The Ramsey Show - App - If You Don’t Do This, No One Else Will! (Hour 3)

Episode Date: April 12, 2023

Dave Ramsey & Dr. John Delony answer your questions and discuss: "Being gazelle intense is affecting our marriage",  What happens if you don't pay your taxes, Fractional real estate investing vs. REITs. from the blog: What Is a Real Estate Investment Trust (REIT)? "When should the executor of a will be added to bank accounts?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting for the pods moving and storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Dr. John Deloney, Ramsey Personality, is my co-host today. The phone number is 888-825-5225. Jeremy is with us in Virginia Beach. Hi, Jeremy. Welcome to the Ramsey Show.

Hey, John and Dave. Thanks for having me. I'm a big fan of both of you guys. Well, thank you. How can we help? Well, my wife and I have about $38,000 left on our mortgage. We should have it paid off in about 10 months. And we're super gazelle intense, but I'm curious, how should we start taking steps to draw it back a little bit to maybe relax after we pay off the house? Should I tell my employer that I'm debt-free and that I no longer want to work

overtime, work on weekends? Or should I even tell my boss at all that I'm totally debt-free? I wouldn't be passing out my net worth information to my boss, but that's just me. I work at a place where we do that all the time, but it's different. How long have you been on this debt-free journey? About three and a half years. Did you have consumer debt before you started paying off your house? Here's what I'm asking. If you spent two years paying off consumer debt and then you just kept going through your house, that's a recipe for burnout. That's why we tell people to slow down when you get to your house and breathe a little bit. Actually buy a bed frame maybe, or actually go out to eat every once

in a while or something like that. But it sounds like you've been running the whole way through. Yeah, it's just been our house. We bought the house when we were 21. We're 23 and 24 now, and we're almost done with it. This is the only debt we've ever had. That's really impressive. Okay, so let's recap here. What John is saying is what we teach folks to do, and it is relative to your question, is to be gazelle intense in baby steps one through three, and that's just wide open, scorched earth, no life, totally getting out of debt until you're debt-free, everything but the house, and until you have your emergency fund of three to six months of expenses

in. You've passed that. When you get to baby step four and start putting 15% of your income into retirement, and you start saving for kids' college, and baby step six is extra money on the house. We move from intense to intentional. And so that's when we slow down and we buy a couch or we upgrade the car. We go on vacation. And all of those things cost money, so it slows down the debt reduction. But we're still very careful, very intentional, very wise. We now can go out to eat. But when you're in those first three steps, you're not doing any of those things you're just game on right so you blew past that and just stayed

in intense mode is what you're saying but you're within 10 months and you're 23 so you're going to live through it right but also you got married at 21 your sweet wife married you at 21 and and it says on our screen this is affecting your marriage so what's going on y'all haven't been able to go out to eat yet or anything what's going on uh yeah i think it's just we're so intense uh focused on it uh we've kind of forgotten to take a date night every once in a while or uh do any kind of extracurricular activities because you know every penny that we got we're trying to put it towards the mortgage and stop yeah quit stop okay take take 20 months to pay off the house instead of 10 take your wife out and by the way the idea that you can't go do something without money isn't

true either y'all can go hiking y'all can go out y'all can go walk by the river you can do all kind of things for free but the idea that we're not going to do anything together we're not going to have date night in our new marriage because we got to do this thing that's a recipe for this thing ended up in ash who's the who's the fired up when you were her uh both of us actually but honestly yeah it's probably just me for the most part it's for sure both of us and by both of us i mean just me yeah okay okay so if we listen if we backed off on the ot but maybe didn't stop at all but back down on it and we change change the schedule to 20 months from 10 months you're still going to be very wealthy you're still going to be very wealthy. You're still going to have a great life. And that gives you some margin time-wise and money-wise to have a good date night that you actually spend money on

to plan a weekend away vacation to do some other stuff. You can start to build some other things into your budget because you're not doing scorched earth anymore because you shouldn't be really at this stage. It's not what we teach people to do. It's not evil. It's not horrible that you're not doing scorched earth anymore because you shouldn't be really at this stage it's not what we teach people to do it's not evil it's not horrible that you're doing it if you're both in agreement and you just 10 more months that's fine but that's not the case right now you you kind of got some frayed ends on the rope right now right exactly yeah so just take them you don't have to announce to your boss anything just go you know boss i just can't take as much overtime i'm gonna spend a little more time at home.

After all, I am a newlywed. And here's what I would do, Jeremy, if I'm you. This is the exact conversation I would have. I'd take my wife out. I'd say, hey, we're going to go grab something. And I will have surprised her with somewhere that's a little bit nicer. And I would start the conversation with, I have scorched earth, so I'm paying this house off. In the first two years, I don't want to get it paid off.

But I haven't done a good job of dating my wife. And so I want to come up with a plan that once a week you and I can go do something. It doesn't have to be extravagant, but let's put something on the books every single week. What would you like that to look like? And then after her jaw comes off the floor, then shut up and listen. Just be quiet. Yes, exactly. And it might be, it might be going out to dinner. It might be going for a walk. It might just be you sitting on the couch, putting your feet up and not working 24, seven, three 65. Cause sometimes to a new spouse that can feel like you're running from her and you're trying to avoid her. And when you're trying to do the best you can, it's just aligning pictures and words, all that. But I would sit down and take her to dinner and

say, I need to do a better job of dating my wife. Cause I love you. I like spending time with you. What would you like that to look like? Yeah. Okay. And put it on the calendar and put it in the budget. These things don't accidentally happen as a philosophy. They happen when you tactically implement them. Okay. Yeah.

And you don't have to tell your boss anything except I don't want as many hours. Yeah. That's it. That's all you have to say. I wouldn't be in the. I just don't have as many hours. I don't need as many hours. And then when the house is paid off, if you don't want to work, if you only want to work 40, that's it i wouldn't say i wouldn't be in the i just don't have as many hours i don't need as many hours and then when the house is paid off if you don't want to work if you only want to work 40 that's fine i don't need as many hours right and if you want to go

save up for something and work some hours then go work some hours but that's okay all of that's fine i don't think you have to have a big explanation there in fact i wouldn't and i also want to put this out there if you, 24, and you have the opportunity to work like crazy, you don't have kids yet. It's a good time to do it. It's a great time. So maybe cut back from 60 to 50 and take some overtime. Yeah, I didn't say cut it off. Yeah, I know, but it's easy to just hit the brakes.

Listen, the schedule that guy's on, he can cut it back and it's going to feel like nirvana. And he's still going to be working more than most people his age. You know, and let me just tell you america here's what we know we are sure because we see the data and we talk to jeremy's all over america we have the anecdotal evidence because of our discussions with the marketplace and actual research and data that gen z the 23 24 year old might be the hardest working generation to come along in a long time. The ones that work, the ones that don't are the most useless generation ever. There is no middle ground with Gen Z's and millennials. They are either game on crusaders,

the best hard workers you'll ever have. I got a building full of them. I love them as a, as an employer. I love this generation. Or they're completely freaking useless. That's where they are. And so, and everybody's picking up.

The news is picking up on the useless ones. The participation trophy crowd and all that crap. And quiet quitting and all that garbage. No, there's people like Jeremy out there. That kid works. He's about to have a paid-off house at 23. He works works yeah well tell me this generation doesn't know how to work they do this is the ramsey show dr john deloney ramsey personality is my co-host today thank you for joining us america we're so

glad you're here hey if you're enjoying the show well you can help us out we don't spend a lot of money marketing like uh like we don't have our own uh football stadium like uh so far or something like that we don't we don't do that but uh you're our marketing and so if you want to um help us we'd appreciate it uh you share the show share the link on the show tell people where you watch or listen to the show but click the subscribe and the follow button and leave a five-star review mama said if you ain't got anything nice to say don't say anything at all so no need to leave one star if you don't think that well of the show just listen to something else it's okay but there's a whole bunch of you out there about 25 million of you so thank you and you are telling people about the

show and you are sharing the show it's's showing up everywhere. A lot of questions this week about taxes, because next week's the week we got a file. It's confusing. One of our listeners says, Dave, what happens if I can't afford to pay my taxes? You go to jail. They arrest you. Actually, they do. But that's not the correct answer to the question but on april 16th because we're not going to do nothing okay you okay when

you say you can't afford to pay your taxes that's wrong okay because if you have taxes it's because you have an income and your taxes are not greater than your income. Correct. So you can afford to pay your taxes. You just have to prioritize taxes before anything else, and I do. I pay my taxes immediately, do not pass go, do not collect $200. So number one, you've got to make it a bigger priority, and if you've gotten behind because, like, you're self-employed

and you didn't pay your quarterlies and you got a big bill coming due or something like that, and you can't afford to pay that on April 18th this year, then that's a different kind of I can't afford, but I can't afford, period. Okay? So if that's the case, what you always do is you always file on time. They actually will not put you in jail for failure to pay. They will put you in jail for failure to file. They will put you in jail for failure to file. Okay.

2,579 people went to jail last year. Really? Failure to file federal income tax. It is a federal law. So file even if you don't pay. File your taxes and then call them and get on a payment plan with them. It's horrible. The interest rate's ridiculous and the uh uh

penalties are ridiculous and all that but you know you start paying a few dollars a month you can keep them at bay for a very very long time while you get your crap together and just get them paid off but ignoring them is not an option let me just tell you most things that you ignore that are bad get worse. When you ignore them, taxes get worse 10x if you ignore them. They get nastier, meaner, not filing, not paying, not being on a plan, not developing some way to get the KGB, I mean the IRS, out of your ear hole is not a good idea. You have got to deal with this. You've got to deal with it.

Anybody that doesn't deal with problems has bigger problems, and the IRS is a super big example of that. I am not scared of the IRS, and I am not a promoter of the IRS. Neither one. They hate me because I make fun of them. They love me because I tell people to pay their taxes. Number one, it's a matter of integrity number two it's the law number three you're gonna screw up your life running from these people so you don't want to do that so if you set up a payment plan and you're paying two hundred dollars a month and you owe them four thousand dollars

then go get you five jobs and pay the four thousand dollars000 right now, right? Do it right now, like yesterday, and figure out what caused you to get behind in the first place and don't ever do that again so that you're never here again. So it is one of the worst bills, one of the worst debts that you can have because the interest and the penalties are so high and they have almost unlimited power to get to get your butt in trouble so not dealing with it is the worst possible thing you can do file on time even if you can't pay filing an extension does not

extend your your demand to pay if you owe a thousand dollars and you file an extension and you don't pay the thousand dollars you're going to get penalized intact and interest on all that so you do not you have to pay even if you file an extension if you if you have the money so don't pay something else but pay these people there's no i mean being behind on your credit card whoopty doopty being behind on your credit card, whoopty-doopty. Being behind on the IRS, that is a bad idea. There you go. So if you need some help with taxes, go to Ramsey Smart Tax. We can help you. We've got an online filing software that's very inexpensive to use. Get filed.

If you've got a problem like this, you could get with a tax professional. If you've got a complicated return, you can get with a tax professional. RamseySolutions.com slash smart tax or get one of the ELPs that if you've got a complicated situation, they can help you. Guys, do not ignore the tax thing. And I guess the last thing we'll add one more time because we talk about it all the time is if you're getting a refund, stop being stupid. You should not be getting a refund a refund is what you get when you take a shirt back to the store and they give you your money back that's what a refund is they're giving you your money back you have paid too much in to the irs it's still your money it's not magical it's kind of like you know you ever put $20 in a coat and forget it,

and next winter you put the coat on? I feel like I won something. And put your hand in your gut. $20! What was your $20, stupid? But it's been in the coat all winter. Why are you so excited, you know? That's the same thing as a tax refund.

It's exactly the same deal, okay? So you have a savings account with a government that pays no interest. Dumb. Santa Claus is old like me i know him personally he does not live in washington dc as a matter of fact he doesn't even like going to washington dc because there's so few good boys and girls there it's it does it is painted like the government's hooking you up it's like we love you so much here's a check we're going to increase your refund this year, which means we're going to increase how much that you overpaid. That's what that is. So it's dumb.

Don't do that. Dumb, dumb, dumb, dumb, dumb, dumb, dumb, dumb, dumb. Amber. Amber is with us in Washington, D.C. One of the good boys and girls in Washington, D.C. Hey, Amber, how are you? I'm doing good. How are you?

Better than I deserve. What's up? So just to keep it short, I'm doing good. How are you? Better than I deserve. What's up? So just to keep it short, I'm about 30, I did the calculations, I'm about $38,000 in debt. That includes a $24,000 car loan, a $7,600 credit card, that's one credit card, a six thousand dollar personal loan um due to my separation it has caused me to be in debt i got separated last year um husband kind of left me and our three children with nothing took the car which is why i took out a personal loan to put a down payment on the car um then you bought a car you couldn't afford exactly how much do you make How much do you make, kiddo? Annually, my take-home is about $45,000.

And last year, it was way less than that. Yeah, honey, when he left, it broke your heart, and you were living in a fog and you made a major mistake you bought a car you bought a car that you cannot afford and the car is killing you it is yeah my monthly payment for that car is five like 570 a month um you know i'm i'm afloat on everything but um you're barely making it i'm not i nothing is behind but you know yeah but you're barely i mean you can't breathe yeah you can't breathe yeah i cannot i'm so sorry i'm sorry honey okay here's what we're gonna do stop stop stop stop stop here's what we're gonna do we're gonna help you okay i'm gonna put you in our nine-week class financial peace university i'm gonna pay for it okay and i'm going to set you up with a

coach that's going to walk with you and help you get this mess cleaned up because i've been where you are where i'm too scared to think and you're not thinking you've got to get rid of this car and get your cheap car that you pay cash for it's going to be hard but we'll walk you through how to do it because this is not sustainable and let me this. I hear you wanting to explain. But before this, everything was okay. And you're not a bad person. And you're not a failure. You just made a mistake. And your husband left you.

He walked away. So there's no need to apologize. Let's look forward. And let's get this mess cleaned up moving forward. Yeah, learn from the mistake and never do it again. That's right. And we will walk with you. We'll help you.

I'm going to put a coach in your corner. I'm going to pay for it. We're going to put you in Financial Peace University. I'm going to pay for it. You don't have to pay anything. All you got to do is do the hard work, kiddo. We'll walk with you. And you call us anytime you need help.

That'll get you started because you've got a complicated situation we can't fix on the radio today. This is The Ramsey Show. Dr. John Deloney, Ramsey personality, number one best-selling author, host of The Dr. John Deloney Show on podcast, a Ramsey Network experience. Don't miss all of that. You don't want to miss any of it. In the lobby of ramsey solutions on the debt-free stage paul is with us hey paul how are you hey hey dave how are you doing better than i deserve man where do you live i live in somerville new jersey cool welcome to nashville thank you how much debt have you paid off paul 110 000 good wow good for you how long did that take? 44 months. Wow. And your range of income during that time? When I first began, it was $70,000, and I'm now at $105,000.

Cool. What do you do for a living? I'm a senior data engineer for a healthcare technology company. Wow. Good for you. Great job. Good, good, good, good, good. Okay.

So $110,000 was what kind of debt? $100,000 of it was student debt, and $10,000 of that was a credit card. Okay. What did you get a degree in? My undergrad was mathematics and my master's was in business analysis. Good. Good for you.

Very cool. So about four years ago or so, something clicked and you said, I got to get this paid off. What happened? So we actually need to go back to 2017, February 4th of 2017. That day, I left a domestic violent relationship. My life was threatened.

And I had to leave with nothing but my clothes on my back and my book bag. Wow. And I went back home. And so I went through therapy, and through therapy, me and my therapist worked together to make a game plan, and that was October of 2018. I actually have the notes in my back pocket. It was October 27th, 2018 and we made a game plan to envision a life without debt because

not only was I physically abused, emotionally abused, I was financially. I allowed for my student loans to go into default, and I rigged up credit card debt. And so because my loans went into default, I worked in 2019 to get them back into standing grace um and then 2020 then uh 2020 came and the interest rate went down to zero and game on that yeah exactly yeah um it sounds like you really uh went through an amazing healing process and that this therapist did a really good job. Yeah, she very much believed in me. I tell you what, I'm so dumbfounded that you found an incredible therapist because most therapists are going to, I don't say most, the ethos around the field sometimes is, wow, look what happened to you. And your therapist said, okay, we got this giant mountain. We're going to work together and we're going to climb this mountain.

We're going through this storm. We're not going to sit here and go around it. It's incredible. Your therapist is a hero. And you are a hero for following the plan. Thank you. And, John, if I could say in that meeting on 10-27-2018, her words to me were, if you don't do it no one else will and that that struck that struck a chord that struck a chord and because um and

calvary is not coming i um in um in my time in um in my domestically violent situation, there were times that I did live in the red. There were times that I didn't know where my next paycheck was. But you taking control of all these different components of your life was your healing journey. Yes. That was so, because you, instead of being a being a victim you took you became a victor yes you got hero status and took control of each of these different areas and said okay that's not me that's not me that's not me i'm a guy who pays this stuff off and you reset your identity and took off man very good work how does it feel right now oh man you're amazing um To think that, so when my loans came out of default,

which was February of 2020, which was literally a month before the national. Yep. I was literally at 90,000. And then literally the week before Christmas, I paid my last of this past year in 2022, I paid off my last student loan. That's amazing.

And I feel overjoyed. Yeah. And when you watch this back, when you watch this YouTube clip, I want you to look at your shoulders and your body posture when you're talking about your past, and then look at yourself right now, man. Like your whole, everything about you is different. That's amazing. Thank you, John. You changed the way you were standing when you were talking about your past and then look at yourself right now man like your whole everything about you is different that's amazing thank you john you changed the way you were

standing when you're talking about it it's pretty pretty cool thank you very cool so proud of you man thank you dave very very well done all right one more time i want america to hear what your therapist said on in october of 17 or october of 18 she said paul if you don't uh if you don't do this no one else will okay people in case you think joe biden's gonna pay your debt there's your answer if you don't do this no one else will i love you i'll help you i'll kick your butt i'll hug your neck i'll be there with you i'm not paying your freaking debt if you don't do this no one else will paul's got the formula paul did it paul did it i love it i love this guy and i love it you're a math major and the math didn't matter here because the math said it's 0%. It's not adding up.

Let's just put it aside. And you went with the heart route, and you said, I'm getting this stuff off my chest. I'm going through it. You don't do this. You didn't. No one else will. I'm so proud of you, man.

It's amazing. Welcome to your life. Thank you. If you don't fix it, no one else is going to. Man. How good does it feel to be free? It's powerful. Dave took the words right out of my mouth.

Like, yeah, I have a new life, a life that compared to where I was to where I am right now, it's, yeah, no words can explain. Yeah, powerful, man. So powerful. All right. can no words can explain yeah powerful man so powerful all right now when someone says to you how did you pay off 110 000 what do you tell them the key to getting out of debt is consistency um is um there were times like there were times last year last year alone i paid paid $45,000 in debt, and I had to sacrifice a few things, a trip here, a trip there. You sacrificed a lot, Paul. It's okay to say it. You sacrificed a lot.

It was worth it. I sacrificed contributing to my 401K for one year, and that equaled to even more money going towards my student debt and um i like just to say if anyone's um it's pos it's possible um it may seem like a mountain, but once you get it going, you see the little victories, and then you see it gone forever, and then before you know it, all of it's gone. Amen. Hey, we got a copy of Baby Steps Millionaires for you, latest number one bestseller, because you're going to be a millionaire.

Thank you. That's where you're going. Thank you. And we got a copy of Total Money Makeover for you to give to someone else and give them the hope that you found. The same with the Financial Peace University membership. All of that is the live and give box, and you can live with some of it, give some of it, pay it forward. You're amazing.

So proud of you. Thank you, Ted. Great, great story. Hats off to your therapist. Great job by a professional doing what they're supposed to do, helping you own this and taking control. The secret to getting out of debt, people, is nobody's coming. You're going to have to do it.

That's the secret. As soon as you realize that, then all of a sudden the math starts working. It's an amazing thing. It's just amazing. The Calvary is not coming over the hill. I don't care if you hear trumpets or not. It's not a Calvary. They're not coming.

You have to do this. Paul from Newark, New Jersey. Rockstar hero. $110,000 paid off in 44 months, making $70,000 to $105,000. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free!

Yeah! Yeah! Woo-hoo-hoo-hoo! Love it! This is The Ramsey Show. Dr. John Deloney, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Our scripture today is Proverbs 24, 16. For the righteous falls seven times and rises again,

but the wicked stumble in times of calamity. Alice Cooper said, Mistakes are part of the game. It's how well you recover from them that is the mark of a great player ben is in knoxville hey ben welcome to the ramsey show thank you for taking my call sure what's up um i have wanted i wanted to ask uh what your thoughts were on fractional real estate investing i've noticed there's uh been kind of a trend towards that and a couple apps that offer that. And I know that real estate is there's a shortage in houses overall, and you don't advise for getting into debt. I just wanted to hear your thoughts on all this stuff.

Yeah. Well, in terms of buying rental property, I would buy it and pay cash and own it, or I wouldn't do it. I wouldn't do fractional. If you are not in a position to buy real estate, and that's why fractional seems appealing to you, then what I would look into is,

if you're at that stage in the baby steps to do investing, you can look into an REIT, a real estate investment trust. It basically functions like a mutual fund that buys real estate. And so you get the marketplace benefits, the returns of owning real estate, managing real estate, but you can buy into it with a few dollars like you would with a mutual fund. I mean, you can get in a mutual fund for $1, hundred five thousand bucks you can get in reits for the same kind of money and you can pick those up with your smart investor pro in the old days like when i first started this show reits

were new and they were they were they were killing their uh stockholders with are their their shareholders with fees and so the net returns to the shareholders weren't very good they weren't keeping up with growth stock mutual funds. Today, the better REITs, the good ones, are getting comparable returns to good growth stock mutual funds. So you're going to see 10%, 12%, 14% rates of return in a REIT. And if you're not in a position to pay cash, which is driving your fractional discussion, then the problem with fractional is that you don't have any control.

And, you know, for instance, I talked to a friend of mine that they were looking at buying into a small business, and he was going to own 40%. You're what's called a minority shareholder, which also translated means you're up a creek because you have absolute they can they can run the thing in the ground they can make all kinds of bad decisions and you can't do anything about it because you can't outvote them and that's what you got with fractional they could run the property poorly they could choose the property

poorly they could sell the property at the wrong time for too little and you got no say there's very fractional is just i'm not a fan hey when you own real estate depending on which um instagram you're following at 3 a.m one will tell you the point is cash flow one will tell you the point is somebody else pays off the debt that is the equity on a teeter-totter what's more important this cash flow that these properties produce over time or the equity they produce as the house goes up in value or maybe i've made the most money on appreciation okay on the equity the increase in values okay increase in values um i make good money on the cash flows,

and there's basically three places you make a rate of return in real estate. The increase in value, the cash flow, and the tax advantage, because you can depreciate them. Right. So you're sheltering some of the income. So those three things actually create an actual dollar return to you. Of course, the appreciation you do not realize until you sell the house so you don't you know if you got a house you bought a house for a half million it goes to two million

you don't get that million and a half until you sell it so uh but those three things together in real estate are calculated in what's called an irr an internal rate of return okay and uh it's all three of those components mathematically added together. And on a piece of residential, my typical residential, I'll cash flow 8% or 10%. And my IRR. Of the total value? Yeah. Okay. Yeah.

My IRR on that thing, no, of what I paid for it. Or no, total value. I'm probably cash flowing a lot more than on what I paid for it. But my IRR over a 20-year holding period is probably 17 or 18 okay so that's probably what i'm making on it total okay but uh uh but again it's not i'm not i'm not putting that in my pocket today so uh real estate's a little different in that regard um and there you go okay andrea is with with us in Fort Myers. Hey, Andrea, welcome to the Ramsey Show. Thank you. I have a quick question. My grandparents are having my mother the

executor of their will. They live in a different state. Does it make sense for my mother to have her name on their bank accounts for Seamless list or not until the time comes it wouldn't hurt uh how old are they they're in their 80s yeah i would and the only reason is this it absolutely affects nothing except okay if both of them passed away and her name is not on the account she has to go to the court right quick to get control of enough money to begin to run the estate, and she's the executor of the estate. Okay? It just makes it, it adds a step, and it makes the first two weeks following death more clunky.

Okay? But I wouldn't do this if you were 52. You're 82, though, the people we're talking about, okay? And I'm not suggesting they're going to pass away this year, but they're more likely to statistically than a 52-year-old. I'm 63. I'm 62. The executor on my estate is not on my checking account.

Okay? Well, actually, she is because it's Sharon. But if we both died, the third party but if we both died the third the third party if we both died in a car wreck tomorrow uh the the the executor isn't the third party executor is not on the account that's not what they're not what's happening so uh all of that to say uh you know when when we are approaching the end of life, either statistically because of age, which we can say that in the 80s, okay, or, you know, you're fighting a terminal cancer diagnosis or something like that, then, yeah, go ahead and put the executor on there because it's going to make the first three weeks following death much smoother. Does that make sense? Are there not there okay that works too but that's it so you're not supposed to say people die but anyway they do i do i say it all the time though they do they do we've done 100% detailed research you're not getting out of this alive 100% um i

actually i actually like this dave i've just sat with people who um somebody loves they love passed away and their job is to handle what happens next and man having to go through a court system to get your name on a checking account such a pain just have it on there it's great yeah yeah it just uh but you don't have to do that 25 years in advance either no that's weird that's clunky and weird and not respond i mean you know so if something happened to share me today they'd have the clunky yes but uh but life happens there but on this one but yeah where you're dealing with uh people in the in the later decades of life life laugh but the uh oh my god or the uh uh or you're looking at a terminal illness or something like

that that's when you would do that kind of thing so yeah that that's that does make sense in her case that's what i would do but it's not a it's just a it's not a philosophical thing it's not a a principle that you if you don't do this you've done it wrong it's just tactical like you know you just got access to the money to pay the funeral home you know you got access the money to uh take care of the light bill at the house that didn't get paid that month well and hopefully it's part of a grander conversation about hey i'm this old now i'm i'm gonna go ahead and park the car and i'm this old now and i'm gonna review the will with you and i'm this old now and i'm gonna go ahead and put you in the checking account.

As a due diligence, you're going to love the people who, your family members that you're leaving behind so much that you're going to get over your fear and over the awkwardness of having these conversations. And you're going to make sure everybody's on the same page. It is the most functional, relational, functional thing that a family can do. Such a gift. And the more dysfunctional the family, the less likely it is that they're going to do this. And they're the ones that really need to do it. Because if you're going to piss somebody off in your will, you ought to do it while you're alive.

At least that's the only way you get the benefit, right? Yeah, you can tell them about it. You're on cocaine, you're getting nothing. Just go ahead and tell them now. So they can be pissed now. Or the way I told Sheila, I said, I want my funeral to be like this. And she said, I'm not doing chores for you when you're dead.

When you're gone, I'm going to decide what's happening. There you go. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, it's Dr. John Deloney. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramsesolutions.com today

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