The Ramsey Show - App - Math Is Measured in the Head, Risk Is Measured in the Heart (Hour 2)

Episode Date: March 5, 2021

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's The Ramsey Show, where debt is done, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Chris Hogan, Ramsey Personality. Number one best-selling author is my co-host. Open phones at 888-825-5225. 888-825-5225. Jared is with us in Monroe, Michigan. Hi, Jared. Welcome to the Dave Ramsey Show. Hi, guys. How are you? Great, man. How can we help? So my current employer has a pension

program, but they're trying to move to a 401k well it'll be a 401a because it's a county government job so i'm curious what the better of the two options are and your opinions on them how much are you required to put into the pension into the pension and the 401a will be the same it'll both be four percent that you put in or they put in? They will match up to 6% in the 401A. In the pension, I put in 4%. Okay, and that requirement would be lifted, and you could put your money anywhere you wanted to put it, and they will match the first 6%.

Am I understanding you right? Yes. I have to choose one of the two. So if I choose the 401, they will match up to 6%. Okay, when you put in 4%, what do you get with the pension? They will also match 4%. With the pension, they match? As far as I know, I just get my years towards my pension that I have to be invested towards,

and then once I retire, I get 75% if I get a full pension, depending on how long I stay. How old are you? I'm 25. Okay. Chris, you can chime in on this, but mathematically, I'm going to say it's a no-brainer to do the 401A. Yeah. That's what I was thinking. Yeah, you're in control.

You're going to put it in a better investment. It's going to grow to millions of dollars more than the pension would have grown to. And if you die, you lose the pension. And when you die, your 401A is in your name. That's exactly right. And, Jared, if you were to leave or move on, then you can just do a direct rollover of that 401A. So you're going to have more options to invest inside of that 401 than the pension. So that's definitely the route I'd go, my friend. Now, remember, just because they're matching you up to 6%,

you want to be at 15% yourself. Don't count the match that they do as part of the 15%. Right. Okay. Okay. And then they also, like, anything I put over that required is going to have to go into a 457. So I don't know what that actually is.

Is it kind of the same thing? It's very similar. 457 is deferred compensation, and it works very similarly. If you put over the 6%, you're saying that's when they're going to make you do that? Yeah, anything I put over the required amount will go into the 457. But they match up to 6? Yes. How are they matching up to 6. Yes. How are they matching up to 6 when you're not putting 6 in?

Well, I have to put 6 in for them to get that match. I know, but the other two can't go in the 457 and then match it. That doesn't work. Okay. See, that's what they were saying. We're currently in union negotiations, and that's what they were saying. Yeah, you've misunderstood, or somebody has. Okay.

Because 457, just pretend they're two completely separate accounts. They can't match 2% over in the 457 and 4% over in the 401. I guess they could, but it's not the same match. In other words, they can't put, they can't say we're going to match up to 6%, but you can only put in 4%. That doesn't make sense, okay? So you need to get some clarification on that. Now, what I would do is go up to 6 there and get all your 6 match,

and then I would go to Roth IRAs on your own to get to the 15% that Chris is talking about. Because here's the thing, Chris, he's going to end up with millions and millions of dollars more going this route than he would if it's in a pension. Because he's going to be making good mutual fund rates of return from 25 to 65 for 40 years versus pension returns. That's right. And he's 25, like you said, he's 25 years young. He's got so many years ahead of him of just massive growth that you don't have to worry about losing if you pass away. That's the way I'd go, confidently. you it's what you mentioned it's portable it leaves when you leave that's right if you want it to you can roll it to and i would always when i

leave a company leave an organization a government job whatever i would always roll it to a good mutual fund yeah it's always the plan love that that. Love hearing 25-year-old out of debt investing. I mean, again, people tell me, you know, millennials, they're just walking around in flip-flops and t-shirts and stuff and not listening. It's not true, people. I'm talking to them every day on the Chris Hogan Show as well. They are investing, Dave, and I'm serious. I mean, I'm talking young people paying off $125,000, $150,000 in student loan debt.

Yep. Because they said their parents taught them. they got serious about it, they kept lifestyle in check, and they chopped it down. Yeah. It's awesome. It's not all immature YOLOs. No. No, it's really not.

There you go throwing around them words again. That's it. I know what I'm talking about. Danielle's in Daytona. Hi, Danielle. How are you? Hey, I'm good. Thank you, Chris and Dave, for having me.

I appreciate it. Sure. What's up? So I kind of have a feeling what you're going to say. So my husband and I just got married in September of this year. Last year, it's been crazy with his health. He is a patient of Mayo Clinic now. But he was, we almost lost him last year as well in ICU.

And we just adopted my step-nephews last year. So things have just been chaotic. And the situation that we have is we don't have credit cards, thankfully. But we are right now paying for three vehicles, and one of them is garnishing my husband's wages. And it's my fault. I'll take the blame for it. And I feel horrible as a wife, as spouse, but I can't figure out how to get out of this why do you take the blame for his car getting repossessed um well we voluntarily repoed it um it was my fault i i thought the grass was greener um i wanted a newer vehicle and with our credit at the time the dealership wasn't going to have it with us being so far upside down

so they were like well the only option for you guys to get out of this monstrous van is if you guys maybe would, you know, call. So how long ago was it repoed? Two years ago, and then they legally had to have it. And what's the deficit balance? How much do you owe them? $16,000. Okay. Do you have any money at all?

No. No. No. We just got married. We just finalized adoption. We're paycheck to paycheck. What's your household income? Almost $70,000. Okay. So I hear a whole series of things that you're doing that you can't afford to do, and you did them anyway. Yeah. When are you going to stop that? Now. Are you? Yeah, absolutely. Okay.

I thought you said he was at Mayo, so his company's still paying him? He is a patient. So he was out of work for about... How much does he make a year? He makes $38. Is he back at work? He just returned back to work. How much do you make a year? I make almost $30.

Okay. What you need to do is scratch together about $1,500 to $2,000 and offer that as a settlement on this because repos bring somewhere around a nickel to a dime on the dollar on the deficit. That's what you settle it for. And a lump sum in writing. For goodness sakes, kiddo, get your hands around this stuff. We'll be right back. Christian Healthcare Ministries, or CHM, is a non-profit organization that helps members carry one another's burdens with healthcare expenses. And they have successfully shared each other's medical bills for nearly 40 years.

See if CHM is right for you by visiting chministries.org. CHM is a proud sponsor of Dave Ramsey Live Events. Chris Hogan, Ramsey Personality, is my co-host today. Thank you for joining us. This is the Ramsey Show. The phone number is 888-825-5225. Tony is with us in Sioux Falls, South Dakota. Hi, Tony.

Welcome to the Ramsey Show. How can we help? Good afternoon, gentlemen. Thanks for taking my call. Sure. Hey, my question is, my company leases a vehicle back from me. I'm currently on steps four, five, and six, and it's about $850 a month. And over the last 10 years, I've used that fund.

I've just put it in a savings account and gained zero interest on it to buy my vehicle with cash every time. And I'm just wondering what to do with that money this time around. If it's a money market, mutual funds, savings account. What's the best option? Well, if you put it into a mutual fund, you stand the probability of it going down in value, not just up, right? Correct. And I know you say if they're not going to leave it in five years to not go into a mutual fund. Yeah. This last time, it was actually about five and a half years when I used the funds.

Well, I mean, you could funds well i mean you could you could split it up and you could put half into a s&p 500 and half into a money market and then you're not putting it all at risk of going down if you want to try to let it earn a little bit um the trick is that the system is what's going to save your butt not the fact that you had it invested okay how much money are we talking about? You said $800 a month, and you're putting it all aside for car replacement, right? Correct. It's about $10,000 a year, and at the end of the –

I usually run the vehicles to about $200,000 to $250,000. I'd like to run them as long as they can, and they're always paid off. Let's say over that five-year period of time, then let's say it averaged $25,000 because it's $50,000 in five years. So it averages median, the median point is $25,000. And so if you make 10% on $25,000, that's $2,500, which does not impact a $50,000 situation that much. Okay.

So what you earn on this money is not as important as the fact that you have a system to keep yourself from going into debt. Okay. So it would be okay to earn nothing then as long as I'm continuing with this? Yeah, because it's the investment. But if you were going to leave it alone 20 years and you left it at 1%, well, that would be ludicrous, right? Yeah. Yeah. And, Tony, I mean, you've got an opportunity to be able to put half of that aside for car

replacement. You could throw the other half. You said you're on four, five, and six. You could throw that toward the mortgage. You know, the point is you want the money to work for you. Don't put any more in this car replacement fund than you need to replace the car. And so whatever the schedule is on that, and again, if you want to just dial it up a little bit, move half of it into mutual funds, into an S&P 500,

and the other half, just let it ride on a thing. I mean, let it ride on a money market account. But whatever you earn on it, even if you earn really good money, is not going to substantially change your life. What is substantially changing your life is you've been smart enough to avoid debt, and you have a system to replace these cars after you wear them out, and you are destroying them because of the number of miles you're putting on them. I mean, you're just wearing them out, and that's your road warrior.

That's part of the cost of doing business in your world. Nothing wrong with that, but at least you've figured out how to admit it, and that's pretty cool. And you also figured out the $800 a month doesn't cover all your costs. So they're giving you some money, but they're not giving you a company car. You'd have been better off with a company car, a lot better off. All right, Dave is with us in Dallas. Hi, Dave. Welcome to the Ram ramsey show how can we help hey dave i'm uh trying to determine whether or not i should do a deferred income annuity why would you do that well my financial person um suggested it because I'm real fearful of a market crash.

And she's like, well, you know, if the market crashes, you know, you're losing the value of our retirement right now. I'm retired. My wife is fixing to retire. How old are you? I'm 58. How much money is there? Retired at 55.

How much money is there? We've got 2.3. And you're fearful that the market is going to completely destroy? Well, not completely, but, you know, half half and then if i'm withdrawing and where in history have you seen it do that okay uh you're right you're right uh or 30 i guess and where in history have you seen it do that i thought 2008 was somewhere around there. No, it was half. The Dow went from $13,000 to $6,700. Okay.

And it was back in a year. Right. And now it's not $6,700 or $13,000. It's $30,000, right? Correct. Okay. So unless you have a need for $2.5 million at the bottom of the market, you would not embrace the 30% loss. You would ride it out, wouldn't you?

Yes, even though I'm going to be withdrawing $10,000 a month. Which is a whole $120,000 a year. That's not even the growth. Okay. Dave, Dave, listen. Yes, sir. Listen, my my friend you are an everyday millionaire you have been intentional in growing this money you're going to be fine i listen the thing is this okay i understand that the world is unraveling out here in front of us i'm watching it too i'm not disagreeing with you about that but we we dr deloney talks about when we're in a crisis situation or when we're in a situation facts are our friends not fear and if the facts say if there's some actual facts that indicate

that we're going to have a substantial market drop and it's going to maintain and it's going to stay down there, then we would have this discussion. I don't have any of those facts. The only thing I've got is I don't like the socialist tendencies that are in D.C. right now. I don't like the idea of heavy taxation. I don't like what they're going to do to the economy overall. I don't think it's going to be pleasant, but I don't think we're going to do to the economy uh overall i don't think it's

going to be pleasant but i don't think we're going to see a market correction of 30 i'm 60 i have pulled zero out of the market due to my being upset about the current world that i live in does that make sense yes so while i have those, I have to gauge the actual facts of the history to do that. So all of that said, I'm not sure I would do a deferred income annuity. I might do a variable annuity. And a variable annuity will give you principal protection and a floor of a minimum gain or a minimum increase in value, usually 5%, 6%, and you're invested in vehicles that are going to make you 10 to 12 on average. But if the market really tanked, you'd have principal protection and you would have a

floor for the earnings. And so if that will make you sleep better at night, you're going to pay an extra fee for that variable annuity that you really don't need. It doesn't give you anything that you need except that peace of mind that you're looking for. So you're paying for that. Now, would I move the whole $2 million in there? Absolutely not. But would I move, in your case, if you still think this through and you still are worried about it uh you know then you know you might move 500 700 in there maybe move a third of of your of your net worth

into that it's not a bad place because you can put it in good mutual funds you'll still have a similar growth rate you're just going to have a higher expense ratios and when you pull money out of it it's no longer going to be taxed at uh well, it's all in 401ks anyway, isn't it? Correct. Yeah, you're going to be taxed ordinary income anyway when you come out. Oh, no, I'm sorry. Right now, no, mine's not in 401ks. All of mine is, or the majority of mine is in IRAs.

Okay. But if you have non, so you're taxed at ordinary income when you pull it out of a traditional IRA. Mm-hmm. And so when you pull it out of this, you're going to be taxed ordinary income, too. So that doesn't harm you much. Yeah. If you're dealing with non-retirement money putting into a variable annuity, you're going to change from capital gains taxation to ordinary income taxation,

which is something else to consider, but that's not your case. So maybe a third of it, Dave, but the other thing I would do is I'd spend some more time learning about history and let facts be your friends, even though we're scared. Chris Hogan, Ramsey personality, is my co-host today on the debt-free stage in the lobby of Ramsey Solutions. Joey and Maylene are with us. Hey, guys, how are you? Good, how are you? Great. Where do you guys live?

We're south suburbs of Chicago. Awesome. How much debt have you guys paid off? We did $54,085. Awesome. How long did this take? 12 months. One year to the date.

12 months. Love it. And your range of income during that time? It was $56,000 to $100,000. Nice jump. Whoa. How'd you double your income? We were very intentional.

Turns out when you run a business with no debt, you can give yourself a pay increase. Oh, okay. So you just said, I'm bringing more home. Yes. Pretty much. And worked all the time. We did work a lot, yeah. What kind of business have you got?

I have a pet salon and then another side hustle, but yeah, I have a pet salon. And that's where you made the money? That's where I made the money. Okay. Very cool. Lots a pet salon. And that's where you made the money? That's where I made the money. Okay. Very cool. Lots of pet care, huh? What do you do, Joey? Oh, lots of pet care.

I'm a union electrician in Chicago, local 134. Good. Good for you guys. Well done. Very well done. What kind of debt was the $54,000? Pretty much everything you say not to do. Family loan.

Consolidation loan. $1,000. Pretty much everything you say not to do. Family loan, consolidation loan, credit card from the consolidation that we didn't close, and some student loans, and business debt. I had, in the business, I had taxes. I had, and I say I because at the time I did not involve him. I was just doing it on my own and not really talking about it. So it was a quick loan. It was that my mom did for me. It was just everything that you talk about.

So you guys were normal. We were so normal. Completely normal. So what happened? Because you did a complete 180. This is amazing. We did. It started back. I was working on myself and seeing just a counselor.

And I realized that we were making all this money, and we were just living paycheck to paycheck, and it made no sense to us. So I just brought it up to him, and he was fighting it for a little bit, and then I showed him. I spelled out all our debts, not including the business, but all the debts, and he saw the numbers,

and then he still didn't want to do it. Yeah, he said we were too broke. Yeah, our church, we go to Parkview, and our church actually was having it at a discount, the financial piece. And so I told him, I was like, hey, I know we've been back and forth about this, but they're discounting it. And it starts on Tuesday. Let's just do this.

And he goes, we don't have the money to do that. And I go, well, that's why we need to do it. So we signed the next morning for our daughter's birthday. He signed us up, and we started our journey. Wow. So Harlow's church. Yeah. Oh, he's a good friend.

Yeah. Good man. His son-in-law used to work here for a long time. Yeah. Cool. we started our journey wow so harlow's church yeah uh-huh oh he's a good friend yeah good man yeah joey his son-in-law used to work here for a long time joey as you look back on it what was the thing standing in your way um i think just believing in it she pushed me over that edge and you know got us going when i started downloading this stuff it turns out I had the EveryDollar app on my phone for like two years and never opened it. And, you know, her pushing us forward and really getting it in my face showed me it's totally doable. So how far were you into the class, Joey, before you went ding, ding, game on? That first class. Oh, the first one.

Yeah, I was easily persuaded. Wow. You know, I saw it. I'm like, this all makes sense. Let's go all in. So you didn't hear that. Yeah. Because I'm like you in the sense I go into stuff a lot of times with my shields all up.

I'm like, nah. I'm a scam alert, scam alert, scam alert. Is this guy? Is this guy? Is this guy? What is this guy? And then it takes me a little while to believe on something. Because I have the gift of cynicism.

But once I do, then I'm all in, and that sounds like what you did. Yeah. Yeah. Wow. And we're all in. Well, that's what a lot of people do, and that's okay. Way to go, man. Way to go, you guys.

Yeah, I love that you guys, it sounds like you united. Yeah, in a big way, and I give all the glory to God, because he truly guided us, our path to where we are now. Strengthened our marriage. Our marriage is in a whole new place, and it's the best thing. Yay. That's awesome. Yes.

So proud of you guys. Yeah, thank you. Very well done. So when someone hears you paid off $54,000 in one year, you completely combined your finances. Yes. And we're making more money than we've ever made in our lives. And they say, how do you do that? What do you tell them the key is?

For me, the key really is just communication. That's one of the things that when we got married, I always told them. I sometimes am over-communicative. But now that we've gone through this, it's really just communicating about every part of your life when you're in marriage and not being afraid to talk and just lay it out there and not judge each other and just know that we're each, you know, we all have our faults. So just be open with each other. And it's a beautiful, it just makes the world of difference. Yeah.

Teamwork. And then budgeting. Yeah. Like a budget is so much so freeing yeah that's and it seems like it's going to be the opposite when you start yeah i was i think that was my biggest thing because like a budget's going to be a straight jacket yeah when we started i had a plan for her 30th birthday and i was going to take her to nashville and i was like all right we can do this but let me still put this money aside. But you can't know why.

And I was all in at that point. I was like, no, we can't do that. It's not the plan. I'm like, well, cash flow, it's fine. Just trust me. And I fought him all the way up until the shutdown happened. And we were stuck at home. We got back to work. And I'll tell you what, I was like, let's just breathe and go take a break.

And we came here and it truly just kind of, work and I'll tell you what I was like let's just let's just breathe and go take a break and um we came here and it truly just kind of because during the shutdown because we were budgeting we were able to get through it without taking any more debt we were able to just pay off um and still pay off our debt in the time frame we wanted to so it was just like a relaunch to both of us and we sat down and revisited where we were at and that just like skyrocketed us right to the end um we were our goal was to be done by the 31st of last year and bring in the new year that way and it was probably the end of august i was looking at the bank statements and i was like we have this much left and we have this much in the

bank like we can just take it all out everything is paid for and we were able to pay it off on our daughter's seventh or sixth birthday which was to the date when we started i love it very cool button so oh that's fun yes it was awesome the button is her family tree being changed yeah wow very neat yeah well congratulations you guys i'm appreciative of pastor harlow and parkview and The button is her family tree being changed. Wow. Very neat. Well, congratulations, you guys. I'm appreciative of Pastor Harlow and Parkview and the guys teaching the class. Us too. Makes it available to you guys.

Absolutely. Well done. Very, very well done. Good stuff. Who were your biggest cheerleaders? You know, I would have to say, for the most part, everybody closest to us were very on board. They weren't quite understanding why we were doing things we did, but his mother was really in shock. She was so happy for us, but she was like,

you guys are working all the time, and we were meeting babysitters all the time. So just to really all of our friends. Even if they didn't understand, they stuck beside you. They stuck beside us, yeah. That's family. That's good. And I'd say anybody who said we couldn't do it. Yeah. That was fuel.

Kept us going. You're that guy. I like it. All right. Yeah. Congrats, you two. Great job. One thing I was really excited about with this journey is it also got my parents on board

because we both grew up with, you know, our parents didn't necessarily know how to manage money together or just in general, and all of them, or my parents, ended up doing the journey, and they also became debt-free in the same time as, like, you know. All right, let's get the kids in. What are their names and ages? Emma is six, and Layla is two. And we got a copy of Chris Hogan's book for you, Everyday Millionaires. That's the next chapter in your story.

Emma and Layla. Layla. Layla, I'm sorry. And Maylene and Joey from Chicago. $54,000 paid off in 12 months. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free scream! Three, two, one, we're debt-free! I love it! Way to go! Yeah! Fantastic. This is the Ramsey Show. We'll be right back. Chris Hogan, Ramsey Personality, is my co-host today. This is the Ramsey Show. Open phones at 888-825-5225. Cesar is with us in Fort Myers, Florida.

Hey, Cesar, how are you? I'm doing great, Dave. How are you? Better than I deserve. What's up? Thank you so much for the call. What an honor, really. You too.

For me to talk to you guys. So I sold my house. I used to live in Connecticut and moved to Florida about a month and a half ago. I sold a house in Connecticut for $225,000, and I owe $210,000 here in Fort Myers in my second home. I'm not sure if I should invest the $225,000 or pay off my home right now, my house. How much do you owe? $210 on the current house?

Correct. It's worth $335. Okay, so you took out a mortgage on it, and the money from the home sale in Connecticut was just sitting in the bank? It's sitting in the bank right now. He had the mortgage earlier. Oh, okay. But now you can pay it off.

I could. Yeah, good. Whoa. Cesar, what are you hesitating about, bud? What's wrong? Well, because I retire about probably back in April. Yes, sir. I'm 48 years old.

I have an $80,000 pension coming in. Okay. And I have about $410,000 on a 457 right now. Right. And I could continue making mortgage payments with my retirement. You could. So let's try it this way, Cesar. Let's pretend for a second that you did not have any of this $200,000 left and you had a paid-for house that you're living in there in Fort Myers. In other words,

you paid off the house, okay? Let's pretend you're sitting there in a paid-for house with that money and the $457,000 and the $80,000 pension, and you're sitting there in a home in Fort Myers, and that home is worth what? $335,000 right now. Okay. If you were sitting there in a home in Fort Myers, and that home is worth what? $335 right now. Okay. If you were sitting there in a paid-for house with your 457 and with your pension and no other monies other than, you know, not counting the money from Connecticut, right? Would you go get a new mortgage on the Fort Myers house in order to invest? No.

Same thing. Thank you. Now let me tell you what that little trick does, okay? Yes. Here's what's going on. When someone asks, including me, because I'm a math nerd, should I pay off my home because mortgage rates are low and I can make more by investing it into a mutual fund,

you are using your brain to do math, and you're considering with good critical thinking skills, does the math work to do this, right? Now, when I reverse and I do that little trick, which is called a sunk cost analysis, in other words, reverse engineering something is all we're doing. When I do that, it causes you to think not just with your brain but also with your heart because your brain didn't leap when I suggested you go get a new mortgage. Your stomach did into your heart.

And so that's where you measure risk is in your heart. You do math in your head, and you have to use both to have a good financial plan. And too many people in the financial world only use the brain for the math, and they don't use the risk analysis of the heart. That's good. Math is in the head. Risk is in the heart. I mean, that's a, you know. You think about your physical reaction. That's good. Math is in the head. Risk is in the heart. I mean, that's a, you know.

You think about your physical reaction. That's right. When you think about going and getting a mortgage on a paid-for house, you kind of like you got the hiccups almost. That's wrong. Your chest got tight. Yeah, no. Your diaphragm, your abdomen changed. Your brain didn't move at all.

No. It didn't even flinch. Not at all. That's amazing. Cesar, you're going to be feeling so different. Yeah, pay it off. You really are, buddy. You're going to feel so different.

You've done a great job, and thank you for being a listener. 48 years old and retired? Yes. He's done it the right way. Open phones at 888-825-5225. Mike is in Boise, Idaho. Hey, Mike, how are you? Hey, guys. How are you doing today?

Better than I deserve. What's up? Thank you for taking my call. I'm hoping you guys can help maybe settle a discussion my wife and I are having on the last item in our snowball. I bought a 2014 Ford Raptor Shelby about six months ago. So weird. Yeah, to fix up and actually flip. That was the intent.

We got a pretty good deal on it. And he fell in love. Well, okay, so my wife actually fell in love. With the Raptor? This is funny. With the Raptor. I love with the raptor this is funny with the raptor i love it she uh i love this woman got a little bit of a so she got a little bit of a anxiety while driving and for whatever reason when we get in this truck and drive on the freeway

and of course she doesn't have anxiety driving i drive one every day i love my so she loves it so so where we're at right now is we paid everything off with that Of course she doesn't have anxiety driving. I drive one every day. I love my Raptor. She's safe. So she loves it. So where we're at right now is we've paid everything off with that. And what do you owe on it? What's that? What do you owe on it? Oh, about $30,000.

What's your household income? $175,000. Okay. And then what's your question? So my question is we're deciding on whether or not to sell it right now. I purchased it with the idea to flip it. It's worth about $45 to $50 depending on the buyer right now because it's kind of that special supercharged package, the whole thing. My concern with selling is we haven't got very far in retirement.

I'm 43, and we were thinking, hey, if we sell this, we're done. We'll put a little cash in our pocket. But, you know, we enjoy driving it so much. It makes the traveling so nice. She's been on the fence where she'd like to keep it and figure out how to. What's your other car worth? Let's see. She's got a 2014 Escape, and it's like maybe 15 grand.

And that's the only other car? You only have two cars? No, no, no, sorry. So when I talked to the gal, so I've got a couple other specialty vehicles and that's one of the reasons that I'm kind of leaning towards selling. I've got a couple early Broncos as well that I've had for years. You have good tech. And so I fixed them up, restored them, and they're in the garage.

How much are they worth? Mike, how much are the Broncos? Oh, they're worth $100,000. Yeah, so the one I have is an all-original, uncut one. It's probably worth, in the $60,000 neighborhood, and then the one that's more of a toy is probably worth mid-40s, I would say. Okay. You got a lot tied up in cars.

Now, those two cars there, I'm going to pull them to the side because they're probably not going down in value. They're specialty vehicles. They're collectibles. But 90% of the time, 98% of the time, you buy something with wheels or motors, it's going down in value. And you just don't want to have too much tied up in toys. You guys got a lot in toys.

We do. And that's kind of where we're both trying to have this discussion. How emotionally tied are you to the Broncos? Say that one more time, please. How emotionally tied are you to the Broncos? One of them I'm pretty emotionally tied to just because of what it is. I mean, the other one, I mean, I am. I'm emotionally tied to them.

They're so rare, I can never replace them. No, that's true. I love how honest you are, Mike. I like how I am. I'm emotionally tied to them. They're so rare, I can never replace them. No, that's true. I love how honest you are, Mike. I like how you tried. I mean, so it might be, I mean, I was just thinking, because I'm a car guy, and I'm into all these cars you're talking about. I love every one of them. These are, you've got some sweet stuff there.

You've got good taste. I'm probably dropping a Bronco and keeping the Raptor, but that's just me. That's just me. I don't care what you do i'm a little bit afraid with all four of them you got an awful lot tied up in rolling stock with 170 000 income okay yeah you're gonna get that you're gonna get the 30 paid off and you're gonna retire a millionaire i'm not worried about that i just want you got to stop buying cars. I know that. Yeah. Well, especially once you keep. That's right.

Because, you know, Mike, you're only a few months away from finding another one. I'm with you, Dave. Pick a Bronco. Sacrifice it. Pay off the Raptor. Put mama in that. Put mama in that Raptor. You think he's going to drive the Escape?

No chance. Wait a minute. No chance. Wait a minute. Sell the Escape. That's what I drive the Escape? No chance. Wait a minute. There's no chance. Wait a minute. Sell the Escape. That's what I'm selling. That's true. Yeah, get rid of that thing and then drive the Bunker.

It's the only thing on this list that I wouldn't keep. That we don't care about. Yeah. Get rid of that thing. Sorry, Escape. This is a boy discussion right here. I'm just saying. Oh, I don't know, man.

That's a hard one. That is tough. Just you don't want too much tied up in rolling stock. Get rid of the dead if you're going to keep it, for sure. You don't want to keep the dead around. And I don't blame you for having this discussion. This is a good one. This is a good one.

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