The Ramsey Show - App - Invest Your Money in REAL Investments (Hour 1)

Episode Date: July 8, 2019

Take control of your money once and for all. The Dave Ramsey Show offers up straight talk on life and money. Millions listen in as callers from all walks of life learn how to get out of debt and start building for the future. Check out the fifth most downloaded podcast of 2018!   Tools to get you started: Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE     Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

Live from the headquarters of Ramsey Solutions,casting 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. I am Dave Ramsey, your host. Thank you for joining us, America. We're glad you're here. Open phones at 888-825-5225. That's 888-825-5225.

Vicki starts off this hour in Orlando. Hi, Vicki. How are you? Hey, Dave. How are you? I'm good. Good. How can I help?

Well, I have a question for you. I started listening to you about a week ago. I'm halfway through baby step number one. Cool. I don't have a home. I live in an RV because my work makes me travel so much, which is paid for. I have some credit card debt from some cancer treatments for myself and my husband from about four or five years ago that I was making minimum payments on. They've now been charged off by the credit card company for a total of about $3,000.

They were not charged off if you were making minimum payments? Well, I fell into another treatment, and I couldn't make the payments. So you weren't making the payments, and they got charged off. Okay, that's cool. But I know my goal is to be completely debt-free probably within the next two years. And I'm wondering, do I go ahead and pay those credit cards, or do I just, since they've been charged off, just kind of let them ruin my credit

since I have no intention of using credit again ever? Yeah. You borrowed the money. You owe the money. So we're going to pay them, but we're going to pay them last because they're not affecting anything today. And so what I would do, the things that you are paying payments on today are what? What debt have you got that you're actively paying payments on?

My car. Uh-huh. What else? Which is $9,000 in student loans. Okay. And how much do you owe on the car and how much do you owe on the student loans? $9,000 for the car and $73,000 for the student loans. But I'm currently in school, so they're in deferment.

$73,000? Yes. Okay. And you're in school to get what kind of a degree? My master's. In what? Nursing. Good.

Okay. So that's your traveling nurse right now? Correct. Good. Okay. And you're single? Yes. Okay. Kids are grown and out of the house. Okay. So that's your traveling nurse right now? Correct. Good. Okay. And you're single? Yes. Okay.

Kids are grown and out of the house. Cool. So what do you make? Depending on the contract, between $60 and $95. Okay. All right. So can you pick up side stuff when you're traveling? Is it possible?

I can. I'm picking up currently an extra day a week, which at an overtime rate is about $52 an hour. Okay. So you've got like $80,000 to clear, and you can make $90,000 to $100,000 before you finish your master's. So let's just go ahead and clean up everything. Pay cash for the rest of your master's. When will the master's be done? In about seven to eight months. Oh, great. And how much will that change your income immediately? It'll put me over the $100,000 mark.

Ding, ding. Maybe $125,000, $150,000 income. Cool. All right, we do all of that, and we finish up the car, and then we finish up the student loans, and then we'll call up the credit card companies that are all in default, and we'll call them and just go, okay, my original balance with you was $1,200. And now they say it's $12,000 because we've added all these magic to it.

And you go, no, $1,200 sounds better to me. And then you start the process of paying what you originally owed or thereabouts before they added on all their crap. And you get that settled in writing. And you pay it in a lump sum in each case but i would let those credit cards just lay there in the background it's a second debt snowball after you pay off your car and your student loans the great news is your ratio to your income which you got the ability to raise it right now with extra work and again in seven months with extra master's degree tacked onto your name congratulations great accomplishment you're not afraid of hard work you're not afraid of personal growth you're going to go places

kiddo you're on your way you're doing well so have at it jump on it i love it thanks for the call open phones at 888-825-5225 natasha is in iowa hi natasha how are you hello good thanks for taking my call certainly how can i help well uh we just took your financial peace university my husband and i and we are on baby step two we're trying to pay off our debt right and we have about fifteen thousand dollars in credit card debt and uh we have another, aside from our retirement, we have another account that we have in the market that has about $85,000 in it. And my husband wants to use money from that to pay off our credit card debt. And I don't think we should. Are you through using credit cards?

Yes. They're cut up. They're done. Okay. Why would you want to keep the debt? Well, I guess I feel like that $85,000 that we have had has been turning about 8%. And I feel like... Your credit cards are below 8%. No, no, no. The investment money. Yeah, I know.

But your credit cards are below 8% interest. No, not my credit cards. So you would borrow money at 18% to invest it at 8%? Oh, my husband's going to win, huh? Well, I mean, I'm not following your logic. Why is it you want to keep this debt? I don't want to keep the debt. I just feel concerned to draw off of all that money that could be collecting for retirement,

like people can catch up with it. Yeah, you're going to be fine. Okay. Okay. You've got to get rid of the debt. Okay.. Yeah. You're going to be fine. Okay. Okay. You've got to get rid of the debt. Okay. He wins.

You're right. I'm sorry. But the thing is this. The way I make these decisions, a lot of them, is I just do a little reverse engineering and say, if I didn't have $85,000 in stocks and instead I had $70,000 in stocks and I had no credit card debt, would I go borrow $15,000 on my credit card to put it into the market and have $85,000 in stocks and I had no credit card debt, would I go borrow $15,000 on my credit card to put it into the market and have $85,000 in stocks? And the answer 100% of the time would be no. And effectively, every day you keep this credit card debt, that's what you did, wasn't it?

Yeah, that's true. In essence. And so if you reverse engineer it, it helps me make the decision. And you can do that with a boat sitting in the driveway. If I didn't own this boat today, would I go buy it? No, I can't stand the thing. Well, why is it still sitting in your driveway? It's time to sell it, you know?

And that's the same thing. You just reverse engineer it. If I didn't own it and I had that much money laying in the middle of my kitchen table, would I do this again? And that tells you a lot of times that we need to shed ourselves of stuff and simplify our lives. The number one data point that causes people to be able to build wealth is to clear debt. I've become known around here for my name is even synonymous with getting people out of debt. I'm debt free. That's what it's synonymous with, right? But the only reason that is is because it's the best way to get out

is the best way to build wealth which i have noticed feeding hungry children is easier when you're rich i didn't notice any poor people feeding any any hungry kids i'm noticing poor people digging wells in haiti i didn't notice any poor people doing this stuff. So poverty is not inherently moral. You're not holy because you're broke. I've been broke. It didn't make me holier. It made me a holier mess is what it made me. I was stressed out, distressed.

Everything made me mean and mad. Because I was freaked out. My life looked like a country song, you know. That's the way it is when you're broke. There's nothing inherently cool about poverty. So the reason we teach people to get out of debt is not because we hate debt. It's because we hate what debt does to you. It keeps you from building wealth, which keeps you from outrageous generosity, which is the highest and best use of money, by the way. This is the news, guys. You need to stop and listen.

The Fed decided not to raise interest rates. That means you've got a small window of time before rates rise again. Here's the deal. Most people are paying too much interest on their largest expense, their home. So you're freaking crazy if you don't take 10 minutes to call Churchill Mortgage right now and see if they can save you money before rates rise again. A mortgage through Churchill could save you thousands, or better yet, reduce the time until you're debt-free. Can you imagine how it would feel to no longer have that payment looming over your head every month? Just go to ChurchillMortgage.com or call 888-LOAN-200.

Their team of experts will give you more clarity about your options and more peace knowing you're saving significant money in the long run. Call 888-LOAN-200. That's 888-562-6200 or churchillmortgage.com. Well, if you didn't know, over 50,000 churches have now taught over 6 million people in the Financial Peace University classes. I do the teaching on DVD, but an integral part, the reason the classes happen, is a local coordinator in that local church that volunteers to lead the class and puts up a lot of time and a lot of effort and really cares deeply about the people in the class. And so we're celebrating Financial Peace University coordinators this week.

They are some of the best people on the planet, and I've got one of the superstars on the phone right now. Ross is with us in Modesto, California. Hey, Ross, how are you? Hey, Dave. Pleasure talking to you today. You too. You too.

So last time we talked, you guys did your debt-free scream here on the air in 2006 in honor of your late wife, Terry. And since then, you've become a financial coach, one of our Master Series trained coaches and so forth. And so that was a real poignant debt-free scream. I mean, a lot of tears here when we're celebrating Terry and her involvement and you guys getting debt-free and then her passing. So how are you doing since then? Oh, we're doing fine. We're doing fantastic, Dave. I've done actually, you know, seven classes over the last three years, and it's been amazing. It's really my ministry. I love getting people out of debt, and we even did Momentum at Crossroads Grace in Manteca.

Oh, wow. And it was an amazing, amazing journey. We had 1,200 people take the class, 461 families. They paid off $1.7 million in nine weeks. They saved $1.2 million and cut up 781 credit cards. Wow. Do you ever stop and look at those numbers and go, I did that because you did that, dude.

I'm proud of you. Yeah, I was part of it, yeah, part of the team that did all that. It was amazing. It's something I dreamed about doing. Yeah, it was great. Yeah, very cool. Very cool. So why have you kept on leading Financial Peace University all these years?

Well, I think really, you know, through my wife and I journey, you know, through that storm and everything, having financial peace, you know, I just wanted, I want that for everybody to experience what I have, you know, because life is, you know, I always say life is unpredictable, but certain things are when you control your money. And I just feel like I've had so much peace through all that. You can do things that you can't really do if you're under financial stress you know yeah that's true well i mean when you're facing a storm like that it's just good to have an umbrella

yeah you know you're probably still gonna get wet but not near as bad you know because you guys had a you know the new stuff coming in coming towards me, and it's just been amazing that I can just go do those things and not have to worry financially, you know, take care of myself and stuff. So you've let all of these classes and had all these hundreds and hundreds of people come through the classes. Does one stick out to you that just blew your mind what one of them was able to do? Yeah, you know, it's really, it's the simplest of things. So, you know, I had a widow in my class. She was in her 50s and not really making a lot of money

working at a nonprofit that she loved. And every month when she started the class, she was overspending and always stressed. And, you know, after the nine weeks, she was able to stay on a budget. And, you know, it's funny because I ran into her a couple months later, and she came up to me. She was saying that, you know, a coworker had come up to her and said, asked her what had changed because she just looked so happy. And she told me she realized that it's because she has this financial peace and the removal of stress, and she's just living life so much differently.

And it's not a huge financial win, but it's just an emotional win for her, you know. Yeah, financial peace doesn't necessarily mean that you've become a multimillionaire. All it means is for the first time in my life, I'm making this stinking stuff called money behave. Yeah, and she was just so happy that she knew she could do the job she loves and still make it, you know. You know, it was very, very cool. Yeah. It was amazing. So when somebody's talking to you and you tell them that you've done all these classes

and everything, and they ask you, well, should I do it? Should I be a financial peace coordinator? What do you tell them? Well, I think, you know, it's an amazing journey because, you know, at first you think, oh, there's a lot of work and everything. But then you start realizing that from the classes you have these moments that pop up that you said, that was amazing that people, you know, never joined their finances. I had one in week five. All of a sudden they're joining their finances.

I didn't even tell them to do that, but they just knew that they were in control, and they just did stuff. And all of a sudden, their marriage went to a new level. I know that. And so it's just those little nuggets of gifts of people. And people come up to me a year later and say, hey, boss, I'm debt-free. I'm getting married. Thank you so much. And these are years later, you know.

And it's just there's so much pouring back into you, more than I could ever put out, right? So that's what I would really encourage people to look beyond, you know, their current class and really how you're changing people's lives in an amazing way. Yeah, I got the opportunity over the last weekend during the 4th to sit down for a few minutes with my 3rd grade teacher who is 82 years old and uh just you know got to remind her what she meant to all of us kids and it's amazing she remembered all the

kids from all the classes it's an amazing area and but she's got that that lifelong satisfaction of of having taught and having lived you know having straightened some kids out and got them on the right path and that kind of stuff because she was the one that would straighten you out. I'll just tell you that. Yeah, and what's so cool is your curriculum is, you know, you really, many questions that need answering, they will be answered. And so if you just follow the curriculum, you don't have to follow this stuff because the answers will come forth, and I just see it over and over.

I just said, calm down, relax, give yourself some grace, and you'll find a way. And every time, by the end of nine weeks, it's just people, you know, light goes on, and away they go, you know. Well, Ross, we're proud of you, man, proud of your personal walk and what you've done, and thank you so much for being a hero in all these people's lives and leading these classes. God bless you, sir. Thanks for letting us talk to you. Thank you, sir.

God bless. Good stuff. Well, in July, we're celebrating these amazing people, people who come from all walks of life, and they volunteered to lead Financial Peace University, the coordinators. For 25 years, they've helped over 6 million people not only learn how to get out of debt, but to save and to build wealth and become outrageously generous. And if you want to be part of this legacy, and you should, this is changing this nation

right now. You're in the middle of something that's big. You don't have to be a money expert. Just like Ross said, the answers will something that's big. You don't have to be a money expert. Just like Ross said, the answers will come on the videos. You don't have to worry about it. You don't have to be debt-free. Oh, by the way, you don't have to be perfect. Matter of fact, we try to not let perfect people lead the class because most of them are jerks.

So it would be better off if you were not perfect. And, by the way, admitted that occasionally. It's a good thing. Yeah. And so right now, here that occasionally. It's a good thing. Yeah. And so right now, here's what we're going to do. We're going to give away free Financial Peace University leader materials to 250 people. Now, that's about 400 bucks a person. What that costs to lead.

Okay. We're going to give it to the next 250 people free if you agree to sign up and to lead a class in August or September. The materials will give you everything you need to do to help everybody win with money. The first 250 people who call us right now, get ready to get this number down, sign up to lead a class in August or September. We'll get the free leadership materials. Call us at 877-378-2667. That's 877-378-2667.

The first 250 people who will agree to lead a class in August or September in your area, we will give you the free Financial Peace University Leadership Kit and get you started. So thank you guys for doing this. You guys are heroes. It's absolutely incredible. And it is fun. You get to watch the body language change of the person who comes in the door.

They start out all stressed and scared. And, you know, most of us, unless we've been around this stuff a little bit, we think we're the only stupid ones. We think everybody else has got their act together and I'm the only dumb one. And then you find out most people have been stupid with money at one time or another. Like everybody at one time or another. And so you're really not that different. And it gives you the ability to heal and to start to win. It's a lot of fun, you guys.

Financial Peace University. This is The Dave Ramsey Show. I'm Dave Ramsey. We'll be right back. Julia is with us in Tampa, Florida. Hi, Julia. How are you? I'm well, Dave. How are you? Better than I deserve.

What's up? I have a question about the best way to utilize a divorce settlement that I'll be receiving soon from the sale of our marital property. And I have about, I'm approximately going to get about $40,000 to $50,000 when we sell this property. I have about $103,000 of debt, $67,000 of which is student loans, $10,000 personal loan, $26,000 in consumer debt from the marriage. No car debt? Nope.

I own my car. It has 196,000 miles on it, but I own it. Where are you living? Great, Tampa, Florida. No, I mean... Oh, I live in my mom's house. I live with my mom, rent free. I pay part of the electric bill, pay part of the groceries.

How long have you been there? And then I buy my own groceries. How long have you been there? How long have I been there since September? Okay. How old are you been there? And then I buy my own groceries. How long have you been there? How long have I been there since September? Okay. How old are you? 34. What do you make?

I bring home about $2,800 a year. I bring home about $1,100 every two weeks. What's your degree in? Paralegal studies. I have two of them, one in business management, an associate's in business management and an associate's in paralegal studies i have uh two uh two of them one in business management an associate of business management and an associate in paralegal studies uh first one in my family to go to college i had zero guidance or mentors when doing it so at 25 i said you know i should probably do this i had no idea what student loans were the effect that it would have on my life and uh wow that's the people the first generation college that

is the ones that get screwed over the most um yeah we hear it all yeah we hear it all the time you make because you don't have anybody to teach you the language you know like you said um so if you're a paralegal and you have a business management degree why are you only making 28 grand well that's my bring home the the market for paralegals in tampa we don't make a lot of money not many of us do and i've been putting out my resume putting out myself out there in the market recently and having the kind of feedback i'm getting when i don't get the job is well you need to have a bachelor's or you need uh your certified paralegal credential which is uh i'm working on now to study for it take a took a pretty expensive test to get that.

But I can't see myself going back to school with all this debt, not yet. I can't afford to pay it out of pocket, and I'm definitely not taking another loan. I agree with that part. Okay. Yeah. I just want to see someone get your income up. That's the biggest part of the equation I'm hearing. You've got kids?

Part of my question actually has to do with changing my career field with this settlement when it comes in. A significant portion of it I want to put towards my debt, but I have an opportunity to come in under somebody as a mentor to change my career and become a realtor. And I understand that is fully commission-based and that's a huge risk, but I'm a people person and I'm pretty confident I'd be really good at it. I love real estate. In fact, I work in real estate as a paralegal, but I'm a people person, and I'm pretty confident I'd be really good at it. I love real estate. In fact, I work in real estate at the Paralegal, so I already have some general experience there. What does it take you to survive a month, given that you're living with your mom?

Probably about $2,500 a month. Okay. All right. So six months would be $15,000. Mm-hmm. It's going to take you six months before you make a dime, probably. Sure. In residential real estate.

And the marriage is over. There's no kids. And this is the last money you're going to see from it. It's a one-time, good-time deal. Right. Okay. I'm fine with you making that transition. I'd like for you to start part-time today in real estate

and try to keep some income coming in and just get immediately, start getting your testing and that kind of stuff done. Because the sooner you can actually see clients, the sooner you can actually close a deal, it takes usually six months before you make a dime. Right. That's what I'm anticipating. And I'd have enough money to live on for a little while.

Yeah. I don't want you living there two years chasing a pipe dream and no closing houses because you're a little too comfortable because there's money in the bank oh no i'm not comfortable i'm ready to move and get out of mama's house i got that i'm just saying it out loud i don't want to i don't want to take this call two years from now and have the wrong conversation i want to say it out loud so yeah yeah i would not throw it all into that i would throw some of it at this change because you don't make anything. Right. You need to make more.

And you've got the ability to, like you said, you've got the smarts. And what's your career path? What are you going to do? I love real estate. I grew up in the real estate business, and I've had my license since I was 18. So I've been active in the business in years other than as an investor. But the point is it's a great industry to be in and around. But you've got to hustle. I mean, you're going to have to hustle and grind, and you've got to make it happen.

Yeah, I'm not afraid of hard work, that's for sure. I'm going to get on a really, really strict budget. $2,500 sounds steep to me if you're living with your mom and there's not much coming out of your pocket for living. I could probably trim some of the groceries a little. Yeah, and the eating out and whatever else. I just want you to work all the time right now. Yeah, okay.

That's something. I mean, if you can do a bunch of paralegaling and real estate and whatever, I don't care. Just keep a bunch of money coming in because then you can survive a lot longer to keep fighting and get the real estate and whatever i don't care just keep a bunch of money coming in because then you can survive a lot longer to keep fighting and get the real estate income up right i mean if i talk to you six months from now and you're really really really tired but but you've now made twenty thousand dollars in real estate business all of a sudden you're game on right right and that's that's where i'd like to see you get to. So, yeah, let's use some of that money for that transition. I'm with you.

Because you need to do something different. What you're doing is not working. So it's time to change something. And you want to get there. You don't want to be where you are now 10 years from now. And you will be unless you do something different. So I'm with you. Let's do it.

Thanks for the call. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Cody is in the Ramsey Baby Steps community. Dave, when you talk about the four investment types for mutual funds, is that for someone of any age? Why would a 25-year-old have the same investment strategy as someone that is 55 years old? Well, it's not really about your age, Cody, and you're not really asking a question.

You're making a passive-aggressive statement, but I'll address it anyway. So here's the thing. How long is the money going to be invested, and what gives it the best rate of return during that time frame. So when you're 25 years old, you can invest money and it could be invested for 60 years. When you're 55 years old, you can invest money and it could be invested for 30 years. Because when you get to retirement, you don't cash everything out at 65. You simply start taking an income off of your investment portfolio whenever you want to retire, whatever age that is. And so from age 65 to age 85, which if you make it to 65 and you're healthy, statistically,

you're going to make it into your 80s somewhere. Average death age is 74 for male, 76 for female, but that includes infant mortality, teenage death, and so on. When you make it to 65, you have a very high likelihood in America today to make it into 85. That's a 20-year period of time you have to outpace the cost of gasoline and bread and housing and electricity going up. And so you have a 20-year window to invest. A 20-year window to invest has exactly the same portfolio as a 30-year or a 40-year or a 50-year window to invest. The problem, Cody, is that you've been reading crap out there that is standard procedure with most financial planners and that is to move people into bonds which is a nightmare especially right now and move them into money markets when they start getting older that you need to change your portfolio mix that magically at 55 years old

investing quits working and so you should make your money not work nearly as hard. And the premise is that you shouldn't take more risk when you get older. But there's two kinds of risk, risk of loss of money and risk of the money not making anything. You put the money in a fruit jar, you didn't lose it, but it ain't making anything, duber. So you've got to put the money in something that outpaces inflation. And so just because something is standardized in the financial world

does not mean that it is wise. As a matter of fact, it may mean it's not wise. And so we're not going that way, Cody. So it's, no, if you have 10 to 20 to 30 to 40 years to invest, the four types of mutual funds I'm talking about will outperform, pick funds that have outperformed the S&P, will outperform any other mix out there. It's not rocket science. It's just basic investment portfolio analysis.

But people fail to do that because they fall in line like a bunch of lemmings, which are little rats that run off cliffs together. This is the Dave Ramsey Show. Thank you. Corey is in New York. Hi, Corey. Welcome to the Dave Ramsey Show. Hello. Hi. Good evening.

Glad to speak with you, sir. You too, sir. How can we help? Okay, so I have a question. It's regarding my finances, I would say. Okay, so my situation is I have a small house. It's a one-bedroom home, and I want to add an additional floor. It's a one-story home, and I want to add an additional store. So, I was just wondering

if I should, you know, you say not to finance and things like that, so. I have, I'm just trying to find out if it would be a good idea to finance it, to add more rooms and whatnot, which I intend to rent out.

I only have one room, I rent it out. And, well, I have two rooms that I rent out already. No, I would not finance it. And no, I would not add a second story to a one-story structure. It's very, very expensive. The one story that is built is not built in such a way that it will hold a second story. So most of the time, the actual additional support you're going to have to add is going to be almost as expensive as tearing it down and rebuilding it.

So probably not a good construction technique to start with. Very expensive square footage to add to a property. And thirdly, no, I would not finance it. So I'm probably, if you want to own some rental property, what I would tell you to do is let's get you the rest of the way out of debt, get your emergency fund in place, and then let's start saving towards some investment property. And that would be fine.

But just taking a little one-story shop and adding to the top of it is a really expensive endeavor. Hey, thanks for the call. Jasmine's with us rather in houston texas hi jasmine how are you good how are you doing better than i deserve what's up i'm interested in doing a whole life or universal index life policy as a retirement plan and i just wanted to get your perspective on doing that. Mm-hmm.

Okay. Well, it's one of the worst investment vehicles on the planet, and I would stay completely away from it. And let me explain to you why, okay? The rate of return on those policies averages after expenses around 4.7 percent now their glossy brochures tell you a lot more than that and their sales pitches from their say insurance salesmen who call themselves financial advisors they're no more financial advisor than your dog is their insurance salesman and so they tell you 8 10 12 percent But after all the fees are done, the average universal average is about 4.7%,

and the average index will average right around 6% nationally. Horrible rate of return, number one. Number two, the insurance part is very expensive. You'd be better off to buy the insurance separately and just buy term insurance and then number three when you die they pay your heirs your beneficiaries the face value of the insurance policy not the investment you do not get the investment when you die your heirs don't no i would pull out the investment part as a retirement. Now, that's if you elect to live longer.

But if you choose to die, and you don't know when that's going to be, they keep the money that you paid as an investment. And they only pay the face value. The rates of return are horrible. And when you die, they keep your money. It's the payday lender of the middle class. You're much better off, like millions of dollars better off, to buy simple term insurance to cover your life, 15 to 20-year level term, about 10 to 12 times your income on you, and then invest your money in real investments like mutual funds and a good Roth IRA

and 401Ks with Roth on it, matching, all those kinds of things where you're getting your money in real investments that aren't so heavy laden in fees. If I have all of those investments already. Yeah, well, that doesn't mean you need to get stupid okay just because you have a bunch of investments that are good doesn't mean you need to put money in a hole in your pocket so now you're getting pitched by some insurance guy really hard aren't you yes and you've become convinced by him really really good yeah well they might they can make you know warm water sound good when they're finished talking,

but it's still just warm water. So now it's when you take the exact same amount of money that you would put in premiums in that and put it in an investment and buy term insurance if you needed some additional insurance, you'll end up with millions and millions of dollars more so here's here's a thing to do if you want to do an actual comparison between this investment and a real investment sit down with a real investment advisor go to one of our smart investor pros click smart investor at dayramsey.com i'm not in the investment business i don't give a rip what you do it's not going to affect me one way or the other but i would no more buy that crap than i would lease a car or run up a credit card debt it's trash it's one of the worst financial products

ever put out there and they are excellent at selling it to you and make you feel dumb if you don't buy it i mean they're intimidation selling even. It's just ridiculous. So I want you to go do some math and get away from the slickster a little bit, sit down with an actual advisor, and crunch the numbers of if you took the same amount and put it in a real investment what you'd end up with. And you're going to be blown away as to the difference. And please do not believe insurance company projections on insurance products. They just do not perform like the glossy brochures.

It's that simple. The numbers I just gave you are right. And you can outperform those numbers double in the open market by buying mutual funds. Please don't buy this crap. So you asked, and that's what I'll tell you. Thanks for the call. Open phones at triple eight eight two five five two two five nathan's in kansas city hi nathan how are you good thank you for

taking my call sure what's up we are debt free other than our home good but um we've been saving the 15 for our retirement for the past year but the thing that we're just wondering is that we're on a 30-year note, and we really can't afford a 15-year at the moment. If we were to pause retirement for probably three to four years and put that money towards the principal of the mortgage, then we think we could

refinance to a 15-year note. We just didn't know if that was what we should do. Nah, I just keep doing what you're doing. Just keep working your baby step six. As your income comes up and as you get bonuses and other found money, just chunk it over at the mortgage at your baby step six. Because four, five, and six work together.

And to go from a 30 to a – what's your interest rate on your 30? Oh, I believe we're at the – I don't know my interest rate. It's the typical 6%, I believe. It was just within the past year that we bought the house. No, it wouldn't be 6 unless you've got bad credit. It's 4.5. It might be 4. Yeah, it's 4.5.

My wife just looked. Okay. All right. Then, yeah, if that's a little above the going rate, you might get 4 today, and you don't refinance to go from a 30 to a 15. You just pay extra because you don't want to go through the refinance costs because you don't save anything by doing that. The only way you save money is having a lower interest rate.

You're not getting a low enough interest rate to justify the refinance. So I would not refinance. I'd just chunk. Just keep working on it. You'll get to it. Just keep working your budget. You've gotten out of debt. Way to go.

Get your emergency fund in place. Way go take the steps from there and um you know do do what you've got to do to to throw extra money when you can at at the um um you know at the uh principle on the thing and you're you're going to get there you're going to be able to knock it out it'll work hey thanks for the call open phones at 888-825-5225 you jump in we'll talk about your life and your money the thing is you have got to when you're dealing with financial people i'm thinking about that whole life salesman a minute ago. When you're dealing with financial people and you feel like you need to take a shower after you met with them, that's because they're slick. And you don't need to deal with slick financial people. You need to deal with people that have the heart of a teacher. And you learn something from them when you meet with them.

But if you feel icky, it's because icky's in the room, baby. This is The Dave Ramsey Show. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section. Thanks for listening.