show. Hi there. I have an insurance question. I'm going to be 59, and my husband is going to be 49. And we took out 20-year term policies that are going to be running out in about six years. So I'll be able to retire at that point. But then my husband will still have 10 more years of working, and he won't have any term insurance left.

Now, our house will be paid off next year, and we're otherwise debt-free. And we have about $650,000 in our retirement accounts right now. So he doesn't think that he'll need to replace that insurance because the house will be paid off and our savings will take care of any need. What is your $650,000 invested in? It's our retirement plans, our 401ks. I know. Mutual funds?

Yeah. Okay. If it's in good growth stock mutual funds that are averaging, if they were to average 10%, about every seven years, they'll double, if you don't add anything to it. So seven years from now, when we're discussing about this six-year policy running out, you should have $1.3 million and a paid-for house. If your husband dies, honey, I think you're going to be okay.

Well, that's what he says. Well, I mean, you think you could struggle through on a million-three in a paid-for house? Yeah, I probably could. I just was just a little nervous just not knowing, you know, how things go. So it makes me feel better to hear it from you. Six years from today, if the money has not grown you can revisit the discussion right but yeah but hypothetically you should be you should be uh you know self-insured meaning no debt there's no money that you need and you have a huge pile

of money over here to live off of the income that it creates. So what's your household income now? Right now it's about $200,000. Okay. All right. You would have to live on about $130,000 if he died and you only had $1.3 million, but you wouldn't have a house payment. Correct. I don't know if you can do that or not.

You think you can? I think so. Hopefully he's not listening so he can't tell me I told you so. Well, here's the thing. Your fear is justified, and it's a good fear. The trick to use the fear for is to dig in and go, okay, what are the facts, and can the fear go away once I understand the facts? And that's what I'm trying to lay out here is because it is very wise of you

to be concerned about this issue. People who are not concerned about how things are going to go if someone dies are the ones that end up messed up. They end up in a really screwed up situation. So you're very wise to have that fear. But then what you have to do is you have to do the actual analysis. And it's okay for you to not say, oh, I don't necessarily trust it just because he says it. You know, you need to look at the actual numbers.

Don't do it because Dave Ramsey said. But if you say, okay, looks like we're going to have a talk to my financial advisor. We're going to have a million and a half paid for house six years from today. We'll let that drop. I think we'll be okay. And you can let that release down inside of you then. It's a beautiful thing. Thanks for calling. Hey, it's Kelly, associate producer for The Ramsey Show.

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