The Ramsey Show - App - I'm Hesitant to Invest in Real Estate in a College Town During COVID (Hour 3)

Episode Date: November 27, 2020

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave 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. Chris Hogan, Ramsey personality, number one best-selling author, is my co-host today here on the air as we talk about your life and your money. Open phones at 888-825-5225. That's 888-825-5225. Michael is in Oklahoma.

Hey, Michael, how are you? Hi, Mr. Ramsey. I'm doing better than I deserve. Good. Just the same, same sir how can we help um well i've been listening to you uh you know your little mini shows on youtube for the past uh about two months um came a little late to me um i'm 26 the uh in february i started looking for a vehicle a more dependable vehicle and my brother's a car salesman um yeah i went there with a budget and uh came out with a car yeah um yeah i found a truck i liked um it was outside my budget i left i come back the next day uh my dad and brother have a surprise for me they went ahead and got it and my dad did it under his um you know took a loan under his name and so now i'm obligated to pay it and uh it's way out of

it's 200 over what my budget was originally and i'm it's making me bleed like a pig yeah well thanks dad uh so when you're selling it and then you know i i want to sell it i think that's what i need to do yeah uh it came from a place of love and i think you wanted me in a nicer vehicle um but it's it it's just not working out for me you know okay the uh so you know that the answer is to sell it and uh i i had one more question if you have time real quick. I'm a diesel mechanic here in Oklahoma. And are you there, Mr. Ramsey? Yeah, we're here.

Yeah, go ahead. Sorry, guys. And I'm working for my boss, and I've been working for him going on two years and, you know, haven't had a pay raise. So I'm making $12 an hour as a diesel mechanic, and how do I approach him about, you know, that aspect? Have you got any of the certifications as a diesel mechanic, or you've just been working there with him? No, I was in the Navy previously. I was an aviation structural mechanic. And before that, I went through high school and went through VOTEC and got all my ASC certs. Sounds awfully cheap, $12 an hour.

Like, way cheap. I mean, I think I know these guys making $60,000 or $80,000 with what you're doing, don't you? Yeah, the ones out in the oil field are making a lot of money. They're making more than that in the oil field. Yeah. But I'm talking about just a straight-up diesel mechanic, you know, plus or minus some overtime, anywhere from $60,000 to $90,000 is the ones we're running into, Chris. Michael, do you have any openings?

Have you done any research on other availabilities in that in that market a bunch of indeed and um you know i there's there's openings um it's uh it's i just stay so busy and my budget is so tight that if I take a day off, I'm shooting myself in the foot. So it's kind of like I can't afford to do it, but I can't afford not to do it. Okay. Have you investigated what the openings are paying, Michael? I mean, they're starting out at $15 an hour, you know.

So, I mean, they're starting out more than where, you which is still low that's still low yeah i would say this buddy here here's the thing we gotta get your confidence back so first of all let's get rid of this truck uh let's get go find out exactly what the payoff is for a 30-day period uh go look up on kelly blue book get intentional about getting this thing out of the life uh go ahead and have the conversation with your dad and let him know, hey, this is not something you can afford, point blank, and don't go backwards there. The other thing I'd do is I'd go sit down with their employer. Let's be adults. Be straight and talk about, hey, this is where I am.

This is what I'm striving to do. What more do I need to show you? What can I do? But, Dave, I think he's got to – Here's four job offers in the open market that pay 15 to 20 an hour yeah and you're paying me 12 and i'm not threatening you i'm just saying what have i got to do to be worth that to you uh so because i don't really want to look elsewhere boom and if someone comes in and sits down with me as the owner of

this company and says hey you know i i do this for you, and there's a whole lot of people paying a lot more than that. I mean, I may say, well, you probably ought to go talk to them, or I might say, gosh, I guess I'm underpaying. Let's look at it. Right. You know, and we'll do a little compensation study. We do regular compensation studies around here, but a lot of small businesses don't do that, and they just overlook it, and then they look up and they lose somebody good

because they didn't have a conversation. Well, and Dave, the other side of it is that you have the person that's on the team that's having this feeling that never outwardly communicates it, so they never give the person a chance. But don't come in and say, I think I'm worth more money. No. Or commanding. And don't be belligerent. But come in and go, hey, look, here's three things in the paper that are paying $15, and here's one that's $17, and here's one that's $20. And, you know, this is what's out there, and it just feels like $12 is not the market anymore.

And tell me what I'm doing wrong or what I need to do more to get to be worth what those are paying, because I don't really want to answer any of these ads. I like being here. Boom. And that's a, you know, somebody does that with me as the employer, they don't get any shame from me they go oh it might be a wake-up call it might be i go you know what we just don't have it in the budget to do that if you can get that you probably ought to go do it that's right that's what's good for you i might i've told people that too but uh and you might hear that he might be going twelve dollars it dude um and then but at least you can get it out there and you that's how you approach them you approach them with evidence and with humility and with open communication.

And then that no, and if an employer does not react well to those things and is inappropriate or angry or something, then that means they're a jerk. Yeah. It doesn't mean you did it wrong. But let's get your head space back, because so many people will play this over and over in their head instead of verbalizing it outward. Be proactive. Johnson's in San Francisco.

Hey, Johnson, how are you? I'm doing well. How are you, Mr. Ramsey? Great. How can Chris and I help? Thank you so much for taking my call. So I'm a 24-year-old college student, and I was raised in a family who was not great with finances. So I made a lot of credit card mistakes in my early 20s.

And pretty much I had 13 credit cards, all defaulted to collections. I paid a deposit on a debt relief consultant who was going to be in charge of negotiations and pay to delete and credit rebuild. But I realized after watching your videos, I can do them myself. And I really want to take control of my finances this year. So I learned your system, and I should be finished with baby step number one this week. Good. And, yeah, thank you.

And, however, my question was, I only have three of the collections showing up in my credit report. Do I only worry about those three? No, you've got to get them all. They're all going to show up eventually, and they're all debts that you legitimately owe. Yeah, and you've got to go look at all three credit repositories, TransUnion, Equifax, and Experian. Don't just go with one. Get a tri-merge of all three so you can see what's going on. Then you can do debt verification.

Then you can start to deal with them, my friend. You've got to clean them all up. And stop thinking you can hand this off to someone else. You need to handle this. Don't pay the company. He's doing that. You've got to clean them all up. And stop thinking you can hand this off to someone else. You need to handle this. Don't pay the company. He's doing that. Yeah. You've got this.

You can do it. As we continue to face challenging times, I hear that a lot of you have been calling Zander Insurance to see if term life insurance plans are still available. The good news is the insurance companies are starting to loosen up the restrictions that they had put in place at the start of the pandemic, making coverage available to even more people. So, if you haven't dealt with this yet, I'm not sure what you're waiting for. Regardless of what's going on in the world, we're going to get through it. But the responsibility of protecting your family has not changed. Let this crazy season motivate you to get your priorities in order and check the big things like life insurance off your list.

Rates are still low. Xander makes the process simple, and most of you have the time right now to deal with this. Call 800-356-4282 or visit zander.com. Zander's team will get you the affordable coverage to give your family the peace of mind they deserve. We'll be right back. Ramsey Personality, Chris Hogan is my co-host today here on the air. Open phones at 888-825-5225. John is with us in Philadelphia. Hi, John. Welcome to the Dave Ramsey Show. Hey, Dave. Can you hear me?

Sure. What's up? Hey, kind of a simple question for you today. I'm 22. I have no credit. I was wondering if it was good as a beginner to get a small amount of credit, say $300 or so, with unsecured debt for credit worthiness, I guess. So you want to be worthy to borrow money and go in debt? Yes. No, I'm just kidding.

Well, that's credit worthiness, right? Okay. Well, I didn't know because my dad always told me that this is an important thing, and then I started watching your show a couple months back, and I'm starting to realize, hmm, maybe it's not such an important thing, you know? But, John, not only you're 22 and you don't have any, why don't you have it?

I don't know. I just never started. Well, that's a blessing in disguise, my friend. All right. That's wonderful. I'm glad to hear that. So here's the thing. You're right.

The culture, including your dad, everybody says you need credit because everybody has been told by the banking industry for 75 years that the best way to become prosperous is borrow to buy the stuff you want. Right? And so it's become culturally accepted that that's the way to go. However, that's a bill of goods sold to us by a villain known as the bank because it built large towers in our skylines, and they all had bank names on them. It didn't build a large tower in your living room, because all your living room money from your dad went to that bank. And so the borrower is slave to the lender is a very real thing and what we have discovered is the shortest least risk path to wealth is to not have any payments and then the question always comes up well don't i need to get some payments so that i

have credit why so that i can get some payments so that i have credit why so that i can get some payments so that i have credit and debt why and so the the point being that um we tell folks to um you know stay out of debt because it's the shortest path to wealth that's what it comes down to and you already discovered that watching our videos right yeah okay and i understand it's countercultural but if you look around the culture most people are broke exactly yeah and john let me let you in on this um i worked in the industry the banking world for about 12 years and didn't understand really the fico score until i joined dave's team and the fico score measures how much debt you have the type of debt you have, the likelihood

that they'll give you more debt, and how you've paid debt. There's a theme there, and that it's not a matter of how wealthy you are or how well you're doing. It's how you're doing with debt. So, no, sir, you don't need to bring on any debt in your life. I love the fact that you've avoided it at 22 and want to continue to encourage you to avoid it like the plague. Like the plague. There is nothing positive that's going to come from it.

And I promise you, your mailbox is going to start to get some offers. You're going to start to see it and be more aware of it. And I want you to have that mindset ready because as soon as you let your guard down, that's when stupid will creep in. Yeah, stupid will sneak up on you. Yes. Anthony is in Kansas City. Hi, Anthony. Welcome to the Dave Ramsey Show.

How are you doing? Great. How can I help? I have about a half million dollars in my checking account, and I have had it in there for a couple of years. I'm trying to figure out exactly what to do with it. My plan was to use it for real estate, but the real estate market's got me a little spooked right now. Why? We live in a college or close to a college town and the market there, they've built so many brand new complexes in the last 10 years.

Yeah, and then nobody's going to college. Okay, I'm with you. Exactly. The enrollment rates are going down, you know, so I'm a little bit leery of that. So what town are you in? I'm Manhattan, Kansas. Yeah, okay. All right.

So you're far enough away from Kansas City that you're probably not investing in Kansas City, right? Correct. Okay. Anthony, how old are you? I'm 45. Okay. You've done a great job. Yeah, you have.

Are you planning to stay in Manhattan? That depends. Don't necessarily need to. I have a hobby farm. I'm an electrical contractor by trade. But my real estate holdings, I have a couple rental properties too, but I have about a million and a half in real estate. That's all paid for.

About $100,000 in cash. $500,000 in my checking. About $400,000 in other assets like track loaders and tractors and you're a stud well done so proud of you it's got to feel great man i mean you really did it and i'm assuming you did all this i'm assuming you did all this starting from nothing correct i had nothing inherited nothing way to go well here's what i would do if i woke up in your shoes and i find myself in similar situations from time to time i'm between real estate deals and i need access to the cash when i get ready to do the next real estate deal that's where i find myself it's where you find yourself because you're not going to drop that half million into manhattan you've made that

decision i'm not going to recommend if you listen to me for more than 20 minutes you know this to be a long distance landlord and so what i'm going to end up doing is just parking this probably in like an s&p 500 uh you know a no load fund there's no commissions and just ride the market with it a little bit while i'm waiting to decide what i'm going to do and one of two things will happen one of three things will happen. One of three things will happen. You decide to stay in Manhattan, and the market gets soft, as you predict, so you will not pull that money out and buy in Manhattan. So you're probably going to turn and invest it in some other vehicle for probably some mutual funds or something.

Number two thing that could happen is you move, and you're living in whatever, Kansas City, and you've got a great market to invest in. Then you pull the money out and you invest it then. What was the third thing that could happen? The third thing that could happen would be Manhattan bounce back, the college market firms back up, and you feel good about investing in Manhattan again, pull the money out of the S&P and invest. So you're parking it until something else moves,

another variable moves in the situation. Okay. But checking account's not okay. Yeah, and I realize that. But you know how it is. Time kind of flies when you're having fun. And I'm sure your bank is reaching out blowing up your phone with all their ideas and thoughts real helpful right now and anthony mr drysdale's on the line there's

a ball mr drysdale's on the line there's a fourth option you may begin to look at something that gets to be on sale where you've got someone that has to sell or is looking to sell, and now you've put yourself in a situation to start to have some conversations about potentially buying. Yeah, that could happen as the market heals in Manhattan, that somebody couldn't quite survive the turn, and it's making an upward turn, and you're comfortable with it, that could result in a really good purchase. Oh, great deal.

Yeah, that's a very, very good point. Dr. John Deloney is, you know, one of his 332 degrees he's got. He's got more degrees than a thermometer, is in higher ed. And he's talked about with you and I and a bunch of us behind the scenes and even somewhat what on the air, that to the extent that because of the student loan debacle and because covid sent everybody home and they realized uh these colleges are trying to charge us just as much sitting at home um i'm not getting like the college experience i don't see any ivy on the

walls here right at my house uh so to those two things hitting together are accelerating the demand for college degrees. On-campus living college degrees. They're accelerating that demand dropping. Right. It's been dropping. For a while. We saw with the student loan, the COVID thing has pushed it over the edge. Yeah.

And so we are seeing some things like he's describing a college town like Manhattan, which is what, Kansas State, right? Yep. It's Kansas State. And so, you know, we're seeing so many smaller towns where the economy is driven by college students. That's right. It's affecting their economies. It really is.

There's a lot of those around America. This is the Dave Ramsey Show. Thank you. in the lobby of Ramsey Solutions on the debt- Free Stage. Joining my co-hosts Chris Hogan and I. Today is Ronnie and Belinda from Greenville, South Carolina. Here to do a Debt Free Scream, baby! Welcome, guys. What's up? Not much. Glad to be here. Well, we're honored to have you. How much have you paid off? We paid off just about $210,000.

Whoa! How long did this take? About three years. Okay. And your range of income during that time? Started at about $125,000 and got up to about $175,000. Very good. What do you guys do for a living?

Physical therapists. Both of you? Both of us, yep. All right. You got great practices. That's very well done. Yeah, thank you. Very well done. What kind of stuff did you pay off of us, yep. All right. You've got great practices. That's very well done. Yeah, thank you. Very well done. What kind of stuff did you pay off?

All student loans. Yeah, I was going to say about $500 in credit card debt and about $209,500 in student loans. Whoa. Okay. Wow. So a couple of PTs had to get their diploma out of hock. That's right. That's right.

I love it. All right. So who decided to get serious first between the two of you well i think probably me first just because we graduated from different classes okay so um when i first graduated i moved in with my parents and they kind of got me on the envelope system and then when ronnie graduated we both knew we wanted to get married and um we started doing the d Dave Ramsey way before we got married. And then you can talk about your living situation. Yeah, basically the same thing.

When I graduated the next year, I just kind of jumped right in on the same plan, which made it a little bit easier in some ways because we just stayed on the same budget, you know, like we were students and just kind of kept going until he got everything paid off. Okay, very cool. And Ronnie actually worked kind of a second job on the side when he started working where he got kind of this deal where he would work on the weekends and they would help pay for his rent. So that helped him save a lot of money and just get ahead.

Very cool. So, Belinda, your parents were financial peace parents? They love you, yes. Okay, so you're a financial peace baby. You married into the thing. Okay. Second gen here. All right.

Very cool, you guys. So you really never knew any big lifestyle that you had to cut down. You just said we're going to keep living like college students and clean this up, and about $70,000 a year goes away average over three years. That's right. That's right. Howdy. Yes, it is.

I mean, you're out there making serious money, goes away average over three years. That's right. That's right. Howdy. Yes, it is. I mean, you're out there making serious money, and your contemporaries who came out of PT school are still sitting on the same amount of debt that they were three years ago. They paid off none of it. Right. And they were calling you crazy. Some of them probably were. Maybe not to our faces.

I mean, it's just tough because, you know, like with physical therapy now with a lot of other medical field type professions, you just go to school for longer and longer and longer. And there's that delayed gratification that when you get out of school, there's that impulse that, well, now it's time to take the next step. If you have a lot of debt, you know, it's hard to justify, you know, that lifestyle. Belinda, what was the biggest sacrifice for you? I think for me, just that delayed gratification of, you know, getting a house, you know, sooner than I had anticipated because we're still renting right now. And but we know that's coming soon. So I think that's the biggest challenge for me.

That is very good. Ronnie, what about you? Biggest sacrifice? I would definitely say the house for sure,, just because there's that peace of mind that comes with owning your own property. But definitely renting is a little bit easier if you can know that you are tangibly working towards a goal that you're getting to pretty fast. It's temporary.

You can walk through anything as long as you're looking the other side of it. That's right. You guys are young, too. How old are you? I am 31. 30. Okay. As of Friday, she's 30.

Well, happy birthday. Thank you. All right. Very good. So, very cool. So, what do you tell people when they say, oh, you did the impossible. You paid off $210,000 in three years. You're weird.

You're impossible. That can't be done. What do you tell them the secret to getting out of debt is? Because it's not really a secret. I would say for me, and then whatever you think, but I would say for me, you've got to, number one, see success early. So you can't be frustrated that it's not all gone in one month because that's not going to be the case. It took a lot longer than that to get into debt, so it's not going to go the case. You know, it took a lot longer than that to get into debt, so it's not going to go away that fast. And then also, too, I would say you have got to be proactive

about seeking out your own opportunities. You know, along the way, you can't just say, I'm going to wait for good opportunities to come my way. You have got to really be proactive about seeking those opportunities out. Amen. Yeah. What about you, Belinda? I think just staying disciplined,

and I think it was really good because we celebrated along the way. Like, every time we would get $10,000 down, we would, you know, do something to celebrate, so it just made it go by a lot faster and just seeing the light at the end of the tunnel. Yeah. So, other than your mom and dad with the envelope system,

what connection did you all have with us? I've gotten a lot of your books as Christmas gifts. They're subtle. And we also got a, I mean, we were already kind of doing Dave Ramsey before we got married, but we did get Financial Peace University for our wedding as a gift as well. You're becoming more and more popular in the physical therapy world. Yes, you are.

As students come out, definitely. Wonderful. We're big fans of that world, so that's a fair trade. Very cool. Well, congratulations, you guys. I know your mom and dad are very proud of you. We're proud of you. Way to go, hero.

You took control of your life. This is an amazing thing you did. And if you can do this, you'll be able to do anything financially. If you live like no one else, later you can live and give like no one else. That's right. So we got a copy of Chris Hogan's book for you, Everyday Millionaires, because that's the next chapter in your story for sure. You're on your way to not only home ownership, but to being in an incredible, I mean, 10 years from now, you're going to be sitting in such

an incredible place financially. Well, and one more thing I wanted to say kind of along those lines, too, is I think with student loans, especially in our generation, there's a lot of disappointment coming out because you feel like your big mistake that you made was you went to school, you studied, you took the test, and you come out, and you have that debt. And people sometimes feel like their only avenue for getting out from it is these, you know, work service forgiveness, you know, nonprofit sign up 10 years of your life and

hope that they cancel it out for you. And this way really is just like you said, such a more reliable method of taking control of your own destiny, not waiting 10 years to see if, you know, someone's going to forgive you of loans. And it's just a much more freeing feeling, I feel like, than just waiting for the other option. I can tell you for sure that Ronnie and Belinda are a much more reliable way of getting out of student loan debt than the government getting you out of your student loan debt. That's right.

The government can't find its butt with both hands. I mean, you guys are incredible. Well done, you guys. Very, very well done. Absolutely incredible. All right, Ronnie and Belinda, Greenville, South Carolina, $210,000 paid off in three years, making $125,000 to $175,000, came out of school and just kept living like they were in school and did it, baby.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free. Yeah. Woo-hoo-hoo-hoo. Whoa. Well done, you guys.

I'm telling you. Oh, goodness gracious. Very well done. Man, that's incredible that is exactly exactly what you do that's right so anybody sitting out there with student loan debt and if you've heard your crazy family or stupid friends tell you it's not possible or stupid family and crazy friends but you just heard you've got a 30 30 year old 31 year old ronnie and belinda got rid of 209 500 worth by just buckling down and being intentional and uh that's how you do it you make a decision not just

once but every day and stick to it i'm proud of them young people and you know what most things in life, but almost all things in money, hurt at the beginning if they're going to be the right decision. Very few things are easy at the beginning. Right. So when someone says this is the easy way, you probably should run. That's right. Because most things that cause people to build wealth are painful today to live out later. One definition of maturity, emotional maturity for sure, is the ability to delay pleasure. Live like no one else so later you can live and give like no one else.

The Bible says no discipline seems pleasant at the time, but it yields a harvest of righteousness. Way to go, you guys. Wonderful job. This is The Dave Ramsey Show. Thank you. Our Scripture of the Day, Proverbs 4, 25 and 26. Let your eyes look straight ahead. Fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways. Alexander Graham Bell said, concentrate all your thoughts upon the work at hand.

The sun's rays do not burn until brought to a focus. Well, a lot of stuff going on out there in the real estate world records being set in real estate sales which is so weird during covet stuff but it's still happening people are buying houses like crazy and i if you're getting ready to buy a home right now you or sell a home you really need a high-protein realtor in your corner, real estate agent in your corner. And don't be dealing with opinions and feelings. These are too stinking expensive. Get the facts.

Our team has created a one-stop shop for everything homebuyers need to know. It's completely free. Check this out. Go to DaveRamsey.com slash homebuying and get the answers you need to make smart decisions. Joshua is in West Virginia. Hi, Joshua. Welcome to the Dave Ramsey Show. Happy to be here.

Thank you, Mr. Ramsey. Thank you. I have a question for you. Okay. The question I have is I live in a double-wide. It's a mobile home, and the problem is it's on my parents' property. And I've tried to talk to them numerous times about purchasing the property from them and putting it more permanently in my name. Currently, right now, I have a piece of paper that I had to sign with the mortgage company that's financing the double wide and it's basically if I ever had a fallen

out or anything like that then I would still be able to I guess keep the house here on the property but I've had some issues with my parents you know they don't want to sell me the property or anything else and it's going to cost me about twenty,000 to move it up or to move it from where it's at to a different place. And probably I'm looking at about $10,000 to $20,000 additionally just to find property. What do you owe on it? I owe $44,000. Okay. Well, what you're telling me is that this doesn't work long-term.

Right. That there's nothing on fire, per se, but it's not a good long-term plan. A, it's a double-wide going down in value. B, you don't own the property under it, nor are you likely to. So that leads us to the conclusion we've got to get rid of it. How are we going to get rid of it well uh my wife and i we thought about talking to a realtor about it and the real estate agent said that oftentimes they can sell them but they said it's it's very hard to sell it without

it being on a permanent piece of land. That's very true. And that's my dilemma. Yeah, that's very true. But what's your household income? Right now, I went from $35,000 a year, got a pay raise this year, and we should be making about $55,000 to $60,000 this year if everything stays the way it's going. Joshua, is this on a permanent foundation? It's under Stucco, yes.

That's what they consider as permanent foundation. Yeah, but it's not his land. It doesn't matter. Mom and Dad, do they have any money? No. Actually, for the past few months few months probably shouldn't say this but i'll just be truthful with you um my parents are both on disability and um we've been trying to help them stay afloat on their bills and it's been dragging us down financially as well

okay um well what i what i think is you're probably going to sell this mobile home for Okay. Well, what I think is you're probably going to sell this mobile home for $20,000 or $30,000 to a mobile home lot who comes and picks it up. And you're going to have to borrow the difference. This is like a car that you're upside down in is basically what it is. And then you're going to go rent for a little while somewhere until you get that note paid off, and then you'll save up your down payment. Are you a member of a good credit union, for instance? Currently, right now, I use a credit union as a bank, and the lender that I'm through with right now is also a credit union as well.

Okay. Then they may work with you to let you sign a note for whatever it doesn't bring. But you need to start talking to them about this house. This has to be sold. We have to move. And there's nothing on fire, but you don't need to be sitting here two years from now, still twirling around in all this dysfunctional mess we've had this going on since about 2015 2015 i was i was working in the coal

industry i was bringing 95 000 a year coal industry drops out more or less i get the the rug jerked out from underneath my feet and yeah that's when a lot of things started going downhill from there yeah well it went downhill when you bought this is when it went downhill because it's been going downhill ever since you bought it. So we've got to stop the bleeding and get rid of the thing. So let's have a goal of being out of the mobile home business, into a rental by next spring, and sign a note for the difference with one of the credit unions. So let's say you can get it sold for $30 or whatever, then you sign a note for $14,

or if you sell it for $20, you're going to sign a note for $24. It's just going to take you a while to dig out of this. But it's not going to get any better waiting because it's not going up in value. And Joshua, you are going to have to be proactive as you talk to this credit union and to this lender that this isn't something that's optional. This is not something you're thinking. This is a five-year struggle.

And this is the direction you're going. And explain to them your situation. And you're going to have to follow up on it. Don't wait on them to make a decision. You follow up with them and call and call and call until you get an answer. I've got to finance the difference or I'm handing you guys the keys and you can come get it. Well, you know, this is the if they won't work with you we're gonna have to have some other conversations here deed in lieu of foreclosure yeah this is not gonna go well yeah but it's

gonna mess up your life if you go that route i would much rather you just sign a note for the difference and get rid of it and um then lesson learned mobile homes go down in value. They are not something you buy. And lesson learned, I don't put mobile homes or houses on other people's land. That's exactly right. Even if it's my parents. And that little piece of paper means nothing. Yeah. Yeah.

Well, it doesn't. It allows him to sit there and allow him to get the mortgage on the mobile home is all it was. But, yeah, it's problematic. And it sounds like your parents are in a mess, too. So I'm sorry. Sorry you guys are facing all that. Open phones at 888-825-5225. Cheryl is with us in Chicago. Cheryl, short on time, go straight to your question.

Hi, Dave. Hi, Chris. I was wondering if age is a consideration when deciding whose retirement account to fund more so i'm 45 my husband's 53 should we put you putting more of the 15 into my 403b or more into his 401k i probably put a little bit more into his unless all things being equal now if you've got great mutual fund options and he doesn't, we're going to work it out. But the question is, when he retires, will he have enough in his nest egg at your current calculations to retire at 65? We both have a traditional pension, and he also has $32 000 roughly as of you know the last few days

then it doesn't matter 401k it doesn't matter you got plenty of time it's going to grow to plenty you're going to be all right you've done a great job and um so no because i mean if he had nothing in there then we might say hey weight it more heavily to his right so that he has something when he gets to 65 before you get there but he he's got a pension, and he's got half a million dollars, well, by then a lot more. You're going to be just fine. So put the money where the best mutual funds are or whichever one will give you a Roth option or both. But, yeah, pick the best investment option. I think that's the right plan, Dave.

And, again, make sure your plan is coordinated. So sit down with a SmartVestor Pro and kind of look at how you guys are invested overall, and then do your RIQ. Talk about that high-definition dream of what it is you want to accomplish later in life. There you go. That's how it's done. Yeah, that's Chris's stuff. If you check ChrisHogan360.com, he's got the retire-inspired quotient there.

They get your retirement IQ so you know where you stand on that stuff. Chris, thanks for hanging out today. Thank you for having me, Dave. That about puts this particular hour of the Dave Ramsey Show in the books. Our thanks to James Childs, our producer, and Madison filling in for Miss Kelly today. I am Dave Ramsey, your host, and 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 Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you heard about an event, product, or service and didn't have a chance to write it down, don't worry. We list everything you've heard about during this episode in the podcast show notes section or head over to DaveRamsey.com and click Dave Recommends. Thanks for listening.