The Ramsey Show - App - I Have No Debt but I’m Still Worried About Money (Hour 3)

Episode Date: June 5, 2024

Welcome to the Ramsey Show, where we help you win in your life, specifically winning with your money, winning in your work, winning with your relationships. 888-825-5225 is the number to get coached up. 888-825-5225. Jade Warshaw is with me. I'm Ken Coleman, and we're ready to roll this hour. We're going to start it off with Patty in Seattle, Washington. Patty, how can we help today?

Yeah, so I think I've done the steps without even knowing i did the steps and now i'm still in the mindset that i should not be spending money never never never never spend money i'm 50 and i would like to start doing things but i get so nervous tell us about your earliest memories or maybe uh the most dominant memory you have around money early on in life. Like just being super poor. Like when people say, what do you want to do when you grow up? All I ever said was, I want to have a job where I can pay my bills. I want a job where I can pay my bills. That was all I ever said. And here's the reason I asked that question.

That right there is the sole reason as to why you still feel the way you feel, this is the key word, about money. Even after paying off all your debt, you have a great retirement fund, you got all this, and that worry is coming from a deep place of fear there's a lot of trauma around money the way you grew up does that sound about right to you yes yeah so and i mean yes what have you what have you overcome tell us what you paid off tell us what you have now tell us about your current situation um okay well of course in my 20s, I was pretty stupid, bad marriage, blah, blah, blah, got into super debt,

had to file bankruptcy. And then so since then, I've just literally put my nose to the ground and just said, okay, that's never happening again. I'm going to make sure this happens. I got a decent job that has really good retirement. They have an ESOP program. It's employee owned. I've been there 30 years now. I have over 2 million. So when I retire. Wow. Patty, Patty, that's pretty incredible. We have two houses that are paid for with my new husband. We have no debt.

We have no car. We have $200,000 in savings. And I still worry daily. He's already retired. I'm still working because I worry. And like at 55, our company that I work for says you can take 25% out at 55. What are you worried about patty right now be specific try to give us something specific okay so like an example so like we were talking

about like getting a different house and we would sell these ones and my husband's like i don't even think you can get a loan because we're like one income and i'm like i don't how do you not be able to get a loan when we have $200,000 in the bank and I still work? Yeah, but he's wrong. He's wrong. Yeah, he's not right about that. So some of it here is just a lack, and I'm not being negative, it's just a lack of knowledge of what's possible and what's not. So that's thing number one. What else are you afraid of? Well, okay, just, just i mean just as well like they're like oh two million isn't what it used to be and then they've been like okay so like at 55

i'd have to quit working and they'll give me 25 which is 750 000 basically because i'll gain more in the next five years but if you think about it that's only like 10 years of my, of my thing, or that wouldn't even buy a house. Let's stop. Okay. Hold on a second, Patty. How much are the houses worth? My house, our two houses, probably about a million dollars together. And you have 2 million in retirement, correct? Correct. Between you and your husband. 200,000 and saving. Yes.

Here's where you're at. This is all the fear and the worry that you're feeling is all for lack of knowledge. Because right now it's a bunch of numbers that are floating around in your head. It's a bunch of what he said. And it doesn't seem like that's enough. Or people are saying this. Or my husband said, we can't even get a loan. So let's let Ken and I tell you the facts

because we would say here, Dr. John Deloney would say, facts are your friends. So just looking at the 2 million, let's just look at a small piece of your world, which is the 2 million. We say all the time around here, the point is to be able to live off your return, right? The interest that you're gaining on your nest egg.

So obviously you've got this in really great investments. Even if it was just in the S&P 500, it's probably having an annualized rate of return of around 10%. What's 10% of 2 million? 200,000. 200,000. Can you live off, and we're not getting technical. So for all of my technical people listening, I'm not getting technical. I'm just speaking in broad terms here. Do you think that if you lived off the interest of $200,000 a year, you'd be all right? Yes. Yes. Okay. Yes. That's thing one. We're not even talking about the houses right now. Okay. Okay. So money wise, you guys are doing very, very well. You're doing good. You're not going to run out of money. You're not going to run out of money okay so that's

i just want you to don't contest it for now just let just sit on that like we've done well we're not gonna run out of money and one of the things i'm gonna take a a message out of the sam warshaw playbook that's my husband you want to know what he does he he'll write a truthful affirmation on a sticky note whether it's a bible verse or something that he wants to believe and wants it to become first nature for his mind. He puts them on the window, on the mirror every morning, and he looks at them when he brushes his teeth in the morning and at night. And so I think for you, something that you need to tell yourself every single day, at least twice a day is, I make good decisions now and I can trust the decisions that I make. Financially, we have peace. Like you need to come up with whatever that is and tell yourself that because the truth is, and Ken touched on it earlier, you do have trauma that you carry around.

I talked about it a couple of weeks ago. When you come from a background where you're used to coming home and the water is cut off or the electricity is cut off or, you know, you're cutting the mold off the cheese in order to make a mayonnaise and cheese sandwich. When you come from that, there is a part of you that wonders if you'll end up back there again. Right? I think you have to flip this. And I really think you need to sit with a therapist. And you have the money to spend on a therapist, Patty, don't you? Yes, I probably do.

I'm going to give you a little hack that a friend of mine, Mike Foster, shared with me recently. When you have a voice that says, I don't have enough, and I think that that's the voice in your head, or something similar, I don't have enough, you have to flip that, and it's as simple as what Jade is saying. It's, I have enough. Now, you called presenting with, how do I get to a point where I spend some money because I just don't spend any money? So that tells me you're recovering because it tells me that your head and heart are having a wrestling match, Patty. Your heart's saying, I've done a really good job of crawling out of the poverty-stricken environment that I was raised in. I've got a better husband. All right. The first guy was a bum and now I've got a great husband.

I got a great life, all the things. And I'm still scared to spend because, and that tells me you've, you're recovering. You're really close because your heart's going, let's enjoy a little bit of this. Let's enjoy the spice of life. Am I right, Patty? But your brain's going, no, we can't because we'll never have enough. Yes. And even saying it out loud, it sounds stupid to say it out loud because I should know that that's enough. It's not stupid. It's not stupid, Patty. You're just dealing with fear. I really want you, listen, we all endure, listen, go to BetterHelp. Go find a local therapist and just talk to somebody about this. They'll give you the tools to overcome this fear. Jade and I aren't

worried about you financially, nor are we worried about your spending habits, but to enjoy this money that you've worked so hard to accumulate, you're going to have to get healthy and win the battle over fear. This is The Ramsey Show. We'll be right back. This show is sponsored by BetterHelp. All right, so I was born and raised in Texas, and I love the myth of the lone cowboy. You know, the guy who doesn't need anyone or anything. It's a fun story and it's a lie. In our self-obsessed society, we're obsessed about our own diets,

our own workout routines, our own jobs, our own social media feeds, everything. It's easy to forget that no one can do life alone. And I don't care if you're an introvert, an extrovert, or whatever you want to call yourself, we all have to have a community and a support system to do life with. It's time to shift the focus from doing it all by ourselves to knowing that we can only be well

and whole when we ask for help. Therapy can be a great source of help and support for any area of your life. And if you're thinking about starting therapy, try BetterHelp. BetterHelp is 100% online therapy, so it can fit with your schedule. To get started, just fill out a short online survey to get matched with a licensed therapist. And if it's not the right fit, you can switch therapists at any time for no extra cost. This month, start to build your support system with BetterHelp. Visit betterhelp.com slash ramsayradio to get 10% off your first month. That's betterHelp.com. The Ramsey Show continues. Thrilled to have you with us. I'm Ken Coleman. Jane Warshaw is with me.

The phone number is 888-825-5225. All right, let's talk about insurance. Ramsey Trusted Pros are people who shop the marketplace. Compare insurance quotes so you don't have to. They do it on your behalf, comparing all of the quotes, discounts, bundling, all the things at no extra cost. They're going to make sure that you are covered and that allows you to sleep well at night. We interview, vet, and coach these Ramsey Trusted Pros to make sure that they're experts who also have your interest at heart. They have that heart of a coach. Do you have the right coverage that you need in your insurance based on your specific needs? If you need to find out, go to ramseysolutions.com slash coverage. It just takes a couple minutes. You can figure out what you need and also get connected to a trusted pro in your area, ramseysolutions.com slash

coverage. And it may be worth noting, Ken, that insurance is not a baby step. Let me throw that out there because some people are like, when I get out of debt, then I'm going to get the right auto coverage. And when I get out of debt, then I'll get life insurance. Or when I get out of debt, then I'm going to get the right auto coverage. And when I get out of debt, then I'll get life insurance. Or when I get out of debt, and that's not how it works, folks. The minute you find out that you need this is the minute that it's added to the budget and you get that security in place. I agree. That's good stuff.

Good point. Abigail is up next in Atlanta, Georgia. Abigail, how can we help? Hey, guys. I'm glad to be on with you today. Good to be with you. What's up? So my husband basically found out that he is going to be let go in about 60 to 90 days,

and so we are on the hunt for a new job for him. One offer, he's gotten a couple offers, but one offer that he has right now would significantly increase his income. However, he would be traveling out of state every other week, Monday to Friday. All right. Let's just take the money off the table. How does that make you feel? How does it make him feel with this travel? He views it as a neat way to kind of be able to see the country and that sort of thing without

having the cost of it I we have our daughter will be three years old next month and so that would put me in charge of kind of running our house taking care of her which isn't a huge issue we both work full-time so really it would just be getting her off to school in the morning and picking her up in the afternoon and evenings, which isn't a big deal. Sounds like he wants to do it, and sounds like you're having some second thoughts about if this is a good decision. So you thought, well, I'll dial up the Ramsey Show and get a take. A little bit, but go ahead. Can I ask a more detailed question? Does he fly home Fridays after work,? Does he come home? Does he fly home

like Fridays after work or does he come home on Saturdays? So is it really six days? Like, how does it? No. So they would leave Monday morning and they would be home by dinner Friday. Okay. So they have full weekends and then exactly. So back to where we were. I got to know. You giggled. What's your feeling? I want to know where you're at on this. My thought is if we could do this for about three and a half to four years, we would be able to pay off our mortgage. That's the only debt we have at this point. And with our daughter being so young,

he's not going to miss all the sporting events and that sort of thing that he would potentially later on. So maybe this is just a short-term thing that he does for the next three to four years until we get that mortgage paid off and we're in baby step seven. Why would he miss them potentially later on if he didn't do this job? Because he tends to work later into the evenings and that sort of thing over time. Now, he's a carpenter. And so in order to pay off the mortgage, that's why he's doing that. Or it's just the way it is. It's a cycle.

It's a little bit of both. So if he wanted to leave earlier, he would have the choice. But the work is always there for him to be able to work later. And so right now we're choosing for both of us, honestly, to be working overtime. I gotta be honest. I gotta be honest. This is your life and you can choose what you and your husband decide. But since you called, you know, when, if you had told me, Jade, we're in, you know, X amount of dollars of consumer debt, we're in baby step two, this seems like something we can do for, you know, 18 months or two years or whatever. I might be on board with it. I, a family, you know, every other week, that's half a year. That's half the year he's gone. That's a lot. And the house, nothing's on fire. Like there's no

reason to sacrifice at this level. Like, yes, you can see the, the half glass, half full side and go, I can see the country and I can travel the world. But there's no reason to be at this level of intensity to pay off your mortgage. I wouldn't do it if I were him. I just, as a guy looking at it from my perspective, but I am a little bit concerned that I asked you to describe his reaction to this and yours and his is like, hey, I get to travel the country on someone else's dime. And it makes me just wonder, you know, if you were to say to him, I don't like this for our family, what do you think his reaction is going to be? We've definitely had that side of the conversation as well, and he obviously would miss spending those evenings with us in that time that we wouldn't have right now.

So what was his reaction to you going, I don't like it? He completely agrees. And he said that if I say I don't want him to go, he won't go. Then I'm with Jade on this. I think you should tell him how you really feel. And by the way, I don't know if anybody ever does this, Jade, but if you call us, Abigail, and you want to know our opinion, then you should use us as bad guy, bad girl. Oh, yeah.

Play the tape. I mean, because it's on YouTube. That's right. And so I always try to remind people, if you call and ask us, then use us as the bogeys. That's right. So here's what I think. What's your husband's name? Dan.

Dan? Here's what I think, Dan. I know the Atlanta area very well, lived there for 11 years. I also know, because I had a very popular carpenter who has a massive YouTube channel on my show recently, to discuss the shortage of carpenters in America. Oh. And Dan, carpenters are at a premium. I don't know why you're getting laid off in the one place, but I think there's plenty of work to do locally if you go look for it and start talking it up. And I think you can make really good money and never miss anything.

Dan the tool man. So, Abigail, I agree 100%. This is not a gazelle emergency situation this is just be patient let's look for something else that doesn't require all the travel there's no reason for him to even leave metro atlanta to be honest with you that place is still popping is it not abigail it is it definitely is well they need car having a hard time finding something locally that would pay what we're hoping for him to be able to make or even to be comparable to what he's at now. Was he working for a major housing company?

It was a smaller company that works on larger projects. So that's why he's getting the premium. Yes. Do you mind me asking what was his hourly rate on this job? His hourly is only $25, but they get quarterly profit share. So that's the big upside of his current position. Okay, so I'm glad I dug into this because here's the other thing I want to say. That's a rare carpenter situation.

True that. Extremely rare. So I don't know that we need to be searching for just that apples to apples type thing. It may not be there. But the $25 an hour, you can definitely get that, maybe even more locally in Atlanta. And this is about what's best for the family. And to Jade's point, she's absolutely right. We're not $300,000 in consumer debt.

We want to pay the house off, and you guys are going to be able to do that with discipline and steady getting after it. So that's what we think. I hope he's not mad at us. I don't think he needs an excuse to travel the country right now with a three-year-old. He was just looking on the bright side, you know. That's a dude comment. That's not a knock on him.

That's the way guys think. We go, oh, you know, I know. That's a dude comment. Yeah. That's not a knock on him. That's the way guys think. We go, oh, you know, I mean. I can stop for snacks. Yeah, I mean, I get to go out here and then next month I'm out here and, you know. You know, that's just a classic dude response. That's funny. It's all about experience, adventure. Oh, yeah, here you go.

And it's like, oh, well, you know, the three-year-olds at home. I just, I'm like, that's going to get old real fast. Well, she's carrying a full-time job. Heck yeah. Yeah. So I'm with you on that. It's time to be home. Half the year?

Half the year? That's a lot of time. And listen, I'm the guy right now that's getting ready to say goodbye to my firstborn. And folks, I'm in the middle of like this whole, everybody's sick. All young couples hate hearing people like me go, goes fast but i'm telling you i heard your voice in my head last night ken saying it goes fast does because my kids took me for a ride last night they made me so mad and i heard your voice prince your oldest yeah it'll be long i promise you it's gonna go fast so hang in there hang in there mama bear you got good kids bear. You got good kids, though.

I do. They're excellent. They're the best. Excellent human beings. All right. We'll be right back. This is The Ramsey Show. Hey, you guys.

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Jade Warshaw is alongside the phone number for you to jump in for you to talk about your life, specifically your money, your work and income, and your relationships. It's 888-825-5225. 888-825-5225. Let's go to Heidi now in Phoenix, Arizona. Heidi, how can we help? Hi, Ken. Hi, Jade. It's great to talk to you today. I listen to the show every single day. Oh, thank you. Yeah, I'm very excited. I have gone through Financial Peace University twice, too, so I'm on board with the system. So I'm 57, divorced, and a single mom to a 28-year-old with autism who lives with me. And my question is, and I have some more background to share, but to get right to the meat of it,

as a 57-year-old without high-level income skills, because I don't have a bachelor's or anything, I'm wondering if I should return to school to get at least an associate degree or get additional training in my field to increase my income. I've never made more than $20 an hour. And at my age, should I focus on working multiple jobs or try to find more lucrative work through additional training and schooling? And I do not have the cash to go to get a bachelor's, cash only. Let's start with what field have you been in?

I do home-based care services for the autistic community. I got into that because of my son. Okay. And then I thought you mentioned kind of laying out the scenarios, the associates, bachelors, or additional training, what, if any, additional training could you do in the field that you're in? And then what would that do for you financially as far as income? Okay. So some of the jobs I've looked into to become a registered behavior therapist, which is a step up from what I'm doing, pays about $22 to $25 an hour. And most of the companies have 40 hours of paid training. It's only paid at a minimal wage kind of thing, but it is paid, so I don't have to pay for it. I'd really like to be a board certified behavior analyst. Those are the ones who write the program, so they're at the top of the league.

They make $80,000 to $100,000, but that requires a master's, which I'm nowhere near getting. So we got to take that off the list. So what is the next level up then with training, and what would that cost you? Beyond the one that is paid for training? Yeah. I'm not sure. there's a lot of steps in between the only one i've looked into is the one that pays 22 to 25 an hour slightly more than i make now yeah and is that worth it i guess that's what i'm trying to figure out like if you go through all that even though they pay for it is that i mean that's a that's a bump but it's not like a significant bump no but it is a step in that direction right um so that's what i'm trying to take it well that's what i so so instead of me continuing to ask you i think that's your homework one of your homework

items is what what does the ladder look like so we've got the paid training i understood that is there something beyond that what would that cost you because I'm presuming that any of those steps are going to cost way less and take way less time than a degree, correct? Yes. I don't know if it's paid beyond this 40 hours of initial training, or if I go higher, it becomes something I have to pay for. No, I know. That's what you need to find out. Because what we're trying to do here, Heidi, is we want to see what our potential pathways are to making more income. Well, can I ask a question, Heidi? So you're doing the autistic home care. Do you have several clients and it just depends on the week who you go to visit or do you kind of have a set couple of

families that you go see? How does that work? I have a set couple of families that I go see. So the hours are somewhat steady. So my question for you, I'm always going to look on the entrepreneur side. If you're making $20 an hour and you know what the job is, and it's a couple of families that you work with, what keeps you from going out on your own and charging a higher dollar per hour rate? You're basically cutting out the middleman and you're offering the same care and you're in charge and you're in your own boss. You're an expert. Yeah, I don't know because these are kids who are, they're state funded companies that I work for. So they're funded're funded by the state. And so that's what's paying

for the whole program. I don't know if that would work with me on my own. So they're providing like a curriculum, they're providing tools and products and things like that for you to use. And how much are the families paying out of pocket much, if any at all for these services? No, not that I know if they are, I'm not aware of it. That's the challenge. Okay, that's the challenge. Got it. So they get hours based on like respite and habilitative care because there's different types of care that I do. Some is more involved than others. All right, I'm going to throw a scenario at you real quick and see if you're interested, okay? What if I told you that for less than $15,000,

you could learn a completely new skill that would set you up to make starting somewhere between $65,000 to $70,000 with a path to six figures, and you wouldn't have to have any previous experience. Would that interest you? Yes. Okay. I really think you ought to consider technology. BethelTech, I've endorsed BethelTech forever. They've trained so many people. Ramsey Solutions actually hires BethelTech to train people in our building who want to move into tech jobs who've never done tech before. So that's how much we believe them in an organization. They've got a nine-month program.

It's online, and it's less than $15,000. And you could save up for that, maybe even cash flow your way through that. I don't know your situation, but that is learning any type of coding, could be cybersecurity. I'd really like you to call them and talk to them. Betheltech.net is the web address, but call them and interview them and talk through the situation because they're training people who've never done any tech work at all. And that's just one option. I'm not saying put all your eggs in that basket. But that is an alternative opportunity for training for you to set yourself up in a field that is always going to have demand.

So that's just one option. That's outside of the world you've been in. But I think that's what you've got to start looking at is where is there a low bar for time and money to get certified that doesn't require a degree? Because you've already said, I can't do a bachelor's degree. I can't afford it. So that's why that came to mind is something to at least kick the tire. So I'd at least call them because that's what you need right now are options to increase your income without having to pay a fortune to get qualified. Right. So that's just one option. May seem scary, but I don't think it is if you actually look into it. The other side of this is it's not in my wheelhouse at all. I mean, I know you're saying it's different, but I am

wired to be a caregiver. That's what I needed to know. I think, I know you're saying it's different, but I am wired to be a caregiver. That's what I needed to know. I think there's something where you can, I truly, maybe not exactly what you're doing now, but I think there's something you can do that you're kind of striking out on your own. And it's you providing, here's the services I do, and I'm working with special needs and I'm coming into your home and I'm taking some of the burden off of you. I think there's something there. I don't know the insurances around that. I don't know the ins and outs of that, but you do. And I think that, I think there's something there. Think about it, spitball it around in your own mind. It can give you a really great option as well. Well, but now that, but let me also say this, the fact that you love caregiving,

I mean, I get that. And so I don't want to push you into something that just has no value to the results of the work. But I would say I like where Jade is going, but the landscape, like I gave you some homework at the start of the call. You've got to go get those answers. Because right now I think you're coming to us and you're going, should I go to school? And it's like, you need to know what all the pathways are above where you are now. Explore that. But I'm going to go, if you can't start a business on your own because of the funding and all that, that can get really state regulations. That can be weird. But I like where Jade was going. I just wonder if you can't create a position within an organization in Phoenix where they're serving this community in different ways than maybe you have, but you bring a lot to the table. And it's almost, could you create your own position and ideate within another organization all for the purpose of creating greater value and getting paid more? Does that make sense?

I think so. You're saying create a position that doesn't yet exist? Potentially. And here's what I mean by that. You got to find out who is in the Phoenix area that is serving that group of people that you want to serve, right? Oh, there's a ton of companies. I know. Put my resume out there. Yeah. My point is get to know people in those organizations. Find out what they're doing. Do they need somebody? Maybe you go, hey, I can do that, is my point. It's not that you have to completely create it from scratch,

but I'm pushing you to get so connected in Phoenix, in this area of serving these specific folks that you want to serve. You would be shocked at how opportunities will pop up. Welcome back to the Ramsey Show. Jade Warshaw is beside me. I'm Ken Coleman, and we're here together for you this hour, 888-825-5225. Our scripture of the day comes from Hebrews 10, verses 35 and 36. So do not throw away your confidence. It will be richly rewarded. You need to persevere so that when you have done the will of God, you will receive what he has promised. And our quote of the day from Teddy Roosevelt, believe you can and you're halfway there. All right, to Salt Lake City we go, and Julie is there.

Julie, how can we help? Hi, thanks for taking my call. So my husband and I would like to help each of our four adult children with a down payment on a home. They're all in their... Oh, are you there? We want to give each of them $50,000 and just wanting to make sure that we are in a position that that's a good thing for us to do and that it's not going to hurt our long-term goals. But also be able to, you know, gift them this and if that's a good thing to do. Yeah. Why is it? You tell me why it's not a good thing to do. Well, I think it's a good thing to do. I just think it is a lot of money.

I mean, we're talking $200,000. So I just want to make sure that we're in the position that it's okay and not going to wreck our retirement or anything like that. Okay. So let's talk about you guys' numbers and see, cause it's four kids. So each of them are getting 50,000, correct? That's our plan. Um, we do think we would think that we need to treat them each the same, but, um, we'd love to give them more if we are able to do that. Okay. How old are the, can you tell us the ages of the kids? Sure.

So we've got 25, 27, 29 and 30. Wow. Okay. And let's talk about you and your husband's financial situation. So are you baby steps millionaires? Yes,

we are. We followed your program for many, many years. We're 54. We're completely debt-free. We have worked really hard to never be in debt. Right now, we have about $1,600,000 in investments. That changes by the day. $320,000 in a traditional IRA, about $240,000 in high-yield savings and then we have like 40 to 50,000 in like emergency fund um so I think what we would do is we would take the high-yield savings and that's where we would give the kids you know their 50,000 each yeah

it's already there it is already there um but you are gonna have a you are gonna have a gift tax on it so be prepared for that i wondered about that is there so is there a way to gift them only so much each year um and have them hold it or yeah we're giving them 50 so each year you can give 16 000 i think check these numbers because it may have gone up in the past year, but each of you has a limit, you and your husband. So last I checked, it was $16,000 for you, $16,000 for him. And then there's a lifetime limit of like $12.6 million, which is, I mean, you're not going to do that.

But so just kind of know that each year, if you exceed that, there is a gift tax on that. Okay, so maybe it would be better to give them part of it So just kind of know that each year if you exceed that, there is a gift tax on that. Okay. So maybe it would be better to give them part of it before they're even ready to get their home just to avoid that tax? Yeah. Or yeah, just spread it out is what I would do because it's per recipient. Okay. So you could give, so basically each of you could do whatever the number is.

It's up to 18,000 000 it's 18 000 okay so you can give each one of them 36 000 this year this year and then the next year you can fill in the gap and do the rest okay and that way you're avoiding that so that's kind of the only loophole thing to consider there but i love that you're doing this um i think that this is, generationally, these are the things that create wealth within a generation. To be able to say, hey, I'm passing this along. Hey, I've got this brokerage. It's going to have X amount of dollars for you. Or, hey, I'm going to do your down payment. I mean, this is really how you help set up the next generation to do the things that you did without having to go through all the hoops that you had to jump through. Yeah, and it seems like the kids these days feel like they're never going to be able to afford a home.

And we feel like if we can gift them a nice chunk down, that will help them feel like they can actually do it. You said your oldest was like 30? Yes. So they don't have a house right now? No, actually, that's the one that lives internationally. So he's going to probably be a little bit down the road until we will help him with the home.

But actually, the youngest one, he's the one who's house shopping now. So it really got us thinking we need to, like, have a plan so that we treat every one of them the same. Yeah. Yeah, I love it. And I would talk to your tax pro, you know, and just double, triple check everything. How can we do that?

It just really irritates me that the government thinks they can put a limit on how much money I'm going to give somebody and that they're going to tax me on my money that I'm going to give to you. Uncle Sam, we already paid tax on. Yeah, right. I love it. You guys got it in the bank. So I think Jade's giving very wise advice here on avoiding taxes. I'm with her. I hate taxes. So thanks got it in the bank. So I think Jade's giving very wise advice here

on avoiding taxes. I'm with her. I hate taxes. So thanks for the call, Julie. That's great. Great, great, great heritage there. Mike is up next in Chicago. Mike, how can we help? Hi, can you hear me? Yes, sir. It's an honor to talk to you both. Long-time listener. Thank you. You know, there's similarities to the last call. I'll get straight to the point. So my wife and I, I'm sorry, I'm a little bit nervous. You're doing great. We got you. I'm nervous, too. I'm sitting next to Jade, so we're okay.

Thank you. My wife and I are both 34. We have three kids, young children between one and six, and we've done very well for ourselves over the past 13 years. Our net worth is almost $3 million. Thank you. Thank you. Yeah. The only debt we have is our primary residence, and I guess I'd be what you call Dave-ish. We could write a check tomorrow and pay it off, but it's split between that 3 million is split between retirement accounts, stocks we hold in a taxable brokerage account, and then home equity, cash and cars. We've just had very successful careers in demand technical fields.

We've risen the ladder and we've saved like 40% of our salary. Let me get to the point. I'm looking to set my children up for success. Well done, by the way. Thank you. Thank you. Thank you very much. I'm looking to set my children up for success financially. And I know, you know, our orientation is like the primary

focus is teaching them the value of the dollar, you know, instilling a great work ethic, focusing on behaviors. But from an account perspective, you know, we're going to use a 529 to pay for all of their undergraduate. What would you recommend beyond a 529? And this is why I said it was kind of similar to the last call. Like we were considering one-time gifts as adults, perhaps setting up a trust, an UTMA or an UGMA. I mean, you could do... What do you guys typically recommend? I like the 529 for the college.

And just know that if you tend to, if you happen to overfund it, over time, that money can pass through to a Roth IRA. It would go through at whatever max limit is for the year. So you can't exceed that couple did and say, we're just going to keep some money aside and a high yield savings account. And when the time comes, you can decide when you're going to start putting that money aside. Right now, it's great, you know, because the rates are so high. It's almost like if you don't want to have any risk attached to that money, there's a way to do it there. Or if you're concerned with the custodial and the fact that when they're 18, they kind of have access to it, you could just set it aside in a personal brokerage account and say, when the time comes, we're going to transfer this over. So you've got a lot of options. How much money, like dollar amount, are you wanting to give them when the time comes? That's a great question. I think our current thinking is

perhaps $250,000 to $500,000 per kid, but that's 20 years in the future. And I'm worried maybe that's too much money. That could be a corrupting influence. I'm not sure. Well, is that including the education as well? No, it wouldn't be. That wouldn't be including that. Yeah, we'd pay for four-year college, whatever that is. And then, you know, our thought was like that $250 to $500 per kid kind of represents like a 10-year head start. Yeah, I think that it's up to you and your wife. Some of this could be, I don't know if some of this is an inherited amount that you're hoping for, if some of this, but you've got options. I think we're talking about custodials, we're talking about brokerage accounts, and then

we're talking about 529s that possibly you overfund intentionally to go into Roth IRAs. I think you've got some options. Sit down with a SmartVestor Pro to find out tax-wise what's best for you with your children. Good stuff. Thank you, Jade Warshaw. Thank you, James Childs for keeping us on the air. And to the rest of you, thank you for listening and watching. This is The Ramsey Show. We'll see you next week.